Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 14 September 2020
United States Attorney McSwain Announces Violent Crime and Gun Charges in Two Philadelphia Cases Mishandled by the District Attorney’s OfficeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Khalif Tuggle, 28, and John Allen Kane, 53, both of Philadelphia, PA, were arrested and charged by federal Indictment after their local cases were mishandled by the District Attorney’s Office. In a press conference outside the federal courthouse, U.S. Attorney McSwain discussed the charges against Tuggle and Kane in the context of efforts by his Office to fight the tidal wave of violent crime that has engulfed Philadelphia in 2020.
Tuggle has been charged in a three-count Indictment with carjacking, use of a firearm in furtherance of a crime of violence, and murder in the course of using a firearm, all stemming from his alleged robbery, carjacking, and brutal murder of Thomas Petersen on January 24, 2017. Tuggle allegedly fired a shot into Mr. Petersen’s chest, dragged him out of the car, threw him on the road, robbed him, and left him for dead while Mr. Petersen was screaming in pain. Tuggle fled the scene in Mr. Petersen’s car, and Mr. Petersen died at Temple University Hospital after two Philadelphia Police Officers rushed him there from the crime scene.
Kane has been charged in a one-count Indictment with possession of a firearm by a convicted felon on January 17, 2018. Kane allegedly possessed this firearm while on probation for committing his second homicide in Philadelphia.
U.S. Attorney McSwain explained thatthese cases are prime examples of how local criminal justice policies benefit violent criminals and harm crime victims. In the Tuggle case, the District Attorney’s Office agreed not to prosecute the defendant for either first or second degree murder in exchange for information on Tuggle’s accomplice that never materialized – thus eliminating the possibility that Tuggle would serve a life sentence for killing Petersen. Under his current sentence, Tuggle would be eligible for parole in approximately only ten years. If convicted of the federal charges, he faces the possibility of life imprisonment.
In the Kane case, the Philadelphia Police recovered a firearm in the defendant’s possession after a traffic stop and placed him under arrest. As a convicted felon, Kane was prohibited from possessing any firearms. But he was not just any convicted felon – at the time of the traffic stop, he was on probation for committing his second homicide in Philadelphia. But the District Attorney’s Office saw fit to voluntarily dismiss the charges against Kane on a technicality and he walked free. That is, until now: Kane has been arrested on the federal charge and is in federal custody.
“The federal cases against defendants Tuggle and Kane are the latest efforts by my Office to serve as a counterweight to the chaos in Philadelphia created by local criminal justice policies that coddle violent criminals,” said U.S. Attorney McSwain. “These policies create a culture of lawlessness; they leave criminals emboldened; and they have inevitable consequences – one of which is a murder rate in Philadelphia that is the highest it has been in nearly 15 years.”
U.S. Attorney McSwain went on to detail ten additional cases that are examples of shockingly lenient plea deals given out by the Philadelphia District Attorney’s Office where the defendant was subsequently arrested for murder.
- In October 2018, Michael Banks was arrested and charged with multiple counts, including a felony gun charge for possessing an unlicensed firearm. Banks also had prior convictions, and yet in February 2019, the Philadelphia District Attorney’s Office gave him a plea deal in which the felony gun charge was dismissed, and he received only 3-9 months of incarceration for a misdemeanor gun charge and immediately went back out on the street. Banks now stands accused of murdering a seven year-old boy in West Philadelphia last month, who was playing with a toy on his family’s porch when two groups of men began firing upon one another and shot the boy in the head.
- In November 2017, Francisco Reyes was arrested and charged with multiple drug offenses. Despite his prior convictions – which include aggravated assault, robbery, and multiple other prior drug offenses – Reyes was given a plea deal in July 2018 in which the felony drug charge was dismissed and he received probation. Only two days after he pleaded guilty and received probation, on July 5, 2018, Reyes allegedly murdered a 25 year-old man in Kensington.
- In September 2018, Jerome Martin was arrested and charged with possession of a firearm by a felon, which is a felony. He had previously been convicted of felony drug dealing and possessing drug paraphernalia. Somehow, Martin was given a plea deal in June 2019 in which he was sentenced to house arrest. While on house arrest, in August 2019, he allegedly broke into a house and murdered a 23 year-old man, who is survived by many, including his newborn baby.
- In February 2018, Keith Garner was arrested and charged with simple assault. Despite having multiple prior felony convictions, Garner was given a plea deal in March 2018 to probation. In November 2018, Garner executed four people in a West Philadelphia basement, and has been convicted of all four murders.
- In March 2017, Timothy Sherfield was arrested and charged with numerous violent crimes, including two counts of aggravated assault, two counts of robbery, burglary, possession of an unlicensed firearm, and many additional misdemeanors. In February 2018, he was given a plea deal in which the vast majority of these charges were dropped. Sherfield received a minimum sentence of less than one year. This enabled him to be out on the streets and murder a 23 year-old man in April 2019. The victim was inside a mini market at the time that he was gunned down in cold blood.
- In May 2017, Tariq Gant was arrested and charged with a variety of violent crimes, including aggravated assault and firearm offenses. But in February 2018, he was given a plea deal in which the vast majority of the charges were dropped. Gant pleaded guilty to simple assault and resisting arrest, and received probation. In September 2018, he allegedly murdered a 19 year-old young man in Germantown. The victim is survived by his mother, who in addition to losing this son, also tragically lost another son who was gunned down earlier this year.
- In October 2017, Jose Lugo was arrested and charged with felony drug offenses. Despite having previously been convicted of numerous felony drug crimes and carrying a firearm without a license, he was given a plea deal in September 2018 in which he was immediately released. Just months later, in February 2019, Lugo allegedly murdered a 24 year-old man.
- In March 2018, Byron Taylor was arrested and charged with multiple offenses, including felony possession of an unlicensed firearm. Despite his prior convictions, he was given a plea deal in May 2019 in which the felony gun charge was dismissed and he received probation. Almost immediately, in July 2019, Taylor allegedly shot and killed a 35 year-old man in Germantown.
- In January 2018, Rasheed Malcolm was arrested and charged with multiple offenses, including aggravated assault, simple assault, and recklessly endangering another person. Despite his prior felony drug distribution convictions, he was given a plea deal in which all of these charges were dropped, and he was permitted to plead guilty to the summary offense of disorderly conduct. By the end of the year, in December 2018, Malcolm allegedly murdered a 27 year-old man in the 6200 block of Market Street.
- In June 2018, Maalik Jackson-Wallace was arrested and charged with multiple offenses, including felony possession of a firearm without a license. The District Attorney’s Office then selected him to participate in its Accelerated Rehabilitative Disposition program (ARD) – a diversion program in which defendants can avoid a conviction if they comply with certain conditions. This diversion allowed Jackson-Wallace to walk away free. He was then arrested with a second illegal firearm while in the program, but the District Attorney’s Office did not move for him to be taken out of ARD at that time. In June 2019, Jackson-Wallace allegedly murdered a 26 year-old man in the Frankford section of Philadelphia.
“Convicted felons who carry firearms pose a serious risk to public safety,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “ATF will continue to aggressively pursue these investigations and strive to be ‘no better partner’ to our local, state and federal colleagues. Thanks to the diligent work of the investigators and detectives of the Philadelphia Police Department, these individuals will be brought to justice preventing another potential violent crime or death. I would like to thank the U.S. Attorney's Office for their guidance and work prosecuting these cases.”
If convicted on each count, Tuggle faces a total maximum sentence of life imprisonment, five years of supervised release, a $750,000 fine, and a $300 special assessment; Kane faces a statutory maximum term of imprisonment of 10 years, three years of supervised release, a $250,000 fine, and a $100 special assessment.
Both cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case against Tuggle is being prosecuted by Assistant United States Attorneys Joseph LaBar and Michael Miller, and the case against Kane is being prosecuted by Assistant United States Attorney Thomas Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Antitrust Agencies Co-Host the 19th Annual International Competition Network ConferenceRead the Press Release
The Department of Justice’s Antitrust Division and the Federal Trade Commission (FTC) are co-hosting the International Competition Network’s (ICN) 19th annual conference, which opens today and runs through Thursday, September 17, 2020. Assistant Attorney General Makan Delrahim and FTC Chairman Joseph J. Simons are leading the U.S. agencies’ participation in the ICN’s first virtual conference. Assistant Attorney General Delrahim and Chairman Simons will deliver opening remarks and speak on the conference’s showcase program addressing the challenges of enforcement in the digital economy.
Originally planned as an in-person event in Los Angeles in May, the multi-day conference features discussions across a range of competition enforcement and policy issues, including those that involve the digital economy, and highlights the progress of the ICN Working Groups on mergers, cartels, unilateral conduct, advocacy and agency effectiveness. ICN members and non-governmental advisors (NGAs) will participate, including leadership from antitrust agencies, as well as competition experts from international organizations and the legal, business and academic communities.
“We are proud to co-host the ICN annual conference, an important forum for our international partners in antitrust enforcement and others who are dedicated to effective competition policy,” said Assistant Attorney General Makan Delrahim. “As the economy moves to greater globalization and digitization, convergence and cooperation are more important than ever to ensuring sound antitrust enforcement.”
“The ICN’s work benefits consumers by promoting sound enforcement and policy, and by reinforcing competition’s central role in driving productivity, innovation, and economic recovery,” said FTC Chairman Joseph Simons. It is a great honor for the FTC to support the ICN’s critical work and to co-organize this year’s conference.”
The ICN was created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world. It was founded by 15 agencies including the Antitrust Division and FTC, and has grown to 140 agencies from 129 jurisdictions, supported by a wide network of NGAs from around the world.
Registration is not required. A link to view the entire conference will be provided on the conference webpage immediately before the start of the conference at 8:00 am EDT.
USA Shappert Announces Launch of V.I. Health Care Fraud Task ForceRead the Press Release
USA Shappert Announces Launch of V.I. Health Care Fraud Task Force
St. Thomas, USVI – Federal and territorial officials and law enforcement officers convened last week to take the fight against health care fraud to the next level, United States Attorney Gretchen C.F. Shappert announced today. The first meeting of the Virgin Islands Health Care Fraud Task Force was conducted on a viral platform, thereby permitting the participants to share information and develop strategies for the Territory.“We all share the same concerns about the devastating effects of health care fraud,” Shappert said. “We are committed to protecting potential victims, safeguarding taxpayer dollars, and ensuring the integrity of our health care system.”
The task force is composed of representatives from the U.S. Attorney’s Office, Centers for Medicare and Medicaid Services (CMS), Federal Bureau of Investigation (FBI), and Health and Human Services Office of Inspector General (HHS-OIG). Virgin Islands’ representatives include Julita de Leon, Coordinator of the VI Medicaid Fraud Control Unit; Gary Smith, Director of the V.I. Medicaid Program, and Aimee Griles, Senior Medicare Patrol Project Director.
The V.I. Medicaid Program received federal funds in the amount of $126 million in FY2020 and FY2021. The 2020 COVID-19 Families First legislation provided the Virgin Islands with additional federal funds totaling $2.9 million for FY2020 and $1.9 million for FY2021. “With these increased levels of funding in the territory, the task force is an important step in our efforts to increase our collaboration with the Virgin Islands Justice Department, health care agencies, and law enforcement partners,” Shappert said. “The fight against criminal and civil health care fraud is a top priority for my office, and the task force strengthens our capacity to fight health care fraud through a collaborative approach.”
To report suspected health care fraud, please contact:
HHS-OIG: 1-800-HHS-TIPS (1-800-447-8477); [email protected]
FBI: (340) 777-3363; tips.fbi.gov
V.I. Justice Department (340) 774-5666
U.S. Attorney’s Office (340) 774-5757U.S. Attorney J. Douglas Overbey Announces $350,000 Award to Address Children and Youth Experiencing Domestic and Sexual Assault in TennesseeRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey of the Eastern District of Tennessee announced today that YWCA Knoxville and the Tennessee Valley received $350,000 in Department of Justice grants to address and assist children and youth experiencing domestic and dating violence, sexual assault, and/or stalking.
This consolidated grant program supports projects that create education programming and community organization through encouragement of men and boys to work as allies with women and girls to prevent domestic violence and sexual assault within our communities. The grant is available and awarded by the Office on Violence Against Women.
"Raising awareness and promoting a culture of respect and nonviolence among children and youth at an early age are important steps in preventing future violent behavior. Violence prevention and awareness programs work toward providing our community the ability to access resources and services available to meet this challenge. As we continue to respond to the Coronavirus, and in the wake of economic insecurity, it is vital to increase access to services across all ages for the benefit of our community’s future. Our office is committed to fostering the development of safer societies for all our citizens," said U.S. Attorney Overbey.
The Consolidated Grant Program to address children and youth experiencing domestic violence and sexual assault collaborates with its partners, Knox County Circuit Courts; Knox County District Attorney’s Office; Knoxville Police Department; Knoxville Family Justice Center; and Knox County Sheriff’s Office and Legal Aid of East Tennessee. Through this supplemental award, the project will: 1) develop and implement programming to recruit and train men and boys to serve as role models and/or mentors to address and prevent domestic violence, dating violence, sexual assault, stalking, and sex trafficking; 2) establish a multi-disciplinary team (MDT) to oversee and guide project activities; 3) complete a community needs assessment and develop a strategic plan that outlines the implementation phase of the project; 4) provide crisis intervention at all events to respond to disclosures of victimization and make appropriate referrals; and 5) cross train project staff, partner organizations/programs, and MDT members to expand their knowledge and skills to better understand each other’s role.
The Consolidated Grant Program provides opportunities for communities to create coordinated responses to increase collaboration among nonprofit victim service providers, community service organizations. This program focuses on schools, and local government agencies to enhance prevention, intervention, and response efforts in addressing children, youth and young adults impacted by sexual assault, domestic and dating violence, stalking and sex trafficking.
###
U.S. Attorney Davis Announces Nearly $1 Million Award to Improve School Safety in IdahoRead the Press Release
BOISE – U.S. Attorney Bart M. Davis announced that Genesee Joint Schools, Minidoka School District 331, Highland Joint School District 305, and Joint School District 391 received a combined $923,990 from the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) School Violence Prevention Program (SVPP). Nationally, the COPS Office SVPP awarded nearly $50 million in school safety funding. SVPP provides up to 75 percent funding for school safety measures in and around primary and secondary schools and school grounds.
