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2 December 2020
Illegal Alien with Numerous Criminal Convictions Pleads GuiltyRead the Press Release
RICHMOND, Va. – An El Salvadorian national previously convicted of sexual battery, extortion, and larceny charges pleaded guilty today to illegally reentering the United States.
According to court documents, Francisco Edgardo Palacios-Arias, 24, first illegally entered the U.S. sometime before February 2015. Thereafter, between June 2015 and July 2017, Palacios-Arias was convicted of a series of offenses in Chesterfield County, to include a sexual battery conviction in June 2015; a conviction for extortion of a school employee in December 2016; and convictions for two counts of larceny, false identification of self to law enforcement, and possession of marijuana in July 2017.
Officers of Immigration and Customs Enforcement (ICE) arrested Palacios-Arias following this third set of convictions, and he was deported in March 2018. Palacios-Arias later illegally reentered the U.S., and returned to Chesterfield County. ICE officers arrested Palacios-Arias in Chesterfield in March.
Palacios-Arias is scheduled to be sentenced on Jan. 8, 2021. He faces a maximum penalty of two years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Shawn Byers, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Assistant U.S. Attorney Thomas A. Garnett is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-62.
Illegal Alien from Mexico Indicted for Attempted Federal BriberyRead the Press Release
Jackson, Miss. – Jesus Christian Miranda-Alcantar, 33, an illegal alien from Mexico, has been charged in a federal indictment with attempted bribery of a federal officer and illegal reentry following deportation from the United States, announced United States Attorney Mike Hurst, Gilbert Trill, Acting Special Agent in Charge of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in New Orleans, and Diane Witte, Field Office Director of ICE Enforcement and Removal Operations (ERO).
The indictment, returned by a federal grand jury on November 17, 2020, charges Miranda-Alcantar with one count of attempted bribery of a federal officer, in violation of 18 U.S.C. § 201, and one count of illegal reentry to the United States following deportation, in violation of 8 U.S.C. § 1326.
In September 2020, Miranda-Alcantar was found in Hinds County, following his arrest on a domestic violence charge, present without necessary permission to be in the United States since ICE had removed him from the United States in 2013. While being transported to jail from immigration processing at the ERO offices in Pearl, Miranda-Alcantar offered to pay the federal officer transporting him a bribe of $8,000, if the officer would stop, let Miranda-Alcantar out of the vehicle by the side of the road, and let Miranda-Alcantar escape.
On December 1, 2020, Miranda-Alcantar appeared for arraignment on the indictment before United States Magistrate Judge Linda Anderson in Jackson. The Court ordered Miranda-Alcantar detained in U.S. Marshals custody while awaiting trial.
Miranda-Alcantar faces maximum penalties of 15 years in prison for the count charged for bribery, and two years in prison on the immigration charge. Each count also can merit a fine of up to $250,000.
Trial has been set for February 1, 2021, before U.S. District Judge Carlton W. Reeves in Jackson.
U.S. Attorney Hurst commended the work of the Special Agents with the Department of Homeland Security’s ICE and ERO who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Home health care owner sentenced to more than five years for defrauding Georgia MedicaidRead the Press Release
ATLANTA –Diandra Bankhead, the owner and operator of Elite Homecare (“Elite”), an Atlanta-based home healthcare provider, has been sentenced for defrauding Medicaid out of nearly $1 million. Between September 2015 and April 2018, Bankhead submitted thousands of fraudulent claims for services that were never provided to medically fragile children under the Georgia Pediatric Program (“GAPP”).
“It is outrageous that Bankhead profited off children who suffered from significant physical and cognitive disabilities,” said U.S. Attorney Byung J. “BJay” Pak. “For years her scheme exploited Medicaid-eligible children and their families by billing for services never performed and for children never seen, diverting critical resources from those who needed them most.”
“Bankhead’s greed-fueled scheme, designed to enrich herself, came at the expense of disabled children and taxpayers. Instead she faces years of imprisonment – a fate awaiting those stealing Medicaid funds,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with our State and Federal law enforcement partners we will bring to justice those who illegally drain this vital program.”
"Bankhead’s lack of concern for the needs of fragile children to profit rather than care for them is very troubling, and now she must pay the price for her greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Not only did she deny care to children in need, she also stole taxpayer dollars from a Medicaid program that should have gone to those who need them.”“Our Medicaid Fraud Division, in cooperation with our state and federal partners, will remain vigilant in maintaining the integrity of public programs and prosecuting those who take advantage of them,” said Attorney General Chris Carr. “This case is especially egregious as it involves someone purporting to help serve children in need all the while neglecting their responsibility to devote these funds for those purposes. This behavior is unacceptable.”
According to U.S. Attorney Pak, the charges and other information presented in court: GAPP is an in-home nursing program designed to serve Medicaid-eligible children under the age of 21 years of age based on a medical necessity. The program offers in-home skilled nursing services for medically fragile children who require nursing services, and personal care services, including feeding, bathing, dressing, personal hygiene, preparation of meal, and assisting with the mobility and ambulation of members.
Medically fragile children who are eligible for services under GAPP typically suffer from significant physical and cognitive disabilities, including autism, blindness, cerebral palsy, Down syndrome, epileptic seizures, and/or paralysis.
Bankhead's scheme began in September 2015 and continued until April 2018. Over that time, Elite Homecare submitted more than 5,400 claims to Georgia Medicaid—the vast majority of which were fraudulent—and for which Elite received $1.2 million in reimbursement. Bankhead defrauded Medicaid in a number of ways, including:
- Submitting fraudulent credentialing information to the State of Georgia Department of Community Health in order to become a certified GAPP provider, including falsely representing that a registered nurse (“RN”) —without her knowledge or authorization—served as Elite’s RN Supervisor.
- Falsely representing to Medicaid that an RN or RN Supervisor had conducted the initial evaluation of putative GAPP members as required by applicable regulations.
- Submitting fraudulent claims for in-home nursing services allegedly provided to families who had not retained Elite to provide any services.
- Submitting fraudulent claims in which Elite employees allegedly provided more than 24 hours of services in a given day.
- Submitting fraudulent claims where Elite employees were impossibly providing services to multiple children simultaneously.
- Submitting fraudulent claims in the names of multiple individuals, including RNs, who did not provide the services in question, and did know that their identities and credentials were being used.
- Submitting fraudulent claims that had been “upcoded” – that is claims which fraudulently increased the amount Medicaid paid Elite – by materially misrepresenting the level of care provided and the level of licensing for the individual allegedly providing the services. For example, Elite submitted fraudulent claims to Medicaid purporting that an RN (billed at $40/hour) had rendered the services when in fact an licensed professional nurse (billed at $30/hour) and/or personal care service provider (billed at $20/hour) had actually done so.
- Preparing fraudulent supporting documentation for the in-home nursing services that were never provided, including fraudulent patient care charts.
Among the fraudulent claims that Bankhead submitted to Georgia Medicaid for services that were never performed were for services allegedly provided to an infant girl after she had passed away and three children, all under the age of thirteen, who suffered from cerebral palsy or Downs Syndrome. These children were entirely dependent on others to complete the most basic tasks of life—feeding themselves, clothing themselves, bathing, and even standing up to walk.
In addition to the underlying fraud, Bankhead also failed to truthfully and completely disclose her finances to the United States Probation Office as required by her plea agreement. Rather, the information presented at sentencing established that Bankhead entered into a kickback arrangement with another Atlanta-based home health provider under which she “sold” twenty of Elite’s former clients in exchange for receiving a percentage of the Medicaid billings tied to those clients going forward. Such arrangements are generally unlawful under the federal Anti-Kickback Statute.
Bankhead, 43, of Atlanta, Georgia was sentenced by U.S. District Court Judge Thomas W. Thrash, Jr. to five years and three months in federal prison, and three years of supervised release, and ordered to pay $999,999, in restitution. On August 28, 2019, Bankhead pleaded guilty to a criminal information pursuant to a written plea agreement charging her with one count of health care fraud.
This case was investigated by the Department of Health and Human Services, Georgia Medicaid Fraud Control Unit, and Federal Bureau of Investigation.
Assistant U.S. Attorney Alex R. Sistla prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Green Bay Man Indicted on Human Trafficking and Production of Child Pornography ChargesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 1, 2020, a federal grand jury returned a two-count indictment against Darryl K. Green (age: 53) of Green Bay, Wisconsin.
Green faces charges alleging he attempted to entice a minor to engage in a commercial sex act contrary to Title 18, United States Code, Section 1591(a)(1), (b)(2), and (c). It further alleges that he used that same minor to produce a pornographic image of the child in violation of Title 18, United States Code, Section 2251(a).
If convicted of the child pornography charge, Green faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment. He would also be required to register as a sex offender. The human trafficking charge carries a mandatory ten years’ imprisonment and up to a lifetime of incarceration.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was investigated by the Green Bay Police Department, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Green Bay office of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Erica J. Lounsberry and Daniel R. Humble.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
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Gilford Man Sentenced to 84 Months for Transportation of Child PornographyRead the Press Release
CONCORD - Phillip R. Andrews, 81, of Gilford, was sentenced on Tuesday to 84 months in federal prison for transportation of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on or before June 13, 2016, Andrews used his cellular phone to produce sexually explicit images of a child. These images were uploaded onto his social media accounts using the internet.
Andrews previously pleaded guilty on January 15, 2020.
“By transporting child pornography, the defendant was involved in the exploitation of a child,” said U.S. Attorney Murray. “Those who create, transport or distribute child pornography do grave harm to the victims who are portrayed in these images. In order to safeguard our young people, we work closely with HSI and all of our federal, state and local law enforcement partners to identify and prosecute child exploitation and child pornography crimes.”
This matter was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations, the New Hampshire Internet Crimes Against Children Task Force, and the Gilford Police Department. The case is being prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Leader of Fitchburg Chapter of Latin Kings Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former leader of the Fitchburg Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today in federal court in Boston.
Marlon Rivera, a/k/a “King Pluto,” 36, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 42 months in prison and three years of supervised release. In August 2020, Rivera pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. Rivera was serving a related state sentence when he was charged in December 2019.
The Latin Kings are a violent gang 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 criminal organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and is motivated by a desire to further its influence and to protect its turf from rival gangs.
In addition to his membership in the Latin Kings, Rivera founded the Devon Street Kings Chapter in Boston, and recently was the Inca, or leader, of the Fitchburg Chapter of the Latin Kings. Evidence developed during the course of the investigation included recordings of Rivera participating in meetings, discussing business of the enterprise, and possessing cocaine base with intent to distribute.
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. Marlon Rivera is the sixth defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction. 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.
Former Craighead County Clerk Federally IndictedRead the Press Release
LITTLE ROCK - A federal grand jury has indicted former Craighead County Clerk Jacob Kade Holliday for allegedly taking more than $1.4 million in county money for his personal use. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the indictment of Holliday, 32, of Jonesboro.
The indictment, which was returned by the grand jury late on December 1, 2020, alleges that Holliday, as the elected County Clerk in Craighead County, served as the official bookkeeper of county government. In that capacity, Holliday was tasked with keeping an accurate account of all financial transactions within the county. The funds Holliday controlled included county payroll tax obligations as well as employment retirement contributions.
According to the indictment, from January 29, 2020, to June 24, 2020, Holliday transferred money from the Craighead County Clerk’s banking account to his own personal and business accounts. He then allegedly obtained cashier’s checks in approximately the same amounts and further converted them to his own use.
“We take all allegations of undermining public trust very seriously,” stated U.S. Attorney Hiland. “In this case and in all potential cases, any reports of public corruption will be thoroughly investigated by our office with the help of our law enforcement partners.”
“Without the diligent efforts of our partners at the Arkansas State Police, Mr. Holliday’s alleged theft of over $1.4 million from the citizens of Craighead County would not have been uncovered,” said FBI Special Agent in Charge Upchurch. “Every day, we work closely with our state partners to protect Arkansans from crimes like the ones alleged in this case.”
Holliday is charged with 11 counts of wire fraud; one for each of the 11 transactions he made during the time alleged in the indictment. Holliday will appear before United States Magistrate Judge Joe J. Volpe for plea and arraignment on December 17, 2020. The maximum penalty for wire fraud is not more than 20 years’ imprisonment, a fine of not more than $250,000, and not more than three years of supervised release.
The FBI and the Arkansas State Police conducted the investigation. Assistant United States Attorney Allison W. Bragg is prosecuting the case.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Fitchburg Man Sentenced to 13 Years in Prison for Wide-Ranging Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Anthony Baez, 32, was sentenced by U.S. District Court Judge Timothy S. Hillman to 156 months in prison and five years of supervised release. In July 2020, Baez pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base, and 500 grams or more of cocaine; two counts of distribution of 40 grams or more of fentanyl and heroin; two counts of distribution of 100 grams or more of heroin and 40 grams or more of fentanyl; and two counts of distribution of 400 grams or more of fentanyl, 100 grams or more of heroin, and cocaine.
