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30 September 2020
Hawaii CEO Charged with COVID-Relief FraudRead the Press Release
A Hawaii man has been taken into custody on allegations he fraudulently obtained more than $12.8 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Kenji M. Price of the District of Hawaii.
Martin Kao, 47, of Honolulu, Hawaii, was charged in a federal criminal complaint, unsealed today, filed in the District of Hawaii with two counts of bank fraud and five counts of money laundering. Kao will make his initial appearance Thursday at 9:30 HST before U.S. District Court Judge Kenneth J. Mansfield.
The complaint alleges that Kao, as Chief Executive Officer of Navatek LLC (now known as Martin Defense Group LLC), submitted at least two fraudulent PPP loan applications. In sum, Kao received approximately $12.8 million in PPP funds, over $2 million of which he transferred to his own personal accounts. According to the charges, Kao falsely inflated the number of employees on the loan application and falsely certified that the applicant and its affiliates would not receive, and had not received, another PPP loan.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by IRS-Criminal Investigation and the SBA’s Office of Inspector General. Trial Attorney Tom Tynan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Craig Nolan for the District of Hawaii are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Hartford Man Sentenced to 5 Years in Prison for Distributing Fentanyl and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that YASIL SANTOS, also known as “Lilo,” 25, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing fentanyl and crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and Hartford Police Department’s Vice and Narcotics Division into the trafficking of narcotics and associated violence in Hartford’s South End by members and associates of the Almighty Latin Kings Nation (“Latin Kings”). The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that two members of the Latin Kings operated separate drug trafficking organizations that distributed fentanyl, heroin, cocaine and crack cocaine. The organizations used multiple locations to process, package, store and distribute narcotics, and possessed firearms in furtherance of their drug trafficking activities.
Nelson Ferry led one of the drug trafficking organizations. Ferry, with the assistance of Santos and others, processed and packaged heroin/fentanyl at his East Hartford residence, and he operated a “trap house” at 149 Wethersfield Avenue in Hartford as a distribution point for drug customers. Santos worked with Ferry to distribute heroin/fentanyl and crack cocaine from the Wethersfield Avenue trap house.
Santos has been detained since his arrest on July 24, 2018. On September 24, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, 40 grams or more of fentanyl and 28 grams or more of cocaine base (“crack”).
Santos’ criminal history includes two state convictions for firearm offenses.
Ferry pleaded guilty to related charges and, on February 26, 2020, was sentenced to 87 months of imprisonment.
This matter is being investigated by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hartford Man Involved in Cocaine Trafficking Ring Sentenced to 30 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HECTOR LUNA, 32, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by four years of supervised release, for his role in a cocaine trafficking ring.
According to court documents and statements made in court, this matter stems from an investigation conducted by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service into a drug trafficking organization that was receiving shipments of cocaine from Puerto Rico and California, and distributing the drug in and around Hartford. The investigation revealed that a U.S. Postal Service letter carrier was facilitating the shipment of parcels containing kilograms of cocaine through the USPS to addresses that were on his delivery route in Hartford. The letter carrier distributed cocaine to his own drug customers, and also delivered parcels to other large-scale cocaine traffickers in the Hartford area. Luna received parcels of cocaine from the letter carrier and delivered them to other co-conspirators.
Luna was arrested on May 21, 2019. On June 4, 2019, a grand jury in Hartford returned an indictment charging Luna and 18 co-defendants with conspiracy to distribute cocaine and related offenses. On November 17, 2020, Luna pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine.
Luna, who is released on a $100,000 bond, is required to report to prison on November 11, 2020.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Harrison County Man Seeks to Pump up Wallet Through Unlawful Distribution of Anabolic Steroids, Gets Benched by PoliceRead the Press Release
MARSHALL, Texas – A 53-year-old Hallsville, Texas, man has pleaded guilty to a federal drug trafficking violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Tony Goss pleaded guilty to an Information charging him with possession with intent to distribute anabolic steroids today before U.S. Magistrate Judge Roy S. Payne.
According to information presented in court, on August 22, 2019, state and federal law enforcement agents executed a search warrant at 107 Community Blvd, Suite #5, Longview, Texas, which was a commercial property leased by Goss. Agents ultimately recovered approximately 5,493 pills or tablets containing anabolic steroids, approximately 4,192 grams of anabolic steroid powder and, approximately 2,960 milliliters of liquid anabolic steroids. Anabolic steroids are a Schedule III controlled substance. Goss admitted that he possessed all the anabolic steroids with the intent to distribute them for commercial profit. Goss further admitted that he was personally responsible for the distribution of, and possessed with intent to distribute, at least 176,585 dosage units of anabolic steroids, which he distributed through mass-marketing via the internet.
Goss acknowledged that he received $459,285.25 in proceeds from his sale of steroids, and that he used some of those funds to purchase seven firearms and a 2016 Ford F-350. Goss agreed to forfeit to the government all the money he received from selling steroids, as well as all property he purchased with steroid proceeds.
Under the applicable federal statutes, Goss faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Hallsville Police Department and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Jim Noble.
Grand Jury Indicts Registered Sex Offender on Child Pornography ChargesRead the Press Release
PROVIDENCE – A registered sex offender convicted in 2014 of possessing child pornography was indicted today by a federal grand jury on two counts of distribution and one count of possession of child pornography, announced United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Michael S. Shea.
If convicted, Thomas Andreozzi, 59, of North Providence, faces a minimum term of incarceration of 10 years in federal prison.
According to court documents, it is alleged that in May 2020, Andreozzi uploaded images depicting child pornography while communicating with a person online. It is alleged that Andreozzi also boasted, “I have lots of young stuff” and “I have little girls.”
Andreozzi was arrested at his home in July by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force. As Task Force agents and officers approached Andreozzi’s residence, he allegedly fled inside his apartment and refused law enforcement commands to open the door. After forcing their way into Andreozzi’s apartment, agents and officers immediately seized a cell phone from Andreozzi’s hand and another on a nearby table. It is alleged that the phone in Andreozzi’s hand was opened to an online electronic media storage service. Numerous files of child pornography were allegedly observed by law enforcement.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Distribution of child pornography is punishable by statutory penalties of 15-30 years imprisonment to be followed by up to lifetime supervised release. Possession and accessing child pornography with intent to view is punishable by statutory penalties of 10-20 years imprisonment to be followed by up to lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Warwick Police Department, Cranston Police Department, Newport Police Department, East Providence Police Department, Pawtucket Police Department, Bristol Police Department, North Kingstown Police Department, Woonsocket Police Department, and Homeland Security Investigations.
United States Attorney Aaron L. Weisman thanks the FBI and the Winnebago County Sherriff’s Department in Winnebago County, Wisconsin for their assistance in the investigation of this matter.
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Georgia Woman Sentenced to Prison for Fraud Scheme that Used Homeless People to Cash Stolen ChecksRead the Press Release
ERIE, Pa. - A former resident of Lithonia, Georgia, has been sentenced in federal court to 42 months in jail on her conviction of conspiracy to commit wire and bank fraud, United States Attorney Scott W. Brady announced today. Restitution will be determined at a later date.
United States District Judge Susan Paradise Baxter imposed the sentence on Jasmine Nicole Carter, 31.
According to information presented to the court, Carter and a co-defendant engaged in a years long scheme where they stole checks from the mail and used homeless individuals with valid identification to cash the checks. The defendants removed the legitimate names from the checks and replaced them with the homeless persons’ names. They then kept the bulk of the money obtained and paid a nominal amount to the check cashers. Carter and her co-defendant were caught with a typewriter that was found, after a forensic examination, to contain over 130 different names, all of which were traced to the fraudulent scheme.
Prior to imposing sentence, Judge Baxter noted the complexity of the scheme and the fact that Carter and her co-defendant traveled around the country perpetuating the fraud.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Pennsylvania State Police, the Erie Police Department and the Millcreek Police Department for the investigation leading to the successful prosecution of Carter.
Four Central Florida Men Sentenced to Prison for Firearms Offenses Involving Weapons Trafficking to Puerto RicoRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Anthony Kenty Soto-Lopes (39, Orlando) to 11 years and 3 months in federal prison for aiding and abetting the making of a false statement to a licensed firearms dealer, and possessing a firearm as a convicted felon. In January 2020, Judge Mendoza also sentenced Soto-Lopes’s three co-defendants to federal prison terms: Misael Adorno-Ortega (25, Orange City) to 7 years for aiding and abetting the making of a false statement to a licensed firearms dealer and possessing a firearm as a convicted felon; Ivan Jomar Melendez-Ortiz (24, Orlando) to 37 months for making a false statement to a licensed firearms dealer; and Jose Gonzalez-Rodriguez (34, Davenport) to 8 months for making false statements to a licensed firearms dealer. All four men had previously pleaded guilty to the charges.
According to court documents, in October 2018, Soto-Lopes and Adorno-Ortega agreed to assist each other in acquiring firearms and shipping them to purchasers in Puerto Rico. Because they were previously convicted felons, Soto-Lopes and Adorno-Ortega could not purchase the firearms themselves. Instead, they recruited straw purchasers, including Melendez-Ortiz and Gonzalez-Rodriguez, to purchase firearms for them. Between October 2018 and June 2019, Soto-Lopes and Adorno-Ortega had the straw purchasers buy approximately 49 firearms from various firearms dealers in Central Florida. Melendez-Ortiz and Gonzalez-Rodriguez lied on the forms that they submitted to the firearms dealers by indicating that they were purchasing the firearms for their own use, when in fact they were purchasing the firearms for Soto-Lopes and Adorno-Ortega. Soto-Lopes and Adorno-Ortega then shipped the firearms to purchasers in Puerto Rico. Many of the firearms were AK-style firearms with high-capacity magazines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Four Alleged Stock Defrauders from Georgia, New York and Texas Indicted for “Pump and Dump” Scheme Involving Three Public CompaniesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Ricardo Richardson, 50, of Buford, GA; John Scott Watkins, 54, of Canton, GA; Gary B. Wolff, 78, an attorney from New York, NY; and Edward Heil, 71, an accountant from Pearland, TX; were arrested and charged by Indictment with conspiracy, wire fraud, and securities fraud in connection with what is commonly referred to as a ”pump and dump” scheme.
The Indictment alleges that the defendants and others sought to generate illegal proceeds by manipulating the stock of three public companies: AI Document Services, Inc. (ticker symbol AIDC), Creative Edge Nutrition, Inc. (ticker symbol FITX), and Interactive Health Network (ticker symbol IGRW). This manipulative activity was designed to make it falsely appear that trading in those stocks was the result of free and fair market forces, and to conceal the activity from the U.S. Securities and Exchange Commission (the “SEC”).
The Indictment further alleges that, among other things, the defendants planned and took various fraudulent actions, including disguising their share ownership in these companies, paying large bribes to stockbrokers for prearranged purchases of AIDC, FITX, and IGRW stock on behalf of the brokers’ unknowing customers, hiring promoters to distribute misleading email newsletters regarding these companies to numerous potential investors throughout the United States, and causing the public companies to issue nationwide press releases to conceal the manipulative activity. The schemers intended to generate at least $15 million in proceeds from this scheme, which was implemented from mid-2014 through approximately February 2016, when the SEC suspended trading in these stocks.
Court documents also reveal that the defendants and their co-schemers had worked together on previous stock deals, and each performed different roles in the scheme. Watkins himself explained that he was on the stock side of the deals, and Richardson much of the negotiating. Wolff and Heil, in turn, supplied the public companies that the schemers used in the manipulations and assisted with some of the paperwork. As alleged, all of the defendants owned or controlled a substantial number of shares of AIDC, FITX, and IGRW stock and were prepared to sell them at a large profit into the manipulated markets to unsuspecting investors.
“Pump and dump stock schemes have real victims: those who play by the rules and save and invest in the markets,” said U.S. Attorney McSwain. “Market manipulation also causes generalized harm to the markets and to our economy because it erodes public trust that the markets are free and fair. Thanks to the excellent work of the FBI, SEC, and prosecutors from my Office, these four defendants will now face the consequences of their alleged actions.”
“The defendants allegedly employed fraud and misinformation in an attempt to boost these companies’ stocks,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Their ‘business model’ was nothing but a classic pump and dump scheme from which they sought to handsomely profit. The FBI will continue to investigate and shut down such illegal activity, to protect both the public and the integrity of our financial markets.”
If convicted, the defendants each face a maximum possible sentence of 65 years in prison, 3 years of supervised release, a $10,500,000 fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Judy Smith and Patrick J. Murray. The U.S. Attorney’s Office also acknowledges the substantial assistance provided by the U.S. Securities and Exchange Commission, Philadelphia Regional Office in this investigation.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Union Official Pleads Guilty to ForgeryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced today that MATTHEW CUOMO, age 55, of Kansas City, Missouri, pleaded guilty to Forgery, in violation of Title 18, United States Code, Section 513, before United States District Judge Lance M. Africk today. CUOMO faces a maximum sentence of ten years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100. Sentencing is set for January 27, 2021.
CUOMO was the former president of a local labor union for employees of the Transportation Security Administration (TSA) and worked at multiple airports in Louisiana and Mississippi. An audit in 2017 revealed that union funds were missing, and a subsequent investigation revealed that CUOMO forged checks from the union’s bank account and used union funds for personal expenses. CUOMO forged approximately 50 checks, resulting in a loss of $15,000 to the local union.
U.S. Attorney Strasser praised the work of the United States Department of Labor and the Transportation Security Administration for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
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Former New York City Money Transfer Agent Sentenced to 36 Months’ Imprisonment on Fraud ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a native of Nigeria who became a naturalized U.S. Citizen, Cyprian Ngbadi, age 63, of New York City, was sentenced to 36 months’ imprisonment by United States District Court Judge Christopher C. Conner on charges that he conspired to commit mail fraud, wire fraud and money laundering between 2007 and 2009. Ngbadi was also ordered to pay $435,664 restitution to 194 victims.
According to United States Attorney David J. Freed, Ngbadi and six codefendants perpetrated a scheme to defraud dozens of individuals, some of whom were senior citizens residing in the Middle District of Pennsylvania, out of hundreds of thousands of dollars on a variety of mass marketing fraud schemes, including but not limited to bogus sweepstakes scams, loan schemes, employment opportunity scams, person in need schemes, and internet purchase scams.
