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8 October 2020
San Francisco Man Sentenced to 100 Months Imprisonment in Credit Card Fraud and Identity Theft CaseRead the Press Release
SAN FRANCISCO – Marcus Dieter Felder was sentenced to 100 months in prison and ordered to pay restitution to numerous victims following his convictions for access device fraud, aggravated identity theft, and other offenses, announced United States Attorney David L. Anderson, Homeland Security Investigations (HSI) Special Agent in Charge Tatum King, and U.S. Secret Service Acting Special Agent in Charge Shawn M. Bradstreet. The sentence was handed down by the Honorable Maxine M. Chesney, U.S. District Judge.
Felder, 54, of San Francisco, was convicted of access device fraud and aggravated identity theft in February 2018, after a six-day jury trial. The jury found that Felder had engaged in numerous instances of credit card fraud in San Francisco, Hawaii, Placer County in Calif., and elsewhere in April 2013, June 2014, and October 2014. In addition, the jury found that Felder committed aggravated identity theft. Specifically, the jury concluded that while Felder committed credit card fraud in June 2014, he illegally used personal information associated with another individual who shared his first and last names.
Evidence at trial showed that Felder used Visa, MasterCard, and American Express credit cards issued to other persons to engage in transactions at high-end or boutique hotels, including the Fairmont Hotel, the Hotel Nikko, the Hilton Union Square, the Grand Hyatt, and the Hotel Metropolis, all in San Francisco, and the Four Seasons Resort in Maui. The evidence at trial also showed that, among other transactions, the defendant used credit cards issued to other persons to pay for first-class air travel from San Francisco to Maui on United Airlines and to rent SUVs from Enterprise Rent-A-Car and Hertz. Felder originally came into federal custody shortly after he was arrested at the Thunder Valley Casino Resort in Placer County on October 30, 2014, for presenting a counterfeit credit card there.
On September 19, 2017, a federal grand jury returned a superseding indictment charging Felder with one count of fraudulent use of unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(2); two counts of effecting transactions with access devices issued to other persons, in violation of 18 U.S.C. § 1029(a)(5); and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Felder was released on bond in October 2017, but failed to appear for his sentencing hearing in April 2019. He was then charged in a new indictment with one count of failure to appear for sentencing, in violation of 18 U.S.C. § 3146(a)(1), and one count of contempt of court, in violation of 18 U.S.C. § 401(3). Felder was apprehended in October 2019, and later pleaded guilty to the failure to appear and contempt charges on June 24, 2020.
The 100-month prison sentence was comprised of 66 months imprisonment related to the access device fraud convictions, a consecutive sentence of 10 months for the failure to appear and contempt convictions, and a 24-month sentence for the aggravated identity theft conviction. In addition to the prison term, Judge Chesney sentenced the defendant to a three-year period of supervised release and ordered him to pay more than $60,000 in restitution. The defendant is in custody and will begin serving his prison sentence immediately.
Assistant U.S. Attorneys Kyle F. Waldinger, Katherine M. Lloyd-Lovett, Noah Stern, and Molly Smolen prosecuted the two cases with the assistance of Kathy Tat. The prosecution is the result of an investigation by HSI and the U.S. Secret Service.
San Diego Man Pleads Guilty to Three RobberiesRead the Press Release
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Assistant U. S. Attorney Matthew Brehm (619) 546-8983SAN DIEGO – Ryan W. Nelson of San Diego pleaded guilty in federal court today to three robberies, including two bank robberies and the armed robbery of a shoe store.
Nelson entered his guilty pleas to the three counts before U.S. Magistrate Judge Michael S. Berg. Nelson admitted that on July 29, 2019, at approximately 8:45 a.m., he entered the Shoe Palace, located within the Plaza Bonita Mall in National City, dressed as a construction worker with a safety vest, safety glasses, and a hard hat.
According to Nelson’s plea agreement, he told a Shoe Palace clerk that he was working on construction in the store above Shoe Palace and needed to inspect an electrical breaker panel in a room in the back of the store. When Nelson returned to the front of the store, he approached a clerk, who was pregnant at the time, and pointed a handgun at her. He demanded cash from the cash register, stating, "Give me all the money."
The clerk gave Nelson access to the cash register, and he took approximately $600 from the register and a nearby safe. After he took the cash, Nelson told the clerk, "Don’t call anyone or I will be back in five minutes!" He then fled the store, walked outside the mall, removed his construction worker disguise, retrieved a backpack hidden outside the mall, and changed his shirt.
Nelson also admitted that on August 15, 2019, at approximately 10:10 a.m., he entered the Vons Supermarket at 6155 El Cajon Boulevard, San Diego, and approached the teller window of the U.S. Bank branch located inside. Nelson pretended to talk on his cell phone but in fact gave the teller step-by-step verbal commands, demanding the teller to give him money by stating something similar to, "Grab a bag. Start with the hundreds. Put all the money in the bag and give it to me, or I’m gonna shoot." The teller complied with demands and provided Nelson with money from his teller drawer, totaling approximately $1,372. Prior to fleeing, Nelson told the victim teller, "Wait seven minutes, I’ve got someone in the store." He then turned and exited the bank area, leaving out the east exit of the Vons Supermarket.
Nelson at the U.S. Bank teller window at Vons Supermarket on August 15, 2019Nelson further admitted on August 23, 2019, at approximately 11:56 a.m., he entered the Vons Supermarket at 8011 University Avenue, La Mesa, California, and approached the teller window of the Wells Fargo branch located inside. Nelson pretended to talk on his cell phone but in fact demanded money from the three victim tellers by giving step-by-step verbal commands, stating something similar to, "Start with your 100s and put them in a bag, or I’ll start shooting." The tellers complied with the demands and provided Nelson with a bag containing money from each of the teller’s drawers totaling approximately $9,600. He then left out of the Vons Supermarket’s main entrance.
Nelson at the Wells Fargo teller window at Vons Supermarket on August 23, 2019Nelson also admitted that on August 29, 2019, FBI agents executed a federal search warrant at his residence and found a black bomber jacket, dark colored pants with white stripes down the sides, a navy blue-colored backpack, and a large black wristwatch, which were all items he was recorded wearing by surveillance cameras during, or just after, one of the bank robberies. FBI agents found a loaded .380 Smith and Wesson semi-automatic handgun in a drawer in Nelson’s room, which matched the description of the firearm he brandished during the Shoe Palace robbery. Agents also found $2,030 in cash on Nelson’s person, during his arrest.
"These robberies were meticulously planned for maximum impact on the victims and maximum payout," said U.S. Attorney Robert Brewer. "The threat of violence is a terrifying experience that these victims will never forget." Brewer praised prosecutor Matthew Brehm, FBI agents and officials with the San Diego, National City and La Mesa police departments for their excellent work on this case.
"The San Diego FBI Violent Crimes Task Force takes their work very seriously, said FBI Special Agent in Charge Suzanne Turner. "Robberies committed with the threat of violence and while using a firearm is a top priority for our agents and task force officers. The bank tellers, store workers, and San Diego citizens have the right to be free from violent criminal acts that threaten the safety and security of our community."
Nelson will be sentenced on January 11, 2021 at 9 a.m. by District Court Judge Cynthia Bashant.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019 by U.S. Attorney Brewer, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Case Number 19cr3563-BASRyan W. Nelson Age: 38 San Diego, California
SUMMARY OF CHARGESBank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: Twenty years in prison and $250,000 fine
Hobbs Act Robbery – Title 18, U.S.C., Section 1951
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCYFederal Bureau of Investigations
San Diego Police Department
National City Police Department
La Mesa Police Department
Rosebud Man and Woman Charged with Burglary and LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man and woman have been indicted by a federal grand jury for Second Degree Burglary and Larceny.
Jesse Phillip Clairmont, Jr., age 42, and Tera Jo Larvie, age 27, were indicted on March 9, 2020. Clairmont appeared before U.S. Magistrate Judge Mark A. Moreno on April 13, 2020, and Larvie appeared before U.S. Magistrate Judge Mark A. Moreno on October 7, 2020. On those respective dates, both pled not guilty to the Indictment. Clairmont changed his plea to guilty on August 12, 2020.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 23, 2020, in Todd County, South Dakota, Clairmont and Larvie unlawfully entered a home and stole personal property valued at over $1,000.
The charges are merely accusations and Larvie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Larvie was released on bond pending trial. A trial date has not been set for Larvie. Clairmont was released pending sentencing set for November 2, 2020.
Prolific Dark Web Dealer of Carfentanil and Fentanyl Sentenced to 17½ Years in PrisonRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, announced that RICHARD CASTRO, a/k/a “Chemsusa,” a/k/a “Chems_usa,” a/k/a “Chemical_usa,” a/k/a “Jagger109,” was sentenced to 210 months in prison today for participating in a conspiracy to distribute carfentanil, fentanyl, and a fentanyl analogue over the “dark web,” including on AlphaBay and Dream Market, and for laundering the proceeds of his narcotics trafficking. CASTRO also was ordered to forfeit more than $4 million in criminal proceeds. CASTRO previously pled guilty before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “For several years, Richard Castro used the dark web to sell prolific quantities of powerful opioids, including fentanyl and carfentanil. Castro’s drugs put lives in danger virtually every day – including the lives of the postal carriers who unknowingly delivered his product. Today’s lengthy sentence sends a clear message about this type of dangerous conduct.”
According to the allegations in the Indictment to which RICHARD CASTRO pled guilty, public court filings, and statements made in court:
From November 2015 through March 2019, CASTRO conspired to distribute carfentanil, fentanyl, and phenyl fentanyl (an analogue of fentanyl). Fentanyl is a synthetic opioid that is significantly stronger than heroin, and carfentanil is a fentanyl analogue that is approximately 100 times stronger than fentanyl. For most of the conspiracy, CASTRO and a co-conspirator dealt drugs over the dark web, using the monikers “Chemsusa,” “Chems_usa,” and “Chemical_usa.” CASTRO was an operator of these online monikers and the leader of this conspiracy. On one dark web marketplace, Dream Market, CASTRO boasted that he had completed more than 3,200 transactions on other dark web markets, including more than 1,800 on AlphaBay. The customer feedback for “Chemsusa” included, “Extremely potent and definitely the real Carf,” as well as “The Carfent is unbelievably well synthesized, keep up the amazing work.”
In June 2018, CASTRO, using the “Chemsusa” moniker, informed his customers that he was moving his business off dark web marketplaces and would accept purchase requests for narcotics only via encrypted email. To learn the off-market email address, “Chems_usa” required willing customers to pay a fee. An undercover law enforcement officer paid this fee, obtained the encrypted email address, and placed multiple orders with CASTRO. CASTRO’s co-defendant, Luis Fernandez, shipped narcotics on behalf of the conspiracy, including from New York City.
CASTRO’s customers paid him in bitcoin. CASTRO laundered his narcotics proceeds in several ways, including by funneling millions of dollars through his bitcoin wallets and by buying approximately 100 quadrillion Zimbabwe bank notes, among other valuables.
In March 2019, law enforcement searched CASTRO’s residence in Windermere, Florida. During this search, officers found, among other things, nine firearms, including an AR-15 assault rifle, and two safes that secured private keys to multiple bitcoin wallets. CASTRO also had several cars, including a Lamborghini and a Tesla.
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In addition to his prison term, CASTRO, 37, of Windermere, Florida, was sentenced to five years of supervised release and ordered to forfeit $4,156,198.18.
CASTRO’s co-conspirator, Luis Fernandez, was previously sentenced to 151 months in prison and four years of supervised release, and was ordered to forfeit $269,623.
Ms. Strauss praised the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the New York City Police Department for their outstanding investigative work. Ms. Strauss also thanked the Internal Revenue Service and the Orange County, Florida, Sheriff’s Office for their assistance in this case.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Michael D. Neff, Aline R. Flodr, and Ryan B. Finkel are in charge of the prosecution.
Post Falls Man Sentenced to over 11 Years for Drug DistributionRead the Press Release
COEUR D’ALENE – Adam Christopher Horty, 57, of Post Falls, Idaho, was sentenced in U.S. District Court to 137 months in federal prison, U.S. Attorney Bart M. Davis announced today. U.S. Circuit Judge Richard C. Tallman, sitting as a U.S. District Court judge, also ordered Horty to pay a $1,000 fine and serve five years of supervised release following his prison sentence. In November 2019, a federal jury sitting in Coeur d’Alene convicted Horty of three counts of distribution of methamphetamine, one count of possession of methamphetamine with the intent to distribute, and one count of felon in possession of firearms.