“Idaho’s students must be assured their schools have the resources to keep them safe,” said U.S. Attorney Davis. “The Department of Justice and my office are committed to improving school safety for our children. I am confident this funding will help strengthen these Idaho school districts for years to come.”
“With the new school year underway, the safety of our nation’s students remains paramount,” said COPS Office Director Phil Keith. “Although this school year may look different at the start, now is the ideal time to make preparations to enhance school safety for when all of our children are back in the classroom.”
The Students, Teachers, and Officers Preventing School Violence Act of 2018 (STOP School Violence Act of 2018) gave the COPS Office authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs. The four Idaho awards announced today can be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; metal detectors, locks, lighting, and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security. The full list of SVPP awards can be found here: cops.usdoj.gov/pdf/2020AwardDocs/svpp/Award_List.pdf.
In addition to the school safety grants announced today, the COPS Office School Safety Working Group, which is composed of representatives from eight national law enforcement organizations, has identified ten essential actions that can be taken by schools, school districts, and law enforcement agencies to help prevent critical incidents involving the loss of life or injuries in our nation's schools and to respond rapidly and effectively when incidents do occur. The Ten Essential Actions to Improve School Safety are applicable to school shootings as well as to other areas of school safety, including natural disasters and traumatic events such as student suicide. Adopting policies and practices based on the recommendations in this publication can help make school communities safer and save lives.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance.
# # #
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.
Toledo pair indicted for possession of stolen motor coach vehicles, fraud and operating a chop shopRead the Press Release
U.S. Attorney Justin Herdman announced that a federal grand jury sitting in Cleveland has returned an eleven-count indictment charging Derrick Lamont Jones, 56, and Kelly Marie Thomas, 50, both of Toledo, with conspiracy to transport stolen vehicles, possession of stolen vehicles, operating a chop shop, violation Federal Motor Carrier Safety Administration (FMCSA) regulations and conspiracy to commit wire fraud.
According to the indictment, from 2003 to 2019, the defendants are accused of stealing charter buses, altering and disguising them to avoid law enforcement detection and organizing and marketing for-profit trips, without incurring the cost of legitimately obtaining charter buses. The defendants allegedly purported to own several motorcoach companies that offered and provided charter transportation to passengers in Ohio, including Destiny Tours, Kelly Tours, Marie’s Tour’s and Travel, Elite Tours, and GT Tours. At no point were the defendant’s companies ever incorporated under the laws of any state, including Ohio and at no point in time did any of these companies receive FMCSA operating authority or complete the FMCSA registration process, states the indictment.
The defendants allegedly defaced, disguised, and removed the identity of the stolen motorcoach buses by painting over previous bus company logos and markings. After having stolen and defaced the buses, the defendants allegedly advertised charter passenger transportation services on the internet, social media, and in local newspapers. The defendants are accused of contracting with a Toledo-based church group to provide charter bus service from Toledo to New York. This trip never took place, and money collected by the defendants prior to the trip was never returned, according to the indictment.
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, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, 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 the indictment was conducted by the U.S. Department of Transportation - Office of Inspector General, Midwestern Region, with significant assistance by the U.S. Department of Transportation – Federal Motor Carrier Safety Administration, Ohio Division; the Ohio State Highway Patrol; Toledo Police Department; and the Michigan State Police. The case is being prosecuted by Assistant United States Attorney Ashley A. Futrell.
Three Utah School Districts Awarded Cops Grant Funding to Improve School SafetyRead the Press Release
SALT LAKE CITY – U.S. Attorney John W. Huber announced today that three Utah school districts are receiving funding through the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) School Violence Prevention Program (SVPP). SVPP provides up to 75 percent funding for school safety measures in and around primary and secondary schools and school grounds.
Provo and Nebo school districts are each receiving $500,000 in program grant funding. The Ogden School District is receiving $393,332. Nationally, the COPS Office awarded nearly $50 million in school safety funding.
“With the new school year underway, the safety of our nation’s students remains paramount,” said COPS Office Director Phil Keith. “Although this school year may look different at the start, now is the ideal time to make preparations to enhance school safety for when all of our children are back in the classroom.”
“This funding will support efforts in these three school districts to significantly improve school safety for children in their communities,” U.S. Attorney John W. Huber. “The school districts can use their funding for a variety of projects that address specific local needs.”
The Students, Teachers, and Officers Preventing School Violence Act of 2018 (STOP School Violence Act of 2018) gave the COPS Office authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs.
The three awards can be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; metal detectors, locks, lighting, and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security. The full list of SVPP awards can be found here: https://cops.usdoj.gov/pdf/2020AwardDocs/svpp/Award_List.pdf.
In addition to the school safety grants, the COPS Office School Safety Working Group, which is composed of representatives from eight national law enforcement organizations, has identified 10 essential actions that can be taken by schools, school districts, and law enforcement agencies to help prevent critical incidents involving the loss of life or injuries in our nation's schools and to respond rapidly and effectively when incidents do occur. The Ten Essential Actions to Improve School Safety are applicable to school shootings as well as to other areas of school safety, including natural disasters and traumatic events such as student suicide. Adopting policies and practices based on the recommendations in this publication can help make school communities safer and save lives.
*******
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance.
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.
Thornton Man Sentenced to 160 Months in Prison for Child Pornography OffensesRead the Press Release
DAVENPORT, Iowa—On September 11, 2020, United States District Court Chief Judge John A. Jarvey sentenced Hunter Morgan Uhde, age 24, of Thornton, Iowa, to 160 months in prison for Receiving and Distributing Child Pornography, announced United States Attorney Marc Krickbaum. Uhde was ordered to serve five years of supervised release to follow his prison term, pay $100 to the Crime Victims’ Fund and $27,000 in restitution, and comply with sex offender registry requirements upon release.
On February 14, 2020, Uhde pleaded guilty to Count One of a two-count Indictment. The investigation began in February 2019 with a tip from the Homeland Security Cyber Crimes Center based on activity through the “Kik” app in relation to a username associated with Uhde between November and December 2018. A search warrant was conducted on Uhde’s residence in Coralville, Iowa. Agents found multiple electronic devices containing child pornography.
Uhde admitted to possessing child pornography on his phone and participating in illicit activities involving child pornography. After forensic examination of Uhde’s devices, Uhde was found to have possessed 1,400 images and two videos of child pornography.
This matter was investigated by United States Department for Homeland Security and the National Center for Missing and Exploited Children (NCMEC). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
The U.S. Reaches $1.5 Billion Settlement with Daimler AG over Emissions Cheating in Mercedes-Benz Diesel VehiclesRead the Press Release
The U.S. Department of Justice, Environmental Protection Agency (EPA), and California Air Resources Board (CARB) announced today a proposed settlement with German automaker Daimler AG and its American subsidiary Mercedes-Benz USA, LLC (collectively, “Daimler”) resolving alleged violations of the Clean Air Act and California law associated with emissions cheating.
Under the proposed settlement, lodged with the U.S. District Court for the District of Columbia, Daimler will recall and repair the emissions systems in Mercedes-Benz diesel vehicles sold in the United States between 2009 and 2016 and pay $875,000,000 in civil penalties and roughly $70,300,000 in other penalties. The company will also extend the warranty period for certain parts in the repaired vehicles, perform projects to mitigate excess ozone-creating nitrogen oxides (NOx) emitted from the vehicles, and implement new internal audit procedures designed to prevent future emissions cheating. The recall program and federal mitigation project are expected to cost the company about $436,000,000. The company will pay another $110,000,000 to fund mitigation projects in California. Taken together, the settlement is valued at about $1.5 billion.
Vehicle manufacturers are required by the Clean Air Act and federal regulations to apply for and receive a certificate of conformity from EPA before selling a new model year vehicle in the United States. As part of the application process, manufacturers must demonstrate through testing that a vehicle meets applicable emissions standards and disclose to EPA all auxiliary emission control devices (AECDs) and any defeat devices installed in the vehicle.
The settlement addresses allegations made in separate civil complaints filed by the United States and CARB today in the District of Columbia that, from 2009 to 2016, Daimler manufactured, imported, and sold more than 250,000 diesel Sprinter vans and passenger cars with undisclosed AECDs and defeat devices programmed into the vehicles’ complex emissions control software. These devices cause the vehicles to produce compliant results during emissions testing. But when not running a test, the vehicles’ emissions controls perform differently, and less effectively, resulting in an increase in NOx emissions above compliant levels.
NOx emissions from vehicles play a key role in ground-level ozone production and negatively impact human health. Indeed, studies have indicated that breathing ozone may cause damage to lung tissue in children and adults, and it may worsen conditions like asthma, emphysema, and bronchitis. The pollutant has also been linked to cardiac disease.
“By requiring Daimler to pay a steep penalty, fix its vehicles free of charge, and offset the pollution they caused, today’s settlement again demonstrates our commitment to enforcing our nation’s environmental laws and protecting Americans from air pollution,” said Deputy Attorney General Jeffrey Rosen.
“The message we are sending today is clear. We will enforce the law. We will protect the environment and public health. And if you try to cheat the system and mislead the public, you will be caught,” said EPA Administrator Andrew Wheeler. “Those that violate public trust in pursuit of profits will forfeit both.”
EPA and CARB discovered the defeat devices through testing conducted in the wake of the Volkswagen scandal at EPA’s National Vehicle and Fuel Emissions Laboratory in Michigan and at CARB’s test laboratory in El Monte, California.
The settlement requires Daimler to implement a recall and repair program to remove all defeat devices from the affected vehicles at no cost to consumers and bring the vehicles into compliance with applicable emissions standards under the Clean Air Act. The repair will consist of a software update and replacement of select hardware, which differs across models and model years.
Daimler must repair at least 85 percent of the affected passenger cars within two years and at least 85 percent of the affected vans within three years. The company must also offer an extended warranty covering all updated software and hardware, and it must test repaired vehicles each year for the next five years to ensure the vehicles continue to meet emissions standards over time. Daimler will face stiff penalties if any category of updated vehicles fails to meet applicable emissions standards or if it fails to meet the 85 percent recall rate for passenger cars or vans.
The settlement further requires Daimler to implement systemic corporate reforms to detect and try to eliminate violations in the future. This includes conducting significant testing on new diesel and gasoline motor vehicles using a portable emissions measurement system to assess compliance under real-world conditions, installing a robust whistleblower program, enhancing annual AECD and defeat device training for its employees, and performing internal audits subject to review and critique by an external compliance consultant.
Daimler must also replace 15 old locomotive engines with new, less-polluting engines to offset excess NOx emitted from its vehicles.
The proposed settlement is subject to a 30-day public comment period and court review and approval. Copies of the consent decree lodged with the court are available here. Further information about the settlement is available on EPA’s website at: https://www.epa.gov/enforcement/daimler-ag-and-mercedes-benz-usa-llc-clean-air-act-civil-settlement.
Texas family sentenced for scheme to obtain multiple Masters Tournament tickets for resaleRead the Press Release
AUGUSTA, Ga: The four members of a Texas family who crafted an elaborate scheme to fraudulently obtain multiple Masters Tournament tickets have been sentenced, with the ringleader getting federal prison time.
Stephen Michael Freeman, 42, of Athens, Ga., was sentenced to 28 months in prison, followed by three years of supervised release, by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to Conspiracy to Commit Wire Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Freeman’s parents, Steven Lee Freeman, 67, and Diane Freeman, 66, of Helotes, Texas, and sister, Christine Oliverson, 37, of San Antonio, Texas, were each sentenced to three years of probation after also pleading guilty to Conspiracy to Commit Wire Fraud.
As part of their plea agreements, Stephen Michael Freeman paid community restitution of $157,493.70, while Steven Lee Freeman and Diane Freeman agreed to pay community restitution of $59,000 each. Judge Hall directed that $50,000 of the funds from the restitution be directed to First Tee of Augusta, with the remainder to the Community Foundation of the CSRA.
“Long before COVID-19 temporarily prevented patrons from visiting the Masters Tournament, these profiteering con artists managed to steal hundreds of tickets from the Augusta National’s generous ticket lottery and sell them for enormous profits,” said U.S. Attorney Christine. “In the end, their greed-fueled scheme unraveled thanks to an alert Augusta National staff member and excellent investigative work from the FBI.”
“The FBI will go to great lengths to disrupt any scheme that would circumvent a fair process by denying our citizens the right to compete for tickets to any public or private event,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This scheme was designed to profit off legitimate citizens’ fair chance to obtain tickets to a prestigious golf tournament, and they must pay the price for their greed.”
As admitted in court documents and testimony, Stephen Michael Freeman created the scheme in which he purchased a bulk mailing list and used those individuals’ identities without their knowledge to create multiple fraudulent accounts that he then entered in the Augusta National Golf Club’s online ticket application system as far back as 2013. He then recruited his parents and sister into assisting in the conspiracy.
When any fraudulently created applications received notice of ticket awards via the email addresses provided for them, Stephen Michael Freeman or others acting at his direction would create fake identification documents including driver’s licenses, utility bills and credit card statements to persuade the Augusta National to change the winner’s mailing address to one that was under control of the conspiracy. An Augusta National employee detected the scam by noticing similarities in some of the applications for address changes.
During an approximate three-year period before the conspiracy was detected, the defendants received the tickets via U.S. Mail and would then resell them at a substantial profit. The payment of community restitution, negotiated through the Asset Recovery Unit of the U.S. Attorney’s Office, recognizes that the defendants are returning the proceeds of their crime. The funds from community restitution are dispersed under federal guidelines to qualifying non-profit organizations.
The case was investigated by the FBI, and was prosecuted for the United States by Assistant U.S. Attorney Tara Lyons and AUSA Xavier A. Cunningham, Section Chief of the Asset Forfeiture Recovery Unit of the U.S. Attorney’s Office.
Texas Woman Admits Role in Conspiracy to Distribute HeroinRead the Press Release
CAMDEN, N.J. – A Texas woman today admitted her role in a conspiracy to distribute heroin, U.S. Attorney Craig Carpenito announced.
Cristina Godinez, 36, of San Antonio, Texas, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.
