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11 September 2020
Raleigh Credit Repair Orchestrator and Ring of 11 Participants Charged with Bank and Wire Fraud, Aggravated ID Theft, Conspiracy and PerjuryRead the Press Release
United States Attorney Robert J. Higdon, Jr. announced the unsealing of a Second Superseding Indictment charging the following: Michael Anthony Griffin, Sr. (“MGriffin”) 52, of Knightdale, North Carolina; Regina Griffin (MGriffin’s sister), 48, of Raleigh, North Carolina; Angela Griffin (MGriffin’s wife), 52, of Knightdale, North Carolina; Creshun Alexandria Griffin (MGriffin’s daughter), 26, of Knightdale, North Carolina; Sharon Annita Edmond (MGriffin’s sister), 51, of Raleigh, North Carolina; Katina Griffin Perry (MGriffin’s sister), 47, of Raleigh, North Carolina; Harvey Griffin (MGriffin’s brother) 46, of Raleigh, North Carolina; Melvin Griffin (MGriffin’s brother), 44, of Knightdale, North Carolina; Shawn Allen Farmer, 51, of Cary, North Carolina; Jasmine Mariah Davis, 28, of Lakeland, Florida; Tyrone Edmonds, 46, of Weldon, North Carolina; Conscina Marie Brooks, 27, of Knightdale, North Carolina; and Jasper Deonta Goodman, 46, of Raleigh, North Carolina. The charge includes 50 counts, consisting of Bank Fraud, Wire Fraud, Conspiracy to Commit Bank Fraud, Making False Statements to a Bank on Loan, Aggravated Identity Theft, and Perjury.
The United States Attorney stated, “After months of continuing investigation we are finally bringing to justice many of those who participated in this expansive fraud upon banks, merchants, and the credit market as a whole. The ongoing pandemic has not slowed our efforts to hold accountable all of those who would engage in the frauds charged in this case.”
The indictment charges that MGriffin, operating from his business location in Raleigh and home in Knightdale, accepted fees from clients for alleged credit repair services. The indictment alleges that, in reality, Griffin was creating fictitious credit profiles and fraudulently altering client credit data through the use of fictitious police reports.
The indictment further charges that various defendants conspired with MGriffin to defraud Synchrony Bank, a Lowe’s credit card provider, by opening credit accounts in the name of fraudulent identities, cashing out the accounts through prepaid card purchases, and then defaulting on the credit accounts. The indictment also charges various defendants with similar frauds against other banks, including Capital One and Discover.
The indictment further charges various defendants with using fraudulent identities, bank statements, pay stubs, and other documents, for use in defrauding banks, lenders, merchants, and landlords. In one such charge, MGriffin is charged with presenting a fraudulent social security card and number to Johnson Automotive to purchase a Hyundai Genesis, a vehicle with a purchase price of more than $72,000.
The indictment further charges the defendants with aggravated identity theft, in that many of the fraudulent identities utilized in the scheme involved the use of a stolen social security number.
Lastly, certain defendants are further charged with committing perjury for lying to a federal grand jury.
The charges were unsealed today following the arrest of several of the defendants.
If convicted, the maximum punishment for committing Bank Fraud and Conspiracy to Commit Bank Fraud, violations of Title 18, United States Code, Sections 1344 and 1349, is not more than 30 years in prison. The maximum punishment for Wire Fraud, a violation of Title 18, United States Code, Section 1343, is not more than 20 years imprisonment. The maximum punishment for Making a False Statement to a Bank on a Loan is not more than 30 years in prison. The maximum penalty for committing Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1), is not less than two years imprisonment, consecutive to any other term of imprisonment imposed.
The investigation of this case continues, and is being conducted by the Internal Revenue Service Criminal Investigation with the assistance of the United States Marshals Service and the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore represents the United States.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Previously convicted felons sentenced to federal prison for crimes including illegal possession of firearmsRead the Press Release
AUGUSTA, GA: Two men will serve federal prison terms after being sentenced as convicted felons for crimes including illegal possession of firearms.
Shakur Wafi Abdullah, a/k/a Antonio Griffin, 37, of Augusta, was sentenced to 70 months in prison by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to Possession with Intent to Distribute Cocaine, and Possession of a Firearm by a Convicted Felon; and Jesse Daniel Roberts, 51, of Augusta, was sentenced to 57 months in prison by Chief Judge Hall after pleading guilty to Possession of a Firearm by a Convicted Felon, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of their prison terms, each defendant will be required to serve three years of supervised release.
There is no parole in the federal system.
“Our streets are safer when repeat offenders with illegally possessed firearms are taken off our streets, and our office will continue to make them a high priority for prosecution,” said U.S. Attorney Christine. “In accordance with the U.S. Attorney General’s priorities announced as part of Project Guardian, our law enforcement partners likewise are committed to protecting our citizens from gun criminals.”
As described in court documents and testimony, Abdullah was arrested in February 2019 after being involved in a vehicle crash on Peach Orchard Road in Augusta. Witnesses saw him hide items from his vehicle behind a nearby business, and Richmond County Sheriff’s deputies later found a bundle containing packages of cocaine and a pistol that Abdullah admitted belonged to him. Abdullah was on probation after serving 11 years of an 18-year sentence on a state charge of aggravated assault.
Roberts, who had recently been released on parole from state prison, was arrested in August 2019 when agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers from the Georgia Department of Supervision (DCS) conducted a probation visit to Roberts’ motel room and found an AR-15 rifle and ammunition.
“These defendants have no business carrying firearms, given their previous criminal conduct,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “These sentences have made the Augusta area safer.”
The cases were investigated by the ATF, the U.S. Drug Enforcement Administration, the DCS and the Richmond County Sheriff’s Office, and prosecuted for the United States by Special Assistant U.S. Attorney Edwin Caban and Assistant U.S. Attorney Hank Syms.
Pittsburgh Man Indicted for Possession with Intent to Distribute Fentanyl and CocaineRead the Press Release
NEWARK, N.J. – A Pittsburgh, Pennsylvania, man was indicted today on charges of possessing with intent to distribute fentanyl and cocaine, U.S. Attorney Craig Carpenito announced.
Kenswick Austin, 45, is charged with one count of possession with intent to distribute more than 400 grams of fentanyl and one count of possession with intent to distribute at least 500 grams of cocaine. Austin was previously charged by complaint on March 31, 2020.
According to the documents filed in this case and statements made in court:
Between March 13, 2020, and March 28, 2020, Austin participated in multiple meetings and telephone calls to arrange the shipment to New Jersey of a package containing controlled substances. On March 30, 2020, the package arrived at an agreed-upon location, and Austin accompanied several other individuals to take possession of it. After a trained narcotics detection canine alerted to the presence of narcotics, law enforcement searched the package pursuant to a federal search warrant and found it to contain approximately one kilogram each of substances confirmed by laboratory testing to be fentanyl and cocaine.
The charge of possession with intent to distribute more than 400 grams of fentanyl carries a minimum punishment of 10 years in prison, a maximum of life in prison, and a $10 million fine. The charge of possession with intent to distribute 500 grams or more of cocaine carries a minimum punishment of five years in prison, a maximum of 40 years in prison, and a $5 million fine.
U.S. Attorney Carpenito credited special agents and task force officers of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason Molina, with the investigation leading to the charge. He also thanked the Bound Brook, New Jersey, Police Department, under the direction of Chief of Police Vito Bet, and the Somerset County Prosecutor’s Office’s Crime Suppression Unit, under the direction of Prosecutor Michael H. Robertson, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Cybercrime Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pittsburgh Drug Dealer Sentenced to Nearly 6 Years in PrisonRead the Press Release
PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 70 months of imprisonment and four years of supervised release on his convictions of conspiracy to possess with intent to distribute heroin and fentanyl and possession with the intent to distribute heroin, cocaine base, and cocaine, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman, IV imposed sentence on James Givner, 27.
According to information presented to the Court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Intercepted communications demonstrated that Givner sold heroin, fentanyl, and cocaine base to customers, as well as facilitated drug transactions for co-defendant Christopher Highsmith. The court was further informed that during a traffic stop on January 14, 2019, the Allegheny County Police, Givner possessed more than 180 stamp bags of heroin, and a baggie containing cocaine base. In connection with his guilty plea, Mr. Givner accepted responsibility for distributing or possessing with intent to distribute 220 grams of heroin and fentanyl, and six grams of cocaine base. He also admitted to possessing a firearm in connection with his drug trafficking activity.
Assistant United States Attorneys Christy C. Wiegand and Brendan McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Oswego County Man Pleads Guilty to Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Christopher Hoyt, age 34, of Pulaski, New York, pled guilty yesterday to one count each of transportation of child pornography, distribution of child pornography, receipt of child pornography, and possession of child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon, Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI) and New York State Police Superintendent Keith Corlett.
As part of his guilty plea, Hoyt admitted that he uploaded an image of child pornography to the social media platform Tumblr, making it available for others to view. He also admitted using the social media platform Wickr Me to chat with another user from whom he received images and videos of child pornography, and to whom he distributed a link allowing the user to access a collection of over 1,900 images and 122 videos of child pornography. Additionally, Hoyt admitted that at the time law enforcement officers recovered his cellular telephone, he possessed on it 1,445 images and 32 videos depicting child pornography.
Sentencing is scheduled for January 5, 2021, before Hon. Thomas J. McAvoy in Binghamton, New York, at which time Hoyt faces a minimum sentence of 5 years, with a maximum of up to 20 years in prison on each count, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. Hoyt will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the New York State Police and the Department of Homeland Security, Homeland Security Investigations (HSI) and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Eastern District of Wisconsin. Operation Legend launched in Milwaukee on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Jeffrey R. Jones
“The defendant is alleged to have maintained an arsenal of firearms to facilitate his drug trafficking,” said U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin. “By bringing federal agents to work side-by-side with state and local investigators, Operation Legend is leading to prosecutions that will make Milwaukee a safer place to live.”
Jeffrey R. Jones was charged on Aug. 25, 2020, with federal drug trafficking and firearms offenses.
