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6 November 2020
Roseburg Man Accused of Attempted Sexual Exploitation of a ChildRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Roseburg man has been charged with Attempted Sexual Exploitation of a Child after he used a hidden camera to attempt to record lewd images of a minor girl.
A federal grand jury in Medford has returned a one-count indictment charging Robert Wayne Roady, 48, with Attempted Sexual Exploitation of a Child in violation of Title 18 United States Code, Section 2251 (a) and (e).
Roady was originally charged in Douglas County Circuit Court on October 22, 2020 with nine counts of Invasion of Privacy in violation of Oregon law. Roady has remained in state custody since his arrest on those charges. This federal indictment is an adoption of the state case. Once Douglas County prosecutors dismiss the state matter, Roady will be transferred to federal custody for an appearance at a later date in Eugene, Oregon.
This case is being investigated by the FBI and the Douglas County Sheriff’s Office. It is being prosecuted by Adam E. Delph and Jeffrey S. Sweet, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Quapaw Man Charged with Sexual Abuse of a Minor and Possessing Parts of Protected EaglesRead the Press Release
A Quapaw man has been indicted for sexually abusing a minor and illegally possessing feathers, talons and heads from seven bald eagles and seven golden eagles, announced U.S. Attorney Trent Shores.
Carl Gene Ortner, 56, is charged with transportation with intent to engage in criminal sexual activity, sexual abuse of a child in Indian Country, abusive sexual contact in Indian Country, possession of parts of a bald eagle, and possession of parts of a golden eagle.
“The United States has charged Carl Ortner with crimes related to the sexual abuse of a child and the unlawful possession of bald and golden eagle feathers and parts. The underlying circumstances of this case involve the alleged use of Native American cultural heritage to exploit and groom the child victim,” said U.S. Attorney Trent Shores. “Protecting children is a top priority for my office, and I’m thankful for our law enforcement partners who have teamed up to investigate this case.”
At a detention hearing held Friday, the United States alleged that Ortner fraudulently claimed to be a Native American spiritual counselor and healer and would give the feathers of bald and golden eagles to the minor victim and the victim’s family in order to gain their trust. At Ortner’s residence, officers allegedly found various parts of bald and golden eagles as well as a whole eagle carcass. Native Americans consider eagles to be sacred and only use the parts to make regalia or for use in cultural and religious practices. Evidence was presented that the defendant allegedly used his position of influence to groom the victim and force her into sexual relations with him, using her cultural beliefs and vulnerability against her. Ortner is not an enrolled member of any federally recognized tribe.
“The U.S. Fish and Wildlife Service vehemently condemns sexual violence of any nature,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “In this case, the defendant allegedly used eagles – our national symbol and a culturally sacred species – to prey upon a child who trusted him. These alleged acts go against everything our country stands for and will not be tolerated. We would like to thank the Federal Bureau of Investigation, Bureau of Indian Affairs, Oklahoma Department of Wildlife Conservation, the Ottawa County Sheriff’s Office and the U.S. Attorney’s Office for their assistance with this case. Together, we can bring wildlife criminals and sexual predators to justice.”
“As alleged in this case, those who seek to prey on children will stop at nothing to lull their victims into a false sense of trust and security, but I’m grateful to the team of agents and analysts who stop at nothing to protect our children,” said FBI Special Agent in Charge Melissa Godbold. “This case represents the teamwork that the public has come to expect from law enforcement. I’m grateful that, after investigating the theft of these natural resources, the U.S. Fish and Wildlife Service reached out to the FBI when they discovered the abuse allegations.”
During today’s detention hearing, prosecutors alleged there may be additional victims. Anyone with information is asked to call 1-800-CALL-FBI (1-800-225—5324).
U.S. Magistrate Judge Frank H. McCarthy set the detention hearing to continue Nov. 12 at 2pm.
The U.S. Fish & Wildlife Service Office of Law Enforcement, Oklahoma Department of Wildlife Conservation, Ottawa County Sheriff’s Department, FBI, and the Bureau of Indian Affairs are the investigative agencies. Assistant U.S. Attorneys Ryan Roberts and Shannon Cozzoni are prosecuting the case.
Pueblo Gang Member Sentenced to Serve 12 Years in Federal Prison for Being A Felon in Possession of A Firearm and Possession of A Firearm During A Drug Trafficking CrimeRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Joseph Jordan Carrillo, age 28, of Pueblo, was sentenced to serve a total of 12 years (144 months) in federal prison followed by 3 years on supervised release for being a felon in possession of a firearm and possession of a firearm during a drug trafficking crime. Carrillo, a member of the South Side Surenos street gang, appeared at the hearing remotely in custody. He was remanded at the hearing’s conclusion. The Denver Field Division of the ATF joined in today’s announcement.
According to the stipulated facts contained in his plea agreement, as well as other court documents and arguments made in court, Carrillo was a fugitive on the FBI Safe Streets Most Wanted list and had an active warrant for his arrest for a parole violation. On October 11, 2019, Pueblo Police Department officers located and approached Carrillo in his vehicle. Carrillo then attempted to flee on foot and was subsequently caught and taken into custody. Officers found in his possession $1916 in cash and a drug ledger. During a search of the vehicle, officers also found a black bag on the driver’s seat containing $1000 cash, approximately 31.6 grams of heroin, and a loaded revolver. Law enforcement then obtained a search warrant for Carrillo’s residence. Inside his bedroom, officers located seven additional firearms, approximately 73.4 grams of heroin, and an additional $14,563 in cash.
In total, Carrillo possessed a total of 102.58 grams of heroin, which he intended to distribute. Along with the heroin, Carrillo possessed a total of eight firearms and ammunition. At least four of those firearms were previously reported stolen. He was prohibited to possess the firearms and ammunition because of a prior felony conviction.
He was sentenced to serve 84 months in federal prison for being a felon in possession of a firearm and 60 months for possession of a firearm in furtherance of a drug trafficking crime. The sentences were ordered to run consecutive.
“Over the last few years we have made a concerted effort to crack down on criminal gang activity in Pueblo,” said U.S. Attorney Jason Dunn. “Removing this felon and his arsenal of guns and drugs from the community will no doubt have a lasting impact. Great work by the Pueblo Police Department, the ATF, and prosecutors in my office.”
“Joseph Carrillo violated Federal firearms laws and brought dangerous drugs into our community – neither of which will be tolerated.” said David Booth, ATF Denver Field Division Special Agent in Charge. “As always, ATF is proud to work with our law enforcement partners to remove violent offenders from our streets and protect our communities.”
Carrillo was prosecuted by Assistant U.S. Attorneys Thomas Minser and Kelly Churnet. The sentence was pronounced by U.S. District Court Judge R. Brooke Jackson. The case was investigated by the Denver Field Division of the ATF and the Pueblo Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 19-cr-505.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
Portland Resident Indicted for Providing Material Support to ISISRead the Press Release
The Department of Justice announced that a federal grand jury in Portland returned a five count indictment against Portland resident Hawazen Sameer Mothafar, 31, charging two counts of conspiracy to provide material support to a designated terrorist organization and one count of providing and attempting to provide material support to a designated foreign terrorist organization, in violation of Title 18, United States Code, Section 2339B(a)(1). In addition, the indictment charges Mothafar with one count of false statements in an immigration application in violation of Title 18, United States Code, Section 1546(a) and one count of false statement to a government agency in violation of Title 18, United States Code, Section 1001(a)(2).
Mothafar had his initial appearance in front of U.S. Magistrate Judge Jolie A. Russo yesterday. Due to the fact that Mothafar has physical disabilities and is confined to a wheelchair, the government did not seek detention. Rather, Mothafar was released on conditions including limitations on travel and the use of electronic devices.
According to the allegations contained within the indictment, between February 2015, and up to the time of arrest, Mothafar conspired with ISIS members to provide material support to ISIS. This support included a range of activities. Mothafar produced and distributed ISIS propaganda and recruiting materials that he created and edited in coordination with official ISIS media operatives located overseas. Mothafar produced, edited, and distributed a number of publications and articles including “Effective Stabbing Techniques,” which provided detailed guidance on how to best kill and maim a target in a knife attack, a tutorial on using explosive ignition devices entitled “How Does a Detonator Work,” and propaganda that encouraged readers to carry out attacks in their home countries if they could not travel overseas to fight. Mothafar also maintained contact with ISIS officials overseas and provided technical support to these individuals that included opening social media and email accounts for official use. During the time of this alleged activity, Mothafar also made false statements on immigration documents and to government officials denying any ties to terrorist organizations.
This case is being investigated by the FBI’s Portland Division and prosecuted by Assistant United States Attorneys Ethan Knight and Geoffrey Barrow with the assistance of Counterrorism Trial Attorney Alexandra Hughes.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pennsylvania man sentenced for bank fraudRead the Press Release
ELKINS, WEST VIRGINIA – Randall Joseph Smail, of Jeannette, Pennsylvania, was sentenced today to two days of incarceration for bank fraud, U.S. Attorney Bill Powell announced.
Smail, age 23, pled guilty to one count of “Bank Fraud” in July 2020. Smail defrauded Pendleton Community Bank of approximately $552,533. Smail created a fictitious account statement from Kraken Bitcoin Exchange, showing he had $640,000,000 in Bitcoin currency that he produced when applying for a loan from the bank, knowing he did not own any Bitcoin currency. He also produced other fictitious paperwork, showing $10,000,000 in another bank that he transferred from his cryptocurrency account, all of which he knew was false. He used these false documents to defraud the bank.
Smail was ordered to pay $773,093.90 in restitution to the victims.
Assistant U.S. Attorney Danae Demasi-Lemon prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Operators of California Charity Scam Sentenced to Prison for Mail Fraud Conspiracy and Tax EvasionRead the Press Release
Geraldine Hill and Clayton Hill, a California couple who operated a charity that purported to provide goods to the needy, were sentenced to prison for conspiracy to commit mail fraud and tax evasion. Geraldine Hill was sentenced to 15 months in in prison, and Clayton Hill was sentenced to 9 months in prison, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert S. Brewer, Jr. for the Southern District of California.
According to court documents and statements made in court, the Hills operated On Your Feet (OYF), also known as the Family Resource Center, a tax-exempt charitable organization whose stated mission was to provide assistance to low income families and individuals in need. From 2011 through 2016, the Hills fraudulently obtained more than $1.35 million in donated clothing and other items for OYF by falsely representing to the donors that the items would be given to needy recipients. In fact, the Hills caused OYF to make only about $13,000 in charitable donations, and then sold the remaining donated items, and used the proceeds to support themselves and their family members. Between January 2011 and February 2017, the Hills spent nearly $380,000 from their personal and charity bank accounts on personal expenses including some luxury retail purchases, vacations, entertainment, and vehicles. To conceal their conduct from the IRS, the Hills filed false charitable tax returns for OYF, and did not pay taxes or file personal tax returns for 2013 and 2014.
“The defendants defrauded the IRS and companies that donated goods in an effort to alleviate poverty and suffering among the least fortunate,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division is committed to investigating and prosecuting those individuals who seek to use the cover of a charity to illegally line their own pockets.”
“Geraldine and Clayton Hill lied to unsuspecting donors about the direction of charitable contributions and engaged in tax fraud to cover their trail,” said Jim Lee, Chief of IRS Criminal Investigation. “Unfortunately, the donors were well-meaning organizations interested in helping the needy and this fraud prevented real people in need from receiving assistance. IRS Criminal Investigation works tirelessly to ensure that criminals like the Hills are brought to justice. In cases like these, not only do the needy of our communities suffer, but also taxpayers and the U.S. government.”
On June 9, 2020, the Hills pleaded guilty to conspiracy to commit mail fraud and tax evasion.
In addition to the terms of imprisonment, U.S. District Judge Dana M. Sabraw ordered the Hills to serve three years of supervised release, and to pay $50,933 in restitution to the United States for their tax evasion. A hearing to address victim restitution for the mail fraud will take place at later date.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brewer commended special agents of the IRS-Criminal Investigation Division and the FBI, who conducted the investigation, and Trial Attorney Valerie Preiss of the Tax Division and Assistant U.S. Attorney Rebecca Kanter, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Interactive Platform for Victim Resource GuideRead the Press Release
U.S. Attorney Christina E. Nolan announced today improvements to her office’s Victim Resource Guide. Victims and their supporters can now access a directory of assistance-related resources at www.vtvictimresources.com. This guide provides a central listing of the valuable resources and services available to assist victims of crime in Vermont. Previously available in booklet form and posted on the U.S. Attorney’s Office website, this comprehensive guide has now transitioned to an interactive online format. This new format allows users to search and filter fields, providing victims faster access to a more comprehensive list of services.
“Our state is home to an amazing array of dedicated providers of victim services,” stated U.S. Attorney Nolan. “This resource guide will help ensure that victims can timely locate providers to support them in their recovery from the trauma of crime. My office is extremely grateful for the vital services offered by these community partners.”
