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8 December 2020
Harrison County Methamphetamine Dealer Sentenced to 17 YearsRead the Press Release
MARSHALL, Texas – A 27-year-old Marshall, 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.
Danny Brian Hernandez pleaded guilty on Sep. 14, 2020, to possession with intent to distribute methamphetamine and was sentenced to 204 months in federal prison by U.S. District Judge Rodney Gilstrap on Dec. 7, 2020.
According to information presented in court, Hernandez was a member of an organization responsible for importing large quantities of methamphetamine from Mexico and selling it in Marshall, Texas. The evidence showed that Hernandez sold more than 13 ounces of methamphetamine to a confidential informant on three separate occasions. Hernandez and eight others were indicted by a federal grand jury on Feb. 19, 2020, and charged with federal drug trafficking violations.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department. This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
Hamden Man Charged with Mailing Threatening Letters, Some Containing White PowderRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that NICHOLAS SEPESKO, 70, of Hamden, was arrested yesterday on a federal criminal complaint charging him with mailing threatening letters, some of which contained white powder, to an individual.
Following his arrest, Sepesko appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $20,000 bond.
As alleged in court documents and statements made in court, between October 2018 and November 2020, Sepesko mailed multiple letters to an individual threatening to harm the victim and the victim’s spouse. None of the letters contained a return address. The last three letters Sepesko mailed to the victim contained not only threats, but also a white powdery substance. In the most recent letter, Sepesko wrote that the white powder could be rat poison or Ricin.
The three letters containing the unknown powdery substance lead to physical responses by federal, state and local law enforcement and environmental protection agencies. It is alleged that laboratory analysis of the substance contained in a letter mailed by Sepesko in early October contained calcium carbonate. Test results of the substance contained in the other two letters are pending.
The complaint charges Sepesko with mailing threatening communications, and conveying false information and hoax. Each offense carries a maximum term of imprisonment of five years, a $250,000 fine, restitution and, with respect to a hoax, repayment of reimbursement for any municipal response.
U.S. Attorney Durham noted that this alleged crime and other like it will be vigorously prosecuted, as hoax letters containing white powder cause emotional distress for recipients and consume valuable time and resources of our first responders.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, U.S. Postal Inspection Service and Wallingford Police Department, with the assistance of the Connecticut State Police, Hamden Police Department and Connecticut Department of Energy and Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Gulf Coast Gang Member Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Joseph Benjamin Posey, II, 19, of Biloxi, pled guilty today before U.S. District Judge Sul Ozerden to being an unlawful user of a controlled substance in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On September 2, 2020, law enforcement officers with the Biloxi Police Department conducted a traffic stop on a vehicle in which Posey was a passenger. As a result of the stop, officers located two loaded handguns, one of which was stolen. Posey subsequently admitted that he obtained the guns three days before the traffic stop, and that he and the other occupant of the vehicle were on their way to speak to another individual about a series of shootings in Biloxi. Posey also admitted that he was a member of local gang and that he used marijuana daily.
Posey was indicted on October 6, 2020. He will be sentenced on March 11, 2021, at 9:30 a.m. and faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated by the FBI and the Biloxi Police Department. It is being prosecuted by Assistant United States Attorney Jonathan Buckner.
Grant County man admits to drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Jay Dean Hall, of Petersburg, West Virginia, has admitted to drug and firearms charges, U.S. Attorney Bill Powell announced.
Hall, 55, pled guilty today to on one count of “Maintaining Drug-Involved Premises,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Hall admitted to using his home on Spencer Drive in Petersburg as a drug distribution location and having a 9mm rifle in his home. The crimes occurred in August 2019 in Grant County.
Hall faces up to 20 years of incarceration and a fine of up to $1,000,000 for the drug charge and faces at least five years of incarceration for the firearm during a drug crime charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
U.S. Magistrate Judge Michael John Aloi presided.
Former comptroller of Catholic Diocese of Steubenville sentenced to prison for tax crimes, embezzlementRead the Press Release
COLUMBUS, Ohio – The former comptroller of the Catholic Diocese of Steubenville was sentenced in federal court in Columbus today for failing to pay payroll taxes withheld from the paychecks of diocesan employees, filing false tax returns and embezzling $299,500 in diocesan funds between 2008 and 2017.
David A. Franklin, 67, pleaded guilty in U.S. District Court in July 2020 to one count of willful failure to account for and pay over employment tax, one count of making a false income tax return and one count of wire fraud. Today Franklin was sentenced to 12 months and one day in prison and two years of supervised release, and was also ordered to pay $1,332,885.04 in restitution.
According to court documents, from 2004 through 2016, Franklin caused payroll taxes to be withheld from employee paychecks for the Diocese of Steubenville and the Office of Social Ministry (a social services and charitable nonprofit in the Diocese), but did not pay the withheld funds over to the Internal Revenue Service. From 2013 through 2016, Franklin did the same thing at the Mount Calvary Cemetery Association.
As a result, the three Diocesan Entities later paid the IRS more than $2.7 million in withheld payroll taxes and the employer portion of the employment taxes that Franklin had caused not to be paid over. The Diocesan Entities also had to pay nearly $1 million in interest and penalties to the IRS that they otherwise would not have had to pay.
While he was failing to truthfully account for and pay over payroll taxes, Franklin also embezzled $299,500 from the Diocesan Entities by preparing fraudulent checks to be issued to himself. For four tax years, Franklin also filed false personal income tax returns, causing tax losses of more than $33,000.
The Court ordered Franklin to pay more than $1.3 million in restitution. Restitution will go to the Diocese of Steubenville, the Office of Social Ministry, the Mount Calvary Cemetery Association, and the IRS. Franklin was also ordered to forfeit the nearly $300,000 he embezzled.
“The Diocesan Entities provide support to individuals and families, youth educational programs, a thrift store, an emergency food bank and more,” U.S. Attorney David M. DeVillers said. “Franklin’s actions cost the Diocese – and the community – $1.3 million. Today’s sentence and restitution order show that, in the long run, it does not pay to cheat the government or embezzle. Not only will you be left without your criminal proceeds, you’ll spend time in prison.”
U.S. Attorney DeVillers and IRS-Criminal Investigation Special Agent in Charge Bryant Jackson announced the sentence imposed by U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Peter K. Glenn-Applegate and Special Assistant U.S. Attorney and Jefferson County Prosecuting Attorney Jane Hanlin are representing the United States in this case.
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Former Convicted Human Trafficker Pleads Guilty under Project EJECT to Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Christopher Michael Cockrell, 45, of Bentonia, pled guilty today before U.S. District Court Judge Carlton W. Reeves to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 2, 2020 the United States Probation Office discovered that Cockrell had possession of cell phone which contained a video showing a firearm in a hunting blind. Cockrell had been previously convicted in federal court in the Western District of Missouri for a Human Trafficking Offense. After having served a lengthy prison sentence, Cockrell was released from prison and came to live in Mississippi. Cockrell was then placed under the supervision of the United States Probation Office in the Southern District of Mississippi.
The United States Probation Office informed the ATF that they believed there was evidence that Cockrell had possessed a firearm. As a convicted felon, it is against federal law for the Cockrell to possess a firearm. ATF agents conducted an investigation and Cockrell eventually admitted that he had possessed firearms for hunting purposes.
Cockrell was indicted by a federal grand jury on November 17th of 2020. He is currently in custody and will be sentenced on March 9, 2021 by Judge Reeves. Cockrell faces a maximum penalty of ten years in prison and a $250,000 fine. He also faces additional penalties for violating the conditions of his supervised release.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
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.
Former Brewer Resident Sentenced for Possessing Child PornographyRead the Press Release
BANGOR, Maine: A former Brewer resident was sentenced today in federal court for possessing child pornography, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Joseph L. Messier, 55, to 220 months in prison and 15 years of supervised release. Messier pleaded guilty on October 17, 2019.
According to court records, Messier possessed videos of children engaging in sexually explicit conduct, which he had purposefully sought out and received through the internet in early 2018. These videos depicted the sexual exploitation of prepubescent children under the age of 12. Messier faced an enhanced sentence of 10–20 years in prison because of a prior sex offense conviction.
Homeland Security Investigations (HSI) and the Maine State Police Computer Crimes Unit investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Five New York Residents Charged with Scheme to Defraud BanksRead the Press Release
NEWARK, N.J. – Five people have been charged for their participation in a scheme to engage in bank fraud, U.S. Attorney Craig Carpenito announced today.
Jose Lopez Blanco, 22; Jesus Emilio Ruiz Ramirez, 21; Cori Mojica Caminero, 25; Marisol Gomez, 34; and Daury DeLeon, 24, all of the Bronx, New York, are each charged by superseding complaint with one count of bank fraud conspiracy. Blanco was additionally charged with one count of mail theft and one count of unlawful possession of a postal key.
Blanco and two other individuals were charged in December 2019 with one count of conspiracy to commit mail theft and one count of conspiracy to commit unlawful possession of a postal key. According to that complaint, Blanco had been observed by law enforcement officers using a U.S. Postal Service (USPS) arrow key (a special master key maintained by USPS employees) to gain unauthorized access to, and steal mail from, a USPS mail collection box in Newark. Blanco remains on pretrial release on those charges and will make his initial court appearance by video conference later this week.
Ruiz Ramirez, Caminero, and Gomez were arrested today and are scheduled to appear by videoconference before the U.S. Magistrate Judge Leda Dunn Wettre this afternoon. DeLeon remains at large.
According to documents filed in this case and statements made in court:
From October 2018 through December 2019, postal inspectors investigated a group of individuals for stealing checks and money orders from the mail; altering those financial instruments; depositing them into bank accounts; and withdrawing the proceeds before the victims discovered the fraud.
The investigation revealed that following various thefts from mail collections boxes, the defendants and others deposited various stolen and altered checks and money orders into accounts that they controlled, as well as accounts controlled by other conspirators. The defendants and conspirators withdrew the stolen proceeds shortly thereafter.
As a result, the defendants and conspirators deposited more than $250,000 worth of stolen financial instruments into certain bank accounts, some of which were opened solely for the purposes of receiving and depositing the stolen financial instruments. The defendants and their conspirators were captured on bank video surveillance footage, on at least 50 occasions engaging in fraudulent transactions in these accounts.
The count of mail theft carries a maximum sentence of five years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greater. The count of unlawful possession of a postal key carries a maximum sentence of 10 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greater. The count of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a fine of $1 million.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the New York City Department of Investigation - Office of the Inspector General, the New York City Housing Authority, under the direction of New York City Department of Investigation Commissioner Margaret Garnett; New York City Police Department, under the direction of Commissioner Dermot Shea; the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; and the Roselle Park, New Jersey Police Department, under the direction of Chief of Police Daniel J. McCaffery, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Jason P. Garelick and Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the superseding complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Five Canadian Nationals Charged with Running Magazine Telemarketing Scam Targeting Elderly Victims in Southern CaliforniaRead the Press Release
LOS ANGELES – Five Canadian men have been indicted on federal fraud charges alleging they ran a million-dollar telemarketing scam that deceived victims – many of them elderly Southern California residents – into paying off non-existent debts they purportedly owed from magazine subscriptions.
