Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
6 October 2020
Brunswick County Man Sentenced to 10 Years for Gun and Drug OffensesRead the Press Release
GREENVILLE, N.C. – A Shallotte man was sentenced today to 120 months in prison for dealing crack and using firearms to facilitate his drug dealing.
According to court documents, Antwan Damitri King, 41, was charged with six counts including conspiracy to distribute more than 28 grams of cocaine base (crack), three counts of distribution of cocaine base (crack), one count of possession with intent to distribute cocaine base (crack), and one count of possession of firearms in furtherance of a drug trafficking crime. King pled guilty to the conspiracy, possession with intent to distribute, and firearms count on March 16, 2020.
On November 16, 2018, following several prior controlled purchases from King, the Brunswick County Sheriff’s Office executed a search warrant for King’s residence and recovered crack, marijuana, digital scales, ammunition, and 17 firearms, including an AR-style handgun and rifle, both loaded with high-capacity magazines.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge Malcolm J. Howard. The North Carolina 13th Judicial District Attorney’s Office, Brunswick County Sheriff’s Office and the Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-109-H.
###
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.
Billings methamphetamine trafficker sentenced to 10 years in prisonRead the Press Release
BILLINGS — A Billings man who admitted trafficking methamphetamine after law enforcement officers found the drug and more than $12,000 during a search at his home was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
John Jay Dudik, IV, 67, pleaded guilty in January to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided. Dudik was allowed to report to prison.
The prosecution said in court records filed in the case that Drug Enforcement Administration agents in March 2019 met with an individual who provided information that a male named Jay was providing large quantities of meth to another person and had pounds of the drug at his residence. The investigation led to a search warrant being executed on March 7, 2019 on Dudik's residence. Dudik was at home and detained during the search. Agents seized meth, which totaled about 144 grams of pure meth, $12,389 in currency from Dudik's safe, $950 from Dudik's person and other drugs and drug paraphernalia.
Dudik told agents he used a lot of meth and usually had an ounce at his house. He said thought he had about one and a half ounces of meth at the time of the search warrant execution. He claimed all of the meth he had was for personal and social use.
Assistant U.S. Attorney Julie Patten prosecuted the case, which was investigated by the DEA.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Acting U.S. Attorney Announces Appointment of Assistant U.S. Attorney Andrew E. Krause to Serve as Magistrate Judge in White PlainsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, today announced that Assistant U.S. Attorney Andrew E. Krause has been appointed to serve as a United States Magistrate Judge. He will sit in White Plains.
AUSA Krause has served in the Office’s Civil Division for eight years, and serves as the Division’s Senior Litigation Counsel and Professional Responsibility Officer. In those capacities, he has led the Division’s training efforts and supervision of civil trials, served as a resource for Civil Division AUSAs, and has litigated an extensive docket of complex affirmative and defensive matters. Before joining the Office, AUSA Krause had six years of private-sector legal experience, and served as law clerk to former Southern District Judge Stephen C. Robinson in White Plains. He is a graduate of Harvard Law School and Yale University.
AUSA Krause has represented the United States and its agencies and employees in varied cases, often among the Office’s most sensitive and difficult matters. Among these, he has defended lawsuits challenging the actions of regulatory agencies; brought affirmative environmental enforcement lawsuits on behalf of the United States; pursued False Claims Act recoveries arising from fraud against the government; and handled numerous sensitive matters, including constitutional and tort claims against the federal government and its employees.
Acting U.S. Attorney Audrey Strauss said: “I am extremely pleased and excited that Andrew Krause has been selected to serve as a Magistrate Judge in this District. Andrew has been an outstanding AUSA throughout his time in the Office, both in handling his own cases with integrity and skill, and in providing invaluable assistance and counsel to colleagues. I am confident that with his intellect, integrity, and profound sense of fairness, Andrew will be a terrific Magistrate Judge.”
5 October 2020
Worcester Man Sentenced for Wildlife SmugglingRead the Press Release
BOSTON – A Worcester man was sentenced today in connection with unlawfully importing and exporting salamander and turtle species.
Nathan Boss, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to time served and two years of supervised release with the first five months to be served in home confinement. Judge Hillman also imposed the special conditions that Boss not possess any wildlife and that he successfully participate in and complete a community service project. In June 2020, Boss pleaded guilty to two counts of smuggling wildlife into the United States, two counts of smuggling wildlife out of the United States and one count of making a false statement to a federal agent.
The investigation began in 2017 when Boss lied to federal investigators about the identity of a recipient of wildlife illegally imported into the United States. Subsequently, federal investigators intercepted an inbound U.S. Postal Service package from Hong Kong that was addressed to “Shelton Boss” at an address on Mildred Avenue in Worcester. The package was found to contain four black-breasted leaf turtles (Geoemyda spengleri), a species included in the Convention for Trade in Endangered Species and Wild Fauna, an international agreement joined by the U.S. that governs the importation of designated wildlife. Specifically, any black-breasted leaf turtle imported into the United States must be declared and approved by Fish and Wildlife Service before any shipment can be received.
Boss was also found to have illegally imported an injurious species of salamander which can carry a fungal disease and is prohibited from importation into the United States. Further investigation revealed that, on multiple occasions, Boss illegally exported undeclared wildlife destined for locations in Hong Kong and Sweden.
United States Attorney Andrew E. Lelling and Ryan Noel, Special Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement made the announcement. Assistance with the investigation was provided by the U.S. Postal Inspection Service, U.S. Customs and Border Protection, Massachusetts Environmental Police and the Massachusetts Division of Fisheries and Wildlife. Assistant U.S. Attorney Nadine Pellegrini of Lelling’s Criminal Division prosecuted the case.
Waterloo Home Invasion Results in Decade Long Prison SentenceRead the Press Release
A man who led a group invading a Waterloo home was sentenced today to ten years in federal prison.
James Welton, age 41, from Independence, Iowa, received the prison term after a March 19, 2020 guilty plea to one count of being a felon in possession of a firearm. Evidence at the sentencing hearing showed that Welton led a group of individuals into a Waterloo home on the evening of October 21, 2019. The group was armed with two stolen firearms. Once they got into the residence, they attempted to kidnap one of the residents, assaulted one person, and discharged both guns.
Welton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Welton was sentenced to 120 months’ imprisonment and fined $50,000. He was also ordered to prepay the Court $8500 for the cost of his court appointed attorney. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Welton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2006.
Follow us on Twitter @USAO_NDIA.
Veterans Affairs respiratory therapist pleads guilty to stealing and selling COVID-19 respiratory suppliesRead the Press Release
Seattle - A respiratory therapist at the Veterans Affairs Medical Center in Seattle pleaded guilty today in U.S. District Court in Seattle to theft of government property, announced U.S. Attorney Brian T. Moran. GENE WAMSLEY, 41, of Bonney Lake, Washington, admits stealing a ventilator and other respiratory medical equipment in the midst of the COVID-19 pandemic and selling it for his own gain. WAMSLEY faces up to ten years in prison when sentenced by U.S. District Judge James L. Robart on January 11, 2021.
According to records filed in the case, the investigation began in January 2020 when VAMC reported two bronchoscopes, used for examining a patient’s airway, went missing from the hospital. A third bronchoscope was reported missing in April 2020. In all, WAMSLEY admits stealing and selling three bronchoscopes worth over $100,000 for just $15,750. WAMSLEY sold the scopes to a Florida resident via eBay. When WAMSLEY’s home was searched in June, law enforcement seized a fourth bronchoscope and a $6,000 sleep apnea device called a WatchPat that had been stolen from the VA Medical Center.
Further investigation revealed that in April 2020, WAMSLEY also stole a $9,950 respirator and sold it via eBay to an Ohio man for just $6,000.
The total loss to the United States from the thefts is $132,291.
The case is being investigated by the Veterans Affairs Office of Inspector General (VA-OIG). The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
Vermillion Woman Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Vermillion, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 29, 2020, by U.S. District Judge Lawrence L. Piersol.
Pat Aske Win Jones, age 32, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones was indicted for Conspiracy to Distribute a Controlled Substance (methamphetamine) by a federal grand jury on March 3, 2020. She pled guilty on June 24, 2020.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately March 2020.
On May 29, 2019, a vehicle Jones was driving in, for the purposes of transporting methamphetamine, was stopped and searched by law enforcement. Inside the vehicle, law enforcement located over 4,000 grams of methamphetamine.
This case was investigated by the Drug Enforcement Agency, South Dakota Division of Criminal Investigation, Sioux Falls Area Drug Task Force, and the Iowa State Patrol. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
United States Attorney John F. Bash Announces ResignationRead the Press Release
SAN ANTONIO, Tex. – U.S. Attorney John F. Bash announced today that he will resign from the Department of Justice on Friday, October 9, 2020, at 11:59pm. U.S. Attorney Bash issued the following statement:
This Friday—eight years to the day after I first joined the Department of Justice—I will step down as United States Attorney for the Western District of Texas. Last month I accepted an offer for a position in the private sector and informed the Attorney General of my decision. I tendered formal letters of resignation to both the President and the Attorney General this morning.
I am grateful to the President, Senator John Cornyn, Senator Ted Cruz, and the other members of the United States Senate for the opportunity to serve the people of Texas. I am also grateful to former Counsel to the President Donald F. McGahn II, who gave me steadfast support throughout the nomination and confirmation process, and to former Solicitor General Donald B. Verrilli, Jr., for first bringing me into the Department in 2012. And I am honored that during my tenure as U.S. Attorney, the Attorney General has seen fit to entrust me with significant responsibilities and to appoint me to his Advisory Committee.