The Victim Resource Guide represents much of what Vermont has to offer victims of crime seeking help and assistance. Please contact Aimee Stearns, Victim/Witness Coordinator - U.S. Attorney’s Office for the District of Vermont, to add a service or resource, or update the information listed in the guide. Please contact her by email at [email protected].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
Navajo man pleads guilty to sexual abuse of a minor in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Wilson Davis, 25, an enrolled member of the Navajo Nation, pleaded guilty in federal court in Albuquerque on Nov. 2 to sexual abuse of a minor in Indian Country.
A grand jury indicted Davis on July 10, 2018. According to the indictment and other court records, on or about Oct. 22, 2016, Davis engaged in and attempted to engage in sexual activity with a child, who at the time of the offense was older than 12 but younger than 16. Davis committed the offense in McKinley County on the Navajo Nation.
Davis is currently in custody pending sentencing. He faces up to 15 years in prison.
The Gallup office of the FBI investigated this case with assistance from the Gallup Police Department and McKinley County Sheriff’s Department. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
Navajo man pleads guilty to abusive sexual contact with a minorRead the Press Release
ALBUQUERQUE,N.M. – Nathan Thomas, 44, of Pueblo Pintado, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty in federal court in Albuquerque on Nov. 4 to abusive sexual contact with a minor in Indian Country.
A grand jury indicted Thomas on June 12, 2019. According to the indictment and other court records, Thomas committed the offense at his family home in San Juan County on the Navajo Nation between Aug. 1, 2007, and July 21, 2010. On more than one occasion over this period, Thomas knowingly engaged in and caused sexual contact with a child under the age of twelve.
Thomas will remain in custody pending sentencing. He faces up to 18 years in prison.
The Gallup office of the FBI investigated this case with assistance from the Navajo Department of Criminal Investigations. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Nampa Man Sentenced to over 8 Years in Federal Prison for Possession of Child PornographyRead the Press Release
BOISE - Cameron Benjamin, 22, of Nampa, was sentenced in U.S. District Court to 97 months in federal prison for possession of child pornography, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Benjamin to serve 15 years of supervised release following his prison sentence. Benjamin pleaded guilty to the charge on August 17, 2020.
According to court records, in December 2019, Idaho Internet Crimes Against Children (ICAC) Task Force began investigating five Cybertips from Twitter. According to the Cybertips, child pornography had been uploaded to five different Twitter accounts. Through its investigation, ICAC was able to determine that the accounts belonged to Benjamin. A federal magistrate judge issued a search warrant for the contents of the Twitter accounts. Within the accounts, ICAC located approximately 70 images and two videos of child pornography. ICAC also located messages where Benjamin discussed trading child pornography with other Twitter users. A federal magistrate judge also issued a search warrant for Benjamin’s residence in Nampa. ICAC executed the search warrant and seized Benjamin’s cellphone. A forensic examination of the cellphone revealed approximately 253 images of child pornography. Benjamin admitted to investigators that he had used his Twitter accounts to send and receive child pornography.
Judge Nye also ordered Benjamin to pay restitution in the amount of $6,000 to victims in the images he possessed and to pay a $5,100 special assessment. As a result of his conviction, Benjamin will be required to register as a sex offender.
This case was investigated by Idaho ICAC Task Force with assistance from United States Postal Inspection Service and Nampa Police Department, and was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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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.
NDTX Round-Up: October 30 – November 5Read the Press Release
SENTENCING – DAVID RAMIREZ-ESPANA
On October 30, David Ramirez-Espana, 41, was sentenced to 9 years in federal prison for possession of a controlled substance with intent to distribute. Ramirez-Espana was stopped for a traffic violation by Dallas Police Department. Officers found a black plastic bag containing approximately one kilogram of black tar heroin. Ramirez-Espana gave consent for officers to search his residence in Dallas where law enforcement recovered 26.30 kilograms of methamphetamine and $43,013 in drug proceeds. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Phelesa Guy is prosecuted this case.
SENTENCING – RAMON REYES, JR.
On November 2, Ramon Reyes, Jr., 47, was sentenced to 20 years in federal prison for transporting and shipping child pornography. The Grand Prairie Police Department received a tip from the National Center for Missing and Exploited Children’s cybertipline that Reyes uploaded eight videos containing child pornography using a social media application. Law enforcement executed a search warrant for Reye’s home. When questioned about the child pornography, Mr. Reyes admitted that some of the images and videos that he transported included sadistic images depicting infants and toddlers. Reyes stipulated that he possessed over 12 images and 40 videos containing child pornography. The case was investigated by the Grand Prairie Police Department and the FBI. Assistant U.S. Attorney Camille Sparks prosecuted this case.
SENTENCING – ANDREW RAY LUGO
On November 2, Andrew Ray Lugo, 30, was sentenced to 85 months in federal prison for conspiracy to possess with intent to distribute a controlled substance. In June 2018, Lugo paid a coconspirator $2,500 to settle a pervious drug debt. One month later, Lugo delivered $4,000 in drug proceeds to a conspirator. A few days later, a coconspirator coordinated a half-a-kilogram delivery of heroin to Lugo. Agents conducted a search of Lugo’s residence where they seized heroin, a firearm, and $1,788 in drug proceeds. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuted this case.
Myrtle Beach Woman Sentenced to 5 Years in Federal Prison for Possessing 39 Balloons of Heroin with the Intent to DistributeRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Mary Denham, 61, of Myrtle Beach, was sentenced to 5 years in federal prison after pleading guilty to possession with intent to distribute Heroin.
Evidence presented to the court showed that on January 15 to January 16, 2019, the Myrtle Beach Police Department executed a search warrant at Denham’s residence in Myrtle Beach. During the search, officers found 39 individual balloons of Heroin.
Chief United States District Judge R. Bryan Harwell sentenced Denham to 60 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by Drug Enforcement Administration (DEA), DEA Tactical Diversion Squad, South Carolina Department of Health and Environmental Control (SCDHEC), and Myrtle Beach Police Department.
Assistant United States Attorneys Lauren Hummel and Justin Holloway prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Member of Boston Latin Kings Chapter Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty yesterday to racketeering charges.
Dante Lara, a/k/a “King Nasty,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Feb. 11, 2021. Lara was arrested and charged in December 2019, at which time he was a member of the Devon Street Kings, a Boston-based Chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. The Devon Street Kings reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. During today’s plea hearing, Lara admitted to participating in the drug distribution activities of the gang and also to possessing a loaded firearm and cocaine that were located in his apartment during the execution of a warrant.
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. Lara is the 19th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Commissioner William Gross made the announcement. 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, Mark Grady 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.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Man and Woman in Lorain charged with sexual exploitation of childrenRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury sitting in Toledo has returned a one-count indictment charging Rosalina C. DRAGGA, 31, of Lorain with sexual exploitation of children. DRAGGA is accused of working with Charles NAKOFF Jr, 32, of Lorain, to produce images of child pornography.
On October 9, 2020, a superseding indictment was filed in federal court in the Northern District of Ohio charging NAKOFF with transportation of child pornography, receipt and distribution of minors engaged in sexually explicit conduct, possession of child pornography and sexual exploitation of children.
According to court records, in April of 2020, law enforcement investigators began an investigation into NAKOFF after Dropbox, Inc. notified law enforcement with the Ohio Internet Crimes Against Children (ICAC) Task Force that approximately 215 alleged video files of child pornography were stored in an online account associated with NAKOFF. The investigation eventually established that NAKOFF, his wife and DRAGGA all lived at the same residence in Lorain at the time the images were transported.
On July 21, 2020, law enforcement executed a search warrant at the Lorain residence and on NAKOFF himself. These warrants were executed without incident, and six items were seized, including three cell phones and three computers. An onsite forensic preview of NAKOFF’s cell phone resulted in the discovery of alleged child exploitation images and videos involving various underage victims. NAKOFF was arrested and taken into federal custody.
During an analysis of one of NAKOFF’s electronic devices, a message string of particular interest was found to have occurred between NAKOFF and his wife, relating to DRAGGA. This led investigators to a series of videos and images on one of NAKOFF’s seized cell phones involving Minor Victim #1 from Lorain. These videos and images depicted an adult male and unidentified female allegedly engaged in sexually explicit conduct with the minor.
Investigators and DRAGGA identified NAKOFF as the male in the files, states the Complaint filed against DRAGGA. In addition, investigators were able to determine that DRAGGA was the unidentified female by using images of DRAGGA publically available online to match with the series of images involving the minor, namely distinct visible tattoos on both sets of images.
According to the Complaint, DRAGGA informed investigators that she cooperated with NAKOFF in the production of these images. DRAGGA was arrested on October 14, 2020.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding both indictments was conducted by Homeland Security Investigations (HSI). These cases are being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
Man Who Emailed Video of Teenager Being Raped Sentenced to Federal PrisonRead the Press Release
A man who distributed videos online depicting the sexual abuse of children, including one in which a male teenager was lying face down and sexually assaulted, was sentenced November 5, 2020, to more than twenty years in federal prison.
Kelby Fowler, age 31, from Traer, Iowa, received the prison term after a pleading guilty to distribution and possession of child pornography.
At the guilty plea, Fowler admitted he distributed and possessed child pornography, including a depiction of a minor who had not yet attained 12 years of age. Fowler possessed multiple videos showing children being sexually assaulted or raped. In an interview with law enforcement, Fowler also admitted to previously sexually assaulting a young child for whom he babysat.
Fowler was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Fowler was sentenced to 252 months’ imprisonment and fined $200. He must also serve a 5-year term of supervised release after the prison term and register as a sex offender. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Fowler is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Federal Bureau of Investigation and the Iowa Department of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-126-CJW.
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Man Indicted for Embezzling $380K from Federal Law Enforcement UnionRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Quantico man with wire fraud in connection with his scheme to embezzle over $380,000 from his former union, which represented federal law enforcement officers.
According to allegations in the indictment, Arthur Penn, 64, served from 1999 through 2015 as the Chairman of the Fraternal Order of Police Defense Protective Service Labor Committee Pentagon, a local union that represented officers of the Pentagon Force Protection Agency. During his tenure, Penn allegedly routinely embezzled funds from the Union for his personal benefit, and spent the stolen funds on gambling, to pay for a personal trip to the Dominican Republic, and for his day-to-day living expenses. Penn sought to conceal and prevent the detection of his embezzlement by failing to make regular reports to Union members, by violating his obligation to file regular financial reports with the Department of Labor’s Office of Labor-Management Standards, and by siphoning off most of the embezzled funds through cash transactions, thereby avoiding the creation of financial records that would have revealed the fraud.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark Wheeler, District Director, Washington District Office, U.S. Department of Labor, Office of Labor-Management Standards; and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement.
Assistant U.S. Attorney Matthew Burke 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-cr-251.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Man Convicted of Defrauding the University of Illinois Sentenced to 42 MonthsRead the Press Release
URBANA, Ill. – U.S. District Judge Colin S. Bruce sentenced Eric Marcel Mboule, 35, of Tucker, Georgia to serve 42 months in federal prison for his role in defrauding the University of Illinois at Champaign-Urbana out of more than $265,000. Mboule previously pleaded guilty to conspiracy to commit wire fraud. Following his sentence, Mboule was ordered to serve three years of supervised release.
In 2016, Mboule along with Patrick Guentangue and others executed a fraudulent scheme to deceive University of Illinois officials into believing that a building contractor working at the U of I had changed banking information in advance of the contractor receiving the next scheduled payment. Based on that deception, the University of Illinois wired a contractual payment into an account owned by Guentangue, under an alias, and not into the contractor’s account. Mboule then sent messages to Guentangue directing him exactly how he should then disburse the fraudulently obtained funds to others involved in the fraud. For his role, in December of 2018, Guentangue was sentenced to 24 months in federal prison and three years of supervised release.
As part of his sentence, Judge Bruce ordered Mboule to pay restitution to the University of Illinois in the amount of $265,193.75.
The charges are the result of an investigation by Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Ryan Finlen in the prosecution.
MS-13 Gang Member Fugitive Extradited from El Salvador to Face Charges of Murdering a 15-Year-Old Boy on Long IslandRead the Press Release
Eduardo Portillo, also known as “Firuli” and “Tito” (Portillo), a member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” and a fugitive from justice, was extradited from El Salvador to the United States early this morning. Portillo, who was arrested in Morazán, El Salvador on February 23, 2019, has been detained pending his extradition to the United States, which was formally authorized by the Supreme Court of Justice of El Salvador on October 6, 2020. Portillo was originally charged with the murder of 15-year-old Javier Castillo in an indictment returned by a federal grand jury in Central Islip, New York, on May 30, 2018. An INTERPOL Red Notice for his arrest was published on December 13, 2018 in connection with these charges. Portillo was arraigned this afternoon before United States Circuit Judge Joseph F. Bianco and ordered detained pending trial.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and extradition.
“Today’s extradition of defendant Portillo demonstrates the resolve of law enforcement to bring to justice all gang members who commits violent crimes in our district no matter where in the world they may run and try to hide,” stated Acting U.S. Attorney DuCharme. “I hope the extradition of the defendant and his prosecution in a U.S. court will bring some measure of closure to the family of the young victim.”
