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Tuesday 25 August 2020
Iowa Man with Multiple Felony Convictions Sentenced to Six Years in Federal Prison for Illegally Possessing a Gun.Read the Press Release
A convicted felon who possessed a gun while also using drugs was sentenced to six years in federal prison.
Curtis Eugene Koesters, age 40, received the prison term after a February 20, 2020 guilty plea to one count of possession of a firearm by a felon and a drug user.
Evidence presented at the change of plea and sentencing hearings in this case revealed that defendant was a recidivist drug dealer, with a history of dangerousness, who unlawfully possessed a gun in connection with his felonious drug trafficking activities. When he was discovered in possession of the gun, he was also in possession of a methamphetamine pipe, approximately 7 grams of methamphetamine, $561 in US Currency, a syringe containing methamphetamine, and a digital scale, among other items.
Koesters was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Koesters was sentenced to 72 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Koesters 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. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4078.
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Inmate's Mother Admits to Participating in Son's Drug Trafficking ConspiracyRead the Press Release
PROVIDENCE – A mother today admitted to a federal court judge that she participated in a drug trafficking conspiracy run by her son while he was incarcerated in the Adult Correctional Institutions (ACI). The son, with the mother’s assistance, directed drug dealers to sell crack cocaine to people outside of the prison.
According to court documents, on January 22, 2018, during an investigation of the drug trafficking activities of Pawtucket residents James Gomes, 33, and his mother, Lisa Ellis, 52, police executed a court-authorized search of Ellis’ residence and arrested both Ellis and Gomes. Ellis at the time told police she knew her son was dealing crack cocaine and admitted that she assisted on at least one occasion. Ellis and Gomes were charged with drug trafficking offenses in Rhode Island state court. Gomes was detained at the ACI, while Ellis was released on bail. According to court documents, Gomes continued dealing crack cocaine from inside the prison, with his mother’s assistance.
Appearing today in federal court, Ellis admitted that she acted as point-of-contact for her son as he executed a scheme from inside the prison to have crack cocaine delivered to prospective buyers outside of prison. Ellis admitted that on her receiving her son’s calls from the ACI, she conferenced in his associates on her cell phone, who were then directed by Gomes to make crack cocaine sales, specifying customer, quantity, and price. She also admitted that those associates would bring her the proceeds of the sales, a portion of which she kept and the remainder of which she deposited in Gomes’ prison account.
Joshua Moore, 19, formerly of Pawtucket, and Gerald Price, 34, of Cranston, were among the associates who sold drugs for Gomes.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Ellis pleaded guilty to conspiracy to distribute cocaine base and distribution of 28 grams or more of cocaine base, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives Kelly D. Brady.
Ellis is scheduled to be sentenced on November 10, 2020. Conspiracy to distribute cocaine base and distribution of 28 grams or more of cocaine base are each punishable by statutory penalties of up to 20 years imprisonment, with a mandatory minimum term of incarceration of 5 years; a life term of supervised release; and a fine of up to $1,000,000.
In this matter, Gomes pleaded guilty on October 15, 2019, to one count of conspiracy to distribute 28 grams or more of cocaine base, one count of distribution of 28 grams or more of cocaine base, and three counts of distribution of cocaine base. He was sentenced on July 8, 2020, to 77 months in federal prison, to be served concurrently with his present term of incarceration at the ACI on state charges. His term of incarceration in federal prison is to be followed by 4 years’ federal supervised release.
Joshua Moore pleaded guilty on September 4, 2019, to conspiracy to distribute 28 grams or more of cocaine base and three counts of distribution of cocaine base. He was sentenced on November 21, 2019, to 60 months in federal prison to be followed by 4 years of supervised release.
Gerald Price pleaded guilty on November 8, 2019, to conspiracy to distribute 28 grams or more of cocaine base, distribution of 28 grams or more of cocaine base, and three counts of distribution of cocaine base. He was sentenced on February 24, 2020, to 60 months incarceration to be followed by 4 years of supervised release.
The cases in federal court are being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Illinois Felon Sentenced to 20 Months in Federal Prison for Unlawfully Possessing a GunRead the Press Release
A convicted felon who illegally possessed a gun during a brief standoff with police was sentenced August 21, 2020, to 20 months in federal prison.
Antoine Argue, 38, from Park Forest, Illinois, received the prison term after a guilty plea to illegally possessing a firearm as a felon.
Evidence presented by the United States at the detention, change of plea, and sentencing hearings showed that law enforcement made a traffic stop of a vehicle on June 15, 2019 in which Argue was a passenger. Argue was uncooperative when officers repeatedly ordered him to show his hands and to keep his hands up. Eventually as Argue exited the vehicle, law enforcement heard a metal object hit the pavement, which was identified as a loaded Taurus .45 caliber handgun.
Argue was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Argue was sentenced to 20 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4047.
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Illegal Alien admits to drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Hashim Hussein, a citizen of Kuwait, has admitted to selling cocaine near West Virginia University, U.S. Attorney Bill Powell announced.
Hussein, also known as “Kuwait,” age 21, pled guilty to one count of “Distribution of Cocaine Hydrochloride within 1000 Feet of Protected Location.” Hussein admitted to selling cocaine hydrochloride, also known as “Coke,” in December 2019 near the campus of West Virginia University in Monongalia County.
Hussein faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The FBI and Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michal John Aloi presided.
Historic prosecutor appointments enhance Southern District U.S. Attorney's OfficeRead the Press Release
SAVANNAH, GA: The first-ever dedicated prosecutor from Fort Stewart and a specialized animal cruelty prosecutor represent historic appointments bolstering the ranks of the Southern District of Georgia U.S. Attorney’s Office.
Capt. Darron Hubbard, of Savannah, and Jessica Rock, of Jackson, Ga., have been sworn into office to serve the United States in the Southern District of Georgia U.S. Attorney’s Office, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Hubbard will serve as a full-time Special Assistant U.S. Attorney (SAUSA) in the Savannah Office, while Rock will serve as an SAUSA dedicated to animal cruelty cases.
“Our office’s resounding prosecutorial success in leveraging outstanding U.S. Army JAG Corps attorneys to serve full-time assignments in the U.S. Attorney’s Office continues to reap benefits for our law enforcement efforts while providing valuable experience to military attorneys,” said U.S. Attorney Christine. “In addition, a prosecutor specializing in animal cruelty cases adds tremendous firepower in our work to eradicate animal fighting operations in the Southern District and beyond.”
The new appointees are:
- Capt. Darron Hubbard, a six-year veteran of the U.S. Army, served as trial defense counsel for the Army in Kaiserslautern, Germany, before joining the JAG Corps at Fort Stewart. A summa cum laude graduate of DePaul University College of Law, Hubbard served in the Army as a criminal prosecutor and defense counsel, and as personal civil counsel for soldiers. He previously served as a SAUSA for the Western District of Oklahoma U.S. Attorney’s Office, and is the first full-time dedicated SAUSA appointed from Fort Stewart.
- Jessica Rock represents only the second time in the nation that a dedicated animal cruelty prosecutor has joined a U.S. Attorney’s Office. In 2019, she was appointed as Georgia’s Statewide Animal Crimes Prosecutor and Trainer and serves as an Assistant District Attorney with the Towaliga Judicial Circuit. Rock provides statewide animal cruelty and animal fighting case assistance for law enforcement and prosecutors, and statewide and national training to law enforcement, animal control officers, prosecutors, judges and veterinarians. In 2004, she became Georgia’s first dedicated animal cruelty prosecutor, creating Georgia's first animal cruelty task force with law enforcement. For more than 16 years, Jessica has dedicated her career to the prosecution of animal crimes and education on the closely connected link between animal abuse and human violence. Rock is a graduate of the Emory University School of Law and a former clerk for a former Chief Justice of the Supreme Court of Georgia. She currently is assisting in the prosecution of two major cockfighting cases in the Southern District.
The U.S. Attorney’s Office for the Southern District of Georgia, led by U.S. Attorney Bobby L. Christine, prosecutes cases involving violations of federal laws, and represents the interests of the United States government and its agencies in criminal and civil matters.in the 43 counties of the Southern District.
Guatemalan Woman Living in Clarion, Iowa Sentenced for Using Illegally Obtained SNAP and SSI FundsRead the Press Release
A woman who illegally obtained SNAP and SSI funds was sentenced August 24, 2020, to time served.
Aracely Batres-Alonzo, age 26, from Guatemala received the prison term after an October 21, 2019, guilty plea to two counts of theft of U.S. government funds.
In a plea agreement, Batres-Alonzo admitted that between about January 1, 2016 and May 31, 2019, she used $43,346.00 in the form of Supplemental Nutrition Program (SNAP), formerly Food Stamps; and Family Investment Program (FIP) funds, to which the she was not entitled to. She fraudulently reported on her Iowa Department of Human Services (DHS) applications and review/recertification eligibility documents (RREDs) that she and her spouse (father of her children) were not employed. The investigation showed her spouse had been working under an assumed name. The investigation also shows that Batres-Alonzo had been employed with several different companies since April 2015, and never reported her or her spouse’s income to DHS. This unreported income would have made the household ineligible for benefits.
Batres-Alonzo, the representative payee for her minor child’s Supplemental Security Income (SSI) benefit, administered by the Social Security Administration (SSA), concealed material information from the SSA in her capacity as her minor child’s representative payee. She failed to report her full household income to the SSA, causing her minor child to be overpaid $1,829.29 between April 1, 2018 and March 30, 2019.
Batres-Alonzo was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Batres-Alonzo was sentenced to 2 days’ time served. She was ordered to make $43,346 in restitution to the Department of Human Services and $1,829.29 in restitution to the Social Security Administration.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by United States Department of Agriculture, Office of Inspector General (USDA-OIG), the Department of Homeland Security, Bureau of Immigration and Customs Enforcement (ICE), the Social Security Administration, Office of Inspector General (SSA-OIG), and the Iowa Department of Inspections and Appeals (IDIA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-03028.
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Gilmore City Man Sentenced to Federal Prison for Filing False Tax Returns and Theft of Government FundsRead the Press Release
A Gilmore City, Iowa man who owned and operated a tax return preparation business was sentenced August 25, 2020 to more than 1 year in federal prison.
David Miller, age 52, from Gilmore City, IA, received the prison term after pleading guilty to three counts of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns and three counts of receiving stolen government money or property.
In a plea agreement, Miller admitted that he owned and operated a tax return preparation business. He further admitted that while operating that business, he prepared fraudulent income tax returns. The fraudulent returns that Miller prepared between 2011 and 2016 resulted in a total loss to the government of $125,954. Miller also stole money from his clients by depriving them of part of their tax refunds. Miller also failed to report the stolen funds as income, which resulted in an additional tax obligation for himself of $30,752. In his plea agreement, Miller agreed to pay a total of $156,706 in restitution to the Internal Revenue Service.
“Miller abused his position as a tax preparer to steal from both the American taxpayer and Miller’s own clients,” said United States Attorney Peter E. Deegan, Jr. “I thank the Internal Revenue Service for its hard work in protecting the integrity of the tax system. Together, the United States Attorney’s Office and the Internal Revenue Service will continue to hold tax preparers accountable when they commit fraud and abuse.”
“Today’s sentencing of Mr. Miller again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their pursuit of those who would attempt to defraud America’s tax system,” said Acting Special Agent in Charge Adam Steiner. “Taxpayers should be careful in selecting the tax professional who prepares their returns.”
Miller was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Miller was sentenced to 12 months’ and 1 day imprisonment. He was ordered to pay restitution to the victims in this case—numerous individual tax payers and the IRS. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system. Miller will report to the Bureau of Prison’s as directed by the United States Marshals Service.
This case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the Department of Treasury and the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3004.
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Four Indicted in Minneapolis Police Third Precinct ArsonRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging DYLAN SHAKESPEARE ROBINSON, 22, DAVON DE-ANDRE TURNER, 24, BYRCE MICHAEL WILLIAMS, 26, and BRANDEN MICHAEL WOLFE, 23, with one count each of conspiracy to commit arson at the Minneapolis Police Department’s Third Precinct. ROBINSON and WOLFE, were previously charged via federal criminal complaint with aiding and abetting arson. WILLIAMS was previously charged via criminal complaint with conspiracy to commit arson. Formal detention and arraignment hearings will be scheduled at a later date.
According to the allegations in the indictment, on May 28, 2020, ROBINSON, TURNER, WILLIAMS, and WOLFE each went to the Minneapolis Police Department’s Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. ROBINSON, TURNER, WILLIAMS, and WOLFE, along with unidentified other co-conspirators, breached the fence and entered the Third Precinct building.
According to the allegations in the indictment, ROBINSON, assisted by an unidentified co-conspirator, lit an incendiary device held by the unidentified co-conspirator who threw it toward the Third Precinct building with the intent that it would start a fire or fuel an existing fire. WILLIAMS and TURNER, assisted by an unidentified co-conspirator, lit a Molotov cocktail, which was taken into the Third Precinct building by TURNER and used to start a fire. WOLFE pushed a barrel into a fire at the entrance of the Third Precinct building to accelerate an existing fire.
The ATF and FBI continue to urge the public to report suspected arson, use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information specifically related to the Third Precinct fire or other business fires in the Twin Cities can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com. In addition to fires, the FBI is looking for people who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALLFBI (800-225-5324) or visit tips.fbi.gov.
This case is the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
DYLAN SHAKESPEARE ROBINSON, 22
Brainerd, Minn.
Charges:
- Conspiracy to commit arson, 1 count
DAVON DE-ANDRE TURNER, 24
St. Paul, Minn.