Evidence presented at trial established that law enforcement officials began investigating Horty in July of 2018 for distributing methamphetamine out of a home in Post Falls. During the investigation, law enforcement conducted controlled purchases of methamphetamine from Horty at this residence on three occasions. On August 14, 2018, law enforcement served a search warrant at Horty’s residence. During the warrant service, Horty was found in possession of 230 grams of actual methamphetamine and drug distribution paraphernalia. Officers also located three firearms in Horty’s bedroom. Horty has multiple prior felony convictions in the State of Washington, which prohibit him from possessing firearms.
This case was investigated by the Federal Bureau of Investigation, Kootenai County Sheriff’s Office, Homeland Security Investigations, Post Falls Police Department, Idaho State Police, Idaho Department of Correction, and Rathdrum Police Department.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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
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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.
Pittsburgh Man Indicted in Project Safe Childhood CaseRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of production and attempted production of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on September 16 and unsealed October 5, named Matthew Joseph Gourley, age 48, as the sole defendant.
According to the Indictment, on January 6, 2020, January 14, 2020 and March 2, 2020, Gourley coerced Minor A, a minor female victim, to engage in sexually explicit conduct for the purpose of producing a visual depiction, namely, digital images and videos, depicting Minor A engaging in sexually explicit content.
The law provides for a maximum total sentence of not less than 15 years in prison but not more than 90 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Local Oil and Gas Company Pleads Guilty to Employing Illegal AliensRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Tim Icenhower, 58, of Marshall, Texas, the Owner and President of Icenhower Oil and Gas, Inc. (IOG) in Bossier City, Louisiana, pled guilty today to unlawful employment of aliens. In addition, IOG pled guilty to one count of harboring aliens. The hearing was before United States District Judge Donald E. Walter.
According to information presented in court, the Department of Homeland Security (DHS) in Shreveport began receiving complaints in early 2016 that IOG was hiring undocumented individuals from Mexico. In March 2016, during their investigation of IOG, DHS requested employment documents from IOG to verify employees’ legal status and visited the IOG facility in Bossier City, Louisiana. DHS agents met with an IOG human resources official to inspect the documents and assess IOG’s employment verification process. DHS agents provided IOG officials with a handbook for employers that discussed the rules and regulations for employing individuals in the United States and other information about a free online program offered by DHS to employers so they can verify the legal status of potential employees.
On October 16, 2016, IOG officials issued a letter to DHS advising of the results of its internal investigation and audit. The letter identified 69 individuals that IOG terminated because they were “unauthorized.” The letter also identified 22 undocumented employees that IOG claimed it needed to retain because they were essential to fulfill certain pending contractual obligations.
On January 27, 2017, DHS agents visited the IOG facility in Bossier City again and conducted another audit and found that IOG still had undocumented employees that were not authorized to work there. DHS agents issued a Warning Notice to IOG that they were still in violation and advised that there would be a follow-up audit in six months.
DHS conducted a follow-up audit of IOG in June 2017 and identified at least 17 individuals who were still employed at IOG that had been identified in the October 2016 audit as undocumented and unauthorized employees. Neither Icenhower nor IOG terminated the employment of these individuals after learning that they were undocumented aliens.
Icenhower faces a maximum penalty of up to six months in prison, and his company, IOG, could be ordered to pay a fine of up to $500,000. Sentencing is scheduled for February 11, 2021.
The Department of Homeland Security conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting 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.
Owner of Japanese fishing vessel pleads guilty to unlawful trafficking of shark fins and is sentenced to largest criminal monetary penalty ever imposed in shark finning case in the United StatesRead the Press Release
HONOLULU—Hamada Suisan Co. Ltd., the owner of the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20, plead guilty, pursuant to a plea agreement, to aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act, the Department of Justice announced today. The company’s attorney entered the guilty plea in person in Honolulu on behalf of the company, and company representatives appeared by video from Japan.
The company was sentenced to pay a fine of $126,000, forfeiture of $119,000 (representing the value of the vessel), and a period of probation of three years. This sentence represents the largest monetary penalty ever imposed for a federal shark finning case. During the three-year probation period, the company must comply with a robust compliance plan developed in coordination with the Department of Justice and supervised by the Probation Officer. The company must also retire and relinquish the fishing license in Japan previously associated with the Kyoshin Maru.
According to court documents, the case arose from the November 2018 discovery of approximately 962 shark fins, weighing approximately 190 pounds, from the checked luggage of fisherman working aboard the 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. When sharks were caught as bycatch by the Kyoshin Maru, the fishing master of the vessel directed the crew members to haul the shark into the vessel and kill the shark, instead of cutting the line and letting the shark swim free, in order to save the hook. The crew members followed this instruction, though at times they cut the line when the fishing master was not looking, in order to avoid the danger of handling a live shark. The fishermen dried the shark fins without the corresponding shark carcasses, in plain view of the captain and crew. The Captain and the Fishing Master personally observed the shark finning that took place on the vessel, and did nothing to stop it. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about Nov. 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 whitetip shark has declined by approximately 80-95 percent 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 ten Indonesian nationals with shark fins in their luggage were arrested and eventually pled guilty to a violation of the Lacey Act in United States v. Abdurahman et al., Cr. No. 18-00192 KJM. The Captain of the vessel, the fishing master, and the other Japanese officers have been terminated from their employment with Hamada Suisan.
The Japan Fisheries Agency, which is the government agency in Japan responsible for enforcement of Japan's shark finning laws, conducted a parallel investigation. On March 27, 2019, Japan found a violation of Japan's shark finning ordinances, and imposed an administrative penalty upon the Kyoshin Maru, specifically a “stoppage” that prohibited the vessel from operating for a period of 67 days, and also prohibited maintenance or repairs during the stoppage period. The Kyoshin Maru did not operate and remained at port from the time it arrived in Japan after dropping off the fishermen in Honolulu, until the time it was eventually sold—a period of approximately 8 months, during which the vessel deteriorated. The parties stipulated that $119,000 in substitute assets is appropriate in lieu of forfeiture of the Kyoshin Maru, which is now beyond the control of the defendants.
At sentencing, the judge, Hon. J. Michael Seabright, described the defendant’s conduct as “callous, cruel, and unnecessary.” Judge Seabright noted that the contract used by the defendant’s manning agent in Indonesia to hire the Indonesian crew members specifically contemplated that shark finning would take place and described how to divide the proceeds. Judge Seabright noted, however, that the company had engaged in prompt cooperation with government. Judge Seabright said, “I hope this sentence deters long-line tuna fishermen from engaging in shark finning and causes them to comply with international norms and the rule of law. Hopefully ship owners get word of this.”
Mr. Shinichi Hamada, Managing Director of Hamada Suisan Co. Ltd., participated in the proceedings by video from Japan, with the assistance of a Japanese translator. He apologized for the offense, accepted responsibility, and committed to changing Hamada Suisan’s corporate culture through the compliance plan.
“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 Principal Deputy Assistant Attorney General Jonathan D. Brightbill for the Environment and Natural Resources Division. “The sentence imposed today, and Japan’s related actions holding this Japanese company to account, reflects the seriousness of these offenses and the United States’ and international commitment to ending this practice.”
“Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem," said U.S. Attorney Kenji M. Price for the District of Hawaii. “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.”
The possession and sale of shark fins are regulated by several international treaties, to which both Japan and the United States are parties. These treaties obligate member nations to pass domestic laws prohibiting the retention onboard of any part of certain protected shark species, including oceanic whitetip sharks and silky sharks; and to require shark fins to comprise no more than 5% of the weight of sharks on board, among other requirements. Japan and the United States have passed domestic laws that implement these treaty obligations by restricting the shark fin trade. The State of Hawaii goes beyond these treaty obligations and completely bans the shark fin trade. It is unlawful to possess, sell, offer for sale, trade, or distribute shark fins in Hawaii, and Hawaii was the first state to impose an outright ban on the shark fin trade.
This case was 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 was 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, U.S. Department of Justice. The prosecution team coordinated with the U.S. Department of State on this matter.
Operator of Underground, International Financial Institution Pleads Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
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Assistant U.S. Attorneys Daniel C. Silva (619) 546-9713 and Mark W. Pletcher (619) 546-9714SAN DIEGO – Liang Zhou pleaded guilty in federal court today to operating an unlicensed money transmitting business. His guilty plea is the third in this ongoing investigation targeting operators of unlawful underground financial institutions that transfer money between the United States and China, thereby circumventing domestic and foreign laws regarding monetary transfers and reporting, including United States anti-money laundering scrutiny and Chinese capital flight controls.
As part of his agreement to plead guilty, Zhou agreed to forfeit $446,330 to the United States as property involved in the operation of his unlicensed money transmitting business.
As admitted in the plea agreement entered today before U.S. Magistrate Judge Karen S. Crawford, Zhou sold hard currency in U.S. dollars that he collected from various, and occasionally unknown, third parties. His customers were typically individuals with bank accounts in China who could not readily access cash in the United States due to capital controls that cap the amount of Chinese yuan that an individual can convert to foreign currency. Often these customers needed the money to gamble at the casinos in Las Vegas. Upon receiving U.S. dollars, the customers would transfer from a Chinese bank account an equivalent value in yuan, over their mobile phones in the United States, to a separate bank account in China designated by Zhou.
"Individuals and organizations operating outside the conventional financial system represent a clear and present danger to the international banking system and the ability of law enforcement to detect and confront the criminal activity," said U.S. Attorney Robert S. Brewer. He commended prosecutors Daniel Silva and Mark Pletcher, as well as federal agents from Homeland Security Investigations, IRS Criminal Investigation Las Vegas Financial Crimes Task Force and the Drug Enforcement Administration for their excellent work on this case.
Sentencing is scheduled for January 8, 2021 before U.S. District Court Judge Dana Sabraw.
DEFENDANTS Case Numbers 20-CR-3084Liang Zhou Las Vegas, NV Age: 37
SUMMARY OF CHARGES*Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison, forfeiture, and $250,000 fine
AGENCIESHomeland Security Investigations
IRS Criminal Investigation Las Vegas Financial Crimes Task Force
Drug Enforcement Administration
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Oklahoma City Man Convicted of Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – RODERICK GLENN HOUSTON, JR., 36, of Oklahoma City, has pleaded guilty to child sex trafficking, announced U.S. Attorney Timothy J. Downing.
On September 1, 2020, a federal grand jury returned a Superseding Indictment against Houston that charged him with child sex trafficking, production of child pornography, and transportation of child pornography.
Today, Houston pleaded guilty to child sex trafficking before Senior U.S. District Judge Stephen P. Friot. According to public records and admissions made as part of his guilty plea, between April 2015 and March 9, 2016, Houston served as the pimp of a girl known as Jane Doe #1. Houston placed advertisements for Jane Doe #1 as an escort on the internet, provided her to men for commercial sex, and kept the cash proceeds. In spite of knowing that she was a child, he sold her to men for sex in Oklahoma, Florida, Louisiana, and Texas.
At sentencing, which will occur in approximately 90 days, Houston faces not less than 10 years and up to life in federal prison. If sentenced to less than life, he will be required to comply with terms of supervised release for at least five years and up to life and be required to register as a sex offender. Houston also faces a fine of up to $250,000 and could be ordered to pay restitution to Jane Doe #1.
This case is the result of an investigation by the Federal Bureau of Investigation – Oklahoma City Field Office, the Oklahoma City Police Department, and the Los Angeles (California) Police Department. Assistant U.S. Attorneys Brandon Hale and McKenzie Anderson prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
OC Man Who Fraudulently Obtained VA Benefits by Falsely Claiming to Be a Wounded Marine Sentenced to over One Year in PrisonRead the Press Release
LOS ANGELES – An Orange County man who falsely held himself out to be a United States Marine Corps combat veteran and two-time Purple Heart recipient to fraudulently obtain veterans’ health care and housing benefits was sentenced today to 16 months in federal prison.
James Stiles, 43, of Orange, was sentenced by United States District Judge John A. Kronstadt, who also ordered him to pay $167,234 in restitution. Stiles pleaded guilty on June 18 to one count of health care fraud.
In November 2012, Stiles applied for health care benefits through the United States Department of Veterans Affairs (VA) by submitting and signing a fraudulent application. On the form, Stiles falsely claimed that he had served in the Marine Corps from 1995 to 2005, and that he was awarded the Purple Heart after being wounded in combat.
Once he was enrolled in the VA’s health care benefit program, Stiles scheduled medical appointments at will. From December 2012 to March 2016, Stiles received 692 outpatient treatments, primarily at the Tibor Rubin VA Medical Center in Long Beach.
