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3 December 2020
U.S. Law Enforcement takes action against approximately 2,300 money mules in global crackdown on money launderingRead the Press Release
Indianapolis – The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372- 8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
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.
U.S. Law Enforcement Takes Action Against Approximately 2,300 Money Mules in Global Crackdown on Money LaunderingRead the Press Release
LEXINGTON, KY—The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) yesterday.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
“Detecting and disrupting the work of money mules is critically important, as money mules are integral components of many organized criminal groups, including international fraud rings and transnational drug trafficking organizations,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We remain committed to working with our local, state, and federal law enforcement partners to disrupt the flow of illegal money and cutting off the lifeblood of these criminal organizations.”
“While some money mules know they are supporting criminal enterprises, others are unaware that they are helping criminals profit,” said James Robert Brown, Jr., Special Agent in Charge for FBI, Louisville Field Office. “Regardless, money mules add layers between the true criminal and the victim oftentimes making it more difficult for law enforcement to trace the money trail. To protect yourself, always be suspicious of someone asking for your bank account information or requesting that you move money for them.”
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
Some highlights from this year’s efforts are:
- Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
- Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.
- On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
- The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
- U.S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity.
Over the past year, the Eastern District of Kentucky has worked in conjunction with federal, state, and local partners to dismantle two money mule schemes operating in the District.
- U.S. vs. Fafunmi et al.- Ismaila Fafunmi admitted that, beginning in June 2018, he worked in conjunction with others, who communicated through online chats, about a scheme to defraud U.S. citizens through a romance scheme. In furtherance of this scheme, Fafunmi and his co-conspirators would set up fake profiles on dating websites profiling American men, often military members. Fafunmi’s co-conspirators would engage in conversations with victims, typically women older than 50, through the dating website, making the victims believe they were in a romantic relationship with the individual in the fictitious profile. Fafunmi and his co-conspirators would then convince these unsuspecting women to send money for various reasons. One victim of the scheme lived in Kentucky, and sent more than $200,000 to a person she believed to be her boyfriend. In another scheme, Fafunmi received funds from another female over 50, who believed she was being awarded a large grant and had to pay fees up front in order to receive her award. Fafunmi is pending sentencing on May 13, 2021.
- U.S. vs. Inkoom et al.- Baaki Abdul Majeed conspired with Kahad Wuupini and Thomas Inkoom, in a money laundering conspiracy. Evidence revealed that the conspirators agreed to aid in and launder $757,000 in funds, which were defrauded from a victim of an online romance fraud scheme. After receiving cashier’s checks, personal checks, and cash from the victim, Majeed and his co-conspirators laundered the money from Washington and New Jersey, back to Ghana, by purchasing cars that were shipped to Ghana, obtaining cashier’s checks, and wiring funds to each other or other individuals in the United States and Ghana. The purpose of these transactions was to conceal and disguise the proceeds of their online romance fraud. Majeed is pending sentencing on January 29, 2021.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
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U.s. Law Enforcement Takes Action Against Approximately 2,300 Money Mules in Global Crackdown on Money LaunderingRead the Press Release
BEAUMONT, Texas – The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations.
Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from
American consumers and businesses to transnational criminal organizations.”
“These money mules are an essential link in these foreign-based criminal schemes,” said Stephen J. Cox, U.S. Attorney for the Eastern District of Texas. “The assistance of these money mules – both witting and unwitting alike – makes it easy for overseas criminal organizations to move money from victims’ wallets into their own.”
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
Some highlights from this year’s efforts are:
- Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
- Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.
- On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
- The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
- The U.S. Attorney’s Office for the Eastern District of Texas (EDTX), along with the U.S. Secret Service, dismantled a phony Amazon Alexa tech support fraud ring, seizing six websites in the process. In other cases, EDTX obtained four asset seizures leading to the recovery of nearly $150,000 in ill-gotten proceeds. Additionally, with the assistance of the FBI and IRS, EDTX identified and disrupted at least 13 money mules through interviews, warning letters, and criminal charges.
The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”
“The Postal Inspection Service has zero tolerance for fraudsters who use the U.S. Mail to transport funds from scammed victims,” said Chief Postal Inspector Gary Barksdale. “Postal Inspectors use cutting-edge technology to build strong cases and campaigns like those announced today, which make significant progress towards disrupting money mule networks. Postal Inspectors and our law enforcement partners will be relentless in the pursuit of criminal organizations that perpetrate these schemes.”
The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules. AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.
Additionally, the American Bankers Association will be engaging with its members on money mules and the role of financial institutions in addressing the problem. The Department of Justice will also be distributing resources for state and local law enforcement on identifying, disrupting, investigating, and prosecuting money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money- mule-initiative.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The Department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
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.
Telemarketing Fraudster Pleads GuiltyRead the Press Release
PROVIDENCE – An Indian national today admitted to a federal judge in Providence that he participated in a wide-ranging conspiracy based in India to defraud United States citizens, primarily seniors, by telling victims that malware had been detected on their computers and, based on that falsehood, induced the victims to direct money to him and his coconspirators as payment for purported computer protection services that were not needed or ever provided.
The conspirators, in fact, did not detect malware on victims’ computers and accepted payment without providing any protection services.
Himanshu Asri, 33, of Delhi, India, admitted that he had 325 callers routed to call centers in India where call center operators falsely reasserted to victims that malware had been detected on their computers, and offered the victims purported computer protection services in exchange for payment. The purpose of the false assertions was to induce people into routing money to the fraudsters.
According to information presented to the court, from as far back as January 2015, through January 2020, Asri and others working together collected, in total, approximately $940,995 from victims through their fraud, and attempted to collect between $1,500,000 and $3,000,000. The actual loss was less than the intended loss because some of those who were targeted by Asri and his coconspirators did not send any funds to the fraudsters.
According to information presented to the court, the government and the defendant agree that many of Asri’s victims were vulnerable to fraud schemes due to age or infirmity, and the parties agree that the scheme pursued by Asri and his coconspirators were structured to exploit such persons, specifically persons over the age of 65.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Asri pleaded guilty to wire fraud conspiracy, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Asri, the 4th India-based telemarketing fraudster to be convicted in federal court in Rhode Island in the past three months, is scheduled to be sentenced on February 18, 2021. Wire fraud conspiracy is punishable by statutory penalties of up to 20 years in prison, three years of supervised release, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the FBI.
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Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas tax preparer pleaded guilty today in U.S. District Court to preparing and filing fraudulent tax returns on behalf of her clients (which caused a total tax loss of at least $1,500,000), announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation.
Baby Vasquez Beltran, 53, pleaded guilty to one count of aiding and assisting in the preparation and filing of a false tax return. U.S. District Judge Richard F. Boulware II scheduled a sentencing hearing for March 4, 2021.
According to court documents and admissions Beltran made in court, since at least 2008, she operated Speed Refund Tax Services, a tax return preparation business in Las Vegas. When preparing her clients’ tax returns, Beltran fraudulently claimed deductions to which her clients were not entitled. In total, for tax years 2012 through 2016, Beltran caused at least $1,500,000 in tax loss to the IRS.
The maximum statutory penalty faced by Beltran is three years in prison and a $250,000 fine.
The case was investigated by the IRS-CI. Assistant U.S. Attorney Tony Lopez is prosecuting the case.
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South Charleston Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Clay Dempsey, 37, of South Charleston, was sentenced to 36 months in prison for aiding and abetting the possession with intent to distribute a quantity of heroin.
“Great work by MDENT and the South Charleston Police Department in nabbing Dempsey and Banks,” said United States Attorney Mike Stuart. “The work of law enforcement ended the drug dealing careers of the defendants and kept nearly 150 grams of heroin off our streets and away from our families. We are committed to ridding our communities of poison peddlers like these two.”
Dempsey previously pled guilty and admitted that in February 2019, he allowed Troskey Banks to stay in his residence and store his heroin for distribution in exchange for heroin. MDENT detectives searched Dempsey’s residence on February 20, 2019, and located Dempsey, Banks, $7,530 cash, and approximately 147.955 grams of heroin intended for distribution. Dempsey also admitted that on January 27, 2020, at co-defendant Troskey Banks’ direction, he drove to Cleveland, Ohio and met with an individual. That individual then directed him to a location where a maroon minivan was parked. Dempsey switched the van he drove to Cleveland and drove the maroon minivan back to South Charleston. Banks directed him to park the minivan at a specific address in South Charleston. Dempsey parked the van at the location directed by Banks with the intent to come back later and meet with Banks to allow him to get inside the van and retrieve the controlled substances stored inside. Dempsey admitted that he knew that the purpose of his trip was to bring back controlled substances for Banks to distribute. Officers with the South Charleston Police Department later searched the van and recovered a bag of methamphetamine weighing 108.42 grams.
Banks was sentenced to five years in prison.
The Metropolitan Drug Enforcement Network Team (MDENT) and the South Charleston Police Department conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Monica D. Coleman handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00127.
Solano County Man Pleads Guilty to Narcotics and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Jesus Heriberto Barajas, 29, of Suisun City, pleaded guilty today to possession of cocaine and methamphetamine for distribution and possessing a firearm as a felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 11, 2019, police officers executed a search warrant at Barajas’ home in Suisun City. During the search, they found approximately 860 grams (1.9 pounds) of powder cocaine, 370 grams (0.8 pounds) of methamphetamine, a digital scale, and a stolen .40-caliber pistol that had been modified to function as a fully automatic machine gun. Barajas is not allowed to possess firearms or ammunition because he has previously been convicted of a felony offense.
This case is the product of an investigation by the Fairfield Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force, the Solano County District Attorney’s Office, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Barajas is scheduled to be sentenced by U.S. District Judge Troy Nunley on May 20, 2021. For each of the narcotics charges, Barajas faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 40 years in prison and a fine of up to $5 million. For the firearm charge, Barajas faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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 www.justice.gov/projectguardian.
Six Men Charged for Roles in Scheme to Defraud Businesses of Luxury Goods and ServicesRead the Press Release
Six men were charged in an indictment unsealed on Wednesday for their alleged participation in a nation-wide scheme to defraud dozens of businesses across the United States of luxury goods and services announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department's Criminal Division and U.S. Attorney Andrew Lelling of the District of Massachusetts.
Antonio Strong, 28, Herbert Wright, 24, Joseph Williams, 28, Steven Hayes Jr., 27, Demario Sorrells, 34, and Terrence Bender, 28, all from the greater Chicago, Illinois area, were charged with one count of conspiracy to commit wire fraud. In addition, Strong was charged with nine counts of aggravated identity theft and four counts of wire fraud; Williams was charged with three counts of aggravated identity theft; Wright, Bender, and Hayes were each charged with two counts of aggravated identity theft; and Sorrells was charged with one count of aggravated identity theft.
On Sept. 14, 2020, Strong was arrested and detained by a federal judge in the Northern District of Illinois; on Nov. 24, 2020, Williams self-surrendered in the Northern District of Illinois and was released on bond; on Nov. 19, 2020, Sorrells and Hayes were arrested in the Northern District of Illinois and released on bond; on Dec. 2, 2020, Bender self-surrendered in the Northern District of Georgia and was released on bond; and Wright self-surrendered today in the Central District of California. The defendants will make an initial appearance before U.S. Magistrate Judge Katherine A. Robertson in the District of Massachusetts on Dec. 7, 2020.
