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Tuesday 11 August 2020
Owner of Investment Firm That Managed over $1 Billion in Assets Arrested in Federal Case Alleging He Defrauded InvestorsRead the Press Release
LOS ANGELES – The founder and former CEO of an investment firm that specializes in debt instruments was arrested this morning on federal charges alleging he falsified financial records to fraudulently inflate the value of the funds he managed, allowing him to charge investors millions of dollars in unauthorized fees.
Brendan Ross, 47, of La Cañada Flintridge, who founded Direct Lending Investments, LLC (DLI) in 2012, was taken into custody by special agents of the FBI.
In conjunction with the unsealing of the criminal case, the United States Securities and Exchange Commission today filed a civil complaint today against Ross alleging he defrauded investors.
Today’s arrest was pursuant to a grand jury indictment filed on July 30 that charges Ross with 10 counts of wire fraud based on a scheme he executed between late 2013 and early 2019 to defraud investors in funds managed by DLI, a firm he still owns. Ross resigned as CEO in March 2019, and soon after the SEC filed a civil complaint against DLI, which resulted in the appointment of a court-ordered receiver in early April 2019.
By the summer of 2017, only five years after Ross founded DLI, the firm had over $1 billion in assets under management. According to the indictment, Ross allegedly directed DLI to invest the funds’ assets in, among other things, a company that loaned money to small businesses and retailers. The DLI funds made money when the loans performed, meaning that the borrowers made timely payments. The indictment alleges that, rather than disclose some of the loans were not performing, Ross falsified monthly reports to make it appear borrowers were making payments. The “payments” actually came from fee rebates given by the company originating the loans.
By lying about the true status of the loans, Ross caused DLI to overstate the value of these loans on the funds’ books and fraudulently inflate the funds’ value, according to the indictment. Specifically, Ross allegedly caused the monthly asset values of the funds to be cumulatively inflated by over $300 million over the course of about four years. By fraudulently inflating the value of the funds, Ross was able to collect millions of dollars in fees he otherwise would not have been able to charge to clients, according to the indictment.
To further his scheme and help conceal it, Ross allegedly arranged for the sale of approximately $55 million of the loans to a third-party buyer in the summer of 2017. Ross once again inflated the value of these loans by lying about their status, falsely telling the buyer that borrowers had been making payments on many of these loans, according to the indictment.
Ross is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each of the 10 wire fraud counts in the indictment carries a statutory maximum sentence of 20 years in federal prison.
This matter was investigated by the FBI. The SEC provided substantial assistance during the criminal investigation.
This case is being prosecuted by Assistant United States Attorneys Poonam G. Kumar and Catherine S. Ahn of the Major Frauds Section.
Olean Woman Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Mary Kettle, 36, Olean, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiring to possess with intent to distribute, and distributing, butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between July 2018 and December 30, 2018, the defendant conspired with Erin Cameron and others sell butyryl fentanyl.
On October 22, 2018, the Bureau of Indian Affairs, Drug Enforcement Administration, and the Southern Tier Regional Drug Task Force set up a controlled purchase of butyryl fentanyl with Erin Cameron. The delivery of the butyryl fentanyl was made by the defendant. A second controlled purchase of butyryl fentanyl was made on February 6, 2019, and once again Kettle made the delivery.
Erin Cameron was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Bureau of Indian Affairs, under the direction of Jason Thompson, Associate Director of the Office of Justice Services; the Southern Regional Drug Task Force, under the direction of Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for December 9, 2020, at 2:00 p.m. before Judge Sinatra.
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North Country Man Sentenced for Making a False Statement to the VARead the Press Release
ALBANY, NEW YORK – Alex Cheney, age 55, of Moriah, New York, was sentenced today to 3 years of probation and 100 hours of community service for making a false statement to the Department of Veterans Affairs (VA) in order to receive Individual Unemployability benefits.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Christopher F. Algieri, United States Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office.
As part of his guilty plea, Cheney admitted that he falsely certified on an employment questionnaire that he was not employed or self-employed at any time during the prior 12 months when he was, in fact, working in construction and earning wages.
This case was investigated by the VA Office of Inspector General and prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Milwaukee Man Sentenced to Federal Prison for Possessing a Loaded Firearm While Trafficking DrugsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on Friday, August 7, 2020 James K. Nicksion (age 24) of Milwaukee was sentenced by the Honorable Judge Lynn Adelman to 60 months’ imprisonment. Once released, Nicksion will serve a three-year term of supervised release.
According to court records, Nicksion ran from police officers during a traffic stop. Inside the car, police found a 9mm semi-automatic pistol carrying an extended magazine. The gun was loaded with 30 rounds of ammunition. Police also found roughly five grams of crack cocaine and a scale. Nicksion had previously been convicted of dealing marijuana and bail jumping.
This case was prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://go.usa.gov/xpBrs.
The Milwaukee Police Department and Federal Bureau of Investigation investigated the case, with assistance from the Drug Enforcement Administration and Shawano County Sheriff’s Office. Assistant United States Attorney Farris Martini prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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Mexican man sent to prison after smuggling half a million dollarsRead the Press Release
McALLEN, Texas – A 35-year-old resident of Mexico City, Mexico, has been ordered to prison for bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
Jorge Alberto Ruiz-Periban pleaded guilty April 8, admitting he evaded a currency reporting requirement in his attempt to conceal $570,247 while trying to take the money into Mexico.
Today, U.S. District Judge Randy Crane handed Ruiz-Periban a 30-month sentence. As part of the terms of the plea agreement, the money will be forfeited to the United States. In handing down the sentence, the court noted the Ruiz-Periban’s employment as a horse trainer in Mexico and that he was likely recruited by the cartel to launder money. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.
“Today’s sentencing of Ruiz-Periban demonstrates that bulk cash smuggling is a serious crime motivated by greed, which directly contributes to the cartel violence that damages communities on both sides of the border,” said Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) in San Antonio. “HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation.”
On Jan. 8, Ruiz-Periban entered the southbound inspection lanes in a vehicle at the Anzalduas Port of Entry. Authorities referred him to secondary inspection, at which time he denied possession of $10,000 or more in U.S. currency. However, they located an abnormality in the spare tire of Ruiz-Periban’s vehicle and subsequently discovered $570,247 concealed in it.
At the time of his plea, Ruiz-Periban admitted he intended to evade the currency reporting requirement and intended to transport the money he hid in the tire from Mission to Mexico.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with Customs and Border Protection. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
McKeesport Felon Facing Charges of Distributing Fentanyl Resulting in Death and Illegal Possession of AmmunitionRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The two separate but related indictments, returned on August 4, named Rahde Williamson aka "Raw" age 25, as the sole defendant.
According to the first Indictment, the defendant conspired to possess with intent to distribute and to distribute 400 grams or more of fentanyl from November of 2018 through August of 2019. The Indictment further alleges that in June of 2019 Williamson distributed fentanyl that caused an overdose death. The second Indictment alleges that on July 15, 2020, the defendant, a convicted felon, possessed ammunition after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include a federal drug conviction for conspiracy to distribute more than one kilo of heroin and possession with intent to distribute less than 100 grams of heroin. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition. The court was further informed that the defendant was on federal supervised release when he purchased the ammunition.
The law provides for a maximum total sentence of up to life in prison, a fine of not more than $11,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendant will remain incarcerated pending the resolution of the case
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Monessen Police Department conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McKean County Man Charged with Violating Federal Tax LawsRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal tax laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Brian L. Gustafson as the sole defendant.
According to the Indictment presented to the court, when the IRS sought to bring Gustafson into compliance with his filing and payment requirements, Gustafson engaged in several acts of evasion: 1) he closed a bank account known to the IRS and replaced it with an undisclosed account; 2) he failed to disclose personal and corporate bank accounts to the IRS on Form 433-A; 3) upon discovery of the undisclosed account, he lied to an IRS revenue agent about his use of the account, and; 4) he withdrew significant cash from the undisclosed account.
The law provides for a maximum total sentence of 11 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation Division conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to Terrorist OrganizationRead the Press Release
The Department of Justice announced today that Jesus Wilfredo Encarnacion, a/k/a “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was sentenced to 15 years in prison for attempting to provide material support to Lashkar e-Tayyiba (LeT), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in November 2008. In addition, Encarnacion was sentenced to a lifetime term of supervised release. Encarnacion pleaded guilty on Jan. 22, 2020, before United States District Judge Ronnie Abrams, who also imposed today’s sentence.
“Unfortunately, individuals continue to attempt to travel to foreign countries to support terrorist organizations. Encarnacion’s sentence reflects the seriousness with which the justice system takes these efforts,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division remains committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
“Jesus Encarnacion plotted to travel abroad, to join and train with Lashkar e-Tayyiba, infamous worldwide for the jihadist murder of innocent civilians, and to carry out shootings, bombings, and beheadings in behalf of that terrorist organization,” said Acting U.S. Attorney Audrey Strauss for the Southern District of New York. “Thanks to the FBI, the NYPD, and the Joint Terrorist Task Force, Encarnacion has been sentenced to a lengthy prison term for his crime.”
According to the criminal complaint, indictment, other court filings, and statements during court proceedings:
In November 2018, Encarnacion expressed his desire to join a terrorist group in an online group chat, where he met another individual (CC-1). CC-1 introduced Encarnacion to an individual who, unbeknownst to CC-1 or Encarnacion, was in fact an undercover FBI employee (UC-1). Encarnacion repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by both the United States Secretary of State and the Immigration and Nationality Act.
Over several months, Encarnacion discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, Encarnacion told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help Encarnacion travel abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” Encarnacion further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
By early 2019, Encarnacion and UC-1 agreed on a plan that Encarnacion believed would allow him to join LeT in Pakistan. Encarnacion told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step in traveling to Pakistan to join LeT. Encarnacion purchased an airline ticket for a flight scheduled to depart on Feb.7, 2019, from John F. Kennedy International Airport (JFK Airport) to the European City. On Feb. 7, 2019, Encarnacion traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight.
In addition to the prison term, Encarnacion was also sentenced to serve a life term of supervised release.
Assistant Attorney General Demers and Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Ms. Strauss also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U. S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are in charge of the prosecution, with assistance from Bridget Behling of the National Security Division’s Counterterrorism Section.
Manhattan Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to Terrorist OrganizationRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and John C. Demers, the Assistant Attorney General for National Security, announced today that JESUS WILFREDO ENCARNACION, a/k/a “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” was sentenced to 15 years in prison for attempting to provide material support to Lashkar e-Tayyiba (“LeT”), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in November 2008. ENCARNACION pled guilty on January 22, 2020, before U.S. District Judge Ronnie Abrams, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Jesus Encarnacion plotted to travel abroad, to join and train with Lashkar e-Tayyiba, infamous worldwide for the jihadist murder of innocent civilians, and to carry out shootings, bombings, and beheadings on behalf of that terrorist organization. Thanks to the FBI, the NYPD, and the Joint Terrorism Task Force, Encarnacion has been sentenced to a lengthy prison term for his crime.”