According to the indictment, Jones is charged with seven drug-related offenses, including distributing methamphetamine, heroin, and more than 40 grams of fentanyl, and possessing with the intent to distribute more than half a kilo of methamphetamine.
The indictment also alleges that Jones possessed firearms in furtherance of the aforementioned drug trafficking crimes. In addition, Jones is charged with being a felon in possession of the following firearms:
- a Sig Sauer P226 .40 caliber semi-automatic pistol;
- an FN Herstal FS2000 5.56 x 45 semi-automatic Carbine rifle;
- an Action Arms Uzi Model 45 semi-automatic Carbine rifle;
- a Glock 23 Gen 4. 40 caliber semi-automatic pistol;
- an American Tactical M1911 GI semi-automatic pistol;
- a Ruger LCP II 380 semi-automatic pistol;
- a Glock 23 .40 caliber semi-automatic pistol; and
- a Taurus .357 Magnum revolver.
Because of a previous felony conviction punishable by more than one year in prison, Jones is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 592 defendants charged with federal crimes.
Omaha Man Sentenced for New Years’ Robbery SpreeRead the Press Release
United States Attorney Joe Kelly announced that Ervin L. Smith, Jr., 25, of Omaha, Nebraska, was sentenced today to 14 years in prison by United States District Judge Robert F. Rossiter, Jr., following his convictions for robbery and firearms charges. In addition to his prison term, he will serve three years of supervised release following his release from prison. There is no parole in the federal system. Smith was also ordered to pay restitution of $280.00 to Buck’s Inc., $151.55 to Kwik Shop, and $1,000 to Phillip’s 66.
On January 1, 2019, at approximately 5:58 a.m., Christopher Collins, Marcus Evans and Ervin Smith, Jr., while wearing masks and gloves, robbed the Bucky’s at 2901 North 72nd Street, Omaha. Smith brandished a gun but Collins and Evans knew it was there and being used. Collins was shouting orders and ordered the employee to the ground. They left the store with cash, cigarettes and Nebraska lottery tickets.
On January 1, 2019, at approximately 6:16 a.m., Collins, Evans and Smith went into the Kwik Shop at 5929 North 72nd Street. A gun was threatened but never shown. The clerk was ordered to lay on the ground. They left the store with cigarettes, cigars, and Nebraska Lottery tickets.
On January 1, 2019, at approximately 6:31 a.m., Collins, Evans and Smith robbed the Phillip’s 66 at 5920 Sorenson Parkway, Omaha. Smith was carrying a firearm that Collins and Evans knew was there. As they were entering the store, a customer, who saw them enter with faces covered, laying a stick in the doorway, had a hunch the store was going to be robbed. He went to his car and retrieved a firearm, which he was licensed to carry, and re-entered the store. He demanded Collins, Evans and Smith not to move. Smith passed Collins his gun and Collins fired several shots in the direction of the customer, before Collins, Evans and Smith left the store taking store money with them.
They were all caught within 24 hours. Evans was recognized by a former school employee at a location Evans attended. Smith was recognized by an Omaha Police Gang Unit officer. The officer also located a 2013 Facebook picture showing Evans and Smith together. On January 2, 2019, a traffic stop was done of a vehicle Smith was driving. Collins was a passenger. Collins had attempted to cash in one of the stolen lottery tickets and the clerk of that store recognized and was able to identify him.
Evans was sentenced to 16 ½ years’ imprisonment for his involvement and Collins was sentenced to 18 years in prison.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives
Oklahoma City Man Sentenced to Serve Seven Years in Federal Prison After Attempting to Broker Guns to Mexican Transnational Drug-Trafficking GangRead the Press Release
OKLAHOMA CITY – JAHMOND CAVELL HARLEY, 26, of Oklahoma City, has been sentenced to serve 84 months in federal prison for possession of multiple firearms after having been previously convicted of a felony, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
According to an Indictment returned on December 4, 2019, Mr. Harley possessed an AR-15 style assault rifle and three semi-automatic handguns on August 15, 2019, after he had been previously convicted of a felony. Under federal law, convicted felons are prohibited from possessing firearms. On February 11, 2020, Harley pleaded guilty and, pursuant to a plea agreement, agreed to forfeit the seized firearms.
On September 9, 2020, U.S. District Court Judge Scott L. Palk sentenced Harley to serve 84 months in prison and three years on supervised release after he completes his prison term. Judge Palk also ordered Harley to forfeit the firearms. In announcing Harley’s sentence, Judge Palk emphasized Harley’s prior criminal history. Public records reflect Harley has felony convictions for Burglary in the First Degree, Burglary in the Second Degree, Embezzlement, and Robbery with a Dangerous Weapon.
According to evidence presented at sentencing, the Federal Bureau of Investigation (FBI) arrested Harley on August 15, 2019, after learning that Harley was attempting to obtain and coordinate the delivery of the aforementioned firearms for leaders of the Sureño’s, a Mexican street gang engaged in transnational drug-trafficking organization, to ultimately transport to Mexico.
This case is the result of an investigation by the FBI Oklahoma City Field Office, with assistance from the Oklahoma City Police Department. Assistant United States Attorneys Jason Harley and David McCrary prosecuted the case. The case is also part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force ("OCDETF"), which coordinates the investigation and federal prosecution of the highest priority drug trafficking organizations.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
North Liberty Woman Sentenced to Prison for Defrauding the Iowa City Area Development GroupRead the Press Release
DAVENPORT, Iowa – On September 11, 2020, Sheri Lynn Jelinek, age 48, of North Liberty, was sentenced by United States District Court Chief Judge John A. Jarvey to 27 months in prison for wire fraud announced United States Attorney Marc Krickbaum.
Jelinek was an employee at the Iowa City Area Development Group (ICAD) from 2003 until January of 2017. After leaving her employment, ICAD employees discovered Jelinek had made more than $460,000 in improper or personal charges on ICAD credit cards over a period of several years.
Jelinek pleaded guilty to an Information charging her with seven counts of wire fraud. At sentencing, Jelinek was ordered to make full restitution to ICAD and its insurance company. She was also ordered to serve three years of supervised release following her prison term and pay $700 to the Crime Victims’ Fund. After sentencing, Jelinek was released and will be allowed to self- report to a designated facility within the Federal Bureau of Prisons.
This matter was investigated by the Office of Auditor for the State of Iowa and Iowa Division of Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Niagara Falls Man Arrested, Facing Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Andrew Medina, 29, of Niagara Falls, NY, was arrested and charged by complaint with attempting to possess with intent to distribute methamphetamine, and possession of a firearm in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of five years in prison, and a maximum of life.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that according to the complaint, on September 1, 2020, a United States Postal Inspector executed a federal search warrant on a parcel, which contained approximately 1.14 pounds of suspected methamphetamine. On September 4, 2020, a controlled delivery of the parcel was conducted to a residence on South Avenue in Niagara Falls. Shortly after it was dropped off on the porch of the South Avenue address, an individual, later identified as the defendant, retrieved the package, got into a vehicle, and departed the residence with a small child.
After Medina returned to the residence a short time later, a monitoring device, which had been placed in the parcel, sent an alert that the parcel was opened inside of the residence. A member of the investigative team then observed the defendant, on a rear second floor balcony, throw the parcel box. Subsequently, a search warrant was executed at the residence. Investigators recovered a pistol with a loaded magazine and approximately $15,000 of U.S. currency. Medina was arrested at that time.
The criminal complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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New York Man Guilty of Aggravated Identity TheftRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Enrique Reyes, age 20, of Bronx, New York pleaded guilty to aggravated identity theft on September 8, 2020 before United States District Court Judge Sylvia H. Rambo.
According to United States Attorney David J. Freed, on January 4, 2020, in the borough of Steelton, Dauphin County, Pennsylvania, Reyes along with Josue Peguero, age 21, of Bronx, New York and Marlon Valoy De La Rosa, age 21, of Bronx, New York tampered with a U.S. Mail collection box using a rope with an object attached to it to “fish” into the mailbox’s opening. Reyes, De La Rosa, and Peguero also made several fraudulent ATM transactions using stolen checks and debit cards in other persons’ names that were obtained elsewhere. De La Rosa and Peguero were previously charged separately and are awaiting trial.
At the time of their arrest, Reyes, De La Rosa, and Peguero also were allegedly in possession of several debit cards in different names, a stolen license plate that is believed to have been used for mail fishing, and what appeared to be a “washed” check—a check from which the writing had been visibly removed.
The case was investigated by the United States Postal Inspection Service and the Steelton Borough Police Department. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Aggravated identity theft carries a mandatory two-year prison sentence. The charge may also carry a fine of up to $250,000 and a one-year term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs.
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Nearly $2.4 Million Awarded to Address Domestic Violence in ColoradoRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that the Department of Justice’s Office on Violence Against Women (OVW) awarded four separate grants totaling $2,390,925 to address domestic violence issues across Colorado.
“This money will help women who are badly in need of housing and related domestic violence related services at a critical time in their lives,” said U.S. Attorney Jason Dunn. “It will also provide critical resources to law enforcement so that they can continue to focus on domestic violence cases and ensure that abusers are caught and prosecuted fully. I applaud these entities for their commitment to domestic violence issues.”
The following grants were awarded this week:
- The City of Colorado Springs and its non-governmental partner, TESSA (Trust, Education, Safety, Support, Action), will receive $998,760 to support two civilian investigators in the Colorado Springs Police Department, provide overtime funding for law enforcement agencies investigating intimate partner violence cases; support one prosecutor in the Fourth Judicial District Attorney’s Office; and two hospital-based confidential advocates.
- Red Wind Consulting, a Colorado Springs nonprofit, will receive $500,000 as part of the OVW’s Transitional Housing Assistance Program. Red Wind provides consulting services to domestic violence service providers within the Native American community, including housing and supportive services to move survivors of domestic violence to permanent housing. Red Wind will collaborate with its partner, the Denver Indian Center, to provide holistic supportive services, and Red Wind will fund scattered-site residences for 21 survivors and their families through private landlord housing units.
