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Wednesday 19 August 2020
Cleveland man charged with COVID-19 hoaxRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury in Cleveland has returned a four-count indictment charging Walter Ray Poindexter, age 32, of Cleveland with false information and hoaxes.
According to court documents, on March 14, 2020, Greater Cleveland Regional Transit Authority (GCRTA) Police Officers responded to calls of an intoxicated individual aboard a downtown trolley, later identified as Poindexter. The defendant was subsequently arrested and transported to the Cuyahoga County Jail due to an outstanding warrant in Franklin County. During the processing of the defendant for public intoxication and a parole violation warrant, the defendant allegedly claimed that he had difficulty breathing and that he had the coronavirus. As the GCRTA officers attempted to carry the defendant into the jail, the defendant is accused of purposefully coughing into the police officers’ faces. The defendant is also accused of intentionally coughing in the direction of the Cuyahoga County Jail nurse after repeatedly claiming that he had coronavirus.
The defendant was then transferred to MetroHealth hospital for medical evaluation. Upon arrival in the emergency room, the defendant is alleged to have repeatedly claimed to have coronavirus and once again began coughing and spitting in the direction of the paramedics, police officers and hospital staff. It is alleged that while the paramedics attempted to move the defendant from the gurney to the hospital bed, the defendant sat up and spat directly in the face of a paramedic.
The defendant and paramedic were later administered a pathogen test that came back as negative for the virus.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant's sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Cleveland Division of the FBI and the Greater Cleveland Regional Transit Authority Police. This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Jerome J. Teresinski.
Charlotte Couple Pleads Guilty to Conspiracy to Distribute Prescription OpioidsRead the Press Release
ABINGDON, Virginia – A Charlotte, North Carolina-based doctor and his wife pleaded guilty today in U.S. District Court in Abingdon to charges that they conspired to illegally distribute prescription opioids in the Western District of Virginia and then made a false statement about the conduct, United States Attorney Thomas T. Cullen announced today.
David Francis Lelio, 57, and Nadja Siiri Kujanson-Lelio, 50, both of Charlotte, N.C., each pleaded guilty to one count of conspiracy to distribute prescription opioids, specifically oxycodone. David Lelio also pleaded guilty to an additional count of making a false statement. Both will be sentenced on December 10, 2020.
The pair admitted that between 2016 and 2019, Dr. David Lelio wrote more than 60 prescriptions for oxycodone to patients, some of who resided in Wythe County, Virginia, without a legitimate medical purpose. As part of the conspiracy, Dr. Lelio wrote opioid prescriptions in his patients’ names with the understanding that some or all of the prescriptions would be shared with his wife, Nadja Kujanson-Lelio. Dr. Lelio and his wife then reimbursed the patients for the cost of filling the prescriptions. When asked by law enforcement about the conspiracy, David Lelio falsely stated there was no agreement with any of his patients to return or share the prescription opioids with his wife.
The investigation of the case was conducted by the Wythe County Sheriff’s Office, the Virginia State Police, and the Drug Enforcement Administration. Assistant United States Attorneys Lena Busscher and Randy Ramseyer are prosecuting the case for the United States.
Charleston Tax Preparer and Mother Indicted for FraudRead the Press Release
CHARLESTON, W.Va. – A federal grand jury has handed down two separate indictments charging a Charleston tax preparer and her mother in connection with a fraud scheme, according to United States Attorney Mike Stuart.
“Small businesses and entrepreneurs are the backbone of the American economy. Business is tough especially for smaller businesses that may not have the resources of larger enterprises. In this case, the victims did everything right- hired good employees, managed their company, and, as all good business should do, hired an accountant. Unfortunately, they hired what we allege is a fraudster that, for nearly a decade, faked, constructed and defrauded her victims out of nearly $600,000,” said United States Attorney Mike Stuart. “These two indictments- separate but certainly related- allege a very complex fraud scheme carried out by the defendants for the purpose of personal enrichment. Greed for lack of a better term. I applaud the efforts of our federal and state law enforcement partners for conducting the quick, but thorough investigation resulting in today’s indictments.”
“A great deal of trust was placed in these two individuals to not violate the fiduciary responsibility they had with their clients,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “Instead, these women chose to pocket the hard earned money of local companies. The FBI does not take lightly any betrayal of trust and will fully investigate these crimes.”
Misty Brotherton-Tanner, 40, was charged in an 18-count indictment with wire fraud, aggravated identity theft, unlawful monetary transactions and making false statements. She faces up to 270 years in prison, with as much as four years running consecutively, a $4.5 million fine and three years of supervised release, if convicted.
The indictment alleges that from 2014 until March 13, 2020, Brotherton-Tanner provided tax preparation and bookkeeping services to several businesses, including three West Virginia corporations, all located in Kanawha County. The indictment further alleges that she had provided the same services in the past to a now dissolved Kanawha County non-profit. According to the indictment, as part of Brotherton-Tanner’s work for the companies, she had access to each company’s accounting software that was connected to each of the company’s bank accounts. Brotherton-Tanner used QuickBooks software to embezzle from the local businesses - she created "ghost" employee accounts and then funneled the money to the employee accounts before ultimately transferring the money to bank accounts over which she maintained control. Brotherton-Tanner used identities of herself, members of her family and others to create "ghost" employee accounts at the companies and connected those to her personal bank accounts. She was not employed by any of the companies, but would submit bills for her services to get paid. She created herself an employee profile in each company’s Quickbooks payroll system, knowing that she was not entitled or authorized to receive the funds she transferred to herself. According to the indictment, Brotherton-Tanner also transferred a portion of the stolen funds to a non-profit’s bank account that she controlled and from the nonprofit’s bank account, she would then write checks to be distributed to herself and her family members, including Lois Brotherton, who is charged in a separate indictment. In addition, the indictment alleges that Brotherton-Tanner fraudulently misrepresented to two companies that she had filed the federal and state tax returns for both of the companies, although she knew she had not filed the tax returns or paid the taxes due since 2013. In furtherance of the scheme, Brotherton-Tanner made six electronic transfers from a third company’s bank account to the State of West Virginia Tax Department to pay off the state tax debt of one of the companies in an attempt to conceal her previous fraudulent transfers to herself and other “ghost employees.” According to the indictment, Brotherton-Tanner defrauded several businesses of at least $582,696.
In a separate five count indictment, Brotherton-Tanner’s mother, Lois Brotherton, 65, was indicted for conspiracy to commit wire fraud and wire fraud. She faces up to 100 years in prison, a $1 million fine and three years of supervised release, if convicted. According to the indictment, Brotherton also provided bookkeeping, accounting and website design services to the same Kanawha County non-profit organization as Brotherton-Tanner. The non-profit is now dissolved. According to the indictment, in 2017, Brotherton asked Brotherton-Tanner to write her checks from the non-profit’s bank account, although Brotherton knew she was not entitled to those funds. Brotherton-Tanner agreed to do so. Brotherton would receive money at the non-profit that her daughter would transfer from three different companies, without their knowledge or consent. Brotherton would then deposit the money into her personal account. As a result, the indictment alleges that Brotherton and Brotherton-Tanner defrauded the companies of at least $48,509.
The cases were investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service-Criminal Investigations, the United States Postal Inspection Service and the West Virginia State Tax Department-Criminal Investigation Division. United States Attorney Mike Stuart and Assistant United States Attorneys Erik Goes and Kathleen Robeson are handling the prosecution.
Please note: An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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-00146 (Brotherton-Tanner) 2:20-cr-00147 (Brotherton).
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Cedar Rapids Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
Anthony Rush, age 31, of Cedar Rapids, Iowa, has been charged with being a felon in possession of a firearm. The charge is contained in an Indictment unsealed on August 14, 2020, in United States District Court in Cedar Rapids.
The Indictment alleges that, in May 2020, Rush possessed a pistol after having been convicted of attempted burglary in the second degree in Linn County in 2012.
If convicted, Rush faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years on supervised release following any imprisonment.
Rush appeared on August 14, 2020, in federal court in Cedar Rapids and was released on bond. Rush’s next appearance for trial is set for October 13, 2020.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
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.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-62.
Follow us on Twitter @USAO_NDIA.
Catholic Charities of Southern Nevada Agrees to Pay over $200K to Resolve Claims It Fraudulently Billed the United States for Community Service GrantsRead the Press Release
PHILADELPHIA and LAS VEGAS – United States Attorney for the Eastern District of Pennsylvania, William M. McSwain, and United States Attorney for the District of Nevada, Nicholas A. Trutanich, jointly announced that Catholic Charities of Southern Nevada (Catholic Charities) has agreed to pay $206,368.35 to resolve claims arising from its administration of community service grants funded through the Corporation for National and Community Service (CNCS).
From 2003 until 2018, Catholic Charities administered multiple grants in CNCS’s Senior Corps program. These grants included the Foster Grandparent Program, which places seniors in school and community settings to serve youth with exceptional needs, and the Senior Companion Program, which places seniors in community and residential settings to assist other seniors who have difficulty with tasks of daily living. These programs provide small hourly stipends to the volunteers performing these services.
The settlement resolves claims that in 2014 and 2015, Catholic Charities’ employees who oversaw the Foster Grandparent and Senior Companion programs falsified records for the stipend recipients. They also directed recipients to falsify records, leading to CNCS grant funds being used to pay stipends for hours that were never actually worked, were in violation of program requirements, or were inflated.
When Catholic Charities executive management discovered the fraudulent actions of its employees, it voluntarily disclosed them through the CNCS-OIG hotline. It terminated the employees who had perpetrated the fraud and cooperated fully in the United States’ investigation of its administration of these grants. In 2018, Catholic Charities relinquished the grants entirely.
“Every federal grantee, including community service organizations, is required to honestly and openly report the service that its volunteers perform. Every dollar spent on an hour that was not actually served is one that is not available to support other community service efforts,” said U.S. Attorney McSwain. “Strict compliance with grant requirements ensures that federal funds reach those who need it most.”
“Each day, Catholic Charities of Southern Nevada feeds the hungry, provides shelter for the homeless, and supports families and seniors in need of assistance. The federal government relies on its non-profit partners to help ensure that federal grant funds are being used to assist their communities,” said U.S. Attorney Trutanich. “Today’s settlement is a reminder that everyone receiving federal grant funds must adhere to grant compliance requirements and self-report misuse of federal grant funds, as Catholic Charities of Southern Nevada did here. “
“Catholic Charities acted responsibly upon discovering fraud, promptly reported the misconduct, cooperated actively with the investigation and willingly made the taxpayers whole,” said CNCS’s Inspector General Deborah J. Jeffrey. “As a result, Catholic Charities was appropriately spared substantial penalties and fines. We thank our partners at the U.S. Attorney’s Offices in the Eastern District of Pennsylvania and Nevada for protecting the integrity of CNCS.”
United States Attorneys McSwain and Trutanich also praised Catholic Charities’ work in addressing the issues in these programs: “We commend Catholic Charities of Southern Nevada for promptly reporting these issues when they were discovered and for working with the Department of Justice and the Corporation for National and Community Service to make the government whole. We hope this settlement will serve as a message to other senior managers to be vigilant in overseeing government-funded programs and to ensure that their employees do not attempt to conceal any non-compliance. All organizations accepting federal funds should take their responsibility to the American taxpayers seriously to come forward promptly and cooperate fully if they discover that they have not lived up to their promises.”
This investigation was conducted jointly by the United States Attorney’s Offices for the Eastern District of Pennsylvania and District of Nevada with the Corporation for National and Community Service Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Veronica Finkelstein of the Eastern District of Pennsylvania and Troy Flake of the District of Nevada handled the investigation and settlement. This case was initiated as a part of the U.S. Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force focus on grant fraud.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Catholic Charities of Southern Nevada Agrees to Pay over $200K to Resolve Claims It Fraudulently Billed the United States for Community Service GrantsRead the Press Release
LAS VEGAS and PHILADELPHIA– United States Attorney for the District of Nevada Nicholas A. Trutanich and United States Attorney for the Eastern District of Pennsylvania William M. McSwain jointly announced that Catholic Charities of Southern Nevada (Catholic Charities) has agreed to pay $206,368.35 to resolve claims arising from its administration of community service grants funded through the Corporation for National and Community Service (CNCS).
From 2003 until 2018, Catholic Charities administered multiple grants in CNCS’s Senior Corps program. These grants included the Foster Grandparent Program, which places seniors in school and community settings to serve youth with exceptional needs, and the Senior Companion Program, which places seniors in community and residential settings to assist other seniors who have difficulty with tasks of daily living. These programs provide small hourly stipends to the volunteers performing these services.
The settlement resolves claims that in 2014 and 2015, Catholic Charities’ employees who oversaw the Foster Grandparent and Senior Companion programs falsified records for the stipend recipients. They also directed recipients to falsify records, leading to CNCS grant funds being used to pay stipends for hours that were never actually worked, were in violation of program requirements, or were inflated.
When Catholic Charities executive management discovered the fraudulent actions of its employees, it voluntarily disclosed them through the CNCS-OIG hotline. It terminated the employees who had perpetrated the fraud and cooperated fully in the United States’ investigation of its administration of these grants. In 2018, Catholic Charities relinquished the grants entirely.
“Each day, Catholic Charities of Southern Nevada feeds the hungry, provides shelter for the homeless, and supports families and seniors in need of assistance. The federal government relies on its non-profit partners to help ensure that federal grant funds are being used to assist their communities,” said U.S. Attorney Trutanich. “Today’s settlement is a reminder that everyone receiving federal grant funds must adhere to grant compliance requirements and self-report misuse of federal grant funds, as Catholic Charities of Southern Nevada did here.”
“Every federal grantee, including community service organizations, is required to honestly and openly report the service that its volunteers perform. Every dollar spent on an hour that was not actually served is one that is not available to support other community service efforts,” said U.S. Attorney McSwain. “Strict compliance with grant requirements ensures that federal funds reach those who need it most.”
“Catholic Charities acted responsibly upon discovering fraud, promptly reported the misconduct, cooperated actively with the investigation and willingly made the taxpayers whole,” said CNCS’s Inspector General Deborah J. Jeffrey. “As a result, Catholic Charities was appropriately spared substantial penalties and fines. We thank our partners at the U.S. Attorney’s Offices in the Eastern District of Pennsylvania and Nevada for protecting the integrity of CNCS.”