Acting United States Attorney DuCharme expressed his grateful appreciation to the investigators and analysts of El Salvador’s Policía Nacional Civil (PNC) Centro Antipandillas Transnacional (CAT) unit, who are assigned to the Transnational Anti-Gang (TAG) Unit, for their outstanding collaboration in locating and apprehending this fugitive, and to the Office of the Attorney General of the Republic of El Salvador for its crucial assistance during the extradition process. Additionally, Mr. DuCharme expressed sincere thanks to all the members of the FBI’s Long Island Gang Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), as well as to the International Criminal Police Organization (INTERPOL), and the Department of Justice’s Office of International Affairs (OIA), for their partnership in this case.
“Bringing Mr. Portillo back to the U.S. to face justice for the heinous murder of a 15-year-old is a big step toward healing a family and community terrorized by MS-13. We have made incredible inroads with members of that community, building relationships and trust which are vital to keeping the violence at bay. But we’re not done, and we have more work to do. We hope people see this action as a sign that the FBI Long Island Gang Task Force and our partners are not slowing down in our resolve to dismantle MS-13,” stated FBI Assistant Director-in-Charge Sweeney.
Portillo is presently charged in an 89-count seventh superseding indictment, along with 22 other MS-13 members, with racketeering offenses, murder and narcotics trafficking. In particular, Portillo has been charged with participating in the murder of Castillo, who was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals. On October 10, 2016, Portillo and other Brentwood-based members of the Sailors Locos Salvatruchas Westside (Sailors) clique of MS-13 convinced Castillo, who lived in Central Islip, to go with them to Freeport – approximately 30 miles away – to smoke marijuana. They lured Castillo to an isolated marsh area along the water in Cow Meadow Park, Freeport, where they attacked and killed him, taking turns hacking him with a machete. Afterwards, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in October 2017.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Portillo faces up to life in prison.
This indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization. The MS-13’s leadership is based in El Salvador, Mexico, Guatemala and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, the Nassau County Police Department (NCPD), the Suffolk County Police Department (SCPD), the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Office, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
EDUARDO PORTILLO (also known as “Firuli” and “Tito”)
Age: 23
San Francisco Gotera, Morazán, El Salvador; formerly of Central Islip and Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (JFB)
Local corporations enter guilty pleas related to City of Dayton demolition contractsRead the Press Release
DAYTON – Two corporations entered guilty pleas in U.S. District Court today for conspiring to commit mail fraud.
Steve Rauch, Inc. and Green Star Trucking, Inc. admitted they conspired during the summer of 2014 to submit false paperwork to the City of Dayton for demolition contract payments.
According to court documents, Steve Rauch, Inc. accepted a contract with the city that required the company to sub-contract a set portion of the work to a certified disadvantaged business – for example a small business, a woman-owned business, etc. In this instance, the certified disadvantaged business was Green Star Trucking, Inc.
Steve Rauch, Inc., knowing it had not satisfied the requirements on its demolition project, contacted Green Star and asked that Green Star falsely certify it had completed and been paid for several thousand dollars’ worth of additional work on the project. Green Star agreed and signed the false paperwork that Steve Rauch, Inc. then sent to the city.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced the pleas entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Brent G. Tabacchi is representing the United States in this case.
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Local businessman pleads guilty to bribing IRS Agent to avoid paying back taxesRead the Press Release
ATLANTA – Local business owner Dauda Saibu has pleaded guilty to attempting to pay over $15,000 in bribe money to an IRS Revenue Agent to reduce his federal taxes.
“Rather than pay his taxes like every other law-abiding American, Saibu attempted to bribe an IRS Revenue Agent,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the prompt reporting of the agent, Saibu was exposed and his scheme ended with him now facing time in prison.”
“The act of bribery is an attempt to corrupt the administration of the Internal Revenue laws,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Any such attempt will be aggressively investigated and prosecuted to preserve the integrity of the American tax system.”
According to U.S. Attorney Pak, the charges and other information presented in court: As a result of an audit of Saibu's 2014 tax return, the IRS calculated that Saibu owed approximately $187,000 in back taxes. On October 11, 2019, Saibu met with a Revenue Agent to discuss his 2014 tax return. At the end of the meeting, Saibu attempted to give the Revenue Agent a cash bribe.
The Revenue Agent properly reported Saibu’s bribe offer and subsequently agreed work with federal law enforcement authorities. On October 22, 2019, Saibu had two meetings with the Revenue Agent to discuss the results of the IRS’s audit. During these audio and video recorded meetings, Saibu proposed that if the Revenue Agent reduced his tax liability to 20% of the actual amount owed, Saibu would pay the Revenue Agent a $10,000 cash bribe. To memorialize the deal, Saibu wrote: (a) “$10,000” on a piece of paper and gave it the Revenue Agent; and (b) “20% of total amount I owed $187,000” on another piece of paper. After a brief negotiation, Saibu offered to pay the Revenue Agent an additional $5,000, for a total of $15,000.
On October 23, 2019, Saibu again met with the Revenue Agent. During the audio and video recorded meeting, Saibu paid the Revenue Agent $10,000 in cash in exchange for the Revenue Agent reducing the amount Saibu owed in back taxes from approximately $187,000 to $47,485.33. Saibu also confirmed that he would pay the Revenue Agent an additional $5,000 at a later date.
On February 28, 2020, Dauda Saibu, 63 of Atlanta, Georgia, was charged via criminal information with bribing a federal official and pleaded guilty to that charge today. Sentencing has not yet been scheduled.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorneys Jeffrey W. Davis, Public Integrity and Special Matters section chief, and David A. O'Neal are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
KC Woman Sentenced for Social Security, Bankruptcy Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri woman was sentenced in federal court today for a Social Security and bankruptcy fraud scheme.
Carol L. Dille, 68, was sentenced by U.S. District Judge Greg Kays to two years in federal prison without parole. The court also ordered Dille to pay $76,601 in restitution.
On Jan. 31, 2020, Dille pleaded guilty to one count of wire fraud and one count of bankruptcy fraud. Dille admitted that she filed an online application for Social Security retirement insurance benefits in September 2013, using the identity – including the name, date of birth, and Social Security number – of her former husband, Gerald Sanders, from whom she separated in 2009. Sanders had been living overseas since the 2009 separation, and was unaware that Dille filed the application.
Dille, representing herself as Sanders, provided her own address, phone number, and email address as contact information. Dille, while still representing herself as Sanders, indicated benefits should be direct deposited into the bank account of “Alliance of Divine Love Chapel 1202,” of which she was the sole authorized signor on the account.
In June 2016, as Sanders neared his 65th birthday, Dille emailed him offering to help set up his benefits – even though she had been secretly collecting them herself for nearly three years. She pretended to help him and to be sympathetic to his financial distress while diverting $1,420 a month of his benefits to her own bank account.
In August 2016, Sanders moved from Indonesia to Guam. After his move, Sanders went into the Guam Social Security office to check on his application. At that point he was told a claim had already been filed and the Social Security Administration had been paying monthly benefits in his name since October 2013. As a direct result of the fraudulent application filed by Dille, the government paid a total of $76,601 in monthly benefits earmarked for Sanders.
In addition to the Social Security fraud scheme, Dille used the Alliance of Divine Love Chapel bank account twice to commit bankruptcy fraud.
On May 7, 2015, Dille filed for Chapter 13 bankruptcy. She claimed $500,001 to $1 million in estimated liabilities, but failed to list – effectively concealing – the Alliance of Divine Love bank account. Dille’s bankruptcy case was dismissed on Oct. 5, 2015, because she failed to make required payments.
On March 9, 2016, Dille again filed for bankruptcy. Dille again failed to list – effectively concealing – the Alliance of Divine Love bank account. This case was dismissed on May 5, 2016, because Dille again failed to make required payments.
The court also ruled today that Dille violated the terms of her plea agreement by committing another crime between the time of her guilty plea and today’s sentencing. Within three months of entering her guilty plea, Dille committed bankruptcy fraud again when she concealed the attempted sale of a real estate parcel that was an asset of her bankruptcy estate, and the related sale documents, from the bankruptcy court and U.S. Trustee’s Office. Dille admitted that had the sale gone through, she did not intend to use the proceeds to repay her bankruptcy creditors.
This case was prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten and Assistant U.S. Attorney Leigh Farmakidis. It was investigated by the Social Security Administration, Office of Inspector General.
Justice Department Reaches Settlement with the Town of Irmo, South Carolina, to Resolve Allegations of Discrimination Against Homeowner with DisabilityRead the Press Release
The Justice Department announced today that the Town of Irmo, South Carolina, has agreed to pay $25,000 to a homeowner with a disability as part of a settlement agreement resolving the government’s Fair Housing Act (FHA) lawsuit.
The department’s complaint, filed in the U.S. District Court for the District of South Carolina in November 2018, alleged that the town violated the FHA by refusing to allow the Irmo homeowner to build a carport adjacent to her home to accommodate her physical disability. According to the complaint, the homeowner, after falling and suffering injuries on several occasions outside her home, applied for a zoning variance in 2016 to build a carport to protect her driveway and mobility ramp in inclement weather and prevent future falls; the town summarily denied the variance. The homeowner filed a complaint with the Department of Housing and Urban Development (HUD), which conducted an investigation and referred the matter to the Justice Department.
“The homeowner in this case requested a simple, straightforward, and reasonable accommodation: to build a carport adjacent to her own single-family home so she would be protected from the elements and could safely enter and exit her home. She should not have been forced to wait three years for this accommodation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement is a reminder that the Justice Department is committed to working tirelessly to enforce the Fair Housing Act and protect the rights of persons with disabilities. The department’s lawsuit should also serve as a warning that federal law protects the right of persons with disabilities to be secure in their homes and that the Justice Department will do whatever is necessary to protect that right.”
“This office will take action to protect those with disabilities,” said Peter M. McCoy, Jr., U.S. Attorney for the District of South Carolina. “This settlement not only compensates an individual who was initially prevented from making reasonable accommodations for her disability, but it helps ensure that those in similar situations are protected in the future.”
“Today’s settlement is a victory for persons with disabilities, who often need basic modifications to their living space in order to fully utilize and enjoy the place they call home,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to take appropriate action when a municipality’s housing practices violate the law.”
After the department filed the lawsuit, the town adopted an ordinance allowing persons with disabilities to request reasonable accommodations in rules, policies, practices or services to afford them an equal opportunity to use or enjoy their home. More than a year later, the town finally granted the homeowner’s reasonable accommodation request and allowed her to build a carport so she could live safely in her home. Under the terms of the settlement agreement, the town is prohibited from engaging in future disability discrimination or interfering with the homeowner’s use of her carport, and town officials must participate in fair-housing training and report to the department any denial of a request for a reasonable accommodation.
The federal FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Jury convicts North Dakota man of meth trafficking crimesRead the Press Release
GREAT FALLS – A federal court jury today convicted a North Dakota man of methamphetamine trafficking crimes after investigators seized nearly two pounds of meth that were hidden in a pinata and a jar of peanut butter, U.S. Attorney Kurt Alme said.
After a three-day trial that began on Nov. 4, a jury found Christopher Michael Stebbins, 53, of Williston, N.D., guilty of conspiracy to possess with intent to distribute meth and with attempted possession with intent to distribute meth.
Stebbins faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on each crime.
Chief U.S. District Judge Bryan M. Morris presided. Chief Judge Morris set sentencing for March 4, 2021 and ordered Stebbins detained.
“Pinatas are meant to be stuffed with candy, not meth,” U.S. Attorney Alme said. “Mr. Stebbins worked with others to bring large amounts of this poison to Montana communities, including the Fort Peck Indian Reservation. Organizations that push meth will be broken up, and we will stop their spread. I want to thank Assistant U.S. Attorney Jeff Starnes, the FBI, the U.S. Postal Service and the Merced, CA, Police Department for their work on this case.”
The prosecution presented evidence at trial that on Nov. 8, 2019, Don Fred Baldwin, of Merced, CA, mailed almost two pounds of meth to Stebbins to an address of a residence in Brockton, located on the Fort Peck Indian Reservation. The meth was hidden in a jar of peanut butter and inside a “cop dog” pinata. Law enforcement officers intercepted the package, obtained a search warrant and found 1.7 pounds of meth inside the pinata and the peanut butter jar. The quantity of meth seized is the equivalent of about 6,208 doses.
Baldwin was convicted in a companion case of meth distribution and was sentenced in September to six years in prison.
A witness told law enforcement officers that Stebbins received meth from Baldwin and that the shipments were usually one-pound quantities. Baldwin typically shipped the meth to Stebbins’ home in Williston and that the Nov. 8 package was the only shipment to the Brockton residence. The witness said Stebbins would send Baldwin cash for the drugs, which Baldwin would then send to Stebbins. Stebbins would re-package the meth to sell to others.