I am also deeply indebted to the over 300 attorneys and staff members who work in our office, including the 73 Assistant United States Attorneys hired during my tenure. Through their tireless efforts, we have held accountable child abusers, drug-cartel leaders, gang members, bank robbers, embezzlers, fraudsters, scammers, and corrupt public officials. The exceptional public servants of our office have continued to perform at a high level during the national health crisis.
I owe special gratitude to my executive team—First Assistant U.S. Attorney Ashley Hoff, Executive Assistant U.S. Attorney Kristy Callahan, Counselor Mickey Tapken, Criminal Division Chief Christina Playton, Civil Division Chief Mary Kruger, Administrative Division Chief Gretchen Randall, and Legal Support Division Chief Lora Makowski. They are all women of extraordinary integrity, intelligence, and candor. I am proud to have served alongside them.
Most importantly, I would not have succeeded in this demanding role without the love and support of my wife, Zina, my daughter and son, my parents, my wife’s parents and siblings, and of course the Lord.
The Attorney General has elected to appoint Gregg Sofer to succeed me as U.S. Attorney. Gregg is an inspired choice. He is a veteran Department of Justice attorney, serving first in the National Security Division at Main Justice and then for over a decade as a national-security specialist in our Austin office. In the latter role, he built a reputation as a dogged and tremendously effective prosecutor. In 2018, I selected Gregg to serve as our office’s Criminal Division Chief, where he designed and implemented significant improvements to our operations, oversaw thousands of prosecutions, and provided me with invaluable advice on a range of important issues and cases. Since early this year, he has served in Washington, D.C., as Counselor to the Attorney General. He will make an excellent U.S. Attorney.
Like any job, serving as U.S. Attorney has had its high points and its low points. No day was worse than August 3, 2019, when we lost so many of our fellow Americans and our Mexican brothers and sisters to an almost inconceivable act of hatred. But there was nothing more soul-stirring than the way El Pasoans came together in the wake of that nightmare in a spirit of love and perseverance.
I hope that I have discharged my authority wisely and have improved the safety and security of my fellow Texans. I leave the Department with a profound respect for its people, its traditions, and its importance to our constitutional democracy.
Bash, 39, was appointed by President Trump to the position of United States Attorney in December 2017. He previously served in the Department of Justice as an Assistant to the Solicitor General from 2012 to 2017, and he served as Associate Counsel to the President in 2017.
Attorney General William Barr offered the following statement:
I offer my gratitude to John Bash for his service as United States Attorney for the Western District of Texas. Since 2017, John has successfully led one of the largest U.S. Attorney’s Offices in the country. John has made significant contributions to the Department of Justice, including his service on the Attorney General’s Advisory Committee. I appreciate his service to our nation and to the Justice Department, and I wish him the very best.
#####
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.
U.S. Attorney Michael Bailey Announces Intent to Seek Death Penalty Against Ryan SchlesingerRead the Press Release
TUCSON, Ariz. – Last week, the United States Attorney’s Office for the District of Arizona filed an amended Notice of Intent to seek the death penalty against Ryan Phillip Schlesinger.
On November 29, 2018, deputies with the United States Marshals Wanted Task Force attempted to serve a felony arrest warrant on Schlesinger for allegedly stalking a Tucson police officer. As agents were trying to serve the warrant on Schlesinger at his Tucson residence, he began shooting at the officers, striking and killing a Deputy United States Marshal. After a standoff with law enforcement that lasted about an hour, Schlesinger was taken into custody.
In December 2018, Schlesinger was indicted on 13 counts, including First Degree Murder of a Federal Officer and Using a Firearm During and in Relation to a Crime of Violence Resulting in Death, both of which carry a possible sentence of death. On September 30, 2020, the United States Attorney’s Office filed a superseding indictment against Schlesinger. Schlesinger is set to be arraigned on the superseding indictment on October 22 before Magistrate Judge D. Thomas Ferraro.
The Federal Bureau of Investigation is investigating this matter. Assistant United States Attorneys Erica Seger and Sarah Houston, District of Arizona, Tucson, are handling the prosecution.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
NOI to Seek Death Penalty for Schlesinger
CASE NUMBER: CR-18-02719-TUC-RCC (BGM)
RELEASE NUMBER: 2020-080_Schlesinger NOI# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two Jersey City Gang Members Charged with Murdering Pregnant Woman and Two OthersRead the Press Release
NEWARK, N.J. – Two members of the Neighborhood Bloods street gang, which operated in Jersey City, New Jersey, have been indicted for the Jan. 16, 2017, murder of three Jersey City residents, including a pregnant 25-year-old woman, Attorney Craig Carpenito announced today.
Markell Brown, a/k/a “Sayboy,” 32, and Terence Shaw, a/k/a “Sweet Meat,” 32, both of Jersey City, are each charged with conspiracy to commit murder in aid of racketeering, three counts of murder in aid of racketeering, three counts of discharging a firearm in furtherance of a crime of violence, and three counts of causing death through use of a firearm.
According to documents filed in this case and statements made in court:
On Jan. 16, 2017, Brown and Shaw allegedly murdered a rival gang member with whom they had been feuding, as well as the gang member’s pregnant girlfriend and their own associate, who had accompanied them to commit the murders. Brown and Shaw used a stolen U-Haul truck and two-way walkie-talkie radios during the murders. They used their associate to obtain access to the rival gang member’s apartment. After entering that residence on Fulton Avenue in Jersey City shortly after 10:00 p.m., Brown and Shaw executed the rival gang member, shooting him in the back of the head, the left arm, and the right shoulder. They also shot the woman in the back of the head and the chest. As Brown and Shaw left, they shot their associate in the chest in order to eliminate the possibility that he would provide information to law enforcement.
Brown and Shaw each face a potential mandatory life sentences for each of the counts charging murder in aid of racketeering. For each count of discharging a firearm during a crime of violence, they face a potential mandatory consecutive sentences of 10 years in prison. The count of conspiracy to commit murder in aid of racketeering carries a maximum sentence of 10 years in prison. The counts of causing death through use of a firearm each carry a maximum sentence of life in prison.
U.S. Attorney Craig Carpenito credited the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, as well as special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer, Acting Chief of the U.S. Attorney’s Violent Crime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tulsa Man Pleads Guilty to Bank RobberiesRead the Press Release
A man who robbed two Tulsa banks, claiming to have a bomb and firearms, pleaded guilty Monday in federal court, announced U.S. Attorney Trent Shores.
Thomas Lawrence Dean, 51, of Tulsa, pleaded guilty to two counts of bank robbery using a dangerous weapon, conveying false information on hoaxes, and being a felon in possession of a .38 Special revolver and associated ammunition. According to the plea agreement, the United States and the defendant agreed to a sentence of 12 years in federal prison. Chief U.S. District Judge John E. Dowdell will make the final sentencing determination at a hearing set for Jan. 5, 2021.
“Think about being the bank teller who was handed a note by a robber threatening to have a bomb or to go on a killing spree. What a terrifying experience. Thankfully, the FBI and Tulsa Police teamed up to investigate the bank robbery and arrested Thomas Dean,” said U.S. Attorney Trent Shores. “I am pleased to see Mr. Dean admit his guilt and accept responsibility for his actions, and I am thankful for the work of Assistant U.S. Attorney Robert Raley who pursued justice for the victims in this case.”
In his plea agreement, Dean admitted to robbing an International Bank of Commerce (IBC) on July 1, 2019. Dean stated that he disguised himself and carried a black bag containing an apparatus that looked like an explosive device. According to court documents, Dean approached a teller and handed her a note demanding money. In the note, Dean indicated that he was in possession of a bomb and firearm. He left the bank with a total of $500 then discarded the black bag with the fake explosive device and two BB guns inside.
On July 10, 2019, Dean also robbed an Arvest Bank, handing the teller a note that stated, “This is a robbery….Don’t make this a killing spree.” Dean also indicated in the note that he had a firearm. The defendant left the bank with $1,250 but was later located by Tulsa Police Officers.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Tucson Woman Sentenced to 12 Years for Causing Fatal Fentanyl OverdoseRead the Press Release
TUCSON, Ariz. – Today, Jocelyn Lopez-Sanchez, 23, of Tucson, Arizona, was sentenced by U.S. District Court Judge Frank R. Zapata to two concurrent sentences of 12 years in prison, followed by three years of supervised release. Lopez-Sanchez previously pleaded guilty to distribution of fentanyl resulting in death and importation of fentanyl resulting in death.
On November 1, 2018, Lopez-Sanchez provided several blue “M-30” pills to individuals at a party in Tucson, one of whom died. Evidence showed that Lopez-Sanchez brought the pills into the United States from Mexico the day before the party in Tucson.
The Tucson Police Department and the Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Stefani Hepford, District of Arizona, Tucson, handled the prosecution.
Lopez-Sanchez Plea AgreementCASE NUMBER: 19-CR-01166-FRZ-LAB
RELEASE NUMBER: 2020-081_Lopez-Sanchez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Trucking School Owner Sentenced to 4 Years in Federal Prison for Fraudulently Obtaining $4.1 Million in Veterans’ Education BenefitsRead the Press Release
LOS ANGELES – The owner of a San Fernando Valley trucking school was sentenced today to 48 months for leading a sophisticated scheme to defraud the United States Department of Veterans Affairs out of more than $4 million in education benefits involving over 100 veterans who did not attend classes.