Charges:
- Conspiracy to commit arson, 1 count
BRYCE MICHAEL WILLIAMS, 26
Staples, Minn.
Charges:
- Conspiracy to commit arson, 1 count
BRANDEN MICHAEL WOLFE, 23
St. Paul, Minn.
Charges:
- Conspiracy to commit arson, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Inmate Sentenced for Introducing Heroin and Buprenorphine into USP LeeRead the Press Release
ABINGDON, VIRGINIA – A former inmate of the United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced yesterday for his role in introducing heroin and buprenorphine into the prison, United States Attorney Thomas T. Cullen announced today.
Tylan Lucas, 38, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon to a total term of 96 months imprisonment for conspiracy and possession with intent to distribute heroin and buprenorphine, as well as other related charges.
Co-defendant Shauntae Crummer was sentenced on June 30, 2020, to 36 months imprisonment for her role in the offense.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Former Florida Investment Adviser Sentenced to Ten Years in Prison for Defrauding ClientsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Sean Donald Premock, 47, of Ft. Lauderdale, Florida, was sentenced today to ten years in prison and three years of supervised release by United States District Judge Paul S. Diamond for numerous fraud offenses. The defendant was also ordered to forfeit $797,021 in proceeds and pay $1,061,532 in restitution.
The defendant, a former licensed stockbroker and investment adviser, pleaded guilty in May 2017 to nine counts of mail fraud, nine counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud. As part of his guilty plea, Premock admitted that he had lost all of his professional licenses between March 2012 and August 2013, and had been permanently barred from serving as an investment advisor. The defendant’s fraud that led to his conviction in this case began while he was still licensed and continued even after he lost his licenses.
Premock began defrauding his clients in at least 2009, while still employed at a securities firm in Florida. When it became apparent that he was going to lose his licenses, Premock set up his own investing companies, including the aptly-named Mocktrading Investments, LLC and Mock Trading Group, which the defendant used to defraud his clients -- most of whom were elderly and inexperienced investors and some of whom were his own family members. Premock continued to hold himself out as a licensed stockbroker and investment adviser even after losing his licenses, and convinced many of his clients to trust him with their life savings. The defendant promised to manage his clients’ money and invest it in, among other things, stocks, bonds, “hedge funds,” “tractions,” and annuities. Premock told his clients that their funds would be safe, and promised to place them in low risk investments.
In reality, Premock invested only about half of the funds he received from clients and spent the rest on himself. Furthermore, the investments he did make were failures and he lost virtually all of his clients’ money. To hide his fraud, the defendant lied to his clients about their investments and mailed them false account statements. Later, Premock even began calling himself “Ethan” to make it harder for anyone to discover his true identity. In total, Premock’s clients lost more than $1,000,000 during the course of his fraud.
“Honesty, integrity, and trust all play a critical role in the relationship between a financial advisor and a client. Any advisor who deliberately betrays his clients’ trust for his own financial gain turns the system on its head,” said U.S. Attorney McSwain. “The damage done by such corrupt financial advisors can be catastrophic; here, some of Sean Premock’s victims lost their life savings. Today’s sentence reflects the gravity of that betrayal.”
“Getting fired for bad behavior and losing his professional licenses proved a mere career speedbump for Sean Premock,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “His next venture: flat-out fraud. He set about reeling in unsuspecting investors, lied about his plans for their money, and created a phony paper trail to cover up his crimes. Most of his victims were elderly. Maybe that’s why he thought he could get away with it. The FBI is proud to have proved him wrong.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Former Defense Department Employee Sentenced for Public Corruption While Working at Sierra Army Depot and at Naval Air Station LemooreRead the Press Release
SACRAMENTO, Calif. — Jeffery Parsons, 44, of Dillon, Montana, was sentenced on Monday by U.S. District Judge Kimberly J. Mueller to one year in prison for conspiring to accept illegal gratuities on account of official actions and conspiring to sell government property without authority. Judge Mueller also ordered Parsons to forfeit to the United States over $230,000.
According to court documents, Parsons was a civilian employee of the U.S. Department of Defense. In November 2009, Parsons began working as an Environmental Protection Specialist at Sierra Army Depot in Herlong, California (SIAD). He later held the same position at Naval Air Station Lemoore in Lemoore, California (NASL). In his official positions at SIAD and NASL, Parsons’ responsibilities included the disposition of hazardous materials such as batteries, fuel and oil.
In October 2012, Parsons, his wife, and their associate Travis Wong agreed that Parsons would use his authority at SIAD to allow Wong to sell valuable materials from the installation and that, in return, Wong would pay Parsons and his wife a portion of his proceeds from the sales. After Parsons transferred to NASL, Parsons, his wife, and Wong continued their illegal scheme. Just as Parsons had done at SIAD, he abused his authority at NASL by allowing Wong to sell materials removed from the U.S. Navy base. Once again, Wong paid Parsons and his wife a portion of his proceeds from the sales. In total, Wong received approximately $314,000 from selling government property, and he paid Parsons and his wife approximately $56,000. Wong made the illegal payments by checks payable to a company registered to Parsons’ wife, as well as checks payable to Parsons’ daughter.
While carrying out their illegal scheme with Wong, Parsons and his wife also began a separate scheme. Specifically, Parsons allowed his wife to sell materials from SIAD to third-party recycling companies. Parsons’ wife falsely represented to those companies that she and her company had a contract with SIAD or were otherwise authorized by SIAD to sell the recyclers materials removed from the installation. In total, the recycling companies collectively paid Parsons’ wife approximately $175,000.
On March 16, Judge Mueller sentenced Wong to three years of probation and ordered him to forfeit to the United States approximately $314,000.
This case is the product of an investigation by the Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Command. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
Former CFO of ETA Compute Pleads Guilty to Wire FraudRead the Press Release
BOISE – Timothy Semones, 60, of Ketchum, Idaho, pleaded guilty to wire fraud, U.S. Attorney Bart M. Davis announced today. Semones was indicted by a federal grand jury in Boise on February 12, 2020, on ten counts of wire fraud and one count of money laundering. Sentencing is set for December 8, 2020, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
According to court records, Semones admitted that, in 2017 and 2018, he was the Chief Financial Officer (CFO) of ETA Compute, Inc. (ETA), a corporation with its principal place of business in Los Angeles, California. Semones worked remotely from Ketchum. As part of his duties as CFO, Semones had access to ETA’s Wells Fargo Bank business checking account and had the ability to make online transfers of funds from this account.
According to court records, in 2017 and 2018, Semones was in the process of designing and building an approximate 7,000 square foot personal residence located at 29 Lake Creek Drive in Ketchum. Between October 2017 and November 2018, Semones made nine online transfers of funds, totaling $3 million, from ETA’s Wells Fargo Bank business checking account to personal bank accounts over which he had access and control. Semones used the misappropriated funds to pay construction costs for the residence at 29 Lake Creek Drive, and to pay off the balance of a line of credit used to build the residence.
According to court records, in November 2018, when ETA’s Chief Executive Officer confronted Semones about the low balance of funds in ETA’s Wells Fargo Bank business checking account, Semones made false statements about the location and balance of funds. Further, Semones emailed falsified Wells Fargo Bank records – that made it appear that ETA’s bank account had $1.5 million more than it actually did – to ETA’s Chief Executive Officer.
In May 2020, the Lake Creek Drive property was sold. ETA was provided with $3 million, in full restitution for its loss, from the proceeds of the sale.
The charge of wire fraud is punishable by up to 20 years in federal prison, a maximum fine of $250,000, and up to three years of supervised release.
This case was investigated by the Federal Bureau of Investigation.
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Foreign traveler convicted of bringing in child pornographyRead the Press Release
McALLEN, Texas - A 31-year-old Mexican national has pleaded guilty to transportation of child pornography, announced U.S. Attorney Ryan K. Patrick.
On Dec. 10, 2019, Edgar Arevalo-Lara entered the United States from Mexico through the Roma Port of Entry. There, he claimed he was travelling to Dallas for a month. However, authorities noticed he did not appear to have enough luggage or money with him to support his reported length of stay.
Upon further investigation, they discovered 53 images on his phone depicting minors engaged in sexually explicit conduct. He admitted he downloaded child pornography from the internet and knew the images were graphic.
U.S. District Judge Randy Crane accepted the plea and has set sentencing for Nov. 5. At that time, Arevalo-Lara faces a minimum of five and up to 20 years imprisonment and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Kristina Pekkala prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Floyd County Dentist Pleads Guilty to Health Care FraudRead the Press Release
FRANKFORT, Ky.- A McDowell, Ky., man, Denver D. Tackett, DMD, 66, pleaded guilty on Tuesday, before U.S. District Judge Gregory Van Tatenhove, to health care fraud.
According to the plea agreement, Tackett, a licensed dentist who owned and operated Tackett Family Dentistry in McDowell, Ky., submitted false and unnecessary claims to Kentucky Medicaid for reimbursement for dental procedures and services performed at his practice. Tackett admitted to performing, and submitting claims for, dental procedures that were not reasonable or necessary for the diagnosis and treatment of a patient’s illness or injury. For example, Tackett submitted claims for “surgical” extractions when he had only performed a “simple” extraction, a lower reimbursing procedure, or a “surgical” extraction was not medically necessary.
In total, Tackett admitted to submitting more than $95,000 in reimbursement claims to Kentucky Medicaid and its fiscal intermediaries for medically unnecessary dental procedures.
As part of his plea agreement, Tackett agreed to permanently surrender his Drug Enforcement Administration registration and agreed to refrain from seeking registration in the future. Without a DEA registration, healthcare professionals are not able to lawfully prescribe controlled substances. Tackett also agreed to pay restitution of at least $70,000, and agreed to a forfeiture money judgement of $20,000.
Tackett was indicted in April 2019 as part of the Appalachian Regional Prescription Opioid (ARPO) Strike Force initiative.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey T. Scott, Special Agent in Charge, DEA, Louisville Field Division; and Daniel Cameron, Kentucky Attorney General, jointly announced the guilty plea.
The investigation was conducted by DEA, Kentucky Office of the Attorney General, and AHIDTA. The United States was represented by Assistant U.S. Attorney Andrew Smith and Assistant Chief Kate Payerle from the Department of Justice’s Fraud Section.
Tackett is scheduled to be sentenced on December 15, 2020. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
The ARPO Strike Force is made up of prosecutors and data analysts with the Department of Justice’s Fraud Section, prosecutors with the ten U.S. Attorney’s Offices in the Appalachian region, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in Ft. Mitchell, Kentucky, and Nashville, Tennessee, areas, supporting the ten districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Kentucky Medicaid Fraud Control Unit.
Since its inception in October 2018, the ARPO Strike Force, which operates in ten districts, has charged more than 70 defendants who are collectively responsible for distributing approximately 50 million pills. Thus far there have been 31 guilty pleas as a result of ARPO Strike Force’s efforts. The ARPO Strike Force is part of the Medicare Fraud Strike Force Program, led by the Fraud Section. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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Five Charged in Multi-Million Dollar International Customs Fraud SchemeRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Dale Behm; Yong Heng Liang, also known as Colin Liang; Joshua Stanka; Joshua Clark; and Michael Choy with conspiracy, wire fraud, and related charges related to an alleged scheme to submit fraudulent claims for refunds on import duties, announced United States Attorney David L. Anderson, Homeland Security Investigations (HSI) Special Agent in Charge Tatum King, and Internal Revenue Service Criminal Investigations (IRS-CI) Special Agent in Charge Kareem Carter.
The indictment, filed August 12, 2020, and unsealed today, alleges Liang, 34, of Daly City, Calif.; Behm, 75, of Shell Knob, Missouri.; Stanka, 41, of Katy, Texas; Clark, 38, of Fair Oaks Ranch, Texas; and Choy, 47, of Etibicoke, Ontario, Canada, conspired to defraud the United States of as much as $40 million by submitting multiple claims for refunds to recover tariffs that were properly owed on imports. Pursuant to the refund scheme, defendants allegedly used a tire recycling company in Hayward and a shell company, both controlled by Liang. The recycling company had no recycling equipment and shipped containers of thousands of used tires to countries in Asia, often using the name of the shell company. In addition, the defendants forged the shipping documents to support false claims to the government that the exported tires were actually high-quality plastics, allowing defendants to seek refunds paid for other imports.
“We allege that the defendants, using Bay Area Tire Recycling, engaged in a massive environmental fraud. Used tires don’t belong in landfills, either here in California or overseas. Used tires can be recycled, retreaded and reused. By dumping used tires in Korea, India, and Vietnam, and using those exports to support false claims, the defendants cheated consumers, American taxpayers, the shipping companies, and everyone who cares about the environment.“
“Working in partnership with IRS Criminal Investigations and U.S. Customs and Border Protection, HSI will vigorously pursue U.S. based violators who seek to trash our planet and ruin the ecosystem for future generations,” said Special Agent in Charge King.
“This was an extremely well organized network,” said Special Agent in Charge Carter. “They manipulated the system to their advantage, submitted millions in false claims and laundered their ill-gotten gains. IRS CI will continue to work with our law enforcement partners to ensure that anyone involved in these types of schemes will be held accountable for their crimes.”
According to the indictment, at the heart of the scheme were bonded companies such as San Francisco-based raw plastics importer The Pacific Rim Traders, LLC. The indictment alleges that beginning as early as 2014 and continuing through September 2019, the defendants filed fraudulent claims for refunds of customs duties that Pacific Rim and other companies had paid to CBP. In the case of Pacific Rim, the company imported large amounts of plastic resin from its parent company in China and used the resin to manufacture food-grade bottles and other materials. Pacific Rim paid tariffs, or “customs duties,” on the imported plastics. The company also maintained a customs bond with CBP and therefore was entitled to accelerated refund checks, or “drawbacks,” from the U.S. Treasury when it exported qualifying goods.