Following a fatal fentanyl overdose in September 2018, law enforcement began investigating a drug trafficking organization in the Fitchburg area and discovered that Baez led the organization along with his father, Pedro Baez. Court-authorized interceptions of phones used by Baez and other members of the drug trafficking organization and its suppliers revealed that Baez worked with his father, co-defendant Monica Troche, and others to distribute a fentanyl and heroin mixture, cocaine and crack cocaine on a regular basis to individuals in the Fitchburg area, some of whom resold all or a portion of those drugs to their own customers.
According to court records, Baez was responsible for the distribution of over 1.67 kilograms of a deadly fentanyl and heroin mixture, at least 1.5 kilograms of cocaine and at least 10 grams of cocaine base.
Baez was indicted, along with Pedro Baez, Troche and 15 additional defendants. Baez is the first defendant in this case to be sentenced. Pedro Baez and Troche have pleaded not guilty.
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 Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The case was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF). The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of an 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.
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.
Federal Jury Convicts Talladega County Employee on Drug ChargesRead the Press Release
Birmingham, Ala. – A federal jury today convicted a Talladega man on drug charges, announced United States Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mikey French.
The jury returned its guilty verdict against Anthony Lamon Frazier, 38, after 2 days of testimony before U.S. District Judge Corey L. Maze.
“Frazier’s conviction sends the message to those dealing drugs – you will get caught, and you will be held responsible for pushing this poison in our communities,” USA Escalona said. “I want to commend the Talladega County Drug Task Force and the prosecution team for their hard work on this case. I also want to thank the jurors for their time and service.”
“The partnerships with the public safety departments and the U.S. Attorney’s office were crucial in reducing the potential for violent crime in this case,” SAC French said.
Evidence at trial proved that Frazier agreed to deliver almost two pounds of methamphetamine to an individual, and ultimately did deliver that methamphetamine. Frazier used his Talladega County work truck to distribute the narcotics, and evidence at trial showed that a narcotics canine indicated on Frazier’s work truck numerous times for the presence of drugs.
The maximum penalty for possession with the intent to distribute more than 50 grams of methamphetamine is life in prison.
ATF investigated the case, along with the Talladega County Drug Task Force. Assistant U.S. Attorneys Blake Milner and Allison Garnett prosecuted the case.
Federal Indictment Charges Buncombe County Man for Receiving Veteran Benefits Based on Fraudulent Service-Connected DisabilitiesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that John Paul Cook, 57, of Alexander, N.C. is facing multiple federal charges for defrauding the U.S. Department of Veterans Affairs (the VA) by receiving veteran benefits based on fraudulent service-connected disabilities.
Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the federal indictment, Cook enlisted in the United States Army (the Army) in November 1985. The indictment alleges that six months later Cook sustained an accidental injury while on duty. Following the incident, Cook complained that as a result of the accident and injuries he sustained, a preexisting eye condition had worsened. In 1987, following a medical evaluation, Cook was discharged, placed on the retired list, and began receiving VA disability-based compensation at a rate of 60%. Over the next 30 years, Cook’s disability-based compensation increased, following Cook’s repeated false claims of increased visual impairment and unemployability due to “severe visual deficit.” The indictment alleges that, in 2005, based on Cook’s claims of severe visual impairment, Cook was declared legally blind and began receiving disability-based compensation at a maximum rate. Cook also began to receive additional benefits, including Special Monthly Compensation (an extra monetary allowance paid to a qualifying veteran due to the severity of his disability), Specially Adapted Housing (a grant that goes toward paying for adaptations in a new home), and Special Housing Adaptation (a grant that goes toward remodeling an existing home).
According to allegations in the indictment, Cook’s monthly VA disability payments in 1987 were $1,411 per month. With the increases in his disability rating, as well as cost-of-living adjustments and his Special Monthly Compensation, these payments steadily increased over the years. By 2016, the monthly payment had risen to $3,990. In total, from 1987 through 2017, Cook received approximately $978,138 in VA disability payments due to his claimed blindness, to which he was not lawfully entitled.
The indictment alleges that, contrary to Cook’s filed claims with the VA for additional disability claims and his complaints of increased visual impairment, Cook repeatedly passed vision screening tests to renew or obtain a driver’s license in North and South Carolina. The indictment further alleges that, during the relevant time period, Cook purchased and registered over 30 different motor vehicles which Cook routinely drove, including on long-distance trips, to perform errands, and to drive to medical appointments. As alleged in the indictment, from 2010 to 2016, during a time period that Cook was receiving maximum VA disability benefits for his visual impairment, Cook was actively involved with the Boy Scouts of America (BSA), including serving as a Den Leader and a Cubmaster. Among the courses the defendant completed with the BSA were courses qualifying him to be a range officer for BB guns and for archery. He was also certified for land navigation, which involves reading maps and using a compass.
The indictment alleges that, in addition to the fraudulently obtained disability benefits for visual impairment, Cook also defrauded the VA’s Beneficiary Travel Program, after filing multiple false claims for mileage reimbursement in connection with his medical appointments. The VA terminated Cook’s blindness-related disability payments in October 2017.
The federal criminal indictment charges Cook with one count of stealing from the VA, which carries a maximum penalty of 10 years in prison and a $250,000 fine; three counts of making false statements in connection with obtaining VA disability payments, which carry a maximum penalty of five years in prison and a $250,000 fine, per count; and three counts of a making false claims for travel benefits from the VA, which carry a maximum penalty of five years in prison and a $250,000 fine, per count.
The indictment also contains a Notice of Forfeiture seeking a money judgement in the amount of $978,138, which is the amount constituting the proceeds of Cook’s alleged fraudulent conduct.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray thanked the VA-OIG for their investigation of the case.
Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Erie Man Charged with Drug and Gun CrimesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Joseph Russell Wayne, Jr., 31, as the sole defendant.
According to the Indictment presented to the court, on November 17, 2020, Wayne possessed a Smith and Wesson, .40 caliber semi-automatic handgun in furtherance of the unlawful possession of marijuana, and additionally possessed a Smith and Wesson, 9mm semi-automatic handgun while prohibited under federal law. The Indictment alleged a total of $462,789.40 in assets are subject to forfeiture as proceeds of the unlawful distribution of marijuana by Wayne.
The law provides for a maximum total sentence of life in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Pennsylvania Office of the Attorney General conducted the investigation leading to the Indictment in this case. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eight Drug traffickers indicted for distributing heroin, methamphetamine, and fentanyl throughout the Puget Sound regionRead the Press Release
Seattle – Eight people are indicted today in a wide-ranging drug investigation that resulted in the seizure of significant quantities of suspected fentanyl, heroin, and methamphetamine, announced U.S. Attorney Brian T. Moran. JOSE LUIS IBARRA-VALLE, 37, a citizen of Mexico who was living in Woodinville, Washington, was stopped by law enforcement on October 25, 2020, in Seattle. In his car authorities found approximately 10,000 pills believed to contain fentanyl, more than 20 pounds of suspected methamphetamine, and more than a kilogram of suspected heroin. All those arrested today appeared in U.S. District Court in Seattle today.
“While COVID-19 may have shut down many of our businesses, it does not seem to have put a dent in the illegal drug distribution business, causing harm to our communities,” said U.S. Attorney Brian T. Moran. “I commend the law enforcement officers who continue to do the work of tracking and seizing these illegal drugs—especially fentanyl pills—that are connected with overdose deaths in our community.”
“The rising numbers of fentanyl overdoses is on the radar of all our law enforcement partners,” said DEA Special Agent in Charge Keith Weis. “We will continue to prioritize disrupting the illicit distribution of this dangerous narcotic within our communities.”
The additional defendants indicted in this wiretap investigation include:
JESUS GUTIERREZ-GARCIA, 31, Everett, Washington
JESUS GARNICA-MELGOZA, 39, Seattle, Washington
HUMBERTO GARCIA, 39, Everett, Washington
SANTOS CARO, 35, Portland, Oregon
CHARLES HOFFMAN, 43, Tulalip, Washington
LEE WALLETTE, 36, Mountlake Terrace, Washington
TISHA GIRTZ, 38, Lake Stevens, Washington
Over the course of the investigation law enforcement seized 16,000 suspected fentanyl pills, 30 pounds of suspected methamphetamine, and six pounds of suspected heroin.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is 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 .
The investigation was led by the Drug Enforcement Administration in partnership with the Federal Bureau of Investigation, Homeland Security Investigations, Whatcom Gang and Drug Task Force, Washington State Patrol, Snohomish Regional Drug Task Force, United States Border Patrol, Customs and Border Protection, Skagit County Interlocal Drug Enforcement Unit, the Whatcom County Sheriff’s Office, the Lake Stevens Police Department and Tulalip Police Department. In addition to the agencies listed above, the following law enforcement agencies assisted with arrests and search warrants executed today: Everett ACT, North Sound SWAT, FBI SWAT and DEA Portland. The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA).
The case is being prosecuted by Assistant United States Attorneys Benjamin Diggs and Nicholas Manheim.
Eagle Butte Woman Sentenced for Maintaining a Drug Involved PremisesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Maintaining a Drug Involved Premises was sentenced on November 30, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Juanita Red Bird, age 26, was sentenced to a time served sentence of ten days in federal prison, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Bird was indicted by a federal grand jury on March 10, 2020. She pled guilty to a Superseding Information on September 14, 2020.
The conviction stemmed from Red Bird’s conduct between 2018 and 2019, wherein she used a residence near Eagle Butte to sell marijuana.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Drug trafficker sent to prison for shipping cocaine via mailRead the Press Release
CORPUS CHRISTI, Texas – A 41-year-old resident of Edinburg has been sentenced for his role in a drug conspiracy involving the federal mail system, announced U.S. Attorney Ryan K. Patrick.
Axel Noel Rodriguez Rivera pleaded guilty July 23.
Today, U.S. District Judge David S. Morales ordered Rivera to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard information detailing how Rivera used multiple mail center mailboxes to receive cocaine through the mail. In handing down the sentence, Judge Morales noted Rivera’s prior felony drug convictions.
“Illegal drugs have no business being a part of the mail stream,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service.“Postal inspectors work tirelessly to rid the mail of illicit and dangerous drugs and provide a safe environment for postal employees and Postal Service customers. Today’s sentencing demonstrates that postal inspectors will never tolerate the use of the U.S. Mail to distribute illegal substances. We thank the members of the Hidalgo County Criminal District Attorney’s High Intensity Drug Trafficking Area (HIDTA) Task Force task force for partnering with us to bring this criminal to justice.”
In January, law enforcement in McAllen began an investigation into a suspicious parcel which was later found to contain cocaine.
The investigation revealed Rivera had retrieved multiple parcels from mail centers within the Corpus Christi area. The packages were either sent through third-party shippers or the U.S. Postal Service. Each of the parcels contained cocaine.
Rivera was ultimately held accountable for approximately 10 kilograms of cocaine which had an estimated street value of $250,000.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspector Service and the Hidalgo County Criminal District Attorney’s High Intensity Drug Trafficking Area Task Force conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Drug Trafficker Sentenced 210 Months for Distributing Kilograms of MethamphetamineRead the Press Release
KNOXVILLE, Tenn. – On November 30, 2020, Jairo Cruz-Rico, 37, a Citizen of Mexico, was sentenced to 210 months (17.5 years) in a federal prison by Senior United States District Court Judge Thomas W. Phillips. Cruz-Rico was a supplier of methamphetamine for a drug conspiracy that distributed hundreds of kilograms of methamphetamine in Georgia and Tennessee. Cruz-Rico had earlier pled guilty to a conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine.
On April 30, 2019, Cruz-Rico was apprehended in Georgia by Homeland Security Investigations federal agents while he was on his way to deliver approximately 2 kilograms of methamphetamine. He had a gun with him in his vehicle. Cruz-Rico was a member of a far-reaching drug distribution conspiracy, which was uncovered and dismantled through an investigation led by Homeland Security Investigations and the United States Attorney’s Office for the Eastern District of Tennessee.
“This case and, more importantly, this conviction send a strong message to anyone who attempts traffic or is thinking about trafficking drugs through our highways and into our communities that you will be apprehended and prosecuted. This conviction and sentence are the result of a sweeping law enforcement effort to stem the flow of drugs from around the world that eventually end up in our communities,” said U.S. Attorney J. Douglas Overbey.
“Working with our local, state and federal law enforcement partners, HSI continues to assist in the identification and prosecution of those who participate in drug trafficking conspiracies,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “Methamphetamine is a dangerous substance that destroys lives and endangers the communities that we are sworn to protect.”
This prosecution was the result of a joint investigation by the HSI Knoxville, HSI Atlanta, TBI, 9th Judicial Drug Task Force, Cumberland County Sheriff’s Office, Middle Tennessee HIDTA Task Force, and the Tennessee Highway Patrol.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Kevin Quencer represented the United States.