Emmit Marshall, 53, of Woodland Hills, was sentenced by United States District Judge Stephen V. Wilson, who also ordered him to pay $4.1 million in restitution. Marshall pleaded guilty in July 2019 to five counts of wire fraud.
At the hearing, Judge Wilson stated that this “was a very serious fraud on the government,” which involved “calculated, criminal acts that cannot be condoned.”
Marshall is the owner and president of the Chatsworth-based Alliance School of Trucking (AST). Marshall and a co-defendant, AST Vice President Robert Waggoner, 57, of Canyon Country, recruited eligible veterans to take trucking classes paid under the Post-9/11 GI Bill. AST was certified to offer classes under the Post-9/11 GI Bill, including a 160-hour Tractor Trailer & Safety class and a 600-hour Select Driver Development Program.
Under the Post-9/11 GI Bill, the VA paid tuition and fees directly to the school at which veterans were enrolled. The VA also paid a housing allowance to veterans enrolled full-time in an approved program, and, in some cases, the VA paid for books and supplies for veterans’ benefit.
From July 2011 to April 2015, Marshall and Waggoner convinced more than 100 veterans to participate by telling them they were entitled to VA education benefits, even if they did not attend classes. Despite not taking classes, the veterans who agreed to join the scheme accepted education benefits for housing while AST collected the benefits for tuition, resulting in a total loss to the VA of at least $4.1 million.
In addition, Marshall resorted to occasionally using veterans’ personal information to sign them up for benefits, forging signatures, sometimes without the veterans’ permission. Finally, in an attempt to obfuscate the overall scheme and the forgeries of student enrollment paperwork, Marshall directed the veteran-students to lie to VA investigators and ordered the destruction of AST paperwork by co-schemers.
“[Marshall] profited most from this conduct, pocketing nearly $1 million himself, which he used for jewelry, a cruise, a trip to Hawaii, property taxes on his Woodland Hills residence, purchase of a Ford F-150 and purchase of semi-tractor trailers for a new business,” prosecutors wrote in their sentencing memorandum.
Waggoner pleaded guilty on February 24 to five counts of wire fraud. His sentencing hearing is scheduled for March 15, 2021, at which time he will face a statutory maximum sentence of 100 years in federal prison.
This matter was investigated by the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Department of Justice Office of the Inspector General, and the FBI.
This case was prosecuted by Assistant United States Attorney Kimberly D. Jaimez of the Major Frauds Section.
Sunnyvale Man Pleads Guilty to Tax CrimesRead the Press Release
SACRAMENTO, Calif. — Cory Beck, 39, of Sunnyvale, pleaded guilty today to three counts of filing false tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, Beck worked in the information technology department of an electric vehicle and clean energy company based in Palo Alto. In his position, Beck had access to the company’s inventory of Apple MacBooks. From October 2015 through March 2018, Beck stole MacBooks from the company and sold them for cash. In total, Beck made over $220,000 from selling the stolen laptops. He failed to report any of the cash he received from the sales on his tax returns for 2015, 2016, and 2017, which were processed in Fresno.
This case is a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Beck on Jan. 4. Beck faces a maximum statutory penalty of three years in prison and a $100,000 fine on each of the three counts to which he pleaded guilty. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
St. Louis Man Pleads Guilty to Conspiracy to Distribute Fentanyl and Drug-Related MurderRead the Press Release
ST. LOUIS, MO – Armond Calvin, of St. Louis City, pleaded guilty today to one count of conspiracy to distribute fentanyl and one count of using a firearm to commit murder in furtherance of a drug trafficking crime. Calvin, 22, appeared before United States District Judge Catherine D. Perry.
According to the plea agreement, Calvin was a member of a violent drug trafficking organization that distributed fentanyl and other illegal drugs to drug customers in the St. Louis Metropolitan area. Members of the organization maintained various cellular telephones, which drug customers would call to obtain fentanyl. Calvin and other members of the conspiracy shared the phones, taking turns distributing fentanyl to customers who called the phone numbers.
On December 3, 2016, Calvin and other gang members learned a prospective customer had purchased fentanyl from a rival drug dealer, instead of from Calvin’s drug trafficking organization. Calvin and other members of his gang then tracked the rival dealer’s vehicle to the area of the Meramec Market, near the intersection of Oregon Avenue and Meramec Street in the City of St. Louis. At that location, Calvin, armed with a Glock 27, .40 caliber firearm fitted with a laser sight, leaned out of his own vehicle’s window and opened fire on the rival vehicle, striking and killing the backseat occupant, victim David Leslie Bryant, III. As Calvin was shooting, a black knit hat fell off Calvin’s head and onto the street. Later forensic analysis revealed Calvin’s DNA on the hat. The Glock 27, .40 caliber firearm was recovered several months later following the crash of a vehicle in which Calvin was a passenger, and ballistics analysis confirmed it was the murder weapon.
As part of his guilty plea, Calvin agreed to a recommended sentence of twenty years in prison.
This plea is connection with the on-going U.S. Attorney’s Office Project Safe Neighborhoods Initiative and investigation into drug distribution at the Clinton-Peabody public housing complex. The investigation has included the execution of more than 15 federal search warrants resulting in the seizure of numerous firearms and controlled substances and was the subject of an important public forum involving law enforcement, citizens, and residents of the Clinton-Peabody complex held on August 3, 2018, at the Peabody Elementary School.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the St. Louis Metropolitan Police Department, the St. Louis Division of the FBI, the St. Louis Division of the DEA, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, and the St. Charles County Sheriff’s Department, with assistance from the St. Louis Circuit Attorney’s Office. Assistant United States Attorneys Lisa Yemm and Angie Danis are handling the case for the United States Attorney’s Office.
Spearfish Man Charged with Sexual Exploitation of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Spearfish, South Dakota, man was charged in federal district court with Attempted Sexual Exploitation of a Minor.
Bernard Andrew Wagner, Jr., age 57, was charged on September 23, 2020. Wagner appeared before U.S. Magistrate Judge Daneta Wollmann on September 25, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is a mandatory minimum of 15 up to 30 years in federal prison and/or a $250,000 fine, lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Wagner attempting to sexually exploit an undercover law enforcement agent posing as a minor. The charge is merely an accusation and Wagner is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, Department of Homeland Security, Spearfish Police Department, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Wagner was detained pending trial. A trial date has not been set.
Somerset County Man Sentenced for Distributing OxymorphoneRead the Press Release
JOHNSTOWN, Pa. – A Somerset County, Pennsylvania resident has been sentenced in federal court to three years’ probation on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Joseph P. Barefoot, 63, of Berlin, Pa.
According to information presented to the court, from Feb. 1, 2017, to Aug. 14, 2017, Barefoot distributed a quantity of oxymorphone.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the United States Postal Service, Office of Inspector General for the investigation that led to the successful prosecution of Barefoot.
Sioux City Man Sent to Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
A felon and illegal user of controlled substances who unlawfully possessed a firearm was sentenced to more than three years in prison.
Robert Schonrock, age 50, from Sioux City, received the prison term after a March 23, 2020, guilty plea to one count of Possession of a Firearm by a Felon and one count of Possession of a Stolen Firearm.
Information presented by the United States at the detention, change of plea, and sentencing hearings revealed that on or about April 30, 2019, Rodolfo Velasco absconded from supervised release in United States District Court for the District of Nebraska. On or about May 30, 2019, Velasco was found, in possession of drugs and a handgun, at the home of Schonrock, in Sioux City, Iowa. Schonrock, a thrice convicted felon himself, was found in possession of a loaded handgun that had been reported stolen.
Schonrock was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Schonrock was sentenced to 41 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
On May 29, 2020, Velasco was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Velasco was sentenced to 77 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Schonrock is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the United States Marshal’s Service and the Sioux City Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4058.
Follow us on Twitter @USAO_NDIA.
Sex Offender Arrested at LAX Attempting to Leave U.S., Allegedly Failed to Provide Authorities Notice of His International Travel PlansRead the Press Release
LOS ANGELES – A registered sex offender has been charged in a criminal complaint alleging he attempted to travel from Los Angeles to Egypt without giving law enforcement advance notice of his foreign travel plans as required by federal law, the Justice Department announced today.
Jehovany Sanchez, 36, of South Gate, was charged on Friday with one count of committing an international travel reporting violation. Sanchez made his initial court appearance on late Friday afternoon in United States District Court. His bond was set at $50,000 and his arraignment has been scheduled for October 22.
According to an affidavit filed with the complaint, on September 30, without providing to law enforcement any notice of foreign travel, Sanchez allegedly attempted to fly from Los Angeles International Airport to Cairo with a layover in Paris. Sanchez allegedly boarded the Paris-bound flight, which left its gate and prepared for takeoff, but was directed by law enforcement to return to the gate. Law enforcement had been notified that Sanchez was a ticketed passenger and sex offender on the flight who had not notified them of his foreign travel plans, the affidavit states. Sanchez was ordered to exit the airplane and he was arrested at the gate, according to the affidavit.
In 2012, Sanchez was convicted in Ventura County Superior Court of committing a lewd act upon a child. According to his arrest report in that case, Sanchez – then 27 years old – engaged in illicit sexual contact with a 15-year-old girl. He was sentenced to two years in state prison and is required to register as a sex offender for life under the federal Sex Offender Registration and Notification Act (SORNA).