Alba Lilia Diaz, 43, of Chicago, Illinois, a co-defendant, pleaded guilty July 28, 2020, to an information charging her with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.
According to documents filed in this case and statements made in court:
On July 22, 2019, Diaz travelled to New Jersey to conduct a heroin sale. She provided a sample of heroin and agreed to deliver 15 kilograms of heroin several days later. On July 25, 2019, Diaz and Godinez drove to New Jersey from Chicago with the heroin in their vehicle. When they arrived in New Jersey, Godinez negotiated the sale while Diaz waited with the drugs in a hotel room. Once a price was agreed to, Diaz brought the heroin to the buyer’s car. Special agents from the Department of Homeland Security, Homeland Security Investigations (HSI) arrested the defendants and seized the drugs.
The conspiracy counts to which the defendants pleaded guilty carry a mandatory minimum term of 10 years in prison, a maximum of life in prison and a fine of $10 million, or twice the gross gain or loss caused by the offense. Sentencing for Godinez is scheduled for Jan. 19, 2021. Diaz is scheduled to be sentenced on Nov. 20, 2020.
U.S. Attorney Carpenito credited special agents of HSI, under the direction of Special Agent in Charge Jason Molina, with the investigation leading to the guilty pleas. He also thanked the Drug Enforcement Administration, the New Jersey State Police, the Camden County Prosecutor’s Office, and the Gloucester County HIDTA Task Force for their assistance with the case.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Statement by U.S. Attorney Andrew E. Lelling on the Passing of Massachusetts Supreme Judicial Court Chief Justice Ralph D. GantsRead the Press Release
“We are saddened by the passing of Chief Justice Gants. He was an outstanding jurist and a good man. He will be missed.”
Sampson Sentenced to 24 Months in Federal Prison for Fraud Scheme with $250,000 LossRead the Press Release
ST. GEORGE, UT – A St. George man will serve 24 months in federal prison after pleading guilty to wire fraud and money laundering in connection with a financial fraud scheme that took advantage of the trust of a couple who were members of a church congregation he attended. The sentence includes an enhancement for causing substantial hardship to the victim.
U.S. District Judge David Nuffer, who imposed the sentence Thursday, also ordered Gregory Moats Sampson, age 46, to pay $250,000 in restitution to the couple and to serve 36 months of supervised release when he finishes the prison sentence.
“Affinity fraud continues to hurt Utahns. Scammers will use any social connection available to gain your trust and take your money,” said Chris Parker, Executive Director of the Utah Department of Commerce. “We are grateful to the U.S. Attorney’s Office for the cooperative effort with our Division of Securities.”
“Many of our federal fraud prosecutions focus on losses in the millions. With this case, Utah fraudsters should take note of the stiff penalties that await them in smaller cases, as well. There is no sweet spot in fraud loss where schemers can fly under the radar and get away with it,” U.S. Attorney John W. Huber said today. “Once again, we remind Utah investors to beware of the risks associated with big promises from purported friends and neighbors.”
According to documents filed in court by federal prosecutors and a plea agreement reached in the case, Sampson met the victims, identified as J.S. and K.S., around 2012 when he was their real estate agent. J.S. had $250,000 to invest after selling a home in Australia. Sampson, according to the court documents, told them he had invested funds for others in the past and he could help them invest the $250,000.
J.S. and K.S. were not sophisticated investors and believed they could trust Sampson based on other relationships they had with them. He told them that by investing with him, they could realize a return of $1 million in 8 to 10 years and that they would receive stock certifications in a company. He told them that since they were friends, he would not charge them for their investment.
The victims trusted Sampson and in February 2014, they wrote him a check for $250,000 to Sampson’s business account as an investment for retirement.
Sampson spent the money for his own personal use rather than investing it as promised. He used $98,320.19 to pay off a personal loan; transferred $82,000 to a company owned by his brother, and transferred $20,000 to a company he owned that had nothing to do with an investment. In fact, Sampson used all of the $250,000 of the victims’ investment within one month, federal prosecutors said.
When the victims sought documentation showing a portfolio of investments, Sampson did not provide any. However, he consistently told them their investment was performing well. According to documents filed in court, when J.S. and K.S. eventually confronted Sampson and demanded documentation or their money back, he told them “And you know who gets screwed in the deal? You do…and it’s not to say that I’m trying to protect my own ass because I’m not going anywhere, I promise you, if I need to disappear, I would have already been gone. I’ve got enough money that I can disappear if I need to…”
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Investigators with the Utah Division of Securities investigated the case.
Renton, Washington, woman pleads guilty admitting she was ‘straw buyer’ for scheme that trafficked guns to violent street gangsRead the Press Release
Seattle – A 41-year-old Renton, Washington, woman pleaded guilty today in U.S. District Court in Seattle to three federal felonies related to a scheme to purchase firearms and illegally provide them to other people, announced U.S. Attorney Brian T. Moran. SHANNON McCALL pleaded guilty to conspiracy to violate the Gun Control Act, making a false statement to a government agent, and making a false statement in connection with the acquisition of a firearm. Sentencing before U.S. District Judge James L. Robart is scheduled for December 7, 2020.
According to records filed in the case, between August 2017 and January 2019, McCALL admitted that she illegally purchased six firearms from Ben’s Loan Inc., a federally licensed firearm dealer in Renton. On purchase paperwork, McCALL lied and said she was the ultimate purchaser of the firearms, when in fact she purchased the firearms for others. Both McCALL and her son were involved in the scheme. In court filings in his case, prosecutors note that her son modified some of the firearms to be automatic weapons and provided firearms to members of violent street gangs, one of whom had just been released from prison. McCALL told investigators that she did not know how the firearms were used after she purchased them for her son. McCALL purchased a firearm for another person, in her name, in exchange for a $200.00 payment.
When McCALL was questioned by agents about her firearms purchases, she initially lied and said the guns were being stored by “Uncle James”–a person she now admits does not exist.
Conspiracy to violate the Gun Control Act and making a false statement to a government agent are each punishable by up to five years in prison. Making a false statement in connection with the acquisition of a firearm is punishable by up to ten years in prison.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. Project Guardian ensures that federal resources are directed at the criminals posing the greatest threat to our communities. More information about Project Guardian is here.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Jessica Manca.
Registered Nurse Sentenced for Morphine TamperingRead the Press Release
BOSTON – A Haverhill nurse was sentenced in federal court in Boston today for tampering with patients’ morphine.
Brianna Duffy, 32, was sentenced by U.S. District Court Judge William G. Young to 60 months in prison and three years of supervised release. In July 2019, Duffy pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by fraud or deception.
On March 17 and 18, 2019, while working as a registered nurse at Hunt Nursing and Rehab in Danvers, Duffy tampered with morphine sulfate prescribed to an 89-year old hospice patient. In an attempt to avoid detection, she replaced the extracted medication with another liquid, diluting the morphine to just 26% of the prescribed concentration. The hospice patient received the diluted morphine and suffered unnecessary pain.
From December 2016 until July 2017, while working as a registered nurse at Maplewood Care and Rehabilitation Center in Amesbury, Duffy diverted morphine from two bottles that were prescribed to a 68-year old patient. Duffy subsequently diluted the remaining morphine with another liquid, leaving only 1.2%-2.5% of the declared concentration of morphine. Duffy tested positive for morphine on July 18, 2017.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office on Investigation; and Acting Commissioner Margret Cooke of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorneys Elysa Wan and Patrick Callahan of Lelling’s Health Care Fraud Unit prosecuted the case.
Rapid City Man Sentenced for Wire Fraud and Theft of Government PropertyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of 2 counts of Wire Fraud and 1 count of Theft of Government Property was sentenced by Judge Jeffrey L. Viken, U.S. District Court.
Robert Rodney Bland, age 52, was sentenced on September 4, 2020, to 12 months in federal prison, and was ordered to pay a $300 special assessment to the Federal Crime Victims Fund and $75,000 in restitution to the General Services Administration (GSA).
Between January 2010 and May 2018, Bland, while sole owner and operator of Motive Magic Mobile Windshield Repair, fraudulently billed GSA for hundreds of rock chip repairs he did not perform on dozens of vehicles leased to various federal agencies. On 1 vehicle, Bland claimed to have repaired 71 rock chips, but in reality only completed 2 repairs. On another vehicle, Bland claimed to have repaired 44 rock chips, but in actuality repaired none. The majority of the time, the agency which leased the GSA vehicle was unaware that the claimed repair had been billed to GSA because Bland would not notify the agency representative or provide invoices to the agency before or after billing for a claimed repair. In total, Bland fraudulently billed and was paid $75,000 by GSA for work he had not performed. Bland used the fraudulent proceeds to purchase and/or pay for a pontoon boat, boat trailer, Harley Davidson motorcycle, 5th wheel camper, and a van, all for his personal use. Each of these vehicles were seized and forfeited to the United States.
"GSA relies on vendors across the United States to maintain its large fleet of government vehicles. The judgment in this case proves that GSA OIG, along with our investigative partners, will pursue vendors who defraud the Government and take advantage of the trust that is placed in them,” said Special Agent in Charge Jamie Willemin, General Services Administration, Office of Inspector General.
The investigation was conducted by the General Services Administration - Office of Inspector General, the Department of Health and Human Services -Office of Inspector General, and the Department of Defense - Office of Inspector General. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Bland was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Project Safe Childhood: Princeton Woman Pleads Guilty to Conspiracy to Distribute Child PornographyRead the Press Release
BLUEFIELD, W.Va. – A Princeton woman pled guilty to conspiring with another person to distribute child pornography, announced United States Attorney Mike Stuart. Elizabeth Kaye Haway, 43, pled guilty to conspiracy to distribute child pornography.
“Protecting our children is my highest priority,” said United States Attorney Mike Stuart. “My office takes all Project Safe Childhood cases very seriously and prosecutes them to the fullest extent possible. That being said, even among those cases, this one stands out for the considerable degree of lifelong physical and mental trauma that Haway has inflicted on this young victim.”
Haway admitted that she began talking with codefendant Randall Peggs, of Wheeling, on Facebook in November 2018. Over the course of several months, Haway and Peggs conspired to distribute child pornography of Victim 1, a 5-year-old female minor child. The majority of their communications occurred on Facebook Messenger and conversations focused on Haway’s desires to touch and sexually violate Victim 1 while recording it to send to Peggs. Peggs encouraged Haway to record and send him nude videos of Victim 1 and told her that he would watch anything she sent him. Ultimately, Haway recorded a video of child pornography depicting a nude Victim 1 and sent the video to Peggs twice via Facebook in February 2019.
Haway faces a mandatory minimum of five years and up to 20 years in prison when sentenced on December 14, 2020. Haway currently is serving a state prison sentence for first degree sexual assault, sexual abuse and incest involving the same minor female child. Peggs previously pled guilty on August 3, 2020 to a federal child pornography charge arising out of this incident. His sentencing is scheduled for November 9, 2020.
This case was investigated by the Mercer County Sheriff’s Department, the Federal Bureau of Investigation (FBI) and the FBI’s Violent Crimes Against Children Task Force. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:19-cr-00304.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Project Safe Childhood: Huntington Man Pleads Guilty to Child Pornography OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty to a child pornography offense, announced United States Attorney Mike Stuart. Trent S. Davis, 29, pled guilty to possession of child pornography involving minors.
“Davis planned his deviant acts,” said United States Attorney Mike Stuart. “He believed he was communicating with the parent of young girls. It is wrong on so many levels to think that is okay. He went further to make arrangements to meet the minors. The investigation also uncovered images and videos of younger children on his cell phone and computer that are too appalling to imagine.”
Davis admitted that on April 27, 2020, he arranged with a person he believed to be the parent to two minor females, ages 12 and 14, to travel from his job in Eleanor, West Virginia to Ashland, Kentucky, in order to engage in sexual activity with both minor girls. On the way to the meeting location, Davis stopped to purchase condoms to use during the sexual activity. Davis was arrested when he arrived at the meeting location in Ashland. A subsequent search of his cell phone revealed numerous images and videos depicting the sexual exploitation of minors, including videos depicting the sexual abuse of toddlers and images and videos depicting sadistic conduct. A search of Davis’ residence located additional computer equipment that also contained child sexual abuse materials.
Davis faces up to 20 years in prison when sentenced on December 14, 2020. If convicted he will be required to register as a sex offender.
The Ashland (Kentucky) Police Department and the FBI Child Exploitation and Human Trafficking Task Force conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald and law student intern Makeia Jonese are handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00072.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Parkersburg Man Pleads Guilty to Escape ChargeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pled guilty to an escape charge, announced United States Attorney Mike Stuart. Sean Anthony Nalle, 35, pled guilty to walking away from a halfway house earlier this year.
“Bad idea. Nalle was about a month away from his release. Now he faces up to five years in prison,” said United States Attorney Mike Stuart.
Nalle admitted that in February 2020, he left Dismas Charities, Inc., a Bureau of Prisons residential reentry facility, without permission and did not return. He had been confined at Dismas because of a previous federal gun crime conviction.
Nalle faces up to five years imprisonment when sentenced on November 10, 2020.
The U.S. Marshals Service conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Negar Kordestani is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00089.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Operation X-Nation Update: Pennsylvania Man Sentenced to More Than 14 Years in Federal Prison for Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – A Pennsylvania man was sentenced to federal prison for his participation in a drug trafficking organization (DTO) operating in Mercer County, announced United States Attorney Mike Stuart. Sezar Hamilton, 39, was sentenced to 174 months in prison, to be followed by three years of supervised release, for conspiring to distribute hydromorphone. Hamilton was charged as a result of a long-term, multi-state investigation known as Operation X-Nation.
“Great work by authorities in busting up this drug operation in Mercer County that was perpetuating pill dependency in our district,” said United States Attorney Mike Stuart. “Hamilton is one of six charged as a result of Operation X-Nation. He now has more than 14 years to think about his dangerous ways.”
