Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 10 September 2020
Lexington Man Convicted of Multiple Counts of Sex and Drug Trafficking and Related Offenses, Including Witness TamperingRead the Press Release
After a 7-day trial, a federal jury in Frankfurt, Kentucky, found Prince Bixler, 41, of Lexington, Kentucky, guilty of charges related to his extensive and violent sex and drug trafficking operation that sold crack cocaine, heroin, and methamphetamines throughout the Lexington area and forced young, drug-addicted women to prostitute.
After deliberating for six and a half hours, the jury convicted the defendant of four counts of sex trafficking by force, fraud, or coercion, two counts of tampering with a witness, victim or an informant, one count of operating an unlawful prostitution business enterprise, six counts of distributing controlled substances including crack cocaine, heroin, and methamphetamine, and three counts of being a felon in possession with a firearm.
“This defendant used violence and threats of violence to create a climate of fear to trap these young women, while at the same time increasing their dependence on him by feeding them with illegal drugs to take advantage of their addictions to crack cocaine, heroin, or methamphetamine,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Human traffickers are adept at exploiting victims’ drug addictions and using coercive tactics to intimidate and compel their services. There can be no place in our society for criminal conduct like this defendant’s, and the U.S. Department of Justice will continue its to prosecute human traffickers to the fullest extent of the law, prevent them from harming others, and seek justice for the victims of these terrible crimes.”
“The hard work, dedication, and cooperation of law enforcement from state and federal agencies have made our community safer and brought some measure of justice to the victims of Prince Bixler,” said Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky. “His conduct was truly despicable, and will serve to strengthen our resolve to combat the destructive exploitation of human traffickers. I commend the members of the investigative and prosecution teams for their committed work in prosecuting this case.”
“Today’s conviction is yet another example of the FBI’s commitment to bring justice to those who exploit the most vulnerable members of our community,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “When human beings are treated as commodities, they are not only being abused physically, but emotionally and financially. FBI Louisville will continue to work closely with our law enforcement partners to identify and disrupt those who engage in human trafficking.”
“Human trafficking is a violent crime with victims whose fear of reprisal often keeps them from getting help,” stated Special Agent in Charge Shawn Morrow of the Bureau of Alcohol Tobacco and Firearms (ATF) Louisville Division. “What began as a drug and firearms investigation saved these victims from further exploitation and shut down a dangerous supplier of drugs in the Lexington area. ATF is proud of our local and federal law enforcement partnerships and the good work that resulted today.”
Evidence presented at trial, including the testimony of four victims, established that defendant Prince Bixler compelled four victims into prostitution between 2013 and March 2018 by physically assaulting them and others, and weakening the victims by worsening their addictions to crack cocaine, heroin, and methamphetamine. The defendant also sold crack cocaine, heroin, and methamphetamine throughout the Lexington area to numerous customers. The Lexington Police Department executed a search warrant at the defendant’s residence in March 2018, which led to the recovery of numerous firearms. The defendant, a convicted felon, was prohibited from possessing these and other firearms. As the investigation into the defendant’s illegal conduct continued throughout 2018 into 2019, he became aware that multiple potential witnesses were subpoenaed to testify before a federal grand jury in Lexington. The defendant threatened one witness with physical violence in an attempt to dissuade her from testifying truthfully before the grand jury. The defendant also repeatedly called and harassed another witness on the eve of her scheduled grand jury appearance in an attempt to prevent her from testifying truthfully before the grand jury.
A sentencing date has not been scheduled at this time, but it will occur before District Court Judge Robert E. Wier. The defendant faces a minimum sentence of 15 years’ imprisonment and a maximum sentence of life imprisonment, as well as mandatory restitution to the sex trafficking victims.
This case was investigated by the Lexington FBI office, the Lexington ATF office, and the Lexington Police Department. It is being prosecuted by Assistant U.S. Attorney Hydee Hawkins for the Eastern District of Kentucky and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Las Vegas Resident Pleads Guilty to Fraudulently Obtaining Nearly $1.2 Million in Benefits from the Social Security Administration and Department of Veterans AffairsRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident pleaded guilty in federal court yesterday to fraudulently obtaining nearly $1.2 million in Social Security Administration (SSA) and Department of Veterans Affairs (VA) benefits, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Javier Montano, 57, of Las Vegas, pleaded guilty to one count of theft of government funds. He is scheduled to be sentenced by U.S. District Judge Jennifer Dorsey on December 14, 2020.
According to court documents, Montano — who was the branch manager of a bank in Las Vegas — received information about two accounts with large balances and no activity:
- The first account (Account A) was held by a Las Vegas resident who was receiving SSA retirement benefits. The individual passed away in February 1997. The SSA was not notified about the individual’s death, and benefits continued to be paid into the account.
- The second account (Account B) was held by a Las Vegas resident who was receiving both SSA retirement benefits and VA benefits. The individual passed away in June 2011. Neither the SSA nor the VA was notified about the individual’s death, and benefits continued to accumulate in the account.
Through a bank computer, Montano ordered debit cards for both accounts, using them to withdraw cash — which he either spent or deposited into his personal bank account — and to make purchases for his personal use and benefit. In addition, Montano ordered and wrote checks (for his personal use) for Account B. Montano also used his authority as a branch manager to authorize a $35,000 cashier’s check from Account B. He then used the funds to buy a luxury car, which he has agreed to forfeit to the United States.
In total, between August 2015 and June 2020, Montano fraudulently obtained: (a) approximately $436,686.80 in SSA benefits to which he was not entitled; and (b) approximately $757,985.88 in VA benefits to which he was not entitled.
The statutory maximum penalty faced by Montano is 10 years in prison and a $250,000 fine. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was the product of an investigation by the Social Security Administration, Office of Inspector General, and Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Jamie Mickelson is prosecuting the case.
###
- The first account (Account A) was held by a Las Vegas resident who was receiving SSA retirement benefits. The individual passed away in February 1997. The SSA was not notified about the individual’s death, and benefits continued to be paid into the account.
KC Man Charged with Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been charged in federal court with drug trafficking and illegally possessing firearms after law enforcement officers found firearms and large quantities of illegal drugs in his vehicle at the Argosy Casino.
Dominick A. Campos, 40, was charged in a two-count complaint filed in the U.S. District Court in Kansas City, Mo., on Wednesday, Sept. 9.
The federal criminal complaint charges Campos with one count of possessing methamphetamine with the intent to distribute and one count of possessing firearms in furtherance of drug trafficking.
According to an affidavit filed in support of the federal criminal complaint, law enforcement identified Campos during an investigation into drug sales in the Kansas City metropolitan area. Campos was arrested at the Argosy Casino on Tuesday, Sept. 8.
Following his arrest, Campos told officers he had been selling approximately one kilogram of methamphetamine each week since April 2020. When officers searched Campos’s car, they found a Zastava Serbian AK-47-style 7.62x39mm rifle, a Hi-Point .45-caliber semi-automatic handgun, nearly 4.5 kilograms of methamphetamine, approximately 3.7 kilograms of marijuana, 276 grams of suspected psilocybin mushrooms, 294 1100mg THC cartridges of LA Kush, 385 grams of suspected marijuana wax, 65 500mg THC edibles, 735 suspected acetaminophen/hydrocodone pills, 52 unknown pills, two notebooks that contained records of suspected drug transactions, drug paraphernalia, and $40,240.
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 Robert M. Smith. It was investigated by the Lee’s Summit, Mo., Police Department, the Jackson County Drug Task Force, and the FBI.
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.Justice Department Updates 2015 Business Review Letter to the Institute of Electrical and Electronics EngineersRead the Press Release
The Justice Department today issued a supplement to its Feb. 2, 2015 Business Review Letter from the Antitrust Division to the Institute of Electrical and Electronics Engineers, Incorporated (IEEE) (“the 2015 Letter”). The 2015 Letter analyzed proposed revisions to the IEEE’s Patent Policy of that same year pursuant to the department’s Business Review Procedure, 28 C.F.R. § 50.6. The Antitrust Division took this step to address concerns raised publicly by industry, lawmakers, and former department and other federal government officials that the 2015 letter has been misinterpreted, and cited frequently and incorrectly, as an endorsement of the IEEE’s Patent Policy. Additionally, aspects of the 2015 letter had become outdated based on recent jurisprudential and policy developments.
“The Department’s Business Review Procedure provides enforcement transparency to companies and organizations wishing to gain valuable insight into the department’s prospective enforcement views,” said Assistant Attorney General Makan Delrahim. “The 2015 IEEE Letter, however, has proven outdated and we fear that reliance on its analysis, both in the United States and abroad, could actually harm competition and chill innovation. The division concluded this supplement is necessary to provide increased clarity, given recent developments and potential misinterpretations of the division’s enforcement views.”
Under the Department of Justice’s Business Review Procedure, an organization may submit proposed conduct to the Antitrust Division and receive a statement as to the division’s current antitrust enforcement intentions based on the information provided. In addition to providing assurance to the requesting party, the Antitrust Division’s responses often explain the application of complex areas of antitrust law, such as patent pooling. The department, however, reserves the right to challenge the proposed conduct under the antitrust laws if its actual operation proves to be anticompetitive in purpose or effect. The department’s action today does not affect the Business Review Procedure.
The Antitrust Division’s supplemental letter explains that it is meant to align the now outdated analysis in the 2015 letter with current U.S. law and policy, which has evolved in important ways over the last five years in relation to the licensing of standard essential patents, and the governance of standards development organizations. The supplemental letter encourages IEEE to consider the supplementary letter and all applicable facts when assessing whether an update to the IEEE’s Patent Policy is warranted. The supplemental letter is available on Antitrust Division’s website, along with the 2015 letter and IEEE’s original business review request.
Justice Department Settles with Florida Towing Company it Alleges Illegally Sold or Scrapped Servicemembers’ VehiclesRead the Press Release
The Justice Department today reached an agreement with ASAP Towing & Storage Company (“ASAP”) in Jacksonville, Florida, to resolve allegations that ASAP violated a federal law, the Servicemembers Civil Relief Act (“SCRA”), by auctioning off or otherwise disposing of cars owned by protected servicemembers without first obtaining court orders.
Under the agreement, ASAP must pay up to $99,500 to compensate servicemembers whose cars were unlawfully auctioned off while they were in military service. ASAP must also pay a $20,000 civil penalty to the U.S. Treasury. The agreement, which is subject to court approval, resolves a suit filed today by the department in the U.S. District Court for the Middle District of Florida.
“This case began with a member of the U.S. Navy who returned home from an overseas deployment in service to his country, only to find that a towing company had auctioned off his sole means of transportation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department must protect his rights just as he is protecting ours. We appreciate that the company has worked cooperatively with us to reach a settlement that will compensate all of the servicemembers whose vehicles were taken from them.”
“I am pleased that we were able to protect our servicemembers who are serving overseas by reaching a settlement with the ASAP Towing & Storage Company,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “When servicemembers are deployed, and in harm’s way, fighting for our country, they should be able to find their personal vehicles where they left them when they return home.”
The department launched its investigation after becoming aware of a complaint by a U.S. Navy Lieutenant Junior Grade, alleging that ASAP had towed and auctioned his 2005 PT Cruiser without obtaining the court order required by the SCRA, while he was deployed aboard a naval submarine. The department’s complaint alleges that the Lieutenant’s vehicle had a military installation parking decal and contained “welcome aboard” documents for the naval submarine.
The department’s investigation revealed that between 2013 and 2020, ASAP auctioned multiple other vehicles registered to SCRA-protected servicemembers without obtaining the required court orders. The settlement requires ASAP to adopt new procedures to investigate the military status of any registered owner prior to auctioning a vehicle. ASAP will also be required to obtain a court order or a valid SCRA waiver prior to auctioning a vehicle owned by a protected servicemember.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/.
Judge sentences man on drug charges, assault on federal law enforcement officerRead the Press Release
ST. LOUIS – Brian Lawrence, 33, of St. Louis County, was sentenced yesterday to 70 months imprisonment by United States District Judge Rodney W. Sippel after pleading guilty to his involvement in conspiring to distribute and possess with the intent to distribute cocaine and to assaulting a federal law enforcement officer.