The indictment describes how the defendants submitted documents allowing Pacific Rim to receive drawbacks by submitting documents that made it appear shipping containers filled with used tires and scrap plastic were loaded with drawback-eligible virgin plastic material. Specifically, Liang, who controlled a company that purported to recycle tires, allegedly arranged for shipping containers loaded with used tires to be shipped to ports in countries in Asia, including the Republic of Korea, India, and Vietnam. Liang then allegedly provided documents, including export bills of lading, to Choy who, at the direction of Stanka, Clark, and others, modified Liang’s and other exporters’ documents to provide to Behm with false invoices. The invoices made it appear that Pacific Rim was selling large amounts of virgin plastic material to companies in Asia, when, in reality, Liang was exporting tires and other material. Behm and others then allegedly directed a San Francisco-based customs broker to use the false documents to prepare customs drawback claims with CBP. The claims sought drawbacks for as much as $655,000 at a time.
Liang is also charged with defrauding a shipping company that had to pay for destruction of containers of tires shipped to Busan, South Korea. According to the indictment, Liang listed a then-dissolved company as the recipient, or consignee, of the tires. The indictment alleges that in 2017, 128 containers shipped by Liang were found abandoned in Busan, a discovery that lead to the initiation of an investigation by federal authorities. A comparison of the export documents to the refund claims suggests the coconspirators altered the paperwork so that “scrap rubber” appeared as “PFTE Resin” and “EFTE Resin.” The indictment alleges that if the actual contents of the containers – scrap rubber tires – had been reported to CBP, Pacific Rim’s drawback claims would not have been granted.
In total, the indictment alleges Pacific Rim received at least $6,400,000 in fraudulent drawbacks, while other clients of Stanka, Clark, Choy, and Liang obtained as much as an additional $34,000,000 in total refunds.
In addition, the indictment alleges the parties laundered the proceeds of the fraud scheme. Pacific Rim allegedly received a percentage of the fraudulent refund claims and paid the remainder to a company owned by Stanka and Clark. Further, Stanka and Choy allegedly transferred hundreds of thousands of dollars to themselves and made frequent payments to Choy for altered documents. Choy, in turn, allegedly paid Liang for copies of bills of lading for his exports of waste tires to South Korea, Hong Kong, Vietnam, and elsewhere.
In sum, the defendants are charged with the following crimes:
Count
Violation
Description
Defendant(s) Charged
1
18 U.S.C. § 286
Conspiracy To Defraud the Government With Respect To Claims
All Defendants
2-16
18 U.S.C. § 287
False, Fictitious, Or Fraudulent Claims
All Defendants
17-28
18 U.S.C. § 1343
Wire Fraud
All Defendants
29-30
18 U.S.C. § 1341
Mail Fraud
Yong Heng Liang
31
18 U.S.C. § 1957
Engaging In Monetary Transactions In Property Derived From Specified Unlawful Activity
Joshua Stanka
32
Joshua Clark
33
Joshua Stanka
34
Joshua Stanka
35
Joshua Clark
36
Joshua Stanka; Joshua Clark
37
Joshua Clark; Michael Choy
38
Joshua Clark
39
18 U.S.C. § 1956(a)(2)(A)
Laundering Of Monetary Instruments
Yong Heng Liang; Michael Choy
40
Yong Heng Liang; Michael Choy
41
Joshua Clark; Michael Choy
42
Yong Heng Liang; Michael Choy
43
18 U.S.C. § 1519
Destruction, Alteration, Or Falsification Of Records In Federal Investigations And Bankruptcy
Yong Heng Liang
Defendant Liang was arrested in Daly City, Calif., and is scheduled to make his initial appearance tomorrow morning, August 26, 2020, in San Francisco. Defendants Stanka and Clark were also arrested in Texas this morning and are scheduled made their initial appearances in federal court in Houston, Texas, and San Antonio, Texas, respectively. Defendant Dale Behm was arrested in Missouri and will make his initial appearance in federal court in Springfield, Missouri.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face maximum sentences as follows:
Violation
Description
Maximum Penalties
18 U.S.C. § 286
Conspiracy To Defraud The Government With Respect To Claims
10 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 287
False, Fictitious, or Fraudulent Claims
10 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 1343
Wire Fraud
20 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 1341
Mail Fraud
20 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 1957
Engaging In Monetary Transactions In Property Derived From Specified Unlawful Activity
10 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 1956(a)(1)(A)
Laundering Of Monetary Instruments
20 Years;
$500,000 fine, or twice the value of property involved in the transaction;
3 Years Supervised Release
18 U.S.C. § 1519
Destruction, Alteration, Or Falsification Of Records In Federal Investigations And Bankruptcy
20 Years;
$250,000 fine;
3 Years Supervised Release
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.The case is being prosecuted by the Special Prosecutions section of the United States Attorney’s Office with the assistance of Beth Margen and Lance Libatique. The prosecution is the result of an investigation by HSI and IRS-CI.
Felon with Multiple Convictions Sentenced to 5+ Years on Firearm ChargeRead the Press Release
TOPEKA, KAN. – A Topeka man who has a record of criminal convictions including voluntary manslaughter and aggravated battery was sentenced today to 64 months in federal prison for possessing a firearm, U.S. Attorney Steven McAllister said.
William F. Bivens III, 42, Topeka, Kan., pleaded guilty to two counts of unlawful possession of firearms by a convicted felon. He admitted officers found him in possession of two firearms, a .40 caliber Glock and a .45 caliber Arms Corp. pistol. Federal law prohibits convicted felons from possessing firearms.
In a sentencing memo filed with the court, prosecutors cited Bivens’ criminal record built over 20 years.
“The defendant has absolutely no desire to live a law-abiding life,” the memo said.
McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service and Assistant U.S. Attorney Jared Maag for their work on the case. This case was prosecuted under Project Safe Neighborhoods, a federal initiative to reduce gun violence.
Federal Inmate Gets More Time for Possessing ContrabandRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 3 months in jail on his conviction of possession of contraband in prison, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on William Hunt, 37. The sentence was imposed to run consecutively to the sentence Hunt is currently serving.
According to information presented to the court, on or about June 11, 2019, Hunt was in possession of contraband, namely a quantity of synthetic cannabinoid NM2201 while an inmate at the McKean Federal Correctional Institution.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Brady commended officers of the McKean Federal Correctional Institution and the Pennsylvania State Police for the investigation leading to the successful prosecution of Hunt.
Drug trafficker implicated in overdose death sentenced to federal prisonRead the Press Release
BRUNSWICK, GA: The second of two men charged in a drug trafficking conspiracy implicated in a woman’s overdose death has been sentenced to more than 15 years in federal prison.
Makeda Atkinson, 46, of Brunswick, was sentenced in U.S. District Court to 186 months in prison by Judge Lisa Godbey Wood after pleading guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Previously, Judge Wood sentenced Donald Adams, 63, of Brunswick, to 126 months in prison on the same charge. Each man also must serve three years of supervised release after completion of their prison terms. There is no parole in the federal system.
“Makeda Atkinson and Donald Adams were small-time drug dealers until their poison fueled the overdose death of a young mother whose body was found by her 5-year-old daughter,” said U.S. Attorney Christine. “Her death should serve as a wakeup call for other drug users to seek help – and as a warning to drug traffickers that we will find and prosecute them.”
According to court documents and testimony, investigators with the Glynn County Police Department and the FBI determined that Atkinson and Adams were selling heroin laced with Fentanyl throughout the Brunswick, Ga., area. During the investigation, a 32-year-old woman who purchased drugs from the men on Dec. 28, 2017, was found dead the next day in her parent’s home, and an autopsy determined the woman died from acute Fentanyl toxicity. Glynn County Criminal Investigator Stephen Lowery took the lead in investigating the woman’s death and, working with the FBI, linked it to Fentanyl-tainted heroin sold by Atkinson and Adams.
“Atkinson and his co-defendant played a significant role in the death of a young mother poisoned by the drugs they were pushing,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No sentence is harsh enough to bring solace to the woman's family, but thanks to the assistance from the Glynn County Police Department we were able to make sure these defendants were held accountable under the law.”
The case was investigated by the FBI and the Glynn County Police Department, and prosecuted for the United States by Assistant U.S. Attorneys E. Greg Gilluly and Jennifer Kirkland.
Dothan Man on Supervised Release from Previous Drug Convictions Sentenced to More Than 14 Years in Prison for New Cocaine and Marijuana ChargesRead the Press Release
Montgomery, Alabama – On Thursday, August 20, 2020, Rasheed Demond Johnson, a 38-year-old from Dothan, Alabama, was sentenced to 151 months in prison after pleading guilty to possession of cocaine and marijuana with the intent to distribute, announced United States Attorney Louis V. Franklin, Sr. Johnson was also ordered to serve six years of supervised release after he completes his prison sentence. There is no parole in the federal system.
According to court records, Johnson was on federal supervised release for a previous drug trafficking conviction when law enforcement began to suspect that he had returned to his old ways. According to testimony during his sentencing hearing, in March of 2017, U.S. Postal Inspectors discovered that two packages from Hong Kong containing a synthetic opioid used in making “Spice” were being mailed to addresses associated with Johnson. Spice is an illegal drug that consists of a mixture of plant material sprayed with synthetic chemicals. Over the next year, law enforcement used various investigative methods, including the controlled purchase of drugs from Johnson, to confirm his involvement in illegal activity. Then, on March 23, 2018, law enforcement executed a search warrant on Johnson’s residence and his suspected drug “stash house” where they found cocaine and marijuana. They also found spray bottles that were consistent with those used to make Spice.
Based upon the March 2018 search, Johnson’s federal supervised release was revoked and, as a result, on September 6, 2019, he was sentenced to 24 months in prison. This two-year sentence will run consecutive to the 151 months he received for his most recent federal drug convictions for a total of 175 months in prison. In pronouncing the sentence on Thursday, the judge determined that Johnson qualified as a career offender under the federal sentencing guidelines based on his substantial criminal history. This can significantly increase the potential sentence for a defendant.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the Alabama Law Enforcement Agency, and the Houston County Sheriff’s Office investigated this case, with assistance from the Drug Enforcement Administration and the Alabama Department of Forensic Sciences. Assistant United States Attorney Kevin Davidson prosecuted the case.
Defendants in Pensacola Dog Fighting Prosecution Sentenced to PrisonRead the Press Release
The last of four defendants to be convicted for their roles in a dog fighting conspiracy was sentenced today in federal court in Pensacola, Florida.
David Lee Moser, 37, of Waynesboro, Tennessee, was sentenced today to 12 months and one day in prison. Moser pleaded guilty to conspiring with the co-defendants to violate the dog fighting prohibitions of the federal Animal Welfare Act.
The other three defendants include:
- James “Tommy” Peek, 68, of Milton, Florida, was sentenced on Aug. 10, 2020, to serve 15 months in prison. Peek had pleaded guilty to unlawfully conspiring to violate the dog fighting prohibitions of the federal Animal Welfare Act, delivering a dog to co-defendant Shane Sprague for purposes of having the dog participate in an animal fighting venture, and possessing a dog for purposes of having the dog participate in an animal fighting venture.
- Haley Cook Murph, 25, of Milton, Florida, was sentenced on Aug. 12, 2020, to serve eight months in prison. Murph had pleaded guilty to unlawfully conspiring to violate the dog fighting prohibitions of the federal Animal Welfare Act, traveling to Alabama to purchase a fighting dog from a known dog fighter, and possessing that dog for purposes of using the dog in an animal fighting venture.
- Shane Patrick Sprague, 36, of Pensacola, Florida, was sentenced on Aug. 13, 2020, to serve 18 months in prison. A jury had convicted Sprague of felony conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act.
Senior U.S. District Judge Roger Vinson in the Northern District of Florida imposed the sentences.
“Our division continues to aggressively pursue those who engage in the cruel and brutal practice of dog fighting, which is often linked with many other forms of violent and organized criminal activity,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Today’s sentencing, along with the prior sentencings of other defendants in this case, sends a strong message that we are bringing to justice those who engage in illegal dog fighting and trafficking of fighting dogs. Anyone who engages in this conduct does so at the risk of significant jail time.”
“Federal prison sentences are absolutely appropriate for these criminals,” said U.S. Attorney Lawrence Keefe for the Northern District of Florida. “Each one of them knowingly contributed to the immeasurable fear, suffering and pain these helpless dogs experienced. The U.S. Attorney’s Office will continue to pursue and prosecute those who violate the Animal Welfare Act to the fullest extent of the law.”
“The cruel and inhumane practice of dog fighting has no place in a civilized society and is against federal law,” said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG). “The outstanding work of the USDA-OIG agents who investigated this case made it possible to bring these operators of a major animal fighting venture and breeders who participate in such activities to justice. We will continue to vigorously investigate individuals who attend, facilitate, or profit from the misery inflicted upon animals during these barbaric fights.”
Evidence at trial, along with admissions made by the pleading defendants in conjunction with their plea agreements, established that Sprague arranged dog fights and trafficked in fighting dogs with Moser and others. Moser admitted that he and Sprague agreed to fight their dogs against one another and to prepare a dog for a dog fight, and had discussed concealing evidence that one of Moser’s dogs had killed another dog.