Between 2007 and 2009 Ngbadi owned and/or operated two MoneyGram and Western Union outlets, “Rockaway Business Center” and “Neighborhood Express Payment,” in the greater Queens, New York area. Mass marketing fraudsters used Ngbadi to convert fraud induced money transfers from victims into cash and to distribute the proceeds to other co-conspirators, some of whom resided in Canada and Nigeria. For his role in the conspiracy Ngbadi kept approximately 10% of the proceeds.
Western Union and MoneyGram determined in 2008 that Ngbadi, who was then doing business as Rockaway Business Center, was complicit in consumer fraud and money laundering activities and, as a result, both companies terminated their money transfer agreements with him. Undeterred, with the unwitting assistance of a straw party, Ngbadi opened new Western Union and MoneyGram outlets under the name of “Neighborhood Express Payment” in New York. Thereafter, Ngbadi continued to cash out and launder additional money transfers sent by consumer fraud victims until Western Union and MoneyGram finally terminated Neighborhood Express Payment’s operations in 2009.
Ngbadi was arrested on February 8, 2019, upon his arrival in New York City on a flight from Nigeria where Ngbadi has been residing for the past five years.
The case was investigated by the Harrisburg Office of the United States Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
The United States Attorney and United States Postal Inspectors remind all citizens that they should never make an advance payment of any kind on the promise of a sweepstakes prize, loan or grant.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines, and could include a term of supervisory release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former International UAW President Dennis Williams Pleads Guilty to Conspiring to Embezzle Union FundsRead the Press Release
Dennis Williams, the former President of the international United Auto Workers union, pleaded guilty today to conspiring with other UAW officials to embezzle UAW funds announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Dennis Williams, 67, of Corona, California, pleaded guilty before United States District Judge Paul Borman to charges of conspiring with former UAW President Gary Jones and other senior UAW officials to embezzle UAW dues money between 2010 and September 2019.
Between June 2014 and June 2018, Williams served as the President of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States. Prior to serving as UAW President, Williams was the Secretary-Treasurer of the UAW from June 2010 through June 2014.
During the guilty plea hearing today, Williams admitted that he had conspired with at least six other senior UAW officials in a multi-year conspiracy to embezzle money from the UAW for the personal benefit of himself and other senior UAW officials. UAW officials concealed hundreds of thousands of dollars in personal expenditures in the cost of UAW conferences held in Palm Springs, California, Coronado, California, and Missouri. Between 2010 and 2018, former UAW President and co-defendant Gary Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with UAW leadership and training conferences. In truth, however, Williams and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators.
As part of his guilty plea, Williams admitted the he and other senior UAW officials used UAW money to pay for personal expenses, including multi-month long stays at private villas in Palm Springs, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals. During the course of the conspiracy, while Williams was UAW President, co-conspirators Gary Jones, Vance Pearson, and others provided themselves and Williams with thousands of dollars in such personal items.
Based on the charge of conspiring to embezzle union funds, Williams faces a maximum of five years in prison and a fine of up to $250,000.
As part of his guilty plea, Williams has agreed to forfeit a custom-made set of Titleist golf clubs and various golf clothing and equipment seized from Williams during an August 2019 search of his residence. In addition, Williams has agreed to pay taxes to the Internal Revenue Service on embezzled items that he personally received.
Williams is the fifteenth defendant convicted in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following other individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 moths). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW President Gary Jones, former UAW Vice President Joseph Ashton, former senior UAW official Jeffrey “Paycheck” Pietrzyk, former UAW Region 5 Director UAW Board member Vance Pearson, and former UAW Midwest CAP President Edward “Nick” Robinson.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“Former UAW President Dennis Williams has accepted responsibility for his conduct and, in that way, has contributed to our efforts with the union’s current leadership towards reforming the UAW to better serve its members and their families,” said United States Attorney Matthew Schneider. “Today’s conviction demonstrates that we will continue our drive forward to provide ethical and honest leadership for the UAW’s membership.”
“Today’s conviction is another step towards combatting corruption within the UAW. Williams conspired with other senior UAW officials to embezzle over $1 million in union funds. Williams spent the embezzled funds on extravagant meals, liquor, golf, and travel for personal enrichment. We will continue to work with our law enforcement partners to investigate corrupt union officials who betray the union members they are entrusted to represent,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“Years of fraud and corruption by the UAW’s elected officials continue to be exposed through the diligent and collaborative work of law enforcement,” said Steven M. D’Antuono, Special Agent in Charge of the FBI in Detroit. “As I have often said, the hard-working men and women of the UAW deserve so much better. It is my sincere hope that the convictions obtained over the course of this investigation have begun the process of ensuring honest leadership takes the helm of one of the most important labor unions in this country.”
“Today’s guilty plea further illustrates the systemic corruption at the UAW’s highest levels,” said Internal Revenue Service – Criminal Investigation Special Agent in Charge, Sarah Kull. “IRS-CI is committed to prosecuting anyone who illegally diverts funds from the UAW.”
“Dennis Williams’ guilty plea today shows that instead of fulfilling his fiduciary duty to his fellow union members, Williams chose to betray their trust and embezzle hundreds of thousands of dollars from the UAW for the personal benefit of himself and other high-ranking UAW officers,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS will continue to work with its fellow law enforcement partners and the U.S. Attorney’s Office to remove corrupt union officers and other officials within the UAW International Union.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.
Former Company Vice President/Chief Financial Officer pleads guilty for stealing approximately $800,000 in company fundsRead the Press Release
ST. LOUIS, MO –Lynese Cargill (also known as Lynese Hoffman), 51, formerly of St. Louis County, Missouri, pled guilty to three counts of wire fraud related to her former position as vice president and chief financial officer of Common Ground Public Relations, Inc. Cargill appeared today before U.S. District Judge Audrey Fleissig who accepted her pleas and set sentencing for January 6, 2021.
According to the Information and Plea Agreement, the defendant, Lynese Cargill ("Cargill), was one of the two founders of Common Ground, and served as the firm’s Vice President and Chief Financial Officer. Beginning in or about 2008 and continuing through in or about March 31, 2020, Cargill devised, and knowingly participated in a scheme to defraud and obtain money from Common Ground by means of materially false and fraudulent pretenses, representations, and promises in the total amount of $785,615.25.
Cargill issued 80 unauthorized bank checks to herself written on Common Ground’s bank account totaling $198,980.23. In order to conceal this aspect of her fraudulent scheme, Cargill made false and misleading entries in the internal financial and accounting records of Common Ground, purporting to make these unauthorized bank checks appear to be legitimate when, in fact, she knew they were not.
Cargill was issued both a Citibank MasterCard credit card and an American Express credit card by Common Ground to be used to pay for legitimate company expenses, such as necessary travel and other business expenses. Cargill used both of her company issued credit cards to make personal purchases, unrelated to the legitimate business and operations of Common Ground. Cargill's unauthorized credit card charges were for such personal expenses as airfare, hotels, automobiles, clothing, cosmetics, medi-spas, restaurants and miscellaneous retail purchases. These company issued credit card purchases were done by Cargill without the knowledge and authority of Common Ground. During the period of her fraudulent scheme, Cargill made approximately 2,841 unauthorized company issued MasterCard credit card purchases for personal use items and expenses, totaling approximately $351,748.42, and an additional approximately 1,166 unauthorized company issued American Express credit card purchases for personal use items and expenses, totaling approximately $190,200.66.
Cargill applied for and obtained 2 different $1,000,000 life insurance policies, but instead of naming Common Ground as the sole beneficiary, as required under the shareholder agreement, Cargill named her then husband, B.H., as the sole beneficiary on both policies. Cargill then made premium payments on both policies, totaling $5,244.00, with funds from Common Ground’s bank accounts.
Cargill also used Common Ground bank funds to pay for charges on three of her personal credit cards totaling approximately $38,516.94. None of these charges which were paid for with Common Ground funds were authorized by Common Ground, and they were not for the legitimate business or operations of Common Ground.
In order to conceal her fraudulent scheme, Cargill moved funds between Common Ground bank accounts to falsely inflate the balance of the firm’s operating account when she provided financial updates to the president and chief executive officer of the firm. In furtherance of her scheme, Cargill caused unauthorized wire transfers to be made from Common Ground’s bank account to make payments on her personal credit card charges.
Cargill faces a potential statutory maximum sentence as to each count of wire fraud of twenty years’ imprisonment, and a fine of $250,000. The Court is required to consider the United States Sentencing Commission guidelines in sentencing defendant.
The Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Former CEO and CFO of Temporary Staffing Company Charged in Manhattan Federal Court with Scheme to Defraud Bank and Investors of More Than $500 Million by Fraudulently Boosting RevenuesRead 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 the unsealing of an Indictment in Manhattan federal court charging LOUIS LLUBERES, a/k/a “Luis Lluberes,” MOISES LLUBERES, MARIA AGUILAR, a/k/a “Maria Hewitt,” and MARIA LOPEZ with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering stemming from their years-long scheme to fraudulently boost the revenues of their temporary staffing company (“Company-1”) and launder funds through a series of shell companies before mischaracterizing the money as collections from customers. The scheme allowed Company-1 to fraudulently obtain more than $500 million on its line of credit from a U.S. bank (“Bank-1”) and supported the sale of Company-1 to a group of investors (the “Investor Group”) at a grossly inflated price. LOUIS LLUBERES, MOISES LLUBERES, AGUILAR, and LOPEZ were arrested this morning in the Middle District of Florida, and will be presented this afternoon in that district. The case is assigned to U.S. District Judge Vernon S. Broderick.
Acting U.S. Attorney Audrey Strauss said: “Louis Lluberes, founder and former CEO of a temporary staffing company, and his three co-defendants, allegedly schemed to inflate the company’s receivables, thereby making the company appear far more profitable than it was. As alleged, they were thus able to fraudulently exceed their bank’s credit limit, borrowing over $500 million, and ultimately sold the company at a vastly inflated price. Thanks to the assistance of the FBI, Lluberes and his co-defendants now face multiple federal fraud charges.”
FBI Assistant Director William F. Sweeney Jr. said: "Today's indictment details an alleged multimillion-dollar scheme in which the defendants fraudulently borrowed money from a major financial institution, funneled the money from a revolving line of credit through a series of shell companies, and dumped it back into the company, falsely representing those funds as business proceeds. They later manipulated the books by creating fraudulent invoices to boost the perceived value of the company before its sale to a private equity firm. These charges serve to remind everyone that illegal business dealings will be faced with intense scrutiny."
According to the Indictment unsealed today in Manhattan federal court:[1]
LOUIS LLUBERES founded Company-1 in 1995 and served as Company-1’s chief executive officer until March 2020. Company-1 served as a staffing company, supplying other businesses with temporary and permanent labor. MOISES LLUBERES, LOUIS LLUBERES’s brother, served as Company-1’s chief financial officer. AGUILAR, MOISES LLUBERES’s romantic partner, and LOPEZ, LOUIS LLUBERES’s daughter, served in Company-1’s accounting department.
Company-1 had established a revolving line of credit with Bank-1. Under the terms of the line of credit, Company-1 could only borrow up to a designated ratio of Company-1’s eligible accounts receivable (the “Borrowing Base”). By its terms, invoices that had gone more than 90 or 120 days without being paid were no longer eligible to be considered as part of Company-1’s Borrowing Base. Officials at Company-1, including MOISES LLUBERES and LOPEZ, were required to submit weekly financial reports to Bank-1, which included information on Company-1’s sales and collections, among other items, that allowed Bank-1 representatives to calculate Company-1’s Borrowing Base.
Beginning in or about 2017, after losing significant business from major clients, the defendants began creating fraudulent invoices (the “Fictitious Receivables”). The Fictitious Receivables, which were recorded on Company-1’s books, created the appearance that Company-1 was engaged in more business and would be receiving more client payments than was the reality. All told, the defendants created more than 2,000 Fictitious Receivables. LOPEZ was responsible for recording the vast majority of Fictitious Receivables onto Company-1’s books.
Thus, by inflating Company-1’s Borrowing Base through the creation of Fictitious Receivables, Company-1 and the defendants were able to borrow more than $520 million from Bank-1. Company-1 was not actually entitled to borrow these funds.
In order to perpetuate their fraud, the defendants utilized two shell companies (“Shell-1”) and (“Shell-2”) to launder Company-1 funds before transferring those funds back to Company-1 and mischaracterizing those funds as client collection payments.
Between in or about September 2017 and in or about March 2020, Company-1 accounts transferred approximately $120 million in funds obtained from Company-1’s line of credit with Bank-1 to Shell-1’s bank account. During the same time period, Shell-1 transferred approximately $119 million to Shell-2, constituting approximately 90% of all funds received by Shell-2. And, during the same time frame, Shell-2 transferred approximately $129 million to Company-1’s collections account, where the defendants disguised the funds as client payments on outstanding invoices.
Once the misappropriated funds had been returned to Company-1’s collections account, LOPEZ and others applied those funds against aging accounts receivable, including the Fictitious Receivables. This allowed Company-1 to maintain its Borrowing Base and continue borrowing from Bank-1.
Beginning in or about 2017, the Investor Group initiated negotiations to acquire Company-1, and the Investor Group executed an agreement to purchase Company-1 (the “Purchase Agreement”) in May 2018. In connection with the Purchase Agreement, LOUIS LLUBERES certified that financial records relied upon by the Investor Group and incorporated into the Purchase Agreement, including Company-1’s accounts receivable, were accurate and legitimate. In reality, as reviewed by forensic accountants retained by Company-1, these records included approximately $56 million in Fictitious Receivables, which resulted in the Investor Group overvaluing Company-1’s enterprise value by approximately 430%.
LOUIS LLUBERES was paid approximately $11.3 million on the day the Investor Group acquired Company-1. LOUIS LLUBERES also received an additional approximately $6.2 million based, in part, on fraudulent representations to the Investor Group and Company-1. In total, LOUIS LLUBERES made at least $17.5 million from the sale of Company-1 (the “Acquisition Payments”).
LOUIS LLUBERES transferred at least approximately $716,000 in the Acquisition Payments to MOISES LLUBERES and at least approximately $45,000 in the Acquisition Payments to LOPEZ. The defendants further used the Acquisition Payments to acquire homes in Florida, Punta Cana in the Dominican Republic, precious metals, and other personal items. LOUIS LLUBERES also transferred Acquisition Payments funds to a Tex-Mex restaurant operated by LOUIS LLUBERES and MOISES LLUBERES in the Dominican Republic.