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Drug Company Manager Sentenced for Role in Kickback Scheme Related to Fentanyl Spray PrescriptionsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEFFREY PEARLMAN, 53, of Edgewood, N.J., was sentenced today by U.S. District Judge Janet Bond Arterton to three years of probation for engaging in a kickback scheme related to fentanyl spray prescriptions.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, from approximately September 2012 until November 2015, Pearlman was employed by Insys Therapeutics, an Arizona-based pharmaceutical company that manufactured and sold Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. The company first hired Pearlman as a sales representative and subsequently promoted him to the position of District Sales Manager. As a District Sales Manager, Pearlman was responsible for managing the company’s sales representatives who called on licensed healthcare providers in Connecticut, New York, New Jersey and Rhode Island.
An investigation revealed that Insys Therapeutics representatives, including Pearlman and the sales representatives he managed, were inducing medical practitioners around the country to prescribe Subsys over other similar medications by paying the medical practitioners to participate in hundreds of sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners. At times, the sign-in sheets for the Speaker Programs were forged to make it appear that the programs had an appropriate audience of healthcare professionals.
In 2013, Pearlman attended a dinner at a New Haven restaurant where Heather Alfonso, who at the time was an Advanced Practice Registered Nurse (APRN) at Comprehensive Pain and Headache Treatment Center (CPHTC) in Derby, was paid a speaker fee even though no other healthcare professionals were present, and no presentation of Subsys took place.
In a meeting that occurred with Alfonso in the spring of 2013, Pearlman told the provider that the more prescriptions of Subsys that Alfonso wrote, the more Speaker Programs Pearlman could provide. In June 2013, when these prescriptions were not initially being written as planned, Pearlman emailed Natalie Levine, an Insys sales representative who was responsible for calling on Alfonso and reiterated that per the “verbal agreement” Pearlman had made with Alfonso, Alfonso needed to write more Subsys prescriptions or Pearlman was “going to have tremendous difficulty in justifying more [speaker] programs.”
As a result of this scheme, Medicare Part D plans authorized payment for nearly 400 Subsys prescriptions written by Alfonso, causing millions of dollars of losses. Pearlman personally profited from this scheme through inflated quarterly bonuses he received that were based, in large part, on the sales results of the sales representatives he managed.
Pearlman was arrested on September 29, 2016. On August 8, 2018, he pleaded guilty to one count of conspiracy to violate the anti-kickback law.
Alfonso and Levine pleaded guilty to related charges. On June 24, 2019, Levine was sentenced to three years of probation, including six months of home confinement. On November 26, 2019, Alfonso was sentenced to three years of probation.
Several other individuals affiliated with Insys Therapeutics, and medical practitioners involved in this kickback scheme, have been charged and convicted in other Districts across the U.S. On May 2, 2019, a federal jury in Boston found John N. Kapoor, the founder and former Executive Chairman of Insys Therapeutics, and four other former Insys executives guilty of racketeering conspiracy. January 23, 2020, Kapoor was sentenced to 66 months of imprisonment.
In June 2019, Insys Therapeutics agreed to pay a total of $225 million to resolve criminal and civil investigations of the company.
The investigation in the District of Connecticut was conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito, Sarah P. Karwan and Richard M. Molot.
U.S. Attorney Durham encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican man previously residing in Lawrence pleaded guilty today in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Cecilio Guzman, 28, pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Patti B. Saris scheduled sentencing for March 12, 2021. Guzman was charged by complaint and arrested by state authorities on Nov. 20, 2019. He is currently in federal custody.
Guzman arranged to sell 120 grams of fentanyl to a cooperating witness for the government. On Nov. 20, 2019, Guzman met with the witness in Lawrence, sold him the fentanyl, and was subsequently arrested.
The charge of distribution and possession with intent to distribute more than 40 grams of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. The investigation was conducted with the assistance of the Andover, Haverhill, Lawrence, Lowell and Wilmington Police Departments. Special assistance was provided by the Essex District Attorney’s Office. Assistant U.S. Attorney Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Department of Justice Launches Money Mule Initiative #DontBeAMuleRead the Press Release
ALBANY, NEW YORK – Acting U.S. Attorney Antoinette T. Bacon announced today her office’s participation in a nationwide Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are people who assist fraudsters by collecting money from victims of fraud and forwarding it to the fraud organizers, many of whom are located overseas. Some money mules know they are helping fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds.
Acting U.S. Attorney Antoinette T. Bacon stated: “It is critical for everyone to understand how criminals use “money mules” so that they can protect themselves and their loved ones from getting caught up in illegal activity. Sadly, the criminals often target our most vulnerable and lonely, particularly the elderly. We all need to work together to keep our community safe. Please be aware and think twice if you, your loved one, or neighbor is approached.”
In addition to criminal investigations, 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. Through our Elder Justice Coordinators, Shira Hoffman and Christopher Moran, our office will be reaching out to our communities to educate the public about money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit https://www.justice.gov/civil/consumer-protection-branch/money-mule-initiative
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.
Additional information is available in the attached “Money Mule” document. Please distribute in every way possible.
Delaware County Man Pleads Guilty to Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Daniel Miller, 26, of Stamford, New York, pled guilty today to two counts of transportation of child pornography announced Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Thomas F. Relford of the Albany Field Office of the Federal Bureau of Investigations (FBI).
Miller was previously convicted of Promoting an Obscene Sexual Performance by a Child in 2015 as well as First Degree Sexual Assault and Endangering the Welfare of a Child in 2017. As part of his guilty plea today, Miller admitted that, on August 11 and August 14 of 2017, while on probation related to his prior convictions, he uploaded images and videos of child pornography to his DropBox account using a cellphone he was not permitted to have under the terms of his probation.
Sentencing is scheduled for March 24, 2021, before Hon. Thomas J. McAvoy in Binghamton, New York, at which time Miller faces a minimum sentence of 15 years, with a maximum of up to 40 years in prison on each count, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. Miller will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the Federal Bureau of Investigation (FBI), the Delaware County Sheriff’s Office, and the Delaware County Probation Office and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare and Special Assistant U.S. Attorney Adrian S. LaRochelle.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Darknet Drug Vendor Arrested for Distributing Illicit Prescription DrugsRead the Press Release
ALEXANDRIA, Va. – A Georgia man made his initial appearance in federal court here today on charges of distributing illicit prescription drugs over the Darknet.
According to court documents, Cullen Roberts, 22, of Duluth, used the moniker “Pillpusher” to sell prescription opioids and other scheduled narcotics on a Darknet market called Yellow Brick. The FBI began investigating Roberts by conducting a series of undercover purchases of various types of prescription drugs via the Darknet.
Roberts was identified as “Pillpusher” when he was observed dropping off one of the packages addressed to the undercover agent at the U.S. Post Office in Cumming, Georgia. Agents subsequently intercepted a package sent by Roberts and discovered dozens of tablets of Tramadol. Agents also searched Roberts’s trash and recovered empty boxes that had contained oxycodone and alprazolam (brand name Xanax).
Roberts also has pending charges in Forsyth County, Georgia for making terroristic threats.
Roberts was arrested yesterday and is charged with distribution of controlled substances. If convicted, he faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force. The U.S. Postal Inspection Service Atlanta, and the FBI’s Atlanta Field Office provided significant assistance with this investigation.
Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-mj-332.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Cleveland man indicted on drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Sylvester Deangelo Walker, of Cleveland, Ohio, is facing a drug charge, U.S. Attorney Bill Powell announced.
Walker, also known as “DBOS,” 25, was indicted on one count of “Distribution of Methamphetamine.” Walker is accused of selling methamphetamine in November 2020 in Ohio County.
Walker faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Charleston Felon Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Frankie D. McNeal, 26, of Charleston, was sentenced to 37 months in federal prison for being a felon in possession of a firearm.
McNeal previously pled guilty and admitted that on October 14, 2019, he went to The Empty Glass bar in Charleston with a Glock 19 9mm pistol. Investigation into the incident revealed that McNeal got into an altercation with a female patron while at the bar. McNeal then went outside and discharged a round from the Glock through the windshield of the female’s car. Surveillance video, preliminary DNA evidence, and ballistics linked McNeal and the firearm. Police responding to the incident located McNeal in a nearby alley and recovered the Glock from a dumpster next to where McNeal was standing. The Glock was loaded, with an extended magazine. At the time of this incident, McNeal was prohibited from possessing a firearm as a result of his September 2012 felony conviction of first degree robbery in Kanawha County Circuit Court.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Kristin F. Scott and law student intern Makeia Jonese handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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-00099.
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Canadian Man Sentenced to 68 Months for $1.25 Million FraudRead the Press Release
SYRACUSE, NEW YORK – Ivan Chernev, age 51, and a citizen of Canada and Bulgaria, was sentenced today to 68 months in prison for a fraudulent scheme that targeted small businesses, medical providers and schools across the country.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Joseph Cronin, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service; and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea on June 26, 2020, Chernev admitted that he and two co-conspirators stole at least $1.25 million from over 1,300 small businesses, medical providers and schools by claiming that the victims owed money for online directory listings that the defendant and his co-conspirators purported to have provided through companies that they created. Chernev admitted that he and his co-conspirators sent false invoices to the victims indicating that they had ordered these online advertising services when no such services had ever been ordered or received. When the victims failed to pay the invoices, Chernev and his co-conspirators sent them fake collections notices. The invoices and collections notices directed the victims to mail checks to various addresses throughout the United States, which were simply Post Office boxes that Chernev and his co-conspirators rented in the names of their companies. The checks were then forwarded to Chernev and his co-conspirators in Quebec, Canada.
Senior United States District Judge Frederick J. Scullin, Jr. also ordered Chernev to pay restitution to his victims, pay a money judgment in the amount of $1.25 million, and serve 3 years of post-imprisonment supervised release.
This case was investigated by the United States Postal Inspection Service, Homeland Security Investigations, and the Royal Canadian Mounted Police, with assistance from the Federal Trade Commission. It was prosecuted by Assistant U.S. Attorney Katherine Kopita. Chernev was extradited from Italy to the United States in November 2019 with assistance from the Department of Justice Office of International Affairs.
California Driver Sentenced for Bringing Fentanyl, Heroin to KansasRead the Press Release
WICHITA, KAN. – A California man was sentenced today to 8 years in federal prison for transporting fentanyl and heroin to Kansas, U.S. Attorney Stephen McAllister said.
Mauricio Canas, 24, Bermuda Dunes, Calif., pleaded guilty to one count of interstate transportation in furtherance of drug trafficking and one count of using a phone in furtherance of drug trafficking. In his plea, Canas admitted he and a co-defendant were stopped in Thomas County for a traffic violation. In the car, troopers found more than 9 pounds of fentanyl and more than 8 pounds of heroin.
Investigators learned Canas was transporting the drugs from California to New York for distribution when he passed through Kansas. He used a phone to communicate with his contacts in New York.
Co-defendant Eduardo Arellano-Sanchez is set for sentencing Feb. 16.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Katie Andrusak for their work on the case.
Bowie Man Pleads Guilty to Federal Wire Fraud Charge for Stealing More Than $233,000 from His Employer and Another BusinessRead the Press Release
Greenbelt, Maryland – Howard Ware, age 42, of Bowie, Maryland, pleaded guilty today to wire fraud in connection with a fraud scheme to steal more than $233,000 from his employer and another business.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, Ware admitted that between March 18, 2018 and July 20, 2018, he stole over $233,040 from his employer and from a trucking business by submitting more than 2,118 fraudulent invoices for services that were not actually performed.
As detailed in his plea agreement, Ware was an employee of Business 1, an environmental services company that operated a facility in Upper Marlboro, Maryland, to treat contaminated material. As part of his job, Ware was supposed to coordinate the hauling of materials to and from the facility with trucking companies, including Business 2, a trucking company based in Charlotte Hall, Maryland. Business 1 frequently hired Business 2 to haul material between the Upper Marlboro treatment facility and another facility that it operated. Business 2 would hire subcontractors to haul material on Business 2’s behalf.
In early 2018, Business 1 had an exceptionally large amount of material that needed to get moved from Facility 1. Ware coordinated with Business 2 to purportedly provide trucks to assist Business 2 with the additional hauling, working as subcontractors for Business 2 in order to help Business 2 haul Business 1’s material. In fact, Ware did not have a trucking business and never intended to provide any trucks or hauling services to Business 2. Ware simply offered his services as a way to embezzle funds from Business 1, because he intended to bill Business 2 for services that Ware never provided.