A federal grand jury on Friday returned a 10-count indictment that charges the defendants with conspiracy and nine counts of wire fraud. Those charged are:
- Ahmad Eraif, 35, of Dollard-des-Ormeaux, Quebec;
- Mohamed Eraif, 37, of Pierrefonds, Quebec, who is Ahmad Eraif’s brother;
- Jonathan Massouras, 30, of Dollard-des-Ormeaux, Quebec;
- William Gampel, 29, of Dollard-des-Ormeaux, Quebec; and
- Kevin Gampel, 26, of Dollard-des-Ormeaux, Quebec, who is William Gampel’s brother.
The indictment alleges that, from 2013 to September 2015, the defendants, from locations in Montreal and Toronto, contacted victims throughout the United States, claiming to be calling from companies such as “Magazine Readers,” “Global Readers,” and “American Reader Services.” During these telephone calls, the defendants allegedly claimed that the victims – many of whom were elderly – owed money for magazine subscriptions.
Participants in the scheme allegedly told victims that if they paid the amount “owed” their purported debts would be satisfied and they would receive no future phone calls. However, victims’ personal information was collected and stored for the purposes of charging the victims’ financial accounts and for making repeated calls demanding payments, according to the indictment.
In reality, the victims did not owe the money demanded by the callers. Even when they paid, the defendants and others acting at their direction often called the victims again, sometimes repeatedly, demanding additional payments for other purported debts related to magazine subscriptions, the indictment alleges.
To further induce the victims to send money, the defendants allegedly threatened to damage the victims’ credit or bring legal action against them if the victims did not pay the amounts demanded.
The indictment alleges specific telephone calls between telemarketers in Canada and victims in Garden Grove, Ventura, Beverly Hills and Granada Hills.
The total losses in this case exceed $1 million, the indictment alleges.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each count in the indictment carries a statutory maximum sentence of 20 years in federal prison.
This matter was investigated by the United States Secret Service and the Royal Canadian Mounted Police.
This case is being prosecuted by Assistant United States Attorney Monica E. Tait of the Major Frauds Section.
The U.S. Attorney’s Office in Los Angeles is one of six offices participating in the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of federal law enforcement and non-governmental organizations to combat international fraud schemes that disproportionately affect American seniors.
Federal authorities to review shooting of Casey GoodsonRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today the U.S. Attorney’s Office – in coordination with the Civil Rights Division of the Department of Justice, the Cincinnati Division of the FBI and the Columbus Division of Police – will review the facts and circumstances surrounding the Dec. 4, 2020 shooting of Casey Goodson and take appropriate action if the evidence indicates any federal civil rights laws were violated.
As this matter is ongoing, we are unable to provide further comment at this time.
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Essex County Convicted Felon Charged with Drug Offenses and Possessing Three Firearms with Extended Magazines, Including Am-15 RifleRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged in connection with possessing several firearms, including an AM-15 rifle, as well as quantities of crack cocaine and heroin with the intent to distribute, U.S. Attorney Craig Carpenito announced today.
Cedric Lewis, 30, of Bloomfield, New Jersey, is charged by complaint with two counts of possession of a firearm by a convicted felon, two counts of possession with intent to distribute controlled substances and one count of possession of firearms in furtherance of a drug trafficking crime. He was arrested in Atlanta, Georgia, on Dec. 4, 2020, and was detained following an initial appearance in the U.S. District Court for the Northern District of Georgia.
According to documents filed in this case and statements made in court:
Law enforcement officials learned about Lewis’ involvement in an incident on Sept. 20, 2020, where Lewis was in a car in Elizabeth, New Jersey, while he possessed 118 jugs containing suspected crack cocaine, as well as an AM-15 rifle with a high-capacity magazine that contained thirty rounds of .300 caliber ammunition. On Sept. 25, 2020, law enforcement lawfully searched Lewis’ apartment and recovered the following: one 9 millimeter pistol with an extended magazine; one .40 caliber pistol with an extended magazine; drug paraphernalia and a scale; $800 in United States currency; one clear plastic bag containing a distribution quantity of suspected crack cocaine; several bundles of distribution quantities of suspected heroin; and 9 suspected Xanax pills.
The narcotics offenses each carry a maximum potential penalty of 20 years in prison, and a fine of $1 million. The counts of being a felon in possession of a firearm each carry a maximum potential penalty of 10 years in prison. The count of possession of firearms in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison – which must run consecutively to any other sentence imposed – and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000.
U.S. Attorney Carpenito credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; as well as deputy marshals with the U.S. Marshals Service in the Northern District of Georgia, under the supervision of U.S. Marshal Michael S. Yeager, with the investigation leading to the charges and arrest. He also thanked the Bloomfield Police Department for its assistance with this case.
This case is 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 Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Eleven Defendants Convicted for Involvement with Battle Creek Drug Trafficking OrganizationRead the Press Release
Final Two Defendants Convicted After Four-Day Trial
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that on December 4, 2020, a federal jury returned guilty verdicts against two defendants following a four-day trial in Kalamazoo: Ricardo Mercado-Lozano, also known as Heriberto Diaz-Lozano and Eddie Diaz, a citizen of Mexico and resident of Greenwood, Indiana, and Stacey Parcell Gibson, a resident of Battle Creek. These two defendants are among eleven total defendants who have been convicted for their respective offenses in furtherance of a drug-trafficking conspiracy spearheaded by co-defendant Andrew Bravo of Battle Creek. Bravo’s drug-trafficking organization distributed kilograms of cocaine and crystal methamphetamine, and quantities of heroin, fentanyl, MDMA or ecstasy, and kilograms of marijuana, in and around Battle Creek and Kalamazoo between May 2017 and December 2019. Bravo pleaded guilty to the drug-trafficking conspiracy on June 4, 2020 and was sentenced to 264 months in prison on October 5, 2020.
Mercado-Lozano, a self-admitted associate of the Sinaloa cartel, was a regional supplier of kilograms of cocaine and quantities of crystal methamphetamine to Bravo, who further distributed the controlled substances to other individuals in Battle Creek and Kalamazoo. Gibson obtained cocaine from Bravo and re-distributed it to customers in Battle Creek.
In announcing the convictions, U.S. Attorney Birge stated, “These convictions are the result of a long-term, multi-agency investigation into the drug trafficking of Andrew Bravo and his co-conspirators, who distributed cocaine, crystal methamphetamine, heroin, fentanyl, and marijuana, among other controlled substances, into the Battle Creek and Kalamazoo communities for years. The U.S Attorney’s Office is committed to bringing traffickers of dangerous drugs to justice no matter how long it takes. Our local communities are now safer with these individuals off the streets.”
“As part of a Homeland Security Investigations (HSI) long-term transnational criminal organization investigation, there are now eleven convicted for their role in conspiracy to smuggle and distribute deadly drugs across Western Michigan," said Vance Callender, Special Agent in Charge of HSI for Michigan and Ohio. “HSI used its network of agents and assets stationed across the U.S. and in foreign countries to dismantle this pipeline into the Midwest from Mexico. Multiple foreign and domestic law enforcement agencies helped perfect this investigation and raise the security profile of our borders.”
HSI and the Battle Creek Police Department (BCPD) began the investigation into Bravo’s drug-trafficking organization in mid-2017, in partnership with the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS-CI), Michigan State Police (MSP), Emmett Township Police Department, Kalamazoo Department of Public Safety, St. Joseph Police Department, Calhoun County Sheriff’s Department, and Kalamazoo County Sheriff’s Office.
“Undoubtedly without the support, direct cooperation, and capability of this joint effort, of local, state, and federal assistance, these crimes against our community would have continued to cause harm and needless victimization,” stated Jim A. Blocker, Chief of Police, City of Battle Creek Police Department. “I am grateful to seek support, get it and achieve remarkable success. We continue to develop into a better and more capable organization, at every opportunity when we work together,” said Chief Blocker.
Keith W. Martin, Special Agent in Charge of the DEA’s Detroit Division stated: “These convictions are the result of a wide-ranging investigation into this multi-state drug trafficking organization. Our partnership with other federal, state, and local law enforcement agencies was essential in bringing these two poly-drug traffickers to justice. DEA remains committed to keeping these illegal and destructive drugs out of our communities.”
In December 2019, during the arrests of the defendants and execution of associated search warrants in this case, federal and state investigators seized quantities of cocaine, fentanyl, heroin, over a kilogram of crystal methamphetamine, over 50 pounds of processed marijuana, over 300 marijuana plants, other controlled substances, three handguns, and over $50,000 in drug proceeds. The eleven defendants, their crimes of convictions, and sentence information are as follows:
Defendant
City
Conviction(s)
Sentence
Andrew Rolando Bravo
Battle Creek
- Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine and 100 kilograms or more or 100 plants of Marijuana)
264 months
in prison
Ricardo Mercado-Lozano
also known as
Heriberto Diaz-Lozano and
Eddie Diaz
Greenwood, Indiana
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 500 grams or more of Cocaine)
Pending Sentencing
Mark Anthony Mosley
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
Pending Sentencing
Christopher Michael Dreams
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
Pending Sentencing
Rodney C. Compton, Jr.
Kalamazoo
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
100 months
in prison
Erineo Wallace
Lansing
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of Methamphetamine, Cocaine, and MDMA or Ecstasy
60 months
in prison
Troy Edward Bush
Kalamazoo
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
Pending Sentencing
Stacey Parcell Gibson
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Cocaine
- Possession with Intent to Distribute Cocaine
Pending Sentencing
Wayne Henry Hawley
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Heroin, Cocaine, and Methamphetamine
120 months
in prison
Cory Karl Cadieux
Hudsonville
- Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute 50 kilograms or more of Marijuana
37 months
in prison
Jeremiah E. Smith
Kalamazoo
- Unlawful Use of a Communication Facility to Cause or Facilitate the Commission of Felonies under the Controlled Substances Act
Pending Sentencing
This prosecution, dubbed Operation After Hours, was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. This case was prosecuted by Assistant United States Attorneys Daniel T. McGraw and Vito S. Solitro.###
East Hartford Man Charged with Making Cell Phone Videos of Him Sexually Assaulting a ChildRead the Press Release
U.S. Attorney John H. Durham, Hartford State’s Attorney Sharmese L. Walcott, Acting Special Agent in Charge David Magdycz of Homeland Security Investigations (HSI) and East Hartford Police Chief Scott M. Sansom today announced that SAEED MUSTAPHA MOUSSA, 30, of East Hartford, has been charged by federal criminal complaint with child exploitation offenses related to his alleged sexual assault of a minor.
Moussa appeared today before U.S. Magistrate Judge Robert A. Richardson via videoconference. He has been detained since his arrest on related state charges on October 27, 2020.
As alleged in court documents, in September 2020, East Hartford Police received a report that Moussa’s cell phone contained videos of Moussa engaging in sexual activity with a young child. East Hartford Police subsequently conducted a court-authorized search of Moussa’s residence and seized Moussa’s cell phone, computer equipment and computer storage media. Investigators also executed a search warrant on Google for the contents of Moussa’s Google Photos account.
It is alleged that Moussa’s Google Photos account contained videos of Moussa sexually assaulting a girl who was approximately eight years old at the time the videos were taken.
