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Thursday 6 August 2020
26 charged in a drug conspiracy involving heroin, fentanyl, “crack” cocaine, and meth in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – Residents of multiple states were arrested today after being charged in a 50-count indictment involving a drug conspiracy, U.S. Attorney Bill Powell announced.
The indictment charges 26 people in a drug distribution operation that sold cocaine base, also known as “crack,” heroin, methamphetamine, including “ice,” and fentanyl in Ohio County and elsewhere from February 2019 to August 2020. In some instances, the sale of the drugs took place near protected locations such as North Park Apartments, Riverview Towers, Luau Manor, Madison Elementary School, Jensen Playground, Belle Isle Playground, Elks Playground, Bridge Park Playground, West Virginia Northern Community College, Wheeling Central Catholic High School, and Wheeling University. Those arrested today and charged are:
• Jennifer Marie Cuffman, also known as “Jennifer Proctor” and “Jen,” 32, of Martins Ferry, Ohio
• Carlos Leeper, also known as “Los,” 57, of Wheeling. West Virginia
• Andre Cornell Diggs, also known as “Dre” and “Big Homie,” 38, of Cleveland Heights, Ohio
• Jalen Deshon Dalton, also known as “J” and “NBA J,” 27, of Cleveland, Ohio
• Susan Manuel, 57, of Wheeling, West Virginia
• Quaison Maurice Harris, also known as “Action,” 35, of Willoughby Hills, Ohio
• Zachary James Parsons, 30, of Wheeling, West Virginia
• Erick Lamont Stanback Singleton, also known as “Gotti,” 26, of Cleveland, Ohio
• Matthew Trabert, 37, of Wheeling, West Virginia
• Willie Johnson, also known as “Ace,” 36, of Cleveland, Ohio
• Kristen Hoffler, 24, of Wheeling, West Virginia
• Larry A. Cuffman, also known as “Pops,” 60, of Martins Ferry, OhioFourteen others are charged and still at large. Their names are not being released at this time.
“We are sending a strong message to all of those from other states who want to sell drugs in our neighborhoods. We will not tolerate the poison and violence. The residents and business owners on Wheeling Island and the City of Wheeling deserve to live, work, and recreate in a safe neighborhood,” said Powell.
“The dedicated men and women of the Drug Enforcement Administration are committed to stopping the flow of drugs and violence into West Virginia and bringing to justice those who seek to poison our communities and threaten the safety of our residents,” said Special Agent in Charge Todd Scott, of DEA’s Louisville Division. “Violence and drug crime know no borders; we will find you, wherever you are, and put you behind bars,” added Scott.
The government is seeking forfeiture of more than $21,000 in cash and multiple firearms associated with the alleged crimes.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Watch the press conference here: https://www.youtube.com/watch?v=diumz-YnImg
Wednesday 5 August 2020
Victims of Tom Petters Ponzi Scheme Receive Additional Distribution of More Than $22 Million in Forfeited FundsRead the Press Release
The Department of Justice announced today that an additional distribution of $ 22,394,690.03 has been issued to victim investors of the THOMAS PETTERS fraud scheme. These funds, forfeited to the United States through criminal and civil forfeiture proceedings prosecuted in the District of Minnesota, will be sent to approximately 364 victims worldwide.
On December 1, 2008, THOMAS JOSEPH PETTERS, of Wayzata, Minnesota, was indicted on multiple counts of mail fraud, wire fraud, money laundering, and conspiracy for orchestrating a $2.1 billion Ponzi scheme. On December 2, 2009, a federal jury found PETTERS guilty of all 20 counts against him and was later sentenced by U.S. District Judge Richard H. Kyle to 50 years in federal prison. Other defendants were convicted in related criminal proceedings. As part of their sentencing judgments, PETTERS and other defendants were ordered to forfeit assets obtained through their criminal activity, including real estate, bank and investment accounts, vehicles and other assets. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victim investors who lost money in connection with the scheme. The proceeds of all forfeited assets are being distributed to victim investors.
This distribution follows the 2018 initial distribution of over $16 million, bringing the total to more than $38 million.
The forfeiture proceedings were part of a coordinated effort to compensate victim investors. In October 2008, the United States obtained an injunction against the fraud in a separate civil case, and the Court appointed a receiver to assist in the recovery of assets. Thereafter, multiple bankruptcy proceedings were filed in Minnesota and other states. In September 2010, the U.S. District Court and the U.S. Bankruptcy Court approved a Coordination Agreement governing the asset recovery efforts of the United States, the bankruptcy trustees, and the Court appointed receiver. In addition to the funds distributed via remission payments, additional payments are being made to victim investors and creditors through these ongoing bankruptcy and receivership proceedings in various states including Minnesota, Illinois and Florida.
The Petters’ remission payments would not have been possible without the efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the District of Minnesota, the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
United States Attorney’s Office Announced $500,000 Award to Provide Housing to Victims of Human Trafficking in South CarolinaRead the Press Release
COLUMBIA, South Carolina --- U.S. Attorney Peter M. McCoy, Jr. announced today that the State of South Carolina received $500,000 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime (OVC), to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“This office is committed to aggressively prosecuting human trafficking, which is among the most despicable and vile forms of criminal activity,” said U.S. Attorney McCoy. “Its victims suffer immeasurably, and I am thankful that there are safe places in South Carolina for survivors of this horrendous crime to experience a transformed life.”
The grant, awarded to Doors to Freedom, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rent, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing and secure employment, as well as occupational training and counseling. Doors to Freedom is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
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The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney, Peyton Anderson Foundation, Federal Defenders, Macon-Bibb leaders announce “Armed with Knowledge” public service campaignRead the Press Release
MACON, Ga. – A public service campaign aimed at educating young people on the consequences of illegal gun possession is underway in Central Georgia.
Presented by the Peyton Anderson Foundation, in partnership with the U.S. Attorney’s Office for the Middle District of Georgia, the Federal Defenders of the Middle District of Georgia, Inc., the Bibb County School District Superintendent, and the Bibb County Sheriff, the “Armed with Knowledge” video project depicts the story of Noah, a preteen youth facing life-altering decisions that lead to prison for illegal firearm possession. Throughout the video, Noah learns hard truths and irreversible consequences through personal points of view from the perpetrator, victim’s family and federal court system.
The Peyton Anderson Foundation worked with the U.S. Attorney’s Office for the Middle District of Georgia and the Federal Defenders for the Middle District of Georgia, Inc. on the project’s development and is partnering with the U.S. Attorney’s Office, the Federal Defenders for the Middle District of Georgia, Inc., the Bibb County School District and the Bibb County Sheriff’s Office on distributing the educational video and accompanying facilitator guide for screening in schools and youth programs throughout Georgia. The video is suitable for middle school viewers and older, although educators can choose to present the video to older elementary school children, as deemed appropriate. The Bibb County School District will be showing the video to students in the fall. The Bibb County Sheriff’s Office plans to utilize the video in its youth outreach programs. The U.S. Attorney’s Office for the Middle District of Georgia will implement “Armed with Knowledge” as part of its own Successful Tips for Youth on Law Enforcement Encounters (STYLE) youth outreach program.
The video was the idea of Peyton Anderson Foundation Trustee Marc Treadwell. Judge Treadwell is a United States District Judge, serving in the United States District Court for the Middle District of Georgia since 2010. Filmed entirely in Central Georgia by Big Hair Productions, the video features local actors, as well as Judge Treadwell, members of the U.S. Attorney’s Office for the Middle District of Georgia and the Federal Defenders of the Middle District of Georgia, Inc. It also features a powerful scene with Tonora Jones, the mother of Ta’Shuntis “Tootie” Roberts, who was lost to gun violence in 2015.
“Many defendants, particularly younger defendants, are completely unaware of the severe criminal penalties that can result from illegal possession of a gun,” said Judge Treadwell. “If our young people are fully informed, perhaps they will choose a different path, a path that will save them, their families and their communities from the consequences of illegal gun possession.”
“Our hope is that this film will make a lasting impression on young viewers, and they will never forget that gun violence can cost them their lives, literally or through years in prison,” said U.S. Attorney Charlie Peeler. “With this powerful video, the Peyton Anderson Foundation has provided educators, mentors, parents and community leaders a unique educational tool with the potential to reduce gun violence and gang activity. We owe it to our community to take full advantage of this opportunity by watching this film with the young people in our lives.”
“The overwhelming dream of our office is that this film will help young people, especially young men of color, to avoid mistakes that bring lifelong consequences. As a lawyer who has represented the indigent accused for over 35 years, I have seen the horrifying consequences that people of color and poor people face after making what many think are minor mistakes early on in life. I hope and desire that this film will empower youth to make better decisions to rebuild their communities which have been shattered by systemic racial injustice, destroyed nuclear families, and disenfranchised so many people,” said Christina Hunt, Executive Director, Federal Defenders of the Middle District of Georgia, Inc. “Our belief is that by knowing the consequences early on, we will be able to rebuild a better place for all to live. We also want people to know that this Office stands to answer any questions any person may have on these matters and can answer those questions confidentially.”
“For too long, I have seen our students make bad decisions about guns. I hate seeing the consequences of those decisions and the hurt it causes; all because young children just don’t know,” said Bibb County School District Superintendent Dr. Curtis Jones. “The ‘Armed with Knowledge’ partnership is just the right proactive actions we need to tell our youth and their parents – Don’t Do It. Thank you for showing how an engaged community helps students develop and demonstrate the strength of character we want of them.”
“‘Armed with Knowledge’ is a compelling video which will be an exceptional teaching tool which touches upon relevant issues that today’s youth are facing,” said Bibb County Sheriff David Davis. “The information a young person receives from this presentation will help them deal with peer pressure and making right choices. We at the Bibb County Sheriff’s Office look forward to adding this to our youth outreach options.”
“‘Armed with Knowledge’ is an impactful educational tool that, with outreach and guidance, can make a permanent imprint in the hearts and minds of young viewers, making them think twice when they, or someone they know, are faced with the decision to engage in a gang or other criminal activity,” said Karen Lambert, president of the Peyton Anderson Foundation.
The trailer of the video will debut on August 5, 2020 on both the Peyton Anderson Foundation and U.S. Attorney’s Office for the Middle District of Georgia Facebook pages, directing viewers to the ArmedWithKnowledge.org website for additional information and access to the full-length video. Organizations can request to use the video and its educational content from the website.
This partnership is in conjunction with Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This partnership also affiliated with 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/archives/projectguardian.
The Peyton Anderson Foundation was formed in 1988, in honor of Peyton T. Anderson Jr., owner in the 1950s and 60s of the Macon Telegraph and the Macon News. A highly successful businessman, family man, veteran, civic leader, and philanthropist, Anderson assigned the bulk of his estate for charitable purposes to benefit his hometown of Macon, Georgia. He maintained that the people of Central Georgia had been good to him, and he in turn, wished to be good to them. His instructions were simple: give to “good-doers,” instead of “do-gooders.” The Peyton Anderson Foundation carries out these wishes and serves as a lasting memorial to a man whose goodwill lives on long after him, investing over $105 million in Central Georgia and touching the lives of thousands of our residents. For more information, please visit PeytonAnderson.org.
For more information about “Armed with Knowledge” and to request access to the full-length video, please visit ArmedWithKnowledge.org. Questions for the Peyton Anderson Foundation can be directed to Jessica Walden at [email protected] or (478) 361-6998. Questions for the U.S. Attorney’s Office can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
U.S. Attorney's Office recognizes employees for outstanding work in 2019Read the Press Release
The United States Attorney's Office for the Northern District of Ohio presented awards to honor exceptional advocacy, support and legal work on behalf of the district's six million residents in 2019.
"These awards recognize the best efforts put forth by our office on behalf of the citizens of the Northern District," said U.S. Attorney Justin Herdman. "Whether it's combating violent crime, protecting taxpayers, trying to curb the tide of the opioid epidemic, just to name a few, these employees embody the best of public service."
Details of the award winners are below:
Graduates of the Cleveland Federal Community Leadership Institute (CFCLI): Antoinette Burrell, Angelia Johnson and Crystal Williamson
The Cleveland Federal Community Leadership Institute is a program designed to develop leaders among Cleveland's federal agencies. This program gives students opportunities to network with like-minded leaders in the Cleveland area, develop effective teamwork skills, and design a community outreach project. This year, the Northern District had three graduates: Antoinette Burrell, Angelia Johnson and Crystal Williamson. Congratulations, graduates.
Wings of Excellence Award: Jeanette Albrecht and Michelle Baeppler
The purpose of this award is to recognize those employees whose outstanding performances, either on or off the job, have served as an inspiration to others and/or brought credit to the Federal service. Awardees may be recognized for on-the-job performance, community service, or both.
Jeanette Albrecht has been with the Northern District since 2014. She was hired as a Legal Assistant in the Civil Division, where she supported several Assistant U.S. Attorneys in the Financial Litigation and Defensive Units. She assisted in mentoring new legal assistants and has never missed an opportunity to support other personnel within the division.
Michelle Baeppler has handled some of the office's most notable prosecutions. She joined the U.S. Attorney's Office in 2007 as an Assistant U.S. Attorney and has since prosecuted a myriad of criminal cases, including narcotics trafficking, firearms, bank robbery, terrorism, national security and civil rights matters. She has served as the Deputy Chief of the Organized Crime Drug Enforcement Task Force (OCDETF) Unit and is currently the Branch Chief for the Akron office.
Congratulations, Jeanette and Michelle.