Assistant Attorney General John C. Demers said: “Unfortunately, individuals continue to attempt to travel to foreign countries to support terrorist organizations. Encarnacion’s sentence reflects the seriousness with which the justice system takes these efforts. The National Security Division remains committed to identifying and holding accountable those who seek to join and support designated foreign terrorist organizations.”
According to the criminal Complaint, Indictment, other court filings, and statements during court proceedings:
In November 2018, ENCARNACION expressed his desire to join a terrorist group in an online group chat, where he met another individual (“CC-1”). CC-1 introduced ENCARNACION to an individual who, unbeknownst to CC-1 or ENCARNACION, was in fact an undercover FBI employee (“UC-1”). ENCARNACION repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by both the United States Secretary of State and the Immigration and Nationality Act.
Over several months, ENCARNACION discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, ENCARNACION told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help ENCARNACION travel abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” ENCARNACION further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
By early 2019, ENCARNACION and UC-1 agreed on a plan that ENCARNACION believed would allow him to join LeT in Pakistan. ENCARNACION told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step in traveling to Pakistan to join LeT. ENCARNACION purchased an airline ticket for a flight scheduled to depart on February 7, 2019, from John F. Kennedy International Airport (“JFK Airport”) to the European City. On February 7, 2019, ENCARNACION traveled to JFK Airport, where he was arrested by the Federal Bureau of Investigation (“FBI”) after he attempted to board that flight.
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In addition to the prison term, ENCARNACION was also sentenced to serve a life term of supervised release.
Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies. Ms. Strauss also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U. S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener are in charge of the prosecution, with assistance from Bridget Behling of the National Security Division’s Counterterrorism Section.
Man Sentenced to Prison for Drug Trafficking and Firearm CrimesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 11 1/2 years in prison for possession with intent to distribute an ounce of cocaine and possession of firearm after being convicted of a felony.
“Illicit narcotics such as cocaine, heroin, and fentanyl are ravishing the United States,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “With every gram of cocaine, rock of crack, or package of heroin that he sold, Graham fanned the flames of the opioid epidemic in Virginia. Graham has at least six prior felony convictions, including two involving the illegal possession of a firearm and four drug related convictions. This is precisely the type of defendant worthy of federal prosecution, and today’s sentence should send a strong message to those who choose to peddle poison in our communities.”
According to court documents, Nicholas Gabriel Graham, 29, was arrested on felony drug trafficking warrants as he drove away from his residence. Graham had an ounce of cocaine and $1,263 in his pocket and a loaded semiautomatic pistol in his car. A search of his residence pursuant to a search warrant resulted in the recovery of three more loaded pistols and a loaded AK-47, a quantity of fentanyl, more cocaine, including crack cocaine and items used to traffic narcotics. Graham had been previously convicted of a felony and was prohibited from possessing a firearm.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel David R. Hines, Hanover County Sheriff, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Olivia N. Emerson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-147.
Man and Woman Sentenced to A Combined 15 Years for Sex Trafficking CrimesRead the Press Release
CHATTANOOGA, Tenn. – On August 5, 2020, Savannah Grissum, 22, of Douglasville, Georgia, and Alonzo Dean Westmoreland, 31, of Kennesaw, Georgia, were sentenced by the Honorable Curtis L. Collier in the United States District Court for the Eastern District of Tennessee at Chattanooga.
Both plead guilty in September 2019 to transporting in commerce an underage victim for the purpose of engaging in prostitution. As part of the plea agreement, Grissum and Westmoreland admitted to bringing the underage victim from Georgia to Tennessee for the purpose of prostitution. Grissum was sentenced to 78 months in prison, followed by six years’ supervised release; Westmoreland received 108 months in prison and six years’ supervised release. Both will be required to register with the sex offender registry in any state in which they reside, work, or attend school, and comply with special sex offender conditions during the supervised release.
In June 2018, Cobb County Police Department received a report of a runaway juvenile. The FBI from the Atlanta and Chattanooga divisions, were informed that the juvenile was located in Chattanooga. Deputies from the Hamilton County Sheriff’s Office and the FBI responded to a local motel, where they recovered the underage victim who had been prostituted in Chattanooga for approximately four days. Grissum and Westmoreland used the proceeds from that illegal activity to pay for their hotel room and other expenses.
The prosecution was the result of a joint investigation led by FBI Special Agents Terrilynn James and Terri L. Green of the Chattanooga Division, and Nathan Whiteman of the Atlanta Division, Detective Robert Rush of the Hamilton County Sheriff’s Office, with assistance from Detectives Hunter Llewellyn and Ray Drew with the Cobb County Police Department.
Assistant U.S. Attorney Jay Woods represented the United States in court proceedings.
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Man Accused of Mailing Threatening Communications to Kanawha County Circuit Judge Arrested on Federal Criminal ComplaintRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Keith Lessard, 40, of Uxbridge, Massachusetts, was arrested on a federal criminal complaint alleging that he mailed threatening communications to a Kanawha County Circuit Judge. According to the criminal complaint, Lessard engaged in a series of communications with the Judge and others using email and the United States Postal Service. The communications were part of a scheme to extort money from the Judge by threatening injury to her reputation by claiming that she engaged in illegal prosecutorial misconduct in a 2010 case against Lessard when she was serving as an Assistant Prosecuting Attorney in Kanawha County. The complaint further notes that there is no evidence supporting Lessard’s claims of illegal conduct on the part of the Assistant Prosecutor.
“Any threat to any member of the judiciary is taken very seriously. I commend the FBI and the U.S. Postal Inspection Service for conducting the thorough investigation which led to Lessard’s arrest today,” said United States Attorney Mike Stuart.
“We take extortion threats very seriously and will investigate them to our full potential,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “People who think they can extort others need to know there will be consequences. These crimes cause severe emotional distress and will not be tolerated.”
“The U.S. Postal Inspection Service is committed to preserving the integrity of the U.S. mail. By working closely with our law enforcement partners in operations like this, we can hold those engaged in terrible crimes accountable for their actions,” said Tosha Dennis, Acting Inspector in Charge of the Pittsburgh Division.
Lessard faces up to two years in prison, if convicted.
The Federal Bureau of Investigation (FBI) and the United States Postal Inspection Service (USPIS) are conducting the investigation. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
Note: The charge contained in the complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-mj-00106.
Follow us on Twitter: SDWVNews and USAttyStuart
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Lodge Grass man admits strangling girlfriendRead the Press Release
BILLINGS – A Lodge Grass man today admitted strangled his girlfriend during an assault last year at her residence on the Crow Indian Reservation, U.S. Attorney Kurt Alme said.
Augustus Christopher Wolfblack, also known as Augustus Christopher Flatmouth, 19, pleaded guilty to assault by strangulation of a dating partner. Wolfblack faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Wolfblack was released pending further proceedings.
In court documents filed in the case, the prosecution said Wolfblack assaulted the victim on Sept. 15, 2019 at her residence in Lodge Grass. Wolfblack struck the victim with his fists, put her in a headlock and strangled her. After the assault, Wolfblack left and the victim sought help from relatives. Bureau of Indian Affairs law enforcement officers interviewed the victim, who was treated at the Indian Health Service in Crow Agency for injuries. When interviewed, Wolfblack initially denied assaulting the victim except to say he grabbed her arm after she hit him in the head. After being pressed, Wolfblack admitted he had hit the victim with his fists, pushed and shoved her and held her up against a wall by putting his hand around her neck, although he claimed that he did not squeeze her neck.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI.
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Leader of Rhode Island Latin Kings Chapter Pleads Guilty to Narcotics Conspiracy ChargesRead the Press Release
BOSTON – A leader of the Rhode Island Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to conspiracy charges.
Eric Thomas a/k/a “King E,” 46, pleaded guilty to conspiracy to distribute cocaine. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 8, 2020. Thomas was arrested and charged in December 2019, at which time he had been identified as the leader of the Rhode Island Chapter of the Latin Kings.
During the plea proceedings, Thomas admitted that in August 2019, he conspired with others to purchase cocaine from members of the Latin Kings in New Bedford for resale. Days later, on Sept. 4, 2019, a co-conspirator was captured in a video recording purchasing 186 grams of cocaine from members of the New Bedford Chapter in a deal facilitated by Thomas.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
The conspiracy charge provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. 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; Commissioner Carol Mici of the Massachusetts Department of Correction; and Worcester Police Chief Steven M. Sargent made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Klamath Falls Man Accused of Cashing More than 40 Years' Worth of Deceased Relative's Social Security ChecksRead the Press Release
MEDFORD, Ore.—U.S. Attorney Billy J. Williams announced today that a Klamath Falls, Oregon man is facing federal criminal charges for cashing more than $458,000 worth of social security checks issued in the name of his deceased aunt. George Doumar, 76, has been charged by complaint with theft of public funds and mail theft.
According to court documents, in February 2020, the Social Security Administration’s (SSA) Office of Anti-Fraud Programs identified a 114-year-old supercentenarian who appeared to be the second-oldest living person in the U.S. receiving Social Security retirement benefits. SSA systems indicated that no updates had been made to the person’s benefit record in more than 30 years, leading SSA staff to believe that the person may be deceased. The matter was referred to the SSA Office of the Inspector General (SSA-OIG).
SSA records indicated that the benefit recipient was born on August 7, 1905 in New York City and had first applied for retirement benefits in August 1970. The person did not receive any payments until September 1977 after she reached her delayed retirement computation age. SSA records further showed that from 1977 until present day, the benefit recipient received monthly Social Security retirement checks disbursed by the U.S. Treasury and delivered by the U.S. Postal Service. The last known update to the recipient’s SSA benefit record was in July 1989, when the recipient’s address was updated to Frontier Parcel & Fax Service on S. 6th Street in Klamath Falls, a commercial mail receiving agency that accepts mail from the Postal Service on behalf of third parties.
In March 2020, an investigator with SSA-OIG interviewed two of the benefit recipient’s nieces. Both nieces claimed that their aunt died in the 1960s or 1970s and recalled attending her funeral in Brooklyn, New York, where she had reportedly lived her entire life. According to one niece, their aunt did not have any children and was not married. She recalled that Doumar, her Aunt’s nephew, was close with her aunt near the time of her death and was named the sole beneficiary of her life insurance payout.