- Advocates of Lake County, in Leadville, Colorado, along with 13 partners, will receive $487,637 to develop a Domestic Violence/Sexual Assault Response Team and implement a prevention campaign in Lake County, Colorado. This includes support for a full time Violence Prevention Coordinator who will provide victim advocacy services and coordinate the activities of the response team.
- Project Hope of Gunnison Valley and the City of Gunnison Police Department will receive $404,528 to increase advocacy services and raise awareness of domestic violence, dating violence, sexual assault and stalking in Gunnison and Hinsdale Counties. Grant funds will be used to support a 24/7 crisis line, among other services.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado.
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.
NDTX Round-Up: September 4-10Read the Press Release
SENTENCING – SAMUEL DE LA CRUZ-MEDINA
On September 4, Samuel De La Cruz-Media was sentenced to 10 years in federal prison for conspiracy to possess with the intent to distribute a controlled substance. Mr. De La Cruz-Media utilized a room at the Han Gil Hotel Town to distribute quantities of heroine, methamphetamine, cocaine, and other drugs to numerous customers on a daily basis. Mr. De La Cruz-Media is the seventeenth defendant convicted in association with the Han Gil Hotel Town. The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Rick Calvert prosecuted this case.
SENTENCING – CESAR ORTIZ
On September 8, Cesar Ortiz was sentenced to 4 years in federal prison for conspiring to possess with intent to distribute cocaine and conspiring to launder money. Mr. Ortiz conspired with codefendants to pick up and distribute 12 kilograms of cocaine. He and a codefendant discuss splitting the profits for the cocaine as well as sending drug proceeds from three kilograms of cocaine to Mexico. Mr. Ortiz was illegally in the United States at the time of the offense. This case was investigated by the Drug Enforcement Administration, Dallas County Sheriff's Office, Dallas Police Department, Irving Police Department, Richardson Police Department and Carrollton Police Department. Assistant U.S. Attorney George Leal prosecuted this case.
GUILTY PLEA – JAWED AHMAD
On September 8, Jawed Ahmad, 29, pleaded guilty to conspiracy to commit mail fraud. Mr. Ahmad and other coconspirators used a scheme to unlawfully enrich themselves by causing victims throughout the United States to send money to him by mail. Mr. Ahmad would call victims posing as a government authority and request money to clear up arrest warrants, settle the victims IRS’s tax bill, and by purchase federal bonds to safeguard the victims’ accounts. During Mr. Ahmad’s arrest, U.S. Secret Service Investigators found in his possession over $105,000 in U.S. currency, more than 75 counterfeit driver’s licenses bearing defendant’s photos, multiple credit cards with names of other individuals, and $4,185 in blank money orders. Mr. Ahmed faces up to 20 years in federal prison for his crimes. This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Damien Diggs is prosecuting this case.
GUILTY PLEA – ANTHONY CARDELL HENDERSON
On September 10, Anthony Cardell Henderson, 31, pleaded guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance and possession of a firearm by a convicted felon. Mr. Henderson, a known convicted felon, conspired with other individuals to distribute and possess methamphetamine. On multiple occasions in August 2019, Mr. Henderson and two co-conspirators obtained methamphetamine and sold it for a profit. When officers took Mr. Henderson into custody they searched the minivan he had been driving and found a firearm. Mr. Henderson faces up to 30 years in federal prison for his crimes. This case was investigated by the ATF. Assistant U.S. Attorney Joseph Magliolo is prosecuting this case.
GUILTY PLEA – EDDIE LEE BUSBY
On September 10, Eddie Lee Busby, 29, pleaded guilty to conspiracy to distribute and possess with intent to distribute a controlled substance. During August 2019, Mr. Busby and two co-conspirators obtained and sold methamphetamine for profit. Mr. Busby faces up to 20 years in federal prison for his crimes. This case was investigated by the ATF. Assistant U.S. Attorney Joseph Magliolo is prosecuting this case.
Monongalia County woman sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sandra Riggleman, of Granville, West Virginia was sentenced today to 33 months of incarceration for her involvement in a drug distribution operation, U.S. Attorney Bill Powell announced.
Riggleman pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base” in April 2019. Riggleman, age 60, admitted to selling cocaine base in Monongalia County in April 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Missouri Man Sentenced to 10 Years for Child EnticementRead the Press Release
United States Attorney Joe Kelly announced that Eric Bland, 37, of Laredo, Missouri was sentenced Friday, September 11, 2020, in federal court in Omaha, Nebraska, for coercion or enticement of a minor to engage in sexual activity. United States District Judge Robert F. Rossiter, Jr. sentenced Bland to 120 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Bland will serve a 5-year term of supervised release and will be required to register as a sex offender.
In early 2019, a woman working as a prostitute in Nebraska provided law enforcement with a screenshot of a conversation with a potential client. The client, later identified as Bland, asked the woman if she knew any “young skinny little black girls” wanting to make money and offered to pay the woman $50 per year under age 18 if the woman would find him an underage girl to have sex with, or $100 per year under age 18 if the underage girl would have unprotected sex. Law enforcement provided the woman with a phone number to give to Bland. In March 2019, Bland contacted the phone number by text message and engaged in a conversation with an FBI Task Force Officer posing as a fifteen-year-old female. Bland made arrangements to travel from St. Joseph, Missouri, to Omaha for the purposes of engaging in oral sex with the fifteen-year-old girl. Bland arrived in Omaha as scheduled and was arrested by officers.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Michigan Bank Robber Involved in Multistate Crime Spree Sentenced to 235 Months in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that U.S. District Judge Paul L. Maloney sentenced Jermaine DeShawn Clark to 235 months in prison following his conviction on two counts of bank robbery.
Clark, age 30, was a resident of Ingham County, Michigan on June 29, 2019, when he robbed a Lansing branch of Chase Bank and fled with $2,900. On July 13, 2019, he struck a Kalamazoo branch of PNC bank, robbing it of $2,040. He used a stolen Dodge Charger as a getaway car in both robberies, and shortly after left the State in that vehicle. Acting on tips and other information from the robberies, Michigan law enforcement officers quickly identified Clark as the robber and obtained a federal arrest warrant for him.
At the time of the two Michigan robberies, Clark was on parole for a 2017 bank robbery conviction in Ohio. On July 24, after fleeing Michigan, Clark stopped in Mason, Ohio to have the tires checked on the getaway car. After learning that he would need $300 to repair the vehicle, he robbed a PNC bank branch in Mason and obtained $2,508. He then continued travelling south.
Later that same day, police located Clark in Florence, Kentucky in the stolen Dodge Charger. A high speed chase on Interstate 75 followed, with Clark driving his vehicle in excess of 140 miles per hour. The chase ended when Clark lost control of his vehicle, crashing it into another vehicle and severely injuring a nurse on her way home from work.
Clark pled guilty to both Michigan robberies on December 20, 2019. He also took responsibility for the Mason, Ohio bank robbery. After considering the facts surrounding the robberies and Clark’s background, Judge Maloney declared him an ongoing threat to the community and chose the prison term of 235 months.
This case was investigated by the Federal Bureau of Investigation, the Kalamazoo Department of Public Safety, the Mason, Ohio Police Department and the Lansing Police Department. Assistant U.S. Attorney Timothy P. VerHey prosecuted the case.
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Medford Felon Sentenced to 49 Months for Illegally Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael Alexander, 54, Medford, Wisconsin, pleaded guilty and was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 49 months in prison for being a felon in possession of a firearm.
Alexander was convicted in 2016 in Taylor County, Wisconsin, of felony possession of methamphetamine with the intent to distribute. He was sentenced to six years confinement in prison to be followed by eight years of extended supervision. Alexander was released from prison in May 2019 – approximately three years early – after completing the earned release program.
On December 29, 2019, Alexander was driving a car in Rib Mountain, Wisconsin, and was stopped by a Marathon County sheriff’s deputy. Alexander was wearing an empty holster. The deputy later found a .45 caliber handgun with a loaded magazine in a tool bag in the back seat. Alexander admitted that the gun was his and said that he used it for shooting feral cats on his property. Alexander also admitted that marijuana and methamphetamine found in the trunk were his, and described himself as a small-time dealer.
In sentencing Alexander, Judge Peterson commented on the violation of trust that was placed in him by the early prison release and noted the danger that came along with guns being involved with drug transactions. Alexander was sentenced to 37 months in state prison after his supervision was revoked; the 49-month federal sentence imposed by Judge Peterson will be served concurrently with the time remaining on the state sentence.
The charge against Alexander was the result of an investigation conducted by the Marathon County Sheriff’s Office, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Man admits guilt after marijuana smuggling attempt leads to high-speed chase at checkpointRead the Press Release
LAREDO, Texas – A 47-year-old Houston man has entered a guilty plea to conspiracy to possess with intent to distribute 132 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.
Christopher Sedrick Brown admitted that on April 20 he arrived at the Border Patrol checkpoint on Interstate Highway 35 north of Laredo. He was driving a tan-colored semi-tractor. Soon after, a K-9 alerted to the presence of narcotics or hidden persons inside the vehicle.
Authorities sent him to secondary inspection, but Brown ignored their instruction. Instead, he accelerated and absconded from the checkpoint at a high rate of speed.
Law enforcement pursued the vehicle as Brown drove erratically at speeds reaching 94 mph. Brown made his way into La Salle County along mile marker 59, but eventually lost control of the vehicle and crashed into thick brush.
He attempted to flee on foot. However, authorities apprehended him on the Interstate Highway 35 frontage road.
Authorities conducted a search of the abandoned trailer and discovered eight bundles of marijuana wrapped in cellophane. The drugs weighed 132 kilograms (291.6 pounds) with an estimated street value of approximately $90,000.
Brown has been and will remain in in custody pending his sentencing, which will be set at a later date before U.S. District Judge Diana Saldana. At that time, Brown faces between a minimum of five and up to 40 years in federal prison.
Customs and Border Protection conducted the investigation with assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Man Who Brandished Assault Rifle at Protest Pleads GuiltyRead the Press Release
A man who brandished an assault rifle at a Black Lives Matter protest in Lubbock has pleaded guilty to making threats, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Emmanuel Quinones, a 25-year-old local, was charged via criminal complaint in early June and indicted a week later. He pleaded guilty to interstate threatening communications via videoteleconference Friday morning.