2020 Franklin A. Polk Public Servant Award: Renee Mackey
Renee Mackey has been recognized by the Cleveland Metropolitan Bar Association for demonstrating outstanding service to the legal profession, the general public, and the justice system. These merit awards are given for long and faithful service, devotion to duty, wise counsel, and unfailing patience. Renee has worked tirelessly on behalf of the Northern District's six million residents for the past 31 years and is an exemplary public servant. Congratulations, Renee.
The Bill Edwards Career Award: Jim Morford
Jim Morford is honored for over 30 years of exceptional federal service. Jim began his career as an Assistant Prosecuting Attorney in Montgomery County and joined the Northern District in 1991. Jim is an Assistant U.S. Attorney who oversees the district's forfeiture division. Jim is widely considered an expert and leading authority on all things related to both criminal and civil forfeiture. Jim's division consistently nets forfeiture results that far exceed districts much larger than Ohio Northern. Congratulations, Jim.
The Roberta Sladick Career Award: Cindy Jenkins
Cindy is described as an "invaluable asset" and "one of the best employees the U.S. Attorney's Office has had over her long career." Cindy is a leader, mentor and trainer. Cindy has trained countless new employees as they have joined the Criminal Division and is always ready to help and fill in for anyone who needs help, and she has a hands-on approach when it comes to completing the mission. Congratulations, Cindy.
Excellence in Criminal Advocacy: Dan Riedl, Duncan Brown, Om Kakani, Matt Kall and Michelle McEwen
This year's recipients are awarded the Excellence in Criminal Advocacy award for their unwavering commitment and professionalism demonstrated throughout trial. Congratulations to Dan, Duncan, Om, Matt and Michelle.
Excellence in Civil Advocacy: Renee Bacchus, James Bennett, Karen Swanson Haan, Twana Rogers and Devin Zabarsky
This year's recipients are recognized for their legal skills and adaptability while protecting the United States, and their shining example of professionalism in the face of national headlines and unexpected challenging circumstances. The team used keen legal knowledge and exceptional judgment in meeting, conferring, and negotiating with both the Plaintiffs and defense counsel, the Special Masters, the Court and numerous agency officials and attorneys. Congratulations to Renee, James, Karen, Twana and Devin.
Excellence in Criminal Support: Allison Kretz
Allison Kretz is such an instrumental part of the Northern District's Criminal Division. Many of the office's 2019 success stories would not have happened without Allison. She is approachable, knowledgeable, easy to work with, encouraging and patient. She leads by example and becomes an integral part of every team to which she is assigned. But more important than helping the office, Allison assists the victim community that the district serves. Congratulations, Allison.
Excellence in Civil Support: Donna Stroffolino
Donna Stroffolino is awarded this year's "Excellence in Civil Support" award for providing support on high-volume foreclosure matters and doing so in a timely manner. The foreclosure unit files in 17 different state courts, has approximately 1500 cases pending and bring in over $1M a year. Donna helps manage the unit's workload by assessing and reviewing each foreclosure complaint and coordinating with the respective agencies in order to enable the office to file an answer or response. Congratulations, Donna.
Excellence in Paralegal Support: Jen Bosher
Jen Bosher is awarded this year's "Excellence in Paralegal Support" award for her meticulous work and exemplary attention to detail. Jen has worked as a paralegal for the past 10-plus years and has demonstrated exceptional writing ability and the aptitude to handle large and complex discovery productions. Congratulations, Jen.
Excellence in Administrative Support: Annette Coreno
Annette is recognized for her positive attitude and willingness to assist whoever calls or walks through the door. Annette manages multiple duties and tasks throughout the day and handles all of her assignments with a pleasant attitude and smile. Congratulations, Annette.
New Assistant U.S. Attorney Award: Elliot Morrison
In the few short years that Elliot has been with the Northern District office, he has demonstrated outstanding written and oral advocacy skills, thorough and meticulous approach to case development and prosecution, and has earned numerous convictions and significant trial accomplishments. During 2019, AUSA Morrison worked tirelessly on cases involving public corruption and drug trafficking. AUSA Morrison is a conscientious, dedicated and thorough advocate and deserves recognition by his peers as this year's New Assistant U.S. Attorney award recipient. Congratulations, Elliot.
New Legal Support Award: Chiquita Bonner
Chiquita's work ethic and professionalism have earned her this year's New Legal Support award. Chiquita is always ready to say yes to a project, a quick learner, and values her time and others. Chiquita strives to represent the office with professionalism, honesty, and integrity and readily volunteers her time to assist with the planning of events, such as the diversity and outreach programs, holiday events, etc. Congratulations, Chiquita.
The Jane Corrigan Award: Anthony Myers
This award recognizes a supportive staff member who is always professional, ready to help others in the performance of their duties, who expresses a "can-do" attitude, and whose demeanor is always engaging. Anthony receives this year's award for going out of his way to assist others, ensuring that his work is professional and error-free, and addressing deficiencies in internal processes. Congratulations, Anthony.
The Craig Tame Award for Excellence in Community Outreach: Marlon Primes
Marlon is the recipient of the first-ever Craig Tame Award for Excellence in Community Outreach. Marlon is a true leader – both in the office and throughout our community. He has been a champion for Cleveland's youth for several years as he has advanced and supported the Cleveland Metropolitan Bar Association's 3R's program – teaching high school-aged students about their rights and responsibilities as reflected in the U.S. Constitution. Marlon organizes an annual field trip for students to visit the federal courthouse and experience a moot court opportunity. Additionally, he has been a long-standing member of the Office's Diversity and Outreach committee, leading all of us by example. He is described by his peers in many positive ways, including being described as good-natured, exceptionally kind, and "having a heart of gold and the patience of a saint." Congratulations, Marlon.
Administrative Employee of the Year: Jeff Oleyar
Jeff receives this year's award for his role in helping the office navigate the information technology challenges posed by remote-working due to the COVID-19 pandemic. Even before the pandemic, Jeff provided the office with knowledgeable, timely, and friendly service and support. Congratulations, Jeff.
Legal Support Employee of the Year: Rowenda Dellisanti
Rowenda provides outstanding support to all civil Assistant U.S. Attorneys in the Toledo Branch Office. Rowenda is the primary Legal Assistant for two Civil Assistant U.S. Attorneys, provides backup support when necessary, and also supports the bankruptcy and medicare unit, two high-volume areas. Well-organized and meticulous, Rowenda exhibits exceptional skills in all areas of civil litigation support. This includes the difficult and sometimes tedious tasks associated with civil discovery. Congratulations, Rowenda.
Assistant U.S. Attorney of the Year: Margaret Sweeney
Margaret Sweeney is this year's Assistant U.S. Attorney of the Year. Margaret's attention and dedication to her work resulted in 77 defendants charged last year, with several of these matters being significant prosecutions resulting from complex, long-term investigations.
Notable accomplishments in 2019 include:
•The first trial in this district for a fentanyl analogue under the mandatory minimum statute. It was also then the largest carfentanil seizure with 200 grams of carfentanil found.
•Indicting the leader of a drug trafficking organization that, for at least 10 years, has been trafficking upwards of 200 kilos of cocaine into the Northern District.
In 2019, Margaret was selected to be the lead Strike Force attorney for the newly created Cleveland Strike Force. In addition, she coordinates the summer intern program and mentors new Assistant U.S. Attorneys. Her colleagues describe Margaret as motivating, thoughtful and keenly observant of details. Congratulations, Margaret.
U.S. Attorney and ICE Director to Give Update and New Announcements on One-Year Anniversary of August 2019 Immigration Operations in MississippiRead the Press Release
Jackson, Miss. - United States Attorney Mike Hurst, Director of U.S. Immigration and Customs Enforcement (ICE) Matt Albence, and ICE Homeland Security Investigations (HSI) New Orleans Acting Special Agent in Charge Gilbert Trill will hold a press conference on Thursday, August 6, 2020 at 10:00 a.m. at the Federal Courthouse in Jackson to give an update and make new announcements on investigations and prosecutions arising from the August 2019 execution of criminal and administrative search warrants at multiple locations throughout central Mississippi.
WHEN: THURSDAY, AUGUST 6, 2020 - 10:00 A.M.
WHERE: THAD COCHRAN U.S. COURTHOUSE - SECOND FLOOR EXTERIOR COURTYARD
501 E. COURT STREET, JACKSON, MS 39201
NOTE:
- If you are sick, show any signs or symptoms of COVID-19, or have tested positive for COVID-19 (or anyone in your household) and you have not yet completed a 14-day quarantine after testing positive, do not come to the Courthouse.
- Everyone entering the courthouse must wear a mask while in any common area of the courthouse, unless speaking publicly or asking a question during the press conference.
- Everyone must also observe physical distancing requirements, maintaining at least 6 feet between others.
Doors open to press at 9:30 a.m. All cameras must be preset by 9:45 a.m. All media must RSVP to Sheila Wilbanks at [email protected] and present government-issued photo identification and valid media credentials. This event in limited to only members of the media.
U.S. Attorney Announces over $860,000 Awarded to Provide Housing to Victims of Human Trafficking in VirginiaRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger today announced that two victim services providers in the Commonwealth of Virginia received $866,676 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
The grant, awarded to Survivor Ventures, Inc. and Transitions Family Violence Services, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Survivor Ventures, Inc. and Transitions Family Violence Services are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said Katharine T. Sullivan, Deputy Assistant Attorney General for OJP Principal. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.s. Attorney Matthew D. Krueger Announces Award of $1 Million to Provide Housing for Human Trafficking VictimsRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, today announced that two agencies in Wisconsin received nearly $1 million from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“The funds announced here will provide direct and much-needed aid to victims of human trafficking,” said U.S. Attorney Krueger. “Combatting human trafficking remains a top priority for my office, which is among the most active U.S. Attorney’s Offices in the country in fighting this scourge. From our experience, we know that providing safe, stable housing is essential to helping victims break away from their trafficker.”
The grant, awarded to Newcap, Inc. in the amount of $500,000, and to Pathfinders Milwaukee, Inc. in the amount of $499,000, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Newcap, Inc. and Pathfinders Milwaukee, Inc. are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Two O.C. Men Sentenced for Roles in Loan Modification Scam that Caused $3.5 Million in Losses to Distressed HomeownersRead the Press Release
SANTA ANA, California – Two Orange County residents were sentenced late this afternoon – with one being ordered to serve 12 years in federal prison – for their key roles in businesses that offered bogus modification programs to homeowners struggling to pay their mortgages in the wake of the 2008 financial crisis.
The two defendants who were associated with the Santa Ana-based company U.S. Homeowners Relief and several related businesses participated in a long-running “advance fee” scheme that caused more than 1,600 homeowners to suffer over $3.5 million in losses. Many victims lost their homes in subsequent foreclosure proceedings.
Aminullah “David” Sarpas, 37, of Irvine, was sentenced to 144 months in federal prison after being convicted by a jury in April 2019 of 10 counts of conspiracy and mail fraud.
Samuel Paul Bain, 40, of Tustin, was sentenced to five years in prison after pleading guilty in 2016 to conspiracy and mail fraud.
The two men – who were co-owners of U.S. Homeowners Relief, Greenleaf Modify, Waypoint Law Group, and American Lending Review – were sentenced by United States District Judge Cormac J. Carney.
Sarpas and Bain established U.S. Homeowners Relief in late 2008, using it and the subsequent companies to offer programs that falsely offered to help distressed homeowners obtain modifications of their mortgages. Sarpas and Bain initially marketed the programs themselves, but they also used TV, radio and internet advertisements, as well as a team of telemarketers to entice victims. Homeowners who agreed to participate – based on false claims, including that the companies had a 97 percent success rate in obtaining loan modifications that dramatically reduced monthly mortgage payments – were charged an advance fee ranging between $1,450 and $4,200. In short, the scheme “compounded these homeowners’ financial woes by inducing them to dig the hole they were in even deeper,” prosecutors wrote in court documents.
There were two other defendants named in a 2014 indictment. One man was acquitted of all counts. The fourth defendant – Louis Saggiani, 70, of Huntington Beach, pleaded guilty and is scheduled to be sentenced in October.
The investigation was conducted by the United States Postal Inspection Service, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and IRS Criminal Investigation.
This matter was prosecuted by Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office and Assistant United States Attorney David H. Chao of the Major Frauds Section.
Twelve arrested in takedown of North Sound drug trafficking organizationRead the Press Release
Seattle)—Twelve members of a drug trafficking group distributing fentanyl, heroin, methamphetamine, and cocaine throughout the Puget Sound region were arrested today following a year-long investigation and two grand jury indictments, announced U.S. Attorney Brian T. Moran. The members of the conspiracies engaged in trafficking activities from Mexico, through California and Oregon, and into the North Puget Sound region. Those arrested today will make appearances in U.S. District Court for the Western District of Washington today and tomorrow.
“During the course of this investigation agents seized more than 20,000 pills pressed to look like oxycodone, but actually tainted with fentanyl,” said U.S. Attorney Brian Moran. “I have had heartbreaking conversations with the parents of young people who died from fentanyl overdoses linked to counterfeit pills. We are making it a priority to get these deadly drugs off the streets.”
“While most Puget Sound residents have been in ‘lockdown’ status because of the pandemic, our investigators and prosecutors continued pursuing those endangering our communities with indiscriminate sales of fentanyl tainted pills, heroin and methamphetamine,” said DEA Special Agent in Charge Keith Weis. “The tough job of removing this criminal organization was accomplished through the sheer determination and dedication to our community’s safety by our law enforcement professionals.”