Investigators soon discovered that Doumar himself was an active Social Security beneficiary and received his checks at the same address on S. 6th Street in Klamath Falls. State of Oregon Employment Department records showed that Doumar had owned Frontier Parcel & Fax Service since 1990. He owned the property on which the business was located and a residence approximately 20 miles southwest of Klamath Falls city limits. According to SSA records, Doumar purchased the property on S. 6th Street seven days prior to the address on his aunt’s benefit record being changed to the same address.
On April 1, 2020, a U.S. Postal Inspection Service (USPIS) Postal Inspector obtained the most recent commercial mail receiving agency report for Frontier Parcel, which showed the names of current postal box owners. The list did not contain anyone with the first or last name of Doumar’s aunt. On May 1, 2020, an Economic Impact Payment of $1,200 was issued to Doumar’s aunt by the U.S. Treasury, as authorized by the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. Two weeks later, the check was deposited at a nearby bank after being endorsed with the aunt’s purported signature.
On June 16, 2020, SSA-OIG investigators obtained a copy of the aunt’s death certificate from the New York City Department of Health & Mental Hygiene, confirming that she had died on March 7, 1971 in Brooklyn. Investigators determined that Doumar had added his aunt to he and his wife’s shared checking account in 1989. His aunt’s Social Security checks were often bundled in deposits with other checks made payable to Doumar. Doumar’s account was used to pay for various living expenses including mortgage, car loan, medical, and utility payments.
Investigators obtained bank surveillance footage from February 2020 that showed a man, who appeared to match Doumar’s physical description, depositing one of his aunt’s retirement checks. On July 14, 2020, investigators from SSA-OIG and USPIS interviewed Doumar at his Klamath Falls residence. When asked about his aunt, Doumar sighed, slumped his head, and stated, “that’s a long story…what happened was, well she’s passed and yes, I’ve been collecting her Social Security.”
Doumar will make his first appearance in federal court on August 24, 2020. If convicted, he faces a maximum sentence of 10 years in prison, a $25,000 fine, and 3 years’ supervised release. The U.S. Attorney’s Office will also seek restitution on behalf of SSA.
This case was jointly investigated by SSA-OIG and USPIS. It is being prosecuted by Rachel Sowray, Special Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
KC Man Charged with Illegal Firearm After Threatening Restaurant EmployeeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been charged in federal court with illegally possessing a firearm after he used it to threaten a restaurant employee.
Edward Latimore, 46, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, Aug. 10, with being a felon in possession of a firearm.
This Sig Sauer .22-caliber semi-automatic pistol was seized from Edward Latimore when he was arrested.According to an affidavit filed in support of the federal criminal complaint, an employee at a KFC restaurant at 3014 Independence Blvd., Kansas City, confronted Latimore on the afternoon of Saturday, Aug. 8, when Latimore went to the rear of the restaurant to publicly urinate. After they argued, Latimore left the restaurant. But the employee then saw Latimore in the drive-through window area of the restaurant, and they argued again. Latimore allegedly pulled up his shirt and showed the employee a Sig Sauer .22-caliber semi-automatic pistol in his waistband. Latimore drew the firearm from his waistband, the affidavit says, pointed it at the employee, and threatened to kill the employee.
A second KFC employee had taken a photograph of Latimore, which they provided to the police. Officers searched the area for Latimore and found him walking northbound on the east side of Gladstone Boulevard. Officers contacted Latimore, and took the pistol from his waistband and a magazine, loaded with 10 .22-caliber rounds of ammunition, from his left pants pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Latimore has prior felony convictions for assault and armed criminal action.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Trey Alford. It was investigated by the Kansas City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Justice Department Releases Report on Modernizing the Administrative Procedure ActRead the Press Release
The Justice Department released a report today on the need for Congress to update and improve the Administrative Procedure Act (APA), the 74-year-old statute setting forth the procedures agencies must follow when regulating individuals, businesses, non-profits, and state and local government entities. The report, entitled Modernizing the Administrative Procedure Act, discusses how the administrative state has developed in ways not foreseen by the APA in 1946, how the APA might be legislatively improved, and how this Administration’s improvements to agencies’ regulatory processes could inform modernizing the APA. The Justice Department, which significantly shaped the original APA, hopes that the ideas and insights discussed in the report will encourage and inform much needed action by Congress to modernize the APA.
The report released today is based on a summit held at the Justice Department on December 6, 2019. The summit brought together leading regulatory practitioners, policymakers, and scholars to discuss how best to reform the APA, which remains largely unchanged since its enactment in 1946. These experts offered a variety of ideas, from a variety of perspectives, on how Congress could reform the APA so that regulation better serves the needs of the American people.
“This report aims to disseminate the many good ideas for modernizing the APA offered by participants in the summit,” said Deputy Attorney General Jeff Rosen. “The Justice Department is eager to build on the many improvements the Trump Administration has already made to the regulatory process by working with leaders in Congress to modernize the APA.”
“This important report contributes to the ongoing dialogue about how to make the American administrative system less burdensome, more accountable to the people, and more respectful of the rights of Americans,” said Paul Ray, Administrator of the White House Office of Information and Regulatory Affairs. “It follows on a number of critical reforms by President Trump and is essential reading for anyone who shares a commitment to vindicating the principles of limited, accountable government and the rule of law in today’s world.”
The report is available here.
International Fugitive Extradited from Italy Pleads Guilty to Drug ChargeRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that Nelson Pablo Yester-Garrido (62, of Cuba) today pleaded guilty to conspiracy to distribute a large amount of high-grade marijuana in the Middle District of Florida. Yester-Garrido faces a maximum penalty of 40 years in federal prison. Sentencing is set for October 22, 2020.
According to court documents, from the late 1980s through early 1997, Yester-Garrido was part of a group involved in importing kilogram amounts of cocaine and other narcotics into the United States, including by negotiating the purchase of a Russian diesel submarine for Colombian drug suppliers. Around 1997, Yester-Garrido fled to South Africa to escape prosecution related to charges that had been filed in the Southern District of Florida (which have since been dismissed).
Yester-Garrido then conspired with Juan Almeida, Andrew Cassara, and others to possess with the intent to distribute a large amount of marijuana in the Middle District of Florida.
In January 2015, the DEA began investigating the conspiracy, and in January 2017, an indictment was returned in the Middle District of Florida charging three of Yester-Garrido’s co-conspirators, Almeida, Cassara, and Wade Jones, Jr. (All three were sentenced in 2018 to varying terms of imprisonment.)
In October 2017, Yester-Garrido himself was indicted in the Middle District of Florida for conspiracy, from February 2012 through February 2015, to distribute marijuana and on related gun charges. Yester-Garrido was arrested in October 2017 by Italian authorities on a provisional arrest request at the Fiumicino Airport in Rome, Italy. In July 2019, the Italian judicial authorities and the Ministry of Justice granted the request for Yester-Garrido’s extradition to the United States, and he was brought to the Middle District of Florida to answer the indictment against him.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from Italy. The U.S. Marshals Service also provided critical assistance in the extradition to the Middle District of Florida. This case was prosecuted by Assistant United States Attorney Sean P. Shecter.
Georgia Man Is Sentenced to More Than 19 Years for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – Braudio Mendoza, 33 of Atlanta, Georgia, was sentenced to 235 months in prison and five years of supervised release late yesterday for trafficking methamphetamine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to court records, from at least as early as 2018 to March 2019, Mendoza was involved in a drug conspiracy that trafficked large quantities of methamphetamine from Georgia into Western North Carolina. Court records show that law enforcement identified Mendoza as a source of supply of the methamphetamine, and he coordinated drug deliveries into North Carolina. Over the course of the investigation, law enforcement determined that Mendoza was responsible for trafficking more than 4.5 kilograms of high-purity methamphetamine, also known as “ice”.
On February 22, 2019, Mendoza pleaded guilty to two counts of possession with intent to distribute methamphetamine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
\Mendoza was charged as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation codenamed “Dixie Crystal.” Since 2015, more than 200 individuals have been prosecuted as a result of the Dixie Crystal investigation, and the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement have seized far in excess of 20 kilograms of crystal methamphetamine, $500,000 in U.S. currency and other assets, and dozens of firearms.
\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 drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Mendoza’s case was investigated by the ICE-Homeland Security Investigations, with assistance from the North Carolina State Bureau of Investigation, Gastonia Police Department, Gaston County Police Department, Huntersville Police Department, Mooresville Police Department, Cleveland County Sheriff’s Office, Alexander County Sheriff’s Office, Davie County Sheriff’s Office, Mocksville Police Department, and the Charlotte-Mecklenburg Police Department. Assistant U.S. Attorney Steven Kaufman prosecuted the case.
Gang Member Sentenced to Five Years in Prison on Drug and Firearm ChargesRead the Press Release
PROVIDENCE, RI – A Central Falls man investigated in a Project Safe Neighborhoods investigation by the Central Falls Police Department and the Rhode Island FBI Safe Streets Gang Task Force for his connection to a neighborhood-based street gang involved in drug trafficking, firearm violations, assaults, and shootings, was sentenced today to five years in federal prison on drug and firearm charges.
Elton Andrade, aka “MT Flex,” 21, an admitted member of the “Money Team” street-gang, and who repeatedly appeared on social media accounts related to his gang activity, was arrested one day after Central Falls Police Detectives and members of the Safe Streets Gang Task Force executed a court-authorized search of a Central Falls residence where they seized from Andrade’s bedroom two bags containing a total of 28.53 grams of crack cocaine, two loaded stolen firearms, and $1,503 in cash.
Andrade was arrested on February 27, 2018, after being surveilled by law enforcement leaving a Seekonk, Mass., motel and taking a taxi to Central Falls. He was arrested by Central Falls Police during a traffic stop of the taxi.
According to information presented to the court, many members of “Money Team,” a.k.a. “Mile Boyz” a.k.a. “Square Mile Boyz,” are aspiring rap artists and associate themselves with a record label managed by a Money Team member called Cash on Demand Records. On numerous social media sites related to “Money Team,” members repeatedly displayed firearms, illegal narcotics, and gang signs. Andrade repeatedly appeared throughout the social media accounts and in Cash on Demand music videos.
Andrade, who has been detained since his arrest, pled guilty on February 18, 2020, to possession with intent to distribute 28 grams or more of cocaine base and two counts of possession of a stolen firearm. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr. to 60 months in federal prison to be followed by 4 years’ supervised release.
Andrade’s sentence is announced United States Attorney Aaron L. Weisman, Central Falls Police Chief Colonel Daniel J. Barzykowski, and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The Rhode Island FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, Woonsocket Police Department, Rhode Island State Police, and the Rhode Island National Guard.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Frostproof Methamphetamine Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Mario Alberto Rivas (50, Frostproof) to 10 years in federal prison for conspiring with others to possess with the intent to distribute 500 grams or more of methamphetamine.
