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Tuesday 1 September 2020
Rock Hill Men Sentenced to More than 20 Total Years in Federal Prison on Drug and Money Laundering ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Brandon Marquis Kimble, 30, and Cravelyn Squilla Davis, 25, both of Rock Hill, were sentenced in federal court after pleading guilty to conspiracy to possess with the intent to distribute controlled substances and money laundering. Kimble was sentenced to 11 years, and Davis was sentenced to 12 years.
Evidence presented to the court showed that this case stemmed from a joint investigation by the Federal Bureau of Investigation (FBI) and the Rock Hill Police Department into individuals who were obtaining large amounts of cocaine, methamphetamine, and marijuana from a distributor in Southern California. Some of these individuals were flying to California and shipping the drugs back to the Rock Hill area, including Charlotte, N.C. Kimble and Davis were a part of this organization, which later began to obtain fentanyl and began to press fake prescription pills that were sold on the streets.
United States District Judge Mary G. Lewis sentenced Kimble to 132 months in federal prison and Davis to 144 months in federal prison, with both sentences to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), Rock Hill Police Department, and York County Sheriff's Office. Assistant United States Attorneys William K. Witherspoon, T. DeWayne Pearson, and Elliott B. Daniels, all of the Columbia office, prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Riverton Man Pleads Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
SALT LAKE CITY – Justin Peck, 47, of Riverton, entered a plea of guilty to one count of operating an unlicensed money transmitting business in federal court in Utah recently, admitting that he owned several companies that were operating as unlicensed money transmitting businesses from as early as 2012 through sometime in 2019.
As a part of a plea agreement reached with federal prosecutors, Peck stipulated that his companies that did not comply with federal law and regulations for money transmitting business registration requirements.
Specifically, Peck admitted he received checks from general contractors for drywall labor. He cashed those checks and deliver the money to subcontractors or other individuals who were responsible for paying the laborers. For his services, Peck would keep a fee of 6-10% of the contractor’s check. From 2012 through 2019, Peck transmitted at least $58,248,103.38.
Investigators believe the purpose of the business was to avoid employment taxes and higher workers compensation premiums.
Peck waived indictment and was charged in a Felony Information filed in July 2020.
Peck earned significant income through his business and failed to report it on his personal taxes. As a part of his plea agreement, Peck agreed to file accurate and complete personal tax returns for the tax years 2012-2017. He also agreed to forfeit his interest in property.
He faces up to five years in prison when he sentenced Nov. 5, 2020, by U.S. District Judge Howard C. Nielson, Jr.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Special agents with IRS-Criminal Investigation are investigating the case.
Pittsburgh Felon Charged with Illegally Possessing Fentanyl, Heroin, Firearm and AmmuntionRead the Press Release
PITTSBURGH, PA. One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment named Herbert Walker, 25, as the sole defendant.
According to the Superseding Indictment, Walker is alleged to have possessed with the intent to distribute fentanyl and heroin and possessed a firearm and ammunition as a convicted felon.
The law provides for a maximum total sentence of sixty years in prison, a fine of $5,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allegheny County Police Department conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pike County Man Sentenced to 30 Years in Prison Following Federal Gun and Drug ConvictionsRead the Press Release
Montgomery, Alabama – On Friday, August 28, 2020, Osie Lee Davis., a 49-year-old resident of Troy, Alabama, was sentenced to 360 months in prison following federal gun and drug convictions, announced United States Attorney Louis V. Franklin, Sr., ATF Acting Special Agent in Charge Toby C. Taylor, and Troy Police Chief Randall Barr. Davis was also ordered to serve six years of supervised release after he completes his prison sentence. There is no parole in the federal system.
Based on his substantial criminal history, which included at least eight prior felony drug convictions, the judge determined that Davis qualified as a career offender under the federal sentencing guidelines and was subject to sentencing enhancements under the Armed Career Criminal Act of 1984. These rulings significantly increased the guidelines range for Davis and resulted in a 30-year sentence.
Evidence presented during Davis’ October 2019 trial showed that just before midnight on January 31, 2017, the Troy Police Department observed Davis driving a vehicle with the headlights off and performed a traffic stop. The officer discovered that Davis had a suspended license and outstanding arrest warrants. When officers took Davis into custody and searched him, they discovered multiple drugs, which were packaged for sale, inside a pouch in his jacket pocket. The narcotics included marijuana, methamphetamine, cocaine, and clonazepam. A handgun was also found next to the driver’s seat of the vehicle. Davis has multiple previous felony convictions and is prohibited by federal law from possessing a firearm.
A second encounter with law enforcement occurred on October 5, 2018 in Troy, just after midnight. Troy police conducted a traffic stop due to a headlight being out and, while arresting Davis for yet another outstanding warrant, they found cocaine and marijuana in the vehicle. Once Davis was taken into custody and booked into the Troy City Jail, several additional baggies of cocaine, which were packaged for sale, were discovered in one of his shoes.
The Troy Police Department joined with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to investigate and ultimately bring the case up for federal prosecution. After hearing all the evidence from the Troy Police Department and ATF during his trial, a federal jury found Davis guilty on six counts of possessing illegal drugs with intent to distribute, one count of being a felon in possession of a firearm, and one count of possessing a firearm in connection with a drug trafficking offense.
“Drug trafficking encompasses more than simply selling narcotics, it also tears families apart, destroys lives, and heightens the potential for violence throughout our communities,” stated U.S. Attorney Franklin. “Mr. Davis has a long history of criminal conduct that spans decades. He has multiple convictions for drug distribution and has had numerous opportunities to change, but each time he chose to return to the same way of life. Thirty years is a significant sentence, but it is one that Mr. Davis earned for himself. I would like to thank the agencies involved in this investigation and I am grateful that Mr. Davis will no longer be a threat to the citizens of Troy and the surrounding communities.”
“Removing the criminal element that uses a firearm to facilitate violent crimes is a priority of ATF,” stated ATF Acting Special Agent in Charge Toby Taylor. “This focused investigation of an individual with an extensive criminal history will have a lasting impact within this community.”
“This is a significant arrest that will go a long way in making our streets and our community safer,” said Troy Police Chief Randall Barr. “Davis has proven that after multiple convictions he has no intention of changing his ways and continues to distribute dangerous illegal drugs. The sentence handed down in this case sends a strong message that this type behavior will not be tolerated. We truly appreciate the cooperation and hard work invested in this case by everyone involved to bring this case to a successful end.”
The Troy Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorneys Eric Counts and Robert Nichols prosecuted this case.
Owner of Japanese fishing vessel charged with unlawful trafficking of shark finsRead the Press Release
HONOLULU – Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court today with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act.
The charge arose from the November 2018 discovery of approximately 962 shark fins weighing approximately 190 pounds from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (“Kyoshin Maru”). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about November 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic white tip shark has declined by approximately 80-95% across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In announcing the charge, U.S. Attorney for the District of Hawaii, Kenji M. Price stated: “Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem. My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
United States laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass; and the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark—including three species found among the fins at issue in this case—are protected under the CITES Convention.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service; and the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the District of New Mexico. Operation Legend was launched in Albuquerque on July 22, 2020, in response to the city facing a record-breaking homicide rate.
United States vs. Manuel A. Chavira
“Cases like this one are what Operation Legend is all about. The violent and unprovoked actions described in the complaint contribute to the growing perception that Albuquerque is a dangerous city in which violent crime continues unchecked and out of control,” said U.S. Attorney John C. Anderson for the District of New Mexico. “Operation Legend sends a strong message that federal law enforcement, working in concert with their state and local partners, will not stand idly by while the residents of Albuquerque live in fear of falling victim to senseless violence. I commend the FBI and the New Mexico State Police for their seamless investigation and diligent pursuit of this defendant.”
Manuel A. Chavira, 25, was charged on Aug. 3, 2020, with carjacking and discharging a firearm during and in relation to a crime of violence according to a criminal complaint filed in the U.S. District Court of New Mexico. The Federal Bureau of Investigation (FBI) and New Mexico State Police Department (NMSP) launched an investigation and search for Chavira. Chavira surrendered in Las Cruces, New Mexico, on Aug. 20, 2020.
According to the criminal complaint, on July 18, 2020, Chavira approached two female victims who were in their vehicle in the parking lot of a church at the San Jose De Armijo Cemetery in the South East area of Albuquerque. Chavira initially asked if he could charge his phone in the vehicle. As the phone would not charge, he asked to borrow the driver’s phone, ostensibly to find a tow truck for his vehicle. The driver complied, and he used the phone to make a number of calls.
After the driver exited her vehicle to remove a sweater from her trunk, however, Chavira brandished a firearm and told her that he needed to take her vehicle. The passenger protested, but the driver removed her keys from the ignition to give them to Chavira. Chavira reportedly then racked the slide on the firearm, an indication that he had chambered a round of ammunition. Chavira then pointed the firearm, shouting, “Do you want me to shoot her? Do you want me to shoot her?” Both victims fled, at which point they heard gunshots being fired.
The victims described the firearm as black and possibly .22 or .25 caliber. The victims were able to identify Chavira from photos as the suspect. Chavira left the scene driving the victims’ blue 2019 Honda Civic SI.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri while he slept in his home.Since Operation Legend’s launch in Kansas City, Mo., on July 8, 2020, it has expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020, As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshal Service, DEA and ATF to surge resources these cities to help state and local officials fighting violent crime. Since its inception, Operation Legend has yielded close to 1500 local, state, and federal arrests.
Operation LeGend Results in 355 Arrests, Including 33 Murder SuspectsRead the Press Release
KANSAS CITY, Mo. – U.S. Attorney Tim Garrison announced today that 355 arrests have been made by local and federal law enforcement officers in Operation LeGend.
Among those arrested since the launch of the operation, 88 are federal defendants in the Western District of Missouri and 21 are federal defendants in Kansas (18) and Texas (3). Among the remaining 246 arrests, 33 were homicide cases and 62 were fugitives with either state or federal warrants for their arrest. The remaining 151 non-fugitive arrests were either supervised release violators or were referred for prosecution in state court.
In addition to the arrests, agents and officers have seized 122 firearms during Operation LeGend.
The U.S. Attorney’s Office is not able to track cases that are referred for prosecution in state court or in other districts. Defendants have been charged in the Western District of Missouri with the following federal crimes:
- 35 defendants have been charged with being a felon in possession of a firearm;
- 26 defendants have been charged with drug trafficking;
- Five defendants have been charged with being a drug user in possession of a firearm;
- Six defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
- Five defendants have been charged with being in possession of a firearm in furtherance of violent crime;
- Two defendants have been charged with being a felon in possession of ammunition;
- Four defendants have been charged with armed robbery;
- Three defendants have been charged with carjacking; and
- Two defendants have been charged with arson.
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.Ohio man indicted on carjacking and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ryan Ashley Hubbs, of Paris, Ohio, is facing federal charges involving a carjacking and firearms, U.S. Attorney Bill Powell announced.
Hubbs, 37, was indicted today on one count of “Unlawful Possession of Firearm,” one count of “Carjacking,” and one count of “Use of Firearm During Crime of Violence.” Hubbs, who is prohibited from having a firearm because of a previous crime, is accused of using a .380 caliber pistol to steal a Honda CR-V in Lewis County in October 2016.