The complaint charges Moussa with one count of production of child pornography, which carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and one count of possession of child pornography, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Durham thanked the Hartford State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
East Bay Man Charged with Selling Fentanyl-Laced Pills That Killed BuyerRead the Press Release
SAN FRANCISCO – The United States Attorney’s Office charged Gage Pascoe with the distribution of pills containing fentanyl that resulted in the overdose death of his customer, announced United States Attorney David L. Anderson and Special Agent in Charge Daniel C. Comeaux, Drug Enforcement Administration (DEA).
The federal complaint alleges that Pascoe, 22, of Pittsburg, California, sold counterfeit pills that appeared to be Oxycodone but instead contained the lethal drug fentanyl. The young adult customer purchased the pills from Pascoe and shortly after taking the apparent Oxycodone pills at a Walnut Creek home died from an overdose of fentanyl.
“This sad, tragic death shows how easy it is to die from drugs bought from drug dealers,” said U.S. Attorney Anderson. “Counterfeit pills marked and sold as one drug, such as Oxycodone pills with “M30” stamps, commonly contain fentanyl instead. Even a tiny amount of fentanyl is deadly. Drug buyers must be aware that pills bought from drug dealers may be laced with fentanyl. Drug dealers should know we vigorously prosecute those who sell drugs that cause fentanyl overdoses.”
“Fentanyl is cheap, man-made and potent. Overdose can occur in the smallest amount and in this case it left a family with unimaginable loss,” stated DEA Special Agent in Charge Daniel C. Comeaux. “We will pursue those who distribute this deadly drug and continue to seek justice for those lives that have been lost.”
The complaint charging Pascoe describes how he was a repeat dealer of illegal drugs to the victim. The complaint outlines that Pascoe communicated in the days before the death through a series of text messages with the victim, who he knew from attending the same high school, to sell Oxycodone to the victim. The texts, outlined in the complaint, show that Pascoe offered “more oxy” to his victim customer and they eventually met up in Pittsburg at night for Pascoe to sell the purported Oxycodone pills to the victim. The next day, June 17, 2020, the victim was found dead at a Walnut Creek home. The complaint describes how the victim’s father found pills in the victim’s room with “M30” stamped on them, which is a common stamp on counterfeit Oxycodone pills containing fentanyl. A lab analysis found those pills to contain fentanyl. As the complaint further describes, an analysis of the victim’s body showed the victim died from a fatal fentanyl overdose.
Pascoe was arrested on Saturday, December 5, 2020, and made an initial appearance today in San Francisco federal court before United States Magistrate Judge Laurel Beeler. Pascoe is currently being held in custody pending further proceedings. He is scheduled to appear for a detention hearing before United States Magistrate Laurel Beeler on December 14, 2020, at 10:30 am.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Pascoe is charged with one count of distribution of fentanyl resulting in death or great physical injury, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). If convicted of this count, he faces a maximum penalty of life in prison and a mandatory minimum of 20 years in prison, and a maximum fine of $1,000,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF) of the United States Attorney’s Office for the Northern District of California. The investigation of this case was conducted by the Drug Enforcement Administration, the Concord Police Department, and the Walnut Creek Police Department.
This investigation and prosecution is part of OCDETF, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Defendant Charged with Attempted Enticement of 12-Year-Old and 9-Year-Old GirlsRead 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 Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced charges against STEVE ROSADO, a registered sex offender, for attempted enticement of two minor girls in New York, New York. ROSADO was arrested yesterday evening and presented in Manhattan federal court today, before U.S. Magistrate Judge Sarah Netburn.
Acting U.S. Attorney Audrey Strauss stated: “Steve Rosado allegedly attempted to harm society’s most vulnerable – trying to engage in sexual activity with two young children, whom he believed to be 12 and 9 years old – even after he had been convicted of sex offenses in the past and required to register as a sex offender. I thank the FBI and the NYPD for their work in investigating and arresting Rosado before he could harm any more victims.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Mr. Rosado knew exactly what he was doing when he arranged to have sex with two children, one of whom he believed was only 9 years old. As a convicted sex offender, he knew the risk and allegedly took it anyway. He is now in federal custody and facing prosecution. It’s not easy to investigate sexual predators. The agents, detectives, and analysts who constitute the FBI/NYPD Child Exploitation and Human Trafficking Task Force do this work each and every day hoping to stop the next offender from harming another child.”
NYPD Commissioner Dermot Shea said: “These charges, by the United States Attorney’s Office for the Southern District of New York reflect our continuing commitment to keep those would who prey on children from stalking our streets. I praise our detectives and federal partners for their work in fighting on behalf of society’s most vulnerable individuals.”
According to the allegations in the Complaint charging ROSADO:[1]
On or about November 29, 2020, an undercover FBI agent (“UC-1”), posing as the mother of a 12-year-old girl and a 9-year-old girl, initiated a series of conversations on an instant messaging platform with an individual identified to be ROSADO. Thereafter, UC-1 and ROSADO had numerous communications via the instant messaging platform, text message, and telephone call.
In these conversations, ROSADO repeatedly expressed, in graphic and unambiguous terms, his desire to engage in sexual activity with both children – including both oral and vaginal sex. To help alleviate any concerns UC-1 might have regarding ROSADO having sexual relations with her young children, ROSADO provided UC-1 with his recent test results for COVID-19 and HIV, and he discussed what he and UC-1 could do if he were to impregnate one of the children.
UC-1 and ROSADO arranged to meet at a bar in Manhattan on the evening of December 7, 2020, with the understanding that they would return to UC-1’s apartment afterward and ROSADO would then engage in sexual activity with the children. On the evening in question, ROSADO met UC-1 at the agreed-upon location. After the two of them left the bar and began walking toward UC-1’s purported apartment, law enforcement arrested ROSADO. ROSADO was in possession of a backpack containing, among other things, a toothbrush, a change of clothes, and lubricant.
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ROSADO is charged with one count of attempted enticement of a minor to engage in illegal sexual activity, in violation of Title 18, United States Code, Sections 2422(b) and 2, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and one count of committing the aforementioned offense while being required to register as a sex offender, in violation of Title 18, United States Code, Section 2260A, which carries a mandatory sentence of an additional 10 years in prison.
Ms. Strauss praised the outstanding investigative work of the FBI-NYPD Child Exploitation and Human Trafficking Task Force.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jonathan L. Bodansky is in charge of the prosecution.
The charges contained in the Complaint 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 Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Correctional Officer at Metropolitan Correctional Center Sentenced to 40 Months in Prison for Engaging in Abusive Sexual Contact with InmatesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that COLIN AKPARANTA, formerly a correctional officer at the Metropolitan Correctional Center (“MCC”), which houses federal inmates in Manhattan, was sentenced in Manhattan federal court to 40 months in prison for engaging in abusive sexual contact with an inmate. AKPARANTA previously pled guilty before United States Magistrate Judge Kevin Nathaniel Fox to one count of abusive sexual contact of an inmate, in violation of Title 18, United States Code, Section 2244(a)(4), and one count of deprivation of the constitutional rights of that inmate, in violation of Title 18, United States Code, Section 242. In connection with the plea, AKPARANTA also admitted that he engaged in abusive sexual contact with six additional victims, and engaged in sexual acts with all seven of the victims. U.S. District Judge Lorna G. Schofield, who accepted AKPARANTA’s guilty plea, imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “Colin Akparanta repeatedly abused his position of authority as a correctional officer at the MCC by sexually abusing inmates whose safety and security he was duty-bound to protect. Today’s sentence should send a strong message that correctional officers who abuse their authority and commit crimes will be held to account. This Office will remain vigilant to ensure that all inmates are afforded the dignity and security they deserve.”
According to the Indictment, other filings in this case, and statements during court proceedings:
AKPARANTA was employed as a correctional officer at the MCC starting in 2004. Between in or about late 2012 and in or about April 2018, AKPARANTA used his official position to engage in sexual acts and contact with at least seven female inmates at the MCC while they were under AKPARANTA’s custodial, supervisory, and disciplinary authority. AKPARANTA digitally penetrated the victims’ vaginas and touched their breasts, buttocks, and/or genitalia. AKPARANTA also had some of the victims touch his penis over his pants. In addition, AKPARANTA smuggled contraband, including, but not limited to, personal hygiene items, makeup, and food into the MCC for some of the victims, and, with respect to at least one of the victims, explicitly conditioned his provision of contraband on the inmate’s continued performance of sexual acts with him. AKPARANTA also asked the victims for their contact information in order to reach them after their release.
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In addition to the prison term, Judge Schofield sentenced AKPARANTA, 44, of Irvington, New Jersey, to two years of supervised release.
Ms. Strauss praised the investigative work of the Department of Justice Office of the Inspector General and the Special Agents of the United States Attorney’s Office.
The prosecution is being handled by the Office’s Public Corruption, Violent and Organized Crime, and Civil Rights Units. Assistant U.S. Attorneys Lara Pomerantz, Sarah Krissoff, and Rachael Doud are in charge of the prosecution.
Columbus man sentenced to 10 years in prison for distributing methamphetamineRead the Press Release
COLUMBUS, Ohio – Shottuan Deshawn Galloway, aka “Pablo”, 27 of Columbus was sentenced in U.S. District Court today to 120 months in prison for distributing methamphetamine in Columbus.
A multi-agency investigation into meth trafficking in west Columbus gathered evidence in August 2019 that Galloway was selling meth. The evidence included an undercover agent purchasing meth from Galloway in a restaurant parking lot. A grand jury indicted Galloway in November 2019. Galloway was ordered held without bond following his indictment. He pleaded guilty before U.S. District Judge Sarah D. Morrison on August 11, 2020 to one count of distributing more than 50 grams of meth. Judge Morrison imposed the sentence today. The sentence includes five years of court supervision after Galloway serves his prison time. Judge Morrison also ordered Galloway to receive substance abuse treatment while in custody.
Another person indicted along with Galloway, Jharen Page, 32, of Columbus, was sentenced on October 27, 2020 to 151 months in prison after pleading guilty to conspiracy and distribution of meth. Charges are pending against a third defendant.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Columbus Police Chief Thomas Quinlan announced the sentence. In addition, the police departments in Upper Arlington and Westerville, the Franklin County Sheriff’s Office and the Ohio State Highway Patrol are part of the investigation. Assistant United States Attorney Sheila Lafferty is representing the United States in this case.
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Cleveland man admits to selling heroin and fentanylRead the Press Release
WHEELING, WEST VIRGINIA – Andre Diggs, of Cleveland Heights, Ohio, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Diggs, also known as “Dre” and “Big Homie,” age 38, pled guilty to one count of “Distribution of Heroin and Fentanyl within 1000 feet of a Protected Location.” Diggs admitted to selling a heroin and fentanyl mixture near Riverview Towers in Wheeling in December 2019.
Diggs faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000. 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. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Cincinnati man who allegedly advertised online for babysitting jobs arrested on federal child pornography chargesRead the Press Release
CINCINNATI – A Cincinnati man alleged to be seeking babysitting jobs online was arrested yesterday afternoon and charged federally with possessing and transporting child pornography.
Ryan J. McConnell, 29, appeared in U.S. District Court for an initial appearance at 1:30pm today, at which time his case was unsealed.