Peek was one of the suppliers of fighting dogs to the conspiracy. He used his reputation as a prominent dog fighter to sell fighting dogs to others around the country. A dog fighting book commonly seized as evidence in dog fighting investigations has a chapter devoted to Peek, which Peek would autograph and sell to customers. He admitted to having delivered a dog to Sprague, believing that the dog would be used for fighting purposes. He also admitted to selling a dog to an undercover agent after making representations about the fighting “bloodlines” and prior and upcoming dog fights scheduled for some of the dogs on his yard.
Murph’s role was that of a makeshift “veterinarian.” Although Murph at no time possessed a veterinary license, she admitted to offering and performing veterinary and surgical procedures on dogs belonging to members of the conspiracy, treating dogs injured in a dog fight, and surgically removing dogs’ ears, including for the purpose of dog fighting. Two dogs she treated died from their fighting injuries. Murph also admitted to supplying a “bait” animal to test the fighting abilities of one of the dogs of a co-defendant. Finally, Murph admitted to traveling to Alabama to receive a dog from a known dog fighter, and to keeping that dog for the purposes of having the dog participate in an animal fighting venture.
Trial Attorney Ethan Eddy and Assistant U.S. Attorney Ryan Love prosecuted the case. The matter was investigated by the U.S. Department of Agriculture, Office of the Inspector General.
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.
- James “Tommy” Peek, 68, of Milton, Florida, was sentenced on Aug. 10, 2020, to serve 15 months in prison. Peek had pleaded guilty to unlawfully conspiring to violate the dog fighting prohibitions of the federal Animal Welfare Act, delivering a dog to co-defendant Shane Sprague for purposes of having the dog participate in an animal fighting venture, and possessing a dog for purposes of having the dog participate in an animal fighting venture.
Cudahy Woman Sentenced to 90 Months in Federal Prison for Attempting to Provide Material Support to ISISRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on August 24, 2020, Waheba Issa Dais (48) of Cudahy, Wisconsin, was sentenced to 90 months in prison and three years of supervised release following her conviction on one count of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court records, Dais provided support to ISIS in 2018 in the form of expert advice and assistance. According to admissions made in connection with her plea, Dais used hacked Facebook accounts in order to support ISIS. Using these accounts, she pledged her allegiance to ISIS on numerous occasions, communicated with and encouraged other ISIS supporters who described their plans to conduct attacks, disseminated information about explosives and biological weapons, and attempted to recruit new members to ISIS’s cause. For example, Dais posted videos providing step-by-step instructions on how to make an explosive belt and TNT, and she provided a detailed recipe for the poison Ricin. Dais also maintained encrypted social-media channels, where she posted messages encouraging ISIS supporters who could not travel to ISIS-controlled lands to conduct terrorist attacks in their home countries. Through those encrypted channels, she also provided detailed information about explosives, guns, attack planning, and target selection.
“Dais not only personally pledged her allegiance to a terrorist organization but took steps designed to help others cause death and destruction around the world,” said United States Attorney Krueger. “I commend the agents, analysts, and attorneys who worked hard to bring Dais to justice.”
“The FBI’s number one priority is fighting terrorism. This case is a clear example of the influence a foreign terrorist organization such as ISIS, can have right here in Wisconsin. The significant sentencing underscores the serious consequences for those who choose to support terrorist groups and their plans to attack our citizens. The FBI’s Joint Terrorism Task Force (JTTF) is dedicated 24/7 to keeping all Americans safe.” said FBI Special Agent in Charge Robert Hughes.
This conviction and sentence is the result of an extensive investigation by the Federal Bureau of Investigation’s Milwaukee Field Office. The case was prosecuted by United States Attorney Matthew D. Krueger, Assistant United States Attorney Rebecca Taibleson, and Trial Attorney Jennifer Burke of the National Security Division.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Crawford County Man Sentenced to 78 Months for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Travis Johnson, 32, Gays Mills, Wisconsin pleaded guilty and was sentenced today by U.S. District Judge James D. Peterson to 78 months in federal prison for possessing methamphetamine with intent to distribute.
On November 10, 2019, a Crawford County Sheriff’s Department deputy saw an SUV being driven erratically in the village of Soldiers Grove, Wisconsin. The SUV eventually stopped on a side street, and the driver got out and walked away, leaving the driver’s side door slightly open. As the deputy pulled up behind the SUV, he saw the driver attempt to hide on a patio of a nearby residence. When the deputy got out of his squad car, the driver left his hiding place and walked towards the deputy. The deputy identified the driver as Travis Johnson, a person who was on extended supervision for drug-related charges.
The deputy searched Johnson’s SUV and found several grams of Psilocybin mushrooms, a digital scale coated in white residue, hypodermic needles, and gem baggies. The deputy then searched the patio where he originally saw Johnson hiding, and found a large plastic bag that contained 162 grams of methamphetamine.
The charge against Johnson was the result of an investigation conducted by the Crawford County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma.
Convicted Felon Pleads Guilty to Possessing Firearms During Civil UnrestRead the Press Release
RICHMOND, Va. – A previously convicted felon pleaded guilty today to a charge related to his possession of an assault rifle, handgun, ballistic vest, and eight magazines of ammunition after leaving the Robert E. Lee Monument during civil unrest on June 12 in Richmond.
“Project Guardian is the Department’s signature anti-gun violence program,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “One of the key cornerstones of Guardian is holding those accountable who have forfeited their Second Amendment rights due to their status as a felon, drug user, or domestic abuser—amongst other prohibitors. This defendant, due to his own previous felonious conduct and conviction, was prohibited from possessing a firearm and ammunition, and chose to openly flout state and federal law by unlawfully possessing multiple firearms and eight magazines of ammunition.”
According to court documents, on June 12, Matthew Lee Frezza, 37, of Chesterfield, possessed an assault rifle and handgun during the course of a traffic stop during civil unrest. The incident started when Richmond Police Department (RPD) officers observed a caravan of three trucks driving recklessly in the vicinity of the Robert E. Lee Monument. Based on this reckless driving, RPD officers executed a traffic stop on one of the pickup trucks at the intersection of Old Mill Road and Boatwright Road in the city of Richmond. Upon approaching the truck, RPD officers observed three occupants inside, with an individual later identified as Frezza in the front passenger seat of the truck. RPD officers further observed all three occupants of the truck armed with firearms, including assault rifles.
“Firearms in the possession of a convicted felon are always a public safety concern, but especially so when multiple weapons are recovered during a potentially volatile situation, such as civil unrest,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “This defendant’s guilty plea confirms that the unlawful possession of a firearm is a serious offense and we are grateful to U.S. Attorney Terwilliger and our law enforcement partners in Richmond for this successful outcome.”
Based on the firearms and the vehicles prior presence at the Robert E. Lee Monument, RPD Officers requested the three occupants step out of the truck. As Frezza exited the truck, RPD officers took an assault rifle from his possession, removed a handgun and two clips from a holster on his thigh, and removed a ballistic vest from his body that contained six rifle magazines with ammunition. On the scene, RPD Officers determined that Frezza was a convicted felon and placed him under arrest. The firearm possessed by Frezza was a Taurus, Model G3, 9mm caliber, semi-automatic pistol. The assault rifle possessed by Frezza was later determined to be a homemade rifle without a serial number, which contained a loaded, high-capacity magazine.
Frezza pleaded guilty to possession of a firearm by a convicted felon, and faces a maximum penalty of 10 years in prison when sentenced on December 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-78.
Conspiracy to Traffic Stolen Firearms to Persons from Iowa, Illinois, and South Dakota DisruptedRead the Press Release
From on or about November 25, 2018, and continuing until on or about April 23, 2019, MOSES STRICKLAND, JR., ANTHONY HOLEYFIELD and ANTWON HOLEYFIELD (and others known and unknown to authorities) conspired to steal, receive, possess, conceal, store, barter, sell, and traffic as many as 15 stolen firearms.
Moses Strickland, Jr., age 22, from Decatur, Illinois, was sentenced on August 21, 2020 to over six years in prison after a March 11, 2020, guilty plea to one count of conspiracy to possess stolen firearms, one count of possession of stolen firearms, and one count of possession of a firearm by a prohibited person.
Antwon Holeyfield, age 25, from Sioux City, Iowa, was sentenced on January 24, 2020 to over three years in prison after a August 12, 2019, guilty plea to one count of conspiracy to possess stolen firearms and one count of possession of stolen firearms.
Anthony Holeyfield, age 21, from Sioux City, Iowa, was sentenced on January 31, 2020, to 8 months in prison after a September 23, 2019, guilty plea to one count of conspiracy to possess stolen firearms and one count of possession of stolen firearms.
Evidence presented by the United States at the detention, change of plea, and sentencing hearings in this case revealed, on November 26, 2018, Antwon Holeyfield and Strickland broke into a victim’s Woodbury County, Iowa home using an axe. Once inside the two stole valuables including 15 firearms. After leaving the victim’s residence, Antwon Holeyfield and Strickland went to Anthony
Holeyfield’s residence where Anthony Holeyfield helped them move all of the stolen firearms and other stolen items into his house. Then men worked together over the next several months to sell the stolen firearms. The men conducted deals at Anthony Holeyfield’s home and other places to people who lived in and out of Iowa. Stickland even attempted to sell some to the firearms in Chicago, Illinois before his firearms were interdicted by police. Despite law enforcement’s best efforts a number of the stolen firearms are still unrecovered.
Strickland was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Strickland was sentenced to 72 months’ imprisonment. He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Antwon Holeyfield was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 42 months’ imprisonment. He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Anthony Holeyfield was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 8 months’ imprisonment. He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Strickland 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 Sioux City, Iowa and the Chicago, Illinois Police Department, Woodbury County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and 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 19-4027.
Follow us on Twitter @USAO_NDIA.
Colorado Man to Federal Prison for Gun ChargeRead the Press Release
A man who illegally possessed a gun pled guilty and was sentenced August 24, 2020, to more than nine years’ in federal prison.
Robert Anderson, 27, from Denver, Colorado, pled guilty to being a felon in possession of a firearm. Anderson had been previously convicted of three felony crimes in Texas, in 2012, 2015 and 2018, respectively.
Evidence at the detention, change of plea, and sentencing hearing revealed the following. On December 5, 2019, Anderson, who was already a three-time felon, attempted to carjack an innocent victim in front of the Hard Rock Casino and succeeded in robbing the victim at gunpoint. The weapon used was a handgun that was loaded (and designed to use) .410 shotgun shells.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Anderson remains in custody of the United States Marshal until he can be transported to a federal prison. Anderson was sentenced to 112 months’ imprisonment. He must also serve a term of 3 years of supervised release following the imprisonment. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4013. Follow us on Twitter @USAO_NDIA.
Civil Chief Retires After 36 Years of ServiceRead the Press Release
Assistant United States Attorney John Gaupp announced his retirement after more than 36 years of service with the Department of Justice. In 1994, Mr. Gaupp was named as the first Chief of the Civil Division of the United States Attorney’s Office, Middle District of Louisiana, and currently serves in that capacity. In addition to serving as the division chief for more than thirteen years, he has also served as the office’s Senior Litigation Counsel and Ethics Advisor.
Mr. Gaupp has participated in a variety of notable litigation, substantially impacting Baton Rouge and the surrounding area. Early in his career, Mr. Gaupp helped plan and obtained warrants for the contemporaneous seizure by the IRS of property from Adler “Barry” Seal, a major drug smuggler for the notorious Medellin Cartel. He also worked with Government officials in bringing suit under the Sherman Act to break the alleged monopoly on OB/GYN services then held by the Woman’s Hospital Foundation.
In the mid-1990s, Mr. Gaupp actively participated in settlement negotiations in civil rights litigation challenging the formation and continued existence of the Metropolitan Council, which led to the adoption of a redistricting plan. Mr. Gaupp also served as local counsel for the U.S. Department of Justice in all school desegregation cases in this federal district, including the cases in East Baton Rouge, Ascension, and Livingston Parishes.
Mr. Gaupp worked on numerous environmental cases brought by the Department of Justice on behalf of the EPA. Significantly, he played a major part in negotiations with the City of Baton Rouge that led to the Consent Decree addressing the city’s then crumbling sewer system, which ultimately led to the overhauling and redesigning of its sewer system. He also worked in brokering a deal between the U.S. Department of Justice, the City of Baton Rouge, and residents living in close proximity to the north Baton Rouge sewerage treatment plant to relocate residents whose living conditions were drastically effected by the treatment plant. Mr. Gaupp served on the litigation team in the case against Louisiana Generating, LLC (“La Gen”) for asserted Clean Air Act violations at its Big Cajun II plant, resulting in La Gen reducing its emission and funding other environmental mitigation projects. Using the Government’s authority to take property through eminent domain proceedings, Mr. Gaupp acquired the property needed by the Corps of Engineers to build the Lilly Bayou Control Structure, thereby clearing the way to begin construction of the Comite River Diversion Canal.
Beyond litigating cases, Mr. Gaupp is co-drafter of the legislation enacted as the Federal Debt Collections Procedures Act, which provides the legal procedures for the enforced collection of federal debts throughout the country. He has also served as a nationwide mentor for Assistant U.S. Attorneys in the area of bankruptcy law.
Mr. Gaupp said, “I don’t have any definite plans as to how I will spend my retirement. I am sure that I will find multiple causes to throw myself into; but for now – after almost more years on the front lines of federal litigation than I can remember – I’m looking forward to a little ‘rocking chair therapy’ on my back patio with my wife who I adore.”
United States Attorney Brandon J. Fremin stated, “As noted by John’s impressive career as a public servant, he has been an incredible asset not only to this office, but to the Department of Justice, and the many communities we serve in the Middle District. John is an outstanding attorney who would have enjoyed great success in any endeavor he pursued, but he chose to devote his professional life to public service seeking justice and protecting the rights of the United States and its citizens. John’s absence will surely be felt, and I wish him all of the best in retirement.”