According to plea papers, Mr. Quinones admitted he brought a loaded Smith & Wesson .223 caliber semi-automatic rifle to a protest decrying the death of George Floyd.
In view of the protesters, Mr. Quinones held the rifle at “low ready,” in firing position with the muzzle pointed toward the ground, as panic rippled through the assembled crowd. He refused a Lubbock Police officer’s verbal commands to drop the rifle, and only did so when the officer drew his gun and a protestor moved to tackle him.
Prior to the protest, Mr. Quinones admitted, he posted threatening messages online:
In a May 28 Facebook post, he wrote, “While a race riot erupted in Minneapolis the President literally retweeted a video of one of his supporters saying the only good Democrat is a dead Democrat. These people are PUSHING for America to rip itself to shreds. Disgusting. I’ll tell you right now if you keep provoking regular people we’ll make sure you never cross that line ever again. I guarantee it. #MountUp.”
In another post later that same day, he intimated that he planned to obtain gun parts “to off racists and MAGA people.”
Mr. Quinonnes now faces up to five years in federal prison. Sentencing will be set before U.S. District Judge James Wesley Hendrix in Lubbock at a later date.
The Federal Bureau of Investigation Dallas Field Office, Lubbock Resident Agency, the United States Secret Service, the United States Bureau of Alcohol, Tobacco, Firearms, & Explosives Dallas Field Division, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeff Haag is prosecuting the case.
Lawrence Man Arrested and Charged with Distributing Fentanyl PillsRead the Press Release
BOSTON – A Lawrence man was arrested today and charged in federal court in Boston in connection with distributing fentanyl pills.
Ruben Mejia, 28, was charged by criminal complaint with possession with intent to distribute and distribution of 40 grams or more of fentanyl. Following an initial appearance, Mejia was detained pending a detention hearing scheduled for Sept. 18, 2020.
According to charging documents, Mejia sold an estimated 500 fentanyl pills disguised as oxycodone pills for $4,000 ($8 per pill) on Aug. 13, 2020. Mejia sold the pills, which he stored in a baby diaper, in five bags containing approximately 100 pills each. On Aug. 26, 2020, Mejia sold another estimated 500 fentanyl pills for another $4,000. Today, Mejia was arrested after he was found in possession of an estimated 5,000 fentanyl pills, which he planned to sell for $40,000.
The charge of possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Lawrence Police Chief Roy Vasque made the announcement today. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Sept. 8 was:
Gregory Briar Schoenwald, 33, of Dillon, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Schoenwald faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Schoenwald was detained pending further proceedings.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Probation and Parole investigated the case. Pacer case reference. 20-20.
Andrew Leroy Moosman, 31, of Stevensville, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Moosman faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Moosman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missoula Police Department and Montana Probation and Parole investigated the case. Pacer case reference. 20-31.
Appearing on Sept. 10 was:
Ricardo Lopez Medina, 47, of Mexico, on charges of illegal reentry of a removed alien. If convicted of the most serious crime, Medina faces a maximum two years in prison, a $250,000 fine and three years of supervised release. Medina was detained pending further proceedings. The Department of Homeland Security's Enforcement and Removal Operations, Belgrade Police Department and Gallatin County Sheriff's Office investigated the case. Pacer case reference. 20-26.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 9 was:
Jason Avery Mattson, 29, of Browning, on charges of second degree murder and kidnapping. If convicted of the most serious crime, Mattson faces life in prison, a $250,000 fine and five years of supervised release. Mattson was detained pending further proceedings. The Bureau of Indian Affairs, FBI and Blackfeet Law Enforcement Services investigated the case. Pacer case reference. 20-55.
Appearing on Sept. 9 was:
Jeffrey Robert Igoe, 60, a transient, on charges of possession of a stolen firearm, receipt of a firearm by a person under indictment and unlawful taking of a firearm from a licensed dealer. If convicted of the most serious crime, Igoe faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Igoe was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Helena Police Department investigated the case. Pacer case reference. 20-8.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 8 was:
Laurie Ann Stookey, 56, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Stookey faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Stookey was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI's Western Transnational Organized Crime Task Force investigated the case. Pacer case reference. 20-100.
Appearing on Sept. 10 was:
Casey Conrad Nixon, 42, of Billings, on charges of false statement during a firearms transaction. If convicted of the most serious crime, Nixon faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Nixon was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-85.
Jamel Akeem Scott, 35, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Scott faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Scott was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-99.
Robert Lowell Takesenemy, Jr., 37, of Lame Deer, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Takesenemy faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Takesenemy was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-41.
Bernadine Joseph Lone Elk, Jr., 25, of Billings, on charges of prohibited person in possession of a firearm and unlawful possession of a stolen firearm. If convicted of the most serious crime, Lone Elk faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Lone Elk was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-95.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictment: Cheney Man Threatened High School Student on Social MediaRead the Press Release
WICHITA, KAN. – Gage H. Clausen, 20, Cheney, Kan., is charged with one count of making a threat via interstate communications. The crime is alleged to have occurred June 27, 2020, in Cheney, Kan.
Clausen is alleged to have used social media to send a threat to a 15-year-old student at Derby High School. The threat was couched in racist language and referred to the victim as a “filthy farm animal.”
If convicted, he could face up to five years in federal prison and a fine up to $250,000.
The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
I.R.S. Enrolled Agent Indicted for Conspiracy to Defraud the I.R.S.Read the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Frank Kelly, age 63, of New Cumberland, Pennsylvania, was indicted on August 26, 2020, for conspiracy to defraud the Internal Revenue Service. Kelly appeared before United State Magistrate Judge Martin C. Carlson on September 4, 2020, and pled not guilty to the charge. Trial is scheduled for November 2, 2020, before United States District Court Judge Jennifer P. Wilson.
According to United States Attorney David J. Freed, Kelly was an enrolled agent with the I.R.S. which permitted him to represent clients who were being audited by the I.R.S. The indictment alleges that in 2014 Kelly conspired with a client to defraud the I.R.S. with respect to the client’s 2010, 2011, and 2012 tax returns which were under civil audit. Specifically, it is alleged that Kelly knowingly made false statements to the Revenue Agent who was conducting the audit that resulted in a lower amount of taxes being assessed against the client.
The case was investigated by the Criminal Investigation Division of the I.R.S. and is assigned to Assistant United States Attorney Kim Douglas Daniel for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grand Jury Indicts Buffalo Man for Brutally Beating, Raping, and Sex Trafficking Four VictimsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr., announced today that a federal grand jury has returned an indictment charging Michael McDonald, a/k/a George Jackson, a/k/a Rabbit, 41, of Buffalo, NY, with four counts of sex trafficking. The charge carries a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Meghan A. Tokash, who is handling that case, stated that according to the indictment and a previously filed complaint, in October 2017, the FBI began investigating the defendant for operating an illegal sex buying scheme by employing fraud, force and/or coercion. According to information in the complaint:
• McDonald recruited Victim 1 to “dance” and “strip” in Florida using Facebook, telling her she would not have to engage in prostitution. However, once Victim 1 traveled from Buffalo to Florida, the defendant raped her and forced her to in prostitution in both Florida and Buffalo. Victim continued to engage in sex acts for McDonald out of fear. The defendant also assaulted Victim 1 on numerous occasions.
• In January 2018, the Plantation, Florida Police Department responded to a residence after receiving a 911 call that an individual was being held against her will. Victim 2 was rescued from the house. Victim 2 told investigators that she met the defendant and flew from New York to Florida. Once in Florida, she said McDonald sexually assaulted her and forced her to perform sexual acts for money against her will. Victim 2 attempted to leave, but the defendant stopped her and threatened to beat her if she attempted to leave again.
• In January 2017, Victim 3 was recruited on Snapchat through an individual she knew in her teenage years. Initially, McDonald lied to Victim 3 stating he could help her fulfill her dreams of becoming a singer and obtain custody of her children. The defendant event stated that he knew Beyonce. Shortly after meeting McDonald, Victim 3 told investigators the defendant allowed another man to rape her and made her feel that all she could do was work as a prostitute for him. McDonald controlled every aspect of her and life and isolated Victim 3 from her friends and family. The defendant also routinely beat, choked, and raped Victim 3.The defendant is accused of trafficking a total of four victims.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Gilmer and Grant County residents indicted on methamphetamine and fentanyl chargesRead the Press Release
ELKINS, WEST VIRGINIA – Five West Virginia residents are facing charges involving methamphetamine and enough fentanyl to kill 20,000 people, U.S. Attorney Bill Powell announced.
The five were indicted by a federal grand jury sitting in Elkins on August 18, 2020 on charges involving a drug distribution operation spanning Maryland and West Virginia. The object of the conspiracy was to distribute at least 5 grams of methamphetamine and at least 40 grams of fentanyl. They are:
• Joshua Lee Rutherford, 32, of Linn, West Virginia
• Kevin Wayne Fultz, 31, of Maysville, West Virginia
• Betty Arlene Chapman, 42, of Cabins, West Virginia
• Joshua Aaron Roy, 35, of Maysville, West Virginia
• Kelsey Morgan Ault, 26, of Maysville, West VirginiaThe crimes are alleged to have occurred in Grant County and elsewhere from the fall of 2019 to January 2020.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Gang Leader Sentenced to More Than 23 Years in Prison for Possessing A Gun and DrugsRead the Press Release
Tampa, Florida – United States District Judge Virginia M. Covington has sentenced Craigory Reeves (29, Tampa) to 23 years and 4 months in federal prison for possessing approximately 13 grams of eutylone with the intent to distribute it and possessing a loaded 9-millimeter handgun. Reeves, a career offender and leader of the Money Power Respect (MPR) gang, had pleaded guilty on June 16, 2020.
According to information presented during Reeves’s sentencing hearing, MPR was formed in approximately 2007 within the Indian River (FL) Correctional Facility. MPR has since become one of the dominant and most violent gangs in the Tampa area. Reeves was one of the gang’s original seven leaders.