In or about March 2020, Company-1 learned of LOUIS LLUBERES and MOISES LLUBERES’s fraud when an attorney retained by the brothers wrote a letter, dated March 30, 2020, disclosing “excessive billing” to Company-1’s customers in order to increase Company-1’s sales and allow Company-1 to draw more from its line of credit than Company-1 would otherwise be entitled to. AGUILAR closed Shell-2’s bank account the same day that the LLUBERES brothers’ attorney submitted the letter to Company-1. Company-1 fired the defendants after it was alerted to the fraudulent scheme.
LOUIS LLUBERES, 58, of Windermere, Florida; MOISES LLUBERES, 56, of Winter Grove, Florida; AGUILAR, 37, of Winter Grove, Florida; and LOPEZ, 37, of Orlando, Florida, are charged with (1) conspiring to commit wire and bank fraud, which carries a maximum sentence of 30 years in prison; (2) wire fraud, which carries a maximum sentence of 30 years in prison; (3) bank fraud, which carries a maximum sentence of 30 years in prison; and (4) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
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Ms. Strauss praised the investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo and Daniel G. Nessim are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Florida Man Sentenced in Drug Proceeds Money Laundering CaseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Michael Sean Riley, age 52, of Ocala, Florida, was sentenced to 72 months’ imprisonment and ordered to forfeit up to $800,000, by United States District Court Judge Christopher C. Conner for his role in a money laundering conspiracy involving $800,000 in drug proceeds.
According to United States Attorney David J. Freed, Michael Riley arranged with John T. Oiler to rent a storage unit in Baltimore and travel to Pennsylvania to take possession of more than $800,000 of cash drug proceeds Michael Riley skimmed from a larger load of cash. Oiler took the vast majority of those proceeds and stored them in the rented unit in Baltimore. Michael Riley then contacted his cousin, Timothy Riley, then a Narcotics Agent of the PA Attorney General’s Office Bureau of Narcotics Investigations Mobile Street Crimes Unit, and turned over the rest of the cash proceeds to him and other agents from the Mobile Street Crimes Unit. Michael Riley paid Timothy Riley three cash payments totaling $48,000 which Timothy Riley subsequently laundered. Oiler and Michael Riley each netted about $400,000 of the proceeds and each conducted numerous financial transactions with the cash drug proceeds.
Coconspirator Timothy B. Riley was sentenced to 36 months’ imprisonment and conspirator John T. Oiler was sentenced to 30 months’ imprisonment.
The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General. Assistant U.S. Attorneys James T. Clancy and Carlo Marchioli prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Five People Charged in Connection with Interstate Gun Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – Three New Jersey men and a man and woman from Florida have been charged with conspiring to illegally sell firearms, including handguns and a semi-automatic rifle, in and around Monmouth County, U.S. Attorney Craig Carpenito announced today.
Enrique Quijada, 23, a/k/a “El Enano 13,” a/k/a “Kike,” of Freehold, New Jersey; Manuel Espinosa-Ozoria, 30, a/k/a “Chino,” of Bartow, Florida; his brother, Waldin Espinosa-Ozoria, 31, a/k/a “Manin,” of Freehold, New Jersey; Javier Rodriguez-Valpais, 31, a/k/a “Broly,” of Morganville, New Jersey; and Jacquelyn Dejesus, 41, of Bartow, Florida, are each charged by criminal complaint with one count of conspiracy to engage in the business of unlicensed firearms dealing. Manuel Espinosa-Ozoria and Rodriguez-Valpais are each additionally charged with one count of possession of a firearm by a convicted felon. Manuel Espinosa-Ozoria and Dejesus are also charged with one count of unlawfully selling a firearm to an individual that they knew did not reside in their state of residence, namely Florida.
Quijada, Rodriguez-Valpais and Dejesus were arrested today are scheduled to appear by videoconference before U.S. Magistrate Judge Zahid N. Quraishi. Manuel Espinosa-Ozoria and Waldin Espinosa-Ozoria remain at large,
According to documents filed in this case and statements made in court:
From May 2020 through September 2020, Manuel Espinosa-Ozoria, Waldin Espinosa-Ozoria, Quijada, Rodriguez-Valpais, and Dejesus were members of a gun trafficking conspiracy that spanned from Florida to New Jersey. Dejesus allegedly assisted Manuel Espinosa-Ozoria – the alleged leader of the conspiracy – by acting as a “straw purchaser” of firearms in Florida. Manuel Espinosa-Ozoria and Dejesus then transported the firearms from Florida to Monmouth County, where Manuel Espinosa-Ozoria, assisted by Waldin Espinosa-Ozoria and Rodriguez-Valpais, allegedly sold the firearms to an individual working at the direction and supervision of the FBI. In addition, Rodriguez-Valpais allegedly sold a .223 caliber semi-automatic rifle to Quijada, who, in turn, allegedly sold the rifle to an individual working at the direction and supervision of the FBI.
The counts of conspiracy to engage in the business of unlicensed firearms dealing and unlawfully selling a firearm to an unlicensed resident of another state each carry a maximum potential penalty of five years in prison and a $250,000 fine. The counts of possession of a firearm by a convicted felon carry a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to the charges and arrest. He also thanked the FBI Tampa Division, the ATF Newark and Tampa Field Divisions, and the Freehold Borough, New Jersey, Police Department for their assistance in the investigation.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian .
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Feds Charge Man Who Victimized Good Samaritan at Mammoth Cave National ParkRead the Press Release
BOWLING GREEN, Ky. – A Kentucky man who stole a truck and drug the vehicle’s owner alongside the vehicle has been charged federally, announced U.S. Attorney Russell Coleman.
“Our National Parks are to be places of respite from the outside world; not violent crime,” said U.S. Attorney Russell Coleman. “Violate their sanctity by victimizing other visitors and be prepared to face swift federal charges and ultimately federal prison.”
Dusty G. Westmoreland, 30, of, Summershade, Kentucky, has been charged with Robbery under 18 United States Code 2111.
According to the criminal complaint, a motor vehicle accident occurred resulting in a fire at Mammoth Cave Parkway and Brownsville Road, within the boundaries of Mammoth Cave National Park. A witness to the accident stopped to see if anyone was inside the burning vehicle. Westmoreland entered the witness’s Ford F-150 truck. The witness opened the driver side door attempting to stop Westmoreland from stealing the vehicle. A struggle ensued, with Westmoreland striking the victim and dragging him down the side of the road, resulting in injuries to the victim.
A maintenance employee of the park saw the Ford truck a short time later stopped on the side of the road in the park, and Westmoreland standing beside the truck. On-duty park rangers and the Kentucky State Police took Westmoreland into custody at gunpoint.
If convicted at trial, the maximum sentence for Robbery within the special maritime and territorial jurisdiction of the United States is not more than fifteen years.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a United States Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty.
Assistant United States Attorney Mark Yurchisin of the U.S. Attorney’s Bowling Green Branch Office is prosecuting the case. The case is being investigated by the National Park Service park rangers with assistance from the Kentucky State Police.
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Federal agencies make drug trafficking ring-related arrests in St. Louis and PhoenixRead the Press Release
ST. LOUIS, MO - The Drug Enforcement Administration, United States Marshals Service and Homeland Security Investigations arrested 10 people Tuesday, including seven in the St. Louis area and three in Phoenix, on charges that include conspiracy to distribute cocaine, methamphetamine, and marijuana. Defendants are expected to be presented in federal court today. Among those charged were:
- Teresa Mejia-Palacios, 31, of St. Louis City;
- Reyman Ordonez Colmenero, 39, of Phoenix, AZ;
- Rafael Leon-Barradas, 37, of St. Louis City;
- Ramon Perez-Alonso, 36, of Collinsville, IL;
- Gavino Pelayo Echevarria, 28, of St. Louis City;
- Omar Ramirez-Villanos, 28, of St. Louis County;
- Luis Alonso Gomez-Celaya, 36, of St. Louis City;
- Cindy Hinojo-Ruiz Ramos, 45, of St. Louis City;
- Norma Leticia Rivera-Hernandez, 33, of Phoenix, AZ; and
- Vanessa Eliserio, 33, of Phoenix, AZ
The previously sealed indictment of August 5, 2020, includes the following charges: (1) Leon-Barradas, Perez-Alonso, Ramirez-Villanos, Gomez-Celaya, and Hinoja-Ruiz Ramos are charged with conspiracy to distribute cocaine; (2) Mejia-Palacios and Echevarria are charged with conspiracy to distribute more than 50 grams of actual methamphetamine; and (3) Colmenero and Rivera-Hernandez, and Eliserio are charged with conspiracy to distribute marijuana.
The indictment charges Echevarria with possession of a firearm in furtherance of a drug trafficking crime. Leon-Barradas is also charged with illegal reentry in to the United States after having been previously removed to Mexico. Gomez-Celaya is further charged with illegal reentry into the United States after having been previously removed to Honduras.
“This investigation shows that drug trafficking organizations have networks that extend across the country, and that DEA investigators, along with our federal partners of FBI, HSI and the Marshals, will follow those connections wherever they go,” said Special Agent in Charge William J. Callahan, head of the Drug Enforcement Administration St. Louis Division. “With multiple arrests like in this case, the goal is to destroy the network and stop these organizations from peddling their poison in the streets of St. Louis.”
This case is being investigated by the following law enforcement agencies: The Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations and the United States Marshals Service.
As is always the case, charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
These arrests were made as part of Operation Legend. Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Fayette County Man Pleads Guilty to Attempted Enticement of a MinorRead the Press Release
CHARLESTON, W.Va. – A Panamanian man residing in Ansted pled guilty to a sex offense involving a minor, announced United States Attorney Mike Stuart. Eugene Enrique Torres, 43, pled guilty to attempted enticement of a minor.
“Horribly Horrific. Now this Panamanian man faces up to life in prison. Predators like Torres pose a significant threat to West Virginia children,” said United States Attorney Mike Stuart. “We are fortunate to work hand in hand with the FBI’s Child Exploitation and Human Trafficking Task Force to keep our children safe.”
Torres admitted that in June 2020 he contacted a woman on Craigslist who identified herself as a mother who would allow him to have sex with her children in exchange for money. During the conversation, Torres arranged to have the woman travel from Beckley to a hotel in Fayetteville with an 11-year-old girl the woman stated was her daughter. Torres would then pay approximately $250 in order to engage in oral sex and sexual intercourse with the child. After he met with the purported mother at the hotel, Torres was arrested on his way to meet the child.
Torres faces up to life in prison when sentenced on January 6, 2021. As a result of the conviction, Torres will have to register as a sex offender and may be subject to removal from the United States.
The FBI Child Exploitation and Human Trafficking Task Force conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00177.
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Execution Scheduled for Federal Death Row Inmate Convicted of Murdering a ChildRead the Press Release
Attorney General William P. Barr today directed the Federal Bureau of Prisons to schedule the execution of Orlando Cordia Hall, who was sentenced to death after kidnapping, raping, and murdering a 16-year-old girl in 1994.
In September 1994, Hall and several accomplices ran a marijuana trafficking operation out of Pine Bluff, Arkansas. After a failed drug transaction involving $4,700, Hall and his accomplices went to the Arlington, Texas, home of a man they believed had reneged on the deal. The man’s 16-year-old sister, Lisa Rene, answered the door. Although she was simply an innocent bystander, Hall and his accomplices kidnapped her at gunpoint, and Hall raped her in the car. Hall’s accomplices subsequently drove her to a motel in Arkansas, where they raped her several more times. Hall and his accomplices then took her to a park where they had dug a grave. There, they beat her over the head with a shovel, soaked her with gasoline, and buried her alive.
In October 1995, a jury in the U.S. District Court for the Northern District of Texas found Hall guilty of, among other offenses, kidnapping resulting in death, and unanimously recommended a death sentence, which the court imposed. Hall’s convictions and sentences were affirmed on appeal more than 20 years ago, and his initial round of collateral challenges failed nearly 15 years ago. In 2006, Hall received a preliminary injunction from a federal district court in Washington, D.C., based on his challenge to the then-existing federal lethal-injection protocol. That injunction was vacated by the district court on Sept. 20, 2020, making Hall the only child murderer on federal death row who is eligible for execution and not subject to a stay or injunction. Hall’s execution is scheduled for Nov. 19, 2020, at U.S. Penitentiary Terre Haute, Indiana.
Eugene Springfield Paramedic Charged with Conspiring to Distribute Controlled SubstancesRead the Press Release
EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today that a Eugene Springfield Fire Department paramedic has been charged with illegally obtaining controlled substances from a local pharmacy and using them to drug and rape multiple female victims.
Edward Augustus Blake, 44, a resident of Cheshire, Oregon, has been charged by federal criminal complaint with conspiring to possess with intent to distribute fentanyl, morphine, ketamine, and midazolam. Blake had previously been charged in Lane County Circuit Court with first degree rape and sodomy, strangulation, causing another person to ingest a controlled substance, and unlawful delivery of a controlled substance.
According to court documents, as a paramedic, Blake had access to controlled substances from PeaceHealth pharmacy in Springfield, Oregon. Between January 2016 and September 2019, he took approximately 343 vials of the drugs from the pharmacy, but did not enter them into his ambulance’s inventory. Instead, Blake used the drugs to sexually assault at least three local women.
On September 11, 2019, Springfield Police Department officers responded to McKenzie Willamette Hospital after a female victim reported being sexually assaulted by a man claiming to be a Eugene Springfield firefighter. The female victim told officers that she began communicating with the man, later determined to be Blake, through Craigslist. Before they agreed to meet, Blake sent the victim pictures of various medical supplies including medications he claimed to have taken from the ambulance he worked on.
On September 10, 2019, Blake and the victim agreed to meet at a Springfield motel. Blake choked the victim from behind until she lost consciousness. The victim regained consciousness to find an intravenous (IV) needle in her arm. Blake then forced her to take several medications including fentanyl and sexually assaulted her while she was unconscious.
Investigators learned that Blake, using his Oregon driver’s license, rented rooms at the motel on 17 separate occasions. Law enforcement spoke with Blake who confirmed that he was employed as a Eugene Springfield firefighter and admitted he posted personal ads on Craigslist. He further admitted he had sexual intercourse with the victim and placed an IV in her arm.
As part of the investigation, detectives identified two additional victims who reported receiving controlled substances from Blake. One of the victims was hospitalized several times while she knew Blake. Each time she was hospitalized, Blake would show up at her hospital room and administer drugs to her through her IV. She recalled Blake telling her to sell the drugs, but warned her not to let anyone keep the vials, because they could be traced back to him.