According to the plea agreement, in April 2019, Homeland Security Investigations (HSI) agents with the Department of Homeland Security in El Paso, Texas, posing undercover as suppliers of illegal drugs, made contact with co-defendant Terrell Reid, who was seeking to purchase 10 kilograms of cocaine for further distribution in the St. Louis area. The undercover agents agreed to sell the cocaine to Reid at a price of $29,000 per kilogram and that they would bring the cocaine to St. Louis.
Undercover agents agreed to meet Reid at a Best Western hotel in St. Charles, Missouri, on April 16, 2019, to deliver the cocaine. Prior to the April 16, 2019, meeting, Reid had brokered a deal with several individuals looking to purchase the cocaine in the St. Louis area, including Lawrence and co-defendant Bobby Robinson. Lawrence agreed to purchase one kilogram of cocaine through Reid, for $30,500, which he then intended to distribute to others.
On April 16, 2019, Lawrence met with Reid in the parking lot of the Best Western, where undercover agents were posing as suppliers of cocaine and additional HSI agents were conducting surveillance. After Reid met with the undercover agents and examined the cocaine inside the hotel, Reid returned to the parking lot, where Lawrence provided Reid with $30,500 in cash to purchase the kilogram of cocaine on Lawrence’s behalf. Reid also collected $61,000 in cash from Robinson in the parking lot to purchase two kilograms of cocaine. Reid then took the money into the hotel and provided it to the undercover agents, who agreed to deliver the cocaine to Reid’s customers waiting outside.
As delivery of the cocaine was made to Robinson, HSI agents arrested him. Observing the arrest of Robinson, Lawrence attempted to flee in his vehicle. While speeding off the Best Western parking lot to escape, Lawrence drove directly at an HSI agent who trying to stop him. Fearing for his life and the life of another agent in Lawrence’s path, the agent fired his firearm at Lawrence’s car, striking the hood of the vehicle.
Both co-defendants Reid and Robinson are awaiting trial, and are presumed innocent of the charges.
Homeland Security Investigations is investigating this case with assistance from the St. Charles Police Department. Assistant United States Attorney Lisa Yemm is handling this case for the U.S. Attorney’s Office.
Judge sentences Wentzville man for conspiracy to possess with intent to distribute fentanylRead the Press Release
ST. LOUIS – United States District Judge Audrey G. Fleissig sentenced Charles T. McRoberts to 120 months in prison. The 50-year-old Wentzville resident was charged with possession with intent to distribute 400 grams or more of fentanyl.
On July 12, 2019, McRoberts and co-defendant Gernell Armour possessed with intent to distribute approximately one kilogram of fentanyl. The day before, St. Louis Police Officers inspected packages for suspected illegal narcotics at the United Parcel Service Shipment Sorting Center. During the inspection, investigators discovered a suspicious package addressed to a person in St. Louis sent from Las Vegas, Nevada. investigators searched the sender’s name and address and found the information to be a fake company.
Believing the package to contain illegal narcotics, investigators used a K-9 to positively identify the presence of illegal narcotics within the package. The investigators obtained a warrant, opened the package and found clothing, a light bulb and vacuum-sealed bags containing suspected heroin/fentanyl.
A decoy package was created by investigators and a search warrant was obtained for the residence where the package was addressed. On July 12, 2019 a UPS employee attempted delivery of the decoy package. A person within the residence accepted the package, but later denied knowing its contents. Investigators observed McRoberts inside the residence during the decoy package delivery and watched him leave. McRoberts returned later to pick-up the decoy package, at which time he was taken into custody.
Co-defendant Gernell Armour is awaiting trial and presumed innocent of the charges.
The United States Drug Enforcement Administration St. Louis Metro Police Department investigated this case. Assistant United States Attorney Nauman Wadalawala handled this case for the U.S. Attorney’s Office.
Josephine County Man Sentenced to Federal Prison for Threatening Mass Shooting at YouTube HeadquartersRead the Press Release
MEDFORD, Ore.—William Gregory Douglas, 38, of Cave Junction, Oregon, was sentenced to 16 months in federal prison today and three years’ supervised release for threatening to shoot YouTube employees at the company’s San Bruno, California headquarters after his account was removed for violating the video-sharing platform’s terms of service.
According to court documents, sometime on or before August 22, 2018, YouTube removed Douglas’ video channel for violating the platform’s terms of service. In response, on August 23, 2018, Douglas posted five tweets threatening violence against YouTube employees. In one of the tweets, Douglas threatened a “bigger mass casualty” event, appearing to reference a prior shooting incident at YouTube’s headquarters in April 2018 that injured three employees.
Later, on September 8, 2018, Douglas posted a tweet stating “Hey why do you guys keep ignoring me would it be better if I leave you with no other options like your [sic] leaving me…I’m beyond pissed…I wonder how I should deal with this frustration.” Finally, on September 17, 2018, Douglas tweeted a direct threat at one of YouTube’s senior leaders saying “…I’m coming for you today #pray.”
On October 4, 2018, a federal grand jury in Medford, Oregon returned a one-count indictment charging Douglas with cyberstalking. Later, on January 14, 2020, he was charged by criminal information with one count of making interstate communications with the intent to extort. On February 20, 2020, Douglas pleaded guilty to the latter charge.
This case was investigated by the FBI and prosecuted by Judith R. Harper, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov. For immediate threats to life and safety, please call 9-1-1.
Jackson, Georgia Meth Dealer Enters Guilty Plea Following Undercover StingRead the Press Release
MACON, Ga. – A Middle Georgia drug dealer, arrested following a two-month undercover operation in Butts County, has pleaded guilty for distribution of methamphetamine, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Darian Berry, 40, of Jackson, Georgia pleaded guilty to one count distribution of methamphetamine before U.S. District Judge Tripp Self on Tuesday, September 8. Berry faces a maximum 20 years in prison, a $1,000,000 fine and three years of supervised release. There is no parole in the federal system.
“Law enforcement stopped a well-known meth dealer in Butts County. The defendant is facing a steep prison sentence without parole for pushing this poison in Middle Georgia,” said Charlie Peeler, the U.S. Attorney. “I want to thank our law enforcement partners with Butts County S.O. and DEA for their continued efforts to rid our communities of methamphetamine and the destruction it causes.”
“The success of this investigation speaks to the collaborative law enforcement efforts in targeting and dismantling this drug trafficker’s methamphetamine distribution ring” said the Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division Robert J. Murphy. “This defendant profited by spreading this toxic drug in Butts County, and DEA is committed to serving and protecting this community. Strong law enforcement partnerships underscore the power of combined forces and demonstrate the collective impact on the war against meth.”
“I want to commend my agents, DEA and the United States Attorney’s Office for bringing this dealer to justice. We will continue to pursue those spreading poison in our community until justice is served. This type of result is what happens when agencies work together,” said Butts County Sheriff Gary Long.
The defendant admitted to selling methamphetamine to a Confidential Informant (CI) on five separate occasions in Butts County between July and August 2018. Officers with the Butts County Sheriff’s Office conducted the controlled, recorded buys. Berry sold a total of 16.368 grams of methamphetamine.
The case was investigated by the Butts County Sheriff’s Office and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney William R. Keyes is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Iron and Steel Company Owner Admits to Pocketing Employees Federal Withholding TaxesRead the Press Release
PROVIDENCE – The owner of two Rhode Island businesses that supply steel and iron to construction sites today admitted that over a period of two years he intentionally failed to turn over to the IRS in excess of $570,000 in employment taxes withheld from his employees. Instead, he admitted, he used the funds to finance personal expenditures such as rent payments on a luxury home and online dating services.
Steven M. Allard, 58, of North Scituate, owner and operator of BR Steel Corporation in Burrillville and Greystone Iron Corporation in Smithfield, admitted to the court that from at least 2017 through 2018, he failed to turn over to the IRS federal employment taxes and FICA payments withheld from his employees, totaling in excess of $570,000. According to court documents, Allard used the money to pay for personal expenditures such as the purchase of over $216,000 in “credits” to an online dating website, RussianBrides.com, and $93,000 in rent payments for a luxury home in Scituate.
BR Steel and Greystone Iron are steel erection companies specializing in major construction projects such as shopping malls and school buildings. BR Steel employs between 45 and 55 employees. Greystone Iron employs between 75 and 85 employees.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Allard pleaded guilty to willful failure to collect or pay over taxes, announced United States Attorney Aaron L. Weisman, Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Joleen Simpson, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Carol S. Hamilton, Regional Director, U.S. Department of Labor Employee Benefits Security Administration.
Today’s conviction marks the third conviction of Allard in federal court in Providence.
In 2009 Allard pleaded guilty to tax evasion and bankruptcy fraud, and was sentenced to 30 months in federal prison. Allard admitted to the court that from March 2005 to July 2006, he diverted for his and his wife’s personal use approximately $1.6 million dollars due the IRS in employment taxes. He also admitted to making false statements about real estate holdings in a bankruptcy filing in 2005.
Prior to his 2009 conviction, Allard was found guilty by a jury at trial of accepting kickbacks from public employees, and was sentenced to 10 months in federal prison.
Steven Allard is scheduled to be sentenced in this latest matter on November 30, 2020. Willful failure to collect or pay over taxes is punishable by statutory penalties of up to 5 years in federal prison, 3 years’ supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The matter was investigated by Internal Revenue Service Criminal Investigation, FBI, and U.S. Department of Labor Employee Benefits Security Administration.
###
Inmate at United States Penitentiary at Canaan Pleads Guilty to Assaulting Another Inmate with A Dangerous WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Caraballo, age 37, formerly of Vermont, pleaded guilty on September 4, 2020, before U.S. District Court Judge Robert D. Mariani, to assault with a dangerous weapon and possession of contraband in prison.
According to United States Attorney David J. Freed, Caraballo, an inmate at USP Canaan, admitted to assaulting another inmate with a sharpened piece of metal commonly known as a “shank.” Caraballo also admitted to possessing the metal “shank,” which is contraband in a federal prison. The incident occurred in February 2017.
Judge Mariani ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * *
Illegal Alien Sentenced for Producing Child PornographyRead the Press Release
LAFAYETTE, La. – Pedro Aguirre-Nunez, 39, a Duson, Louisiana resident, was sentenced in United States District Court for Production of Child Pornography, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge S. Maurice Hicks, Jr. sentenced Aguirre-Nunez to spend 224 months (18 years, 8 months) in prison, followed by 5 years of supervised release.
On March 29, 2019, Lafayette Parish Sheriff’s Office deputies responded to a report of indecent behavior with a juvenile at a residence in Duson, Louisiana. Law enforcement officers learned that videos of Aguirre-Nunez molesting a minor girl had been discovered on the cloud account associated with his phone. Officers obtained a search warrant for the cloud account and found three videos. The videos were taken on a smart phone and synched with the cloud account associated with that phone.
A forensic review determined that the videos had been taken a few months prior to the discovery of them. All three of the videos were taken while the minor child was asleep. On October 17, 2019, Aguirre-Nunez admitted that he did in fact produce the visual depictions of conduct with the minor child by using his smart phone and pled guilty to Production of Child Pornography in federal court.
Aguirre-Nunez is a citizen and national of Mexico and did not have legal status in the United States on the dates these crimes were committed.
The U.S. Department of Homeland Security-Homeland Security Investigations and the Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
# # #
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.
Huntersville, N.C. Man Is Sentenced to Prison for Trafficking Narcotics on the Dark Web Using Bitcoin ATMs & Virtual WalletsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell, sentenced Anthony Blane Byrnes, 19, of Huntersville, N.C., to 71 months in prison on drug charges, for trafficking narcotics he purchased on the dark web using cryptocurrency, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Byrnes was also ordered to serve four years of supervised release.