Chiropractor Sentenced to Nearly 4 Years in Federal Prison for Scheme that Fraudulently Billed Labor Union Health Plan $4.8 MillionRead the Press Release
LOS ANGELES – A chiropractor was sentenced today to 46 months in federal prison for conspiring to defraud a labor union’s health care benefit plan by offering kickbacks to patients for attending the clinic and by submitting approximately $4.8 million in sham billings.
Mahyar David Yadidi, 38, of West Los Angeles, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $1,976,832 in restitution.
In November 2019, Yadidi pleaded guilty to one count of conspiracy to commit health care fraud.
Yadidi operated Philips San Pedro Chiropractic – formerly known as Synergy Healthcare and Wellness Center – in San Pedro. From July 2016 to October 2018, Yadidi operated a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) health care benefit plan. Yadidi worked with co-conspirators Ivan Semerdjiev, 41, of Irvine, a chiropractor who worked for Yadidi, and Julian Williams, 45, of San Pedro, a personal trainer who also worked for Yadidi.
ILWU-PMA health care plan members were induced by Yadidi to visit his clinic with offers of $50 in cash for each visit, according to a one-count criminal information filed in this case. Yadidi also paid plan members to allow him to bill the plan when members did not visit his clinic.
Yadidi offered monetary incentives to Williams, Semerdjiev, and other employees, as well as to patients, to recruit additional plan members to visit his clinic. Williams induced plan members to visit the clinic by falsely informing them that they could receive personal athletic training services from him that the plan would pay for.
Once plan members either visited Yadidi’s clinic or agreed to allow him to submit claims to the plan for non-existent visits, Yadidi billed and caused his employees to bill the plan for services that were not rendered, services that were not medically necessary, and chiropractic and physical therapy services that were performed by
Williams, who was neither licensed nor otherwise qualified to be performing those services.
At his instruction, Yadidi’s employees falsified records, including sign-in sheets that listed the dates plan members purportedly received services from Philips Chiropractic. Yadidi instructed Semerdjiev to falsify patient files to support the clinic’s fraudulent billing. Yadidi and his co-conspirators also created false entries in the name of plan members’ relatives, knowing that the union’s health care benefit plan allowed them an additional number of covered visits as well.
Yadidi continued to operate his scheme after he was terminated as an authorized provider by the ILWU-PMA plan in August 2017, six months after it conducted an audit of his clinic.
To continue the conspiracy, Yadidi changed the name of his clinic – which previously was called “Synergy” and falsely held out another person as the clinic’s primary owner and operator, when in fact, Yadidi continued to own, operate, and financially benefit from the clinic. Yadidi continued to submit claims to the plan in the sham owner’s name.
During the conspiracy’s duration, Yadidi’s clinic submitted $4,756,284 in fraudulent claims to the ILWU-PMA plan, for which the plan paid $1,976,832.
Williams and Semerdjiev each pleaded guilty to one count of conspiracy to commit health care fraud and were sentenced to six months and one year in federal prison, respectively.
This matter was investigated by the U.S. Department of Labor, Office of Inspector General, and the U.S. Department of Labor, Employee Benefits Security Administration.
This case was prosecuted by Assistant United States Attorney Alexander C.K. Wyman of the Major Frauds Section.
Cayuga County Man Charged with Receipt of Child Pornography and Possession of a Firearm by a FelonRead the Press Release
SYRACUSE, NEW YORK – Richard J. Potter, Jr., age 55, of Springport, New York, was arrested today on charges of receipt of child pornography and possession of a firearm by a convicted felon, announced United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Potter appeared today before United States Magistrate Judge Thérèse Wiley Dancks. A registered sex offender based on a 2003 state felony conviction related to the sexual abuse of a minor, Potter was ordered detained pending the resolution of his case.
The criminal complaint unsealed today alleges that Potter used a computer to receive images and videos of child pornography from the Internet, and stored thousands of digital copies of those images and videos on cellular telephones. In addition, Potter is alleged to be in possession of a 12-gauge shotgun following a previous felony conviction.
If convicted of receipt of child pornography, Potter faces a mandatory minimum sentence of fifteen years and a maximum term of 40 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. The charge of unlawful possession of a firearm by a convicted felon carries a maximum term of imprisonment of ten years, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation’s Mid-State Child Exploitation Task Force, the New York State Police Bureau of Criminal Investigation (BCI) and Computer Crimes Unit (CCU), and the Cayuga County District Attorney’s Office. The case is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
California man sentenced for blackmailRead the Press Release
MISSOULA — A California man who admitted blackmailing an individual for years by threatening to inform on the person if he wasn't paid money was sentenced today to five years of probation, U.S. Attorney Kurt Alme said.
Bryan Gregg Waterfield Nash, 57, of Woodside, CA, pleaded guilty in May to blackmail, a misdemeanor.
U.S. Magistrate Judge Kathleen L. DeSoto presided.
The prosecution said in court documents that the blackmail began in December 2013 and ran until about June 2019 in Whitefish and in northern California. Nash knew the victim, identified as John Doe 1, for many years. Beginning in about December 2013, Nash frequently communicated with John Doe 1 in person and electronically and with his family, friends and colleagues.
Nash demanded money from John Doe 1, accused the victim of committing federal crimes, including tax fraud, and repeatedly asked for financial assistance.
When John Doe 1 stopped responding to Nash, Nash intensified communications with the victim's family, friends, employees and privately-retained lawyers. Many of the messages referenced the victim being investigated by the IRS or FBI, and Nash repeatedly asked to meet with the victim's lawyers to "settle" with the victim. Nash's requests to settle with John Doe 1 were in consideration for not filing a civil complaint against the victim or reporting his alleged crimes to law enforcement.
Assistant U.S. Attorneys Tim Racicot and Ryan Weldon prosecuted the case, which was investigated by the FBI.
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Big Stone Gap Man Sentenced for Role in Methamphetamine ConspiracyRead the Press Release
ABINGDON, Va. – Jeremy Mallory, a Big Stone Gap man who was one of 21 defendants charged with conspiring to distribute 500 grams or more of methamphetamine, was sentenced yesterday in U.S. District Court in Abingdon to 168 months in federal prison, United States Attorney Thomas T. Cullen announced.
Mallory, 42, pleaded guilty in 2019 to conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine.
According to court documents, Mallory was one of the 21 defendants who conspired to distribute methamphetamine in Lee and Wise counties, and elsewhere, between July 1, 2016 and May 1, 2019. To date, all 21 defendants have been convicted via plea agreement or jury trial.
A complete list of the defendants and charges can be found here.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Southwest Virginia Drug Task Force, which is comprised of the Scott County Sheriff’s Office, Lee County Sheriff’s Office, Wise County Sheriff’s Office, Dickenson County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and the Virginia State Police. Assistant United States Attorneys Lena Busscher, Anthony P. Giorno, and Jonathan Jones prosecuted the case for the United States.
Baltimore County Felon Sentenced to 12 Years in Federal Prison for Drug Distribution Charges and Illegal Possession of FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III, today sentenced Deandre Laquan Jones, a/k/a “Cuz,” age 27, of Towson, Maryland, to 12 years in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances, possession with intent to distribute drugs near a school, and to being a felon in possession of firearms and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD).
According to his guilty plea, from December 2018 to February 2019, Jones distributed fentanyl, heroin, and cocaine. On January 31 and again on February 11, 2019, Jones sold an undercover Baltimore County Police officer two “packs” of heroin—each containing 25 gel capsules—for $375.
On February 22, 2019, law enforcement executed a search warrant at an apartment in Parkville, Maryland, which was rented by Tyrell Curry, Jones’ co-conspirator, and was located within 1,000 feet of a Baltimore County elementary school. Jones used the apartment to distribute fentanyl, heroin, crack cocaine, and powder cocaine. From the apartment, law enforcement recovered two baggies containing a total of approximately 345 grams of fentanyl, cutting agents, digital scales, two kilogram presses, and bags of packaging materials. In addition, officers found documents and an identification card belonging to Jones, and two empty .40-caliber extended magazines, from which the BCPD Forensic Services Section recovered a latent print of Jones’ left thumb. In the living room, officers located a coffee table that had been custom-manufactured to contain a hidden compartment secured by a wireless lock. Investigators later learned that the table had been purchased by, and shipped to, Deandre Jones at the Parkville apartment. When the hidden compartment in the table was opened, law enforcement recovered plastic bags containing 16 grams of fentanyl, 175 grams of heroin, 185 grams of crack cocaine, and 173 grams of powder cocaine, as well as a .410-caliber handgun and 19 rounds of .410-caliber ammunition.
That same day, BCPD officers executed a search warrant at Jones’ residence and recovered three iPhones in the bedroom, and an AK-47 loaded with 30 rounds of ammunition in Jones’ nightstand. The firearm had been reported stolen in October 2018. In Jones’ office, officers found a money counter, $13,700 in cash, a one-kilogram block of fentanyl, a loaded 9mm pistol, which had been reported stolen in April 2017, a book bag that contained eight plastic bags containing a total of 1.9 kilograms of cocaine, and five additional bags containing 138 grams of heroin. A search of Jones’ vehicles recovered two additional loaded firearms and a fourth iPhone.
A subsequent forensic examination of Jones’ iPhones recovered message between Jones and Curry relating to drug trafficking, including discussions about the Parkville apartment, potential customers, sources of supply, possible police surveillance, and ammunition.
As part of his plea agreement, Jones has agreed to forfeit assets obtained as a result of, or used to facilitate Jones’ drug trafficking, including: $13,708 in cash; a 2013 Lexus GS 350; an AK-47 and 30 7.62x39mm cartridges; a double-action revolver and 19 .410-caliber cartridges; two 9mm pistols and 26 9mm cartridges; and a .40-caliber pistol and 13 .40-caliber cartridges.
Jones’ co-defendant, Tyrell Daronte Curry, a/k/a “Mike,” age 28, of Baltimore, previously pleaded guilty and was sentenced to 51 months’ imprisonment, to be followed by 4 years of supervised release.
United States Attorney Robert K. Hur commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher J. Romano, who prosecuted the case.
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Armed Hartford Drug Trafficker Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DANNY CASTILLO, 28, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 128 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and other drugs, and possessing a short-barrel shotgun.
According to court documents and statements made in court, in August 2018, the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department received information that Castillo and his associate, Pascual Ivan Medina, were distributing large quantities of fentanyl in and around Hartford. An investigation revealed that Castillo used his family business, the Albany Grocery Store located at 1160 Albany Avenue in Hartford, to conduct narcotics transactions. Between October 2018 and January 2019, investigators made multiple controlled purchases of distribution quantities of fentanyl from Castillo, sometimes with Medina’s assistance, at both the Albany Grocery Store and Castillo’s apartment on Woodland Street in Hartford.
On January 25, 2019, investigators conducting surveillance observed Alexis Velez arrive by car at Castillo’s apartment building, interact with Castillo, enter his apartment, exit the apartment and then drive away from the location. After a Hartford Police cruiser conducted a traffic stop of Velez’s vehicle, a search of Velez’s person revealed quantities of cocaine and crack cocaine, and a search of a bag that Velez was seen carrying as he entered and exited Castillo’s apartment revealed approximately 102 grams of a mixture of fentanyl and heroin, 46 grams of cocaine, 15 grams of crack, two ounces of marijuana, and $4060 in cash.
Castillo was arrested a short time later at his Woodland Street apartment. A search of the residence revealed approximately 436 grams of fentanyl, 229 grams of heroin, 231 grams of a mixture with both fentanyl and heroin, 543 grams of a mixture of tramadol and methamphetamine, numerous items used to process and package narcotics for distribution, a loaded short-barrel shotgun, and a loaded Smith & Wesson .357 revolver. Investigators later recovered a third firearm from Castillo’s residence.
U.S. Attorney Durham noted that the quantity of the fentanyl and heroin seized from Castillo would have produced at least 35,000 dose bags of the drugs.
Castillo has been detained since his arrest. On February 11, 2020, he pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl, and possession of an unregistered short-barrel shotgun.
Medina and Velez pleaded guilty to related charges. On January 23, 2020, Medina was sentenced to 30 months of imprisonment. Velez awaits sentencing.
The Federal Bureau of Investigation’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Ames Man Sentenced to Federal Prison for Tax FraudRead the Press Release
Des Moines, Iowa – On August 25, 2020, Scott Donald Griffen, age 57, of Ames, was sentenced by United States District Court Senior Judge Robert W. Pratt to four months in prison for the willful failure to account for and pay over employment taxes, announced United States Attorney Marc Krickbaum. Griffen was ordered to pay restitution in the amount of $150,297.52, with interest.
On November 15, 2019, the United States Attorney’s Office filed a one-count Information that charged Griffen with failure to account for and pay over employment taxes. Griffen pleaded guilty to the offense and admitted he failed to pay employment taxes related to his two Ames businesses, Corner Pocket and DG’s Tap House. Griffen admitted between 2012 and 2016 he failed to pay the IRS more than $150,000 in employment taxes.
“If you don’t pay your taxes, you can go to federal prison. It’s that simple,” said United States Attorney Marc Krickbaum. “Scott Griffen failed to pay employment taxes for four years, and he continued even after he was warned by the IRS. He deserves the prison term imposed today.”
“While operating his business from 2012 to 2016, Mr. Griffen willfully failed to pay over to the IRS any of the employment taxes he had withheld from his employee’s wages; he took them for his own purposes,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation Division in the St. Louis Field Office. “IRS CI will continue to use its financial expertise to investigate those individuals who knowingly and willfully evade their tax obligation.”