The indictment alleges that the defendants, often presenting themselves as musicians and promoters, engaged in a nation-wide scheme to defraud businesses and individuals across the United States of goods and services by using fraudulently obtained credit card account information. These goods and services included trips on private jets, private yacht charters, private chef and security guard services, designer puppies, limousine and chauffer services, and commercial airlines flights, among other things. The defendants allegedly used pseudonyms, including the names of other real persons, and purported to be from real and fictitious businesses to perpetuate the scheme and for the conspiracy to avoid detection from law enforcement.
The indictment further alleges that, because the defendants provided authentic credit card information, the defrauded businesses and individuals processed the transactions and provided the goods and services. When the actual payment cardholders challenged the transactions as fraudulent, the individuals and businesses who provided the goods and services consequently suffered losses.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Secret Service Boston Field Office. Trial Attorneys Michelle Pascucci and Andrew Tyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steve Breslow of the District of Massachusetts are prosecuting the case. The Justice Department also acknowledges and thanks the FBI’s Chicago Field Office and the Chicago Police Department for their assistance with this matter.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Six Drug Traffickers Indicted for Smuggling Thousands of Pounds of Marijuana Through the U.S. MailRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 4, 2020, Christopher Texidor, age 33, William Kuduk, age 34, Justin Laboy, age 33, Jose Laboy, age 36, and Jonathan Cobaugh, age 23, all from Harrisburg, Pennsylvania, and Jamie Valenzuela, age 29, of Santa Ana, California, were indicted by a federal grand jury on drug trafficking, violence, and firearms charges. The case was unsealed following the arrests of Texido, Kuduk, Justin and Jose Laboy, and Cobaugh on November 5, 2020 and Valenzuela on November 25, 2020.
According to United States Attorney David J. Freed, the indictment alleges that between October 2018 until May 2020, the defendants operated a marijuana smuggling operation out of Fastlane Auto Sales located on Paxton Street in Harrisburg. It is alleged that defendants mailed hundreds of parcels full of marijuana from California to Harrisburg and mailed cash back to California. The indictment also alleges that defendants used a sophisticated system of GPS tracking devices, which they placed in their parcels, to keep track of their drugs and money. Through this the scheme, it’s alleged that defendants brought thousands of pounds of marijuana to the Harrisburg area worth millions of dollars.
The indictment further alleges that defendants used guns, robbery, and kidnapping as tools to keep their criminal operation running. The defendants raided a home in Harrisburg of a person suspected of interfering with their drug trafficking activities; shot into an occupied home in Susquehanna Township; attempted to restrain and then robbed a victim of a motor vehicle in Highspire; and placed a tracking device on a vehicle to surveil a person believed to be interfering with their drug trafficking activities.
The case was investigated by the U.S. Postal Inspection Service, the Pennsylvania State Police, and the Dauphin County District Attorney’s Office. Assistant U.S. Attorney Michael A. Consiglio is prosecuting 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 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses are life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sex Offender Sentenced to Additional Prison Time for Violating Federal Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HERIBERTO BATIZ, 55, formerly of New Britain and New Haven, was sentenced today by U.S. District Judge Victor A. Bolden to 10 months of imprisonment for violating the conditions of his federal supervised release.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in March 2004, Batiz was sentenced in Hartford federal court to 120 months of imprisonment, followed by five years of supervised release, for trafficking crack cocaine. He was released from federal prison in July 2011. While Batiz was on supervised release, he repeatedly sexually abused an 11-year-old girl.
Batiz was convicted in state court of two counts of illegal sexual contact with a minor and, in October 2016, was sentenced to consecutive sentences of seven years of incarceration, followed by five years of special parole. He is currently in state custody.
Judge Bolden ordered the 10-month federal sentence to run consecutively with Batiz’s state sentence.
This case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Secretary-Treasurer of Maryland Labor Union Pleads Guilty to Embezzling More Than $294,000Read the Press Release
Greenbelt, Maryland – Sarah Geddes Holmes, age 65, of Clinton, Maryland, pleaded guilty today to the federal charges of embezzlement from a labor organization and bank fraud. Holmes, who was the Secretary-Treasurer of the International Association of Machinists and Aerospace Workers, Local Lodge 24, admitted that she embezzled $294,585.18 from the union.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards.
Between May 2015 and June 2018, Local 24 represented approximately 423 members, who worked for 10 different employers at Andrews Air Force Base. Local 24 members paid monthly dues that were intended to fund legitimate union purposes, including bargaining with employers, litigating grievances, and providing any administrative support that Local 24 required to conduct its business.
According to her guilty plea, from May 2015 through June 2018, while Holmes was the Secretary-Treasurer of the International Association of Machinists and Aerospace Workers, Local Lodge 24 (“Local 24”), she embezzled union funds by writing checks to herself, altering checks and entries in Local 24’s accounting software, and forging signatures. One hundred thirty-eight checks were signed only by Holmes, in violation of Local 24’s bylaws, which require that funds disbursed from the union’s account via check be countersigned by the President of Local 24. Holmes forged the second signature on 22 checks; and altered information in Local 24’s accounting software to fraudulently obtain 33 checks. Additional, in order to fraudulently deposit the Local 24 checks, Holmes altered the check numbers on 14 checks, as well as altered the dates on four of those 14 checks and altered the amount on one of those 14 checks. Finally, Holmes deposited one check twice—the second deposit being fraudulent. In total, Holmes deposited 160 fraudulent checks, totaling $294,585.18. Holmes deposited the checks into her personal checking account—primarily using a mobile application on her cellular phone.
Holmes used the fraudulently obtained union funds at casinos and to make personal purchases, including food, household goods, beauty supplies, online gaming, and other gambling-related charges. On 17 occasions, Holmes deposited fraudulent Local 24 checks, totaling $39,894.79 on the same day that her player card was used at Maryland Live! Casino.
As detailed in her plea agreement, in order to conceal her embezzlement, Holmes altered Local 24’s accounting software. In some instances, Holmes to made it appear as though the checks Holmes wrote to herself were authorized for a legitimate union purpose. In other instances, Holmes changed the amounts listed for some checks and/or changed the name of the payee or the memo attached to that check. The false records in Local 24’s accounting software resulted in false reports that were filed by the union with the Department of Labor and signed by Holmes as Secretary-Treasurer. On two occasions, on December 4, 2017, and April 23, 2018, Holmes returned a total of $30,000 to Local 24’s bank account. However, Holmes continued embezzling union funds by writing checks to herself during and after she made these deposits.
As part of her plea agreement, Holmes will be required to forfeit and pay restitution in the full amount of the victim’s losses, which is at least $264,585.18.
Holmes faces a maximum sentence of five years in federal prison for embezzlement from a labor organization and a maximum of 30 years in federal prison for bank fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for March 4, 2021 at 2:00 p.m.
United States Attorney Robert K. Hur commended the U.S. Department of Labor, Office of Labor - Management Standards for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Rajeev R. Raghavan and Erin B. Pulice, who are prosecuting the federal case.
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San Diego Man Admits to Robbing Bank Teller at KnifepointRead the Press Release
Assistant U. S. Attorney Megan Rossi (619) 546-9661
NEWS RELEASE SUMMARY – December 3, 2020
SAN DIEGO – Rafeek Omar Karamat of San Diego pleaded guilty in federal court today to bank robbery before U.S. Magistrate Judge Karen S. Crawford.
Karamat admitted that on September 30, 2020, at approximately 9:59 a.m., he entered the Navy Federal Credit Union in San Diego wearing a facecovering and approached a teller. Karamat walked around the corner of the teller’s desk, brandished a knife and demanded, “give me money,” and “give me what I came for.” The teller complied and provided Karamat with $2,500 in cash. Karamat then ran to a white Ford Ranger and sped away.
Karamat was arrested by La Mesa Police Officers shortly after fleeing the Navy Federal Credit Union. Karamat had the stolen money and a knife at the time of his arrest.
“Bank robberies are a terrifying experience for both customers and the tellers,” said U.S. Attorney Robert Brewer. “Thanks to the swift action of federal and local law enforcement agencies in this matter, this defenedant was quickly apprehended and justice has been achieved.” Brewer praised prosecutor Megan Rossi and the FBI for excellent work on this case.
“Robbing banks may sound old-fashioned in today's high-tech world, but it's a crime problem that continues to take a toll on financial institutions and communities across the nation,” said FBI Special Agent in Charge Suzanne Turner. “In San Diego, the FBI Violent Crimes Task Force is dedicated to working with our local partners to keep our communities safe from bank robbers and other violent criminals.” Brewer praised prosecutor Megan Rossi, the FBI and La Mesa Police Department for their excellent work on this case.
“Our community is a safer place thanks to the outstanding work of the responding officers and our partners at the FBI Violent Crimes Task Force and U.S. Attorney’s Office,” said Acting La Mesa Police Chief Ray Sweeney. “The collaboration between the La Mesa Police Department and our federal partners is a critical component to keep all of our citizens safe from violent crimes.”
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019 by U.S. Attorney Robert Brewer, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
Karamat is scheduled to be sentenced on February 22, 2021 at 9 a.m. before U.S. District Judge Anthony J. Battaglia.
DEFENDANT Case Number 20cr3392-AJB
Rafeek Omar Karamat Age: 35 San Diego, California
SUMMARY OF CHARGES
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Federal Bureau of Investigations
La Mesa Police Department
Salem County Man Admits Illegal Possession of WeaponRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man today admitted to illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.
Rahim Seals, 27, of Salem City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an indictment charging him with one count of possession of a firearm by a previously convicted felon.
According to documents filed in this case and statements made in court:
On Dec. 27, 2019, while Seals was walking in Salem City, detectives from the Salem County Prosecutor’s Office attempted to arrest Seals on an outstanding warrant. Seals fled and dropped a Sig Sauer P238 .380 caliber handgun loaded with seven hollow point rounds of ammunition. Seals has at least three prior felony convictions, including a controlled substance offense and two resisting arrest offenses.
The charge of possession of a weapon by a convicted felon is punishable by a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 8, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian .
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, Camden Field Office, with the investigation leading to today’s guilty plea. He also thanked the Salem City Police Department, under the direction of Chief John A. Pelura, III, and the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, for their assistance.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
SCANA Agrees to Settle Fraud Charges Stemming from Failed Nuclear Power Plant ExpansionRead the Press Release
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that SCANA Corp. and its subsidiary SCE&G have agreed to settle the Securities and Exchange Commission’s lawsuit charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned. The proposed settlement, which remains subject to court approval, would require SCANA to pay a $25 million penalty and require SCANA and SCE&G to pay $112.5 million in disgorgement plus prejudgment interest.
“Shareholders were deceived by SCANA and robbed of millions upon millions of dollars,” said U.S. Attorney McCoy. “I am hopeful that, along with the criminal charges brought forward by our office, this multimillion dollar civil fine and penalty shows that no person or organization is above the law.”