United States Attorneys Trutanich and McSwain also praised Catholic Charities’ work in addressing the issues in these programs: “We commend Catholic Charities of Southern Nevada for promptly reporting these issues when they were discovered and for working with the Department of Justice and the Corporation for National and Community Service to make the government whole. We hope this settlement will serve as a message to other senior managers to be vigilant in overseeing government-funded programs and to ensure that their employees do not attempt to conceal any non-compliance. All organizations accepting federal funds should take their responsibility to the American taxpayers seriously to come forward promptly and cooperate fully if they discover that they have not lived up to their promises.”
This investigation was conducted jointly by the United States Attorney’s Offices for the District of Nevada and Eastern District of Pennsylvania with the Corporation for National and Community Service Office of Inspector General. Assistant United States Attorneys Troy Flake of the District of Nevada and Paul W. Kaufman and Veronica Finkelstein of the Eastern District of Pennsylvania handled the investigation and settlement. This case was initiated as a part of the U.S. Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force focus on grant fraud.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Canadian National Charged with Alien Smuggling Conspiracy and Attempting to Bring Aliens to the United StatesRead the Press Release
Cooperation efforts between United States and Turks and Caicos Islands law enforcement authorities culminated in today’s extradition to the United States of a Canadian national who has been charged with alien smuggling offenses.
Sri Kajamukam Chelliah, aka “Mohan,” 55, is charged in a criminal complaint, unsealed today in the U.S. District Court for the Southern District of Florida, with conspiracy to bring aliens to the United States and to encourage and induce aliens to come to, enter, or reside in the United States for commercial advantage and private financial gain, and attempting to bring aliens to the United States for commercial advantage and private financial gain.
“The defendant allegedly facilitated a smuggling operation by attempting to transport aliens through various countries, including the United States, for financial gain,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This case demonstrates the department’s commitment to working with our foreign law enforcement partners to prosecute human smugglers who seek to thwart our system of legal immigration, jeopardize our national security, and risk the lives of people who face the dangers of maritime smuggling.”
“Human smugglers not only violate our country’s immigration laws and threaten our national security, they also put in jeopardy the very lives of the people they transport,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Alongside its local, national, and foreign partners, my office is firmly committed to prosecuting members of international criminal organizations and others who try to profit from this callous activity.”
“Transnational Criminal Organizations use human smuggling as a means for profit while at the same time threatening the security of the United States” said Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami. “HSI will continue to work with our international law enforcement partners to target criminal organizations who conspire to undermine our nation’s laws for their own profit.”
According to the complaint, Chelliah is alleged to have attempted to facilitate the travel of aliens from Sri Lanka through Haiti, Turks and Caicos Islands, and the Bahamas to the United States from on or about July 1, 2019 to Oct. 10, 2019. On Oct. 10, 2019, Turks and Caicos Island authorities interdicted a Haitian sloop sailboat carrying Chelliah and 154 aliens, including 28 Sri Lankan nationals. Chelliah was arrested on local immigration charges and later sentenced. Following the completion of his prison sentence, he was placed in immigration detention in Turks and Caicos. U.S. law enforcement determined Chelliah and others allegedly made arrangements to smuggle numerous Sri Lankan aliens to Canada through the United States for monetary payments.
Chelliah was arrested on July 28, 2020, by Turks and Caicos authorities, based on a provisional arrest request submitted by the United States. He consented to extradition and, on Aug. 15, 2020, the Governor of Turks and Caicos issued an order allowing the extradition to the United States.
This case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit and U.S. Customs and Border Protection (CBP). The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The case is being prosecuted by Trial Attorneys Rami S. Badawy and John Alex-Romano of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida. HRSP Trial Attorney Jim Hepburn provided substantial assistance during the investigation. The Justice Department’s Office of International Affairs provided significant assistance in the investigation and in securing the defendant’s extradition to the United States. The Department of Justice gratefully acknowledges the government of Turks and Caicos Islands for their valuable assistance.
The charges contained in the Chelliah complaint are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
California Woman Pleads Guilty to Iowa Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty August 19, 2020, in federal court in Sioux City.
Marissa Weisbly, 33, from Los Osos, CA, was convicted of conspiring to distribute methamphetamine.
At the plea hearing, Weisbly admitted that on February 8, 2020, while patrolling the Grand Falls Casino parking lot in Larchwood, IA, law enforcement ultimately recovered four bags containing 1,215 grams of actual methamphetamine, two digital scales, drug paraphernalia, $817 in a safe, heroin, and marijuana in the vehicle Weisbly shared with two others. Weisbly further admitted that she and her co-conspirators had brought pounds of methamphetamine to the Midwest to distribute to others.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Weisbly remains in custody of the United States Marshal and will remain in custody pending sentencing. Weisbly faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Mikala Steenholdt and was investigated by the Lyon County Sheriff’s Office, Lyon County Attorney’s Office, and Iowa Department of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4064. Follow us on Twitter @USAO_NDIA.
Bay Area Man Sentenced to Nine Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
SAN JOSE – Oscar Sepulveda was sentenced to 108 months in prison and ordered to pay $9,000 in restitution for distributing and possessing child pornography, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentence was handed down by the Honorable Beth L. Freeman, U.S. District Judge.
Sepulveda, 34, of San Jose, pleaded guilty to the charges on October 8, 2019. According to the plea agreement Sepulveda admitted to using a website which allowed him to share sexually explicit images with other users and communicate with other users about the images. One such image was shared with 40 other users at one time. The defendant also possessed over 750 sexually explicit images of children on his personal devices. Sepulveda also admitted that the website gave him access to videos some of which portrayed sexual abuse of an infant or toddler. On November 29, 2018, a federal grand jury indicted Sepulveda charging him with one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B), and one count of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2).
In addition to the prison term, Judge Freeman also sentenced the defendant to a five-year period of supervised release and ordered him to pay restitution to the victims in an amount to be determined at a later hearing. The defendant was immediately remanded into custody.
Assistant U.S. Attorney Patrick R. Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by HSI.
Attorney General and U.S. Attorney John Anderson Announce Updates on Operation LegendRead the Press Release
Kansas City, MO – At a press conference in Kansas City, Missouri, today, Attorney General William P. Barr and U.S. Attorney John Anderson announced updates on Operation Legend.
The Attorney General launched the operation on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to address persistently high rates of crimes in cities like Albuquerque. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
To date, 16 defendants in Albuquerque have been charged with federal crimes under Operation Legend, Those crimes include charges for felon in possession of a firearm, possession of a stolen firearm, carjacking, violations of the Hobbs Act, and possession of a firearm in furtherance of drug trafficking. Other drug trafficking charges include distribution of a controlled substance, conspiracy to distribute a controlled substance, and possession with intent to distribute a controlled substance.
“It has been clear from the persistently high violent crime rate that Albuquerque needed assistance, and Operation Legend is providing just that,” said John Anderson, U.S. Attorney for the District of New Mexico, who joined the Attorney General in Kansas City for the event. “The operation is off to a promising start, as we are already prosecuting cases under this initiative. Operation Legend was developed and implemented to address gun and dangerous crime, and is not intended to police any type of assembly, protest, or other First Amendment activity. We’ve held that promise and our record bears that out.
“I remain grateful to the Attorney General for his commitment to this effort,” said Anderson. “I also appreciate the hard work of law enforcement involved in the operation. The successes we’ve experienced so far are a testament to the coordination and cooperation of our partnering agencies.”
Launched first in Kansas City, on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020.
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Attorney General William P. Barr and U.S. Attorney Justin Herdman announce update on Operation Legend during press conferenceRead the Press Release
During a press conference in Kansas City, MO., today, Attorney General William P. Barr, U.S. Attorney Justin Herdman and other U.S. Attorneys announced an update on the progress of Operation Legend in several cities across the country, including Cleveland.
Since the launch of Operation Legend, there have been more than 1,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 217 defendants have been charged with federal crimes. These numbers exclude Indianapolis, whose operation was just announced last Friday. In addition, nearly 400 firearms have been seized by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“In just a few short weeks, federal investigators working side-by-side with state and local law enforcement have begun to make significant progress towards reducing violence related to illegal firearms, drug trafficking and other crime in our neighborhoods,” said U.S. Attorney Justin Herdman. “In Cleveland, Operation Legend’s law enforcement operations have already resulted in 32 defendants charged federally with various drug trafficking and firearms violations. These early results show the potential that Operation Legend has to make our cities and communities a safer place for everyone to live.”
The Attorney General launched the operation on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, MO., on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020. A breakdown of the federal charges in Cleveland are listed below:
Cleveland, Ohio
32 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. Two defendants remain fugitives.
- 22 defendants have been charged with federal drug trafficking charges;
- Nine defendants have been charged with federal firearms violations; and
- One defendant has been charged with carjacking.
To view Operation Legend results in other cities, click here.
Attorney General William P. Barr and U.S. Attorney Jeff Jensen Announce Updates on Operation Legend at Press Conference in Kansas City, MissouriRead the Press Release
Saint Louis – At a press conference in Kansas City, MO, today, Attorney General William P. Barr and U.S. Attorney Jeff Jensen announced updates on Operation Legend.
Since the operation’s launch, there have been more than 1,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 217 defendants have been charged with federal crimes. These numbers exclude Indianapolis, whose operation was just announced last Friday. In addition, nearly 400 firearms have been seized by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Attorney General launched the operation on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, MO., on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to Saint Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district, with the exception of Indianapolis, is below.
In Saint Louis, 25 defendants have been charged with federal crimes, with some defendants charged with multiple offenses.
- One defendant has been charged with drug trafficking and possession of a firearm in furtherance of a drug trafficking crime following the USMS’s execution of a state arrest warrant;
- One defendant has been charged with robbery of an item effecting interstate commerce and possession of a firearm in furtherance of a crime of violence following an joint ATF, SLMPDinitiated undercover operation targeting a known shooter;
- One defendant has been charged with being a felon in possession of a firearm following ATF’s execution of a federal search warrant directed towards the residence of a suspected murderer;
- 21 defendants have been charged with drug trafficking offenses; and
- One defendant has been charged with being a drug user in possession of a firearm.
“Operation LeGend – Saint Louis represents a unique federal partnership with local law enforcement to address the increase in homicides and violent crime in Saint. Louis in 2020,” said U.S. Attorney Jeff Jensen. “Today’s announcement highlights the impactful work the brave men and women of the Saint Louis Metropolitan Police Department, Department of Homeland Security, FBI, DEA, ATF, the U.S. Marshals Service and Missouri State Highway Patrol have accomplished in Operation LeGend’s early stages. Of course, there is more important work to be done.”
Attorney General William P. Barr and U.S. Attorney D. Michael Dunavant Announce Updates on Operation LeGend at Press Conference in Kansas City,MissouriRead the Press Release
Memphis, TN - At a press conference in Kansas City, MO., today, Attorney General William P. Barr and U.S. Attorney D. Michael Dunavant announced updates on Operation LeGend.
Since the operation’s launch, there have been more than 1,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 217 defendants have been charged with federal crimes. These numbers exclude Indianapolis, whose operation was just announced last Friday. In addition, nearly 400 firearms have been seized by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Attorney General launched the operation on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
U.S. Attorney D. Michael Dunavant said, "Operation LeGend is leveraging our collaboration between federal, state, and local law enforcement, and is already making a difference in our collective fight against violent crime in Memphis. With these much needed federal resources, we can interrupt the shooting cycle, hold dangerous offenders accountable, reduce violent crime rates, and ultimately save lives."
Launched first in Kansas City, MO., on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district, with the exception of Indianapolis, is below.
Memphis, Tenn.
Seven defendants have been charged with federal offenses, with some defendants charged with multiple offenses.
- One defendant has been charged with being an alien in possession of a firearm while illegally or unlawfully in the United States;
- One defendant, who lives in Memphis, was charged in an out-of-district federal case with conspiracy to distribute methamphetamine;
- Two defendants have been charged with being unlawful users of a controlled substance in possession of a firearm and making a material false statement when acquiring a firearm from a Federal Firearms Licensee (FFL); and
- Two cases remain under seal, but the charges are as follows:
o One defendant has been charged with bank robbery
o Two defendants charged with theft from an FFL.
Kansas City, MO.
43 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. In addition to the federal charges, the operation has led to the arrests of 17 state defendants on homicide charges.
- 20 defendants have been charged with being a felon in possession of a firearm;
- 17 defendants have been charged with drug trafficking;
- Four defendants have been charged with being a drug user in possession of a firearm;
- Six defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
- Four defendants have been charged with being in possession of a firearm in furtherance of violent crime;
- One defendant has been charged with being a felon in possession of ammunition;
- Three defendants have been charged with armed robbery;
- One defendant has been charged with carjacking; and
- One defendant has been charged with arson.
Chicago, Ill.
61 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses.
- 34 defendants have been charged with firearms-related offenses;
- 26 defendants have been charged with narcotics-related offenses;
- One defendant has been charged with possession of machine gun;
- One defendant has been charged with illegally dealing firearms without a license;
- One defendant has been charged with the illegal sale of firearm to prohibited person; and
- One defendant has been charged with bank fraud.
Albuquerque, NM.
16 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses.
- Six defendants have been charged with conspiracy to distribute controlled substances;
- Four defendants have been charged with distribution of controlled substances;
- Six defendants have been charged with possession with intent to distribute a controlled substance;
- Four defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
- Eight defendants have been charged with being a felon in possession of a firearm;
- One defendant has been charged with being in possession of a stolen firearm;
- Two defendants have been charged with Hobbs Act violations;
- One defendant has been charged with carjacking; and
- One defendant has been charged with re-entry of a removed alien.
Cleveland, OH.
32 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. Two defendants remain fugitives.
- 22 defendants have been charged with federal drug trafficking charges;
- Nine defendants have been charged with federal firearms violations; and
- One defendant had been charged with carjacking.
Detroit,MI.
22 defendants have been charged with federal offenses outlined below, with some defendants charged with multiple offenses.