According to court documents, FBI agents in El Paso, Texas, acting in an undercover capacity on Kik messenger discovered McConnell through a group called “Toddlers.” Members within this group distributed hundreds of videos and images of child rape.
It is alleged McConnell’s phone contained child pornography depicting pre-pubescent and pubescent boys engaged in sexually explicit conduct while wearing diapers.
Additionally, it is alleged McConnell actively sought work as a babysitter from approximately 2010 until present on a number of websites, including SitterCity.com, Care.com, Craigslist.org and possibly others. For example, criminal complaint documents allege McConnell was registered for three SitterCity accounts and had created at least 20 Craigslist ads offering childcare and/or babysitting services as recently as late October 2020.
The FBI believes that there are potentially more victims associated with this case. They ask anyone in the Tri-State area who may be a victim of McConnell’s alleged conduct to contact their office at 513-979-8611.
Transporting child pornography is a federal crime punishable by a mandatory minimum of five years and up to 20 years in prison. Possessing child pornography carries a potential maximum of 10 years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Chiropractor and Related Practice to Pay $175,000 as A Part of False Claims Act Liability Settlement AgreementRead the Press Release
SALT LAKE CITY, UT – U.S. Attorney John Huber announced today that Chiropractor Matthew Wood and his practice, Life Health Medical Center (“LHMC”), have agreed to pay $175,000 to resolve liability under the False Claims Act for allegations he improperly billed Medicare for the use of electro-acupuncture devices.
From November 3, 2018 through February 28, 2020, Dr. Wood and LHMC billed Medicare for an implantable neurostimulator device, a device that typically requires a surgical procedure and is performed by a surgeon in an operating room.
STIVAX® is a percutaneous auricular electro-acupuncture device. Pursuant to the manufacturer’s instructions, the device is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Other brand names for this device include NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
Medicare does not reimburse for electro-acupuncture devices as implantable neurostimulators nor acupuncture.
LHMC also agreed to enter into an Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services that will require regular monitoring of its billing practices for a period of three years.
"Health care professionals who inappropriately bill Medicare do so at a disservice to this vital program,” said Special Agent in Charge Curt L. Muller, U.S. Department of Health and Human Services Office of Inspector General. "Working with our law enforcement partners, we will continue to protect taxpayer-funded health care programs as well as the patients who rely on them."
This settlement agreement is one of many of its kind involving electro-acupuncture billing that U.S. Attorneys’ Offices across the United States have worked diligently to resolve.
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the Office of Inspector General of the U.S. Department of Health and Human Services. Assistant U.S. Attorney Sandra L. Steinvoort, Chief of the Affirmative Civil Enforcement section in the Utah U.S. Attorney’s Office, handled the matter.
Boston Man Sentenced for Being a Felon in Possession of Two FirearmsRead the Press Release
BOSTON – A Boston man was sentenced yesterday for being a felon in illegal possession of firearms and ammunition on two separate occasions in Boston.
Donell Phillips, 27, was sentenced by U.S. District Court Judge Patti B. Saris to 21 months in prison and one year of supervised release. In March 2020, Phillips pleaded guilty to two counts of being a felon in possession of a firearm and ammunition.
On May 8, 2019, police officers in Boston observed Phillips, who was wanted on outstanding warrants for unrelated charges from Lawrence District Court and South Boston District Court, holding an open container of alcohol on a public sidewalk. Phillips ran from officers and dropped a Bryco, Model 38, .380 caliber firearm and magazine containing .380 caliber ammunition on the street. Phillips was not apprehended that day, and a state court arrest warrant issued for his arrest.
On June 7, 2019, police officers in Boston observed Phillips in the rear passenger seat of a vehicle and attempted to place him under arrest when the vehicle came to a stop. Phillips again ran from officers and jumped over a wall but was apprehended after a short foot chase. In Phillips’ pocket, officers found a loaded Taurus, model PT738 TCP, .380 caliber firearm, and five plastic bags of suspected cocaine base, also known as “crack cocaine.”
Due to a prior state court conviction, Phillips is prohibited from possessing firearms or ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Black Disciples Gang Member Guilty of Illegally Possessing Guns in ColumbusRead the Press Release
COLUMBUS, Ga. – A convicted felon, who is also a member of the Black Disciples street gang, is facing a maximum 20 years in a federal prison after being arrested twice this year for illegally possessing firearms, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Roderick Phillips, 27, of Columbus, pleaded guilty before U.S. District Judge Clay Land to two counts of possession of a firearm by a convicted felon. Each count carries a maximum ten years imprisonment to be followed by three years of supervised release and a fine of up to $250,000. A sentencing date has not been scheduled. There is no parole in the federal system.
Phillips was arrested on two separate occasions in 2020 by the Columbus Police Department in illegal possession of a firearm. The first occurred on April 13, after police officers were dispatched to The Fort Church regarding a suspicious person; they had been dispatched there several times before for the same reason. Officers found Phillips standing in the breezeway of The Fort Church with a pistol; they were able to safely secure Phillips and take him into custody. Phillips was arrested a second time on October 13, during a routine traffic stop in Columbus. Officers discovered the driver had active warrants, and when they were removing the driver from the vehicle, noticed rifle ammunition and found a stolen gun under the driver’s seat. Phillips was attempting to conceal another stolen firearm, a pistol, and was taken into custody. Phillips is a member of the Black Disciples street gang and is a convicted felon. Phillips was convicted of and sentenced for aggravated assault on February 21, 2019 and possession of a firearm by a convicted felon on August 12, 2015 in the Superior Court of Muscogee County, Georgia; Phillips was convicted of and sentenced for assault in the second degree in the Superior Court of Elmore County, Alabama on April 3, 2013.
“Phillips, a gang member and a convicted felon, will spend many years in a federal prison and off the streets of Columbus. Repeat, violent offenders caught illegally possessing guns in the Middle District of Georgia will face federal prosecution and federal prison, where there is no parole,” said U.S. Attorney Peeler. “It is a priority for the U.S. Attorney’s Office and our law enforcement partners to investigate, arrest and prosecute the most violent offenders. I want to thank the Columbus Police Department and the ATF for their good work in this case and for their tireless commitment to making our communities safer.”
“Organized criminal groups, like the one Mr. Phillips belongs to, use guns to intimidate and harm members of our communities,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “In this case, Mr. Phillips was not deterred by his April 13, 2020, arrest and he was not deterred by his 2019 conviction for possession of a firearm. It is because of the efforts of our law enforcement organizations and the support of our Columbus communities that we can identify threats and stop them before any innocent person is harmed. ATF will continue to partner with the Columbus Police Department and work to make Columbus and our surrounding communities safer.”
“I am thankful for the successful prosecution of this case and I really appreciate the work of our officers and our federal partners. Also, I look forward to even more successful prosecutions as we continue to collaborate with our federal partners,” said Columbus Police Chief Freddie Blackmon.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Bergen County Man Charged with Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of possessing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Nicholas Corsale-Althawabta, 19, of Oakland, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
On Jan. 16, 2020, Corsale-Althawabta used an internet-based application to distribute multiple graphic videos depicting the sexual abuse of minors. Law enforcement officers discovered numerous videos of child sexual abuse on Corsale-Althawabta’s electronic devices when he was arrested at his home today.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison and a fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Alexandra Tsakopoulos of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Belmont Man Sentenced to 72 Months for Distribution of Methamphetamine and Firearm ChargesRead the Press Release
CONCORD - Thomas Deware, 56, of Belmont, was sentenced on Monday to 72 months in federal prison for distributing methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between June and September, 2019, Deware sold methamphetamine to an individual who was working with law enforcement officers. During three of these purchases, Deware possessed a handgun in a chest holder.
On October 17, 2019, law enforcement officers executed a search warrant at Deware’s residence and recovered a .45 caliber handgun that was consistent with the firearm he possessed during three of the controlled drug purchases.
“Armed drug traffickers present a very serious threat to public health and safety,” said U.S. Attorney Murray. “We are working closely with the FBI and our other law enforcement partners to identify and prosecute the dangerous drug dealers who use guns as part of their illegal activities. As Mr. Deware has learned, drug traffickers who carry guns in the Granite State will face substantial federal prison sentences.”
“Whether it’s a large-scale drug trafficking organization, or an individual like Thomas Deware distributing methamphetamine while possessing a firearm, rest assured disrupting and dismantling criminal drug trafficking operations is a critical part of our mission,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to work with our law enforcement partners to put drug traffickers like Deware permanently out of business and behind bars, as we fight violent crime and work to make our neighborhoods safer.”
This matter was investigated by the Federal Bureau of Investigation with assistance from Belmont Police Department. The case was prosecuted by Assistant U.S. Attorneys Cam Le and Joachim Barth.
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Amherst Man Who Fled Country Following Search Warrant Pleads Guilty to Possession of Child PornographyRead 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 Zachary Rogers, 34, of Amherst, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to possession of child pornography. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that a search warrant was executed by the FBI at the defendant’s Amherst apartment on January 25, 2018. The FBI seized two computer hard drives, which contained more than 21,000 images of child pornography. Some of the images depicted prepubescent minors, as well as sexual violence. Rogers used a peer to peer networking application to receive and distribute child pornography.
Within days of the execution of the search warrant, the defendant fled to Southeast Asia, according to a note he left behind. The government received notice in October 2019 that Rogers was arrested in the country of Montenegro. Following extradition proceedings, the defendant was returned to the Western District of New York in June 2020.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia. Additional assistance was provided by law enforcement authorities in Montenegro. The Justice Department’s Office of International Affairs was responsible for securing the extradition.
Sentencing is scheduled for April 19, 2021, at 9:30 a.m. before Judge Vilardo.
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Akron man sentenced to three and a half years after threatening two people in a local business with a loaded firearmRead the Press Release
U.S. Attorney Justin Herdman announced today that Brandon Ricks, age 31, of Akron, was sentenced by U.S. District Court Judge Benita Y. Pearson to 42 months imprisonment and three years of supervised release after he pleaded guilty to one count of felon in possession of firearm and ammunition on August 27, 2020.
According to court documents, on January 24, 2020, Akron police responded to a report of a man, later identified as Ricks, brandishing a firearm and threatening a customer and the manager of a business on Copley Road in Akron. Ricks left the scene, got into his vehicle and drove away. Police later stopped Ricks in his vehicle and recovered a loaded .45 caliber pistol from the driver’s side floorboard of the vehicle.
Ricks is prohibited from possessing a firearm due to prior felony convictions of aggravated assault in 2007 and robbery in 2013 in the Summit County Court of Common Pleas.
The investigation preceding the indictment was conducted by the Akron Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant U.S. Attorney Aaron P. Howell.
4 men head to prison for 31-kilogram cocaine conspiracyRead the Press Release
LAREDO, Texas – Three Mexican men and a U.S. citizen have been sentenced for their part in a conspiracy to possess with intent to deliver a large amount of cocaine, announced U.S. Attorney Ryan K. Patrick.