Hubbs faces up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession and carjacking charges. He no less than seven years of incarceration and a fine of up to $250,000 for the violence crime charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Lewis County Sheriff Office; and the Weston Police Department and investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
North Texas Men, Including a Head Pastor of a Church, Indicted on Child Pornography ViolationsRead the Press Release
PLANO, Texas – Two North Texas men have been charged with child exploitation crimes in the Eastern District of Texas announced U.S. Attorney Stephen J. Cox today.
David Pettigrew, 48, of Denison, Texas, and Chad Michael Rider, 46, of Anna, Texas have been charged in an indictment returned by a grand jury with conspiring to sexually exploit children (also referred to as production of child pornography). Pettigrew was additionally charged with transporting child pornography. Both men have entered “not guilty” pleas to the charges.
Pettigrew came to the attention of law enforcement officials through referrals sent by two electronic surveillance providers and the National Center for Missing and Exploited Children. Those referrals identified a computer user who uploaded suspected child pornography onto their online platforms. On August 6, 2020, Homeland Security Investigations agents executed federal search warrants at Pettigrew’s residence and the Denison Church of the Nazarene, after which, agents arrested Pettigrew. Agents executed a search warrant at Rider’s residence on August 21, 2020. Until recently, Pettigrew had served as pastor of the Denison Church of the Nazarene. Rider is a resident of Anna, Texas.
If convicted, Pettigrew and Rider face a minimum of 15 years and up to 30 years in federal prison.
The investigation has revealed that a number of children were surreptitiously photographed in private locations or outside of the presence of their parents. Any members of the public with information about this case or possible victims are urged to contact Homeland Security Investigations at [email protected]. Members of the community are urged to send a detailed message (including contact information) with information about any possible private interactions with Pettigrew or Rider to the email above.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations and the Grayson County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Marisa J. Miller and Jay Combs.
It is important to note that an indictment or arrest should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
New Haven Men Charged with Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut; Patrick Griffin, State’s Attorney for the Judicial District of New Haven; New Haven Police Chief Otoniel Reyes; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that DENZEL SUGGS, 26, and JAQUAN GRAY, 26, both of New Haven, have been arrested on federal criminal complaints charging each with possession of a firearm by a convicted felon.
Suggs was arrested on August 28 and Gray was arrested earlier today. Both are detained.
These prosecutions are part of a coordinated federal, state and local law enforcement effort to address rising gun violence in New Haven. Participating in this effort are the New Haven Police Department; the FBI’s New Haven Safe Streets/Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the New Haven State’s Attorney’s Office, and the U.S. Attorney’s Office.
As alleged in court documents and statements made in court, on July 31, 2020, law enforcement received information that several members of the “Exit 8” group were in possession of firearms near the entrance of the Essex Townhouses complex at 1134 Quinnipiac Avenue in New Haven. Members of the New Haven Police and the FBI’s New Haven Safe Streets/Gang Task Force entered the housing complex at approximately 10 p.m. and identified several Exit 8 members. Suggs and Gray ran from the scene as law enforcement arrived and ignored commands to stop. Both were quickly apprehended. A search of Suggs’ person revealed a loaded Taurus PT-22, .22 caliber firearm, and a search of a fanny pack Gray was wearing revealed a loaded Smith and Wesson Model 469, 9mm firearm, which had been reported stolen in Hamden in 2018.
It is further alleged that both Suggs and Gray have been previously convicted of state weapon and drug felony offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Suggs appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven for a detention hearing. During the hearing, the government presented evidence alleging that Suggs was present during a homicide that occurred on August 15, 2020, in New Haven.
The charge of unlawful possession of a firearm by a convicted felon carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
New Haven Cocaine Dealer Sentenced to Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC YOPP, also known as “E-Love,” 34, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to 21 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
Numerous conversations and text messages intercepted during the investigation revealed that Yopp was acquiring and distributing cocaine.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging 25 individuals with federal narcotics offenses related to the distribution of crack cocaine, cocaine and heroin. Yopp and another individual were added as defendants in a superseding indictment that was returned on November 25, 2019.
Yopp was arrested on November 26, 2019. At the time of his arrest, he possessed approximately two grams of cocaine and items used to process and package narcotics for street sale.
Yopp has been detained since his arrest. On June 10, 2020, he pleaded guilty to one count of possession with intent to distribute cocaine.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Elena L. Coronado.
New Britain Man Sentenced to 46 Months in Federal Prison for Trafficking FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS SOTO, also known as “Puchie,” 39, of New Britain, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 46 months of imprisonment, followed by three years of supervised release, for trafficking firearms.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Reyes. Court-authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates who sold drugs on his behalf. Intercepted communications also revealed that Norman Klosek of Enfield was acting as a “straw purchaser” of firearms for Reyes. Klosek, who was addicted to heroin/fentanyl, purchased and then illegally sold, or “loaned,” a total of 47 handguns to support his drug addiction.
On April 22, 2019, multiple intercepted communications revealed that Reyes and Soto were brokering a gun deal where Julio Martinez, of New Britain, arranged to purchase two firearms from Reyes and Soto for $800. On that date, Reyes picked up Klosek in Enfield and drove to a licensed gun dealer in Newington where Klosek, who had a valid state firearm permit, purchased two handguns. Klosek then provided the guns to Reyes. After the purchase, law enforcement observed Reyes, Soto and Martinez at a location on High Street in New Britain. Martinez then left the High Street location and traveled by car to a nearby grocery store. Investigators believed that Martinez was in possession of the two firearms, but Martinez, in fact, had traveled to the grocery store to use an ATM to retrieve cash for the firearms purchase. Investigators stopped and searched Martinez as he attempted to exit the store. The search revealed $850 in cash. Later that day, investigators conducted a traffic stop of Reyes’ vehicle in New Britain and seized the two firearms.
Soto, Reyes, Martinez and several co-defendants were arrested on federal criminal complaints on June 17, 2019. On that date, investigators seized two additional guns that had been purchased by Klosek.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Soto, Reyes, Martinez and 12 associates with various narcotics trafficking and firearm possession offenses.
Soto has been detained since his arrest. On December 12, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
Reyes, Martinez and Klosek also pleaded guilty. On June 30, 2020, Martinez was sentenced to 46 months of imprisonment. Reyes and Klosek await sentencing.
To date, approximately 11 of the 47 guns purchased by Klosek have been recovered by law enforcement. One gun was recovered after it was used in a shooting in Hartford on August 22, 2019.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the New Britain Police Department have provided valuable assistance to the investigation. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Morris County Resident Sentenced to 94 Months in Prison for Computer Intrusions that Targeted Two New Jersey CompaniesRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, resident was sentenced today to 94 months in prison for perpetrating a sophisticated computer hacking scheme that targeted two companies in New Jersey, U.S. Attorney Craig Carpenito announced.
Ankur Agarwal, 45, of Montville, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of obtaining information from computers and one count of aggravated identity theft. Judge Wigenton imposed the sentence today.
According to documents filed in this case and statements made in court:
Beginning in February 2017, Agarwal admitted that he physically trespassed onto a company’s premises in New Jersey (Company One). Agarwal illegally installed hardware key-logger devices onto Company One’s computers. The key-logger devices covertly recorded the keystrokes of the company’s employees and gave Agarwal their usernames and passwords. Agarwal also surreptitiously installed his personal computer and a hard drive onto the company’s computer network. Using the fraudulently obtained logon credentials of company employees, Agarwal hacked into the company’s computer network and targeted various employees, including employees developing an emerging technology. Agarwal admitted that he stole, transferred, and exfiltrated Company One’s data and information, including its emerging technology. Agarwal also created a malicious computer code designed to exfiltrate data, installed it on the company’s computer systems, and executed the code to steal and transfer data to himself.
Agarwal also admitted that he hacked into, targeted, and stole data and information from a second company in New Jersey (Company Two). Using the same general scheme, Agarwal physically trespassed onto Company Two’s premises, illegally installed hardware key-logger devices onto the company’s computers, installed his personal computer and a hard drive onto the company’s computer network, and stole, transferred, and exfiltrated Company Two’s data and information, including an emerging technology that Company Two was developing.
In furtherance of his hacking scheme against Company Two, Agarwal also obtained unauthorized access into an employee’s computer system and then fraudulently created an access badge for himself. This fraudulently obtained access badge, bearing another individual’s name, allowed Agarwal to physically trespass onto Company Two’s premises.
In addition to the prison term, Judge Wigenton sentenced Agarwal to three years of supervised release and fined him $25,000.
U.S. Attorney Carpenito credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the Cybercrime Unit in Newark.
Minnesota Woman Sentenced in Federal Firearms CaseRead the Press Release
United States Attorney Ron Parsons announced that a Brooklyn Park, Minnesota, woman convicted of Conspiracy to Make a False Statement During the Purchase of a Firearm was sentenced on August 10, 2020, by U.S. District Judge Karen E. Schreier.
Justice May Yang, age 25, was sentenced to five years in federal prison, followed by 3 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Yang was indicted for Conspiracy to Make a False Statement During the Purchase of a Firearm by a federal grand jury on June 6, 2019. She pled guilty on May 27, 2020.
On May 15, 2017, Yang went to purchase a gun in Sioux Falls, South Dakota, with an acquaintance, specifically a Ruger model SR 40, 40 caliber semi-automatic handgun bearing serial number 342-99157. Yang knew she was prohibited from purchasing a firearm because she was a fugitive from justice. Yang, along with her acquaintance, completed the ATF Form 4473 in the presence of two clerks. Yang’s acquaintance signed the Form 4473 verifying the information to be true. Question 11.a. asks: “Are you the actual transferee/buyer of the firearm(s) listed on this form?” To that question, Yang falsely marked “Yes” on behalf of her acquaintance, and her acquaintance falsely verified the answer to be true by signing the form as “Transferee/Buyer.” Yang paid for the firearm and kept it.
On May 25, 2017, Yang and her acquaintance again went to buy another firearm – a Ruger model 9E (black in color), 9 millimeter semi-automatic handgun, serial number 337-78160, with laser sight. Yang and her acquaintance knew Yang was still prohibited from purchasing firearms. To purchase the handgun, Yang’s acquaintance filled out ATF Form 4473 and falsely verified he was the actual buyer. Yang took possession of the firearm.
On August 12, 2017, Yang was shopping online. She found a previously owned gun on a website, with a location in Sioux Falls – a Ruger model SR 40C, 40 caliber, semi-automatic handgun, serial number 343-94362. Yang contacted her acquaintance and told him about the gun she wanted. Yang wired the money to her acquaintance so he could buy the firearm for her. Yang’s acquaintance picked up the wired money and went to the store, where he bought the handgun chosen by Yang. To purchase the handgun, Yang’s acquaintance filled out ATF Form 4473 and falsely verified he was the actual buyer. Yang’s acquaintance then drove to Madison, Wisconsin, where he gave the firearm to Yang.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent 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/projectguardian.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sioux Falls Police Department. Assistant U.S. Attorney John E. Haak prosecuted the case.