Rivas had pleaded guilty on February 18, 2020.
According to court documents, Rivas traveled from Florida to Houston, Texas to pick up approximately four kilograms of methamphetamine from a co-conspirator. After picking up the methamphetamine, Rivas traveled back to Florida to deliver the drugs to additional co-conspirators in the Polk County area. While Rivas was on the way to deliver the drugs, law enforcement officers stopped his vehicle and seized the methamphetamine.
This case was investigated by the Federal Bureau of Investigation, the Lake Wales Police Department, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Callan L. Albritton.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Former Leader of Fitchburg Chapter of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – The former leader of the Fitchburg Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering conspiracy charges.
Marlon Rivera, a/k/a “King Pluto,” 36, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 2, 2020. Rivera was serving a related state sentence when he was charged in December 2019.
The Latin Kings are a violent gang comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the criminal organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and is motivated by a desire to further its influence and to protect its turf from rival gangs.
In addition to his membership in the Latin Kings, Rivera is alleged to have founded the Devon Street Kings Chapter in Boston, and recently was the Inca, or leader, of the Fitchburg Chapter of the Latin Kings. Evidence developed during the course of the investigation included recordings of Rivera participating in meetings, discussing business of the enterprise, and possessing cocaine base with intent to distribute.
In December 2019, a federal grand jury issued an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Marlon Rivera is the sixth defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Aequitas CEO and Senior Executives Indicted in Fraud and Money Laundering ConspiracyRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Robert J. Jesenik, 61, a former chief executive officer of Aequitas Management, LLC and several other Aequitas-owned entities, has been indicted along with three other former company executives for their roles in a fraud and money laundering conspiracy.
Jesenik, a former resident of West Linn, Oregon, is charged in a 32-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. Also charged are Nelson Scott Gillis, 67, of Lake Oswego, Oregon; Brian K. Rice, 54, of Portland; and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida.
According to court documents, Jesenik, Gillis, MacRitchie, Rice, and others used the Lake Oswego company to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas.
From June 2014 through February 2016, the former executives solicited investors by misrepresenting the company’s use of investor money, the financial health and strength of Aequitas and its related companies, and the risks associated with its investments and investment strategies. Collectively, the defendants also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use of investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds.
Jesenik founded the Aequitas group of companies, and, as chief executive officer, controlled the organization’s structure and had ultimate decision-making authority over company activities.
Gillis, who was previously indicted for conspiring to submit false statements to a federally insured creditor, was the company’s chief operating officer and chief financial officer. In these roles, he was responsible for directing Aequitas’s overall financial policies and accounting functions. He established and maintained the company’s accounting principles, practices, procedures and initiatives, prepared financial reports and presented findings and recommendations to the executive teams, and oversaw all financial functions.
MacRitchie was the company’s executive vice president and chief compliance officer. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. He also established Aequitas’s New York Office and directed Aequitas’s “Lux Fund,” a Luxembourg-based fund used to solicit international investors.
Rice served as Aequitas’s executive vice president and president of wealth management. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitas’s affiliated RIAs.
If convicted on all charges, each of the defendants could face decades in prison and millions of dollars in fines and restitution, as well as five years’ supervised release following their prison terms.
Former Aequitas executives and co-conspirators Brian A. Oliver and Olaf Janke previously pleaded guilty to conspiring to commit mail and wire fraud and money laundering on April 19, 2019, and June 10, 2019, respectively. As part of their plea agreements, they have both agreed to pay restitution in full to their victims as determined and ordered by the court.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Attorneys for the District of Oregon.
Fentanyl and Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
PROVIDENCE – An admitted fentanyl and cocaine trafficker arrested one day after he fled members of the FBI Safe Streets Task Force during an April 2019 investigation into his drug trafficking activities was sentenced today to 10 years in federal prison, announced United States Attorney Aaron L. Weisman and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
In early April 2019, members of the FBI Safe Streets Task Force developed information that Luis Leon, 25, of Pawtucket, was expecting a large shipment of fentanyl. On April 9, task force members established surveillance of Leon’s residence and watched as an individual entered Leon’s residence carrying a large duffel bag. A short time later, Leon left the residence carrying the duffel bag that he placed in the back of a dark colored pickup truck and drove off.
As members of the task force moved into position to follow Leon he repeatedly looked in his rear view mirrors at their vehicle. As agents attempted to stop Leon by illuminating their flashing lights and engaging their siren he drove off at a high rate of speed. Because of the reckless manner in which Leon was operating the truck investigators did not pursue the vehicle, but did continue to drive the route Leon’s truck appeared to take. A short distance away agents came upon an accident. Witnesses told police that a pickup truck struck a vehicle causing the vehicle to careen into a building. The truck fled without stopping.
Several minutes later, law enforcement learned that a pickup truck with heavy front end damage pulled into a nearby parking lot and was abandoned. A witness advised law enforcement he saw the driver get out of the vehicle, toss a duffel bag into bushes nearby, and run off. The description of the driver fit the description of Leon. Agents retrieved the bag. It was found to contain approximately 634.4 grams of fentanyl and approximately 429.5 grams of cocaine.
Later that night task force agents developed information that Leon was likely staying at a residence in Fall River. They established surveillance and arrested Leon the following afternoon as he exited the building.
On May 14, 2019, Leon pleaded guilty in U.S. District Court to possession with the intent to distribute 400 grams or more of fentanyl and possession with intent to distribute cocaine. He was sentenced today by U.S. District Court Mary S. McElroy to 120 months in federal prison to be followed by five years supervised release.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The Rhode Island FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, Rhode Island State Police, and the Rhode Island National Guard.
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Father Who Caused Overdose of his Infant Son Sentenced to 137 Months in Prison for Dealing Fentanyl and Possessing a FirearmRead the Press Release
St. Louis, Missouri – United States District Judge Audrey G. Fleissig sentenced Gayron Sloan, 39, of St. Louis, to 137 months in prison for possessing with the intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime.
According to the plea agreement, on January 15, 2019, police served a search warrant at the home of Gayron Sloan in St. Louis, Missouri. During the search, police found in the living room fentanyl, marijuana, and drug distribution paraphernalia, including scales, blenders, and suboxone. In Sloan’s bedroom, police found individually packaged fentanyl, crack cocaine, and methamphetamine. Also in the bedroom, police found a loaded 9 mm Taurus make semiautomatic handgun with a large capacity magazine. Drugs and drug paraphernalia were in places accessible to a toddler.
While police were conducting the search and interviewing Sloan, his 14-month-old son was in daycare in St. Louis. Daycare workers grew concerned when his son was uncharacteristically sleepy and having trouble breathing. The son was transported to the hospital. Blood tests confirmed that the child had fentanyl and a metabolite of cocaine in his system. Medical professionals successfully treated the child with narcan, a drug that works to counteract the effects of opioid overdoses. The child regained consciousness after being treated with two doses of narcan.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated this case. Assistant United States Attorney Jason Dunkel handled this case for the U.S. Attorney’s Office.
Dominican Republic Citizen Charged with Illegally Reentering the United StatesRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a federal complaint has been filed charging Eilin Castillo-Montano with illegally reentering the United States. According to court documents, authorities received information in May of 2020 that an individual who had previously been deported from the United States was living in a residential neighborhood on St. Thomas. The ensuing investigation revealed that the individual was Eilin Castillo-Montano.
Criminal and immigration records checks confirmed that on April 19, 2016, Eilin Castillo-Montano was removed from the United States by Immigration Officers of the Immigration & Naturalization Service and returned to his native country, the Dominican Republic, following his conviction for possessing a firearm by an illegal alien on August 31, 2015, in the District Court of the United States.
Eilin Castillo-Montano was apprehended by law enforcement on August 10, 2020. According to court documents, he acknowledged that he entered the U.S. Virgin Islands in January of 2020, travelling by boat form Tortola, British Virgin Islands to St. John and then to St. Thomas.
A detention hearing was held before the Honorable Ruth Miller on Tuesday August 11, 2020. Castillo-Montano was released to home incarceration, among other conditions.
United States Attorney Shappert reminds the public that a criminal complaint is merely a charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by U.S. Immigration & Customs Enforcement.
District Man Charged with over $2 Million in Paycheck Protection Program and Related Loan FraudRead the Press Release
WASHINGTON – Kenneth Gaughan, 41, of Washington, D.C., was arrested and charged by a criminal complaint, unsealed today, with fraudulently obtaining over $2.1 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”). He used those funds, in part, to purchase a $300,000 yacht, a $1.13 million rowhouse, and a $46,000 luxury sports sedan. Gaughan was also arrested on an indictment unsealed today, charging him for a separate embezzlement scheme relating to his alleged theft of over $472,000 in funds from the Catholic Archdiocese of Washington, D.C. (“ADW”), where he was previously employed as Assistant Superintendent.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge Jennifer Boone of the Federal Bureau of Investigation’s Baltimore Field Office (“FBI”), Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office (“IRS-CI”), and Special Agent in Charge Kevin Kupperbusch of the U.S. Small Business Administration, Office of the Inspector General, Eastern Region (“SBA-OIG”).
The criminal complaint related to the PPP/EIDL loan fraud case was unsealed today as Gaughan has his initial appearance before U.S. Magistrate Judge G. Michael Harvey in the District of Columbia. The complaint charges Gaughan with one count of bank fraud, one count of the theft of government funds, one count of wire fraud, and one count of money laundering. The complaint alleges, through the scheme, Gaughan sought and received approximately $2.1 million in PPP and EIDL loans through applications to SBA lenders on behalf of multiple companies, all falsely purporting to register emotional support animals. Gaughan is alleged to have made false representations to receive the loan funds, including forged paperwork and bank records. Gaughan then used a portion of the loan proceeds to purchase a 2020 Cruisers Yachts 338 CX 33-foot watercraft, a 2020 Kia Stinger, and a rowhouse in Northeast, Washington, D.C. In conjunction with Gaughan’s arrest, the government obtained a warrant authorizing the seizure of the yacht, the Kia Stinger, Gaughan’s investment account, and Gaughan’s bank accounts. The government is also filing a civil forfeiture complaint against a home Gaughan purchased with his fraudulently obtained proceeds and filing a lis pendens on that property.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief 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 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
EIDL is an existing SBA program designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. EIDL provides loan assistance, including up to $10,000 advances, for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds can be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred; however, such loan proceeds are not intended to replace lost sales or profits or for expansion of a business. Unlike certain other types of SBA-guaranteed loans, EIDL funds are issued directly from the United States Treasury and applicants apply through the SBA via an online portal and application.