Blake is in state custody pending trial in Lane County. In the coming weeks, he is expected to make his first appearance in federal court.
This case was investigated by the U.S. Drug Enforcement Administration with assistance from the FBI and the Springfield Police Department. It is being prosecuted by Joseph Huynh, Assistant U.S. Attorney for the District of Oregon.
Investigators are seeking the public’s help to identify additional potential victims who may have had contact with Blake. If you have any reason to believe you or someone you know may be a victim or have additional information about other potential crimes involving this defendant, please contact the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
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.
District of New Jersey Announces Charges in Health Care Fraud Cases as Part of Nationwide Federal Law Enforcement EffortRead the Press Release
NEWARK, N.J. – Six individuals have been charged in New Jersey for their roles in a massive nationwide prescription medication and durable medical equipment telemedicine scheme, and three others admitted their roles in three other health care fraud cases. The announcements are part of a federal law enforcement effort to crack down on health care fraud nationwide.
U.S. Attorney Craig Carpenito, District of New Jersey, announced charges against six people: Mark Belter, 46, of North Ridgeville, Ohio; David C. Laughlin, Jr., 46, of Buckeye, Arizona; Stephen Luke, 52, of Phoenix, Arizona, were charged by complaint with conspiracy to violate the Anti-Kickback Statute. In a separate complaint, Ethan Welwart, 32, of North Brunswick, New Jersey; William “Ben” Welwart, 66, of Staten Island, New York; and Elan Yaish, 51, of Tel Aviv, Israel, also were charged with conspiracy to violate the Anti-Kickback Statute for their roles in the same scheme. Ethan Welwart, William Welwart, and Yaish had their initial appearances before U.S. Magistrate Judge James B. Clark III on Sept. 3, 2020, and Belter, Laughlin, and Luke had their initial appearances before U.S. Magistrate Judge Leda Dunn Wettre on Sept. 10, 2020.
Attorney for the United States Rachael A. Honig, District of New Jersey, announced guilty pleas from three defendants in three cases:
Andrew McCubbins, 39, of Draper, Utah, the owner of a telemedicine company, pleaded guilty by videoconference on Sept. 24, 2020, before U.S. District Judge Kevin McNulty to an information charging him with one count each of conspiring to commit wire fraud, conspiracy to commit health care fraud, and conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.
Christian Mohases, 38, of Santa Ana, California, pleaded guilty by videoconference on Sept. 24, 2020, before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiring to commit health care fraud and one count of conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.
Luis Roa, 51, of Santiago, Chile, pleaded guilty by videoconference on Sept. 24, 2020, before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiring to commit health care fraud and one count of conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.
The announcements are part of a nationwide federal law enforcement effort to combat telemedicine fraud, prescription fraud and durable medical equipment fraud. As part of this effort, the Department of Justice is announcing today the largest amount of alleged fraud loss ever charged – $4.5 billion in allegedly false and fraudulent claims submitted by more than 86 criminal defendants in 19 judicial districts around the country – related to nationwide schemes involving telemedicine: the use of telecommunications technology to provide health care services remotely.
Belter et al.
Beginning in January 2016 and continuing for more than three years, the six defendants exchanged kickbacks and bribes with each other and others. Belter, who owned and operated a marketing company in Ohio called Health Pain Solutions, identified Medicare beneficiaries and targeted them for specific prescription medications or durable medical equipment (DME) like braces. He then sent the beneficiaries’ information to Laughlin and Luke, who owned RediDoc. Belter paid Laughlin and Luke kickbacks for each signed prescription and doctor’s order for those beneficiaries that Laughlin and Luke collected from doctors under contract with RediDoc. Laughlin and Luke in turn paid those doctors kickbacks for each prescription and doctor’s order they signed. Laughlin and Luke transmitted the prescriptions to Apogee, a pharmacy owned and run by Ethan Welwart, William Welwart, and Yaish, and doctor’s orders to DME providers, who submitted claims for reimbursement to Medicare and other insurers. Ethan Welwart, William Welwart, and Yaish at Apogee subsequently paid Belter kickbacks from the reimbursements they received, in exchange for Belter’s actions in originating the beneficiaries’ claims.
After identifying target beneficiaries, Belter or his employees telephoned them, purportedly to obtain their medical history and consent to receive medications or DME. The purpose of these calls was so that Belter could record the conversations with the beneficiaries and convince them to try certain medications or DME. Belter had no medical licenses or training.
Belter purposely did not tell the beneficiaries what doctor would prescribe the medication or DME. The conspirators believed that the beneficiaries may not consent to receive medication or DME from an unknown doctor. In an email to William Welwart and another Apogee employee on Jan. 15, 2018, Belter wrote that, when he called beneficiaries, he did not provide specifics: “I think you might lose some people [beneficiaries] when you mention a Doctor name they have never heard of.”
After obtaining the beneficiary’s medical history and purported consent, Belter transmitted a beneficiary intake form, the recorded call, and a pre-filled prescription for medication or DME order to Laughlin and Luke at RediDoc. Under a contract, Belter paid Laughlin and Luke a fee of approximately $95 for each prescription that RediDoc obtained from one of its contracted doctors; $100 for each DME order; and $115 for a prescription and a DME order.
RediDoc recruited and contracted with doctors around the country to sign prescriptions and DME orders. RediDoc paid its contracted doctors anywhere from $7 to $30 per “consultation,” depending on whether they prescribed medication, DME, or both. For example, according to one RediDoc contract, RediDoc agreed to pay a doctor $15 per “consultation” by telephone with no prescription; $20 per “consultation” resulting in a medication prescription or DME order; and $30 per “consultation” resulting in a medication prescription and DME order. RediDoc had similar contracts with doctors across the country and paid them over $5.5 million during the scheme.
The defendants and other conspirators caused the submission of false and fraudulent claims to health care benefit programs, including Medicare, in excess of $100 million for prescription medication and DME.
The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a potential penalty of five years in prison and a fine of $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.
The government is represented in this case by Senior Trial Counsel Jason S. Gould and Assistant U.S. Attorneys Nicole Mastropieri and Hayden Brockett of the Health Care Fraud Unit in Newark, as well as Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
McCubbins
McCubbins owned and operated a telemedicine company based in Utah that purported to provide health care services through health care professionals to Medicare beneficiaries. McCubbins and others paid kickbacks and bribes to various parties in exchange for referrals and orders for medically unnecessary genetic cancer screening tests (CGX Tests) for Medicare beneficiaries, ultimately leading to approximately $89 million in Medicare payments.
In order to generate referrals of Medicare beneficiaries to the telemedicine company, McCubbins and others paid kickbacks and bribes to individuals operating call centers targeting Medicare beneficiaries for CGX Tests. Once the telemedicine company received the referrals, health care professionals acting on its behalf wrote medically unnecessary orders for CGX Tests for the Medicare beneficiaries. McCubbins bribed medical doctors, nurse practitioners, and physician assistants to prescribe the CGX Tests for Medicare beneficiaries. These health care professionals wrote medically unnecessary orders for CGX Tests without performing legitimate medical consultations and after only cursory telephonic interactions with the Medicare beneficiaries. In addition, the Telemedicine Company also bribed doctors to purportedly “supervise” nurses and other health care professionals in order to legitimize the their prescriptions for CGX Tests. In reality, however, the supervising physicians had no legitimate clinical or collaborative relationship with the health care professionals they claimed to supervise.
Mohases
Mohases and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for DME, namely orthotic braces, and patient referrals for genetic CGX tests for Medicare beneficiaries. Mohases and his conspirators provided these orders and referrals in exchange for bribes from certain companies that provided the braces and performed the CGX Tests, ultimately leading to approximately $8.5 million in Medicare payments for medically unnecessary DME and CGX Tests.
Mohases and his conspirators obtained the DME orders and CGX Test referrals through the use of marketing call centers and telemedicine companies. Mohases used telemedicine companies to generate DME orders that were medically unnecessary because they were generated without any legitimate physician-patient relationship and without complying Medicare’s telemedicine requirements. In order to conceal the kickback arrangements, Mohases and his conspirators entered into sham contracts that made it appear that they were providing legitimate services. Mohases generated false invoices to match the sham contracts and to conceal the kickback scheme.
Roa
Roa and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for DME, namely braces, and patient referrals for CGX tests for Medicare beneficiaries. Roa and his conspirators provided these orders and referrals in exchange for bribes from certain companies that provided the braces and performed the CGX tests, ultimately leading to approximately $6.9 million in Medicare payments for medically unnecessary DME and CGX tests.
Roa and his conspirators obtained the DME orders and CGX test referrals through the use of marketing call centers and telemedicine companies. Roa used telemedicine companies to generate DME orders that were medically unnecessary because they were generated without any legitimate physician-patient relationship and without complying with Medicare’s telemedicine requirements. In order to conceal the kickback arrangements, Roa and his conspirators entered into sham contracts that made it appear that they were providing legitimate services. Roa generated false invoices to match the sham contracts and to conceal the kickback scheme.
The charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater. The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater. The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater.
The government in the cases against McCubbins, Mohases and Roa is represented by Assistant U.S. Attorneys Sean M. Sherman, J. Stephen Ferketic, and Ryan O’Neill of the Opioid Abuse Prevention & Enforcement Unit, and Senior Trial Counsel Ward.
U.S. Attorney Carpenito and Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch. Jr. in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the ongoing investigations.
Department of Justice Invests More than $295.8 Million in Grants to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
The Department of Justice today announced it has awarded more than $295.8 million to improve public safety, serve victims of crime and support youth programs in American Indian and Alaska Native communities.
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
More than $103 million was awarded under the Justice Department’s Coordinated Tribal Assistance Solicitation (CTAS) to enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by the department’s Office of Justice Programs ($41.5 million), Office on Violence Against Women ($39.1 million) and Office of Community Oriented Policing Services ($22.5 million).
“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment – and the federal government's long-standing responsibility – to our tribal partners in the matter of their citizens' safety and wellbeing.”
“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender based violence,” said Office on Violence Against Women Principal Deputy Director Laura L. Rogers. “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”
“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith. “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training and procure equipment needed to keep communities safe.”
An additional $113 million was awarded to 133 applicants under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime (OVC), is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women made additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
Additional awards to support tribal public safety efforts were made by OJP and the COPS Office. OJP’s Bureau of Justice Assistance (BJA) made six awards totaling more than $3.4 million to provide training and technical assistance to federally-recognized tribes and villages. OVC awarded more than $2.2 million to tribes to develop a workforce of direct victim service providers for American Indian and Alaska Native victims of crime in hard-to-staff positions and locations. OJP’s Office of Juvenile Justice and Delinquency Prevention awarded $16.1 million to address the needs of tribal youth, and its Office of Sex Offender Sentencing, Monitoring, Apprehending, and Tracking awarded nearly $7 million to implement the sex offender registration and notification provisions of the Adam Walsh Act.
BJA also awarded almost $1.9 million to 17 tribal communities to address the public safety challenges posed by the outbreak of COVID-19. Funding was made available from the Coronavirus Aid, Relief and Economic Security Act signed by President Trump in March. In addition, BJA awarded over $9.4 million to combat substance abuse in tribal communities, almost $4.3 million to help tribes reintegrate ex-offenders into their communities and $435,843 to tribal jurisdictions under the Justice Assistance Grant Program.
OJP’s National Institute of Justice made one award totaling $99,637 to fund tribal research to address the challenges of fighting crime and strengthening justice in Indian country and Alaska Native villages. The COPS office awarded nearly $800,000 to support tribal law enforcement agencies through training and technical assistance around community policing efforts.
A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
For more information on the Office of Justice Programs, please visit: https://www.ojp.gov/. For more information on the Office on Violence Against Women, please visit: https://www.justice.gov/ovw. For more information on the COPS Office, please visit: https://cops.usdoj.gov/.
Department of Justice Awards over $5 Million in Grants to Improve Public Safety and Serve Crime Victims in Western District of Michigan Tribal CommunitiesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that, as part of a national rollout, the Department of Justice awarded $5,174,318 in grants to improve public safety, serve victims of crime and support youth programs in tribal communities in the Western District of Michigan.
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
“The Department of Justice has a special responsibility when it comes to helping federallyrecognized Tribes keep their communities safe,” explained U.S. Attorney Birge. “These resources underscore that commitment.”
A total of more than $103 million is being awarded to tribes across the country under the Justice Department’s Coordinated Tribal Assistance Solicitation. CTAS supports activities that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by the Department’s Office of Justice Programs ($41.5 million), Office on Violence Against Women ($39.1 million) and Office of Community Oriented Policing Services ($22.5 million).
An additional $113 million is being awarded to 133 applicants nationwide under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime, is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment – and the federal government's long-standing responsibility – to our tribal partners in the matter of their citizens' safety and wellbeing.”
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women is making additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender based violence,” said OVW Principal Deputy Director Laura L. Rogers. “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”
Additional awards to support tribal public safety efforts are being made by OJP and the COPS Office. These grants will provide community policing training and other training and technical assistance. Awards will also address the needs of tribal youth, fund tribal reentry efforts, help tribes combat substance abuse and manage sex offenders, and support tribal research. In addition, funds support efforts in 17 tribal communities to address the challenges posed by the outbreak of COVID-19.
“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith. “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training and procure equipment needed to keep communities safe.”
The following tribes in the Western District of Michigan received funding:
. Bay Mills Indian Community $461,941
Public Safety and Community Policing (COPS)
. Keweenaw Bay Indian Community $900,000
Violence Against Women Tribal Governments Program (OVW)
. Lac Vieux Desert Band of Lake Superior Chippewa Indians $251,841
Violence Against Women Tribal Governments Program (OVW)
. Little River Band of Ottawa Indians $299,815
Tribal Youth Program (OJJDP)
. Little Traverse Bay Bands of Odawa Indians $416,033
Violence Against Women Tribal Governments Program (OVW)
. Nottawaseppi Huron Band of the Potawatomi $658,507
Public Safety and Community Policing (COPS)
. Sault Ste. Marie Tribe of Chippewa Indians $836,284
Violence Against Women Tribal Governments Program (OVW)
. The Grand Traverse Band of the Ottawa and Chippewa Indians $1,349,987
Justice Systems and Alcohol and Substance Abuse (BJA) - $899,897
Children’s Justice Act Partnership for Indian Communities (OVC) - $450,000A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
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Denver Man Pleads Guilty to Possession with Intent to Distribute Psilocybin MushroomsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Kole Milner pleaded guilty to possession with intent to distribute psilocybin mushrooms. The guilty plea was tendered before U.S. District Court Judge R. Brooke Jackson on September 28, 2020. Milner will be sentenced on December 7, 2020. The Denver DEA joined in this announcement.