This case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Algona Man Found Passed Out with Loaded Weapons Sentenced to Federal Prison for Gun ChargesRead the Press Release
A man who illegally possessed stolen and loaded guns was sentenced on July 30, 2020 to more than five years in federal prison.
James Patrick Murphy, age 38, from Algona, Iowa, received the prison term after a February 26, 2020, guilty plea to two counts of being a felon, drug user, and domestic abuse misdemeanant in possession of a firearm, and one count of possession of a stolen firearm.
Evidence presented by the United States at the detention, change of plea, and sentencing, hearings revealed Murphy was a felon, recidivist domestic abuser, and drug user. Each of these three facts precluded Murphy from lawfully possessing guns. Murphy’s unlawful possession was discovered when law enforcement received a report of a person who appeared to be sleeping behind the steering wheel of his pickup truck. Law enforcement arrived at the reported location in Algona, Iowa, and recognized the person as Murphy. As law enforcement approached the pickup, they observed an AR-15-style rifle and a semiautomatic pistol on the seat next to the defendant. Murphy was removed from the pickup. Items seized from defendant’s truck included the AR-15 rifle with a fully loaded 20 round magazine, a scope, a Taurus pistol with a fully loaded magazine and a round in the chamber, a small baggie of methamphetamine, a pouch containing a cellophane wrapper with four small pills and four guitar picks, a United States passport for the defendant, and a cellphone. Subsequent investigations revealed that the guns were stolen.
Murphy was sentenced in Sioux City by United Stats Court Chief Judge Leonard T. Strand. Murphy was sentenced to 64 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Murphy 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 its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the United States Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kossuth County Sheriff’s Office and Algona, Iowa 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 19-3042.
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Albuquerque man makes first appearance in federal court on gun chargesRead the Press Release
Albuquerque, N.M. – Eduardo “Lalo” Aguilar, 31, of Albuquerque, New Mexico, made an initial appearance on gun charges in federal court on August 20 before a detention hearing yesterday, at which the Court concluded that the he must be detained pending trial. Aguilar has been charged with being a felon in possession of a firearm and ammunition.
Agents with the Federal Bureau of Investigation’s Violent Crime Task Force (VCTF), working in conjunction with investigators from the Bernalillo County District Attorney’s Office, arrested Aguilar on August 13. According to a criminal complaint, while executing a warrant to search Aguilar’s apartment, investigators from the VCTF and the District Attorney’s Office located a loaded firearm, which, as felon, Aguilar cannot legally possess.
A criminal complaint is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted as a felon in possession of a firearm and ammunition, he faces up to 10 years in prison.
The case is being investigated by the FBI VCTF and the District Attorney’s Office, and prosecuted by Assistant U.S. Attorney Letitia Simms as part of Operation Legend, a Department of Justice initiative to assist cities with persistently high crime rates. Operation Legend is a sustained and coordinated law enforcement initiative in which the U.S. Attorney’s Office and federal law enforcement agencies work with state and local law enforcement to prosecute gun and dangerous crimes arising in the City of Albuquerque.
Albuquerque man makes court appearance on federal carjacking chargesRead the Press Release
ALBUQUERQUE, N.M. – Elias Bencomo-Morales, 42, of Albuquerque, New Mexico, made an initial appearance in federal court on Friday, August 21, and has been charged federally with carjacking for allegedly using a gun to force a woman and her two minor children out of their vehicle in a Taco Bell drive-thru lane. At a hearing today, the Court ordered that he will remain detained for trial.
A federal indictment and complaint charge Bencomo-Morales also with using, carrying and brandishing a firearm during and in relation to a crime of violence. The Albuquerque Police Department arrested Bencomo-Morales, who was transferred to the Federal Bureau of Investigation Violent Crime Task Force to face federal charges on August 19, 2020.
Bencomo-Morales is accused of approaching a vehicle waiting in the Taco Bell drive-thru lane in southwest Albuquerque on September 17, 2019. He allegedly pulled on the driver's-side door handle before the driver and her two children, 5 and 1 year old, got out of the vehicle at gunpoint. Bencomo-Morales allegedly drove away in the vehicle. The following day, Albuquerque police pulled the SUV over because the license plate was registered to a different vehicle, and Bencomo-Morales was taken into custody.
A criminal complaint or indictment is only an accusation. A defendants is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the FBI Violent Crime Task Force and the Albuquerque Police Department. Assistant U.S. Attorney Timothy Trembley is prosecuting the case.
Acting Manhattan U.S. Attorney Announces Securities and Wire Fraud Charges Against Founder and Former CEO of Pharmaceutical CompanyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that SEPEHR SARSHAR was charged this morning with securities fraud and other fraud offenses in connection with SARSHAR’s scheme to provide inside information to his friends and family so they could trade in the securities of a pharmaceutical company SARSHAR founded and of which he was a member of the board of directors.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Sepehr Sarshar, aware of an impending tender offer for his company, tipped off friends and a close relative, enabling them to reap nearly three-quarters of a million dollars in illegal profits. My Office and the FBI remain resolute in our commitment to policing and prosecuting insider trading.”
FBI Assistant Director William F. Sweeney Jr. said: “It seems intuitive that material nonpublic information should never be shared with the public, or traded on, prior to shareholder knowledge. Still, time and time again we see where those privy to a company’s inside information pass it on to family and friends. As alleged today, Sepehr Sarshar, a founder and board member of Auspex Pharmaceuticals, Inc., tipped off his own inner circle to an anticipated tender offer for the company. His associates traded on this information, and profited by the hundreds of thousands. Upsetting the market balance in this way puts all investors at a disadvantage. I think the message here is pretty clear – insider trading is risky business, and it’s a crime that’s typically met with hefty fines or significant jail time.”
According to the Complaint[1] unsealed today Manhattan federal court:
Between in or about January 2015 and March 2015, SARSHAR, a founder, former chief executive officer, and member of the board of directors of Auspex Pharmaceuticals, Inc. (“Auspex”), misappropriated material nonpublic information (“MNPI”) from Auspex relating to an anticipated tender offer for Auspex by Teva Pharmaceutical Industries Ltd. (“Teva”). SARSHAR passed that MNPI on to friends and family – including a college friend, his then girlfriend, another long-time friend, and a close family relative (collectively, the “Associates”) – so they could execute profitable securities trades based on that MNPI, and otherwise caused the Associates to execute trades based on the MNPI he misappropriated. In turn, the Associates’ trading in the shares of Auspex generated an aggregate of more than approximately $700,000 in illicit profits.
To conceal his illegal scheme, SARSHAR later lied to the Financial Industry Regulatory Authority (“FINRA”) in an investigation conducted by FINRA into insider trading in Auspex securities during the period preceding Teva’s tender offer for Auspex. Among other things, SARSHAR falsely stated that he could recall no contact with two of the Associates during the period preceding the tender offer whereas, in truth and in fact, SARSHAR had substantial communications with those individuals, including regarding the forthcoming tender offer.
SARSHAR will be presented later today in federal court in San Diego.
* * *
SARSHAR, 53, of Encinitas, California, is charged with one count of securities fraud, one count of wire fraud, and one count of fraud in connection with a tender offer. The securities fraud count carries a maximum sentence of 25 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The fraud in connection with a tender offer count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI and thanked the Philadelphia Regional Office of the SEC, which has filed civil charges against SARSHAR in a separate action. She added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Elisha J. Kobre and Martin Bell are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
60-Year Old Dubuque Man Who Persuaded Teenager to Send Him Nude Photos Sentenced to Federal PrisonRead the Press Release
A Dubuque man, responsible for persuading a 15-year old girl to send him nude photos and videos, was sentenced today to 15 years in federal prison.
Mark Curtis, Sr., age 60, from Dubuque, Iowa, received the prison sentence after a March 4, 2020 guilty plea to one count of sexual exploitation of a child and one count of receipt of child pornography.
Information disclosed at his plea and sentencing hearings showed that between August 2018 and October 2018, Curtis persuaded a 15-year old girl, who lived outside the state of Iowa, to send him nude photos and videos of herself. She sent the pictures and videos via Facebook. Some images contained the young girl engaging in sexually explicit conduct, which Curtis had asked her to engage in. Curtis knew the girl was a minor. At one point, the girl told Curtis that she was studying to get her learner’s permit, to which Curtis replied he wished she was older. In total, investigators found approximately 44 files containing images sent between the girl and Curtis.
Curtis was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Curtis was sentenced to 180 months’ imprisonment. He was ordered to make a payment of $200 to the special assessment fund. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Dubuque County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1047.
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33 Inmates and Accomplices Charged with Illegally Obtaining Coronavirus Unemployment BenefitsRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady and Pennsylvania Attorney General Josh Shapiro today announced that 33 individuals, including inmates at eight state and county jails and prisons in western Pennsylvania and their accomplices, have been charged in federal and state criminal complaints for illegally obtaining Coronavirus Aid, Relief, and Economic Security (CARES) Act unemployment benefits that contained false or fraudulent statements, and to which they were not entitled.
U.S. Attorney Brady stated, "The unprecedented scope and audacity of this inmate unemployment compensation fraud is appalling. These benefits were intended to help Pennsylvania workers make it through a difficult time. These inmates and their accomplices took advantage of this national emergency to line their pockets through fraud. Their conduct is despicable at any time, but particularly in a time of a national emergency. As these charges make clear, this conduct will not go unpunished, and my office will continue to work with our federal, state and local law enforcement partners to bring these criminals and their co-conspirators to justice. The message to those who engaged in this fraud is clear: if you submitted a fraudulent application for unemployment benefits, withdraw it. If you got a check or debit card through fraud, return it. If you don’t, expect to hear a knock on your door very soon."
"These defendants took advantage of a public health emergency to cash in on the backs of working people across our Commonwealth. They rip-offed off a program meant for everyday people whose lives were uprooted by COVID-19, some doing so from jail cells in local Pennsylvania prisons," said PA Attorney General Shapiro. "Our work here is not done. We will continue to root out scammers taking advantage of a system put in place to help during a trying time."
"An important mission of the Office of Inspector General is to investigate allegations of fraud that threaten the integrity of the Unemployment Insurance program. We will continue to work with our law enforcement partners to investigate this alleged criminal activity," said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
"Defrauding U.S. government programs intended to provide economic relief to disaster victims is not simply a matter of theft of U.S. tax dollars. It is far more: it undermines the security and wellbeing of our most vulnerable communities at a time when they are in the greatest in need of assistance," said Timothy Burke, Special Agent in Charge of the U.S. Secret Service’s Pittsburgh Field Office. "The U.S. Secret Service is committed to working with all of our partners, both in government and in the financial sector, to detect and arrest all those that engage in such crimes."
"The people accused today cooked up this scheme from behind bars to steal unemployment benefits that should’ve gone to families in our area who are out of work and trying to feed their families," said FBI Pittsburgh Special Agent in Charge Michael Christman. "At a time when people across the country are already struggling, this group capitalized on the hardships created by the pandemic. We know there are more out there and we will not stop our investigation until those who thought they could get some free money are brought to justice."
The following individuals were named in 16 separate criminal complaints filed this week in the U.S. Court for the Western District of Pennsylvania:
Levi Stroud, 24, incarcerated at Pennsylvania State Correctional Institution (SCI) -Greene since approximately January 22, 2018, and Christina Marie Weigner, of 389 Steubenville Pike, Burgettstown, PA 15021, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements and conspiracy to commit fraud in connection with a major disaster or emergency benefit.
Anthony Lee, 40, incarcerated at Allegheny County Jail since September 29, 2019, and Amara Ramsey (Lee’s girlfriend and claim filer), 38, of 2418 Aliquippa Street, Apt. 404, Pittsburgh, PA 15213, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Lamont Wilford, 49, incarcerated at Allegheny County Jail since November 28, 2019; Casey Norrick (Wilford’s girlfriend), 44, of 9 Spruce Street, Natrona Heights, PA; and Amara Ramsey (claim filer) 38, of 2418 Aliquippa Street, Apt. 404, Pittsburgh, PA 15213, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Orlando Grandison, 30, incarcerated at Allegheny County Jail since August 7, 2019; Nathaniel Weatherspoon, 28, currently incarcerated at Allegheny County Jail and has been since approximately October 5, 2017; and Andrea Zenmon (claim filer), 24, of 217 Rolling Woods Drive, North Versailles, PA 15137, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Marcenia Massey, 38, of 221 Ormsby Avenue, Pittsburgh, PA 15210, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. The claim was filed in the name of her incarcerated son, Isaiah Sterdivant, who is currently incarcerated at ACJ and has been since approximately March 20, 2019.
Shicon Jordan, 46, an SCI-Greene inmate incarcerated since March 12, 2015; Dennis Hill (aka Dennis Jordan - brother and currently on parole until November 20, 2020) 33, of Philadelphia, PA; and Niya Hill (claim filer), 35, of 511 Lloyd Court, Johnstown, PA 15906, are charged with conspiracy to commit fraud in connection with a major disaster or emergency benefit, and knowingly filing, or aiding and abetting the filing, claims for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Jerome Dockblandi Poole, 33, an inmate at SCI-Greene and Tracy Ann Stankiewicz (ex-girlfriend and claim filer), of 1927 Woodmont Avenue, New Kensington, PA, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.
Joseph Thomas Gainer, 28, an SCI-Greene inmate; Jonetta Meneffe Davis (friend) of 1410 Franklin Avenue, Pittsburgh, PA; and Joshua Calibe Lowry (aka El Rocco, claim filer), are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious and fraudulent statements; Gainer, Davis and Lowry are also charged with conspiracy to commit fraud in connection with a major disaster or emergency benefit; and Gainer is charged with making a materially false, fictitious, or fraudulent statement or representation to federal agents of the U.S. government.