According to the plea agreement, on September 5, 2019, Reeves conducted a meeting of MPR members. After he left the meeting, law enforcement officers stopped the car he was riding in for a traffic infraction. Officers then smelled marijuana inside, removed Reeves from the car, and searched his pockets with his consent. Inside Reeves’s pockets, officers found approximately 13 grams of eutylone (a controlled substance that is similar to MDMA or “Ecstasy”) and three 9-millimeter bullets. Inside the car, officers found Reeves’s bag, which contained a loaded 9-millimeter pistol and additional 9-millimeter bullets, most of which matched the caliber and brand of the ammunition that had been found in Reeves’s pocket.
Reeves admitted that he had intended to distribute the eutylone and that he possessed the pistol and ammunition to protect himself, his drugs, and his money while engaging in criminal activity, including narcotics trafficking.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, and the Florida Department of Law Enforcement. It is part of an ongoing effort to dismantle the MPR gang that has so far resulted in charges against four defendants. This case is being prosecuted by Assistant United States Attorney Michael M. Gordon.
This case was 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.
Fraud Alert: Scammers claiming to be with Department of Justice, Targeting ElderlyRead the Press Release
BEAUMONT, Texas – Individuals claiming to represent the Department of Justice are calling members of the public to get their personal information, U.S. Attorney Stephen J. Cox warned today.
According to the Office of Justice Programs’ Office for Victims of Crime, the scammers falsely represent themselves as Department of Justice investigators or employees and attempt to obtain personal information from the call recipient, or they leave a voicemail with a return phone number. The return phone number directs users to a recorded menu that matches the recorded menu for the department’s main phone number. Eventually, the user reaches an “operator” who steers the user to someone claiming to be an investigator. That “investigator” then attempts to gain the user’s personal information. This scam appears to be targeting the elderly.
“The Department of Justice works tirelessly to hold criminals accountable and protect victims. Behavior that exploits the trust the public has in our government, preying on society’s most vulnerable, is simply abhorrent, and our office will investigate and prosecute these scams to the fullest extent of the law,” said U.S. Attorney Stephen J. Cox, adding, “never share personal or financial information in response to unsolicited phone calls.”
Those who receive these calls are encouraged to report these scams to the FTC via their website or by calling 877–FTC–HELP (877-382-4357). Fraud can also be reported to the FBI for law enforcement action at https://www.justice.gov/criminal-fraud/report-fraud.
The Office of Justice Programs’ Office for Victims of Crime created the National Elder Fraud Hotline for people to report fraud against anyone age 60 or older. Reporting certain financial losses due to fraud as soon as possible, and within the first 2–3 days, can increase the likelihood of recovering losses. The hotline is open seven days a week. For more information about the hotline, please visit https://stopelderfraud.ovc.ojp.gov/.
Fraud Alert: Scammers Claiming to be with Department of Justice Preying on ElderlyRead the Press Release
BOSTON – The Department of Justice has received reports that individuals claiming to represent the Department of Justice are calling members of the public as part of an impostor scam. The Department strongly encourages the public to remain vigilant and not to provide personal information during these calls, which appear to target the elderly.
Reports to the National Elder Fraud Hotline indicate these scammers falsely represent themselves as Department of Justice investigators or employees and attempt to obtain personal information from the call recipient, or they leave a voicemail with a return phone number. The return phone number directs users to a recorded menu that matches the recorded menu for the Department’s main phone number. Eventually, the user reaches an “operator” who steers the user to someone claiming to be an investigator. That “investigator” then attempts to gain the user’s personal information.
“Especially with so much of the elderly population isolated at home by COVID, phone scams are an intrusive, calculated effort to target the vulnerable,” said United States Attorney Andrew E. Lelling. “This scam is especially obnoxious because the perpetrators pose as employees of the Justice Department, and so manipulate the public’s trust in the Department. Anyone who receives a potentially fraudulent call as part of this scam should report it immediately. My office would be happy to investigate and prosecute those involved.”
Those who receive these calls are encouraged not to provide personal information and to report these scams to the FTC via their website at https://reportfraud.ftc.gov or by calling 877–FTC–HELP (877-382-4357). Fraud can also be reported to the FBI for law enforcement action at https://www.justice.gov/criminal-fraud/report-fraud.
The National Elder Fraud Hotline is a resource created by OVC for people to report fraud against anyone age 60 or older. Reporting certain financial losses due to fraud as soon as possible, and within the first 2–3 days, can increase the likelihood of recovering losses. The hotline is open seven days a week. For more information about the hotline, please visit https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.
Former Chicago Public Schools Employee Pleads Guilty to Making False Statements to FBI in Criminal ProbeRead the Press Release
CHICAGO — A former Chicago Public Schools employee pleaded guilty in federal court today to making false statements to the FBI during a criminal investigation.
PEDRO SOTO admitted in a plea agreement that he intentionally misled the FBI while the agency was conducting a criminal investigation into Soto’s interactions with a lobbyist and the lobbyist’s colleague regarding the awarding of a custodial services contract valued at approximately $1 billion. Soto was a member of a CPS evaluation committee tasked in 2016 with recommending to the Chicago Board of Education which company or companies CPS should hire to perform the services, and the lobbyist and the lobbyist’s colleague were assisting one of the companies bidding for the contract. Soto admitted in the plea agreement that he repeatedly provided non-public information to the lobbyist’s colleague concerning the award of the contract, and that he had done so, in part, because the lobbyist’s colleague had promised to extend various benefits to Soto. Soto further admitted that in 2019 he intentionally made false statements to the FBI when he denied having provided the lobbyist’s colleague with inside information about the awarding of the contract.
Soto, 45, of Chicago, pleaded guilty to one count of making a false statement to an agency of the United States. The charge is punishable by a maximum sentence of five years in federal prison. U.S. District Judge Sharon Johnson Coleman did not immediately set a sentencing date. A status hearing was scheduled for Dec. 10, 2020, at 9:30 a.m.
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 Chicago Board of Education Inspector General’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorneys Matthew Kutcher and Michelle Kramer.
Former Baltimore City Employee Gary Brown Sentenced to More Than Two Years in Federal Prison for Conspiracies to Commit Wire Fraud and to Defraud the United States Related to Former Mayor Catherine Pugh and for Filing a False Tax ReturnRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced former Baltimore City employee Gary Brown, Jr., age 38, of Baltimore, to 27 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud, two counts of conspiracy to defraud the United States, and for filing a false tax return. Judge Chasanow also ordered Brown to pay restitution of $14,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“As a public servant, Gary Brown should have placed the interests of Baltimore City residents above his own,” said United States Attorney Robert K. Hur. “Instead, Brown conspired with the former Mayor and others to line their own pockets and to avoid paying their taxes. Baltimore City faces many pressing issues, and we need dedication and integrity from our public servants—not corruption—in order to solve them. Law enforcement will continue to be vigilant for evidence of fraud and corruption, to ensure that our citizens receive the honesty and professionalism they deserve from government officials.”
“Gary Brown displayed a flagrant abuse of power by deceiving and defrauding the public and the government for his own personal gain,” said Special Agent in Charge Jennifer Boone, of the FBI's Baltimore division. “We have no tolerance for public corruption and will continue to root out violations of the law. The sentence today is the result of a partnership with the IRS Criminal Investigation, Department of Labor OIG and the Baltimore City Inspector General's Office.”
“Rather than setting an example for the citizens of Baltimore, Brown demonstrated a blatant disregard for the law,” said IRS-CI Special Agent in Charge Kelly R. Jackson. “Brown not only neglected to accurately report his income to the IRS but he also falsified tax documents on behalf of others, actions which erode the confidence in public officials as well as our tax system.”
According to Brown’s plea agreement, from approximately 2011 until December 2016, Gary Brown, Jr. worked as a legislative aide to then-Maryland State Senator Catherine Pugh. Brown actively campaigned for Pugh’s reelection to the State Senate in 2014 and served as her campaign aide during her 2016 mayoral election campaign. Following Pugh’s election and inauguration as mayor of Baltimore City in December 2016, Brown was hired as the Deputy Director of Special Events in the mayor’s office. In December 2016, Brown was nominated by the Maryland Democratic Central Committee to fill the vacancy in the Maryland House of Delegates created by Pugh’s mayoral victory. However, the Governor withdrew Brown’s nomination after he was indicted for election law violations in January 2017.
Brown was the sole owner and operator of Stricker Abstracting, LLC, and GB Abstracting, LLC, both Maryland companies that purported to be title-abstracting businesses, and GBJ Consulting, LLC, a Maryland consulting business. Brown ran all three companies from his residences in Baltimore. Brown also freelanced as a tax return preparer. Between March 2011 until March 2019, Brown helped Pugh promote and sell the Healthy Holly books. Brown oversaw the transportation and storage of the books, drafted invoices, and corresponded with purchasers. Much of Brown’s work on Healthy Holly occurred during work hours while serving as Pugh’s legislative aide and mayoral staff member. Brown was not an employee of Healthy Holly and received no salary or compensation until approximately mid-2016 when he started to get sales commissions. None of his companies received compensation for services purportedly provided to Healthy Holly.
Brown Wire Fraud Conspiracy
According to Gary Brown’s plea agreement, from November 2011 until March 2019, he conspired with Catherine Pugh to fraudulently sell and distribute tens of thousands of Healthy Holly books. Brown admitted that over that period they executed the scheme in three ways: by selling the books, keeping the money and not delivering the books; by providing books to purchasers, but later converting them to their own use at campaign events and government functions; and by reselling books that had previously been purchased and donated to the Baltimore City Public Schools.
Brown Conspiracy with Pugh to Defraud the United States
Further, as detailed in his plea agreement, Brown cashed checks Pugh wrote to him from the Healthy Holly account, then used the cash to fund money orders, debit cards, and personal checks in the names of straw donors, which were then submitted to the Committee to Elect Catherine Pugh. Brown also admitted that he cashed some of the Healthy Holly checks and gave the cash to Pugh. To conceal the straw-donation scheme and avoid paying taxes that might result from the scheme, Pugh and Brown provided false information to the IRS regarding the purpose of the Healthy Holly checks.