Stiles admitted in his plea agreement that in December 2015 he also applied for housing benefits intended for homeless veterans, and he submitted forms where he falsely claims to be the recipient of two Purple Hearts. As a result of this application, Stiles was accepted into the HUD-Veterans Affairs Supporting Housing program. The Orange County Housing Authority, HUD's local housing partner in Orange County automatically provided his landlord with vouchers on Stiles’s behalf each month beginning in February 2016.
Also, in February 2016, Stiles submitted a form to the VA for the purpose of obtaining disability benefits in which he falsely claimed that he was a veteran.
Stiles’s scheme to defraud ended in April 2016 when the VA confronted him, and he admitted he had never served in the U.S. military and was not entitled to receive VA benefits.
The total loss in this case was $167,234, with a loss of $162,900 to the Veterans Health Administration and a $4,334 loss to the Orange County Housing Authority.
In a sentencing memorandum, prosecutors cited a March 2016 audio recording where Stiles falsely told a religious outreach group for veterans “that he was a captain in the Marine Corps, that he served for 10 years, that he was simultaneously shot in the head by a 5-year-old ‘kid’ and in the back by a sniper, that he was subsequently in a coma for approximately two years, and that he still lives with the bullet in his head.”
“His comments have no basis in the truth,” prosecutors wrote. “[Stiles’s] statements are deeply offensive to those that have actually served in the United States military.”
This matter was investigated by the U.S. Department of Veterans Affairs – Office of Inspector General and the Department of Housing and Urban Development – Office of Inspector General.
This case was prosecuted by Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office.
North Judson, Indiana Man Sentenced to 14 Years in PrisonRead the Press Release
SOUTH BEND –Henry Wood, 41, of North Judson, Indiana was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty to receipt of child pornography, announced U.S. Attorney Kirsch.
Mr. Woods was sentenced to 168 months in prison followed by 5 years of supervised release.
“Those who engage in crimes exploiting children are among the worst offenders in the criminal justice system. Lengthy prison sentences, like that imposed on Mr. Wood, are often the result in these types of cases,” said United States Attorney Thomas L. Kirsch II. “Every view or share of child pornography re-victimizes some of the most vulnerable victims. My Office and our investigative partners will do everything in our power to investigate and prosecute individuals who engage in this type of activity.”
According to documents filed in this case, Mr. Wood admitted that he downloaded child pornography to his cell phone in December of 2018. Wood, a former gang member with an extensive criminal history, possessed over 2000 images of child pornography, including multiple videos. Many of these images contained sadistic images of children under 12 engaging in sex acts.
“This sentence demonstrates the FBI’s commitment to investigating cases of child pornography with a sense of urgency to protect children from predators who engage in this type of activity,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “Protecting the most innocent and vulnerable members of our community, and ensuring those who would harm them are held accountable, is a responsibility the FBI and our law enforcement partners take seriously.”
This case was investigated by the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorney John M. Maciejczyk.
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New York Donut Shop Operators Indicted for Tax EvasionRead the Press Release
A federal grand jury in Syracuse, New York, returned an indictment charging the operators of three donut shops with conspiracy to defraud the IRS, tax evasion, and aiding and assisting in the filing of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Antoinette T. Bacon for the Northern District of New York.
According to the indictment, John Zourdos, his wife, Helen Zourdos, and their son, Dimitrios Zourdos, all of Rome, New York, operated three Dippin Donuts stores with locations in Rome and New Hartford. From 2013 to 2017, the defendants allegedly concealed more than $1 million in cash sales from the IRS by depositing cash directly into their personal bank accounts instead of business bank accounts, providing incomplete information to their accountant, and causing their accountant to file false individual and corporate tax returns with the IRS. The indictment further alleges that the defendants committed employment tax fraud by paying employees some wages “off the books” in cash.
If convicted, the defendants face a maximum sentence of five years in prison for the conspiracy charge and each count of tax evasion, and three years in prison for each false return charge. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Bacon commended special agents of IRS-Criminal Investigation, who conducted the investigation. They also thanked Assistant Chief John Kane and Trial Attorney Kimberly Ang of the Tax Division, and Assistant U.S. Attorney Michael Perry who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York City Man Sentenced to 12 Years in Prison for Supplying DS44 Gang with Heroin and FentanylRead the Press Release
PITTSBURGH - A former resident of the Bronx borough of New York City, has been sentenced in federal court to 12 years’ imprisonment to be followed by a term of supervised release of 3 years on his conviction of charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Holiday Vaughn, age 36, formerly of New York, New York.
According to information presented to the court at the time of his guilty plea, the Greater Pittsburgh Safe Streets Task Force initiated an investigation in 2017, targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Vaughn was a supplier of heroin and fentanyl to the drug trafficking organization, and that law enforcement officials intercepted conversations between Vaughn and his co-conspirator, Christopher Highsmith, discussing drug transactions. Additionally, law enforcement recovered 23 grams of fentanyl and heroin during a traffic stop on May 29, 2019, when Vaughn was traveling to Pittsburgh from New York. In connection with his guilty plea, Vaughn also accepted responsibility for distributing and possessing with intent to distribute 39 grams of heroin and fentanyl in the Pittsburgh area.
Prior to imposing sentence, Judge Stickman noted the defendant’s early admission of criminal conduct and his obvious desire to turn his life around going forward.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
New Jersey Man Admits Armed Robbery of BarbershopRead the Press Release
CAMDEN, N.J. – A New Jersey man today admitted robbing a Camden barbershop at gunpoint, U.S. Attorney Craig Carpenito announced.
Benjamin Daye, 34, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
On Nov. 23, 2019, Daye entered a barbershop in Camden armed with a loaded handgun. He grabbed a juvenile customer, pointed the gun at the customer’s head, and demanded cash and belongings from employees and customers. Daye fled and was apprehended shortly thereafter next to a bag containing the handgun and the stolen items.
The Hobbs Act charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The brandishing a firearm charge carries a mandatory minimum sentence of seven years which must be served consecutively to any other sentence imposed. Sentencing is scheduled for Feb. 9, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s charges. This investigation was a joint effort of the ATF Camden Field Office and the Camden County Police Department (CCPD) Shooting Response Team (SRT). ATF and CCPD have formulated a partnership composed of special agents, detectives, and intelligence analysts that investigate shooting incidents in real time.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
New Haven Drug Dealer Sentenced to 30 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GERARD SENIOR, 21, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to 30 months of imprisonment, followed by three years of supervised release, for distributing cocaine, crack and heroin.
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 Senior was distributed cocaine, crack and heroin.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging Senior and 24 other individuals with federal narcotics offenses related to the distribution of crack cocaine, cocaine and heroin. Two defendants were added in a superseding indictment that was returned on November 25, 2019.
Senior has been detained since his arrest on July 10, 2019. On November 22, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine, cocaine base (“crack”) heroin,
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, Elena L. Coronado and Tara E. Levens.
Myrtle Point Dairy Pleads Guilty to Violating Clean Water ActRead the Press Release
EUGENE, Ore.—A Myrtle Point, Oregon Corporation pleaded guilty today to repeatedly discharging milk and other pollutants into the public water treatment facility which caused waste water with elevated E Coli bacteria to enter the South Fork of the Coquille River resulting in a public health advisory, announced U.S. Attorney Billy J. Williams.
Valley Crest Foods, Inc. (Valley Crest), a creamery, pleaded guilty today to four counts of violating the Clean Water Act.
“The United States Attorney’s Office takes seriously any business, corporation, or individual that bypasses federal environmental laws to maximize profits.” said Billy J. Williams, U.S. Attorney for the District of Oregon. “We will continue to aggressively prosecute individuals and corporations whose illegal conduct threatens our region’s natural resources and public health.”
“We are all responsible for keeping our communities safe and protecting our natural resources, and you can’t send significant amounts of corrosive wastes down the drain and expect the sewage treatment process to work properly – especially after being told repeatedly that it would not. Today’s guilty plea demonstrates that we will hold violators responsible – even criminally responsible where that is warranted – for breaking our environmental laws” said Jessica Taylor, Director of EPA’s Criminal Investigation Division.
According to court documents, in 2017 and 2018, Defendant Valley Crest Foods, Inc. was regularly discharging wastewater to the sewer system that caused disruptions at the City of Myrtle Point’s publicly owned treatment works (POTW). These disruptions resulted in the POTW’s inability to effectively process the waste it received from the local community.
Specifically, Valley Crest turns raw milk into finished milk products such as half and half, whole milk (4%), and different percentages there after 2%, 1%, and skim (0%). The investigation determined the equipment at the facility would occasionally “back up” or “clog.” When such clogs occurred, employees would drain the milk products from the equipment and then clean the system. During cleaning, the clogs would break free. Clogs based on the investigation, ranged up to several hundred gallons or more at a time. When the clogs were dislodged, a “slug” or “slug load” of milk would flow directly into the sewer system and the sewage treatment plant where it overwhelmed the treatment process.
The Defendant was regularly discharging slugs of milk that interfered with the normal disinfectant process, causing the POTW to discharge waste with elevated bacteria (E. coli) levels to the South Fork of the Coquille River, in violation of the City’s Clean Water Act discharge permit. As a result, on several of those occasions, the levels of bacteria were significant enough that it led to public service announcements warning the community to avoid using the river.
On October 7, 2020, Valley Crest appeared before Magistrate Judge Mustafa Kasubhai, and entered a plea of guilty to the criminal information charging four counts of violating title 33 of the Clean Water Act. Valley Crest was ordered to pay a fine of $20,000 per count.
The investigation was conducted by EPA Special Agent Eric Martenson. The case was prosecuted by Pam Paaso, Assistant U.S. Attorney for the District of Oregon and Karla Gebel Perrin, Special Assistant United States Attorney for the U.S. Environmental Protection Agency.
Montgomery Man Sentenced to Five Years in Prison for Illegal Possession of a FirearmRead the Press Release
Montgomery, Alabama – On Tuesday, October 6, 2020, John Frederick Wheeler, a 29-year-old man from Montgomery, Alabama, was sentenced to 60 months in prison for possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Louis V. Franklin, Sr. There is no parole in the federal system.
According to court records and statements made in open court, in June of 2016, the United States Postal Inspection Service (USPIS) suspected that Wheeler was using the mail to receive illegal narcotics to sell. After obtaining a search warrant, the USPIS found marijuana and firearms at Wheeler’s residence. Under federal law, it is a crime to use, carry, or possess a firearm in furtherance of a drug trafficking crime. A violation of that statute carries a minimum sentence of five years. Wheeler pleaded guilty to the charge on July 8, 2020. During his plea hearing, Wheeler admitted that he possessed the firearm in order to further his marijuana distribution operation.
The United States Postal Inspection Service (USPIS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Montgomery Police Department investigated this case. Assistant United States Attorney Brandon Bates prosecuted the case.
Montgomery Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On Tuesday, October 6, 2020, Jerome Darnell Brown, a 29-year-old man from Montgomery, Alabama, was sentenced to 18 months in prison for being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. There is no parole in the federal system.
According to court records and statements made in open court, in April of 2018, the Montgomery Police Department conducted a traffic stop of the vehicle Brown was driving. When officers approached the car, they noticed the smell of marijuana coming from inside. After searching the vehicle, officers found a handgun that had been tossed under the backseat. They also discovered that Brown had an empty pistol holster in his belt. Brown has a previous felony conviction and is prohibited from possessing a firearm. He pleaded guilty to the charge on July 8, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Montgomery Police Department investigated this case, with assistance from the Alabama Department of Forensic Sciences, the Montgomery County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Russell Duraski prosecuted the case.
Monterey County Drug Dealer and Mexican Pharmacist Charged in Fentanyl Overdose Death CaseRead the Press Release
SAN FRANCISCO – A federal grand jury has charged Matthew Sanchez and Francisco Javier Schraidt Rodriguez with distribution of fentanyl resulting in death and conspiracy to distribute and possess with intent to distribute fentanyl and alprazolam in connection with a scheme to transport the drugs from Mexico to California, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux.
According to the indictment filed October 6, 2020 and unsealed today, between about June 2018 and November 2019, Schraidt Rodriguez, 61, a pharmacist in Mexico, smuggled bottles of alprazolam and counterfeit, fentanyl-laced pills across the border from Mexico to California. Once he was in the United States, Schraidt Rodriguez shipped these bottles and pills to a drug dealer in Monterey County. The dealer, in turn, then sold some of the bottles of alprazolam and fentanyl-laced pills to Sanchez. The indictment further describes how Sanchez, 25, of Monterey County, once in possession of the drugs, sold some of the bottles and pills to an individual who also was living in Monterey County. The individual ingested one or more of the fentanyl-laced pills and, as a result, died of a fentanyl overdose on September 5, 2019.