In addition to the fentanyl pills, during the investigation law enforcement seized more than six pounds of heroin and nearly nine pounds of methamphetamine. Some of the drugs were smuggled in hidden compartments in the seats of vehicles.
The indictments charge a range of drug trafficking crimes. Those indicted include:
Delmer VELASQUEZ-Lacuna, 23, Seattle, Washington
Rodrigo ALVAREZ-Quinonez, 31, Selma, California
Elias Neftali MONTES-Sevilla, 30, Federal Way, Washington
Gustavo SANDOVAL-Agurcia, 38, Burien, Washington
Jorge Uriel ESQUIVEL-Mena, 31, Fairfield, California
Francisco Javier ESQUIVEL-Mena, 32, Aloha, Oregon
Wilmer GALINDO-Maradiaga, 26, Seattle, Washington
Jose CRUZ-Hernandez, 31, Mountlake Terrace, Washington
Jose Fernando ESCOTO-Fiallos, 32, Mountlake Terrace, Washington
Jose Alberto RAMOS, 59, Selma, California
Juan HERNANDEZ-Hernandez, 54, Bellingham, Washington
Baldemar MARTINEZ-Rico, 28, Kent, Washington
Saul SUAREZ-Mata, 34, Bellevue, Washington
Due to the drug quantities involved, some of the defendants face potential mandatory minimum ten-year sentences. Today alone, law enforcement seized: nearly 6 pounds of methamphetamine, 8 pounds of heroin, 7,500 pills likely tainted with fentanyl, over $100,000 in cash, 4 firearms, and vehicles outfitted with “traps”—hiding places for smuggling drugs and money.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The investigation was conducted by the U.S. Drug Enforcement Administration in partnership with Homeland Security Investigations, Shoreline Police Department, King County Sheriff’s Office (KCSO), Seattle Police Department and the Snohomish Regional Drug Task Force (SRDTF). The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA). In addition, to the agencies listed above, these law enforcement agencies assisted with arrests and search warrants executed today: DEA Oakland Resident Office; DEA Fresno District Office; DEA Portland District Office; DEA Bellingham Resident Office; United States Marshals Service—Seattle, Washington, and Fresno, California; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Federal Bureau of Investigation (FBI) Seattle; FBI SWAT; Washington State Patrol; Valley SWAT; Puyallup Police Department; and Thurston County Narcotics Team.
The case is being prosecuted by Assistant United States Attorneys Stephen Hobbs and Benjamin Diggs.
us_v._velasquez-licona_et_al.pdf us_v_sandoval-agurcia.pdfTuolumne County Man Charged with Receipt and Distribution of Material Involving the Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. — Jonathan James Rodriguez, 37, of Sonora, was arraigned Tuesday for receipt and distribution of material involving the sexual exploitation of minors, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January 2014 and January 2020, Rodriguez used a laptop computer to receive and distribute a visual depiction of a minor engaged in sexually explicit conduct.
Anyone who has information related to this investigation or who believes they may be a victim can contact the FBI at [email protected].
This case is the product of an investigation by the Federal Bureau of Investigation and the Tuolumne County Sheriff’s Office. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of 20 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Three Philadelphia Men Sentenced for Running “Drug Delivery Service” along 7th Street Corridor in South PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Stefan Tucker, 33, of Philadelphia, PA was sentenced to 200 months (over 16 years) in prison by United States District Judge Gerald J. Pappert for his involvement in an almost around-the-clock drug delivery service for several years in South Philadelphia. Two of Tucker’s co-defendants, Stephen Wilkerson, 30, and Jerome Tucker, 29, both of Philadelphia, PA, were also recently sentenced and received ten years and five years in prison, respectively. All three pleaded guilty to multiple drug offenses in January and February, 2020.
Between 2013 and 2016, the defendants and their co-conspirators, known as the “Friends” and the “7th Street” drug trafficking group, delivered crack cocaine and heroin to customers along the 7th Street corridor in South Philadelphia using a shared drug phone. The defendants used the phone to take orders and communicate with customers; they would pass the phone off in shifts to keep their operation going almost 24 hours per day. FBI agents conducted surveillance and controlled purchases of narcotics from the defendants using audio and video recording devices. During the course of the investigation, agents also intercepted phone calls and text messages from the shared drug phone, which documented the defendants’ illicit activities. Three co-defendants, Antoine Clark, Gerald Spruell, and Daniel Robinson, were convicted at trial in February 2020 of multiple drug offenses stemming from their involvement in the drug operation and await sentencing.
“Trafficking in heroin and crack cocaine destroys neighborhoods, it’s deadly, and it’s obviously illegal – for good reason,” said U.S. Attorney McSwain. “And it will land you in federal prison for many years. The 7th Street drug trafficking group is now gone, and we bid it good riddance.”
“This group’s constant churn of drug transactions kept the 7th Street corridor awash in heroin, crack, and other narcotics,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Shutting them down makes the community safer and these sentences will put them out of business.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Matthew Newcomer and Jason Grenell.
The Department of Justice Files Sexual Harassment Lawsuit Against Owner of Rental Properties in Elizabeth, New JerseyRead the Press Release
The Department of Justice announced today that it has filed a lawsuit alleging that the owner of rental properties in Elizabeth, New Jersey violated the Fair Housing Act by subjecting tenants to sexual harassment.
The complaint, filed in the U.S. District Court for the District of New Jersey, alleges that Joseph Centanni, who owns hundreds of rental units in and around Elizabeth, New Jersey, has subjected tenants and housing applicants to sexual harassment on multiple occasions since at least 2005. According to the complaint, Centanni demanded sexual favors like oral sex to get or keep housing, offered housing benefits like reduced rent in exchange for sexual favors, touched tenants and applicants in a way that was sexual and unwelcome, and made unwelcome sexual comments and advances to tenants and applicants. The complaint also alleges that Centanni initiated or threatened to initiate eviction actions against tenants who objected to or refused his sexual advances. According to the complaint, Centanni participates in the federal Housing Choice Voucher Program (also known as Section 8) and receives approximately $102,000 each month in Housing Choice Voucher payments.
“The Fair Housing Act protects the right of all persons in our nation to rent a home without suffering sexual exploitation at the hands of abusive landlords. Demanding sexual favors from tenants, especially those who are financially vulnerable, is illegal,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will hold accountable those who engage in such cruel, depraved, and illegal conduct and will work tirelessly to obtain relief for their victims.”
“No one should ever be forced to provide sexual favors, or otherwise endure sexual harassment, as a condition to keep or obtain housing,” said U.S. Attorney Craig Carpenito. “Sexual harassment in housing is illegal under the Fair Housing Act, and we will vigorously enforce this federal law to end this type of depraved behavior.”
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
Today’s lawsuit is the result of a joint investigative effort with the U.S. Department of Housing and Urban Development’s Fair Housing and Equal Opportunity Office and Office of Inspector General.
The Justice Department's Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. U.S. Attorney Craig Carpenito has also reaffirmed the U.S. Attorney’s Office’s commitment to combatting sexual harassment in housing amid the COVID-19 pandemic. The goal of the department’s initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 17 lawsuits alleging sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Centanni, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line toll free, at 1-833-591-0291, and select option number one to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339, by e-mailing the Justice Department at [email protected], or by submitting a report online.
Tampa Felon, Previously Convicted of Attempted Murder, Sentenced to 15 Years in Federal Prison for Drug and Firearms OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced DeShawn Torrell Salley (40, Tampa) to 15 years in federal prison for distributing 50 grams or more of methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.
Salley had pleaded guilty on February 6, 2020.
According to court documents and information presented at the sentencing hearing, between 1999 and 2004, Salley was convicted of six felony offenses, including attempted murder in the first degree. On eight occasions, between April and June 2019, Salley sold methamphetamine and heroin in Tampa. On July 31, 2019, federal agents arrested Salley and searched his apartment pursuant to a federal search warrant. The agents recovered a loaded Glock .45 caliber pistol, a bulletproof vest, heroin, and marijuana. As a previously convicted felon, Salley is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher F. Murray
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Syracuse Man Sentenced to 63 Months for Conspiracy to Distribute Marijuana and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Nicholas Tarbell, age 32, of Syracuse, was sentenced today to serve 63 months in prison for conspiring to distribute marijuana and money laundering, announced United States Attorney Grant C. Jaquith, Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and Gregory S. Oakes, Oswego County District Attorney.
As part of his previous guilty plea, Tarbell admitted that between approximately January and August 2017 he received bulk quantities of marijuana from a source of supply. Tarbell sold marijuana he received and sent proceeds from some of those sales back to his source of supply by courier. As part of his guilty plea, Tarbell admitted to distributing and/or possessing approximately 350 kilograms of marijuana.
In addition to his term of imprisonment, the court also sentenced Tarbell to 4 years of supervised release and ordered him to pay a money judgment in the amount of $469,184.
This case was investigated by Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department and Agents of the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorney Thomas Sutcliffe.
Shooting at a Car Sends Drug User Who Unlawfully Possessed Two Guns to Federal Prison for More than Eight YearsRead the Press Release
A drug user who shot at a car containing two people and unlawfully possessed twelve firearms was sentenced August 4, 2020, to more than eight years in federal prison.
Kashad Elijah Hawthorne, age 20, from Cedar Rapids, Iowa, received the prison term after a February 24, 2020 guilty plea to possession of a firearm by a drug user.
Information from sentencing and a plea agreement showed that on May 2, 2019, Cedar Rapids police officers recovered a gun from a car in which Hawthorne had been a passenger. Officers also found a gun in another car Hawthorne was riding in on May 16, 2019. Hawthorne admitted that, on April 22, 2019, he used one of the two guns to shoot at a car containing two people. No one was injured during the incident. Photographs and videos from Hawthorne’s social media accounts showed him posing with firearms on at least thirteen occasions.
Hawthorne was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hawthorne was sentenced to 100 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Hawthorne is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-121.
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Roanoke Woman Sentenced on Federal Firearms ChargeRead the Press Release
ROANOKE, VIRGINIA – Diamond Topaz Brown, a Roanoke woman who was prohibited from possessing firearms due to her status as a previously convicted felon, was sentenced today in U.S. District Court in Roanoke to 120 months in federal prison, United States Attorney Thomas T. Cullen announced.
According to court documents, Brown, 29, is a seven-time convicted felon who was prohibited from possessing a firearm. In the late hours of September 19 and the early morning hours of September 20, 2018, members of the Roanoke Police Department, the U.S. Marshals Capital Area Regional Fugitive Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives observed Brown outside of a business on Williamson Road in Roanoke. They were looking for Brown in an attempt to arrest her on three outstanding felony extortion warrants based upon violent threats she was alleged to have made in the days prior. Officers observed Brown remove a handgun from a vehicle associated with Brown, place it under her shirt, and move it to another vehicle in the parking lot. Brown hid the firearm under the driver’s seat of the second car. A subsequent search of the second vehicle revealed a Taurus, 9mm, semi-automatic pistol. The gun was loaded with an extended magazine holding 29 rounds of ammunition. Surveillance video from the business confirmed that Brown had, in fact, transferred the pistol from one of the vehicles to another.
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 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.
The investigation of the case was conducted by the Bureau of Alcohol Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Roanoke City Police Department, and the United States Marshal’s Service. Assistant United States Attorneys Daniel P. Bubar and Coleman Adams prosecuted the case for the United States.
Rhode Island Man Sentenced for Threatening Massachusetts ProfessorRead the Press Release
BOSTON – A Rhode Island man was sentenced today for sending a series of violent and threatening e‑mails to a Massachusetts professor and a university.
Matthew Haviland, 30, of North Kingstown, R.I., was sentenced by U.S. District Court Judge Leo T. Sorokin to 21 months in prison and three years of supervised release. In September 2019, Haviland pleaded guilty to one count of stalking and two counts of transmitting a threat in interstate commerce. Haviland was charged in April 2019.
“The Constitution protects everyone’s right to free speech, but there is a hard line between free speech and the stalking and harassment committed in this case. My office will enforce that line,” said United States Attorney Andrew E. Lelling. “Today’s sentence affirms that these are serious crimes that warrant punishment.”
“Today’s sentence cannot atone for the fear that Matthew Haviland caused, and the sense of security his victims lost, but it does hold him accountable for sending dozens of rage-filled emails threatening horrific acts of violence,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will vigorously protect every individual’s constitutional right to free speech but we will not allow anyone to hide behind the internet and put others in fear for their lives.”
Over the span of several hours on March 10, 2019, Haviland sent a Massachusetts professor a string of approximately 28 e-mails containing messages that included such threats as, “I will rip every limb from your body and eat it, piece by piece,” “I will bite through your eyeballs while you’re still alive, and I will laugh while you scream,” and “I will torture you relentlessly until the end of time … [and] feed your body to pigs again and again….” The professor to whom Haviland sent the threats has published and spoken in favor of abortion rights, and several of Haviland’s e‑mails made reference to abortion. In two successive e-mails, for example, Haviland wrote, “You will be held accountable for every f****** baby you murdered through your horrible deception of they are not humans” and “You will have your face ripped off and eaten by me, personally. I will enjoy raping your body after you’re dead. And that will only be the start.”
Haviland also sent several e-mails on March 15, 2019 to a professional school at the professor’s university. Those e-mails included the message: “You people are Evil, putrid, and somebody shoudl [sic] BOMB your school for spreading the idea that it’s okay to HATE people because of their race.” A later e-mail to the professional school said only, “You should be Murdered in cold blood.”