Brown and Wedington Conspiracy to Defraud the United States/Filing False Tax Returns
Brown and former Baltimore City employee Rosyln Wedington both admitted that they conspired to avoid tax withholdings from Wedington’s payroll checks while Wedington was the Executive Director of the Maryland Center for Adult Training (MCAT) and Brown was the Chairman of the Board of Directors. Specifically, in 2013, Wedington’s salary was garnished due to outstanding student loan debt and medical bills. In order to avoid further garnishments, Wedington asked Brown to take her “off payroll,” which meant that MCAT would no longer submit her name to the payroll service provider for the purpose of calculating taxes to be withheld from her salary. Brown agreed to the arrangement and had MCAT make electronic deposits into his personal bank account in an amount that exceeded the annual salary owed to Wedington, creating the pretense that he was doing work for MCAT as an independent contractor. Brown then wrote checks to Wedington and/or gave her cash equal to or greater than her salary, which was more than $80,000 per year. No taxes were withheld from the funds Brown paid to Wedington, nor did her salary go through Wedington’s bank account, where it could be garnished. In addition, Brown prepared fraudulent tax returns for Wedington for tax years 2013 through 2017, which did not report Wedington’s MCAT income and made a variety of false entries, resulting in refunds to which Wedington was not entitled and avoiding over $121,000 in total taxes due and owing. Brown also filed a false individual income tax return for tax year 2016 for himself, which falsely listed the $64,325 of Healthy Holly payments as business income. In addition, from 2016 through 2018, Brown worked part-time as a freelance tax preparer and charged a fee to prepare dozens of tax returns that he filed on behalf of his family, friends, and associates. Brown included false information in all of those tax returns in order to obtain larger refunds for his customers. The fraudulently obtained refunds totaled more than $100,000.
Judge Chasanow previously sentenced Catherine Elizabeth Pugh, age 69, of Baltimore, Maryland, to three years in federal prison, followed by three years of supervised release, on charges of conspiracy to commit wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. Judge Chasanow also ordered Pugh to pay $411,948 in restitution and to forfeit $669,688 including property on Ellamont Road in Baltimore and $17,800 from the Committee to Re-elect Catherine Pugh.
Roslyn Wedington, age 50, of Rosedale, Maryland, previously pleaded guilty to conspiracy to defraud the United States and to five counts of filing false tax returns. Wedington faces a maximum sentence of five years in federal prison for conspiracy to defraud the United States, and three years in prison for each count of filing a false tax return. Judge Chasanow has not yet scheduled sentencing for Wedington.
United States Attorney Robert K. Hur commended the FBI and the IRS Criminal Investigation for their work in the investigation and thanked the U.S. Department of Labor - Office of Inspector General, Office of Investigations - Labor Racketeering and Fraud, the Maryland State Prosecutor’s Office, and the Baltimore City Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
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First Assistant United States Attorney Daniel P. Bubar Named Acting United States Attorney for the Western District of VirginiaRead the Press Release
ROANOKE, Va. – First Assistant United States Attorney Daniel P. Bubar will serve as the Acting United States Attorney for the Western District of Virginia, effective September 15, 2020 at 12:00 p.m. He is assuming the office under the Federal Vacancies Reform Act, 5 U.S.C. § 3345.
Mr. Bubar will replace outgoing United States Attorney Thomas T. Cullen, who resigned earlier this week after being confirmed by the United States Senate as a District Court Judge.
“Dan Bubar is a career federal prosecutor and an outstanding choice to serve as the chief federal law enforcement officer in western Virginia,” U.S. Attorney Cullen stated today. “As my first assistant, Dan has effectively managed the day-to-day operations of the office, and he has the full support of the dedicated civil servants who work here.”
“It is an honor to serve as acting U.S. Attorney, and we will continue the good work carried out by the office under the steady leadership of Thomas Cullen these last two and a half years,” Mr. Bubar said today. “While we are sad to see Thomas leave, we wish him the very best in his new role as district judge. Reducing gun violence and fighting the opioid epidemic with our federal, state and local law enforcement partners will remain our top priorities.”
Mr. Bubar has served the Department of Justice since 2010, working in both the Western District of Virginia and Eastern District of North Carolina. During his tenure, Mr. Bubar has served in both the criminal and civil divisions and handled some of the Western District of Virginia’s most complex matters, including health care fraud, narcotics, firearms, and national security prosecutions.
Prior to his federal employment, Mr. Bubar began his career in the Chicago office of McGuireWoods LLP from 2004-2010, representing clients in business and health care litigation across the country.
He earned his J.D. from the Notre Dame Law School and a Bachelor of Arts degree from Taylor University in Upland, Indiana.
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Final Member of Kalamazoo Methamphetamine Conspiracy Sentenced to 15 Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that Vance Lamont Hale (38) of Kalamazoo, Michigan was sentenced by United States District Judge Janet T. Neff to 15 years imprisonment. Hale was the final defendant to be sentenced in a five defendant, Kalamazoo-based methamphetamine trafficking conspiracy. All defendants charged in the superseding indictment were convicted following guilty pleas; their sentences are listed below:
Name Age Sentence Tyshaun Derrell Robinson 26 180 Months Vance Lamont Hale 38 180 Months Damarcus Donta Hunter 41 60 Months Prince Elijah Johnson 28 27 Months Kenneth Shears 26 24 MonthsIn total, law enforcement seized over three pounds of highly pure methamphetamine from various locations in Kalamazoo in the course of investigating the conspiracy. Because of prior drug trafficking convictions, Defendants Robinson and Hale were subject to fifteen-year mandatory minimum sentences. Defendant Robinson was on federal supervised release at the time he was engaged in the conspiracy, having been released from prison on February 7, 2019, less than three months before he began selling drugs again.
In announcing the sentence, U.S. Attorney Birge stated, “West Michigan has recently seen an increase in the distribution of methamphetamine, which is an extremely dangerous drug that destroys lives. Those who choose to sell methamphetamine are on notice that it will result in serious consequences -- including mandatory minimum sentences --, particularly where a person has a prior conviction for dealing drugs.”
The Kalamazoo Valley Enforcement Team (KVET), the Kalamazoo Department of Public Safety (KDPS), the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant United States Attorney Vito S. Solitro prosecuted the case.
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Federal Complaint Filed Against Midland Men in Connection with an Oilfield Theft SchemeRead the Press Release
In Midland this week, federal authorities filed a criminal complaint charging 36-year-old Juan Carlos Rodriguez and 30-year-old Jose Leonardo Rodriguez-Angeles for a scheme to steal oil in the Andrews County area and transport it to various disposal locations, including one in New Mexico, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Luis Quesada, El Paso Field Office.
The complaint charges the defendants with one count of conspiracy; one count of theft of an interstate shipment; and, one count of transportation of stolen property. The complaint alleges that on May 28, 2020, the defendants stole over 500 barrels of oil from at least three production lease locations around Andrews and transported the stolen oil across state lines into New Mexico where it was disposed of at a location near Eunice, New Mexico. The complaint further alleges that on September 3, 2020, the defendants were responsible for stealing in excess of 100 additional barrels of oil from various production lease locations around Andrews and taking it to a disposal location in Odessa, TX. During the early morning hours of September 4, 2020, state authorities stopped the defendants following their return to Andrews County and arrested them while attempting to steal oil again from a previous (May 28th) victim company.
Both defendants remain in custody at this time. Upon conviction, the defendants face up to ten years in federal prison each for theft of an interstate shipment and interstate transportation of stolen property; and, up to five years in federal prison for the conspiracy charge.
The FBI’s Permian Basin Oilfield Theft Task Force is investigating this case. Assistant U.S. Attorney John Fedock is prosecuting this case on behalf of the government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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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.
Farmington Woman Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Sasha Rand, 34, of Farmington, pleaded guilty in federal court to fentanyl trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between late 2017 and December 18, 2018, the Drug Enforcement Administration (DEA) and the New Hampshire State Police conducted an investigation of drug trafficking by Rand, and her husband, Derek Rand, who used New Hampshire-based drug couriers to obtain fentanyl in Massachusetts and bring it to New Hampshire for distribution. During the investigation, law enforcement officers seized over one kilogram of fentanyl from members of this drug trafficking organization. Both Rands were arrested in December of 2018 as part of a DEA-led takedown of fentanyl traffickers in the Rochester, New Hampshire area.
Derek Rand was sentenced in December 2019 to serve 90 months in federal prison.
Sasha Rand is scheduled to be sentenced on December 21st 2020.
“Interstate fentanyl traffickers are causing tremendous damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect public health and safety, we will continue to work closely with all of our law enforcement partners to identify and prosecute the drug traffickers who are responsible for distributing fentanyl and other dangerous substances in the Granite State.”
This matter was investigated by the DEA, New Hampshire State Police, and the Dover, New Hampshire Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer Davis.
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East St. Louis Man Sentenced to 51 Months for Unlawful Possession of A FirearmRead the Press Release
Al Stewart, Jr., 21, from East St. Louis, Illinois, was sentenced today to 51 months in federal prison for unlawful possession of a firearm while being a user of a controlled substance. Stewart pled guilty to the charges in June and has been in federal custody since his arrest last August. He will serve a three-year term of supervised release following his imprisonment.
Documents filed in the case establish that on Aug. 23, 2019, Stewart was living on the left side of a duplex in East St. Louis, next door to Christopher R. Grant, when shots were fired through the door of the right side of duplex, killing Illinois State Police Trooper Nicholas Hopkins. Hopkins was on the front porch preparing to execute a state search warrant for evidence of drug distribution and weapons possession at the house.
During a subsequent search of both sides of the duplex, Illinois State Police crime scene investigators recovered a total of nine firearms and several magazines of ammunition. On the left side of the duplex where Stewart was living, investigators found a Glock .40 caliber handgun in a kitchen cabinet. The gun was fully loaded with an extended magazine. In a post-arrest interview, Stewart said that he had been sleeping in the left-side bedroom when he heard loud noises outside.