Hamilton previously admitted at a plea hearing in June that between August 2017 and August 31, 2019, he participated in a drug trafficking organization (DTO) operating in Mercer County. During this time period Hamilton worked with other members of the DTO to acquire and distribute prescription pills in and around Mercer County. More specifically, Hamilton admitted to selling hydromorphone pills to an individual he now knows was a confidential informant. Hamilton admitted that the informant would call another member of the DTO who would direct the informant to meet Hamilton or other members of the DTO at a specific location. That location was a trailer park in Princeton where the other member owned several trailers. When the informant arrived, Hamilton sold hydromorphone on at least two separate occasions.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Southern Regional Drug and Violent Crime Task Force, which is composed of officers from the West Virginia State Police, the Mercer County Sheriff’s Department, the Princeton Police Department and the Bluefield Police Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:19-cr-00307.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Eastern District of Michigan. Operation Legend launched in Detroit on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Gregory Dulaney
“Operation Legend continues to show results,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “Positive changes can happen when law enforcement agencies from across the board work together to make our streets safer. Removing the scourge of drugs and guns from our communities is our top priority.”
Gregory Dulaney was charged on Aug. 19, 2020, with being a felon in possession of a firearm and distributing narcotics.
According to the charging document, ATF special agents conducted an undercover operation in which confidential informants purchased suspected crack cocaine from Dulaney at a motel in Detroit. On July 30, 2020, while purchasing 19 baggies of crack cocaine from Dulaney, a confidential informant also allegedly noticed a firearm in Dulaney’s pants pocket.
On Aug. 8, 2020, local police conducted a traffic stop of an individual wanted on a no-bond warrant for cocaine possession. During the stop, an officer allegedly observed the front seat passenger – later identified as Dulaney – placing something on the floorboard or under the seat. The officer asked Dulaney for identification, and Dulaney provided a false name.
During a subsequent search of Delany, he was found in possession of a crack pipe and a small amount of heroin. Officers then searched the vehicle Delaney had been in and found a loaded Hi-Point, C9, 9mm handgun under the front passenger seat. It is alleged that Delaney eventually admitted to providing the officer with a fake name because he was on parole for a previous felony conviction.
Because of a previous felony conviction punishable by more than one year in prison, Dulaney is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 592 defendants charged with federal crimes.
New Haven Man Pleads Guilty to Illegal Possession of HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYRELL COX-HENDERSON, 27, of New Haven, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on April 10, 2019, Cox-Henderson possessed a Smith & Wesson .357 caliber revolver in New Haven. Prior to that date, Cox-Henderson was convicted in state court of burglary in the third degree, possession of a weapon or a dangerous instrument in a correctional facility, and conspiracy to commit robbery in the third degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Underhill scheduled sentencing for December 7, 2020, at which time Cox-Henderson faces a maximum term of imprisonment of 10 years.
Cox-Henderson has been detained since his arrest on April 10, 2019.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Methamphetamine dealer sentenced to seven years in prisonRead the Press Release
BILLINGS — A Hardin man who admitted selling methamphetamine during an undercover buy that occurred near the Billings Public Library was sentenced today to seven years in prison and four years of supervised release, U.S. Attorney Kurt Alme said.
Charles Anthony Sloan, 32, pleaded guilty in April to conspiracy to possess with intent to distribute meth and to distribution of meth.
U.S. District Judge Susan P. Watters presided.
Court records filed by the prosecution said that on May 10, 2019, a confidential source advised a drug task force officer that Sloan was willing to sell an ounce of meth for $800. The task force arranged for a sale in which an undercover agent assisted. The transaction took place in a vehicle parked on North 29th Street, near the Billings Public Library. Sloan entered the vehicle, which was occupied by the undercover agent and confidential source, and called his source to arrange for the delivery of one ounce of meth for $900. The source arrived, and supplied Sloan with the meth. Sloan kept a small amount and sold the rest to the undercover agent for $800. Sloan also offered the confidential source a small amount of meth for setting up the deal. A Drug Enforcement Agency laboratory determined that the meth totaled 25.5 grams of pure meth.
Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated by the DEA.
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 36% from 2013 to 2018. 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.
XXX
Member of Tulalip Tribes sentenced to 37 months in prison for head-on crash while fleeing Tribal PoliceRead the Press Release
Seattle- A 36-year-old member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to 37 months in prison and 3 years of supervised release for assault resulting in serious bodily injury arising from a high-speed crash, announced U.S. Attorney Brian T. Moran. HERMAN JAMES JOHN III pleaded guilty in February 2020 in connection with the July 8, 2019, high-speed crash into another vehicle on the Tulalip Reservation. At the sentencing hearing, U.S. District Judge James L. Robart noted that JOHN was no longer a young man and has a long pattern of criminal conduct. He expressed hope that JOHN would take advantage of the resources available to him and responsibility for turning his life around.
According to records filed in the case, JOHN had been excluded from the Tulalip Reservation because of criminal conduct. JOHN admits he had used methamphetamine and heroin earlier in the day. When Tulalip Tribal Police attempted to pull JOHN over, he raced away at high speed, lost control of his car, and crashed head on into another car. The two Tulalip tribal members in the other car were severely injured and continue to recover from their injuries. The investigation revealed that JOHN had been traveling 78 miles per hour in a 35-mile-per-hour zone immediately before the crash.
The case was investigated by the Tulalip Tribal Police, the Snohomish County Sheriff’s Office, and the FBI.
The case was prosecuted by Assistant United States Attorney J. Tate London.
Martinsburg man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eric W. Hathcock, of Martinsburg, West Virginia, was sentenced today to 15 months of incarceration for distributing fentanyl and heroin, U.S. Attorney Bill Powell announced.
Hathcock, age 37, pled guilty to one count of “Distribution of Fentanyl and Heroin” in May 2020. Hathcock admitted to selling heroin and fentanyl in June 2019 in Berkeley County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Chief U.S. District Judge Gina M. Groh presided.
Marion County Career Drug Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—A Marion County, Oregon man was sentenced to federal prison today for possession with intent to distribute methamphetamine and possession of a firearm as a convicted felon, announced U.S. Attorney Billy J. Williams.
Mark William Osburn, 39, was sentenced to 180 months in federal prison and five years’ supervised release by U.S. District Judge Karin Immergut.
According to court documents, on September 23, 2018, an Oregon state trooper stopped Osburn after observing him commit several traffic violations. Osburn gave the trooper a fraudulent Washington State driver’s license in another man’s name. A records check revealed that the other man had an Oregon concealed handgun license, proving that the license Osburn produced was a fake. Troopers searched Osburn’s car and found ten fentanyl pills, approximately 74 grams of methamphetamine, and a pistol.
In a separate incident in December 2018, Salem Police officers executed a search warrant at a local motel room after receiving information that Osburn and his girlfriend were selling drugs out of the room. Officers found and seized methamphetamine, user quantities of cocaine and heroin, digital scales, several firearms, ammunition, counterfeit currency, fake identification cards, and $2,300 in cash, among other items. Officers also found a shotgun in Osburn’s vehicle.
Osburn told investigators that he and his girlfriend had been living in the motel room for two months. He admitted to using and selling methamphetamine, and claimed to have sold up to a kilogram of methamphetamine in a 24-hour period. He further admitted to trading drugs for firearms.
Osburn was charged with two counts of possession with intent to distribute methamphetamine; two counts of felon in possession of a firearm; one count of possession of a firearm in furtherance of a drug trafficking crime; and one count each of possession of fentanyl, heroin, and cocaine. On February 8, 2020, Osburn pleaded guilty to possession with intent to distribute more than 50 grams of actual methamphetamine, and two counts of felon in possession of a firearm. Osburn has an extensive criminal history that includes six prior state convictions for delivering methamphetamine
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oregon State Police, and the Salem Police Department. It was prosecuted by Gary Y. Sussman, Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Man Who Tried to Procure Ricin Sentenced to 3½ Years in PrisonRead the Press Release
LOS ANGELES – A La Crescenta man was sentenced today to 42 months in federal prison for attempting to obtain ricin from an online source that he admitted was intended to be used as a weapon.
Steve S. Kim, 41, was sentenced today by United States District Judge Terry J. Hatter Jr. Kim pleaded guilty in September 2019 to one count of violating a criminal statute called prohibition with respect to biological weapons.
During today’s hearing, prosecutors argued that, according to Kim’s own statements, he intended to use the deadly biological toxin to murder an individual who weighed 110 pounds, likely his wife.
Over a two-month period in late 2018, Kim attempted to obtain ricin from an online vendor, that, unbeknownst to Kim, was an FBI undercover operative. During online sale negotiations, Kim stated that he wished to procure the ricin to use on an individual he described as weighing 110 pounds and who would consume the deadly toxin in a drink, according to court documents. The investigation revealed that Kim’s wife weighed approximately 110 pounds, Kim and his wife were experiencing marital difficulties, and a computer seized from Kim showed internet searches for strategies to manage anger issues.
Kim purchased the ricin using Bitcoin for the approximate value of $350. Kim directed the ricin to be delivered to his office via the United States Postal Service and, on November 29, 2018, the FBI delivered an inert powder concealed in package. That evening, Kim took the parcel home, accessed the inert powder, and was immediately arrested.
While the parties dispute Kim’s intended use of the ricin, the act of attempting to obtain the deadly toxin constituted “incredibly dangerous conduct without regard to the safety of others,” according to sentencing papers filed by prosecutors. One sentencing memo quotes a pre-sentence report by the United States Probation Office: “Defendant’s conduct had the potential of endangering the community. Kim caused what he believed to be a lethal biological toxin to be shipped through the United States Postal Service where it was delivered at his place of employment. Had Kim been successful in obtaining ricin, he could have seriously harmed many people who unknowingly came into contact with the hazardous package.”
This matter was investigated by the FBI’s Joint Terrorism Task Force, which received assistance from the United States Postal Inspection Service.
The prosecution is being handled by Assistant United States Attorney Reema M. El-Amamy of the Terrorism and Export Crimes Section, with assistance from the Department of Justice’s Counterterrorism Section.
Male Enhancement Pills Were Not “All Natural” SupplementsRead the Press Release
KANSAS CITY, KAN. – A Kansas man was sentenced Monday to five years on probation for importing and selling misbranded pharmaceutical-grade erectile dysfunction drugs from China and marketing them as herbal remedies for men, U.S. Attorney Stephen McAllister said.
Rick Shepard, 60, Overland Park, pleaded guilty to one count of conspiracy to import misbranded drugs. In his plea, he admitted he was doing business as Epic Products when he sold a product called Euphoric to adult novelty stores in multiple states. He marketed Euphoric as “all natural herbal supplements for male enhancement.” In fact, the product contained prescription drugs Tadalafil and Sildenafil, the active ingredients in Viagra and Cialis. Shepard purchased the drugs from a supplier in China. He repackaged the capsules, applied his own labels and distributed them to stores in Kansas, Missouri and Colorado.
“American consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “FDA remains committed to pursuing those who endanger the U.S. public health by importing and distributing fraudulent and potentially dangerous products.”
McAllister commended the Food and Drug Administration’s Office of Criminal Investigation and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Latin King Gang Member Sentenced to 216 Months in PrisonRead the Press Release
HAMMOND-Pierre Forest, 25, of Harvey, Illinois, and a member of the Chicago-based Latin Kings street gang, was sentenced by Judge Simon to 216 months in prison and 3 years of supervised release following his guilty plea to conspiracy to participate in racketeering activity, announced U.S. Attorney Kirsch.
“Pierre Forest, a Latin King Gang Member, was held accountable for his role in a senseless murder and will now spend 18 years behind bars. He was also involved in putting firearms and illegal drugs on our Northwest Indiana streets,” said Thomas L. Kirsch II. “Our well-coordinated law enforcement teams will continue to focus on fighting violent, senseless crimes like these.”
According to documents in the case, Forest trafficked firearms and was involved in the distribution of cocaine and marijuana in Hammond and East Chicago, Indiana, as a member of the Latin Kings street gang including participating in the July 2015 armed robbery of firearms from members of rival gangs. At a contested sentencing hearing, the court found Forest responsible for his role in the murder of Travis Nash, who was shot and killed by the Latin Kings on July 18, 2011, in Hammond, Indiana. Forest has a prior felony conviction for aggravated unlawful use of a weapon.
“Today’s sentence sends a clear message that the FBI and our law enforcement partners will continue to work diligently to disrupt and dismantle these gangs and rid our streets of these violent criminals and the violence associated with their activities,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “The residents of neighborhoods these gangs have impacted through drug dealing and violence deserve to be able to peacefully go about their daily lives without fear.”
“ATF will aggressively investigate those who illegally traffic in firearms, as it threatens the safety of the whole community,” remarked the ATF Special Agent in Charge of the Chicago Field Division Kristen de Tineo. “We will continue to work closely with our local and federal law enforcement partners and the United States Attorney’s office to bring these offenders to justice.”
This case is the result of the investigative efforts of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, have also provided assistance. The Latin King case is being prosecuted by Northern District of Indiana Assistant U.S. Attorneys David J. Nozick and Nicholas J. Padilla.
Iowa Man Sentenced to Federal Prison for Bank FraudRead the Press Release
On September 11, 2020, an Iowa farmer was sentenced for his role in a scheme to defraud financial institutions.
Michael Throne, age 61, from Scarville, Iowa, received the prison term after a February 12, 2020 guilty plea to one count of False Statement to a Financial Institution.
During his change of plea and sentencing hearings, it was revealed that sometime before January 2018 – and before he obtained his 2018 operating loans, Throne began stealing from, and lying to, his banks. He began converting the property that had been pledged to the banks as collateral, and began overstating the value of the remaining collateral in order to obtain additional funds. He even altered futures contracts to inflate his anticipated income streams. When his scheme collapsed and was detected by the bank, he confessed his crimes to the bank.
Throne was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Throne was sentenced to 24 months’ imprisonment. He was ordered to make $1,474,964.61 in restitution to the First State Bank of Kiester and $625,445.48 in restitution to the Farm Service Agency (FSA). He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Throne was released on the bond previously set and is to surrender to the Bureau of Prison on a date yet to be set.
The case was investigated by the USDA, Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Forde Fairchild, Ajay Alexander, Matt Cole, and Marty McLaughlin.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3003.
Follow us on Twitter @USAO_NDIA.