“Fake Oxycodone pills are flooding Monterey County,” said U.S. Attorney Anderson. “These fake pills are laced with fentanyl. The drug dealers who are pushing these fake pills couldn’t control the amount of fentanyl in them even if they cared. Fentanyl is dosed in micrograms. Dealers don’t have the equipment or the ability to control what they are selling. Our young people are dying by the score from ignorance and indifference.”
“Sadly, we are seeing overdose deaths from fake prescription pills dramatically increase. The profit margin for selling these pills is very small, but the lethal margin of error for those who ingest these pills is minute,” stated DEA Special Agent in Charge Comeaux. “A $5 profit from selling one of these pills could also lead to a potential 20 years in prison.”
Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, and can typically be obtained at a lower cost than genuine Oxycodone. However, small variations in the amount or quality of fentanyl can have significant effects on the potency of the counterfeit pills, raising the danger of overdoses. Fentanyl has become the leading cause of drug overdose deaths in the United States. In this case, the counterfeit, fentanyl-laced pills that Schraidt Rodriguez and Sanchez distributed were shaped and colored to resemble Oxycodone pills that are sold in the legitimate marketplace. The counterfeit pills, known as M30s, are round tablets that are light blue in color with an “M” imprinted on one side and a “30” imprinted on the other.
The indictment alleges that, during Sanchez’s and Schraidt Rodriguez’s drug distribution scheme, Schraidt Rodriguez sold approximately $81,859 worth of counterfeit, fentanyl-laced M30 pills; bottles of alprazolam; and other narcotics to a drug dealer in Monterey County. This drug dealer sold Schraidt Rodriguez’s fentanyl-laced M30 pills and bottles of alprazolam to Sanchez. At the peak of their drug sales, Sanchez bought approximately 100 counterfeit, fentanyl-laced M30 pills at a time from this drug dealer.
The indictment alleges that during the period of the conspiracy, Schraidt Rodriguez confirmed to the Monterey County drug dealer that the counterfeit M30 pills contained fentanyl, and that drug dealer, in turn, told Sanchez that the counterfeit M30 pills contained fentanyl. Sanchez communicated with the decedent by text messages and other means to arrange sales. Certain of these text messages stated that the M30 pills to be provided to the decedent contained fentanyl.
In sum, Sanchez and Schraidt Rodriguez are charged with conspiracy to distribute and possess with intent to distribute fentanyl and alprazolam, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(C), and distribution of fentanyl resulting in death, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C).
An indictment contains allegations only and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the conspiracy charge, the defendants face a maximum statutory penalty of 20 years in prison. If convicted of the distribution resulting in death charge, the defendants face a statutory mandatory minimum sentence of at least 20 years in prison, and a maximum statutory penalty of up to life in prison. In addition, the court may order terms of supervised release, fines, forfeitures, and restitution, However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Both Sanchez and Schraidt Rodriguez are in custody on federal arrest warrants. Sanchez’s next federal court appearance is scheduled for October 9, 2020, at 10:30 a.m. before U.S. Magistrate Judge Kandis A. Westmore. Schraidt Rodriguez’s next appearance in federal court is scheduled for October 13, 2020 in the Southern District of California, where the court will address issues related to his later appearance in the Northern District of California to face these charges.
This case is being prosecuted by the Organized Crime Drug Enforcement Task Force section of the U.S. Attorney’s Office for the Northern District of California. This case is the result of an investigation by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies. The case was investigated by the DEA, with assistance from the Customs and Border Protection, Office of Field Operations; the Department of Homeland Security, Homeland Security Investigations; and the Pacific Grove Police Department.
Montana Man Sentenced to over 10 Years for Possession and Attempted Distribution of Pounds of MethamphetamineRead the Press Release
COEUR D'ALENE – Robert Patrick Chiefstick, 45, of Missoula, Montana, was sentenced in U.S. District Court to 121 months in federal prison for possession of methamphetamine with intent to distribute, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Chiefstick serve five years of supervised release following his prison sentence. Chiefstick pleaded guilty to the charge on June 17, 2020.
According to court records, the case stems from a November 26, 2019 traffic stop wherein Chiefstick was found in possession of approximately four pounds of methamphetamine. The investigation revealed that Chiefstick was picking up the methamphetamine for another individual and was receiving a portion of the methamphetamine for his efforts.
This case was investigated by the Kootenai County Sheriff's Office, Rathdrum Police Department, Federal Bureau of Investigation, and Idaho State Police.
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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.
Monroe Man Sentenced for Child ExploitationRead the Press Release
MONROE, La. – Robert A. Hebert, 60, of Monroe, Louisiana, has been sentenced for child exploitation, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge Terry A. Doughty sentenced Hebert to 360 months (30 years) in prison followed by supervised release for life for the crime. Hebert pleaded guilty to the charge June 15, 2020.
The federal charges in this case stem from a complaint received by the Ouachita Parish Sheriff’s Office on May 16, 2019 that a four-year old male child was being sexually assaulted and molested. After further investigation, law enforcement agents learned that Hebert had sexually exploited the minor victim. A search of Hebert’s laptop and digital camera revealed inappropriate images of the defendant and the victim, as well as images of other prepubescent children, which Hebert had downloaded from the internet.
The FBI and the Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Earl M. Campbell 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.
Mexican man sent to prison for smuggling cocaineRead the Press Release
LAREDO, Texas – A 42-year-old Mexican national has been ordered to federal prison for conspiring to import, and for importing, 8.8 kilograms of cocaine into the United States, announced U.S. Attorney Ryan K. Patrick.
Omar Jaime Flores, Monterrey, Mexico, pleaded guilty Dec. 2, 2019.
Today, U.S. District Judge Diana Saldaña handed Flores a 36-month term of imprisonment. Not a U.S. citizen, he is expected to face removal proceedings after serving his sentence. In imposing the sentence, the court noted he was a border crosser and now will be forever banned from the United States.
“While some may mistakenly view smuggling controlled substances as a path to a quick profit, this sentencing demonstrates that serious consequences await those who engage in this criminal activity,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - San Antonio. “HSI will continue to utilize its broad authorities to bring to justice those who blatantly ignore the laws of this nation and threaten the welfare of our communities.”
On Sept. 20, 2019, Flores attempted to enter the United States at the Gateway to the Americas Port of Entry in Laredo driving a 2003 Ford Explorer. Authorities conducted an x-ray inspection of the Explorer and saw anomalies near the vehicle’s front fender.
Upon further examination, they discovered a hidden compartment filled with bundles of cocaine. The packages had a total weight of 8.8 kilograms with an estimated street value of nearly $225,000.
Flores ultimately admitted he had been hired to smuggle narcotics into the United States.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney David Fawcett prosecuted the case.
Mexican drug smugglers head to federal prisonRead the Press Release
LAREDO, Texas – A 43-year-old Mexican national has been ordered to federal prison after he admitted to conspiring with others to import approximately 25 kilograms of 100% pure meth from Mexico, announced U.S. Attorney Ryan K. Patrick.
Edgar Eliud Villarreal Munoz pleaded guilty Nov. 4, 2019, while his co-conspirator - Pablo Xavier Castillo Jaramillo, 32 - entered his plea Feb. 4.
Today, U.S. District Judge Diana Saldana handed Munoz a 57-month term of imprisonment. In handing down the sentence, Judge Saldana noted Munoz was responsible for the transportation of narcotics from Mexico. U.S. District Judge Marina Garcia Marmolejo sentenced Jaramillo to 84 months during a video conference sentencing hearing June 29. Not U.S. citizens, both men are expected to face removal proceedings following his sentence.
“This sentence reflects the seriousness of the charges and the danger this drug poses to our communities,” said Special Agent in Charge Shane Folden Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - San Antonio. “The vast scope of this criminal scheme would have had a devastating effect on the citizens of south Texas. HSI along with our law enforcement partners will continue to seek out and bring justice to those involved in the illicit drug trade.”
Munoz and Jaramillo planned to import meth from Mexico on Aug. 22, 2019. On that date, Munoz attempted to cross the border at the Juarez-Lincoln International Bridge in Laredo driving a Chevrolet Silverado 1500 hauling a utility trailer. Upon his arrival, authorities conducted an inspection of the truck’s interior and found packages concealed within the door frame.
The packages were ultimately found to contain approximately 25.04 kilograms of meth. Jaramillo admitted he was paid 10,000 pesos to build the compartments and conceal the narcotics inside Munoz’s vehicle. Munoz admitting he expected to be paid $5,000 for importing and transporting the narcotics inside the vehicle.
Munoz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with assistance from Border Patrol and Customs and Border Protection. Assistant U.S. Attorney Yoona Lim prosecuted the case.
Mexican Man Sentenced for Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Kevin Miranda-Yepez, 26, was sentenced today in federal court in Omaha, Nebraska, for possessing child pornography. Senior United States District Judge Joseph F. Bataillon sentenced Miranda-Yepez to 48 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will being a 10-year term of supervised release and if he remains in the United States will be required to register as a sex offender. Miranda-Yepez is a citizen of Mexico and will likely be deported at the completion of his prison term.
Homeland Security Investigations received a Cybertip involving an image of child pornography in March 2016. The tip was traced to an IP address in Omaha. On December 8, 2016, a search warrant on Miranda-Yepez’s residence resulted in the seizure of his phone. Forensic analysis of the phone revealed 76 images of child pornography. The children depicted in sexually explicit conduct ranged in age from five to 13 years. During his interview, Miranda-Yepez admitted that he had searched for and downloaded child pornography from the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations.
Methamphetamine Trafficker Receives 10 Years in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A Greensboro woman was sentenced yesterday to 120 months in prison for conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
According to court documents and evidence presented in court, Sally Newland, 43, was involved in the importation and distribution of Methamphetamine into Wilmington during August 2019. On August 6, 2019, New Hanover County Narcotics Detectives arranged a controlled delivery of 12 ounces of methamphetamine from a source in Greensboro to the area of Ovalberry Court in New Hanover County. Detectives performed a traffic stop on an automobile being driven by Newland. Newland was in possession of more than 300 grams of methamphetamine. During the course of the investigation, it was discovered that Newland had made two prior deliveries of methamphetamine to New Hanover County during August of 2019. Newland had delivered at least a kilogram of methamphetamine.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II. The Drug Enforcement Administration and the New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case. This case was part of the OCDETF investigation “White Rabbit” focusing on a drug trafficking organization involved in the importation of Heroin and Methamphetamine into Eastern North Carolina.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00039-M.
Meth Dealer Sentenced to 25 Years in U.S. Federal Prison After Fleeing to MexicoRead the Press Release
A local meth dealer has been sentenced to 25 years in federal prison for drug conspiracy, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Salvador Martinez, 31, of Grand Prairie, Texas, was arrested in August 2013 and pleaded guilty to conspiracy to possess with intent to distribute methamphetamine in January 2014.
However, Mr. Martinez failed to appear for sentencing and a warrant was issued for his arrest. Following an exhaustive investigation by the U.S. Marshals Service, in December 2019, he was captured in Mexico, arrested by Mexican authorities on an arrest warrant based on a formal extradition request submitted by the United States. He was extradited from Mexico to the United States on May 6, 2020, and was sentenced Thursday to 300 months in federal prison by U.S. District Judge Jane J. Boyle.
According to his plea papers, Mr. Martinez admits he conspired with several individuals to distribute meth in Texas and Mexico. He admits that his coconspirators prepared the methamphetamine, which he then picked up and transported to his residence. On one occasion, he told his coconspirators that the drugs needed to “look better.” The plea paperwork reflects he also agreed to forfeit a Tuarus revolver and ammunition.
A total of 23 defendants were indicted in this case. Including Mr. Martinez, 16 defendants have pleaded guilty and been sentenced, one was dismissed, and five remain fugitives.
Significant sentences in this case include:
- Gerardo Cisneros, of Arlington, Texas, was sentenced to 240 months for conspiracy to possess with intent to distribute methamphetamine, plus 240 months for money laundering.
- Israel De la Cruz Sotelo, a.k.a. Rale, of Piedras Negras, Coahuila, Mexico, was sentenced to 151 months for his role in methamphetamine and marijuana distribution conspiracies.
- Israel De La Cruz Sotelo was sentenced on September 13, 2018, after being extradited from the Republic of Mexico.
The case is part of an Organized Crime Drug Task Force (OCDETF) Investigation. Established in 1982, the OCDETF program aims to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. OCDETF works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.
This case was investigated by the Drug Enforcement Administration’s Dallas Field Office, the Dallas Police Department, and the Garland Police Department. The U.S. Marshal’s Service, provided special assistance, as did U.S. Customs and Border Protection, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Department’s Office of International Affairs, which handled the extradition request. The Justice Department thanks the Fiscalía General de la Republica de Mexico (FGR) (Prosecutor General of the Republic of Mexico) and law enforcement authorities in Mexico for their support as well.