Amasa Lamont Camp, 23, an inmate at SCI-Fayette, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Camp used Global Tel-Link electronic messages to provide his personal identifiers to a member of his family for the purpose of fraudulently applying for PUA benefits on his behalf.
Izona Punch, of 7403 Race Street, Pittsburgh, PA, is charged with knowingly filing a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements in the name of SCI - Fayette inmate "RP" without his knowledge.
Jerrell Huddleston, who was incarcerated at Lawrence County Jail from approximately March 17, 2020 to July 24, 2020, then transferred to the Northeast Ohio Correction Facility where he is currently located, and Kalaurie Elahdy (claim filer), age, of 101 W. Ridge Ave., Sharpsville, PA 16150, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements and conspiring to commit fraud in connection with a major disaster or emergency benefits.
Tylan Huddleston, 25, incarcerated at Lawrence County Jail since June 5, 2020, and Paris Davis (claim filer), 23, of 10 W. Reynolds Street, New Castle, PA, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements; and Huddleston and Davis are also charged with conspiring to commit fraud in connection with a major disaster or emergency benefit.
Clifford Yoders, 40, incarcerated at Butler County Prison since June 11, 2020, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Yoders used a jail phone to direct a relative to file the claim.
Lisa Lutz, 60, of 113 Snow Shoe Lane, Greensburg, Pennsylvania 15601, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. The claim was filed on behalf of her daughter, Terra Rager, an inmate at Westmoreland County Prison. According to the complaint, the funds received were utilized to pay her daughter’s expenses, including her attorney fees and her rent and to make deposits onto her commissary at the Westmoreland County Prison.
Gary Clanton, 33, an inmate at SCI-Fayette since July 3, 2014, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Clanton used Global Tel-Link electronic messages to provide his personal identifiers to an unidentified male for the purpose of fraudulently applying for PUA benefits on his behalf.
Jamelle Fairfax, 32, an inmate at SCI-Fayette since March 30, 2020, and he was still incarcerated at the time of the application filing, and Amanda Fairfax (wife and claim filer), 35, of Uniontown, PA 15402, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements, and with conspiring to commit fraud in connection with a major disaster or emergency benefit.
According the affidavits filed in these cases, the Pandemic Unemployment Assistance program is a new federal program created as part of the CARES Act. The PUA program provides unemployment benefits to workers who have lost their jobs as a result of the coronavirus pandemic. In Pennsylvania, the PUA program is administered by the Pennsylvania Department of Labor & Industry (DLI), but its benefits are funded in large part by the federal government. PUA benefits are paid in connection with the President’s declaration that the COVID-19 pandemic constitutes an emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
Individuals are only eligible for PUA benefits if they are both unemployed for reasons related to the COVID-19 pandemic and available to work. In order to receive benefits, an individual must access the PUA website and file a PUA claim. The applicant is required to enter personally identifiable information as well as answer the eligibility questions. Individuals who are serving a sentence of incarceration, or who are detained pending a criminal trial, are neither available for work nor unemployed for reasons related to the COVID-19 pandemic. As a result, they are not eligible to receive PUA benefits for the period of their incarceration.
The criminal complaints detail the defendants’ alleged roles in the acquisition of PUA benefits. In general, the inmates used jail phones or other inmate communications to direct or assist persons outside the prison to file claims online using the inmate’s accurate Personal Identifying Information (PII), including full name, date of birth, and Social Security number, but falsely asserting that the inmate is available to work and is unemployed as a result of the COVID 19 pandemic. The benefits were then directed to the applicants’ on-file addresses outside of the correctional facility. Once approved, applicants were required to provide weekly certifications to continue to receive PUA program benefits.
Several of the federal complaints filed contain transcripts of jail calls or other inmate communications that allege the defendants knew that the statements or representations being made were false, and that financial benefits would be awarded.
Title 18, United States Code, Section 1040(a)(2), prohibits fraud in connection with emergency benefits; Title 18, United States Code, Section 371, prohibits two or more people conspiring to commit a federal crime or defraud the United States; and Title 18 United States Code, prohibits lying to a federal law enforcement agent in the course of an investigation. For a violation of Title 18, United States Code, Section 1040(a)(2), the law provides for a maximum total sentence of 30 years in prison, a $250,000 fine, or both. For violations of Title 18, United States Code, Section 371 and Title 18, United States Code, Section 1001, the law provides for a maximum total sentence of five years in prison, a $250,000 fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Brendan McKenna, Jonathon Lusty, Benjamin Risacher, Christopher Cook, and Michael Ivory are prosecuting these cases on behalf of the federal government.
The following individuals were named in criminal complaints filed in the Pennsylvania Courts of Common Pleas and will be arrested this week by the Pennsylvania Office of Attorney
Jessica Rae Conrad and Homer Mizenko of Kiskiminetas Township, PA, have been fraudulently signing people up for PUA benefits who they know are not eligible to receive the benefits. In exchange for signing the people up for benefits, Conrad and Mizenko are being paid by the people they are registering. Typically, $1,000 per person. Conrad and Mizenko are being charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).
Thaddeus Crumbley and Steven Ashby are incarcerated at Forest State Correctional Institution. The
investigation uncovered that they both falsely filed for PUA benefits and have been fraudulently filing for others at the prison in exchange for drugs and/or money. Crumbly and Ashby are charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).
Robert Currington is incarcerated in Somerset County Correctional Facility. He, with the help of an unidentified woman outside of prison, filed fraudulent PUA claims for himself and other inmates at the prison. Currington is charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).
Under Pennsylvania law, they each face up to 20 years in jail and fines and penalties up to $50,000. Ms. Conrad and Mr. Mizenko face 30 years in jail and $75,000 because of additional identity theft charges.
These cases are being prosecuted by Chief Deputy Attorney General Brian Zarallo and Senior Deputy Attorney General Katherine Wymard.
Members of the Western Pennsylvania COVID-19 Fraud Task Force conducted the investigation leading to the charges in these cases. The Task Force was formed in March 2020 to investigate and prosecute coronavirus-related fraud. Task Force members include representatives from the United States Attorney’s Office, the Pennsylvania Office of the Attorney General, the Federal Bureau of Investigation, the United States Secret Service, the U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigations, U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI), U.S. Department of Labor – Office of Inspector General, Social Security Administration – Office of Inspector General, the U.S. Department of Education – Office of Inspector General and the Pennsylvania State Police.
The United States Secret Service played an important role in these prosecutions, as did investigators from the Pennsylvania Department of Corrections and the individual county jails, including the Allegheny County Jail. Investigators from the Allegheny County Jail, who are detectives with the Allegheny County Police, were among the first investigators who uncovered the fraud of Wilford and Norris and brought it to the attention of federal authorities.
United States Attorney Scott W. Brady and Pennsylvania Attorney General Josh Shapiro urged those who have filed fraudulent claims to withdraw them and further urged those who received a check or debit card as a result of that fraud to return those items. Both Mr. Brady and Mr. Shapiro expect further prosecutions as a result of this fraud.
If you believe you have been a target or victim of coronavirus-related fraud, please report it to the Task Force at:
• Western Pennsylvania COVID-19 Fraud Task Force’s Toll Free Hotline:
1-888-C19-WDPA or 1-888-219-9372
• Western Pennsylvania COVID-19 Fraud Task Force’s email address:
• Pennsylvania Attorney General’s price gouging email address:
A criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
20 Year Prison Sentence for Serial Bank RobberRead the Press Release
ATHENS, Ga. – A serial bank robber who went on a crime spree within weeks after being released from a federal prison was sentenced to 20 years in prison for bank robbery, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Frank Douglas, 61, of South Carolina, was sentenced to serve 240 months in prison on Monday, August 24 by U.S. District Judge C. Ashley Royal after pleading guilty to one count of bank robbery. Douglas was released from a federal prison on September 29, 2017 after serving a ten year sentence for bank robbery. Shortly after his release, Douglas robbed three banks in November and December 2017 in Georgia and South Carolina. Douglas’ sentencing was based on the robbery of the Bank of America in Athens, Georgia. In addition to the prison sentence, Judge Royal ordered Douglas pay Bank of America $6,700 in restitution. There is no parole in the federal system.
“Violent crimes will not be tolerated in our communities, and we will do our part to hold violent criminals accountable. This serial bank robber has continually demonstrated he is unable to abide by the basic laws that govern our society, and he is facing a stiff sentence as a result,” said U.S. Attorney Charlie Peeler. “I want to thank the FBI and the Athens-Clarke County Police Department for their work investigating this case and providing a measure of justice to the hardworking bank employees and customers who this defendant has terrorized.”
"Ten years in federal prison was apparently not a teaching moment for Douglas because within weeks of being released, he went right back to his bank robbing ways," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "Thanks to the assistance of our partners with the Athens-Clarke County Police Department, he'll have 20 more years to think about what he'll do the next time he is released from prison.”
Douglas admitted that he robbed three banks in 2017 while he was on federal supervised release, having served ten years in federal prison after confessing to robbing five banks. Douglas, wearing a stocking cap and glasses, entered the Bank of America in Athens on December 5, 2017. He passed the teller a note that read, “ALL LARGE BILLS I HAVE A GUN I WILL SHOOT.” No witnesses saw a gun, but Douglas repeatedly told the teller he had one and would shoot her. He escaped with $6,702.00 in cash. Douglas also admitted to robbing the BB&T bank in Conyers, Georgia on November 20, 2017 and the South State Bank in North Augusta, South Carolina on November 27, 2017. Douglas was taken into custody on December 12, 2017 in Greenville County, South Carolina.
The case was investigated by the FBI and the Athens-Clarke County Police Department. Assistant U.S. Attorneys Kimberly Easterling and Tamara Jarrett prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Monday 24 August 2020
Zimmerman Woman Pleads Guilty to Disability FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of ANNAMARIE GREEN, 60, to one count of disability fraud. GREEN, who was indicted on January 8, 2020, entered her guilty plea this afternoon before Judge Nancy E. Brasel in U.S. District Court in Minneapolis, Minnesota.
According to GREEN’s guilty plea and documents filed with the court, in October of 2014, GREEN applied for disability benefits from the Social Security Administration (SSA), which approved her application in August of 2015. On multiple occasions from August 2015 through 2018, GREEN intentionally failed to disclose her work activities to the SSA, because she knew these activities would impact her eligibility to receive SSA benefits. Specifically she failed to disclose that she engaged in substantial work activities for Select Home Care, Inc., a company which GREEN owned and operated. As a result, GREEN received at least $40,000 in social security disability benefits that she knew she was not entitled to receive. As part of the plea agreement, GREEN agreed to pay restitution of the benefits she wrongfully received.
This case is the result of an investigation conducted by the Social Security Administration Office of the Inspector General.
Special Assistant U.S. Attorney Lindsey E. Middlecamp and Assistant United States Attorney Jordan L. Sing are prosecuting the case.
Defendant Information:
ANNAMARIE GREEN, 60
Zimmerman, Minn.
Convicted:
- Title II Disability Fraud, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Young man convicted of bomb threat against federal buildingRead the Press Release
BROWNSVILLE, Texas - A 19-year-old resident of Harlingen made an appearance in federal court today and admitted he was responsible for threatening to destroy the Federal Reserve, announced U.S. Attorney Ryan K. Patrick.
Joel Hayden Schrimsher pleaded guilty to conveying false or misleading information through the internet concerning the potential destruction of a federal building.
On June 6, 2019, authorities learned of an online threat made via Twitter from the username @HaydenJool displayed as @Hayden Ter(rawr)ist. They quickly identified Schrimsher as the source. The investigation also revealed a post on his account relaying a family conversation which ended with “Me: I’m gonna mail a bomb to the Federal Reserve.”
Law enforcement executed a search warrant for Schrimsher’s home in Harlingen on June 6, 2019. At that time, they discovered physical and documentary evidence in his room consistent with the message he sent about the Federal Reserve building. After Schrimsher’s arrest, authorities also found a photo in his cellphone of a fake certificate declaring him as “Most Likely to Damage Federal Property.”
Schrimsher admitted to having the account @HaydenJool and name Hayden Ter(rawr)ist as well as making a tweet about bombing and damaging a Federal Reserve building. He claimed he was being “edgy” when he made the threats.
U.S. District Judge Fernando Rodriguez will impose sentencing Nov. 30 at 8:30 a.m., at which time Schrimsher faces up to five years in prison and a $250,00o maximum possible fine. He has been and will remain in custody pending that hearing.
The FBI, Cameron County District Attorney’s Office, Harlingen Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jody Young and Oscar Ponce are prosecuting the case.
Wilmington Man Sentenced to 111 Months for Drug Trafficking and Firearms OffensesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Keenan Gibson, 41, of Wilmington, was sentenced last week to more than 9 years in prison after a jury convicted Gibson of gun and drug charges in June 2019.
According to court documents, Gibson was charged with possession of heroin with the intent to distribute, as well as possession of a firearm in furtherance of drug trafficking. Gibson’s charges arose from a search of a Wilmington apartment during which officers discovered more than 1,100 bags of heroin, along with marijuana and methamphetamine. Gibson was found hiding in the bathroom, with his phone in the bathtub and a gun under the sink. Evidence at trial included multiple text messages on Gibson’s phone that referenced selling heroin and other drugs. The jury convicted Gibson in under three hours.
U.S. Attorney Weiss stated, “This defendant decided to sell heroin in the middle of an opioid crisis and to use a firearm in furtherance of his drug-trafficking activity in a community plagued by gun violence. Like others who engage in such conduct, he got caught and now will spend nearly a decade behind bars.”