Aaron Hervey Esparza Villarreal, 27, of Monterrey, Nuevo Leon, Mexico, pleaded guilty Aug. 4, admitting he was part of a conspiracy that involved smuggling cocaine hidden in a semi-truck. Mexican citizens Jose Contreras Rodriguez, 58, and Ernesto Yadir Martinez Campos, 39, pleaded guilty July 8, along with Viviano Hernandez, 41, a U.S. citizen who was residing in Mexico.
Today, U.S. District Judge Marina Garcia Marmolejo handed Hernandez a 36-month term of imprisonment. Villarreal, Campos and Rodriguez were previously sentenced to 87, 60, and 48 months, respectively. Not U.S. citizens, Villarreal, Rodriguez and Campos are expected to face removal proceedings following their sentences.
“Smuggling illegal controlled substances poses a serious risk to public health and safety in our communities,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI will continue to work aggressively with our law enforcement partners to target drug smuggling organizations that make money by bringing dangerous drugs into our neighborhoods.”
On Jan. 17, law enforcement observed two men, later identified as Rodriguez and Hernandez, working on the vehicle. They then got into a sedan, left the area and met up with an SUV. At that time, Hernandez handed over trash bags to Villarreal in the SUV.
Authorities attempted to stop the SUV, but Villarreal led them on a high-speed pursuit before crashing into the Evelyn Motel on San Bernardo Avenue. Inside the vehicle was 31 kilograms of cocaine in the trash bags.
Law enforcement also apprehended Hernandez and Rodriguez as they attempted to enter Mexico. Campos was the driver of the semi and brought the drugs into the United States from Mexico. He was also taken into custody.
Villarreal 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. Assistant U.S. Attorney David Fawcett prosecuted the case.
2 men plead guilty after K-9 uncovers illegal aliens in 100+ degree trailerRead the Press Release
LAREDO, Texas – A Laredoan and a South Carolina man have both admitted guilt after a smuggling attempt leads to a stash house, announced U.S. Attorney Ryan K. Patrick.
Eloy Martinez-Carranza, 35, of Ridgeland, South Carolina, pleaded guilty today while Jose Maria Ramirez, 28, Laredo, entered his plea Nov. 24. Both admitted to conspiring to transport illegal aliens.
Martinez-Carranza approached the US-83 Border Patrol (BP) checkpoint driving a semi-truck and trailer Oct. 1. Soon after his arrival, a BP K-9 alerted to the presence of contraband in the trailer.
Authorities cut the seal on the trailer and found 40 illegal aliens, including three unaccompanied minors. The inside temperature was approximately 109 degrees. Law enforcement also observed coffee grounds scattered around the trailer.
Martinez-Carranza claimed he was traveling to Laredo from South Carolina to work as a trucker. However, he did not have a commercial driver’s license or any training as a truck driver.
Upon further investigation, authorities identified a location suspected to be the stash house for the illegal aliens. Law enforcement conducted surveillance and stopped a vehicle leaving the house. Ramirez was driver of that vehicle.
Law enforcement searched the home and found a total of 22 illegal aliens, including more unaccompanied minors.
U.S. District Judge Marina Garcia Marmolejo accepted their pleas and set sentencing for March 24. At that time, both men face up to 10 years in prison and a possible $250,000 maximum fine.
Martinez-Carranza and Ramirez have been and will remain in custody pending their sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul Harrison is prosecuting the case.
7 December 2020
Wilmington Man Receives More Than 12 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – A Wilmington, NC man was sentenced on Friday, December 4th to 151 months in prison for the distribution of a quantity of cocaine base (crack) and a quantity of heroin.
According to court documents, Percy Parker, 40, sold a quantity of cocaine base (crack) and a quantity of heroin to a confidential informant on September 17, 2019. Parker committed the sale of a quantity of cocaine base (crack) while on supervision after having been released from state custody in August 2019. Court documents indicate that Parker had an extensive criminal history with the State of North Carolina and at least two prior sentences for Possession with the Intent to Manufacture, Sell or Deliver Controlled Substances that carried a sentence in excess of one year. As a result, Parker qualified as a career offender.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wilmington Police Department, New Hanover County Sheriff’s Department, Coastal Criminal Enterprise Task Force and the Federal Bureau of Investigation investigated the case and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00185-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Wilkes-Barre Man Sentenced to 198 Months’ Imprisonment for Drug Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hakim Wilburn, age 50, of Wilkes-Barre, Pennsylvania, was sentenced to 198 months’ imprisonment on December 3, 2020, by U.S. District Court Judge Robert D. Mariani, for his involvement in a drug trafficking conspiracy that distributed more than a 1,000 grams of heroin and other drugs.
According to United States Attorney David J. Freed, Wilburn previously pleaded guilty to conspiring with others to distribute more than 1 kilogram of heroin (which is equivalent to more than 50,000 retail bags) between 2015 and 2018, throughout Luzerne, Lackawanna, and Wyoming Counties. Wilburn also admitted that he distributed more than 500 grams of cocaine during the conspiracy.
Wilburn’s conviction and sentence resulted from a federal investigation involving both Wilburn and his wife, Danielle Moorer. Moorer also pleaded guilty to conspiring to distribute more than 1 kilogram of heroin and is awaiting sentencing.
Judge Mariani also ordered Wilburn to serve ten years of supervised release following his prison sentence. Federal agents also seized approximately $100,000 in cash from Wilburn, which was forfeited as a resulted of Wilburn’s prosecution, along with multiple Rolex watches, vehicles, and four firearms.
The case was investigated by the Federal Bureau of Investigation, and the Wilkes-Barre Police Department. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Vince K. Leon Guerrero and Evelyn C. Tydingco Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
SAIPAN, MP - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants VINCE KOKI LEON GUERRERO, age 28, and EVELYN CHON TYDINGCO, age 28, were each sentenced in the United States District Court for the Northern Mariana Islands to 120-month terms of imprisonment for Conspiracy to Possess Over Fifty Grams of Methamphetamine Hydrochloride with the Intent to Distribute, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered five years of supervised release following imprisonment, and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On February 21, 2018, law enforcement conducted a controlled delivery of a package containing suspected methamphetamine at a United States Post Office on Saipan. Approximately 118 grams of methamphetamine was previously removed from the package and replaced with a sham substance. Leon Guerrero and Tydingco, along with co-defendant Elaine Francisco Demei, received the package, which had been sent from California. The defendants were arrested shortly after leaving the scene.
At sentencing, Chief U.S. District Judge Ramona V. Manglona found that Leon Guerrero and Tydingco obstructed justice in their attempts to obtain a reduced sentencing recommendation from the government. The Court also found that the defendants had not accepted responsibility for their conduct. The defendants were therefore sentenced to the mandatory minimum term of 120 months imprisonment under federal law.
United States Attorney Shawn N. Anderson stated, “The quantity of methamphetamine seized during this investigation is shocking, particularly given the size of the community. As this case shows, multi-agency efforts are effective in combating drug trafficking in the CNMI. I applaud the hard work of our law enforcement partners in keeping our communities safe.”
This was a joint investigation by the Drug Enforcement Administration and United States Postal Inspection Service, with the assistance of the CNMI Division of Customs and Guam Customs and Quarantine. The case was prosecuted by Garth R. Backe, Assistant United States Attorney for the District of the Northern Mariana Islands.
U.S. Trustee Program Reaches Agreements with Three Mortgage Servicers Providing More than $74 Million in Remediation to Homeowners in BankruptcyRead the Press Release
Correction (12/7/2020): Per the Memorandum of Understanding it was U.S. Bank’s policy to perform annual escrow analyses for borrowers in bankruptcy.
The Department of Justice’s U.S. Trustee Program (USTP announced today that it has entered into national agreements with three mortgage servicers to address past mortgage servicing deficiencies impacting homeowners in bankruptcy. The agreements with Nationstar Mortgage, LLC (Nationstar), U.S. Bank National Association (U.S. Bank), and PNC Bank, NA (PNC) address noncompliance with the Bankruptcy Code and Federal Rules of Bankruptcy Procedure that impacted over 60,000 accounts of borrowers in bankruptcy dating back to 2011 and resulted in payment application errors; inaccurate, missing, and untimely bankruptcy filings; and/or delayed escrow statements.
“Homeowners in bankruptcy are entitled to receive proper and timely notices and to have their payments properly accounted for, consistent with the Bankruptcy Code and Rules,” said USTP Director Cliff White. “The failure of mortgage servicers to comply with those requirements compromises the integrity of the bankruptcy system and the ability of homeowners to receive a fresh start.”
Collectively, the USTP’s agreements with Nationstar and U.S. Bank, and the letter of acknowledgement with PNC, provide over $74 million to remediate over 76,000 historical servicing errors impacting borrowers in bankruptcy. The agreements also require the servicers to implement improvements in their bankruptcy operations to ensure that the errors do not recur. Most of the remediation and corrective actions have already been taken by the servicers.
Historical Servicing Deficiencies
Nationstar and PNC at times failed to run annual escrow analyses for borrowers in bankruptcy. Further, Nationstar, U.S. Bank, and PNC failed to (1) file timely and accurate notices of changes to bankruptcy borrowers’ ongoing mortgage payments, (2) file timely and accurate notices of fees assessed during borrowers’ bankruptcy cases, and (3) provide an accurate final accounting of the payments made by the borrower during the bankruptcy case as required under the Bankruptcy Code and Rules.
In addition to these deficient servicing practices, U.S. Bank and PNC failed to accurately apply borrower payments in bankruptcy cases. And U.S. Bank failed to file timely and accurate proofs of claim in bankruptcy cases.
Monetary Remediation and Changes to Internal Procedures
The servicers have or will provide account credits and refunds to impacted bankruptcy borrowers. Nationstar has provided more than $40 million in credits and refunds. U.S. Bank has, or will, provide at least $29 million in credits and refunds, and has waived approximately $43 million in fees and charges across its mortgage servicing portfolio, including for borrowers in bankruptcy. PNC provided close to $5 million in credits and refunds, as well as additional remediation in the form of lien releases and debt forgiveness.
In addition to monetary and other remediation, Nationstar, U.S. Bank, and PNC each made changes to their internal procedures to prevent the recurrence of the deficient bankruptcy servicing practices. These changes included enhancements to computer platforms, improvements to vendor and employee training and oversight, and implementation of quality control processes to ensure the accuracy and timeliness of filings in bankruptcy cases and escrow analyses for borrowers in bankruptcy.
No Effect on Non-Parties
These agreements do not affect the rights of any homeowner or other third party, including other governmental agencies. Bankruptcy borrowers with questions may contact the servicers at:
Nationstar Mortgage LLC at 833-981-2112,
PNC Bank at 855-245-3814, and
U.S. Bank at 888-724-7362.
The agreements are posted at https://www.justice.gov/ust/national-mortgage-settlements.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more about the Program at: https://www.justice.gov/ust.
U.S. Attorney’s Office Files Sexual Harassment Lawsuit Against Chicopee LandlordRead the Press Release
BOSTON – The U.S. Attorney’s Office filed a lawsuit today alleging that a property manager in Chicopee violated the Fair Housing Act by subjecting female tenants to sexual harassment.