“We will not tolerate exploitation of this national emergency for personal gain,” said Acting U.S. Attorney Michael R. Sherwin. “This Office will not allow fraudsters to steal taxpayer money intended to help small businesses that are currently struggling as a result of the COVID-19 pandemic.”
“During this time, many businesses are feeling effects of the pandemic. To help businesses make it through, the government offered loans to provide economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue and enable them to keep their workers on the payroll. Unfortunately, there are greedy individuals who choose to abuse these programs in order to enrich their lifestyle,” said Kelly R. Jackson IRS-CI Special Agent in Charge of the Washington DC Field Office. “This conduct will be investigated to ensure crooks are held responsible for stealing this money away from those who were in need.”
“Mr. Gaughan was so emboldened by deceiving a church for eight years he then, allegedly, turned his deception to the government,” said FBI Special Agent in Charge Jennifer Boone, “stealing funds that were meant to be a lifeline for struggling businesses during an unprecedented economic downturn, and greedily using them to satisfy his own materialistic desires. I want to thank the agents for their diligent work in this case.”
“It is unconscionable to fraudulently attempt to gain access to a program aimed at assisting small businesses that are struggling to survive for personal gain and profit,” said SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch. “SBA OIG and its law enforcement will aggressively investigate allegations of fraud involving SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The indictment, also unsealed today before Magistrate Judge Harvey, charges Gaughan with offenses including mail fraud, wire fraud, and money laundering for perpetrating a separate scheme that defrauded ADW of over $472,000. According to the 12-count indictment, Gaughan was employed as an Assistant Superintendent of ADW, headquartered in Hyattsville, Maryland. In that role, Gaughan was responsible for recruiting and acting as the point of contact for contractors who provided various services to ADW. These included contractors that could help ADW implement anti-bullying, crisis intervention, and professional development programs at the approximately 95 Catholic schools overseen by ADW, located in Calvert, Charles, Montgomery, Prince George’s, and St. Mary’s Counties in Maryland, and Washington, D.C. Gaughan also obtained invoices for services from contractors and provided those invoices, along with requests for payment and supporting documentation, to his superiors for approval.
The indictment alleges that beginning in at least June 2010 and continuing through April 2018, Gaughan caused ADW to pay invoices manufactured by Gaughan purportedly for anti-bullying and crisis intervention programs, as well as for software used to send mass messages to ADW’s students and families. To execute the scheme, Gaughan allegedly concealed his ownership and control of three companies, including by submitting forms using an alias and falsely certifying that he did not transact any business with ADW. According to the indictment, Gaughan then transmitted fraudulent invoices for these companies and persuaded ADW to issue checks for services that Gaughan knew the companies did not provide. Gaughan allegedly opened virtual and private mailboxes in order to receive the checks that ADW issued to pay for the fraudulent invoices that Gaughan manufactured and transmitted to ADW officials. The indictment alleges that Gaughan deposited the checks issued by ADW into the bank accounts he controlled, and converted the money to his personal use.
The charges in the complaint and the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This matter was investigated by the FBI, IRS-CI, and the SBA-OIG. Assistant U.S. Attorney Christine Macey of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia and Assistant U.S. Attorneys Greg Bernstein and Jessica Collins of the U.S. Attorney’s Office for the District of Maryland are investigating and prosecuting the case, supported by Paralegal Specialist Quiana Dunn-Gordon. Assistant U.S. Attorney Arvind Lal and Special Assistant U.S. Attorney Steven Brantley are handling the seizure and forfeiture matters.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline by phone at 202-252-7022 or by email at [email protected].
D.C. Woman Arrested for Stealing More Than $100,000 of Donor Checks from a Local Non-Profit OrganizationRead the Press Release
WASHINGTON – Maxine Williams, 48, of Washington, D.C., was presented today in federal court on a one-count criminal complaint charging her with interstate transportation of stolen property stemming from the theft of more than $100,000 of donor checks from a local non-profit organization, announced Acting U.S. Attorney Michael R. Sherwin, U.S Postal Inspector-in-Charge for the Washington Division, Peter Rendina, and Metropolitan Police Department Chief Peter Newsham.
The affidavit in support of the criminal complaint alleges that Williams was employed as an administrative assistant by a non-profit organization in the District of Columbia between February 2015 and March 2018. Her job included performing clerical tasks, such as opening mail; processing donation checks; and preparing and mailing checks from the organization to vendors, service providers, and individuals. In March 2018, after the non-profit organization became aware that six donation checks totaling approximately $18,000 had been stolen, it confronted Williams, who admitted to depositing four checks into her Bank of America account. A subsequent investigation revealed that approximately 123 checks payable to the non-profit organization were deposited into Williams’ Bank of America account from approximately February 2016 through December 2017. Those checks totaled $110,830. The investigation also revealed that between approximately November 2015 and May 2016, an additional 21 checks payable from the non-profit organization to individuals and/or a vendor in amounts totaling $11,702 were deposited into Williams’ account.
The defendant was presented today before United States Magistrate Judge Robin M. Meriweather in the United States District Court for the District of Columbia. A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
The case was investigated by the U.S. Postal Inspection Service’s Washington Division and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Kondi Kleinman.
Convicted Impersonator Arrested for Defrauding Elderly Victims, Impersonating Federal and Territorial Officials, and Obstruction of JusticeRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a federal complaint has been filed charging Yamini Potter with eighty counts of wire fraud, two counts of impersonating a federal judge, obstruction of justice in violation of federal law, two counts of acting in assumed character, and one count of grand larceny in violation of Virgin Islands law.
According to the affidavit filed in this case, between May 2019 and July 2020, Potter received over $100,000 from the victims, at least one of whom is elderly, for purported legal fees associated with a lawsuit filed against the United States. Potter claimed he could assist the victims with a lawsuit to obtain a money judgment and return of one of the victim’s medical licenses. Investigators located no such lawsuit anywhere in the United States. Potter is not a licensed attorney in any jurisdiction in the United States.
Initially, Potter claimed to be the son of former Lt. Governor Osbert Potter. According to court documents, Yamini Potter is not Osbert Potter’s son. The affidavit alleges that Potter used this supposed familial connection to influence his victims to pay money for the alleged lawsuit and claimed that the victims could expect to recover millions of dollars. The affidavit further alleges that, Potter also impersonated Osbert Potter, former federal District Judge Curtis Gomez, federal Magistrate Judge Ruth Miller, and Virgin Islands Attorney General Denise George for fraudulent purposes. According to the affidavit, Potter telephoned his victims pretending to be various people, including himself, while he was detained in the Virgin Islands Bureau of Corrections, pending charges in the Virgin Islands Superior Court. All of his calls were recorded. Potter also allegedly sent text messages to the victims as part of his fraudulent scheme, and in at least one case, tried to persuade the victims to destroy text messages he sent to them.
According to court documents, Potter pled guilty in 2015 to impersonating an FBI agent in violation of federal law. He was sentenced to one year in prison.
This case is being investigated by the Federal Bureau of Investigation, the Virgin Islands Police Department, and the Virgin Islands Bureau of Corrections. It is being prosecuted by Assistant United States Attorney Alessandra P. Serano.
United States Attorney Gretchen C.F. Shappert encourages anyone, and especially elderly victims, who may be a victim of fraud – or of any other crime - to come forward and make a report to the FBI at (340) 777-3363. U.S. Attorney Shappert also reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
For more information on the Department of Justice’s Elder Justice Initiative, please see: https://www.justice.gov/elderjustice .
Co-Owner of Commercial Cleaning Service Admits Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – The co-owner of a commercial cleaning company in Bergen County, New Jersey, today admitted evading more than $300,000 in tax payments by cashing checks at a commercial check cashier, paying employees off-the-books cash wages, and failing to report all his income, U.S. Attorney Craig Carpenito announced.
Peter Jamgochian, 53, of Paramus, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to Count One of an information charging him with subscribing to false corporate tax returns.
According to documents filed in this case and statements made in court:
Jamgochian was a co-owner of a commercial cleaning company in Hackensack, New Jersey. His duties included managing company payroll and interacting with the company’s accountant.
In 2013 and 2014, Jamgochian cashed over $2 million in check payments received from the company’s customers at a commercial check cashier. He then used the cash to pay off-the-books cash wages to his employees and kept a portion for himself. Jamgochian hid these cashed checks from the IRS by not disclosing this information to the company’s accountant. After the accountant prepared the corporate taxes, Jamgochian signed these false corporate returns under penalty of perjury, knowing that they were false.
Jamgochian caused the company to underpay $248,936 in Medicare and Social Security taxes. He also understated his personal income received from the company, causing an additional tax loss to the IRS of $76,201.
The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is currently scheduled for Dec. 16, 2020.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Frank Agostino Esq., Hackensack, New Jersey
Chesapeake Doctor Pleads Guilty to Unlawful Drug DistributionRead the Press Release
NORFOLK, Va. – A Chesapeake doctor pleaded guilty today to distribution of amphetamine.
According to court documents, Lopito Bugarin, 65, was a medical doctor with a practice in Chesapeake. From 2016 until 2019, Bugarin would write prescriptions without administering a medical exam. Bugarin would also write prescriptions for Adderall and Oxycodone in multiple names and give them to a single patient. For example, Bugarin would write prescriptions for a patient and for a friend or family member of the patient who had not seen Bugarin that day. Bugarin also provided prescriptions to patients for Schedule II controlled substances without ever seeing the patient, even during time periods where Bugarin was out of town.
Bugarin faces a maximum penalty of 20 years in prison when sentenced on Feb. 2, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Kevin P. Hudson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-25.
Buffalo Man Arrested, Charged with Threatening to Kill an Individual on Social MediaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Samuel Mara, 24, of Buffalo, NY, was arrested and charged by criminal complaint with posting a video on Facebook threatening to injure or kill another person. The charge carries a maximum penalty of five years in prison and a $250,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the complaint, on June 6, 2020, the FBI and New York State Police began investigating a two (2) hour and ten (10) minute live stream video posted on Facebook Live. The video, apparently taken in front of the Buffalo Police Department -- C District Station, was live streamed by an individual identified as A.M., a close associate of Samuel Mara. In the video, a crowd is peacefully protesting, and at times, A.M. is heard commenting in the video. Defendant Mara is also seen sporadically throughout the video. Approximately 45 minutes into the video, several members of the crowd begin shouting, “hey hey, ho ho, [Victim 1] has got to go.”