- 14 defendants have been charged with being a felon in possession of a firearm;
- Two defendants have been charged with possession with the intent to distribute controlled substances;
- Two defendants have been charged with possession of a firearm in furtherance of drug trafficking;
- Three defendants have been charged with receipt of a firearm while under indictment;
- Four defendants have been charged with making false statement to a licensed firearm dealer; and
- Two defendants have been charged with carjacking.
Milwaukee, WI.
11 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. In addition, thus far, 28 firearms have been seized.
- Eight defendants have been charged with being a felon in possession of a firearm;
- Five defendants have been charged with possession with intent to distribute narcotics;
- Four defendants have been charged with possession of a firearm in furtherance of drug trafficking;
- Two defendants have been charged with making false statements to a licensed firearm dealer;
- One defendant has been charged with possession of a firearm while being an unlawful user of narcotics;
- One defendant has been charged with being a felon in possession of ammunition; and
- One defendant has been charged with distribution of narcotics.
St. Louis, MO.
15 defendants have been charged with federal crimes, with some defendants charged with multiple offenses.
- One defendant has been charged with drug trafficking and possession of a firearm in furtherance of a drug trafficking crime following the USMS’s execution of a state arrest warrant;
- One defendant has been charged with robbery of an item effecting interstate commerce and possession of a firearm in furtherance of a crime of violence following an joint ATF, SLMPD-initiated undercover operation targeting a known shooter;
- One defendant has been charged with being a felon in possession of a firearm following ATF’s execution of a federal search warrant directed towards the residence of a suspected murderer;
- 11 defendants have been charged with drug trafficking offenses; and
- One defendant has been charged with being a drug user in possession of a firearm.
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Attorney General William P. Barr Announces Updates on Operation Legend at Press Conference in Kansas City, MissouriRead the Press Release
At a press conference in Kansas City, Missouri, today, Attorney General William P. Barr announced updates on Operation Legend.
Since the operation’s launch, there have been more than 1,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 217 defendants have been charged with federal crimes. These numbers exclude Indianapolis, whose operation was just announced last Friday. In addition, nearly 400 firearms have been seized by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Attorney General launched the operation on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, MO., on July 8, 2020, the operation was 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. A breakdown of the federal charges in each district, with the exception of Indianapolis, is below.
Kansas City, MO.
Forty-three defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. In addition to the federal charges, the operation has led to the arrests of 17 state defendants on homicide charges.
- 20 defendants have been charged with being a felon in possession of a firearm;
- 17 defendants have been charged with drug trafficking;
- Four defendants have been charged with being a drug user in possession of a firearm;
- Six defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
- Four defendants have been charged with being in possession of a firearm in furtherance of violent crime;
- One defendant has been charged with being a felon in possession of ammunition;
- Three defendants have been charged with armed robbery;
- One defendant has been charged with carjacking; and
- One defendant has been charged with arson.
Chicago, Ill.
Sixty-one defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses.
- 34 defendants have been charged with firearms-related offenses;
- 26 defendants have been charged with narcotics-related offenses;
- One defendant has been charged with possession of machine gun;
- One defendant has been charged with illegally dealing firearms without a license;
- One defendant has been charged with the illegal sale of firearm to prohibited person; and
- One defendant has been charged with bank fraud.
Albuquerque, NM.
Sixteen defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses.
- Six defendants have been charged with conspiracy to distribute controlled substances;
- Four defendants have been charged with distribution of controlled substances;
- Six defendants have been charged with possession with intent to distribute a controlled substance;
- Four defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
- Eight defendants have been charged with being a felon in possession of a firearm;
- One defendant has been charged with being in possession of a stolen firearm;
- Two defendants have been charged with Hobbs Act violations; and
- One defendant has been charged with carjacking.
Cleveland, OH.
Thirty-two defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. Two defendants remain fugitives.
- 22 defendants have been charged with federal drug trafficking charges;
- Nine defendants have been charged with federal firearms violations; and
- One defendant had been charged with carjacking.
Detroit, MI.
Twenty-two defendants have been charged with federal offenses outlined below, with some defendants charged with multiple offenses.
- 14 defendants have been charged with being a felon in possession of a firearm;
- Two defendants have been charged with possession with the intent to distribute controlled substances;
- Two defendants have been charged with possession of a firearm in furtherance of drug trafficking;
- Three defendants have been charged with receipt of a firearm while under indictment;
- Four defendants have been charged with making false statement to a licensed firearm dealer; and
- Two defendants have been charged with carjacking.
Milwaukee, WI.
Eleven defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. In addition, thus far, 28 firearms have been seized.
- Eight defendants have been charged with being a felon in possession of a firearm;
- Five defendants have been charged with possession with intent to distribute narcotics;
- Four defendants have been charged with possession of a firearm in furtherance of drug trafficking;
- Two defendants have been charged with making false statements to a licensed firearm dealer;
- One defendant has been charged with possession of a firearm while being an unlawful user of narcotics;
- One defendant has been charged with being a felon in possession of ammunition; and
- One defendant has been charged with distribution of narcotics.
St. Louis, MO.
Twenty-five defendants have been charged with federal crimes, with some defendants charged with multiple offenses.
- One defendant has been charged with drug trafficking and possession of a firearm in furtherance of a drug trafficking crime following the USMS’s execution of a state arrest warrant;
- One defendant has been charged with robbery of an item effecting interstate commerce and possession of a firearm in furtherance of a crime of violence following an joint ATF, SLMPD-initiated undercover operation targeting a known shooter;
- One defendant has been charged with being a felon in possession of a firearm following ATF’s execution of a federal search warrant directed towards the residence of a suspected murderer;
- 21 defendants have been charged with drug trafficking offenses; and
- One defendant has been charged with being a drug user in possession of a firearm.
Memphis, Tenn.
Seven defendants have been charged with federal offenses, with some defendants charged with multiple offenses.
- One defendant has been charged with being an alien in possession of a firearm while illegally or unlawfully in the United States;
- One defendant, who lives in Memphis, was charged in an out-of-district federal case with conspiracy to distribute methamphetamine;
- Two defendants have been charged with being unlawful users of a controlled substance in possession of a firearm and making a material false statement when acquiring a firearm from a Federal Firearms Licensee (FFL); and
- Two cases remain under seal, but the charges are as follows:
- One defendant has been charged with bank robbery
- Two defendants charged with theft from an FFL.
Attorney General William P. Barr Announces Updates on Operation Legend at Press Conference in Kansas City, MissouriRead the Press Release
U.S. Attorney Tim Garrison introduced U.S. Attorney General William P. Barr at a press conference in Kansas City. He was joined by LeGend's mother, Charron Powell, and Kansas City Police Chief Rick Smith.KANSAS CITY, Mo. – At a press conference in Kansas City, Missouri, today, Attorney General William P. Barr announced updates on Operation Legend.
“Operation LeGend is working,” said U.S. Attorney Tim Garrison in introducing Attorney General Barr. “In just four weeks, it has resulted in the arrests of 18 homicide suspects and the seizure of over 70 illegal firearms. In June, Kansas City had more than three killings every four days. Since our announcement on July 8, that rate has been reduced to fewer than three killings every five days. There is much to be done, but to use the parlance of our day, we are flattening the curve in Kansas City.”
“We are grateful here in Kansas City for these additional resources,” added Garrison, who was joined by U.S. Attorneys from across the United States who have launched Operation LeGend in their districts, “and we are gratified to see Operation LeGend expand to other cities represented by my colleagues here.”
Since the operation’s launch, there have been more than 1,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 217 defendants have been charged with federal crimes. These numbers exclude Indianapolis, whose operation was just announced last Friday. In addition, nearly 400 firearms have been seized by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Attorney General launched the operation on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, MO., on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district, with the exception of Indianapolis, is below.
Kansas City, MO.
43 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. In addition to the federal charges, the operation has led to the arrests of 17 state defendants on homicide charges.
- 20 defendants have been charged with being a felon in possession of a firearm;
- 17 defendants have been charged with drug trafficking;
- Four defendants have been charged with being a drug user in possession of a firearm;
- Six defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
- Four defendants have been charged with being in possession of a firearm in furtherance of violent crime;
- One defendant has been charged with being a felon in possession of ammunition;
- Three defendants have been charged with armed robbery;
- One defendant has been charged with carjacking; and
- One defendant has been charged with arson.Chicago, Ill.
61 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses.
34 defendants have been charged with firearms-related offenses;
26 defendants have been charged with narcotics-related offenses;
One defendant has been charged with possession of machine gun;
One defendant has been charged with illegally dealing firearms without a license;
One defendant has been charged with the illegal sale of firearm to prohibited person; and
One defendant has been charged with bank fraud.Albuquerque, NM.
16 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses.
Six defendants have been charged with conspiracy to distribute controlled substances;
Four defendants have been charged with distribution of controlled substances;
Six defendants have been charged with possession with intent to distribute a controlled substance;
Four defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
Eight defendants have been charged with being a felon in possession of a firearm;
One defendant has been charged with being in possession of a stolen firearm;
Two defendants have been charged with Hobbs Act violations; and
One defendant has been charged with carjacking.Cleveland, OH.
32 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. Two defendants remain fugitives.
22 defendants have been charged with federal drug trafficking charges;
Nine defendants have been charged with federal firearms violations; and
One defendant had been charged with carjacking.Detroit, MI.
22 defendants have been charged with federal offenses outlined below, with some defendants charged with multiple offenses.
14 defendants have been charged with being a felon in possession of a firearm;
Two defendants have been charged with possession with the intent to distribute controlled substances;
Two defendants have been charged with possession of a firearm in furtherance of drug trafficking;
Three defendants have been charged with receipt of a firearm while under indictment;
Four defendants have been charged with making false statement to a licensed firearm dealer; and
Two defendants have been charged with carjacking.Milwaukee, WI.
11 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. In addition, thus far, 28 firearms have been seized.
Eight defendants have been charged with being a felon in possession of a firearm;
Five defendants have been charged with possession with intent to distribute narcotics;
Four defendants have been charged with possession of a firearm in furtherance of drug trafficking;
Two defendants have been charged with making false statements to a licensed firearm dealer;
One defendant has been charged with possession of a firearm while being an unlawful user of narcotics;
One defendant has been charged with being a felon in possession of ammunition; and
One defendant has been charged with distribution of narcotics.St. Louis, MO.
25 defendants have been charged with federal crimes, with some defendants charged with multiple offenses.- One defendant has been charged with drug trafficking and possession of a firearm in furtherance of a drug trafficking crime following the USMS’s execution of a state arrest warrant;
- One defendant has been charged with robbery of an item effecting interstate commerce and possession of a firearm in furtherance of a crime of violence following an joint ATF, SLMPD-initiated undercover operation targeting a known shooter;
- One defendant has been charged with being a felon in possession of a firearm following ATF’s execution of a federal search warrant directed towards the residence of a suspected murderer;
- 21 defendants have been charged with drug trafficking offenses; and
- One defendant has been charged with being a drug user in possession of a firearm.Memphis, Tenn.
Seven defendants have been charged with federal offenses, with some defendants charged with multiple offenses.One defendant has been charged with being an alien in possession of a firearm while illegally or unlawfully in the United States;
- One defendant, who lives in Memphis, was charged in an out-of-district federal case with conspiracy to distribute methamphetamine;
Two defendants have been charged with being unlawful users of a controlled substance in possession of a firearm and making a material false statement when acquiring a firearm from a Federal Firearms Licensee (FFL); and
Two cases remain under seal, but the charges are as follows:
One defendant has been charged with bank robbery
Two defendants charged with theft from an FFL.
Attorney General William P. Barr Announces Updates on Operation Legend at Press Conference in Kansas City, MissouriRead the Press Release
Today, United States Attorney Matthew D. Krueger joins the Attorney General William P. Barr in announcing updates on Operation Legend.
Since the operation’s launch, there have been more than 1,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 207 defendants have been charged with federal crimes. These numbers exclude Indianapolis, whose operation was just announced last Friday. In addition, nearly 400 firearms have been seized by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Attorney General launched the operation on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
“As Attorney General Barr has said, the most basic duty of government is to protect the safety of our citizens,” remarked U.S. Attorney Krueger. “Operation Legend is already yielding results in Milwaukee and other cities. Working together with our state and local partners, this effort will enhance the safety of Milwaukee’s neighborhoods.”
The operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district, with the exception of Indianapolis, is below.
Kansas City, MO.
43 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. In addition to the federal charges, the operation has led to the arrests of 17 state defendants on homicide charges.
- 20 defendants have been charged with being a felon in possession of a firearm;
- 17 defendants have been charged with drug trafficking;
- Four defendants have been charged with being a drug user in possession of a firearm;
- Six defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
- Four defendants have been charged with being in possession of a firearm in furtherance of violent crime;
- One defendant has been charged with being a felon in possession of ammunition;
- Three defendants have been charged with armed robbery;
- One defendant has been charged with carjacking; and
- One defendant has been charged with arson.
Chicago, Ill.
61 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses.
- 34 defendants have been charged with firearms-related offenses;
- 26 defendants have been charged with narcotics-related offenses;
- One defendant has been charged with possession of machine gun;
- One defendant has been charged with illegally dealing firearms without a license;
- One defendant has been charged with the illegal sale of firearm to prohibited person; and
- One defendant has been charged with bank fraud.
Albuquerque, NM.
16 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses.
- Six defendants have been charged with conspiracy to distribute controlled substances;
- Four defendants have been charged with distribution of controlled substances;
- Six defendants have been charged with possession with intent to distribute a controlled substance;
- Four defendants have been charged with being in possession of a firearm in furtherance of drug trafficking;
- Eight defendants have been charged with being a felon in possession of a firearm;
- One defendant has been charged with being in possession of a stolen firearm;
- Two defendants have been charged with Hobbs Act violations;
- One defendant has been charged with carjacking; and
- One defendant has been charged with re-entry of a removed alien.
Cleveland, OH.
- 22 defendants have been charged with federal drug trafficking charges;
- Nine defendants have been charged with federal firearms violations; and
- One defendant had been charged with carjacking.