Business 1 was not aware of Ware’s arrangement with Business 2. Neither Business 1 nor Business 2 were able to monitor whether Ware actually performed any of the hauling services, since Ware alone was coordinating the trucks going and coming to the Upper Marlboro facility. Between at least March 18, 2018 and July 20, 2018, Ware invoiced Business 2 more than 2,000 times for services that were never performed. Business 2, in turn, invoiced Business 1. Business 1 paid Business 2, and Business 2 paid Ware, depositing $233,040 in bank accounts that Ware controlled. Ware then used the money to pay his personal expenses.
As part of his plea agreement, Ware will be required to forfeit and to pay restitution in the amount of $233,040.
Ware faces a maximum sentence of 20 years in federal prison for wire fraud. 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. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 26, 2021 at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Erin B. Pulice, who is prosecuting the federal case.
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Baltimore Man Indicted on Federal Sex Trafficking ChargesRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Ryan Odell Oliver, a/k/a Dre, Fame, and Foreign, age 38, of Baltimore, Maryland, on federal charges for conspiracy to commit sex trafficking and sex trafficking; conspiracy related to interstate prostitution and interstate transportation for prostitution; enticement to travel interstate for the purposes of prostitution; and possession of ammunition by a felon.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to the 10-count indictment, from at least July 2018 through January 2019, Oliver and a co-conspirator recruited, transported, maintained, and trafficked two adult women, Victim 1 and Victim 2, using threats, force, and coercion to cause those victims to engage in commercial sex acts. Oliver and the co-conspirator allegedly received money and other things of value by having the women engage in commercial sex acts. From January 2018 through August 2018, the indictment alleges that Oliver also caused Victim 3 to engage in commercial sex acts, for which Oliver received money and other things of value.
The indictment alleges that Oliver and the co-conspirator took sexually explicit photographs of the victims which they used in online advertising websites, and listed a telephone number where the victims could be reached for a “date” or a commercial sex act. Oliver and others used a cellular phone to field responses to the online advertisements. At some point during the conspiracy Oliver physically assaulted the victims, including forced sexual intercourse or other sex acts, striking them with his hands, choking them, and displaying a firearm to them. Oliver also allegedly burned Victim 1 with lit cigarettes. Oliver and his co-conspirator transported the women from Maryland to other states, including Pennsylvania, Delaware, Virginia, Washington, D.C., New Jersey, and South Carolina, where they were directed to meet with sex customers for prostitution. On at least one occasion the conspirators used a ride-sharing application to transport Victim 2.
According to the indictment, Oliver and others used various means to coerce the victims’ continued participation in the prostitution enterprise, including establishing “rules” governing the behavior of the victims. As to Victim 1, Oliver also established a “quota” for profit from the prostitution dates that Victim 1 had to attain, withheld food from Victim 1, and required Victim 1 to obtain a tattoo bearing Oliver’s aliases “Fame” and “Foreign.” Oliver also allegedly assaulted others in front of Victim 2 and gave unknown controlled substances to Victim 2.
The indictment also charges Oliver with sex trafficking Victim 3 and alleges that Oliver assaulted or threatened to physically assault Victim 3 to coerce her continued participation in the prostitution enterprise, including forced sexual intercourse or sexual acts, striking Victim 3 with his hands, throwing objects at her, displaying a firearm to Victim 3, and giving controlled substances to Victim 3. Oliver also allegedly transported Victim 3 to Maryland, Virginia, Delaware, Pennsylvania, and elsewhere to engage in prostitution.
Finally, the indictment alleges that Oliver illegally possessed 54 9mm cartridges and five 7.62 x 39mm cartridges, which Oliver knew he was prohibited from possessing due to a previous felony conviction.
Oliver’s co-conspirator died in Ohio in March 2019.
If convicted, Oliver faces a maximum sentence of life in federal prison for conspiracy to commit sex trafficking and a mandatory minimum of 15 years and up to life in federal prison for each count of sex trafficking; a maximum of five years in federal prison for conspiracy related to interstate prostitution; a maximum of 10 years in federal prison for each count of two counts of interstate transportation for prostitution and for each of two counts of enticement to travel interstate for the purposes of prostitution; and a maximum of 10 years in prison for being a felon in possession of ammunition. 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. Oliver is currently serving a state sentence for rape and will have an initial appearance on the federal charges at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation and thanked the Alexandria, Virginia Police Department and the Lexington, Kentucky Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr., Adam K. Ake, and Ayn B. Ducao, who are prosecuting the case.
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Assistant U.S. Attorneys Beth C. Boswell and Jennifer Musselwhite Become Certified Instructors of DOJ Gang Resistance Education and Training (G.R.E.A.T.) ProgramRead the Press Release
Memphis, TN – United States Attorney D. Michael Dunavant is pleased to announce that Criminal Chief Assistant U.S. Attorney Beth C. Boswell and Assistant U.S. Attorney Jennifer Musselwhite have successfully completed and been certified as instructors of the Department of Justice Gang Resistance Education and Training (G.R.E.A.T.) Program. G.R.E.A.T. is a gang and violence prevention program built around school-based, law enforcement officer-instructed classroom curricula, intended to guide children away from delinquency, youth violence, and gang membership. The program certifies instructors around the country to give interactive educational presentations and teach an approved curriculum to 4th through 8th grade students. The G.R.E.A.T. Program began in 1991 by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and in 2004 the program administration was transferred from the ATF to the DOJ Office of Juvenile Justice and Delinquency Prevention (OJJDP).
The G.R.E.A.T. Officer Training (GOT) process is very rigorous, and requires a commitment of 10 hours of online training and 36 hours of classroom training. AUSAs Boswell and Musselwhite have demonstrated significant commitment to complete the program, and will now be available to represent the U.S. Attorney’s Office in classrooms across West Tennessee in order to proactively prevent youth violence through this certified program. AUSAs Boswell and Musselwhite also have the notable distinction of being the first federal prosecutors to become certified instructors of the G.R.E.A.T. program. They join certified instructors from 30 district and state attorneys’ offices in 11 states, including the Shelby County District Attorney General’s Office in Memphis, as well as a strong contingent from the ATF and other law enforcement officers from the United States Marshals Service (USMS), Bureau of Indian Affairs (BIA), Department of Homeland Security (DHS), and every branch of the U.S. Military.
U.S. Attorney D. Michael Dunavant said, "Having Assistant U.S. Attorneys as certified instructors of the G.R.E.A.T. program is an important part of our efforts to proactively prevent future criminal behavior and gang membership. We are proud of Beth and Jennifer for their commitment, achievement, and ground-breaking work in this important initiative, and I am confident that their leadership in the G.R.E.A.T. program will promote positive relationships between law enforcement and the community, help young people avoid delinquent behavior and bad decisions, and ultimately improve public safety in West Tennessee."
For more information about the G.R.E.A.T. program, visit: https://www.great-online.org/GREAT-Home
Pictured from left to right are: AUSA Jennifer Musselwhite, U.S. Attorney D. Michael Dunavant, and Criminal Chief AUSA Beth Boswell.Aroostook County Man Sentenced on Federal Drug ChargeRead the Press Release
BANGOR, Maine: An Aroostook County man was sentenced today in federal court in Bangor for conspiring to distribute and to possess with intent to distribute methamphetamine, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Andrew Maynard, 30, to 92 months in prison and three years of supervised release. Maynard pleaded guilty in March 2020.
According to court records, between January 2017 and August 2018, a drug trafficking organization distributed large quantities of methamphetamine in northern Maine. The organization obtained the drugs from out-of-state sources in Colorado and Arizona. The organization sent thousands of dollars in U.S. currency to those sources in order to supply its drug trafficking enterprise. Maynard aided the organization by distributing methamphetamine and collecting proceeds from the sale of the drug.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
Acting U.S. Attorney Sues Village of Airmont for Renewed Religious Discrimination Against Orthodox Jewish ResidentsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced the filing today of a lawsuit in federal district court against the Village of Airmont in Rockland County (“AIRMONT” or the “VILLAGE”) to rectify AIRMONT’S renewed efforts to discriminate against its Orthodox Jewish community. As alleged in the Complaint, AIRMONT has violated the Religious Land Use and Institutionalized Persons Act (“RLUIPA”) by imposing land use and zoning provisions that, among other things, restrict Orthodox Jewish residents’ ability to worship in private homes and prevent operation of a private religious school. The lawsuit marks the third time that the United States has sued AIRMONT since its 1991 incorporation for discriminatory treatment of Orthodox Jewish residents under both RLUIPA and the Fair Housing Act. The first two lawsuits resulted in the entry of court judgments against the VILLAGE – a judgment following a jury trial in 1996 and judgment pursuant to a court-entered consent decree in 2011.
Acting U.S. Attorney Audrey Strauss said: “As a jury found over two decades ago, the Village of Airmont was born out of a spirit of animus against a religious minority. Sadly, rather than working to overcome that shameful legacy, Airmont has flagrantly ignored the terms of a court judgment and implemented land use practices that by design and operation are again meant to infringe unlawfully on the rights of a minority religious community. Religious discrimination will not be tolerated. We will remain vigilant to ensure that the right to worship freely and without undue interference is protected for all.”
According to the Complaint filed in White Plains federal court:
Following the expiration of the last court-entered consent decree against AIRMONT in 2015, and beginning with an administration elected in 2017 on an openly anti-Hasidic platform, the VILLAGE has actively sought to prevent its Orthodox Jewish residents from operating home synagogues and a private school in conformity with their faith. AIRMONT has pursued its discriminatory agenda by, among other actions:
- Imposing a nearly two-year land use moratorium in 2017 that was motivated by a desire to prevent the growing Orthodox Jewish community from developing property rather than any legitimate governmental purpose.
- Amending the Village Zoning Code in 2018 to strike “residential place of worship” as a recognized land use category, in direct violation of the terms of the final judgment entered by the court in 1996.
- Imposing new Zoning Code requirements that place an unlawful and arbitrary limit on the gross floor area of private residences that can be used for worship, ban the use of private home mikvahs, or ritual baths, and restrict the co-congregants whom homeowners are allowed to host.
- Implementing a new, arbitrary land use application process controlled by the Village designed to impose unreasonable and unnecessary zoning requirements on Orthodox Jewish residents, drive up their costs, and ensure their applications, including minor alterations to private homes, are never approved despite years of good faith efforts to comply.
- Targeting Orthodox Jewish residents with the threat and imposition of unfounded fines for supposed zoning infractions in order to thwart and intimidate land use applicants.
RLUIPA authorizes the Department of Justice to commence an action against any local government that implements a land use regulation that places a substantial burden on religious exercise, discriminates on the basis of religion, or unreasonably limits religious assemblies, institutions, and structures. The Complaint seeks declaratory and injunctive relief against AIRMONT.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Stephen Cha-Kim is in charge of the case.
- Imposing a nearly two-year land use moratorium in 2017 that was motivated by a desire to prevent the growing Orthodox Jewish community from developing property rather than any legitimate governmental purpose.
26 Charged with Federal Drug Conspiracy and Firearms Charges in Myrtle Beach, Conway, FlorenceRead the Press Release
Myrtle Beach, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a joint team of more than 85 federal, state, and local law enforcement officers arrested 18 individuals who have been charged in federal court for their roles in an interstate drug trafficking organization that operated out of Myrtle Beach, Conway, and Florence, South Carolina. Three other defendants were already in custody on related charges. Five additional defendants remain at large.
These arrests mark the first in Operation New Optix, the latest iteration in a series of joint federal/local investigations targeting drugs and violent crime in Myrtle Beach and the greater Pee Dee region. This multi-year operation specifically targeted members of this drug trafficking organization based on their interstate importation of large quantities of cocaine and cocaine base (commonly referred to as “crack cocaine”) into South Carolina, and their use of firearms in furtherance of their drug trafficking crimes.
“As this office has made clear time and again, violent criminals will find no safe harbor in South Carolina,” said U.S. Attorney McCoy. “More than 80 federal, state, and local agents stepped into harm’s way this morning. This type of selflessness and cooperation is why we have been successful in charging hundreds of individuals for major drug trafficking crimes or serious firearms offenses in the last several months alone. These types of operations specifically target entire criminal organizations, which in turn allow us to protect communities in the Pee Dee region and across South Carolina.”
“Citizens in Myrtle Beach, Conway and Florence are safer when violent cocaine traffickers can no longer peddle poison in their communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “While the charges in this case speak for themselves, dangerous drug trafficking organizations using firearms to protect their operations needlessly endanger the public. DEA and its law enforcement partners are committed to protecting communities from violent drug traffickers.”
“The Florence County Sheriff’s Office has a long and proud history of working with state, local and federal partners to keep illegal narcotics off of our streets and we will continue to support those efforts,” said Florence County Sheriff Billy Barnes. “We are pleased to have been a part of this most successful operation.”
“I want to thank our officers and our law enforcement partners for their hard work,” said Myrtle Beach Police Chief Amy Prock. “Here in Myrtle Beach, the local, state and federal partners are committed to keeping our community safe. This case demonstrates that commitment and the strength of the partnerships we have as a law enforcement community.”