On Sanchez’s signed sex offender registry document dated March 30, he initialed next to a statement that reads, “Federal law requires me to notify my registering agency no less than 21 days before I intend to travel internationally,” according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Sanchez would face a statutory maximum sentence of 10 years in federal prison.
This case was investigated by the United States Marshals Service, United States Customs and Border Protection, the South Gate Police Department, and the Los Angeles Airport Police. The Drug Enforcement Administration provided substantial assistance.
This matter is being prosecuted by Assistant United States Attorney Jeremiah M. Levine of the General Crimes Section.
Seventeen Charged in Poly-Drug Trafficking Conspiracy Spanning Multiple StatesRead the Press Release
Jackson, TN – Seventeen individuals have been charged in federal court with operating a multiple–state drug trafficking organization. D. Michael Dunavant, U.S. Attorney announced the unsealing of the federal criminal complaint today.
U.S. Attorney D. Michael Dunavant said, "Criminal enterprises that distribute harmful drugs into West Tennessee can no longer hide. We are taking the fight to the gangs in order to dismantle their drug trafficking organizations and remove them from our streets. I commend the outstanding investigative efforts by DEA and our state and local law enforcement partners in this important and impactful case."
The following individuals have been arrested and charged with conspiracy to distribute methamphetamine, heroin, fentanyl, cocaine and marijuana into and throughout West Tennessee. In March 2019, a DEA investigation was initiated in the Jackson, Tennessee area. Investigators used wiretaps along with other surveillance, confidential sources, traffic stops, search warrants, and gang intelligence to investigate this drug trafficking organization. Agents seized 106.5 lbs. of methamphetamine (ice), 500 fentanyl pills, and an additional 1.25 lbs. of fentanyl, and 3.5 grams of heroin. Each defendant’s role in the drug trafficking conspiracy is outlined in the criminal complaint:
Methamphetamine Conspiracy:
• Terry Smith, a/k/a "Ali," a/k/a "Cockeye", 33 of Lauderdale County (TDOC Custody)
• Rodney Ayers, a/k/a "P-Rod," 47 of Shelby County
• Horace McNeary, a/k/a "HB," 35 of Henry County
• Brianna Norsworthy, 23 of Calloway County, Kentucky
• -SEALED-
• Dustin Chambers, a/k/a "SNOW," 35 of Madison County
• Anthony Hines, a/k/a "BYRD," 41 of Shelby County
• Kayla Henderson, 28 of Shelby County
• Teddy Reed, a/k/a "PT," 40 of Shelby County
• Jermichael Buggs, 33 of Shelby County
• -SEALED-
• Danielle Cunningham, 35 of Shelby County
• Aerielle Coleman, 31 of Shelby County, and
• James Dumas, a/k/a "DOO DOO," 45 of Shelby County
Fentanyl Conspiracy:
• Terry Smith, a/k/a "ALI," a/k/a "COCKEYE"
• Rodney Ayers, a/k/a "P-ROD,"
• Anthony Hines, a/k/a "BYRD,"
• Kayla Henderson
• Teddy Reed, a/k/a "PT," and
• James Dumas, a/k/a "DOO DOO"
Cocaine Conspiracy:
• Rodney Ayers, a/k/a "P-ROD,"
• Anthony Hines, a/k/a "BYRD,"
• Teddy Reed, a/k/a "PT"
• Jermichael Buggs
• -SEALED-
• Michael Broady, 49 of Shelby County
• -SEALED-
• Tracy Coleman, 49 of Shelby County, and
• James Dumas, a/k/a "DOO DOO"
Heroin Conspiracy:
• Terry Smith, a/k/a "ALI," a/k/a "COCKEYE
• Rodney Ayers, a/k/a "P-ROD,"
• Horace McNeary, a/k/a "HB,"
• Kayla Henderson,
• Teddy Reed, a/k/a "PT,"
• -SEALED-, and
• James Dumas, a/k/a "DOO DOO"
Marijuana Conspiracy:
• Terry Smith, a/k/a "ALI," a/k/a "COCKEYE
• Rodney Ayers, a/k/a "P-ROD,"
• Anthony Hines, a/k/a "BYRD,"
• Kayla Henderson
• Teddy Reed, a/k/a "PT"
• Jermichael Buggs
• Michael Broady and
• James Dumas, a/k/a "DOO DOO"
Further investigation revealed that Terry Smith a/k/a "Ali," a/k/a "Cockeye", Chief of Security for the Vice Lords street gang, arranged large quantities of methamphetamine, marijuana, cocaine, heroin and fentanyl to be shipped into the Western District of Tennessee from Texas and Arizona. He utilized a large distribution network that ranged from Western Kentucky to Northwest Mississippi. Smith was arrested by the U.S. Marshals Service while in TDOC custody at the West Tennessee State Penitentiary, and transferred to federal pre-trial custody.
This case was investigated by the Drug Enforcement Administration (DEA); West Tennessee Drug Task Force; Jackson Police Department; Jackson-Madison County Metro Narcotics Unit; Madison County Sheriff’s Department; Paris, Tennessee Police Department; Henry County Sheriff’s Department; Murray, Kentucky Police Department; Kentucky State Police; Arkansas State Police; Tennessee Department of Correction Office of Investigations & Compliance (TDOC-OIC); and the U.S. Marshals Service (USMS).
The charges and allegations contained in the complaint are merely accusations of criminal conduct, not evidence. Each charged defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law. The case will be presented to a federal grand jury at a later date to consider an indictment against the defendants.
Assistant U.S. Attorney Hillary Lawler Parham is prosecuting this case on behalf of the government.
###
Rutherford County Escapee Sentenced to 19.3 Years in Federal Prison for Violent Crime SpreeRead the Press Release
NASHVILLE, Tenn. – October 5, 2020 – Two Nashville, Tennessee men responsible for a violent crime spree in the mid-state during December 2017 and January 2018, have been sentenced to lengthy federal prison terms, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Dewayne Halfacre, 45, was sentenced Thursday to 232 months in prison for his role in four mid-state robberies. Timothy Howell, 54, was previously sentenced in June to 157 months in prison. Both pleaded guilty in February to conspiracy to commit Hobbs Act robbery and to four counts of robbery affecting commerce, after being indicted by a federal grand jury in 2019.
During a one-month period beginning on December 16, 2017, the pair robbed four convenience stores including the Mapco on Highway 70; the Delta Express on Old Hickory Boulevard on December 21; the Shell gas station on White Bridge Road on January 13, 2018, all in Nashville; and the Almaville Market in Arrington, Tennessee, on January 19, 2018. During each of these robberies, the defendants took cash from the register and other items and threatened the store employees with a box cutter during two robberies and a handgun during the others.
Court documents also indicate that in addition to the robberies above, Halfacre and Howell engaged in other criminal acts during this time period, including robbing an 81 year-old woman in Clarksville, Tennessee on December 16, 2017; attempted to break into the Family Market in Rockvale, Tennessee on January 16, 2018; burglarized Oldham’s Market in Hartsville, Tennessee on January 18, 2018; robbed a Mapco store in Ringgold, Georgia on January 22, 2018; and less than an hour later they attempted to burglarize Andy’s Market in South Pittsburg, Tennessee.
Later on January 22, 2018, deputies with the Marion County Sheriff’s Office located Halfacre and Howell in a vehicle parked at a funeral home. The pair then led law enforcement on a high speed chase before crashing the vehicle and fleeing into the woods. Howell was captured a short time later but Halfacre eluded authorities until the following day when he attempted to break into a house. When a Marion County Sheriff’s deputy responded to the break-in, he encountered Halfacre, who drew a handgun, pointed it at the deputy and threatened to kill him. Halfacre then took the deputy’s patrol car and fled as another deputy shot one of the vehicle’s tires. Another pursuit ensued and the patrol car was found crashed and abandoned a short time later.
Several days later, on January 26, 2018, after a large scale manhunt, Halfacre was tracked to an uninhabited house in Marion County and surrounded by law enforcement. Halfacre then contacted the Tennessee Bureau of Investigation (TBI), agreed to surrender, and was taken into custody.
On October 10, 2018, while being held at the Rutherford County Jail, Halfacre and another inmate assaulted a correctional officer and escaped custody. They stole a nearby vehicle and hid in abandoned houses for approximately 36 hours before being captured.
U.S. Attorney Cochran commended the work of the many law enforcement agencies involved in this case, including the FBI; the TBI; the Rutherford County Sheriff’s Office; the Metropolitan Nashville Police Department; and the Marion County Sheriff’s Office; and Assistant U.S. Attorney Brooke K. Schiferle, who prosecuted the case.
# # # # #
Rochester Man Pleads Guilty to RobberiesRead the Press Release
CONCORD - Thomas Hegarty, 26, of Rochester, pleaded guilty in federal court to attempted bank robbery and robbery charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 9, 2020, at around 4:00 a.m., Hegarty entered a Circle K gas station in Rochester, New Hampshire, showed the teller a hammer, and stole cash from the register. Later that morning, Hegarty entered a bank in Dover, New Hampshire, and passed the teller a note demanding money and indicating that he had a weapon. Tellers locked themselves in an office and called the police. Hegarty jumped over the teller counter and unsuccessfully attempted to open the teller drawers. He then fled the bank without taking any money. Investigators released surveillance photographs from the robberies to the public and identified and apprehended Hegarty later that day. At the time of the robberies, Hegarty was on federal supervised release.
Hegarty is scheduled to be sentenced on January 20, 2021.