Assistant United States Attorney George Leal prosecuted the case.
Medicare Fraud Result in Charges Against Raleigh and Greensboro MenRead the Press Release
RALEIGH, N.C. – Today, a federal grand jury returned an Indictment charging Furman Alexander Ford, 51, of Raleigh with conspiring to defraud the Medicare Program by submitting false claims for services that were never provided in order to obtain money what was not owed. On August 26, 2020, Jimmy Guess, 62, of Greensboro pled guilty to the conspiracy to defraud Medicare.
According to the indictment, Furman Ford hired Jimmy Guess to be a consultant for his company, Integrated Alliance for Managed Healthcare, PLLC (“IAM Healthcare”) and to provide mental health services to the company’s patients primarily through a telehealth model. Guess was a licensed clinical social worker who provided mental health services.
According to the indictment, beginning around December 2018, and continuing until around February 2020, in the Eastern District of North Carolina and elsewhere Ford and Guess conspired with others in a scheme to defraud Medicare by submitting false claims to Medicare for mental health services that were never provided to Medicare beneficiaries. Specifically, Ford, Guess and others conspired to submit claims to Medicare, totaling approximately $242,964.15, for mental health services allegedly provided to approximately 73 beneficiaries between in or around October 2018 and in or around February 2020, when the conspirators well knew and believed the beneficiaries never received the billed services.
The indictment further alleges that in another part of the conspiracy that Ford and others, gathered the Medicare information of unsuspecting beneficiaries by marketing telehealth services and electronic records services to various entities, which often resulted in the exchange of Medicare beneficiary information. Moreover, Ford, through the IAM Healthcare Foundation, offered food in exchange for Medicare beneficiary information. Medicare paid IAM Healthcare approximately $163,271.74 because of the conspirators’ fraudulent claim submissions.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation, and the United States Department of Health and Human Services Office of the Inspector General, are investigating the case.
Assistant United States Attorney Ethan A. Ontjes and Special Assistant United States Attorney Tamika G. Moses are prosecuting these cases.
Should you feel that you or a family member are a victim of this case, please contact the United States Department of Health and Human Services Office of the Inspector General at (305) 968-6960.
A copy of this press release is located on our website. This case is part of the largest health care fraud and opioid enforcement action in Department of Justice history. See here
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
McKeesport Felon Sentenced to 9 Years in Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH - A former resident of McKeesport, has been sentenced in federal court to 9 years imprisonment to be followed by five years of supervised release on his conviction of conspiracy to distribute 40 grams or more of fentanyl and being a felon in possession of a firearm, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David S. Cercone imposed the sentence on J’Vhante Hampton, age 27.
According to information presented to the court, between October 2016 and March 2017, Hampton participated in a conspiracy to distribute 40 grams or more of fentanyl, and on March 21, 2017, he possessed three firearms and 74 rounds of ammunition after have been convicted of the felony offenses of Aggravated Assault (three counts), Conspiracy to Commit Aggravated Assault, and Carrying a Firearm without a License.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Hampton.
Massachusetts Man Going to Prison for 15 Years on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Frank Salerno, 31, of Pittsfield, Massachusetts, who was convicted of receiving child pornography, was sentenced to serve 15 years in prison by U.S. Chief Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that in 2019, the defendant engaged in sexually explicit online conversations with a 14 year-old minor who lived in Western New York. During those conversations, Salerno induced the minor to produce and send to him images child pornography. The defendant’s actions were ultimately reported to police, and he was arrested in Massachusetts in December 2019.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
# # # #Manchester Man Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
CONCORD - Glen Lanchester, 53, of Manchester, pleaded guilty in federal court to sexual exploitation of a minor, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in November 2018, the Manchester Police Department executed a search warrant at the defendant’s residence. They seized various electronic devices that contained child pornography. The defendant later admitted that he had previously used spy cameras which he placed in the bathroom of his apartment to film minor girls using the bathroom and showering. He used these to create child pornography of at least two minor victims. Minor Victim #1, who is now an adult, viewed one of the images found on the defendant’s computer and identified herself as being approximately seven or eight years old at the time it was taken. The image of Minor Victim #1 constitutes child pornography.
Lanchester is scheduled to be sentenced on January 18, 2021.
“Child exploitation crimes are deeply troubling offenses that can cause tremendous trauma to their innocent victims,” said U.S. Attorney Murray. “Protecting children from harm is a very high priority of the law enforcement community in New Hampshire. We will continue to work tirelessly alongside our law enforcement partners to identify and prosecute those who commit child exploitation crimes in the Granite State.”
“This conviction was only possible because of the close coordination built between local, state and federal law enforcement partners and the U.S. Attorney for New Hampshire to combat child exploitation crimes in our region”, said Michael Shea, acting Special Agent In Charge, Homeland Security Investigations (HSI), Boston. “During these trying times, we remain more committed than ever to strengthening our partnerships in order to help bring to justice those who seek to exploit and harm children.”
This matter was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Manager of Sinaloa Cartel Cell in Baltimore Sentenced to 12 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Jesus Chaidez-Meza, age 40, residing in Baltimore, to 12 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute more than five kilograms of cocaine. Chaidez-Meza, a Mexican national, is a permanent legal resident of the United States.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
“Drug dealing on the scale practiced by the Sinaloa cartel members in Baltimore fuels the violence that plagues the City,” said U.S. Attorney Robert K. Hur. “The Mexican Sinaloa cartel is one of the most dangerous international drug trafficking, money laundering, and organized crime syndicates threatening Americans today. By funneling wholesale quantities of drugs into the United States, the Sinaloa cartel drives up fatal overdoses and the gun violence in our streets that comes with the drug trade. We will continue to root out and bring to justice drug traffickers who bring deadly drugs to our neighborhoods and profit from the scourge of addiction.”
“The existence and influence of Mexican Drug Cartels in the city of Baltimore was well established through this investigation,” stated DEA Assistant Special Agent in Charge Orville Greene. “These relationships only further compound the challenges we already face in this city. With our federal, state, and local law enforcement partners, we will endeavor to dismantle any organization that seeks to establish drug distribution networks in the city of Baltimore and the state of Maryland. “
According to evidence presented at his five-day trial, Chaidez-Meza was recruited and sent to Baltimore during the summer of 2016 to oversee drug distribution operations conducted by the Mexican Sinaloa cartel. His ability to lease premises and purchase vehicles for use in the drug operations made him well suited for spearheading this particular Sinaloa cell. He maintained a presence in the Baltimore area through the Spring of 2017, when two large money seizures by DEA agents and task force officers resulted in the cell changing personnel.
Testimony at trial showed that the Sinaloa cartel has been distributing large quantities of cocaine in the Baltimore area for years. The cartel uses various “cells” to accomplish its drug distribution, with truck drivers transporting drugs to the east coast and millions of dollars in drug proceeds to the west coast. Chaidez-Meza helped to manage the cell in Baltimore. Cartel members provided funds to Chaidez-Meza to purchase a car and to rent an apartment from which he conducted the illegal cartel business. According to trial evidence, Chaidez-Meza worked with another individual, known only as Chu-Chi. Chu-Chi was responsible for the distribution of cocaine to local customers and Chaidez-Meza was responsible for the collection of the proceeds of the sales.
Witnesses testified that from September through December 2016, trucks arrived monthly with loads of 60-70 kilograms of cocaine. The driver then transported money back to California, where it was unloaded, and ultimately sent to Mexico. In December 2016, the driver arrived in Baltimore without drugs. On December 11, 2016, Chaidez-Meza and Chu-Chi delivered bags of money to the driver, which the driver packed in a hidden compartment in the tractor portion of the truck, and began driving west. Law enforcement officers stopped the truck just outside Hagerstown, Maryland and recovered $1.2 million from the hidden compartment, representing the proceeds from the sale of approximately 35 kilograms of cocaine.
According to trial evidence, shortly after the seizure, Chaidez-Meza returned to Mexico, but resurfaced in Baltimore in the Spring of 2017, when he terminated the lease on his apartment and sold the car he had purchased, in an effort to cover his tracks and liquidate any remaining assets.
The evidence proved that over the course of the conspiracy, Chaidez-Meza was responsible for the distribution of almost 250 kilograms of cocaine and the collection of millions of dollars in drug proceeds.
United States Attorney Robert K. Hur praised the DEA in Baltimore and Los Angeles, California and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys James G. Warwick and Jeffrey J. Izant, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Man and Woman Caught with Methamphetamine Outside Marion High School Sentenced to Nearly 20 Years Each in Federal PrisonRead the Press Release
An Iowa man and woman found with nearly two pounds of methamphetamine outside a local high school were both sentenced to nearly 20 years in prison.
Christin Campbell-Martin, age 40, from Ames, Iowa, received the prison sentence on September 30, 2020, following a guilty plea to possession with intent to distribute a controlled substance near a protected location.
Adam Scott Leiva, age 28, from Marshalltown, Iowa, received the prison sentence yesterday, October 7, 2020, following a guilty plea to possession with intent to distribute a controlled substance near a protected location
Information disclosed at their sentencing and plea hearings showed that on May 25, 2018, Campbell-Martin and Leiva were confronted by Marion, Iowa, police officers. The officers located Campbell-Martin’s car, which was stopped in the Marion High School parking lot late at night. Both Campbell-Martin and Leiva provided fake names to officers. Officers determined their correct names and learned that both had outstanding arrest warrants. Both Campbell-Martin and Leiva were arrested.
During a subsequent search of the car, officers located 906.5 grams of “ice” methamphetamine. Officers learned that Campbell-Martin and Leiva had been driving around Iowa for two to three days selling methamphetamine to people they knew. The two also intended to sell the 906.5 gram of methamphetamine to people in the Cedar Rapids area, but were caught before they could sell it. Both have extensive criminal histories. Campbell-Martin has 25 prior criminal convictions and Leiva has 13.
Campbell-Martin and Leiva were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Campbell-Martin was sentenced to 200 months’ imprisonment. Leiva was sentenced to 235 months’ imprisonment. Both were ordered to make payment of $100 to the special assessment fund. They must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Drug Enforcement Administration, the Marion Police Department, and the Mid-Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00079.
Follow us on Twitter @USAO_NDIA.
Lincoln Man Found Guilty of Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on October 8, 2020, Travis Lawrence Ferguson, 32, of Lincoln, Nebraska, was found guilty of conspiracy to distribute and possess with the intent to distribute methamphetamine by a Lincoln jury after a four-day trial. Sentencing is scheduled for January 14, 2021. Ferguson faces a prison term of up to 20 years and a term of supervised release, following the prison term, of up to 3 years.
Over the course of the trial, a number of Ferguson’s co-conspirators testified about his involvement in the distribution of methamphetamine in the Lincoln area between January of 2015 and April of 2019.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of Drug Trafficking Organization Sentenced to 25 Years in Federal PrisonRead the Press Release
Fayetteville, Arkansas – On Tuesday, Oct. 6, 2020, Marion Wise of Cave Springs, Arkansas, was sentenced to 25 years in prison conspiracy to distribute heroin. Wise is the final of 25 individuals responsible for a wide-ranging drug conspiracy to be sentenced.
David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration, announced today that all 25 individuals have now been sentenced by the United States District Court for their roles in a heroin and methamphetamine trafficking ring that operated in Benton and Washington Counties in Arkansas and also in the additional jurisdictions of California, Oklahoma, Missouri, Arizona and Mexico. The investigation and prosecution of this operation began mid-2018 through the October 6, 2020 sentencing. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
“Heroin and fentanyl drug use has reached epidemic proportions in many communities across the United States. These drugs are terribly addictive and extremely dangerous. The overdose deaths investigated in this operation are proof of how deadly these drugs are. This case is an excellent example of our plan to keep the trafficking of these drugs from causing even more deaths and even more damage to our communities in Northwest Arkansas. We will continue to focus our Federal Criminal Resources to investigate, convict, and obtain lengthy sentences for all those who would seek to import and distribute these deadly drugs into the Western District of Arkansas,” said First Assistant US Attorney David Clay Fowlkes.
“Nothing is more important than keeping our communities safe. DEA, along with our federal, state and local law enforcement partners, will continue to utilize our combined resources to target individuals trafficking drugs and guns, threatening the safety of our citizens in this region of Arkansas and throughout the country. These convictions send a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities,” said DEA Special Agent in Charge Brad L. Byerley.
Federal grand juries returned multi-count indictments against 25 individuals in the Northwest Arkansas area and beyond for their roles in a large-scale drug trafficking conspiracy. This drug trafficking ring imported multiple kilograms of heroin, methamphetamine and fentanyl into the Northwest Arkansas area from out of state for local distribution. Once sold to retail distributors, the heroin, methamphetamine and fentanyl were distributed in communities throughout Northwest Arkansas. Two heroin/fentanyl related overdose deaths were tied to the investigation.