United States Attorney Lelling and Boston FBI SAC Bonavolonta made the announcement today. Boston FBI’s Joint Terrorism Task Force conducted the investigation with the assistance of the Warwick and North Kingstown (RI) Police Departments. Assistant U.S. Attorney William F. Bloomer of Lelling’s National Security Unit prosecuted the case.
Randolph County woman sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Julie Ann Cutright, of Elkins, West Virginia, was sentenced today to five years of probation for running a drug house, United States Attorney Bill Powell announced.
Cutright, age 34, pled guilty to one count of “Maintaining a Drug-Involved Premises” in May 2019. Cutright admitted to maintaining a home at 113 Riverview Drive in Elkins that was used for distributing methamphetamine, also known as “ice” from October 2017 to November 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. District Judge Thomas S. Kleeh presided.
Randolph County man sentenced to 10 years for methamphetamine distribution and firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joseph William Howell, Jr., of Beverly, West Virginia, was sentenced today to 120 months incarceration for methamphetamine and firearms charges, U.S. Attorney Bill Powell announced.
Howell, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” and one count of “Possess Firearm in Furtherance of a Drug Crime” in October 2019. Howell admitted to working with others to distribute methamphetamine from December 2017 to July 2018 in Randolph County and elsewhere. He also admitted to having a .34 Colt caliber revolver during the drug crime.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Randolph County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
President and Employee of Brooklyn Moving Company Charged with Defrauding CustomersRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Yakov Moroz, the president of Great Movers Inc. and its successor company New City Movers, and company employee Tal Ohana with wire fraud and wire fraud conspiracy by misrepresenting estimated charges for moving services and then requiring customers to pay additional fees that far exceeded the original estimate in order to recover their belongings. Moroz and Ohana were arrested earlier today and will make their initial appearance this afternoon before United States Magistrate Judge Steven M. Gold.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Douglas Shoemaker, Special Agent-in-Charge, United States Department of Transportation, Office of the Inspector General (DOT-OIG), announced the charges.
According to the complaint, Moroz and Ohana, through Great Movers Inc., which operated through the website https://greatmovingusa.com and other affiliated moving companies, defrauded dozens of customers by misrepresenting the estimated charges for moving services and then (i) requiring customers to pay additional fees, often more than 10 percent of the original estimate, (ii) requiring payment before delivery of goods, or (iii) refusing to return and threatening to sell and auction the customers’ belongings if the fees were not paid. These practices violate federal regulations for companies engaged in the transportation of household goods in interstate commerce. Many customers ultimately paid the inflated and additional fees to ensure delivery of their property.
“As alleged, Moroz and Ohana victimized their customers by holding their belongings hostage until the inflated fees were paid,” stated Acting United States Attorney DuCharme. “This Office will hold accountable anyone who seeks to target the vulnerable in an effort to profit from predatory schemes.” Mr. DuCharme thanked the Better Business Bureau for its assistance with the investigation.
“Imagine moving every item you own from one place to another, trusting the moving company loading up the truck to not rip you off. The subjects in this scheme allegedly used that vulnerability in a cruel way, knowing victims would pay almost anything to get their prized possessions back,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Joint Major Theft Task Force will investigate these fraudsters, and we want other potential victims to report it to us so we can stop these criminals before they move on to someone else.”
“Today’s arrests and actions taken stemming from a criminal investigation conducted by the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and FBI shows our commitment to rooting out fraudulent household goods movers who take advantage of unsuspecting customers,” stated DOT-OIG Special Agent-in-Charge Shoemaker. “Working with our law enforcement and prosecutorial partners, as well as the Federal Motor Carrier Safety Administration, we will continue our vigorous efforts to ensure that commercial household goods movers adhere to Federal laws and regulations designed to protect the public.”
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 30 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Devon Lash is in charge of the prosecution.
The Defendants:
YAKOV MOROZ
Age: 39
Brooklyn, New YorkTAL OHANA
Age: 37
Queens, New YorkE.D.N.Y. Docket No. 20-MJ-604
Orlando Resident Sentenced to More Than Six Years for Identity Theft and Credit Card FraudRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Christopher Keith Held (37, Orlando) to six years and nine months in federal prison for conspiring to commit access device (credit card) fraud, producing counterfeit access devices, possessing 15 or more counterfeit access devices, possessing device-making equipment, and committing aggravated identity theft. Held had pleaded guilty on May 13, 2020. Held’s co-defendant, Bonnie Brooke Vogt (25, Orlando), pleaded guilty to several fraud-related charges on June 23, 2020. Her sentencing is scheduled for September 18, 2020.
According to court documents, sometime prior to 2018, Held and Vogt conspired to steal the identities of approximately 2,900 individuals from the Orlando chapter of a labor union where Vogt had been employed. Between 2018 and 2019, Held and Vogt used many of these stolen identities to obtain loans, lines of credit, and credit cards in victims’ names. Held and Vogt then used the fraudulently-obtained funds and stolen identities to purchase four vehicles and to pay other personal expenses, including staying at various hotels in central Florida and renting a new Mercedes. In January 2019, when officers from the Orlando Police Department searched the Mercedes, they found more than 100 counterfeit driver licenses displaying Held or Vogt’s photos, but with the personal information of the identity theft victims, as well as numerous debit and credit cards that had been opened in victims’ names. Officers also located two card printers and a card encoder in the vehicle. Held and Vogt were later found in possession of additional stolen and counterfeit access devices, in September 2019 and October 2019.
This case was investigated by the United States Postal Inspection Service and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Ogle County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ROCKFORD — A Creston man pleaded guilty Tuesday before U.S. District Judge Philip G. Reinhard to charges of transportation of child pornography via the internet and possession of child pornography.
ERIC CANCHOLA, 27, admitted in a written plea agreement that on March 21, 2018, he used a computer to send a video file over the internet to a fellow KIK chat application user. The image depicted a prepubescent female child engaged in sexually explicit conduct. Canchola also admitted that on May 8, 2018, he possessed two iPods, a desktop computer, and two portable hard drives that each contained more than 600 images of children engaged in sexually explicit conduct.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Ogle County Sheriff’s Office assisted in the investigation. The government is represented by Assistant U.S. Attorney Michael D. Love.
Sentencing is set for Dec. 11, 2020, at 9:00 a.m.
Canchola faces a mandatory minimum of five years and a maximum sentence of 20 years in federal prison for transporting child pornography, and a maximum of 20 years for possession of child pornography. The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines.
Navajo Man Pleads Guilty to MurderRead the Press Release
ALBUQUERQUE – Troy Livingston, 20, an enrolled member of the Navajo Nation who resides in Bread Springs, New Mexico, pled guilty in federal court in Albuquerque yesterday to second degree murder in Indian Country.
According to his plea agreement and other court records, Livingston beat Jane Doe, his girlfriend and the mother of his young child, with his hands, feet, and a metal flashlight, which inflicted severe injuries to her head, face and body. Livingston admitted that he killed Jane Doe with malice aforethought and that he acted with callous and wanton disregard for human life. The murder took place at a residence located in McKinley County and within the exterior boundaries of the Navajo Nation.
Livingston is currently in custody awaiting sentencing. He faces up to life in prison.
The Federal Bureau of Investigation worked jointly with the Navajo Department of Criminal Investigations to investigate this case. Assistant U.S. Attorneys David P. Cowen and Frederick T. Mendenhall are prosecuting the case.
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Miami Man Arrested in Connection with Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Another Florida resident has been arrested in connection with an access device fraud and money laundering scheme, for stealing credit and debit card numbers of gas station customers across the country, including in Albany, Broome and Montgomery Counties in the Northern District of New York.
The announcement was made by United States Attorney Grant C. Jaquith; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Inspector in Charge Joseph Cronin, Boston Division, United States Postal Inspection Service (USPIS).
The defendant arrested today was Yanio Montes De Oca, age 33, of Miami, Florida, charged with conspiracy to commit money laundering.
Yesterday, four other defendants were arrested:
- Yudiel Ceballos, age 33, of Miami, charged with conspiracy to commit access device fraud;
- Arley Gonzalez, age 34, of Miami, charged with conspiracy to commit access device fraud;
- Marlon Palacios, age 36, of Miami and Pittsburgh, Pennsylvania, charged with conspiracy to commit access device fraud and aggravated identity theft; and
- Yuny Hurtado Rodriguez, age 31, of Miami, charged with conspiracy to commit access device fraud.
These defendants were charged in a superseding indictment, which was unsealed yesterday. An initial indictment in this case, unsealed in October 2019, resulted in the arrests of:
- Joan Jesus Manso Dieguez, age 33, of Miami, charged with conspiracy to commit access device fraud and money laundering;
- Atnetys Ferreira, age 40, of Miami, charged with conspiracy to commit money laundering; and
- Hugo Hernandez, age 32, of Miami Lakes, Florida, charged with conspiracy to commit access device fraud and money laundering.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
According to the superseding indictment, from April 2016 through approximately December 2018, certain defendants – those charged with conspiring to commit access device fraud – built gas station skimming devices and installed those devices inside gas pumps so that they could steal credit and debit card data of customers who used the “pay at the pump” function to purchase gasoline. The defendants then used that data to create fraudulent debit and credit cards, which they or co-conspirators used to obtain money orders, gift cards, cash, and other merchandise. The indictment also alleges that certain defendants – those charged with conspiring to launder money – engaged in financial transactions with money orders and gift cards obtained through the scheme, to conceal the source of the funds and transfer money to bank accounts controlled by the members of the conspiracy.
This case is being investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers.
Methamphetamine Trafficking and Illegal Firearms Possession at Tribal Casino in Wittenberg Lead to Ten-year Prison SentenceRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that an individual received a sentence totaling ten years following convictions for possession with intent to distribute methamphetamine and illegal firearms possession at a tribal casino near Wittenberg, Wisconsin. The man, Matthew Hornung (age: 36), formerly lived in the Wausau area.
The sentence, imposed on August 5, 2020, by Senior United States District Judge William C. Griesbach, was the result of guilty pleas entered by the defendant to the following:
CHARGE
STATUTE SECTION
SENTENCE
Possession with Intent to Distribute Methamphetamine (5 grams or more)
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii)
60 months in prison, followed by 60 months of supervised release
Possession of a Firearm in Furtherance of Drug Trafficking
18 U.S.C. § 924(c)(1)(a)(i)
60 months in prison, consecutive to any other sentence, followed by 60 months of supervised release
According to court records, the investigation revealed that on October 16, 2019, Hornung was at a tribal casino located near Wittenberg in western Shawano County. While at the casino, Hornung possessed with the intent to distribute approximately 41 grams of methamphetamine with a purity of greater than 80%. Hornung fled on foot from officers who arrived to arrest him. During the short chase, Hornung threw a loaded 9mm semiautomatic handgun that he had on his person.
In sentencing the defendant, Judge Griesbach noted the seriousness of the crime the defendant committed and referred to a criminal record of similar conduct involving illegal drugs and firearms. Judge Griesbach also remarked upon the need to enforce laws related to firearm possession and to deter those would might consider similar actions.
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 Central Wisconsin Narcotics Task Force 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 Andrew J. Maier 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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Man sentenced for smuggling nearly 50 illegal aliens inside grain haulerRead the Press Release
CORPUS CHRISTI, Texas – A 49-year-old resident of Weslaco has been ordered to federal prison after admitting to transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick.
Jose Roberto Pompa pleaded guilty May 6.
Today, U.S. District Judge David S. Morales ordered Pompa to serve a 41-month sentence to be immediately followed by two years of supervised release.
On April 29, Pompa drove a covered grain hauler through the Sarita Border Patrol (BP) checkpoint, at which time a K-9 alerted to the vehicle. Authorities then referred Pompa to secondary inspection. They rolled back the cover on the trailer and utilized the built-in ladder to climb down and check. They ultimately found 48 people concealed inside the grain hauler. All were all determined to be illegally present in the United States from the countries of El Salvador, Cuba, Honduras, Peru, Mexico and Guatemala. One was an unaccompanied 15-year-old from Guatemala.
Pompa was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility in early 2021.
BP conducted the investigation. Assistant U.S. Attorney Amanda Gould prosecuted the case.
Man from Albuquerque pleads guilty to federal sex trafficking chargeRead the Press Release
Albuquerque, N.M. – Cornelius “Chip” Galloway, 37, of Albuquerque, New Mexico, was sentenced yesterday to 17 years in prison on federal sex trafficking charges.
In March, Galloway pled guilty in federal court, admitting to participating in a sex trafficking ring in Bernalillo County from October 2016 to February 2017. Galloway and other members of the ring operated a prostitution service in which they used force, threats, fraud and coercion to compel women to engage in sex for money. Galloway admitted the members of the ring advertised prostitutes online, rented hotel rooms for prostitution and arranged appointments with clients by phone. They did not allow the victims any say about hours, fees or locations, and forced them to turn over all the money they received from customers.
Co-defendant Danielle Galloway, to whom Cornelius Galloway was married during the time of their criminal acts, pled guilty on April 8, 2019 to conspiracy to commit sex trafficking.
Co-defendant Marcus Taylor, 35, has pled guilty to conspiracy to commit sex trafficking, while Matthew Woods, 31, is in custody and scheduled for trial on August 10. An indictment is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations along with the Albuquerque Police Department. Assistant U.S. Attorneys Letitia Carroll Simms and Jack E. Burkhead prosecuted the case.
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Man Pleads Guilty to Threatening to Burn Down African American ChurchRead the Press Release
NORFOLK, Va. – A North Carolina man pleaded guilty today to making a telephonic threat to burn down an African American church in Virginia Beach.