“Robberies of banks and other commercial establishments jeopardize the safety of our citizens and will not be tolerated,” said U.S. Attorney Murray. “Federal law provides substantial penalties for those who engage in these crimes and they are a high priority for federal prosecution. We will continue to work closely with the FBI and all of our law enforcement partners to identify and prosecute violent criminals in order to ensure that residents of New Hampshire can have confidence that their communities are safe.”
“Concerned citizens are among the FBI’s most valuable assets when it comes to apprehending potentially dangerous lawbreakers like Thomas Hegarty, whose criminal conduct escalated in the course of a single day from robbing a gas station with a hammer to attempting to rob a bank while threatening to be armed,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We thank those who bravely stepped forward to identify him, and in doing so helped make today’s guilty pleas possible. This collaborative effort to address violent crimes within our communities is just one example of how we can really make a difference when we all work together.”
This matter was investigated by the Federal Bureau of Investigations with assistance from the Rochester Police Department and the Dover Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
###
Ringleader of Gloucester City Drug Ring Admits Trafficking Oxycodone, Adderall, and Xanax and Engaging in SNAP FraudRead the Press Release
CAMDEN, N.J. – A Gloucester City, New Jersey, man today admitted conspiring to distribute and selling oxycodone, Adderall, and Xanax and defrauding the federal Supplemental Nutrition Assistance Program (SNAP) in connection with his role in a drug trafficking ring, U.S. Attorney Craig Carpenito announced.
Rocco DePoder, 67, of Gloucester City, pleaded guilty today by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone, distributing a quantity of oxycodone, and unlawfully acquiring SNAP benefits in exchange for controlled substances and unlawfully using and possessing those and other SNAP benefits.
According to documents filed in this case and statements made in court:
DePoder admitted that on multiple occasions from June 2019 to March 2020, he worked with Erick Bell and others to sell oxycodone in New Jersey. DePoder obtained 60 80 mg. oxycodone pills for $25 per pill from Bell on February 3, 2020, with the intention of distributing the pills to other people. DePoder also admitted to purchasing resale quantities of oxycodone, Adderall, and Xanax from conspirators and reselling the pills to others, serving as a leader of criminal activity in that conspiracy. DePoder admitted to selling oxycodone, Adderall, and Xanax pills to another person in exchange for a total of $8,374 in SNAP benefits, which were on Electronic Benefit Transfer (EBT) cards, and then personally using some of those SNAP benefits and selling and giving EBT cards to others so they could unlawfully use the SNAP benefits. SNAP, formerly known as the Food Stamp program, is administered by the U.S. Department of Agriculture. EBT cards are similar to debit cards and are used to make food purchases with SNAP benefits – when an EBT card is swiped at a food store authorized for participation in the SNAP program, the amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
The drug conspiracy count carries a maximum potential punishment of 20 years in prison; the count of drug distribution carries a maximum potential penalty of five years in prison; both counts are also punishable by a fine of $1 million, or twice the gross loss or gain caused by the offenses. The count of SNAP benefits fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine. As part of his guilty plea, DePoder will forfeit multiple items, including $6,598 in currency, and pay $8,374.42 in restitution. Sentencing is scheduled for Feb. 8, 2021.
Five other defendants – Marcus Rushworth, 47, of Gloucester City, New Jersey; Kenneth Rushworth, 59, of Gloucester City, New Jersey; Wayne Muse, 74, of Lindenwold, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey; and Steven Walker, 47, of Camden, New Jersey, previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are awaiting sentencing.
U.S. Attorney Carpenito credited special agents of FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea.
He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the U.S. Attorney’s Office’s Camden Office and Sara F. Merin of the Special Prosecution Division in Newark.
Rapid City Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on September 29, 2020, by U.S. District Judge Lawrence L. Piersol.
Jacob Gavin Robert McCloskey, age 22, was sentenced to 15 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
McCloskey was indicted by a federal grand jury on March 3, 2020. He pled guilty on June 25, 2020.
The conviction stemmed from an incident on or about October 22, 2019, when McCloskey knowingly possessed a SCCY Industries, model CPX-2, 9x19mm Luger caliber, semi-automatic pistol bearing serial number 657216.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
McCloskey was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Jesse Warbonnett, age 23, was charged on September 17, 2020. Warbonnett appeared before U.S. Magistrate Judge Daneta Wollmann on September 25, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Warbonnett, previously convicted of a felony and prohibited from possessing firearms, possessing a CZ, 7.62x25 caliber, semi-automatic pistol in September 2020 in Rapid City. The charge is merely an accusation and Warbonnett is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Warbonnett was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Jerel Gay, age 26, was charged on September 17, 2020. Gay appeared before U.S. Magistrate Judge Daneta Wollmann on September 25, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Gay, previously convicted of a felony and prohibited from possessing firearms, possessing a Smith & Wesson 9mm semi-automatic pistol in August 2020 in Rapid City. The charge is merely an accusation and Gay is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Gay was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Isaiah Cross White, age 36, was charged on September 17, 2020. Cross White appeared before U.S. Magistrate Judge Daneta Wollmann on September 25, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Cross White, previously convicted of a felony and prohibited from possessing firearms, possessing a Smith & Wesson double-action revolver in June 2020 in Rapid City. The charge is merely an accusation and Cross White is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Cross White was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Marvin Brings Plenty, age 30, was charged on September 17, 2020. Brings Plenty appeared before U.S. Magistrate Judge Daneta Wollmann on September 23, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Brings Plenty, previously convicted of a felony and prohibited from possessing firearms, possessing a Hi-Point 9mm semi-automatic pistol in May 2020 in Rapid City. The charge is merely an accusation and Brings Plenty is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Brings Plenty was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for two counts of Sexual Abuse.
Brandon Lindemann, a/k/a Brandon Lindeman, age 35, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is any term of imprisonment up to life in a federal prison, and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Lindemann sexually abusing a juvenile female at a time when she was incapable of consent, near Porcupine, in February 2020.
The charges are merely accusations and Lindemann is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Lindemann was released on bond pending trail. A trial date has been set for December 8, 2020.
Portland Resident Accused of Throwing Rocks at Federal Officers Protecting Federal PropertyRead the Press Release
PORTLAND, Ore. – Christian Burke, 23, of Portland, Oregon, made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman.
The court arraigned Burke on a 1-count information alleging misdemeanor assault on a federal officer. On the afternoon of August 22, 2020 Department of Homeland Security, Federal Protective Services (FPS) Officers were assigned to protect federal property located at the Edith Green – Wendell Wyatt (EGWW) Federal Office Building during protests and demonstrations taking place downtown.
On that date, a protest group was marching south down 3rd avenue in front of the EGWW entrance. There also was a counter-protest group engaging the protest group. During this engagement, multiple objects were being thrown by individuals in the counter-protest group in the direction of the other protest group and federal law enforcement officers. One of the FPS agents was observing the protest and counter protest activity from federal property when the agent saw a large rock thrown directly towards him coming from the crowd. The rock struck a tree near the agent. Another officer described a person later identified as Burke as the one who threw the rock. That observation was confirmed with video evidence.
Burke was released pending trial scheduled for December 8, 2020 before U.S. District Court Judge Michael W. Mosman.
This case was investigated by Federal Protective Services and is being prosecuted by Assistant United States Attorney Parakram Singh. An information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pine Ridge Man Sentenced for Embezzlement from Oglala Lakota CollegeRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Embezzlement from an Indian Tribal Organization was sentenced by Judge Jeffrey L. Viken, U.S. District Court.
John Jay Hussman III, age 33, was sentenced on September 24, 2020, to time served, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $3,086.52 in restitution to Pizza Hut.
Hussman was indicted by a federal grand jury in March 2019. The charge related to Hussman coming into possession of a check written on the account of Oglala Lakota College to OST Financial Services in the amount of $2,004.25. Hussman endorsed the check in his own name and deposited it in his personal checking account in Gordon, Nebraska, on December 17, 2018. Hussman then engaged in a spending spree, depleting his checking account by making purchases at various local and online retailers, making ATM withdrawals, and making a payment to a credit card.
Hussman paid this money back to the Oglala Lakota College before sentencing. As part of the plea agreement, Hussman was also ordered to pay $3,086.52 in restitution to Pizza Hut and a second Larceny charge was dismissed.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Pennsylvania Man Sentenced to Serve 292 Months in Federal Prison for Child Sexual EnticementRead the Press Release
OKLAHOMA CITY – AREJAE GANGOB MEDINA, 26, of Pennsylvania, was sentenced today to serve 292 months in federal prison for child sexual enticement, announced U.S. Attorney Timothy J. Downing.
According to court documents, Medina met online a 13-year-old girl from the OKC metro area, the pair exchanged pornographic images of themselves, and Medina ultimately traveled cross-country to the OKC metro area, where he engaged in video-recorded sexual intercourse with the girl. The case came to light when the child’s father called the police on October 20, 2019, reporting that his daughter had snuck out of the home and met up with an unknown man.
Officers began a nighttime search and discovered an SUV with Pennsylvania plates parked on the side of a new-construction road. Inside, officers discovered Medina and the missing girl. A search of Medina’s cell phone revealed two videos of him and the girl engaging in sexual acts. Also on Medina’s phone were numerous pornographic images of the girl, which he had acquired before his trip to Oklahoma—as well as child pornography depicting other girls.
On November 19, 2019, a federal grand jury indicted Medina with child sexual enticement, child exploitation, and transportation of child pornography.