Detroit, MI.
22 defendants have been charged with federal offenses outlined below, with some defendants charged with multiple offenses.
- 14 defendants have been charged with being a felon in possession of a firearm;
- Two defendants have been charged with possession with the intent to distribute controlled substances;
- Two defendants have been charged with possession of a firearm in furtherance of drug trafficking;
- Three defendants have been charged with receipt of a firearm while under indictment;
- Four defendants have been charged with making false statement to a licensed firearm dealer; and
- Two defendants have been charged with carjacking.
Milwaukee, WI.
11 defendants have been charged with federal crimes outlined below, with some defendants charged with multiple offenses. In addition, thus far, 28 firearms have been seized.
- Eight defendants have been charged with being a felon in possession of a firearm;
- Five defendants have been charged with possession with intent to distribute narcotics;
- Four defendants have been charged with possession of a firearm in furtherance of drug trafficking;
- Two defendants have been charged with making false statements to a licensed firearm dealer;
- One defendant has been charged with possession of a firearm while being an unlawful user of narcotics;
- One defendant has been charged with being a felon in possession of ammunition; and
- One defendant has been charged with distribution of narcotics.
St. Louis, MO.
15 defendants have been charged with federal crimes, with some defendants charged with multiple offenses.
- One defendant has been charged with drug trafficking and possession of a firearm in furtherance of a drug trafficking crime following the USMS’s execution of a state arrest warrant;
- One defendant has been charged with robbery of an item effecting interstate commerce and possession of a firearm in furtherance of a crime of violence following an joint ATF, SLMPD-initiated undercover operation targeting a known shooter;
- One defendant has been charged with being a felon in possession of a firearm following ATF’s execution of a federal search warrant directed towards the residence of a suspected murderer;
- 11 defendants have been charged with drug trafficking offenses; and
- One defendant has been charged with being a drug user in possession of a firearm.
Memphis, Tenn.
Seven defendants have been charged with federal offenses, with some defendants charged with multiple offenses.
- One defendant has been charged with being an alien in possession of a firearm while illegally or unlawfully in the United States;
- One defendant, who lives in Memphis, was charged in an out-of-district federal case with conspiracy to distribute methamphetamine;
- Two defendants have been charged with being unlawful users of a controlled substance in possession of a firearm and making a material false statement when acquiring a firearm from a Federal Firearms Licensee (FFL); and
- Two cases remain under seal, but the charges are as follows:
- One defendant has been charged with bank robbery
- Two defendants charged with theft from an FFL.
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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Alien Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment today charging CARLOS CASTILLO-RODRIGUEZ, age 40, of Honduras, with illegal reentry of a removed alien.
If convicted of illegal reentry, CASTILLO-RODRIGUEZ, previously deported three times and found in Wake County, would face a maximum imprisonment term of two years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Tuesday 18 August 2020
“Lottery Lawyer” and Three Co-Conspirators Indicted in $107 Million Scheme to Defraud Lottery-Winning ClientsRead the Press Release
An indictment was unsealed earlier today in federal court in Brooklyn charging attorney Jason Kurland, Christopher Chierchio, Francis Smookler, a former securities broker, and Frangesco Russo with wire fraud, wire fraud conspiracy, money laundering and money laundering conspiracy in connection with a scheme to defraud Kurland’s clients that resulted in $107 million in losses. In addition, Kurland was charged with honest services fraud for his role in the scheme, and Russo and Smookler are charged with extortionate extension and collection of credit for threatening to kill an individual and his family for failure to repay a usurious loan.
The defendants were arrested today and will be arraigned this afternoon via teleconference before United States Magistrate Judge Lois Bloom.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“Defendant Kurland allegedly violated the law and his oath as a lawyer when he allowed co-conspirators to pillage his clients’ bank accounts for their own enrichment,” stated Acting United States Attorney DuCharme. “In addition, Russo and Smookler allegedly threatened to torture an individual’s wife and children. The defendants callously thought they could line their pockets with lottery winnings without consequence, but today their luck ran out.”
“Lottery winners can't believe their luck when they win millions of dollars, and the men we arrested this morning allegedly used that euphoric feeling to their advantage,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York discovered how these victims were persuaded to put large chunks of their cash into investments that benefited the defendants. Rather than try their luck at the lottery, these men resorted to defrauding the victims to get rich, but their gamble didn't pay off.”
The Scheme to Defraud the Lottery Victims
As set forth in court filings, Kurland is a self-dubbed “Lottery Lawyer” purporting to represent dozens of lottery winners throughout the country with total winnings of approximately $3 billion. One of the winners won the $1.5 billion Mega Millions lottery, another won the $245 million Powerball jackpot, and the third won the $150 million jackpot (together, the “Lottery Victims”). The Lottery Victims each paid Kurland and his law firm hundreds of thousands of dollars, in part so that he could advise them on how to safely invest their money. After gaining their trust with primarily traditional investments, Kurland steered his clients to invest in various entities and business deals controlled and directed by Russo, Smookler and Chierchio, and received kickbacks in return – which Kurland failed to disclose to his clients. The defendants then used the money from the Lottery Victims’ investments to keep their scheme going and to enrich themselves. A portion of these funds was funneled back to the Lottery Victims and falsely presented to them as “interest payments” on their investments, other funds went to Kurland as kickbacks, and millions of dollars were stolen to support the defendants’ lavish lifestyles – private jets, expensive vacations and luxury vehicles including two yachts. The funds that the defendants actually invested in various entities and deals were, in large part, eventually lost.
In intercepted calls cited in court documents, the defendants can be heard discussing their scheme, attempting to cover their tracks and expressing concern about what might happen to them if they were caught by law enforcement.
The Scheme to Extort Altieri
Russo’s and Smookler invested some of the Lottery Victims’ money with Gregory Altieri, a jewelry merchant, and then extended him a $250,000 “street loan.” Conversations recorded during the government’s investigation revealed that Russo and Smookler expected to be repaid over $400,000 for the $250,000 loan, and the threats Russo and Smookler made to Altieri in their attempt to collect it. Russo informed Altieri that he had a “few tactical shotguns . . . with lasers,” and Smookler told Altieri that if he did not fully repay the loan, “it’s just going to be unbelievable.” Russo compared himself to the mob-affiliated character in “Uncut Gems,” a movie that ends with the indebted diamond dealer shot dead. On another call, Russo told Altieri, “They’re gonna pop your head off in front of your f------ kids. This guy has no clue what he’s getting into.” Smookler told Altieri, “You watch my man, you f-----d me, now watch what I am gonna do to you, I’m coming brother. Full f-----g steam ahead.”
Russo and Smookler also threatened to harm Altieri’s family if Altieri did not repay the loan. Smookler told Altieri that, “[W]e are gonna find your wife today. That’s happening.” Russo informed Altieri that the people coming for him are “going to make you watch as they rip your son’s teeth out of his mouth, watch, they’re going to do worse things to your wife.”
The government has taken steps to recover funds stolen in connection with the charged scheme to defraud the Lottery Victims, including executing warrants to seize 13 bank accounts associated with the defendants’ scheme, and placing liens on three properties that Smookler and Russo allegedly purchased and/or renovated with stolen funds.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution, assisted by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit and by a Special Agent of the Office’s Business & Securities Fraud Section.
The Defendants:
CHRISTOPHER CHIERCHIO
Age: 52
Staten Island, NYJASON KURLAND
Age: 46
Dix Hills, NYFRANGESCO RUSSO
Age: 38
Roslyn, NYFRANCIS SMOOKLER
Age: 45
Oyster Bay, NYE.D.N.Y. Docket No. 20-CR-306 (NGG)
United States Files False Claims Act Complaint Against Drug Maker Teva Pharmaceuticals Alleging Illegal KickbacksRead the Press Release
The United States has filed a False Claims Act complaint against Teva Pharmaceuticals USA Inc. and Teva Neuroscience Inc. (Teva), alleging that they illegally paid the Medicare co-pays for their multiple sclerosis (MS) product, Copaxone, through purportedly independent foundations that the companies used as conduits in violation of the Anti-Kickback Statute, the Department of Justice announced today.
“The department is committed to stopping pharmaceutical companies from using foundations as conduits to funnel kickbacks to Medicare patients, and to prop up excessive drug costs at the expense of the American taxpayers,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “We will continue to root out these unlawful kickback arrangements that undermine the integrity of federal health care programs.”
“The government’s complaint today alleges that Teva used ostensibly independent charitable foundations as vehicles to pay hundreds of millions of dollars in kickbacks, all while raising the price of its drug, Copaxone, at a rate over 19 times the rate of inflation,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts. “Teva’s alleged kickbacks undermined the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices.”
“Drug manufacturers that offer kickbacks in order to boost profits – as alleged in this case – drive up health care costs for everyone and undermine the public’s trust in the health care system,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency, working closely with our law enforcement partners, will continue to thoroughly investigate such corrosive schemes.”
“As alleged, Teva gamed Medicare and tried to deflect attention away from a 329% increase in the cost of its drug by masking kickbacks as charitable contributions,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI's Boston Division. “This case demonstrates the FBI’s ongoing commitment to protect our government programs and the American taxpayers who contribute to them from being victimized by corporations who allegedly pay kickbacks to pad their bottom line.”
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, co-pays). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
The government alleges that, from 2007 through 2015, Teva paid The Assistance Fund (TAF) and Chronic Disease Fund (CDF) with the intent and understanding that the foundations would use Teva’s money to cover the Medicare co-pays of patients taking Copaxone. During the same period, Teva raised the price of Copaxone from approximately $17,000 per year to over $73,000 per year.
According to the United States’ complaint, Teva largely effectuated its scheme through its vendor, Advanced Care Scripts Inc. (ACS), a specialty pharmacy to which Teva referred virtually all Copaxone patients who faced Medicare co-pays for the drug. Teva used information from ACS and from TAF and CDF to calculate how much money to pay each foundation to maintain coverage of the Medicare co-pays of Copaxone patients enrolled in each foundation. The U.S. further alleges that ACS coordinated the referral of newly-prescribed Copaxone patients to TAF and CDF with Teva, referring patients in batches at the same time that Teva made payments to the foundations, which ensured that Copaxone patients received the vast majority of the co-pay assistance TAF and CDF provided with money from Teva.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The lawsuits are being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts. Investigative support is being provided by the Department of Health and Human Services' Office of Inspector General and the Federal Bureau of Investigation.
The case is captioned United States v. Teva Pharmaceuticals USA, Inc. and Teva Neuroscience, Inc. No. 20-cv-11548. (D. Mass.). The claims asserted in the government’s complaint are allegations only.
United States Files False Claims Act Complaint Against Drug Maker Teva PharmaceuticalsRead the Press Release
BOSTON – The U.S. Attorney’s Office has filed a complaint under the False Claims Act against Teva Pharmaceuticals USA, Inc., and Teva Neuroscience, Inc., the maker of Copaxone, a drug for multiple sclerosis (MS).
The government alleges that Teva conspired with a specialty pharmacy, Advanced Care Scripts, Inc. (ACS), and two purportedly independent foundations, Chronic Disease Fund (CDF) and The Assistance Fund (TAF), to violate the Anti-Kickback Statute and False Claims Act by using the foundations as conduits to subsidize Medicare co-pays for Copaxone, all while steadily raising Copaxone’s price.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
“The government’s complaint today alleges that Teva used ostensibly independent charitable foundations as vehicles to pay hundreds of millions of dollars in kickbacks, all while raising the price of its drug, Copaxone, at a rate over 19 times the rate of inflation,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts. “Teva’s alleged kickbacks undermined the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices.”
“The Department is committed to stopping pharmaceutical companies from using foundations as conduits to funnel kickbacks to Medicare patients, and to prop up excessive drug costs at the expense of the American taxpayers,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “We will continue to root out these unlawful kickback arrangements that undermine the integrity of federal health care programs.”
“Drug manufacturers that offer kickbacks in order to boost profits – as alleged in this case – drive up health care costs for everyone and undermine the public’s trust in the health care system,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency, working closely with our law enforcement partners, will continue to thoroughly investigate such corrosive schemes.”
“As alleged, Teva gamed Medicare and tried to deflect attention away from a 329% increase in the cost of its drug by masking kickbacks as charitable contributions,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case demonstrates the FBI’s ongoing commitment to protect our government programs and the American taxpayers who contribute to them from being victimized by corporations who allegedly pay kickbacks to pad their bottom line.”
The government alleges that, from 2006 through at least 2015, Teva paid the two foundations well over $300 million, not as charity for MS patients generally, but with the intent and understanding that the foundations would use Teva’s money to cover the Medicare co-pays of patients taking Copaxone. During the same period, Teva raised the price of Copaxone from approximately $17,000 per year to over $73,000 per year. Meanwhile, because of Teva’s kickbacks, many Medicare patients (and their doctors) had no reason to consider the drug’s ever-increasing cost.
According to the complaint, Teva effectuated its scheme through ACS, to which Teva referred virtually all Copaxone patients who faced Medicare co-pays for the drug. ACS, in turn, arranged for the patients to obtain Medicare co-pay coverage from the foundations and then reported back to Teva how many Copaxone patients were receiving co-pay coverage from each foundation. At the end of each year, Teva used information from ACS and the foundations to determine how much money each foundation would need to cover the Medicare co-pays of existing Copaxone patients for the following year, and Teva paid each foundation accordingly.
The government further alleges that, after the beginning of a year, when the foundations’ MS funds were often closed to new patients because the foundations had allocated all of their funding to existing patients, ACS would provide periodic reports to Teva on the number of new Copaxone patients awaiting Medicare co-pay assistance. When an ACS report showed a substantial number of Copaxone patients waiting, Teva would multiply the number of waiting patients by the foundation’s average grant amount for Copaxone patients, add the foundation’s administrative fee, and then send a corresponding payment to the foundation. Just before sending the payment, Teva would notify ACS, which then would send a “batch file” of applications for all the waiting Copaxone patients to the foundation so that the foundation would act on those applications as soon as the fund re-opened. In this way, Teva and ACS ensured that Copaxone patients received the vast majority of the co-pay grants the foundations made whenever they re-opened their MS funds with money from Teva.