International Fugitive and Disbarred Attorney Charged in over $5 Million Cryptocurrency FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging RANDY CRAIG LEVINE, a/k/a “Viktor Lapin,” a/k/a “Andre Santiago Santos Galindo,” a/k/a “Alexander Martinez Lavrov,” a/k/a “Alexander Kozlov,” a/k/a “Hristo Danielov Marinov,” and PHILIP REICHENTHAL with commodities fraud, wire fraud, and money laundering offenses. As alleged, LEVINE induced others to send millions of dollars to REICHENTHAL, who was at the time a licensed attorney, to fund the purchase of Bitcoin after falsely representing that he intended to sell large quantities of Bitcoin to buyers. REICHENTHAL, who was purportedly acting as an escrow agent for the transactions, then sent a substantial portion of the money to LEVINE, before any Bitcoin was provided by LEVINE to investors. Neither LEVINE nor REICHENTHAL ever provided any Bitcoin or refunded the investors’ money.
LEVINE, a U.S. citizen, fled the United States in or about 2005 after learning that he was under investigation for passport fraud and that his residence had been searched. On or about May 19, 2005, a federal grand jury sitting in the Southern District of Florida returned an indictment charging LEVINE with passport fraud and perjury. In 2018, LEVINE was arrested in Guatemala with a Russian passport containing the alias “Viktor Lapin.” In June 2020, he was arrested in Austria with a Bulgarian passport containing the alias “Alexander Koslov.” Extradition proceedings are pending.
REICHENTHAL was arrested today in Homestead, Florida, and will be presented later today before United States District Judge Jacqueline Becerra in the Southern District of Florida.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Randy Levine and Philip Reichenthal allegedly engaged in a scheme to take over $5 million in investor funds under the pretense of offering cryptocurrency for sale. In reality, when investors’ funds were transferred to Reichenthal, a licensed attorney at the time, for ‘escrow’ at Levine’s behest, the two allegedly pocketed the money. They never completed the Bitcoin transactions promised to their victim investors. Today’s arrest of Philip Reichenthal ensures that he and his co-defendant, Randy Levine, will face justice for this alleged scheme.”
FBI Assistant Director-in-Charge Sweeney said: “As alleged, Levine and Reichenthal operated two fraudulent schemes involving Bitcoin transactions. In both cases, investors wired money to the defendants to fund the purchase of Bitcoin. In neither case did these purchases actually take place. The money was funneled, as alleged, to overseas bank accounts controlled by Levine. While the charges brought today against Levine and Reichenthal are fairly detailed and laden with allegations of complex criminal activity, the truth is much more simple: they were con artists who finally got caught in the act.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
The charges against LEVINE and REICHENTHAL involve two fraudulent schemes. In the first fraudulent scheme, in approximately June and July 2018, LEVINE induced another individual, the principal of a purported cryptocurrency escrow firm (“Individual-1”), to wire to REICHENTHAL over $3 million of funds from an over-the-counter cryptocurrency broker (“Company-1”) to fund the purchase of Bitcoin after falsely telling Individual-1 that LEVINE would sell thousands of Bitcoin, when in truth and in fact, LEVINE never intended to sell Bitcoin. After receiving the $3 million, REICHENTHAL, in turn, wired over $2 million to bank accounts in Guatemala held in the name of one of LEVINE’s aliases. LEVINE then lied to Individual-1 for days about why the deal had not worked out, the status of the purported Bitcoin, and the location of Company-1’s money, which was never returned.
In the second fraudulent scheme, from approximately February 2019 to May 2019, LEVINE induced a Florida resident involved in brokering Bitcoin transactions (“Individual-2”) to cause investors to send to REICHENTHAL over $2 million of the investors’ money to fund the purchase of Bitcoin. Again, LEVINE told Individual-2 that LEVINE would sell Bitcoin, when in truth and in fact, LEVINE never had any intention of selling Bitcoin to the investors. After receiving the funds from the investors, REICHENTHAL, in turn, sent over $1.9 million to bank accounts in Mexico controlled by LEVINE; the money was then wired to a bank account in Russia held in the name of one of LEVINE’s aliases. LEVINE then lied to Individual-2 and an investor (“Investor-1”) about the status of the investors’ funds, which were never returned. After Individual-2 sought the return of the funds, LEVINE sent one electronic message threatening to “bring [Individual-2] into all My Legal Problems here in Guatemala including Money Laundering as I have open investigation a d [sic] I will alert the American Authorities you were involved in my operations before just to stick it up your a**.”
In connection with the above transactions, LEVINE used, among other things, various false aliases to communicate with the individuals sending funds to REICHENTHAL and foreign bank accounts held in his false names. REICHENTHAL used bank accounts held in the name of his law firm and an attorney trust account to receive the funds and the pass them to LEVINE, before he or investors received the Bitcoin, contrary to REICHENTHAL’s and LEVINE’s promises.
On or about October 31, 2019, the Supreme Court of the State of Florida granted REICHENTHAL’s own petition for voluntary disciplinary revocation of his bar license after approximately 12 attorney disciplinary charges were filed against him related to his “receipt of approximately $2,125,000.00 in escrow funds and subsequent failure to disburse in accordance with the escrow agreement,” as stated in the court documents.
* * *
LEVINE, 53, formerly of Coral Springs, Florida, and REICHENTHAL, 76, of Homestead, Florida, are each charged with one count of conspiring to commit commodities fraud, which carries a maximum term of 5 years in prison, one count of conspiring to commit wire fraud, which carries a maximum sentence of 20 years in prison, two counts of commodities fraud, each of which carries a maximum sentence of 10 years in prison, two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison, and one count of money laundering, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and also thanked the Commodity Futures Trading Commission and the Florida Office of Financial Regulation’s Bureau of Financial Investigations for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Drew Skinner are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Inmate Sentenced for Having Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. - An inmate at the Federal Correctional Institution (FCI) McDowell was sentenced in federal court today for possessing a weapon at the correctional facility, according to United States Attorney Mike Stuart. Desmond Johnson, 29, was sentenced to 12 months in prison, to run consecutively to the sentence he currently is serving. He also was sentenced to three years of supervised release following his imprisonment.
“As if serving time in a federal prison isn’t bad enough, Johnson made things worse for himself by possessing a shank,” said United States Attorney Mike Stuart. “Shanks are incredibly dangerous for other inmates and for prison staff. Now he has an extended stay at FCI McDowell.”
Johnson admitted that on July 21, 2019 he possessed a handcrafted weapon commonly called a shank. A staff member at the prison saw Johnson drop the shank, and another staff member recovered it.
The case was investigated by the Federal Bureau of Prisons.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney John File handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:20-cr-00057.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Grant County man sentenced to 30 years for methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Lee Pauley, Jr., of Mount Storm, West Virginia, was sentenced today to 360 months incarceration for methamphetamine distribution, United States Attorney Bill Powell announced.
“Our district has seen an increase in methamphetamine activity, and we will continue to aggressively act to prosecute those who distribute it in our communities. This prosecution is the result of excellent work by law enforcement and our prosecution team,” said Powell.
Pauley, age 42, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in March 2019. Pauley admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral, Grant, and Randolph Counties.Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Former VA Employee Pleads Guilty to Embezzling $70,000 Using Mobile Payment ApplicationRead the Press Release
BOSTON – A former Department of Veteran Affairs (VA) employee was sentenced today for embezzling nearly $70,000 in VA funds.
Michael Donaher, 41, of Lakeville, was sentenced by U.S. District Court Judge Indira Talwani to time served (approximately one day), three years of supervised release with the first six months to be served in a sober house, and ordered to pay $69,720 in restitution. The government recommended a sentence of one year and one day incarceration. In May 2020, Donaher pleaded guilty to one count of embezzlement and theft of public money, property or records after being arrested and charged in January.
Donaher worked as an Inventory Management Specialist for the Veterans Affairs Medical Facility in Brockton and was responsible for purchasing various equipment necessary for use in the facility. Donaher conducted fraudulent transactions using his government-issued purchase cards and routed the proceeds to his personal bank account. He attempted to conceal these fraudulent purchases by making it appear as if the purchases were made through a large company that the VA frequently used for legitimate business, when, in fact, they were actually made through a company Donaher created through a mobile payment company. These purchases were not for actual items ever received by the VA. Furthermore, Donaher attempted to hide this fact by annotating the items as having been received within the VA’s accountability system. Donaher fraudulently routed approximately $70,000 of VA funds to his personal account since the scheme began in 2016.
United States Attorney Andrew E. Lelling and Christopher Algieri, Special Agent in Charge of the Department of Veteran Affairs, Office of the Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the case.
Former California EDD Employee Sentenced for Disability Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Katherine Decker, 49, of Fresno, was sentenced today by U.S. District Judge Kimberly J. Mueller to three years and seven months in prison for a disability benefits fraud and identity theft scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, between June 14, 2013, and May 1, 2017, Decker and co‑defendant Angela Stubblefield, 49, of Tacoma, Washington, formerly of Martinez, participated in a scheme to defraud the State of California by filing fraudulent claims for disability insurance benefits with the California Employment Development Department (EDD). In furtherance of the scheme, Decker and Stubblefield used Decker’s position as an employee with the EDD to file fraudulent claims for disability benefits and to fraudulently extend existing disability claims, using the names and identities of real persons with and without their knowledge. In total, the conspiracy resulted in 15 fraudulent disability claims, resulting in a loss to the EDD of approximately $373,566.
This case is the product of an investigation by EDD’s Investigation Division and the Federal Bureau of Investigation. Assistant U.S. Attorneys Shea J. Kenny and Amy S. Hitchcock are prosecuting the case.
On Feb. 10, Decker and Stubblefield pleaded guilty to the fraud scheme. Stubblefield is scheduled to be sentenced by Judge Mueller on Nov. 9. A hearing to determine the restitution amount is also scheduled for Nov. 9.
Florida man charged federally with production of child pornography and enticement of a minorRead the Press Release
Tacoma – A 39-year-old New Port Ritchey, Florida, man is in federal custody tonight charged with production of child pornography and enticement of a minor, announced U.S. Attorney Brian T. Moran. SAMUEL AARON LEONARD was arrested July 2, 2020, in Vancouver, Washington, just outside the home of the 14‑year-old girl he had spent months enticing online for sexual abuse. LEONARD had allegedly communicated with the girl on a number of social media platforms and represented to the girl that he was 20 years old. LEONARD will make his initial appearance in U.S. District Court in Tacoma at 2:30 today.
According to the criminal complaint, LEONARD contacted the girl via a social media platform around April 1, 2020. Over the next few months, LEONARD communicated with the girl on various social media sites and sent her a cell phone so that they could communicate by text and telephone. Unbeknownst to the girl, LEONARD had installed tracking and surveillance software in the phone so that he could monitor her location and read her texts and emails. LEONARD turned the conversations with the girl to a sexual nature and convinced her to send various sexually explicit photos. The girl’s guardians became aware of the communication and contacted Kalama Police in late June 2020. Law enforcement immediately seized both phones that the teen had been using to communicate and had an undercover officer take over the communication. Analyzing the communications and the cell phone information, the investigation revealed that LEONARD had traveled from Florida to the Vancouver area via bus and was within a short bike ride of the girl’s home. When the officer, posing as the girl, revealed that the girl’s guardian had taken the phone LEONARD had sent to her, LEONARD said he would get her a new one. Police surveilled LEONARD as he took a newly purchased phone, hid it in a package, and tossed the package over the fence to the girl’s backyard. LEONARD was arrested shortly afterwards.
A search of LEONARD’s hotel room revealed that he had a firearm and ammunition, four folding survival knives, a survival axe, and a number of items used to restrain someone, such as ten sets of flex cuffs and two sets of metal handcuffs, as well as duct tape and electrical tape. He also had various sex toys and lubricants.
Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison. Enticement of a minor is punishable by a mandatory minimum 10 years in prison and up to life in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations (HSI), the Vancouver Police Department, and Kalama Police Department.
The case is being prosecuted by Assistant United States Attorney Angelica Williams with assistance from the Clark County Prosecuting Attorney’s Office.
Florida Man Arrested on Bank Fraud and Related ChargesRead the Press Release
RALEIGH, N.C. – A Florida man was arrested earlier this month in Wisconsin on charges of bank fraud and aggravated identity theft.
According to court documents, in September 2019, Kamori Dontae Keys, age 26, and his co-conspirators engaged in a bank fraud scheme that targeted bank customers who reside in Charlotte, North Carolina, and Florence, South Carolina. During the scheme, Keys and his co-conspirators unlawfully obtained the customers’ bank account information and then withdrew their funds in the Eastern District of North Carolina via cash withdrawals and point of sale transactions, thereby causing an approximate loss of over $45,000 to the victim bank.
Keys is charged with Conspiracy to Commit Bank Fraud, in violation of 18 U.S.C. § 1349; Bank Fraud/Aiding and Abetting, in violation of 18 U.S.C. §§ 1344(1), 1344(2) and 2; and Aggravated Identity Theft/Aiding and Abetting, in violation of 18 U.S.C. §§ 1028A(a)(1) and 2. He faces a mandatory minimum penalty of 24 months in prison on the aggravated identity theft count, and a maximum penalty of 360 months in prison if convicted on the bank fraud counts.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Winterville Police Department and several other local law enforcement agencies are investigating the case and Special Assistant U.S. Attorney Tamika Moses is prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.4:20-CR-77-M.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Felon charged with illegal firearm possession over Labor Day weekendRead the Press Release
U.S. Attorney Justin Herdman announced today that Andrew Kmon WILLIAMS, age 23, of Youngstown, was charged in federal court via criminal complaint as a felon in possession of firearms. WILLIAMS was charged as a firearms offender under Operation Red-Zone, a combined federal, state and local partnership to reduce gun violence over the Labor Day weekend.
“This defendant was in the Red-Zone, meaning that he was prohibited from possessing firearms under federal law based on a prior felony conviction,” said U.S. Attorney Justin Herdman. “Over this past Labor Day weekend, this defendant was in the Red-Zone and is alleged to have illegally possessed two firearms. Each and every illegal firearm we can take off the streets makes our communities a safer place to live.”
According to the complaint, police identified Williams while driving a vehicle that was suspected in a previous felonious assault incident. During a search of the vehicle, law enforcement agents seized two 9mm pistols. WILLIAMS later admitted to knowing that the firearms were in the vehicle. WILLIAMS is prohibited from possessing a firearm due to a previous felony conviction for possession of heroin in the Mahoning County Court of Common Pleas.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
Federal Grand Jury Hands Down More Than 60 Indictments in SeptemberRead the Press Release
United States Attorney Trent Shores today announced the results of the September 2020 Federal Grand Jury B. The grand jury returned 55 unsealed and eight sealed indictments.