Facebook users watching the live stream video posted comments, including information about a purported KKK rally which was allegedly scheduled to take place in downtown Buffalo on the following day. A.M. and defendant Mara are then heard discussing the rally. Mara can be heard saying: “Listen…what they’re gonna do is, they’re gonna drive themselves crazy outta’ all the overwhelming fear and one of them is (inaudible) gonna hurt us or kill us and that’s gonna start (inaudible) and then we gonna do whatever the (expletive) we want. It will happen, we are in power. They are scared. They will act off impulse and they will try to kill us, when they do that. Then they will all die. We will kill them all. I will personally kill [Victim 1].”
According to investigators, the defendant made multiple threatening posts on social media accounts he controlled, including:
• On June 16, 2020, Mara posted on Facebook: “Hey slave (redacted social media name known to law enforcement).. I’ll be at the Niagara Square today around 2-3 for a few hrs, if you or [Victim 1] the ROBOT wanna talk to me MAN to MAN then come see ME, we can do it without cameras as well idc.”
• On June 18, 2020, Mara posted a photo on Instagram of an apparent reddish-brown handprint on the McKinley Monument in Niagara Square. The text below the photo read, “samplicitybrand MY blood (syringe icon) MY kingdom (crown icon).” Mara tagged the social media accounts of [Victim 1], the Buffalo Police Department, the Governor of New York State, and A.B., a Buffalo Police Officer.
• Also on June 18, 2020, Mara posted a video on Instagram of himself sitting on the McKinley monument. The text across the video read, “Come take me off MY throne.. I dare you.” During the video, Mara shows a large reddish-brown stain between his feet and says, “That’s my blood.” The defendant then shows a reddish-brown handprint on the monument and states, “That’s my (expletive) hand.” Mara then returns the camera to show his face and states, “Do something about it, take me down. Come here right now, take me down, and come take me off this (expletive).”
• In a June 24, 2020, post on Twitter, which included a screenshot from the social media account of [Victim 1], Mara listed the phone number for the Buffalo Employment Training Center. The text above the photograph read, “I will haunt you for the rest of your life; I already know I am in your soul. Now I will get deeper and deeper. My anger is inexplainable and you will FEEL it.”
• Mara posted a second Tweet on June 24, 2020, which read, “You really got me angry now bra.. you made the WORST decision you could’ve possible made, y’all NEVER try this shit when I’m here.” In that post, the defendant tagged the social media accounts of [Victim 1], the Buffalo Police Officer A.B., and the Buffalo Police Department.
• On June 25, 2020, Mara posted a 37 second video on Instagram showing several individuals from the middle of the street. Police officers are seen facing the crowd as [Victim 1] is walking down the street to a parked car. The defendant is seen with a backpack on walking towards [Victim 1], getting within a several feet of [Victim 1]. A police officer is then seen preventing Mara from approaching and getting any closer. The text below the video read, “samplicitybrand IS THIS YOUR KING???” The Buffalo Police Department was tagged in the post.
• On July 3, 2020, Mara posted four photos of [Victim 1] on Twitter. One photograph showed [Victim 1] wearing a suit and shaking hands with an individual. Another photograph, apparently from a different event, shows [Victim 1] wearing a t-shirt and baseball hat hugging an individual. The text above the photographs read, “Lol really? I know that YOU know MOST ppl won’t see this and see the DIRECT hidden message you’re sending to racists… you really holding a blue lives matter flag man I’m showing you ZER0 mercy when the time comes.. you continue to make me angry.” Victim 1 was tagged in the post.
• The following day, on July 4, 2020, Mara posted a 28 second video on Instagram taken from the sidewalk filming up the driveway of Victim 1’s residence. The defendant commented, “gotta be quicker than thaaat (first name of [Victim 1]).” Mara can also be heard shouting, “yo (first name of [Victim 1]). Can we talk?” At that time, Mara points the camera up the driveway and zooms in on Victim 1 who can be seen standing in the driveway carrying a recycling bin.
• On July 5, 2020, the defendant posted on Snapchat a text which read, “Your son’s soul is next.. warn him.” Another post appears to be a screen capture from a Facebook Messenger direct message conversation between Mara and Victim 1’s son. The text reads:
Sammy Jay: I want your soul
Sammy Jay: Give it to me or I’ll take it from you, thru your eyes.
Sammy Jay: A screenshot of Mara’s feet from the McKinley Monument with the reddish-brown stain on June 18, 2020.
Sammy Jay: That’s my hand.. come do something about it since your father isn’t man enough.On July 15, 2020, Mara posted a 17 minute video on Facebook showing the driveway of his residence. Text for the video read, “COPS HERE!!!!!!” Buffalo Police Officers are seen standing in the driveway of the residence, along with members of Erie County Crisis Services who are attempting to speak with Mara. The defendant is agitated and can be heard accosting the individuals. At one point in the video, Mara is walking towards one of the police officers and says, “little (expletive) gun too, lucky I don’t take that shit.” The defendant tells the individuals repeatedly that he will not answer to his name, he will only speak to them if they refer to him as, “King Caeser.” Mara was admitted to ECMC where he remained until July 27, 2020. The defendant began uploading new content on social media in the afternoon of July 27, 2020.
On July 18, 2020, the office of Victim 1 was notified by ECMC of a potential threat against his or her person.
On July 29, 2020, Mara posted on Instagram: “No Mercy Buffalo Police Department [Victim 1].” The text was linked directly to the Buffalo Police Department’s official Facebook page and [Victim 1]’s official Facebook page.
“Much as an act of violence is not a Constitutionally protected form of protest, an actual threat of violence is not a Constitutionally protected form of speech,” stated U.S. Attorney Kennedy. “As alleged in the criminal complaint, the defendant’s actions here crossed the line from protected speech to prosecutable conduct.”
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was held pending a detention hearing on August 12, 2020, at 10:30 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
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Bucks County Man Charged with Distribution of Child PornographyRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Patrick Shaknitz, 29, of Croydon, PA, has been arrested and charged by Complaint with one count each of distribution and attempted distribution of child pornography. These charges arise out of the defendant’s alleged distribution of images and videos of child pornography to others, including undercover federal agents, over the Internet.
According to the Complaint, beginning in November 2019, undercover federal agents exchanged private messages with a user identified as “intoeverything1991,” who distributed images and videos containing child pornography. One such video depicts an adult female in a dark blue face mask molesting a minor child. During chats with the agents, the same user described in explicit detail how he abused other children. Subpoenas issued for “intoeverything1991” revealed an IP address and other identifying information allegedly belonging to Shaknitz.
“As alleged in the Complaint, Shaknitz is a depraved abuser of children who multiplied the impact of that abuse by sharing images of it over the Internet,” said U.S. Attorney McSwain. “These children will have to deal with the impact of this abuse for the rest of their lives. We can never make them fully whole again, but we can bring them some measure of justice by investigating and prosecuting the people responsible for stealing their innocence.”
“The distribution of child pornography results in the continued sexual exploitation of innocent children,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “That’s what pushes the FBI to keep investigating these disturbing but important cases. Protecting kids is paramount and we’ll never give up that fight.”
If convicted, Shaknitz faces a statutory maximum sentence of 20 years’ incarceration with a 5-year mandatory minimum sentence of imprisonment, a lifetime of supervised release, and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Kathryn Deal.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Anson County Man Is Sentenced to More Than 13 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – On Monday, August 10, 2020, U.S. District Judge Frank D. Whitney sentenced Jeremy McQuage, 41, of Morven, N.C. to 160 months in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Morven was also ordered to serve a lifetime of supervised release, and to register as a sex offender after he completes his prison term.
Joining U.S. Attorney Murray in making today’s announcement is John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
On December 18, 2019, McQuage pleaded guilty to distribution, receipt and possession of child pornography. According to court documents and today’s sentencing hearing, in February 2019, over the course of an investigation into BitTorrent peer-to-peer file sharing network, the FBI discovered that an individual, later identified as McQuage, was downloading child pornography, including videos and images of infants being sexually abused. On March 14, 2019, the FBI executed a search warrant at the residence where the internet had been used to access and download the child pornography. While there, FBI agents learned that McQuage did not reside there but would often park in the driveway of the residence and use the wifi to connect to the internet. FBI agents located McQuage and seized his cellular phone. A forensic analysis of the device revealed that McQuage possessed hundreds of images and videos of children, including infants and toddlers, being sexually abused. According to court records, in addition to downloading child pornography, McQuage also used BitTorrent to distribute and share the child pornography with others.
In announcing today’s sentence, Judge Whitney said that the court was troubled by the quantity and the gravity of the images and videos, and that McQuage’s conduct helped feed and facilitate a global market of abuse. Judge Whitney noted that the victimization of the minors in the videos and images was extraordinary and that the lengthy sentence was needed to deter others from committing similar crimes.
McQuage is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The case was investigated by the FBI. Assistant U.S. Attorney Emily Wasserman and Special Assistant U.S. Attorney Stephanie Spaugh prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and 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.
Akron man sentenced to more than 16 years after convictions of possession with intent to distribute cocaine and possession of firearms as a felonRead the Press Release
U.S. Attorney Justin Herdman announced today that Jaquar Keyshore Latimer, age 43, of Akron, was sentenced by Judge Sara Lioi to 199 months imprisonment after being found guilty during a trial by jury of possession with intent to distribute cocaine and possession of firearms as a convicted felon on August 23, 2019.
“This defendant has spent the majority of his adult life dealing drugs and illegally possessing firearms,” said U.S. Attorney Justin Herdman. “Violent crime and felonious assaults with a firearm are on the rise in cities like Akron and throughout Northern Ohio. We must send a strong message to the community and career-criminals that illegally possessing a stolen firearm or having a firearm with felony convictions will result in many years and months in federal prison.”
“As stated by U.S. Attorney Herdman, Latimer has spent most of his adult life spreading violence and addiction,” stated Roland Herndon, ATF’s Special Agent in Charge for the Columbus Field Division. “This lengthy sentence will ensure that he does not have the opportunity to continue to terrify and intimidate the Akron community.”
According to court documents, in December of 2017, Latimer was on supervised release from federal prison after serving a sentence for a conviction of felon in possession of a firearm. On February 9, 2018, officers with the Ohio Parole Authority conducted a home visit at the residence where Latimer resided. When APA officers entered the home, they found Latimer walking within a few feet of a firearm on a couch.
Court documents state that Akron Police Department officers arrived on the scene and assisted with searching the home. During the search, law enforcement officers discovered 11 grams of cocaine, more than $1,000 in cash, and three firearms: a 9mm automatic handgun, which had been reported stolen; a loaded .380 caliber, semi-automatic handgun; and a loaded .357 caliber revolver. Latimer was prohibited from possessing a firearm due to previous convictions of being a felon in possession of a firearm, sexual battery, aggravated assault, and drug possession.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department and was prosecuted by Assistant U.S. Attorneys Brendan D. O’Shea and Mark S. Bennett.
