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Wednesday 12 August 2020
Justice Department Acts to Shut Down Fraudulent Websites Exploiting the Covid-19 PandemicRead the Press Release
The U.S. Department of Justice announced today that it has obtained a Temporary Restraining Order in federal court to combat fraud related to the coronavirus (COVID-19) pandemic. The enforcement action, filed in Tampa, Florida, is part of the Justice Department’s ongoing efforts prioritizing the detection, investigation, and prosecution of illegal conduct related to the pandemic. The action was brought based on an investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in coordination with the Vietnam Ministry of Public Security.
“The Department of Justice is committed to preventing fraudsters from exploiting this pandemic for personal gain,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “We will use every resource at the government’s disposal to pursue scammers who are stealing money from citizens amidst the ongoing public health crisis.”
“This action affirms our commitment to Attorney General Barr’s directive to prioritize fraud schemes arising out of the coronavirus pandemic,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “We will continue to aggressively investigate and shut down these scams that attempt to take advantage of our fellow American citizens, who are trying to keep their families safe and healthy during these very trying times.”
“Unfortunately the Global Pandemic has given criminals and criminal organizations a new opportunity to take advantage of our communities by targeting vulnerable populations through financial fraud schemes, the importation of counterfeit pharmaceuticals and medical supplies, and illicit websites defrauding consumers which continue to compromise legitimate trade and financial systems,” said HSI Tampa Acting Special Agent in Charge Kevin Sibley. “Through our investigations under Operation Stolen Promise, HSI will continue to disrupt and dismantle these criminal networks as well as those who are exploiting the pandemic for their own financial gain.”
As detailed in the civil complaint and accompanying court papers filed on Monday, Aug. 3, 2020, Defendants Thu Phan Dinh, Tran Khanh, and Nguyen Duy Toan, all residents of Vietnam, are alleged to have engaged in a wire fraud scheme seeking to profit from the COVID-19 pandemic. According to the complaint, defendants operated more than 300 websites that fraudulently purported to sell products that became scarce during the pandemic, including hand sanitizer and disinfectant wipes. Thousands of victims in all 50 states attempted to purchase these items from defendants’ websites. Victims paid for items supposedly sold through the websites but never received the purchased products. The complaint alleges that defendants set up hundreds of email accounts and accounts with a U.S.-based payment processor to effectuate the scheme and keep it hidden from law enforcement. Defendants are also alleged to have listed fraudulent contact addresses and phone numbers on the websites, causing unaffiliated individuals and businesses in the United States to receive numerous complaint calls from victims who had been defrauded by the scheme. In response to the Department’s request for injunctive relief, U.S. District Judge Charlene Edwards Honeywell issued an emergency ex parte temporary restraining order requiring that the registrar and registries of defendants’ fraudulent websites take immediate action to disable them.
The United States obtained the restraining order to shutter defendants’ websites immediately while an investigation of defendants’ scheme continues. In so doing, the government is employing a federal statute that permits federal courts to issue injunctions to prevent harm to potential victims of fraudulent schemes. In response to information provided by HSI, Vietnamese authorities have also conducted their own investigation and arrested the Defendants.
The Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:
- Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
- Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
- Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
- Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
- Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
- Ignore offers from suspicious sources for a COVID-19 vaccine, cure, or treatment. Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
- Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
- Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
- Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
- Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites. The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721) or via an online reporting form available at www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
The enforcement action taken today is being prosecuted by Assistant U.S. Attorney Carolyn B. Tapie of the Middle District of Florida and Trial Attorney Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch. HSI’s Tampa office is conducting the investigation.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at www.justice.gov/usao-mdfl. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus.
Jefferson County Woman Sentenced for Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK - Amber Decker, age 26, of Antwerp, New York, was sentenced in federal court today to serve 264 months (22 years) in federal prison for her part in the sexual exploitation and hands-on abuse of a two year old child, announced United States Attorney Grant C. Jaquith, and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In June 2019, Decker pled guilty to all counts of a seven-count indictment, admitting that she, together with her husband, Logan Decker, conspired to and sexually exploited the child for the purpose of producing images and videos of the abuse. Decker admitted that on several occasions in July and August, 2018, while she was living in Jefferson County, New York, and her husband was located in Sioux Falls, South Dakota, she videotaped her sexual abuse of the two-year-old, and uploaded the video files to a cloud storage account for her husband to view.
United States District Judge David N. Hurd also imposed a term of supervised release of 20 years to follow Decker’s term of incarceration, at which time she will also be required to register as a sex offender.
Logan Decker pled guilty to the same offenses, and is scheduled for sentencing on September 23, 2020.
This case was investigated by the Federal Bureau of Investigation (FBI), Syracuse Resident Agency, the New York State Police, the Jefferson County Sheriff’s Office, and the Sioux Falls, South Dakota Police Department, and prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Indiana Man Arrested on Federal Fraud Charge for Allegedly Scheming to Sell Stolen ArtworkRead the Press Release
CHICAGO — An Indiana man has been arrested on a federal fraud charge for allegedly scheming to sell expensive artwork stolen from a storage facility in a north suburb of Chicago.
From February 2020 to earlier this month, JOHN GARCIA engaged in a scheme to sell various items, including paintings, sculptures, and rugs, which were stolen from a storage facility in Deerfield, according to a criminal complaint filed in U.S. District Court in Chicago. Garcia, also known as “John Adams,” “John Adamino,” and “Michael Chapman,” 53, of Schererville, Ind., is charged with one count of wire fraud. He was arrested Aug. 7, 2020, and remains in federal custody. A detention hearing is set for Aug. 13, 2020, at 10:30 a.m., before U.S. District Judge Manish S. Shah.
The complaint and arrest were 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 is represented by Assistant U.S. Attorney Kelly Guzman.
According to the complaint, the victim who owned the artwork noticed that approximately 159 items were missing from the storage facility and reported it to the FBI in May. An FBI investigation revealed that Garcia had schemed with another individual to steal the items and then broker their sale to dealers in art, antiques, and collectibles, in exchange for thousands of dollars, the complaint states. Garcia and the other individual allegedly represented to the buyers that they owned the items.
The FBI has recovered many of the stolen items, the complaint states. Some of the stolen items were discovered after court-authorized searches of a residence in Highland Park and a storage facility leased by Garcia in Orland Park.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Holyoke Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Holyoke man was sentenced today in federal court in Springfield for distributing heroin.
Alexis Santana, 19, was sentenced by Judge Mark G. Mastroianni to three years of probation. The government recommended a sentence of four months in prison. In March 2020, Santana pleaded guilty to distributing and possessing with intent to distribute heroin.
According to court records, Santana sold heroin on Oct. 7, 2019 in Holyoke.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement today. The case is being prosecuted by Todd E. Newhouse of Lelling’s Springfield Branch Office.
Harvey Man Sentenced for Conspiracy to Commit Bank and Wire Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CHRISTOPHER WATSON, age 29, of Harvey was sentenced on August 11, 2020 to 57 months imprisonment before U.S. District Judge Wendy Vitter for conspiracy to commit bank fraud and wire fraud in violation of Title 18, United States Code, Sections 1343, 1344, and 371, and aggravated identity theft in violation of Title 18, United States Code, Section 1028A. The sentence imposed by Judge Vitter reflects a sentence of 33 months for the conspiracy conviction in addition to 24 months on the aggravated identity theft conviction, to run consecutively.
WATSON admitted to an elaborate fraud scheme involving use of stolen or fraudulent identities to obtain vehicle financing. WATSON, who previously worked as a used car salesman, submitted numerous fraudulent loan applications to financial institutions and automobile lenders, sometimes using the personal identifying information of his customers without their authorization and other times using stolen identities. Throughout the course of the conspiracy, WATSON used either unauthorized or counterfeit information in order to defraud financial institutions and lenders, including USAA Financial, an FDIC-insured financial institution, Westlake Financial Services, and United Auto Credit Corporation, among other victims. WATSON admitted to using the identity of a USAA member to submit a fraudulent auto loan application to USAA Financial. In some instances, WATSON utilized the dealer license numbers and names of different legitimate car dealerships and forged their names as sellers of the vehicles on the fraudulent loan applications.
Pursuant to the plea agreement, WATSON has agreed to pay restitution of $433,949.49 to the victims of his fraud scheme, consistent with the loss amount in this matter. Judge Vitter also imposed a supervised release term of two years following WATSON’s release from prison.
U.S. Attorney Peter G. Strasser praised the work of the Jefferson Parish Sheriff’s Office and the United States Secret Service Financial Crimes Taskforce in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
Hampton Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
CONCORD - John William McMahon, 30, of Hampton, pleaded guilty in federal court to distribution of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing undercover investigation, a member of the New Hampshire Internet Crimes Against Children (ICAC) Task Force accessed a peer-to-peer network to identify users who may be sharing images of child pornography. On various dates between December 14, 2017, and January 2, 2018, law enforcement officers conducted single-source downloads of child pornography from a certain I.P. address. Agents identified the address used to distribute child pornography images during the undercover sessions.
Through their investigation, agents identified the defendant, John William McMahon, as the person responsible for distributing child pornography images during the undercover sessions. In a consensual interview, the defendant admitted accessing wireless internet belonging to a neighboring apartment, and he further admitted downloading child pornography. Investigators later obtained a search warrant for McMahon’s laptop and other electronic media recovered from him. Subsequent forensic examination revealed approximately 1,410 images of suspected child pornography on McMahon’s laptop. The child pornography images and videos were sent to the National Center for Mission and Exploited Children (NCMEC), which confirmed that 500 still images and 6 videos were of identified child victims.
McMahon’s sentencing date has not yet been scheduled.
“Child pornography crimes involve the distribution of images of children who have been the victims of terrible abuse,” said U.S. Attorney Murray. “Those who distribute these images are committing a serious federal crime and will be prosecuted aggressively. I am grateful for the efforts of the law enforcement officers whose dedicated work led to this successful prosecution.”
“Every conviction of an individual who distributes child pornography is a victory in our fight against the sharing of these sickening images,” said Michael Shea, acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston. “We applaud the tireless work of our partners in the New Hampshire Internet Crimes Against Children Task Force and the U.S. Attorney for New Hampshire for their commitment to fighting for justice for the victims of these disturbing crimes.”