According to the stipulated facts contained in the defendant’s plea agreement, Milner had a sophisticated psilocybin mushroom cultivation operation in his Denver apartment. His bedroom had a large climate-controlled tent, equipped with lights, fans, humidification and de-humidification devices, and other equipment to aid in the cultivation of psilocybin mushrooms. Milner began to cultivate and distribute psilocybin mushrooms from his apartment in November of 2018. He conducted sales under the name "Happy Fox Edibles.” Milner promoted this name through the media and was the subject of several news articles and videos related to his cultivation and sale of psilocybin mushrooms.
“Psilocybin mushrooms are illegal and are a schedule 1 controlled substance,” said United States Attorney Jason Dunn. “Together with the Denver DEA, our office will ensure the law is enforced.”
This case was investigated by the Denver DEA. The defendant is being prosecuted by Assistant U.S. Attorney Conor Flanigan.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 20-cr-224.
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.
Convicted felon sentenced to federal prison for trafficking firearmsRead the Press Release
ATLANTA - Wesley Joshua Smith has been sentenced to serve five years in federal prison after pleading guilty to aiding and abetting a separately charged accomplice who illegally obtained more than two dozen handguns that Smith trafficked domestically and internationally.
“Straw purchasing firearms is not a victimless crime,” said U.S. Attorney Byung J. “BJay” Pak. “Straw purchasers and the gunrunners who direct them help to fuel the illicit gun trade in Georgia and beyond – often with the firearms turning up only after another crime has been committed.”
“Mr. Smith put guns in the hands of criminals,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta. “Buying guns for people you don’t know, or for people who cannot buy them legally, is a federal crime and we will continue to investigate and arrest those individuals who are engaged in this activity.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between December 2019 and February 2020, Smith paid an accomplice to purchase 28 pistols—always two or three at a time—from various licensed firearms dealers in the metropolitan Atlanta area. Smith was unable to purchase those firearms himself as a result of a 2013 conviction for an unrelated firearms offense in the state of Maryland, where he had previously resided.
At the time of each purchase, Smith’s accomplice completed paperwork in which he falsely claimed to be the actual buyer of the firearms when he knew that he was buying the guns for Smith, at Smith’s direction, and with Smith’s money. Within days and weeks of the firearm purchases by Smith and his accomplice, local police officers in Maryland, the District of Columbia, and Canada recovered nearly a half-dozen of these weapons from crime scenes.
On February 10, 2020, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives saw Smith accept a delivery of four, 9mm semiautomatic pistols and four, large capacity 30-round ammunition magazines. Agents arrested Smith after he tried to avoid apprehension by physically resisting an agent and attempting to flee.
Wesley Joshua Smith, a/k/a “Menace,” 34, of Atlanta, Georgia, was sentenced on September 21, 2020, to five years of imprisonment, to be followed by three years of supervised release by Chief U.S. District Judge Thomas W. Thrash, Jr.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
This case was also brought as part of Project Guardian, a national Department of Justice initiative to reduce gun violence and enforce federal firearms laws, including those related to firearms trafficking. More information about Project Guardian can be found at https://www.justice.gov/projectguardian.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted Felon Pleads Guilty to Discharging A Firearm Near Fond Du Lac SchoolRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of SHELBY GENE BOSWELL, 28, to illegally possessing and discharging a firearm in a school zone. BOSWELL, who was initially charged on November 6, 2019, entered his guilty plea today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed with the court, on October 18, 2019, BOSWELL knowingly and with reckless disregard for the safety of others, discharged a firearm on the grounds of Fond du Lac Head Start which is within a distance of 1,000 feet of the grounds of Fond du Lac Ojibwe High School. Because he has prior felony convictions in Beltrami County, Carlton County, and in U.S. District Court for the District of Minnesota, BOSWELL is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota Bureau of Criminal Apprehension, the Carlton County Sheriff’s Office, and the Fond du Lac Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant U.S. Attorneys Andrew R. Winter and Bradley M. Endicott are prosecuting the case.
Defendant Information:
SHELBY GENE BOSWELL, 28
Fond du Lac, Minn.
Convicted:
- Felon in possession of a firearm, 1 count
- Discharge of a firearm in a school zone, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Chicago Man Sentenced to 10 Years for Conspiracy to Distribute Heroin in MemphisRead the Press Release
Memphis, TN – Leon Cooper, 51 has been sentenced to 120 months in federal prison for conspiracy to distribute more than 1 kilogram of heroin. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, in late 2015 the Shelby County Sheriff's Office and the Drug Enforcement Administration began an investigation into a group of drug traffickers in Memphis. Their investigation led to several individuals pooling their money together to buy kilograms of heroin from a source of supply in Chicago. The Memphis co-conspirators were arrested on March 5, 2016, with a kilogram of heroin in their possession and sentenced in late 2016.
As the investigation continued, officers and agents identified the drug supplier as a Jeffrey Brooks of Chicago, Illinois, who was charged and convicted as a co-defendant. Cooper was also identified as a member of the conspiracy, who helped the Memphis co-conspirators contact Brooks to request the heroin. The object of the conspiracy was to bring heroin to Memphis and distribute it in small amounts to users and addicts. During the course of the conspiracy, over 15 kilograms of heroin was trafficked between Chicago and Memphis.
On September 29, 2020, U.S. District Court Judge John T. Fowlkes Jr., sentenced Leon Cooper to 120 months in federal prison followed by 5 years supervised release. There is no parole in the federal system.
United States Attorney D. Michael Dunavant said: "Our nation and our district are suffering from the heroin and opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing our communities apart. We will not tolerate out-of-state poison pushers who threaten West Tennessee citizens for profit.
This Chicago trafficker brought large quantities of heroin into Memphis for resale, and will now reap a long prison sentence for his harmful crimes."
This case was investigated by the Shelby County Sheriff's Office and the Drug Enforcement Administration (DEA).
Special Assistant Joseph Griffith prosecuted this case on behalf of the United States. This case is part of the Heroin Initiative in collaboration with the Shelby County District Attorney's Office.
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Charleston Man Pleads Guilty to Escape ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pled guilty to an escape charge, announced United States Attorney Mike Stuart. Douglas Wesley, 32, pled guilty to walking away from a halfway house earlier this year.
“When you do the crime, you must do the time – including your time in a halfway house,” said United States Attorney Mike Stuart. “Leaving and not returning to the Dismas Charities facility is a sure way to add more time to your sentence.”
Wesley admitted that in June of this year, he left Dismas Charities, Inc., a Bureau of Prisons residential reentry facility, without permission and did not return. He had been serving a sentence for a federal gun crime conviction and was transferred to Dismas to serve the remainder of the sentence.
Wesley faces up to five years imprisonment when sentenced on December 29, 2020.
The U.S. Marshals Service conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Negar M. Kordestani is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00131.
Follow us on Twitter: SDWVNews and USAttyStuart
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California Man Sentenced to 13 Years’ Imprisonment for Role in Interstate Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Crispin Fernandez, age 27, of Pacoima, California, was sentenced on September 30, 2020 to 13 years’ imprisonment and to serve 10 years on supervised release by U.S. District Court Judge Malachy E. Mannion for his participation in a heroin trafficking conspiracy that shipped more than a kilogram of heroin from California to Carbon County, Pennsylvania.
According to United States Attorney David J. Freed, Fernandez previously pleaded guilty to conspiracy to distribute more than a kilogram of heroin, which is equivalent to more than 40,000 retail bags of heroin, between July 2018 and November 2018.
The case was investigated by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Colorado Springs Man Sentenced to 5 Years in Federal Prison for Possession of a Firearm During a Drug Trafficking CrimeRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jenaireo Wade of Colorado Springs was sentenced to serve 60 months (5 years) in federal prison followed by 3 years on supervised release for possession of a 9mm pistol during a drug trafficking crime. The Denver Division of the FBI joined in this announcement.
According to the stipulated facts contained in Wade’s plea agreement, on November 1, 2018, Colorado Springs Police Department (CSPD) Officers and agents from the FBI were investigating the robbery of a Colorado Springs bank and, while surveilling a local building thought to be related to the robbery, saw Wade go back and forth between his car and the building several times. Wade then left the property and was stopped by police and detained. A search of Wade found $6,000 in cash, which was seized as potential evidence related to the bank robbery. Wade was then released, only to show up again later that day at the same building under surveillance. When officers attempted to contact Wade in the parking lot and ordered him to stop, Wade fled on foot. Following a short pursuit, officers arrested Wade and searched him, this time finding a 9mm semi-automatic pistol, nearly 300 hundred illegal opioid pills, and more cash. Wade was subsequently charged with being a felon in possession of a firearm, as well as with drug trafficking offenses, and ultimately pleaded guilty to possessing a firearm during a drug trafficking crime.
“Thanks to the solid work of our law enforcement partners and the prosecutors in our office, another armed criminal has been taken off the streets through the use of federal crime gun sentencing,” said U.S. Attorney Jason Dunn. “These prosecutions are a critical and straight-forward tool in getting the worst criminals out of our communities quickly, and we are happy to use them anytime our local partners ask for our help.”
“The FBI and Colorado Springs Police Department worked in close collaboration to identify and effectively disrupt an interstate criminal conspiracy, and put an end to a series of dangerous robberies,” stated Denver FBI SAC Michael Schneider. “This law enforcement partnership and diligent pursuit of justice resulted in a favorable outcome for the affected communities.”
Wade was prosecuted by Assistant U.S. Attorney Jason St. Julien. The sentence was pronounced by U.S. District Court Judge R. Brooke Jackson on September 28, 2020. The case was investigated by the FBI and the CSPD.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 19-cr-221.
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. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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.
Butler County Man Pleads Guilty to Gun ChargeRead the Press Release
A man who illegally possessed a gun pled guilty September 24, 2020, in federal court in Sioux City.
Michael Limkemann, 35, Clarksville, IA, was convicted of illegal possession of a firearm as a felon and user of controlled substances. Limkemann was previously convicted of felony drug and weapons crimes which made it illegal for him to possess a gun.
At the plea hearing, Limkemann admitted that sometime in either May or September 2019, Limkemann had given a .22 rifle to another drug user. Limkemann further admitted to possessing the .22 rifle while he was a user of methamphetamine and marijuana.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Limkemann remains in custody of the United States Marshal pending sentencing. Limkemann faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than 3 years of supervised release following any imprisonment.
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 is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Clarksville Police Department, Butler County Sheriff’s Department and the Bureau of Alcohol, Tobacco and Firearms Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3010. Follow us on Twitter @USAO_NDIA.
Brazilian National Pleads Guilty to Firearm TraffickingRead the Press Release
BOSTON – A Brazilian national, who previously resided in Malden, pleaded guilty today to immigration and firearms crimes.
Vanderlei Rodrigues DeAraujo, a/k/a Neneco, 43, pleaded guilty to one count of dealing in firearms without a license, two counts of being an alien in possession of a firearm and ammunition and one count of illegal reentry of a previously deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 21, 2021. De Araujo was arrested in May 2019 and has been in custody since.
De Araujo, a citizen and national of Brazil, was deported to Brazil on Aug. 18, 2011. Sometime after his 2011 removal, De Araujo illegally reentered the United States and took up residence in Malden using the name “Neneco.” Between Sept. 6, 2018 and Jan. 28, 2019, De Araujo illegally negotiated with and sold firearms and ammunition to a third party. In May 2019, De Araujo was arrested, and his fingerprints were found to match prints in his Alien file as a previously deported alien.
The charge of engaging in the business of dealing in firearms without a license carries a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of being an alien in possession of firearm and ammunition carries a sentence of up to 10 years in prison, three years supervised release and a fine of up to $250,000. The charge of unlawful reentry of a previously deported alien carries a sentence of up to two years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made announcement today. Valuable assistance was provided by Homeland Security Investigations in Boston, the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division and the Malden Police Department. Assistant U.S. Attorneys Kenneth G. Shine, Evan Gotlob and Lindsey Weinstein of Lelling’s Criminal Division are prosecuting the case.
Box Elder man sentenced to 10 years in prison for sex with minor girl on Rocky Boy's Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man who admitted having sex with a minor girl and to recording the activity on his cell phone was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Christopher Brown, 32, pleaded guilty in June to possession of child pornography and to sexual abuse of a minor.
Chief U.S. District Judge Brian M. Morris presided.
"The defendant not only subjected this child to repeated sexual abuse for his own gratification, but he also filmed the act of exploiting the child for his own gratification. The sentence in this case should serve as a warning that those who traumatize our children will be prosecuted to the full extent of the law," U.S. Attorney Alme said.
The prosecution said in court documents that from July 2018 to January 2020, Brown had sex with a minor girl on the Rocky Boy's Indian Reservation. On Jan. 2, 2020, Brown video recorded himself having sex with the victim and kept that video on his cell phone. Brown began messaging the victim on social media when she was 11 years old.
In an interview with the FBI, Brown admitted he had been in a sexual relationship with the victim since 2018 and had had intercourse with her six times. Brown also admitted to making a video of a recent sexual encounter with the victim and that the video was on his cell phone.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Chippewa Cree Law Enforcement Services.
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Bartholomew County man sentenced to 30 years in federal prison for sexual exploitation of a childRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Levi Alexander Walters, 28, Westport, Ind., was sentenced to 30 years in federal prison for three counts of sexual exploitation of a child.
“To uncover evidence that a man you trusted, entered your child’s bedroom, and preyed upon her innocence while she tried to sleep is every parent’s worst nightmare,” said Minkler. “Bringing that perpetrator to justice is an essential part of restoring that child’s belief that there are still good adults who will protect her.”
The investigation into Walters’ conduct began when the child victim’s mother called police to report that she found videos on Walters’ phone, showing Walters engaged in sexual conduct with her child, who was younger than 10 years old. Deputies from the Bartholomew County Sheriff’s Office responded to the victim’s residence and were met with a very volatile situation. Walters had obtained two firearms and threatened to commit suicide after the child’s mother found evidence of the abuse and began calling police. The deputies were able to place Walters in custody, ensuring the immediate safety of the victim and her mother.
The Indiana State Police Cyber Crime Unit were requested to conduct an examination of Walters’ cell phone. The examination revealed numerous videos and images depicting the sexual exploitation of a minor.