The SEC’s complaint filed in February 2020 alleged that SCANA, SCE&G, and two former senior executives misled investors by claiming that a project to build two nuclear units would qualify the company for more than $1 billion in tax credits when they knew the project was far behind schedule and therefore unlikely to qualify for the tax credits. The complaint alleged that the false statements and omissions boosted SCANA’s stock price and enabled it to raise rates on customers and sell more than $1 billion in bonds. In mid-2017, SCANA announced it was scrapping the project and, according to the complaint, investors lost hundreds of millions of dollars when the truth was revealed.
“The securities laws require public companies and their senior executives to speak truthfully in their statements to investors,” said Justin Jeffries, Associate Director of the SEC’s Atlanta Regional Office. “This settlement holds SCANA and SCE&G accountable for their alleged fraud and reinforces that companies must not deceive investors.”
The SEC’s complaint, filed in federal court in South Carolina, charged SCANA, SCE&G, SCANA’s former CEO Kevin Marsh and former executive vice president Stephen Byrne with violations of the antifraud provisions of the federal securities laws. The complaint charged SCANA, SCE&G and Marsh with reporting violations. Without admitting or denying the allegations, SCANA and SCE&G agreed to a permanent injunction and to pay $112.5 million in disgorgement plus prejudgment interest, which will be deemed satisfied by SCANA and SCE&G’s settlement payments and related rate payer and shareholder litigation. SCANA also agreed to pay a $25 million penalty. The litigation against Marsh and Byrne is still ongoing.
The case was handled in the District of South Carolina by Assistant United States Attorneys Beth Warren and James Leventis, while Justin Jeffries, Graham Loomis, Natalie Brunson, H.B. Robson, and John O’Halloran of the Atlanta Regional Office handled the litigation for the SEC.
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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.
Romanian National Sentenced to 40 Months’ Imprisonment for Bank Fraud and Identity Theft OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 1, 2020, Daniel Gologan, age 31, of Romania, was sentenced to 40 months’ imprisonment by United States District Judge Robert D. Mariani, for bank fraud and identity theft offenses.
According to United States Attorney David J. Freed, Gologan was convicted of conspiring to commit bank fraud between October 6, 2018 and October 21, 2018, and of aggravated identity theft. Gologan pleaded guilty to obtaining counterfeit debit cards bearing stolen account numbers and PINs in New York, and transporting them to South Abington Township, Pennsylvania. In Pennsylvania, Gologan and his coconspirator, Costel Aparaschivei used the counterfeit debit cards at Penn East Federal Credit Union and attempted to withdraw approximately $144,620. The conspirators successfully withdrew $66,510, which Judge Mariani ordered to be paid as restitution.
Gologan will be deported to Romania following the conclusion of his sentence. Gologan’s coconspirator, Aparaschivei, also pleaded guilty to bank fraud conspiracy and aggravated identity theft and awaits sentencing.
The matter was investigated by the United States Secret Service and by the South Abington Township Police Department. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Rocky Top Man Indicted for Oak Ridge Bank RobberyRead the Press Release
KNOXVILLE, Tenn. – A federal grand jury in Greeneville, Tennessee, returned a one count indictment on November 18, 2020 against Warren Calvin Lavender, 31, of Rocky Top, Tennessee charging him with robbing the One Bank of Tennessee Bank in Oak Ridge, Tennessee. Lavender entered a plea of not guilty to the charges in the indictment on December 3, 2020. Lavender will remain in custody pending trial, which has been set for December 28, 2020, in front of United States District Judge Travis McDonough.
Details of the robbery can be found in the criminal complaint and supporting affidavit on file with the U.S. District Court. According to the affidavit, on October 23, 2020, Lavender entered the One Bank of Tennessee Bank and passed a note to the teller demanding money.
The arrest of Lavender is the result of the joint efforts of the FBI Safe Streets Task Force, and the Oak Ridge Police Department. Assistant U.S. Attorney Cynthia F. Davidson will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Rochester Man Pleads Guilty to Possession of A Machine GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Graff, 44, of Rochester, NY, pleaded guilty today before U.S. District Judge David G. Larimer to possession of a machine gun. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000, or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that Graff was arrested after members of law enforcement intercepted and searched a package sent to him from an address in China. Officers found the package contained a Glock® conversion device which, when installed on a Glock® semi-automatic pistol, allows the pistol to discharge ammunition in fully automatic mode. On May 24, 2019, investigators delivered the package containing the device to Graff and then searched his residence pursuant to a search warrant. During the search, officers found the intercepted Glock® conversion device, as well as a second Glock® conversion device which the defendant admitted to ordering about a month earlier.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly. Additional assistance was provided by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the New York State Police, under the direction of Major Barry Chase; the Irondequoit Police Department, under the direction of Chief Alan Laird; and Customs and Border Protection in New York.
Sentencing is scheduled for May 12, 2021, at 2:30 p.m. before Judge Larimer.
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Rochester Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bryson McBride, 22, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possessing with intent to distribute cocaine and possessing a firearm with an obliterated serial number. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that on May 16, 2019, at a residence on Baycliff Drive in Rochester, the defendant possessed a quantity of cocaine, which was packaged for distribution. McBride also possessed quantities of fentanyl and acetyl fentanyl. In addition, the defendant possessed a 9mm semiautomatic pistol with an obliterated serial number.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for March 9, 2021, at 10:30 a.m. before Judge Siragusa.
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Rantoul Man Sentenced to 7 1/2 Years in Prison for Trafficking, Possession of Child PornographyRead the Press Release
URBANA, Ill. – Senior U.S. District Judge Michael M. Mihm today sentenced William Armstrong, 25, of the 1100 block of Falcon Dr., Rantoul, Ill., to serve 90 months in federal prison for transportation and possession of child pornography. Judge Mihm noted the violent nature of the images of infants and toddlers in violent and sadistic depictions.
On Aug. 21, 2020, Armstrong entered a plea of guilty to the indictment that charged him with one count of transportation and one count of possession of child pornography. Armstrong has remained in the custody of the U.S. Marshals Service since his arrest on June 12, 2020.
Following Armstrong’s release from prison at the end of his prison term, he will remain on federal supervised release for 10 years and will be required to register as a sex offender.
The case was prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges were investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Champaign County Sheriff’s Office; and the Illinois Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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 http://www.justice.gov/psc.
Previously Convicted Felon Sentenced for Armed Cocaine TraffickingRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to over 18 years in prison for conspiring to traffic wholesale amounts of cocaine in and around Hampton Roads and to possessing several guns to protect his drug trade.
According to court documents, Daryl Keith Sills, 57, completed a nine-year federal sentence for conspiring to distribute multiple kilograms of cocaine. Two years later, he started up his drug trafficking operation again, distributing at least one kilogram of powder cocaine a month until his October 2019 arrest on the charges in this case.
During the investigation, DEA agents conducted three controlled buys from Sills, totaling 140 grams of cocaine. Informants observed Sills receive and store in his residence more than 10 kilograms of cocaine. At Sills’ arrest, law enforcement searched his Norfolk and Virginia Beach drug premises, recovering a total of nine firearms, hundreds of rounds of ammunition, 713 grams of cocaine, and 74 grams of marijuana. Sills admitted to his years-long conspiracy and attributed 20 kilograms of historical cocaine weight to himself.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Larry D. Boone, Chief of Norfolk Police; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-2.
Previously Convicted Felon Charged with Illegal Possession of Handgun and Possession with Intent to Distribute FentanylRead the Press Release
CAMDEN, N.J. – A previously convicted felon will make his initial court appearance today on charges of illegal possession of a handgun and possession with intent to distribute fentanyl, U.S. Attorney Craig Carpenito announced.
Desmund M. Walker, 35, of Camden, is charged by complaint with one count of illegal possession of a handgun and one count of possession with intent to distribute fentanyl. He appeared by videoconference before U.S. Magistrate Judge Karen M. Williams and was detained without bail.
According to documents filed in this case and statements made in court:
On May 16, 2020, patrol officers from the Camden County Police Department – Metro Division encountered Walker in the vicinity of South 8th and Thurman streets in Camden. Walker fled from the officers, discarding a fully loaded Rohm, model RG10, .22 caliber revolver and cellular telephone as he scaled a fence and fled through Robert B. Johnson Park. Walker is a convicted felon and not permitted to possess a handgun under federal law. Walker was apprehended and found to be in possession of 0.19 grams of fentanyl wrapped in 93 white wax folds.
The maximum penalty for illegal possession of the firearm is 10 years in prison and a fine of up to $250,000. The maximum penalty for possession of fentanyl with intent to distribute is 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s charges. U.S. Attorney Carpenito also thanked the Camden County Police Department, under the direction of Chief Joseph D. Wysocki, for their assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pennsylvania Marketer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A Bryn Mawr resident pleaded guilty today to filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
According to court documents and statements made in court, Jordan Richter sold marketing services and products, including email lists, to stock promoters. From 2012 to 2014, Richter did business through Diamond Spot Media LLC, a partnership in which he was a 99.5 percent owner. Richter inflated business expenses on Diamond Spot’s tax returns to reduce the partnership’s reported income. These falsities also resulted in Richter underreporting income on his personal returns for the years 2012 through 2014. In total, Richter caused a tax loss to the IRS of over $100,000.
U.S. District Judge C. Darnell Jones II, scheduled sentencing for March 8, 2021. At sentencing, Richter faces a maximum sentence of three years for each count. Richter also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney William M. McSwain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Chingos of the Tax Division and Assistant U.S. Attorneys Murray and Smith, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pennsylvania Man Who Sold Counterfeit Prescription Pills Containing Fentanyl and Other Substances Pleads Guilty, Sentenced to More Than Four Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Jacob Leister, age 29, of Glenville, Pennsylvania, to 51 months in federal prison, followed by three years of supervised release, after Leister pleaded guilty to distribution of fentanyl and Alprazolam. Chief Judge Bredar also ordered Leister to forfeit $15,400 in the form of a money judgment, which represents the net proceeds of his sale of drugs to an undercover officer.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Interim Police Chief William Lowry.
According to his guilty plea, from December 2018 through September 2019, Leister sold purported prescription pills to an undercover law enforcement officer on several occasions. As a result of these sales, Leister distributed at least 56 grams of a mixture containing fentanyl and 708 pills containing Alprazolam.
As detailed in his plea agreement, on three occasions between December 18, 2018 and February 7, 2019, Leister sold the undercover officer a total of 600 pills purported to be Alprazolam. In fact the pills were found to contain flubromazolam, a substance similar to Alprazolam, but that is not a controlled substance. Between May 13, 2019 and July 25, 2019, Leister sold the undercover officer 499 pills purported to be Oxycodone, which in fact contained fentanyl. During that same timeframe, Leister sold the undercover officer 308 Alprazolam pills—that actually contained Alprazolam. On September 9, 2019, Leister sold the undercover officer 400 suspected Alprazolam pills for $800. The undercover officer paid Leister a total of $15, 400 for all of the pills.