This matter was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Guatemalan Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Santiago Ordonez Felipe, age 47, a citizen of Guatemala, was sentenced today to time served (36 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Ordonez Felipe admitted as part of his guilty plea that he is a citizen of Guatemala, and that he was removed from the United States to Mexico on August 18, 2015 after he was arrested by Border Patrol while illegally entering Arizona from Mexico. On July 7, 2020, he was found by an ICE Officer in Whitehall, New York. A check of fingerprint records verified the prior removal.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Grand jury charges two men in fentanyl conspiracy involving $500k cash seizureRead the Press Release
CINCINNATI – A federal grand jury has charged two men in a narcotics conspiracy that involved the seizure of more than half a million dollars and one kilogram of fentanyl.
Derrick Ferris, 44, of Cincinnati, and Jose Antonio Garcia, 22, of Lynwood, Calif., have been charged with conspiring to possess with intent to distribute fentanyl and smuggling bulk cash. The narcotics conspiracy is punishable by 10 years up to life in prison.
As part of an ongoing investigation, authorities with the Miami Valley Bulk Smuggling Task Force and Southern Ohio Bulk Smuggling-Major Drug Interdiction Task Force seized 1 kilogram of fentanyl and more than $500,000 in U.S. currency. The task forces are part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission.
According to the indictment, between May 7 and Aug. 5, 2020, Ferris (who is also known as Kelvin Croom) and Garcia smuggled bulk cash out of the United States with the intent to evade a currency reporting legal requirement.
If convicted, the United States seeks to forfeit the more than half a million dollars in cash, along with two gold Rolex watches, two gold chains, three handguns and ammunition.
Bulk cash smuggling is a federal crime punishable by up to five years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Homeland Security Investigations Special Agent in Charge Vance Callender, FBI Special Agent in Charge Chris Hoffman, Ohio Attorney General Dave Yost, Montgomery County Sheriff Rob Streck and Hamilton County Sheriff Jim Neil announced the charges. OCDETF Deputy Criminal Chief Christy L. Muncy is representing the United States in this case.
The Miami Valley Bulk Smuggling Task Force is made up of officers from the Montgomery County Sheriff's Office, Miami Township Police Department, Butler Township Police Department, Ohio State Highway Patrol, Ohio Bureau of Criminal Investigation, Homeland Security Investigations and Montgomery County Prosecutor's Office.
The Southwestern Ohio Bulk Smuggling-Major Drug Interdiction Task Force is made up of members of the Hamilton County Sheriff’s Office’s Regional Narcotics Unit along with partners from the Cincinnati Police Department, Green Township Police Department and Cheviot Police Department.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Goldsboro Man Sentenced for Distribution of Fentanyl and HeroinRead the Press Release
RALEIGH, N.C. – A Goldsboro man was sentenced today to 87 months in prison for Conspiracy to Distribute Heroin and Fentanyl and for Distribution of Fentanyl.
According to court documents, Donte Terrill Kornegay, A/K/A “Boston,” 45, of Goldsboro, was involved in the overdose death by fentanyl of a twenty-one year old victim in Sneads Ferry, North Carolina. Trial testimony and text messages and phone toll records recovered from witnesses’ cell phones established that on the night of April 6, 2016, the victim purchased fentanyl from a coconspirator, at the direction of Kornegay. In addition, the trial testimony revealed that prior to that night, Kornegay had been distributing heroin in the Sneads Ferry area since 2015.
Mr. Higdon commented: “The United States Justice Department and the United States Attorney’s Office are aggressively pursuing distributors of heroin and fentanyl. These drugs pose a serious danger to the people of Eastern North Carolina and we intend to remove that danger as part of our effort to ‘Take Back North Carolina’ from the drug traffickers and violent criminals.”
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 Onslow County Sheriff’s Office with assistance from the Drug Enforcement Administration’s Wilmington Resident Office investigated the case and Assistant U.S. Attorneys Ethan Ontjes and Toby Lathan represented the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-00100-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.
Ginseng Dealer Pleads Guilty to Falsifying RecordsRead the Press Release
KNOXVILLE, Tenn. – On August 11, 2020, Randall F. Henry, 49, of Sunbright, Tennessee, plead guilty before Magistrate Judge C. Clifford Shirley, Jr., to a felony count for falsifying records to conceal his illegal purchases of ginseng prior to the legal harvest season in 2015, violating the Lacey Act, a federal law enacted to combat the illegal trafficking of plants and wildlife.
The plea agreement will require Henry to pay restitution to the State of Tennessee and perform 100 hours of community service. Sentencing is set for December 8, 2020, before the Honorable Pamela L. Reeves, Chief U.S. District Court Judge. Henry faces a maximum term of imprisonment of up to five years.
American Ginseng (Panax quinquefolius) is a slow-growing perennial species of plant found throughout the Northeast, Midwest, and Appalachian regions of the United States. Wild American Ginseng has substantial commercial value because there is a national and international market for its use as an ingredient in food, drinks, and traditional medicines. American Ginseng is protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora of 1973 (CITES) and the Endangered Species Act (ESA). The purpose of CITES is to monitor, control, and restrict, as necessary, the international trade of certain wild plant and animal species in an effort to prevent adverse impacts and ensure continued existence of those species in their natural habitat.
In Tennessee, the Tennessee Department of Environmental Conservation (TDEC) has responsibilities—under CITES, the ESA, and state law—to regulate and monitor the commercial harvest of wild American Ginseng and to ensure that populations are not imperiled. Accordingly, American Ginseng dealers are required to routinely submit paperwork to TDEC to document their ginseng purchases. Henry admitted to falsifying such documents in 2015 after purchasing American Ginseng before the opening of the established season. The USFWS investigates illegal ginseng trafficking associated with the international and interstate trade under the Lacey Act.
“The collaborative efforts of USFWS and the Department of Justice work to deter individuals from violating the laws and regulations designed to protect our natural ginseng resources, and from engaging in these types of illegal practices that threaten this resource. We will pursue any companies or persons who engage in similar unlawful conduct,” said J. Douglas Overbey, United States Attorney for the Eastern District of Tennessee.
“Breaking up international and domestic smuggling rings that specifically exploit native plants and animals is a very important part of the U.S. Fish and Wildlife Service Office of law Enforcement’s work,” said FWS Acting Special Agent in Charge Stephen Clark.
This plea is the result of “Operation Green Gold,” a multi-jurisdiction investigation conducted by the U.S. Fish and Wildlife Service (USFWS) into the illegal harvesting, trafficking, and smuggling of American Ginseng.
The USFWS conducted the investigation in this case. The United States is represented in Court by Assistant United States Attorney Matthew T. Morris and Environmental Crimes Section Senior Trial Attorney Todd Gleason.
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Former Rusk County Employee Pleads Guilty to Fraud Scheme & Identity TheftRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today that Sandra Stiner, 65, Ladysmith, Wisconsin, pleaded guilty to wire fraud, aggravated identity theft and criminal asset forfeiture.
As part of the plea agreement with the United States, Stiner agreed to waive her right to be charged by indictment by a grand jury. In these circumstances, federal charges are entered by way of an Information filed with the Court.
Stiner worked at the Rusk County Health and Human Services Department (HHS) for 42 years before retiring in January 2019. While working for HHS, Stiner misappropriated $702,351 during a nine-year time span from June 2010 to January 2019, by creating and submitting fictitious invoices allegedly from a home-based therapy company (R.Y.P.) for nonexistent intensive in-home autism services to two children.
Stiner used, without lawful authority, a means of identification of real people and real entities in an effort to create documentation that appeared legitimate and provided cover to support her fraud scheme, including taking the name and taxpayer identification number of R.Y.P., and the name of its founder, and misusing them to create a nominee bank account, nominee email account, and fictitious invoices.
At today’s plea hearing, Stiner admitted that she forged the signature of R.Y.P’s founder on various documents and IRS forms to make these documents appear legitimate to Rusk County. Stiner also admitted that she took the name of a CPA firm in LaCrosse, Wisconsin, and misused it to create a fictitious letter and financial statements for R.Y.P. Stiner told Judge Conley that she created a nominee bank account on June 21, 2010 at Bank of America using the name of R.Y.P. and forged the signature of the founder on the R.Y.P. direct deposit authorization form to make sure the payments came to Stiner and not the real owner of R.Y.P. Based on these fictitious invoices, Rusk County paid $702,351 to Stiner’s nominee bank account over a nine-year period.
Stiner admitted at today’s hearing that she spent the misappropriated funds on various personal expenditures, including $295,000 in credit card payments, $200,000 in cash advances, $20,000 in iTunes charges for a gaming app called Big Fish Casino, $50,000 in retail shopping expenses, over $41,000 on her house mortgage, and over $18,000 in automobile loan payments.
The maximum penalty for the wire fraud charge is 20 years in federal prison. The penalty for the aggravated identity theft charge is a mandatory two years, which would be served consecutive to any prison term imposed on the wire fraud charge.
In the plea agreement, Stiner agreed to a criminal asset forfeiture judgment of $702,351, and potential forfeiture of substitute assets, including real estate, vehicles, boats, a camper, her pension, and household contents.
Sentencing for Stiner is set for November 4, 2020, at 1:00 p.m., before U.S. District Judge William M. Conley.
The charges against Stiner are the result of an investigation conducted by the Rusk County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Daniel J. Graber is handling the prosecution.
Former NFL Player Sentenced to 14 Years in Federal Prison for Conspiracy to Distribute 1,000 Kilograms of Marijuana and Money LaunderingRead the Press Release
WILMINGTON, N.C. – A Raleigh man was sentenced today to 168 months in prison for conspiring with others to distribute and possess with the intent to distribute over 1,000 kilograms of marijuana and engaging in a money laundering conspiracy. He was also ordered by the court to forfeit $2,708,000 in laundered drug proceeds.