This case was investigated by the Federal Bureau of Investigation, the Bartholomew County Sheriff’s Department, and the Indiana State Police.
“This type of behavior will not be condoned in Bartholomew County,” said Bartholomew County Sheriff’s Chief Deputy Major Chris Lane. “Our focus is always on the victim in these types of cases; we want to always be sure they get the justice and the compassion they deserve.”
“Indiana State Police investigators work diligently every day, all across Indiana, and in close collaboration with its law enforcement partners, to bring to justice those who seek to perpetuate the victimization of children”, said Indiana State Police Superintendent Douglas G. Carter.
“This sentence should put child predators around the state on notice that the FBI and our law enforcement partners do not tolerate child exploitation in Indiana,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will use every technique in our arsenal to unmask you and hold you accountable for your criminal activity.”
According to Assistant United States Attorney Kristina Korobov, who prosecuted this case for the government, said Chief Judge Jane Magnus-Stinson also sentenced Walters to an additional 15 years of supervised release following his federal prison sentence, and ordered him to pay over $10,000 in restitution to the minor victim.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to target, investigate, and prosecute those who exploit and harm children or other vulnerable victims. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 4.1 and 4.2)
Baltimore Man Facing Federal Indictment for Illegal Possession of A FirearmRead the Press Release
Baltimore, Maryland – A federal grand jury yesterday returned an indictment charging Brandon Goforth, age 36, of Baltimore, Maryland, with possession of a firearm and ammunition by a prohibited person. A federal complaint was filed on September 25, 2020.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division and Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the complaint, on November 27, 2019, a Sergeant in the Baltimore Police Department was conducting a business check at a business located in Baltimore City. While inside the establishment, the Sergeant heard several gunshots coming from down the street, and exited the establishment to investigate. Brandon Goforth was seen firing a handgun toward a crowd of people standing on the corner of North Avenue and Mount Street in Baltimore’s Penn North neighborhood. Goforth continued firing the gun towards the crowd while running westbound on North Avenue, then placed the handgun inside his right coat pocket while running into an alley.
Once officers located Goforth, the Sergeant positively identified him as the individual that had fired a handgun into a crowd of people. At the time of the shooting, Goforth had been wearing a black, grey, and green jacket. Officers located the jacket, also containing 20 baggies of marijuana, in an adjacent yard. Officers also recovered a black hat, a face mask, and a pistol loaded with five rounds of ammunition along the retraced route.
Goforth was previously convicted of a felony offense and is therefore prohibited from possessing a firearm.
The United States Attorney’s Office and our law enforcement partners are continuing our efforts to address the gun violence plaguing the Baltimore area by using federal statutes prohibiting felons from possessing firearms. These types of reactive gun cases are part of the Exile program. Maryland EXILE is part of Project Safe Neighborhoods (“PSN”), our violent-crime reduction strategy. The United States Attorney’s Office, through the use of Project Safe Neighborhoods and Project Guardian, will continue to pursue felons with guns who constitute a clear and present danger to the safety and welfare of the citizens of Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the ATF and BPD for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney LaRai Everett, who is prosecuting the case.
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Acton Investment Advisor Pleads Guilty to Stealing More than $3.7 Million of Clients’ FundsRead the Press Release
BOSTON – An Acton man pleaded guilty today in connection with a long-running scheme to steal money from clients of his investment advisor business, in which he fraudulently obtained more than $3.7 million from more than 20 clients.
Gerald Allan Eaton, 51, pleaded guilty to one count of wire fraud, one count of mail fraud and one count of aggravated identity theft. U.S. District Judge Douglas P. Woodlock scheduled sentencing for Jan. 26, 2021.
Eaton was a certified financial planner, doing business under the name Heritage Financial Group, with an office in Acton. In that capacity, Eaton invested his clients’ funds in securities and various insurance products, including life insurance policies and annuities. From at least 1999 through October 2019, Eaton stole millions of dollars from clients’ accounts. He did so primarily by selling securities, insurance policies and annuities in clients’ accounts, and causing the proceeds to be sent to accounts he owned or controlled.
As part of his scheme, Eaton forged clients’ signatures on checks and documents, or caused clients to sign documents by falsely representing that the proceeds of transactions would be used for the clients’ benefit. Eaton also falsely represented to the brokerage firm with which he was affiliated, and to insurance companies, that the transactions he requested on his clients’ behalf were for the benefit of those clients. In fact, Eaton caused proceeds to be sent to his own credit card accounts to pay his personal and family expenses, and to his home equity line of credit. In order to avoid detection, Eaton defrauded clients he knew were unlikely to notice what he had done, either because they were elderly or in poor mental or physical condition.
The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine or twice the gross gain/loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, one year of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
In a parallel action, the Securities and Exchange Commission (SEC) entered an order barring Eaton from the securities industry based on the same conduct.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U. S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit, prosecuted the case.
22-Year Old Felon-In-Possession Sentenced to 92 MonthsRead the Press Release
GREENSBORO, N.C. – A Winston-Salem man was sentenced on September 29, 2020, by United States District Court Judge Catherine C. Eagles to 92 months in prison and three years of supervised release for a firearm offense, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
DARRIAN SYLVESTER SCOTT, JR., age 22, was charged with possession of a firearm by a felon. He pleaded guilty to the charge on May 15, 2020.
According to court documents, on January 7, 2020, Winston-Salem Police Department (WSPD) officers conducting routine patrol in an unmarked police vehicle in the area of Piedmont Circle initiated a traffic stop on a vehicle driven by SCOTT, JR. He tried to flee, first driving the car over a curb and through grass toward apartment buildings. He then got out of the vehicle while it was still moving and fled on foot. The car continued in drive until it struck an apartment building on East Twenty-Ninth Street. WSPD officers chased and apprehended SCOTT, JR., then returned to the vehicle where they observed a firearm in plain view wedged between the driver’s seat and middle console. The firearm – a Glock, model 22, 40 caliber, with an extended magazine -- was loaded with 24 rounds of .40 caliber ammunition. SCOTT, JR. was previously convicted of Common Law Robbery with an offense date of 10/09/2016, and given an active sentence of 10-21 months. SCOTT, JR. was also convicted of Possession of a Stolen Motor Vehicle with an offense date of 08/28/2017, and given an active sentence of 11-23 months.
“We will continue to join with our local law enforcement partners to aggressively investigate and prosecute gun crime,” said U.S. Attorney Matt Martin. “I commend the Winston- Salem Police Department and ATF for excellent work in this case.”
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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29 September 2020
Yuba County Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — John Maasen, 64, of Olivehurst, was sentenced today by U.S. District Judge John A. Mendez to 10 years in prison for possession of child pornography, U.S. Attorney McGregor W. Scott announced.
Maasen pleaded guilty in June 2020, and according to the plea agreement, on Jan. 16, 2019, Maasen knowingly possessed visual depictions of minors engaged in sexually explicit conduct.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Shea J. Kenny and Amy S. Hitchcock prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
White River Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Anthony Black Wolf, age 33, was indicted on September 9, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 28, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 12, 2020, in Mellette County, South Dakota, Black Wolf assaulted an individual with an axe with the intent to do bodily harm, and the assault resulted in serious bodily injury.
The charges are merely accusations and Black Wolf is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Black Wolf was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Western PA Drug Trafficking Organization Based in New Castle DismantledRead the Press Release
PITTSBURGH – Thirteen members of a drug trafficking organization were indicted by a federal grand jury for trafficking significant quantities of cocaine and fentanyl, United States Attorney Scott W. Brady announced today.
"Mexican cartels present a clear and present danger to the safety and well-being of our western Pennsylvania communities," said U.S. Attorney Brady. "Our success in dismantling such a broad-reaching drug trafficking network is due to strong local, state and federal coordination, and the leadership of Lawrence County DA Joshua Lamancusa and Mercer County DA Peter Acker. Together, we remain committed to keep these drugs – and the violence and public health challenges they bring – out of our neighborhoods and communities."
"McKnight and his associates are alleged to have distributed five kilograms or more of cocaine and over forty grams of illicit fentanyl across Western Pennsylvania. These are both dangerous drugs, however, illicit fentanyl has caused thousands of overdose deaths across our region," said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. "This investigation was successful due to our working relationship with our law enforcement partners such as HSI, IRS-CID, USPS-OIG, PSP, the Pennsylvania Office of Attorney General, the New Castle Police Department, and the Lawrence County Drug Task Force."
"Today we recognize the culmination of local, state and federal agencies working together toward one common goal – the dismantling of a serious drug ring," said Pennsylvania Attorney General Josh Shapiro. "This coordinated effort resulted in the arrests of 12 subjects and seizures that included almost 100,000 doses of heroin and significant doses of cocaine, fentanyl, and more. This operation will have lasting positive impact in Pennsylvania, particularly Lawrence and Mercer counties."
"Yesterday’s operation was the culmination of months of federal, state and local collaborative policing efforts," said Lawrence County District Attorney Joshua Lamancusa. "Dozens of law enforcement officers and prosecutors from western Pennsylvania spent hundreds of hours investigating and preparing this case. It was through their tireless efforts and steadfast dedication to duty that Pennsylvania is a safer place today."
"Mercer County has a significant drug trafficking and overdose problem, which is not only local in scope but intercounty, interstate and apparently international, said Mercer County District Attorney Peter Acker. "As District Attorney of Mercer County I am extremely grateful for the support of the U.S. Attorney Scott Brady and his staff in Pittsburgh, the U.S. Drug Enforcement Administration, the PA Office of Attorney General Bureau of Narcotics Investigation, the Lawrence County District Attorney's Drug Task Force, the Mercer County Critical Incident Response Team and all our other partners who coordinate our efforts to attack our drug problems. Yesterday's arrests in Farrell and New Castle demonstrate the effectiveness of our coordinated efforts and they will not be the last."
The Indictment, returned on September 22 and unsealed yesterday, charges the following individuals with conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine, in the Western District of Pennsylvania and elsewhere, from in and around March of 2019, and continuing until in and around September of 2020:
• Bruce McKnight. 53, of Columbus, OH;
• Norberto Castillo-Lopez, 31, of Mexico;
• Jossian Ayala-Ruberte, 39, of Kissimmee, FL;
• Luis Mattei-Albizu, 39, of Columbus, OH;
• Nathaniel McKnight, 28 of New Castle, PA;
• Michael Talbert, 41, of Farrell, PA;
• Tony McKnight, 55, of New Castle, PA;
• Trevor Austin, 46, of Sharon, PA;
• Thomas Pierce, Jr., 48, of Farrell, PA;
• Thomas Jones, 44, of Farrell, PA;
• Romondo Oatis, 46, of Farrell, PA;
• Darnell Latham, 51, of New Castle, PA; and
• Brandon Jetter, 39, of McKeesport, PA.
The Indictment also charges Defendants Bruce McKnight and his nephew, Nathaniel McKnight, with conspiring to distribute and possess with intent to distribute forty grams or more of fentanyl, in the Western District of Pennsylvania and elsewhere, from in and around March of 2020, and continuing until in and around September of 2020.
The law provides for a maximum total sentence of not less than ten years to a maximum of life imprisonment, a fine of up to $10,000,000, or both, as to each charged Defendant. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The DEA in Pittsburgh, PA led the multi-agency investigation that included members of the DEA, Columbus, OH; DEA, Harrisburg, PA; Homeland Security Investigations (HSI), Pittsburgh, PA; HSI, Orlando, FL; Internal Revenue Service-Criminal Investigation; United States Postal Service – Office of Inspector General, Eastern Area Field Office; Pennsylvania Office of the Attorney General; Pennsylvania State Police; Lawrence County Drug Task Force – Special Investigations Unit; and the New Castle Police Department.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Reaches Agreement to Protect New Orleans Waterways and Lake PontchartrainRead the Press Release
WASHINGTON – Today, the U.S. Environmental Protection Agency (EPA) and the Department of Justice announced a settlement with the Churchill Downs Louisiana Horseracing Company LLC, d/b/a Fair Grounds Corporation (Fair Grounds) that will resolve years of Clean Water Act (CWA) violations at its New Orleans racetrack.
Under the settlement, Fair Grounds will eliminate unauthorized discharges of manure, urine and process wastewater through operational changes and construction projects at an estimated cost of $5,600,000. The company also will pay a civil penalty of $2,790,000, the largest ever paid by a concentrated animal feeding operation in a CWA matter.
“We are pleased to announce an agreement with Churchill Downs to address years of Clean Water Act violations at its Fair Grounds Racetrack in New Orleans,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “This consent decree will stop the flow of untreated process wastewater into the local sewer system, which leads to local waters used for fishing and ultimately Lake Pontchartrain, in a way that recognizes the challenges presented by the racetrack’s urban location.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana (EDLA). “The U.S. Attorney’s Office, EDLA is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk,”
“This consent decree will halt discharges of manure, urine, and contaminated wastewater from the Fair Grounds racetrack into the London Avenue Canal, which flows into Lake Pontchartrain,” said Susan Bodine, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “As a result, we are protecting opportunities by the community to use these waters for fishing and other recreational activities.”
The United States’ complaint alleges that Fair Grounds violated the CWA, including the terms and conditions of its Louisiana Pollutant Discharge Elimination System (LPDES) permit issued pursuant to Section 402 of the CWA. Specifically, the complaint alleges that, since at least 2012, Fair Grounds has regularly discharged untreated process wastewater into the New Orleans municipal separate storm sewer system, leading to the London Avenue Canal, Lake Pontchartrain, the Mississippi River, and ultimately to the Gulf of Mexico. Fair Grounds’ permit prohibits any discharge unless there is a significant rain event (i.e., when 10 inches of rain falls in 24 hours).
In violation of their permit, Fair Grounds has discharged wastewater after as little as a half-inch of rain, as well as in dry weather. The complaint alleges that unauthorized discharges of contaminated wastewater occurred more than 250 times between 2012 and 2018. The untreated wastewater contains manure, urine, horse wash water, and other biological materials that are “pollutants” as defined by the CWA, the facility’s permit, and the applicable EPA and Louisiana Department of Environmental Quality (LDEQ) regulations.
Fair Grounds is a horse racing facility located in New Orleans, Louisiana and is surrounded by residential neighborhoods that are considered environmental justice communities. The London Avenue Canal flows through neighborhoods that have been designated as opportunity zones.