He admitted that he grabbed the gun and went to the front window but told investigators that he put the gun back when he heard the officers announce “Illinois State Police.” Stewart also admitted that he was a regular user of cannabis.Christopher R. Grant was indicted by a federal grand jury in March 2020 in which it is alleged, among other offenses, that Grant used a firearm to commit murder in relation to a drug trafficking crime, causing the death of Trooper Nicholas Hopkins. Grant’s case is still pending, and he is presumed innocent of the charges unless and until proven guilty beyond a reasonable doubt.
The investigation was conducted by the Illinois State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Dominican National Sentenced to Nine Years in Prison for Drug and Firearm ChargesRead the Press Release
BOSTON – A Dominican national was sentenced today for possession of approximately one kilogram of fentanyl and illegal possession of a firearm.
Caonabo Cruz, 54, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 108 months in prison and five years of supervised release. On May 10, 2019, Cruz pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl and being a felon in possession of a firearm.
On Aug. 14, 2018, federal agents conducted an investigation that concluded in the search of Cruz’s apartment and his arrest in Lawrence. In his apartment, agents found a drug processing room hidden behind a kitchen cabinet, which was only accessible using a remote control. In the hidden room agents seized approximately one kilogram of fentanyl and heroin, drug processing tools and materials and a .22 caliber rifle.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Detroit Resident Pleads Guilty in COVID-19 Fraud SchemeRead the Press Release
Detroit resident Darrell Baker pleaded guilty today to bank fraud and money laundering arising out of a $590,000 Covid-19 fraud scheme, announced United States Attorney Matthew Schneider.
Joining in the announcement were Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation and Inspector General Hannibal Mike Ware of the Small Business Administration’s Office of Inspector General.
Darrell Baker, 56, pleaded guilty to one count of bank fraud arising from his effort to obtain some $590,000 by defrauding a Pennsylvania financial institution in the issuance of a Payroll Protection Program Loan. Baker also pleaded guilty to one count of money laundering, the result of financial transactions he engaged in with the fraudulently obtained funds.
United States Attorney Schneider stated, “My office and our law enforcement partners have no tolerance for frauds affecting programs designed to help our economy survive the Covid-19 pandemic. We will prosecute such cases aggressively, and today’s guilty plea is an example of our commitment to holding accountable anyone fraudulently obtaining pandemic relief funds to line their own pockets.”
“Mr. Baker's scheme exploited a fund designed specifically to support Americans during this financially challenging time,” said Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan. “Thanks to the hard work of the FBI and all of the agencies involved in this investigation, monies set aside for hard working Americans who are not able to work during this pandemic is secure and available for the people that need it most, not for the fraudsters like Mr. Baker."
According to the plea agreement, Baker applied for and obtained a $590,000 Payroll Protection Program Loan on behalf of a purported business that he owns, called “Motorcity Solar Energy, Inc.” The Payroll Protection Program is a program managed by the Small Business Administration (SBA) that provides loans to help businesses keep their workforces employed during the Covid-19 crisis. The SBA will forgive the loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The Payroll Protection Act loans are funded from participating banks, in this case Customers Bank in Pennsylvania.
According to the plea documents, Baker submitted paperwork with his loan application representing that Motorcity Solar Energy Inc. had 68 employees and, in 2019 paid wages, tips, and other compensation totaling $2.8 million. All of these representations were in fact false. Motor City Solar Energy had no employees, no payroll expenses of any kind, and was not an operational business. Baker submitted these false statements as part of a scheme to intentionally defraud Customers Bank and the Payroll Protection Program.
The plea documents state that Baker managed to withdraw approximately $172,000 of the $590,000 loan he obtained before Baker’s own financial institution froze the remainder, which was ultimately returned to Customer’s Bank. Baker used the funds he did obtain to purchase four cashier’s checks, and used the four checks to purchase two Cadillac Escalades, a Dodge Charger, and a Hummer. The plea agreement requires Baker to forfeit these vehicles. As part of the plea agreement, Baker also agreed to the entry of a money judgment against him in the amount of $172,484.40, which represents the portion of the loan that Baker obtained before his fraud was uncovered and the balance of the loan frozen.
Sentencing is set for January 14, 2021, before United States District Judge Laurie J. Michaelson,
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the FBI and the SBA-OIG. .
Department of Justice Announces Charges of North Korean and Malaysia Nationals for Bank Fraud, Money Laundering and North Korea Sanctions ViolationsRead the Press Release
WASHINGTON – The Department of Justice announced a criminal complaint charging Ri Jong Chol, Ri Yu Gyong, North Korean nationals, and Gan Chee Lim, a Malaysia national. The three were charged with conspiracy to violate North Korean Sanctions Regulations and bank fraud, and conspiracy to launder funds. The defendants allegedly established and utilized front companies that transmitted U.S. dollar wires through the United States to purchase commodities on behalf of North Korean customers.
“Violations of U.S. sanctions on North Korea enrich the regime and allow it to continue to fund the destabilizing activities that the sanctions are meant to prevent,” said John C. Demers, Assistant Attorney General for National Security. “These defendants allegedly violated U.S. sanctions by lying to international financial institutions in order to dupe them into processing transactions in U.S. dollars which they would not otherwise have cleared. The Department of Justice will continue to investigate and prosecute violations of the North Korea sanctions so that one day that country may rejoin the community of nations.”
“The defendants knowingly and willfully circumvented sanctions designed to protect the U.S. financial system from abuse by individuals working on behalf of North Korea,” said Acting U.S. Attorney Sherwin. “We will continue to disrupt their actions and hold them accountable.”
“The FBI will not stand idle while North Koreans attempt to covertly access the U.S. financial system in violation of U.S. sanctions,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “The FBI will continue to protect the sanctity of the U.S. financial system.”
“Protecting our financial institutions from National Security focused money laundering is a top priority of our office,” said Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division. “Our agents, financial analysts and intelligence analysts worked tirelessly on this international investigation, and their hard work paid off.”
U.S. sanctions and banking regulations prevented correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. According to court documents, beginning in at least August 2015 and continuing until at least August 2016, the defendants deceived banks in the U.S. into processing transactions for North Korean customers. The defendants and their co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus.
Court documents note that Ri Jong Chol was the Deputy Director of a company sanctioned by the U.S. Department of Treasury, which referred to the company as a subordinate of North Korea’s Ministry of People’s Armed Forces. The defendants discussed new sanctions on North Korea and referenced several news articles detailing those sanctions published by U.S. and U.K. news organizations. They utilized shipping companies previously linked to the attempted sales of luxury goods to North Korea, and failed to seek the required licenses from the U.S. Government.
FBI’s Minneapolis field office is investigating the case. The case is being handled by the National Security Division and the U.S. Attorney's Office for the District of Columbia. Assistant U.S Attorney Zia M. Faruqui and National Security Division Trial Attorneys David Recker and Alexandra Hughes are litigating the case, with assistance from Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
Department of Justice Announces Charges of North Korean and Malaysia Nationals for Bank Fraud, Money Laundering and North Korea Sanctions ViolationsRead the Press Release
The Department of Justice announced a criminal complaint charging Ri Jong Chol, Ri Yu Gyong, North Korean nationals, and Gan Chee Lim, a Malaysia national. The three were charged with conspiracy to violate North Korean Sanctions Regulations and bank fraud, and conspiracy to launder funds. The defendants allegedly established and utilized front companies that transmitted U.S. dollar wires through the United States to purchase commodities on behalf of North Korean customers.
“Violations of U.S. sanctions on North Korea enrich the regime and allow it to continue to fund the destabilizing activities that the sanctions are meant to prevent,” said John C. Demers, Assistant Attorney General for National Security. “These defendants allegedly violated U.S. sanctions by lying to international financial institutions in order to dupe them into processing transactions in U.S. dollars which they would not otherwise have cleared. The Department of Justice will continue to investigate and prosecute violations of the North Korea sanctions so that one day that country may rejoin the community of nations.”
“The defendants knowingly and willfully circumvented sanctions designed to protect the U.S. financial system from abuse by individuals working on behalf of North Korea,” said Acting U.S. Attorney Sherwin. “We will continue to disrupt their actions and hold them accountable.”
“The FBI will not stand idle while North Koreans attempt to covertly access the U.S. financial system in violation of U.S. sanctions,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “The FBI will continue to protect the sanctity of the U.S. financial system.”
“Protecting our financial institutions from National Security focused money laundering is a top priority of our office,” said Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division. “Our agents, financial analysts and intelligence analysts worked tirelessly on this international investigation, and their hard work paid off.”
U.S. sanctions and banking regulations prevented correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. According to court documents, beginning in at least August 2015 and continuing until at least August 2016, the defendants deceived banks in the U.S. into processing transactions for North Korean customers. The defendants and their co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus.
Court documents note that Ri Jong Chol was the Deputy Director of a company sanctioned by the U.S. Department of Treasury, which referred to the company as a subordinate of North Korea’s Ministry of People’s Armed Forces. The defendants discussed new sanctions on North Korea and referenced several news articles detailing those sanctions published by U.S. and U.K. news organizations. They utilized shipping companies previously linked to the attempted sales of luxury goods to North Korea, and failed to seek the required licenses from the U.S. Government.
FBI’s Minneapolis field office is investigating the case. The case is being handled by the National Security Division and the U.S. Attorney's Office for the District of Columbia Assistant U.S Attorney Zia M. Faruqui and National Security Division Trial Attorneys David Recker and Alexandra Hughes are litigating the case, with assistance from Financial Intelligence Analyst Charlotte Coolidge, Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
Defendant Charged in $25 Million Diamond Ponzi SchemeRead the Press Release
MIAMI -- South Florida federal prosecutors have charged 51-year-old Jose Angel Aman, of Washington D.C., with wire fraud, for allegedly operating a fraudulent diamond investment scheme.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
According to the allegations of a criminal information, from May 2014 through May 2019, Aman and his partners solicited people throughout the United States and Canada to invest in diamond contracts. It is alleged that Aman and his partners promised investors that they would use their money to purchase rough colored diamonds, which Aman would cut, polish and resell at a profit. They reassured investors that their money was safe because it was secured by Aman’s inventory of diamonds (purportedly valued at $25 million). Aman and his partners presented the investment as a high return, no risk deal.