According to court documents, Richard Dwight Alston, 39, engaged in a multi-year and cross-country conspiracy to traffic in large amounts of marijuana and to distribute that high-grade marijuana to associates in Raleigh. After several years of investigation by the Drug Enforcement Administration and Internal Revenue Service, on November 2, 2017, federal agents executed a search warrant for apartments that were suspected to be stash locations for Alston’s large-scale marijuana organization. During the search, agents located over 40 pounds of marijuana and $371,670.00 in United States currency. Agents were then able to arrange for the delivery of Alston’s next drug shipment on November 6, 2017. On that date, agents arrested two individuals who were responsible for transporting the marijuana intended for Alston and others. A search of their vehicle revealed 7 large duffel bags containing almost 200 kilograms of marijuana, along with $67,814 in United States currency. A financial investigation conducted by the IRS revealed that Alston had laundered drug proceeds of over $2.7 million through a business bank account over a period of several years.
The investigation was part of OCDETF Operation Pick Six. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II. The Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS) led the investigation, with assistance from the Raleigh Police Department. Assistant U.S. Attorney Laura S. Howard prosecuted the case.
A copy of this press release is located on our website. 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. 5:20-CR-00005-M.
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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.
Former Houston Independent School District Employee Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – A former employee of the Houston Independent School District has agreed to plead guilty in connection with her involvement in a scheme to use bribery and fraud to facilitate cheating on the ACT and SAT exams.
Niki D. Williams, 46, of Houston, Texas, will plead guilty to one count of conspiracy to commit wire fraud and mail fraud and honest services wire fraud and mail fraud. A plea hearing has not yet been scheduled. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine, forfeiture in the amount of $20,000 and restitution.
According to the superseding indictment, Williams administered the SAT and ACT exams at the public high school in Houston where she worked. In exchange for bribe payments directed to her by co-conspirators William “Rick” Singer and Martin Fox, and in violation of her duty of honest services to the ACT and the College Board, Williams allowed another co-conspirator, Mark Riddell, to secretly take ACT and SAT tests in place of the children of Singer’s clients or to replace their exam answers with his own corrected answers. Williams then returned the falsified exams to the ACT and College Board for scoring.
Singer, Riddell and Fox previously pleaded guilty and are cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Lincoln Man of Sex Trafficking and Child ExploitationRead the Press Release
United States Attorney Joe Kelly announced that on August 12, 2020, after a three-day trial, a federal jury convicted Devin L. Ashford, 33, of Lincoln, Nebraska, of Sex Trafficking of a Minor; Sex Trafficking by Force, Fraud, or Coercion; Production of Child Pornography; and Interstate Transportation for Prostitution. The jury was the first in federal court in Lincoln since jury trials were suspended due to COVID-19. Chief United States District Judge John M. Gerrard presided over the trial and accepted the jury’s verdict before setting Ashford’s sentencing hearing for November 13, 2020, at 10:30 a.m. At sentencing, Ashford faces mandatory minimum sentences of 15 years on three of the counts and a statutory maximum of life on one count.
Numerous victims testified at trial that Ashford beat, starved, and pushed cocaine on them to get them to provide sexual services. Ashford recruited minors to engage in commercial sex acts so that he could get the financial proceeds from those acts. The evidence at trial showed that at least three of the minors were children who had either run away from home or were in the foster care system when Ashford targeted them for his trafficking operation. Ashford was also convicted of producing child pornography when he enticed one of his victims to send sexually explicit photos of herself.
United States Attorney Kelly said, “These terrible crimes occur closer to home than we would care to imagine. The jury’s verdict sends a strong message to anyone who exploits others in sex trafficking minors or adults that their actions will not be tolerated and will be fully prosecuted.”
FBI Omaha's Special Agent in Charge, Kristi Johnson, said, “The victims of these crimes are some of the most vulnerable members of our community. FBI Omaha agents work closely with our local, state and federal partners to identify human traffickers. We will continue to disrupt their activity in the areas we serve.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Lincoln Police Department.
Fayetteville Man Sentenced to 57 Months for Gun ChargeRead the Press Release
NEW BERN, N.C. – A Fayetteville man was sentenced yesterday to 57 months in prison for possession of a firearm by a felon in connection with an August 2018 shooting.
According to court documents, Michael Prescott Bobbitt, 41, was charged with one count of felon in possession of a firearm. Bobbitt pled guilty on September 18, 2019.
On August 11, 2018, Bobbitt, who had a prior federal conviction for possession of a firearm by a felon, arrived at a Fayetteville convenience store. As Bobbitt approached the entrance to the store, he engaged in a verbal altercation with several other individuals parked nearby. Bobbitt escalated the altercation when he returned to his vehicle, retrieved a firearm and began to approach the other individuals. The other individuals fired before Bobbitt was able to do so, and Bobbitt was shot several times.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and Fayetteville Police Department (“FPD”) investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00090-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.
Extradited Jamaican National Sentenced in Federal Court for Telemarketing Fraud Targeting Elderly VictimsRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Antonio Thelwell, 30, was sentenced to more than three years in federal prison after pleading guilty to a conspiracy to commit wire fraud, which swindled more than 150 mostly elderly victims out of almost $850,000.
Evidence presented in court established that Thelwell, who is a native of Jamaica, was one of 18 defendants involved in a large telemarketing fraud conspiracy beginning in 2010 which targeted elderly victims. Thelwell and his conspirators would contact elderly individuals and falsely inform them that they had won a sweepstakes, but had to pay the taxes and fees in order to claim their bogus winnings. Through this scam, Thelwell and others were able to persuade victims to wire them significant amounts of money by various means. In order to make the scam appear legitimate, the perpetrators sent letters which appeared to be from government agencies informing victims that their payments had been received. Not only did Thelwell contact victims directly, but he also recruited other individuals to contact victims, receive money from those victims, and wire the illegally obtained funds to him in Jamaica. Thelwell was directly involved in scamming victims out of over $124,000, and the conspiracy as a whole swindled 157 victims out of over $839,000.
The successful prosecution of Thelwell in the United States required that he be extradited from his native country of Jamaica. His extradition to the United States was made possible through the efforts of the case agents, the Department of Justice’s Office of International Affairs, and Jamaican authorities.
Chief United States District Judge R. Bryan Harwell sentenced Thelwell to 38 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was the result of an investigation by the United States Postal Inspection Service and Homeland Security Investigations. Assistant United States Attorney Brad Parham of the Florence office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Eight Las Vegas Residents Arrested for Drug Trafficking and Firearms-Related OffensesRead the Press Release
LAS VEGAS, Nev. — Eight defendants, who are all Las Vegas residents indicted on June 30, 2020, have been arrested in connection with firearms and drug trafficking (in addition to other firearms offenses) as part of “Operation Nora,” announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).
“Operation Nora exemplifies the kind of impactful multi-defendant prosecutions that play a critical role in our office’s strategy to reduce violent crime in our communities,” said U.S. Attorney Trutanich. “We appreciate the opportunity to work with ATF and the Las Vegas Metropolitan Police Department to take drugs, ammo, and over two dozen guns off the streets through one investigation.”
“ATF is on the frontline in the fight against violent crime, particularly through the disruption and dismantling of firearms trafficking operations which are a large source and supply of crime guns to offenders,” said Special Agent in Charge Gorman. “Throughout Operation Nora, ATF worked side by side with our partners to fulfill ATF’s mission of protecting the public by investigating the criminal misuse and trafficking of firearms in Las Vegas. The trafficking of firearms to violent criminals, gangs and drug trafficking organizations presents a grave threat to public safety, and ATF remains dedicated to making this city a safer place.”
“This is a major win for law enforcement,” said Sheriff Joe Lombardo. “Metro will continue working hard to stop criminals from bringing drugs and violence into our neighborhoods. Because of multi-agency partnerships like this one, we are making it harder for violent criminals to do business.”
Operation Nora is a joint investigation by the ATF and the LVMPD, focusing on the Sherwood Forest and Naked City areas in Las Vegas. During the operation, ATF seized 30 guns, ammunition, over 50 grams of heroin, 117 grams of methamphetamine, 492 grams of cocaine, and 446 grams of crack cocaine.
According to the allegations in the indictments, the defendants sold a total of nearly 2.5 pounds of heroin, methamphetamine, cocaine, and crack cocaine. They also sold firearms without a license. Further, four of the defendants — Alexander Fitwi, Durrell Melchor, Prentice Moreland, and Antione Thomas — unlawfully possessed firearms, including numerous semi-automatic handguns and rifles, despite prior felony convictions that prohibited them from owning or possessing guns.
Below is a list of the arrested defendants and the criminal charges they face:
- Alexander Fitwi, 32, of Las Vegas, is charged with two counts of felon in possession of a firearm. As a result, Fitwi faces an aggregate statutory maximum penalty of 20 years imprisonment and a fine of not more than $500,000.
- Durrell Melchor, 33, of Nevada, is charged with one count of dealing in firearms without a license, two counts of felon in possession of a firearm, one count of conspiracy to distribute a controlled substance, and one count of distribution of a controlled substance. As a result, Melchor faces an aggregate statutory maximum penalty of 45 years imprisonment and a fine of not more than $1,750,000.
- Prentice Moreland, 55, of Las Vegas, is charged with two counts of distribution of a controlled substance-cocaine, four counts of distribution of a controlled substance-cocaine base, and one count of felon in possession of a firearm. As a result, Moreland faces an aggregate statutory maximum penalty of 210 years imprisonment and a fine of not more than $22,250,000.
- Ozzie Morrison, 33, of Las Vegas, is charged with one count of dealing in firearms without a license and two counts of distribution of a controlled substance-cocaine. As a result, Morrison faces a statutory maximum penalty of 45 years imprisonment and a fine of not more than $2,250,000.
- Antione Thomas, 47, of Las Vegas, is charged with one count of dealing in firearms without a license, four counts of felon in possession of a firearm, and one count of distribution of a controlled substance-crack cocaine. As a result, Thomas faces an aggregate statutory maximum penalty of 85 years imprisonment and a fine of not more than $6,250,000, with an aggregate statutory minimum penalty of five years imprisonment.
- Jose Wade, 37, of North Las Vegas, is charged with three counts of distribution of a controlled substance-cocaine. As a result, Wade faces an aggregate statutory maximum penalty of 60 years imprisonment and a fine of not more than $3,000,000.