The government previously entered into settlement agreements with ACS, TAF, and CDF.
U.S. Attorney Lelling, Acting AAG Davis, HHS-OIG SAC Coyne, and FBI Boston SAC Bonavolonta made the announcement today. The matter is being handled by Assistant U.S. Attorneys Gregg Shapiro, Abraham George, and Evan Panich of Lelling’s Affirmative Civil Enforcement Unit and Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Department of Justice’s Civil Division.
United States Attorney Applauds Pardon of Susan B. AnthonyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY – U.S. Attorney James P. Kennedy, Jr. is thanking President Trump for pardoning Susan B. Anthony today, on the centennial of the ratification of the 19th Amendment to the U.S. Constitution.
U.S. Attorney Kennedy stated, “On behalf of the citizens of Western New York, I commend and thank President Trump for his decision to pardon, Susan B. Anthony, our courageous native sister who, from our little corner of this great Nation, launched the Suffrage movement and spent her adult-life fighting tirelessly for abolition, educational reforms, and women’s rights. Anthony’s efforts transformed our Constitution and, with it, our country, and the President’s pardon of her on the centennial of the ratification of the 19th Amendment reminds us that Anthony’s quest for equality, freedom, and justice is one that continues today.”
Susan B. Anthony, 1820 – 1906, moved to upstate New York in 1826 and spent most of her life pursuing recognition of women’s rights, and particularly the right to vote. Anthony campaigned for women’s suffrage for over 50 years. Her tireless advocacy, passion, perseverance, leadership, and ultimately persuasive effect was such that the 19th Amendment to the U.S. Constitution granting women the right to vote became known as the Susan B. Anthony amendment. A fighter to the end, Anthony’s last speech, a month before her death, concluded “failure is impossible!”
Anthony was able to vote in a state or federal election only once in her life, and it resulted in her criminal conviction.
An indictment returned by a grand jury in Albany on January 24, 1873, charged Anthony with voting in Rochester (then) in the Northern District of New York, on November 5, 1872, “for a Representative in the Congress of the United States . . . without having a lawful right to vote in said election district (the said Susan B. Anthony being then and there a person of the female sex).”
U.S. Supreme Court Justice Ward Hunt presided at the trial, conducted July 17-19, 1873 in U.S. Circuit Court for the Northern District of New York in Canandaigua . Three witnesses testified that: Anthony had been permitted to register to vote upon her claim that her right to do so rested not on the New York Constitution, which excluded women, but on the 14th Amendment to the Constitution of the United States; when Anthony voted on November 5, 1872, her right to do so was not challenged; Anthony’s counsel had advised her, before the election, that the laws and Constitution of the United States authorized her to vote and to do so if the inspectors would receive her vote; and, Anthony had testified in a preliminary proceeding that she had no doubt of her right to vote and would have done so had she not consulted her counsel.
Justice Hunt instructed the jury that: “Assuming that Miss Anthony believed she had a right to vote, that fact constitutes no defense if in truth she had not the right. She voluntarily gave a vote which was illegal, and thus is subject to the penalty of the law. Upon this evidence I suppose there is no question for the jury and that the jury should be directed to find a verdict of guilty.”
Anthony had not been allowed to testify, but was afforded an opportunity to speak before sentence was pronounced. She said to Justice Hunt: “in your ordered verdict of guilty, you have trampled under foot every vital principle of our government. My natural rights, my civil rights, my political rights, my judicial rights, are all alike ignored. Robbed of the fundamental privilege of citizenship, I am degraded from the status of a citizen to that of a subject; and not only myself individually, but all of my sex, are, by your honor's verdict, doomed to political subjection under this, so-called, form of government. . . Your denial of my citizen's right to vote, is the denial of my right of consent as one of the governed, the denial of my right of representation as one of the taxed, the denial of my right to a trial by a jury of my peers as an offender against law, therefore, the denial of my sacred rights to life, liberty, property.”
Justice Hunt sentenced Anthony to pay a $100 fine and the costs of prosecution. She responded, “I shall never pay a dollar of your unjust penalty.” Justice Hunt replied, “Madam, the Court will not order you committed until the fine is paid.” The nature of the trial and sentence meant there could be no appeal.
Eleven other women were indicted for voting illegally, but a nolle prosequi was entered for each of them. The three elections inspectors who had received the votes were convicted at trial after Anthony’s. They were fined but refused to pay and eventually were jailed and then pardoned by President Ulysses S. Grant.In January of 1874, Anthony petitioned Congress to remit her fine, but a bill to do so did not pass.
Anthony continued to advocate for women’s suffrage for 32 more years, including serving as president of the National American Woman Suffrage Association from 1892-1900. On August 18, 1920, fourteen years after Anthony’s death, her goal was achieved by the ratification of the 19th Amendment, providing that: “The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of sex.”
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Union County Man Indicted on Tax and Fraud ChargesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was indicted today on charges of filing false tax returns, statements, and other documents; failing to file a tax return; wire fraud; and student aid fraud, U.S. Attorney Craig Carpenito announced.
Anthony Salters, 58, of Hillside, New Jersey, was charged by indictment with one count of subscribing to a false tax return for tax year 2013, two counts of subscribing to false tax returns, statements, and other documents for tax years 2014 and 2015, one count of failing to file a tax return for tax year 2016, and four counts of wire fraud and three counts of student aid fraud in connection with student financial aid obtained for his dependent child. No date has been scheduled for Salters’ arraignment.
According to the indictment:
Salters was a principal of Media Allies LLC, a company that purportedly provided public relations services. Salters signed, filed, and caused to be filed with the IRS U.S. Individual Income Tax Returns, Forms 1040, for tax years 2013, 2014 and 2015, each of which contained a written declaration that it was filed under penalties of perjury. Each Form 1040 falsely stated that Salters’ business income was zero and his total income was zero, when, in fact, Salters and Media Allies had substantial gross receipts in tax years 2013 to 2015, as well as tens of thousands of dollars in gross income in 2016, the tax year for which Salters failed to file a tax return.
Salters reported false information about his income in connection with his dependent child’s application for student financial aid. From January 2014 to May 2017, Salters engaged in a scheme to defraud the United States Department of Education, the New Jersey Higher Education Student Assistance Authority, and a university in New Jersey where Salters’ dependent child was an undergraduate, by submitting and causing to be submitted materially false information underreporting Salters’ income, including the information provided in his dependent child’s Free Applications for Federal Student Aid, or FAFSAs.
The count of subscribing to a false tax return, statement, or other document is punishable by a maximum of three years in prison; the count of wire fraud is punishable by a maximum of 20 years in prison; the count of student loan fraud is punishable by a maximum of five years in prison. All three counts are also punishable by a fine of $250,000. The count of failure to file a tax return is punishable by a maximum of one year in prison and a fine of $100,000.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and special agents of the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Geoff Wood in Philadelphia, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys J Fortier Imbert and Cari Fais of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Wrigley Announces an Iowa Man was sentenced for Unlawfully Transporting Wildlife from Canada into the United StatesRead the Press Release
Bismarck – United States Attorney Drew H. Wrigley announced that on August 18, 2020, Louis Floden, Jr., age 69 from Pella, Iowa, appeared before United States Magistrate Judge Alice R. Senechal and pleaded guilty to a charge of Unlawful Transport of Wildlife in Foreign Commerce. Judge Senechal sentenced Floden to serve one year probation, ordered him to pay a $7,500.00 fine to the Lacey Act Reward Account, and ordered that he pay the mandatory special assessment.
In September 2019, Floden unlawfully transported two black bear hides from Manitoba, Canada into the United States after he unlawfully killed them. Upon his return to the United States through the Pembina Port of Entry in North Dakota, Floden declared one sport-taken black bear to customs. Upon further inspection of his vehicle, the customs officer discovered two black bears. Manitoba licensing laws prohibit the purchase of more than one big game license of the same type for the same hunting year. When initially questioned by the customs officer, Floden alleged that he only shot one black bear, and that the other may have belonged to another hunter who was at the hunting camp at the same time. Floden later admitted he shot the second bear, and that he knew shooting the second bear was illegal. In addition to the illegal harvest of the second bear, it was also determined both bears were killed outside of the designated hunting area allowed by Floden’s licenses. Floden agreed to forfeit the two black bear hides that he brought into the United States.
"Game hunting laws play an essential role in ensuring proper wildlife management" said US Attorney Drew Wrigley, "and we strictly enforce these provisions as a component of our environmental stewardship obligations."
This case was investigated by the United States Fish and Wildlife Service and United States Customs and Border Protection and was prosecuted by Assistant United States Attorney Jonathan J. O’Konek.
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U.S. Attorney Statement on Assault of Portland Motorist and Continued Violence CitywideRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams released the following statement today regarding the recent assault of a motorist in Downtown Portland and continued violence citywide:
“Like many Oregonians, I was sickened by the video circulating online showing a man being pulled from his truck in Downtown Portland and beaten and kicked until he lies on the pavement unconscious. While the circumstances leading up to this brutal assault are still under state and federal review, I must condemn, in the strongest possible terms, this depraved violence.
We must all continue to work together to achieve peace in the streets of Portland. If we are not successful, I fear one day soon we will wake up to news that a Portlander has been killed. We cannot let this happen.”
Two Men Charged in Connection with Armed Robberies of Twin Cities BusinessesRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging DEVON DWAYNE REGINALD GLOVER, 21, and MARSHAWN MICHAEL DAVISON, 19, with Hobbs Act robbery. GLOVER was also charged with firearms violations. GLOVER and DAVISON are currently in custody and will make their initial appearances in U.S. District Court at a later date.
According to allegations in the indictment, on June 16, 2020, GLOVER and DAVISON committed an armed robbery at a restaurant in Bloomington, Minnesota, using force and violence against an employee. GLOVER discharged a firearm in the course of the robbery. On June 23, 2020, GLOVER committed a second armed robbery at a liquor store in St. Paul, Minnesota, using force and violence against an employee. GLOVER brandished a firearm in the course of that robbery.
This case is the result of an investigation conducted by the Bloomington Police Department, the St. Paul Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
DEVON DWAYNE REGINALD GLOVER, a/k/a “Chiraq,” 21
St. Paul, Minn.
Charges:
- Hobbs Act robbery, 2 counts
- Discharging a firearm during and in relation to a crime of violence, 1 count
- Brandishing a firearm during and in relation to a crime of violence, 1 count
MARSHAWN MICHAEL DAVISON, 19
Columbia Heights, Minn.
Charges:
- Hobbs Act robbery, 1 count
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Two KC Men Charged with Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Missouri, men were charged in federal court today with illegally possessing firearms following a brief armed standoff with police officers and a foot chase.
Michael D. Moore, 30, and Jamahl D. Jones, 33, each were charged with being a felon in possession of a firearm in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Masterpiece Arms 9mm pistol seized by law enforcement officersMoore and Jones were arrested on Monday, Aug. 17, following a brief standoff and foot chase. Officers who had been surveilling Moore followed him into a parking lot near 2310 E. 9th St., Kansas City, Mo., in order to arrest him on an outstanding felony arrest warrant for robbery and armed criminal action. As officers drove into the parking lot with their red and blue lights flashing, Moore got out of the BMW SUV, took cover behind the vehicle, and drew a Smith and Wesson 9mm handgun from his waistband. Moore pointed his firearm directly at police officers as he attempted to take a position of cover behind his vehicle. Moore fled as additional police cars entered the parking lot, throwing away his handgun. Moore then laid on the ground about 15 feet away from the firearm, and was taken into custody. Officers recovered the firearm, which was loaded with 16 live rounds in the 16-round high-capacity magazine and one live round in the chamber. Officers identified the firearm as having been reported stolen.
Jones, who was standing beside the vehicle as officers approached, was also detained. Officers found marijuana in Jones’s front shorts pocket. Inside the vehicle, officers found a Sadarius 9mm semi-automatic handgun, which contained a magazine and 16 live rounds of ammunition with a live round in the chamber. Officers also found a box that contained 18 live rounds of 9mm ammunition, a 9mm handgun magazine, and a small safe that contained a 9mm handgun magazine and approximately 123 grams of marijuana.
According to an affidavit filed in support of today’s criminal complaint, Moore was involved in two armed robberies that led to the issuance of the arrest warrant and surveillance.
Masterpiece Arms 9mm pistol seized by law enforcement officersThe victim of an armed robbery on July 1, 2020, told police officers that Moore, his brother-in-law, is an organizer for the “Honk for Peace” group that typically assembles at the intersections of 35th Street and Prospect Avenue as well as 55th Street and Prospect Avenue. Moore invited the victim to join the assembly at 55th Street and Prospect Avenue, the affidavit says. When the victim arrived with another person as a passenger in his vehicle, he contacted Moore, who directed him to drive across the street to meet him. After parking his vehicle, the victim told officers, two unknown men approached the passenger side door and Moore got into the rear passenger seat. Moore allegedly put a Taurus .40-caliber handgun against the left side of the victim’s head and ordered him to “give me everything.” One of the other men leaned inside the window and began going into the passenger’s pockets as Moore did the same. Moore removed $407 from the victim’s pants pocket, the affidavit says, and grabbed a pink backpack that contained a .40-caliber handgun.
On July 21, 2020, Moore allegedly approached another victim who was putting oil in his car outside a gas station on East 39th Street, Kansas City, Mo. Moore allegedly approached him with a gun and ordered him to “empty your pockets.” Moore and another man stole approximately $140 and fled the scene.
Moore was later identified through surveillance photos at the gas station, the affidavit says.
On July 29, 2020, police officers stopped a BMW SUV that also was captured in the gas station surveillance photos. Jones, the only occupant of the vehicle, was arrested. Officers found a Masterpiece Arms 9mm pistol with a high-capacity extended magazine inside the vehicle, as well as 146 grams of marijuana packaged in multiple individual baggies in the driver’s side floorboard.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Moore has a prior felony conviction for robbery. Jones has two prior felony convictions for burglary, and prior felony convictions for theft, tampering with an airplane/motor boat, possession of a controlled substance, and tampering with a motor vehicle.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew Moeder. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Topeka Man Pleads Guilty in Armed RobberiesRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty today to armed robberies at two Topeka businesses, U.S. Attorney Stephen McAllister said.