Yang was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Charged with COVID-Relief FraudRead the Press Release
A Michigan man was arrested today in connection with a wire fraud scheme involving $3.1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office, and Inspector General Hannibal Mike Ware of the SBA’s Office of the Inspector General (OIG) made the announcement.
Antonio George, 44, of Novi, Michigan, was charged with a criminal complaint, unsealed today, in the Eastern District of Michigan with one count of wire fraud. He made his initial appearance today before U.S. Magistrate Judge David R. Grand.
The complaint alleges that George was the nexus in an attempt to obtain approximately $3.1 million in PPP loans through applications to insured financial institutions, and others, on behalf of 19 different companies. The complaint alleges that George provided false and misleading documents about certain of the companies’ respective business operations and payroll expenses. As an example of such false documentation, the complaint alleges that George submitted identical wage information and employee count records for two separate companies. One of those companies has allegedly not been operational since 2015.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The CARES Act also authorizes the SBA to provide Economic Injury Disaster Loans (EIDL) of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and the SBA-OIG. Trial Attorney Patrick J. Suter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John K. Neal of the Eastern District of Michigan are prosecuting the case.
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.
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.
Michigan Man Charged with Covid-Relief FraudRead the Press Release
A Michigan man was arrested today in connection with a wire fraud scheme involving $3.1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and Inspector General Hannibal Mike Ware of the SBA’s Office of the Inspector General (OIG), made the announcement.
Antonio George, 44, of Novi, Michigan, was charged with a criminal complaint, unsealed today, in the Eastern District of Michigan with one count of wire fraud. He made his initial appearance today before U.S. Magistrate Judge David R. Grand.
The complaint alleges that George was the nexus in obtaining approximately $3.1 million in PPP loans through applications to insured financial institutions, and others, on behalf of 19 different companies. The complaint alleges that George provided false and misleading documents about certain of the companies’ respective business operations and payroll expenses. As an example of such false documentation, the complaint alleges that George submitted identical wage information and employee count records for two separate companies. One of those companies has allegedly not been operational since 2015.
“Small businesses across Michigan have received loans from the Paycheck Protection Program, and these loans have kept these businesses alive,” stated United States Attorney Schneider. “Every dollar stolen from the program is a dollar stolen from struggling businesses in need. So to the scammers, if you think law enforcement isn’t paying attention to the damage you’re doing to Michigan business owners, you’re dead wrong and we will be coming after you.”
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The CARES Act also authorizes the SBA to provide Economic Injury Disaster Loans (EIDL) of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and the SBA-OIG. Trial Attorney Patrick J. Suter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John K. Neal of the Eastern District of Michigan are prosecuting the case.
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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Meth Dealer Sentenced to Five Years in PrisonRead the Press Release
PROVIDENCE – A Providence man who was one of twenty-six people indicted by a federal grand jury in September 2018 as the result of a series of ATF Task Force and FBI Safe Streets Task Force undercover Project Safe Neighborhoods investigations targeting individuals illegally obtaining and/or trafficking firearms, and trafficking narcotics, was sentenced today to five years in federal prison for trafficking methamphetamine.
According to court documents, in September 2018, Jason Moriera, 39, of Providence, sold an individual 56.5 grams of methamphetamine for $2,000. The transaction was monitored by members of law enforcement. The drugs were quickly seized by law enforcement.
As the result of the ATF and FBI investigations, twenty-six individuals were indicted and more than two-dozen firearms, including three AK-47 and two AR-15 assault rifles, along with significant quantities of heroin, fentanyl, crack cocaine, and methamphetamine were seized.
Many of the individuals arrested as a result of these Project Safe Neighborhoods were members of or associated with street gangs.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Moreira pleaded guilty on May 22, 2020, to possession with intent to distribute and distributing 50 grams or more of methamphetamine. Appearing today before U.S. District Court Judge William E. Smith, Moreira was sentenced to 60 months in federal prison to be followed by 4 years’ supervised release.
Moriera’s sentence is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Meridian Man Pleads Guilty under Project EJECT to Illegal Possession of Multiple FirearmsRead the Press Release
Jackson, Miss. – Marquis Howard McNeely, 38, of Meridian, pled guilty today before U.S. Chief District Court Judge Daniel P. Jordan III to two counts of possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 24, 2019, at approximately 4:00 a.m., a Lauderdale County Sheriff’s Office deputy was on patrol on Highway 19 when the deputy encountered McNeely parked in the wrong lane of traffic. He was found to be intoxicated and he was placed under arrest. A search of McNeely’s vehicle found a stolen pistol. McNeely was charged and released on bond.
On October 8, 2019 McNeely drove up to a traffic safety checkpoint being conducted by the Lauderdale County Sheriff’s Office at the intersection of State Boulevard and Chandler Road. A deputy approached McNeely’s car and immediately saw that McNeely had an assault rifle style pistol held between his right knee and the center console. McNeely was again arrested and charged.
McNeely was indicted by a federal grand jury on November 19, 2019 for being a previously convicted felon in possession of firearms. McNeely has prior felony convictions for felony DUI, aggravated assault and manslaughter. He is currently in custody and will be sentenced on November 20, 2020 by Judge Jordan. He faces a maximum penalty of ten years in prison and up to $250,000 in fines on each count.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Liberty County man sentenced to federal prison for enticing a child for sexual activityRead the Press Release
BRUNSWICK, GA: A Liberty County man will spend more than 12 years in federal prison for persuading a 12-year-old child to engage in sexual activity.
Casey Austin Desmuke, 31, of Hinesville, was sentenced to 151 months in federal prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to one count of Coercion and Enticement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Desmuke also must pay $50,000 in restitution, and after completion of his prison term must serve 10 years of supervised release. There is no parole in the federal system.
“It is the depth of depravity than for an adult to coerce a pre-teen child for his sexual gratification,” said U.S. Attorney Christine. “Our community’s most vulnerable citizens will be protected from this predator for at least the next dozen years while he’s locked away from society.”
Desmuke was arrested in July 2019 after an investigation determined he had communicated with a 12-year-old and later transported the child to his home to engage in sexual activity. He also faces pending state charges for similar activity that occurred in 2010 in Waco, Texas.
“We must diligently pursue any adult who would take advantage of a young child for sex,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No sentence could ever erase the trauma that scars a child for life. We can only take solace in the fact that Desmuke won't be able to harm another child for a long time.”
The case was investigated by the FBI, the Coffee County Sheriff’s Office and the Liberty County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo and Special Assistant U.S. Attorney Katelyn Semales.
Lexington Woman Sentenced to Nearly Six Years in Federal Prison on Drug ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Candice Johnson Dooley, 40, of Lexington, was sentenced to nearly six years in federal prison after pleading guilty to possession with intent to distribute methamphetamine and cocaine.
Evidence presented in court established that on December 21, 2018, deputies with the Lexington County Sheriff’s Department responded to Dooley’s residence in search of a fugitive. Dooley allowed law enforcement to look inside the residence, and upon entering, they observed drug paraphernalia in plain view. Law enforcement obtained and executed a search warrant on the residence and located approximately 241 grams of methamphetamine, approximately two grams of cocaine, baggies commonly used to package drugs for individual sales, and digital scales. Dooley admitted to possessing the drugs and making drug sales.
United States District Judge Mary G. Lewis sentenced Dooley to 70 months in federal prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. This case was prosecuted as part of the joint federal, state, and local 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. Assistant United States Attorney William K. Witherspoon of the Columbia office, along with Special Assistant United States Attorney Casey Rankin Smith of the 11th Judicial Circuit, prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Lexington Couple Plead Guilty to Fentanyl Trafficking Resulting in Serious Bodily InjuryRead the Press Release
LEXINGTON, Ky. - Sierra Monique Green, 24, and Martinus Shamar Watts, 31, both of Lexington, have pleaded guilty before U.S. District Judge Karen Caldwell, to conspiring with others to distribute 40 grams or more of fentanyl and distribution of fentanyl resulting in serious bodily injury.
According to court records, including Green’s plea agreement, from March 2019 until September 2019, Martinus Watts, Green, , and Karmon Jamel Watts, 26, conspired to distribute more than 40 grams of fentanyl. Additionally, on March 20, 2019, Martinus Watts and Green delivered approximately one-half gram of fentanyl to a victim. The victim ingested a portion of the substance and lost consciousness. First responders arrived shortly thereafter to find the victim not breathing. After administering several doses of Narcan, the victim was revived, received medical treatment and survived the overdose.
On June 20, 2019, law enforcement executed a search warrant at the residence shared by Martinus Watts and Green. Officers located $67,000 in U.S. currency, 2 loaded firearms, and various controlled substances. In their plea agreements, both Watts and Green admitted that the currency was the proceeds of their drug trafficking activity.
Martinus Watts pleaded guilty in August 2020, and Green entered her guilty plea yesterday. Karmon Jamel Watts pleaded guilty in May 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge for the Drug Enforcement Administration, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Gary Todd Bradbury.
Martinus Shamar Watts is scheduled to be sentenced on November 19, 2020. Green is scheduled to be sentenced on November 30, 2020. Each face a mandatory minimum of 20 years in prison for the crime of distribution of fentanyl resulting in serious bodily injury, and a mandatory minimum of 5 years for the conspiracy to distribute fentanyl charge. Karmon Watts faces a mandatory minimum of 5 years imprisonment for the fentanyl conspiracy. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Letter Carrier Indicted for Stealing from the U.S. MailRead the Press Release
SYRACUSE, NEW YORK – Thomas J. Joslin, age 57, of North Syracuse, New York, made his initial appearance today on charges that he stole gift cards from mail entrusted to him when he was a letter carrier for the United States Postal Service. The charges were announced by United States Attorney Grant C. Jaquith and Special Agent in Charge Matthew Modafferi, United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office.
The indictment alleges that Joslin stole gift cards from multiple pieces of mail intended for delivery to other people on various dates in 2019. The three felony charges in the indictment each carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the United States Postal Service-Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Las Vegas Tax Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas tax preparer was sentenced today by U.S. District Judge Andrew P. Gordon to 12 months and one day in federal prison, to be followed by one year of supervised release, for falsely inflating deductions in his clients’ tax returns and underreporting taxable income (and claiming false expenses) in his own tax returns, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation. Collectively, the false tax returns caused approximately $265,000 in losses to the IRS.
William Pamintuan Craig, 60, pleaded guilty on October 28, 2019, to making and subscribing a false tax return. According to court documents, since at least 2012, Craig operated a tax return preparation business in Las Vegas. When preparing his own tax returns, Craig concealed the actual revenue from his tax preparation business and claimed false work expenses. He underreported his taxable income for tax years 2012 to 2017 by a total of approximately $439,000, causing $143,237 in tax loss to the IRS. Craig also fraudulently claimed false “deductions” in his clients’ tax returns. Between 2012 and 2017, Craig caused at least $128,000 in tax loss by filing false returns for his clients.
In addition to imprisonment and supervised release, the court also ordered Craig to pay $143,237 in restitution to the IRS.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Tony Lopez prosecuted the case.