The complaint alleges that Salazar dos Santos, 79, of Chicopee, who has managed residential rental properties in and around Chicopee since at least 2008, subjected female tenants to unwelcome sexual contact, including coercing them to perform oral sex and touching intimate parts of their bodies. Dos Santos allegedly exposed his genitals to female tenants, locked tenants in his office, implicitly offered to grant tangible benefits, such as rent payment plans, in exchange for engaging in sexual acts with him, and threatened tenants who resisted or objected to his unwelcome sexual harassment. The owners of the properties, two family trusts, are alleged to be liable for Salazar dos Santos’s conduct.
“No one should be forced to provide sexual favors, or otherwise endure sexual harassment, in exchange for housing,” said United States Attorney Andrew E. Lelling. “Sexual harassment is illegal under the Fair Housing Act and, especially during a time of increased unemployment and financial stress, my office will aggressively enforce this law to protect hard working women and others subjected to this kind of abusive conduct.”
“It is appalling that any woman seeking safe, affordable housing would be met with demands for sex, sexual propositions, unwanted touching, and threats. Such abusive conduct by landlords and property manages violates federal law and shocks the conscience,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and threats by their housing providers, and the Justice Department will work resolutely to hold such predators accountable and to obtain relief for their victims.”
The lawsuit seeks monetary damages to compensate the victims, civil penalties and a court order restricting his contact with tenants. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
This lawsuit is part of the Justice Department’s Sexual Harassment in Housing Initiative. The initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division in coordination with U.S. Attorney’s Offices. The goal is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing.
Anyone with questions or concerns regarding this case should call the U.S. Attorney’s Office at 888-221-6023 or email [email protected].
U.S. Attorney Lelling and AAG Dreiband made the announcement today. Assistant U.S. Attorneys Torey B. Cummings and Christopher Morgan, of Lelling’s Civil Rights Unit, and the Springfield Branch Office respectively, are handling the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney DeVillers launches fentanyl awareness campaignRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today the Fentanyl in Narcotic Drugs Awareness Project (FIND Awareness Project), a messaging campaign aimed at warning the public that any drug cut with fentanyl is deadly.
In 2020, at least 84 percent of overdose deaths in Franklin County involved fentanyl. From January through June 2020, overdoses increased more than 73 percent when compared to the same time period in 2019.
The FIND Awareness Project includes billboards that will be placed in the Columbus zip codes experiencing the highest rates of overdose deaths. The billboards warn users of the recently increasing prevalence of fentanyl in stimulants like cocaine and methamphetamine and in pressed pills like street Oxy and Xanax. The signs also encourage the public to learn more about treatment and resources at FINDawarenessproject.com and FindTreatment.gov.
Targeted social media ads and sites will link individuals to a treatment database searchable by community, overdose statistics, information about law enforcement initiatives and outreach, and a way to report suspected drug activity.
“We will go after the cartels from every angle, and we will continue to investigate and prosecute high-level drug dealers,” U.S. Attorney DeVillers said. “At the same time, we also hope to reduce demand for their products by encouraging people to save their lives and seek treatment. Addiction does not have to be deadly.”
The U.S. Attorney’s Office created the campaign with funding from the Ohio High Intensity Drug Trafficking Area (HIDTA) and assistance from Franklin County Coroner Dr. Anahi Ortiz and Columbus City Attorney Zach Klein.
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Two Virgin Islands Women Sentenced to Federal Prison Resulting from Their Involvement in a Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
St. Thomas, USVI – Nisha Brathwaite, age 39, and Darleen Thompson, age 38, both of St. Croix, Virgin Islands were sentenced last Thursday and Friday, respectively for conspiracy to defraud the United States, U.S. Attorney Gretchen C.F. Shappert announced. Brathwaite was sentenced to 21 months in prison, 3 years supervised release and ordered to pay a special assessment of $100.00, plus restitution in the amount of $57,360.00. Thompson was sentenced to 21 months in prison, 3 years supervised release and ordered to pay a special assessment of $100.00, plus restitution in the amount of $62,997.53.
Both women were charged in a ten-defendant, 119-count Bill of Indictment returned by the federal grand jury in September of 2016. Both pled guilty in January 2020. According to the plea agreements and stipulated documents filed in federal court, from January 2011 to July 2012, both women and others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. They and their co-conspirators caused income tax returns for tax years 2010 and 2011 to be electronically filed in individuals’ true names and actual social security numbers; however, the defendants and their coconspirators falsified the individuals’ income earned, tax withholding amounts, credits, and other information, and thereby claimed refunds to which they were not entitled.
As a result of the scheme, $57,360 was deposited into Brathwaite’s bank account and $62,997.53 was deposited into Thompson’s bank account. The case is the result of years of investigative work by the Internal Revenue Service, Criminal Investigations who conducted a probe into a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere and determined that Internal Revenue Service lost hundreds of thousands of dollars from the scheme. Of ten defendants charged in the Virgin Islands tax fraud scheme, Brathwaite and Thompson are the second and third to be sentenced. Four others have entered guilty pleas and are pending sentencing. The remaining three are pending a trial date.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorneys Alphonso Andrews, Jr. and Melissa Ortiz.
Two Central Illinois Men Indicted on Charges of Fraud Related to Small Business Administration COVID-19 Disaster Loan ProgramRead the Press Release
SPRINGFIELD, Ill. – A grand jury has returned indictments in unrelated cases against two Central Illinois men, one from Springfield and the other from Beardstown, that allege fraud in connection with major disaster or emergency benefits available through the Small Business Administration.
The indictment against Charles J. Jones, 25, of the 500 block of N. 13th St., Springfield, Ill., alleges that in June 2020, Jones submitted an application for an Economic Injury Disaster Loan for a business, known as “Just Like Jilla,” which did not exist. The indictment alleges that Jones made false representations on the loan application including that the business had existed more than one year, that it employed 11 people, and, had gross revenues of $1.2 million. In addition, Jones allegedly denied having been convicted of a felony within five years of when he completed the loan application. The SBA wired approximately $160,000 in loan proceeds into Jones’ bank account. Jones is also charged with four counts of wire fraud.
A second indictment, against Peter Garrido-Baez, 44, of the 500 block of E. 3rd St., Beardstown, Ill., alleges that Garrido-Baez applied for and received two SBA Covid-19 related loans for “Garrido Apartments;” one for approximately $26,000 and one for approximately $72,500. After the loan proceeds were received, Garrido-Baez allegedly transferred $72,500 into a different account at a local bank and then had $79,800 wired from the local bank to a bank account in the Dominican Republic. The applicable loan agreement mandates that loan proceeds be solely used as working capital to alleviate economic injury caused by disaster and expressly prohibits using any portion of the loan proceeds to relocate outside the disaster area. Garrido-Baez allegedly wired the money to the Dominican Republic for construction and building apartment buildings in the Dominican Republic. Garrido-Baez is also charged with seven counts of wire fraud and one count of money laundering.
Each of the men has been issued a summons to appear on Jan. 5, 2021, for arraignment in federal court in Springfield. If convicted, the maximum statutory penalty for fraud in connection with major disaster or emergency benefits is up to 30 years in prison. The maximum penalties for both mail fraud and money laundering is up to 20 years in prison.
The charges were investigated by the Internal Revenue Service, Criminal Investigation Division as part of a Central Illinois Task Force directed at combatting COVID-19 related fraud. Other participating agencies in the task force include the Small Business Administration, Office of Inspector General; U.S. Secret Service; Federal Deposit Insurance Corporation, Office of Inspector General; U.S. Postal Inspection Service; U.S. Department of Labor, Office of Inspector General; and, the Federal Bureau of Investigation. First Assistant U.S. Attorney Doug Quivey is representing the government in the case prosecutions.
Covid-19 disaster relief and enhanced unemployment benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Two Bay Area Residents Charged in Nationwide Scheme to Engineer Fraudulent Credit and Debit Card RefundsRead the Press Release
SAN FRANCISCO – Robert Kohlman and Gabriel Riddle have been charged in a criminal complaint with wire fraud in connection with a scheme to use dozens of fraudulently programmed credit and debit terminals to make unlawful transactions, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The criminal complaint, filed August 19, 2020, was accompanied by an affidavit filed by an FBI agent. According to the affidavit, Kohlman, 38, and Riddle, 34, both of Novato, Calif., obtained more than 90 point-of-sale terminals, which are devices used by merchants to read and process credit or debit cards to accept payments for goods or services. Kohlman and Riddle then programmed the terminals to believe they were associated with an actual merchant, and then submitted requests for refunds even though there was no initial purchase. The merchant’s bank or processing company, believing a legitimate refund was being requested, then transmitted money to accounts controlled by Kohlman and Riddle. Kohlman and Riddle then depleted the accounts by making purchases, making ATM cash withdrawals, or purchasing money orders. The affidavit indicates that Kohlman and Riddle initiated at least 100 fraudulent refunds that transferred more than $400,000 to their personal bank accounts.
Kohlman and Riddle allegedly used this scheme to defraud numerous victims around the country, including a U.S. Army Hospital dining facility. The affidavit describes transactions involving the dining facility at the Winn Army Community Hospital at Fort Stewart in Fort Stewart, Georgia, which is operated by the United States Army. According to the affidavit, the dining facility was tricked into issuing a refund worth $7,925.03 on December 3, 2018, to a debit card controlled by Riddle and a second refund, on December 16, 2018, worth $9,989.39 to a debit card controlled by Kohlman.
The defendants were charged with wire fraud, in violation of 18 U.S.C. § 1343.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. The defendants face a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Defendants were arrested on August 26, 2020 in Las Vegas, Nevada, and made their initial appearance in federal court there on August 27, 2020. They made their initial appearance in San Francisco on November 27, 2020. Defendants’ next scheduled appearance is on December 16, 2020 for a status conference before the Honorable Laurel Beeler, U.S. Magistrate Court Judge.
Assistant U.S. Attorneys Kevin Rubino and Ross Weingarten are prosecuting the case with the assistance of Morgan Byrne. The prosecution is the result of an investigation by the FBI, along with the Army Criminal Investigation Command, Major Procurement Fraud Unit, and the Marin County Coordination of Probation Enforcement Team.
Tulsa Woman Pleads Guilty to Strangling Her Intimate Partner and to Robbery in Indian CountryRead the Press Release
On Dec. 4, 2020, a Tulsa woman admitted in federal court to assaulting her intimate partner during an argument in 2016 and to using force to steal a vehicle in 2019, announced U.S. Attorney Trent Shores.
Lakota Ray Scott, 33, pleaded guilty to domestic assault by strangulation in Indian Country and to robbery in Indian Country before U.S. District Gregory K. Frizzell.
“Domestic violence survivors are one of the most resilient groups of victims I’ve ever seen. I’m so thankful that the victim in this case spoke up so that we could help her. The abuser, Lakota Scott, acted recklessly and endangered the lives of others, beyond just her partner, during the two separate incidents to which she pleaded guilty. Thankfully all of the victims have recovered,” said U.S. Attorney Trent Shores.
During Friday’s hearing, Scott explained that on March 16, 2016, she had a verbal argument with her girlfriend then took off in her girlfriend’s car without permission. Her girlfriend called police to report the car stolen. When Scott returned to the apartment, a second argument ensued. When the victim tried to leave, Scott blocked the front door then slapped the victim’s phone out of her hand as she attempted to call 911. As the victim tried to flee the apartment, Scott tackled her in the living room and started strangling the victim. She then grabbed a flat screen television and smashed it over the victim’s head twice. Then as Scott ran to the bedroom, the victim fled the home where she was met by arriving police officers.