- Brenton Williams, 38, of Nevada, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance-cocaine. As a result, Williams faces an aggregate statutory maximum penalty of 20 years imprisonment and a fine of not more than $1,000,000.
- Jessica Williams 28, of Las Vegas, is charged with one count of distribution of a controlled substance-methamphetamine and three counts of distribution of a controlled substance-crack cocaine. As a result, Williams faces an aggregate statutory maximum penalty of life imprisonment and a fine of not more than $17,000,000, with an aggregate statutory minimum penalty of 15 years imprisonment.
The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
An indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the ATF and LVMPD. Assistant U.S. Attorneys Allison Reese, Brett Ruff, and Melanee Smith are prosecuting the cases.
Operation Nora was conducted as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Dunmore Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 11, 2020, a federal grand jury indicted Robert Andrewsh, Jr., age 25, of Dunmore, Pennsylvania, with methamphetamine trafficking and firearms offenses.
According to United States Attorney David J. Freed, the indictment charges Andrewsh with conspiring to distribute over 50 grams of methamphetamine in November and December 2019, with distributing and possessing with intent to distribute methamphetamine on three different occasions, and with possessing a firearm in furtherance of his narcotics trafficking.
The matter was investigated by the Drug Enforcement Administration, the Scranton Police Department, and the City of Carbondale Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The penalties under federal law for the most serious drug offense are a minimum 10 years and maximum life of imprisonment, and for the firearms offense a minimum five years and maximum life of imprisonment, to run consecutive to any other sentenced imposed, and a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Dominican National Admits to Leading Heroin and Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE – A Dominican national living in Providence admitted to a federal court judge today that he led a conspiracy in Rhode Island in 2014 to import multiple kilograms of heroin and cocaine from California, and that he conspired with individuals working at his direction to store, process, and package the drugs at an apartment in West Warwick he rented and used as a stash house.
On at least three occasions, Rhode Island DEA agents intercepted packages containing one or more kilograms of heroin or cocaine shipped from California, earmarked for delivery to addresses in Warwick, Pawtucket and Providence. Rafael Lara Sanquintin, 37, of Providence, admitted that he directed others to retrieve the packages, and that members of the conspiracy he recruited worked at his direction at the stash house to prepare, package, and deliver the drugs to others.
On at least two occasions DEA agents stopped vehicles after leaving the stash house containing individuals working at the direction of Sanquintin. On those occasions, DEA agents seized 653 grams and 1,114 grams of heroin.
Sanquintin was indicted in this matter on November 22, 2016. He was arrested by Customs and Border Patrol agents on December 12, 2016, as he attempted to disembark from a cruise ship in West Palm Beach, FL, and illegally reenter the United States from his native Dominican Republic. He was convicted in the United States District Court in the Southern District of Florida on a charge of attempted illegal reentry after deportation by an aggravated felon and sentenced in March 2017 to 14 months of incarceration.
Appearing today before U.S. District Court Judge William E. Smith, Sanquintin admitted that he conspired with others to possess and distribute at least 10 kilograms of heroin and 5 kilograms of cocaine, pleading guilty to conspiracy to possess with intent to distribute 100 grams or more of heroin and conspiracy to possess with intent to distribute 500 grams or more of cocaine, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
Sanquintin, detained in federal custody since completing his term of incarceration for illegally reentering the United States, is scheduled to be sentenced on November 12, 2020.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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Defendant Pleads Guilty in Multi-Million Dollar Prize Notification Scam Affecting Elderly VictimsRead the Press Release
A Las Vegas area resident charged with perpetrating a prize-notification scheme that bilked victims out of more than $10 million pleaded guilty today, the Department of Justice announced.
Andrea Burrow, 50, pleaded guilty to conspiracy to commit mail fraud based on her participation in a scheme that preyed upon hundreds of thousands of victims, many of whom were elderly and vulnerable, with fraudulent prize notices. The notices led victims to believe that they could claim a large cash prize if they paid a small fee. This was false; victims who paid the fees did not receive anything of value.
Burrow is the fourth defendant to plead guilty in connection with the scheme. Three other individuals – Patti Kern, Edgar Del Rio, and Sean O’Connor – pleaded guilty to conspiracy to commit mail fraud in 2019. Following these guilty pleas, Burrow was indicted in November 2019 along with five others: Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, and Jose Luis Mendez. The trial of the remaining five defendants is currently scheduled for Sept. 28, 2020.
“The defendant and her co-conspirators exploited the elderly and vulnerable by bombarding them repeatedly with false promises of wealth,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “Today’s guilty plea demonstrates the Department’s continuing commitment to bring to justice those who prey upon the elderly.”
The scheme operated from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Department of Justice obtained a court order shutting down the fraudulent mail operation. The indictment and other court filings alleged that Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, Jose Luis Mendez, and Edgar Del Rio worked at the printing and mailing businesses that sent the fraudulent mail, and each shared the profits from the fraudulent prize notices with Patti Kern, who helped manage the scheme. Sean O’ Connor provided laser printing and data processing services to the scheme. Burrow opened victim return mail, sorted cash and other payments, and entered data from the victims’ responses into a database that the scheme used to target past victims with more fraudulent mail, according to the indictment.
“Postal Inspectors are dedicated to the pursuit of protecting those who can’t protect themselves. This guilty plea should be a warning to all individuals who use promises of large cash prizes to build their own wealth the U.S. Postal Inspection Service will find you and you will be held accountable,” said Inspector in Charge Delany De Leon-Colon, Criminal Investigations Group
Today’s plea took place before U.S. District Judge Gloria Navarro. When sentenced, Burrow faces a statutory maximum sentence of up to 20 years in prison.
The U.S. Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. Defendants should be presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorneys’ District of Nevada Office, visit their website at www.justice.gov/usao-nv.
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Deatsville Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Montgomery, Alabama – On Monday, August 10, 2020, Hunter Lavon Brown, a 26-year-old from Deatsville, Alabama, pleaded guilty to possession of child pornography, announced United States Attorney Louis V. Franklin, Sr. and FBI Special Agent in Charges James Jewell.
According to court documents, on January 10, 2019, the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip from Google that there was possible child pornography materials being uploaded to a Google Photos account. FBI agents reviewed the information and identified Brown’s address as being involved in the uploads and discovered that the Google account was registered to Brown with an email address associated with him. On August 22, 2019, agents executed a search warrant at Brown’s residence and seized a number of electronic devices. Brown was present at the time of the search and admitted to having child pornography images on the devices being seized. The agents reviewed the materials they found and identified suspected child pornography images, which was later confirmed by NCMEC. Further forensic analysis of the electronic devices revealed that Brown knowingly searched and downloaded child pornography, which he admitted during his plea hearing. He also admitted that some of the child porn images contained beastiality.
Brown was arrested on August 22, 2019 after a complaint was issued against him on child pornography charges and he has been in custody since that date. He was indicted by a grand jury on September 11, 2019. His sentencing hearing will be scheduled in the next few months and he is facing up to 20 years in prison and a fine up to $250,000.00. He will also be subject to a period of supervised release from five years to life.
“Crimes against children are despicable and, despite the ongoing national health crisis, they are on the rise,” stated U.S. Attorney Franklin. “Child pornography is a particularly disturbing crime that has a continuing and long lasting impact on its victims, re-injuring them each time their images are downloaded and shared. My office places a priority on prosecuting these cases and will continue to work with law enforcement to identify those that exploit our children.”
"The FBI will continue to use every resource available to locate and arrest suspects who possess and seek photos of children being victimized,” said SAC Jewell. “Child pornography leaves behind a trail of young people whose innocence was taken from them and we will work tirelessly to bring justice to these victims."
The Federal Bureau of Investigation (FBI) investigated this case, with assistance from the National Center for Missing and Exploited Children (NCMEC). Assistant United States Attorney Russell Duraski is prosecuting the case.
Dayton woman arrested for impersonating elderly victim and stealing his pension benefitsRead the Press Release
DAYTON – Melody Hudson, 38, of Dayton, appeared in U.S. District Court today to face charges in an indictment alleging that she stole the identity of a 72-year old retired man and redirected his $919 monthly pension benefits to a bank account she controlled.
The indictment alleges that Hudson used the victim’s personal information to divert his pension benefits from his bank account into an account she controlled and withdrew money for her personal use. The alleged crimes took place between April and November 2019. On one occasion, she allegedly called the agency that was paying the pension, identified herself as a relative of the victim, and had someone impersonate the victim on the phone call with the agency.
The indictment charges Hudson with one count of bank fraud, which is punishable by up to 30 years in prison, one count of aggravated identity theft that carries a mandatory two-year prison term which must be served consecutive to any other prison time, and one count of use of another person’s Social Security number, a crime punishable by up to five years in prison.
Michigan State Police arrested Hudson in Lansing, Mich. on July 30. The U.S. Marshals Service transported her to Dayton to face the charges against her.
David M. DeVillers, United States Attorney for the Southern District of Ohio, along with the Social Security Administration, Office of Inspector General and the Pension Benefit Guaranty Corporation, Office of Inspector General announced the indictment unsealed today following Hudson’s initial appearance before U.S. Magistrate Judge Michael J. Newman.
Hudson is scheduled to appear in court again tomorrow for a detention hearing.
U.S. Attorney DeVillers also gratefully acknowledged the assistance of the U.S. Marshals Service and the Michigan State Police in apprehending Hudson. Special Assistant U.S. Attorney Timothy Landry is representing the United States in this case.
The case is being prosecuted as part of the Justice Department’s Elder Fraud initiative. The Department launched a National Elder Fraud Hotline in March to provide services to seniors who may be victims of financial fraud. The Hotline’s toll free number is 833-FRAUD-11. Statements contained in indictments are allegations only. Defendants should be presumed innocent unless convicted in a court of law.
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Connecticut Man Charged with Firearm TraffickingRead the Press Release
BOSTON – A Connecticut man has been charged in federal court in Boston with firearm trafficking.
Brian McCarthy, 33, of Bridgeport, Conn., was charged with one count of dealing firearms without a federal license. McCarthy will make an initial appearance in federal court in Boston at a later date. He has been in state custody since his arrest on July 31, 2020.