On November 21, 2019, Leister sold the undercover officer a large quantity of suspected Alprazolam pills, and was then arrested by investigators. A search warrant was executed at Leister’s residence that same day. Law enforcement recovered a number of computers. Subsequent searches of the computers revealed information and photographs about bitcoin, cryptocurrency, and cryptocurrency exchanges; information about dark web marketplaces, where individuals can purchase drugs, among other things. Law enforcement also recovered a pump action tactical-style shotgun, two rifles, and another hunting-style shotgun, in addition to ammunition and magazines for the firearms.
United States Attorney Robert K. Hur commended the DEA, the U.S. Postal Inspection Service, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted the federal case.
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Paola Woman Sentenced for Methamphetamine TraffickingRead the Press Release
WICHITA, KAN. – A Paola woman was sentenced today to more than 11 years (135 months) in federal prison for methamphetamine trafficking, U.S. Attorney Stephen McAllister said.
April Lunsford, 39, Paola, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. The case began when the Kansas Bureau of Investigation started looking into a trafficking organization that was distributing methamphetamine in the Kansas City, Kan., area. Lunsford sold methamphetamine four times to buyers working undercover for law enforcement.
During the investigation, Lunsford was arrested and charged in Miami County District Court in connection with the death of 23-year-old Heather Briggs. Lunsford pleaded guilty to involuntary manslaughter and was sentenced to 98 months in state prison.
McAllister commended the KBI, the FBI and Assistant U.S. Attorney Sheri Catania for their work on the case.
Owner of Medical Marketing Company Pleads Guilty to Healthcare Fraud ConspiracyRead the Press Release
NASHVILLE, Tenn. – December 3, 2020 – A Mississippi man pleaded guilty yesterday in U.S. District Court in Nashville, to conspiracy to pay and receive healthcare kickbacks, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Vernon Sanders, 54 of Meridian, Mississippi, and owner of FastScripts, LLC, was charged in August with conspiring with unnamed co-conspirators to solicit and receive kickbacks and defraud the Medicare Program of $3,381,434.
Sanders was the owner of a marketing company and a patient broker who referred Medicare beneficiaries to laboratories in exchange for kickbacks and bribes. Sanders paid marketers to recruit Medicare patients to provide their genetic material, which he then referred to laboratories for Cancer genomic (“CGx”) testing in exchange for kickbacks. CGx testing uses DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future.
Sanders also paid kickbacks to doctors for signed orders for CGx tests, without regard for the medical necessity of the tests. Sanders was aware that these tests had been procured through the payment of kickbacks, including kickbacks he paid to a physician in Loretto, Tennessee, another co-conspirator. Sanders also paid illegal kickbacks to telemedicine companies in exchange for signed doctors’ orders for genetic testing.
From approximately June 2016 to January 2020, Sanders received approximately $383,260 in illegal kickback payments from laboratories and other marketing co-conspirators. As a result of Sanders’ participation in the conspiracy, Medicare paid laboratories approximately $3,381,434 in reimbursements they were not entitled to receive because the patients had been procured through kickbacks, including orders signed by the physician in Loretto.
Sanders faces up to five years in prison when he is sentenced on April 12, 2021,and a fine of up to $250,000; restitution to the Medicare program; and forfeiture of the ill-gotten proceeds.
This case was investigated by the Office of the Inspector General, Department of Health and Human Services. Assistant U.S. Attorney Sarah K. Bogni is prosecuting the case.
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Operation X-Nation: McDowell County Man Enters Guilty Plea to Federal Drug and Gun CrimesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that Jan Rucker, 28, of McDowell County, formerly of Princeton, pled guilty to possession with the intent to distribute hydromorphone and using and carrying a firearm during a drug trafficking crime. Rucker was charged as a result of a long-term, multi-state, investigation known as Operation X-Nation.
“Pills and guns – a combination we’ve seen again and again,” said United States Attorney Mike Stuart. “In turn, we’ll keep prosecuting gun-toting drug dealers again and again.”
Rucker admitted that on August 30, 2019, he was stopped by law enforcement officers while driving his truck in Princeton. After the traffic stop, law enforcement officers found approximately 507 hydromorphone pills, $1,543 in cash, and two firearms. Rucker admitted that he possessed the pills with the intent to distribute them in and around Mercer County. Rucker further admitted that he used and carried the firearms during the drug trafficking crime. Rucker also admitted that he now knows that law enforcement officers intercepted telephone calls prior to the traffic stop. As part of the plea agreement, Rucker agreed to forfeit the firearms recovered during the traffic stop as well as the $1,543 in cash that he admitted was proceeds of drug trafficking activity.
Rucker faces up to 20 years in federal prison on the drug offense, followed by a mandatory minimum period of five years on the gun charge, and a fine up to $1,250,000 when he is sentenced on March 23, 2021. After serving a term of imprisonment, Rucker will serve at least three years of supervised release.
Stuart commended the cooperative investigative efforts of the Drug Enforcement Administration (DEA), and the Southern Regional Drug and Violent Crime Task Force, which is composed of officers from the West Virginia State Police, the Mercer County Sheriff’s Department, the Princeton Police Department, and the Bluefield Police Department. Each agency provided additional and essential support throughout this investigation.
Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
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. 1:19-cr-00308.
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Oklahoma City Woman Pleads Guilty to Money Laundering ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cheyenne Grace Alexus Tiger, age 24, of Oklahoma City, Oklahoma entered a guilty plea to Money Laundering Conspiracy, in violation of Title 18, United States Code, Section 1956(h) and 1956(a)(2), punishable by not more than 20 years’ imprisonment, a fine up to $500,000.00, or both.
The Indictment alleged that from on or about July 15, 2019 through on or about the date of this indictment, in the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly combine, conspire, and agree with other persons known and unknown to the Grand Jury to commit offenses against the United States in violation of Title 18, United States Code, Section 1956, to wit: to transport, transmit and transfer and attempt to transport, transmit and transfer a monetary instrument and funds from a place in the United States to and through a place outside the United States with the intent to promote the carrying on of specified unlawful activity, i.e. the felonious importation, receiving, concealment, buying, selling, or otherwise dealing in methamphetamine.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace, Assistant United States Attorney Ryan Conway, and Special Assistant United States Attorney Christopher Schroeder represented the United States.
North Carolina Return Preparers Plead Guilty to Conspiring to Defraud the IRSRead the Press Release
WASHINGTON – Two Durham, North Carolina, return preparers pleaded guilty to conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina.
According to court documents, Karen Marie Jones owned Jones and Stone Taxes, a tax preparation business in Durham. From 2012 through 2016, Jones and another return preparer at Jones and Stone, Audrey Renetta Odom, conspired to falsify tax returns by fabricating education expenses, among other items, in an effort to inflate refunds paid to their clients by the IRS. The co-conspirators charged some clients up to $2,000 for preparing each return. In total, the defendants caused a tax loss to the IRS of more than $1.2 million.
Odom pleaded guilty on Dec. 2, 2020, and U.S. District Judge William L. Osteen, Jr. has scheduled a sentencing for Feb. 19, 2021. Previously, Jones pleaded guilty on Nov. 5, 2020, and U.S. District Judge Catherine C. Eagles has scheduled a sentencing for Feb. 25, 2021. Jones and Odom each face a maximum sentence of five years in prison for conspiracy. The defendants also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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North Carolina Return Preparers Plead Guilty to Conspiring to Defraud the IRSRead the Press Release
Two Durham, North Carolina, return preparers pleaded guilty to conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina.
According to court documents, Karen Marie Jones owned Jones and Stone Taxes, a tax preparation business in Durham. From 2012 through 2016, Jones and another return preparer at Jones and Stone, Audrey Renetta Odom, conspired to falsify tax returns by fabricating education expenses, among other items, in an effort to inflate refunds paid to their clients by the IRS. The co-conspirators charged some clients up to $2,000 for preparing each return. In total, the defendants caused a tax loss to the IRS of more than $1.2 million.
Odom pleaded guilty on Dec. 2, 2020, and U.S. District Judge William L. Osteen Jr. has scheduled a sentencing for Feb. 19, 2021. Previously, Jones pleaded guilty on Nov. 5, 2020, and U.S. District Judge Catherine C. Eagles has scheduled a sentencing for Feb. 25, 2021. Jones and Odom each face a maximum sentence of five years in prison for conspiracy. The defendants also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nine Men Indicted on Child Sex Crimes Charges Resulting from Rock Island FBI InvestigationRead the Press Release
ROCK ISLAND, Ill. – U.S. Attorney John Milhiser and FBI Springfield Special Agent in Charge Sean M. Cox announced that nine men previously arrested in Rock Island, Ill., have been indicted on charges of attempted enticement of a child to engage in sexual activity. In addition, several of the defendants have also been charged with related crimes including travel with the intent to engage in illicit sexual activity and soliciting images of child pornography. The men were previously charged by criminal complaint.
According to affidavits filed in support of the complaints, each of the men allegedly used mobile dating and social media applications to contact and engage with individuals whom they believed to be minors as young as 11, with the intent of meeting to engage in sexual activity.
The charges are the result of investigation by the Federal Bureau of Investigation with the assistance of the Rock Island Police Department; Illinois State Police; East Moline Police Department; Davenport Police Department; Galesburg Police Department; Knox County Sheriff’s Office; and, the Macomb Police Department. Assistant U.S. Attorneys Jennifer L. Mathew and Alyssa A. Raya are representing the federal government in the case prosecutions.
The defendants and their respective charges follow:
- Charles Walter Christopher, 42, of West Liberty, Iowa, a convicted sex offender currently serving a term of supervised release related to a similar case in the Southern District of Iowa; attempted enticement of a minor to engage in illicit sexual activity, travel with intent to engage in illicit sexual activity;
- Michael Robert McKinney, 23, of Silvis, Ill.; attempted enticement of a minor;
- Joseph Allen Wilcher, 39, of Cedar Rapids, Iowa; attempted enticement of a minor, travel with intent to engage in illicit sexual activity;
- Nicholas Bryan Swank, 31, of Muscatine, Iowa, a convicted sex offender; attempted enticement of a minor, travel with intent to engage in illicit sexual activity, and soliciting child pornography;
- Jeffrey Alan Bosaw, 52, of Bloomington, Ill.; attempted enticement of a minor;
- Douglas L. Christensen, 55, of East Moline, Ill.; attempted enticement of a minor, soliciting child pornography;
- Auston M. McLain, 35, of Davenport, Iowa; attempted enticement of a minor, travel with intent to engage in illicit sexual activity and soliciting child pornography;
- Damien Pernell Shepherd, 35, of Moline, Ill.; attempted enticement of a minor; and,
- Douglas Michael Speer, 30, of Johnston, Iowa; attempted enticement of a child (two counts), and travel with intent to engage in illicit sexual activity.
If convicted, for the offense of attempted enticement of a minor, each defendant faces a minimum of 10 years and up to life in prison; for travel with the intent to engage in illicit sexual activity, the penalty is up to 30 years in prison; for soliciting images of child pornography, the penalty is five to 20 years in prison.