According to the Criminal Information to which Byrnes pleaded guilty, other documents filed in this case and statements made in court, Byrnes conspired with a regional Drug Trafficking Organization (DTO) to distribute narcotics on the Dark Web. In August 2019, law enforcement intercepted a mail parcel from Slovenia addressed to Byrnes, containing suspected narcotics. On or about August 7, 2019, law enforcement conducted a controlled delivery of this parcel at Byrnes’s Huntersville, NC residence. Law enforcement observed Byrnes gathering the parcel and entering his residence. Subsequently, law enforcement executed a search warrant at the residence and seized numerous narcotics and contraband, including LSD, Psilocin, DMT, MDMA/Ecstasy, among other narcotics and paraphernalia. Law enforcement also recovered two firearms from the residence. Court documents demonstrate Byrnes had a previous infraction in April 2019, wherein law enforcement seized additional narcotics and a firearm. In total, three firearms and approximately $13,800 (USD) were recovered from Byrnes’ residence over the course of the investigation.
According to court documents, Byrnes purchased narcotics on the Dark Net Marketplace (DNM) “Empire Market.” Byrnes paid for the drugs using Bitcoin cryptocurrency, stored in VC wallets and used Bitcoin ATM machines in the greater Charlotte area to facilitate drug transactions, converting drug proceeds into virtual currency (VC), and arranging drug shipments for the DTO.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Postal Inspection Service for leading the investigation, and thanked the Drug Enforcement Administration, ICE’s Homeland Security Investigations, the U.S.Customs and Border Protection, and the Huntersville (NC) Police Department for their invaluable assistance.
Assistant United States Attorneys Sanjeev Bhasker and Seth Johnson, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Grand jury indicts man for carjacking causing serious bodily injury, two men for being felons in possession of a firearmRead the Press Release
ST. LOUIS, MO – A federal grand jury indicted Brandon Vandoren for carjacking causing serious bodily injury and for being a felon in possession of a firearm. The 23 year old is a resident of Mehlville. The grand jury also indicted Matthew Carver for being a felon in possession of a firearm. He is a 27-year-old St. Louis resident.
According to court documents, on May 20, 2020, Vandoren and Carver stole a vehicle at the MotoMart in Jefferson County. Vandoren got into the victim’s vehicle while Carver remained in the vehicle he and Vandoren arrived in at the MotoMart. As Vandoren and Carver began to drive away, the victim left from inside the MotoMart and chased the defendants on foot. Vandoren then ran over the victim, nearly killing him. Both Vandoren and Carver left the scene, leading police officers on a high-speed chase. Law enforcement took Carver into custody after Carver crashed the vehicle. Law enforcement arrested Vandoren the next day, in a hotel room, and found him with a firearm and narcotics. Facebook LIVE videos, from earlier in the day of the carjacking, show Vandoren and Carver each flashing what appears to be the same firearm discovered during Vandoren’s subsequent arrest.
Vandoren faces a maximum term of 25 years in prison if convicted of carjacking resulting in serious bodily injury. Both Vandoren and Carver face a maximum term of imprisonment of 10 years if convicted for being felons in possession of a firearm. Both defendants are presumed innocent.
The Missouri State Highway Patrol and Jefferson County Sheriff’s Office investigated this case. Assistant U.S. Attorney Cassandra Wiemken is handling the case for the U.S. Attorney's Office.
Grand jury indicts former Executive Director of Kirksville-based Victim Support Services for mail fraudRead the Press Release
ST. LOUIS, MO – On August 20, 2020, a federal grand jury indicted Kimberly LeBaron on three counts of mail fraud. The 61 year old is a resident of Kirksville. LeBaron appeared, today, in front of U.S. Magistrate Judge Nannette A. Baker for her initial appearance/arraignment.
According to the indictment, between January 2016 and June 30, 2018, LeBaron, Executive Director of Kirksville-based Victim Support Services (VSS), submitted several false and fraudulent invoices for funding under a Department of Justice Victims of Crime Administrators grant. VSS provided services, including shelter and advocacy, to people experiencing domestic violence.
The invoices submitted by LeBaron contained false information, specifically inflated numbers related to shelter stays. In many cases, LeBaron and VSS turned away clients claiming the shelter was full. In fact, the shelter was often not full and sometimes vacant. As a result, of LeBaron’s fraudulent actions, the DOJ paid approximately $173,000 in grant funds to VSS.
For each count of wire fraud, LeBaron faces a maximum punishment of 20 years of imprisonment and a fine of up to $250,000. LeBaron is presumed innocent until proven guilty.
The Department of Justice and Office of Inspector General investigated this case. Assistant U.S. Attorney Anthony Box is handling the case.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments yesterday. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Merrill Man Charged with Environmental, Fraud & Tax Crimes
Kevin Shibilski, 59, Merrill, Wisconsin, is charged with storing and disposing of hazardous waste without a permit, in his capacity as the Chief Executive Officer of 5R Processors, Ltd., a Wisconsin company involved in the recycling of electronic waste from corporate and institutional clients and from manufacturers that participate in a manufacture-take-back program. The indictment alleges that Shibilski illegally stored and disposed of broken and crushed glass from cathode ray tubes that was hazardous due to lead-toxicity at facilities in Wisconsin and Tennessee.
The indictment also charges Shibilski with eight counts of wire fraud by taking in over $5.76 million from clients but failing to recycle over 8.3 million pounds of their crushed glass from cathode ray tubes that had lead in them and instead stockpiling it at 5R Processors’ warehouses in Wisconsin and Tennessee. The final count of the indictment alleges that Shibilski conspired to defraud the United States by the nonpayment and evasion of more than $850,000 in employment and income taxes for 5R Processors and its nominee entities.
In related cases, Thomas Drake, 80, Jasper, Georgia; James Moss, 61, Ladysmith, Wisconsin; and Bonnie Dennee, 66, Phillips, Wisconsin, who all held positions with 5R Processors, have been charged with conspiring to store and transport hazardous waste without the required permits. Moss also has been charged with conspiring to evade the payment of employment taxes and income taxes to the Internal Revenue Service. Drake, Moss, and Dennee have entered into plea agreements with the United States. Moss pleaded guilty on September 1, and his sentencing is scheduled for November 13. Plea hearings for Drake and Dennee have not taken place.
If convicted, Shibilski faces a maximum penalty of five years in federal prison on the charge of storing and disposing of hazardous waste without a permit, 20 years on each wire fraud charge, and five years on the tax charge.
The charges against Shibilski are the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division; IRS Criminal Investigation; and the Wisconsin Department of Natural Resources, Bureau of Law Enforcement. Assistant U.S. Attorney Daniel J. Graber and James Cha with EPA Regional Criminal Enforcement Counsel are handling the prosecution.
Madison Man Charged with Armed Robbery & Gun Crimes
Nathaniel W. Homestead, 29, Madison, Wisconsin, is charged with the armed robbery of a Madison business. The indictment alleges that on July 19, 2020, Homestead robbed the Ground Zero Coffee Shop on Williamson Street and that during the robbery he displayed a firearm. The indictment also charges him with possessing a loaded firearm during that crime of violence, and being a felon in possession of a loaded 9mm handgun.
If convicted, Homestead faces a maximum penalty of 20 years in federal prison on the armed robbery charge, a mandatory minimum penalty of five years on the charge of possessing a firearm during a crime of violence, and a maximum of 10 years on the charge of being a felon in possession of a firearm. Federal law requires that any sentence imposed on the charge of possessing a firearm during a crime of violence be served consecutive to any other sentence imposed.
The charges against Homestead are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven P. Anderson is handling the prosecution.
Madison Man Charged with Gun & Drug Crimes
Keefer Goodman, 28, Madison, Wisconsin, is charged with being a felon in possession of a firearm and with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed a loaded 9mm pistol and the methamphetamine on July 21, 2020.
If convicted, Goodman faces a maximum penalty of 10 years in federal prison on the charge of being a felon in possession of a firearm, and a mandatory minimum penalty of five years and a maximum of 40 years on the drug charge. The charges against him are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Madison Man Charged with Gun Crime & Possessing Marijuana for Distribution
Ramogi Carr, Jr., 19, Madison, Wisconsin, is charged with being a felon in possession of a firearm and with possessing marijuana with the intent to distribute. The indictment alleges that on February 18, 2020, he possessed a loaded 9mm pistol and the marijuana.
If convicted, Carr faces a maximum penalty of 10 years in federal prison on the charge of being a felon in possession of a firearm, and a maximum penalty of five years on the marijuana charge. The charges against him are the result of an investigation by the Verona Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Madison Man Charged with Illegally Possessing Firearm
Corvalis Stewart, 33, Madison, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on August 20, 2020, he possessed a loaded .40 caliber firearm.
If convicted, Stewart faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Dane County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Sun Prairie Man Charged with Being a Felon In Possession of Ammunition
Marvin Coates, 33, Sun Prairie, Wisconsin, is charged with being a felon in possession of ammunition. The indictment alleges that on June 23, 2019, he possessed .40 caliber ammunition.
If convicted, Coates faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Dane County Sheriff’s Office. Assistant U.S. Attorney Chadwick M. Elgersma is handling the investigation.
The indictments charging Homestead, Goodman, Carr, Stewart, and Coates have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Eau Claire Man Charged with Methamphetamine Distribution
Zachary K. Tepsa, 33, Eau Claire, Wisconsin, is charged with distributing five grams or more of methamphetamine. The indictment alleges that he distributed the methamphetamine on March 12, 2019.
If convicted, Tepsa faces a mandatory minimum sentence of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the West Central Drug Task Force, Chippewa County Sheriff’s Office, Eau Claire County Sheriff’s Office, Eau Claire Police Department, Eau Claire County District Attorney’s Office, and Drug Enforcement Administration. Assistant U.S. Attorney Steven P. Anderson is handling the prosecution.
Gang Member Involved in Vehicle Shoot-Out Sentenced to Prison for Firearm PossessionRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 70 months in prison for being a felon in possession of a firearm.
“This case shows the horrific violence that organized criminal gangs threaten our communities with,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Depravity and violence follow gang activity. It’s our innocent by-standing citizens that are put most at-risk by these activities. I would like to thank our local, state, and federal law enforcement partners for their help in this case and in protecting our community members from the threat of gang violence.”
According to court documents, Tamarrea Deyon Walker, 25, is a member of the Suffolk-based criminal street gang “YNGI.” In April 2019, Walker and a fellow gang member brandished firearms and shot at two rival gang members, who fled to their vehicle and drove away. Walker and four other YNGI members piled into their own car and gave chase. The two groups shot at each other while the cars were moving. The driver of Walker’s car was shot in the chest with a rifle, which caused him to slam on the gas, speed through an intersection, and crash head-on into another vehicle.
“Reckless actions by violent criminals are a dangerous threat to our community,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office. “The only way to defeat this type of gang violence is for law enforcement to work together as one team, and the Tidewater Violent Crimes Task Force represents the commitment of law enforcement partners at every level to target the gangs and criminal enterprises that drive violent crime in Hampton Roads.”
Police officers arrived at the accident scene soon after and saw Walker rummaging around the vehicle and an extended 9mm magazine lying on the ground by his feet. The officers also recovered from the wreckage more than 30 grams of heroin and four firearms, including a Masterpiece Arms 9mm handgun. A photo of Walker holding the Masterpiece Arms handgun, loaded with that same extended magazine, was posted on his Instagram account just days earlier.
“This case serves as a stark reminder of the violence and fear caused by criminal street gangs in our communities,” said Alfred Chandler, Chief of Police for the City of Suffolk. “This conviction is also a reminder of the effectiveness of hard work and relentless investigation and teamwork between federal, state, and local law enforcement.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Alfred Chandler, Chief of Police for the City of Suffolk, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-187.
Fraud Alert: Scammers Claiming to be with DOJ, Preying on ElderlyRead the Press Release
Memphis, TN – The Office of Justice Programs’ Office for Victims of Crime (OVC) has received multiple reports that individuals claiming to represent the Department of Justice are calling members of the public as part of an imposter scam. The Department strongly encourages the public to remain vigilant and not to provide personal information during these calls, which appear to target the elderly.
Reports to the National Elder Fraud Hotline indicate these scammers falsely represent themselves as Department of Justice investigators or employees and attempt to obtain personal information from the call recipient, or they leave a voicemail with a return phone number. The return phone number directs users to a recorded menu that matches the recorded menu for the department’s main phone number. Eventually, the user reaches an "operator" who steers the user to someone claiming to be an investigator. That "investigator" then attempts to gain the user’s personal information.