If you suspect a tax preparer or tax preparation business is not complying with the U.S. tax laws, complete and submit a Return Preparer Complaint form with the IRS. More information about reporting suspected tax fraud activity may be found at https://www.irs.gov/.
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Las Vegas Man Indicted for Scheme Targeting Church FundsRead the Press Release
LAS VEGAS, Nev. — Oluremi Akinleye, 40, of Las Vegas, made his initial appearance in federal court today for his role in a conspiracy to fraudulently obtain money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
A federal grand jury returned an indictment on August 25, 2020, which was unsealed today, charging Akinleye with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of possession of 15 or more counterfeit and unauthorized access devices, and three counts of aggravated identity theft. Akinleye was arrested on August 28, 2020. A jury trial has been set before U.S. District Judge Gloria M. Navarro on November 2, 2020.
According to court documents, from November 2017 to July 2018, Akinleye and his co-conspirators conspired to steal money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund. Both funds provide financial services to members of the religious community, including ministers. As part of the scheme, Akinleye and his co-conspirators fraudulently obtained the names and personal identifying information of certain account holders. Akinleye then used that information to impersonate those individuals, making withdrawals and transfers from their accounts. Through this scheme, Akinleye and his co-conspirators attempted to fraudulently obtain over $400,000 from the two funds.
The statutory maximum sentence is 20 years in prison for conspiracy to commit wire fraud; 20 years in prison for each count of wire fraud; and 10 years in prison for possession of 15 or more counterfeit and unauthorized access devices. The statutory minimum for aggravated identity theft is two years in prison. In addition to imprisonment, Akinleye also faces a period of supervised release, restitution, monetary penalties, and asset forfeiture.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the FBI. Assistant U.S. Attorney Simon F. Kung is prosecuting the case.
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Las Cruces man pleads guilty to Attempted Coercion and Enticement of a MinorRead the Press Release
ALBUQUERQUE, N.M. – Ismael Valdez, 37, of Las Cruces, New Mexico, pleaded guilty in federal court in Las Cruces on Aug. 27 to attempted enticement of a minor.
In the plea agreement, Valdez admitted to committing the offenses between April 29 and May 29 of this year. According to a criminal complaint, Valdez allegedly sent a sexually explicit video to an undercover law enforcement officer posing as a 13-year-old girl on a social networking application. Valdez also asked the person he thought was a child to send sexually explicit material of herself to him. Valdez arranged to meet the person he believed was a child to have sex and traveled from his home in Las Cruces to the meeting location where law enforcement agents arrested him.
Valdez is currently in custody awaiting sentencing, which has not been scheduled at this time. The plea agreement calls for a 12-year prison sentence.
FBI investigated this case. Assistant U.S. Attorney Matilda McCarthy Villalobos is prosecuting the case.
Jury Convicts Cocoa Man of Possessing A Firearm After Having Been Convicted of A FelonyRead the Press Release
Orlando, Florida – A federal jury today found Raymond Lee Kelly (52, Cocoa, FL) guilty of possessing a firearm after having been convicted of a felony. Because of his extensive criminal record, which includes drug trafficking convictions, resisting arrest with violence, battery on a law enforcement officer, and possession of a firearm in furtherance of a drug trafficking offense, Kelly is qualified as an Armed Career Criminal and faces a 15-year mandatory minimum prison sentence. Kelly was also on supervised release from a federal prison sentence when he committed the offense for which he was found guilty. His sentencing hearing is scheduled for November 17, 2020.
According to testimony and evidence presented at trial, Kelly, a convicted felon, fled from a traffic stop in Cocoa Beach, Florida. First, he crashed his vehicle shortly after fleeing. He then he fled on foot toward the beach, leaving behind cannabis, a digital scale, a Ruger semi-automatic handgun and 16 rounds of ammunition.
This case was investigated by the Federal Bureau of Investigation and the Cocoa Beach Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jonesboro Prosecutor Partners with United States Attorney's OfficeRead the Press Release
JONESBORO—A Deputy Prosecuting Attorney in Craighead County has been named a Special Assistant United States Attorney, enabling her to assist in federal prosecutions. Charlene Davidson Henry, a Jonesboro resident who has practiced law in Arkansas since 1999, has been hired by United States Attorney Cody Hiland for the Eastern District of Arkansas.
“Violent crime reduction has been the top priority of our office, and we want to continue by focusing on Craighead County,” U.S. Attorney Hiland said. “We are confident that Ms. Henry’s training and experience will make her an asset to our team and will have an impact in reducing violent crime in Northeast Arkansas.”
United States Attorney’s Offices across the nation have the ability to hire state prosecutors as Special Assistant United States Attorneys (SAUSAs). This equips state prosecutors to work federal cases while maintaining their state position. Since 2017, the Eastern District of Arkansas has emphasized partnerships with SAUSAs in order to carry an increased caseload. In 2018, federal prosecutions increased by 82%, largely based on prosecutions of felons who possess firearms. This increase resulted in federal prosecutors in the Eastern District of Arkansas having the fifth-highest caseload in the nation.
The heavy focus on prosecuting violent crime resulted in a 24% reduction in homicides in Little Rock for 2018. That same year, similar efforts in West Memphis produced a 43% decrease in homicides. Both cities also saw reductions in non-fatal shootings, terroristic acts, and battery cases. “We want these efforts with our state and local partners to continue making a difference in the communities we serve, and Craighead County is no exception,” stated Hiland.
“Ms. Henry is an outstanding lawyer. She is tough but fair, and her experience as a public defender makes her especially qualified to evaluate cases from the prosecution side,” stated Scott Ellington, Prosecuting Attorney for the Second Judicial District. “Our office is proud to participate in this joint endeavor with our federal partners by sharing the talents of one of our best prosecutors.”
Henry currently prosecutes digital crimes, sex crimes, and gun crimes for Craighead County. She has previous experience as a Task Force Coordinator for the Second Judicial Drug Task Force, where she trained Task Force members and coordinated prosecutions between multiple jurisdictions. She now serves as the Task Force Coordinator for the Second Judicial District Organized Criminal Activity Task Force, which investigates offenses including drug trafficking, money laundering, arms trafficking and possession, crimes of violence such as murder and aggravated assault, robbery, and violent street gangs. In her 13 years as a lawyer with the Arkansas Public Defender Commission, she handled cases involving capital murder, murder, rape, computer crimes, and other serious felonies. She is a graduate of East Tennessee State University and the University of South Dakota School of Law.
The firearm investigations that Henry will handle are part of Project Safe Neighborhoods, a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Judge Sentences St. Louis Man for Possession with Intent to Distribute FentanylRead the Press Release
St. Louis, MO – United States District Judge E. Richard Webber has sentenced Nicholas Simmons, 37, of St. Louis, MO, to 46 months and three years of supervised release for distribution of fentanyl. Simmons pleaded guilty in June.
FBI Special Agents received information during December of 2018, Simmons was selling capsules of fentanyl in the St. Louis area. Beginning on January 17, 2019 and continuing to April 25, 2019, the FBI made nine undercover purchases of fentanyl from Simmons, purchasing 16 – 20 capsules of fentanyl each time. On May 13, 2019, FBI Special Agents conducted surveillance of Simmons, and observed him make what appeared to be a sale of illegal drugs to another individual. As the Agents approached Simmons’s vehicle, Simmons attempted to flee the area. Simmons crashed his vehicle, at which time the Agents were able to apprehend him. The Agents located a loaded .45 caliber pistol in Simmons’ waistband, as well as 19 capsules of fentanyl in his pants pocket, and an additional 152 capsules of fentanyl in a black plastic bag in his possession. FBI Special Agents obtained a search warrant for two chases residences associated with Simmons. At one residence the Agents recovered drug paraphernalia and several firearms. At the second residence, the Agents recovered three additional firearms, approximately two kilograms of marijuana, 46 grams of cocaine, and 12 grams of crack cocaine. Agents also recovered hundreds of rounds of ammunition and drug paraphernalia during the investigation.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the St. Louis Metropolitan Police Department. Assistant United States Attorney Sara Koppenaal handled the case for the United States Attorney’s Office.
Hamburg Man Pleads Guilty to Production of Child PornographyRead 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 Robert Chapline, 60, of Hamburg, NY, pleaded guilty, before Chief U.S. District Judge Frank P. Geraci, Jr., to production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorneys Aaron J. Mango and Caitlin Higgins, who are handling the case, stated that between February 13, 2016, and October 2, 2017, the defendant coerced a minor (Victim) to engage in sexually explicit conduct for the purpose of producing visual depictions. In February 2016, the Victim was in the care of Chapline who took photographs of the Victim getting out of a shower and then posing in a bedroom. The defendant engaged in sexual contact with the Victim on several occasions between 2012 and 2017.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Hamburg Police Department, under the direction of Chief Kevin Trask; and the Regional Computer Forensics Laboratory.
Sentencing is scheduled for December 17, 2020, before Judge Geraci.
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Four Chester County Residents Charged with COVID-19 Related Unemployment FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jennifer D’Hulster, 37, of Coatesville, PA; Zachary Gathercole, 30, of Sadsburyville, PA; Ashley Harrington, 30, of West Chester, PA; and Anthony Schweitzer, 20, also of Coatesville, PA, were charged by Complaint with fraudulently obtaining and attempting to obtain unemployment benefits related to COVID-19 emergency relief funds to which they were not entitled. Defendant D’Hulster was arrested and taken into custody this morning; the other three defendants were already in custody. All four defendants made their initial appearances in federal court today.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits was predicated on the applicant’s unemployment for reasons related to the pandemic; however, the applicant must also have been able to work each day and, if offered a job, the applicant must have been able to accept it. Once the applicant was approved to receive benefits, the applicant was required to submit weekly certifications that indicated that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and, had reported any employment during the week and the gross pay or other payments received.
The Complaint alleges that D’Hulster and Harrington assisted individuals incarcerated at Chester County Prison and other correctional institutions in fraudulent efforts to obtain Pandemic Unemployment Assistance (PUA) benefits. Harrington enabled Gathercole, who was incarcerated at Chester County Prison prior to the onset of the pandemic, to receive approximately $12,865. D’Hulster and Gathercole enabled another unidentified inmate to receive approximately $11,410 and attempted to obtain PUA benefits for another inmate. Schweitzer did not actually receive any PUA benefits, but attempted to several times. The inmates were not eligible to receive PUA benefits because they did not meet the eligibility requirements -- namely, they were not able to report to a job each day because of their incarceration.
“Sadly, fraudsters consider a national public health crisis as an opportunity to cash in,” said U.S. Attorney McSwain. “That callous attitude rips off honest taxpayers who fund relief programs and also makes it much more difficult to provide funds to those who deserve and need them. My Office will do everything in its power to ensure that coronavirus fraud scams are stopped and punished.”