According to court documents, John Malcolm Bareswill, 63, called a Virginia Beach church with a predominantly African American congregation, made racially derogatory remarks, and threatened to set the church on fire. The threatening call was placed on June 7, 2020, several days after one of the church’s leaders took part in a public prayer vigil and peaceful demonstration for George Floyd.
Bareswill pleaded guilty to a criminal information charging a telephonic threat to use fire to kill, injure, or intimidate any individual, or unlawfully to damage or destroy a building. He faces a maximum penalty of ten years in prison when sentenced on Nov. 12. 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; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Anthony F. Zucaro, Jr., Interim Chief of Virginia Beach Police; and David Hutcheson, Chief of the Virginia Beach Fire Department, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Andrew Bosse is prosecuting the case. Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division provided significant assistance on 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-61.
MS-13 Members and Associates Arrested for Sex Trafficking a MinorRead the Press Release
ALEXANDRIA, Va. – Eleven members or close associates of the MS-13 gang were arrested this week relating to the sexual exploitation and physical abuse of a minor in northern Virginia and Maryland.
“Sex traffickers often prey upon the most vulnerable victims in our society, and when combined with the horrific abuses of a gang like MS-13, the effects can be devastating,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I have personally handled the prosecution of MS-13 members in northern Virginia for over a decade, including for gang-controlled sex trafficking, and I have led meaningful outreach efforts with the Hispanic community in order to raise public awareness of these serious threats. As I’ve noted before, no one suffers more at the hands of MS-13 than other individuals of Central American birth or ancestry, and cases like this are proof of the need for community leaders to step up, acknowledge this reality, and work together to be part of the solution. I want to thank our law enforcement partners for conducting this complex investigation and arrest operation in a diligent and professional manner, and for their sustained commitment to eradicating MS-13 from our communities. These defendants are charged with heinous offenses, but are appropriately presumed innocent unless or until proven otherwise.”
According to court documents, in Aug. 2018, a 13-year-old identified as MINOR 2 ran away from a youth home in northern Virginia. Shortly after running away, MINOR 2 was introduced to members of MS-13. Members of the gang beat MINOR 2 26 times with a baseball bat as part of a gang initiation. Gang members then sex trafficked MINOR 2 in Virginia and Maryland using the currency of cash and drugs. While in Virginia, men lined up to have sex with her in a wooded area behind one target’s apartment complex. The men gave her drugs in exchange for sex. She also was harbored in various apartments in northern Virginia where men paid her and her handlers cash for sex.
“MS-13 is known for their violence and intimidation, but the horrific crimes alleged in this case show how their cruelty and depravity know no bounds,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “The FBI and our community will not stand by while children are beaten, plied with drugs, and trafficked for sex. We will continue to work tirelessly with our law enforcement partners to disrupt violent gang activity and bring justice on behalf of the innocent victims on whom they prey.”
According to court documents, MINOR 2 was later beaten again with a bat 26 times. After the second bat beating, MINOR 2 was transported to Maryland, where she was sold to numerous gang members and other customers in exchange for cash. Law enforcement recovered photographs and videos of MINOR 2 while being sexually exploited, along with numerous social media messages regarding the trafficking and sexual exploitation of MINOR 2.
“Today’s arrests are a prime example of the commitment and dedication of local police officers and federal agents to safeguard northern Virginia against crime and violence,” said Edwin C. Roessler Jr., Chief of Fairfax County Police. “The Fairfax County police department will continue to use every resource and leverage the full weight of our agency and our federal partners to prevent violence by interdicting organized crime and holding alleged criminal street gangs accountable.”
Below is a list of individuals arrested in this operation:
Name, Age
Hometown
Charges
Moises Orlando Zelaya-Veliz, 25
Woodbridge, VA
Sex trafficking a minor victim under the age of 14 in or effecting interstate commerce (“Sex Trafficking of a Minor”) (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Sioni Alexander Bonilla Gonzalez, 20
Woodbridge, VA
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2) and Violent Crime in Aid of Racketeering Activity through assault with a dangerous weapon (“VICAR Assault”) (18 U.S.C. §§ 1959(a)(3) and 2)
Carlos Jose Turicios Villatoro, 22
Woodbridge, VA
VICAR Assault (18 U.S.C. §§ 1959(a)(3) and 2)
Jose Eliezar Molina-Veliz, 20
Woodbridge, VA
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Santos Ernesto Gutierrez Castro, 21
Woodbridge, VA
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Luis Alberto Gonzales, 31
Greenbelt, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Reina Elizabeth Hernandez, 48
Hyattsville, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Nelson Ezequiel Caballero Portillo, 24
College Park, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Gilberto Morales, 31
Hyattsville, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Jonathan Rafael Zelaya-Veliz, 24
Hyattsville, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Orlando Alexis Salmeron Funez, 38
Riverdale, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
If convicted, each defendant charged with sex trafficking of a minor faces a mandatory minimum sentence of 15 years in prison and a maximum penalty of life in prison, and each defendant charged with VICAR assault faces a maximum penalty of 20 years in prison if convicted of that offense. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 also is 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Robert E. Borstein, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Jarad L. Phelps, Chief of Prince William County Police, made the announcement. Assistant U.S. Attorneys Maureen C. Cain and Seth Schlessinger are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI Agents and Task Force Officers from the Washington D.C. Metropolitan Police Department, the Fairfax County Police, the Arlington County Police, the Alexandria City Police, the Prince William County Police and other surrounding agencies. Investigative and tactical assistance has been provided by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement Removal Operations, the FBI Baltimore Field Office, FBI Norfolk Field Office, FBI Richmond Field Office, along with the Prince George’s County Police and the Montgomery County Police.
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. 1:20-mj-215.
A criminal complaint is merely an accusation. Each defendant is presumed innocent until proven guilty.
Lifelong Marijuana User Sentenced to Two Years in Federal Prison for Possessing FirearmsRead the Press Release
A drug user who unlawfully possessed guns and who fired a warning shot to scare another person was sentenced August 4, 2020, to two years in federal prison.
Jordan James Booker, age 23, from Waterloo, Iowa, received the prison term after a January 6, 2020 guilty plea to possession of a firearm by a marijuana user.
In a plea agreement, Booker admitted that, on March 9, 2019, he shot a warning shot after an individual came to his house and attempted to buy a television with a counterfeit $100 bill. When that individual refused to leave Booker’s property, Booker fired a shot into the ground. Officers also recovered a second firearm from a closet in Booker’s residence. Booker admitted that he has been a marijuana user his whole life.
Booker was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Booker was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Booker was released on the bond previously set and is to surrender to the Bureau of Prisons at a date yet to be set.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2048.
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Leader of meth trafficking ring operating in Houston sentenced to 30 years in prisonRead the Press Release
HOUSTON – A 37-year-old Mexican citizen has been ordered to federal prison following his involvement in a conspiracy to possess with intent to distribute a large amount of meth within the Houston area, announced U.S. Attorney Ryan K. Patrick.
Custodio Carrasco-Garcia aka Ariel was illegally residing in Houston. He pleaded guilty Feb. 21.
Today, U.S. District Judge David Hittner handed Carrasco-Garcia a 360-month term of imprisonment. Not a U.S. citizen, Carrasco-Garcia is expected to face removal proceedings following the sentence.
At the hearing, the court heard information that he ran a local drug trafficking organization with providers in Mexico and participated in running a stash house. In handing down the sentence, Judge Hittner noted Carrasco-Garcia’s two previous drug convictions and that he was on parole when he committed this offense. The court found him accountable for 30,000 kilograms of narcotics including meth and cocaine and was head of the drug trafficking cell in the Houston area, further noting the extensive involvement of others and use of a stash house.
In March 2018, authorities conducted an undercover operation to purchase meth from a suspected narcotics distributor - later identified as Carrasco-Garcia. On April 6, 2018, law enforcement observed Carrasco-Garcia as he conducted a drug transaction involving a kilogram of crystal meth. He received $53,000 in exchange for the drugs. Carrasco-Garcia delivered another kilogram of meth May 18, 2018.
On May 7, 2019, authorities conducted an undercover operation during which Carrasco-Garcia sold 155.9 kilograms of crystal meth. They arrested him shortly after the operation, at which time he again was in possession of illegal substances.
Carrasco-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Houston Police Department and Harris County Sherriff's Office conducted the investigation. Assistant U.S. Attorney Celia Moyer prosecuted the case.
Laurel Pimp Pleads Guilty to Federal Charges for Enticing Three Women to Cross State Lines to Engage in ProstitutionRead the Press Release
Greenbelt, Maryland – Robert Carl Diienno, age 32, formerly of Laurel, Maryland, pleaded guilty on August 4, 2020, to three counts of enticement to travel in interstate commerce for the purposes of prostitution.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); and Chief Russell E. Hamill III of the Laurel Police Department.
According to his plea agreement, from at least November 2016 through June 2017, Diienno acted as a pimp for Victim 1, and at other times for Victims 2 and 3, who were all adult women. During that time, Diienno persuaded, enticed, induced, and coerced the victims to engage in a prostitution enterprise that included travel between Maryland and Washington, D.C., Virginia, Florida, and South Carolina in order to service “dates” in acts of prostitution. The victims provided any money earned from the commercial sex to Diienno, including transferring payments electronically through Internet-based payment services, such as PayPal and Venmo.
As detailed in his plea agreement, Diienno and the victims resided at a residence in Laurel, which was used as a group home and the base of the enterprise. “Meeting minutes” recovered from the house identify the location as “Duh ho house.” Some of the meeting minutes are signed by one of the victims and record attendance at the meeting; a report on potential new recruits; and the “Comptroller’s Report” that showed the amount earned by each of the victims related to their prostitution activities. In the residence and on Diienno’s laptop law enforcement recovered documents titled, “ho Training Manual,” “ho Rules,” and “Pimp/ho Contract.” The documents stated requirements that a “ho” submits to the control of the “Pimp,” including accepting any punishment the Pimp decides to inflict, with certain limitations, such as punishment must not incur permanent bodily harm, and must stop immediately if blood is drawn, among others.
A text exchange in late May 2017, between Diienno and Victim 3 demonstrated how Diienno coerced the victims. When Diienno persuaded Victim 3 to “walk the streets” in Washington, D.C., Victim 3 claimed to be ill. Diienno told Victim 3, “I care about seeing you become a strong ho and a strong person in general…Taking you home is what would show that I don’t care. That would mean I don’t give a f*** about your development as a person.”
On June 1, 2017, Laurel Police Department was called to the residence for a disturbance at that location. Victim 1 and Victim 3 were found hiding in a nearby treeline and reported that Diienno had assaulted Victim 1 when she refused to walk the streets. Diienno was arrested.
During the subsequent investigation, two firearms belonging to Diienno were recovered from the Laurel residence. At least one victim recalled seeing Diienno handle a firearm and was intimidated by that behavior.
As part of his plea agreement, Diienno must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Diienno faces a maximum sentence of 20 years in federal prison for each of the three counts of enticement to travel to engage in prostitution. 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. U.S. District Judge George J. Hazel has scheduled sentencing for December 8, 2020, at 2:00 p.m.
This case was investigated by law enforcement agencies that are members of the Prince George’s County Human Trafficking Task Force, part of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI and the Laurel Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin, who is prosecuting the case.
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Justice Department Sues to Block Geisinger Health’s Transaction with Evangelical Community HospitalRead the Press Release
The U.S. Department of Justice sued today to block Geisinger Health’s partial acquisition of its close rival, Evangelical Community Hospital. The complaint alleges that the agreement fundamentally alters the relationship between the parties, raising the likelihood of coordination and reducing Defendants’ incentives to compete aggressively against each other. As a result, the transaction is likely to lead to higher prices, lower quality, and reduced access to high-quality inpatient hospital services for patients in central Pennsylvania. The lawsuit was filed in the U.S. District Court for the Middle District of Pennsylvania.
“Preserving competition in healthcare markets is a priority for the Department of Justice because of its important impact on the health and well-being of Americans,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This agreement between Geisinger and Evangelical threatens to harm patients in central Pennsylvania by reducing competition that has improved the price, quality, and availability of healthcare in the region.”
Geisinger, a large hospital system in central and northeastern Pennsylvania, and Evangelical, an independent community hospital in Lewisburg, Pennsylvania, are close competitors for inpatient general acute-care hospital services for many patients in a six-county area in central Pennsylvania, with the two hospitals together accounting for approximately 71 percent of the market in this region.
According to the complaint, Geisinger has a history of acquiring community hospitals in Pennsylvania and initially sought to acquire Evangelical in full. Defendants recognized, however, that such an acquisition would likely violate the antitrust laws. Instead, on February 1, 2019, Geisinger and Evangelical entered into a partial-acquisition agreement, in part, to avoid antitrust scrutiny. This agreement, however, imposes significant entanglements between Defendants, reducing their incentives to independently compete against each other and increasing the likelihood of coordination. For example, the agreement gives Geisinger a 30 percent ownership interest in Evangelical and requires it to invest $100 million in Evangelical, much of which is earmarked for specified projects approved by Geisinger. These terms link the two organizations financially and set Geisinger up as a critical source of funding to Evangelical for the foreseeable future. According to Geisinger documents quoted in the complaint, Geisinger’s investment makes Evangelical “tied to us” so “they don’t go to a competitor.” The agreement also gives Geisinger rights of first offer and first refusal for certain transactions and joint ventures, which, in conjunction with other provisions in the agreement, make it difficult for Evangelical to partner with other healthcare entities. The complaint alleges that the provisions in the agreement work together to substantially lessen competition and unreasonably restrain trade in the market for inpatient hospital services in central Pennsylvania. Further, the agreement is not reasonably necessary to achieve any community benefits.