According to the criminal complaint, between June 17 and July 31, 2020, McCarthy travelled to Massachusetts and sold an undercover officer two Glock-style Privately Made Firearms (PMF) he had personally fabricated. PMFs are firearms that are not made by firearm manufacturers; instead, firearm manufactures sell individual buyers firearm parts, and the buyer uses various firearm drilling tools to construct and assemble the parts into a functional firearm. PMFs are also known as “ghost guns” because they are not serialized, and are thus, untraceable.
Following the July 31 sale, McCarthy was taken into custody. The search of his apartment resulted in the seizure of two additional Glock-style PMFs, one AR15/M4-type rifle upper receiver, accessories for AR15/M4 rifles, multiple semi-automatic magazines, approximately 250 rounds of ammunition, and various firearm construction and assembly tools.
The charge of dealing firearms without a federal license provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Bristol County District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Colombian National Pleads Guilty to Cocaine Trafficking and Illegal ReentryRead the Press Release
BOSTON – A Colombian national pleaded guilty today in federal court in Boston to cocaine trafficking and illegal reentry charges.
Ricardo Lopera-Arteaga, 58, pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute 500 grams or more of cocaine and one count of unlawful reentry of a deported alien. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Dec. 10, 2020. Lopera-Arteaga has been in federal custody since his arrest on Oct. 9, 2019 with co-defendant Diego Sanchez, 34, who pleaded guilty to similar charges on May 15, 2020.
Sanchez and Lopera-Arteaga conspired together to sell one kilogram of cocaine to a cooperating witness in East Boston in October 2019. Sanchez also engaged in two sales of cocaine to the same cooperating witness on Sept. 10 and 27, 2019 in East Boston. On Oct. 9, 2019, law enforcement agents observed both men meet and walk together towards a spot arranged for the drug transaction. Agents arrested both men a short time later and seized one kilogram of cocaine from Lopera-Arteaga.
The charges of conspiracy to distribute and possession with intent to distribute more than 500 grams of cocaine provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of unlawful reentry of a deported alien carries a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Lopera-Arteaga will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. 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. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Chief Executive Officer of Louisiana Compounding Pharmacy Used to Defraud State Health Benefits Programs Pleads GuiltyRead the Press Release
CAMDEN, N.J. – The chief executive officer of Central Rexall Drugs Inc., a Louisiana pharmacy used by numerous individuals to defraud New Jersey health benefits programs and other insurers out of more than $50 million, has admitted her guilt, U.S. Attorney Craig Carpenito announced.
Hayley Taff, 37, of Hammond, Louisiana, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging her with one count of conspiracy to commit healthcare fraud.
According to documents filed in this case and statements made in court:
Central Rexall was a retail pharmacy in Louisiana that prepared compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Hayley Taff was Central Rexall’s chief executive officer and 22 percent owner. In 2013, Taff entered into an agreement with two individuals, identified as Individual 1 and Individual 2, to expand the compounding business, with Individual 1 and 2’s company receiving 90 percent of the profits.
Taff and her conspirators learned that certain insurance plans administered by an entity referred to in the information as the “Pharmacy Benefits Administrator” would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, antifungal, and libido creams, as well as vitamin combinations. The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had this insurance coverage.
Taff’s conspirators designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients. To determine which ingredients and combinations resulted in the high insurance reimbursement, Taff’s conspirators sent the Pharmacy Benefits Administrator false prescription claims to test out different combinations of ingredients, but the prescriptions did not exist. By trial and error use of these false claims, Taff’s conspirators designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients. At Taff’s direction, Central Rexall sent compounded medications to patients based solely on financial gain.
When the Pharmacy Benefits Administrator stopped covering one combination, Central Rexall would develop a compounded medication with a different combination of ingredients based solely on the insurance reimbursement and without considering the medical necessity or effectiveness of the new combination. Central Rexall then would send that new compounded medication to patients, even though the new combination of ingredients was not medically equivalent to the combination originally prescribed for the patients and without telling the patients or their doctor about the differences.
Taff admitted that during the conspiracy, Central Rexall stopped being concerned about the health of its compounded medication patients or the medical necessity of its compounded medications. Instead, she admitted, Central Rexall devoted itself solely to making money.
At Taff’s direction, Central Rexall also stopped requiring that patients make copayments in order to receive medications, even though Central Rexall told the Pharmacy Benefits Administrator that it was collecting copayments. Taff admitted that Central Rexall continued shipping medications to individuals who had not paid their copayments because Central Rexall was making so much money on its medications.
Taff and her conspirators caused numerous fraudulent insurance claims for compounded medications that were not medically necessary. The Pharmacy Benefits Administrator paid Central Rexall over $50 million for compounded medications shipped to New Jersey. Taff received $1,553,616 from Central Rexall during the conspiracy.
Taff faces a maximum of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of the plea agreement, Taff must pay restitution of $51,670,251 and forfeiture of $1,553,616. Sentencing for is scheduled for Dec. 1, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Joe Denahan in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden and Assistant U.S. Attorney Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit.
Defense counsel: J. Garrison Jordan Esq., Hammond, Louisiana
Chatham Man Sentenced to 60 Months on Drug and Firearm ConvictionsRead the Press Release
ALBANY, NEW YORK – Carlos Rivera, age 43, of Chatham, New York, was sentenced today to 60 months in prison for possession of a firearm by a felon and possession with the intent to distribute cocaine.
The announcement was made by United States Attorney Grant C. Jaquith; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; and Columbia County Sheriff David P. Bartlett.
Rivera was also ordered to serve a period of 6 years of supervised release following his term of incarceration, and to forfeit to the government $7,000 in proceeds from his drug trafficking activity, as well as a Mossberg 12 gauge shotgun.
Rivera admitted that in September 2018, he possessed approximately 479.5 grams of cocaine, including 79.5 grams of cocaine in his bathroom, and 400 grams of cocaine in his garage hidden in plastic containers that the he had magnetically attached to his car; a scale; and drug packaging material. In Rivera’s bedroom, officers found a Mossberg 535 12 gauge shotgun; 12 gauge ammunition on the floor near the shotgun; additional ammunition in his closet; and $5,000 in his dresser.
This case was investigated by the DEA and the Columbia County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Troy Anderson.
Canadian National Sentenced for Securities FraudRead the Press Release
BOSTON – A Canadian national who resides in Los Angeles was sentenced today in federal court in Boston for his role in a massive global securities fraud scheme that sought to generate $15 million in fraudulent proceeds.
Morrie Tobin, 57, who resides in Los Angeles, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release and ordered to pay a fine of $100,000 and forfeiture of $4 million. In February 2019, Tobin pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.
From 2013 to 2018, Tobin and co-conspirators Milan Patel, Matthew Ledinva and Roger Knox conspired to commit securities fraud by disguising their ownership and control of various microcap securities, and employing paid promotional campaigns and manipulative trading techniques to artificially inflate the price and trading volume of those stocks so that Tobin and others could secretly sell their shares of those stocks at a substantial profit.
Tobin and others acquired the majority of the shares of GS Valet, a public shell company with minimal assets and operations, and then renamed it International Metals Streaming Corporation (IMST). Tobin, Patel and Ledinva then distributed the shares of IMST among four offshore entities registered in the names of various parties. From December 2016 to June 2017, Tobin and the co-conspirators orchestrated a reverse merger of IMST into Environmental Packing Technology (EPTI), which became a publically-traded company, and then caused 10.5 million shares held in the offshore entities to be transferred to Knox’s asset management firm and a separate brokerage firm. During this time, Tobin and the co-conspirators raised $2.9 million in private placement of shares of EPTI, and used a portion of this money to pay a third-party stock promoter to artificially promote the shares of EPTI. From June 9 to June 27, 2017 – when the Securities and Exchange Commission halted trading in EPTI shares – the co-conspirators directed the sale of EPTI shares held by the offshore entities, thereby generating proceeds of approximately $1,519,182. At sentencing, the Court found that Tobin and his co-conspirators intended to generate $15 million in proceeds based on the number of shares under their control.
Patel pleaded guilty in February 2019 and is scheduled to be sentenced on Thursday, Aug. 13, 2020. Ledinva was sentenced in June 2020 to 30 months of probation and ordered to pay a fine of $50,000. Knox previously pleaded guilty and is currently scheduled to be sentenced on Sept. 30, 2020.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Boston regional office of the SEC provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen and James R. Drabick of Lelling’s Securities, Financial and Cyber Fraud Unit are prosecuting the case.
Boulder Woman Sentenced for Making A False Statement When Buying A FirearmRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Cassidy Morgan Ahearn, age 19, of Boulder County, Colorado, was sentenced today to serve two years of probation, which includes 12 months of home detention, for making a false statement during the acquisition of a firearm. She appeared at the hearing remotely on bond. The Denver Field Division of the ATF joined in today’s announcement.
According to the stipulated facts in Ahearn’s plea agreement, on May 8, 2019, the defendant purchased a 5.56 caliber rifle from EZ Pawn in Northglenn, Colorado, which is a federally licensed firearms dealer. On the date of the purchase, Ahearn signed a Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives Form, where she represented that she was the actual buyer of the firearm. In reality, the defendant bought the firearm for and at the request of a friend. The friend went inside the store with her. The defendant gave the firearm to the friend about a week after purchasing it. The firearm was later found at the scene of a homicide, although it was not used to commit the homicide.
“My office, working closely with the ATF, has an important responsibility to ensure that firearms are bought and possessed legally,” said U.S. Attorney Jason Dunn. “Lying on a form to purchase a firearm can result in a felony conviction and have other serious consequences, including jail time and loss of the right to possess a firearm in the future.”
“Lying on an ATF form in order to purchase a firearm is not just a paper crime. It arms individuals who are prohibited from possessing firearms and puts guns in the hands of criminals,” said ATF Special Agent in Charge David S. Booth. “ATF is committed to investigating federal firearms crimes like this one and we are pleased to assist the United States Attorney’s office in this successful prosecution.”
The sentence was pronounced by U.S. District Court Judge Christine M. Arguello today, August 12, 2020. Ahearn was charged by indictment on August 7, 2019, and pleaded guilty on January 15, 2020. The Denver Field Office of the ATF conducted this investigation. The defendant was prosecuted by Assistant U.S. Attorney Rajiv Mohan.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-355.