Assistant U.S. Attorney Jeff Starnes prosecuted the case, which was investigated by the FBI, U.S. Postal Service and the Merced, CA, Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Jury convicts Missoula CPA of filing false tax returnsRead the Press Release
MISSOULA – A federal jury on Thursday found a Missoula accountant guilty of crimes in a scheme in which he filed false tax returns on a couple's businesses by skimming cash and deducting personal expenses like vacations, home improvements and water craft as business expenses, U.S. Attorney Kurt Alme said today.
After a four-day trial that began on Nov. 2, the jury convicted Daniel Brian Burke, 62, of six counts of aiding and assisting to subscribing to a false document.
Burke faces a maximum of three years in prison, a $100,000 fine and three years of supervised release on each count.
U.S. District Judge Dana L. Christensen presided and set sentencing for March 11, 2021. Burke remains on release pending further proceedings.
"Our system depends on all of us paying our fair share of taxes. Accountants and other tax preparers have a particular responsibility to their clients and to our country to advise their clients to follow the law. When someone abuses that trust and helps clients cheat on their taxes, they will be investigated and prosecuted. I want to thank Assistant U.S. Attorneys Ryan Weldon and Karla Painter for prosecuting the case and the IRS Criminal Investigation Division for its investigation," U.S. Attorney Alme said.
“Last night’s conviction of CPA Daniel Burke for helping his clients file false federal tax returns is a victory for all taxpayers,” said IRS-CI Special Agent in Charge Andy Tsui. “The public should expect all tax and accounting professionals to guide their clients to legal and honest financial outcomes. Instead, Mr. Burke used his position as a CPA to break the law, and he will now face the consequences of his actions.”
In evidence presented at trial, the prosecutors said Burke signed false tax returns along with co-defendants and clients, Traci and Joseph Baumgardner, owners of AJB, Inc., for years 2011 to 2013. In total, the Baumgardners reported gross receipts of $5,001,374 and paid federal taxes totaling $10,066 for the time. Traci and Joseph Baumgardner each pleaded guilty to a conspiracy count and testified against Burke. The Baumgardners were each sentenced in June to three years of probation and ordered to pay $89,918 restitution.
Through AJB, the Baumgardners operated two businesses, Splash Car Wash, in Missoula and Hamilton, and Pro Sweeps Plus, an industrial maintenance service. Burke, a certified public accountant, owned and operated Burke and Company, P.C., and prepared corporate and individual tax returns for the Baumgardners.
Prosecutors said an undercover investigation by the IRS showed evidence of two theories for the false returns. In one theory, Burke instructed the Baumgardners not to deposit cash in the bank or report it as income as required. A search conducted by the IRS found $50,000 cash in a safe owned by the Baumgardners.
In the second theory, the Baumgardners deducted personal expenses as business expenses. The deducted personal expenses included vacations to Florida, Hawaii, Las Vegas, the Bahamas and Dallas; residential expenses like utilities, remodeling and house cleaning; retail purchases at various stores; recreational purchases like boats, dune buggies and water craft; and a country club membership.
Prosecutors further presented evidence that the Baumgardners and Burke depreciated assets at 100 percent of business use, disguised items, like a boat as a “sweeper,” and double depreciated assets. Entertainment items, like boats and dune buggies, are not deductible.
An undercover IRS agent met with Burke and in a recorded interview, Burke demonstrated his knowledge of skimming cash and deducting personal expenses as business expenses. At one point, Burke asked the agent, “You're not an undercover agent from the IRS or anything?” The agent responded no. Burke told the agent how to avoid taxes.
Assistant U.S. Attorneys Ryan Weldon and Karla Painter prosecuted the case, which was investigated by the IRS.
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Judge Hands Down Max Prison Sentence to Illegal Firearms TraffickerRead the Press Release
MACON, Ga. - A known firearms trafficker, arrested during an ATF undercover operation into illegal gun trafficking in Macon, was sentenced to federal prison, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Darrius R. Allen, 32, of Macon, was sentenced to 60 months in prison by U.S. District Judge Tripp Self on Thursday, November 5, after pleading guilty to one count possession of a firearm with an obliterated serial number, the maximum prison sentence under federal guidelines. There is no parole in the federal system.
Allen become the subject of an ATF investigation into the illegal possession and sale of firearms in Macon beginning in late September 2019. During the course of the months-long investigation, Allen sold a multitude of firearms and methamphetamine to a confidential informant. A few of these firearms included a loaded Zastava semi-automatic pistol with a large capacity magazine and a Ruger semi-automatic pistol with an obliterated serial number. The final purchase occurred on November 14, 2019, when ATF agents arrested Allen, seizing four firearms and what turned out to be two inert hand grenades.
“Gun trafficking is a deadly business that feeds violence and criminal activities across the Middle District of Georgia. We will pursue the maximum punishment allowed under law for those found trafficking illegal firearms,” said U.S. Attorney Charlie Peeler. “ATF is relentless in their efforts to crack down on illegal firearms trading. I want to thank these agents for their work making our communities safer.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice. This is an excellent example of such an investigation,” said Beau Kolodka, Assistant Special Agent in Charge, ATF Atlanta.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by ATF. Assistant U.S. Attorney Steven Ouzts prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jimcy McGirt Found Guilty of Aggravated Sexual Abuse, Abusive Sexual Contact in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that Jimcy McGirt, age 71, was found guilty by a federal jury of two counts of Aggravated Sexual Abuse In Indian Country, and one count of Abusive Sexual Contact in Indian Country in violation of Title 18, United States Code, Sections 1151, 1153, 2241(c) and 2246(2). Each count is punishable by not less than 30 years and not more than life imprisonment, a fine up to $250,000.00, or both. The jury trial began with testimony on Wednesday, November 4, 2020 and concluded on Friday, November 6, 2020 with the guilty verdicts.
Evidence presented at trial proved that in August 1996 the defendant knowingly engaged in sexual acts upon a child who was four years old at the time.
In 1997 Jimcy McGirt was tried and convicted of First Degree Rape by Instrumentation, Lewd Molestation, and Forcible Sodomy in Wagoner County. While serving two 500 year sentences and life without parole in the Oklahoma Department of Corrections he appealed his conviction, arguing the Creek Nation Reservation had not been disestablished and therefore the State of Oklahoma did not have jurisdiction to prosecute him because he is a member of the Seminole Nation. On July 9, 2020 the United States Supreme Court held the Creek Nation Reservation had not been disestablished and therefore the State of Oklahoma had been without jurisdiction over McGirt.
On August 18, 2020 the federal grand jury in the United States District Court for the Eastern District of Oklahoma returned an indictment against the defendant based on the same facts that had resulted in his 1997 Oklahoma conviction. Less than three months later his federal jury trial began and ended with today’s verdict.
“Today’s verdict is a result of a courageous victim who for the sake of justice was willing to once again relive the horrific acts the defendant perpetrated against her over 24 years ago. Her strength is a powerful testament to the resilience and strength of the human spirit, and a great example for us all,” said United States Attorney Brian J. Kuester. “Prosecuting decades old cases are difficult at best, but the prosecution team along with the Federal Bureau of Investigation demonstrated tenacity and commitment to the federal government’s trust responsibility in Indian Country in the Eastern District of Oklahoma.”
“While the McGirt decision was a precedent setting case in regards to the FBI’s work in Indian Country, today’s verdict shows that the FBI’s commitment to seeking justice for the victims will never change, no matter the court, no matter the venue,” said FBI Special Agent in Charge Melissa Godbold. “I am grateful to the team for their work to bring this more than two-decades old case to trial, and we thank the Jury for their hard work that led to today’s conviction.”
The Honorable John F. Heil, III, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Sarah McAmis and Assistant United States Attorney Courtney Jordan represented the United States.
Issaquah man sentenced to 30 months in prison for possession of child pornographyRead the Press Release
Seattle - A 61-year-old Issaquah, Washington, man was sentenced today in U.S. District Court in Seattle to 30 months in prison for possession of child pornography, announced U.S. Attorney Brian T. Moran. PHILIP B. GILBERT, who was employed in the IT department of the Archdiocese of Seattle, was arrested on state charges in May 2019. He was charged federally in October 2019 and pleaded guilty in June 2020. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez noted that GILBERT will be transferred to custody in California where he is charged with sexual assault and faces up to life in prison if convicted.
According to documents in the case, in January 2019 an electronic service provider reported GILBERT’s account to the National Center for Missing and Exploited Children (NCMEC) for uploading images of child rape and molestation. After obtaining a court-authorized search warrant, law enforcement served the warrant at GILBERT’s residence and seized electronic devices. The devices contained 256 images of child pornography.
Following GILBERT’s arrest, a victim came forward to law enforcement and reported GILBERT molested her. Contra Costa County, California, has charged the defendant with multiple sexual abuse crimes against a minor for which he faces life in prison. Following his federal sentence, he will be transferred to California to resolve those charges. On the federal case, Chief Judge Martinez imposed ten years of supervised release to follow prison and $12,000 in restitution to the victims depicted in the various child pornography series that GILBERT possessed.
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 Department of Justice. 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 www.justice.gov/psc
The case was investigated by the King County Sheriff’s Office in subsequent collaboration with Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
Investment Professional and Author Is Sentenced for Defrauding National Women's SororityRead the Press Release
KNOXVILLE, Tenn. A Florida woman was sentenced to 24 months in prison for her role in an investment management scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney James Douglas Overbey of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.
Cheryl Broussard, 63, of Miami, Florida, was sentenced on November 5, 2020 in the U.S. District Court for the Eastern District of Tennessee by Chief Judge Gregory N. Stivers of the Western District of Kentucky. Judge Stivers also ordered the defendant to pay $106,000 in restitution and $106,000 in forfeiture. Broussard pleaded guilty on Aug. 14, 2019, to one count of wire fraud.
Broussard, the author of multiple books on women and finance, advertised herself as a financial professional with over two decades of experience in investment management and fiscal independence for women. As part of her plea, Broussard admitted to entering into an investment agreement with a professional women’s sorority pursuant to which she would manage $100,000 of the sorority’s funds in February 2015. Beginning in June 2015, Broussard sent regular investment portfolio reports to the sorority purporting to detail investments in securities. Unbeknownst to the sorority, Broussard had used its funds for personal expenses, and the periodic reports were fake. Broussard admitted that, when the sorority noticed inconsistencies in the periodic reports and sought to terminate the agreement, she fabricated a termination penalty that appeared to be part of the original agreement to prevent the sorority from going forward with the termination. When the sorority eventually terminated the agreement, Broussard failed to remit any funds to the sorority.
This case was investigated by the Federal Bureau of Investigation. Trial Attorney Michelle Pascucci of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Frank M. Dale are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan, and pleading not guilty on Nov. 4 was:
Jason John Stang-Parker, 32, of Shepherd, on charges of theft from a federal licensee and possession of a stolen firearm. If convicted of the most serious crime, Stang-Parker faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Stang-Parker was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-130.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Nov. 3 was:
Brandon Lee Main, 41, of Harlem, on charges of possession with intent to distribute meth. If convicted of the most serious crime, Main faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Main was detained pending further proceedings. The FBI and Fort Belknap Police Department investigated the case. PACER case reference. 20-79.
Leonard James Hilton, 34, of Great Falls, on charges of possession of a firearm by an unlawful user of a controlled substance. If convicted of the most serious crime, Hilton faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Hilton was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-78.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Husband and Wife Sentenced for International Elder Fraud SchemeRead the Press Release
RICHMOND, Va. – A husband and wife were sentenced today to a combined 92 months in prison for their roles in a sophisticated fraud scheme that primarily targeted elderly Americans.
According to court documents, Chirag Choksi, 36, who was sentenced to 78 months in prison, and Shachi Majmudar, 36, who was sentenced to 14 months, were members of a criminal conspiracy in which members used a variety of schemes, including impersonating law enforcement officers and other government officials, to trick and coerce victims into mailing and shipping cash to other conspiracy members by convincing the victims, a disproportionate number of whom were elders, that it was in their best interests to do so.
“The financial and emotional harm these scams cause elderly victims and their family members can be devastating,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The scope of fraud perpetrated through robocalls from overseas call centers is truly enormous. According to the Federal Trade Commission, in 2019 it received nearly 400,000 complaints alleging imposter fraud claims totaling $152.9 million, which government officials suspect substantially underestimates the extent of fraud because many victims do not report their losses. As seen from the evidence in this case, a disproportionate percentage of those victims are elderly. This office will continue to aggressively prosecute crimes involving elder fraud, and we are firmly committed to bringing the offenders to justice, no matter where they reside.”
These schemes generally started with automated “robocalls” from a call center in India that were designed to create a sense of urgency with unsuspecting recipients. The messages typically told the recipient that they had some sort of serious legal problem, and that if they did not immediately take a particular action demanded by the callers then there will be drastic consequences. Typically the recipients were threatened with arrest, significant financial penalties, or cessation of government benefits. The fraudsters almost invariably instructed the call recipient that, in order to prevent these dire consequences, the recipient must pay money, by wire transfer or cash, to some purported government entity. This conspiracy operated “money mule” cells in multiple states, including New Jersey, California, Indiana, Texas, Illinois and Minnesota. These money mules would receive parcels containing cash that had been sent by victims and then deposit the money in bank accounts controlled by conspirators.