“We have experienced another first in our District with more than 60 indictments being returned by the federal Grand Jury. I could not be any prouder of the diligent work of my entire team. Our attorneys, support staff, and administrative staff have worked tirelessly to pursue our mission of justice,” said U.S. Attorney Trent Shores. “This month we were also lucky to have the help of federal prosecutors and support staff from other U.S. Attorney’s Offices who volunteered to work in Tulsa for the next six months. They were essential to our efforts this month and will continue to be so for the foreseeable future.”
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.
Dalton Wayne Abel. Felon in Possession of a Firearm; Possession of a Firearm While Addicted to a Controlled Substance. Abel, 23, of Owasso, is charged with being a felon in possession of a Ruger 9mm caliber semi-automatic pistol. Abel was previously convicted in 2015 for Possession of Controlled Dangerous Substance. Abel is also charged with unlawfully possessing a firearm while being addicted to methamphetamine. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Mark Paul Adlawan. False Statement to a Firearms Dealer. Aldawan, 56, of Afton, is charged with knowingly making a false statement to a federally licensed firearms dealer. According to court documents, Aldawan falsely filled out an ATF Form 4473, Firearms Transaction Record, to the effect that he had not previously been convicted of a misdemeanor crime of domestic violence, whereas in fact, he had been convicted of Domestic Abuse – Assault and Battery in 2002. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Juan Alaniz. Possession of a Firearm by an Alien Illegally in the United States; Unlawful Reentry of Removed Alien. Alaniz, 46, of Tulsa, is charged with being an alien unlawfully in the United States in possession of a Mossberg International .22LR caliber rifle and ammunition. Alaniz is also charged with reentry of a removed alien, having returned to the United States unlawfully after being deported on or about June 2, 2011, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Terrance Alexis Anderson. Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, Dating Partner in Indian Country; 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. Anderson, 40, of Bristow, is charged with assaulting his partner by strangling and stabbing her, causing substantial bodily injury. The FBI and Bristow Police Department are the investigative agencies.
Joshua Dale Armstrong. Aggravated Sexual Abuse of a Child in Indian Country; Abusive Sexual Contact of a Child in Indian Country. Armstrong, 33, of Tulsa, is charged with sexual abuse of a minor. From Jan. 1, 2018 to April 16, 2020 Armstrong knowingly engaged in sexual acts with a child under the age of 12. The FBI and Tulsa Police Department are the investigative agencies.
Jarrod Dale Armstrong. Felon in Possession of a Firearm and Ammunition. Armstrong, 39, of Jennings, is charged with being a felon in possession of Japanese 7.7mm caliber bolt-action rifle; a Kessler Arms Corp. 16 gauge bolt-action shotgun; a Winchester .25-20 caliber lever-action rifle; a Companhia Brasileira de Cartuchos (Mossberg) .22 caliber semi-automatic rifle; a Remington 12 gauge pump-action shotgun; a Ruger .22 caliber semi-automatic rifle; a Smith and Wesson .40 S&W caliber semi-automatic pistol; and associated ammunition. Armstrong has been convicted of five previous felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Joshua Aaron Attocknie. Possession of Stolen Vehicle in Indian Country. Attocknie, 38, of Tulsa, is charged with two counts of possession of a stolen vehicle. Attocknie unlawfully and knowingly possessed a 2016 black Audi A5 and a 2020 black Chevrolet Silverado previously stolen from a dealership and rental company by unknown parties. The FBI and Tulsa Police Department are the investigative agencies.
Richard Howard Barnett III. Possession of Methamphetamine with Intent to Distribute; Possession of Heroin with Intent to Distribute; Possession of Firearms in Furtherance of Drug Trafficking Crimes; Maintaining a Drug-Involved Premises; Possession of a Firearms During and in Relation to a Drug Trafficking Crime. Barnett, 24, of Tulsa, is charged with possession of methamphetamine and heroin with intent to distribute. Barnett is further charged with possession of a firearm in furtherance of drug trafficking crimes and using a place for the purpose of manufacturing, distributing, and using methamphetamine and heroin. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Alvaro Bazan. Aggravated Identity Theft; Misuse of Social Security Number; False Statement in Application for Passport. Bazan, age unknown, of Tulsa, is charged with knowingly using another individual’s identification without lawful authority. Bazan is also charged with knowingly making a false statement in an application for a passport by attempting to use a social security number that was not his own. The Social Security Administration Office of the Inspector General is the investigative agency.
Davion Marque Beard. Felon in Possession of a Firearm and Ammunition. Beard, 32, of Tulsa, is charged with being a felon in possession of a Glock GMBH 9 x 19mm caliber semi-automatic pistol and ammunition. Beard was previously convicted of second degree murder while committing a felony. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Dustin Grover Bruner. Assault with a Dangerous Weapon in Indian Country. Bruner, 38, of Sapulpa, is charged with assaulting a man by stabbing him with a knife. The FBI and Sapulpa Police Department are the investigative agencies.
Philip Thomas Burris. Felon in Possession of Firearm. Burris, 32, of Miami, is charged with being a felon in possession of a Samsun Defense S.A. (Canik) 9 x 19mm caliber semi-automatic pistol. Burris is a 5-time convicted felon. The Drug Enforcement Administration, Miami Police Department, Bureau of Indian Affairs, and Quapaw Tribal Marshal Service are the investigative agencies.
Kendal Jane Copeland. Possession of Methamphetamine with Intent to Distribute. Copeland, 26, of Tulsa, is charged with possession with intent to distribute 50 grams or more of methamphetamine. The Tulsa Police Department is the investigative agency.
Desmond Lee Cousino. Felon in Possession of a Firearm and Ammunition. Cousino, 24, of Tulsa, is charged with being a felon in possession of a Glock GMBH 9x19mm caliber semi-automatic pistol, a Glock GMBH .40 S&W caliber semi-automatic, and ammunition. Cousino is a six-time convicted felon. The FBI is the investigative agency.
Ibanga Etuk; Olusola Ojo. Bank Fraud Conspiracy; Bank Fraud. Etuk, 40, of Tulsa, and Olusola Ojo, 41, of Owasso, conspired together and with others to commit bank fraud from April 1, 2020 to August 4, 2020. Etuk and Ojo created 18 businesses entities that would fraudulently apply for Paycheck Protection Program (PPP) loans under false pretenses such as the number of employees, payroll expenditures, taxes paid during previous months, details of business ownership, and a false representation of their relationship with one another. During this time, Etuk and Ojo submitted multiple applications for the same businesses to several different banks, without disclosing to those banks that they were submitting duplicative applications. They conspired to obtain loans in the total approximate amount of $5,130,585 and actually obtained funding from banks in the total approximate amount of $995,385. The Federal Reserve Board-Office of Inspector General (OIG); Small Business Administration-OIG, and FBI are the investigative agencies.
Jared Andrew Evans. Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, Dating Partner in Indian Country; Assault of a Spouse, Intimate Partner, Dating Partner by Strangling and Attempting to Strangle or Suffocate in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country. Evans, 28, of Sapulpa, assaulted his dating partner by strangling her, hitting her to the ground, and kicking her with his feet. The FBI and Sapulpa Police Department are the investigative agencies.
Parris Deshaunte Evitt. Cyber Stalking. Evitt, 30, of Tulsa, violated a protective order issued against him when he allegedly cyber stalked a female victim from October 29, 2018 through September 3, 2020, placing the victim in fear of death and serious bodily injury and causing substantial emotional distress. The FBI is the investigative agency.
Sheriah Shae Fox. Assault With a Dangerous Weapon in Indian Country. Fox, 24, of Sapulpa, is charged with assaulting another woman with a knife. The FBI and Muscogee (Creek) Nation Tribal Police Department are the investigative agencies.
Bradley Don Goodin. Aggravated Sexual Abuse of a Minor under 12 in Indian Country; Abusive Sexual Contact with a Child under 12 in Indian Country. Goodin, 46, of Sapulpa, from January 1, 2019 to October 5, 2019, engaged in sexual acts with an Indian minor under the age of 12. The Sapulpa Police Department, Creek County Sheriff’s Office and FBI are the investigative agencies.
Randy Alan Hamett. 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; Stalking 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. Hamett, 63, of Choctaw, allegedly violated a protective order by stalking his former spouse, breaking into her 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.
Harlan Frank Hardiman. Voluntary Manslaughter in Indian Country. Hardiman, 50, of Tulsa, is charged with voluntary manslaughter after getting in a fight with another male and killing him by punching him in the head. The FBI is the investigative agency.
Sha-Lisa Harlin. Murder in the First Degree in Indian Country (count 1); Assault With a Dangerous Weapon in Indian Country (counts 2-3); Felon in Possession of a Firearm and Ammunition (count 4). Harlin, 39, of Tulsa, is charged with deliberately shooting and killing a male victim on May 22, 2020. Harlin is further charged with attempting to assault two females. Finally, Harlin is charged with being a felon in possession of a .25 Auto caliber semi-automatic pistol and ammunition. The FBI and Tulsa Police Department are the investigative agencies.
Michael Charles Hicks. Carjacking. Hicks, 50, of Tulsa, is charged with stealing a 2015 Cadillac Escalade from its owner by force, violence, and with the intent to cause the victim serious harm. The FBI and Tulsa Police Department are the investigative agencies.
Imari Jamil Hines. Felony Child Abuse in Indian Country; Assault Resulting in Substantial Bodily Injury of a Child under the Age of Sixteen in Indian Country. Hines, 34, of Tulsa, on April 28, 2020, willfully injured a twelve year old boy by striking him repeatedly with a belt. The FBI and Tulsa Police Department are the investigative agencies.
Carl John Irons Jr. Murder—Second Degree in Indian Country. Irons, 19, of Tulsa, is charged with second degree murder after killing a juvenile male using a firearm. The FBI and the Tulsa Police Department are the investigative agencies.
Christopher Allen King. Felon in Possession of Firearm; Possession of an Unregistered Firearm. King, 34, of Tulsa, is charged with being a felon in possession of a Mossberg 12 gauge pump-action shotgun and multiple round of various ammunition. Further, King is charged with being in possession of two destructive devices not registered to him in the National Firearm Registration and Transfer Record, specifically, an incendiary bomb contained in a 99 butterscotch bottle and an incendiary bomb contained a tequila rose bottle. King is an 8-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Arthur Ray Kratz. Assault with a Dangerous Weapon in Indian Country; Burglary in the First Degree in Indian Country. Kratz, 38, of Tulsa, on March 11, 2020, allegedly broke into the victim’s home to commit a crime and assaulted the victim with a metal bar. The FBI and Tulsa Police Department are the investigative agencies.
Redex Lester Jr. Murder in the Second Degree in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country. Lester, 53, of Tulsa, is charged with second degree murder and assault after he killed one man and seriously injured another in a multi-vehicle car accident. At the time of the accident, Lester was allegedly intoxicated, speeding, and driving with a suspended license from a previous DUI conviction. The FBI and Tulsa Police Department are the investigative agencies.
Kelsey Dawn Lipp. First Degree in Indian Country Felony-Murder; Robbery in Indian Country. Lipp, 25, of Tulsa, allegedly caused the unlawful killing of Dustin Michael Barham when she and others robbed the victim at gun point. In the commission of the robbery, Barham was murdered. The Tulsa Police Department and FBI are the investigative agencies.
Tymalk Quane Love; Anthony Ward Irving; Casey Joe Eastwood. Drug Conspiracy (counts 1-2); Importation of a Controlled Substance- Fentanyl (count 3); Smuggling Goods Into the United States (count 4); Unlawful Use of a Communication Facility (counts 5-34); Possession of a Firearm in Furtherance of a Drug Trafficking Crime (counts 35 and 36). From approximately January 2018 through February 2019, Love, 30, of Tulsa; Irving, 36, of Phoenix, Arizona; and Eastwood, 34, of Purdy, Missouri, conspired to distribute heroin and 500 grams or more of methamphetamine (count 1). According to the indictment, Love organized the conspiracy using contraband cell phones from inside the Oklahoma Department of Corrections where he was an inmate. Other members of the conspiracy allegedly included a “Wholesaler,” defendant Irving, a bulk distributor from Arizona who sold the drugs to the facilitator; a “Facilitator” who purchased drugs from bulk distributors and sold the drugs to mid-level drug dealers; and a “Distributor”- defendant Eastwood, who bought drugs from the facilitator. Love profited by selling drugs to mid-level drug dealers at higher prices than what Love had paid the wholesaler. Love is further charged with conspiring to distribute fentanyl (count 2); importing/smuggling fentanyl into the United States (count 3 and 4); using a cell phone to direct his illicit drug operation (counts 5-27); and possessing a Taurus 9 mm pistol in furtherance of his drug trafficking crimes on Jan. 31, 2018 and Feb. 7, 2019 (Count 35-36). Finally, Eastwood is charged with using a cell phone as part of the drug conspiracy (counts 28-34). The Oklahoma Bureau of Narcotics and Dangerous Drugs, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Tulsa Police Department are the investigative agencies.
Kung-Gi Lowe. Attempted Robbery in Indian County; Assault With a Dangerous Weapon in Indian County. Kuna-Gi Lowe, 35, of Bixby, is charged with attempted robbery in Indian Country and with attempted assault of a female victim using a knife. The FBI and Tulsa Police Department are the investigative agencies.
Robert Joseph Marder. Assault With a Dangerous Weapon in Indian Country; Burglary in the First Degree in Indian Country. Marder, 30, is charged with breaking and entering another’s dwelling with intent to commit a crime and with assaulting an individual present in the dwelling. The FBI is the investigative agency.
Franklin Thomas Markwardt. Burglary in the First Degree in Indian Country. Markwardt, 42, of Broken Arrow, is charged with breaking and entering another’s dwelling with intent to commit a crime while those residing in the home were present. The FBI and Broken Arrow Police Department are the investigative agencies.