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.
Bergen County Man Admits Using Online Web Forums to Engage in CyberstalkingRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted using Facebook and other online web forums to cyberstalk victims, U.S. Attorney Craig Carpenito announced.
Rino Diamante, 25, of Bergenfield, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with one count of cyberstalking.
According to documents filed in this case and statements made in court:
Diamante admitted that from January 2016 through August 2019 he engaged in continued online harassment of known and unknown adult victims, including Victims 1-23, by posting semi-nude or nude pictures purporting to be the victims on online web forums such as 4Chan and Volafile. Diamante also admitted to contacting the victims, their friends and their family members to direct those individuals to the online web forums that contained the purported nude or semi-nude photographs of the victims.
The charge to which Diamante pleaded guilty carries a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 16, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Criminal Division in Newark.
Auto Body Shop Owner Charged with Tax FraudRead the Press Release
BOSTON – The owner of Everett and Worcester auto body shops was charged today with a payroll tax scheme resulting in a $292,231 tax loss.
Adam Haddad, 43, of Shrewsbury, was charged and has agreed to plead guilty to three counts of aiding the preparation of false tax returns.
As alleged in the Information, for tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.” In doing so, Haddad caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages he had paid his employees as well as the employment taxes due to the IRS. In total, Haddad caused a loss to the IRS of at least $292,231.
The charging statue provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.
Atlanta drug dealer charged with possessing 170 kilograms of heroin and 36 guns in two metro residencesRead the Press Release
ATLANTA – Antonio DaShawn Daniels has been indicted on federal charges related to possession with the intent to distribute heroin, cocaine, and marijuana, and possession of a firearm in furtherance of drug trafficking.
“The quantity of drugs, money, and firearms allegedly controlled by Daniels highlights the scale of heroin and cocaine trafficked into this community by local drug dealers with high-level ties to international drug trafficking organizations,” said U.S. Attorney Byung J. “BJay” Pak. “Daniels allegedly used these ties to flood this district with drugs and reap the financial benefits. We will not tolerate the destruction of lives through the scourge of the drug trade.”
“The arrest of Daniels, along with the seizure of hundreds of kilograms of drugs, dozens of guns, and more than a million dollars in cash, represents a significant victory for DEA, our law enforcement partners, and – most of all – for the people of Atlanta,” said Acting Administrator Timothy J. Shea. “This case illustrates the devastating impact that violence fueled by drug trafficking can have on our communities. Drug traffickers, and the organizations they work with, use fear and violence to enrich themselves with little regard for the communities they destroy in the process. The DEA stands resolute with our law enforcement partners to protect the health, safety, and security of the American people.”
“Our community and our citizens are safer today because of the removal of a massive amount of drugs, weapons and cash that were destined to destroy lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI values our partnerships with federal, state and local law enforcement agencies. These results would not be possible without them.”
“This poly-drug trafficker brazenly continued his drug trafficking activities despite having served time in federal prison for drug distribution. His arrest removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to follow the same perilous path. DEA, its law enforcement partners and the U.S. Attorney’s Office will relentlessly pursue and ultimately prosecute criminals like Daniels,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division.
According to U.S. Attorney Pak, the charges, and other information presented in court: In October 2019, federal agents uncovered ledgers from a Mexico-based drug trafficking organization showing that Daniels received just over 1,000 kilograms of cocaine between August 2018 and October 2019. The ledgers reflected that Daniels returned more than $31 million in drug proceeds to the organization that were eventually transported to Mexico.
During the investigation, federal agents identified multiple apartments and homes in the metro-Atlanta area that Daniels allegedly used to prepare and distribute drugs. On July 27, 2020, agents executed federal search warrants at those locations, which resulted in Daniels’ arrest and the seizure of a large amount of drugs, money, and weapons.
- Inside a studio apartment in Atlanta, agents found approximately 28 kilograms of heroin, six kilograms of cocaine, eight kilograms of marijuana, and more than $1 million in cash. There were 41 firearms stashed throughout the apartment, along with kilo-presses, scales, strainers with white powder residue, and a money counter.
- Inside a home in Atlanta, agents found 142 kilograms of heroin and four kilograms of cocaine.
In total, agents seized approximately 170 kilograms of heroin, 10 kilograms of cocaine, eight kilograms of marijuana, more than $1 million in cash, and 41 firearms.
Antonio DaShawn Daniels, a/k/a Freckleface Shawn, 46, of Atlanta, Georgia was indicted on August 11, 2020. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Doraville Police Department.
Assistant U.S. Attorney Nicholas Hartigan is prosecuting the case.
This case is presented as a part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
Arizona Man Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Ron Parsons announced that an Anthem, Arizona, man has been indicted by a federal grand jury for Failure to Pay Child Support.
Jacob A. Tate, age 44, was indicted on June 6, 2018. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 7, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 2 years in federal prison and/or a $250,000 fine, 1 year of supervised release, and up to $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that from October 1, 2012, through August 7, 2020; from March 1, 2015, through August 7, 2020; from February 1, 2014, through August 7, 2020; from June 1, 2015, through August 7, 2020; and from July 1, 2014, through August 7, 2020, Tate willfully and unlawfully failed to pay past due child support obligations to his 5 children.
The charges are merely accusations and Tate is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General. Assistant U.S. Attorney Jennifer D. Mammenga is prosecuting the case.
Tate was released on bond pending trial, which has been set for October 13, 2020.
Accountant Pleads Guilty to Tax Evasion and Obstruction Offenses; Tax Loss Exceeds $1 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that LOUIS DEMAIO, 69, of Guilford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Janet Bond Arterton to tax evasion and obstruction offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, DeMaio was employed as an accountant in East Haven and, from approximately 2010 to 2018, also operated Almatt LLC, a temporary employment agency that provided day laborers to construction companies. Although DeMaio listed an individual (“Individual A”) on paper as the owner of Almatt, Almatt was effectively owned and run by DeMaio.
As part of Almatt’s operating procedures, Almatt invoiced construction companies for the cost of labor provided and, from the payments received from the companies, paid the employees for services rendered. Almatt and DeMaio then provided the employees with W-2 forms reflecting that Almatt had undertaken required federal tax withholdings. However, Almatt and DeMaio failed to withhold taxes and subsequently failed to pay over those withholdings to the IRS. Almatt also never filed yearly income tax returns or quarterly 941 forms reflecting federal withholding and payroll taxes owed.
In addition, DeMaio issued hundreds of thousands of dollars of checks from Almatt made out to himself and to family members who did not work at the business. From 2010 through 2018, DeMaio and his family received more than $2.5 million from Almatt. DeMaio failed to report any of these distributions on his federal personal income tax returns.
In 2015, the IRS initiated a civil examination of Almatt, and then expanded the examination to evaluate the completeness of DeMaio’s personal income tax returns. When the IRS confronted DeMaio about his failure to report income paid to him by Almatt, DeMaio fabricated a story that a substantial portion of the payments he received from Almatt were loan repayments from Individual A. DeMaio also provided an IRS revenue agent with a false notarized document that DeMaio had created to support his story. When the civil investigation was referred to IRS Criminal Investigation, DeMaio confirmed the fake loan repayment story in an interview with IRS special agents.
The tax loss as a result of DeMaio’s criminal conduct is $1,132,398. DeMaio has agreed to pay full restitution, as well as interest and penalties.
DeMaio pleaded guilty to one count of tax evasion, which carries a maximum term of imprisonment of five years, and one count of obstructing and impeding the due administration of Internal Revenue laws, which carries a maximum term of imprisonment of three years. Judge Arterton scheduled sentencing for November 3, 2020.
DeMaio is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Tuesday 11 August 2020
Wheeling man sentenced for his role in a drug distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Charles Cesar Ansley, Jr., of Wheeling, was sentenced today to 12 months and one day of incarceration for drug distribution in the Wheeling area, U.S. Attorney Bill Powell announced.
Ansley, also known as “Mike,” pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location” in May 2020. Ansley, age 40, admitted to selling methamphetamine near Luau Manor in Ohio County in March 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Virginia man who participated in Columbus murder pleads guilty to participating in MS-13 racketeering conspiracyRead the Press Release
COLUMBUS, Ohio – A Virginia man pleaded guilty in federal court in Columbus today to participating in a racketeering conspiracy in Columbus on behalf of the transnational gang MS-13.
In his plea, Jose Daniel Gonzalez-Campos (a/k/a Flaco), 31, accepts responsibility for his role in the November 2015 murder of 17-year-old high school student Wilson Villeda.
Parties involved in Gonzalez-Campos’ case have recommended a sentence of 30 years in prison.
Gonzalez-Campos is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment. He is the eighteenth defendant to plead guilty.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
Court documents detail that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
The murders sometimes involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death.
In the murder of Wilson Villeda, MS-13 members and associates attacked and killed the victim with bladed weapons and buried his body in a shallow grave in the woods in Innis Park.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Thomas Quinlan announced the guilty plea entered today before U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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U.S. Attorney Pak announces $500,000 award to provide housing to victims of human trafficking in AtlantaRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak announced that Wellspring Living, in the Northern District of Georgia received $500,000 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime (OVC), to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“A core mission of this office is the targeting and dismantling of human trafficking organizations operating in this district. The support our anti-trafficking prosecutors and investigators receive from victim advocates and non-governmental organizations, like Wellspring Living, is absolutely critical to our office’s success in combatting these horrific crimes,” said U.S. Attorney Pak. “This grant will provide essential resources to sex trafficking victims who are especially vulnerable due to ongoing fear of reprisal to themselves and their families, a wish to avoid embarrassment and public shame, and a simple desire to move on with their lives.”
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
“Wellspring Living is grateful for this investment in survivors of Human Trafficking through the recent OVC award,” said Wellspring Living Executive Director Mary Frances Bowley. “We are honored to work alongside incredible partners like the Justice Department, specifically the U.S. Attorney, to provide a safe and restorative environment for survivors to recover from the complex trauma of trafficking. As our survivors recover, the ability to work cooperatively with prosecutors provides vital progress to end trafficking.”