The following defendants are in custody:
- Shackeel Coleman, 29, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine. This charge carries a potential penalty of 10 years to Life imprisonment.
- Kimo Felton, 41, of Conway is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine. This charge carries a potential penalty of 10 years to Life imprisonment.
- Harry Bellamy, 41, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine, 28 grams of cocaine base, and a quantity of marijuana. This charge carries a potential penalty of 10 years to Life imprisonment.
- Steven Jeffcoat, 30, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine and 28 grams of cocaine base. This charge carries a potential penalty of 10 years to Life imprisonment.
- Lenard Hemingway, 53, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Yenitza Coleman, 27, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Jasamine Mitchell, 32, of Conway is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Timothy McCray, 31, of Conway is charged with conspiracy to possess with intent to distribute and distribute 28 grams of cocaine base and a quantity of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment
- Henry Boyd, 39, of Conway is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base and a quantity of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Timothy Lee, 27, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Jacqueline Strickland, 59, of Conway is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Venson Strickland, 29, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base and a quantity of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- James Graham, 30, of Conway is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
- Alonzo Lee Pierce, 37, of Galivants Ferry is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base and a quantity of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Gary Jackson, 30, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Alton Brown, 41, of Florence is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of cocaine base. This charge carries a potential penalty of up to 20 years imprisonment.
- Joshua Darby, 32, of Murrells Inlet is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of cocaine base. This charge carries a potential penalty of up to 20 years imprisonment.
- Travis Rogers, 40, of Conway is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Kevin Linnen, 33, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
- Mario Williams, 41, of Florence is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of marijuana. This charge carries a potential penalty of up to 20 years imprisonment.
- Robert Hooker, 40, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
The following defendants are still at large:
- Bradley Adams, 26, of Myrtle Beach is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Brandon Prawl, 35, of Conway is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine and 28 grams or more of cocaine base. This charge carries a potential penalty of 5 to 40 years imprisonment.
- Quentin Smith, 29, of Conway is charged with conspiracy to possess with intent to distribute and distribute 28 grams or more of cocaine base. This charge carries a potential penalty of 5 to 40 years imprisonment. He is also charged with possession of a firearm in furtherance of a drug trafficking crime which carries a potential penalty of 5 years consecutive to any other penalty imposed.
- Curtis McArthur, 35, of Longs is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
- Ernest Smalls Jr, 38, of Little River is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine. This charge carries a potential penalty of up to 20 years imprisonment.
This operation builds on years of successful efforts to target violent crime in the area. In 2017, Operation Silver Sunset targeted 29 associates of the Billy Bloods street gang, a subset of the United Blood Nation. In 2018, Operation Rise and Shine targeted 33 associates of G-Shine/SMG, another subset of the Bloods. Earlier in 2020, Operation Broken Branch targeted 31 members of a drug trafficking organization in the Cedar Branch area of Horry County. Today’s arrests mark the latest, but not the last, investigation targeting violent crime in this area.
During the course of this investigation, agents interdicted multiple kilograms of cocaine before it was distributed. Agents also seized additional drugs and firearms in connection with today’s arrests.
Agents of the Florence Resident Office of the Drug Enforcement Administration (DEA) led this investigation with significant participation from the following agencies: Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), Myrtle Beach Police Department, Horry County Police Department, North Myrtle Beach Police Department, Florence County Sheriff’s Office – Special Operations Group, Georgetown County Sheriff’s Office, 15th Circuit Drug Enforcement Unit, Conway Police Department, and Horry County Sheriff’s Office.
Assistant United States Attorney Everett McMillian is prosecuting the case in coordination with the 15th Circuit Solicitor’s Office.
Operation New Optix is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The United States Attorney stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
1 December 2020
Wood County man indicted for violations against a minorRead the Press Release
WHEELING, WEST VIRGINIA – Steven Lockhart, of Davisville, West Virginia, is facing charges involving a minor, U.S. Attorney Bill Powell announced.
Lockhart, 56, was indicted on one count of “Attempted Coercion and Enticement of a Minor” and one count of “Attempted Transfer of Obscene Materials to a Minor.” Lockhart is accused of using his phone to entice a minor in Harrison County to engage in sexual activity in April 2020. He is also accused of sending obscene material on the phone to a minor under the age of 16.
Lockhart faces at least 10 years and up to life incarceration and a fine of up to $250,000 for the coercion count and faces up to 10 years of incarceration and a fine of up to $250,000 for the obscene material count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Wheeling woman indicted for failing to registerRead the Press Release
WHEELING, WEST VIRGINIA – Bobbi Jo Starry, of Wheeling, West Virginia, is facing a sex offender registry charge, U.S. Attorney Bill Powell announced.
Starry, 55, was indicted on one count of “Failure to Register.” Starry, who is required to register as a sex offender, is accused of failing to update her registry from January to August 2020 in the Northern District of West Virginia and elsewhere.
Starry faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The U.S. Marshals Service investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Wheeling man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Devon Alexander Bertram, of Wheeling, West Virginia, is facing drug charges, U.S. Attorney Bill Powell announced.
Bertram, also known as “VON,” 31, was indicted on two counts of “Distribution of Cocaine Base within 1000 Feet of a Protected Location.” Bertram is accused of selling cocaine base or “crack” near West Virginia Northern Community College in April 2019 and near The Linsly School in March 2020 in Ohio County.
Walker faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Swiss Dual National Extradited to United States in Connection with Investment and Bank Fraud SchemesRead the Press Release
WASHINGTON – Lawrence Paul Schmidt, aka Lawrence Schmid, 60, formerly of the District of Columbia, has been extradited from the United Kingdom to stand trial in the District of Columbia on bank fraud and money laundering charges related to an investment fraud scheme. The announcement was made by Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
Schmidt has been detained since his arrest on September 30, 2020 in the United Kingdom. He made his initial appearance at 2:00 p.m. today in federal court in the District of Columbia, where he was indicted on November 1, 2018. Schmidt faces two counts of bank fraud, two counts of wire fraud, and six counts of engaging in monetary transactions in property derived from specified unlawful activity.
According to the indictment, between in or about 2008, Schmidt created several investment entities, including Commercial Equity Partners, Ltd. (“CEP”) and FutureGen Company (“FutureGen”), through which he solicited investors for real estate, mortgage trust deed notes, tax lien notes, and secured commercial mortgage notes. Between in or about June 2008 and April 2014, Schmidt raised over $22 million from approximately 200 investors in the United States and elsewhere. Funds raised from investors were comingled and transferred between and amongst the investment funds to cover whichever expenses were due at the time. Of the over $22 million raised from investors, less than $11 million was placed into investment products. Schmidt instead used new investor funds to repay earlier investors, to pay himself approximately $1.4 million in salary, and to pay $1.3 million in personal expenses, including automobile expenses, mortgage and rent payments for multiple residences, and sports ticket purchases.
As further alleged in the indictment, by January 2014, Schmidt’s investment funds had insufficient funds to pay investors and expenses. Schmidt deposited fraudulent and forged checks into the bank accounts of his investment funds and transferred those funds to the bank accounts of related investment funds in order to pay investors and expenses. Schmidt also misled investors concerning their investments. As the scheme continued to unravel, on April 10, 2014, Schmidt boarded a one-way flight from the United States to London where he remained until his arrest and extradition.
On June 1, 2014, the U.S. Securities and Exchange Commission (“SEC”) filed suit in U.S. District Court for the District of Columbia, in Civil Action No. 14-cv-1002 (CRC), against Schmidt, CEP, FutureGen, and the entities Schmidt controlled. The court entered final judgment against Schmidt on October 3, 2018, and entered final judgment against CEP, FutureGen, and the additional entities that Schmidt controlled on March 11, 2019.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This investigation was conducted by the FBI’s Washington Field Office Criminal Division. The Office of International Affairs in the Justice Department’s Criminal Division, the United States Marshals Service, and the government of the United Kingdom provided substantial assistance in securing Schmidt’s arrest and extradition.
The U.S. Securities and Exchange Commission also provided substantial assistance in this investigation.
The prosecution is being handled by Assistant U.S. Attorney David B. Kent of the U.S. Attorney’s Office for the District of Columbia.
U.S. Attorney Wrigley Announces a Fort Totten Man was sentenced for Sexual Abuse of an Incapacitated PersonRead the Press Release
Fargo – United States Attorney Drew H. Wrigley announced that U.S. District Court Chief Judge Peter D. Welte sentenced Paul Henry Cavanaugh, age 55, from Fort Totten, ND, to serve 21 years and 8 months in federal prison, followed by supervised release for life and ordered to pay $100 special assessment to the Crime Victims’ Fund for the offense of Sexual Abuse of an Incapacitated Victim. On August 14, 2020, a jury found Cavanaugh guilty after a four-day trial in Fargo, the first federal criminal jury trial in North Dakota during the novel coronavirus pandemic.
This case came to the attention of law enforcement in March 2018, when the victim, an 18-year-old adult female, reported that while at Cavanaugh’s residence on the Spirit Lake Indian Reservation, he gave her alcohol and she consumed it and eventually feel asleep. The victim later woke up and discovered Cavanaugh was physically forcing her to engage in a sexual act while she was incapacitated.
This case was investigated by the Bureau of Indian Affairs and the North Dakota Crime Laboratory and was prosecuted by Assistant United States Attorneys Jacob T. Rodenbiker and Lori H. Conroy.
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U.s. Attorney Kurt Alme and the Confederated Salish and Kootenai Tribes Launch Pilot Project to Address Missing and Murdered Indigenous PersonsRead the Press Release
PABLO — Today, at a council meeting of the Confederated Salish and Kootenai Tribes of the Flathead Indian Reservation (CSKT), U.S. Attorney Kurt Alme and the CSKT Council launched a pilot project to develop a Tribal Community Response Plan (TCRP), in accordance with Attorney General William P. Barr’s Missing and Murdered Indigenous Persons (MMIP) Initiative, and the President’s Operation Lady Justice Task Force, and in furtherance of the goals of the recently-enacted Savanna’s Act.
The goal of a TCRP is to improve responses to emergent American Indian and Alaska Native (AI/AN) missing person cases by establishing a collaborative response from Tribal governments, law enforcement, and other partners through culturally appropriate guidelines. The U.S. Department of Justice and other federal agencies developed draft guides to assist in developing plans with input from tribal leaders, tribal law enforcement and their communities.
The council meeting was also attended by representatives from the Federal Bureau of Investigation, the Bureau of Indian Affairs, local law enforcement and community organizations.
The goal is to complete this TCRP by Dec. 11 and when finished, the TCRP will be the first one completed in the country. Lessons learned from the pilot project will be used to improve the draft guides for developing a TCRP before they are released to Tribes across the country.
“I am honored to partner with Chairwoman Fyant and the Confederated Salish and Kootenai Tribes to launch this important pilot project in Montana.” U.S. Attorney Alme said. “Since Attorney General Barr announced the MMIP Initiative here last year, we have been working hard to complete draft guides to assist our joint efforts to develop a Tribal Community Response Plan specific to the needs, resources and culture of the Flathead Community. In spite of significant challenges brought on by COVID-19, we are pleased to be back almost a year later ready to complete this important step in addressing MMIP cases. I want to thank all of the partners who have agreed to be a part of this process. After these pilot projects are completed and the guides are finalized, Savanna’s Act directs our office to continue working with partners such as our other Tribal governments to ensure guidelines are developed across the Montana.”
”Our community worked hard to elevate this issue so it is encouraging to see the effort continue to develop and grow,” said Chairwoman Shelly R. Fyant, Confederated Salish and Kootenai Tribes. “We know how important partnerships are and we will continue to collaborate with stakeholders in our community to implement this plan. We remain committed to working hard and applying resources to ensure our people receive justice.”
“The Montana Missing Indigenous Persons Task Force is excited to have the Confederated Salish & Kootenai Tribes be among the first pilot projects for development of Tribal Community Response Plans. We look forward to working with the U.S. Attorney’s Office, our Tribal partners, and local law enforcement on development of the plans,” said Melissa Schlichting, presiding officer of the Montana Missing Indigenous Persons Task Force.
Working group meetings with representatives from the U.S. Attorney’s Office, the CSKT, law enforcement (including the Flathead Tribal Police Department, Lake County Sheriff’s Office, Missoula County Sheriff’s Office, Flathead County Sheriff’s Office, Sanders County Sheriff’s Office, Polson Police Department, and Ronan Police Department) and community organizations will begin next week to develop the TCRP. The TCRP will include guidelines for law enforcement agencies, victim services, community involvement, and media and public communication.