“Any instance of criminals trafficking drugs creates opportunities for violence and puts communities at risk. This defendant increased that likelihood of violence by using a firearm to further his criminal activities,” said ATF Baltimore Field Division Special Agent in Charge Timothy Jones. “ATF and our law enforcement partners in the Wilmington Police Department, as well as the U.S. Attorney’s Office, are focused on getting anyone who uses guns to commit crime off the street so Delaware neighborhoods can thrive.”
"This sentencing marks the culmination of an investigation into drug and weapon offenses - crimes that plague communities across the country and disturb the quality of life of our residents," said Wilmington Police Chief Robert J. Tracy. "The outcome also accentuates the strong partnership our agency has with our colleagues in the U.S. Attorney's Office and the ATF, and the shared commitment we have to making our community safer."
The case was investigated by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Christopher de Barrena-Sarobe and Christopher Howland prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 16-CR-46.
West Virginia Man Sentenced to Life in Prison for Sex Trafficking, Distributing Fatal Doses of FentanylRead the Press Release
HARRISONBURG, VIRGINIA – Kendall Demarko Wysinger, a Martinsburg, West Virginia, man who used heroin as a means to control numerous women he trafficked as part of a commercial prostitution ring that operated in the Western District of Virginia and elsewhere, was sentenced today to life in prison. United States Attorney Thomas T. Cullen, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division, and Jesse Fong, Special Agent in Charge of the DEA’s Washington Field Office made the announcement today following Wysinger’s sentencing hearing.
“Sex traffickers enslave and traumatize their victims for financial gain. This is why the Department of Justice has made these cases a top priority.” First Assistant United States Attorney Daniel P. Bubar said today. “Today’s sentence shows our office’s commitment to investigating and prosecuting anyone who commits these awful crimes. I am grateful to the FBI, DEA, and the numerous state and local agencies involved with the I-81 Human Trafficking Task Force who worked tirelessly to bring justice to the victims in this case.”
“We are very thankful for our DEA Washington Division DEA agents and intel analysts who worked this case, and for the teamwork of our federal and local partners in keeping our community safer from horrific human sex trafficking and violent drug crime, such as this,” Special Agent in Charge Fong said today. “This case is a great example of how we work, every day, alongside our law enforcement and community partners to bring such egregious criminals to justice.”
“The investigation of human trafficking is a high priority for the FBI. Through the FBI's I-81 Human Trafficking Task Force, law enforcement in the tristate area leverages resources, identifies perpetrators and assists victims with recovery and the rebuilding of their lives,” SAC Archey said today. “The sentencing today of Mr. Wysinger is the culmination of the work and dedication of the task force and the Department. We encourage anyone who is a victim of trafficking or suspects someone is being trafficked to contact law enforcement and seek assistance through victim services immediately.”
According to evidence presented at Wysinger’s January 2019 jury trial, the defendant operated a prostitution ring with at least six victims in Virginia, West Virginia, and Maryland. Through the course of the conspiracy, Wysinger used heroin to coerce his victims into engaging in commercial sex and employed threats and intimidation to ensure he maintained power and control over those victims. Wysinger routinely advertised these victims for commercial sex using online classified ads in Winchester, Virginia, Shenandoah County, Virginia, and cities in West Virginia and Maryland, and used social media accounts to target and recruit women into his sex-trafficking operation. The defendant demanded his victims provide him nearly all of the money they received from commercial sex in order to pay their drug debts, his charges for posting ads online, and transporting them to prostitution dates.
On one occasion, the heroin Wysinger distributed resulted in two overdoses. Wysinger gave what he said was heroin to one victim of his sex trafficking ring and her friend. The substance was actually fentanyl, a far more powerful synthetic opioid, and both victims overdosed after ingesting it. One victim died as a result of fentanyl poisoning. Wysinger was with both victims when they overdosed and left the victims unconscious in a Winchester motel room.
The investigation of the case was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation’s I-81 Human Trafficking Task Force (I-81 HTTF), the Luray Police Department, and the Northwest Virginia Regional Drug and Gang Task Force (NWRDGTF). Assistant United States Rachel Swartz prosecuted the case for the United States.
The I-81 HTTF is a collaborative effort of law enforcement and community partners focused on identifying instances of human trafficking along the I-81 corridor in the northern Shenandoah Valley of Virginia, West Virginia, and Maryland; prosecuting those responsible; and, providing assistance to the victims impacted by these crimes. The I-81 HTTF includes law enforcement from the counties of Frederick, Clarke, and Shenandoah as well as the cities and towns of Front Royal, Hagerstown, and Frederick, Maryland and Lord Fairfax Community College.
The NWRDGTF uses the combined efforts of local, state, and federal agencies to actively pursue those groups or individuals who manufacture, distribute, or sell illegal narcotics. The NWRDGTF is comprised of the Virginia State Police, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Frederick County Sheriff’s Office, the Page County Sheriff’s Office, the Warren County Sheriff’s Office, the Shenandoah County Sheriff’s Office, and the Clarke County Sheriff’s Office.
Waterloo Man Charged with Theft and Unlawful Possession of a HandgunRead the Press Release
Dalyn Jamil Culp, age 18, from Waterloo, Iowa, has been charged with theft of a firearm from a federally licensed firearms dealer and possession of a firearm by a drug user. The charges are contained in an Indictment filed on August 18, 2020, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 27, 2020, Culp knowingly stole a Smith and Wesson 9 mm pistol from a federal firearms licensee. The Indictment also alleges that Culp was an unlawful user of marijuana at the time he possessed the firearm.
If convicted on all charges, Culp faces a sentence of up to 20 years’ imprisonment, a fine of up to $500,000, and up to six years of supervised release following any imprisonment.
Culp appeared on August 24, 2020, in federal court in Cedar Rapids and was held without bond. Culp’s trial is scheduled for October 26, 2020.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Liz Dupuich and was investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2041.
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Warren County man sentenced to 10 years in prison for possessing hundreds of images of child rapeRead the Press Release
DAYTON – Garry Weatherbie, 65, of Franklin, Ohio, was sentenced in U.S. District Court today to 10 years in prison and 10 years of supervised release for possessing child pornography after being convicted of prior sex offenses.
According to court documents, on Feb. 6, 2019, Weatherbie possessed more than 600 images of child sexual abuse on his tablet.
At the time, Weatherbie was on parole after being released from the Chillicothe Correctional Institution, where he served an eight-year sentence for pandering sexual material involving a minor. Weatherbie was previously convicted in Hamilton County Common Pleas Court.
A federal complaint affidavit details that investigators took Weatherbie into custody in February 2019 on allegations of sexual assault. While searching the defendant’s residence, they discovered the child pornography on his tablet.
Weatherbie pleaded guilty to the federal charge in February 2020.
“This case is a reminder that possessing child pornography is not a victimless crime,” U.S. Attorney David M. DeVillers said. “Even if you do not create the child pornography, you can face significant time in federal prison.”
“Today’s significant sentencing removes from the community a repeat child predator, who shockingly continued his predatory behavior while on parole for similar crimes,” said Vance Callender, HSI special agent in charge for Michigan and Ohio. “There is no place in our society for those who prey on children. HSI and its partners will continue to aggressively target those who exploit children.”
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); and Franklin, Ohio Police Chief Russ Whitman announced the sentence imposed today by U.S. District Court Judge Walter H. Rice. Assistant United States Attorney Andrew J. Hunt is representing the United States in this case.
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Veterinarian Residing in Truckee Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Jack Ray Snyder, 63, of Truckee, pleaded guilty today to one count of tax evasion, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, Snyder failed to report significant income for tax years 2011, 2012, 2013 and 2014. Each year, Snyder underreported his income to his tax preparer and took deductions for expenses that were not deductible business expenses. For the 2011 tax year, Snyder earned outside income as an equine veterinarian in addition to his salary as a professor at the University of California, Davis. He endorsed outside client payment checks to directly pay credit card bills. He failed to report $212,953 in income for the 2011 tax year. According to the plea agreement, the additional tax due for 2011, 2012, 2013, and 2014 tax years was $134,497.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Roger Yang is prosecuting the case.
Snyder is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 16. Snyder faces a maximum statutory penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Attorney Announces MOU with Special Inspector General for Pandemic RecoveryRead the Press Release
BEAUMONT, Texas – United States Attorney Stephen J. Cox and Special Inspector General for Pandemic Recovery Brian D. Miller announced today that the U.S. Attorney’s Office for the Eastern District of Texas (EDTX) has entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR).
“The COVID-19 pandemic has taken a devastating toll on American lives across the country, and the economic fallout is similarly widespread,” Cox said. “Congress has provided vital financial relief to the public, and many people and companies are staying afloat thanks to those valuable resources.” Cox said. “That fraudsters have sought to steal these taxpayer funds is unfortunately a reality that we have seen firsthand in the Eastern District. That’s why we are committed to detecting, investigating, and prosecuting those wrongdoers who exploit the pandemic for profit, and we are eager to partner with Special Inspector General Miller in this fight against fraud.”
In response to the widespread economic harm caused by the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which included over $2 trillion in emergency financial assistance designed to provide immediate help for American businesses and individuals. The purpose and mission of the MOU is to develop a cooperative effort to investigate and prosecute wrongdoing involving the making, purchase, management, and sale of loans, loan guarantees, and other investments by the Secretary of the Treasury under Division A of the CARES Act, and the management by the Secretary of any program established under Division A of the CARES Act. This partnership will make efficient use of limited resources and help ensure coordination with regulators and law enforcement so that just results can be achieved, while at the same time taking care not to stymie legitimate businesses acting in good faith to access the important financial resources that Congress made available through the CARES Act.
“I look forward to working with U.S. Attorney Stephen Cox and his team in the Eastern District of Texas to identify fraud, waste and abuse of the money provided under the CARES Act,” said Brian D. Miller, Special Inspector General for Pandemic Recovery. “We will bring to justice those who would steal CARES Act money, and recover money for the taxpayers. Taxpayers should expect nothing less.”
Two Assistant U.S. Attorneys (AUSA) – one from EDTX’s Criminal Division and one from EDTX’s Civil Division – will serve as liaisons to the EDTX-SIGPR partnership. These AUSAs will be direct points of contact for case-related inquiries from SIGPR. Additionally, a criminal paralegal will be designated to assist with SIGPR-referred investigations and prosecutions. EDTX will also provide forensic audit support for civil enforcement matters.
The MOU also calls for EDTX to create a streamlined, accelerated process for SIGPR investigations to obtain needed preliminary legal process, including grand jury subpoenas and court orders, subpoenas, and civil investigative demands.
Two South Dakota Men Sentenced to Federal Prison for CarjackingRead the Press Release
United States Attorney Ron Parsons announced that two Rapid City, South Dakota, men convicted of Carjacking Resulting in Serious Bodily Injury, Discharge of a Firearm During a Crime of Violence, and Possession of a Firearm by a Prohibited Person were sentenced on August 13, 2020, by Judge Jeffrey L. Viken, U.S. District Court.
Moses Crowe, age 27, was convicted by a jury of all three charges and was sentenced to a total of 22 ½ years in federal prison as to the Carjacking conviction. Crowe was also sentenced to two 5-year terms of supervised release, to run concurrently, and was ordered to pay a total of $300 in special assessments to the Federal Crime Victims Fund.
Ranson Long Pumpkin, age 33, was convicted by the same jury of Aiding and Abetting, Carjacking Resulting in Serious Bodily Injury, and Discharge of a Firearm During a Crime of Violence. Long Pumpkin was sentenced to a total of 20 years in federal prison. Long Pumpkin was also sentenced to two 5-year terms of supervised release, to run concurrently, and was ordered to pay a total of $200 in special assessments to the Federal Crime Victims Fund.
Saul Crowe earlier pleaded guilty on January 25, 2019, to Carjacking and Discharge of a Firearm During a Crime of Violence, and was sentenced on June 21, 2019, to serve just over 20 years in federal prison.
Evidence at trial established that Moses Crowe, Long Pumpkin, and Saul Crowe carjacked an occupied van by force on October 13, 2017. Together, the men held the victim at gunpoint and repeatedly strangled him to unconsciousness. The men drove the victim to an isolated area north of Rapid City, where they pistol-whipped and severely beat him. Using two different semi-automatic pistols, Moses Crowe and Saul Crowe each fired multiple rounds near the victim, while Long Pumpkin continued to physically assault him.
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 was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Unified Narcotics Enforcement Team; the Rapid City Police Department; the Pennington County Sheriff’s Office; the South Dakota Division of Criminal Investigation; and the RCPD/PCSO Special Response Team. Assistant U.S. Attorneys Heather Sazama and Gina Nelson prosecuted and tried the case. ATF Special Agent Riley Cook was the lead case agent.
Crowe and Long Pumpkin were immediately turned over to the custody of the U.S. Marshals Service.
Topeka Man Sentenced to 7 Years for Attempting to Rob a Liquor StoreRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced today to seven years for an attempted robbery in which he and a juvenile armed with a gun tried to rob a liquor store, U.S. Attorney Stephen McAllister said.
Joseph Bryant Toole, III, 37, Topeka, Kan., pleaded guilty to one count of attempted robbery of a commercial business. In his plea, he admitted that on Nov. 2, 2018, he and a juvenile male accomplice attempted a robbery at Lynn’s Liquor, 3335 SW Gage Blvd. in Topeka. They were wearing blue bandanas and the juvenile was carrying a firearm. However, the door was locked and they were unable to enter the business.
Investigators were able to identify a vehicle parked near the liquor store, which led them to the defendant.
McAllister commended the FBI, the Topeka Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.