On February 4, 2020, Medina pleaded guilty to child sexual enticement before Judge Patrick R. Wyrick. Today, Judge Wyrick sentenced Medina to serve 292 months’ imprisonment, followed by a lifetime of Supervised Release.
This case is the result of an investigation by the Warr Acres Police Department, with cell phone forensic analysis assistance from the Oklahoma State Bureau of Investigation. Assistant U.S. Attorney Brandon Hale prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, 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.
Owner of Montana Construction Company Pleads Guilty to Employment Tax FraudRead the Press Release
A Great Falls, Montana, businessman pleaded guilty today to employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kurt G. Alme for the District of Montana.
According to court documents and statements made in court, Trennis Baer owned and operated Baer Construction based in Great Falls, Montana. Beginning in 2010 and continuing through 2018, Baer did not file quarterly employment tax returns, nor did he pay employment taxes withheld from his employees’ wages to the IRS. Baer did not meet these legal requirements, despite the fact the company’s outside accountant from at least 2013 on prepared the appropriate employment tax returns and calculated the employment taxes due. In addition to not complying with his employment tax obligations, Baer willfully did not file personal income tax returns for the years 2001 to 2006, 2008, and 2010 to 2018. The total tax loss to the IRS from Baer’s conduct is more than $1.5 million.
Chief U.S. District Judge Brian Morris scheduled sentencing for Jan. 28, 2021. At sentencing, Baer faces a maximum sentence of five years in prison. Baer also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Alme commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Matthew Hoffman and Eric Taffet of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Ohio Man Charged with Posing as Teen, Receiving Sexually Explicit Videos from Minor, Posting on TikTokRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and New Canaan Police Chief Leon Krolikowski announced that a federal grand jury in New Haven returned an indictment today charging BRIAN GRINNELL, 35, of Lakewood, Ohio, with distribution of child pornography.
As alleged in court documents, in March 2020, Grinnell posed as a 15-year-old girl and met a female, who at the time was under the age of 12, on Omegle, an online chat website and mobile application that allows users to interact with strangers. Shortly thereafter, he began communicating with the minor victim using the account name “alexisswimmer99” on Snapchat. Grinnell told the minor victim to take sexually explicit photos and videos of herself and send them to Grinnell over Snapchat. After the minor victim began to feel threatened by alexisswimmer99, she unfriended and blocked the alexisswimmer99 account.
It is further alleged that Grinnell, under the username “alexisswimmer9,” subsequently contacted a friend of the minor victim on TikTok and stated that unless the minor victim got in touch with him, he would post a video of the minor victim naked on TikTok. Grinnell then posted sexually explicit videos of the minor victim on TikTok. When a friend of the minor victim, who is also a minor, begged Grinnell not to post additional videos of the minor victim, Grinnell stated “I want a video of you begging me to not put them up. And you have to be topless in the video. If you don’t want any more of your friend stuff going out.” After the friend told Grinnell that they would call the police, Grinnell responded “How are they gonna find me?”
It is alleged that Grinnell then proceeded to post another video of the minor victim on TikTok.
Grinnell has been detained since his arrest on a criminal complaint on September 23, 2020.
If convicted of the charge of distribution of child pornography, Grinnell faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and the New Canaan Police Department, with assistance from the Cuyahoga County (Ohio) Prosecutor’s Office and Cuyahoga County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Sarala V. Nagala.
Owner of Montana Construction Company Pleads Guilty to Employment Tax FraudRead the Press Release
WASHINGTON – A Great Falls, Montana, businessman pleaded guilty today to employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kurt G. Alme for the District of Montana.
According to court documents and statements made in court, Trennis Baer owned and operated Baer Construction based in Great Falls, Montana. Beginning in 2010 and continuing through 2018, Baer did not file quarterly employment tax returns, nor did he pay employment taxes withheld from his employees’ wages to the IRS. Baer did not meet these legal requirements, despite the fact the company’s outside accountant from at least 2013 on prepared the appropriate employment tax returns and calculated the employment taxes due. In addition to not complying with his employment tax obligations, Baer willfully did not file personal income tax returns for the years 2001 to 2006, 2008, and 2010 to 2018. The total tax loss to the IRS from Baer’s conduct is more than $1.5 million.
Chief U.S. District Judge Brian Morris scheduled sentencing for Jan. 28, 2021. At sentencing, Baer faces a maximum sentence of five years in prison. Baer also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Alme commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Matthew Hoffman and Eric Taffet of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
###
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.
New York Man Admits to Traveling to Rhode Island to Engage in Sex with a MinorRead the Press Release
PROVIDENCE – A New York man admitted to a federal court judge in Providence today that after befriending and engaging in sexually explicit communications online with a 15-year-old Rhode Island boy he relocated to Rhode Island and repeatedly engaged in illicit sexual activity with the minor.
Caleb Brown, 24, and the 15-year-old were discovered by Warwick Police in a baseball field dugout in August 2019, after a concerned citizen reported to police that a male was observed living in the dugout with what appeared to be a minor child.
According to information presented to the court, as Warwick officers arrived at the park Brown and the boy began to run away, but were quickly halted. Brown initially identified himself to police as “Clay Connors.”
After placing Brown in a police cruiser, the 15-year-old told police he met Brown online approximately six months prior and that he had been dating Brown for that period of time. The youngster told police that he had been spending nights outside with Brown, while telling his parent’s he was staying at a friend’s house.
Prior to traveling to Rhode Island from Bronx, New York, by bus to meet up with the 15-year-old in July 2019, Brown and the victim engaged in sexually explicit online communications and exchanged sexually explicit images. Officers viewed a steady stream of intimate and sexually explicit
text messages between Brown and the boy. The text messages also revealed discussions of where the two should meet and sleep, and Brown advising the youngster with ways to conceal the true nature of their relationship. For example, a text sent by Brown to the 15-year-old on August 8, 2019 read: “Just chill somewhere close. We need to come up with a code or protocol for this (expletive) cause I don’t want the whole town trying to figure us out.”
Investigators also discovered 12 videos taken by Brown of him engaged in sexual contact with the victim.
Appearing today before Mary S. McElroy, Brown pleaded guilty to travelling with intent to engage in illicit sexual conduct, announced United States Attorney Aaron L. Weisman and Warwick Police Chief Colonel Rick Rathbun.
At sentencing on December 17, 2020, according to a plea agreement filed in this matter, the defendant faces a sentence of 60 months of incarceration.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
United States Attorney Aaron L. Weisman and Warwick Police Chief Colonel Rick Rathbun thank the FBI and the Rhode Island State Police Internet Crimes Against Children Task Force for their assistance in the investigation of this matter.
###
New Orleans Man Sentenced for Conspiracy to Distribute HeroinRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that on October 1 2020, RODNEY ROBINSON, age 61, of New Orleans, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to conspiracy to distribute heroin.
According to court records, ROBINSON and others conspired to distribute one kilogram or more of heroin in the New Orleans metropolitan area and elsewhere. ROBINSON personally sold heroin to customers in the New Orleans area.
Judge Ashe sentenced ROBINSON to 40 months of imprisonment followed by 3 years of supervised release and a $100 mandatory special assessment.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Maria M. Carboni are in charge of the prosecution.
Mountain Village Man Sentenced to over 7 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Jason Van Hoesen, age 46, of Mountain Village, Colorado, near Telluride, was sentenced today to serve 90 months (7.5 years) in federal prison, followed by 10 years on supervised release, for possession of child pornography. He was also ordered to pay $60,000 in restitution. During the course of the investigation, agents and officers recovered more than 10,500 child pornography files, including 281 videos depicting child pornography.
According to the stipulated facts contained in the plea agreement, the investigation into Van Hoesen was initiated by Colorado’s Internet Crimes Against Children (ICAC) Task Force. On December 14, 2018, a specific web search engine reported to the National Center for Missing and Exploited Children (NCMEC) that on November 15, 2018, an individual using a specific IP address uploaded a file of suspected child pornography.
NCMEC analysts reviewed and attempted to determine the jurisdiction for the incident reported. Once the analysis was complete, a cybertip was securely transmitted to Colorado’s ICAC Task Force. The Colorado Springs Police Department (CSPD) is the lead agency for this task force.
Cybertips are received and then securely transmitted to the agency affiliated with the image for further investigation. Upon receipt of this cybertip, CSPD reviewed the uploaded image, which depicted a nude prepubescent minor boy approximately 6 to 10 years old. A check through the American Registry for Internet Numbers reflected the IP address in question was registered to Mountain Village Metro Cable under the parent company of Centurylink.
An administrative summons was served on Mountain Village Metro Cable for subscriber information. Mountain Village Metro Cable provided an address on Mountain Village Boulevard. The Mountain Village Police Department (MVPD) was notified of this information. They in turn requested assistance with the investigation. As such, a joint CSPD and MVPD ICAC investigation was initiated.
On February 8, 2019, MVPD executed a state search warrant at the Mountain View residence where Van Hoesen and his roommate were contacted. Law enforcement conducted a search of the roommate’s cell phone and computer, which revealed no child pornography.
Van Hoesen confirmed to law enforcement his name and email address. He also confirmed that he used the identified web search engine to upload a photo of a naked boy in November 2018.
Numerous digital storage devices were located and seized within the Mountain Village premises. They were later transported to the CSPD for further review. A computer forensic review of the devices revealed that Van Hoesen had downloaded child pornography on several occasions and possessed more than 10,500 files depicting child pornography. Van Hoesen had extensively organized his collection into folders, including folders containing images of infants and toddlers.