Scott further admitted to stealing a pick-up truck that was idling while the owner was just a few feet away on Jan. 31, 2019. When the owner saw the defendant in his truck, Scott locked the doors and put the vehicle in drive. The owner jumped into the bed of the truck and Scott drove off erratically and in a dangerous manner. The victim was thrown around in the truck bed during the ride and believed that Scott was trying to intentionally throw him out of the bed of the truck. The victim’s hands, legs, chest and head were injured. Scott then crashed the truck into a fence and ran away. She was eventually found in a parking garage, hiding from authorities.
As part of the plea agreement, the defendant and the United States agreed to a sentence of three years in federal prison. The government will also ask that the defendant take part in a drug and alcohol treatment program while imprisoned. U.S. District Judge Frizzell will make the final sentencing determination at a hearing set for March 9, 2021.
The FBI and Tulsa Police Department conducted the investigations. Assistant U.S. Attorney Gina S. Gilmore is prosecuting the case. Ms. Gilmore is a prosecutor from the U.S. Attorney’s Office in the Western District of Texas. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation has never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Theft at Winnfield Firearms Store Results in Federal Prison Sentence for Winnfield ManRead the Press Release
ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that Joe Louis Anderson, 53, of Winnfield, Louisiana was sentenced in federal court for stealing firearms from a local store.
United States District Judge Dee D. Drell sentenced Anderson to 42 months in prison, followed by 3 years of supervised release, for theft of firearms from a federal firearms dealer. Anderson was also ordered to pay restitution in the amount of $5,000. Evidence introduced in court revealed that during the early morning hours of July 25, 2019, Anderson unlawfully entered the Governor’s Affair store and stole five firearms from the firearm display case. The store had surveillance video of Anderson stealing the firearms and leaving the store with them.
Anderson has a lengthy criminal history, with previous convictions for second degree burglary and possession of stolen vehicle (1991); possession of stolen vehicle and larceny (1992); second degree burglary and knowingly concealing stolen property (1995); larceny of an automobile (1997); and possession of contraband in penal institution (1998).
The ATF and Winnfield Police Department investigated the case. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Texas Man Pleads Guilty to Felony in $375,000 Investment SchemeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Leonard Theodore Kern, 64, of Plano, Texas, entered a guilty plea to obstruction of justice for his role in an investment scheme that resulted in the loss of over $375,000 to a West Virginia woman.
“Kern’s scheme resulted in a significant loss to the victim,” said United States Attorney Mike Stuart. “This case serves as a reminder to all of us that if it sounds too good to be true, it probably is. Fortunately, as a result of his plea agreement, Kern will be required to pay restitution.”
Kern faces up to 20 years in prison when he is sentenced on March 29, 2021, and he will be required to pay restitution to the victim.
Kern convinced the victim to invest $375,000 in a “Private Placement Platform” with two other individuals by promising a low risk financial transaction for an exclusive group of investors and an abnormally high rate of return over a period of just two months. Several years later, the victim received no return on the investment. As part of a federal grand jury investigation, grand jury subpoenas were served upon a company owned and controlled by Kern requesting documentation and records related to the investment transaction. At the plea hearing, Kern admitted that he intentionally obstructed the grand jury investigation by concealing hundreds of documents responsive to the grand jury subpoenas.
The Federal Bureau of Investigation (FBI) conducted the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorneys Andrew J. Tessman and Joshua C. Hanks are handling the prosecution.
Individuals should consult with a licensed investment broker prior to responding to solicitations for investments into “Platform” trading investments. The FBI has participated in numerous investigations of fraud activity commonly referred to as Platform Trading, Private Platform Programs (PPPs), Prime Bank Trading, or Medium-Term Note Trading Programs. In these schemes, perpetrators falsely represent their ability to offer above-average market returns with below-market risk through the trading of bank instruments.
Several common characteristics include claims that: (1) investor funds can be placed in a bank account and then used, without risk, to trade bank debentures or other financial instruments; (2) invested funds can be used to lease or rent U.S. Treasury Obligations and then use these same leased securities as collateral for further trading programs; (3) trading Medium Term Notes (MTNs), Prime Bank Notes, or any other bank instruments, on a riskless basis, will yield above market returns; (4) Letters of Credit or Standby Letters of Credit can be discounted or traded for profits; (5) certain high-yield foreign trading programs are sanctioned or supported by the Federal Reserve, International Monetary Fund, International Chamber of Commerce, or other U.S. or international agencies; (6) special connections to the Federal Reserve or some other internationally renowned organization such as the United Nations, the IMF or the World Bank; (7) benevolent, humanitarian, or charitable projects; (8) the need for extreme secrecy and nondisclosure agreements; (9) banking and regulatory officials will deny knowledge of such instruments; (10) these investment opportunities are by invitation only, available to only a handful of special customers, and historically reserved for the wealthy elite; (11) the financial instruments are too technical or complex for non-experts to understand.
In general, investment programs that purport to offer an introduction to secret investment markets, which offer above-market rates of return with below-market rates of risk for privileged customers with special access, are fraudulent. There are no secret markets in Europe or in North America in which banks trade securities.
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. 5:20-cr-00183.
Follow us on Twitter: SDWVNews and USAttyStuart
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Schenectady Man Sentenced to 120 Months for Crack Cocaine DistributionRead the Press Release
ALBANY, NEW YORK – Robert J. Chaires, age 40, of Schenectady, New York, was sentenced today to 120 months in prison for twice distributing crack cocaine in 2017.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). Chaires admitted that on January 20, 2017 and again on March 2, 2017, he sold more than 28 grams of cocaine base (a/k/a crack cocaine) to a buyer in Schenectady.
Senior United States District Judge Frederick J. Scullin, Jr. also sentenced Chaires to 4 years of supervised release, to begin after his term of imprisonment.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
San Francisco Substitute Teacher Charged with Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Marc Nunez made an initial appearance today in federal court on a criminal complaint for possession of child pornography, announced David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. Nunez made his initial appearance before U.S. Magistrate Judge Laurel Beeler.
According to the complaint filed December 1, 2020, and unsealed today, on August 27, 2019, agents from HSI served a federal search warrant at a residence in San Francisco and seized, among other things, a cell phone containing communications between the person whose residence was being searched and Nunez. As the investigation proceeded, federal agents uncovered additional evidence that Nunez was a substitute teacher, after school helper, and kindergarten assistant at a private elementary school for boys in San Francisco. In addition, federal investigators discovered Nunez corresponded with several individuals with whom he traded sexually explicit files of children. The complaint further describes cell phone messages and Skype messages in which Nunez received and discussed pornographic images of minors. Nunez believed that at least one of the persons with whom he was corresponding was a minor.
Nunez is charged with possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2).
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
If convicted of the charge, Nunez faces a maximum statutory sentence of 10 years in prison, 3 years’ supervised release, and a $250,000 fine.
Magistrate Judge Laurel Beeler ordered Nunez released on a $50,000. Nunez’s next court appearance is scheduled for December 15, 2020, before Judge Beeler, for a bond hearing.
Assistant U.S. Attorney Ankur Shingal is prosecuting the case with the assistance of Alexa Leisure. The prosecution is the result of an investigation by the HSI with assistance from the San Francisco Police Department, the office of the Contra Costa District Attorney, and the United States Secret Service.
San Fernando Valley Man Admits to Fraudulently Obtaining $655,000 in COVID-19 Relief PPP LoansRead the Press Release
LOS ANGELES – A Northridge man pleaded guilty today to a federal criminal charge that he fraudulently obtained $655,000 in Paycheck Protection Program (PPP) loans for his companies by submitting fake tax documents and false employee information.
Steven R. Goldstein, 36, pleaded guilty to a single-count information charging him with fraud in connection with major disaster or emergency benefits.
According to his plea agreement, Goldstein knowingly submitted applications for PPP loans to banks that contained false statements about the number of employees and the amount of employee payroll expenses.
On May 2, Goldstein submitted a $355,000 PPP loan application to Bank of America for a company called Beagle Real Estate Investments. On the application, Goldstein listed false information that the company’s average monthly payroll was $120,000 and it employed a total of 43 workers. Goldstein also submitted fabricated tax documents that falsely stated that Beagle Real Estate’s payments to its employees in 2019 totaled $1,704,000, and that the company reported $308,000 in wages paid to 13 employees during the first quarter of 2020. The fraudulent loan application was approved and, on May 4, Bank of America disbursed $355,000 of PPP loan proceeds to a bank account that Goldstein provided in his application.
Goldstein further admitted to knowingly submitting at least one additional fraudulent PPP loan application, which resulted in Bank of America disbursing $300,000 to him. That loan application also contained similar false statements and fabricated tax documents. When law enforcement interviewed Goldstein in October, he admitted to submitting multiple PPP loan applications that contained false information about employees and payroll as well as fake tax documents.
The actual loss from the two approved loans was $655,000, according to the plea agreement.
United States District Judge Stanley Blumenfeld Jr. has scheduled a March 30, 2021 sentencing hearing, at which time Goldstein will face a statutory maximum sentence of 30 years in federal prison.
Goldstein’s business partner, Raymond Magana, 39, of Santa Clarita, was charged in a criminal complaint in October with fraudulently obtaining PPP loans and is expected to surrender to federal authorities in the coming days.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized more than $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This matter was investigated by IRS Criminal Investigation and the Small Business Administration Office of Inspector General.
This case is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
San Bernardino County Man Who Recorded Child Pornography on His Social Media Accounts Sentenced to 25 Years in Federal PrisonRead the Press Release
RIVERSIDE, California – An Inland Empire man was sentenced this afternoon to 300 months in federal prison for producing dozens of sexually explicit images and videos of children, including videos that were recorded on his Snapchat and Facebook social media accounts.
Chaunta A. Bashir, a.k.a. “taytheonly,” 27, of Chino, was sentenced by United States District Judge Jesus G. Bernal. Bashir pleaded guilty on July 15 to one count of production of child pornography.
From June 2015 to October 2018, Bashir produced multiple images of child pornography. Specifically, in October and November 2017, he took sexually explicit images and videos of a 3-year-old victim, including of himself sexually abusing the child.
In the spring and summer of 2018, Bashir produced additional sexually explicit images and videos of children ranging in age from 4 years to 14 years. Bashir recorded some of those videos on his Facebook and Snapchat social media accounts.
During a search of Bashir’s home in October 2018, law enforcement officials recovered more than 600 images and videos from his electronic devices that depicted minors engaged in sexually explicit conduct.
This matter was investigated by Homeland Security Investigations with assistance from the Chino Police Department.
This case was prosecuted by Assistant United States Attorney Tritia L. Yuen of the Riverside Branch Office.
Robbery spree leads to multiple federal felony charges for Savannah man, guilty plea for co-defendantRead the Press Release
SAVANNAH, GA: A Savannah man faces a minimum of 87 years in prison if convicted of a series of armed robberies of convenience stores in which a co-defendant has pled guilty.