Monday 10 August 2020
Weston Man Pleads Guilty to Wire Fraud in International Student Recruitment SchemeRead the Press Release
BOSTON – A Weston man pleaded guilty today in connection with a scheme to defraud private high schools and international students of millions of dollars in tuition and other fees.
Keenam “Kason” Park, 59, of Weston, pleaded guilty to one count of wire fraud before U.S. Senior District Court Judge Mark L. Wolf, who scheduled sentencing for Nov. 2, 2020. According to the terms of the plea agreement, the government will recommend a sentence of 51 months in prison, two years of supervised release and a fine and restitution/forfeiture of at least $5,192,330. Park was charged in November 2019.
Park caused EduBoston to collect tuition and other payments from students’ families for the 2019-2020 academic year but failed to remit tuition payments to partnering schools. Instead, Park used the funds on unrelated expenses, including personal expenses. Park also caused EduBoston to collect advance tuition and other payments for the 2020-2021 academic year, which Park failed to return to the students’ families after EduBoston went out of business around September 2019. As a result, EduBoston owes over $5 million to partnering schools.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Leslie A. Wright of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.
West Virginia Doctor Found Guilty of Unlawfully Distributing OpioidsRead the Press Release
A federal jury found a West Virginia doctor guilty today of unlawfully distributing opioids to his patients. The defendant was charged in a September 2019 indictment as part of the second Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown, a coordinated effort by the Justice Department’s Fraud Section to target unlawful drug diversion activities in areas of the country particularly hard-hit by the opioid epidemic.
Following a six-day trial, Ricky L. Houdersheldt, D.O., 68, of Hurricane, West Virginia, was found guilty of 17 counts of distribution of controlled substances outside the scope of professional practice and without a legitimate medical purpose. Sentencing is scheduled for Nov. 23, 2020, before U.S. District Judge Robert C. Chambers of the Southern District of West Virginia, who presided over the trial.
According to the evidence presented at trial, Houdersheldt prescribed hydrocodone, morphine, fentanyl, oxycodone, acetaminophen codeine phosphate, and diazepam to three patients which were outside the usual course of professional practice and without a legitimate medical purpose. Evidence at trial established that Houdersheldt prescribed more than 150 opioid pills to one female patient in an effort to establish a sexual relationship and companionship with her, and that in many instances he would meet her in parking lots – rather than at his medical office – to provide the prescriptions for these drugs. Evidence at trial also showed that Houdersheldt did not record these prescriptions in the female patient’s patient file for some of these unnecessary opioid prescriptions, and that many patients became addicted to the drugs as a result of Houdersheldt’s criminal conduct.
The evidence further established that for one of the patients, Houdersheldt prescribed more than seven times the dosage of opioid drugs recommended by the Centers for Disease Control, and that he commonly prescribed this patient the dangerous combination of morphine and the powerful opioid fentanyl.
The DEA, along with the Hurricane, West Virginia Police Department, investigated the case. Assistant Chief Kilby Macfadden and Trial Attorney Andrew B. Barras of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing approximately 50 million pills. Thus far there have been 30 guilty pleas as a result of ARPO Strike Force’s efforts. The ARPO Strike Force is part of the Medicare Fraud Strike Force Program, led by the Fraud Section. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Union County Men Indicted for Violent Robbery SpreeRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted two Union County, New Jersey, men for allegedly committing multiple armed robberies from August 2018 through February 2019, U.S. Attorney Craig Carpenito announced.
Jaime Fontanez, 43, and Vincent Chan-Guillen, 30, both of Elizabeth, New Jersey, are charged in a 13-count indictment with conspiracy to commit Hobbs Act robbery, multiple counts of Hobbs Act robbery, as well as brandishing and discharging a firearm during the commission of a crime of violence. Fontanez and Chan-Guillen will be arraigned at a date to be determined. Both men were previously arrested on a criminal complaint for this conduct on Feb. 21, 2019.
According to documents filed in this case and statements made in court:
From August 2018 through February 2019, Fontanez and Chan-Guillen conspired with each other, and others, to commit robberies in Bronx and New York counties in New York and Union, Middlesex, and Essex counties in New Jersey. The conspirators targeted convenience and liquor stores. After entering the business, one of the conspirators pointed a firearm at the store clerk while another conspirator went behind the counter to steal money from the cash register. On one occasion, Chan-Guillen discharged a firearm into the liquor store. That firearm was subsequently discovered in Chan-Guillen’s possession.
The Hobbs Act charges each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. The discharging of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine, or twice the gross gain or loss from the offense.
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 the charges. He also thanked the U.S. Attorney’s Office for the Southern District of New York, under Acting U.S. Attorney Audrey Strauss, for their assistance with this case and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca; the Rahway Police Department, under the direction of Chief John Rodger; the Woodbridge Police Department, under the direction of Director Robert Hubner; the Bloomfield Police Department, under the direction of Public Safety Director Samuel A. DeMaio; the Linden Police Department, under the direction of Chief David Hart; the Kenilworth Police Department, under the direction of Chief John Zimmerman; the Township of Union Police Department, under the direction of Director Dan Zieser; the N.J. State Police, under the direction of Col. Patrick J. Callahan; and the New York City Police Department, under the direction of Commissioner Dermot Shea for their work on this case.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Philadelphia Men Indicted for Brazen Armed Robbery of Armored Truck and Shootout in University CityRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jerry Collins, 40, and Tyree Lamont Holmes, 28, both of Philadelphia, PA, were indicted for armed robbery of a Garda armored truck on the 3500 block of Market Street in the University City section of West Philadelphia just over one year ago.
According to the indictment, on August 1, 2019, at approximately 10:00 a.m., Holmes and a second unidentified suspect, both wearing masks and gloves, one armed with a loaded Glock 17 semi-automatic handgun and the other with a loaded assault rifle with an attached drum-style magazine, exited a Chevy Trailblazer that was parked behind a Garda armored truck. As one of the guards removed three black bags containing a total of $434,000 cash, Holmes and his accomplice approached the guard, pointed their firearms at him and announced a robbery while Collins waited in the driver’s seat of the getaway vehicle, the Trailblazer. Holmes allegedly grabbed the bags of money and attempted to get back into the vehicle when two guards drew their firearms and began shooting at the fleeing robbers, who fired back. During the shootout, Holmes dropped the bags of money on the ground and fled on foot while the second robber got into the Trailblazer with Collins and fled the scene.
Collins was arrested by the FBI on August 7, 2020; Holmes was arrested by the Philadelphia Police Department on February 18, 2020. Both defendants were indicted for conspiracy to commit Hobbs Act robbery, robbery which interfered with interstate commerce, and using, carrying and brandishing a firearm during and in relation to a crime of violence. Holmes is detained pending trial; the Government has moved to detain Collins, as well, who will appear in federal court for his detention hearing tomorrow, August 11, 2020.
“Robbing any type of business – especially a brazen armed robbery of an armored vehicle in broad daylight – is a serious federal offense that can carry stiff penalties,” said U.S. Attorney McSwain. “And here, the alleged robbery precipitated a shootout on a busy city block that endangered many innocent bystanders. It is remarkable that nobody was struck and killed. This type of criminal behavior is completely unacceptable and my Office is focused on rooting it out.”
“This was a risky armed robbery carried out on a dense and active block in University City,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The robbery crew showed up armed to the teeth to accost Garda personnel, prompting a barrage of gunfire. Holmes, Collins, and their accomplices put countless innocent people in danger by allegedly planning and carrying out this daylight gunpoint heist. It’s imperative all involved are held accountable, both to keep them off the street and send a message to anyone else who may contemplate such a dangerous assault on our community.”
Each defendant faces a maximum term of life imprisonment with a mandatory minimum term of seven years’ imprisonment without the possibility of parole, up to five years of supervised release, and a $750,000 fine. Committing a violent crime in the Eastern District of Pennsylvania carries a tremendous risk of a long prison sentence, which is the message of the Office’s new anti-violence public awareness campaign.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the University of Pennsylvania Police Department, and is being prosecuted by Assistant United States Attorney José Arteaga.
Two Men Indicted on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that two St. Francis, South Dakota, men have been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Charles Little Elk, III, a/k/a Charlie Little Elk, age 37, and Todd Eastman, Jr., age 32, were indicted on July 16, 2020. They appeared before U.S. Magistrate Judge Mark A. Moreno on August 6, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 10 years, up to life in prison and/or a $10,000,000 fine, at least 5 years, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that a conspiracy began on or about January 1, 2015, and continued to on or about January 17, 2017, where Little Elk and Eastman knowingly and intentionally conspired to distribute and possess with intent to distribute 500 grams or more of methamphetamine on the Rosebud Indian Reservation.
The charges are merely accusations and Little Elk and Eastman are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Little Elk and Eastman were released on bond pending trial. A trial date has not been set.
Two Felons Indicted for Stealing Explosive Materials from Mining CompanyRead the Press Release
LAS VEGAS, Nev. —Two Las Vegas residents made their initial court appearance on Friday, August 7, 2020, on charges for allegedly stealing explosive materials from a mining company in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
A federal grand jury returned an indictment on July 29, 2020, charging Sergio Bautista, aka “Ismael Cuevas-Flores,” 34, and Eric Golden, 54, each with one count of conspiracy to steal explosive materials; one count of theft of explosive materials moved in interstate commerce; one count of theft of explosive materials from licensee or permittee; one count of felon in possession of explosives; and one count of possession of stolen explosives. A jury trial has been scheduled before U.S. District Judge James C. Mahan on September 28, 2020.
According to the indictment, from about May 12 to May 13, 2020, Bautista and Golden conspired to steal and did steal a 50 pound bag of ammonium nitrate fuel oil (an industrial explosive) and 18 one-kilogram sticks of ammonium nitrate from Hinton Mining LLC.
Both Bautista and Golden are convicted felons. Bautista’s prior felony convictions include possession of a controlled substance with intent to distribute, identity theft, forgery, and unlawful possession of a controlled substance. Golden’s prior felony convictions include trafficking in a controlled substance, unlawful possession of a controlled substance, and conspiracy to commit grand larceny.
The statutory maximum sentence for each count of the indictment is 10 years in prison and a $250,000 fine, a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The 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 Las Vegas Metropolitan Police Department and ATF. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case.