Defendants Christopher, McKinney, Swank, Christensen, Shepherd, and Speer have been ordered detained in the custody of the U.S. Marshals Service. Wilcher and McLain were released on bond with conditions. Bosaw remains detained pending a detention hearing scheduled on Dec. 8, 2020.
Members of the public are reminded that indictments are merely accusations; each defendant is presumed innocent unless proven guilty.
These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Haven Man Charged with Possession of Ammunition as a Convicted FelonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in Hartford has returned an indictment charging MICHAEL WEINSTEIN, 27, of New Haven, with unlawful possession of ammunition by a convicted felon.
Weinstein was arrested on a federal criminal complaint charging him with the offense on November 18, 2020, and the indictment was returned on December 1. He is currently released on a $100,000 bond.
As alleged in court documents, in October 2020, law enforcement observed Facebook video posts of Weinstein firing a handgun at a Connecticut shooting range, and possessing ammunition.
The indictment alleges that, on October 14, 2020, Weinstein possessed .40 caliber ammunition manufactured by Speer. Prior to that date, Weinstein was convicted in state court of criminal possession of a gun, conspiracy to commit robbery in the third degree, and robbery in the first degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, Weinstein faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Conor M. Reardon.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
NFAC Leader “Grandmaster Jay” Charged with Assaulting Law Enforcement OfficersRead the Press Release
LOUISVILLE, Ky. – John F. Johnson, aka, “Grandmaster Jay” has been charged via criminal complaint with assaulting federal task force officers, announced United States Attorney Russell Coleman.
“Here in Kentucky we revere our First and Second Amendment freedoms, not foolishness which puts police and protesters at grave risk,” said U.S. Attorney Russell Coleman.
“The FBI respects the rights of individuals to peacefully exercise their First Amendment rights," said FBI Louisville Division SAC Robert Brown. "Our mission of protecting the American people and upholding the Constitution is dual and simultaneous, not contradictory. Accordingly, we are committed to investigating violent behavior and those who are exploiting legitimate, peaceful protests and engaging in violations of federal law.”
Johnson, 57, of West Chester, Ohio, was arrested at his home on December 3, 2020. He appeared before a federal judge in Louisville this afternoon.
According to the criminal complaint, Johnson forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with federally deputized task force officers while they were engaged in or on account of the performance of official duties, when Johnson aimed a rifle at them on September 4, 2020 in Louisville, Kentucky.
Johnson brandished an AR platform rifle at federally deputized Task Force Officers for the Federal Bureau of Investigation (FBI) the U.S. Secret Service, and Louisville Metro Police Department officers. The task force officers were on the roof of the Jefferson County Grand Jury Building keeping watch on Jefferson Square Park where there was armed protestors gathering.
Upon arriving at the eastern edge of the roof, the officers and task force officers began their surveillance. A short time after initiating surveillance, some of the officers were blinded by a light which they shortly thereafter determined was a flashlight mounted to the rifle being aimed at them by Johnson.
According to the complaint, the officers and task force officers advised they all perceived a threat from Johnson based on him aiming his rifle at them. All officers advised they were concerned Johnson might intentionally, or even accidentally, discharge a round at them. All officers recognized that the distance between themselves and Johnson was well within the effective range of an AR platform style rifle. Two of the officers advised that they were wearing their LMPD soft body armor, with “Police” semi-reflective placard identifying them, the night of September 4, 2020. None of the officers had drawn their handguns and only one of the officers had a rifle with him, which he did not point at Johnson or the NFAC members on Armory Place. All Officers advised that neither Johnson nor the other NFAC members perceived a threat from the officers on the roof, because neither Johnson or the other NFAC members moved to cover when they saw the officers on the roof of the Jefferson County Grand Jury Building.
If convicted at trial, the statutory maximum sentence is 20 years in federal prison.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a U.S. Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a Court of law.
The FBI Louisville Division and Louisville Metro Police Department are investigating this case.
This case falls with the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.
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Muskogee Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ervin Hernandez, age 33, of Muskogee, Oklahoma entered a guilty plea to Distribution Of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and Title 18, United States Code, Section 2, punishable by not less than 5 years and not more than 40 years’ imprisonment, a fine up to $5,000,000.00, or both.
The Indictment alleged that on or about July 18, 2019, within the Eastern District of Oklahoma, defendant, did knowingly and intentionally distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace, Assistant United States Attorney Ryan Conway, and Special Assistant United States Attorney Christopher Schroeder represented the United States.
More than 60 defendants charged in series of indictments targeting major gang-related transnational drug traffickersRead the Press Release
Southern District of Georgia U.S. Attorney Bobby L. Christine announces charges against 64 individuals in multiple indictments alleging major gang-related transnational drug trafficking operations during a news conference Thursday, Dec. 3, 2020, at the U.S. Attorney’s Office in Savannah. Along with other agencies represented, with him are Michael S. Carlson, Deputy Director of the Legal Division of the Georgia Bureau of Investigation (from left); John Melvin, Assistant Director of the GBI; and E. Greg Gilluly Jr., Assistant U.S. Attorney for the Southern District of Georgia.SAVANNAH, GA: A series of federal indictments unsealed in the Southern District of Georgia charges more than 60 defendants with felonies targeting interrelated, gang-affiliated transnational drug trafficking conspiracies that provided a pipeline of illegal drugs to coastal and south Georgia.
The investigation and indictments grew from recent drug trafficking prosecutions in Operation Vanilla Gorilla, which sent 43 felons to federal prison, and Operation Who’s Laughing Now, with 19 felons sentenced to prison, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The investigations and prosecutions, under the Organized Crime Drug Enforcement Task Forces, targeted widespread, gang-related drug trafficking organizations in the Southern District and beyond.
“The relentless, deliberate and systematic focus on large drug-trafficking rings, particularly those that use criminal street gangs to funnel narcotics from drug cartels into the Southern District, continues to disrupt and dismantle these poison-peddlers in our community,” said U.S. Attorney Christine. “It takes a network to defeat criminal gangs, and the collaboration with our law enforcement partners provides a powerful and effective network.”
The indictments in Operation Krack Down I and II, and Operation Stranded Bandit, allege the drug trafficking schemes began as early as 2017, and operated in Chatham, Liberty, Bryan, McIntosh, Wayne, Glynn, Tattnall, Effingham and Long counties, and in surrounding communities. The conspiracy transported illegal drugs into the Southern District from Mexico and Atlanta, aided by multiple criminal street gangs. In addition to the violent white supremacist Ghost Face Gangsters, gang affiliations among the defendants include the Chicago-based Almighty Simon City Royals; La Raza/SUR 13; Bloods; Vice Lords; Gangster Disciples; and Aryan Brotherhood.
As described in court documents, the defendants – many of them previously convicted felons – used their gang affiliations to aid in drug distribution while promoting “a climate of fear.” Some of the defendants, while incarcerated on state charges at the Georgia Department of Corrections Coastal Transition Center in Savannah, recruited others to the conspiracy and planned trafficking operations.
Led by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Drug Enforcement Administration (DEA) and the Georgia Bureau of Investigation (GBI), investigators from the Chatham County Police Department, the Savannah-Chatham Counter Narcotics Team (CNT) and other federal, state and local law enforcement agencies seized multiple kilograms of methamphetamine, along with large amounts of heroin and cocaine. Investigators also seized more than 60 illegally possessed firearms, with 19 of the defendants indicted on a total of 37 firearms-related offenses.
The investigation also developed information expected to aid in the investigation of a June 2019 murder that occurred during a Chatham County home invasion.
“This long-term investigation was a concerted, collaborative effort on the part of ATF and its federal, state and local partners to target criminal gang activity in the Southern District of Georgia,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “The resulting indictments are a great example of how you leverage law enforcement resources to target the offenders driving crime in the region.”
“Residents in a number of south Georgia communities can sleep better tonight knowing that the violent gang-related drug traffickers in this case can no longer peddle poison on the streets,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This case demonstrates how DEA and its law enforcement partners present a united front to disrupt, dismantle and destroy drug distribution networks.”
“This series of indictments is the direct result of the effective partnership between our local, state, and federal agencies,” said GBI Director Vic Reynolds. “We will work tirelessly together to hold accountable gang members and drug dealers who terrorize our neighborhoods. The GBI is dedicated to thoroughly investigate violent offenses to lead to successful prosecution.”
“Our detectives know that one crime is often linked to another, and they worked diligently to get several of these defendants into custody,” said Chatham County Police Chief Jeff Hadley. “We do not leave stones unturned, and look forward to our continued cooperation with fellow law enforcement agencies as we work together to put a stop to these dangerous criminal operations.”
A 40-count indictment in the Savannah Division in Operation Stranded Bandit names 35 defendants:
- Greg Baker, 31, an inmate at Wheeler Correctional Facility, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA (Ecstasy), and Alprazolam (Xanax), a charge that carries a penalty of up to life in prison; and Possession with Intent to Distribute Methamphetamine;
- Jason Barker, 31, an inmate at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession with Intent to Distribute 5 Grams or More of Methamphetamine;
- Tiffany Barton, a/k/a “Bozar,” 37, of Ellabell, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Victor Blanco Lopez, a/k/a “Victoriano,” 50, an inmate at the Clayton County, Ga., Jail, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Joseph Joshua Boring, a/k/a “Josh,” a/k/a “JB,” 31, an inmate at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; Possession with Intent to Distribute 5 Grams or More of Methamphetamine; and Possession of a Firearm by a Convicted Felon;
- Leroy Bozarth, a/k/a “Jack Turtlehead,” 37, an inmate at the Sheridan Correctional Center in Sheridan, Ill., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession with Intent to Distribute MDMA;
- Edward Evan Branen, 38, an inmate at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; Possession of a Firearm by an Illegal Drug User; Possession with Intent to Distribute Methamphetamine; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Marquise Byrd, 29, an inmate at the Effingham County Jail, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; four counts of Possession of a Firearm by a Convicted Felon; Possession with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Nathan Coughlin, 35, an inmate at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; two counts of Distribution of Methamphetamine; Possession with Intent to Distribute Methamphetamine and Alprazolam;
- Jacqueline Echols, a/k/a “Jackie,” 35, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; Possession with Intent to Distribute Methamphetamine;
- Danielle Edgerton, 34, of Bloomingdale, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Lee Allen Edwards, 38, of Fleming, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; two counts of Distribution of Methamphetamine; Possession of a Firearm by an Illegal Drug User; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Thomas Logan Edwards, 38, of Fleming, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession of a Firearm by a Convicted Felon;
- Yesica Garcia, 28, an inmate at the Jones County Jail, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Joshua Griffin, a/k/a “Dough Boy,” 35, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession of a Firearm by a Convicted Felon;
- William Hamilton, a/k/a “Hambone,” 40, of Guyton, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- April Hardy, 36, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession with Intent to Distribute 5 Grams or More of Methamphetamine;
- Holly Heddle, a/k/a “Goldie Locks,” 27, of Pooler, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and three counts of Possession of a Firearm by a Convicted Felon;
- Christopher Grass, a/k/a “Chris Lane,” a/k/a “Joker,” 36, of Hinesville, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Dustin Lax, a/k/a “Wingnut,” a/k/a “Tyrone White,” 45, an inmate at Wilcox State Prison, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Craig Mitchell, a/k/a “Rojo,” 46, an inmate at Georgia Department of Corrections Milledgeville, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Pratt Mitchell, 40, of Bloomingdale, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Ruth Monje, a/k/a “CC,” 28, an inmate at the Jones County Jail, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Jesse Myers, 37, of Bloomingdale, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Ashley Renee Parrish, a/k/a “Kickin Renee,” 35, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; Possession with Intent to Distribute 50 Grams or More of Methamphetamine; Possession of a Firearm by an Illegal Drug User; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession with Intent to Distribute 5 Grams or More of Methamphetamine; and two counts of Distribution of 5 Grams or More of Methamphetamine;
- Justin Path, a/k/a “JP,” a/k/a “Sherm,” 29, an inmate at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Jonathan Richardson, a/k/a “G,” 37, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- David Hamilton Sharpe, a/k/a “David Dukkedoff,” 27, of Pembroke, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession with Intent to Distribute Methamphetamine;
- Michael Brandon Sharpe, 44, of Pembroke, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Kristin Sheppard, a/k/a “Kristin Shine,” a/k/a “K Shine,” 30, an inmate at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession with Intent to Distribute 5 Grams or More of Methamphetamine;
- Heather Sloan, a/k/a “Honey,” a/k/a “Penny,” a/k/a “Marie,” 34, an inmate at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam;
- Austin Tyler Todd, a/k/a “Mario,” 31, an inmate at Lee State Prison, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession with Intent to Distribute 50 Grams or More of Methamphetamine and a Quantity of Heroin;
- Reannon Warnock, 25, an inmate at the Chatham County Jail, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; and Possession with Intent to Distribute Methamphetamine;
- Michael Travis Williams, a/k/a “Trap,” 37, an inmate at Lee State Prison, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam; Possession with Intent to Distribute MDMA; Possession with Intent to Distribute 50 Grams or More of Methamphetamine; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and,
- Jose Zepeda, 35, an inmate at the Jones County Jail, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin, MDMA, and Alprazolam.