Victor Alberto Arellano, 22, Topeka, Kan., pleaded guilty to two counts of armed robbery and two counts of brandishing a firearm during the armed robberies.
In his plea, Arellano admitted that on Aug. 28, 2019, he and co-defendant Javier Martinez robbed the Panderia Monterrey Bakery at 3145 S.E. 6th Avenue and on Aug. 29, 2019, he and Javier Martinez robbed Poblanos Grille at 3935 S.E. 6th Avenue. In both cases, Arellano and Javier Martinez held employees at gunpoint. Another co-defendant waited in the car to make a getaway.
Arellano’s sentencing is set for Nov. 24. He could face up to 20 years in federal prison and a fine up to $250,000 on each robbery count and not less than seven years and a fine up to $250,000 on each count of brandishing a weapon, to be served consecutively to the robbery counts and consecutively to each other.
Co-defendant Ernesto Negrete Jr. is set for sentencing Oct. 27. Co-defendant Javier Angel Martinez is awaiting trial.
McAllister commended the FBI and Assistant U.S. Attorney Greg Hough for their work on the case.
Three men indicted for selling deadly fentanyl to Navy sailorRead the Press Release
Tacoma - Two South King County men and a former U.S. Navy sailor have been indicted for conspiracy and various drug distribution and firearms charges in connection with their trafficking in counterfeit pills laced with deadly fentanyl, announced U.S. Attorney Brian T. Moran. CHASE FRIEDRICH, 28, was arrested April 21, 2020, at his Des Moines, Washington, apartment. His drug supplier, RAOUL V. NORMANDIA, JR., 28, was arrested April 24, 2020, near his Federal Way, Washington, residence. IVAN ARMENTA, 20, was separated from the Navy and taken into federal custody August 7, 2020. FRIEDRICH sold counterfeit Percocet pills to Navy Sailor ARMENTA, who then provided them to another sailor who died of a drug overdose. The pills were tainted with deadly fentanyl.
The investigation began April 18, 2020, when a Navy sailor was found dead in his workspace aboard a Navy ship. In his pocket were two counterfeit pills that were laced with fentanyl. The Naval Criminal Investigative Services (NCIS) were able to identify ARMENTA as the sailor who provided the pills to the victim and identified FRIEDRICH as his supplier. A search of FRIEDRICH’s apartment revealed cocaine, a handgun, and a bag of approximately 100 counterfeit pills.
Investigators were able to trace the pills to NORMANDIA. He was arrested a few blocks from his home. In the vehicle was cocaine. During a court‑authorized search of NORMANDIA’s residence, law enforcement recovered cocaine, MDMA, firearms, ammunition, body armor, narcotics, and various signs of the drug trade, including scales, baggies, heat sealers, Moneygram receipts, and twenty cell phones.
NORMANDIA and FRIEDRICH are charged with conspiracy. FRIEDRICH and ARMENTA are each charged with distribution of fentanyl. FRIEDRICH is also charged with possession of cocaine and fentanyl with intent to distribute, and with possession of a firearm in furtherance of a drug trafficking crime. Finally, NORMANDIA is charged with possession of MDMA and cocaine with intent to distribute and with possession of a firearm in furtherance of a drug trafficking crime.
All three defendants face a statutory maximum term of up to twenty years in prison. The possession of a firearm in furtherance of a drug trafficking crime calls for an additional consecutive prison term of five years.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by NCIS and the Kitsap County Sheriff’s Office as a part of the West Sound Narcotics Enforcement Team (WestNET) and is being prosecuted by Assistant United States Attorney Lyndsie Schmalz.
Tennessee man sentenced for violent attempted armed carjackingRead the Press Release
ROME, Ga. - Michael Sean Conner has been sentenced for a violent carjacking he attempted in Adairsville, Georgia, during which he shot a young man asleep in his truck. Conner will serve this sentence consecutively to a seven-year sentence for a previous carjacking conviction in Tennessee, for a total sentence of 35 years of confinement.
“Conner’s senseless and depraved act left a young man paralyzed from the chest down,” said U.S. Attorney Byung J. “BJay” Pak. “His callous disregard for the lives of others justifies the very lengthy prison sentence he received in this case. Our office is grateful for the careful coordination of our federal, state, and local law enforcement partners whose collaboration ensured the success of this prosecution.”
“Mr. Conner’s sentence can never fully account for the suffering he inflicted on his victims,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “In this case, the combined efforts of the Adairsville Police Department, the GBI, the ATF, and the U.S. Attorney’s Office worked to ensure that Mr. Conner will not have an opportunity to hurt anyone else for a very long time.”
“This sentence is the result of an effective partnership between our local and federal agencies. The GBI is dedicated to thoroughly investigating violent offenses leading to successful prosecutions to keep the streets safe from offenders such as Conner,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“It is unfortunate that this heinous act occurred in the city of Adairsville. As the Chief, I am thankful for the resources provided to us by the GBI, ATF, and U.S. Attorney’s Office to assist in the investigation and prosecute this case to ensure justice was served for the victim,” said Adairsville Chief of Police Mike Jones.
According to U.S. Attorney Pak, the charges and other information presented in court: On May 7, 2018, the victim in this case, a young man unknown to Conner, was driving home to Florida after attending a wedding in Tennessee. He had stopped to nap at a gas station in Adairsville. Conner and two women, Kristy Lynn Davis and Destany Schubert, pulled beside the victim in a second vehicle. Conner tapped on the window of the victim’s truck, pointed a gun at the young man, and demanded that he give up his truck. Conner then shot the victim in the chest as he tried to roll up his window and back away from Conner, leaving him paralyzed from the chest down.
Conner and his female passengers were charged for the crime following Conner’s arrest for committing another armed carjacking in Tennessee within hours of the offense in Georgia.
Michael Sean Conner, 28, of Hixon, Tennessee, was sentenced to 28 years of confinement to be followed by three years of supervised release. The federal sentence will run consecutively to the seven years he is serving in Tennessee for another carjacking. Conner had previously pleaded guilty to the carjacking offense in Tennessee and received a sentence of seven years of confinement. The Georgia sentence will run consecutive to his Tennessee sentence, resulting in a total custodial sentence of 35 years of confinement.
Kristy Lynn Davis, 38, of Summerville, Georgia, who pleaded guilty to acting as Conner’s accessory, was sentenced to on August 13, 2020, to three years in prison to be followed by three years of supervised release.
Destany Schubert, 22, of Fort Oglethorpe, Georgia, who also pleaded guilty to acting as Conner’s accessory, received a sentence on June 19, 2020, of one year, six months in prison, followed by three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Georgia Bureau of Investigation, and the Adairsville Police Department.
Assistant U.S. Attorney Katherine M. Hoffer prosecuted the case.
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.
St. Louis Man Pleads Guilty to Armed Carjacking DowntownRead the Press Release
St. Louis, MO – Ricky Smith, 23, of St. Louis, MO, pleaded guilty to one count of carjacking. Smith appeared today before U.S. District Judge Henry E. Autrey who accepted his plea and set his sentencing date for November 19, 2020.
According to the plea agreement, on May 18, 2019, Smith approached the victim near the intersection of 11th Street and St. Charles Street in St. Louis City. The victim was in the process of moving her belongings from her 2016 Jeep Wrangler into her apartment. Smith approached the victim, pointed a silver-framed firearm at her, and demanded the victim’s phone, wallet, and car key. After the victim refused to comply, Smith snatched the victim’s car key and drove away in the victim’s 2016 Jeep Wrangler.
Later that day, St. Louis Metropolitan Police Department Officers located the 2016 Jeep Wrangler, which Smith was still driving. Officers attempted a traffic stop, but Smith refused to stop driving. Officers disabled the car using spike strips. Smith fled on foot, but was ultimately detained. While canvassing the area, police observed a silver-framed Arminius Titan Tiger 38 Special revolver firearm in a trash can approximately 15 feet from the stolen vehicle.
Smith faces a term of imprisonment of not more than 15 years in prison and a fine of not more than $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation are investigating the case. Assistant United States Attorney Jay Redd is handling this case.
Sioux Falls Man Sentenced for Meth ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on August 18, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Patrick Cummings, age 34, was sentenced to 86 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Cummings was also ordered to forfeit ownership of a handgun seized during the investigation.
Cummings was indicted by a federal grand jury on October 16, 2019. He pled guilty on August 18, 2020.
The conviction stemmed from a traffic stop that occurred on July 4, 2019, in which Cummings possessed with the intent to distribute 127 grams of methamphetamine. Also found during the stop was a Smith & Wesson .380 AUTO caliber, semi-automatic pistol.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the South Dakota Highway Patrol, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Cummings was immediately turned over to the custody of the U.S. Marshals Service.
Shreveport Man Convicted by Federal Jury Sentenced on Firearms ChargeRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that James Albert Mayo, III, 39, of Shreveport, was sentenced today for being a convicted felon in possession of ammunition. U.S. District Judge Elizabeth Foote sentenced Mayo to 51 months, followed by 3 years of supervised release.
A jury returned a guilty verdict against Mayo on November 13, 2019 after a two-day trial. According to evidence introduced at trial, law enforcement agents received a complaint of people smoking marijuana in a vehicle in a Shreveport neighborhood. When officers arrived, they found Mayo, along with others, in the vehicle. After further investigation, agents found that Mayo, a convicted felon, had a round of 9mm ammunition in his pocket that matched a round of ammunition recovered from a Smith & Wesson pistol that was in the vehicle where Mayo was sitting. Additionally, the firearm had been reported as stolen out of Killeen, Texas.
During the trial, the front seat passenger of the vehicle Mayo was riding in claimed possession of the Smith & Wesson and had previously pled guilty in Caddo District Court to possessing the stolen firearm. The trial jury did not find beyond a reasonable doubt that Mayo possessed the Smith & Wesson pistol and only convicted him of possessing the ammunition. However, at sentencing, the Court found the testimony of the front seat passenger not credible, finding that Mayo possessed the Smith & Wesson pistol and considered the possession of the firearm in handing down the sentence.
Mayo’s three prior felony convictions in Caddo Parish are for attempted distribution of narcotics (2005), possession of narcotics (2011), and possession of narcotics (2013). Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
The ATF and the Caddo-Shreveport Mid-Level Unit conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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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.
Rockford Man Sentenced to 12 Years in Federal Prison on Child Pornography ChargesRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to 12 years in federal prison, to be followed by 15 years of court-supervised release, on child pornography charges.
DONOVAN HEIDENREICH, 25, pleaded guilty on March 13, 2020, to charges of transportation of child pornography via the internet and possession of child pornography. In a written plea agreement, Heidenreich admitted that on Sept. 25, 2017, he used a computer to send a video file over the internet to a fellow KIK chat application user. The image depicted a male child under the age of 18 engaged in sexually explicit conduct. Heidenreich also admitted that on Nov. 28, 2017, he possessed a laptop computer that contained more than 600 images of children engaged in sexually explicit conduct. Heidenreich also admitted he traded images of children engaged in sexually explicit conduct to other persons in exchange for his receipt of images of children engaged in sexually explicit conduct.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Michael D. Love.
Robinson Twp. Man Pleads Guilty in International Investigation into Darknet Sale of Child Exploitation Videos and ImagesRead the Press Release
PITTSBURGH, PA - A resident of Robinson Township, Pennsylvania, waived indictment and pleaded guilty in federal court to charges of violating federal child exploitation laws, United States Attorney Scott W. Brady announced today.
Anthony Bellisario, 57, pleaded guilty to two counts before United States District Judge Robert J. Colville.
In connection with the guilty plea, the Court was advised that as a result of a large-scale, international investigation into the Darknet site "Welcome 2 Video", which offered child sexual exploitation images and videos for sale using the cryptocurrency bitcoin, Bellisario was identified as a user of this Website. Namely, from January 21, 2017 through February 27, 2018, Bellisario downloaded approximately 1,673 files of child sexual abuse material (commonly referred to as child pornography) and uploaded approximately six files to the Website and in return received credits to obtain "free" videos of child sexual abuse material. The Court was further advised that on March 27, 2018, during the execution of a federal search warrant at Bellisario’s residence, law enforcement seized two laptops owned by Bellisario. On these laptops, law enforcement found 1,000 unique videos and 443 unique images of child sexual abuse material; as well as 769 unique videos and 9,340 unique images of child erotica. Bellisario further admitted hat he used a Virtualized Private Network (VPN) in an effort to mask his identity online because he "[knew] what [he was] doing was illegal. That way people can’t find you for doing things that are illegal."
Judge Colville scheduled sentencing for January 5, 2021, at 10:00 a.m. The law provides for a total sentence of not less than five and not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Department of Homeland Security – Homeland Security Investigations, with the assistance of the North Strabane Police Department, Robinson Township Police Department and the Pennsylvania Office of the Attorney General, conducted the investigation that led to the prosecution of Bellisario.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 17, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Richard Peneaux, age 26, was sentenced to 27 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.
Peneaux was indicted by a federal grand jury on February 11, 2020. He pled guilty on June 16, 2020.
Peneaux was convicted of Sexual Abuse of a Minor in March 2014. As a result of this conviction, he is required to register as a sex offender. On December 19, 2019, Peneaux absconded from the Community Alternatives of the Black Hills Corrections Center in Rapid City, South Dakota. As a result, federal warrants were issued to have Peneaux arrested. On January 7, 2020, Rapid City Police Officers arrested Peneaux, after he led them on a foot pursuit and provided a false name and social security number. Between the time Peneaux absconded through the time of his arrest, Peneaux failed to properly register as a sex offender.
This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Peneaux was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of an Unregistered Firearm.
Shaun Shorter, age 31, was charged on July 23, 2020. Shorter appeared before U.S. Magistrate Judge Daneta Wollmann on August 12, 2020, and pleaded not guilty to the charge.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Shorter possessing a prohibitively-shortened 12 gauge shotgun in April 2019 at Rapid City that was not registered to him in the National Firearms Registration and Transfer Record, as required. The charge is merely an accusation and Shorter is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Shorter was released pending trial. A trial date has not been set.