The Fair Grounds’ New Orleans racetrack is a large CAFO, and during a typical horseracing season, Fair Grounds stables as many as 1,800 horses or more at one time. The facility includes a 38.8-acre production area that includes stables, horse stall barns and receiving barns, horse wash racks, horse walkways, manure storage areas, and storage areas for raw materials. The facility also includes a one-mile dirt racetrack and a 7/8-mile turf racetrack, the infield area, the grandstand, the casino, and associated parking areas.
As part of the settlement, Fair Grounds will implement best management practices and construction projects designed to eliminate unauthorized discharges and ensure compliance with its permit and the CWA. Fair Grounds will also perform site-specific sampling, monitoring and hydraulic modeling to help the company and EPA determine whether the remedial actions required by the consent decree are successful in eliminating unauthorized discharges. Furthermore, the consent decree includes a provision requiring Fair Grounds to implement additional remedial measures if these measures do not successfully eliminate unauthorized discharges.
This case is precedential because it includes the highest civil penalty ever collected by the EPA in a CWA enforcement action against a CAFO. In addition, this case is part of EPA’s National Compliance Initiative for Reducing Significant Noncompliance with National Pollutant Discharge Elimination System Permits.
The settlement was lodged today in the U.S. District Court for the Eastern District of Louisiana and is subject to a 30-day public comment period. The penalty is due within 30 days of the effective date of the consent decree.
For more information about this settlement please visit: https://www.epa.gov/enforcement/churchill-downs-louisiana-horseracing-company-llc-clean-water-act-settlement
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Reaches Agreement to Protect New Orleans Waterways and Lake PontchartrainRead the Press Release
Today, the U.S. Environmental Protection Agency (EPA) and the Department of Justice announced a settlement with the Churchill Downs Louisiana Horseracing Company LLC, d/b/a Fair Grounds Corporation (Fair Grounds) that will resolve years of Clean Water Act (CWA) violations at its New Orleans racetrack.
Under the settlement, Fair Grounds will eliminate unauthorized discharges of manure, urine and process wastewater through operational changes and construction projects at an estimated cost of $5,600,000. The company also will pay a civil penalty of $2,790,000, the largest ever paid by a concentrated animal feeding operation in a CWA matter.
“We are pleased to announce an agreement with Churchill Downs to address years of Clean Water Act violations at its Fair Grounds Racetrack in New Orleans,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “This consent decree will stop the flow of untreated process wastewater into the local sewer system, which leads to local waters used for fishing and ultimately Lake Pontchartrain, in a way that recognizes the challenges presented by the racetrack’s urban location.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana (EDLA). “The U.S. Attorney’s Office, EDLA is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk,”
“This consent decree will halt discharges of manure, urine, and contaminated wastewater from the Fair Grounds racetrack into the London Avenue Canal, which flows into Lake Pontchartrain,” said Susan Bodine, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “As a result, we are protecting opportunities by the community to use these waters for fishing and other recreational activities.”
The United States’ complaint alleges that Fair Grounds violated the CWA, including the terms and conditions of its Louisiana Pollutant Discharge Elimination System (LPDES) permit issued pursuant to Section 402 of the CWA. Specifically, the complaint alleges that, since at least 2012, Fair Grounds has regularly discharged untreated process wastewater into the New Orleans municipal separate storm sewer system, leading to the London Avenue Canal, Lake Pontchartrain, the Mississippi River, and ultimately to the Gulf of Mexico. Fair Grounds’ permit prohibits any discharge unless there is a significant rain event (i.e., when 10 inches of rain falls in 24 hours).
In violation of their permit, Fair Grounds has discharged wastewater after as little as a half-inch of rain, as well as in dry weather. The complaint alleges that unauthorized discharges of contaminated wastewater occurred more than 250 times between 2012 and 2018. The untreated wastewater contains manure, urine, horse wash water, and other biological materials that are “pollutants” as defined by the CWA, the facility’s permit, and the applicable EPA and Louisiana Department of Environmental Quality (LDEQ) regulations.
Fair Grounds is a horse racing facility located in New Orleans, Louisiana and is surrounded by residential neighborhoods that are considered environmental justice communities. The London Avenue Canal flows through neighborhoods that have been designated as opportunity zones.
The Fair Grounds’ New Orleans racetrack is a large CAFO, and during a typical horse racing season, Fair Grounds stables as many as 1,800 horses or more at one time. The facility includes a 38.8-acre production area that includes stables, horse stall barns and receiving barns, horse wash racks, horse walkways, manure storage areas, and storage areas for raw materials. The facility also includes a one-mile dirt racetrack and a 7/8-mile turf racetrack, the infield area, the grandstand, the casino, and associated parking areas.
As part of the settlement, Fair Grounds will implement best management practices and construction projects designed to eliminate unauthorized discharges and ensure compliance with its permit and the CWA. Fair Grounds will also perform site-specific sampling, monitoring and hydraulic modeling to help the company and EPA determine whether the remedial actions required by the consent decree are successful in eliminating unauthorized discharges. Furthermore, the consent decree includes a provision requiring Fair Grounds to implement additional remedial measures if these measures do not successfully eliminate unauthorized discharges.
This case is precedential because it includes the highest civil penalty ever collected by the EPA in a CWA enforcement action against a CAFO. In addition, this case is part of EPA’s National Compliance Initiative for Reducing Significant Noncompliance with National Pollutant Discharge Elimination System Permits.
The settlement was lodged today in the U.S. District Court for the Eastern District of Louisiana and is subject to a 30-day public comment period. The penalty is due within 30 days of the effective date of the consent decree.
For more information about this settlement please visit: https://www.epa.gov/enforcement/churchill-downs-louisiana-horseracing-company-llc-clean-water-act-settlement
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Robert J. Higdon, Jr. Announces $1,083,465.00 Awards to Combat Human Trafficking in North CarolinaRead the Press Release
RALEIGH, N.C. – U.S. Attorney Robert J. Higdon, Jr. for the Eastern District of North Carolina today announced that the First Fruit Ministries received a $500,000 grant from the Department of Justice’s Office of Justice Programs, through its component, Office for Victims of Crime (OVC). In addition, the Research Triangle Institute received a grant of $583,465 from the component, National Institute of Justice (NIJ), to fund efforts that combat human trafficking and provide vital services to trafficking victims throughout the United States.
“The scourge of human trafficking is the modern-day equivalent of slavery, brutally depriving victims of basic human rights and essential physical needs as it erodes their sense of dignity and self-worth,” said Attorney General William P. Barr. “The Department of Justice is relentless in its fight against the perpetrators of these heinous crimes. Working with state and local law enforcement and community victim service providers, we will continue to bring these criminals to justice and deliver critical aid to survivors.”
“Human trafficking -a form of modern day slavery- debases and demeans some of our most vulnerable citizens,” remarked U.S. Attorney Higdon. “And fighting this horrible practice, in whatever form, goes to the heart of why law enforcement exists and why we daily work to improve the quality of life for all the people of the Eastern District.”
Nationally, the Office for Victims of Crime (OVC) awarded over $97.4 million to state, local and tribal jurisdictions, service providers and task forces all over the country, while OJP’s National Institute of Justice awarded the remaining $3.5 million to support research and evaluation on human trafficking.
“Human trafficking is a massive global enterprise with roots in cities and communities here in America and across the world,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is using all the resources at its disposal to help our state, local and tribal partners uncover and eradicate trafficking operations and help victims open the door to a new life.”
Grants awarded under fiscal year (FY) 2020 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs:
- The Enhanced Collaborative Model Task Force to Combat Human Trafficking program awards over $22.7 million total. OVC awards over $17.7 million to 27 programs to support the effectiveness of collaborative and multidisciplinary task forces to combat human trafficking. The purpose of this program is to develop and strengthen programs for victims of human trafficking, including enhancing the capacity of law enforcement and other stakeholders to identify victims and provide justice for those victims through the investigation and prosecution of their traffickers. OVC also awards nearly $5 million in grants to three organizations for training and technical assistance for the task forces.
- The Housing Assistance Grants for Victims of Human Trafficking program awards over $35.1 million total to 73 organizations to provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding to help victims locate permanent housing, secure employment and receive occupational training and counseling.
- The Improving Outcomes for Child and Youth Victims of Human Trafficking program awards over $4.2 million total to four recipients to integrate human trafficking policy and programming at the state or tribal level. This program will enhance coordinated, multidisciplinary and statewide approaches to at-risk populations to improve outcomes for children and youth who are victims of human trafficking.
- The Preventing Trafficking of Girls program awards $1.8 million total to four organizations, including a training and technical assistance provider, to support prevention and early intervention services, including mentoring and other direct support services for girls who are at risk of or are victims of sex trafficking.
- The Services for Minor Victims of Sex Trafficking program gives over $6.8 million to four recipients to develop, expand and strengthen assistance programs for minor victims of sex trafficking. Under this program, the funded states, tribes, and units of local government will provide (directly and through partnerships) an array of services that minor victims of human trafficking often require to address their need for safety, security, and healing.
- The Services for Minor Victims of Labor Trafficking program awards nearly $2 million total to three organizations to develop, expand, or strengthen victim service programs for minor victims of labor trafficking whose victimization occurred when they were under the age of 18.
- The Services for Victims of Human Trafficking program awards more than $23.6 million to 43 organizations to support services specific to victims of human trafficking.
- The Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking program awards $643,163 total to deliver specialized training and technical assistance to victim service organizations to enhance their ability to provide appropriate housing for victims of human trafficking.
- OVC awards the Promoting Employment Opportunities for Survivors of Trafficking Training and Technical Assistance Project continuation funding in the amount of $300,000 to increase access to quality educational and employment opportunities for survivors of human trafficking.
Grants awarded under FY 2020 NIJ programs aim to understand law enforcement practices with regard to preventing and responding to victims of trafficking. Specific programs:
- The Research and Evaluation of Trafficking in Persons program awards over $2.5 million total to four organizations to build upon research and evaluation efforts to better understand, prevent and respond to trafficking in persons in the United States.
- The Research on Law Enforcement Responses to Sex Trafficking of Minors program awards nearly $1 million to understand how law enforcement practices with regard to preventing and responding to the sex trafficking of minors have evolved since passage of the Victims of Trafficking and Violence Protection Act of 2000. NIJ was specifically interested in understanding how widely law enforcement agencies have adopted practices based on the perspective that the minor is a victim rather than a delinquent and the challenges that agencies have faced in adopting such practices.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ovchumantraffickingfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
A copy of this press release is located on our website.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- The Enhanced Collaborative Model Task Force to Combat Human Trafficking program awards over $22.7 million total. OVC awards over $17.7 million to 27 programs to support the effectiveness of collaborative and multidisciplinary task forces to combat human trafficking. The purpose of this program is to develop and strengthen programs for victims of human trafficking, including enhancing the capacity of law enforcement and other stakeholders to identify victims and provide justice for those victims through the investigation and prosecution of their traffickers. OVC also awards nearly $5 million in grants to three organizations for training and technical assistance for the task forces.
U.S. Attorney Mike Hurst, ATF, Hattiesburg Police Department, Forrest County Sheriff’s Office, and Mississippi Bureau of Narcotics and Others Announce Significant Operation in Pine Belt Under Project EjectRead the Press Release
Hattiesburg, Miss. – This week, federal, state and local law enforcement in the Pine Belt executed arrest warrants in and around Hattiesburg and Forrest County, including a number of individuals indicted and arrested on federal criminal charges.
Over the past year, under the U.S. Attorney’s Office’s Project EJECT and led by Assistant U.S. Attorney Andrew W. Eichner, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Hattiesburg Police Department, the Lamar County Sheriff’s Office, Drug Enforcement Administration (“DEA”), Federal Bureau of Investigation (FBI), the Forrest County Sheriff’s Office, the Mississippi Bureau of Narcotics and others have focused investigations on career criminal offenders, armed narcotics traffickers, and documented gang members in and around Hattiesburg and throughout Forrest County. These investigations involved controlled purchases of illegal narcotics, targeted follow ups and interviews driven by and based upon intelligence and evidence gathered, and coordination amongst prosecutors and officers to prioritize and marshal resources towards the worst criminal offenders throughout the Pine Belt.
“Under Project EJECT, we are taking drug dealers and violent criminals off our streets and making our communities safer. Today’s announcement of the indictment and arrest of 7 prominent drug dealers in the Pine Belt is a result of the important work that these brave men and women in law enforcement have been doing to clean up our streets, make our neighborhoods safe, and protect our citizens. I want to thank our agents, officers, deputies and prosecutors for their hard work in bringing these criminals to justice,” said U.S. Attorney Hurst.
”ATF remains committed to working with our law enforcement partners to remove violent drug dealers from our communities,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “We are proud to be a member of Project EJECT and will continue to do our part to help reduce firearm violence.”
“U.S. Attorney, Mike Hurst, you and your staff have been a tremendous asset in our crime reduction plan. Through Project EJECT you have helped us remove some of the most violent offenders from the streets of Hattiesburg. I want to thank, U.S. Attorney Mike Hurst and staff, by combining our resources as a team, it provides us an avenue for continued success in our fight against crime,” said Hattiesburg Police Department Chief Anthony Parker.
“Today’s arrests are a culmination of hard work, collaboration, and cooperation between multiple agencies to make our communities safer. Crime and drugs have no jurisdictional boundaries and coordinated efforts and information sharing always produces superior results. I want to personally thank all of the agencies involved for a successful operation,” said Charlie Sims, Forrest County Sherriff.
“Working in partnership with local, state, and federal authorities to improve the quality of life for the citizens of Mississippi is a priority for MBN,” said Colonel Steven Maxwell, Director of the Mississippi Bureau of Narcotics. “Thus, the removal of drug traffickers and violent offenders from our businesses and residential communities is imperative."
This collaborative effort has resulted in the indictment by the U.S. Attorney’s Office of 7 defendants on federal drug charges, one of whom has already pled guilty.
- In January 2020, Shane Ware trafficked over 200 grams of methamphetamine with 100% purity into Hattiesburg.
- On two separate occasions in January 2020, Bradford Mark sold almost half a kilogram of methamphetamine with purity levels ranging up to almost 90%.
- In February 2020, Alfred Richards sold over 100 grams of methamphetamine in Hattiesburg with 99% purity.
- On two separate occasions in February 2020, Demetric Evans sold a total of over 200 grams of methamphetamine with 100% purity.
- On two separate occasions in March 2020, Kevin Taylor trafficked almost half a kilogram of methamphetamine into Hattiesburg, which was 99% pure, extremely deadly.