Adam Raymond Mason. Murder in the First Degree in Indian Country; Arson in Indian Country. Mason, 29, of Bristow, is charged with the premeditated murder of his daughter. He is also charged with maliciously setting a fire to a structure in Bristow. You can find the initial press release here. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Muscogee (Creek) Nation Lighthorse Tribal Police Department, and the Creek County Sheriff’s Office are the investigative agencies.
Douglas Eugene Norris. Felon in Possession of a Firearm; Second Degree Burglary in Indian Country. Norris, 56, is charged with being a felon in possession of a Norinco, 7.62x39 mm caliber rifle. Norris has 10 previous felony convictions. Norris is also charged with breaking and entering another’s residence with the intent to commit a crime, including theft. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Shana Larena Osborne. Wire Fraud; Aggravated Identity Theft. Osborne, 44, of Tulsa, is charged with devising a scheme to defraud Sam’s Club through the unauthorized use of a stolen membership card. The Tulsa Police Department is the investigative agency.
Luis Ernesto Pando. Possession of Methamphetamine With Intent to Distribute. Pando, 22, of Borger, Texas, is charged with possessing with intent to distribute 500 grams or more of methamphetamine. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies.
Sarah Michelle Presley. Sexual Contact in Indian Country. Presley, 26, is charged with having sexual contact with the victim without permission. The FBI is the investigative agency.
Bobby Ray Prouty. Indecent Exposure in Indian Country. Prouty, 43, knowingly exposed his genitals and masturbated in public. The FBI and Tulsa Police Department are the investigative agencies.
Jarrett Wayne Raby. Assault Resulting in Serious Bodily Injury in Indian Country; Assault With a Dangerous Weapon in Indian Country. Raby, 47, of Sapulpa, is charged with assaulting a male victim by striking him with his fist and brass knuckles, resulting in serious bodily injury. The FBI and Sapulpa Police Department are the investigative agencies.
Chase Wayne Rider. Sexual Abuse in Indian Country. Rider, 25, of Broken Arrow, is charged with knowingly sexually abusing a female victim while she was incapable of consenting to the act. The FBI and Tulsa Police Department are the investigative agencies.
Randy Paul Shelby. Information About Bombs in Courthouse. Shelby, 40, of Sand Springs, is charged with conveying false and misleading information by making a telephone call to the Tulsa Police Department stating that another individual had planned to make a bomb and blow up the Tulsa Country Courthouse. The FBI and Tulsa Police Department are the investigative agencies.
Thomas Jason Smith. Burglary in the Third Degree in Indian Country; Felon in Possession of Firearm. Smith, 40, of Copan, is charged with breaking and entering a pickup truck belonging to another person with intent to steal property. He is further charged with being a felon in possession of an Armsan (Tri-Star) 12 gauge, semi-automatic shotgun. The FBI and Tulsa Police Department are the investigative agencies.
Devin Charles Staller. Felon in Possession of a Firearm. Staller, age unknown, of Tulsa, is charged with being a felon in possession of a Montgomery Ward Savage 16 gauge, pump-action shotgun. Staller was previously convicted of 10 felonies. The FBI is the investigative agency.
Jason Robert Terry, Sr. Failure to Register as a Sex Offender. Terry, 44, of Tulsa, is charged with failing to register as a sex offender from May 1, 2018, to May 21, 2020. The Tulsa Police Department and U.S. Marshals Service are the investigative agencies.
Bobby Brian Thompson. Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, Dating Partner in Indian Country; Assault of a Spouse, Intimate Partner, Dating Partner by Strangling and Attempting to Strangle or Suffocate in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country. Thompson, 39, of Bristow, is charged with assault by strangling, striking, throwing to the ground, and kicking a female victim. The FBI and Bristow Police Department are the investigative agencies.
Thiyagarajah Thurairajah. Assault With a Dangerous Weapon in Indian Country. Thurairajah, 48, of Tulsa, is charged with assaulting a male victim with a knife. The FBI and Tulsa Police Department are the investigative agencies.
James Douglas Valdez. Felon in Possession of a Firearm and Ammunition. Valdez, 38, of Tulsa, is charged with being a felon in possession of a Taurus 9mm, semi-automatic pistol and associated ammunition. Valdez was previously convicted of seven felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Broken Arrow Police department are the investigative agencies.
Jerrick Lee Wadley; Story Christopher Smith. Conspiracy-Armed Robbery in Indian Country; Robbery in Indian Country. Wadley, 20, and Smith, 21, both of Tulsa, conspired to commit robbery. On Sept. 2, 2019, the defendants identified a victim and his residence as a robbery target. According to the indictment, Story forcibly entered the front door while Wadley served as lookout. Story then allegedly pointed a firearm at two victims demanding their keys, wallets, drugs and cell phones. The FBI and Tulsa Police Department are the investigative agencies.
Craig Alan Morrison; Amanda Lyn Walker. Child Abuse in Indian Country; Enabling Child Abuse in Indian Country. Morrison, 36, of Tulsa, is charged with abusing and injuring a child. Walker, 41, of Tulsa, is charged with enabling Morrison to abuse the child. The FBI and Tulsa Police Department are the investigative agencies.
Sean Wasson. Possession of Heroin With Intent to Distribute. Wasson, 27, is charged with possessing with intent to distribute heroin. The Drug Enforcement Administration is the investigative agency.
Johnny Ray Watson. Possession of Methamphetamine With Intent to Distribute. Watson, 39, of Glenpool, is charged with knowingly possessing with intent to distribute methamphetamine. The Drug Enforcement Administration and Bixby Police Department are the investigative agencies.
Blake Clifton Williamson. Possession of an Unregistered Rifle Having a Barrel of Less Than 16 Inches in Length. Williamson is charged with knowingly possessing a rifle having a barrel length of less than 16 inches, that is, an Anderson Manufacturing multi-caliber short-barreled rifle, not registered to him in the National Firearms Registration and Transfer Record. The Tulsa County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jason Ray Willis. Felon in Possession of Firearm and Ammunition. Willis, 44, of Pryor, is charged with being a felon in possession of a Beretta .40 S&W caliber, semi-automatic pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Devante Joe Youngblood. Felon in Possession of Firearm; Possession of an Unregistered Weapon Made From a Rifle Having a Barrel of Less Than 16 Inches in Length. Youngblood, 27, of Stroud, is charged with being a felon in possession of a Heritage Repeating Arms Co., .22LR caliber weapon made from a rifle. The firearm, made from a rifle having a barrel of less than 16 inches in length, was not registered to him in the National Firearms Registration and Transfer Record. Youngblood was previously convicted of six felonies. The Bristow Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Ex-Doctor's Girlfriend Sentenced in Scheme to Illegally Distribute Oxycodone and Defraud Medicare and MedicaidRead the Press Release
PITTSBURGH – The girlfriend of a former Pennsylvania-licensed physician has been sentenced in federal court to a total of 63 months’ imprisonment on her conviction for conspiracy to illegally distribute oxycodone, conspiracy to commit health care fraud, conspiracy to commit money laundering, and theft of public money, United States Attorney Scott W. Brady announced today.
On September 14, 2019, Chief Judge Mark R. Hornak imposed the sentence on Marcia Ramsier Arthurs, age 62, formerly of Novato, California. Judge Hornak further ordered Arthurs to pay restitution to the Social Security Administration totaling $48,617.00, and to forfeit any interest she had in assets totaling approximately $1.2 million in U.S. currency, gold, silver, and real property.
According to information presented to the court, from March 26, 2015 to June 22, 2018, in the Western District of Pennsylvania and elsewhere, ex-doctor and co-defendant Paul Michael Hoover and Arthurs conspired to illegally distribute oxycodone, commit health care fraud, and launder drug proceeds. Approximately every three months, Hoover and Arthurs traveled from California to operate a pill mill in Coraopolis, Pennsylvania for one or two days, during which time, Hoover wrote individuals illegitimate oxycodone prescriptions for cash, assisted by Arthurs who wrote out the prescriptions, counted cash, and generally managed the pill mill. While back in California, Hoover and Arthurs received money orders for oxycodone prescriptions from individuals residing in the Pittsburgh area, and after receiving payment, mailed illegitimate prescriptions to the individuals. Hoover also conspired with Arthurs to commit health care fraud by signing preauthorization forms and submitting the forms to Medicare and Medicaid health plans, which then paid for the cost of the illegitimate prescriptions. Hoover and Arthurs also conspired to launder the proceeds from their drug distribution operation. Finally, from approximately October 2012 to July 2018, Arthurs knowingly converted to her own use, money belonging to the Social Security Administration in Social Security Title II and Supplemental Security Income (SSI) benefits totaling $48,617.76. The defendant’s actions were without authority in that she made false representations to the Social Security Administration in order to wrongfully obtain these benefits, including reporting false information about her living and financial arrangements with Hoover
Hoovers was previously sentenced to a term of imprisonment of 136 months and restitution to Medicare, Medicaid, and the Social Security Administration totaling $406,760.75.
Assistant United States Attorneys Cindy K. Chung and Rachael L. Mamula prosecuted this case on behalf of the United States.
U.S. Attorney Brady commended the work by the Pennsylvania Office of Attorney General, Bureau of Narcotics, Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, U.S. Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service, and Social Security Administration – Office of Inspector General, which conducted the investigation that led to the prosecution of Hoover.
The investigation leading to the filing of charges in these cases were conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General – Medicaid Fraud Control Unit, U.S. Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division, and Asset Forfeiture Unit, Department of Veterans Affairs – Office of Inspector General, Food and Drug Administration – Office of Criminal Investigations, and the Pennsylvania Bureau of Licensing.
Essex County Felon Admits to Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man previously convicted of multiple felonies admitted today to possessing a firearm and ammunition, U.S. Attorney Craig Carpenito announced.
Sharif Clarke, 38, of Irvington, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On Dec. 3, 2018, Clarke knowingly possessed a Glock .40-caliber handgun loaded with nine rounds of Remington ammunition. At that time, Clarke had previously been convicted in Essex County Superior Court of resisting and eluding arrest and of possession of a controlled substance on school property, both of which are felonies.
The charge to which Clarke pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 21, 2020.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the leadership of Special Agent in Charge Charlie J. Patterson, and the Newark Department of Public Safety, under the leadership of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Eight Pounds of Heroin Send Driver to Federal PrisonRead the Press Release
KANSAS CITY, KAN. – A California woman who was stopped in Kansas with eight pounds of heroin in her car was sentenced today to 26 months in federal prison, U.S. Attorney Stephen McAllister said.
Rufina Valdovinos-Anacleto, 24, Pomona, Calif., pleaded guilty to possession with intent to distribute heroin. The Kansas Highway Patrol stopped her car in Saline County, Kan. Troopers found more than 8.8 pounds of heroin in the car.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Lindsey Debenham for their work on the case.
Chief Executive Officer of Staten Island Technology Company Pleads Guilty to Wire FraudRead the Press Release
Earlier today, in federal court in Brooklyn, John Comito, Chief Executive Officer of AutoExec Computer Systems, Inc., pleaded guilty before United States Magistrate Judge Roanne L. Mann to wire fraud in connection with his theft of hundreds of thousands of dollars that was earmarked for the installation of internet access at 26 Catholic Elementary, Middle and High Schools in New York City. When sentenced, Comito faces up to 20 years in prison.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), and David L. Hunt, Inspector General of the Federal Communications Commission (FCC-OIG), announced the guilty plea.
“With today’s guilty plea, Comito will now be held to account for defrauding the E-rate federal program and schools in order to enrich himself at the expense of the deserving children the program was designed to serve,” stated Acting United States Attorney DuCharme. “This Office will remain vigilant in ensuring that taxpayer funds are not misappropriated but are used for their intended purpose and recipients.”
“Crimes like these make you shake your head in disbelief. This was no Robin Hood story, but a story of greed and total disregard for those in need of a quality and accessible education. Now with Mr. Comito’s guilty plea, he can spend his time paying for his theft of funds from the E-rate program and those who would have benefited from the needed telecommunication services the program provided,” stated USPIS Inspector-in-Charge Bartlett.
“The E-Rate Program was designed to assist the children in our nation’s neediest schools and we are committed to pursuing investigations into those who would corrupt this program for personal gain,” stated FCC-IG Hunt. “The result in this case demonstrates the outstanding working relationship between the FCC Office of Inspector General and the U.S. Attorney’s Office of the Eastern District of New York. We remain committed to supporting the investigation and prosecution of individuals who defraud this program. We would particularly like to thank the U.S. Postal Inspection Service, New York Division for their assistance in this matter.”
As set forth in the indictment and other court documents, the Federal Communications Commission program known as E‑rate distributes funds to schools and libraries, mostly serving economically disadvantaged children so that those institutions can acquire needed telecommunication services, internet access and related equipment. In order to obtain those funds, schools and libraries certify that they are purchasing equipment and services from a private vendor. The private vendor must, in turn, certify that it is providing the services and equipment as ordered, and is otherwise in compliance with the requirements of the program. If approved, the E-rate program defrays the cost to the schools and libraries by up to 90%.
From at least 2013 and into 2017, various Catholic elementary, middle and high schools located in the Diocese of Brooklyn contracted with AutoExec, through its CEO Comito, to provide them with telecommunications services and equipment. Comito agreed to provide specific services and equipment to the schools but AutoExec did not complete the projects as promised. At least eight schools received no items or services whatsoever. The remaining schools received partial, substandard, older or otherwise non-approved equipment and services. Nevertheless, Comito submitted false certifications to the FCC indicating that AutoExec had completed the work as promised in order to obtain E-Rate funds. From approximately February 2013 through September 2017, AutoExec received approximately $426,000 in E-rate funds, and additional funds from the schools, for these projects. By not doing the work, but keeping the money for personal expenses, Comito enriched himself at the expense of the underprivileged children the E-rate program was designed to serve.
Assistant United States Attorneys Francisco J. Navarro and Philip Pilmar are in charge of the prosecution.
The Defendant:
JOHN COMITO
Age: 69
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-593 (RRM)
Chicago Nursing Home Executives Charged with Operating Ponzi SchemeRead the Press Release
CHICAGO — The owner of a chain of nursing homes and the company’s executive vice president have been charged with fraud for allegedly orchestrating a Ponzi scheme that raised millions of dollars from investors.