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Twice Convicted Felon Indicted by A Federal Grand Jury for Possessing A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that a federal grand jury has returned an indictment charging Ernest Green, a/k/a Fire, 37, of Buffalo, NY, with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment and evidence presented by the Government at the defendant’s arraignment today before U.S. Magistrate Judge Jeremiah J. McCarthy, on July 26, 2020, Green drove a vehicle through the Towne Gardens Housing Complex and opened fire with a gun. The defendant then crashed the vehicle into a tree, got out, and ran. Green was seen on video running in an easterly direction, and the firearm he allegedly used in the shooting was found five blocks east of where it occurred.
In November 2004, Green was convicted of a felony in Erie County Court. In October 2010, Green was convicted of a felony in New York State Court. As a result of those convictions, he is legally prohibited from possessing a firearm.
The government requested that Green be detained and he is being held pending a decision by Judge McCarthy on the government’s request.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Thief River Falls Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of a federal indictment charging BENJAMIN JOSEPH ROGGENBUCK, 38, with production, attempted production, distribution, and possession of child pornography. ROGGENBUCK made his initial appearance today before Magistrate Judge Elizabeth Cowan Wright in U.S. District Court in St. Paul, Minnesota. ROGGENBUCK was ordered to remain in custody pending further proceedings.
According to the allegations in the indictment, between at least February 12, 2020, and February 20, 2020, ROGGENBUCK used or attempted to use two prepubescent minor children to produce visual depictions of sexually explicit conduct. The indictment also alleges that ROGGENBUCK knowingly distributed pornography depicting a prepubescent minor child. The indictment further alleges that ROGGENBUCK knowingly possessed other pornography depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Thief River Falls Police Department.
Assistant U.S. Attorneys Chelsea A. Walcker and Miranda E. Dugi are prosecuting the case.
Defendant Information:
BENJAMIN JOSEPH ROGGENBUCK, 38
Thief River Falls, Minnesota
Charges:
- Production and attempted production of child pornography, 2 counts
- Distribution of child pornography, 1 count
- Possession of child pornography, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
South Georgia cocaine trafficker sentenced to 30 years in federal prisonRead the Press Release
ATLANTA - Alfonzo Jamal Lewis has been sentenced to 30 years in federal prison for trafficking five kilograms of cocaine in 2015.
“Illegal drugs destined to poison communities in southwest Georgia were stopped by our federal and state law enforcement partners,” said U.S. Attorney Byung J. “BJay” Pak. “Their outstanding work resulted in the seizure of a half-million dollars’ worth of cocaine and a lengthy term of imprisonment for a career drug dealer.”
“This investigation is indicative of cooperative federal, state, and local law enforcement efforts to rid our communities of this poison,” said Dan Salter, Executive Director, Atlanta-Carolinas HIDTA.
“This is another example of how partnerships benefit citizens by removing illegal drugs from our streets. It is critical that we continue to collaborate to keep dangerous drugs away from children and families. Fulton County Sheriff’s deputies are dedicated to this important duty and we are grateful to the U.S. Attorney’s Office for its unwavering commitment to this cause,” said Fulton County Sheriff Theodore “Ted” Jackson.
According to U.S. Attorney Pak, the charges and other information presented in court: On multiple occasions in late 2015, Lewis traveled from southwest Georgia to the Atlanta metro area and purchased bulk amounts of cocaine. He then took the cocaine back to the Albany, Georgia area to sell. On August 20, 2015, HIDTA agents observed Lewis entering and exiting a drug stash house in Decatur, Georgia, but did not attempt an arrest.
Four months later, on December 14, 2015, agents observed Lewis entering and exiting a drug stash house in East Point, Georgia. The Fulton County Sheriff’s Office and Georgia State Patrol stopped Lewis’s vehicle for speeding while Lewis was traveling back to Albany from East Point. A deputy sheriff recovered five kilograms of highly-pure cocaine from the backseat and arrested Lewis.
A federal grand jury charged Lewis with conspiracy to possess cocaine with intent to distribute and possession of cocaine with intent to distribute. After a three-day trial, Lewis was convicted on February 5, 2020 of both charges.
Alfonzo Jamal Lewis, a/k/a Pookie, 35, of Albany, Georgia, was sentenced on August 4, 2020, to 30 years in prison to be followed by ten years of supervised release.
The Atlanta-Carolinas HIDTA and Fulton County Sheriff’s Office investigated this case. The Georgia State Patrol, Georgia Bureau of Investigation, Monroe Police Department, Albany Police Department, and U.S. Marshals Service provided valuable assistance.
Assistant U.S. Attorney Theodore S. Hertzberg and former Emory Law School Extern Joseph N. Lenoff prosecuted the case.
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.
Sioux Falls Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Adam Michael Tanner, age 47, was sentenced to 144 months in federal prison, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Tanner was indicted by a federal grand jury on September 10, 2019. He pled guilty on May 19, 2020.
The conviction stemmed from a conspiracy that occurred between March 1, 2018, and September 10, 2019, in which Tanner and others, intentionally distributed over 1400 grams of methamphetamine in and around the Pierre and Ft. Pierre communities. During the conspiracy, Tanner and others routinely carried firearms to protect their product.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Division of Criminal Investigation, the Pierre Police Department, the Stanley County Sheriff’s Office, the South Dakota Highway Patrol, and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Tanner was immediately turned over to the custody of the U.S. Marshals Service.
Rockford Man Sentenced to More Than 17 Years in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard on federal charges of drug trafficking and possessing a firearm in furtherance of drug trafficking.
ANTWAN D. MANLEY, 27, was sentenced to 154 months in prison on the drug trafficking charge and 60 months on the firearm charge, to be served consecutively, for a total sentence of 17 years and ten months in federal prison.
Manley pleaded guilty on Nov. 27, 2019, to one count of possessing with intent to distribute heroin, cocaine base, and marijuana, and one count of possessing a firearm in furtherance of a drug trafficking offense. In the written plea agreement, Manley admitted that on Jan. 11, 2018, he possessed in a vehicle approximately 21 baggies of heroin, 24 baggies of marijuana, and a bag of cocaine base in the form of crack cocaine. Manley admitted that he also possessed in the same vehicle a loaded, black Beretta 9mm pistol that previously had been stolen, as well as approximately $6,950 in drug trafficking proceeds, four cell phones, a digital scale, and a box of latex gloves. Manley admitted that he intended to distribute the heroin, crack cocaine, and marijuana to street-level users, and that he possessed the loaded pistol to protect himself, his drug inventory, and his drug trafficking proceeds from individuals who may attempt to rob him of the drugs or money, including customers and rival drug dealers. Manley also admitted that he had distributed heroin to an individual cooperating with law enforcement on two occasions in November and December 2017.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Chief of the Rockford Police Department. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above agencies as well as the Loves Park and Freeport Police Departments. The Winnebago County Sheriff’s Office also assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
Rochester Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Wehs, 24, of Rochester, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve eight months home confinement and eight years supervised release by U.S. District Judge Elizabeth A. Wolford. The defendant will also have to register as a sex offender.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that members of the FBI’s Child Exploitation Task Force executed a search warrant on September 18, 2019, at the defendant’s residence in Rochester following a cybertip from an online social media company. The tip indicated that an account holder had uploaded an image of child pornography using the company’s messaging application. Investigators ultimately traced the child pornography to Wehs’ Rochester apartment. The defendant’s computer was seized and a preliminary review recovered multiple images and videos of child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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Rapid City Woman Sentenced for Making False Statements to Receive Government FundsRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of two counts of False Statements was sentenced on August 3, 2020, by Jeffrey L. Viken, U.S. District Judge.
Jolenta Apodaca, f/k/a Jolenta American Horse, age 44, was sentenced to 6 months’ custody, followed by 2 years of supervised release, and ordered to pay restitution of $26,920 to the Social Security Administration (SSA) and $4,713 to the South Dakota Department of Social Services (SD DSS). Apodaca was also ordered to pay $200 in special assessments to the Federal Crime Victims Fund.
Apodaca was indicted on January 22, 2020, for Theft of Government Funds, two counts of False Statements, and Misuse by a Representative Payee.
The Rapid City SSA Field Office was notified by a third party that she went to the SD DSS to apply for state benefits for Apodaca’s child, who had been living with the third party for several years. SD DSS notified the third party that the child was a Title XVI Supplemental Security Income (SSI) beneficiary. The third party advised SSA she was unaware the child was a SSI beneficiary and reported that she received no funds from Apodaca or SSI for the care of the child. The third party also reported that Apodaca’s child had not lived with Apodaca for several years.
The Sioux Falls Cooperative Disability Investigation Unit (CDIU) corroborated that Apodaca, as the child’s SSA approved Representative Payee (RP), had misused dedicated SSI funds (back payments) as well as monthly SSI payments, and had spent the funds on herself rather than her child. Additionally, CDIU corroborated that Apodaca misused $4,713 in Supplemental Nutrition Assistance Program (SNAP) benefits payable to the child.
Pursuant to the CDIU investigation, SSA determined that from September 1, 2016, through August 31, 2019, Apodaca misused $26,920 in Title XVI SSI benefits to which she was not entitled.
This case was investigated by the Office of the Inspector General – Social Security Administration. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Pittsburgh Felon Sentenced to Prison for Illegal Gun PossessionRead the Press Release
PITTSBURGH, Pa. – Reginald Milligan was sentenced to 37 months in prison for possessing a firearm after a prior felony conviction, United States Attorney Scott W. Brady announced today.
Milligan, age 28 of Pittsburgh, was sentenced by United States District Judge Cathy Bissoon. Judge Bissoon also sentenced Milligan to three years of supervised release upon the completion of his prison sentence.
Milligan unlawfully possessed a stolen and loaded 9mm pistol, and 10 heroin/fentanyl stamp bags, inside his car in Pittsburgh during the early morning of January 19, 2019. B y that date, he had already been convicted of committing three felony crimes in prior state prosecutions between 2013 and 2015. The felony crimes were possession with intent to deliver heroin, carrying a firearm without a license, and person not to possess a firearm.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Investigation, and the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the conviction and sentence in this case. This case was prosecuted as part of Project Safe Neighborhoods (PSN) which 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.
Pembroke Woman Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD - Nadine Jacques, 46, of Pembroke, pleaded guilty in federal court on Friday to methamphetamine trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in February and March of 2020, a cooperating individual made four controlled purchases of methamphetamine from Jacques in Suncook, Concord, and Dover, New Hampshire.
Agents conducting surveillance at the final purchase on March 4, 2020, witnessed Jacques obtaining the drugs from her source in Dover. Agents arrested Jacques and the source and recovered over 111 grams of methamphetamine.
Jacques is scheduled to be sentenced on November 17, 2020.
“Methamphetamine is a dangerous drug that continues to cause significant damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “We will not hesitate to bring federal charges against the dealers who are responsible for distributing this dangerous substance in the Granite State.”
This matter was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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