Garnell Dewitt Quarterman, 30, of Savannah, made his initial appearance in federal court Monday, Dec. 7, after a federal grand jury charged him with Conspiracy to Interfere with Commerce by Robbery; 12 counts of Interference with Commerce by Robbery; 12 counts of Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Firearm by a Convicted Felon, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Several of the charges carry a penalty of up to life in prison, and there is no parole in the federal system. U.S. District Court Magistrate Judge Christopher L. Ray ordered Quarterman be detained in custody.
“The armed robbery of a business is an especially dangerous crime, and often is traumatic or even deadly for the victims,” said U.S. Attorney Christine. “We’re grateful to our law enforcement partners for putting an end to this series of violent crimes.”
As described in the 26-count indictment, Quarterman is charged with 12 armed robberies or attempted armed robberies in which a firearm was brandished. The armed robberies spanned from November 9, 2019 through January 6, 2020, and they occurred at the Marathon gas station at 2511 Skidaway Road, the Savannah Mart at 1300 E. DeRenne Avenue, the Sunoco gas station at 7261 Skidaway Road, the Pump-N-Go Food Mart at 2016 Skidaway Road, the Gemco at 4906 Paulsen Avenue, the Discount Market at 1516 Montgomery Street, the Waters Market at 4402 Waters Avenue, the Circle K at 8900 White Bluff Road, and the Chu’s Convenience Mart at 2606 Highway 80 in Garden City.
Criminal indictments contain only charges; a defendant is presumed innocent unless and until proven guilty.
Quarterman’s co-defendant, Malic Stephens, 26, of Savannah, pled guilty on November 9, 2020, to one count of Conspiracy to Interfere with Commerce by Robbery and awaits sentencing. The charge carries a possible penalty of up to 20 years in prison.
Savannah Police officers identified and arrested Quarterman at a residence on Jan. 17; Stephens was arrested Jan. 23 at his residence. Both men remain in custody.
“Any time an individual takes a gun into a place of business to rob it, victims are traumatized and there is a potential for tragic consequences,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “If convicted, Quarterman faces significant prison time, thanks to the combined efforts of our local and federal law enforcement partners.”
The case is being investigated by the FBI’s Southeast Georgia Violent Crimes Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Savannah Police Department, Garden City Police Department, and Chatham County Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Pair Sentenced for Two Counts of Rape in the National ParkRead the Press Release
KNOXVILLE Tenn. – On December 7, 2020, Dusty William Oliver, 41, and Richard Graham, 49, both from Blaine, were sentenced by the Honorable Judge Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville, for raping two men in the Great Smoky Mountains National Park (GSMNP).
Oliver and Graham pleaded guilty to an indictment charging them with two counts of aggravated sexual abuse in violation of 18 U.S.C. § 2241(a) and 2. Oliver was sentenced to 300 months in prison, followed by 15 years’ supervised release. Graham was sentenced to 230 months in prison, followed by 15 years’ supervised release. Both Oliver and Graham will be required to register with state sex offender registries and comply with special sex offender conditions during their supervised release.
In June 2012 and again in November 2015, Oliver and Graham raped two different male victims in the Great Smoky Mountains National Park. The defendants preyed on homeless, drug-addicted, heterosexual males, who they believed were unlikely to report their attacks to law enforcement. After quickly befriending their victims on the roadside in Knoxville, they took the victims to the Great Smoky Mountains National Park. Each victim was tricked into hiking unfamiliar trails in pitch darkness, whereon they were raped by both defendants at once.
The defendants escaped prosecution for their crimes until a tenacious investigation by special agents with the U.S. Department of Interior National Park Service in the Great Smoky Mountains National Park developed prosecutable cases against them. "The defendants exploited vulnerable victims; however, the victims were brave enough to come forward and report their attacks. The victims’ cooperation throughout the investigation and prosecution was necessary, and I commend them for seeing it through. The hefty sentences should serve as a warning to others that one will pay heavily for committing violent crimes in our national parks," said U.S. Attorney J. Douglas Overbey.
"I want to express my thanks to ISB investigators, park rangers, and the Blount County Sheriff’s Office for their perseverance and hard work that led to the conviction and sentencing of these two men responsible for heinous crimes within the park," said Superintendent Cassius Cash. "To ensure that we’ve heard the voices of all victims, investigators continue to welcome any information about additional assaults that may be associated with Graham and Oliver."
The criminal indictment was the result of an investigation by the U.S. Department of Interior National Park Service for the GSMNP.
Assistant United States Attorney Jennifer Kolman represented the United States.
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Orlando Pair Sentenced for Straw Purchasing RiflesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Jesmarilys Montesinos (22, Orlando) to one year in federal prison for making false statements relating to firearms purchases. On October 8, 2020, her co-defendant, Steven Usma (22, Orlando), was sentenced to three years and one month in federal prison for aiding and abetting the making of false statements relating to firearms purchases. Both had pleaded guilty earlier this year.
According to court documents, in February 2018, Usma and Montesinos traveled together from Orlando to Fort Myers to attend a gun show. At the gun show, Montesinos purchased 12 rifles for Usma, at Usma’s request, after Usma had failed a background check when he attempted to buy firearms. At the time, Usma was prohibited from purchasing or possessing firearms under Florida state law. In connection with her firearms purchases, Montesinos twice falsely certified that she was buying the rifles for herself, when she knew she was actually purchasing the firearms for Usma.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Ohio man sentenced for role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Kenyatta Banks, Jr., of Canal Winchester, Ohio was sentenced today to 57 months of incarceration for his role in a drug conspiracy that spanned several states, U.S. Attorney Bill Powell announced.
Banks, also known as “Yatta,” age 30, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances” in August 2020. Banks admitted to working with others to traffic methamphetamine, cocaine and heroin in Wetzel County, Ohio, Georgia, as well as into the southern district of West Virginia.
Assistant U.S. Attorneys Robert H. McWilliams, Jr. and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Wetzel County Sheriff’s Office, the Marshall County Sheriff’s Office, and the New Martinsville Police Department investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. District Judge John Preston Bailey presided.
Notification Advisory for Victims Affected by ATM-Skimming from August 2019 to July 2020Read the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Marcus Catalin Rosu, 39, was charged in an Information for possession of access device-making equipment in connection with an alleged ATM skimmer fraud scheme affecting hundreds of bank and credit union customers in Alaska and elsewhere.
According to public court filings, Rosu became the subject of a federal investigation when the United States Postal Inspection Service intercepted a package containing hundreds of fraudulent banks cards in February 2019. USPIS and the Alaska State Troopers investigated allegations of ATM-skimming occurring at credit unions in Anchorage and the Mat-Su Valley. Following the investigation of a report of ATM-skimming occurring at a Matanuska Valley Family Credit Union in Willow, law enforcement arrested Marcus Rosu at a rental car company in July 2020. After his arrest, law enforcement searched Rosu’s hotel room. Hidden above the hotel room’s ceiling tiles, they found more than 1,000 magnetic strip cards, a laptop computer and a magnetic strip reader-encoder.
Due to the large number of potential victims in this case, United States Magistrate Judge Matthew M. Scoble issued an order permitting the government to employ alternative victim notification procedures so that any member of the community at large who believes they may be a crime victim is made aware of their potential rights.
The government is asking that members of the community who believe they may be a victim of Rosu’s criminal activities, to contact the Victim-Witness Unit at the U.S. Attorney’s Office, District of Alaska at (907) 271-3041. The Victim-Witness Program of the U.S. Attorney’s Office, District of Alaska, provides information, services, and support to individuals during federal prosecutions.
Case updates will be provided on the U.S. Attorney’s Office, District of Alaska website at https://www.justice.gov/usao-ak/case-updates.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. A virtual hearing in this case is scheduled for January 5, 2021 at 10 a.m.
This case was the product of an investigation conducted by the United State Postal Inspection Service, the Alaska State Troopers, with assistance from the Airport Police. This case is being prosecuted by Assistant U.S. Attorney Karen Vandergaw.
Nine Offenders Arrested During GBI-Led Roundup in Albany, GeorgiaRead the Press Release
ALBANY, Ga. – A multi-agency press conference held today at the Law Enforcement Center in downtown Albany announced a GBI-led arrest operation in the Albany-area last month had led to the capture of nine offenders, several of whom were charged with violent crimes.
The arrest operation focused on Violent Repeat Offenders (VROs) with outstanding arrest warrants in the Albany-Dougherty County area and was conducted on Wednesday, November 18, 2020, resulting in a total of nine arrests. Led by the GBI Southwestern Regional Drug Enforcement Office, the arrest operation included members of the Albany Police Department, Dougherty County Sheriff’s Office, Dougherty County Police Department, Lee County Sheriff’s Office, Georgia Department of Community Supervision-Albany, Poulan Police Department, DEA Columbus Field Office, FBI Albany Field Office, U.S. Marshals Service Fugitive Task Force and ATF Macon Field Office. The operation was also supported by the Dougherty County District Attorney’s Office and the U.S. Attorney’s Office for the Middle District of Georgia. The operation is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. In addition to the arrest of individuals charged with violent crimes, other non-violent suspects with outstanding arrest warrants in the Albany area were taken into custody.
All defendants are presumed innocent unless and until proven guilty in a court of law. The following individuals were arrested during the operation and are facing state charges:
Mareo Jackson, 20, of Albany is charged with murder;
Russell Roberts, 30, of Albany is charged with two counts of aggravated assault;
Terry Burnette, 58, of Albany is charged with probation violation for manufacturing methamphetamine;
Jerrell Leconte Stroud, 26, of Albany is charged with possession of a firearm by a convicted felon, aggravated assault, gang participation and violation of probation;
Jovonta Frazier, 27, of Albany is charged with failure to appear for court;
Johnnie Fletcher, 64, of Albany is charged with shoplifting;
Corey Jenkins, 33, of Albany is charged with probation violation.
During the search for other suspects, an apparent indoor marijuana growing operation was discovered at 504 Johnson Road, Albany. A search warrant was obtained for the residence resulting in the recovery of several suspected marijuana plants and seven firearms (one shotgun, two rifles and four handguns). This investigation is ongoing. All defendants are presumed innocent unless and until proven guilty in a court of law. Agents arrested the following two individuals at the residence, both charged with state crimes:
Willie Ernest Robinson, 26, of Albany, is charged with manufacturing marijuana and possession of a firearm during the commission of a felony;
Pamela Rose Lucy Verney, 24, of Albany is charged with manufacturing marijuana and possession of a firearm during the commission of a felony.
DOJ’s Project Safe Neighborhoods (PSN) is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The GBI Southwestern Regional Drug Enforcement Office is in Albany and services 42 counties in Southwest Georgia. The office is the collaborative effort between the GBI, Albany Police Department, Dougherty County Sheriff’s Office, Dougherty County Police Department, Americus Police Department, Worth County Sheriff’s Office and Colquitt County Sheriff’s Office. The Southwestern Regional Drug Enforcement Office is partially funded with Byrne/JAG grant funds.
Crime tips can be submitted directly to the GBI by calling 1-800-597-TIPS(8477), online at https://gbi.georgia.gov/submit-tips-online, or by downloading the See Something, Send Something mobile app. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), U.S. Attorney’s Office, at (478) 765-2362.