Geisinger Health is a regional, not-for-profit healthcare provider that operates hospitals, physician practices, outpatient facilities, and urgent-care centers in Pennsylvania and New Jersey. Geisinger’s flagship facility is Geisinger Medical Center, a 574-bed hospital located in Danville, Pennsylvania. Geisinger Health’s revenues in FY2019 were approximately $7.1 billion.
Evangelical Community Hospital is a 132-bed non-profit independent community hospital located in Lewisburg, Pennsylvania. It owns physician practices and operates an urgent-care facility and several other outpatient facilities in central Pennsylvania. Its revenues in FY2019 were approximately $259 million.
Justice Department Reaches Proposed Consent Decree to Resolve Hampton Roads Regional Jail InvestigationRead the Press Release
Today, the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia filed a complaint and a proposed consent decree with the Hampton Roads Regional Jail Authority.
The proposed consent decree would resolve the United States’ claims alleging unlawful conditions at the Hampton Roads Regional Jail in Portsmouth, Virginia. Under the proposed consent decree, the jail will develop and implement policies, procedures, and training regarding adequate medical and mental health care and appropriate housing for prisoners with serious mental illness. These measures include appropriate screening and assessment by qualified professionals, adequate treatment planning and suicide prevention practices, specialized mental health housing units, and a quality assurance program. Compliance with the proposed consent decree would be assessed by an independent monitor who will also provide technical assistance to the jail. The court for the Eastern District of Virginia will determine if the proposed consent decree is fair, adequate, reasonable, and necessary.
“This agreement will ensure that prisoners are no longer at risk of serious harm as a result of the Jail’s practices,” said Assistant Attorney General Eric Dreiband, head of the Civil Rights Division. “We commend the Hampton Roads Regional Jail Authority for its willingness to make changes to ensure that prisoners receive necessary medical and mental health care.”
“We are pleased that the Hampton Roads Regional Jail Authority has agreed to address the deficiencies our investigation uncovered,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “We look forward to continuing to work with the Hampton Roads Regional Jail to ensure that those incarcerated at the Jail receive adequate medical and mental health care, and that prisoners’ rights under the Constitution and the Americans with Disabilities Act are protected.”
The Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia initiated the investigation in December 2016 under the Civil Rights of Institutionalized Persons Act, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The investigation was also initiated pursuant to Title II of the Americans with Disabilities Act (ADA). In December 2018, the department provided the jail written notice of the alleged unlawful conditions and the minimum remedial measures necessary to address them. Specifically, the department concluded that there is reasonable cause to believe that the jail fails to provide constitutionally adequate medical and mental health care to prisoners, and places prisoners with serious mental illness in restrictive housing for prolonged periods of time under conditions that violate the Eighth and Fourteenth Amendments of the U.S. Constitution. The department also concluded that the jail’s restrictive housing practices discriminate against prisoners with mental health disabilities in violation of the ADA.
This matter is handled by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia. Individuals with relevant information are encouraged to contact the department via phone at (844) 644-0225 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Inmate Sentenced to over Two Years for Bribery SchemeRead the Press Release
NORFOLK, Va. – A former inmate of the Chesapeake City Jail was sentenced today to over two years in prison for conspiring to bribe a Chesapeake Sheriff’s Deputy to smuggle contraband, including cocaine and heroin, into the Chesapeake City Jail.
According to court documents, Jermarrieo Stigger, 35, paid Jenis Leroy Plummer to use his official position as Chesapeake Sheriff’s Deputy to smuggle heroin, cocaine, cell phones, e-cigarettes, and other contraband into the Chesapeake City Jail. From July 2017 through December 2018, Stigger knowingly and intentionally conspired with Plummer to engage in this scheme.
On numerous occasions throughout the conspiracy, Stigger arranged for Plummer to meet his girlfriend at various locations in Hampton Roads to pick up the contraband. At these meetings, Stigger’s girlfriend gave Plummer the illicit contraband in blue latex gloves. Plummer then smuggled the contraband into the jail and delivered the items to the inmate. In exchange for using his official position, Stigger’s girlfriend paid Plummer with cash, via CashApp, and via PayPal. Last year, the Chesapeake Sheriff’s Deputy was likewise sentenced to serve 30 months’ incarceration for his role in this scheme.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Melissa E. O’Boyle and Joseph E. DePadilla 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. 2:19-cr-183.
Imperial Pacific International and MCC International Saipan Executives Indicted on Federal ChargesRead the Press Release
WASHINGTON – Three executives from Imperial Pacific International (IPI) and MCC International Saipan have been indicted on federal criminal charges, including Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, harboring illegal aliens, unlawful employment of aliens, and international promotional money laundering announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Shawn N. Anderson for the Districts of Guam and the Northern Mariana Islands.
On Aug. 1, 2019, a federal grand jury returned a 71-count superseding indictment against Liwen Wu, aka Peter Wu, Jianmin Xu, and Yan Shi. The charges were unsealed today. The indictment alleges that these individuals committed criminal acts while holding executive positions with IPI and MCC International Saipan. The defendants are accused of utilizing criminal labor practices during ongoing construction of the Grand Mariana Casino Hotel and Resort on the island of Saipan. The defendants are further alleged to have transferred over $24 million into the United States to promote their illegal activity.
All three defendants are foreign nationals who currently reside outside of the United States. Upon returning to the United States, the individuals will be arrested, arraigned, and brought to trial in federal court.
The case is being investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, IRS Criminal Investigation, and the U.S. Department of Labor – Wage & Hour Division. Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric O’Malley are prosecuting the case.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Anyone with further information regarding this matter is urged to call the FBI’s Saipan Office at 670-322-6934.
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.
Note: A copy of the superseding indictment can be viewed here.
Illegal Alien Sentenced Regarding Smuggling of Illegal AliensRead the Press Release
Gulfport, Miss. – Jose Ramon Hernandez-Reyes, 33, an illegal alien from Mexico, was sentenced yesterday to 18 months imprisonment, followed by 3 years of supervised release, for illegal transportation or moving of an alien, announced U.S. Attorney Mike Hurst and Gilbert Trill, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans. Hernandez-Reyes pled guilty to the federal felony offense before Judge Guirola on June 4, 2020.
Additionally, upon completion of his prison sentence, Hernandez-Reyes will face removal proceedings by the U.S. Department of Homeland Security, Immigration & Customs Enforcement (ICE). If he were to unlawfully return to the United States within his term of supervised release, he would be subject to a separate prison sentence that could run consecutive to other penalties he could receive from additional prosecution. As a result of this felony conviction, and as an illegal alien to the United States, who had been formally removed in the past, Hernandez-Reyes could be subject to up to 10 years in prison were he to unlawfully return to the United States.
Hernandez-Reyes’ co-driver, Modesto Alvarado, 18, a United States citizen living in Houston, Texas, also pled guilty in connection with illegal alien smuggling in Harrison County. Alvarado pled guilty and was convicted on June 17, 2020, for the crime of misprison of felony. He is scheduled to be sentenced by Judge Guirola on September 15, 2020, at 10:00 a.m., and faces up to 3 years in federal prison, as well as 1 year of supervised release and up to a $250,000 fine.
Additionally, three illegal aliens who had been passengers of Hernandez-Reyes and Alvarado pled guilty and were sentenced for unlawful return of an alien after deportation or removal. Elias Delgado-Ortiz, 19, a citizen of Mexico; Jose Ernaides Aldana-Hernandez, 42, a citizen of El Salvador, and Orbin Noel Gomez-Suarez, 24, a citizen of Honduras, all pled guilty before Judge Guirola. Delgado-Ortiz was sentenced on June 2, 2020, to “time served” (or effectively 6 months and 1 day); and both Aldana-Hernandez and Gomez-Suarez were sentenced on June 3, 2020, to “time served” (or effectively 6 months and 2 days).
The three illegal alien passengers each also were sentenced to a term of 1 year of supervised release, and were to face Department of Homeland Security removal proceedings to remove them back to their home nations. If any of the three men were to unlawfully return again to the United States, during their term of supervised release, the offender could face separate penalties consecutive to imprisonment from additional prosecution. As a result of their felony convictions, if Delgado-Ortiz, Aldana-Hernandez or Gomez-Suarez were to unlawfully return again to the United States, the offender could face up to 10 years in federal prison.
On December 4, 2019, an agent of the South Mississippi Metro Enforcement Team (SMMET) conducted a traffic stop on Interstate 10 eastbound in Jackson County. The SMMET is a federal, state, local law enforcement task force that among its partner agencies, includes the United States Border Patrol, the Jackson County Sheriff’s Department and the City of Gautier Police Department. After making the traffic stop, the SMMET agent found that the driver, Modesto Alvarado, was a U.S. citizen who spoke fluent English, but did not have a valid driver’s license.
Including the driver, nine people were in the minivan, which was more than the vehicle was designed to carry or had seat belts to secure. The agent believed a smuggling event was taking place, and notified the U.S. Department of Homeland Security, Blue Lightening Operations Center, in Gulfport, and all occupants were transported to the Gautier Police Department for initial processing.
Homeland Security Investigations (HSI) special agents and task force agents responded to Gautier to interview the occupants. None of the nine minivan occupants had proper identification documents and eight were found to be illegally present in the United States. After interviewing all occupants, it was determined that seven passengers were being smuggled from Houston, Texas, to different locations throughout the United States. One of the two drivers (who rented the minivan) was Hernandez-Reyes who was determined to be the brother-in-law of Modesto Alvarado. Three of their passengers, Delgado-Ortiz, Aldana-Hernandez, and Gomez-Suarez were determined to have been lawfully deported or removed from the United States, and to have unlawfully returned to the U.S. after their removal.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, United States Border Patrol, Homeland Security Investigations, South Mississippi Metro Enforcement Team, Jackson County Sheriff’s Department, and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Home Health Aide Who Stole Elderly Clients’ Identity, Banking, and Credit Card Information and Used it to Commit Financial Fraud Charged in West Palm BeachRead the Press Release
West Palm Beach, Fl. – Jamie Jakia Cofer, a/k/a “Anna Bell,” 24, of Lake Worth, Florida, was arrested and charged with aggravated identity theft and fraudulent use of unauthorized access devices after using the social security numbers, dates of birth, and other identity and financial information of victims to steal money from their bank accounts, make unauthorized credit card purchases, and engage in other fraudulent transactions. During the alleged crimes, Cofer worked as a home health aide. Four of Cofer’s five known victims were elderly clients of Cofer’s, whose homes she entered with the supposed purpose of helping them with their home health needs.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office and Brian Smith, Chief, Juno Beach Police Department made the announcement.
According to allegations in the criminal complaint, for over a year starting in January 2019, Cofer worked as a home health aide servicing senior citizens in the South Florida community. During that time, Cofer gained access to her elderly clients’ social security numbers, dates of birth, bank accounts, credit cards, and other information. Without the knowledge or consent of these elderly clients, Cofer allegedly used the information to steal money from bank accounts, make herself an authorized user on credit accounts, make unauthorized purchases of items such as a mannequin head and wig stand, pay her mobile phone, insurance, and other bills, and send money to a prison inmate, among other things.
For example, Cofer allegedly used one elderly client’s bank account information to set up auto pay on one of Cofer’s utility accounts. Cofer allegedly used her own phone number and email to set up paperless account notifications to prevent this victim from receiving alerts.
Cofer had her initial appearance today in West Palm Beach federal court. Cofer is scheduled for a pre-trial detention hearing on Monday, August 10, 2020, before U.S. Magistrate Judge Dave Lee Brannon.
U.S. Attorney Fajardo Orshan commended the FBI and Juno Beach Police Department for its work on this investigation. She also thanked the Lantana Police Department for its assistance.
Assistant United States Attorney Sarah J. Schall is prosecuting this case.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
A criminal complaint is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-MJ-8273.
Herkimer County Woman Sentenced to 24 Months for Stealing Social Security FundsRead the Press Release
BINGHAMTON, NEW YORK – TammyLynn Sterling Barthelmess, age 62, of Little Falls, New York, was sentenced today to serve 24 months (two years) in federal prison for her guilty pleas to Conspiracy to Steal Government Funds and three Counts of Bank Fraud, announced United States Attorney Grant C. Jaquith, Special Agent in Charge John Grasso-Social Security Administration-Office of the Inspector General (“SSA-OIG”), New York Field Division, and New York State Police Superintendent Keith Corlett.
The sentence imposed today followed the defendant’s guilty plea during trial on February 26, 2020, in which Barthelmess admitted that she conspired from 2009 to 2013 with her daughter, Shannon Hardy Sekel, to conceal the death of D.W., a tenant of hers (Barthelmess) in Little Falls, New York. Barthelmess and others caused the body of D.W. to remain hidden until it was discovered in Little Falls on May 1, 2013, in an advanced state of decomposition inside a dog crate behind an unoccupied house owned by the defendant. Following the death of D.W., TammyLynn Sterling Barthelmess and Shannon Hardy Sekel used the checking account of D.W. to steal Social Security retirement benefits that were deposited in the account each month. The defendant and Sekel wrote hundreds of checks from D.W.’s checking account until the payments stopped in May 2013 following the discovery of D.W.’s body. As a further part of her previous guilty plea, Barthelmess admitted to making false statements to New York State Police Investigators who interviewed her after D.W.s skeletonized remains were located and reported to the City of Little Falls (New York) Police on May 1, 2013.