“These fraudsters used fear, intimidation, and even posed as law enforcement to threaten seniors and swindle them out of their hard-earned money,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “These scams can cause irreparable harm to the unsuspecting and trusting victims they target. The FBI will continue to work with our law enforcement partners to stop those who are targeting our senior communities. Regardless of whether the perpetrators live domestically or overseas, the FBI will work to bring them to justice.”
In one particular scheme involving a victim in Chesterfield County, members of the conspiracy impersonated DEA agents and advised the victim that they had found a vehicle located near the United States Southwest border that contained a large amount of cocaine and the victim’s bank information. The fraudsters then convinced that victim to surrender half the cash in her bank accounts as a sign of good faith until a thorough investigation had cleared her of any criminal activity.
According to court documents, Choksi and Majmudar worked as money mules for the Minnesota cell of this conspiracy for at least two months in 2019. Between May and June, Choksi and Majmudar received victim cash shipments at their home in Eden Prairie, Minnesota. Choksi also used counterfeit driver’s licenses to pick up victim cash shipments from locations in and around Eden Prairie. Majmudar regularly tracked victim cash shipments. Once in hand, she and Choksi made video recordings of Choksi removing and counting the money, and then sent the videos to their conspiracy supervisor as proof of how much victim cash had been received. The two each then made multiple cash deposits into bank accounts controlled by conspiracy members.
In total, Choksi and Majmudar received or attempted to receive 11 shipments from 10 victims located in multiple states around the country. The total amount of victim cash in these packages was $132,200. Of the 10 victims who sent cash to the defendants, nine were between 66 and 86 years of age.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
The Eden Prairie Police Department (Minnesota) provided significant assistance with this investigation.
Assistant U.S. Attorneys Brian Hood and Kaitlin G. Cooke prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.
Haverhill Man Pleads Guilty to Fentanyl DistributionRead the Press Release
BOSTON – A Haverhill man pleaded guilty yesterday in federal court in Boston to distributing fentanyl in 2019.
Wilfredo Rivera, 32, pleaded guilty to one count of possession with intent to distribute fentanyl. U.S. District Court Nathaniel M. Gorton scheduled sentencing for March 3, 2021.
On Aug. 15, 2019, Rivera was arrested after purchasing eight grams of fentanyl for distribution. He was indicted in October 2019 as part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Valuable assistance was provided by the Drug Enforcement Administration, the Massachusetts State Police and the North Andover Police Department. Assistant U.S. Attorney Eve A. Piemonte of Lelling’s Office is prosecuting the case.
Greene County Man Sentenced to 6 Years in Prison for Federal Drug and Gun OffensesRead the Press Release
PITTSBURGH – A former resident of Waynesburg, Greene County, Pennsylvania, has been sentenced in federal court to serve a total of 72 months’ imprisonment followed by 36 months’ supervised release on his convictions for violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on Julius Maurice Hurt, 35, formerly of Waynesburg, Greene County, Pennsylvania, who was convicted of possessing quantities of heroin and cocaine intending to redistribute those substances, and possessing firearms in furtherance of that drug trafficking crime.
According to information presented to the court, in the early morning hours of May 3, 2017, Waynesburg Borough Police Officers were dispatched to the area in and around the Greene County Courthouse based on 911 calls that an individual, later determined to be Mr. Hurt, was observed carrying firearms. The responding officers located Mr. Hurt in that area and found him in possession of two loaded firearms (a .45 caliber Colt pistol and a 9mm Smith & Wesson pistol). On his person, police found quantities of cocaine and heroin, which Mr. Hurt admitted to possessing with the intent to distribute. In Mr. Hurt’s Waynesburg residence, the state police found drug paraphernalia commonly used to package heroin and cocaine for further distribution. In connection with his guilty plea, Mr. Hurt admitted to possessing the firearms in furtherance of the charged drug trafficking offense.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and the Waynesburg Borough Police Department for the investigation leading to the successful prosecution of Mr. Hurt.
Grand jury indicts former Ferguson police officer accused of assaulting suspectRead the Press Release
ST. LOUIS, MO – A federal grand jury indicted former Ferguson Police Officer Jackie Matthews, 63, of Florissant, Missouri on one count of Deprivation of Rights Under Color of Law and one count of Making a False Record for an incident occurring on March 13, 2020.
According to the indictment, on March 13, 2020, Officer Matthews while with the Ferguson Police Department deprived the victim of his right to be free from unreasonable force. In so doing, Matthews assaulted the victim while handcuffed and not posing a physical threat to anyone. The indictment further alleges Matthews’ falsified the police report claiming the victim resisted arrest.
“I want to commend the Ferguson Police Department for swiftly bringing this matter to the attention of the appropriate authorities,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “By doing so, it demonstrated its commitment to accountability that all professional law enforcement organizations strive for in order to maintain the public’s trust.”
If convicted on both counts, Matthews faces a maximum punishment of up to 20 years in prison and a fine of up to $250,000.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Federal Bureau of Investigation investigated this case.
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Grand Island Man Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Daniel Galindo, 26, of Grand Island, Nebraska, was sentenced by the Chief United States District Judge John M. Gerrard to 15 years’ imprisonment for distribution of methamphetamine. There is no parole in the federal system. Once he completes his prison term, Galindo will begin a 10-year term of supervised release.
On six occasions between January and August, 2019, Daniel Galindo sold methamphetamine to a confidential informant working with investigators.
Galindo was previously convicted in 2013 for distribution of methamphetamine.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Goldsboro Man Sentenced to 17 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
RALEIGH, N.C. – A Goldsboro man was sentenced today to 204 months in prison for Possession with Intent to Distribute 50 Grams or More of Methamphetamine.
According to court documents, Obrien Devon Kornegay, 38, was arrested in Duplin County on June 26, 2019, after he delivered four ounces of crystal methamphetamine to a confidential informant. When Kornegay was arrested, he also had two grams of crack cocaine and 2 grams of heroin in his pockets. Further investigation revealed that Kornegay had been involved in dealing kilograms of crystal methamphetamine and cocaine between December 2018 and his arrest in June 2019.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Duplin County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Laura S. Howard prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00024-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Tulsa Police Officer Charged with First Degree MurderRead the Press Release
A former Tulsa Police Officer who requested his Oklahoma manslaughter conviction be dismissed based on the Supreme Court’s McGirt decision was charged today in federal court with the first degree murder of Jeremey Lake, announced U.S. Attorney Trent Shores.
Shannon James Kepler, 60, of Tulsa, is charged with first degree murder in Indian Country, causing death by using and discharging a firearm during and in relation to crimes of violence, and assault with a dangerous weapon in Indian Country.
“Nineteen-year-old Jeremey Lake’s life was senselessly cut short in 2014 when Shannon Kepler allegedly shot and killed him. A jury convicted Mr. Kepler in state court, but the McGirt decision has impacted his conviction. The need to pursue justice remains. The United States Attorney’s Office will now ask a federal jury to convict Shannon Kepler,” said U.S. Attorney Trent Shores. “Our victim specialists are communicating with Jeremey’s family and will be with them every step of the way as this case moves forward in federal court. Our prosecutors have worked hand in hand with our partners at the Tulsa County District Attorney’s Office to ensure this young man and his family experience a full measure of justice.”
According to the indictment, Kepler maliciously and with premeditation murdered Mr. Lake, his daughter’s boyfriend, by shooting him multiple times with a firearm. He is further charged with shooting at a minor male victim during the course of the crime.
The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
The Tulsa Police Department and FBI are the investigative agencies. Assistant U.S. Attorneys Ross E. Lenhardt and Sean J. Taylor are prosecuting the case. Mr. Lenhardt is a prosecutor from the Western District of Pennsylvania, and Mr. Taylor is a prosecutor from the Northern District of Texas. Both volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Former Rusk County Employee Sentenced to 5 Years for Embezzling over $700,000Read the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Sandra Stiner, 66, Ladysmith, Wisconsin, was sentenced today by U.S. District Judge William Conley to five years in prison for wire fraud and aggravated identity theft. Stiner pleaded guilty to these charges on August 12, 2020.
Stiner worked at the Rusk County Health and Human Service Department (HHS) for 42 years before retiring in January 2019. While working for HHS, Stiner misappropriated $702,351, during a nine-year time span, from June 2010 to January 2019, by creating and submitting fictitious invoices allegedly from a home-based therapy company (R.Y.P.) for nonexistent intensive in-home autism services to twin boys.
At her plea hearing on August 12, 2020, Stoner admitted that she used, without lawful authority, a means of identification of real people and real entities in an effort to create documentation that appeared legitimate and provided cover to support her fraud scheme, including taking the name and taxpayer identification number (TIN) of R.Y.P., and the name of its founder, Dr. K.L., and misusing them to create a nominee bank account, nominee email account, and fictitious invoices.
Stiner also admitted that part of her fraud scheme included her forging the signature of Dr. K.L. on various R.Y.P. documents and IRS forms to make these documents appear legitimate to Rusk County. Stiner also admitted that she took the name of T&T S.C., a CPA firm in La Crosse, Wisconsin, and misused it to create a fictitious letter and financial statements for R.Y.P. Stiner told Judge Conley that she created a nominee bank account on June 21, 2010 at Bank of America using the name of R.Y.P. and forged the signature of Dr. K.L. on the R.Y.P. direct deposit authorization form to make sure the payments came to Stiner and not the real owner of R.Y.P. Based on these fictitious invoices, Rusk County paid $702,351 to Stiner’s nominee bank account over a 9-year period.
Judge Conley imposed a sentence of three years for the wire fraud charge and a consecutive two years for the aggravated identity theft charge, for a total prison sentence of five years. Judge Conley ordered Stiner to report to prison on January 6, 2021.
In imposing sentence today, Judge Conley told Stiner that he has seldom seen someone whose conduct was so cynical, deliberative and longstanding. He explained to Stiner that her conduct also undermined the public trust in government institutions. Judge Conley ended his comments by telling Stiner, “I am holding you responsible for the decisions you made.”
The charges against Stiner are the result of an investigation conducted by the Rusk County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Daniel J. Graber is handling the prosecution.
Former President and CEO of Cecil Bank Sentenced in Maryland to Two Years in Federal Prison for a Bank Fraud Conspiracy, Receiving a Bribe, and Making False Statements in Bank RecordsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced the former President and Chief Executive Officer of Cecil Bank, Mary Beyer Halsey, age 59, of Rising Sun, Maryland, to two years in federal prison, followed by five years of supervised release. Halsey pleaded guilty on July 31, 2020, to the federal charges of conspiracy to commit bank fraud, receipt of a bribe by a bank official, and false statement in bank records, in connection with the straw purchase of a home in Rising Sun, Maryland, upon which Cecil Bank had foreclosed. Judge Chasanow also ordered Halsey to forfeit her interest in the home in Rising Sun and to pay restitution in the amount of $145,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Mark P. Higgins of Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Mid-Atlantic Region; Special Agent in Charge Patricia Tarasca of Federal Deposit Insurance Corporation, Office of Inspector General (FDIC/OIG), New York Region; Special Inspector General Christy Goldsmith Romero for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration, Office of Inspector General (SBA/OIG).
“Mary Beyer Halsey will now serve time in federal prison after she used her position as President and CEO of Cecil Bank for her personal benefit, causing a loss to the bank, which had already received federal taxpayer funds as part of the Troubled Asset Relief Program,” said U.S. Attorney Robert K. Hur. “Corrupt bank officials undermine the public’s trust in our financial system.”
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed by officers of financial institutions which are members of the 11 Federal Home Loan Banks (FHLBanks) because their crimes strike at the heart of the FHLBank System,” said Mark Higgins, Special Agent in Charge of the FHFA-OIG’s Mid-Atlantic Region. “We are proud to have partnered with the U.S. Attorney’s Office for the District of Maryland and our law enforcement partners on this case.”
“Today the former CEO of Cecil Bank was sentenced to prison, becoming the 78th banker sentenced to prison resulting from a SIGTARP investigation,” said Special Inspector General Christy Goldsmith Romero. “Treasury wrote off $11 million from its TARP investment in Cecil Bank. We commend U.S. Attorney Hur and his team of prosecutors in standing with SIGTARP to combat fraud that hurt banks during critical times.”
Cecil Bank, located in Elkton, Maryland, had received $11,560,000 in federal taxpayer funds in 2008, under the Capital Purchase Program, as part of the Troubled Asset Relief Program. On April 20, 2011, Cecil Bank initiated the foreclosure of a single-family house located at 127 Ebenezer Church Road in Rising Sun.