The grant, awarded to Wellspring Living, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Wellspring Living is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflects. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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.
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.
Tyler County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Dale Robert Barnhart, of Alma, West Virginia, was sentenced today to 33 months of incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Barnhart, age 57, pled guilty to one count of “Unlawful Possession of a Firearm and Ammunition” in February 2020. Barnhart, who is prohibited from having a firearm because of prior convictions, is accused of having two shotguns, a rifle, and multiple rounds of ammunition in August 2019 in Tyler County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge John Presto Bailey presided.
Two Montrose Residents Plead Guilty to Drug Distribution ChargesRead the Press Release
GRAND JUNCTION – United States Attorney Jason R. Dunn announced that Angelina Maestas and Naomi Vaughn, both of Montrose, Colorado, pleaded guilty to possession and distribution of methamphetamine and heroin. United States Magistrate Judge Gordon P. Gallagher heard the change of pleas late last week. Additionally, Maestas separately pleaded guilty to witness, victim or informant tampering. The Denver Division of the Drug Enforcement Administration joined in today’s announcement.
According to court documents, including the stipulated facts contained in the defendants’ plea agreements, Maestas and Vaughn conspired to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine, 500 grams or more of a mixture of a substance containing a detectable amount of methamphetamine, and less than 100 grams of heroin.
In addition to her plea on the drug charge, Maestas also pleaded guilty to witness, victim or informant tampering. According to court records, Maestas posted discovery documents protected by court order on Facebook. This included material that identified at least one co-conspirator who Maestas alleged cooperated with police.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Numbers 19-cr-535 and 20-cr-0166. The defendants are being prosecuted by Assistant U.S. Attorney Zachary Phillips.
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.
Two Members of Brooklyn-Based Gang Charged with Possessing a Firearm Used in a ShootingRead the Press Release
A two-count indictment was unsealed today in federal court in Brooklyn charging Davon Brown and Christian Williams, members of the violent street gang Folk Nation Gangster Disciples, with being felons in possession of a firearm in connection with their involvement in a March 14, 2020 shooting that wounded a man. The defendants were arrested this morning and will make their initial appearance this afternoon via videoconference before United States Magistrate Judge Peggy Kuo.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges and arrests.
“Preventing gun violence by repeat offenders is a priority of this Office, and we are addressing it aggressively in close coordination with our federal and local law enforcement partners,” stated Acting United States Attorney DuCharme. “As alleged, a minor dispute escalated to a shooting, underscoring the need to eradicate violent gangs that jeopardize the safety of our communities.”
“It's the random violence alleged here that keeps escalating, and enveloping an entire community of innocent people who are being terrorized by the actions of repeat offenders. We are working hourly with our law enforcement partners to address the recent spate of violence, and doing everything we can to make sure their return to crime is a short-lived exercise in futility,” stated FBI Assistant Director-in-Charge Sweeney.
“The gun violence alleged in this indictment tears at the fabric of life in our city. I applaud the NYPD’s vigorous efforts, along with our federal partners, to stop this kind of violence and work closely with the communities we are sworn to serve,” stated NYPD Commissioner Shea.
As detailed in the government’s detention letter filed earlier today, Brown and Williams were involved in the shooting of a victim who was disrespectful toward their gang. On March 20, 2020, an individual with the victim threw a drink at a woman inside the Gold Room Restaurant and Lounge in Prospect Lefferts Gardens, splashing a person standing with Brown. An argument ensued, and the victim, a Crips gang member, flashed a gang sign known as “dropping the rake” — a gesture intended to be insulting to the Folk Nation. The argument continued outside the bar where Brown allegedly displayed a gun and fired a shot into the air. Brown then handed the gun to Williams who walked behind the victim and shot him in the buttocks at close-range. Williams fled and discarded the gun a half block away. The gun was recovered by law enforcement, and DNA from both defendants was found on the weapon.
Brown, who was on federal supervised release at the time of the charged offense, has prior convictions for criminal possession of a loaded firearm, robbery and racketeering conspiracy, among other crimes. Williams, who was on New York state parole at the time of the charged offense, has prior convictions for, among other crimes, conspiracy and criminal possession of a loaded firearm in connection with an earlier shooting of a Folk Nation gang rival.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, both defendants face a maximum sentence of 10 years in prison. If convicted of violating his supervised release, Brown faces an additional sentence of up to two years in prison.
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. Attorney General William Barr has enhanced PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Jonathan Siegel is in charge of the prosecution.
The Defendants:
DAVON BROWN (also known as “Chico Dinero”)
Age: 26
Brooklyn, New YorkCHRISTIAN WILLIAMS (also known as “Zonee Flocks”)
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-293 (WFK)
Troy Man Admits to Trafficking 10 Kilograms of HeroinRead the Press Release
ALBANY, NEW YORK – Mario Figueroa-Portalatin, age 41, of Troy, New York, pled guilty today to conspiring to distribute at least 10 kilograms of heroin.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Rensselaer County Sheriff Pat Russo.
In pleading guilty, Figueroa-Portalatin admitted that for two years ending in March 2020, he sold at least 10 kilograms of heroin, which he acquired from a source of supply in New York City. From March 2018 to March 2020, he traveled to New York City once a month, on average, and each time purchased between 500 grams and 1 kilogram of heroin that he brought back to Troy, packaged, and sold.
On March 30, 2020, Figueroa was the subject of a traffic stop in Troy. Police officers seized a black canvas bag, on the front passenger floorboard of his vehicle, that contained approximately 200 grams of heroin that Figueroa intended to sell that day to a customer. Law enforcement then executed warrants on Figueroa’s apartment and another apartment in the same building, and seized $34,001 in drug trafficking proceedings. In Figueroa’s bedroom, officers found a Hi-Point model JHP .45 caliber pistol.
Figueroa will be sentenced on December 8, 2020 by Chief United States District Judge Glenn T. Suddaby. He faces at least 10 years and up to life in prison, as well as post-release supervision of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by DEA Albany and the Rensselaer County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Statement from Attorney General William P. Barr on the Resignation of Seattle Police Chief Carmen BestRead the Press Release
Attorney General William P. Barr issued the following statement in response to the resignation of Seattle Police Chief Carmen Best:
"I was disheartened to learn of the resignation of Seattle Police Chief Carmen Best. Her leadership and demonstrated commitment to her oath of office reflected all that is good about America’s law enforcement. In the face of mob violence, she drew the line in the sand and said, "Enough!", working tirelessly to save lives, protect her officers, and restore stability to Seattle. Her example should be an inspiration to all who respect the rule of law and cherish safety and security in their communities. This experience should be a lesson to state and local leaders about the real costs of irresponsible proposals to defund the police."
St. Louis Man Sentenced to 60 Months in Prison for Distributing MethamphetamineRead the Press Release
St. Louis, MO –Michael Brooks, 55, of St. Louis, was sentenced to 60 months in prison for distribution of actual (pure) methamphetamine. The quantity of actual methamphetamine, for which Brooks is accountable, is at least 50 grams but less than 150 grams. Brooks appeared in federal court today before United States District Judge Henry E. Autrey.
According to court documents, on October 12, 2016, at the direction of investigators, a Confidential Source (CS) arranged a meeting with Brooks to deliver a money counter they had previously discussed. The CS met Brooks at his house in St. Louis to deliver the money counter to Brooks. Brooks gave the CS a sample of the methamphetamine directly from a clear plastic bag.
On October 13, 2016, at the direction of investigators, the CS met Brooks at his house and bought two ounces of methamphetamine for $2,000.
On November 15, 2016, at the direction of investigators, the CS met Brooks at his house again to buy more methamphetamine. When Brooks opened the door to his house, he had a gun in a black holster under his arm. The CS mentioned something about carrying the gun in broad daylight, and Brooks responded "all day, everyday." The CS then bought two ounces of methamphetamine for $1,700.
On December 15, 2016, investigators conducted a traffic stop of the vehicle that Brooks was driving. Brooks possessed a loaded Smith & Wesson .357 Magnum in a black holster that was between the center console and driver's seat.
The Drug Enforcement Administration, Fairview Heights Resident Office, investigated this case. Assistant U.S. Attorney Sara Koppenaal handled the case.
St. Louis Man Sentenced for Drug Trafficking at Clinton-Peabody Housing ComplexRead the Press Release
St. Louis – Bruce Edward Johnson, 27, of St. Louis, was sentenced to 36 months in prison. Johnson was involved in a conspiracy to distribute more than 400 grams of fentanyl centered in the Clinton-Peabody housing complex on the near south side of the City of St. Louis. He appeared before the Honorable Catherine D. Perry.
According to court documents, between September 2014 and July 2018, Johnson acted as a distributor for drug customers seeking fentanyl in the St. Louis Metropolitan area. Johnson and other associates used various apartments within the Clinton-Peabody housing complex for purposes of storing and distributing fentanyl, among other things.
On July 18, 2018, investigators conducted a search warrant at Johnson’s residence. Inside Johnson’s bedroom, officers located a Glock 27, .40 caliber firearm with an extended magazine, an Anderson Arms AR-15 rifle and ammunition. Johnson knew he was a convicted felon prior to July 18, 2018.
In February, Johnson pled guilty to one felony count of conspiracy to distribute and possess with intent to distribute fentanyl and one felony count of felon in possession of a firearm.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the St. Louis Metropolitan Police Department, the St. Louis Division of the FBI, the St. Louis Division of the DEA, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service and the St. Charles County Sheriff’s Department.
St. Joseph Man Charged with Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Missouri, man was charged in federal court today with producing, distributing, and possessing child pornography.
Tyler Bradley Wirth, 31, was charged in a four-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., with two counts of producing child pornography, one count of distributing child pornography over the internet, and one count of possessing child pornography. Wirth remains in federal custody pending a detention hearing on Friday, Aug. 14.
According to an affidavit filed in support of today’s federal criminal complaint, Wirth communicated online with FBI online covert employees in New York and Kansas City during an investigation into a group of users who expressed a sexual interest in minors. Wirth allegedly sent each of the FBI online covert employees the same image of child pornography depicting a prepubescent girl identified in court documents as “Minor Victim 1 (MV1).”