Defendants in this conspiracy received the following sentences:
Marion Wise, 50, of Cave Springs, Arkansas, was sentenced Oct. 6, 2020, to 25 years in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Heroin. Wise was indicted in the Western District of Arkansas and plead guilty to an information in Feb. 2020.
Sherry Finn, 44, of Bella Vista, Arkansas, was sentenced Oct. 6, 2020, to 77 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Heroin. Finn was indicted in the Western District of Arkansas and plead guilty to an information in Feb. 2020
Michael Wells, 49, of Tulsa, Oklahoma, was sentenced May 20, 2020, to 68 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Heroin. Wells was indicted in the Western District of Arkansas and plead guilty on Nov. 6, 2019.
Ari Sorto, 28, of Springdale, Arkansas, was sentenced May 19, 2020, to eight years in federal prison followed by one year of supervised release on two counts of Knowingly Using a Communication Facility in a Drug Trafficking Crime. Sorto was indicted in the Western District of Arkansas and plead guilty on Jan. 7, 2020.
Cole Coleman, 29, of Bentonville, Arkansas, was sentenced April 17, 2020, to 87 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Heroin. Coleman was indicted in the Western District of Arkansas and plead guilty on Nov. 22, 2019.
Blaine Dehosse, 33, of Rogers, Arkansas, was sentenced April 17, 2020, to 106 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Heroin and one count of Possession of a Firearm in Furtherance of Drug Trafficking Offense. Dehosse was indicted in the Western District of Arkansas and plead guilty on Jan. 23, 2020.
Jonathan Hannah, 35, of Rogers, Arkansas, was sentenced Feb. 13, 2020, to 54 months in federal prison followed by three years of supervised release on one count of Maintaining Drug-Involved Premises. Hannah was indicted in the Western District of Arkansas in and plead guilty on Sept. 26, 2019.
Stephanie Coleman, 47, of Bentonville, Arkansas, was sentenced Jan. 29, 2020, to 18 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Heroin. Coleman was indicted in the Western District of Arkansas and plead guilty on Nov. 22, 2019.
Kourtney Wilson, 31, of Joplin, Missouri, was sentenced Jan. 29, 2020, to one year in federal prison followed by three years of supervised release on one count of Distribution of Heroin. Wilson was indicted in the Western District of Arkansas and plead guilty on Oct. 22, 2019.
Robert Johnston, 54, of Tulsa, Oklahoma, was sentenced Jan. 29, 2020, to 46 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Heroin. Johnston was indicted in the Western District of Arkansas and plead guilty on Oct. 25, 2019.
Jennie Nutt, 59, of Rogers, Arkansas, was sentenced Jan. 28, 2020, to three years in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Heroin. Nutt was indicted in the Western District of Arkansas and plead guilty on Oct. 23, 2019.
Adrian Oviedo, 36, of Springdale, Arkansas, was sentenced Sept. 18, 2019, to 330 months in federal prison followed by five years of supervised release on one count each of Aiding and Abetting in the Possession with Intent to Distribute Methamphetamine, Conspiracy to Distribute Methamphetamine and Felon in Possession of a firearm. Oviedo was indicted in the Western District of Arkansas and plead guilty on July 9, 2019.
Brenda Martinez-Blevins, 48, of Springdale, Arkansas, was sentenced Aug. 22, 2019, to one year in federal prison on one count of Failure to Depart. Martinez-Blevins was indicted in the Western District of Arkansas and plead guilty on May 3, 2019.
Vernon Williams, 53, of Watts, Oklahoma, was sentenced Aug. 14, 2019, to 248 months in federal prison followed by five years of supervised release on one count of Distribution of More Than 50 Grams of Actual Methamphetamine. Williams was indicted in the Western District of Arkansas and plead guilty on Mar. 12, 2019.
Gabriel Whitener, 36, of Watts, Oklahoma, was sentenced Aug. 14, 2019, to 210 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Controlled Substances. Whitener was indicted in the Western District of Arkansas and plead guilty on Mar. 12, 2019.
Aaron Bevill, 38, of Gravette, Arkansas, was sentenced Aug. 13, 2019, to 142 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Controlled Substances. Bevill was indicted in the Western District of Arkansas and plead guilty on Mar. 12, 2019.
Gregory Jobe, 32, of Sulphur Springs, Arkansas, was sentenced July 31, 2019, to 15 years in federal prison followed by three years of supervised release on one count of Distribution of Heroin. Jobe was previously indicted in the Western District of Arkansas and plead guilty on Mar. 4, 2019.
Connie Sherrell, 56, of Watts, Oklahoma, was sentenced June 10, 2019, to 62 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Controlled Substances. Sherrell was indicted in the Western District of Arkansas and plead guilty on Feb. 19, 2019.
Harold Campbell, 36, of Rogers, Arkansas, was sentenced June 10, 2019, to 37 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Heroin. Campbell was indicted in the Western District of Arkansas and plead guilty on Nov. 8, 2018.
Tyler Dellinger, 29, of Bella Vista, Arkansas, was sentenced May 11, 2020, to 13 years in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute a Controlled Substance and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Dellinger was indicted in the Western District of Arkansas and plead guilty on Feb. 4, 2020.
Matthew Woodrome, 38, of Rogers, Arkansas, was sentenced May 8, 2019, to seven years in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Heroin. Woodrome was indicted in the Western District of Arkansas and plead guilty on Nov. 8, 2018.
Robert Peeler, 31, of Rogers, Arkansas, was sentenced April 19, 2019, to 27 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Heroin. Peeler was indicted in the Western District of Arkansas and plead guilty on Dec. 7, 2018.
David Moore, 32, of Fayetteville, Arkansas, was sentenced April 4, 2019, to 46 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Heroin. Moore was indicted in the Western District of Arkansas and plead guilty on Nov. 15, 2018.
David Garduno, 35, of Rogers, Arkansas, was sentenced April 2, 2019, to 51 months in federal prison followed by three years of supervised release on one count of Distribution of Heroin. Garduno was indicted in the Western District of Arkansas and plead guilty on Nov. 7, 2018.
John Botson, 27, of Garfield, Arkansas, was sentenced March 5, 2019, to 157 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Heroin. Botson was indicted in the Western District of Arkansas and plead guilty on Nov. 7, 2018.
This prosecution was part of the Western District of Arkansas’ Operation Sticking Points, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This OCDETF case was investigated by the Drug Enforcement Administration in Fayetteville, Arkansas and Tulsa, Oklahoma, the Benton County/Rogers PD Narcotic Unit, the 4th JDDTF, Arkansas State Probation and Parole and the Arkansas National Guard Counter-Drug Unit. Assistant United States Attorneys Kimberly Harris, Dustin Roberts and David Harris prosecuted the cases for the Western District of Arkansas.
Law enforcement and community members honored by U.S. Attorney at awards ceremony in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – Nine law enforcement and community representatives were recognized today for their outstanding work in the greater Wheeling area.
U.S. Attorney Bill Powell recognized the U.S. Marshal Service, FBI Special Agent Matthew Berthinet, IRS Special Agent Tami Devericks, WV Special Commission on Special Investigations Investigator Jeff Shriner, WV State Police Sgt. J.W. Smith, FBI Forfeiture Specialist Amy Boyd, U.S. Postal Inspector Lindsay Weckerly, Ziegenfelder Frozen Treat Company, and WV Human Trafficking Task Force Coordinator Wuela Heceta for their contributions to create safer communities.
“It is my great honor to recognize those in our community who go above and beyond to protect our children, our community and our national security. While this year has created some unique challenges, it hasn’t thwarted efforts to protect and serve our neighbors. Those honored today never seek recognition, but it is important to let the public know about the accomplishments of our law enforcement and community members. I thank each and every one of them for their continued service,” said Powell.
The U.S. Marshal Service was recognized for their exemplary service in the Northern District of West Virginia. The Marshals consistently face danger as they make arrests on behalf of federal criminal cases. The Marshals are always helping with community outreach, as well. From several tours throughout the year to attending our Meet and Greet the Safety Fleet event in Wheeling in the fall, they never say no. They are the highlight of the tours in the Wheeling courthouse, always wowing visitors with their demonstrations and informative tours of their space. For their partnership in criminal cases, as well as in the community, The U.S. Marshals received the Outstanding Contribution Award.
FBI Special Agent Matthew Berthinet, IRS Special Agent Tami Devericks, WV Special Commission on Special Investigations Investigator Jeff Shriner, and WV State Police Sgt. J.W. Smith were awarded the Outstanding Investigative Effort Award for their work on the case of U.S. v. Harry Radcliffe, et al.. This 14-month, four-agency investigation involved the relationship between Ohio County Magistrate Harry A. Radcliffe and W&S Bail Bonding d/b/a A Bail Bonding by ABC (“ABC”), owned by William W. Seelbach, and for which his then girlfriend, Jolynn Gilchrist, worked as a bonding agent. The investigation included about 65 Grand Jury subpoenas, 25 Grand Jury witnesses, and 125 interviews. The result has been the identification of a three-year bribery/kickback scheme (2013-2015), involving approximately $22,000 of cash payments from Seelbach to Magistrate Radcliffe, which income he did not report to the IRS.
Radcliffe and Seelbach both entered guilty pleas to Klein conspiracy offenses arising from these payments. Radcliffe’s plea agreement included a factual stipulation that Seelbach offered these payments as bribes. Seelbach was sentenced to a term of probation. Radcliffe was sentenced to four months in prison. Radcliffe also resigned.
FBI Forfeiture Specialist Amy Boyd and the Forfeiture Unit in Pittsburgh oversees the FBI forfeitures in this district. Her team goes above and beyond other agency forfeiture units to support the Northern District of West Virginia in forfeiture efforts. They review search and seizure documents routinely to locate assets that would be part of an investigation, well in advance of the time of indictment, to ensure that all property subject to indictment is accounted for in the forfeiture phase of the case. They are the only agency willing to forfeit, upon request, amounts under threshold (5,000 for cash is the threshold) so that drug proceeds aren’t returned to defendants. Because of all the hard work, Amy Boyd is the recipient of the Outstanding Forfeiture Investigations Award.
In U.S. v. James Joseph Michaels, U.S. Postal Inspector Lindsay Weckerly and her team interdicted a parcel full of narcotics bound for Wellsburg. The agents located firearms which led to the indictment of the defendant. Inspector Weckerly testified at a four-hour suppression hearing. Weckerly’s testimony was precise, and she withstood some tough accusations while keeping her cool and reiterating the facts. Without Weckerly’s testimony, the case might not have ended with a guilty plea. Michaels pled guilty and was sentenced to five years of probation. Lindsay Weckerly was presented the Outstanding Investigative Effort Award.
The ceremony was held in U.S. Bankruptcy Judge David L. Bissett’s courtroom at the Wheeling Federal Courthouse and included remarks from U.S. Attorney Bill Powell and the presence of many local, state and federal law enforcement leaders from throughout West Virginia.
Other ceremonies are being held in Martinsburg and Clarksburg to honor more recipients of the U.S. Attorney Awards.
Kitsap County guardian sentenced to one year in prison for stealing more than $250,000 from elderly and disabled clientsRead the Press Release
Tacoma – The long-time operator of a guardianship business was sentenced today in U.S. District Court in Tacoma to one year and a day in prison and $256,336 in restitution for Social Security Representative Payee fraud, announced U.S. Attorney Brian T. Moran. WAYNE JEROME HOUSTON, 61, of Port Ludlow, Washington, owned and operated Cross Point Services LLC, a guardianship organization for disabled and vulnerable adults. Over the last seven years HOUSTON raided the accounts of 21 different clients. At the sentencing hearing, U.S. District Judge Robert J. Bryan said, “[T]his is a very sad situation all the way around.”
“This was not only a fraud on the federal benefits system that is designed to provide a safety net for our most vulnerable, it was a fraud on the court which endeavors to protect such vulnerable elders,” said U.S. Attorney Moran. “On each of the 240 times he transferred funds, withdrew cash, or wrote checks for his own benefit, this defendant betrayed the trust that had been placed in him.”
According to the plea agreement, HOUSTON and his company were responsible for managing the financial affairs of about two dozen clients a month. HOUSTON had access to the clients’ bank accounts so he could pay rent, utilities, and other bills for them. Social Security benefits were paid into some of the accounts for at least 13 clients who required a representative payee—HOUSTON—to manage their benefits. Beginning in 2010, HOUSTON used his position as guardian to write checks from the victim accounts to himself, to Cross Point Services, or to cash, and used ATMs to withdraw money from client accounts and used it for his own expenses. HOUSTON targeted clients who had significant income or resources so that the theft was less likely to be detected. In all 21 clients suffered thefts, ranging from a low of $200 to more than $66,000 from one of the clients.