A 24-count indictment in the Savannah Division in Operation Krack Down I charges 17 defendants:
- Beth Roberson, 35, of Richmond Hill, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin and Cocaine, a charge that carries a penalty of up to life in prison;
- William Carl Roberson, a/k/a “CJ,” 44, of Richmond Hill, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of Methamphetamine, and Quantities of Heroin and Cocaine;
- Dodge Roberson, 43, of Midway, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin and Cocaine;
- Elizabeth Ashlee Rayman, 28, of Ludowici, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin and Cocaine; and two counts of Possession with Intent to Distribute Methamphetamine;
- Deron Hopkins, a/k/a “Big D,” 33, of Hinesville, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin and Cocaine; two counts of Possession with Intent to Distribute 5 Grams or More of Methamphetamine; and Possession of a Firearm by an Illegal Drug User;
- Trevor Blount, 30, of Fleming, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin and Cocaine; and National Firearms Registration (alleging possession of an unregistered, sawed-off shotgun);
- Michael Haggerty, 34, of Hinesville, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin and Cocaine; Possession with Intent to Distribute Methamphetamine and Cocaine; Possession of Firearms in Furtherance of a Drug Trafficking Crime; and two counts of Possession with Intent to Distribute Methamphetamine;
- Almon Drew Burchfield, a/k/a “Drewdog,” 46, of Ludowici, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Quantities of Heroin and Cocaine; and Possession with Intent to Distribute 5 Grams or More of Methamphetamine;
- Zachary Taylor, 36, of Glennville, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Heroin and Cocaine; and Possession with Intent to Distribute Methamphetamine;
- Kelly Taylor, 39, of Glennville, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Heroin and Cocaine; and Possession with Intent to Distribute Methamphetamine;
- John Hope Jr., 26, of Townsend, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of methamphetamine, and a quantity of Heroin and Cocaine; and with Interference with Commerce by Robbery, Possession of a Firearm During and in Relation to a Crime of Violence, and Possession of a Stolen Firearm. The latter charges stem from the Jan. 3, 2020, armed robbery of the El Cheapo Gas Station in Riceboro, Ga.;
- Cruz Lawson, 33, of Jesup, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute methamphetamine, Heroin and Cocaine; and Possession with Intent to Distribute Methamphetamine, Heroin and Cocaine;
- Byron Anderson, 48, of Hinesville, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute methamphetamine, Heroin and Cocaine; and Possession with Intent to Distribute Methamphetamine;
- Myra Prevatt, 34, of Townsend, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of methamphetamine, and a quantity of Heroin and Cocaine; Possession with Intent to Distribute Methamphetamine and Cocaine; Possession of Firearms in Furtherance of a Drug Trafficking Crime; and three counts of Possession with Intent to Distribute Methamphetamine;
- Steven Odum, 34, of Florala, Ala., charged with Conspiracy to Possess with Intent to Distribute and to Distribute methamphetamine, Heroin and Cocaine; Possession with Intent to Distribute Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Rosaleen Behnke, a/k/a “Leena,” 40, listed as homeless, charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of methamphetamine, and a quantity of Heroin and Cocaine; Possession with Intent to Distribute Methamphetamine; and Possession with Intent to Distribute 5 Grams or More of Methamphetamine; and,
- Tyler Marshall, 26, of Townsend, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of Methamphetamine, and a quantity of Heroin and Cocaine; and with Interference with Commerce by Robbery in relation to the Jan. 3, 2020, armed robbery of the El Cheapo Gas Station in Riceboro, Ga.
A nine-count indictment in the Brunswick Division in Operation Krack Down II charges eight defendants:
- Kayode Davis, a/k/a “Yodi,” 30, of Atlanta, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Heroin, Possession with Intent to Distribute 5 Grams or More of Methamphetamine and a Quantity of Heroin; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Bradley Harrison, 25, of Brunswick, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Heroin; False Statements During Purchase of a Firearm; and Possession of a Firearm by a Convicted Felon;
- Tyler Woodcock, 26, of Jesup, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Heroin; and Possession with Intent to Distribute 5 Grams or More of Methamphetamine and a Quantity of Heroin;
- Bradley Scott, 28, of Jesup, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Heroin; Possession of a Firearm by a Convicted Felon; and Possession with Intent to Distribute Hydromorphone;
- Jesse Grossman, 34, of Jesup, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Heroin; Possession with Intent to Distribute 5 Grams or More of Methamphetamine and a Quantity of Heroin; and,
- Brittney Goodbread, 35, of Brunswick, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Heroin; False Statement During Purchase of a Firearm; and Transfer of a Firearm to a Convicted Felon.
Four additional defendants were indicted on separate federal charges related to the investigations, including:
- Brian Sasser, 42, of Richmond Hill, Ga., charged with two counts of Possession of a Firearm by a Convicted Felon.
- Brittny Hilton, 24, of Fleming, Ga., charged with two counts of False Statement During Purchase of a Firearm; and two counts of Transfer of a Firearm to a Prohibited Person.
- Amanda Orrell, 40, of Savannah, charged with False Statement During Purchase of a Firearm; and Transfer of a Firearm to a Prohibited Person.
- Dederick Bryant, a/k/a “Hinesville D,” a/k/a “D,” 33, of Hinesville, Ga., charged with Distribution of Methamphetamine; and Possession with Intent to Distribute Methamphetamine.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
This cases are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. It is being investigated by the ATF, DEA, FBI, U.S. Marshals Service, U.S. Customs and Border Protection, GBI, CNT, the Chatham County Police Department, the Georgia Department of Community Supervision, the Georgia Department of Corrections; sheriff’s offices from Effingham, Bryan, Jones, Clayton, Liberty, Chatham, Long, Glynn and Wayne counties; and police departments from Pooler, Savannah, Richmond Hill, Pembroke, Hinesville, and Glynn County. The case is being prosecuted for the United States by Assistant U.S. Attorney and OCDETF Coordinator Marcela C. Mateo, and by Assistant U.S. Attorneys Karl Knoche, E. Greg Gilluly Jr., and Jennifer Kirkland, in coordination with the Chatham County District Attorney’s Office, the Ocmulgee Judicial Circuit District Attorney’s Office, the Atlantic Judicial Circuit District Attorney’s Office, the Brunswick Judicial Circuit District Attorney’s Office, and the Clayton County Judicial Circuit District Attorney’s Office.
Monmouth County Man Admits Unlawfully Possessing MachinegunRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted being a felon in possession of a firearm and unlawfully possessing a machinegun, U.S. Attorney Craig Carpenito announced.
Davon Harley, 30, of Neptune City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an indictment charging him with one count of being a felon in possession of a firearm and one count of unlawful possession of a machinegun.
According to documents filed today and statements made in court:
In February 2020, a Neptune City Police officer confronted Harley, a previously convicted felon, who was arguing with others in the yard of an apartment complex. Harley fled through the apartment complex into neighboring properties and discarded a handgun that, upon inspection, had been altered to fire exclusively in fully automatic mode. The weapon had a magazine capable of holding 31 rounds of ammunition. Law enforcement officers, assisted by the Neptune Township and Asbury Park police departments, located Harley and the machinegun and magazine that Harley had discarded. The magazine contained 22 rounds of ammunition.
The felon in possession of a firearm and possession of a machinegun charges each carry a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 12, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; officers of the Neptune Township Police Department, under the direction of Chief of Police James M. Hunt, Jr.; officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso; officers of the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Missouri Man with Prior Child Sex Conviction Sentenced for Possessing Child Porn in KansasRead the Press Release
KANSAS CITY, KAN. – A Missouri man with a prior child sexual exploitation conviction was sentenced today to 12 years in federal prison for possessing child pornography, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $3,000 in restitution.
William Lockwood, 41, who lived in Kansas City, Kan., at the time of the crime and now lives in Pleasant Valley, Mo., pleaded guilty to one count of possessing child pornography. The investigation began when Dropbox sent a tip to the National Center for Missing and Exploited Children. In his plea, Lockwood admitted he uploaded child pornography to the Dropbox account and provided access to other users.
Investigators seized 26 videos of child sexual abuse from Lockwood’s account. In 2012, Lockwood was convicted in Collier County, Fla., on a charge of obscene communication for the purpose of luring a child for sex.
McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Mercer County Man Sentenced to 10 Years in Prison for Being Felon in Possession of FirearmRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 120 months in prison for being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Rasheed McNair, 41, of Ewing, New Jersey, was previously convicted of being a felon in possession of a weapon following a two-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. Judge Sheridan imposed the sentence by videoconference today.
According to documents filed in this case and the evidence at trial:
On Feb. 18, 2018, two Trenton Police detectives in the Street Crimes Unit were driving through the area of Oakland Street and Hoffman Avenue in Trenton when one of them observed McNair standing in an open doorway in a public housing complex and holding what was later identified as a Smith & Wesson .40 caliber semiautomatic handgun.