Raleigh Man Receives Life Imprisonment for Human TraffickingRead the Press Release
NEW BERN, N.C. – A Raleigh man was sentenced today to life in prison for human trafficking. Brandon Marquis Jennings received his sentence in United States District Court in New Bern.
According to the court documents and evidence presented at the trial in this matter in June of last year, from 2013 until late 2016 Jennings prostituted women and children here in the Eastern District of North Carolina and at other locations around the United States.
Victims told investigators and the trial jury that Jennings would use a number of techniques to get each of them to trust and rely on him and would then convince them to work with him and to commercially prostitute themselves. Once they started, Jennings would use a variety of methods to intimidate them and to ensure they remained “willing” to engage in prostitution. At times he would physically and mentally abuse them, deprive them of food and he would withhold all their money, rendering them helpless and unable to leave.
Jennings was charged with 13 counts related to the prostitution and human trafficking activities: two counts of sex trafficking by force, fraud and coercion; two counts of sex trafficking of a minor; one count involving the manufacture of child pornography; six counts of interstate transportation for purposes of engaging in prostitution (often referred to as violations of the Mann Act); one count involving the use of the internet to promote an unlawful business, namely a prostitution business; and one count of interstate transportation of a minor for illegal sexual activity.
On June 13, 2019, Jennings was convicted of all thirteen counts following a jury trial in United States District Court in New Bern.
Mr. Higdon commented: “Today Brandon Jennings received a sentence he richly deserved. He was convicted of crimes we call human trafficking – that is, exploiting a person for labor, service or commercial sex. But, in reality, Jennings was running a form of modern-day slavery. He exploited some of our most vulnerable citizens, effectively imprisoned them, treated them as less than human and sold them out for sex to line his own pockets. My office and the entire Justice Department are focused on these crimes and we are committed to prosecuting anyone involved and to ridding our communities of this horrendous offense.”
“Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims show why these cases are a top priority for HSI investigation,” said Special Agent in Charge of Homeland Security Investigations Charlotte Ronnie Martinez. “HSI is committed to working with our law enforcement partners to find and prosecute criminal traffickers while ensuring the victims of these terrible crimes are rescued and get the care they need.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Department of Homeland Security – Homeland Security Investigations and the Raleigh Police Department investigated the case, and Assistant U.S. Attorney Erin Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-CR-318-FL.
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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.
Pharmacy Shooter Sentenced to 29 1/2 Years in Federal PrisonRead the Press Release
NASHVILLE, Tenn. – August 17, 2020 – A Nashville man convicted last fall of the robberies and shooting at the Rite-Aid Pharmacy on West End Avenue was sentenced Friday in U.S. District Court to 355 months in federal prison, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Dionte Breedlove, 26, was found guilty by a federal jury in October 2019, after a week-long trial, of robberies affecting interstate commerce and using a firearm during and in relation to crimes of violence. Breedlove was tried for participating in two separate robberies of the pharmacy on September 14, 2017, and again on October 9, 2017, during which he shot an unarmed security guard.
Breedlove, along with Carlos Valcarcel-Arocho, 22, also of Nashville, were both charged in August 2018, after an investigation into the robberies determined that Valcarcel-Arocho, an employee of Rite-Aid, was present during each robbery and participated by texting Breedlove when the time was right for him to enter the store. Valcarcel-Arocho posed as a victim during each robbery and helped stuff cash into a bag after opening the safe and cash registers. The investigation also determined that Breedlove and Valcarcel-Arocho had been acquainted for several years. A search warrant later executed at Valcarcel-Arocho’s apartment uncovered several items connected to the robbery. Valcarcel-Arocho pleaded guilty to charges relating to the October 2017 robbery and is awaiting sentencing.
During the October 2017 robbery, Breedlove pointed a gun at two employees, including Valcarcel-Arocho, and ordered them to put cash into a bag. The unarmed security guard stood nearby with his arms behind his head. Breedlove then shot him in the chest at close range and held the gun to the back of the head of the other employee while threatening him. The security guard underwent emergency surgery and was hospitalized for several weeks, followed by months of rehabilitation. His injuries were life altering and a bullet remains lodged in his spine.
At the time Breedlove committed these crimes, he was a convicted felon who had completed a six-year sentence for robbery less than two years earlier. In that case, Breedlove, who was 18 years old at the time, also shot the person he robbed.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Philip H. Wehby and Sunny A.M. Koshy prosecuted the case.
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Pharmacist Who Tampered with and Stole Infusion Narcotics Sentenced to 51 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARL MANCINI, 43, of Wolcott, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 51 months of imprisonment, followed by three years of supervised release, for tampering with and stealing infusion narcotics while he was employed as a pharmacist for a Connecticut company.
According to court documents and statements made in court, Mancini was employed as a licensed pharmacist by a Connecticut company that prepared home or hospice care intravenous infusions for a variety of medical conditions, including pain management. As part of his duties, Mancini was responsible for formulating infusions of the correct concentration for specific patients pursuant to the orders of their physician. Between approximately January and June 2019, Mancini accessed a secure area of his workplace and took vials of narcotics, including hydromorphone hydrochloride and morphine sulfate pentahydrate, that were intended to be used to formulate infusion for patients. He used a syringe to withdraw the narcotics from the vials and reinjected saline into the vial so that it would appear as if the narcotics were not missing. In order to hide his tampering, Mancini used specialized crimping tools to reseal the vials. He then returned the vials to the secure area at his workplace.
Mancini tampered with dozens of vials through this scheme. Laboratory testing of a sample of vials Mancini tampered with revealed that virtually all of the active drug had been removed and replaced with saline.
During today’s sentencing, Judge Shea heard from family members of several patients who may have received vials that Mancini had tampered with. The infusion drugs the patients received, in order to reduce their pain while in end-of-life care, appeared to be ineffective.
The investigation revealed that, in 2003, Mancini stole drugs from a previous employer, a pharmacy that provided pharmaceutical products to long-term care facilities. He was charged with state offenses, resigned, and received an adjudication under Connecticut’s accelerated rehabilitation provision. In 2007, Mancini wrote prescriptions for himself while working as a clinical pharmacist. He was again arrested on state charges, convicted, and received a one-year suspended sentence and two years of probation.
As part of the resolution of his 2007 conviction, Mancini lost his pharmacist license and agreed never to apply for one again. However, he subsequently reapplied for, and received, his license.
On December 13, 2019, Mancini pleaded guilty to one count of tampering with a consumer product.
Mancini, who is released on a $100,000 bond, is required to report to prison on November 16, 2020.
This matter was investigated by the Food and Drug Administration, Office of Criminal Investigations, the Cromwell Police Department and the Connecticut Department of Consumer Protection, Drug Control Division. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Petal Woman Sentenced to 12 Months for Theft or Receipt of Stolen MailRead the Press Release
Hattiesburg, Miss. – Angelia Dawn Sanford, 36, of Petal, Mississippi, was sentenced today by Senior U. S. District Judge Keith Starrett to serve 12 months in federal prison, followed by three years of supervised release, for theft or receipt of stolen mail matter, announced U.S. Attorney Mike Hurst and Inspector in Charge Chris Cave with the U.S. Postal Service Office of Inspector General Southern Area Field Office. Sanford was also ordered to pay restitution to a victim and a $1,000 fine.
On April 3, 2017, Forrest County Sheriff’s Office investigators were executing a search warrant at the Petal residence of Sanford and co-defendant Booker Tallieferro Hilton. During the search, investigators recovered multiple pieces of mail matter not belonging to Sanford or Booker. The U.S. Postal Inspection Service was contacted and their investigation determined that the mail matter was stolen. Sanford and Booker also confessed to stealing the mail matter found at their residence.
A federal grand jury returned an indictment against Sanford and Hilton on July 24, 2019. Sanford pled guilty on May 12, 2020. Hilton pled guilty on June 17, 2020, and will be sentenced on September 24, 2020 at 11:15 a.m. by Judge Starrett in Hattiesburg. The maximum penalty faced by each defendant for Theft or Receipt of Stolen mail is not more than 5 years in prison and a $250,000 fine.
The case was investigated by the Forrest County Sheriff’s Office and the U. S. Postal Inspection Service. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Passaic County Man Admits Participating in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in a scheme to distribute heroin and fentanyl in Paterson, New Jersey, U.S. Attorney Craig Carpenito announced.
Isaiah Hargrove, 20, of Paterson, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl and knowingly and intentionally distributing fentanyl.
According to documents filed in this case and statements made in court:
Hargrove and his conspirators are members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, the defendant and his conspirators conspired to distribute narcotics, including heroin and fentanyl.
The count of conspiracy to distribute heroin and fentanyl carries a mandatory minimum of five years in prison, maximum penalty of 40 years in prison and a fine of $5 million. The count of distribution of fentanyl carries a maximum of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 21, 2020.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Operators of Global Cryptocurrency Ponzi Scheme and Attorney Charged with Fraud and Money LaunderingRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced the unsealing of an indictment charging PABLO RENATO RODRIGUEZ, GUTEMBERG DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, and JACKIE AGUILAR for their roles in an internationally coordinated fraud and money laundering ring involved in defrauding individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company.
The case has been assigned to U.S. District Judge George B. Daniels. RODRIGUEZ and HUGHES are expected to be presented today before U.S. Magistrate Judge John Early of the Central District of California, MILLAN is expected to be presented today before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina, and AGUILAR is expected to be presented today before U.S. Magistrate Judge Christine A. Nowak of the Eastern District of Texas. DOS SANTOS was arrested in Panama City, Panama, and is pending extradition to the United States.
Acting United States Attorney Audrey Strauss said: “As alleged, the defendants put a modern-day spin on an age-old investment scam, promising extraordinary rates of guaranteed return on phantom investments in cryptocurrencies. Thanks to HSI, the defendants are in custody and facing serious criminal charges.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “Those arrested today have not only been charged with running a multimillion-dollar cryptocurrency investment fraud and money laundering ring, but also for allegedly spending their victim’s money on luxury cars, jewelry, and homes. These alleged fraudsters pulled out all the stops to sell their scheme to their victims with enticing recruitment events, then shamelessly used proceeds of their scheme to recruit additional victims through even more aggressive and lavish marketing pitches. As today’s arrests show, HSI New York’s El Dorado Task Force investigates financial crimes of every type, and will stop those who prey on unsuspecting investors who entrust their hard-earned savings to so-called financial advisors. Those who violate this trust for their personal gain will face consequences for their actions.”
According to the allegations in the Superseding Indictment unsealed today: [1]
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and AGUILAR participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). Beginning in late 2015, AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN and AGUILAR, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and AGUILAR traveled throughout the United States, and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false: no Bitcoin mining or trading on behalf of Victims in fact took place. Instead, RODRIGUEZ, DOS SANTOS, MILLAN, and AGUILAR enriched themselves, and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims.
HUGHES, an attorney licensed to practice law in California, had previously represented RODRIGUEZ and DOS SANTOS in a Securities and Exchange Commission investigation related to another investment scheme known as Vizinova before aiding RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet.
In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In one instance, AGUILAR told one Victim of the AirBit Club Scheme who was complaining about her inability to withdraw AirBit Club returns that she should “bring new blood” into the AirBit Club Scheme in order to receive her returns.
In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the Airbit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).”
RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds. Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme. In total, the defendants laundered at least $20 million in proceeds of the Scheme through these various methods.
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RODRIGUEZ, 37, of Irvine, California, DOS SANTOS, 45, of Panama City, Panama, and MILLAN, 37, of Greensboro, North Carolina, are each charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering. HUGHES, 44, of Newport Beach, California, is charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. AGUILAR, 55, of Plano, Texas, is charged with one count of conspiracy to commit wire fraud.
The wire fraud conspiracy and money laundering conspiracy charges each carry a maximum term of 20 years in prison, and the bank fraud conspiracy charge carries a maximum term of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force, HSI Panama, the HSI Panama City Transnational Criminal Investigative Unit, and HSI New Orleans. Ms. Strauss further thanked the attorneys and investigators at the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Cecilia E. Vogel, and Elizabeth A. Espinosa 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 Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Newark Man Sentenced to 90 Months for Narcotics Trafficking and Weapon Possession OffensesRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 90 months in prison for drug and weapons offenses, U.S. Attorney Craig Carpenito announced.
Terrance Bradley, 28, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing with intent to distribute heroin, cocaine, and a fentanyl analogue; one count of being a prior felon in possession of a firearm and ammunition; and one count of possessing a firearm in furtherance of a drug trafficking crime. Judge Arleo imposed the sentence today.
According to the documents filed in this case and statements made in court:
On Dec. 6, 2018, members of the Newark Police Department were conducting surveillance near a residence on Renner Avenue in Newark, when they observed Bradley engage in a suspected hand-to-hand drug transaction with a buyer. Upon completion of the suspected drug transaction, Bradley re-entered the residence while the buyer walked a short distance away, where law enforcement placed the buyer under arrest and recovered heroin from the buyer.
On Dec. 7, 2018, Newark Police Department executed a search warrant at the residence. During a search of Bradley’s bedroom, law enforcement recovered approximately 3,151 glassine envelopes of heroin and 455 vials of crack cocaine, more than $6,000 in U.S. currency, and a loaded 9mm semi-automatic pistol. Law enforcement also recovered from the residence more than 200 additional rounds of ammunition of varying calibers. Bradley acknowledged that the firearm, ammunition, and narcotics belonged to him.
In addition to the prison term, Judge Arleo sentenced Bradley to three years of supervised release.
U.S. Attorney Carpenito credited members of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s sentencing.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Missouri Surgeon and Kansas Distributor Agree to Plead Guilty to Conspiring to Pay and Receive Kickbacks to Induce Use of Spinal Implants and ObstructionRead the Press Release
BOSTON – A Missouri surgeon and Kansas distributor have been charged and agreed to plead guilty to conspiring to pay and receive kickbacks aimed at inducing the use of spinal implants sold by a medical device company as well as engaging in conduct aimed at obstructing the government’s federal investigation into that the kickback scheme.