“This sentence is wholly appropriate for someone who was a willing participant in the victimization of thousands and thousands of young children,” said U.S. Attorney Jason Dunn. “Through the dogged work of the Colorado Springs and Mountain Village police departments, and the expertise of the NCMEC, a child predator has been taken out of our community for many years to come, and will be closely monitored upon his release.”
Copies of all of the files depicting child pornography were provided to NCMEC, which reported that more than 4,400 files possessed by the defendant depict minor victims previously identified by law enforcement.
This case was investigated by the Colorado Internet Crimes Against Children (ICAC) Task Force, in conjunction with the Mountain Village Police Department. The case was prosecuted by Assistant United States Attorneys Alecia L. Riewerts and Jeffrey K. Graves.
Jason Van Hoesen was charged by Indictment on May 3, 2019, and pleaded guilty to the charge on July 6, 2020. The sentence was pronounced by U.S. District Court Judge Robert E. Blackburn.
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 U.S. Attorneys’ Offices and 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-208.
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.
Montgomery County Man Sentenced to Three Years for Nearly $3 Million Embezzlement Scheme Against Lancaster CompanyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Steven J. Russo, 43, of Pennsburg, PA, was sentenced by U.S. District Court Judge Jeffery L. Schmehl to three years in prison, three years of supervised release, and ordered to pay $2,798,000 in restitution to the victim and $980,000 in restitution to the IRS, for embezzling nearly $3 million from his former employer and making false statements on his federal income tax returns.
The defendant pleaded guilty in June 2020 to wire fraud related to the embezzlement scheme, and to filing false tax returns. Russo had served as the Director of Information Technology for a design and manufacturing company headquartered in Lancaster, PA, and over a period of almost six years embezzled money from the company in a variety of ways. His schemes included the use of sham corporations with virtual addresses, fake invoices, and access to the company’s credit cards and on-line accounts. Russo would use those company owned accounts to make unearned payments to the sham companies owned and controlled by him, and to purchase items that he kept for his personal use or sold for personal gain. Russo also filed false tax returns, failing to report his income accurately and claiming false expenses and deductions, resulting in a tax debt to the IRS of nearly $1 million.
“Embezzlement and tax fraud are forms of stealing, pure and simple,” said U.S. Attorney McSwain. “Russo held a senior position of trust with his former employer, and shamefully used that access to steal millions of dollars, while also ripping off the government (and honest tax payers) in the process. My Office will continue to work with our law enforcement partners to protect innocent businesses and taxpayers from being victimized by this type of fraud.”
“Mr. Russo’s decision to use deceit and fraud to line his pockets with his employer’s money and shirk his tax obligations has cost him his freedom,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “This sentence should serve as a deterrent to those who might contemplate similar actions.”
The case was investigated by the Internal Revenue Service – Criminal Investigations, and is being prosecuted by Assistant United States Attorney Bea L. Witzleben.
Mobridge Man Indicted for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Stanley Gene Schily, Sr., age 65, was indicted on September 9, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on September 29, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than January 1, 2020, and continuing through March 5, 2020, Schily knowingly and intentionally conspired with other people to knowingly and intentionally distribute and possess with the intent to distribute 50 grams or more of methamphetamine in and around Mobridge, South Dakota.
The charge is merely an accusation and Schily is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Mobridge Police Department, the Walworth County Sheriff’s Office, the Corson County Sheriff’s Office, and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Schily was remanded to the custody of the U.S. Marshals Service pending trial. A trial date was set for December 7, 2020.
Mission Woman Indicted for Maiming and AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Maiming and Assault Resulting in Serious Bodily Injury.
Teyaune Clairmont, a/k/a Teyaune Clairmont Escobedo, age 29, was indicted on September 9, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 30, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 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 June 27, 2020, in Todd County, South Dakota, Clairmont assaulted a woman by biting her nose with the intent to maim and disfigure, and that the assault resulted in serious bodily injury.
The charges are merely accusations and Clairmont 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 Kirk Albertson is prosecuting the case.
Clairmont was released on bond pending trial. A trial date has not been set.
Mineral County man sentenced for role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Levi Doman, of Keyser, West Virginia, was sentenced today to 92 months of incarceration for his involvement in a drug distribution conspiracy, U.S. Attorney Bill Powell announced.
Doman, age 30, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in January 2020. Doman admitted to distributing methamphetamine in August 2017 in Mineral County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Massachusetts Man Pleads Guilty to Assaulting a Border Patrol AgentRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that, on October 2, 2020, Michael Scaduto, 33, of Littleton, Massachusetts, pleaded guilty in United States District Court in Burlington, to an information that charged him with assaulting a U.S. Border Patrol Agent. Chief Judge Geoffrey W. Crawford allowed Scaduto to continue on release conditions pending sentencing, which is scheduled for February 5, 2021.
United States Attorney Christina E. Nolan stated: “As this conviction reflects, the U.S. Attorney’s Office will not tolerate assaults on those who protect, serve, and put themselves in harm’s way to make Vermont communities safer. Those who commit such offenses against federal agents will continue to find themselves facing consequences in federal court. We thank our brave men and women in uniform at all levels of law enforcement for their daily sacrifices in the name of public safety.”
At the guilty plea hearing, Scaduto admitted that, after a U.S. Border Patrol Agent had pulled Scaduto over on Route 105 in the vicinity of Richford, Vermont, Scaduto got out of his vehicle and approached the U.S. Border Patrol Agent. Scaduto gesticulated and shouted at the Border Patrol Agent, and grabbed the Border Patrol Agent in the area of his shoulders and forcibly interfered with the Border Patrol Agent while the Border Patrol Agent was engaged in the performance of his official duties.
At sentencing, Scaduto faces a maximum possible term of imprisonment of one year and a fine of up to $100,000.00. In the plea agreement, the United States and Scaduto have agreed to recommend that the Court impose a $3,000 fine and that Scaduto perform 50 hours of community service. The United States indicated that it would seek a sentence of incarceration for Scaduto, which Scaduto indicated he would oppose.
The matter was investigated by the Federal Bureau of Investigation, with assistance from the U.S. Border Patrol. The case is being prosecuted by Assistant U.S. Attorney Andrew Gilman. Scaduto is represented by Mark Kaplan, Esq.
Maryland man sentenced to a decade for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph Tyree Ryles, of Baltimore, Maryland, was sentenced today to 120 months of incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Ryles, age 30, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2020. Ryles, having previously been convicted of crimes in the Circuit Court of Baltimore City, Maryland, admitted to illegally possessing a 9mm pistol and a .40 caliber pistol in August 2015 in Jefferson County.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Married Greenville Business Owners Sentenced to More than Seventeen Total Years, Ordered to Pay More than $2.5 Million in Restitution for Defrauding Home Buyers and SellersRead the Press Release
Greenville, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Dana Q. Roush, 40, and her husband Michael “Bubba” Roush, 56, both of Greenville, were sentenced to a total of seventeen years in federal prison and ordered to pay back more than $2.5 million after a jury found them guilty of conspiracy to commit mail fraud and equity skimming. Mrs. Roush was sentenced to more than eleven years, while her husband was sentenced to six and a half years.
“These defendants here stole more than money. They robbed their victims of the American dream,” said U.S. Attorney McCoy. “For so many South Carolinians, times are tough right now. That these two defendants exploited that difficulty to line their own pockets is reprehensible, and this office will not tolerate it. I appreciate the jury’s verdict and the sentence handed down by the judge. I am especially thankful for the hard work form our federal partners in this case.”
“The fraud perpetrated by the defendants allowed them to steal millions of dollars from people who could not afford to lose any money,” said FBI Special Agent in Charge Jody Norris. “The victims were robbed of their life savings, their homes, and the futures they had planned. The Special Agents from the FBI and the investigators from the Department of Housing and Urban Development (HUD) who brought these defendants to justice, should be commended for their dedication and demonstration of our resolve to fully investigate these fraudulent schemes in South Carolina.”
“The core of our mission is to protect the Department of Housing and Urban Development from those that would seek to defraud its programs for the sole purpose of enriching themselves at the government’s expense," said Wyatt Achord, Special Agent in Charge, HUD Office of Inspector General (OIG). "We remain committed toward working with the U.S. Department of Justice to pursue any individual who attempts to defraud the government."
Evidence presented at trial showed that Dana and Bubba Roush owned and operated Kingdom Connected Investments, LLC (“KCI”). They marketed their company as a Christian organization and promised to create “win-win” situations for home sellers and buyers. They sought homeowners who often owed more on their home than the property was worth, and buyers who lacked good credit and thus could not obtain a conventional mortgage.
KCI promised to relieve the homeowner from the burdens of mortgage payments by “buying” the home and placing a new buyer in the home who would rent-to-own. KCI promised to make all the sellers’ mortgage payments. KCI misled sellers to believe that they would be immediately removed from the property’s title and that they were no longer responsible for the original loan.
KCI promised the buyers an easy road to homeownership. In exchange for the down payment (typically ten percent of the purchase price), the buyers were told that they were renting-to-own and building up equity. KCI further concealed from the buyers that a third party - the seller - had an existing mortgage on the property that KCI was responsible for paying.
Rather than using the down payments and rents received from the buyers to pay the sellers’ mortgage payments, Bubba and Dana Roush used the money for personal expenses and to expand their real estate business.
The sellers, many of whom believed they were off the title and note, received foreclosure notices. They learned that KCI, despite having a renter in the home, had stopped paying on the mortgage. Buyers often learned they had no real ownership interest when the home was purchased by a third-party at a foreclosure sale and the new owner started eviction proceedings.