“Unemployment insurance fraud has risen sharply during the COVID-19 pandemic, and investigating these types of schemes remains a priority for the Office of Inspector General. We will continue to work with our law enforcement partners to aggressively pursue allegations of criminal conduct against the Unemployment Insurance program,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“At the end of March, 2020, the United States Government invested billions of dollars in helping its citizens through the pandemic,” said Postal Inspector in Charge Damon Wood. “From the beginning, Postal Inspectors in Philadelphia, and across the country, have worked to do our part in ensuring that those investments in the American public do not fall into the hands of fraudsters and con artists. I hope that the charges announced today serve as a deterrence to those who think that stealing or obtaining funds fraudulently from the most vulnerable amongst us, pays; it doesn’t. As always, I want to thank the other agencies that assisted in this investigation and the United States Attorney’s Office which supported the investigation and will see the prosecution through.”
If convicted of the conspiracy and fraud in connection with emergency benefits charges, D’Hulster, Gathercole, Harrington, and Schweitzer each face up to 60 years’ imprisonment, a $2,000,000 fine, and five years of supervised release following any imprisonment.
This case was investigated by the United States Department of Labor – Office of Inspector General, the United States Postal Inspection Service, and the Pennsylvania Department of Labor and Industry, assisted by Chester County Prison. The case is being prosecuted by Assistant United States Attorney Anita Eve.
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.
Four Charged for Multi-Million Dollar Elder Fraud SchemesRead the Press Release
Four individuals responsible for mass-mailing fraud schemes were charged with allegedly defrauding thousands of elderly and vulnerable victims, the department announced today. Two U.S. individuals and two Canadian individuals were charged for their roles in operating the schemes, which collectively caused tens of millions of dollars in victim losses. Two defendants were charged in the Eastern District of New York and two defendants were charged in the District of Nevada.
“Fraud schemes are intolerable, especially those that harm our nation’s seniors,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “As Attorney General Barr made clear earlier this year when he announced record results in the 2020 Elder Fraud Sweep, the Department of Justice is committed to protecting seniors. These two cases illustrate that the Civil Division’s Consumer Protection Branch, together with partners at the Postal Inspection Service, will not stop until the scourge of elder fraud is defeated.”
“These charges demonstrate the Postal Inspection Service will relentlessly pursue these fraudulent schemes until they no longer arrive in your mailbox,” said Deputy Chief Inspector Craig Goldberg of the Postal Inspection Service. “Prize notices like these are mailed in an attempt to trick our elderly and vulnerable Americans, while the perpetrators attempt to hide their involvement around the corner or around the globe. We are committed, with the Department of Justice, to protect our older Americans.”
“These individuals mailed their fraudulent prize promotions to victims in blatant defiance of prior Postal Service consent orders and agreements that prohibited them from doing so. The fact that many of the victims were elderly and vulnerable makes the defendants’ conduct particularly egregious. The Postal Inspection Service will continue its efforts to protect the public from fraud schemes and bring the perpetrators of those schemes to justice,” said Inspector in Charge Philip R. Bartlett.
Two Long-Island Residents Indicted for Multi-Million Dollar Elder Fraud Scheme
An indictment unsealed today charges Long Island residents Sean Novis, 50, and Gary Denkberg, 57, with conspiracy to commit mail fraud and multiple mail fraud and wire fraud counts for running a fraudulent mass-mailing scheme that tricked thousands of consumers into paying fees for falsely promised prizes. Novis and Denkberg made their initial appearances in U.S. District Court for the Eastern District of New York after they were arrested by United States Postal Inspectors Monday morning.
The indictment alleges that, from January 2003 to September 2016, the defendants mailed hundreds of thousands of prize notices that represented that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a small fee. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were merely mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists.
According to the indictment, Novis and Denkberg continued to operate their fraudulent mass-mailing scheme in violation of United States Postal Service cease-and-desist agreements and consent orders that they agreed to in 2012. The agreements and orders had permanently barred the defendants from mailing fraudulent prize notices.
Each charge in this case carries a statutory maximum sentence of twenty years in prison, and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Artie DeCastro and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch. The Consumer Protection Branch thanks the U.S. Attorney’s Office for the Eastern District of New York for its assistance in this case.
Canadian Nationals Charged For Long-Running Elder Fraud Schemes
In a separate indictment filed on August 5 in the District of Nevada, Canadian nationals Alex Quaglia and Patrick Fraser were charged with mail fraud and conspiracy to commit mail fraud in connection with schemes to defraud consumers by sending deceptive mailing pieces that falsely promised large cash prizes in exchange for payment of a fee. Many of the victims were elderly. The solicitations were sent using fictitious names and were designed to deceive recipients into believing that they had won hundreds of thousands or millions of dollars. To claim their winnings recipients were directed to pay a small fee. In fact, there was no cash prize sent to victims, and Quaglia, Fraser and their co-conspirators pocketed the money sent by victims.
“As alleged in the indictment, victims in Nevada, across the country, and around the world were defrauded of money in connection with the defendants’ schemes,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone.”
The scheme allegedly caused millions of dollars in losses to thousands of victims. Quaglia was charged with one conspiracy to commit mail fraud count and seven counts of mail fraud. Quaglia’s scheme is alleged to have begun as early as 2000. Fraser was charged with conspiracy to commit mail fraud with Quaglia and with a separate conspiracy charge related to a similar scheme he orchestrated after breaking away from Quaglia’s operation in 2015. Fraser was also charged with six counts of mail fraud. Each charge of the indictment carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Matt Lash and Yolanda McCray Jones of the Department of Justice Civil Division’s Consumer Protection Branch with substantial assistance from Assistant U.S. Attorney Nicholas Dickinson from the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has also provided critical support.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorneys’ Offices for the Eastern District of New York and District of Nevada visit their websites at www.justice.gov/usao-edny and www.justice.gov/usao-nv.
Four Charged for Multi-Million Dollar Elder Fraud SchemesRead the Press Release
WASHINGTON - Four individuals responsible for mass-mailing fraud schemes were charged with allegedly defrauding thousands of elderly and vulnerable victims, the department announced today. Two U.S. individuals and two Canadian individuals were charged for their roles in operating the schemes, which collectively caused tens of millions of dollars in victim losses. Two defendants were charged in the Eastern District of New York and two defendants were charged in the District of Nevada.
“Fraud schemes are intolerable, especially those that harm our nation’s seniors,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “As Attorney General Barr made clear earlier this year when he announced record results in the 2020 Elder Fraud Sweep, the Department of Justice is committed to protecting seniors. These two cases illustrate that the Civil Division’s Consumer Protection Branch, together with partners at the Postal Inspection Service, will not stop until the scourge of elder fraud is defeated.”
“These charges demonstrate the Postal Inspection Service will relentlessly pursue these fraudulent schemes until they no longer arrive in your mailbox,” said Deputy Chief Inspector Craig Goldberg of the Postal Inspection Service. “Prize notices like these are mailed in an attempt to trick our elderly and vulnerable Americans, while the perpetrators attempt to hide their involvement around the corner or around the globe. We are committed, with the Department of Justice, to protect our older Americans.”
“These individuals mailed their fraudulent prize promotions to victims in blatant defiance of prior Postal Service consent orders and agreements that prohibited them from doing so. The fact that many of the victims were elderly and vulnerable makes the defendants’ conduct particularly egregious. The Postal Inspection Service will continue its efforts to protect the public from fraud schemes and bring the perpetrators of those schemes to justice,” said Inspector in Charge Philip R. Bartlett.
Two Long-Island Residents Indicted for Multi-Million Dollar Elder Fraud Scheme
An indictment unsealed today charges Long Island residents Sean Novis, 50, and Gary Denkberg, 57, with conspiracy to commit mail fraud and multiple mail fraud and wire fraud counts for running a fraudulent mass-mailing scheme that tricked thousands of consumers into paying fees for falsely promised prizes. Novis and Denkberg made their initial appearances in U.S. District Court for the Eastern District of New York after they were arrested by United States Postal Inspectors Monday morning.
The indictment alleges that, from January 2003 to September 2016, the defendants mailed hundreds of thousands of prize notices that represented that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a small fee. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were merely mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists.
According to the indictment, Novis and Denkberg continued to operate their fraudulent mass-mailing scheme in violation of United States Postal Service cease-and-desist agreements and consent orders that they agreed to in 2012. The agreements and orders had permanently barred the defendants from mailing fraudulent prize notices.
Each charge in this case carries a statutory maximum sentence of twenty years in prison, and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Artie DeCastro and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch. The Consumer Protection Branch thanks the U.S. Attorney’s Office for the Eastern District of New York for its assistance in this case.
Canadian Nationals Charged For Long-Running Elder Fraud Schemes
In a separate indictment filed on August 5 in the District of Nevada, Canadian nationals Alex Quaglia and Patrick Fraser were charged with mail fraud and conspiracy to commit mail fraud in connection with schemes to defraud consumers by sending deceptive mailing pieces that falsely promised large cash prizes in exchange for payment of a fee. Many of the victims were elderly. The solicitations were sent using fictitious names and were designed to deceive recipients into believing that they had won hundreds of thousands or millions of dollars. To claim their winnings recipients were directed to pay a small fee. In fact, there was no cash prize sent to victims, and Quaglia, Fraser and their co-conspirators pocketed the money sent by victims.
“As alleged in the indictment, victims in Nevada, across the country, and around the world were defrauded of money in connection with the defendants’ schemes,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone.”
The scheme allegedly caused millions of dollars in losses to thousands of victims. Quaglia was charged with one conspiracy to commit mail fraud count and seven counts of mail fraud. Quaglia’s scheme is alleged to have begun as early as 2000. Fraser was charged with conspiracy to commit mail fraud with Quaglia and with a separate conspiracy charge related to a similar scheme he orchestrated after breaking away from Quaglia’s operation in 2015. Fraser was also charged with six counts of mail fraud. Each charge of the indictment carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Matt Lash and Yolanda McCray Jones of the Department of Justice Civil Division’s Consumer Protection Branch with substantial assistance from Assistant U.S. Attorney Nicholas Dickinson from the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has also provided critical support.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorneys’ Offices for the Eastern District of New York and District of Nevada visit their websites at www.justice.gov/usao-edny and www.justice.gov/usao-nv.
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Fort Thompson Man Sentenced for Assault and RobberyRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Assault with a Dangerous Weapon and Robbery was sentenced on August 31, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
AbuBarker Shabbaz-Evans, a/k/a Abu Barker Evans, age 25, was sentenced to 96 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Shabbaz-Evans was indicted by a federal grand jury on January 14, 2020. He pled guilty on June 16, 2020.
The convictions stem from two separate incidents. The first incident occurred on September 15, 2019, when Shabbaz-Evans pulled an individual out of a vehicle and repeatedly struck the victim about the head and face with a metal object shaped like a pistol and drove off in his vehicle. The victim suffered a slight fracture in his nose as a result of the assault.
The second incident occurred on January 1, 2020, when Shabbaz-Evans attempted to rob two individuals of pre-paid gasoline at the Crow Creek C-Store. In attempting to take the gasoline, Shabbaz-Evans showed a metal gun shaped object in his waistband and threatened the individuals if they did not give Shabbaz-Evans the gas. Onlookers intervened and prevented the robbery.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Shabbaz-Evans was immediately turned over to the custody of the U.S. Marshals Service.