"Phone scams are an ugly and pervasive act of victimization. The scams being reported to our National Elder Fraud Hotline are especially heinous because they show the perpetrators are preying upon one of the most vulnerable segments of our society – the elderly," said OVC Director Jessica Hart. "As if this were not despicable enough, the scammers do so posing as employees of the Justice Department, usurping public trust in the agency that serves as a bastion of fairness and lawfulness while these scams exploit the elderly for financial gain. The first step to identifying these criminals is to have their crimes reported."
U.S. Attorney D. Michael Dunavant said, "Those who target the elderly will receive the full attention of our office and law enforcement officials in West Tennessee. We will work with our senior citizens to empower them with knowledge and awareness so that they can defend themselves from these fraudulent phone scams."
Those who receive these calls are encouraged not to provide personal information and to report these scams to the FTC via their website or by calling 877–FTC–HELP (877-382-4357). Fraud can also be reported to the FBI for law enforcement action at https://www.justice.gov/criminal-fraud/report-fraud.
The National Elder Fraud Hotline is a resource created by OVC for people to report fraud against anyone age 60 or older. Reporting certain financial losses due to fraud as soon as possible, and within the first 2–3 days, can increase the likelihood of recovering losses. The hotline is open seven days a week. For more information about the hotline, please visit https://stopelderfraud.ovc.ojp.gov/.
###
Fort Myers Woman Indicted for Wire Fraud and U.S. Department of Education Financial Aid FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Elaine M. Levidow (60, Fort Myers) with 10 counts of wire fraud and one count of Federal Student Assistance fraud. If convicted, Levidow faces a maximum penalty of 20 years in federal prison for each wire fraud count and up to 5 years in federal prison for the financial aid fraud count.
According to the indictment, Levidow owned and operated the Training Domain, an educational institution in Fort Myers that held itself out as offering business software application courses to improve the employability skills of individuals. Training Domain qualified to receive U.S. Department of Education Title IV Federal Student Assistance (FSA) on behalf of students. During the approximate time period of July 2017 through April 2019, Levidow solicited students to enroll in her school and assisted them in applying for financial aid in the form of Pell Grants and Direct Student Loans. Rather than using the loan and grant proceeds to hold classes at the Training Domain and for other educational expenses, Levidow kept the FSA funds and split them with students. The amount of the fraud was approximately $109,323. The indictment also alleges that Levidow created false and fraudulent high school diplomas and GEDs for students that she provided to an auditor even though she knew that the students had either not attended the underlying high school, had not graduated, or had not received a GED.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Education Office of Inspector General. It will be prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former task force officer charged with cocaine distributionRead the Press Release
MCALLEN, Texas - A 31-year-old former officer and resident of Maurepas, Louisiana, has been arrested in McAllen for possession with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - San Antonio.
Johnny Jacob Domingue is set to make his initial appearance before U.S. Magistrate Judge Juan F. Alanis in McAllen at 9 a.m. today. Authorities had taken Domingue into custody yesterday afternoon upon the filing of a criminal complaint.
According to the charges, Domingue had been a federal task force officer for the Drug Enforcement Administration in Louisiana.
The complaint alleges that beginning in late July and continuing through September 2020, Domingue negotiated the purchase of four kilograms of cocaine, agreeing to pay approximately $100,000. He also negotiated the transportation of another four kilograms of cocaine, according to the charges.
On Sept. 9, Domingue allegedly traveled to Edinburg and picked up a vehicle loaded with eight kilograms of cocaine concealed inside a secret compartment. The complaint further alleges Domingue intended to transport the vehicle to Houston and on to Louisiana to further distribute the cocaine to buyers.
If convicted, Domingue faces a minimum of 10 years and up to life in prison and a possible $10 million maximum fine.
HSI is leading the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Blue Shame which has resulted in the arrest and prosecution of 20 individuals including seven law enforcement officers. Police departments in McAllen, Mission, Alamo and Alton; Hidalgo County Sheriff’s Office, Texas Attorney General’s Office and Customs and Border Protection’s Air and Marine units have all provided assistance.
Assistant U.S. Attorneys Anibal Alaniz and Casey N. MacDonald are prosecuting the case.
This case is the result of the ongoing OCDETF efforts – a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal OCDETF mission is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Senate Employee Sentenced for His Participation in A Scheme to Defraud the GovernmentRead the Press Release
SAN JUAN, P.R. – United States District Court Judge Francisco A. Besosa sentenced Ángel Figueroa-Cruz to 10 months in prison followed by a supervised release term of three years and 150 hours of community service for his participation in a scheme to defraud the government, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Figueroa-Cruz pleaded guilty on October 15, 2019 to one count of conspiracy to commit wire fraud.
On May 28, 2019, a federal grand jury returned an 18-count indictment charging former Senate employee Ángel Figueroa-Cruz, along with two former contractors Chrystal Robles-Báez and Isoel Sánchez-Santiago with conspiracy to commit wire fraud, 10 substantive counts of wire fraud, intentional misapplication of property by an agent of an organization receiving federal funds, aggravated identity theft, and money laundering.
Chrystal Robles-Báez and Isoel Sánchez-Santiago pleaded guilty in August 2019 and were sentenced on February 6, 2020, to four and ten months of imprisonment, respectively.
According to the allegations in the indictment, from in or about 2016 to June 2018, defendants Chrystal Robles-Báez, Isoel Sánchez-Santiago, and Ángel Figueroa-Cruz engaged in a scheme to defraud money and property from the government of Puerto Rico by means of materially false and fraudulent representations and promises. The defendants sought to accomplish their scheme to defraud by billing, approving, and collecting for contractual professional services work that was either not completed, or was performed in contravention to the explicit terms of the contracts.
As alleged in the indictment, the defendants participated in lawful electoral campaign activities for candidates to elected offices during the 2016 Puerto Rico general elections. After the general elections in late 2016, the defendants began to explore employment opportunities with the Government of Puerto Rico, including contracts for professional services. On January 1, 2017, defendant Chrystal Robles-Báez incorporated Global Instant Consulting Group, Inc. (“GICG”). The purpose of the corporation was to provide administrative and political counseling, workshops and public relations, and consulting. On the same day, defendant Isoel Sánchez-Santiago incorporated International Legislative and Governmental Consulting Group, Inc. (ILGCG). The purpose of the corporation was to provide governmental administrative consulting, creation of proposals, offering of workshops, and legislative process and parliamentary procedures.
In the process of establishing the corporations, defendant Robles-Báez solicited through interstate wire communications necessary documentation from various departments, agencies, and dependencies of the Government of Puerto Rico, including, but not limited to: (a) the Department of State; (b) the Treasury Department; and (c) the Police of Puerto Rico. Eventually, the defendants entered into professional services contracts with the Government of Puerto Rico. Specifically, the Puerto Rico Senate and the Puerto Rico House of Representatives.
According to the indictment, defendant Robles-Báez, on numerous occasions, certified and requested payments indicating that she had attended the Office of Governmental Affairs to provide professional services as detailed in the two GICG contracts, when in fact on those days the defendant did not attend the Office of Governmental Affairs or provide professional services. Additionally, defendants Robles-Báez and Sánchez-Santiago utilized the personal identifying information of numerous individuals, without their knowledge or consent, in order to give the impression that defendant Robles-Báez, as an “Intergovernmental Coordinator” on behalf of GICG, had provided those individuals with professional services, when in fact no such services were ever requested by those individuals.
Furthermore, defendant Robles-Báez utilized the assistance, contacts, and services of defendant Sánchez-Santiago in order to fraudulently justify work allegedly completed under the GICG contracts. Defendant Ángel Figueroa-Cruz, who was the Executive Director of the Office of Governmental Affairs in the Puerto Rico Senate, falsely certified as correct, the information contained in the bills/invoices for payment submitted by defendant Robles-Báez as an “Intergovernmental Coordinator” on behalf of GICG in support of payment. Defendants Robles-Báez and Sánchez- Santiago divided the proceeds of the conspiracy and scheme to defraud.
The case was prosecuted by Assistant United States Attorney and Criminal Division Chief Timothy Henwood. The case was investigated by the FBI and was referred by the Puerto Rico Department of Justice.
# # #
Former Driscoll’s Executive Sentenced to over Two Years in Prison for EmbezzlementRead the Press Release
SAN JOSE– Marc Marier was sentenced to 29 months in prison and ordered to pay over $1.49 million in restitution for wire fraud and money laundering, announced United States Attorney David L. Anderson and FBI Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Lucy Koh, U.S. District Judge.
Marier, 42, of Naperville, Illinois, pleaded guilty to the charges on June 10, 2020. Driscoll’s, a company headquartered in Watsonville, Calif., that sells berries, hired Marier as its Director of Real Estate and Workplace Services in October 2017. Driscoll’s paid Marier to relocate from Illinois to California to accept the position.
According to the plea agreement and the government’s sentencing memorandum, about a month into his employment, Marier sought to clarify the scope of his invoice approval authority. Marier was informed that he had the authority to approve invoices of up to $250,000 by virtue of his director-level status at Driscoll’s. Within weeks, Marier started abusing that authority by submitting and approving false invoices from a fake business called TNC US Inc. and routing the payments to a shell J.P. Morgan Chase bank account that he created and maintained for TNC. TNC had no bona fide assets, no employees, and no business. Marier used TNC solely to further his scheme to embezzle funds from Driscoll’s. In total, Marier submitted at least fifteen false invoices to Driscoll’s between November 2017 and May 2018 and received approximately $1.49 million in payment for services that TNC never rendered.
Marier used the embezzled funds to make personal expenditures, including for a five-bedroom home in Naperville, Illinois; a GMC Yukon XL; and a $75,000 cashier’s check for his girlfriend. Marier resigned the day after he became aware of Driscoll’s internal investigation into the fraudulent invoices that he had submitted and approved. Driscoll’s then referred the case to the FBI.
A grand jury indicted Marier on February 14, 2019, charging him with two counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of money laundering, in violation of 18 U.S.C. § 1957. Marier pleaded guilty to one count of each charge.
In February 2019, the government seized the Naperville home, the GMC truck, and over $700,000 in cash from bank accounts associated with Marier and TNC. Marier agreed to forfeit all of these assets and to pay full restitution for all losses suffered by Driscoll’s.
In addition to the prison term, Judge Koh ordered Marier to serve a three-year period of supervised release and signed a preliminary order of forfeiture that included, among other things, a personal forfeiture money judgment in the sum of $1,489,216.25. The defendant will begin serving the prison term in January 2021.
Assistant U.S. Attorneys Marissa Harris, Karen Beausey, and Jeffrey Schenk are prosecuting the case with the assistance of Jessica Leung. The prosecution is the result of an investigation by the FBI.
Former Controller for Contracting Co. Sentenced to 5+ Years in Prison for $8.7 Million Embezzlement Scheme and Filing False Tax ReturnsRead the Press Release
PITTSBURGH A resident of Sewickley, Pennsylvania, has been sentenced in federal court to five years and four months (64 months) in prison to be followed by two years of supervised release on her conviction for wire fraud and filing false income tax returns, United States Attorney Scott W. Brady announced today.
United States District Judge DonettaW. Ambrose imposed the sentence on Sue O’Neill, 55, of 130 Kenney Drive, Sewickley, Pennsylvania.
According to information presented to the court, O’Neill, while employed as the Controller for Marco Contractors, Inc., embezzled approximately $8.7 million over the course of nine years. The Court was further advised that she and another individual started a company called Bulldog Contractors LLC and used approximately $6.7 million of the stolen money to fund the business. The other $2 million in embezzled funds went into her personal bank account. O’Neill and her business partner used the stolen funds for business expenses and for personal use. Among other things, the Court was advised that they purchased two 1969 Ford Shelby GT500s for approximately $160,000 each and spent approximately $163,000 renovating a 1969 Ford Mustang. O’Neill further spent hundreds of thousands of dollars on jewelry and a country club membership. Lastly, the Court was advised that O’Neill filed false income tax returns because she did not declare the stolen funds as taxable income.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, the Northern Regional Police Department, the Internal Revenue Service-Criminal Investigation and the United States Marshals Service for the investigation leading to the successful prosecution of O’Neill.