Confederated Salish and Kootenai Tribe’s Tribal Council passed a resolution establishing a work group to address the issue of missing and murdered indigenous people. CSKT developed their own Missing Persons Protocol with Tribal Law and Order and authorized the development of a social media and tip line. CSKT also hosted a training on human trafficking and its correlation to MMIP and held numerous community meetings on safety awareness. An Arlee Youth Group was formed and has hosted Missing and Murdered Indigenous Women presentations on student safety awareness. The Council also voted unanimously to increase the reward money to $11,000 for any information that leads to solving the case of missing CSKT tribal member Jermain Charlo, who went missing in 2018. The Council helps support a Jermain Charlo billboard near Missoula.
For the past two years, the U.S. Attorney’s Office for Montana has worked with Tribal government partners, the Montana Department of Justice, the Montana Missing Indigenous Persons (MIP) Task Force, the FBI and the BIA to bring awareness to and address this important issue. It hired the country’s first MMIP Coordinator, who has helped coordinate responses to missing person cases; held two statewide trainings for law enforcement on how to use missing person databases and alerts (such as Amber Alerts), and for the public on what to do when a loved one goes missing; brought trainers from the National Missing and Unidentified Persons System (NAMUS) to all seven Montana reservations to train community members on how to use that system when a loved one goes missing; participated in the efforts of the Montana MIP Task Force, which have included ensuring that all missing AI/AN persons have been entered into the Montana Missing Persons Clearinghouse to ensure they are being looked for; and developed a public service announcement to inform the public about what to do when a loved one goes missing.
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.###
Tyler County man indicted for tax violationsRead the Press Release
WHEELING, WEST VIRGINIA – Roger Lee Stevens, of Middlebourne, West Virginia, is facing tax fraud charges, U.S. Attorney Bill Powell announced.
Stevens, 62, was indicted on one count of “Corrupt Endeavor to Obstruct or Impede the Due Administration of the Internal Revenue Laws,” one count of “Failure to Pay Income Tax,” and one count of “Failure to File Income Tax Return.” Stevens is accused of failing to pay income taxes from 2005 to 2009. The IRS issued a notice to Stevens, and later to Stevens’ bank, that his assets would be levied to pay the debt owed to the IRS. As the IRS began directing the bank to turn over funds in Stevens’ account, it is alleged that Stevens began removing funds from the account to impede the IRS from collecting the $22,066 debt. Stevens is also accused of failing to pay income tax for 2016, as well as failing to file an income tax return for 2018.
Stevens faces up to three years of incarceration and a fine of up to $250,000 for the corruption count and faces up to one year of incarceration and a fine of up to $100,000 for the other two counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The IRS investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two New Jersey Men Charged with Theft of $6 Million in Postage for Online E-Commerce BusinessRead the Press Release
NEWARK, N.J. – Two New Jersey men were charged with theft of government property and fraudulently altering United States Postal Service (USPS) postage stamps, U.S. Attorney Craig Carpenito announced today.
Jack Koch a/k/a/ “Ismail Yilmaz,”44, of Elmwood Park, New Jersey, and Steven Koch, a/k/a “Selim Memis,” 43, of Pompton Lakes, New Jersey, are each charged by complaint with one count of theft of government funds and one count of postage stamp fraud. Both defendants are scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer.
According to the documents filed in this case and statements made in court:
Jack Koch and Stephen Koch, owners of a high volume e-commerce Amazon seller, Fresh N Clear LLC (Fresh N Clear), altered postage labels in a manner designed to benefit their business, causing losses in revenue to USPS in excess of $6 million.
The defendants purchased Flat Rate Envelope postage labels meant for USPS-produced compact envelopes, and altered those labels to send their merchandise in larger boxes at discounted flat rates. The Kochs were able to perpetrate the fraud by removing the required USPS visual endorsement “FLAT RATE ENV” from the postage label. Unlike other mail pieces, whose labels need not show the postage paid in a readable format, USPS policy requires the visual endorsement “FLAT RATE ENV” to appear on all mail pieces sent using the “Flat Rate Envelope” discounted rate, allowing USPS employees to determine whether the appropriate postage was, in fact, paid, and that each mail piece sent using that discounted rate does, in fact, weigh 70 pounds or less and fit into the special USPS compact envelope.
Between January 2020 and September 2020, the Kochs caused Fresh N Clear to purchase 240,471 USPS Priority Mail postage labels – almost all for Flat Rate Envelopes. They altered the postage labels in order to send large household items that would not ordinarily fit into a Flat Rate Envelope (such as cases of bottled water, laundry detergent, and cases of soda) at the discounted flat rate.
Theft of government property carries a maximum penalty of 10 years; postage stamp fraud carries a maximum of five years. Both offenses also carry a maximum fine $250,000, or twice the gain derived from the offense or loss caused by the offense, whichever is greater.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Kanawha County Men Plead Guilty to Federal Drug ChargesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that two Kanawha County men pled guilty to federal drug charges before United States District Judge Joseph R. Goodwin.
“We’re working tirelessly with our law enforcement partners to root out drug dealers from every corner of Kanawha County and throughout southern West Virginia,” said United States Attorney Mike Stuart. “Rose and Davis join the long list of defendants we’ve convicted for peddling their poisons.”
Karzell Rose, 29, of St. Albans, pled guilty to distribution of heroin. Rose admitted that on January 23, 2020, he sold approximately 3 grams of heroin to a confidential informant at his residence in St. Albans. On January 28, 2020, law enforcement executed a search warrant at that residence and located an additional amount of heroin, digital scales and two guns. Rose admitted that he intended to distribute the heroin. Rose faces 20 years in prison when sentenced on February 24, 2021. The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Monica Coleman is handling the prosecution.
In a separate case, Justin Lee Davis, 27, of Belle, pled guilty to distribution of methamphetamine. Davis admitted that he sold approximately four ounces of methamphetamine to a confidential informant in the parking lot of a retail establishment near Belle on February 22, 2019. Law enforcement officers were able to observe Davis meeting with the confidential informant during the transaction. Following the transaction, Davis was followed back to his residence. A search warrant was executed at that residence four days later, and Davis was located in a bedroom along with approximately 2.4 pounds of additional methamphetamine, digital scales, and packaging materials. Davis faces up to life in prison when he is sentenced on February 24, 2021. The Drug Enforcement Administration (DEA) conducted the investigation. Assistant United States Attorney Jeremy B. Wolfe is handling 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 Nos. 2:20-cr-00082 (Rose) and 2:20-cr-00164 (Davis).
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Two Charged with Violating Federal Narcotics and Firearms LawsRead the Press Release
JOHNSTOWN, Pa. – Residents of Johnstown, Pa., and Washington, Pa. were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count Indictment named Isiaha Waulk, 24, formerly of Johnstown, Pa., and Derik Carothers, 25, formerly of Washington, Pa., as defendants.
According to the Indictment presented to the court, on or about October 20, 2019, Waulk and Carothers conspired to distribute and possessed with intent to distribute a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack. Further, Waulk and Carothers were found in found in possession of numerous firearms and ammunition. On November 4, 2013, Waulk was convicted in the Cambria County Court of Common Pleas of aggravated assault, and on January 16, 2015 of robbery and aggravated assault, which are crimes punishable by imprisonment for a term exceeding one year. On November 7, 2013, Carothers was convicted in the Cambria County Court of Common Pleas of burglary and carrying a firearm without a license, and on March 20, 2017 of carrying a firearm without a license, also crimes punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum sentence of 20 years to life in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tulsa Man Sentenced for His Role in a Transnational Heroin Trafficking OperationRead the Press Release
A Tulsa man was sentenced today in federal court for his role in a heroin trafficking operation with ties to Mexico’s New Generation Cartel, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Alphonso Caldwell, 27, of Tulsa, to 120 months in prison to be followed by five years of supervised release.
“One of the things I’m thankful for this month is that another major player in a heroin trafficking operation has been held accountable in a court of law. Alphonso Caldwell was sentenced to 10 years in federal prison,” said U.S. Attorney Trent Shores. “Caldwell was one of 30 defendants in an international heroin trafficking scheme that we took down as part of Operation Smack Dragon. I am proud of our multijurisdictional team and their combined efforts to confront this criminal organization. Kudos to the DEA, Homeland Security Investigations, IRS Criminal Investigation, Tulsa Police Department, and the Oklahoma Attorney General’s Office. I would also be remiss if I didn’t acknowledge the hard work and leadership of Assistant U.S. Attorney Joel-lyn McCormick, chief of my Organized Crime Drug Enforcement Task Force. Job well done by all.”
“Drug traffickers and their illegal activity pose a significant threat to the safety of the general public and all of our communities,” said Ryan L. Spradlin, special agent in charge HSI Dallas. “One of our main priorities is to dismantle any transnational criminal organization that attempts to profit from manufacturing, smuggling, purchasing, or distribution of these illicit drugs that hinder public safety. We are committed to working with our federal and state law enforcement partners to keep illegal substances out of our communities and investigating the organizations responsible.”
In his plea agreement, Caldwell admitted that from November 2017 to June 2019 he possessed with intent to distribute and to distribute heroin. Caldwell stated that he purchased ½ kilogram to 1 kilogram of heroin multiple times per week from both Jose Garcia and Edson Garcia-Velasquez. Caldwell purchased the heroin and redistributed it to third parties who redistributed the heroin to others. He relied on customers’ payments to purchase additional heroin.
Caldwell will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, IRS Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force for the Northern District of Oklahoma.
Tioga County Man Pleads Guilty to Attempted Online Enticement of MinorRead the Press Release
BINGHAMTON, NEW YORK - Jacob Gorman, age 39, of Waverly, New York, pled guilty today to attempted online enticement of a minor. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea Gorman admitted that between August 11, 2020 and August 27, 2020, he exchanged text messages with an undercover officer he believed was the mother of a 9-year old girl. In those messages, Gorman expressed an interest in meeting the child and engaging in sex acts with her. Gorman negotiated a price he was willing to pay to engage in sex acts with the child and on August 27, 2020, drove to a pre-determined location in Broome County to meet and have sex with the child. Gorman was then encountered by law enforcement and arrested.
As a result of his conviction, Gorman faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, a maximum fine of $250,000, and a term of supervised release of between five years and life. He will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Sentencing is scheduled for March 23, 2021 before Senior United States District Judge Thomas J. McAvoy.
This case is being investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three Defendants Charged in Connection with Bronx Home Invasion Shooting and RobberyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John B. DeVito, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced charges against SHAWN GARCIA, a/k/a “Ralph Porter,” OSCAR RIOS, a/k/a “Oski,” and SUTHA TAYLOR, a/k/a “Sutha Colon,” (collectively, the “defendants”), in connection with their participation in an August 29, 2020 armed home invasion robbery in the Bronx, New York. GARCIA and TAYLOR were arrested earlier this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Katharine H. Parker. RIOS remains at large.
Acting U.S. Attorney Audrey Strauss stated: “Oscar Rios and his co-defendants allegedly planned and executed a violent robbery, during which one victim was shot and another had her head covered with a garment while the alleged perpetrators coerced her to divulge the location of the other victim’s cash. The three ultimately absconded with a safe containing cash, a cell phone, and marijuana. I thank the ATF and NYPD for their assistance in bringing these alleged brazen and reckless actors to justice."
According to the allegations in the Complaint charging GARCIA, RIOS, and TAYLOR, unsealed today in Manhattan federal court:[1]
On or about August 29, 2020, the defendants participated in an armed home invasion robbery of an apartment in the Bronx, New York. Shortly before the robbery took place, defendant OSCAR RIOS, a/k/a “Oski,” coordinated with certain other co-conspirators (referred to in the Complaint as “CC-1” and “CC-2”) to cause a resident of the Apartment (“Victim-1”) to leave the Apartment, under the guise that CC-1 wanted to buy liquor from Victim-1. Once RIOS learned from CC-2 that Victim-1 was about to exit the Apartment, RIOS informed defendants SHAWN GARCIA, a/k/a “Ralph Porter,” and SUTHA TAYLOR, a/k/a “Sutha Colon,” via text message.
When Victim-1 opened the door to the Apartment, GARCIA, TAYLOR, and a third co-conspirator (“CC-3”) ran into the Apartment and physically assaulted Victim-1, including by striking Victim-1 in the head several times with at least one firearm. While the assault on Victim-1 was in progress, another resident of the Apartment (“Victim-2”) was thrown into the bathroom and ordered to remain there. Victim-1 was then shot one time. After the shooting, one of the robbers placed a dark garment over Victim-2’s head and demanded to know where Victim-1 kept his safe, which contained proceeds from Victim-1’s marijuana sales. Meanwhile, RIOS, who had gone to a nearby building, texted GARCIA and TAYLOR to inform them that area was clear for them to flee. GARCIA, TAYLOR, and CC-3 then fled the Apartment, stealing the safe with cash proceeds from Victim-1’s marijuana sales, as well as other items found in the Apartment, including cash proceeds from Victim-1’s liquor sales, Victim-1’s cellphone, and marijuana belonging to Victim-1.