Former Suburban Mayor and Cook County Commissioner Pleads Guilty to Federal Extortion and Tax ChargesRead the Press Release
CHICAGO — The former mayor of southwest suburban McCook, who also served as a Cook County Commissioner, pleaded guilty in federal court today to extortion conspiracy and tax charges.
JEFFREY R. TOBOLSKI admitted in a plea agreement that during his tenures as mayor and Cook County Commissioner he agreed to accept multiple extortion and bribe payments totaling more than $250,000. Tobolski admitted that he abused his elected positions in order to benefit individuals who paid him the money. One such arrangement cited in the plea agreement involved Tobolski scheming with a McCook police officer to accept cash payments from the owner of a McCook restaurant in exchange for Tobolski’s and the police officer’s permission to host events that involved the sale of alcohol.
Tobolski, 55, of McCook, pleaded guilty to one count of conspiracy to commit extortion, which is punishable by a maximum sentence of 20 years in federal prison, and one count of filing a false tax return, which is punishable by up to three years. U.S. District Judge Harry D. Leinenweber did not immediately set a sentencing date.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and Tiffany A. Ardam.
In regard to the tax charge, Tobolski admitted in the plea agreement that he willfully underreported his income on his tax returns for the calendar years 2012 through 2018. The conduct caused total losses to the IRS of at least $56,268, and the Illinois Department of Revenue of at least $9,338, the plea agreement states.
Former Illinois Accountant Sentenced to More Than 16 Years in Prison for Misappropriating $77 Million from Individuals and Financial InstitutionsRead the Press Release
CHICAGO — A former Illinois accountant has been sentenced to more than 16 years in federal prison for misappropriating more than $77 million from individuals and financial institutions.
SULTAN ISSA, 47, of Hinsdale, pleaded guilty earlier this year to wire fraud affecting a financial institution. U.S. District Judge Andrea R. Wood imposed the 200-month sentence Monday in federal court in Chicago. Judge Wood also ordered Issa to pay more than $72 million in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Philip Fluhr.
Issa was a certified public accountant and the Chief Financial Officer of a group of partnerships, corporations, and trusts owned by a Chicago-area family. From 2010 to 2017, he embezzled at least $45 million of the family’s assets, including money Issa stole from a trust account that was set up to pay medical expenses for a family member suffering from an incapacitating illness. Issa also fraudulently obtained at least another $5.1 million from individuals in his personal capacity, claiming he would invest their money in legitimate opportunities, including a luxury auto dealership Issa owned in Burr Ridge.
Issa used fraud proceeds to cover personal expenses and to secure fraudulent loans from financial institutions totaling at least $83 million to acquire, among other things, 25 residential properties in Illinois, Montana, Michigan, and Cabo San Lucas, Mexico, two private aircraft, four yachts, approximately 60 firearms, and assorted watches, jewelry, and memorabilia.
Issa attempted to conceal the scheme by providing financial institutions with fraudulent loan documents and forging authorizations to gain control of funds belonging to the family-owned group. Issa also created false account statements and made Ponzi-type payments to individual investors.
Former Horry County IT Security Director Sentenced to Two Years in Federal Prison for Theft of More than $340,000 in Government FundsRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Terry Shawn Petrill, 48, of Myrtle Beach, was sentenced to two years in federal prison and ordered to pay back more than $340,000 after pleading guilty to theft of federal funds.
“Those who steal from our local governments are raiding the South Carolina taxpayers,” said U.S. Attorney McCoy. “This is unacceptable, and as this case shows we will seek prison time and restitution against those who engage in such theft. I appreciate the dedicated work of our law enforcement partners and government officials in Horry County who provided critical assistance in this case.”
Evidence presented to the court showed that beginning on June 11, 2015, through August 23, 2018, Petrill ordered forty-one Cisco 3850 network switches that were to be installed on the Horry County network. During this time period, Horry County received federal program funding. When the switches would arrive, Petrill advised that he would handle the installation. Petrill did not install the switches on the network and instead sold them to third parties and kept the proceeds for himself. Petrill sold several of the switches on eBay and other third-party websites. Petrill’s actions caused a loss to Horry County of $345,265.57. A spokesperson for Horry County noted that although the situation was unfortunate, the process worked, justice was served, and Horry County was thankful to their federal partners for their help in investigating and prosecuting the case.
Chief United States District Judge R. Bryan Harwell sentenced Petrill to 24 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), assisted by the Horry County Police Department. Assistant United States Attorney Everett McMillian prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Foreign National Arrested at Pensacola International Airport Pleads Guilty to National Security OffensesRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, today announced that Colin Fisher, a citizen of the United Kingdom, pleaded guilty to federal charges of violating the International Emergency Economic Powers Act (“IEEPA”) and attempted smuggling in relation to exporting power generating equipment to Iran. Fisher was arrested by federal agents when he arrived in Pensacola from the United Arab Emirates earlier this month to consummate the illegal transaction and get equipment for a buyer in Iran.
Fisher, 45, admitted in United States District Court in Pensacola that from October 1, 2017, to August 7, 2020, he worked to violate the Iranian embargo by attempting to export a Solar Mars 90 S turbine core engine and parts from the United States for delivery to an end user in Iran. This included participating in fraudulent invoicing and using coded language with conspirators to communicate about the illegal transactions. Despite these efforts, law enforcement authorities discovered the plan and were able to seize the turbine before its transatlantic journey to the end user in Iran, a conspirator in Iran who is linked to an Iranian energy company. The intercepted turbine, which was valued at half a million dollars, could be used to provide needed energy to the oil fields of Iran.
“Exporting technology to Iran is prohibited for a very good reason, yet this defendant chose to put his own self-interest above global and national security,” U.S. Attorney Keefe said. “This case should send a clear signal that the United States cannot and will not look the other way when persons endanger the safety of our nation and its people. We will enforce these laws, which are vital to our national security, against those both within the United States and abroad.”
James Meharg, CEO and president of Turbine Resources International, LLC, in Pensacola, was previously convicted of conspiring with Fisher to export a large turbine and parts from the United States to an Iranian recipient in violation of the Iranian Transactions and Sanctions Regulations. Meharg is currently serving a 40-month sentence in federal prison.
“The commitment of the Bureau of Industry and Security to protect our nation’s security against terrorist procurement networks in State Sponsors of Terrorism countries such as Iran remains unwavering,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement in the Department of Commerce’s Bureau of Industry and Security. “These continued efforts to bring all conspirators to justice are demonstrated in this most recent guilty plea.”
Assistant United States Attorney David L. Goldberg has prosecuted the case following a joint investigation by the United States Department of Commerce’s Bureau of Industry and Security along with the Federal Bureau of Investigation.
Fisher faces up to 20 years imprisonment for violating the International Emergency Economic Powers Act and up to 10 years imprisonment for attempted smuggling. A sentencing date has been set for November 10, 2020, at 9:00 a.m. at the United States Courthouse in Pensacola.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Factual Basis For Guilty Plea C. Fisher Press Release - Colin FisherFlorida man indicted on fraud charges involving nearly $5 MillionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Phillip W. Conley, of Jacksonville, Florida, is facing fraud charges, U.S. Attorney Bill Powell announced.
Conley, 38, was indicted by a federal grand jury sitting in Wheeling in August 2020 on six counts of “Mail Fraud” and one count of “Securities Fraud.” Conley is alleged to have schemed 18 individuals out of nearly $5 million from 2014 to 2019. The victims were from all over the United States, including West Virginia and Maryland.
Conley operated a company by the name of Alpax, LLC, portraying himself as an investment advisor living and working out of Morgantown and Kingwood, West Virginia, Washington, D.C., and Virginia. He is alleged to have developed a scheme to defraud investors by convincing the victims to give him and his companies money for him to invest for returns for the victims. The victims included churches, pastors, at least one parishioner, and his adoptive mother and step-father. He is accused of giving the victims a false sense of security by mailing them false dividend statements, claiming a positive rate of return for their investments. Conley allegedly fraudulently obtained approximately $5.2 million dollars from 18 victims, but invested little or none of that money and spent much of it on private jet flights, expensive meals, clothes, jewelry, housing and living expenses for himself, returning only about $210,000 to the victims.
Conley faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the mail fraud charges. He faces up to 20 years of incarceration and a fine of up to $5 million for the securities fraud charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The government is also seeking the forfeiture of any property purchased from the proceeds of the crimes, including a money judgment of at least $4,990,000.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The FBI investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Charges Accuse Man of “Straw Purchasing” Guns in Indiana on Behalf of Convicted Felon in ChicagoRead the Press Release
CHICAGO — A man has been charged with a federal firearm offense for allegedly “straw purchasing” guns in Indiana on behalf of a convicted felon in Chicago.
On three occasions this summer, BRIAN HAYWOOD purchased guns from stores in Hammond, Ind., and falsely certified on federal forms that he was the actual buyer, according to a criminal complaint filed in U.S. District Court in Chicago. In reality, Haywood purchased the guns on behalf of a convicted felon from Chicago whom Haywood knew was prohibited from legally purchasing firearms on his own, the complaint states. The felon directed Haywood to buy certain firearms that he wanted and then provided him with the purchase money and an additional fee of $250 per gun, according to the charges.
The complaint charges Haywood, 24, of Hammond, Ind., with one count of knowingly selling and disposing of a firearm to a convicted felon.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Albert Berry III.
“Straw purchasers play a grave role in enabling the unlawful possession of guns and the senseless violence that can follow,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to stop the flow of guns to individuals who cannot legally possess them.”
"Straw buyers undermine the rule of law, putting guns into the hands of convicted felons,” said FBI SAC Buie. “The FBI will never stop working with our partners to prevent gun-based violence and make our streets safer."
The case was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in Chicago to help state and local officials fight violent crime, particularly firearm offenses.
The complaint describes three alleged straw purchases in Indiana this summer – on July 30, Aug. 5, and Aug. 20. Unbeknownst to Haywood, the felon from Chicago for whom Haywood bought the guns was surreptitiously cooperating with law enforcement.
The complaint also details a fourth firearm transaction, during which Haywood and another man – MARQUEES FRENCH, 24, of Hammond, Ind. – allegedly sold a semi-automatic handgun to the cooperating felon on the South Side of Chicago on Aug. 25, 2020. The transaction occurred in a retail store parking lot in the 9500 block of South Ashland Avenue, the complaint states. Law enforcement arrested Haywood and French after the deal was conducted and the pair was attempting to drive out of the parking lot, the complaint states.
French was charged with the same offense as Haywood.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Ex-Airline Employee Pleads Guilty to Charge for Role in Scheme Where Fake Airline IDs Were Manufactured to Obtain Free FlightsRead the Press Release
LOS ANGELES – A former Mesa Airlines employee pleaded guilty today to a federal criminal charge that he schemed to manufacture counterfeit Mesa employee identification badges that were used to obtain free flights for himself and others on another airline.
Hubbard Bell, 32, of Houston, Texas, pleaded guilty via videoconference to one count of conspiracy to commit wire fraud.
According to his plea agreement, Bell worked at Mesa Airlines, a Phoenix-based regional airline, from June 2015 until October 2015. While a Mesa employee, Bell was provided access to free tickets as a job benefit. Mesa employees and their designated beneficiaries were permitted to use this benefit only while employed by Mesa Airlines.