Former Bristol Resident Pleads Guilty to Fentanyl and Crack Distribution ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ELKIE CRUMP, also known as “40,” 38, pleaded guilty today to fentanyl and crack cocaine distribution offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Janet C. Hall occurred via videoconference.
According to court documents and statements made in court, in December 2019, the DEA’s New Haven Tactical Diversion Squad and Bristol Police Department began an investigation into Crump after receiving information that Crump, who formerly resided on Davis Drive in Bristol, was distributing fentanyl. On three occasions in January and February 2020, investigators conducted controlled purchases of fentanyl from Crump.
On March 3, 2020, Crump was arrested in West Hartford where he was residing as a condition of his state parole. At the time of his arrest, Crump possessed approximately 14 grams of crack cocaine. On that date, a related search of a Davis Drive residence revealed a 9mm handgun that Crump had possessed.
Crump pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl, and one count of possession with intent to distribute cocaine base (“crack”). Judge Hall scheduled sentencing for December 2, 2020, at which time Crump faces a maximum term of imprisonment of 20 years on each count.
Crump has been detained since his arrest.
The DEA Tactical Diversion Squad includes officers from the Bristol, Hamden, Meriden, New Britain, West Haven and Watertown Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Conor M. Reardon.
Florida Man Pleads Guilty to CyberstalkingRead the Press Release
CHARLOTTESVILLE, Va. – Agustin Alberto Lainez, a Florida man who harassed a Charlottesville-area woman and threatened to physically harm her and expose publicly her personal information, pleaded guilty yesterday in U.S. District Court here to federal cyberstalking. United States Attorney Thomas T. Cullen and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division made the announcement today.
“This defendant used a keyboard to harass the victim in this case with remarkable cruelty, to the point of causing her panic attacks—all while trying to hide in the shadows of the internet,” First Assistant United States Attorney Daniel P. Bubar said today. “This abhorrent conduct of extortion and blackmail is just as wrong in cyberspace and will be punished accordingly. I am proud of the work of the FBI for bringing this defendant to justice and allowing the victim at least some semblance of peace.”
Lainez, 22, of Sanford, Fla., pleaded guilty yesterday to one count of cyberstalking. At sentencing, Lainez faces a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000, as well as a period of supervised release.
According to court documents, in approximately September 2019, Lainez became friends with the Victim online, and the two started talking through Twitter Direct Messages (DMs). In January 2020, Lainez requested a nude photograph of the Victim. The Victim initially declined but later relented.
Over the next several weeks, Lainez asked if the Victim would have a sexual relationship with him and informed the Victim that he would only be able to “move on” and be friends with the Victim if they had sexual intercourse. When the Victim declined his advances, Lainez demanded a nude video, threatening to expose the Victim’s personal information if she did not send nude videos as he had demanded.
The Victim still declined.
When threats of exposure failed to work, Lainez threatened physical harm. On February 21, 2020, Lainez sent a Twitter DM to the Victim showing a screenshot in which Lainez is directing other Twitter users to “please beat [her] ass…” In another Twitter DM, Lainez threatened to rape the Victim.
In another screenshot, Lainez sent the Victim what appears to be a “Notes” page that included the Victim’s name, high school, city of residence, university, telephone number, and other sensitive information. Lainez added a message, “On my draft ready go go [sic] and I’m adding more.” Fearful that Lainez would follow through with his threats, the Victim gave in to Lainez’s demand for a nude video of herself. However, this did not stop Lainez’s abusive behavior, which continued on an almost daily basis for weeks.
In his Twitter DMs, Lainez repeatedly admitted that he was extorting the Victim. For example, in one DM, Lainez stated that he was going to “keep Blackmailing you and adding things for you to do whenever you lie or I think you’re lying to me.” In another DM, Lainez wrote, “Lowkey hate this and like it at the same time, I just wish I didn’t have to literally blackmail you for you to tell me the truth and not be a whore lol.”
As a result of his actions, the Victim lived in constant fear, was subject to emotional distress, and suffered panic attacks.
The investigation of the case was conducted the Federal Bureau of Investigation. Assistant United States Attorney Heather L. Carlton is prosecuting the case for the United States.
Five Individuals ChargedRead the Press Release
SOUTH BEND – Five individuals from Elkhart, Indiana were charged by way of a 2 count Indictment with robbery affecting interstate commerce and using a firearm in the commission of a crime of violence, announced U.S. Attorney Kirsch.
“I commend the FBI, in addition to the other agencies that participated in solving this case,” said United States Attorney Thomas L. Kirsch II. “Violent crimes, like those alleged, will be thoroughly investigated by our law enforcement partners and prosecuted by my Office.”
According to documents in this case, it is alleged that a small group known as the ChoppaBoyz robbed a homeowner on June 9, 2020. During the robbery, the homeowner was shot in the leg. The homeowner along with another person on the property were also allegedly beaten repeatedly with handguns while the robbers asked about the location of a safe in the home. The robbers stole the safe, drugs, money, a handgun, and jewelry. After the police arrived, they obtained a search warrant for the residence and discovered it to have cocaine, marijuana and prescription pills onsite that were overlooked by the robbers. The statements the robbers made, including asking for an AR-15 pistol that was recently traded, gave the victims an idea of who the robbers were. Based on this and other information: Marco Fernandez (age 24); Jose Trigo (age 20); Juantio Gould (24); Carlos Reyes (age 20); and Emmanuel Martinez-Guevara (age 20) were each indicted for robbery affecting interstate commerce and using, carrying, and discharging a firearm in the commission of a crime of violence.
“This indictment is an example of the investigative focus on violence in our communities and the impact of collaboration among agencies in which crimes cross state lines,” said FBI Indianapolis Special Agent in Charge Paul Keenan, “The FBI’s Safe Streets Gang Task Force will continue to work with our partners the Elkhart Police Department, the St. Joseph County Sheriff’s Department, and the South Bend Police Department to pursue those who commit these violent crimes and take them off our streets.”
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, South Bend Police Department, Elkhart County Intelligence and Covert Enforcement Unit, and Cedar City Utah Police Department. This case is being prosecuted by Assistant U.S. Attorney Joel Gabrielse.
###
Ex-Indian Health Services doctor admits conflict of interest chargesRead the Press Release
GREAT FALLS – A former Indian Health Services doctor who worked in Browning today admitted charges of conflict of interest for using his job to prescribe a diabetes drug from a pharmacy in exchange for kickbacks, U.S. Attorney Kurt Alme said.
Dr. Arnold Scott Devous, 68, of Billings, pleaded guilty to federal medical officer with conflict of interest. Devous faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Devous was released. Sentencing was set for Dec. 10.
In court documents filed in the case, the prosecution said that Devous, who was a medical officer for the IHS in Browning and in charge of its diabetes program, used his position to prescribe Farxiga, a Type 2 diabetes medication. Farxiga was not on the IHS formulary and could not be obtained at the facility. From December 2015 until June 2016, Devous solicited multiple pharmacies in Montana to fill expensive prescriptions of Farxiga in exchange for Devous receiving a "cut" of the profits and kickbacks. Government personnel are prohibited from engaging in these types of relationships.
Ultimately, a pharmacy agreed to Devous' terms and the amount of money paid to the doctor totaled $45,540 in approximately six months. Devous first hid the kickbacks by sending the money to his wife, and then he used a prospective business associate. Neither of these options was allowable under the law. When interviewed, Devous admitted that his wife received the money, which was illegal. Devous also admitted he never informed his superiors of the outside income as required by law.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the Office of Inspector General, Office of Investigations, U.S. Department of Health & Human Services.
XXX
Eight Individuals Charged with Using Stolen Identities to Fraudulently Purchase Vehicles Worth at Least a Half Million DollarsRead the Press Release
BOSTON – Eight individuals have been charged with using the stolen identities of United States citizens from Puerto Rico to fraudulently purchase and finance late-model vehicles from dealerships in Massachusetts. In a coordinated effort, District of New Jersey, the State of New Jersey and the Northern District of Ohio also charged defendants in this scheme.
According to charging documents, between October 2017 and January 2019, the defendants visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of their applications, the defendants provided stolen biographical information of real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. The group allegedly used the stolen identities to illegally open bank accounts, credit cards and purchase vehicles, many of which were exported out of the United States.
The following individuals were charged today by criminal complaint, and all but two defendants who were already in custody, have been arrested.
- Ricardo Acevedo, 31, of Manchester, N.H., was charged with false representation of a Social Security number, aggravated identity theft and wire fraud. Acevedo allegedly used stolen identities to obtain car loans and purchased three cars worth $90,582, collectively;
- Joshua Cruz, 32, of Manchester, N.H., was charged with false representation of a Social Security number, aggravated identity theft and wire fraud. Cruz allegedly used stolen identities to obtain car loans and purchased three cars worth $170,288, collectively. Cruz is currently in custody serving a sentence on related state charges;
- Jose Irizarry, 44, of Union City, N.J., was charged with false representation of a Social Security number, aggravated identity theft and wire fraud. Irizarry allegedly used stolen identities to obtain car loans and purchased three cars worth $140,124, collectively. Irizarry was previously charged on related state charges in New Jersey, and remains in custody;
- Neida Lopez, 43, of Methuen, Mass., was charged with aggravated identity theft and conspiracy to commit wire fraud. Lopez allegedly used a stolen identity to obtain a credit card and accrue $21,931 in charges on that card;
- Arialka Moya, 31, of Lowell, Mass., was charged with false representation of a Social Security number and wire fraud. Moya allegedly used a stolen identity to obtain a car loan and purchased one car worth $60,982;
- Alvin Rivera, 37, of Haverhill, Mass., was charged with false representation of a Social Security number, aiding and abetting the same, aggravated identity theft, aiding and abetting the same and wire fraud. Rivera allegedly assisted other individuals with the fraudulent purchase of vehicles by providing them with stolen personal identities and information;
- Iyaury Rodriguez, 39, of Reading, Penn., was charged with false representation of a Social Security number, aggravated identity theft and wire fraud. Rodriguez allegedly used stolen identities to obtain car loans and purchase three cars worth $98,432, collectively; and
- Wanda Sanchez, 36, of Lawrence, Mass., was arrested for false representation of a Social Security number, aggravated identity theft and wire fraud. Sanchez allegedly used a stolen identity to obtain a car loan to purchase one car worth $50,962.
In a coordinated multi-jurisdictional effort, individuals allegedly involved in this scheme were also charged in the District of New Jersey, the State of New Jersey and the Northern District of Ohio.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes. The DBFTF has been investigating this scheme since January 2019.
The charges of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn, and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug dealer sentenced after selling meth at bus stationRead the Press Release
CORPUS CHRISTI, Texas – A 30-year-old Coastal Bend resident has been ordered to federal prison following his conviction of trafficking meth, announced U.S. Attorney Ryan K. Patrick.
Edward Andrew Nesmith pleaded guilty June 16.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Nesmith to serve a 92-month sentence to be immediately followed by four years of supervised release. At the hearing, the court heard additional information including evidence detailing the lack of deterrence from at least a decade of Nesmith’s previous criminal episodes, including assault family violence, forgery and theft. In handing down the sentence, Judge Ramos noted Nesmith’s life of crime and drug use while mentioning his three prior felony drug convictions.
On or about Nov. 2 through Nov. 13, 2018, Nesmith was involved in a conspiracy to possess with intent to distribute meth along with and Corina Perez, 47, Corpus Christi. They negotiated terms of the sale or distributed the meth at a local shopping center and bus terminal in Corpus Christi.
Nesmith has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
On May 19, Judge Ramos sentenced Perez to 24 months in federal prison followed by four years of supervised release.
The Drug Enforcement Administration and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Reid Manning prosecuted the case.
Dominican National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican national who previously resided in Lawrence pleaded guilty yesterday in federal court in Boston to illegal reentry.