As a result of the assault and shooting, Victim-1 was hospitalized for several days.
* * *
GARCIA, RIOS, and TAYLOR are each charged with one count of conspiracy to commit Hobbs Act robbery, in violation of Title 18, United States Code, Section 1951, which carries a maximum sentence of 20 years in prison; and one count of substantive Hobbs Act robbery, in violation of Title 18, United States Code, Section 1951, which carries a maximum sentence of 20 years in prison. GARCIA and TAYLOR are also each charged with one count of carrying and discharging a firearm during and in relation to a crime of violence, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
Ms. Strauss praised the outstanding investigative work of the ATF and NYPD, in particular, the Strategic Patterned Armed Robbery Technical Apprehension (“SPARTA”) Task Force, which comprises agents and officers of the ATF and the NYPD.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney David J. Robles is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Stillwater Man Sentenced to Serve More Than Nine Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
OKLAHOMA CITY – ISHMAEL FARRAKAN MUHAMMAD, a.k.a. Mike Rodgers, a.k.a. Dewayne Robinson, 32, of Stillwater, has been sentenced to serve 110 months in federal prison for illegally possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Timothy J. Downing.
On May 4, 2018, Muhammad was arrested while in possession of a .22 caliber handgun and a sawed-off shotgun, each with the serial number obstructed, in addition to ammunition. On September 3, 2019, a federal grand jury returned a three-count Indictment that alleged illegal possession of firearms, illegal possession of an unregistered firearm, and illegal possession of ammunition. On November 1, 2019, Muhammad pled guilty to Count 1 of the Indictment that charged him with possession the .22 caliber handgun while being a convicted felon.
On November 30, 2020, U.S. District Judge Patrick R. Wyrick sentenced Muhammad to serve 110 months in federal prison, followed by three years of supervised release.
This case is the result of investigations by the FBI, ATF and the Stillwater Police Department. Assistant U.S. Attorney Mary E. Walters prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
St. Croix Man Apprehended with Guns, Ammunition, Drugs and Money Pleads Guilty to Federal Firearms ChargeRead the Press Release
St. Thomas, USVI – Rakem Hendrickson, 28, of St. Croix, appeared before Magistrate Judge George W. Cannon, Jr., in District Court and entered a guilty plea to the charge of Use of a Firearm During a Drug Trafficking Crime, United States Attorney Gretchen C.F. Shappert announced.
This offense carries a possible sentence of incarceration for a minimum of 5 years, a maximum fine of up to $250,000 dollars, and a term of supervised release up to 5 years. Sentencing is set for April 14, 2021.
According to court documents, on February 16, 2018, the Virgin Islands Police Department (VIPD) received a tip from a concerned citizen that Hendrickson was selling drugs from his Jeep Wrangler, that Hendrickson was known to carry a firearm, and that he routinely parked the Jeep in the vicinity of Dynasty (Paul’s) Grocery Store. VIPD officers set up surveillance at that location and thereafter observed Hendrickson, park and exit his vehicle. Officers observed drug paraphernalia consisting of a clear plastic bag containing multiple vials in plain view, located in the back of Hendrickson’s Jeep. Shortly thereafter, officers obtained and executed a search warrant. As a result, officers located and confiscated a loaded Glock 22 Austria handgun, 2 additional magazines, 82 rounds of ammunition, approximately 133 grams of marijuana, drug paraphernalia in the form of 94 plastic vials, a digital scale, 2 mason jars, plastic baggies, and $2,584 cash. The foregoing occurred within 1,000 feet of the Lew Muckle Elementary School.
The case was investigated by the Virgin Islands Police Department and Homeland Security Investigations. The DEA Southeast Laboratory in Miami analyzed the marijuana. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Singaporean Shipping Company Fined $12m in a Multi-District Case for Concealing Illegal Discharges of Oily Water and Garbage and a Hazardous ConditionRead the Press Release
New Bern – Pacific Carriers Limited (“PCL”), a Singapore-based company that owns subsidiaries engaged in international shipping, was sentenced today in federal court before U.S. District Court Judge Louise Flanagan in New Bern, North Carolina, after pleading guilty to violations of the Act to Prevent Pollution from Ships, Obstruction of Justice, and for a Failure to Notify the U.S. Coast Guard of a Hazardous Condition on the Motor Vessel (“M/V”) Pac Antares.
PCL pleaded guilty to a total of eight felony offenses across three judicial districts – the Eastern District of North Carolina, the Southern District of Texas, and the Eastern District of Louisiana. PCL was sentenced to pay a fine of $12,000,000.00, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.
In pleading guilty, PCL admitted that crew members onboard the M/V Pac Antares, a 20,471 gross-ton, 586-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water and oil waste without the use of required pollution-prevention equipment, from approximately April 2019 until the vessel arrived in Morehead City, North Carolina, on September 29, 2019. PCL also admitted that the crew discharged oily garbage and plastic overboard and falsified the garbage record book.
PCL also admitted that a large space along the keel of the vessel, known as the duct keel, was being used to store oily waste which constituted a hazardous condition under the Ports and Waterways Safety Act and it should have been immediately reported to the U.S. Coast Guard Sector North Carolina. The Chief Engineer, Wenguang Ye, pleaded guilty to falsifying the oil record book, and was sentenced to a fine of $5,500 and banned from entering the United States for one year after choosing to cooperate in the investigation. In 2008, the M/V Pac Antares was involved in another prosecution in Wilmington, North Carolina, for concealing the overboard discharge of oily bilge water and assessed a total criminal penalty of $2,100,000.
“This kind of deliberate evasion of our pollution control laws will not be tolerated,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “The Environmental Crimes Section proudly works hand-in-hand with U.S. Attorneys Offices and law enforcement partners around the country to investigate and prosecute the intentional violation of our laws that protect our oceans by commercial ship owners, operators, and personnel. It’s also essential that we demand the safe operation of ships in our ports.”
United States Attorney Robert J. Higdon, Jr. said: “The defendants in this case knowingly, intentionally and illegally discharged oily waste and other garbage into the waters along the North Carolina coast. That coastline is among the great natural treasures of this country and we are committed to its protection. To that end we will hold companies and individuals responsible when they fail to follow federal law designed to protect these valuable resources.”
“U.S. Attorneys all over the country work together enforcing federal laws,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Some laws, like environmental crimes, can impact multiple districts at the same time. Foreign ships, because of corruption, incompetence or parsimony that dump their sewage or oil bilge in our waters will be held accountable. The Houston ship channel is a vital engine to the world’s economy and it requires all vessels to respect our laws if they want access to our port.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk.”
“The Coast Guard remains dedicated to preserving the marine environment and protecting our living marine resources,” said Rear Adm. Laura Dickey, Coast Guard Fifth District Commander. “The results of this case showcase the commitment and meticulous efforts of our marine safety professionals, pollution responders and Coast Guard agents in North Carolina, and the great partnership we share with the Department of Justice.”
According to the plea agreement, PCL is the parent company of two other companies that owned and operated the M/V Pac Antares. On Sept. 29, 2019, the M/V Pac Antares arrived in Morehead City, North Carolina. A crewmember walked off the ship and informed a Customs and Border Protection officer that he had information about illegal discharges that had taken place on the vessel. The U.S. Coast Guard was sent that information and conducted an inspection and examination. Examiners discovered and seized a large trove of evidence that oily waste and garbage had been discharged from the vessel to include a configuration of drums, flexible hoses and flanges to bypass the vessel’s oily water separator.
Examiners also discovered that oily waste had been discharged through a laundry sink which subsequently discharged directly overboard or through the vessel’s sewage system. Examiners discovered the sewage system was contaminated with oil. Crewmembers also admitted that bags filled with oily rags were thrown over the side of the ship. These discharges were knowingly not recorded in the M/V Pac Antares’s oil record book and garbage record book when they were presented to the U.S. Coast Guard during the vessel’s inspection. The examiners also found over 60,000 gallons of oily water being stored in the “duct keel” which took several days and a third-party contractor to properly clean out.
Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina, Assistant U.S. Attorney Steven Schammal of the Southern District of Texas, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana are prosecuting the case. The prosecution is the result of an investigation by the Coast Guard Investigative Service – Wilmington Office, Marine Safety Detachment Fort Macon, and Coast Guard Sector North Carolina.
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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.
Singaporean Shipping Company Fined $12 Million in a Multi-District Case for Concealing Illegal Discharges of Oily Water and Garbage and a Hazardous ConditionRead the Press Release
WASHINGTON – Pacific Carriers Limited (PCL), a Singapore-based company that owns subsidiaries engaged in international shipping, was sentenced today in federal court before U.S. District Court Judge Louise Flanagan in New Bern, North Carolina, after pleading guilty to violations of the Act to Prevent Pollution from Ships, obstruction of justice, and for a failure to notify the U.S. Coast Guard of a hazardous condition on the Motor Vessel (M/V) Pac Antares.
PCL pleaded guilty to a total of eight felony offenses across three judicial districts – the Eastern District of North Carolina, the Southern District of Texas, and the Eastern District of Louisiana. PCL was sentenced to pay a fine of $12,000,000.00, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.
In pleading guilty, PCL admitted that crew members onboard the M/V Pac Antares, a 20,471 gross-ton, 586-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water and oil waste without the use of required pollution-prevention equipment, from approximately April 2019 until the vessel arrived in Morehead City, North Carolina, on Sept. 29, 2019. PCL also admitted that the crew discharged oily garbage and plastic overboard and falsified the garbage record book.
PCL also admitted that a large space along the keel of the vessel, known as the duct keel, was being used to store oily waste which constituted a hazardous condition under the Ports and Waterways Safety Act and it should have been immediately reported to the U.S. Coast Guard Sector North Carolina. The Chief Engineer, Wenguang Ye, pleaded guilty to falsifying the oil record book, and was sentenced to a fine of $5,500 and banned from entering the United States for one year after choosing to cooperate in the investigation. In 2008, the M/V Pac Antares was involved in another prosecution in Wilmington, North Carolina, for concealing the overboard discharge of oily bilge water and assessed a total criminal penalty of $2,100,000.
“This kind of deliberate evasion of our pollution control laws will not be tolerated,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “The Environmental Crimes Section proudly works hand-in-hand with U.S. Attorneys Offices and law enforcement partners around the country to investigate and prosecute the intentional violation of our laws that protect our oceans by commercial ship owners, operators, and personnel. It’s also essential that we demand the safe operation of ships in our ports.”
“The defendants in this case knowingly, intentionally and illegally discharged oily waste and other garbage into the waters along the North Carolina coast,” said U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina. “That coastline is among the great natural treasures of this country and we are committed to its protection. To that end we will hold companies and individuals responsible when they fail to follow federal law designed to protect these valuable resources.”
“U.S. Attorneys all over the country work together enforcing federal laws,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Some laws, like environmental crimes, can impact multiple districts at the same time. Foreign ships, because of corruption, incompetence or parsimony that dump their sewage or oil bilge in our waters will be held accountable. The Houston ship channel is a vital engine to the world’s economy and it requires all vessels to respect our laws if they want access to our port.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk.”
“The Coast Guard remains dedicated to preserving the marine environment and protecting our living marine resources,” said Rear Adm. Laura Dickey, Coast Guard Fifth District Commander. “The results of this case showcase the commitment and meticulous efforts of our marine safety professionals, pollution responders and Coast Guard agents in North Carolina, and the great partnership we share with the Department of Justice.”
According to the plea agreement, PCL is the parent company of two other companies that owned and operated the M/V Pac Antares. On Sept. 29, 2019, the M/V Pac Antares arrived in Morehead City, North Carolina. A crewmember walked off the ship and informed a Customs and Border Protection officer that he had information about illegal discharges that had taken place on the vessel. The U.S. Coast Guard was sent that information and conducted an inspection and examination. Examiners discovered and seized a large trove of evidence that oily waste and garbage had been discharged from the vessel to include a configuration of drums, flexible hoses and flanges to bypass the vessel’s oily water separator.
Examiners also discovered that oily waste had been discharged through a laundry sink which subsequently discharged directly overboard or through the vessel’s sewage system. Examiners discovered the sewage system was contaminated with oil. Crewmembers also admitted that bags filled with oily rags were thrown over the side of the ship. These discharges were knowingly not recorded in the M/V Pac Antares’s oil record book and garbage record book when they were presented to the U.S. Coast Guard during the vessel’s inspection. The examiners also found over 60,000 gallons of oily water being stored in the “duct keel” which took several days and a third-party contractor to properly clean out.
Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina, Assistant U.S. Attorney Steven Schammal of the Southern District of Texas, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana are prosecuting the case. The prosecution is the result of an investigation by the Coast Guard Investigative Service – Wilmington Office, Marine Safety Detachment Fort Macon, and Coast Guard Sector North Carolina.