In imposing sentence today, Barthelmess was also ordered to serve a three-year term of supervised release following completion of her prison sentence, and ordered to pay restitution to the U.S. Social Security Administration (SSA) in the amount of $110,910.00.
Shannon Hardy Sekel, the defendant’s daughter, previously pled guilty to Conspiracy to Steal Government Money and Bank Fraud. Her sentencing is scheduled for August 19, 2020 in Binghamton, New York.
This case was investigated by the United States Social Security Administration-Office of Inspector General (SSA-OIG”), the New York State Police, and the City of Little Falls Police Department, and is being prosecuted by Assistant U.S. Attorneys Tamara B. Thomson and Richard R. Southwick, with assistance from the Herkimer County District Attorney’ Office.
Fourth Defendant Sentenced for Role in Methamphetamine Trafficking ConspiracyRead the Press Release
PIKEVILLE, Ky. – A Red Fox, Kentucky man, Michael Slone, 43, was sentenced to 120 months in federal prison on Tuesday, by U.S. District Judge Robert Wier, after previously admitting to conspiring with others to distribute 500 grams or more of methamphetamine.
According to his plea agreement, beginning in November 2017 and continuing through March 12, 2018, Slone conspired with Samantha Collins, 38, Danny Collins, 65, Kevin Quillen, 44, and Sabrina Chaffins, 46, to distribute 500 grams or more of methamphetamine. Specifically, Slone admitted to traveling to Louisville, on several occasions with a co-conspirator, to purchase pound-level quantities of methamphetamine from a source of supply. Slone would then return to Eastern Kentucky and resell the methamphetamine.
Slone is the fourth co-conspirator to be sentenced. The last co-conspirator, Chaffins, will be sentenced on November 10, 2020. The other co-conspirators have received the following sentences:
- Samantha Collins received 184 months in prison and five years of supervised release.
- Danny Collins received 251 months in prison and 10 years of supervised release.
- Kevin Quillen received 60 months in prison and four years of supervised release.
Under federal law, Slone and his co-conspirators must serve 85 percent of their prison sentences. Slone will also be under the supervision of the U.S. Probation Office for five years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge for ATF, Louisville Field Division; Commissioner Rodney Brewer, Kentucky State Police; Sheriff Mike Worrell, Letcher County Sheriff, jointly announced the sentences.
The investigation was directed by ATF, Kentucky State Police, and Letcher County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Jenna Reed.
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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Former Police Chief and Sheriff Candidate Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on August 4, 2020, Alexander P. Bebris (age: 50) of Neenah, Wisconsin, entered a guilty plea to a charge of distributing child pornography.
According to court filings, in September of 2018, Facebook notified the National Center for Missing and Exploited Children (NCMEC) that one of its users had sent images of child pornography via its messenger system to another Facebook user account. The Wisconsin Internet Crimes Against Children (ICAC) Taskforce launched an investigation and determined that the images were sent from an IP address in use at Bebris’s residence in Neenah. Investigators sought and obtained a search warrant for that residence.
On December 19, 2018, the search warrant was executed at Bebris’ residence. An examination of the hard drive on Bebris’ computer revealed images of pornography involving children ranging in age from approximately one to fifteen years old.
Court records also indicate that Bebris spent his career in law enforcement, most recently as Public Safety Chief in Oakwood, Ohio. In 2018, he ran unsuccessfully for the position of Outagamie County Sheriff.
Bebris faces a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison when he is sentenced in Green Bay’s Federal District Court on November 13, 2020.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Winnebago County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ 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.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Philadelphia City Controller’s Office Employee Pleads Guilty to Public Corruption ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jeffrey Blackwell, 47, of Philadelphia, PA, pleaded guilty today to charges of honest services wire fraud, filing a false tax return, and two counts of failure to file a tax return. The defendant was charged by Superseding Indictment in September 2019.
Blackwell, a former City of Philadelphia employee in the Office of the City Controller, committed a series of frauds, accepting more than $20,000 in bribes and kickbacks. Between 2013 and 2015, while serving in the Investigations Division of the Controller’s Office, Blackwell misused his official position to enrich himself by soliciting money in exchange for official actions or the promise of official actions, but rarely provided the promised permits or contracts.
At his plea hearing, he admitted that he solicited bribes from at least five individuals who were seeking permits or contracts from the City. One of these individuals owned a furniture store and paid Blackwell for permits to park a storage container on the street. The second person was renovating a house and paid Blackwell for permits to allow that renovation. The third person owned a construction business and paid Blackwell to obtain a plumbing permit. The fourth person owned an auto body shop and paid Blackwell in the hope of getting a license to buy and sell cars as well as a City contract to install decals on police vehicles. The fifth person, who was cooperating with the FBI at the time, told Blackwell that he needed permits from the City of Philadelphia to renovate a house.
Blackwell also admitted that he filed a false 2012 federal income tax return that falsely deducted travel expenses and falsely claimed a dependent, and he admitted that he failed to file a return as required by law for tax years 2013 and 2014.
“Philadelphians deserve public employees who do their jobs honestly and faithfully. Blackwell did not meet this standard – instead choosing to use his public position to extort money for himself,” said U.S. Attorney McSwain. “Now he will face the consequences. My Office will continue to attack and destroy the cancer of corruption wherever we find it in Philadelphia or elsewhere in the District.”
“Jeffrey Blackwell traded on his official position, seeking bribes in order to pad his pockets,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He put his own interests above those of the people he served, depriving Philadelphians of their right to honest services from city workers. The FBI is committed to protecting the integrity of government at all levels from the plunder of public corruption.”
“Mr. Blackwell had a duty to report all of his income to the IRS and to pay the correct tax on that income,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Mr. Blackwell’s decision to shirk this duty undermines public confidence in our tax system. His admission of guilt and acceptance of responsibility is a reminder that no one is above the law.”
“This case is one of a bad actor who abused his position and took advantage of the system for his own personal gain. When offenders, like this one, are held accountable, we’re taking an important step toward restoring the public’s trust in government and committing to the idea that Philadelphia works for everyone, not just the connected,” said Philadelphia City Controller Rebecca Rhynhart. “But it is important to underscore that this case is not reflective of all city employees, most of whom are hardworking, do their job with integrity and want to make Philadelphia a better place.”
The defendant faces a maximum possible sentence of 24 years’ imprisonment, a three-year period of supervised release, $600,000 fine, and a $225 special assessment. United States District Judge Chad F. Kenney set sentencing for December 2020.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service with assistance from the Philadelphia Office of Inspector General, and is being prosecuted by Assistant United States Attorney David J. Ignall.
Former Lake County Sheriff Re-Sentenced to 151 Months in PrisonRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that John Buncich, age 74, of Crown Point, Indiana was re-sentenced before District Court Senior Judge James T. Moody. This re-sentencing flowed from the Seventh Circuit Court of Appeals June 5, 2019 decision upholding Buncich’s conviction on two wire fraud counts (Counts 4-5) and one bribery count (Count 6).
Buncich was re-sentenced to 151 months imprisonment, 1 year of supervised release, $800 in restitution and a $35,000 fine. Buncich agreed to forfeiture in the amount of $38,000.00 as part of this federal prosecution
U.S. Attorney Kirsch said, “Buncich betrayed the public trust when he took bribes for personal gain. The sentence imposed today should send a strong message of deterrence to others who might consider engaging in the same illegal conduct as Buncich. We will continue to be vigilant and aggressive in our efforts to root out public corruption wherever it exists across the district.”
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Philip C. Benson and Maria N. Lerner. This re-sentencing proceeding was handled by Assistant United States Attorney Philip C. Benson.
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Former Kane County Resident Charged in Alleged Financial Fraud Scheme That Exploited Senior CitizensRead the Press Release
ST. GEORGE, UT – A former Kane County resident, who solicited money from victims with fraudulent promises that he was on the verge of receiving hundreds of millions of dollars – even billions – and would be able to pay a large return on their investment, will be arraigned Thursday morning in federal court in St. George.
Kurt Jurgens Bauer, 56, who has also lived in Las Vegas, is charged with three counts of wire fraud and two counts of false impersonation of an employee of the United States in a recently unsealed indictment. The arraignment will be at 9 a.m. before U.S. Magistrate Judge Paul Kohler in St. George. Bauer is in custody. His continued detention status will also be considered during the Thursday hearing.
“This case involves a defendant who allegedly exploited the trust of hardworking and honest people, including elderly citizens of Southern Utah and Nevada,” U.S. Attorney John W. Huber said. “We prioritize investigations and prosecutions involving elderly victims. As I’ve said before – we revere our elders, we do not defraud them,” U.S. Attorney John W. Huber said today. “This case is also a priority for us because it includes allegations Bauer impersonated federal judges and a federal court administrator as a part of his fraud scheme.”
“Kurt Bauer is suspected of preying on some of the most vulnerable people in our community. We take fraud violations seriously, especially when these crimes are committed against the elderly who tend to be more trusting of such schemes. We will continue to work with our partners in the FBI and US Attorney’s Office to aggressively pursue, investigate and prosecute cases like the one involving Kurt Bauer,” Kane County Sheriff Tracy Glover said today.
“Kurt Bauer’s alleged crimes were based on lies that he perpetuated for many years,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. “The hundreds of thousands of dollars he’s accused of swindling from his victims, including the elderly, didn’t go toward legitimate investments, but to pay his bills. While the victims may never see their money again, we hope the hard work of investigators and prosecutors sends a message that ultimately, crimes like this don’t pay.”
According to the indictment, beginning in 2011 and continuing until April 2020, Bauer devised an advance-fee scheme to solicit money from victims using a variety of what the indictment alleges were fraudulent representations and promises.
Bauer told victims that the United States District Court for the District of Nevada had frozen funds due to him, according to the indictment. Bauer told victims that the court required “bond” payments to secure the frozen funds, and he solicited victims to make the payments – often on a weekly basis, the indictment alleges. Bauer had various explanations for the court’s action.
Bauer represented to victim investors that the court was going to release funds to him in the near future. Once the funds were released, the victims would receive large returns in exchange for their upfront payments.
In reality, Bauer fabricated the information he provided to victims about his wealth and the court process to release funds. Bauer has relatively little wealth, the indictment says, apart from money he took from victims. He had no prospect of receiving large amounts of money and no court was holding money Bauer was entitled to. And, the indictment alleges, Bauer had no way of paying victims the promised returns.
The victims’ bond payments were not sent to a court, the indictment alleges. Bauer spent the money on himself including paying hotel bills, credit card payments, and restaurants, among other things.
The indictment alleges Bauer received more than $300,000 from victims, including at least $200,000 from victims identified as C.B., age 82, and L.B., age 80, in the indictment.
To further the scheme, Bauer created false identities of a New York attorney, a federal court employee, and a billionaire that he used to make misrepresentations to and solicit payments from victims. The indictment alleges he created phone numbers and email accounts for the false identities. Communications between the victims and the false identities were actually between the victims and Bauer or one of his accomplices.
In furtherance of the scheme, Bauer and his accomplices impersonated federal judges and a federal court administrator during communications with victims to convince them the court process was real and to persuade victims to continue making payments.
Bauer was arrested following the return of the sealed federal indictment in late July. He had an initial appearance on the charges July 30, 2020, in federal court in St. George.
He faces up to 20 years in federal prison for each count of wire fraud and up to three years for each count of false impersonation of an employee of the United States if convicted of the charges. Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in the U.S. Attorney’s Office in St. George and Salt Lake City are prosecuting the case.
U.S. Attorney Huber expressed appreciation for the significant investigative efforts of the FBI and the Kane County Sheriff’s Office, who are assisting with the case.
Former Homeland Security Investigator Sentenced to over 10 Years for Money Laundering, False Statements, and Tax Evasion ConvictionsRead the Press Release
SAN DIEGO, Calif. – Today, Tyrone Cedric Duren, 50, of Bonsall, California was sentenced by Judge John A. Houston to 130 months in prison, followed by three years of supervised release. The court also ordered the forfeiture of Duren’s primary residence, a money judgment of $275,000, and restitution to the Internal Revenue Service. Duren previously pleaded guilty to 19 counts including charges of money laundering, making false statements, and tax evasion.
While working as a federal agent specializing in the investigation of bulk cash smuggling, Duren stole money from individuals smuggling drug proceeds to Mexico. Duren then laundered those funds by depositing them into personal and business accounts, and used the stolen cash for personal purchases. Over several years, Duren used his position as a federal agent to place GPS trackers on vehicles used to transport proceeds from drug sales. Duren then took some of the drug money after it was seized, laundered it into his own accounts, and spent it on real estate and international travel.
For example, during a July 2013 traffic stop, Duren stole money concealed in the hidden compartment of a vehicle on which he had previously placed a GPS tracker. In March 2014, Duren was tracking a vehicle he suspected to be loaded with cash as it headed toward Mexico. The vehicle was stopped and searched at a Border Patrol Checkpoint and found to contain a large amount of cash concealed in laundry detergent boxes. Duren took custody of the seized cash, but before putting it into evidence, Duren took over $100,000 for himself. He later admitted that he deposited the stolen money into business and personal accounts to conceal those thefts. Duren then failed to file taxes for 2013 to further hide his theft. Duren also lied numerous times to agents who were investigating his crimes.