Melvin Villar, 56, pleaded guilty to one count of unlawful reentry of deported alien before U.S. Senior District Court Judge Douglas P. Woodlock, who scheduled sentencing for Jan. 11, 2021.
On July 23, 2019, Villar was encountered in Lawrence. Villar was previously deported on three separate occasions between 2004 and 2019. At some point after each deportation, he illegally reentered the United States.
The charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Lawrence Police Chief Roy Vasque made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to fentanyl trafficking.
Cristian Lara Diaz, 44, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and five counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 12, 2021. Lara Diaz has been in federal custody since his arrest on August 29, 2019.
According to court documents, Lara Diaz and, allegedly, his co-defendant conspired to distribute fentanyl and engaged in five separate controlled sales of fentanyl to a cooperating witness in Boston between April 2017 and January 2018.
The charge of conspiracy to distribute and possess with intent to distribute more than 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charges of distribution of and possession with the intent to distribute 40 grams or more of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
Dr. Richard Samuel Piazza, D.O., admitted writing opioid prescriptions to individuals he knew were selling the pills on the street
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Dr. Richard Samuel Piazza, D.O., 63, of Grand Rapids, Michigan, pleaded guilty to three counts of writing illegal prescriptions for the opioids oxycodone and hydrocodone. Dr. Piazza admitted writing the prescriptions to individuals he knew were selling the pills on the street. He faces up to 20 years in federal prison for his crimes, at least three years of supervised release, and up to a $1 million fine. He previously surrendered his DEA license.
“The opioid crisis, already serious, has intensified during the Coronavirus pandemic,” U.S. Attorney Birge said. “We are committed to prosecuting doctors like Piazza who feed the opioid crisis by writing prescriptions they know are not for legitimate medical treatment.”
The investigation was conducted by the Drug Enforcement Administration and Michigan State Police. Assistant United States Attorney Clay Stiffler prosecuted the case.
###
Department of Justice/Eastern District of Texas Criminally Charging Individuals with CARES Act PPP and Economic Impact Payment FraudRead the Press Release
BEAUMONT, Texas – The Department of Justice Criminal Division announced today that it has charged more than 50 people who allegedly committed fraud to obtain funds from the Paycheck Protection Plan (PPP).
The PPP program is authorized by the CARES Act, which is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act initially authorized up to $349 billion in forgivable PPP loans to small businesses for job retention and certain other expenses, and in April 2020, Congress authorized over $300 billion in additional PPP funding,
In partnership with the Criminal Division, the Eastern District of Texas has played a lead role in pursuing CARES Act fraud and has declared COVID-related fraud a top priority.
“When thieves and fraudsters steal CARES Act funding, they steal from all of us – the corner store, the dry cleaner, and the local grocer. These are not simple or easy cases to investigate and charge. They involve piecing together often-complex financial, payroll, and tax records for individuals and companies. This makes it all the more remarkable that the men and women of the Department of Justice have been able to bring so many cases so quickly — against over 50 defendants in a matter of months — and is a testament to the hard work and dedication of federal prosecutors and agents and our partners across the U.S. government.”
The Eastern District of Texas has charged three individuals with violations related to the improper use of PPP funds. In each case, the individuals fraudulently claimed their businesses had suffered catastrophic losses due to the COVID-19 pandemic and requested assistance in the form of forgivable small business loans through the PPP. In May, Shashank Rai and Samuel Yates were each charged in separate cases with violations of wire fraud, mail fraud, and making false statements to a bank and to the SBA in order to unlawfully obtain millions of dollars in PPP loans. In June, Fahad Shah was indicted and charged with three counts of wire fraud, one count of making a false statement to a bank, and four counts of money laundering. It is alleged that Shah illegally obtained millions of dollars, which he used to purchase multiple Tesla automobiles, to play the stock market, and for personal expenses. When conduct like the kind alleged in these cases occurs, it depletes the pool of available funds for businesses with legitimate needs, such as payroll for workers. According to some reports, as many as 80 percent of loan applicants were turned away due to funds not being available.
In addition to PPP cases, the Eastern District of Texas has also indicted James Mwanza, as well as Dalton Brewer and Emilee Fenton, for identity theft in connection with CARES Act Economic Impact Payments (EIPs). These defendants allegedly used the names, birth dates, and Social Security Numbers of unknowing persons in order to illegally obtain EIP funds. An estimated $300 billion of the CARES Act total was allocated for EIPs. Under the CARES Act, qualifying individuals may receive up to $1,200 in EIPs per adult, up to $2,400 for married couples filing jointly, and $500 per child under 17 years old. Individuals with income exceeding $99,000 or joint filers whose income exceeds $198,000 do not qualify for any payment.
These cases are tremendously important for many reasons, and the speed with which these cases have been investigated and prosecuted is unparalleled. The Department’s efforts began early in the implementation of the CARES Act, as prosecutors and agencies moved quickly to establish law enforcement partnerships, obtain critical data and evidence, and take concrete and affirmative steps to identify CARES Act fraud. This cooperation, in turn, produced immediate results. The Eastern District of Texas partnered with the Criminal Division to bring the very first PPP-related fraud cases within two months of the loan program’s launch
Public awareness and cooperation amongst agencies is critical to fight against COVID-related fraud. In July, U.S. Attorney Stephen J. Cox wrote an opinion editorial, which was published in the Texas Lawyer, pledging to remain vigilant in pursuing those individuals seeking to steal CARES Act assistance from those who truly need it and who it is intended to benefit. As part of that pledge, in August, the Eastern District of Texas entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR) providing for the designation of Assistant U.S. Attorneys in the Eastern District of Texas to assist with SIGPR-related investigations and prosecutions. EDTX plans to work with SIGPR, as well as DOJ’s Criminal Division and our other law enforcement partners to focus on coordinated criminal rings that have engaged in the systematic, organized looting of PPP funds.
Another key component of the Department’s ability to bring these cases so quickly has been the use of public-private partnerships to maximize its awareness and visibility of suspicious conduct and the collection of critical evidence. Many financial institutions have been strong partners in assisting the Department in detecting and investigating potentially fraudulent activity and safeguarding taxpayer dollars by freezing funds and accounts. In the coming weeks, EDTX plans to build partnerships with Texas banks to further our ability to uncover and combat suspected fraud.
Anyone with information about allegations of attempted fraud involving COVID-19, can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Department of Justice Awards Nearly $50 Million in Grants to Improve School SafetyRead the Press Release
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced nearly $50 million in school safety funding through its 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.
“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 160 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: https://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 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. For more information, please visit: https://cops.usdoj.gov/.
Department of Justice and U.S. Patent and Trademark Office to Host Public Workshop on Promoting Innovation in the Life Science SectorRead the Press Release
The Justice Department’s Antitrust Division (DOJ) and the U.S. Patent and Trademark Office (USPTO) will host a virtual public workshop on Sept. 23rd and 24th, 2020 to discuss the importance of intellectual property rights and pro-competitive collaborations for life sciences companies, research institutions, and American consumers.
“Now more than ever, it is essential that we consider the role of regulation and antitrust enforcement on incentives for innovation in key areas of discovery, such as biotechnology and the life sciences,” said Assistant Attorney General for the Antitrust Division Makan Delrahim. “We look forward to a robust discussion of the current legal climate and its impact on competitiveness, and are honored to collaborate with Director Iancu and his talented team at the PTO in hosting this event.”
The workshop will feature a fireside chat between Assistant Attorney General Delrahim and Under Secretary of Commerce for Intellectual Property and Director of the USPTO, Andrei Iancu. Former Director of the National Institutes of Health, Dr. Elias A. Zerhouni will deliver a keynote address. The workshop will include panel discussions of how patents and copyrights incentivize and reward innovation in the life science sector and the USPTO’s guidance on patentability for life sciences inventions. In addition, panels will discuss how partnerships and collaboration can facilitate the development of complex biologics, and the role of antitrust enforcement and regulation in preserving competition and incentives for innovation among drug developers and their partners. Panelists include leading figures from industry, government agencies, prominent research labs, the non-profit sector, academia, and the broader legal and economic community.
The workshop is free and open to the public, although registration is required, and will be webcast from approximately 1–5 PM Eastern Time each day. A recording of the workshop will be made available on DOJ and USPTO’s websites. Registration information, an agenda, instructions on accessing the webcast, and a list of speakers will be available in the near future on the USPTO and DOJ event webpages. Members of the press should email Brianna Herlihy at [email protected] to register.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact Lakeshia Harley at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
Convicted Felon Sentenced to Prison for Possessing an Illegal FirearmRead the Press Release
MACON, Ga. – A convicted felon caught with an illegal firearm and ammunition during the execution of a state search warrant was sentenced to prison this week, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Jonathan Duneil Blash, 29, of Macon was sentenced by U.S. District Judge Tripp Self on Tuesday, September 8 to 27 months in prison followed by three years supervised release after pleading guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
Bibb County deputies executed a state search warrant for illegal drug activity at the defendant’s Macon apartment on February 10, 2019. Blash, who has multiple prior felony convictions, including theft by taking, was found in possession of a Smith & Wesson .38 special revolver and ammunition. Deputies also recovered drugs during the legal search. Blash admitted that he purchased the gun from someone off the street.
“Law enforcement is working hard in Middle Georgia to shut down the underground gun market which feeds criminal activity. Convicted felons caught in possession of illegal firearms will be held accountable at the federal level and will face prison without parole,” said U.S. Attorney Peeler. “I want to thank the Bibb County Sheriff’s Office and the ATF for their work in this case.”
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Macon. Assistant U.S. Attorney Paul McCommon prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Colorado Man Going to Prison for Threatening His Former ProfessorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Richter, 42, of Boulder, CO, who was convicted of interstate communication of threat to injure, was sentenced to serve 24 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that in 2002, the defendant was a student in a class that the Victim taught at the University of Buffalo. Around that time, Richter sent bizarre emails to the Victim and followed her to her car after class. When the course was finished, the Victim moved out of the Western District of New York.
In 2007, the defendant started sending post-cards with strange messages to the Victim and leaving harassing voice-mail messages on her work phone. On April 23, 2008, the Niagara County Sheriff’s Office arrested Richter, and the Niagara County District Attorney charged him with Stalking in the Fourth Degree. On June 17, 2009, the defendant pleaded guilty to the charged offense, and was given a fine and an Order of Protection was issued against Richter.
On October 18, 2018, the Victim reported to the Niagara County Sheriff’s Office that she received an envelope addressed to her at her place of employment in the Western District of New York. Around this time, the defendant was living in Colorado, and sent the envelope, which contained a handwritten letter, an article, and three movie DVDs. The Victim received a second package the same day from Richter, which contained a letter, a CD, and five movie DVDs. Between November 1 and November 7, 2018, the defendant repeatedly called the Victim and left harassing voicemail messages on her phone. Richter continued to call and leave similar harassing messages for the Victim in the following days, causing her considerable distress. In particular, she reported that the defendant left a message saying he had, “been arrested 10 years ago and he’s willing to risk it happening again.” As a result, a local court issued a warrant for Richter’s arrest for Stalking in the Third Degree.
On November 26, 2018, the Victim reported that she received an additional 156 voice mail messages and more than 150 e-mails from the defendant. Some of the voice mail messages were threatening and sexual in nature, as Richter specifically stated he was on his way to Western New York and would arrive around Christmas time. One of the defendant’s messages stated, “I can’t stress this enough, when I do show up around Christmas, if you want to live, never leave my (expletive) side.” Some of Richter’s emails indicated that he was traveling from Colorado to New York, including one message in which the defendant said, “I blame you of course, (expletive). I’m stuck in Iowa because of your damn (expletive)…”
On November 29, 2018, the Morris Police Department in Morris, Illinois, encountered the defendant in a vehicle in a Comfort Inn parking lot when responding to a report of a male who was reportedly acting strangely. The responding officer identified the man as Richter, and placed him under arrest due to the active warrant.