Bell admitted that, from February 2016 to November 2017, after Mesa terminated his employment, he conspired with others to sell the stolen and unauthorized information of Mesa employees, including their names, dates of hire, and employee identification numbers that were needed to book free flights on Spirit Airlines through Spirit’s web portal for themselves and others.
For example, on June 2, 2016, Bell received via email confidential Mesa employee information for dozens of Mesa Airlines workers based in Dallas and Houston.
For himself, Bell fraudulently obtained 34 free airline tickets, which allowed him to fly interstate, including into and out of Los Angeles International Airport, despite the fact Mesa Airlines no longer employed him. Bell also admitted he and his co-conspirators manufactured and sold fraudulent Mesa employee identification cards for use by the fraudulent travelers.
United States District Judge Michael W. Fitzgerald scheduled a December 7 sentencing hearing, at which time Bell will face a statutory maximum sentence of 20 years in federal prison.
The case’s other defendants – including Kamille Jemison, 28, a former Houston resident who subsequently relocated to the Beverly Grove district of Los Angeles, and Alphonso Lloyd, 27, of Houston – are expected to go to trial in this matter in the spring of 2021.
The case was investigated by the FBI, who received substantial assistance from the Federal Air Marshal Service and the Transportation Security Administration.
This case is being prosecuted by Assistant United States Attorneys Joseph D. Axelrad of the Violent and Organized Crime Section and Poonam G. Kumar of the Major Frauds Section.
Elkton Man Pleads Guilty to Making Threatening Interstate CommunicationsRead the Press Release
Baltimore, Maryland – Phillip Cline, Jr., age 39, of Elkton, Maryland, pleaded guilty today to making threatening interstate communications. Cline admitted that during a recorded phone conversation with an employee of an auto loan business, Cline threatened to physically harm the employee, whom he described using racial epithets.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Eric S. Dreiband of the U.S. Department of Justice’s Civil Rights Division; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to Cline’s publicly available plea agreement, on February 1, 2019, an employee of an auto loan business contacted Cline about what the business suspected to be a delinquent auto loan. During the call, which was recorded, Cline was clearly upset with the caller and unwilling to provide information verifying his identity. Ultimately, Cline, who was advised that the call was being recorded, used racial epithets to threaten the employee with physical harm. As detailed in the plea agreement, Cline stated to the employee during the telephone call that his “white power friends” will “hang your ass.”
Cline faces a maximum sentence of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Cline on October 5, 2020 at 10:00 a.m.
United States Attorney Robert K. Hur and Assistant Attorney General Eric S. Dreiband commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Cunningham and Trial Attorney Anita Channapati of the Justice Department’s Civil Rights Division, who are prosecuting the case.
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Elkton Man Pleads Guilty to Making Threatening Interstate CommunicationsRead the Press Release
Phillip Cline, Jr., 39, of Elkton, Maryland, pleaded guilty today to making threatening interstate communications. Cline admitted that during a recorded phone conversation with an employee of an auto loan business, Cline threatened to physically harm the employee, whom he described using racial epithets.
The guilty plea was announced by Assistant Attorney General Eric S. Dreiband of the U.S. Department of Justice’s Civil Rights Division; U.S. Attorney for the District of Maryland Robert K. Hur; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation's Baltimore Field Office.
According to Cline’s publicly available plea agreement, on Feb. 1, 2019, an employee of an auto loan business contacted Cline about what the business suspected to be a delinquent auto loan. During the call, which was recorded, Cline was clearly upset with the caller and unwilling to provide information verifying his identity. Ultimately, Cline, who was advised that the call was being recorded, used racial epithets to threaten the employee with physical harm. As detailed in the plea agreement, Cline stated to the employee during the telephone call that his “white power friends” will “hang your ass.”
Cline faces a maximum sentence of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Cline on Oct. 10, 2020.
U.S. Attorney Robert K. Hur and Assistant Attorney General Eric S. Dreiband commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Cunningham and Trial Attorney Anita Channapati of the Justice Department’s Civil Rights Division, who are prosecuting the case.
Eastern Oregon Medical Practice Employee Pleads Guilty to Tax Crimes, Bank FraudRead the Press Release
PORTLAND, Ore.—The former office manager and bookkeeper for a La Grande, Oregon medical practice pleaded guilty today for devising a scheme to defraud her employer, announced U.S. Attorney Billy J. Williams.
Anndrea D. Jacobs, 49, pleaded guilty to filing a false personal income tax return, falsely impersonating an IRS employee, aggravated identity theft, and bank fraud as a joint resolution for two criminal cases.
According to court documents, beginning on or about January 2011 and continuing until her termination in December 2015, Jacobs used her position and access to the medical practice’s finances to steal money from the practice by, among other means, writing business checks to herself or for her own benefit. Jacobs used the stolen funds to make payments on personal credit cards, and pay other personal expenses unrelated to the medical practice.
In an attempt to hide her illicit actions, Jacobs prepared and maintained false business financial records, overstating expenses and estimated tax payments. Further, without the knowledge or consent of the medical practice owner, she opened a business bank account in his name; deposited a business check payable to the Oregon Department of Revenue into her own personal account; gave the practice owner falsified property tax statements with total due balances of zero; and convinced the practice owner to grant her limited power of attorney to handle the practice’s pending IRS tax collection action.
In perhaps her most brazen attempt to conceal her embezzlement activity, Jacobs created a fictitious identity as an IRS Taxpayer Advocate, aka Linda Gibson; established a phone number and voicemail account for the fictitious identity; and purported to assist the medical practice owner with his IRS tax collection issues while impersonating “Linda Gibson.”
On September 12, 2018, a federal grand jury in Portland returned 15-count indictment charging Jacobs with wire fraud, filing false tax returns, aiding or assisting the preparation of false tax returns, falsely impersonating an employee of the U.S., and aggravated identity theft. On June 5, 2020, Jacobs’ pre-trial release was revoked for committing bank fraud. On June 9, 2020, Jacobs was indicted a second time for the new fraud. She remains in custody pending sentencing.
Under the terms of her plea agreement, Jacobs will join the U.S. Attorney’s Office in jointly recommending a four-year prison sentence followed by five years of supervised release. She will be sentenced on December 7, 2020 before U.S. District Court Judge Marco A. Hernandez.
Jacobs has also agreed to pay restitution in full to her victim as ordered by the court.
This case was investigated by IRS-Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration (TIGTA). It is being prosecuted by Donna Maddux and Ryan Bounds, 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.
Eagle Butte Woman Sentenced for Maintaining a Drug-Involved PremisesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Maintaining a Drug Involved Premises was sentenced on August 31, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Lena Marie Flying By, age 53, was sentenced to 3 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Flying By was indicted by a federal grand jury on March 10, 2020. She pled guilty to a Superseding Information on June 16, 2020.
The conviction stemmed from Flying By’s conduct between 2015 and 2020, wherein she used her residence near Eagle Butte, South Dakota, for herself and others to use and distribute marijuana.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Flying By was ordered to self-report to the custody of the U.S. Marshals Service no later than September 8, 2020.
Drug User Who Unlawfully Possessed a Firearm Sentenced to Federal PrisonRead the Press Release
A drug user who unlawfully possessed a rifle was sentenced September 10, 2020, to more than seven months in federal prison.
Isaiah Roy Mixon, age 21, from Spencer, Iowa, received the prison term after a guilty plea to possession of a firearm by a drug user.
Information provided at his detention, change of plea, and sentencing hearings revealed that on January 6, 2019, Spencer, Iowa police officers responded to a request for a welfare check of defendant at his residence. Mixon was found in possession of 12 grams of marijuana, packaging materials, grinders, recently opened odorless bags that had been mailed to him, $12,000 in cash, and a DPMS .223 rifle and ammunition.
Mixon was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mixon was sentenced to 7 months’ 28 days imprisonment. He must also serve a 6-month term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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 /media/1122011/dl?inline.
Mixon is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Spencer, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4074.
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Convicted Felon Sentenced to Federal Prison after Throwing Guns Out of Car During Police ChaseRead the Press Release
A man who threw two guns out of a moving car while being chased by federal Marshals was sentenced today to more than three years in federal prison.
Jordan Lewis Holmes, age 24, from Marion, Iowa, received the prison term after a February 27, 2020 guilty plea to being a felon and drug user in possession of a firearm.
At the plea hearing, Holmes admitted that he possessed two nine-millimeter handguns in March 2019, and that at the time he was an unlawful marijuana user and a convicted felon. Court records reflect that in March 2019, the United States Marshals Service was seeking to arrest Holmes for a warrant issued due to a parole violation on a prior felony stolen weapon trafficking charge. Officers saw Holmes get into a vehicle and tried to initiate a traffic stop, at which time a chase ensued. During the chase, the vehicle in which Holmes was a passenger drove into a church parking lot and two nine-millimeter handguns were thrown from the window where Holmes was seated. At the end of the vehicle chase, the vehicle pulled into an apartment complex parking lot, and, without the vehicle coming to a stop, Holmes and the other three occupants of the vehicle fled on foot. Officers caught up to Holmes and arrested him shortly thereafter.
Officers later retrieved the handguns from the church parking lot. The serial numbers on both firearms had been defaced. Further investigation revealed that two days before the chase, Holmes posted a video of himself holding a handgun that resembled one of the handguns found in the parking lot. Evidence at a prior hearing showed that during a recorded phone call shortly after his arrest, Holmes told the other person that he had to get rid of his “size nine shoes,” indicating that Holmes had thrown the firearms from the moving vehicle.
Holmes was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Holmes was sentenced to 46 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Holmes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Dan Chatham.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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 /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00124-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Colorado Man Sentenced to 11 Years in Prison for Moderating Disputes on Darknet Marketplace AlphabayRead the Press Release
FRESNO, Calif. — Bryan Connor Herrell, 26, of Aurora, Colorado, was sentenced today by United States District Court Judge Dale A. Drozd to 11 years in prison, U.S. Attorney McGregor W. Scott for the Eastern District of California and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division announced.
According to court documents, Herrell was a moderator on the AlphaBay marketplace, an illegal website that operated on the so-called darknet. On AlphaBay, vendors and purchasers engaged in hundreds of thousands of illicit transactions for guns, drugs, stolen identity information, credit card numbers and other illegal items. At the time, AlphaBay was the world’s largest online drug marketplace.
“This sentence of an AlphaBay employee demonstrates the collective efforts of law enforcement authorities in the United States and Europe to find and prosecute transnational criminal actors wherever they hide,” said Acting Assistant Attorney General Rabbitt. “The department will continue to work tirelessly to hold accountable criminals who use the Dark Web to facilitate illegal activity no matter where they may be located.”
“This sentence serves as further proof that criminals cannot hide behind technology to break the law,” said U.S. Attorney Scott. “Operating behind the veil of the darknet may seem to offer shelter from criminal investigations, but people should think twice before ordering or selling drugs online—you will be caught. This office will continue using all means available to pursue darknet-based crimes, particularly those involving fentanyl, opioids, and other dangerous drugs.”