As retired Kitsap County Superior Court Judge Anna Laurie told the Court, “…the true victims may never be made whole. At least two have died since his criminal conduct became visible, and many went months without sufficient resources while their successor guardians struggled to pay bills and maintain care.”
The granddaughter of one of the victims told the Court her 90-year-old grandfather “was left with nothing…He got ill and we had to fight for his care…. It was so hard having to tell him that once again he had been betrayed…. That he didn’t have any money to pay his bills because Mr. Houston had taken it.”
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and the Kitsap County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Benjamin Diggs.
Kimball Man Sentenced for Possession Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Keith H. Rivera, 35, of Kimball, Nebraska, was sentenced today in Lincoln, Nebraska, by Senior United States District Judge Richard G. Kopf for possession of child pornography. Rivera was sentenced to 48 months in prison and will also serve 5 years on supervised release. There is no parole in the federal system. Rivera will also be required to register as a sex offender after his release from prison.
In March, 2018, the Okanogan County Sheriff’s Office in Tonasket, Washington, received information from the FBI based on a cybertip from the National Center for Missing and Exploited Children. The cybertip reported that a specific IP address, email address and user name, later determined to be an individual from the State of Washington, had uploaded child pornography to his file sharing account. A search warrant was served in Washington on the residence of the person using the account which resulted in the seizure of numerous electronic items, including a cellphone. That phone had messages containing child pornography and further analysis indicated that those messages were sent from a 308 area code in August of 2017. A check of the telephone number using the 308 area code determined that the number belonged to Rivera.
A federal search warrant was served at Rivera’s residence in Kimball and Rivera’s phone was seized. A forensic review of Rivera’s phone found evidence that he possessed the two videos sent to the Washington subject in August, 2017. Further analysis showed additional images and videos of child pornography that appeared to have been downloaded from the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force.
Justice Department Sues Yale University for Illegal Discrimination Practices in Undergraduate AdmissionsRead the Press Release
The Justice Department today filed suit against Yale University for race and national origin discrimination. The complaint alleges that Yale discriminated against applicants to Yale College on the grounds of race and national origin, and that Yale’s discrimination imposes undue and unlawful penalties on racially-disfavored applicants, including in particular most Asian and White applicants.
The complaint also alleges that Yale injures applicants and students because Yale’s race discrimination relies upon and reinforces damaging race-based stereotypes, including in particular such stereotypes against Yale’s racially-favored applicants. And, the complaint alleges that Yale engages in racial balancing by, among other things, keeping the annual percentage of African-American admitted applicants to within one percentage point of the previous year’s admitted class as reflected in U.S. Department of Education data. The complaint alleges similar racial balancing about Asian-American applicants.
The department’s complaint alleges that Yale’s race and national origin discrimination violate Title VI of the 1964 Civil Rights Act. The lawsuit is the result of a multi-year investigation into allegations of illegal discrimination contained in a complaint filed by Asian American groups concerning Yale’s conduct.
“Illegal race discrimination by colleges and universities must end,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This nation’s highest ideals include the notion that we are all equal under the law. For centuries, people from all over the world have learned of this ideal, left their ancestral homes, and come to the United States hoping that this country would live up to its ideals and that they and their families could enjoy equal opportunity and pursue the American dream. Countless Americans have pursued their dreams through higher education, and they continue to do so. All persons who apply for admission to colleges and universities should expect and know that they will be judged by their character, talents, and achievements and not the color of their skin. To do otherwise is to permit our institutions to foster stereotypes, bitterness, and division.”
As a condition of receiving millions of dollars in taxpayer funding, Yale expressly agrees to comply with Title VI of the Civil Rights Act of 1964, a cornerstone civil-rights law that prohibits discrimination on the basis of race, color, or national origin in programs and activities that receive federal financial assistance. According to the complaint, Yale receives over $600 million annually in federal funds.
Title VI provides in part, “No person in the United States shall, on the ground of race, color, or national origin, … be subjected to discrimination under any program … receiving Federal financial assistance.” The U.S. Supreme Court repeatedly has struck down discriminatory admissions programs in higher education, and required such programs to be narrowly tailored and not unduly to burden innocent applicants in order to survive. Yale’s practices violate the law.
The Justice Department found Yale discriminates based on race and national origin in its undergraduate admissions process, and that race is the determinative factor in hundreds of admissions decisions each year. For the great majority of applicants, Asian Americans and Whites have only one-eighth to one-fourth of the likelihood of admission as African American applicants with comparable academic credentials. Yale rejects scores of Asian American and White applicants each year based on their race, whom it otherwise would admit.
Although the Supreme Court has held that colleges receiving federal funds may consider applicants’ race in certain limited circumstances as one of a number of factors, the Department of Justice found Yale’s use of race is anything but limited. Yale uses race at multiple steps of its admissions process resulting in a multiplied effect of race on an applicant’s likelihood of admission. And Yale racially balances its classes.
Yale refused to agree to the Department of Justice’s demand that Yale refrain from using race or national origin in its current 2020-2021 undergraduate admissions cycle. Yale also failed or refused ever to end its use of race in admissions, and Yale declined even to propose any changes to its pervasive use of race. The department therefore notified Yale that efforts at voluntary compliance had failed and filed suit.
Justice Department Charges 500+ Domestic Violence-Related Firearm Cases in FY 20Read the Press Release
NASHVILLE, Tenn. – October 8, 2020 - The Department of Justice announced it has charged more than 500 domestic violence cases involving firearms during Fiscal Year (FY) 2020. A Department priority since 2019 when Attorney General William P. Barr created the Department of Justice’s first ever-Domestic Violence Working Group, these charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made domestic violence firearms-related investigations a priority.
“Keeping firearms out of the hands of dangerous criminal offenders is one of the Department of Justice’s top priorities,” said Attorney General Barr. “This is especially important when it comes to individuals with prior domestic violence convictions. The statistics are clear that when domestic violence offenders have access to guns, their partners and their families are at much greater risk of falling victim to gun violence. In fact, in some communities across America, roughly half of the homicides are related to domestic violence. The Department of Justice is committed to keeping guns out of the hands of those who are prohibited from having them, and we will continue investigating and prosecuting all domestic violence firearms related crimes.”
“According to the CDC, data suggests that about one in six homicide victims are killed by an intimate partner,” said ATF Acting Director Lombardo. “Nearly half of female homicide victims in the U.S. are killed by a current or former male intimate partner. ATF is committed to aggressively pursuing prohibited possession of firearms due to domestic violence convictions and certain protective orders. It is another way we prevent violent gun crime within our communities.”
Of the more than 500 cases charged, 19 cases have been brought in middle Tennessee. Of those 19 cases, firearms were used in 10 of the incidents. This announcement follows the recent conviction of a Chapel Hill, Tennessee man, on federal firearms charges, after he assaulted his estranged wife in June 2017 and fired multiple rounds from an assault rifle as she hid in a bedroom closet. Though not included in the FY 2020 statistics, Laqueston Goff, 33, was convicted late last month, after a 3-day bench trial in U.S. District Court.
“As I said after the Goff conviction, Tennessee regularly ranks among the nation’s leaders in men who kill their female domestic partners,” said U.S. Attorney Cochran. “One of the reasons we aggressively prosecute gun crimes against domestic abusers is that when a gun is introduced in a violent relationship the chances of it turning into a murder increase exponentially. We have more than doubled our firearms prosecutions and together with our law enforcement partners, we will continue to devote significant resources to our violent crime initiative, especially when incidents of domestic violence occur.”
Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners.
The Working Group, chaired by U.S. Attorney Erin Nealy Cox, of the Northern District of Texas, disseminates legal guidance on keeping guns out of the hands of domestic violence abusers using three federal statutes:
- 18 USC § 922 (g)(1), felon in possession of a firearm
- 18 USC § 922 (g)(9), possession of a firearm by a prohibited person (misdemeanor crime of domestic violence)
- 18 USC § 922 (g)(8), possession of a firearm while subject to a domestic violence protective order
Based on the Working Group’s guidance, in FY 2020, U.S. Attorneys’ Offices nationwide brought 337 domestic violence felon-in-possession charges, 54 possession while subject to a protective order charges, and 142 possession by a prohibited person charges.
For more information on domestic violence or to get help, visit the National Domestic Violence Hotline website or call 1-800-799-SAFE (7233).
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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.
Jury Convicts Man for Producing Images of Child Sexual AbuseRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Loudoun County man today on charges of producing and distributing child pornography.
According to court records and evidence presented at trial, Kevin Hewlett, 34, was a farrier, a craftsman who trims and shoes horses’ hooves. He was hired to be the farrier to a minor girl’s horses.
Hewlett began communicating with the minor girl regularly through text messages and social media applications. Then in August 2018, Hewlett recorded himself engaging in sexually explicit conduct with the minor in his bedroom. A few months later, in January 2019, Hewlett distributed the sexually explicit video of himself with the 16-year-old girl to the minor over the internet using Instagram.
Hewlett faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison when sentenced on Feb. 26, 2021. 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the verdict.
This case was investigated by the Loudoun County Sheriff's Office and the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state, and federal partners.
Assistant U.S. Attorney Nathaniel Smith III and Special Assistant U.S. Attorney Gwendelynn Bills are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-64.
Judge sentences St. Louis man for role in romance scheme targeting elderly communityRead the Press Release
ST. LOUIS, MO – United States District Judge Audrey G. Fleissig sentenced Hammed Akande to 63 months in prison. Akande, a 30-year-old resident of St. Louis, Missouri, pleaded guilty in March to a conspiracy to commit mail and wire fraud relative to his role in a romance scam targeting 24 people.
According to court documents, in 2017, Akande began serving as a “money mule” in a romance scam that targeted 24 elderly residents of Missouri and a number of other states. “Romance Scams” are schemes in which fraudsters pretend to be in a romantic relationship with their victims in order to obtain money and merchandise as well as to induce the victims to conduct financial transactions on the fraudsters’ behalf. Because the victims are targeted through online dating sites and social media, the fraudsters are able to hide their identities by using the names and photographs of others and explaining their inability to meet or use video messaging services by claiming to be working abroad or in the military.
As a money mule, Akande’s role was to receive mailings containing money and electronic devices sent from the romance scam victims to residential addresses he controlled in the Saint Louis, Misouri metropolitan area. Akande then forwarded a portion of the funds and merchandise he received to other members of the romance scam conspiracy who resided within the United States and abroad through the mails as well as through the electronic transfer of funds.
Akande also played a significant role in the scheme because he used his skill with the English language to proofread messages that his Nigerian co-conspirators were sending to the victims living in the United States. This skill placed the victims at ease, and furthered their misbelief that they were in a romantic relationship with United States citizens.
Each of the victims were over the age of 60. Of the 24 victims, three reported experiencing substantial financial hardship because of the funds that they sent to the fraudsters, and four of them had aggregate losses in the amount of $574,123.45.
During the period of the scheme, Akande learned of a criminal investigation being conducted by the U.S. Postal Inspection Service. Akande relayed the information concerning the investigation to at least one of his co-conspirators, who immediately contacted a victim to tell that person not to speak with the law enforcement official Akande identified.
The U.S. Postal Inspection Service investigated this case. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
The Department of Justice Elder Justice Initiative is dedicated to investigating and prosecuting financial crimes targeting older adults. The Eastern District of Missouri Identity Theft Task Force is a group of federal, state and local law enforcement agencies working together to combat identity theft and its related crimes across the St. Louis Community.
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Judge sentences St. Louis County man for possession with intent to distribute fentanyl, heroin and methamphetamineRead the Press Release
ST. LOUIS, MO – United States District Judge Rodney W. Sippel sentenced Romando E. Welch, Sr. to 60 months in prison. Welch, a 45-year-old resident of Ferguson, Missouri, pleaded guilty to three counts of being in possession of a controlled substance with intent to distribute.
As part of their criminal investigation of Welch, from March, 2019 through June, 2019, DEA Special Agents utilized confidential sources to purchase fentanyl and heroin from Welch.
On July 2, 2019, the DEA and the St. Louis Metropolitan Police Department executed a federal search warrant at a residence in the 3900 block of Palm Street in St. Louis, Missouri. As the officers were approaching the residence, Welch exited the residence and was arrested. Welch had a key to the residence, and admitted to the arresting officers that he stored his illegal drugs in an over-the-door shoe holder in a bedroom within the residence. Upon executing the search warrant, the officers recovered fentanyl, heroin, and methamphetamine from the shoe holder. Welch admitted to having sold heroin and methamphetamine for years, and also admitted to having sold approximately one pound of methamphetamine every 10 days, as well as buying approximately one-half ounce of heroin or fentanyl at a time for resale from his source, and that he had resupplied three times during June.