The sentencing is the result of an investigation by the Niagara County Sheriff’s Office, under the direction of Acting Sheriff Michael Filicetti, and Special Agents with the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
# # # #
City of Lynchburg Awarded $632,496 from Department of Justice’s Office of Violence Against WomenRead the Press Release
LYNCHBURG, Va. – The Department of Justice’s Office of Violence Against Women (OVW) announced the awarding of a $632,496 continuation grant to the City of Lynchburg to fund a program aimed at improving criminal justice responses to domestic violence, dating violence, sexual assault, and stalking.
The program aims to enhance victim safety and offender accountability in cases of domestic violence, dating violence, sexual assault, and stalking by encouraging jurisdictions to work collaboratively with community partners to identify problems and share ideas that will result in effective responses to these crimes. An integral component of this program is the creation and enhancement of a coordinated community response that brings together criminal justice agencies, victim service providers, and community organizations that respond to domestic violence, dating violence, sexual assault, and stalking.
“Ending domestic violence requires a multi-faceted approach. Federal prosecution is often not available in these horrific cases, but this grant will go a long way in Central Virginia to aid those on the front lines who are fighting against the scourge of domestic violence,” First Assistant United States Attorney Daniel P. Bubar said today.
The City of Lynchburg, in collaboration with its non-profit, non-governmental victim service provider partner the YWCA of Central Virginia, will use this continuation award to educate stakeholders concerning the challenges and unique dynamics of intimate partner violence, evaluate the overall coordinated response from the standpoint of victim safety, and implement early intervention strategies to address intimate partner violence.
For more information about this grant, contact the Office on Violence Against Women at 202/307-6026 and ask for the Outreach and Communications Division.
Carbondale Post Office Emplyee Indicted for Embezzling MailRead the Press Release
On Tuesday of this week, a federal grand jury for the Southern District of Illinois returned an
indictment charging Athens A. Shorey (also known as “Athens A. DeMartini”), 33, of Cobden,
Illinois, with embezzling mail.Shorey worked as a letter carrier for the Carbondale Post Office. The indictment charges that on
May 23, 2020, and again on May 27, 2020, Shorey embezzled mail that had been entrusted to her for
delivery. According to the indictment, Shorey embezzled ten pieces of mail on May 23, 2020, and
three additional pieces of mail on May 27. The indictment charges that two of the three pieces of
mail embezzled on May 27 were sent by banks.After the alleged embezzlements were discovered, Shorey voluntarily resigned from her position with
the Postal Service.The indictment contains two counts of embezzlement of mail by a Postal Service employee.
Each charge carries a maximum sentence of five years in prison and a fine of up to $250,000.The arraignment for Shorey will be conducted on Sept. 28, 2020, at 10:45 a.m. at the federal
courthouse in Benton, Illinois.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be
innocent of a charges until proved guilty beyond a reasonable doubt to the satisfaction of a jury.The investigation was conducted by agents from the United States Postal Service – Office of the
Inspector General, and officers of the Carbondale, Illinois, Police Department. The case is
being prosecuted by Assistant United States Attorney Scott A. Verseman.Canada resident sentenced for attempting to smuggle firearms from United States into CanadaRead the Press Release
GREAT FALLS — A Canada resident today was sentenced to one year and one day in prison and one year of supervised release after he admitted trying to smuggle firearms into Canada from the United States, U.S. Attorney Kurt Alme said.
Colby Stephan Skolseg, 44, of Alberta, was arraigned, pleaded guilty to attempted illegal export as charged in a superseding indictment and was sentenced during the hearing.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court documents filed in the case that in September 2010, Skolseg and an accomplice attempted to illegally export eight handguns from Montana into Canada. The firearms had obliterated serial numbers and were hidden in an aquarium cooler. The plan was to resell the handguns in Canada. Canadian law enforcement was able to restore the serial numbers.
Two years later, Skolseg and his accomplice resumed their handgun smuggling and used websites instead of making personal trips to the United States. The pair illegally exported 25 additional handguns from West Virginia into Calgary through varying shipments.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Department of Homeland Security, Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; the Montana Department of Justice, Department of Motor Vehicle Licensing Services; the Canada Border Service and the Royal Canadian Mounted Police forensic lab and investigations divisions.
XXX
Buffalo Man Sentenced for Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Wa1demar Martinez, a/k/a Crazy, 44, of Buffalo, NY, who was convicted of conspiracy to distribute 500 grams or more of cocaine, was sentenced to serve five years in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Meghan Leydecker and Charles J. Volkert, Jr., who handled the case, stated that between December 2015 and June 7, 2016, the defendant conspired with others to distribute over 500 grams of cocaine in the Buffalo area. Martinez used a residence at 275 Tonawanda Street in furtherance of his drug trafficking activities. On June 7, 2016, the defendant sold cocaine to an individual working with the Drug Enforcement Administration.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
# # # #
Bridgeport Police Chief and Personnel Director Charged with Fraud, False Statements in Connection with City’s Hiring of the Police ChiefRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, Acting Under Authority Conferred by 28 U.S.C. § 515, and David Sundberg, Special Agent-in-Charge, New Haven Division, Federal Bureau of Investigation (“FBI”), announced the arrest of ARMANDO J. PEREZ, the Chief of Police of the City of Bridgeport, Connecticut (the “City”), and DAVID DUNN, the City’s acting personnel director, for defrauding the City by rigging the 2018 police chief examination, mandated by the City’s Charter, to ensure PEREZ would be selected for the position. PEREZ and DUNN were also charged with making false statements to federal agents in the course of the investigation. Both defendants are expected to appear before U.S. Magistrate Judge William I. Garfinkel in Bridgeport federal court this afternoon.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Chief Perez and Personnel Director Dunn schemed to rig the purportedly impartial and objective search for a permanent police chief to ensure the position was awarded to Perez, and then repeatedly lied to federal agents in order to conceal their conduct. Bridgeport’s citizens and police officers deserve leaders with integrity who are committed to enforcing, not breaking, the law, and we thank the FBI for their partnership in investigating and uncovering the scheme alleged.”
FBI Special Agent-in-Charge David Sundberg said: “I would like to express my deepest gratitude to the members of the United States Attorney’s Offices in both the Southern District of New York as well as Connecticut for their professionalism and invaluable assistance in this case. Today’s arrest of city officials including a high ranking, long-time law enforcement officer is a stark reminder that the betrayal of public trust and community members by a public servant is not only unethical but often illegal. We recognize these arrests are not a reflection on the Bridgeport Police Department as a whole, but it is our responsibility to root out injustice and corruption by any and all elected and appointed officials entrusted to protect and serve with honor. We at the FBI will continue to aggressively pursue all those engaged in matters of public corruption throughout Connecticut.”
According to the allegations contained in the Complaint unsealed upon the defendants’ arrest, and publicly available information:[1]
The Scheme to Rig the City of Bridgeport’s Police Chief Exam
The charges alleged in the Complaint arise from a criminal scheme to rig the City’s search for a new Bridgeport Police Department (“BPD”) chief in 2018. During the course of this scheme, PEREZ – who was serving as the acting BPD chief at the time – conspired with DUNN, who is and was at that time the City’s acting personnel director, to deceive the City by secretly rigging the supposedly independent search process for a new BPD chief to ensure that PEREZ was ranked as one of the top three candidates and could therefore be awarded a five-year contract to serve as the BPD chief.
More specifically, in or about February 2018, the City commenced a search to fill the position of permanent Chief of Police. Under the City’s Charter, the City was required to conduct an “open and competitive examination” to determine the top three scoring candidates for the position, from which the mayor could then choose. DUNN, in his role as the personnel director, oversaw the police chief examination process, and retained an outside consultant (“Consultant-1”) to assist with developing and carrying out the exam. DUNN and PEREZ then manipulated that examination process in multiple ways: DUNN stole confidential examination questions and related information developed by Consultant-1, and provided those materials to PEREZ, including by email; DUNN had Consultant-1 tailor the examination scoring criteria to favor PEREZ; PEREZ enlisted two BPD officers to secretly draft and write PEREZ’s written exam; and DUNN attempted to influence a panelist, tasked with ranking the candidates in the last stage of the exam, to ensure that PEREZ was scored as one of the top three candidates.
As a result of the scheme, the City was deceived into ranking PEREZ among the top three candidates, which rendered him eligible for the permanent police chief position. The mayor ultimately offered the position to PEREZ, and the City, under the assurance that PEREZ had been appointed in accordance with the City Charter, entered into a five-year contract with PEREZ, the terms of which included a payout of more than $300,000 to PEREZ for accrued leave.
False Statements by PEREZ and DUNN
PEREZ and DUNN were each voluntarily interviewed in connection with the FBI’s investigation. In an attempt to conceal their conduct, during those interviews they both lied to FBI agents about facts material to the criminal investigation. PEREZ provided false and misleading information about the assistance DUNN and others had provided him in connection with the examination process, including his requests to a BPD officer to sneak into headquarters to retrieve stolen confidential information provided by DUNN. DUNN falsely denied requesting an exam panelist ensure that PEREZ was scored as one of the top three candidates.
* * *
PEREZ, 64, of Trumbull, Connecticut, and DUNN, 72, of Stratford, Connecticut, are each charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum penalty of 20 years in prison. PEREZ is also charged with two counts of false statements to federal investigators, and DUNN is charged with one count of false statements to federal investigators, each of which carries a maximum penalty of five 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 outstanding work of the FBI and the Special Agents of the U.S. Attorney’s Office.
The case is being prosecuted by the Office’s Public Corruption Unit and White Plains Division. Assistant U.S. Attorneys Eli J. Mark and Jeffrey C. Coffman, and Assistant U.S. Attorney Jonathan N. Francis of the U.S. Attorney’s Office for the District of Connecticut, 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, constitutes only allegations, and every fact described therein should be treated as an allegation.
Billings man admits strangulation of woman on Crow Indian ReservationRead the Press Release
BILLINGS – A Billings man accused of strangling a woman at a Crow Agency residence admitted assault charges today, U.S. Attorney Kurt Alme said.
Sean Evan Thomas Bad Bear, 29, pleaded guilty to assault by strangulation of an intimate partner and dating partner. Bad Bear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Bad Bear was released pending further proceedings.
The prosecution said in court documents that the assault occurred on Feb. 19, 2019 at a Crow Agency residence on the Crow Indian Reservation. Bad Bear assaulted the victim and placed her in a choke hold. The victim lost consciousness because she could not breathe.
Assistant U.S. Attorney Jeanne Torske is prosecuting the case, which was investigated by the FBI.
XXX
Bend Man Sentenced to Federal Prison for Placing Hoax Bomb at Deschutes County CourthouseRead the Press Release
EUGENE, Ore.—A Bend, Oregon man was sentenced to federal prison today for placing a hoax bomb at the Deschutes County Courthouse on July 29, 2019, announced U.S. Attorney Billy J. Williams.
Jonathan Tyler Allen, 24, was sentenced to 18 months in federal prison and three years’ supervised release. As part of his sentence, Allen was also ordered to pay $43,620 in restitution to the Deschutes County Circuit Court, Deschutes County District Attorney’s Office, First Interstate Bank in Bend, and Bend Fire & Rescue.
According to court documents, on or about July 28 to July 29, 2019, Allen and co-conspirator Kellie Cameron, 31, also of Bend, conspired with one another to shut down the Deschutes County Courthouse in Bend by planting a fake bomb and calling in a bomb threat. Around the same time, Cameron constructed a fake bomb using batteries, wiring, a circuit board, and a fuel filter, among other materials.
On July 29, 2019, Allen and Cameron drove to the courthouse and placed the hoax device on a ramp near the building. At approximately 7:18am the same day, Cameron, who was with Allen, used a cell phone to call 911. He told the operator, “I just want to let you know that there are two bombs, one’s in the courthouse and good luck finding the other one.” Less than an hour later, with Allen again present, Cameron called 911 a second time to repeat his threat. Allen later threw one of the phones used into a canal to avoid being caught.
On August 7, 2019, Allen and Cameron were charged by criminal complaint with conspiring to make a threat regarding explosive materials and conveying false information and hoaxes. On June 5, 2020, Allen pleaded guilty to the same charge.
Cameron made his first appearance in federal court on August 21, 2019. He entered a not guilty plea and was ordered detained. Cameron remains in federal custody awaiting trial.