McNair tucked the handgun into his jacket and ran up the stairwell of the building. After giving chase, one of the detectives observed McNair remove the handgun from inside his jacket and attempt to hide it under a doormat in front of an apartment. The other detective retrieved the firearm from under the doormat and rendered it safe. The weapon was later found to be loaded with 11 rounds of ammunition in the magazine and one round in the chamber, and its serial number had been obliterated.
In addition to the prison term, Judge Sheridan sentenced McNair to three years of supervised release.
U.S. Attorney Carpenito credited the Trenton Police Department, under the direction of Police Director Sheilah A. Coley; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Member of Violent Baltimore Drug Trafficking Organization Pleads Guilty to Federal Charges, Including MurderRead the Press Release
Baltimore, Maryland – Justin Antoine, a/k/a Justo, age 24, of Baltimore, Maryland, a member of a drug trafficking organization operating in Southwest Baltimore, pleaded guilty today to the federal charges of conspiracy to distribute crack cocaine and to discharging a firearm resulting in death during and in relation to a drug trafficking crime. In addition to the murder, Antoine admitted to being part of a shoot-out where a bystander was shot.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Federal, state, and local law enforcement are working together to target members of violent drug gangs operating in Baltimore City,” said U.S. Attorney Robert K. Hur. “Justin Antoine’s activities demonstrate how this drug trafficking organization brought danger to our community through the deadly combination of guns and drugs. Now Justin Antoine likely faces at least 20 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
“Today’s guilty plea represents how law enforcement agencies are working together in the state of Maryland to target and dismantle violent street gangs that threaten the safety and stability of our neighborhoods,” said FBI Baltimore Special Agent in Charge Jennifer C. Boone. “The citizens of Maryland have the FBI’s commitment that we will work with our local, state and federal partners to attack these dealers and remove violent criminals from their neighborhoods.”
According to his plea agreement, from at least April 2018 through January 2019, Antoine participated in a drug trafficking organization (DTO) operating in and around the Edmondson Village neighborhood of southwest Baltimore. The DTO sold heroin and crack cocaine on a daily basis in street-level quantities. Antoine regularly sold heroin and crack cocaine, which he obtained from other members of the DTO.
As detailed in his plea agreement, on several occasions in early 2018, individuals in the Edmondson Village robbed Antoine, stealing drugs, drug proceeds, and a cell phone that Antoine used to communicate with drug customers.
Antoine admits that on May 8, 2018, he sought out victim “J.D.” because Antoine believed J.D. was one of the participants in these robberies. Antoine was armed with a loaded pistol and went to the Mary Rodham Recreation Center. Once at the location, Antoine walked up to J.D. and shot him two times in the head, killing J.D. Antoine acknowledged that this was an intentional killing and occurred during and in relation to his drug trafficking activities. Following the murder of J.D., Antoine continued to distribute heroin and crack cocaine. In November 2018, Antoine was standing on the block where he frequently distributed drugs when a vehicle operated by friends of J.D. arrived. At least one occupant of that vehicle fired a gun at Antoine. Antoine was armed with a handgun and shot back at the vehicle. During this exchange of gunfire, a bystander was struck by gunfire.
Law enforcement arrested Antoine on January 10, 2019, as he was traveling to work. Investigators seized a loaded firearm and heroin from Antoine. Antoine admits that he possessed the heroin with the intent to distribute the drugs.
Antoine and the government have agreed that, if the court accepts the plea, Antoine will be sentenced to between 20 and 25 years in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for Antoine on March 18, 2021, at 12:00 p.m.
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. 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.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the FBI, the ATF, and the Baltimore Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Michael Goldsticker, who are prosecuting the case.
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Member of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Raekwan Paris, a/k/a “King Debo,” 25, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for March 25, 2021.
Paris admitted to his role in a February 2019 shooting of rival gang members and his participation in the Latin Kings drug distribution conspiracy based in the City of New Bedford. In New Bedford, the Latin Kings ran a vast cocaine base distribution network that used multi-unit apartment buildings known as “trap houses” to distribute the narcotics. Members of the Latin Kings dealt drugs in the trap houses, obtaining their supply of cocaine base from co-defendant, and leader of the New Bedford Chapter of the Latin Kings, Jorge Rodriguez, a/k/a “King G.” Evidence developed during the course of the investigation included multiple recordings of Latin Kings members cooking cocaine base, directing violence against rival gang members, meting out discipline, and handling firearms used to protect the Latin Kings’ drug distribution network.
With respect to the shooting, according to court documents, Paris fired multiple gunshots at rival gang members who were observed leaving a Latin Kings trap house. Shortly after the shooting, Paris was captured on a recording made by a cooperating witness admitting to shooting at the rival gang members and firing eight shots but not striking anyone.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Paris is the 25th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
McAlester Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tiffany Ann Meeks-Davis, age 33, of McAlester, Oklahoma entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that beginning in or about January 2017, the exact date being unknown to the Grand Jury, and continuing until on or about the date of Indictment, in the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally combine, conspire, confederate, and agree with others known and unknown to the Grand Jury to commit offenses against the United States by knowingly and intentionally distributing 50 grams or more of methamphetamine (actual).
The charges arose from a joint investigation led by the Drug Enforcement Administration (“DEA”), along with the Bureau of Indian Affairs (“BIA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Internal Revenue Service (“IRS”), the United States Postal Inspection Service (“USPIS”), the Oklahoma Bureau of Narcotics (“OBN”), the National Guard Counterdrug Task Force, the Haskell County Sheriff’s Office, the District 18 District Attorney’s Drug Task Force, the Seminole Nation Lighthorse Police, the Choctaw Nation Tribal Police, the Pittsburg County Sheriff’s Office, the McAlester Police Department, and the Stigler Police Department. The investigation was part of and include members of the DEA High Intensity Drug Trafficking (“HIDTA”) Task Force.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace, Assistant United States Attorney Ryan Conway, and Special Assistant United States Attorney Christopher Schroeder represented the United States.
Maryland Lawyer Facing Federal Indictment in Maryland for Defrauding Financial Institutions and Other Entities to Obtain Control over More Than $12.5 Million of Somali Sovereign AssetsRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an indictment yesterday charging Maryland lawyer Jeremy Schulman, age 45, of Bethesda, Maryland, on federal charges for wire fraud, mail fraud, bank fraud, and money laundering conspiracies, and three counts of wire fraud, one count of mail fraud, one count of bank fraud, and four counts of money laundering, in connection with his alleged participation in a scheme to defraud financial institutions of more than $12.5 million that was held on behalf of the Somali government.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
The 11-count indictment alleges that from 2009 to 2014, Schulman conspired with others to fraudulently obtain control of financial assets held on behalf of the Somali Government around the world and enrich himself and his co-conspirators by taking a portion of those assets in fees and expenses. To effectuate this scheme, Schulman and others allegedly created false documents regarding Schulman’s authority to recover assets on behalf of the Somali government. Schulman presented these allegedly false documents to a federally insured bank and other institutions. In addition to using forged and fraudulent documents, Schulman also allegedly made material misrepresentations and concealed material information from these banks and institutions regarding his authority to act on behalf of the Somali government.
As a result of this scheme, Schulman, his co-conspirators, and the law firm where Schulman was a shareholder ultimately obtained control of approximately $12.5 million of frozen Somali funds. Schulman caused his law firm to improperly retain more than $3.3 million of the Somali funds while remitting the rest to the Somali government. Schulman received hundreds of thousands of dollars of additional compensation from his law firm based on the revenue from the scheme, and allegedly engaged in further fraud and money laundering to cause a portion of the funds retained by his law firm to be wired to accounts for the benefit of his co-conspirators.
If convicted, Schulman faces a maximum sentence of 30 years in federal prison for conspiracy to commit wire fraud, mail fraud, and bank fraud and a maximum of 30 years in federal prison for each count of wire fraud, mail fraud, and bank fraud. Schulman also faces a maximum of 10 years in federal prison for the money laundering conspiracy and for each count of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Schulman is expected to have an initial appearance in U.S. District Court in Greenbelt, on Monday, December 7, 2020, before U.S. Magistrate Judge Gina L. Simms.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If you believe you are a victim of this offense, please call (888) 549-3945 or visit https://www.justice.gov/criminal-fraud/victim-witness-program.
United States Attorney Robert K. Hur and Acting Assistant Attorney General Brian C. Rabbitt commended the FBI and IRS-CI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney David Salem and First Assistant U.S. Attorney Jonathan F. Lenzner and Trial Attorneys Jason Manning and Amy Markopoulos of the Criminal Division’s Fraud Section, who are prosecuting the case.
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Maryland Lawyer Charged with Defrauding Financial Institutions and Other Entities to Obtain Control over $12.5 Million of Somali Sovereign AssetsRead the Press Release
UPDATE: On Aug. 30, 2024, the court granted the United States' motion to dismiss the charges announced in the press release below.
A Maryland lawyer was charged in an 11-count indictment for his alleged role in a scheme to fraudulently obtain control of more than $12.5 million that was held by financial institutions on behalf of the Somali government, to improperly take part of those funds for fees and expenses, and to launder a portion of those funds to accounts for the benefit of his co-conspirators.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland, Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office, and Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s Washington D.C. Field Office made the announcement.
Jeremy Schulman, 47, of Bethesda, Maryland, was charged in an indictment filed in the District of Maryland with one count of conspiracy to commit mail fraud, wire fraud and bank fraud; three counts of wire fraud; one count of mail fraud; one count of bank fraud; one count of conspiracy to commit money laundering; and four counts of money laundering.
The indictment alleges that from 2009 to 2014, Schulman conspired with others to fraudulently obtain control of financial assets held on behalf of the Somali government around the world and enrich himself and his co-conspirators by taking a portion of those assets in fees and expenses.
To effectuate this scheme, Schulman and others allegedly created false documents regarding Schulman’s authority to recover assets on behalf of the Somali government. Schulman presented these allegedly false documents to a federally insured bank and other institutions. In addition to using forged and fraudulent documents, Schulman also allegedly made material misrepresentations and concealed material information from these banks and institutions regarding his authority to act on behalf of the Somali government.
As a result of this scheme, Schulman, his co-conspirators, and the law firm where Schulman was a shareholder ultimately obtained control of approximately $12.5 million of frozen Somali funds. Schulman caused his law firm to improperly retain more than $3.3 million of the Somali funds while remitting the rest to the Somali government. Schulman received hundreds of thousands of dollars of additional compensation from his law firm based on the revenue from the scheme, and allegedly engaged in further fraud and money laundering to cause a portion of the funds retained by his law firm to be wired to accounts for the benefit of his co-conspirators.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-fraud/victim-witness-program or call (888) 549-3945.
This case was investigated by the FBI’s Baltimore Field Office and IRS-Criminal Investigation’s Washington D.C. Field Office. Trial Attorneys Jason Manning and Amy Markopoulos of the Criminal Division’s Fraud Section, and First Assistant U.S. Attorney Jonathan Lenzner and Senior Litigation Counsel David Salem of the the District of Maryland are prosecuting the case. The Justice Department’s Office of International Affairs also provided assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
Longtime Fugitive Tax Preparer Sentenced to Prison for Tax OffensesRead the Press Release
JOHNSTOWN, Pa. – A longtime fugitive has been sentenced in federal court to 33 months in prison, three years’ supervised release and ordered to pay restitution to the Internal Revenue Service in the amount of $82,129, on his conviction of filing false claims against an agency of the United States, U.S. Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on William Fabiseski, 46, of Tunkhannock, Pa.