“The FBI is committed to developing highly trained cyber investigators who work with our international partners and perpetually evolve to counter the threat darknet criminals pose. Cases like these exemplify how the FBI and our international partners are eliminating the false promise of anonymity dark marketplaces claim to provide and are successfully dismantling criminal organizations which prey upon communities through use of sophisticated computer code,” said Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “Herrell's sentence sends a clear message to criminals that the darknet is no safe haven for illegal transactions.”
As a moderator on AlphaBay, Herrell settled disputes between vendors and purchasers. He is also served as a scam watcher – providing a service dedicated to monitor attempts to defraud AlphaBay users. Herrell went by the monikers “Penissmith” and “Botah” and was paid in Bitcoin for his participation.
On June 1, 2017, a Fresno grand jury indicted the alleged founder of AlphaBay, Alexandre Cazes. On July 5, 2017, the Royal Thai Police, with assistance from the FBI and DEA, executed an arrest warrant for Alexandre Cazes at his residence in Bangkok, in connection with his alleged involvement with AlphaBay. At the time of his arrest, law enforcement discovered Cazes’s laptop open and in an unencrypted state. Agents and officers found several text files that identified the passwords/passkeys for the AlphaBay website, the AlphaBay servers, and other online identities associated with AlphaBay. The indictment against Cazes was dismissed as a result of his death. The investigation of AlphaBay and its former administrators continues.
This case was the product of an investigation by the Sacramento and Philadelphia Field offices of the Federal Bureau of Investigation. Assistant United States Attorneys Paul Hemesath and Grant B. Rabenn, and Senior Counsel Louisa K. Marion of the Department of Justice’s Computer Crime and Intellectual Property Section are prosecuting the case. The Philadelphia and Denver United States Attorney’s Offices provided substantial assistance.
Colorado Man Sentenced to 11 Years in Prison for Moderating Disputes on Darknet Marketplace AlphaBayRead the Press Release
A Colorado man was sentenced today by U.S. District Court Judge Dale A. Drozd to 11 years in prison.
According to court documents, Bryan Connor Herrell, 26, of Aurora, Colorado, was a moderator on the AlphaBay marketplace, an illegal website that operated on the so-called darknet. On AlphaBay, vendors and purchasers engaged in hundreds of thousands of illicit transactions for guns, drugs, stolen identity information, credit card numbers and other illegal items. At the time, AlphaBay was the world’s largest online drug marketplace.
“This sentence of an AlphaBay employee demonstrates the collective efforts of law enforcement authorities in the United States and Europe to find and prosecute transnational criminal actors wherever they hide,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department will continue to work tirelessly to hold accountable criminals who use the Dark Web to facilitate illegal activity no matter where they may be located.”
“This sentence serves as further proof that criminals cannot hide behind technology to break the law,” said U.S. Attorney McGregor Scott of the Eastern District of California. “Operating behind the veil of the darknet may seem to offer shelter from criminal investigations, but people should think twice before ordering or selling drugs online—you will be caught. This office will continue using all means available to pursue darknet-based crimes, particularly those involving fentanyl, opioids, and other dangerous drugs.”
“The FBI is committed to developing highly trained cyber investigators who work with our international partners and perpetually evolve to counter the threat darknet criminals pose. Cases like these exemplify how the FBI and our international partners are eliminating the false promise of anonymity dark marketplaces claim to provide and are successfully dismantling criminal organizations which prey upon communities through use of sophisticated computer code,” said Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “Herrell's sentence sends a clear message to criminals that the darknet is no safe haven for illegal transactions.”
As a moderator on AlphaBay, Herrell settled disputes between vendors and purchasers. He is also served as a scam watcher – providing a service dedicated to monitor attempts to defraud AlphaBay users. Herrell went by the monikers “Penissmith” and “Botah” and was paid in Bitcoin for his participation.
On June 1, 2017, a Fresno grand jury indicted the alleged founder of AlphaBay, Alexandre Cazes. On July 5, 2017, the Royal Thai Police, with assistance from the FBI and DEA, executed an arrest warrant for Alexandre Cazes at his residence in Bangkok, in connection with his alleged involvement with AlphaBay. At the time of his arrest, law enforcement discovered Cazes’s laptop open and in an unencrypted state. Agents and officers found several text files that identified the passwords/passkeys for the AlphaBay website, the AlphaBay servers, and other online identities associated with AlphaBay. The indictment against Cazes was dismissed as a result of his death. The investigation of AlphaBay and its former administrators continues.
The FBI’s Sacramento and Philadelphia Field Offices investigated this case. Senior Counsel Louisa K. Marion of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Paul Hemesath and Grant B. Rabenn are prosecuting the case. The Philadelphia and Denver U.S. Attorney’s Offices provided substantial assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chinese Citizen Sentenced for Economic Espionage, Theft of Trade Secrets, and ConspiracyRead the Press Release
SAN JOSE – Hao Zhang was sentenced yesterday to eighteen months in prison and ordered to pay $476,835 in restitution following his conviction at trial on charges of economic espionage, theft of trade secrets, and conspiring to commit both offenses, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett
“I am gratified by a sentence that recognizes the seriousness of the offense,” said U.S. Attorney David L. Anderson for the Northern District of California. “Command-and-control countries cannot match the innovation of a free nation, and inevitably resort to theft. We will protect Silicon Valley. We will protect our intellectual property.”
“Hao Zhang committed these acts to benefit himself, his co-conspirators, and the government of China. This is not competition – this is economic espionage, theft, and conspiracy,” said FBI Special Agent in Charge Bennett. “The FBI will not allow American research and development to be stolen. We encourage companies to come to us both proactively and when suspicious activity is observed so that we can work together to protect American businesses and ensure our national economic security.”
Evidence admitted during the bench trial demonstrated that, from 2010 to 2015, Zhang conspired to and did steal trade secrets relating to Surface Acoustic Wave (“SAW”) and Bulk Acoustic Wave (“BAW”) filters, including Film Bulk Acoustic Resonators (“FBAR”), one type of BAW filter. These filters are commonly used as radio frequency (“RF”) filters for mobile phones and other devices for consumer and military applications. Zhang and his co-conspirator Wei Pang stole the trade secrets from two companies: Avago, a designer, developer, and global supplier of a broad range of analog, digital, mixed signal and optoelectronics components and subsystems with a focus in semiconductor design and processing, headquartered in San Jose, California, and Singapore; and Skyworks, an innovator of high performance analog semiconductors headquartered in Woburn, Massachusetts. U.S. District Judge Edward J. Davila found that Zhang committed economic espionage because he intended to start a new business in China using the stolen information and knew that the business would benefit instrumentalities of the People’s Republic of China, including Tianjin University (“TJU”).
Evidence introduced at trial further showed that, by October 2006, Zhang and his co-conspirators were formulating the plan to start a business in China to compete with Avago and Skyworks. In 2006, Zhang had graduated with a Ph.D. from the University of Southern California and taken a job at Skyworks while co-conspirator Wei Pang started working at Avago. Zhang and Pang illicitly shared trade secrets with each other and with co-conspirators in China while they worked for the U.S. companies. In 2009, Zhang and Pang obtained professorships at TJU based on their academic and professional experience and their commitment to start a Micro-Electro-Mechanical Systems (“MEMS”) lab at the university. TJU was aware of the trade secrets the defendants brought. With guidance from TJU, the defendants filed Chinese patent requests and created a shell company in the Cayman Islands they called Novana. Novana and a TJU subsidiary called MNMT created the new company, ROFS, as a joint venture to manufacture product realized from use of the trade secrets. Along the way, Zhang also obtained U.S. patents in his own name using trade secret information he knew was stolen from Avago.
Zhang, 41, of China, was charged in a superseding indictment by a federal grand jury on April 1, 2015.
The sentence was handed down by The Honorable Edward J. Davila, U.S. District Court Judge, following a four-day bench trial on one count of conspiracy to commit economic espionage, in violation of 18 U.S.C. § 1831(a)(5), one count of conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5), twelve counts of economic espionage and aid and abetting, in violation of 18 U.S.C. §§ 1831(a)(1)-(3) and 2, and twelve counts of theft of trade secrets and aiding and abetting, in violation of 18 U.S.C. §§ 1832(a)(1)-(3) and 2. Judge Davila also sentenced the defendant to a three year period of supervised release and ordered him to pay restitution to Avago and Skyworks. Zhang consented to the court-ordered forfeiture of the U.S. patents obtained with stolen Avago technology. The defendant will begin serving the sentence on October 22, 2020.
Michelle J. Kane and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Jessica Rodriguez Gonzalez, Susan Kreider, and Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Chase Smothermon sentenced to 45 years for abducting, torturing and killing one victim, brutally beating a secondRead the Press Release
ALBUQUERQUE, N.M. – A federal judge sentenced Chase Smothermon, 32, of Albuquerque, New Mexico, to 45 years in prison for abducting and assaulting two men, one of whom was tortured, killed, and mutilated. Smothermon suspected the victims of stealing drugs and money from his home.
On Jan. 24, Smothermon pleaded guilty in federal court in Santa Fe, New Mexico. An indictment charged Smothermon, and two other residents of Albuquerque, Mariah Ferry, 22, and Jose Torrez, 48, with kidnapping, kidnapping resulting in death, and conspiracy to kidnap.
Smothermon, Ferry, Torrez and other co-conspirators plotted to retaliate against two victims they believed had stolen marijuana from Smothermon’s home, where he resided with Ferry. On Aug. 8, 2017, Torrez alerted Smothermon that the first victim, identified in records as J.S., was present at Torrez’s home. Ferry drove Smothermon to Torrez’s home where they brutally beat J.S. with a baseball bat and the butt of a gun.
Smothermon and his companions then put J.S. in the trunk of Ferry’s car and bound his hands, ankles and mouth with tape. Ferry and Smothermon drove J.S. to another home, where he died shortly after arriving. Ferry and Smothermon then mutilated J.S.’s body in a shed.
Later the same day, Smothermon contacted the second victim, identified in records as M.T., under a ruse that Smothermon wanted to buy marijuana from him. When M.T. arrived at Smothermon’s home, Smothermon, Ferry and others bound, gagged and assaulted him for hours. After several hours, two other people took M.T. to another location where they held him overnight before eventually releasing him. On Aug. 9, 2017, Ferry drove Smothermon and another person to a rural area where they buried J.S.’s body in a shallow grave.
“Mr. Smothermon’s guilty plea and lengthy sentencing in this case are an example of how drug trafficking leads to violence,” said DEA Special Agent in Charge Kyle W. Williamson. “DEA will continue to work closely with its law enforcement partners to investigate drug trafficking and associated violent crime in order to bring to justice those who threaten the safety of our communities.”
Ferry pleaded guilty on Feb. 13 to kidnapping and conspiracy to kidnap. On June 26, the court sentenced her to 30 years in prison followed by 5 years of supervised release. On Feb. 13, Torres pleaded guilty to conspiracy to kidnap and faces 14 years in prison.
The Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case with assistance from the Albuquerque Police Department and Second Judicial District Attorney’s Office. The Narcotics section of the U.S. Attorney’s Office prosecuted the case.