Wirth sent the FBI employee in Kansas City several videos of child pornography, the affidavit says.
Law enforcement officers executed a search warrant at Wirth’s residence on Monday, Aug. 10. Wirth told officers he possessed about 1,000 images of child sexual abuse, including images of MV1 and a second victim, identified in court documents as “Minor Victim 2.” He allegedly produced pornographic images of both child victims and distributed those images to other users via social media in order to receive additional images of child pornography from those users.
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 Kenneth Borgnino. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."San Fernando Valley Man Charged with Fraudulently Obtaining COVID-Relief Loans for His Sham Sewing CompanyRead the Press Release
LOS ANGELES – A San Fernando Valley man now believed to have fled the United States today faces federal criminal charges today for allegedly obtaining more than $860,000 in Paycheck Protection Program (PPP) loans for a shell company and then transferring the bulk of his illicit gains to his personal bank accounts.
Arman Manukyan, 49, of Panorama City, was charged with one count of bank fraud and one count of aggravated identity theft in a criminal complaint filed Monday in United States District Court.
According to an affidavit in support of the complaint, Manukyan in June submitted two applications for PPP loans to Bank of America for $1.7 million on behalf of two shell companies registered in his name – Argo Global, Inc., and Express Wiring.
Manukyan allegedly claimed Argo Global was a sewing business with 73 employees and submitted to Bank of America, and later the Small Business Administration, false tax documents purporting to show wages and taxes for the company. The underwriting packet also did not include a list of employees or associates for Argo Global, which listed a virtual office address in Beverly Hills as its place of business, according to the affidavit. Ultimately, an $867,187 loan was approved for Argo Global, Inc.
Shortly after receiving the funds in Argo Global’s name, Manukyan allegedly transferred most of the balance to two of his personal bank accounts. When a bank investigator contacted Manukyan after one of his accounts had been frozen because of suspicious activity, he allegedly told the bank he was going to use the PPP loan to start a limousine business, contradicting what he wrote on his loan application, the affidavit states.
In June, Manukyan also allegedly submitted to Bank of America a loan application of $884,748 for Express Wiring, a shell company with a Glendale address. The Small Business Administration rejected the application, indicating it either had been submitted after the June 22 deadline for PPP loans or the allocated PPP funds had run out, according to the affidavit.
In July, a seizure warrant was executed on Manukyan’s bank accounts, recovering $866,019.
A search warrant executed at Manukyan’s home on July 22 revealed multiple debit cards used for unemployment benefits from the California Employment Development Department (EDD) that were in the names of different people, the affidavit states. Manukyan allegedly told law enforcement that he found two of the EDD cards on the street and decided to keep them, but insisted that he never used them. Investigators recovered another $118,474 from debit cards linked to Manukyan.
On August 9, law enforcement received information that Manukyan had boarded a flight from Mexico City inbound to Paris with a final destination of Minsk, Belarus, the affidavit states.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of both charges, Manukyan would face a statutory maximum sentence of 32 years in federal prison.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized more than $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This matter was investigated by Homeland Security Investigations, the Treasury Inspector General to the Tax Administration, the Small Business Administration – Office of Inspector General, the United States Postal Inspection Service, and the Employment Development Department, Investigation Division.
This case is being prosecuted by Assistant United States Attorney Andrew G. Brown of the Major Frauds Section.
Refugee Who Threatened Church Shooting Charged with Gun CrimeRead the Press Release
A man who allegedly threatened to commit a church shooting in Lubbock has been charged with a firearm offense following an investigation led by FBI Dallas’ Lubbock Resident Agency with support from ATF and HSI, announced U.S. Attorney Erin Nealy Cox.
Hieu Tran Trung, a 45-year-old North Vietnamese refugee living in Lubbock, has been charged via criminal complaint with being a felon in possession of a firearm. He made his initial appearance before U.S. Magistrate Judge D. Gordon Bryant, Jr., Monday afternoon.
According the complaint affidavit, a friend reached out to the FBI after Mr. Trung allegedly stated that he would “spray up” random people at his church.
Mr. Trung – who was barred from possessing firearms due to a 1998 conviction for assault on a public servant – allegedly asked the friend to “get me one of them straps,” a slang term for firearms. The friend refused.
A week later, on July 7, Mr. Trung allegedly texted the friend a photo of himself with two firearms. He later texted the friend a photo of a large amount of ammunition, along with the phrase “locked and leaded.”
Mr. Trung allegedly told the friend he felt people weren’t taking him seriously, and mentioned that he could easily kill someone and skip town. In late July, he vowed he would “show who he can be.”
A subsequent search of Mr. Trung’s residence revealed a 9 mm semiautomatic pistol stashed inside a briefcase. The gun was loaded, with one round in the chamber, nine rounds in the magazine, and two additional loaded magazines in a shoulder holster.
“I’m grateful to the citizen who reported his friend’s concerning behavior to federal authorities. His courage in speaking out may well have saved lives,” said U.S. Attorney Nealy Cox. “It’s critical that we act quickly when we get information like this and I commend our law enforcement partners who immediately intervened before the defendant could inflict real harm.”
“The defendant knew he was prohibited from possessing firearms, but still went out of his way to illegally obtain them. He also threatened to use these illegal firearms against his perceived enemies. As a result, we moved quickly to prevent a violent crime,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI and our law enforcement partners are committed to detecting and assessing possible threats as they arise. We work hard to protect our communities from violent individuals and encourage the public to report any suspicious activity that poses a threat to public safety.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Trung is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Homeland Security Investigations, and Texas Department of Public Safety conducted the investigation with the assistance of the Lubbock Police Department and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeff Haag is prosecuting the case.
The case was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
Portales man charged with failing to register as a sex offenderRead the Press Release
ALBUQUERQUE – Erich Deolax Riker, 44, of Portales, New Mexico, appeared in federal court Friday, August 7, for an arraignment on an indictment charging him with failure to register as a sex offender.
According to the indictment and other court records, Riker, under the name of Jamie Lee Wood, was convicted of criminal sexual offenses in Minnesota. Under the Sex Offender Registration and Notification Act, those convictions require Riker to register as a sex offender.
While living in Portales, New Mexico, Riker was arrested by the New Mexico State Police on November 13, 2019, in the course of an unrelated criminal investigation. Subsequently, it was determined that Riker had failed to register as a sex offender between October 10, 2019, and November 13, 2019, in Roosevelt County in the State of New Mexico.
Riker was transported to Eugene, Oregon, following his November arrest for violating his terms of supervised release related to a separate federal conviction for failure to register as a sex offender. Earlier this month, he was returned to New Mexico, where he will remain in custody pending his trial for the federal charge. The trial date has not yet been scheduled. Riker faces up to 10 years in prison if convicted of the charged offense.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The Roswell office of the United States Marshal Service investigated this case with assistance from the New Mexico State Police. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
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Polk County Man, Previously Convicted for Domestic Violence, Pleads Guilty to Making False Statement in Attempt to Acquire A FirearmRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Daniel John Ferrer (29, Davenport) has pleaded guilty to making a false statement while attempting to purchase a firearm. Ferrer faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Ferrer had previously been convicted of domestic violence battery and was prohibited from possessing a firearm or ammunition under federal law. Ferrer subsequently pawned three firearms at a pawnshop. When he attempted to repurchase one of those firearms, he was required to complete paperwork related to his criminal history. Ferrer falsely stated that he had never been convicted of a misdemeanor crime of domestic violence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Colin P. McDonell.
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.
Pittsburgh Woman Sentenced to Prison for Role in South Side Gang’s Drug TraffickingRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 33 months of imprisonment and three years of supervised release on her conviction of conspiracy to possess with intent to distribute heroin and fentanyl, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed sentence on April Price, 32.
According to information presented to the Court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Intercepted communications revealed that Ms. Price was involved in the distribution of heroin and fentanyl, and communicated directly with Anthony Jetter and Christopher Highsmith, who are among her most culpable co-defendants, and discussed distributor level quantities of narcotics. The court was further informed that Ms. Price was seen on pole camera footage conducting a drug transaction with several co-conspirators at a stash house on April 25, 2019. As a condition of her guilty plea on February 12, 2020, Ms. Price accepted responsibility for the distribution of 60 grams of heroin and fentanyl.
Assistant United States Attorneys Christy C. Wiegand and Brendan McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Philadelphia Man Sentenced to 45 Years for Sex Trafficking Children in Northeast PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Artavius Horne, a/k/a “Lo”, 36, of Philadelphia, PA was sentenced to 45 years in prison and 10 years of supervised release by United States District Court Judge Gerald J. Pappert for sex trafficking three children for years.
In September 2019, Horne was convicted at trial of three counts of sex trafficking minors by force, fraud or coercion. During the week-long trial, the government proved that the defendant organized, operated and led a sex trafficking venture based in and around Northeast Philadelphia between 2013 and 2015, and in 2018. As part of the scheme, the defendant recruited, enticed and maintained three minor children, one of whom was as young as 13 years old, to engage in commercial sexual encounters. Horne created Internet advertisements for each of the victims on the website Backpage.com, and he transported them across state lines to New Jersey, New York, Washington D.C., and Maryland for the purpose of engaging in commercial sex acts. He also kept the victims in apartments throughout Philadelphia, known as “trap houses,” where they were made to engage in commercial sex for the benefit of the defendant. In 2017, Horne was convicted of similar offenses in Bucks County, PA.
“Horne committed these heinous acts while on parole for doing the exact same thing,” said U.S. Attorney McSwain. “He has no regard for the law -- or even basic human decency -- as evidenced by his willingness to sell the bodies of children for sex to benefit himself. He deserves every minute of the 45 years that he received today.”
“Artavius Horne made his living by sexually exploiting children, advertising underage girls for sex with strangers,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He even transported them to other cities and states, determined to keep the money coming in at their expense. Know that the FBI and our law enforcement partners are working every day to put traffickers like Horne behind bars and ensure some justice for their victims. We ask anyone with knowledge of child or adult sex trafficking to let us know about it, so we can help. Call 1-800-CALL-FBI or go online to tips.fbi.gov. Tipsters can remain anonymous, if they like.”
The case was investigated by the Federal Bureau of Investigation, and it is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.