Welch also consented to the search of a residence in the 3700 block of Cook Avenue in St. Louis, Missouri, where Welch said he lived with his girlfriend. Officers recovered a .380 pistol in a lunchbox in the bedroom of that residence, along with a sock containing approximately one ounce of heroin.
The St. Louis Metropolitan Police Department and Drug Enforcement Administration investigated the case. Assistant United States Attorney Lisa Yemm is handling the case for the United States Attorney’s Office.
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Judge Hands Down Prison Sentences for Co-Conspirators Involved in Two Major Drug Trafficking Cases in Middle GeorgiaRead the Press Release
MACON, Ga. – Three defendants guilty of trafficking illegal drugs in middle Georgia were sentenced to prison Wednesday for their crimes, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
U.S. District Judge Marc Treadwell sentenced Tony Collins, 58, of Milledgeville, Georgia, to serve 54 months in prison to be followed by three years of supervised release. Collins pleaded guilty to possession with intent to distribute methamphetamine. Sabrina Raiford, 51, of Warner Robins, Georgia, was sentenced to serve 48 months in prison to be followed by one year of supervised release after she pleaded guilty to use of a communication facility to conspire to possess with intent to distribute cocaine base. Lizericka Woolfolk, 29, of Warner Robins, Georgia, was sentenced to serve 48 months in prison to be followed by one year of supervised release after she pleaded guilty to use of a communication facility to conspire to possess with intent to distribute cocaine base. There is no parole in the federal system.
“Law enforcement is actively using of variety of investigative techniques to detect drug dealers in Middle Georgia. When caught, drug traffickers face steep federal prison sentences, without parole, for distributing their poison in the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “I want to thank the DEA for their role in investigating these cases, with the help of our local law enforcement partners.”
Collins is a co-conspirator in the Albruce Green drug distribution case. Between January 2017 and August 2018, law enforcement began investigating the drug distribution activities of Green. As part of the investigation, law enforcement intercepted Green's phone conversations and text messages in order to identify Green's source of supply and co-conspirators. Agents intercepted several text messages between Green and Collins, in which Collins requested to buy methamphetamine from Green. Collins admitted he intended to distribute methamphetamine he purchased from Green. Green is currently awaiting sentencing; other co-conspirators have been sentenced.
Raiford and Woolfolk are co-conspirators in the Robert Law drug distribution case. Law is serving a 188-month prison sentence after pleading guilty to conspiracy to possess with intent to distribute cocaine base. Drug Enforcement Administration (DEA) and Warner Robins Police Department (WRPD) agents received information from confidential informants that Law and co-conspirators Raiford and Woolfolk were trafficking illegal drugs, including cocaine, in Warner Robins.
The Collins case was investigated by DEA and prosecuted by Assistant U.S. Attorney Charles L. Calhoun. The Raiford and Woolfolk case was investigated by DEA and Warner Robins PD. Assistant U.S. Attorneys Charles Calhoun and Steven Ouzts prosecuted the case. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Illinois Man Sentenced to 57 Months in Prison for Conspiring to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – An Illinois man was sentenced today to 57 months in prison for conspiring to distribute one kilogram or more of heroin and 500 grams or more of cocaine, U.S. Attorney Craig Carpenito announced.
Jesus Henoc Castaneda Soberanis, 26, of Chicago, Illinois, previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On June 6, 2019, Soberanis conspired with others to distribute narcotics, agreeing to pay a conspirator approximately $1,000 to drive Soberanis, together with approximately one kilogram of cocaine and approximately two kilograms of heroin, from Illinois to the East Coast. The investigation revealed that Soberanis would have distributed at least one of these kilograms of narcotics in New Jersey, were the narcotics not interdicted by law enforcement.
In addition to the prison term, Judge Wigenton sentenced Soberanis to two years of supervised release.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s sentencing.
The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime /Gangs Unit in Newark.
Hawaii physician charged with unlawful distribution of hydrocodoneRead the Press Release
HONOLULU – Paul A. Kaiwi, Jr., 51, a medical doctor and resident of Wailuku, Hawaii, was charged by a criminal complaint unsealed today with six counts of unlawful distribution of the controlled substance hydrocodone.
As described in the affidavit in support of the criminal complaint, in December 2018, an undercover agent of the Drug Enforcement Administration (“DEA”) sought an appointment with Kaiwi by posing as a new patient seeking prescriptions for opioid medications. Between December 2018 and May 2019, the undercover agent saw Kaiwi over the course of six patient visits at Kaiwi’s medical practice, Progressive Medical, located in Kahului, Hawaii on Maui. Kaiwi also operates a Progressive Medical office in Hilo, Hawaii.
During the patient visits with the undercover agent, Kaiwi conducted little or no medical history or physical examination, and often provided a prescription within minutes of entering the examination room. In each of the six visits, Kaiwi provided the undercover agent a prescription for between 84 and 90 pills of hydrocodone. Hydrocodone is a moderately potent, orally available opioid that, in combination with acetaminophen, is widely used for treatment of acute or chronic pain
Medical experts conducted a review of the undercover agent’s patient medical records created by Kaiwi and maintained by Progressive Medical. That review showed not only that the information in the medical records was inadequate to justify the hydrocodone prescriptions, but also that the medical records contained false and fabricated information regarding the patient visits. For example, while medical records indicate that Kaiwi performed a musculoskeletal examination during six of the undercover agent’s patient visits, video footage reveals no examination at all during four of the visits and only a partial examination during two visits.
Law enforcement analysis of Kaiwi’s prescription data from approximately 2015 through 2020 revealed that 88% of his patients who received prescriptions for controlled substances obtained an opioid prescription, and that Kaiwi frequently prescribed opioids in conjunction with other medications, such as benzodiazepines and muscle relaxers, all of which are controlled substances often sought by illicit drug users and such combinations increase a patient’s risk of overdose. DEA analysis of State of Hawaii prescription data for prescriptions written by Kaiwi reveal that 277 of his patients received prescriptions with an aggregate MME (morphine milligram equivalents) of twice the upper limit recommended by the Centers for Disease Control (CDC). DEA analysis also revealed that 66 of those patients received prescriptions with aggregate MME per day of five times the upper limit recommended by the CDC.
“Today’s charges reflect our ongoing commitment to hold doctors who unlawfully prescribe controlled substances accountable for their misconduct,” said U.S. Attorney Kenji M. Price. “As many Americans struggle to free themselves from the bondage of opioid addiction, the federal law enforcement community will do its part to hold those who unlawfully feed the addiction accountable for their criminal conduct.”
The charges include six counts of unlawful distribution of a schedule II controlled substance, for which each count carries a maximum statutory penalty of 20 years and a fine of not more than $1,000,000.
A criminal complaint is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Drug Enforcement Administration and the Department of Health and Human Services – Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorneys Michael F. Albanese and Mohammad Khatib.
Great Falls man admits stealing firearms in burglary of businessRead the Press Release
GREAT FALLS–A Great Falls man today admitted to stealing firearms during a burglary of an outfitting store, U.S. Attorney Kurt Alme said.
Carlyle Ray Wells, 25, pleaded guilty to theft of a firearm from a federal firearms licensee. Wells faces a maximum 10 years in prison, a $250,000 fine, and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Sentencing was set for Feb. 4, 2021. Wells was detained.
In court documents filed in the case, the prosecution said evidence would show that on Nov. 30, 2019, Great Falls Police officers responded to a burglary alarm at North 40 Outfitters. Officers saw that a gun display case had been smashed and that several guns appeared to be missing. One rifle was on the floor, some distance from the display case.
Security footage at the business showed a small pickup truck had parked outside, just prior to the alarm. One individual exited the truck wearing gloves and a face covering, forcefully entered the store, broke the gun case, took several firearms and fled after dropping one rifle on the way out.
Officers identified the vehicle as a stolen Ford Ranger and located it on Dec. 2, 2019, about 600 feet from Wells' residence. Security footage showed an individual, whose clothing and physical description aligned with the North 40 burglar, walk toward Wells' residence carrying a large bag.
Law enforcement executed a search warrant at Wells' residence and recovered 16 firearms, 15 of which were stolen from North 40. Officers also recovered North 40 price tags for the stolen firearms. Home surveillance video obtained through a search warrant showed that Wells entered the residence shortly after the burglary carrying a large bag with a rifle and price tag sticking out.
In addition, an individual reported to Great Falls Police detectives that she had purchased three firearms from Wells soon after the break-in. Officers recovered the three firearms, which were identified as having been stolen during the burglary.
An audit showed that 27 firearms were stolen from North 40 in the burglary, not including the rifle that was dropped in the store.
Assistant U.S. Attorney Ethan Plaut is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Great Falls Police Department and the Russell Country Drug Task Force.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Grand jury indicts St. Louis man accused of firing machine gun at officers for possessing unregistered destructive devices, a machine gun and a homemade cannonRead the Press Release
ST. LOUIS, MO – On October 7, 2020, a federal grand jury indicted Marc Harold Taylor, II, alleging that Taylor knowingly possessed destructive devices, a cannon and a machine gun, that were not registered to him in the National Firearms and Transfer Record. Taylor is also charged with one count of possession of a machine gun. The 28 year old is a resident of St. Louis.
According to court documents, on September 10, 2020, officers from the St. Louis Metropolitan Police Department answered a shots fired call in the 4700 block of Kossuth. Upon arrival, Taylor started firing at the officers with a fully automatic machine gun, but the officers were not injured. Officers returned fire and were able to apprehend Taylor. The machine gun was recovered at the Taylor’s feet. Officers searched Taylor’s residence and recovered a homemade cannon device along with black powder and hobby fuses. The machine gun and homemade cannon are depicted below:
The counts of possessing a destructive device carry a penalty of up to 10 years of imprisonment and a fine of $10,000; and the count of possessing a machine gun carries a penalty of up to 10 years of imprisonment and a fine of $250,000.
The St. Louis Metropolitan Police Department investigated this case with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosvies. Assistant U.S. Attorney John Davis is handling the case.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
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Georgia Man Sentenced for Using Fake Facebook Account to Make Threats against Schools in East Alabama and West GeorgiaRead the Press Release
Montgomery, Alabama – On Tuesday, October 6, 2020, Levi Calhoun, III, a 29-year-old man from Georgetown, Georgia, received a sentence of 18 months in prison for making threats against schools and conveying false information, announced United States Attorney Louis V. Franklin, Sr. Calhoun was also ordered to serve two years of supervised release after he completes his prison sentence.
Calhoun had previously pleaded guilty to the charges and admitted that, on November 7, 2018, he created a fake Facebook account to spread several threats that someone would use explosive devices and firearms to attack one or more Eufaula, Alabama and Quitman County, Georgia schools. In pronouncing the sentence, the judge pointed out the disruption and anxiety Calhoun’s actions caused the affected communities, including students, parents, and school administrators. It was also noted that Calhoun utilized images from another Facebook user to create the fake account in an effort to conceal his identity, causing law enforcement to initially seek out and question that individual. Fortunately, agents quickly traced the fake account back to Calhoun and exposed his scheme.
The Federal Bureau of Investigation (FBI), the Eufaula Police Department, the Georgia Bureau of Investigation, the Georgetown Police Department, and the Enterprise Police Department investigated this case, with assistance from the Alabama Law Enforcement Agency (ALEA) and the Alabama Fusion Center. Assistant United States Attorney Eric M. Counts prosecuted the case.
Gainesville Man Sentenced to 15 Years in Federal Prison for Production of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – Howard Baxter Osgood, 78, of Gainesville, was sentenced on Wednesday, September 30, to 15 years in federal prison after pleading guilty to one count of production of child pornography. As a part of his sentence, Osgood was fined $35,000 and was ordered to pay $25,000 in restitution to the victim. In addition, after serving his term of imprisonment, Osgood will begin a lifetime term of supervised release. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“This sentence sends a strong message to those who exploit children and cause severe and lasting trauma for their victims,” said U.S. Attorney Keefe. “With the dedicated help of our law enforcement partners, we will bring every investigative and prosecutorial resource to bear in order to protect our children from sexual predators like Osgood.”
The undisputed facts demonstrated that Osgood had a continuing relationship with a 14 year old girl beginning in June 2011, and created sexually explicit images of her, including an image when she was 17. Osgood was a prominent jeweler in the Gainesville area.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Frank Williams.
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 United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - Osgood