- Earlier this year, Amos Blanks was indicted federal for having trafficked meth in Hattiesburg in 2017 and 2019. Mr. Blanks pled guilty to one count of methamphetamine trafficking on July 23, 2020 and will be sentenced before Senior U.S. District Judge Keith Starrett on November 18, 2020 at 9:30 am.
- Georgio R. Scott was indicted for being a felon in possession of ammunition.
These cases are a part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
U.S. Attorney Maria Chapa Lopez Announces over $2.8 Million in Awards to Combat Human Trafficking in Middle District of FloridaRead the Press Release
Tampa, FL – U.S. Attorney Maria Chapa Lopez today announced that the Middle District of Florida has received $2,879,856 from the Department of Justice’s Office of Justice Programs, through its component, Office for Victims of Crime (OVC), to fund efforts that combat human trafficking and provide vital services to trafficking victims throughout the United States.
“The scourge of human trafficking is the modern-day equivalent of slavery, brutally depriving victims of basic human rights and essential physical needs as it erodes their sense of dignity and self-worth,” said Attorney General William P. Barr. “The Department of Justice is relentless in its fight against the perpetrators of these heinous crimes. Working with state and local law enforcement and community victim service providers, we will continue to bring these criminals to justice and deliver critical aid to survivors.”
“These awards will assist our partners as they continue the critically important work of rescuing, recovering, and assisting victims of the heinous crime of human trafficking reclaim their lives,” said U.S. Attorney Maria Chapa Lopez. “We will continue to aggressively go after the perpetrators of these horrible crimes and support our partners and the victims, in every way possible.”
Nationally, the Office for Victims of Crime (OVC) awarded over $97.4 million to state, local and tribal jurisdictions, service providers and task forces all over the country, while OJP’s National Institute of Justice awarded the remaining $3.5 million to support research and evaluation on human trafficking. Awards were made to the following recipients to support efforts that combat human trafficking and/or provide services for human trafficking survivors:
Catholic Charities, Diocese of Venice, Inc. $500,000 Citrus Health Network, Inc. $499,995 United Way of Pasco County, Inc. $498,000 Goodwill Industries – Suncoast, Inc. $349,895 Latisha’s Home Foundation Florida, LLC $350,000 Living Above the Noise, Inc. $681,966“Human trafficking is a massive global enterprise with roots in cities and communities here in America and across the world,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is using all the resources at its disposal to help our state, local and tribal partners uncover and eradicate trafficking operations and help victims open the door to a new life.”
Grants awarded under fiscal year (FY) 2020 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs:
- The Enhanced Collaborative Model Task Force to Combat Human Trafficking program awards over $22.7 million total. OVC awards over $17.7 million to 27 programs to support the effectiveness of collaborative and multidisciplinary task forces to combat human trafficking. The purpose of this program is to develop and strengthen programs for victims of human trafficking, including enhancing the capacity of law enforcement and other stakeholders to identify victims and provide justice for those victims through the investigation and prosecution of their traffickers. OVC also awards nearly $5 million in grants to three organizations for training and technical assistance for the task forces.
- The Housing Assistance Grants for Victims of Human Trafficking program awards over $35.1 million total to 73 organizations to provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding to help victims locate permanent housing, secure employment and receive occupational training and counseling.
- The Improving Outcomes for Child and Youth Victims of Human Trafficking program awards over $4.2 million total to four recipients to integrate human trafficking policy and programming at the state or tribal level. This program will enhance coordinated, multidisciplinary and statewide approaches to at-risk populations to improve outcomes for children and youth who are victims of human trafficking.
- The Preventing Trafficking of Girls program awards $1.8 million total to four organizations, including a training and technical assistance provider, to support prevention and early intervention services, including mentoring and other direct support services for girls who are at risk of or are victims of sex trafficking.
- The Services for Minor Victims of Sex Trafficking program gives over $6.8 million to four recipients to develop, expand and strengthen assistance programs for minor victims of sex trafficking. Under this program, the funded states, tribes, and units of local government will provide (directly and through partnerships) an array of services that minor victims of human trafficking often require to address their need for safety, security, and healing.
- The Services for Minor Victims of Labor Trafficking program awards nearly $2 million total to three organizations to develop, expand, or strengthen victim service programs for minor victims of labor trafficking whose victimization occurred when they were under the age of 18.
- The Services for Victims of Human Trafficking program awards more than $23.6 million to 43 organizations to support services specific to victims of human trafficking.
- The Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking program awards $643,163 total to deliver specialized training and technical assistance to victim service organizations to enhance their ability to provide appropriate housing for victims of human trafficking.
- OVC awards the Promoting Employment Opportunities for Survivors of Trafficking Training and Technical Assistance Project continuation funding in the amount of $300,000 to increase access to quality educational and employment opportunities for survivors of human trafficking.
Grants awarded under FY 2020 NIJ programs aim to understand law enforcement practices with regard to preventing and responding to victims of trafficking. Specific programs:
- The Research and Evaluation of Trafficking in Persons program awards over $2.5 million total to four organizations to build upon research and evaluation efforts to better understand, prevent and respond to trafficking in persons in the United States.
- The Research on Law Enforcement Responses to Sex Trafficking of Minors program awards nearly $1 million to understand how law enforcement practices with regard to preventing and responding to the sex trafficking of minors have evolved since passage of the Victims of Trafficking and Violence Protection Act of 2000. NIJ was specifically interested in understanding how widely law enforcement agencies have adopted practices based on the perspective that the minor is a victim rather than a delinquent and the challenges that agencies have faced in adopting such practices.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ovchumantraffickingfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Two Puerto Rico Natives Apprehended at St. Thomas Hotel, Charged with Possession with Intent to Distribute 30 Kilograms of CocaineRead the Press Release
St. Thomas, USVI – Rafael Velez-Lopez, 24, and Emanuel Campbell Camacho, 29, of Vieques, PR, appeared today before Magistrate Judge Ruth Miller for preliminary and detention hearings after being taken into custody by Drug Enforcement Administration (DEA) at the Windward Passage Hotel last Friday. Velez-Lopez and Camacho were charged with Possession with Intent to Distribute Cocaine, United States Attorney Gretchen C.F. Shappert announced. At the conclusion of the hearing, Magistrate Judge Miller detained Velez-Lopez and Camacho pending formal charges in this case.
According to court records, on Tuesday, September 22, 2020, DEA agents received intelligence concerning two unidentified males who had recently traveled by commercial flight from Puerto Rico to St. Thomas, and were driving a purple Jeep Wrangler. The first individual was described as a light-skin Puerto Rican male with blonde, shoulder length hair, and was later identified as Emanuel Campbell Camacho. The second individual was described as a Puerto Rican male with multiple tattoos on his arms, and was later identified as Carlos Rafael Velez-Lopez.
After two days of surveillance, on September 24, 2020, DEA agents tracked Velez-Lopez and Camacho to the Windward Passage Hotel as the vehicle they were occupying entered the gated parking area of the hotel. Later, at approximately 7:15 p.m., Camacho was observed leaning into the passenger side of the vehicle, and moments later, he was observed carrying a large, heavily weighted duffle type bag into the hotel courtyard. As he proceeded into the courtyard of the Windward Passage Hotel, agents observed Camacho carrying the weighted duffle bag up the stairs leading to the second floor level of the hotel. As the agents approached Camacho, they saw Lopez-Velez near the top of the stairs, sitting on a bench with a cell phone in his hands. Both Camacho and Lopez-Velez were taken into custody. Agents later discovered 30 brick-shaped objects in the black duffle bag that Camacho was carrying. A sample taken from one of the bricks tested positive for the presence of cocaine.
This case is being investigated by DEA and is being prosecuted by Assistant United States Attorney Delia L. Smith. United States Attorney Shappert reminds the public that a complaint is merely a charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Two Defendants Agree to Plead Guilty to Multi-Million Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – A Colorado woman and a Florida woman have agreed to plead guilty in connection with a multi-million dollar Medicare fraud scheme.
Jessica Jones, 30, of Louisville Colo., and Elizabeth Putulin, 30, of Coconut Creek, Fla., were each charged by Information with one count of conspiracy to commit health care fraud. Plea hearings have not yet been scheduled by the Court.
According to charging documents, Jones and Putulin conspired with Juan Camilo Perez Buitrag to submit more than $109 million in false and fraudulent claims for durable medical equipment (DME) such as arm, back, knee and shoulder braces. Perez was charged in July 2020 and has agreed to plead guilty. A plea hearing for Perez is scheduled for Oct. 5, 2020.
It is alleged that the Jones and Putulin helped Perez manufacture and submit false and fraudulent Medicare claims by establishing shell companies in more than a dozen different states, including Massachusetts. Perez directed employees, including Jones and Putulin, to list his mother, wife and yacht captain as corporate directors and to use fictitious names when registering the shell companies as DME providers. At Perez’s request, Jones and Putulin allegedly purchased Medicare patient data from foreign and domestic call centers that targeted elderly patients, and instructed call centers to contact the Medicare beneficiaries with an offer of ankle, arm, back, knee and/or shoulder braces “at little to no cost.” Perez then submitted Medicare claims for those patients without obtaining a prescriber’s order to ensure that the braces were medically necessary. It is further alleged that he submitted blatantly fraudulent claims, including claims for deceased patients and repeat claims for the same patient and the same DME. Perez failed to provide any DME for more than $7.5 million in claims. When Perez did provide DME to patients, he typically billed insurance policies more than 12 times the average price of the DME that he provided to the patient.
Jones and Putulin further facilitated the fraud by answering frequent phone calls from Medicare patients who received DME that they did not request, want or need. Jones and Putulin also responded to insurance companies’ requests for prescriber’s orders and medical records, which they were unable to provide.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
Todd County Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Todd County, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 28, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Edward Zane Roubideaux, Jr., age 30, was sentenced to 21 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roubideaux was indicted by a federal grand jury on December 10, 2019. He pled guilty on July 20, 2020.
Roubideaux was convicted of Abuse of a Minor in May 2008. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Between August 15, 2019, and September 19, 2019, Roubideaux failed to register and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Roubideaux was immediately turned over to the custody of the U.S. Marshals Service.
Thailand National Indicted for Defrauding New Jersey Company in Purchase of Personal Protective EquipmentRead the Press Release
NEWARK, N.J. – A Thailand national was indicted today for defrauding a New Jersey company in its purchase of COVID-19 personal protective equipment (PPE) intended for combating the COVID-19 virus, U.S. Attorney Craig Carpenito announced.
The defendant, known only by the alias “Dang Chanchai,” is charged with nine counts of wire fraud for defrauding the victim company of approximately $1.5 million.
According to the indictment:
From at least March 2020 through May 2020, Chanchai knowingly and intentionally devised a scheme to defraud the victim company by means of materially false and fraudulent pretenses, making false representations about his ability to provide 3M Company (3M) N95 respirator and surgical masks through an entity Chanchai identified as UTE Group Company Limited (UTE).
Chanchai falsely represented himself and UTE as a distributor of 3M N95 masks. On March 17, 2020, Chanchai sent the victim company a contract that falsely represented that UTE could and would supply 10 million N95 masks. The victim company agreed to purchase from Chanchai and UTE approximately 1 million 3M N95 masks for ultimate delivery to health care providers in Europe.
From April 20, 2020, through April 30, 2020, Chanchai sent the victim company fake documents purporting to be from 3M, including a fake purchase order from 3M showing the order by UTE of the masks purchased by victim company. The fake documents also included false representations about the status of the production of the masks, as well as requests for payments to satisfy the order. Based on the fake 3M documents, the company ordered 300,000 additional masks. Chanchai provided the company with two more fake 3M documents, confirming the new order and falsely representing that the new order would be ready for pick-up on May 13, 2020.
Based on Chanchai’s misrepresentations, the victim company wired payments totaling $1,494,306 to UTE. Chanchai and UTE did not provide a single 3M N95 mask to the company and ceased communicating with the company after receiving the final payment under the agreement.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross pecuniary gain or loss from the offense, whichever is greater.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by U.S. Attorney Carpenito, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected]
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Springfield Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man has been sentenced in federal court for his role in a conspiracy to distribute large amounts of methamphetamine.
Ronald A. Stone, 52, was sentenced by U.S. District Judge Stephen R. Bough on Friday, Sept. 25, to 20 years in federal prison without parole.
On May 16, 2019, Stone pleaded guilty to participating in a conspiracy to distribute methamphetamine in Greene County, Missouri, from March 30 to Aug. 30, 2017. Stone also pleaded guilty to possessing methamphetamine to distribute and to possessing firearms in furtherance of drug trafficking.
Springfield police officers executed a search warrant at Stone’s residence on March 30, 2017, and seized a Hi Point 9mm semi-automatic pistol, a Crown Royal bag that contained rounds of 9mm ammunition, and 7.61 grams of methamphetamine.
Officers executed another search warrant at Stone’s residence on Aug. 19, 2017, and seized a distributive amount of methamphetamine, a loaded Taurus .39-caliber revolver, a loaded Vega .45-caliber semi-automatic pistol, and $5,661.
On Aug. 29, 2017, a confidential informant reported that Stone was preparing to travel to the Kansas City area to buy methamphetamine. DEA agents conducted surveillance of Stone as he traveled to Peculiar, Missouri, where he met an unknown man in a Denny’s parking lot. During his return trip to Springfield, Missouri State Highway Patrol troopers stopped the vehicle and conducted a search. They seized three large bags that contained a total of approximately 6.8 pounds of methamphetamine.
Stone is the second defendant to be sentenced in this case. Co-defendant Carol A. Hardy, also known as Carol A. Johnson, 51, also pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Dec. 14, 2018, to 20 years in federal prison without parole. Law enforcement officers executed a search warrant at Hardy’s residence and found 1.766 kilograms of methamphetamine in a safe on the floor of a bedroom closet.
Co-defendant Richard G. Wacker, 61, pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing. Wacker admitted that he traveled to Kansas City on several occasions to purchase a half-pound of methamphetamine. After making two trips with Stone, according to Wacker’s plea agreement, Stone began making the trips to Kansas City without Wacker every two to three days. Stone purchased two pounds on each trip, one pound for himself and one pound for Wacker.
Two days after Stone’s arrest, Wacker drove from Kansas City to Oklahoma City, where he purchased five kilograms of methamphetamine for $45,000. Wacker admitted that he had traveled to Oklahoma City to purchase five kilograms of methamphetamine on two earlier occasions.
Wacker also admitted that he distributed pound quantities of methamphetamine to co-defendant Herbert R. Dinger, 65, of Springfield. Dinger pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.