This case was investigated by the FBI, the Deschutes County Sheriff’s Office, and the Bend Police Department, and is being prosecuted by Nathan J. Lichvarcik and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon.
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.
Belle Plaine Man Charged with Distributing, Receiving, and Accessing Child PornographyRead the Press Release
Jared Daily, age 34, of Belle Plaine, Iowa, has been charged with distribution, receipt, and accessing of child pornography. The charges are contained in an Indictment unsealed on September 3, 2020, in United States District Court in Cedar Rapids.
The Indictment alleges that, between January and June 2020, Daily knowingly distributed child pornography, received child pornography, and accessed child pornography on a cell phone.
If convicted, Daily faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $750,000 fine, $102,300 in special assessments, and at least 5 years and up to life on supervised release following any imprisonment.
Daily appeared on September 9, 2020, in federal court in Cedar Rapids for a detention hearing and was released on bond. Daily’s next appearance for trial is set for November 2, 2020.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-73.
Follow us on Twitter @USAO_NDIA.
Beaumont Couple Sentenced for Falsifying Tax ReturnsRead the Press Release
BEAUMONT, Texas –A Beaumont, Texas business owner and his wife have been sentenced for federal tax violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
In February 2020, Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, both of Beaumont, Texas, were convicted by a jury of conspiracy to defraud the United States for purposes of impeding the government functions of the Internal Revenue Service (IRS) in the collection of income tax and six counts of making and submitting false tax returns on both their personal and business for 2012-2014. Today, the Brocatos were each sentenced to 33 months in federal prison by U.S. District Judge Marcia Crone. They were also ordered to pay restitution in the amount of $617,762 to the IRS and fines of $15,000 each.
According to information presented in court, the Brocatos owned a lawn service company, Superior Lawn Service, which was operated as an S Corporation for tax purposes. The Brocatos were the sole shareholders of the company, and Judith Brocato served as corporate president, maintaining the books and records of the corporation, and signing the corporate tax returns in that capacity. The Brocatos conspired to defraud the United States for the purpose of impeding, impairing, and obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014. As part of that conspiracy, they filed false corporate and personal income tax returns for years 2012, 2013, and 2014. To facilitate the scheme, the Brocatos cashed numerous checks from customers instead of depositing them into the company accounts. They then underreported the income by failing to report the cash income amount on the various tax returns. According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014. A federal grand jury returned an indictment on Sep. 4, 2019 charging Dick and Judith Brocato with tax violations.
This case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Robert L. Rawls and John B. Ross.
Baton Rouge Man Indicted for Fraud Scheme and Money Laundering Related to Financial Aid FraudRead the Press Release
A federal grand jury recently returned a fourteen-count indictment charging Elliott Sterling, age 32, of Baton Rouge, Louisiana, with wire fraud, financial aid fraud, and engaging in monetary transactions involving property derived from specified unlawful activity. Sterling appeared for his arraignment yesterday and pled not guilty to the pending charges.
According to the indictment, between September 2017 and November 2019, Sterling engaged in a scheme to defraud the United States, wherein he enrolled individuals into classes at Baton Rouge Community College (“BRCC”) and illegally obtained federal financial aid funds on their behalf. In order to accomplish this, Sterling filed Free Applications for Federal Student Aid (“FAFSAs”) on behalf of each individual and misrepresented their prior education history, income, and dependents. Sterling also withheld his identity as the preparer of the FAFSAs. The indictment alleges that out of the over 250 individuals that Sterling secured funds on behalf of, only 32 had earned the requisite high school diploma or GED to qualify for those funds. In addition, Sterling obtained financial aid funds on behalf of individuals he knew were incarcerated.
Sterling used false information to execute Master Promissory Notes on behalf of the individuals and withheld the fact that the source of funds were loans that would need to be repaid by the individuals. When asked for documentation by BRCC, Sterling assisted the students with providing false information, including fake diplomas and/or transcripts. On occasion, Sterling would present himself as a student and paid others to impersonate students at BRCC.
After securing the financial aid funds, usually into his personal account or the account of his entity, Sterling Educational Consulting, LLC, Sterling issued a portion of the funds to the individuals and, without their knowledge, retained at large portion of the total refund for his own personal enrichment.
Sterling is also charged with one count of money laundering relating to a $256,000 withdrawal of fraud proceeds from his personal bank account for conversion into a bank check.
This matter is being investigated by the Federal Bureau of Investigation, the Louisiana Office of Inspector General, and the United States Department of Education – Office of the Inspector General and is being prosecuted by Assistant United States Attorney Jessica Jarreau.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baltimore Career Offender Sentenced to 11 Years in Federal Prison for Distributing FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Davon Nelson, age 35, of Baltimore, today to 11 years in federal prison, followed by three years of supervised release, for distribution of fentanyl and conspiracy to distribute fentanyl. Nelson, a career offender, had numerous prior state conviction for drug related offenses.
This case is part of a federal-state initiative to combat the fentanyl crisis in Maryland. Under this initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office is prosecuting more cases involving fentanyl as a result of this program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; State’s Attorney for Baltimore City Marilyn Mosby; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution under the fentanyl SOS program,” said United States Attorney Robert K. Hur. “The cooperation of the U.S. Attorney’s Office, the Office of the State’s Attorney for Baltimore City, the DEA, and the Baltimore Police Department in reviewing every fentanyl case to determine those cases appropriate for federal prosecution is just one example of the efforts we are making to reduce the number of opioid overdose deaths in Maryland. As a result of this collaboration, Davon Nelson will now spend 11 years in federal prison, where there is no parole—ever.”
According to Nelson’s plea agreement, on September 5, 2018, a Baltimore Police Department officer observed Nelson distribute a baggie containing 200 fentanyl gel capsules to co-defendant Terrell Perry. The BPD officer called in an arrest team and Perry was arrested. A search of Perry recovered the baggie of 200 fentanyl gel caps. At the time Perry was arrested, Nelson had left the block on foot. Law enforcement obtained a search warrant for Nelson’s van and recovered an additional 200 gel caps of fentanyl powder. The total amount of fentanyl recovered was at least 32 grams, but no more than 40 grams, which is enough fentanyl to kill at least 16,000 people.
Following his arrest, Nelson called his girlfriend from pre-trial detention facilities and directed her to move “the white stuff” from underneath his tub and to give it to an associate so that person could sell it. Further, Nelson directed his girlfriend to lie to the police if they came to interview her about Nelson and directed his girlfriend to also have her mother lie to police, if she were interviewed. Under the terms of his plea agreement, Nelson admitted that his calls to his girlfriend were an attempt to obstruct justice.
Terrell Perry, age 36, of Baltimore, previously pleaded guilty and was sentenced to 30 months in prison.
United States Attorney Robert K. Hur commended the Office of the State’s Attorney for Baltimore City, the DEA, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Christopher M. Rigali, who prosecuted the case.
# # #
Attorney General William P. Barr and DEA Acting Administrator Timothy J. Shea Announce Results of Operation Crystal ShieldRead the Press Release
Today, Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Timothy J. Shea announced the results of Operation Crystal Shield, a DEA–led effort targeting the command and control elements of Mexican cartels that operate major methamphetamine “transportation hubs” throughout the United States.
At a press conference in Phoenix, Arizona, Attorney General Barr and Acting Administrator Shea announced that in the first six months, Operation Crystal Shield generated more than 750 investigations, resulting in nearly 1,840 arrests, and the seizures of more than 28,560 pounds of methamphetamine, $43.3 million in drug proceeds, and 284 firearms.
“Methamphetamine is a brutal drug linked to violent crime and responsible for far too many fatal overdoses,” said Attorney General Barr. “The astounding results of Operation Crystal Shield clearly demonstrate the commitment by the DEA and our state and local partners to prevent this deadly drug from reaching the streets of our communities. Prosecuting individuals who traffic these poisons remains a top priority for President Trump and the entire Department of Justice.”
“In the months leading up to the launch of Operation Crystal Shield, communities across the United States experienced a surge of methamphetamine,” said Acting Administrator Shea. “The COVID pandemic locked down many communities and impacted legitimate businesses, but the drug trade continued. Under difficult conditions, DEA – along with our federal, state, and local partners – never stopped working as we helped stem the flow of methamphetamine onto our streets, even as violent drug traffickers sought new ways to smuggle it into the United States. The success of Operation Crystal Shield reflects the devotion of DEA and our partners to protect our communities from the scourge of drug trafficking and violent crime under any circumstances.”
DEA launched Operation Crystal Shield on Feb. 20, 2020, after identifying nine major methamphetamine trafficking hubs: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, San Diego, and St. Louis. Together these nine cities accounted for more than 75 percent of the methamphetamine seized by DEA in 2019. Under this operation, DEA directed enforcement resources to these cities where methamphetamine is often trafficked in bulk and then distributed across the country, and partnered with other federal, state, and local law enforcement to interdict these shipments and target the transportation networks behind them.
Operation Crystal Shield leveraged existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels responsible for virtually all of methamphetamine trafficked into and within the United States. From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds. During the same timeframe, the number of DEA arrests related to methamphetamine increased by nearly 20 percent.
Associate of Monument Street Drug Trafficking Organizations in East Baltimore Sentenced to Nine Years in Federal Prison and Two Others Plead Guilty to Federal Drug Distribution ChargesRead the Press Release
Baltimore, Maryland – Egan Davis, age 40, of Nottingham, Maryland, pleaded guilty today and co-defendant Amin Boyd, age 42, of Baltimore, Maryland, pleaded guilty on September 8, 2020, to federal drug distribution charges related to their participation in a conspiracy to distribute cocaine and/or fentanyl in the Monument Street area of East Baltimore. U.S. District Judge Ellen L. Hollander sentenced co-defendant, Andre Lemon, age 40, of Baltimore, yesterday to nine years in federal prison, followed by three years of supervised release, for his role in the conspiracy.
The guilty pleas and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, Davis supplied drugs to the Montford and OTM drug trafficking organizations, among others and Boyd was a wholesale drug customer of members of the conspiracy. Investigators identified Lemon as an associate of a source of supply also charged in the conspiracy. Law enforcement overheard the defendants discussing the distribution of drugs, including powder and crack cocaine, heroin, and fentanyl, among others.
Law enforcement executed search warrants at residences associated with Davis and Lemon in January and May 2019, respectively, recovering over two kilograms of cocaine; drug paraphernalia, including digital scales, and packaging materials; more than $51,300 in cash, believed to be drug proceeds; and a fully loaded .410 caliber “the Judge” handgun, along with additional .410 caliber ammunition, which Lemon admitted he possessed in connection to his drug trafficking activities. Lemon is prohibited from possessing firearms or ammunition as a result of a previous felony conviction.
Throughout the course of their involvement, it was reasonably foreseeable to Davis and Lemon, and within the scope of the conspiracy that they or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of cocaine base, heroin, and fentanyl during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Boyd, and within the scope of the conspiracy that he or other members of the conspiracy would distribute at least 500 grams but less than two kilograms of cocaine, as well as quantities of cocaine base, heroin and fentanyl during the course of and in furtherance of the conspiracy.
Davis, Boyd and the government have agreed that, if the Court accepts their plea agreements, Davis and Boyd will be sentenced to 10 years and seven years in federal prison, respectively. Judge Hollander has scheduled sentencing for Davis and Boyd on December 8, 2020.
Of the 25 defendants indicted in this case, eleven—including Lemon, Davis, and Boyd—have pleaded guilty. The remaining defendants have trial dates in January or May 2021.
This case was investigated as part of the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, an initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. In addition to the Maryland U.S. Attorney’s Office, members of the Strike Force include the Baltimore City State’s Attorney’s Office, DEA, FBI, Homeland Security Investigations, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Postal Inspection Service, the U.S. Marshals Service, the Washington/Baltimore HIDTA, the Maryland State Police, the Maryland Department of Public Safety and Correctional Services, the Maryland Transportation Authority Police, the Maryland National Guard, Baltimore County, Baltimore City, and Anne Arundel County Police Departments, and the Baltimore City Sheriff’s Office.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
# # #