According to her plea agreement, from 2012 to 2013, Halsey conspired with Daniel Whitehurst, an employee of a real estate development company that did business in Maryland, to defraud Cecil Bank and another bank to purchase a home through false pretenses, representations and promises. Specifically, on March 28, 2012, Halsey and Whitehurst met at a restaurant in Cecil County. Whitehurst asked Halsey if she could help him and a business partner get a $500,000 line of credit from Cecil Bank. Halsey agreed to help Whitehurst to obtain a line of credit from Cecil Bank, in exchange for Whitehurst agreeing to serve as the straw purchaser of 127 Ebenezer on behalf of Halsey. Halsey suggested that she increase the line of credit for Whitehurst to $650,000 to include the funds needed to buy the house. Whitehurst agreed to Halsey’s request to secretly buy 127 Ebenezer on Halsey’s behalf. On May 9, 2012, Halsey participated in a loan committee meeting at Cecil Bank that considered and approved a $650,000 line for credit for Whitehurst and a $500,000 line of credit for his business partner.
Halsey admitted that at her request, on May 14, 2012, Whitehurst visited 127 Ebenezer and provided Halsey with an estimate of the costs to update the house. Whitehurst determined that beyond replacing the kitchen subflooring at a cost of about $1,000, there were no significant repairs needed. Whitehurst provided a letter of intent to purchase the home from the bank for $150,000 for Halsey to review. Halsey suggested lowering the price to $145,000 to allow room to increase the offer later. Halsey knew that an exterior-only appraisal of the property ordered by Cecil Bank on November 9, 2011, showed a market value of $263,000. A full appraisal on September 10, 2012, reflected a market value of $295,000. To support the below-market price that Halsey wanted to pay, Whitehurst included in the letter of intent a list of lower-priced home sales in the same area that were not comparable to 127 Ebenezer and therefore was not reflective of the property’s actual market value.
As detailed in the plea agreement, on May 23, 2012, Whitehurst e-mailed Cecil Bank his offer to purchase 127 Ebenezer for $145,000. On the same day, during a meeting of the Cecil Bank Board of Directors, Halsey advised the Board that Whitehurst had made a purchase offer of $140,000 for 127 Ebenezer, $5,000 less the actual offer. To support the below-market price of $140,000, Halsey falsely characterized the property as having “structural deficiencies [that] will require significant repairs.” Halsey did not disclose her personal interest in the property, nor Whitehurst’s role as her nominee to acquire the property on her behalf. The Board authorized Halsey to “negotiate the best price.” Thereafter, Whitehurst submitted a contract for him to purchase 127 Ebenezer from Cecil Bank for $150,000, which Halsey signed on August 17, 2012 on behalf of Cecil Bank.
According to the plea agreement, subsequent to authorizing the sale of 127 Ebenezer, Halsey told Whitehurst that he should not use his line of credit from Cecil Bank to purchase the house, but should instead get the funds from a different source. Whitehurst applied for and obtained a $100,000 loan from another bank to purchase 127 Ebenezer, fraudulently claiming that he was purchasing the property for himself and that the down payment was from an investment account. On October 31, 2012, prior to 127 Ebenezer going to settlement, Halsey wired $75,000 to Whitehurst’s bank account to cover the cost of the down payment as well as closing costs and upgrades to the property that Halsey directed Whitehurst to arrange. To conceal the true purpose of the wired funds, Whitehurst sent Halsey a fictitious real estate contract purporting to show that the $75,000 was the down payment for a different property that Whitehurst owned in Havre de Grace, Maryland.
On November 21, 2012, the settlement of 127 Ebenezer was held with Halsey representing Cecil Bank as the seller, and Whitehurst as the purported purchaser, selling the property to Whitehurst for $150,000. Both signed the HUD-1 form which falsely represented that Whitehurst had paid approximately $52,566 at settlement, when in fact, the down payment and all related closing costs were paid from the $75,000 Halsey had wired to Whitehurst’s bank account beforehand. From October 31, 2012 through March 29, 2013, Halsey transferred an additional $60,000 to Whitehurst to cover the cost the upgrades to the house that they had previously discussed, as well as to reimburse Whitehurst for mortgage payments he made on the property. Halsey and Whitehurst also made plans to transfer title of the property to Halsey by selling the house to her at a price that would minimize the tax consequences of the sale for Whitehurst.
In December 2012, in response to a question from a bank examiner for the Federal Reserve Bank of Richmond inquiring about the sale of the property to Whitehurst, Halsey falsely stated that she was “not totally familiar with [that] property” and that the bank had difficulty marketing the property and had not listed it with a realtor because of “issues with the county over the bonds outstanding.”
In April 2013, federal agents began interviewing employees and other borrowers about banking irregularities at Cecil Bank. Title to 127 Ebenezer was never transferred to Halsey. Halsey never told the bank that she was the true purchaser of 127 Ebenezer, nor did the bank know that Halsey and Whitehurst had orchestrated the sale of the foreclosed property at the fraudulent price of $150,000, instead of the appraised pre-renovation price of $295,000.
As a result of Halsey’s misrepresentations and omissions, the bank lost approximately $145,000.
Daniel Whitehurst, age 36, of Bel Air, Maryland, pleaded guilty under seal to the federal charge of mail fraud on April 6, 2018. Whitehurst faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud. Judge Chasanow has not scheduled a date for Whitehurst’s sentencing.
United States Attorney Robert K. Hur commended the FHFA-OIG, Mid-Atlantic Region; FDIC/OIG; SIGTARP; and SBA/OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.
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Former Missouri State Representative pleads guilty to using campaign funds for his own personal use and expensesRead the Press Release
ST. LOUIS, MO – United States District Judge Stephen Clark accepted a plea, today, from Courtney Curtis. The 39-year-old Ferguson, Missouri resident pleaded guilty to three counts of wire fraud relative to his theft of funds from his “Curtis for MO” campaign account. Curtis served as Representative of Missouri District 73 from 2013 until 2019. Most recently, Curtis served as an assistant to St. Louis County Councilwoman Rita Heard Days.
According to the plea agreement, beginning on or about January 1, 2016 and continuing through on or about December 31, 2017, Curtis devised, intended to devise, and knowingly participated in a scheme to defraud and to obtain money from donors to the “Curtis for MO” campaign committee by means of materially false and fraudulent pretenses, representations, and promises. Curtis misled donors by falsely representing, and causing to be falsely represented, that money contributions to the “Curtis for MO” campaign committee would be used for campaign and reelection purposes, when, in fact, he used a substantial portion of the money contributed by donors to the “Curtis for MO” campaign committee for his own personal use and expenses.
After fraudulently convincing constituents to donate money to the “Curtis for MO” campaign committee, Curtis knowingly used monies in the “Curtis for MO” campaign committee bank account for his own personal benefit, unrelated to any legitimate campaign or reelection purpose in various ways, including but not limited to: Using money in the account to pay for his apartment rental and utility bills; paying for hotel, airfare and travel expenses; paying for restaurant and bar bills; withdrawing funds from the account through substantial cash withdrawals; and, using money in the account to purchase retail items for his personal use.
Additionally, from time to time, Curtis deposited campaign donation checks into his personal bank account, and used those funds to pay for personal living expenses unrelated to any legitimate campaign or reelection purpose. Curtis acted to conceal his scheme by failing to file required reports with the Missouri Ethics Commission, or by filing false reports with the Missouri Ethics Commission, which failed to identify his cash withdrawals from the “Curtis for MO” campaign committee bank account, failed to identify payments made directly from the “Curtis for MO” campaign committee bank account which were made for his own personal use, unrelated to any campaign or reelection purpose, and failed to identify campaign donation checks received and deposited to his personal bank account. Curtis wire transferred funds from the “Curtis for MO” campaign account to pay for personal expenses and to make cash withdrawals.
“If it weren’t for the diligent work of the Missouri Ethics Commission, this federal felony may not have come to light,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “While the Commission can only impose fines on candidates who lie on campaign finance reports, the FBI will bring to justice those who serve themselves instead of their constituents.”
Total funds obtained by Curtis through his scheme to defraud his donors was approximately $47,867.69.
The charge of wire fraud carries a maximum penalty of no more than 20 years of imprisonment and a fine of no more than $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Judge Clark has set sentencing for February 5, 2021. The Federal Bureau of Investigation investigated this case. Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.
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Former Minneapolis Police Officer Charged with Illegally Acquiring Controlled Substances, Extortion, Violation of Civil RightsRead the Press Release
United States Attorney Erica H. MacDonald today announced an 11-count federal indictment charging TY RAYMOND JINDRA, 28, with acquiring controlled substances by deception, extortion under color of official right, and deprivation of rights under color of law. JINDRA, who was taken into custody earlier today, made his initial appearance before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.
According to the allegations in the indictment, from September 2017 through October 2019, JINDRA, a former police officer with the Minneapolis Police Department (“MPD”), abused his position in order to obtain and attempt to obtain controlled substances including methamphetamine, heroin, oxycodone, cocaine, and other drugs by deception, extortion, and conducting unconstitutional searches and seizures.
According to the allegations in the indictment, as part of his scheme, JINDRA diverted controlled substances for his own purposes by various means in the course of his duties as a MPD officer. JINDRA diverted controlled substances by not reporting, logging, placing into evidence, or informing his partner or other officers on scene about the controlled substances that he had confiscated. On some occasions, JINDRA would find ways to interact with or search an individual, vehicle, or residence so that he could surreptitiously recover controlled substances without his partner’s knowledge. At times, JINDRA conducted searches beyond the scope warranted under the circumstances in attempt to recover controlled substances. At times, JINDRA would turn off his body-worn camera when he found, concealed or diverted controlled substances he lawfully possessed in the course of his duties as a MPD officer.
United States Attorney Erica H. MacDonald thanks the FBI for its skilled investigative work on this case and the Minneapolis Police Department for its immediate notification to the FBI and substantial assistance in bringing this indictment.
Assistant U.S. Attorneys Amber M. Brennan and Michelle E. Jones are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
TY RAYMOND JINDRA, 28
Elk River, Minn.
Charges:
- Acquiring controlled substances by deception, 6 counts
- Extortion under color of official right, 2 counts
- Deprivation of rights under color of law, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Ennis pharmacist sentenced to prison, fined for opioid distributionRead the Press Release
MISSOULA – A former Ennis pharmacist who admitted dispensing opioids to himself and to a friend using forged or altered prescriptions was sentenced today to five months in prison, followed by five months of home confinement, three years of supervised release and was fined $4,500, U.S. Attorney Kurt Alme said.
Bradley John Stoick, 70, of Hailey, Idaho, pleaded guilty on July 30 to dispensing a controlled substance by a practitioner and to acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception or subterfuge.
U.S. District Judge Donald W. Molloy presided. Judge Molloy allowed Stoick to self report to prison.
“Mr. Stoick abused his position as a pharmacist to fraudulently prescribe himself opioids and to illegally send opioids to a friend. Health care professionals and other licensed providers must comply with the law in dispensing all drugs, especially opioids, and they will be held accountable if they don’t,” U.S. Attorney Alme said.
The prosecution said in court records that Stoick was the pharmacist-in-charge of Ennis Pharmacy in Ennis. In 2019, Drug Enforcement Administration investigators conducted a routine administrative inspection of Ennis Pharmacy and discovered numerous prescriptions for Stoick for Norco 10-325mg, a drug which contains Hydrocodone, a powerful opioid and a Schedule II controlled substance. Stoick filled those prescriptions for himself as the on-duty pharmacist. The doctor whose name and signature were on those prescriptions never saw Stoick as a patient and did not issue any of those prescriptions.
In addition, pharmacy records showed that Stoick altered a prescription for a friend. He modified the strength of the prescription from Norco 5-325mg up to Norco 10-325mg, which contains twice as much Hydrocodone. He also increased the amount of the prescription from 45 pills to 120 pills. Stoick then filled the prescription himself and mailed it to his friend in Utah.
In a separate civil case settled in July, Ennis Pharmacy agreed to pay a $125,000 fine and make several changes to its operating procedures.
Assistant U.S. Attorney Michael A. Kakuk prosecuted the case, which was investigated by the DEA.
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Former Department of Justice Paralegal Pleads Guilty to Accessing and Releasing Sensitive, Non-Public InformationRead the Press Release
A former contractor with the U.S. Department of Justice pleaded guilty today for unlawfully using her government computer to access government records and providing sensitive, non-public information to another individual, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Danielle Taff, 37, of Ankeny, Iowa, who was employed as a contractor paralegal at the U.S. Attorney’s Office for the Southern District of Iowa from approximately June 2017 to June 2018, pleaded guilty to one count of fraud and related activity in connection with computers before U.S. District Judge Stephanie M. Rose of the Southern District of Iowa. A sentencing date has not been scheduled.
According to admissions made in connection with her guilty plea, while employed as a paralegal, Taff was assigned to the office’s Civil Division, where she worked exclusively on matters related to civil forfeiture and was neither required nor authorized to access files and information related to the district’s investigation and prosecution of criminal cases. Taff admitted that on or about May 16, 2018, she used her U.S. Department of Justice computer to access criminal files stored on the district’s shared electronic data storage drive, including reports of law enforcement interviews with at least two individuals who cooperated with the district in a drug-trafficking investigation. Taff then used her cell phone to take approximately thirty photographs of the sensitive, non-public documents related to the drug-trafficking investigation.