According to information presented to the court, from Feb. 10, 2007, to Aug. 23, 2008, Fabiseski, while incarcerated at the State Correctional Institute in Houtzdale, Pa., prepared and filed false, fictitious, and fraudulent income tax returns using the personal identifying information of his fellow inmates knowing such claims were false. The claims he prepared and filed were false in that the purported claimant’s address was false, and the wage and withholding information was false. Fabiseski then kept the proceeds.
Fabiseski was indicted on Jan. 31, 2012, by a federal grand jury in Pittsburgh on charges of filing a false claim against an agency of the United States, After more than seven years on the run, the United States Marshals Service located and arrested the defendant on October 1, 2019, in Scranton, Pa. He was returned to the Western District of Pennsylvania for prosecution.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Internal Revenue Service Criminal Investigation Division for conducting the investigation leading to the prosecution of Fabiseski.
Local man faces prison for illegally pointing laser at helicopterRead the Press Release
McALLEN – A 42-year-old man from Edcouch has pleaded guilty to aiming a laser pointer at an aircraft, announced U.S. Attorney Ryan K. Patrick.
Luz Fernando Solis admitted that on May 3, he knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter.
The aircraft was providing assistance to local law enforcement when a laser beam struck the DPS helicopter twice. Authorities observed an individual, later identified as Solis, at the location where the laser beams originated.
They conducted a search of his residence and found the laser pointer.
Lasers have a dangerous effect on pilots when the beams of light strike an aircraft. The light can temporarily blind them. A laser, when aimed at an aircraft, can create a visual distraction or cause discomfort or even damage to a pilot’s eyes.
U.S. District Judge Micaela Alvarez will impose sentencing on Feb. 11, 2021. At that time, Solis faces up to five years in federal prison and a possible $250,000 maximum fine.
Solis was permitted to remain on bond pending sentencing.
The FBI and DPS conducted the investigation. Assistant U.S. Attorney Frances Blake Land is prosecuting the case.
Local Spokane Large Scale Prolific Drug Trafficker Sentenced to 19.5 Years in Federal Prison Following Seizure of Multiple Pounds of Methamphetamine and HeroinRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that James Matthew Ethrington, age 33, a resident of Spokane, Washington, was sentenced today after having pleaded guilty on September 3, 2020, to possession with intent to distribute 50 grams or more of actual (pure) methamphetamine. United States District Judge Thomas O. Rice sentenced Ethrington to a 235 month term of imprisonment, to be followed by a five year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in August, 2019, the Spokane Police Department conducted a traffic stop of James Ethrington when they observed suspicious activity related to a potential stolen vehicle. Ethrington identified himself and informed the officer that his driving status was suspended. During the contact, the officer observed common drug-use paraphernalia in the driver’s area of the vehicle. Ethrington was arrested on an unrelated warrant. A subsequent search of Ethrington and his vehicle revealed approximately $9,953 in U.S. Currency and counterfeit currency, approximately 5 pounds of methamphetamine, and approximately 1 pound of heroin. Additionally, there was a cup with heroin residue, two digital scales, and empty plastic bags with heroin residue in them, which all indicate the conversion of large quantities of controlled substances into smaller quantities for sale.
During sentencing it was noted Ethrington had been caught with pound-quantities of methamphetamine as well as heroin during three separate law enforcement contacts over the course of about 9 months. Each time, Ethrington also had possession of a large sum of U.S. Currency and a new vehicle. The Court also noted Ethrington has a lengthy, concerning criminal history, including multiple felony drug and theft-related charges spanning over the course of the last approximately 10 years. Ethrington also has an outstanding warrant from the State of California related to the alleged theft of gold coins. Judge Rice noted during the sentencing that Ethrington has one of the highest criminal history scores he has seen.
According to court records, this case is part of a global resolution with the State of Washington where Ethrington also pled guilty to ten additional felonies, including Attempt to Elude Law Enforcement, Possession of a Stolen Firearm, Trafficking in Stolen Property, Identity Theft, and Possession of a Controlled Substance with Intent to Deliver.
United States Attorney Hyslop said, “James Ethrington is a repeated large scale prolific drug trafficker. He has engaged in repetitive serious criminal conduct causing irreparable harm to families and our community. With the Court sending him to federal prison under this significant sentence, he is removed from Spokane and is no longer a threat to the safety of our residents.”
Hyslop went on to state, “The United States Attorney’s Office for the Eastern District of Washington commends the excellent work of law enforcement officers with the U.S. Drug Enforcement Administration and Spokane Police Department who investigated this case. This is one more excellent example of where Federal and local law enforcement working together can remove bad criminals from our streets. We thank them for the great work they do every day.”
This case was investigated by the Spokane Resident Office of the U.S. Drug Enforcement Administration and the Spokane Police Department. This case was prosecuted by Caitlin A. Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
Livingston woman admits lying in purchase of a firearm used by felon who shot at state probation officersRead the Press Release
BILLINGS – A Livingston woman accused of illegally obtaining a firearm for a felon who shot at state probation officers admitted federal charges today, Acting U.S. Attorney Leif Johnson said.
Tracy Fonda Flanigan, 46, pleaded guilty to false statement during a firearms transaction. Flanigan faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. Judge Watters released Flanigan pending further proceedings and set sentencing for April 15, 2021.
In court documents filed in the case, the prosecution said that in May 2018, Michael Anderson, a felon, shot at Montana State Probation and Parole Officers who were attempting to conduct a home check. Anderson was convicted in Yellowstone County District Court of assault with a weapon and sentenced to 40 years to the Montana State Prison.
During a search of Anderson’s residence, law enforcement officers found several firearms and ammunition. An investigation determined that one of the firearms recovered was purchased by Flanigan on Nov. 11, 2015. Officers learned that Flanigan purchased an AR-556 rifle at The Fort in Big Timber.
When interviewed by law enforcement, Anderson confirmed he had Flanigan purchase the firearms for him and gave her the money for the purchases. Flanigan knew Anderson was prohibited from possessing firearms because of prior felony convictions. Flanigan eventually admitted purchasing the firearms for Anderson.
Assistant U.S. Attorney Julie Patten is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Lehigh Acres Man Sentenced to Seven Years in Federal Prison for Selling A Variety of DrugsRead the Press Release
Fort Myers, Florida – U.S. District Judge John L. Badalamenti has sentenced Nestly Jean a/k/a “Baby Zoe” (28, Lehigh Acres) to seven years in federal prison for distributing controlled substances. He had pleaded guilty on January 14, 2020. Jean is a documented member of the “Zoe Pound” street gang by the Lee County Sheriff’s Office.
According to court documents, in the spring of 2019, law enforcement purchased crack cocaine, powder cocaine, methamphetamine, and fentanyl from Jean over the course of four undercover deals, each occurring at a residence in the Palmona Park neighborhood of North Fort Myers. During one of the transactions, Jean cooked powder cocaine into crack cocaine in front of law enforcement before selling it to them. Although Jean sold his drugs in Palmona Park, law enforcement determined that he lived in Lehigh Acres. On May 9, 2019, during a search of Jean’s home, Jean was found to be in possession of more than $18,000 in cash, an AK-47 firearm, and a large stash of drugs.
This case was investigated by the Lee County Sheriff’s Office, with assistance from the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Lawrence Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Joel Espinosa, 21, of Lawrence, pleaded guilty in federal court on Wednesday to distributing fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, a cooperating individual and an undercover agent purchased nearly 80 grams of fentanyl from Espinosa and another man during two separate occasions in 2019. One transaction occurred in Manchester and the other took place in Methuen, Massachusetts.
Espinosa is scheduled to be sentenced on March 15, 2021.
“Drug traffickers who are involved in the sale of fentanyl to Granite Staters are causing grave damage to public health and safety,” said U.S. Attorney Murray. “We will continue to coordinate our efforts with federal, state and local law enforcement agencies in order to stop the flow of this deadly drug. Drug dealers should be aware that state lines will not prevent them from being brought to justice in federal court.”
This matter was investigated by the Drug Enforcement Administration with assistance from the Massachusetts State Police, New Hampshire State Police, and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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La Crosse Man Sentenced to 11 Years for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Seth Strand, 31, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 11 years in federal prison for possessing methamphetamine with intent to distribute.
On January 22, 2020, Strand was a passenger in a Ford Explorer that was pulled over by the Wisconsin State Patrol in La Crosse County. Troopers arrested Strand after being notified of a felony arrest warrant for him. Troopers searched the Explorer and found a safe behind the passenger seat. Troopers found a key to the safe on the key chain for the Explorer. A search of the safe revealed approximately 407 grams of methamphetamine. During a post-arrest interview, Strand admitted he intended to sell the methamphetamine to several individuals in La Crosse County.
In imposing the sentence, Judge Conley noted that the Strand has an extensive criminal history including four felony drug trafficking convictions since 2013. Judge Conley also noted that the sentence was appropriate because Strand was in possession of nearly one pound of methamphetamine while on state supervision for two separate methamphetamine trafficking convictions in La Crosse County.
The charge against Strand was a result of an investigation conducted by the Wisconsin State Patrol and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Kentucky Horse Park Improves Access for Individuals with DisabilitiesRead the Press Release
LEXINGTON, Ky. –The U.S Attorney’s Office for the Eastern District of Kentucky has resolved its Americans with Disabilities Act (ADA) compliance review of the Kentucky Horse Park’s Covered Arena. The United States Attorney’s Office initiated the compliance review after receiving a complaint from a private citizen about barriers to access at the Covered Arena for individuals with disabilities.
The Commonwealth of Kentucky operates the Kentucky Horse Park, which is a public entity subject to Title II of the ADA. Title II requires public entities to operate services, programs, and activities so that they are readily accessible to and usable by individuals with disabilities. After receiving notice of the compliance investigation, the Kentucky Horse Park conducted its own investigation and worked with the U.S. Attorney’s Office to remove identified barriers to access in the Covered Arena’s restrooms.
“Everyone should be able to access basic necessities without barriers, regardless of any disabilities,” said Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky. “Our Office will continue to make sure that everyone has equal access to facilities. We appreciate Kentucky Horse Park’s cooperation in being proactive to address the issues in their Covered Arena.”
As outlined in the Letter of Resolution informally resolving the compliance investigation, the Kentucky Horse Park installed grab bars, repositioned toilet compartment doors and toilet paper dispensers, and relocated existing flush controls or installed automatic flush controls in the accessible stalls in the Covered Arena’s restrooms to ensure accessibility for individuals with disabilities.
This matter was handled by Assistant United States Attorney Carrie Pond, as part of the Department of Justice’s civil rights enforcement efforts.
The year 2020 marks the 30th anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
Individuals wishing to file an online complaint of potential violations of the ADA can do so on the ADA’s website at www.ada.gov.
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