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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
Singaporean Shipping Company Fined $12 Million in a Multi-District Case for Concealing Illegal Discharges of Oily Water and Garbage and a Hazardous ConditionRead the Press Release
Pacific Carriers Limited (PCL), a Singapore-based company that owns subsidiaries engaged in international shipping, was sentenced today in federal court before U.S. District Court Judge Louise Flanagan in New Bern, North Carolina, after pleading guilty to violations of the Act to Prevent Pollution from Ships, obstruction of justice, and for a failure to notify the U.S. Coast Guard of a hazardous condition on the Motor Vessel (M/V) Pac Antares.
PCL pleaded guilty to a total of eight felony offenses across three judicial districts – the Eastern District of North Carolina, the Southern District of Texas, and the Eastern District of Louisiana. PCL was sentenced to pay a fine of $12,000,000.00, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.
In pleading guilty, PCL admitted that crew members onboard the M/V Pac Antares, a 20,471 gross-ton, 586-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water and oil waste without the use of required pollution-prevention equipment, from approximately April 2019 until the vessel arrived in Morehead City, North Carolina, on Sept. 29, 2019. PCL also admitted that the crew discharged oily garbage and plastic overboard and falsified the garbage record book.
PCL also admitted that a large space along the keel of the vessel, known as the duct keel, was being used to store oily waste which constituted a hazardous condition under the Ports and Waterways Safety Act and it should have been immediately reported to the U.S. Coast Guard Sector North Carolina. The Chief Engineer, Wenguang Ye, pleaded guilty to falsifying the oil record book, and was sentenced to a fine of $5,500 and banned from entering the United States for one year after choosing to cooperate in the investigation. In 2008, the M/V Pac Antares was involved in another prosecution in Wilmington, North Carolina, for concealing the overboard discharge of oily bilge water and assessed a total criminal penalty of $2,100,000.
“This kind of deliberate evasion of our pollution control laws will not be tolerated,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “The Environmental Crimes Section proudly works hand-in-hand with U.S. Attorneys Offices and law enforcement partners around the country to investigate and prosecute the intentional violation of our laws that protect our oceans by commercial ship owners, operators, and personnel. It’s also essential that we demand the safe operation of ships in our ports.”
“The defendants in this case knowingly, intentionally and illegally discharged oily waste and other garbage into the waters along the North Carolina coast,” said U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina. “That coastline is among the great natural treasures of this country and we are committed to its protection. To that end we will hold companies and individuals responsible when they fail to follow federal law designed to protect these valuable resources.”
“U.S. Attorneys all over the country work together enforcing federal laws,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Some laws, like environmental crimes, can impact multiple districts at the same time. Foreign ships, because of corruption, incompetence or parsimony that dump their sewage or oil bilge in our waters will be held accountable. The Houston ship channel is a vital engine to the world’s economy and it requires all vessels to respect our laws if they want access to our port.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk.”
“The Coast Guard remains dedicated to preserving the marine environment and protecting our living marine resources,” said Rear Adm. Laura Dickey, Coast Guard Fifth District Commander. “The results of this case showcase the commitment and meticulous efforts of our marine safety professionals, pollution responders and Coast Guard agents in North Carolina, and the great partnership we share with the Department of Justice.”
According to the plea agreement, PCL is the parent company of two other companies that owned and operated the M/V Pac Antares. On Sept. 29, 2019, the M/V Pac Antares arrived in Morehead City, North Carolina. A crewmember walked off the ship and informed a Customs and Border Protection officer that he had information about illegal discharges that had taken place on the vessel. The U.S. Coast Guard was sent that information and conducted an inspection and examination. Examiners discovered and seized a large trove of evidence that oily waste and garbage had been discharged from the vessel to include a configuration of drums, flexible hoses and flanges to bypass the vessel’s oily water separator.
Examiners also discovered that oily waste had been discharged through a laundry sink which subsequently discharged directly overboard or through the vessel’s sewage system. Examiners discovered the sewage system was contaminated with oil. Crewmembers also admitted that bags filled with oily rags were thrown over the side of the ship. These discharges were knowingly not recorded in the M/V Pac Antares’s oil record book and garbage record book when they were presented to the U.S. Coast Guard during the vessel’s inspection. The examiners also found over 60,000 gallons of oily water being stored in the “duct keel” which took several days and a third-party contractor to properly clean out.
Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina, Assistant U.S. Attorney Steven Schammal of the Southern District of Texas, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana are prosecuting the case. The prosecution is the result of an investigation by the Coast Guard Investigative Service – Wilmington Office, Marine Safety Detachment Fort Macon, and Coast Guard Sector North Carolina.
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.
Serial Fraudster Pleads Guilty to Federal Charges for Conspiring to Steal Mail, Stealing Benefits Under the CARES Act, and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – Nicholas Milano White, age 29, of Baltimore, Maryland, pleaded guilty today to the federal charges of conspiracy to steal mail, emergency benefits fraud, and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“It is crucial that funds available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act go to those who have been hardest hit by this global pandemic,” said U.S. Attorney Robert K. Hur. “My office and the entire law enforcement community are committed to bringing to justice fraudsters who are stealing taxpayer funds and preying on citizens during this unprecedented public health crisis to personally benefit by stealing victims’ money and personal identifying information.”
According to his guilty plea, between October 2019 and June 2020, White conspired to and engaged in various fraud schemes, theft of mail, counterfeiting of U.S. currency, production and possession of false identification documents and credit profiles, unemployment insurance fraud, and illegal possession of firearms and ammunition.
White admits that on October 11, 2019, he submitted a fraudulent application for financing to purchase a 2016 Maserati Ghibli vehicle. The credit application listed a false social security number for White and false employment and income information for White and his co-applicant. White also arranged to have fake paystubs created for attachment to the credit application as verification of his income. As a result, White secured financing of $30,227 to purchase the vehicle.
As detailed in his plea agreement, in February and March 2020, White devised schemes to defraud banks and to steal money from individuals by negotiating checks stolen from the United States mail. White and his co-conspirators, at White’s direction, stole mail from collection boxes in the Baltimore area. White then altered the stolen checks and deposited them into bank accounts he controlled and that had been opened for that purpose. On March 8, 2020, law enforcement was able to monitor the movements of White and his co-conspirators through a GPS tracking device installed in a parcel stolen from the collection box at the Rosedale Post Office in Baltimore County. The conspirators’ movements were tracked to several other post offices and collection boxes in Baltimore County where they continued to steal mail. When Baltimore County Police officers approached, the conspirators fled in a white sedan registered to one of White’s co-conspirators. Officers located the van in a residential area of Pikesville, Maryland. The vehicle was unoccupied and gloves, trash bags, and approximately 358 pieces of unprocessed U.S. mail were on the ground outside the vehicle. Law enforcement found and arrested White at a nearby location with a co-conspirator and seized cell phones and USB storage devices from White. White was released from custody following his arrest. There were at least 136 postal customers whose mail was stolen. Approximately 48 victims reported that their stolen mail contained bank checks or other financial instruments totaling $48,938 in value.
A search warrant was subsequently executed on the cell phones and other electronic media seized from White. The cell phones contained text messages about White creating fake credit profiles and false identification documents for himself and others, and conducting fraudulent bank transactions, as well as the personal identifying information (PII) of identity theft victims. White’s phones also contained credit card “dumps,” lists of sensitive information pertaining to at least 1,100 credit cards issued to other persons that could be used to create counterfeit copies of the cards. White had downloaded these lists from websites that illegally marketed and distributed them. White’s cell phones also revealed Internet searches for business and personal check refills, a credit card dump website and a personal data broker website, and photos of numerous stolen checks, among other things. Law enforcement also recovered text messages in which White negotiated prices for the purchase of multiple firearms. A search of White’s USB devices recovered images of U.S. currency in various denominations, which White admitted were used and/or intended to produce counterfeit U.S. currency. In at least one exchange of text messages, White attempted to sell $5,000 of counterfeit currency to another person, at one point claiming that he had purchased firearms with counterfeit currency.
Following White’s release from custody in March 2020, he continued to engage in fraud by submitting a false claim for Florida state unemployment benefits through the Internet in the name of a real person, using the victim’s personal information, but providing a false mailing address in Baltimore. As a result of this false application, the Florida Department of Economic Opportunity (DEO) issued at least two checks payable to the victim totaling $875 and mailed them to the Baltimore address. The victim, a resident of Florida was later contacted by Florida DEO and confirmed that the claim had been submitted without her knowledge or permission.
In addition, on a date no earlier than May 1, 2020, White unlawfully acquired an Economic Impact Payment (EIP) check issued by the U.S. Treasury and authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The EIP check, in the amount of $2,900, was intended for the benefit of M.H. and M.I., a married couple residing in Maryland. The EIP check had been placed in the mail and addressed to the former home address of the couple in Baltimore. On June 23, 2020, White fraudulently negotiated the stolen check by endorsing it with the forged signature of M.H. and depositing it into a bank account fraudulently opened on June 14, 2020, in M.H.’s name and using his social security number and date of birth.
On June 24, 2020, law enforcement executed search warrants at White’s residence and at another address used by White, and conducted a consent search of a storage unit used by White, all in Baltimore. Law enforcement recovered the following items: the stolen EIP check issued to M.H. and M.I.; two fake driver’s licenses listing M.H.’s name and former address, but each displaying a different person’s face; two debit cards issued in the name of M.H.; stolen mail pieces and sensitive financial documents belonging to multiple victims; several blank checks issued for a trust account; numerous fake photo identification cards; counterfeit U.S. currency; fraudulently altered money orders; credit and debit cards displaying different names, at least one of which was determined to be counterfeit; equipment used to print counterfeit currency, create counterfeit credit cards, and fabricate false identification cards, as well as check stock intended to fabricate blank checks and money orders; a .45-caliber pistol; a 9mm pistol with a 50-round-capacity magazine; two .223 caliber high-capacity magazines; and several rounds of ammunition.
Two cell phones and a desktop computer were seized and subsequently searched pursuant to federal search warrants. One of the phones was found to contain notes listing individuals’ names and identifying information, including M.H., as well as a U.S. Postal Inspector who was involved in the investigation of White’s mail thefts and arrest on March 8, 2020. Information stored on White’s desktop computer revealed a search of the Postal Inspector’s name on a personal data broker website on March 14, 2020, following White’s release from custody.
As part of his plea agreement, White will be required to pay restitution in the full amount of the victims’ losses, which the parties have stipulated is no more than $50,000. In addition, White will forfeit his interest in the following items seized during searches in March and June 2020: firearms, ammunition, and firearms magazines; laptop and desktop computers; cell phones; electronic storage devices; blank plastic cards with magnetic strips and/or chips; blank checks and check stock; printers; embossing machines; and magnetic stripe reader/writers or encoders.
White and the government have agreed that, if the Court accepts the plea agreement, White will be sentenced to between five and eight years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for March 11, 2021 at 10:00 a.m.
Charges remain pending against two co-conspirators, Dominic Jerry Robinson, age 26, of Baltimore, and Cedric Jonathan McNeal-Parker, age 29, of Randallstown, Maryland. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service, the U.S. Secret Service, and the Baltimore County Police Department for their work in the investigation and thanked the Office of the Treasury Inspector General for Tax Administration for its assistance. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the federal case.
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San Antonio Father and Son Arrested for Alleged Ponzi SchemeRead the Press Release
Federal authorities have arrested a father and son charged in connection with an alleged Ponzi scheme which defrauded investors of over $800,000, announced U.S. Attorney Gregg N. Sofer and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A five-count federal grand jury indictment charges 76-year-old Earl Roberts, Sr., and 50-year-old Larry Roberts with one count of conspiracy to commit wire and mail fraud, two counts of wire fraud, and two counts of mail fraud.
According to court records, Earl Roberts, Sr., was the president and owner, and Larry Roberts was the Chief Operating Officer of FACTAC, Inc., a company engaged in the business of “factoring” invoices and receivables from other companies. “Factoring” is a business process whereby a company purchases invoices and accounts receivable from other companies at a discount. The purchasing company then makes a profit when the invoices and receivables are paid at full value at a later time.
The indictment alleges that the defendants ceased factoring operations in December 2016, but continued to solicit investor funds until February 2018. Investors were told that their money would only be used to factor receivables when in fact the defendants used investor funds to pay withdrawals and interest payments to previous investors. The defendants also transferred parts of the investor funds to other companies under their control and used the funds to pay for their own personal expenses, fraudulently enriching themselves.
Agents arrested the two San Antonio residents yesterday without incident. Both have been released on bond. Arraignment is scheduled for December 7, 2020 before U.S. Magistrate Judge Henry J. Bemporad in San Antonio. Upon conviction, each related charge is punishable by up to 20 years in federal prison.
The FBI is conducting this investigation. Assistant U.S. Attorneys Justin Chung and William R. Harris are prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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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.