After photographing the documents, Taff shared them with her friend, Person A, who subsequently shared the photographs with several individuals on Facebook. As a result, in October 2018, other individuals posted those photographs to a Facebook group dedicated to outing “snitches,” or law enforcement cooperators, in the Des Moines, Iowa region. Among other sensitive information, the photographs taken by Taff and subsequently posted on Facebook identified at least two cooperators in the drug-trafficking investigation by name and other personal identifiers.
The Department of Justice Office of the Inspector General, Chicago Field Division, is investigating the case. Trial Attorneys Erica O’Brien Waymack and Matthew Palmer-Ball of the Criminal Division’s Public Integrity Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Bank Employee Arrested for Fraud and Identity TheftRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Natasha Seetaram was arrested for bank fraud, aggravated identity theft, and related charges.
According to the Indictment filed in the case, Seetaram formerly worked at the St. Thomas branch of a bank identified by the initials “B.P.” in the charging document. She is accused of using her position at the bank to issue debit cards in the names of bank customers without such customers’ knowledge or consent. Seetaram then used the cards for her own personal benefit, making ATM withdrawals and purchases first in St. Thomas and later in Jacksonville, FL when she relocated her residence there.
This case is being investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorneys Nathan Brooks and Kyle Payne.
An indictment is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Former Baltimore Police Detective Pleads Guilty to Making False Statements to Federal AgentsRead the Press Release
Baltimore, Maryland – Ivo Louvado, age 47, of Bel Air, Maryland, pleaded guilty today to making false statements to federal agents.
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, Louvado joined the Baltimore Police Department on November 21, 1999, and was promoted to Detective in 2008. In February 2009, one of Louvado’s co-workers advised that they had received information from a confidential informant about a large-scale narcotics trafficker operating out of a residence in the 1400 block of Ellamont Street in Baltimore. On February 19, 2009, Louvado and other members of his squad were conducting surveillance in the 1400 block of Ellamont Street, targeting an individual, T.M.
As detailed in the plea agreement, other officers participating in the law enforcement action followed a car from that residence. Those officers claimed to have recovered trash that contained cocaine residue that had been thrown from the car they had followed. Louvado and other officers then entered the residence that the man was allegedly observed leaving. Louvado and other officers remained in the house until two members of the squad obtained a search warrant from a Baltimore City District Court judge. Louvado ultimately participated in the search of the residence, specifically, taking photographs of items that BPD seized. At some point, Louvado was alerted to the presence of a jacket hanging behind a door that contained a large amount of cash in it, which Louvado photographed.
While in the house, officers found car keys and a BPD officer activated the remote alarm on one of the keys. Officers heard the alarm sound in a pickup truck that was parked nearby. Louvado and other officers went to the pickup and opened an opaque cover that was over the back of the pickup truck. Under construction debris, a significant quantity of cocaine was found. Louvado and other officers waited with the cocaine until a SWAT team arrived. The SWAT team was called to provide protection during the transportation of the cocaine to BPD headquarters because it was such a large quantity. In order to transport the cocaine from the scene to BPD headquarters, it was loaded into a BPD surveillance van driven by another member of Louvado’s squad, K.G. After the cocaine was loaded into the surveillance van, Louvado followed the SWAT team to BPD headquarters to maintain chain-of-custody over the cocaine. Forty-one kilograms of cocaine was turned into the BPD’s Evidence Control Unit on February 20, 2009. Later that day, federal drug charges were filed against T.M.
Louvado admitted that he, K.G., and V.R. (another member of the squad) later discovered three kilograms of cocaine in the surveillance van that had been used to transport the 41 kilograms that were turned into BPD. The three kilograms were part of the seizure from T.M.’s pick-up truck but had not been turned into BPD. Louvado, K.G., and V.R. agreed that rather than turn this cocaine into BPD, they would sell it and split the proceeds. According to the plea agreement, a confidential informant of V.R.’s who was a drug trafficker purchased the cocaine, which the trafficker then sold in Baltimore. V.R. received the proceeds of the sale from his source and shared them with Louvado and K.G. Louvado acknowledged that he received $10,000 in drug proceeds from the sale of the three kilograms of cocaine.
On March 1, 2017, seven members of the BPD’s Gun Trace Task Force were arrested on federal racketeering charges, including W.J. Following the filing of charges, the FBI continued to investigate misconduct by members of the BPD. On May 30, 2018, Louvado agreed to participate in a voluntary interview with an FBI special agent and an FBI task force officer, who questioned him about the seizure of cocaine on February 19 and 20, 2009. In that interview, Louvado knowingly falsified, concealed, and covered up material facts, namely, that he and two other officers had split the proceeds from the sale of the three kilograms of cocaine that had been seized by BPD that day. As a former federal task force officer himself, Louvado knew that it was a crime to provide false information during interviews with federal law enforcement. Louvado also knew that the FBI was investigating police corruption and was questioning him about the seizures that day in order to determine if police misconduct had occurred.
Louvado faces a maximum sentence of five years in federal prison for making false statements to federal agents. 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 Catherine C. Blake has not yet scheduled sentencing.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
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Federal Jury Convicts Bryson City Woman of Distribution of A Controlled Substance Resulting in DeathRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Shannon White, 43, of Bryson City, N.C. of distribution of a controlled substance resulting in death, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Sheriff Curtis A. Cochran of the Swain County Sheriff’s Office and Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, witness testimony and evidence presented at trial, Shannon White, an enrolled member of the Eastern Band of Cherokee Indians and resident of the Cherokee Indian Reservation, was involved in the distribution of narcotics in an around Jackson and Swain Counties. Trial evidence established that on January 27, 2019, a victim, identified in court documents as “J.F.,” ordered heroin from White. White agreed to supply the heroin to J.F. and supplied him with a substance that White believed to be heroin, but that turned out to be fentanyl. According to trial testimony, J.F.’s use of the fentanyl resulted in J.F.’s overdose death. According to evidence presented at trial, White continued to sell narcotics even after she became aware of the J.F.’s death, as well as falsely accused several other individuals of committing the crime.
White is currently in custody. At sentencing, the charge carries a mandatory minimum sentence of 20 years in federal prison.
In making today’s announcement U.S. Attorney Murray commended the Swain County Sheriff’s Office and the DEA in Asheville for their investigation of this case, and thanked the FBI and the Cherokee Indian Police Department for their invaluable assistance.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Federal Inmate Sentenced for AssaultRead the Press Release
SPRINGFIELD, Mo. – An inmate at the U.S. Medical Center for Federal Prisoners in Springfield, Missouri, was sentenced in federal court today for assaulting another inmate at the facility.
Earl F. Love, 55, was sentenced by U.S. District Judge Roseann Ketchmark to seven years in federal prison without parole. The court ordered today’s sentence to be served consecutively to Love’s previously imposed sentence of 25 years in prison for fatally stabbing a victim with whom he was angry because the victim borrowed his scooter for too long.
On Aug. 18, 2020, Love was found guilty at trial of one count of assault causing serious bodily injury. Evidence introduced during the trial indicated that Love walked into the cell of another inmate, identified in court documents as “D.W.,” on Dec. 30, 2018. Love and the victim were in an argument over a $46 sports gambling bet. As another inmate served as a lookout, Love struck D.W., fractured his nose and other bones in his face, and knocked him unconscious.
Afterward, the victim was transported by ambulance to the emergency room with potentially life-threatening injuries. D.W. was admitted to the hospital and spent several days in the Intensive Care Unit. According to court documents, the victim’s injuries not only required intubation to ensure he could continue to breathe, other serious injuries were inflicted that included a broken orbital bone, a fracture to his neck vertebrae, and facial injuries that have required several operations to reconstruct.
According to court documents, Love has a history of violent criminal behavior. While incarcerated, he has continued to amass a considerable amount of violations that includes repeatedly assaulting other inmates, disrespect to the staff, possession of contraband, and running a gambling pool.
This case was prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by the FBI.
Federal Grand Jury A Indictments Announced- November 2020Read the Press Release
United States Attorney Trent Shores today announced the results of the November 2020 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Gilbert Bilal. Possession of a Firearm and Ammunition by an Alien Illegally in the United States. Bilal, 47, of Tulsa, is charged with being an alien unlawfully in the United States who possessed a Glock 19, 9mm pistol and ammunition. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa Police Department are the investigative agencies.
David Samuel Boggs, Jr. Felon in Possession of a Firearm and Ammunition; Possession of Firearm While Subject to a Domestic Violence Protective Order; Assault of a Spouse, Intimate Partner, Dating Partner by Strangling, and Attempting to Strangle or Suffocate in Indian Country; Assault With a Dangerous Weapon in Indian Country; Attempted Kidnapping in Indian Country; Interstate Violation of a Protective Order in Indian Country; Stalking in Indian Country; Carrying and Using a Firearm During and in Relation to a Crime of Violence (superseding). Boggs Jr, 34, of Tulsa, faces multiple charges including the violation of a protective order, stalking, attempted kidnapping and assault of a female victim. On June 10, 2020, the defendant allegedly assaulted his former dating partner by strangling her until she passed out and kicking her head and body with steel toe boots. From June 10-17, 2020, it is alleged that the defendant stalked the victim and attempted to kidnap her. Boggs Jr is also charged with being a felon in possession of an FMK 9mm pistol and ammunition. He was previously convicted of kidnapping and domestic abuse. He is also charged with possessing the firearm while subject to a protective order issued on April 3, 2019. The FBI and Tulsa Police Department are the investigative agencies.
James Jordan Buckley. Robbery in Indian Country; Burglary in the First Degree; Kidnapping in Indian Country. According to the indictment, Buckley, 21, of Tulsa, forcibly broke into the victim’s home, threatened the victim, and demanded the keys to her car. He then stole the car. On April 1, 2020, Buckley kidnapped two other victims and attempted to steal their car. The FBI and Tulsa Police Department are the investigative agencies.
Jeremiah Dylan Claxton. Unlawful User of a Controlled Substance in Possession of a Firearm. Claxton, 42, of Sand Springs, is charged with being a user of a controlled substance in possession of a Smith and Wesson 9mm semi-automatic pistol.The Oklahoma Highway Patrol and Drug Enforcement Administration are the investigative agencies.
Bradley Don Goodin. Aggravated Sexual Abuse of a Minor under 12 in Indian Country (Counts 1-3); Abusive Sexual Contact with a Child under 12 in Indian Country (Count 4); Abusive Sexual Contact of a Child in Indian Country (Count 5) Possession of a Firearm While Subject to a Domestic Violence Protective Order (Count 6)(superseding). Goodin, 46, of Sapulpa, is charged with four counts of engaging in sexual acts with two Native American children under the age of 12, occurring in 2019. He is further charged with abusive sexual contact of a different child between the ages of 12 and 16, allegedly taking place from the Fall of 2008 to the Spring of 2009. Goodin is also charged with being in possession of 21 firearms while subject to a domestic violence protective order. The Sapulpa Police Department, Creek County Sheriff’s Office and FBI are the investigative agencies.
Randy Alan Hammett. Kidnapping in Indian Country; Carjacking; Possessing and Receiving a Stolen Firearm and Stolen Ammunition; Possession of a Firearm While Subject to a Domestic Violence Protective Order; Burglary in the Second Degree in Indian Country; Assault With a Dangerous Weapon in Indian Country; Domestic Violence in Indian Country; Interstate Violation of a Protective Order; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. (2nd superseding). Hamett, 63, of Choctaw, allegedly violated a protective order by breaking into his former spouse’s home, and assaulting and kidnapping her on April 25 and April 26, 2017. He is also charged with brandishing a firearm during the crime, carjacking, possessing a stolen firearm and ammunition, and possessing firearms and ammunition while subject to a protective order. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Broken Arrow Police Department, Siloam Springs Police Department, and the Rogers State University Police Department are the investigative agencies.
Michael Charles Hicks Jr. Robbery in Indian Country; Larceny of a Motor Vehicle in Indian Country (superseding). Hicks Jr, 50, of Okmulgee, allegedly used force and violence to steal a 2015 Cadillac Escalade from its owner. The FBI, Tulsa Police Department, and Oklahoma Highway Patrol are the investigative agencies.
Matthew Alan Joseph. Felon in Possession of a Firearm; Kidnapping in Indian Country; Assault With a Dangerous Weapon in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country; Theft Over $1,000 in Indian Country. Joseph, 37, of Tulsa, is charged with being a felon in possession of a Colt .45 pistol and associated ammunition after three domestic assault and battery convictions. In this superseding indictment, Joseph is further charged with kidnapping, assaulting a female victim using a knife, and assaulting the victim by strangling her. He is also charged with stealing the victim’s Toyota Camry. The FBI and Tulsa Police Department are the investigative agencies.