Jason Montone, DO, 44, of Lawson, Mo., will plead guilty to one count of conspiracy to violate the Anti-Kickback statute and one count of obstruction. According to the terms of Montone’s plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine and forfeiture of $379,000 – the amount that he received in sham consulting fees from the medical device company.
John Balzer, 42, of Lenexa, Kan., will plead guilty to one count of conspiracy to violate the Anti-Kickback statute and one count of witness tampering. According to the terms of Balzer’s plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, and forfeiture of $1,264,501 – the amount that he received in commissions from the medical device company for products Montone used in his spine surgeries.
Plea hearings have not yet been scheduled by the Court.
“Kickbacks paid to influence physicians are illegal and incompatible with a properly functioning health care system,” said United States Attorney Andrew E. Lelling. “We will take all necessary steps to ensure that patients receive, and the government pays for, health care that is based solely on sound medical judgment, not compromised by kickbacks.”
“These charges serve as a strong reminder that we will not tolerate bribes and corruption within our federal healthcare system, nor will we accept acts of obstruction that attempt to disrupt our pursuit of justice,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Surgeons are entrusted to make decisions for the best interests of their patients, not because of the corrupting influence of kickbacks. We will fervently pursue kickback schemes that seek to undermine our healthcare system no matter how those schemes are disguised.”
“When surgeons participate in a kickback scheme with medical device companies, they trade their commitment to patient care for personal gain. Any efforts to obstruct our investigations only compound that harm,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Sham consulting arrangements undermine the integrity of the medical decision-making process, and this case sends a clear message that these types of financial arrangements will not be tolerated.”
According to the charging documents, between late 2012 and October 2015, Balzer, Montone, and their co-conspirators engaged in a scheme in which the medical device company and its CEO and CFO paid Montone a total of $379,000 pursuant to a sham consulting program that paid Montone $500 to $750 per hour for supposedly performing consulting services. Although the medical device company’s physician-consulting program was purportedly directed at gathering technical feedback about its products from surgeons, the company and its CEO and CFO allegedly used the program, and the kickbacks they paid pursuant to that program, to induce and reward Montone’s decision to use the company’s products.
To accomplish this, the medical device company, among other things, tracked the sales volumes of Montone and other physician-consultants and used that information to determine how much the company would pay Montone, regardless of how much consulting was actually performed. During the conspiracy, Balzer and Montone represented that Montone had spent hundreds of hours evaluating products, discussing industry trends and educating medical residents. In fact, Montone spent only a small fraction of his reported time performing actual consulting activities for the medical device company. In exchange for the consulting payments he received, Montone used over $4.5 million of the company’s products in his surgeries, often in Balzer’s presence or at his prompting, including excessive amounts of certain of the company’s products. During this time, Montone performed numerous surgeries on patients who were Medicare or Medicaid beneficiaries. The medical device company agreed to pay Balzer a 25% commission on all of the medical device company’s products that Montone used in his spine surgeries. Over the period of the time covered by the conspiracy, the company paid Balzer over $1.2 million in commissions for spine products Montone used.
In September 2017, after Montone learned of the government’s investigation into the medical device company, he created false documents purporting to show work he ostensibly performed pursuant to his consulting agreement and later produced those false documents to the government. In December 2018, Montone sat for an interview with government agents and withheld information concerning his conversations with the company’s employees regarding how his consulting fees would be determined; how he came up with the number of alleged consulting hours he had performed; and his conversations with Balzer about violations of the Anti-Kickback Statute.
In February 2019, after Balzer became aware of the government’s investigation he advised Montone to falsely tell the government that Montone had performed legitimate consulting in an amount equal to the hundreds of hours Balzer and Montone had reported and that Montone was “surprised” the company was missing documentation showing Montone’s feedback and consulting work. In fact, Balzer knew that neither representation was true.
The charge of witness tampering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the victims and restitution. The charges of conspiracy to violate the Anti-Kickback Statute and obstruction of a criminal health care fraud investigation each provide for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the victims, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement. Assistant U.S. Attorneys Patrick M. Callahan, Abraham R. George and David J. Derusha of Lelling’s Health Care Fraud Unit and Affirmative Civil Enforcement Unit are prosecuting the cases.
The details contained in the court documents concerning other individuals and entities are allegations only and those individuals and entities are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mission Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury.
Thomasine Noela Charging Bear, age 35, was indicted on August 11, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 17, 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 June 19, 2020, Charging Bear assaulted an individual with a sharp edged instrument with the intent to do bodily harm and the assault resulted in serious bodily injury.
The charges are merely accusations and Charging Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Charging Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Member of Safe Streets Program and Others Face Federal Charges for Distributing HeroinRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed against Ronald Alexander, age 50, Mark Brinkley, age 51, and Thomas Corey Crosby, age 51, all three of Baltimore, charging them with Conspiracy to Distribute Controlled Substances, 21 U.S.C. § 846. The criminal complaint was filed on August 12, 2020 and was unsealed at the initial appearance yesterday. Detention hearings have been scheduled for Crosby on Wednesday August 19, 2020 at 11:30 a.m., and Alexander on Friday August 21, 2020 at 9:30 a.m.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
In 2001, Alexander pleaded guilty in the United States District Court for the District of Maryland to Conspiracy to Distribute and Possess with Intent to Distribute Heroin. Alexander was sentenced to 240 months of incarceration and released from the Bureau of Prisons in or around May 2018.
Law enforcement had obtained judicial authorization to intercept communications to and from cellular telephones used by Alexander from May through July 23, 2020. During the course of the investigation, the DEA also obtained authorization to install and maintain a GPS tracking device on a 2019 Dodge Caravan registered to Alexander. Interceptions of Alexander revealed that he operated a “drug shop” in the vicinity of Spaulding Avenue and Palmer Avenue in Baltimore, Maryland and that Crosby supplied narcotics to Alexander, who then dispersed them to Brinkley, and others.
Over the course of the investigation, law enforcement intercepted Alexander conducting narcotics-related business on multiple occasions. For example, on June 19, 2020, Alexander engaged in a lengthy discussion with another individual about a co-conspirator, complaining that the co-conspirator had been getting too high from drugs recently. Alexander cautioned that the co-conspirator had been pulling out all of his money all at a time and was going to be robbed. As the call continued, Alexander remarked, “I said, be realistic man, you went from selling two to three thousand dollars’ worth of dope to only selling damn near three, four hundred dollars’ worth of dope a day…” Alexander continued, “You’re only selling that much because you keep running around, you sitting there noddin’, you’ll selling dope like you you’ll sell coke, waiting for people to come to you instead getting out promotin.”
Throughout June 2020, Alexander engaged in conversations with Crosby and Binkley about narcotics dealing, as detailed in the criminal complaint. For example, law enforcement intercepted Alexander and Brinkley on June 18, 2020, discussing an upcoming narcotics transaction, which occurred later that day. Alexander also discussed with another individual obtaining firearms, and during that conversation Alexander said that he had two guns, one of which he kept in his house. Alexander has a felony conviction and therefore, prohibited from possessing any firearms.
On July 23, 2020, DEA investigators executed a search warrant at Brinkley’s residence in Baltimore, Maryland. Inside the house, investigators encountered Brinkley, another adult and two children. Agents searched the house and located a safe in the main bedroom, which the other adult unlocked. Inside the safe, investigators found a grocery bag containing a bag with fentanyl weighing approximately 117 grams, a bag with cocaine weighing approximately 271 grams, and a latex glove containing heroin, weighing approximately 128 grams. Agents also located an iPhone in the residence. One agent called a target number belonging to Brinkley, and saw the phone indicate there was an incoming call.
On August 9, 2020, Alexander received a call from Crosby asking to meet that evening. At around 9:05 p.m., Alexander arrived at a BP gas station in Baltimore in his Dodge Caravan. At around 9:09 p.m., a gold Toyota minivan arrived at the gas station. Investigators saw Crosby get out of the gold Toyota minivan and get into Alexander’s vehicle. After a short period of time, Crosby got out of Alexander’s vehicle and then returned to his vehicle. At around 9:12 p.m., Alexander left in his Dodge Caravan. Investigators followed Alexander and conducted a traffic stop of Alexander.. During the stop, investigators searched the vehicle and discovered a plastic bag that contained a white powdery substance in the center console believed to be heroin. During the stop, Alexander stated that he had taken the drugs from a member of the community in furtherance of his work with the Safe Streets program. To preserve the integrity of the investigation, DEA investigators seized the suspected heroin and did not arrest Alexander. Investigators weighed the suspected heroin and it weighed approximately 101 grams.
If convicted, Alexander, Crosby, and Brinkley face a maximum sentence of 20 years in federal prison for the drug conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the DEA, and BPD for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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Media Advisory: United States Attorney Mike Stuart to Hold Press Conference TomorrowRead the Press Release
CHARLESTON, W.Va. –Mike Stuart, United States Attorney for the Southern District of West Virginia, joined by federal, state and local law enforcement officials, will hold a press conference on Wednesday, August 19, 2020, at 10 a.m. regarding law enforcement actions.
Where: Robert C. Byrd United States Courthouse – (will be outside in the front courtyard)
300 Virginia Street East
Charleston, WV 25301When: Wednesday, August 19, 2020 at 10 a.m.
*Note: Please wear masks.
Follow us on Twitter: SDWVNews and USAttyStuart
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Man Charged with Conspiracy to Use Interstate Commerce Facilities in the Commission of Murder-for-Hire, Resulting in DeathRead the Press Release
St. Louis – James Timothy Norman, 41, of Jackson, Mississippi, was charged by a federal complaint on August 11, 2020. He was arrested this morning in Jackson, Mississippi. Norman was charged with conspiracy to use interstate commerce facilities in the commission of a murder-for-hire, resulting in death.
According to the complaint, Norman conspired with Terica Ellis and others to use a facility of interstate commerce, namely, a cellular telephone, to commit a murder-for-hire in exchange for United States currency, in violation of Title 18, United States Code, Section 1958. In 2014, Norman obtained a $450,000 life insurance policy on his 18-year-old nephew, Andre Montgomery, on which Norman was the sole beneficiary. In the days leading up to Montgomery’s murder, Ellis, an exotic dancer residing in Memphis, Tennessee, communicated with Montgomery and informed him that she was planning to be in St. Louis. On March 13, 2016, the day before Montgomery’s murder, Norman flew to St. Louis, Missouri from his home in Los Angeles, California. On March 14, 2016, Ellis and Norman communicated using temporary phones activated that day. Ellis also used the temporary phone to communicate with Montgomery and learn his physical location. Immediately after learning Montgomery’s location, Ellis placed a call to Norman. On March 14, 2016, at approximately 8:02 p.m., Montgomery was killed by gunfire at 3964 Natural Bridge Avenue in the City of St. Louis. Ellis’s phone location information places her in the vicinity of the murder at time of the homicide. Immediately following Montgomery’s murder, Ellis placed a call to Norman, and then began travelling to Memphis, Tennessee. In the days after the murder, Ellis deposited over $9,000 in cash into various bank accounts. On March 21, 2016, Norman contacted the life insurance company in an attempt to collect on the life insurance policy he had obtained on his nephew.
Terica Ellis was also charged by complaint with conspiracy to use interstate commerce facilities in the commission of murder-for-hire, resulting in death.
United States Attorney Jeff Jensen credited the St. Louis Metropolitan Police Department and the FBI. Jensen stated, “The St. Louis Metropolitan Police Department Homicide Section and FBI have established a dedicated and effective partnership in this extensive investigation.”
The arrests are part of Operation LeGend which is a federal partnership with local law enforcement to address the increase in homicides and violent crime in St. Louis in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the Department of Homeland Security, FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
The St. Louis Metropolitan Police Department Homicide Section and Federal Bureau of Investigation are investigating these current charges.
A criminal complaint is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
Machesney Park Man Sentenced to 12 Years in Federal Prison for Robbing a Bank and Convenience StoreRead the Press Release
ROCKFORD — A Machesney Park man was sentenced Monday by U.S. District Judge John J. Tharp, Jr., to a total of 12 years in federal prison for armed robbery, robbery, and using and carrying a firearm during a crime of violence.
DAVID M. BANEY, 35, pleaded guilty on Jan. 6, 2020, to the robbery of Chase Bank, 7997 N. Alpine Rd. in Loves Park, and the robbery of Kelley’s Market/Mobil Gas Station, 8200 N. Second St. in Machesney Park, on Jan. 11, 2018. Baney was also ordered to pay restitution totaling $24,732.80.
According to a written plea agreement, Baney admitted that on Jan. 11, 2018, he walked into the Chase Bank wearing a mask. Baney approached a teller who was behind the teller stations and demanded money from two tellers. During the robbery, Baney carried a gun and pointed it at a bank employee and a bank customer. Baney obtained $24,402 from Chase Bank during the robbery.
Baney also admitted that on the same day he possessed an object that appeared to be a firearm when he entered the Kelley’s Market/Mobil Gas Station and ordered the employee to give him cash. The employee turned over cash, and Baney left the store with the money.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Gary Caruana, Winnebago County Sheriff; Dan O’Shea, Chief of the Rockford Police Department; and Chuck Lynde, Chief of the Loves Park Police Department. The government was represented by Assistant U.S. Attorney Michael D. Love.
The investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, consisting of law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department, and Freeport Police Department. Officers from the Loves Park Police Department and the Winnebago County Sheriff’s Department participated in the investigation.
Labelle Felon Who Sold Firearm to ATF Agent Sentenced to More Than Six Years in PrisonRead the Press Release
Fort Myers – U.S. District Judge Sheri Polster Chappell today sentenced Alton Jackson (26, Labelle) to six years and three months in federal prison for possessing a firearm as a convicted felon. The court sentenced Jackson to a term of imprisonment above his federal sentencing guidelines range, citing his numerous encounters with law enforcement dating back to age 14 and his recidivism risk.
Jackson had pleaded guilty on May 8, 2020.
According to court documents, in January 2019, Jackson sold an AR-15 style rifle to an undercover ATF agent at a motel in Fort Myers. Following a months-long search, Jackson was arrested in North Carolina by the United States Marshals Service and transported to the Middle District of Florida.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
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.