Victims of the scheme suffered myriad injuries including loss of money, shattered dreams, and ruined credit. Special Agent Matt Jacobson of the Federal Bureau of Investigation (FBI) testified that KCI received $2.6 million from buyers and only paid $1.4 million in mortgage payments. Approximately 130 properties were involved in the scam and Agent Jacobson testified that in only two instances did a buyer actually become a homeowner and a seller not face foreclosure and ruined credit.
United States District Judge Timothy M. Cain sentenced Mrs. Roush to 136 months in federal prison, to be followed by a three-year term of court-ordered supervision. Judge Cain sentenced Mr. Roush to 78 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Judge Cain also ordered the defendants to pay $2,664,796.69 in restitution.
The case was investigated by the FBI and HUD OIG. Assistant U.S. Attorney Bill Watkins and Special Assistant U.S. Attorney Ian Conits, both of the Greenville office, prosecuted the case.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Man Charged with Attempted Arson During Civil Unrest in Madison in JuneRead the Press Release
MADISON, WIS. – United States Attorney Scott C. Blader announced today that a Madison, Wisconsin resident has been charged with attempting to damage and destroy by means of fire the City-County Building on Martin Luther King Jr. Boulevard during the civil unrest that occurred in Madison on June 24, 2020. Marquon Clark, 26, was charged in a one-count complaint filed in U.S. District Court today.
The complaint alleges that Clark threw projectiles through windows of the City-County Building, and then threw a lit roll of paper towels through the broken windows. The complaint alleges that at the time, the building was occupied by over 250 people, including 182 adults and juveniles being held in the jail. Clark’s actions led to a fire in the City-County Building that resulted in approximately $105,000 in damages and clean-up costs.
Clark is in custody at the Dane County Jail. His initial appearance in U.S. District Court in Madison has not been scheduled.
“Throwing burning objects into an occupied government building is not protest, it is a crime that places lives at risk,” said U.S. Attorney Blader. “Those who engage in such conduct without regard for the potentially deadly consequences will be prosecuted to the fullest extent of the law.”
If convicted, Clark faces a mandatory minimum penalty of five years and a maximum of 20 years in federal prison. The charge against him is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Dane County Sheriff’s Office; Madison Police Department; and the Madison Fire Investigation Team.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Pleads Guilty to CARES Act Fraud & Access Device FraudRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that on Friday, October 2, Ahmad Kanan, 49, Madison, Wisconsin, pleaded guilty to two separate federal crimes charged in two separate indictments: Coronavirus Aid, Relief, and Economic Security (CARES) Act fraud and access device fraud.
While acting on behalf of Altin Labs, Inc. as its Chief Executive Officer and majority owner, Kanan applied for two Paycheck Protection Program (PPP) loans funded by the CARES Act. Specifically, in April 2020, Kanan applied for a $72,500 PPP loan through the Bank of Kaukauna in Kaukauna, Wisconsin. The Bank of Kaukauna noted a discrepancy in the spelling of Kanan’s name in the application, and Altin Labs did not receive these funds. In May 2020, Kanan again applied for a PPP loan, requesting $47,060 through Cross River Bank located in New Jersey. This time, Altin Labs received the funds. Kanan admitted that in his PPP applications, he used a false spelling of his name and indicated that he was not under indictment on criminal charges, when in fact he was the subject of an indictment returned by a federal grand jury in the Western District of Wisconsin in October 2019, charging him with access device fraud.
The separate access device charges related to two family-owned gas stations that Kanan operated in Janesville, Wisconsin. Kanan admitted to using the routing and account numbers from the bank account of the Embassy of Libya-Military Attaché to pay to the Wisconsin Department of Revenue sales and use tax, penalties, and interest owed by his gas stations in the amount of $83,783.41 in July 2017, and $108,053.02 in December 2017. The Libyan Embassy did not give Kanan permission to use their bank account to make these payments.
U.S. District Judge William M. Conley scheduled sentencing for January 6, 2021. Kanan faces a maximum penalty of 20 years in federal prison on the CARES Act fraud and 10 years on the access device fraud.
The charges against Kanan are the result of investigations by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Wisconsin Department of Justice Division of Criminal Investigation, with the assistance of the Wisconsin Department of Revenue, the U.S. State Department, and the Small Business Administration. The U.S. Attorney’s Office would like to thank the Libyan Embassy for its cooperation.
Assistant U.S. Attorneys Zachary Corey and Meredith Duchemin are handling the prosecution.
Media AdvisoryRead the Press Release
Event: News conference to announce Operation Rubber Stamp and significant milestones in prosecution of telemedicine fraud in Georgia and South Carolina
Date/Time:Wednesday, Oct. 7, 2020, at 10:30 a.m.
Location: U.S. Attorney’s Office – Sixth Floor Conference Room
22 Barnard St., Cay Building
Savannah, GA 31401
Participants:
Bobby L. Christine, U.S. Attorney, Southern District of Georgia
Peter M. McCoy, U.S. Attorney, District of South Carolina
Will Clarke, Supervisory Special Agent, Savannah Office, Federal Bureau of Investigation
Glen M. Kessler, Resident Agent in Charge, Savannah Resident Office, U.S. Secret Service
J. Thomas Clarkson and Jonathan Porter, Assistant U.S. Attorneys, Southern District of Georgia
Derek Shoemake and Jim May, Assistant U.S. Attorneys, District of South Carolina
Please note: All visitors must enter through the Third Floor security station for temperature check. Face masks are required for all visitors. Media should arrive at least 20 minutes early for escort and setup. Reply to [email protected] if you plan to attend, or call Public Affairs Officer Barry Paschal at 706-829-4253.
#####
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.
Luxury car purveyor extradited on fraud and money laundering chargesRead the Press Release
ATLANTA - Mani Chulpayev, having been arrested in Ukraine and extradited to Atlanta, has been arraigned on federal charges of bank fraud, mail fraud, and money laundering.
“Chulpayev allegedly profited from years of fraud and by catering to drug traffickers looking for flashy cars and a way to launder their ill-gotten cash,” said U.S. Attorney Byung J. “BJay” Pak. “His arrest and extradition show that we will pursue fraudsters and money launderers no matter where they hide.”
“DEA and its law enforcement partners will continue to target drug traffickers and those who support them with criminal acts such as money laundering and wide-scale fraud, as was the case in this investigation,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “The spirited level of law enforcement cooperation made this investigation a success.”
“The arrest of this defendant should serve as an example to individuals that distance does not insulate them from the reach of our investigations and our resolve in the pursuit of justice,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to work alongside our law enforcement partners to dissect and financially disrupt complex money laundering schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Chulpayev, along with Lyle Livesay, Kimberly Reiss, and others, allegedly operated an enterprise from at least May 2012 to July 2016 in which they obtained luxury cars through fraudulent means, and then leased them out to drug traffickers who paid for the leases using cash from their drug sales.
To build up an inventory of cars, Chulpayev and his associates allegedly recruited straw purchasers – people who would buy luxury cars in their names, but had no intention of actually driving the cars themselves. The straw purchasers would give the cars to Chulpayev to be leased to others, including to drug traffickers who used drug proceeds to pay Chulpayev for the pricey leases. The straw purchasers bought the cars using bank loans, and would finance several luxury vehicles in a short period of time before the new loans showed up on their credit reports. Chulpayev and his associates gave the straw purchasers falsified documents, including fake paychecks, to use for loan applications. Some of the straw purchasers also obtained loans for cars that were not actually for sale so that Chulpayev and his co-conspirators would receive a cash boon from the financing bank to further their scheme.
Chulpayev and his associates would initially make some of the loan payments for the straw purchasers, but then stop, leaving the straw purchasers responsible for making payments. When the straw purchasers inevitably defaulted on the loans, Chulpayev left the banks to try to repossess the cars from the drug traffickers or locate cars that had been moved to other states, stolen, or exported to foreign countries.
A federal grand jury indicted Mani Chulpayev, 43, together with Lyle Stephen Livesay, 33, and Kimberly Ann Reiss, 35, on November 15, 2018, on one count of conspiracy to commit bank fraud and mail fraud, and one count of conspiracy to commit money laundering. Livesay pleaded guilty to the charges on September 14, 2020, before U.S. District Judge Eleanor L. Ross. Reiss is scheduled for a change of plea hearing on October 22, 2020. Chulpayev was arraigned before U.S. Magistrate Judge Regina D. Cannon.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration and United States Postal Inspection Service, with valuable assistance provided by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Marshals Service.
Assistant U.S. Attorneys Garrett L. Bradford, Deputy Chief of the Narcotics and Dangerous Drugs Section, and Irina K. Dutcher are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Los Angeles Woman Sentenced for Transporting 60 Pounds of Meth to KansasRead the Press Release
WICHITA, KAN. – A woman from Los Angeles was sentenced today to 18 months in federal prison for transporting 60 pounds of methamphetamine to Kansas, U.S. Attorney Stephen McAllister said.
Maria Alvarez-Buenrostro, 47, Los Angeles, Calif., pleaded guilty to one count of possession with intent to distribute methamphetamine. In her plea, she admitted that the Kansas Highway Patrol stopped her car Feb. 12, 2019, in Ellis County, Kan. A trooper found the methamphetamine in heat-sealed bags hidden in a real quarter panel and in both rear doors.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Mona Furst for their work on the case.