Agents from the Department of Homeland Security-Office of Inspector General, Immigration and Customs Enforcement-Office of Professional Responsibility and Homeland Security Investigations, U.S. Customs and Border Protection-Office of Professional Responsibility, and the Internal Revenue Service-Criminal Investigations conducted this investigation. The United States Attorney’s Office for the Southern District of California is recused. Assistant United States Attorneys Kevin Rapp, Abbie Broughton Marsh, and Mark Wenker of the United States Attorney’s Office for the District of Arizona prosecuted this case.
CASE NUMBER: CR-16-02892-JAH
RELEASE NUMBER: 2020-066_Duren# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Guatemalan Official Who Used Drug Trafficking Proceeds and Other Dirty Cash to Bribe Corrupt Politicians Charged in Miami Federal CourtRead the Press Release
Miami, Fl. -- South Florida federal prosecutors have charged a former Economics Minister of Guatemala, Asisclo Valladares Urruela, 44, with helping to launder close to $10 million of illegal drug proceeds and other ill-gotten money. Prosecutors allege that during a four-year conspiracy, Valladares Urruela enabled the illegal drug trade by creating a demand for untraceable cash, cash that Valladares Urruela used to bribe corrupt Guatemalan politicians.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Robert E. Bornstein, Acting Special Agent in Charge, FBI, Washington Field Office Criminal Division, and Kevin W. Carter, Special Agent in Charge, DEA, Miami Field Division, made the announcement.
According to the criminal complaint affidavit, former Minister Valladares Urruela’s co-conspirators included a major drug trafficker, a corrupt Guatemalan politician, and a crooked Guatemalan bank employee. The bank employee was the conduit between those with the dirty cash (the drug trafficker and the corrupt politician) and the person who needed it (Valladares Urruela). Maximizing on the employee’s access to and familiarity with banking mechanisms, the co-conspirators executed a sophisticated money laundering scheme that allegedly involved, among other activities, unlawful money exchanges between parties in different countries through “mirror transactions” that left no paper trails, development of fraudulent investment opportunities that yielded false financial gains, creation of sham documents to make ill-gotten gains appear legitimate, and steady hand-to-hand deliveries of large amounts of cash.
This money laundering conspiracy lasted from 2014 to 2018 and benefitted each co-conspirator. The bank employee got a cut of the various financial transactions. The drug trafficker and corrupt politician were able to exchange their dirty cash for what appeared to be legitimate earnings, complete with papers trails. This allowed the criminals to enjoy their money openly and publicly, as well as to move money to other locations secretly, including to different locations in South America. Valladares Urruela regularly received backpacks, duffel bags, and brief cases full of dirty, untraceable cash that he knew came from drug trafficking and corruption and used it to bribe Guatemalan politicians, according to the complaint affidavit. Valladares Urruela’s demand for bribe cash was allegedly so great, he allegedly once remarked to a co-conspirator that politicians must think money grows on trees.
Some of the money from Valladares Urruela’s alleged scheme with his co-conspirators passed through U.S. bank accounts. At least two Miami companies allegedly helped the co-conspirators move money to South America.
“This case demonstrates the unfortunate links that sometimes exist in Central and South American countries among drug traffickers, business people, and corrupt politicians,” said U.S. Attorney Ariana Fajardo Orshan. “Although Miami serves as a bridge between the United States and our neighbors to the south, drug traffickers, corrupt officials, and their dirty money are not welcome in our district. The U.S. Department of Justice stands with its law enforcement partners in neighboring countries in the fight against money laundering and narcotics trafficking.”
“This investigation demonstrates that the FBI and our partners will not stop at the borders to identify and locate criminals,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI will continue to work with our foreign and domestic partners to bring to justice Asisclo Valladares Urruela and others like him who perpetuate the unfortunate link of drug trafficking and political corruption that sometimes exists."
“No one is ever above the law,” said DEA Miami Field Division Special Agent in Charge Kevin W. Carter. “Government officials, both foreign and domestic, are expected to obey laws. When corruption exists, it poisons the welfare of nations and almost always involves other types of crimes. The DEA Miami Field Division will always support its law enforcement partners, both national and international, to combat drug trafficking and all other criminal activities that go along with it.”
The prosecution was part of Operation Black Mass, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking and money laundering enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
U.S. Attorney Fajardo Orshan thanked the following entities and agencies for their collaboration, investigative work and assistance with this case: the Narcotic and Dangerous Drug Section of the Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, the U.S. Department of Justice’s Office of International Affairs, FBI’s Miami Field Office, FBI’s Office in Guatemala, DEA’s Office in Guatemala, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Miami and San Diego, and Customs and Border Protection in Miami.
Assistant U.S. Attorney Walter M. Norkin is prosecuting this case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
The criminal complaint charges Valladares Urruela with conspiring to commit money laundering. The charges in a criminal complaint are merely accusations, and the defendant is presumed innocent unless proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under Case No. 20-MJ-03308.
signed_complaint_valladares.pdfFelon sent back to prison for transporting illegal guns in vehicleRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old resident of Pharr has been ordered to federal prison after admitting to being a felon in possession of six firearms, announced U.S. Attorney Ryan K. Patrick.
Erasmo Elizondo-Moreno pleaded guilty May 6.
Today, U.S. District Judge David S. Morales ordered Elizondo-Moreno to serve a 66-month sentence to be immediately followed by three years of supervised release.
“When firearms enter the gray market, they are often destined to further a criminal enterprise which fuels violent crime,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We are pleased to work with our partner agencies to take these illegally possessed guns off the street before they do just that.”
On June 7, 2019, authorities pulled Elizondo-Moreno over for a traffic violation. At that time, he consented to a search of his vehicle. Law enforcement soon found a tool bag in the trunk which contained six pistols concealed inside four vacuum-sealed bags.
He later admitted to transporting the firearms to the Rio Grande Valley in exchange for $500.
Having been convicted April 25, 2019, for possessing marijuana, he is prohibited per federal law of possessing any firearms or ammunition.
Elizondo-Moreno has been in custody since his arrest for a pretrial violation on May 2 where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Kleberg County Sheriff’s Office. Assistant U.S. Attorney Amanda Gould prosecuted the case.
Federal grand jury indicts Hamilton man with sexually trafficking, exploiting teenRead the Press Release
CINCINNATI – A federal grand jury has charged Malikai Willis, 24, of Hamilton, Ohio, with sexually trafficking and exploiting a child in an indictment returned here.
Malikai appeared in federal court today on the four-count indictment.
According to the indictment, from September 2019 through January 2020, Willis trafficked a 16-year-old female and caused her to engage in commercial sex acts.
Additionally, in November 2019 and January 2020, Willis allegedly created child pornography when he created three sexually explicit videos of the victim.
Sex trafficking a minor is punishable by 10 years up to life in prison. Producing child pornography carries a potential prison sentence of 15 to 30 years.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Jim Neil and Hamilton County Prosecutor Joe Deters announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Exfuncionario guatemalteco que utilizó las ganancias del narcotráfico y otros fondos sucios para sobornar a políticos corruptos ha sido acusado en el Tribunal Federal de MiamiRead the Press Release
Miami, Florida. — Los fiscales federales del sur de Florida han acusado al exministro de Economía de Guatemala, Asisclo Valladares Urruela, de 44 años, de ayudar a lavar cerca de $ 10 millones de ganancias ilegales de drogas y otro dinero mal habido. Los fiscales alegan que, durante una conspiración de cuatro años, Valladares Urruela permitió el comercio ilegal de drogas al crear una demanda de efectivo sin rastro, que Valladares Urruela solía usar para sobornar a políticos guatemaltecos corruptos.
El anuncio fue hecho por Ariana Fajardo Orshan, Fiscal Federal de EE. UU. para el Distrito Sur de Florida; Robert E. Bornstein, Agente Especial Interino a cargo de la División Criminal de la Oficina de Campo de Washington del FBI; y Kevin W. Carter, Agente Especial a cargo de la División de Campo de Miami de la DEA.
Según la declaración jurada de la denuncia penal, los cómplices del exministro Valladares Urruela incluían a un importante traficante de drogas, un político guatemalteco corrupto y un empleado bancario guatemalteco tramposo. El empleado del banco era el enlace entre los que tenían el dinero sucio (el traficante de drogas y el político corrupto) y la persona que lo necesitaba (Valladares Urruela). Usando al máximo el acceso del empleado a los mecanismos bancarios y su familiaridad con ellos, los cómplices ejecutaron un sofisticado plan de lavado de dinero que supuestamente involucraba, entre otras actividades, intercambios ilegales de dinero entre partes en diferentes países a través de “transacciones espejo” que no dejaban rastros en papel, el desarrollo de oportunidades de inversión fraudulentas que produjeron ganancias financieras falsas, la creación de documentos falsos para hacer que las ganancias mal habidas parecieran legítimas, y la entrega personal constante de grandes cantidades de efectivo.
Esta conspiración de lavado de dinero duró de 2014 a 2018 y benefició a cada uno de los cómplices. El empleado del banco obtuvo una tajada de las diversas transacciones financieras. El traficante de drogas y el político corrupto pudieron cambiar su dinero sucio por lo que parecía ser ganancias legítimas, con todo y rastros en papel. Esto permitió que los criminales disfrutaran su dinero de manera abierta y pública, así como mover el dinero a otros lugares en secreto, incluyendo a diferentes lugares en Sudamérica. Valladares Urruela recibió con regularidad mochilas, bolsas de viaje y portafolios llenos de efectivo sucio y no trazable que él sabía que provenían del narcotráfico y la corrupción y lo utilizó para sobornar a políticos guatemaltecos, según la declaración jurada de la denuncia. Supuestamente, la demanda de dinero en efectivo para sobornos de Valladares Urruela fue tan grande, que se supuestamente le dijo una vez a un cómplice que los políticos han de pensar que el dinero crece en los árboles.
Parte del dinero del presunto esquema de Valladares Urruela con sus cómplices pasó por cuentas bancarias estadounidenses. Al menos dos compañías de Miami supuestamente ayudaron a los cómplices a mover el dinero a Sudamérica.
“Este caso muestra los desafortunados vínculos que a veces existen entre los traficantes de drogas, los empresarios y los políticos corruptos en los países de Centroamérica y Suramérica,” dijo la Fiscal Federal Ariana Fajardo Orshan. “Aunque Miami sirve como un puente entre los Estados Unidos y nuestros vecinos del sur, los traficantes de drogas, los funcionarios corruptos y su dinero sucio no son bienvenidos en nuestro distrito. El Departamento de Justicia de los Estados Unidos apoya a sus socios de aplicación de la ley en los países vecinos en la lucha contra el lavado de dinero y el tráfico de narcóticos.”
“Esta investigación demuestra que el FBI y nuestros socios no se detendrán en las fronteras para identificar y localizar a los criminales,” dijo Robert E. Bornstein, Agente Especial Interino a cargo de la División Criminal de la Oficina de Campo de Washington del FBI. “El FBI continuará trabajando con nuestros socios extranjeros y nacionales para llevar ante la justicia a Asisclo Valladares Urruela y otros como él que perpetúan el desafortunado vínculo del narcotráfico y la corrupción política que existe a veces.”
“Nadie es superior a la ley,” dijo el Agente Especial a cargo de la División de Campo de Miami de la DEA, Kevin W. Carter. “Se espera que los funcionarios gubernamentales, tanto extranjeros como nacionales, obedezcan las leyes. Cuando existe la corrupción, envenena el bienestar de las naciones y casi siempre involucra otros tipos de crímenes. La División de Campo de Miami de la DEA siempre apoyará a sus socios de aplicación de la ley, tanto nacionales como internacionales, para combatir el tráfico de drogas y todas las demás actividades criminales asociadas.”
La acusación fue parte de la Operación Black Mass, que es el resultado de los esfuerzos continuos de la Fuerza de Tarea contra el Crimen Organizado y la Droga (OCDETF), una alianza entre las autoridades federales, estatales y locales de aplicación de la ley. La misión de la OCDETF es identificar, investigar y enjuiciar a miembros de alto nivel del tráfico de drogas y las iniciativas de lavado de dinero, reuniendo la experiencia combinada y las habilidades únicas de las fuerzas de aplicación de la ley federales, estatales y locales.
La Fiscal de Estados Unidos Fajardo Orshan agradeció a las siguientes entidades y agencias por su colaboración, trabajo de investigación y ayuda en este caso: la Sección de Narcóticos y Drogas Peligrosas de la División Criminal del Departamento de Justicia, la Oficina para el Distrito Sur de California del Fiscal de Estados Unidos, la Oficina de Asuntos Internacionales del Departamento de Justicia de EE. UU., la Oficina de Campo del FBI en Miami, la oficina del FBI en Guatemala, la oficina de la DEA en Guatemala, la Oficina de Investigaciones de Seguridad Nacional en Miami y San Diego del Servicio de Inmigración y Control de Aduanas de EE. UU., y la Oficina de Aduanas y Protección Fronteriza en Miami.
El Fiscal Federal Auxiliar Walter M. Norkin está procesando este caso. El Fiscal Federal Auxiliar Daren Grove está manejando los decomisos.
La denuncia penal acusa a Valladares Urruela de conspirar para cometer lavado de dinero. Las acusaciones contenidas en la denuncia penal son meramente acusaciones, y el acusado se presume inocente a menos que se demuestre su culpabilidad en un tribunal de justicia.
Los documentos de la corte y la información relacionada se pueden encontrar en el sitio web de la Corte del Distrito Sur de Florida en www.flsd.uscourts.gov o en http://pacer.flsd.uscourts.gov, bajo el No. de Caso 20-MJ-03308.
signed_complaint_valladares.pdf