ZVI FEINER was the owner and Chief Executive Officer of Skokie-based FNR Healthcare LLC, and EREZ BAVER served as FNR’s Executive Vice President and bookkeeper. From 2012 to 2017, Feiner and Baver operated a fraud scheme involving the misappropriation of funds raised through the sale of membership interests in companies that Feiner created under the FNR umbrella to purchase and sell nursing homes and assisted living facilities, according to an indictment returned in U.S. District Court in Chicago. The indictment accuses Feiner and Baver of intentionally misleading investors about the financial condition of the companies in order to fraudulently raise funds.
In reality, the payments of returns to investors were funded through a Ponzi scheme, with Feiner and Baver paying early investors with money raised from later investors, the charges allege. Feiner and Baver also used investor funds for purposes unrelated to the purchase or acquisition of the healthcare facilities, including for Feiner’s and Baver’s own personal benefit, the indictment states.
The indictment seeks forfeiture from Feiner of $13.56 million, and from Baver of $3.76 million.
The indictment charges Feiner, 50, of Chicago, with ten counts of wire fraud, and Baver, 40, of Chicago, with one count of wire fraud. Feiner has pleaded not guilty to all counts. Arraignment for Baver is set for Sept. 16, 2020, at 10:00 a.m., before U.S. District Judge Martha M. Pacold.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The U.S. Securities and Exchange Commission in Chicago provided valuable assistance. The government is represented by Assistant U.S. Attorney Kathryn Malizia.
Each count of wire fraud carries a maximum sentence of 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Cass County, Texas Attorney Guilty of Smuggling Methamphetamine into the Cass County JailRead the Press Release
TEXARKANA, Texas – A 49-year-old Cass County, Texas, man has pleaded guilty to a federal drug violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Bryan Lee Simmons pleaded guilty today to conspiring to distribute methamphetamine before U.S. Magistrate Judge Roy S. Payne, agreeing to be sentenced to four years in federal prison and not to engage in the practice of law for at least three years thereafter.
According to information presented in court, beginning in July 2019 and continuing through August 2019, Simmons agreed with others to distribute methamphetamine in the Cass County Jail. Specifically, on August 29, 2019, he entered the Cass County Jail under the guise of meeting with a client. When he entered the jail, he had methamphetamine hidden on his body, which he intended to distribute to an inmate. Simmons had smuggled drugs into the jail on at least two prior occasions. When Simmons drove to the jail that day, he was carrying a Colt MK IV 0.45 caliber pistol.
A federal grand jury returned an indictment charging Simmons with federal drug trafficking crimes on March 18, 2020. Under federal statutes, Simmons faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Texas Department of Public Safety, Texas Rangers Division, with assistance from the Cass County, Texas, District Attorney’s Office and the Cass County, Texas, Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Brother of Rabbi Yisroel Goldstein Admits to $700,000 Tax Evasion ConspiracyRead the Press Release
Assistant U. S. Attorneys Emily W. Allen (619) 546-9738, Oleksandra Johnson (619) 546-9769, and Randy Grossman (619) 546-6761
NEWS RELEASE SUMMARY – September 14, 2020
SAN DIEGO – Mendel Goldstein, the owner of a videography business based in Brooklyn, New York, pleaded guilty in federal court today to tax evasion charges relating to a long-running conspiracy with his brother, Rabbi Yisroel Goldstein.
Until around 2018, Yisroel Goldstein was the director and head rabbi at Chabad of Poway, a tax-exempt organization that the brothers used to divert Mendel Goldstein’s income and conceal more than $700,000 in earnings from the IRS. They hid the money by depositing it into Chabad accounts, then secretly funneling it back to Mendel Goldstein by writing checks to fictitious names like “Mr. Green,” “Mr. Gold,” or “Mr. Fish.”
According to his plea agreement, beginning in 2012, Mendel Goldstein agreed with his brother Yisroel Goldstein that Mendel Goldstein could deposit his freelance videography income directly into bank accounts owned by Chabad of Poway. This allowed Mendel Goldstein to avoid reporting his entire income to the IRS. In return, the brothers agreed that Yisroel Goldstein would keep 10 percent of Mendel Goldstein’s income as his fee—amounting to about $70,000. Mendel Goldstein saved approximately $155,881 in taxes he should have paid to the IRS.
As Mendel Goldstein admitted today, the conspiracy operated for several years until December 2018. At that time, Yisroel Goldstein discovered that he was under investigation for tax evasion and other crimes. He warned Mendel Goldstein about the investigation and encouraged him to conceal his tax evasion by filing delinquent tax returns.
In July 2020, Yisroel Goldstein, along with five other associates, pleaded guilty to fraud charges, admitting that he participated in a complex, years-long, multi-million dollar tax-evasion scheme and other financial deceptions involving theft of public money. Among the schemes he admitted as part of his guilty plea, Yisroel Goldstein outlined the tax avoidance conspiracy he operated with Mendel Goldstein. Yisroel Goldstein has agreed to cooperate with the ongoing investigation. He is scheduled to be sentenced by U.S. District Judge Cynthia Bashant on April 26, 2021.
“People who cheat on their taxes are cheating all honest taxpayers,” said U.S. Attorney Robert Brewer. “We will not tolerate the exploitation of non-profit and religious organizations to line the perpetrators’ pockets at society’s expense.”
“The law clearly states that income is subject to tax and must be reported, from whatever source derived, including compensation for services,” said Ryan L. Korner, Special Agent in Charge of IRS Criminal Investigation. “Mr. Mendel Goldstein admitted that he broke the law by hiding over $700,000 in income and willfully evading his taxes for over six years. His tax crime is made even more egregious because he exploited the tax-exempt status of Chabad of Poway to cheat the United States. Today’s guilty plea demonstrates that the IRS will diligently continue our important enforcement efforts despite the ongoing challenges posed by Covid-19. We will work alongside our law enforcement partners in a collective effort to enforce the law and ensure the public trust.”
“This investigation uncovered a conspiracy of crimes involving fraud, deception and evasion that used the cloak of a tax-exempt religious organization, the Chabad of Poway, for personal financial benefit,” said Suzanne Turner, Special Agent in Charge of FBI's San Diego Field Office. “The FBI takes seriously the harm that financial crimes have on our country. We are all expected to follow the rule of law, and the FBI is charged with enforcing these laws. Today, Mendel Goldstein has been reminded of this important lesson, as he acknowledged with his guilty plea.”
Judge Bashant presided over today’s arraignment and guilty plea. Mendel Goldstein is next scheduled to appear at a sentencing hearing on December 14, 2020 at 9 a.m.
NEW DEFENDANT AND SUMMARY OF NEW CHARGES
Mendel Goldstein, Case Number 20CR2772-BAS Age: 63 Brooklyn, NY
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Alexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prison
Aggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prison
Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prison
Bruce Baker, Case Number 20CR1912-BAS Age: 74 La Jolla
Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Bijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Yousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Boris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
INVESTIGATING AGENCIES
Federal Bureau of Investigation, Internal Revenue Service
Birmingham Woman Sentenced for Conspiracy to Commit Mail and Wire Fraud and Intimidating a WitnessRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced Birmingham woman on charges of conspiracy to commit mail and wire fraud and intimidating a witness, announced U.S. Attorney Prim F. Escalona and IRS-Criminal Investigations Atlanta Field Division Special Agent in Charge James Dorsey.
U.S. District Judge R. David Proctor sentenced Quincetta Yvonne Cargill, 48, to 15 years in prison for her conspiracy to commit mail and wire fraud and intimidating a witness. Cargill was also ordered to pay $1,096,668.68 in restitution. Cargill was convicted of these charges in February. Cargill represented herself, and also took the stand to testify.
“There is zero tolerance for those who commit identity theft and fraud for their own greed,” Escalona said. “Cargill’s actions were met today with just punishment.”
“Today’s sentencing of Cargill highlights how seriously IRS Criminal Investigation and the United States Attorney’s Office take the issue of identity theft,” said James E. Dorsey, Special Agent in Charge IRS Criminal Investigation Atlanta Field Office. “We will continue to pursue criminals who prey on innocent victims and we will continue to enforce our nation’s tax laws. Today’s sentencings should send a clear message to would-be criminals, you will be caught and you will be punished.”
Evidence at trial, including witness testimony, bank records, and IRS tax returns, proved that Cargill obtained the names, dates of birth, and social security numbers of individuals, told them she was submitting their information for a federal grant program, and instead caused fraudulent tax returns to be filed with their information. Cargill then directed others to open bank accounts, and used her own bank accounts, to receive tax refund checks from those fraudulently filed returns. In total, Cargill and her co-conspirators obtained more that $1 million from refunds from fraudulent tax returns. Evidence at trial also proved that Cargill attempted to intimidate a witness in her case by sending information about the witness and their potential testimony to members of a motorcycle club, in order to influence or prevent that witness from testifying at trial.
IRS-CID investigated the case. Assistant U.S. Attorney Allison Garnett and Blake Milner prosecuted 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.
Birmingham Business Owner Pleads Guilty to Wire FraudRead the Press Release
A Birmingham jewelry buyer, auctioneer and appraiser pleaded guilty today to devising and executing a scheme to obtain money by means of false material promises and representations from a client in the course of his business, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation and Chief Mark Clemence of the Birmingham Police Department.
Joseph Gregory Dumouchelle, age 58, entered a guilty plea to one count of wire fraud before the Honorable Mark A. Goldsmith, United States District Judge.
According to the facts made public at the guilty plea hearing, in late 2018, Dumouchelle, began negotiating the purchase and sale of a diamond known as the “Yellow Rose.” Dumouchelle proposed the Yellow Rose as an investment opportunity to a client, TR, by claiming that the diamond could be purchase by TR for $12,000,000 and sold for substantially more. In an effort to lull TR into believing the investment was legitimate Dumouchelle told TR he could purchase the diamond by wire transferring $12,000,000 into the seller’s account. Dumouchelle sent the wire transfer directions to TR falsely representing that the account was the seller’s. In fact, as Dumouchelle well knew and intended, the wire transfer instructions were to his own account. After TR unknowingly wired the money into Dumouchelle’s account, Dumouchelle quickly withdrew the funds and used them to pay his personal and business debts and expenses.
As part of the plea agreement with the government Dumouchelle acknowledges that there are other victims of his scheme to obtain money by means of false and fraudulent material pretenses and representation and that their losses will be included as relevant conduct in calculating his sentencing guidelines and by the court in ordering restitution.
“White collar criminals may use sophisticated methods and apparently legitimate businesses, but their crimes amount to nothing more than stealing other people’s money. Dumouchelle lured his victims into believing his false promises because he held himself out to be an expert with valuable connections that would earn the victims substantial profits, but it was all a lie,” said United States Attorney Matthew Schneider.
“Joseph Dumouchelle defrauded his investors by convincing them that he was buying and selling rare jewelry for big profits,” said Special Agent in Charge of the FBI in Michigan, Steven M. D’Antuono. “It was all a lie. Instead, Dumouchelle used the victims’ hard-earned money to help him maintain a lifestyle he could no longer afford. This case represents excellent collaboration between the Birmingham Police Department and the FBI’s Detroit Metropolitan Identity Theft and Financial Crimes Task Force.”
Chief Mark Clemence of the Birmingham Police Department stated, "Dumouchelle case is a great example of how local police agencies can work with the FBI and other federal agencies to solve complex criminal enterprises that start at the local level and have far reaching impacts throughout the country."
Sentencing has been set for January 13, 2021.
The investigation was conducted by the FBI's Detroit Metropolitan Identity Theft and Financial Crimes Task Force and the Birmingham Police Department
Beatrice Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Charles Burr, 35, of Beatrice, Nebraska, was sentenced on September 14, 2020, in Omaha, Nebraska by Senior United States District Judge Laurie Smith Camp to 17 years’ imprisonment after having previously pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine. There is no parole in the federal system. After his release from prison, Burr will serve a 10-year term of supervised release.
Agents with the United States Marshals Service, Nebraska State Patrol, Gage County Sheriff’s Department, Beatrice Police Department and Lincoln Police Department were involved in investigating substantial methamphetamine activity in the Gage County area. Their investigation led to a conspiracy involving Ashley Bartels, Candace Burr and Charles Burr from November 2016 through September 2017. In particular, Mr. Burr was responsible for more than 24 pounds of methamphetamine being distributed in the area.
Bartels was previously sentenced to 7 years’ imprisonment and Candace Burr was previously sentenced to 5 years, 9 months.
Bates City Man Charged with Illegal Firearms, Drug TraffickingRead the Press Release
Law enforcement officers seized nearly two dozen firearms from Gregg's residence.KANSAS CITY, Mo. – A Bates City, Missouri, man has been charged in federal court after law enforcement officers seized nearly two dozen firearms and illegal drugs from his residence.
Daniel Dewayne Gregg, 57, was charged in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Friday, Sept. 11. The federal criminal complaint charges Gregg with one count of conspiracy to distribute methamphetamine and one count of possessing a firearm in furtherance of drug trafficking.
According to an affidavit filed in support of the federal criminal complaint, law enforcement officers identified Gregg as a major supplier of methamphetamine trafficking following several controlled drug purchases. Officers executed a search warrant at Gregg’s residence on Friday, Sept. 11, and placed him under arrest.
Gregg told officers that he had been dealing crystal methamphetamine continuously for at least the past six months, the affidavit says. Gregg stated that he was a kilogram-level dealer of crystal methamphetamine and had sold, at a conservative minimum, at least 12 kilograms of crystal methamphetamine per month for the past six months. Gregg stated he had several large-scale customers who purchased at least a half-kilogram of methamphetamine from him at a time. Gregg said he purchased methamphetamine for $12,000 per kilogram and sold it for about $13,000 per kilogram.
Officers located a large firearms safe in the basement of Gregg’s residence that contained 22 firearms and a large amount of cash. Officers also searched Gregg’s vehicle and found 151.6 grams of methamphetamine, 436.5 grams of marijuana, and 207 prescription pills in unlabeled pill bottles. Officers also found methamphetamine inside a fanny pack. They found a loaded Smith and Wesson .40-caliber semi-automatic pistol on top of the fanny pack. Gregg told officers he had the firearm because he had been threatened by individuals wanting to do him harm, the affidavit says, and Gregg stated he had the firearm in case those individuals came to his residence to harm him.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.