Jamie Lea Keahbone. Child Abuse in Indian Country; Assault With a Dangerous Weapon in Indian Country. Keahbone, 40, of Broken Arrow, is charged with abusing a female minor by striking, beating, strangling, and suffocating her on Oct. 14, 2020. Keahbone is further charged with assaulting the minor with a lamp base. The FBI and Broken Arrow Police Department are the investigative agencies.
Shannon James Kepler. First Degree Murder in Indian Country; Causing Death by Using and Discharging a Firearm During and in Relation to Crimes of Violence; Assault With a Dangerous Weapon in Indian Country. Kepler, 60, of Tulsa, is charged with deliberately and with premeditation and malice aforethought murdering Jeremey Lake by shooting him multiple times with a firearm on Aug. 5, 2014. He is also alleged to have assaulted a second male victim by discharging a firearm at the victim. The FBI and Tulsa Police Department are the investigative agencies.
Derek Howard Long. Felon in Possession of a Firearm; Felon in Possession of a Firearm and Ammunition. Long, 33, of Tulsa, is charged with being a felon in possession of a Hi-Point,.380 caliber semi-automatic pistol and ammunition. He is further charged with being a felon in possession of a Smith and Wesson .40 caliber semi-automatic pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Benjamin Marcantel. Assault Resulting in Serious Bodily Injury in Indian Country. Marcantel, 37, of Tulsa, is charged with assaulting a male victim by striking him with a pick-up truck, resulting in a serious compound fracture of the victim’s leg. The FBI and Tulsa Police Department are the investigative agencies.
Tyler Austin McGhee. Aggravated Sexual Abuse in Indian Country; Burglary in the First Degree in Indian Country; Aggravated Sexual Abuse in Indian Country; Strangulation of a Dating and Intimate Partner in Indian Country. On Oct. 10, 2020, McGhee, 26, of Broken Arrow, is alleged to have sexually abused the victim. Then on Oct. 23, 2020, McGhee is alleged to have broken into the victim’s home and strangled and sexually abused the victim, causing her to fear for her life. The FBI and Broken Arrow Police Department are conducting the investigation.
Craig Alan Morrison and Amanda Lyn Walker. Child Abuse in Indian Country; Enabling Child Abuse in Indian Country (superseding). Morrison, 36, and Walker, 41, of Tulsa, are charged with enabling and committing acts of child abuse. Morrison is charged with abusing a child under the age of 18, while Walker is being charged with enabling and allowing the abuse to take place. The FBI and Tulsa Police Department are the investigative agencies.
Emmanuel Nunez. Possession of a Firearm After a Conviction for a Misdemeanor Crime of Domestic Violence. Nunez, 37, of Tulsa, is charged with possessing a firearm after a domestic violence conviction. Nunez, knowing he had previously been convicted of domestic violence, was found to be in possession of A Rock Island Armory, .45 caliber semi-automatic pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and Tulsa Police Department are the investigative agencies.
Ronald Alexander Rodriguez-Paz and Eva Estrada Juarez. Obtaining Forced Labor; Benefiting From Forced Labor; Involuntary Servitude; Trafficking With Respect to Peonage, Slavery, Involuntary Servitude, and Forced Labor; Use of False Social Security Number; Use or Possession of False Immigration Documents; Aggravated Identity Theft (superseding). Paz-Rodriguez, 36, and Juarez, 29, of Tulsa, aided and abetted each other in obtaining the labor and services of a minor child through 1. force, threats of force, physical restraint and threats of physical restraint; 2. serious harm and threats to seriously harm; 3. the abuse and threatened abuse of the law and legal process; and 4. multiple schemes to cause the victim to believe she would suffer serious harm if she did not perform the labor and services. The two are also charged with benefiting financially as a result of the forced labor; holding the minor to a condition of involuntary servitude; and recruiting, harboring, transporting, providing and obtaining the minor child for labor and services. They are both further being charged with using a false social security card, Paz-Rodriguez listing a false SSN on a rent application, and Juarez falsely listing a SSN on an employment application. Paz-Rodrigues is also being charged for using a forged permanent resident card. Paz-Rodriguez and Juarez are both being charged with aggravated identity theft for using means of identification they knew belonged to another person. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.
Jose Pizana Ruiz and Brittany Paige Coffee. Possession of Methamphetamine with Intent to Distribute. On Sept. 17, 2020, Ruiz, 44, and Coffee, 27, allegedly possessed with intent to distribute 500 grams or more of methamphetamine. The Tulsa Police Department is the investigative agency.
Travis Dray Stewart. Aggravated Sexual Abuse of Children in Indian Country. Stewart, 40, of Tulsa, knowingly engaged in sexual acts with a child under the age of 12. The FBI and Tulsa Police Department are the investigative agencies.
Jaymz Joe Vann. Felon in Possession of Firearm and Ammunition. Vann, 26, is charged with being a felon in possession of a Taurus, .40 caliber semi-automatic pistol and six rounds of ammunition. Vann is a 3-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Phillip Eugene Wallace. Felon in Possession of Firearms and Ammunition. Wallace, 31, of Tulsa, is charged with being a felon in possession of a Glock .40 caliber pistol, a Taurus .40 caliber pistol, and multiple rounds of ammunition. Wallace is a 6-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Kyla Morgan Westbrook. Possession of Methamphetamine With Intent to Distribute. Westbrook, 24, is charged with possessing 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine with the intent to distribute. The Tulsa Police Department is the investigate agency.
Kendall Ray Whitlow. Child Abuse in Indian Country; Child Neglect in Indian Country. Whitlow, 23, of Tulsa, physically abused a child under the age of 18. Further, Whitlow is also charged with child neglect after failing to provide adequate nurturance, affection, food, shelter, hygiene, sanitation, appropriate education, supervision, behavioral health care, and medical and dental care to the same child. The FBI and Tulsa Police Department are the investigative agencies.
Sherman Herbert Wilde III. Assault With a Dangerous Weapon in Indian Country. Wilde III, 37, of Tulsa, is charged with assault for discharging a firearm at the victim. The FBI and Tulsa Police Department are the investigative agencies.
Michael Douglas Williams. Failure to Register as a Sex Offender. Williams, 46, of Tulsa, knowingly failed to register as a sex offender after being convicted as such under Federal Law. The U.S. Marshals Service and Tulsa County Sherriff’s Office are the investigative agencies.
Sean Bonham Windsor. Felon in Possession of Firearms and Ammunition; Fugitive From Justice in Possession of Firearms and Ammunition. Windsor, 39, is charged with being a felon and a fugitive from justice in possession of a Ruger 5.7x28 caliber semi-automatic pistol, a Smith and Wesson .40 caliber semi-automatic pistol, and various kinds of ammunition. Windsor is a 24-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Marshals Service are the investigative agencies.
Tarence Lavell Woods. Felon in Possession of Firearm and Ammunition; Illegal Possession of a Machine Gun; Maintaining a Drug-Involved Premises; Possession of a Machine Gun in Furtherance of a Drug Trafficking Crime; Possession of a Firearm in Furtherance of a Drug Trafficking Crime (superseding). Woods, 22, of Tulsa, is being charged with being a felon in possession of a Glock, 9x19mm caliber pistol and ammunition. He is also being charged with maintaining a space in order to use, manufacture, and distribute cocaine as well as use and distribute marijuana. He is further being charged for using his firearm in furtherance of a drug trafficking crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Ex-Financial Advisor Sentenced to More Than 3 Years in Prison for Defrauding Professional Athlete Clients in Ticket Company ScamRead the Press Release
SANTA ANA, California – A former Orange County financial advisor and lawyer was sentenced today to 37 months in federal prison for stealing millions of dollars of his pro athlete clients’ money and investing it in a cash-losing ticket company on which he was a board member.
Ash Narayan, 55, of Irvine, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $18,811,231 in restitution. Narayan pleaded guilty in June 2019 to a two-count information charging him with wire fraud and subscribing to a false tax return.
Narayan worked as an investment advisor at RGT Capital Management Ltd.’s Irvine office and also was a licensed California lawyer until his disbarment earlier this year. At RGT, Narayan’s clients were high-net-worth individuals who were current and former professional athletes.
In addition to his job at RGT, Narayan served on the board of directors for The Ticket Reserve Inc. (TTR), an Illinois-based technology company that allowed customers to buy an option on a ticket to future sporting events, such as playoff games, which they could cash in if their team made the postseason. TTR never was profitable and carried millions of dollars in debt.
From December 2009 to early 2016, Narayan advised his clients to invest in TTR, but failed to disclose to them his role in the company as well as the fact that it was a high-risk investment and an unprofitable business. At times, Narayan directed RGT employees to forge his clients’ signatures on wire authorizations to direct significant amounts of his clients’ money into TTR without their knowledge or consent.
Narayan left RGT in 2016 and The Ticket Reserve was put into receivership later that year.
Narayan also knowingly subscribed to a materially false federal income tax return when he reported that his total income for 2012 was $543,072, when in truth it was $1,138,072.
In a related case brought by the Securities and Exchange Commission in federal court in Dallas, Narayan was ordered to repay $1,498,000 in ill-gotten gains as well as a $350,000 civil penalty.
This matter was investigated by the FBI and IRS Criminal Investigation.
This case was prosecuted by Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office.
Eldon Man Sentenced to Thirty Years in Prison for Transportation of Child PornographyRead the Press Release
DES MOINES, IA – On November 5, 2020, United States District Court Judge Rebecca Goodgame Ebinger sentenced Troy Wayne Davis, age 57, formerly of Eldon, Iowa, to 360 months in prison for Transportation of Child Pornography, announced United States Attorney Marc Krickbaum. Davis was ordered to serve five years of supervised release to follow his prison term, pay $40,000 in restitution, and comply with sex offender registry requirements upon release.
The investigation began in early 2019 when law enforcement received investigative leads from the National Center for Missing and Exploited Children that images of child pornography had been uploaded on Davis’ social media accounts. Investigators executed a search warrant at Davis’ Eldon residence in August 2019. Police seized Davis’ computers and phones which contained thousands of videos and images of child pornography. The investigation showed that Davis sent and received videos of child pornography to other persons, solicited minor boys online to send him nude photos, and solicited minors for sex via the internet. In 1998, Davis was convicted in the Iowa District Court for Wapello County on two instances of Lascivious Acts with a Child.
This case was investigated by the Iowa Department of Criminal Investigation’s Internet Crimes Against Children Task Force and the FBI Child Exploitation Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Eight Alleged Associates of Drug Trafficking Organization Indicted and ArrestedRead the Press Release
LAS VEGAS, Nev. – Eight alleged associates of the Pomona Sur Lokotes drug trafficking organization have been arrested for their alleged roles in trafficking large quantities of methamphetamine from California and Mexico to Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
A federal grand jury returned a 22-count indictment charging Luis Arellano, aka “Lewis Arellano” aka “Laughter,” 29; Jacqueline Martinez, 29; Ivan Salazar, aka “Evil,” 38; Domingo Montes Jr., aka “JR,” 34; Amelio Che Medina, 43; Anna Barrios, 32; and Victor Manuel Rodriguez, aka “Smokey,” 37, all of Las Vegas, for conspiracy to distribute methamphetamine, distribution of methamphetamine, and felon in possession of a firearm. A federal grand jury also returned a seven-count indictment charging Sergio Rios, aka “Gremlin,” 36, of Las Vegas, for distribution of methamphetamine.
According to court documents, law enforcement began investigating Arellano and other associates of the Pomona Sur Lokotes drug trafficking organization in December 2019. As alleged, Arellano and Martinez traveled to California to pick up methamphetamine and cocaine that they — along with the other defendants — then distributed in Las Vegas. Between September 13 and November 4, law enforcement arrested the defendants and, during the course of the operation, law enforcement seized: over 12 kilograms (approximately 26 pounds) of methamphetamine, 1.5 kilograms of cocaine, and nine firearms.
In addition to drug charges, Salazar and Medina are each charged with one count of felon in possession of a firearm. Salazar is alleged to have possessed a semi-automatic rifle after previously been convicted of felonies in Nevada. Medina is alleged to have possessed a 9mm handgun after previously been convicted of felonies in Utah. Under federal law, felony convictions prohibit an individual from possessing a firearm.
“This case exemplifies the targeted, impactful prosecutions that our office has been prioritizing to drive down crime rates and dismantle drug trafficking organizations,” said U.S. Attorney Trutanich. “We look forward to continuing to work closely with our law enforcement partners, including the Las Vegas Metropolitan Police Department and the FBI, to increase public safety and get illegal drugs out of our communities.”
“Today's announcement is a direct result of the hard work and dedication shared between local and federal authorities in our efforts to combat drug trafficking organizations who distribute methamphetamine and cocaine in our communities,” said Special Agent in Charge Rouse. “The FBI’s Safe Streets Gang Task Force will continue to pursue investigations into individuals and groups who have furthered the scourge of drugs in our neighborhoods."
If convicted, each defendant faces a statutory maximum sentence of lifetime imprisonment and a $10,000,000 fine.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Safe Streets Gang Task Force and the Las Vegas Metropolitan Police Department.
The investigation is part 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.
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