These promises and statements were false. According to the information, Aman rarely used investors’ money to purchase rough diamonds. He never cut, polished and resold rough diamonds. Nor did Aman have a $25 million diamond inventory. To conceal the fraud from investors, Aman allegedly made purported interest payments to investors by using new investors’ money to pay earlier ones. According to the charging document, at the end of the investment period, Aman and the partners would convince the investors to roll over their money by falsely claiming that the investors had the full value of their investments to put into new deals. They allegedly provided sham “Reinvestment Contracts” to the investors, a tactic they used to buy time until Aman could locate new investors and additional money.
It is alleged that when this scheme was about to collapse, Aman set up a new business, Argyle Coin, LLC, which was purportedly in the business of developing a cryptocurrency token backed by diamonds. Aman solicited new investors for Argyle, promising high rates of return with no risk. Aman allegedly used only a fraction of the money received from Argyle investors to develop a cryptocurrency token, instead using most of it to pay purported interest payments to the earlier investors and to benefit himself and his partners, according to the charging document.
During the course of the Ponzi scheme, Aman and his partners collected over $25 million from hundreds of investors. Aman allegedly used the money to make purported interest payments to investors, to pay business expenses, to pay commissions to the partners, and to support his own lavish lifestyle.
Aman made his initial appearance this week before U.S. Magistrate Judge Bruce Reinhart, who sits in West Palm Beach. This matter was investigated by FBI West Palm Beach, with assistance from the Florida Office of Financial Regulation. AUSA Adrienne Rabinowitz is prosecuting this case.
A criminal information is a charging document that makes allegations. A defendant is presumed innocent unless and until found guilty.
Related court documents and information appear 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 no. 20-cr-80062.
DOJ Awards $1 Million in Grants to Improve School Safety in EDVARead the Press Release
ALEXANDRIA, Va. – The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) announced nearly $50 million in school safety funding through its School Violence Prevention Program (SVPP). SVPP provides up to 75 percent funding for school safety measures in and around primary and secondary schools and school grounds. As part of this grant announcement, $500,000 was awarded to the Alexandria City Public Schools and $500,000 was awarded to the Chesterfield County Public Schools.
“These awarded grants will provide a necessary resource to schools during these unprecedented times,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Schools should be a welcoming place where students shouldn’t have to live in fear, and these grants will help to ensure that. I want to thank DOJ for their continued commitment to prioritize the safety of our communities, from our youngest children to our oldest citizens.”
The Students, Teachers, and Officers Preventing School Violence Act of 2018 (STOP School Violence Act of 2018) gave the COPS Office authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs. The 160 awards can be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; metal detectors, locks, lighting, and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security.
“With the new school year underway, the safety of our nation’s students remains paramount,” said Phil Keith, Director of the COPS Office. “Although this school year may look different at the start, now is the ideal time to make preparations to enhance school safety for when all of our children are back in the classroom.”
In addition to the school safety grants, the COPS Office School Safety Working Group, which is composed of representatives from eight national law enforcement organizations, has identified ten essential actions that can be taken by schools, school districts, and law enforcement agencies to help prevent critical incidents involving the loss of life or injuries in our nation’s schools and to respond rapidly and effectively when incidents do occur. The Ten Essential Actions to Improve School Safety are applicable to school shootings as well as to other areas of school safety, including natural disasters and traumatic events such as student suicide. Adopting policies and practices based on the recommendations in this publication can help make school communities safer and save lives.
The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers. In addition to providing financial support for hiring, CHP provides funding to state, local, and tribal law enforcement to enhance local community policing strategies and tactics. In a changing economic climate, CHP funding helps law enforcement agencies maintain sufficient sworn personnel levels to promote safe communities. Funding through this program had been on hold since the spring of 2018 due to a nationwide injunction that was lifted earlier this year.
The full list of SVPP awards can be found here. For additional information about the COPS Office, please visit cops.usdoj.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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Convicted Felon Sentenced to Seven and a Half Years in Federal Prison for Illegally Possessing Loaded Gun on South Side of ChicagoRead the Press Release
CHICAGO — A convicted felon has been sentenced to seven and a half years in federal prison for illegally possessing a loaded semiautomatic handgun in the Auburn Gresham neighborhood of Chicago.
CHAWAN LOWE, 31, of Chicago, illegally possessed the firearm in the 7800 block of South Sangamon Street on the evening of May 22, 2019. Lowe was observed on surveillance video discarding the gun in a dumpster in an alley moments after Chicago Police responded to a call of gunfire in the area. Lowe was not legally allowed to possess a firearm after previously being convicted of multiple narcotics offenses.
A federal jury in March convicted Lowe on one count of illegal possession of a firearm by a felon. U.S. District Judge Elaine E. Bucklo imposed the sentence Sept. 2, 2020, in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance and participated in the prosecution. The case was tried by Assistant U.S. Attorney Jeremy Daniel and Special Assistant U.S. Attorney Erika Gilliam-Booker, who also serves as an Assistant Cook County State’s Attorney.
“The defendant unlawfully possessed a firearm in a city where gun violence has made headlines for years,” Assistant U.S. Attorney Jeremy Daniel and Special Assistant U.S. Attorney Erika Gilliam-Booker argued in the government’s sentencing memorandum. “This offense also conveys the defendant’s disregard for the law.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Clarksville Man Sentenced to More Than 21 Years in Prison for Meth Conspiracy:Read the Press Release
LITTLE ROCK—A Clarksville man was sentenced today for his role in a methamphetamine conspiracy that involved members of a white supremacist gang. Skippy Sanders, 37, was sentenced to 262 months in federal prison by United States District Judge Brian S. Miller. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
Sanders pleaded guilty to conspiring to distribute five kilograms or more, but less than 15 kilograms, of methamphetamine on October 23, 2019. In addition to the term of 262 months’ imprisonment, Judge Miller also sentenced Sanders to five years of supervised release following his term of imprisonment.
In 2016, local and federal agencies initiated a joint investigation to identify, infiltrate, and dismantle drug trafficking organizations in Russellville. Agents identified multiple individuals who were trafficking methamphetamine in the Pope County area. The investigation revealed that Sanders obtained pound quantities of methamphetamine from known members of New Aryan Empire (NAE), a white supremacist organization that began as a prison gang, and later sold the methamphetamine.
“Today’s sentence in Operation ‘To The Dirt’ is an important step in pushing back against the turmoil brought about by gang activity in the River Valley,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “We will continue to investigate and prosecute methamphetamine distribution in this as well as other corrupt organizations.”
Sanders was charged on October 3, 2017, in a federal indictment that charged 44 people from the Pope County area with numerous gun and drug violations. The case is named “To The Dirt,” a reference to the NAE slogan referring to the rule that members must remain in the NAE until they die.
A federal grand jury returned a superseding indictment on February 5, 2019, which named 11 additional defendants and added charges for the defendants’ involvement in acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Of the 55 total defendants charged in “Operation ‘To The Dirt,’” 26 defendants have pleaded guilty, and five of those defendants have already been sentenced to prison terms: Jared Dale, 84 months; Britanny Conner, 120 months; Keith Savage, 120 months; Joseph Pridmore, 150 months; Daniel Adame, 262 months. The remaining defendants are awaiting trial.
The investigation included the Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the Federal Bureau of Investigation, as well as the Pope County Sheriff’s Office and the Russellville Police Department.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
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Twitter:
@EDARNEWS
Burlington Man Sentenced to over 21 Years in Prison for Methamphetamine and Firearm OffensesRead the Press Release
DAVENPORT, Iowa—On September 10, 2020, United States District Court Chief Judge John A. Jarvey sentenced Lloyd Davenport, age 44, of Burlington, to 262 months in prison for trafficking methamphetamine announced United States Attorney Marc Krickbaum. Following his prison term, Davenport will be required to serve a five-year term of supervised release. There is no parole in the federal system.
Davenport was a pound-level dealer of ice methamphetamine in the Burlington area, who admitted that he possessed a firearm in relation to his drug trafficking activities. Davenport’s criminal history includes convictions for armed robbery, a prior drug trafficking offense, and animal cruelty.
This case was investigated by the Drug Enforcement Administration, Southeast Iowa Narcotics Taskforce, Iowa Division of Narcotics Enforcement, Des Moines County Sheriff’s Office, Burlington Police Department, and the Iowa State Patrol. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Brockton Man Sentenced for Fentanyl and Carfentanil ConspiracyRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for conspiracy to distribute fentanyl and carfentanil.
Rickey Depina, 32, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 30 months in prison, three years of supervised release and ordered to pay a fine of $1,000.
From May 2019 through August 2019, Depina and co-defendants David Fernandes, Keanu Fernandes and Viviana Fontes conspired to distribute fentanyl and carfentanil in Brockton, Abington, Boston, Braintree, Easton, Fall River, Holbrook, Norton, Quincy, Raynham, South Easton, West Bridgewater and Whitman. During this time, law enforcement made controlled purchases of fentanyl and carfentanil on multiple occasions. On Oct. 1, 2018, law enforcement stopped a car in which Depina, David Fernandes and Viviana Fontes were traveling and recovered over 17 grams of fentanyl, approximately $1,750 and four cellular phones. They were arrested on state charges. In search warrants executed later that day, law enforcement recovered another $10,000.
Co-defendants Keanu Fernandes, 33, of Brockton, and Fontes, 30, of Brockton, previously pleaded guilty. Co-defendant David Fernandes, 33,of Braintree, is scheduled to plead guilty on Sept. 28, 2020.
Carfentanil is an analog of fentanyl and approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is used commercially in tranquilizer darts for large mammals such as elk or elephants and can be lethal in a dose as small as 2 milligrams.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorneys Timothy Moran and Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
Boston Man Charged with Being a Felon in Possession of a Firearm and Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was arrested today and charged with illegal firearm possession and failing to register as a sex offender.
Shane Brown, 35, was indicted on one count of being a felon in possession of a firearm and ammunition and one count of failing to register as a sex offender. Brown made an initial appearance in federal court in Boston today, and was detained pending a detention hearing scheduled for Sept. 16, 2020.
According to the indictment, on July 2, 2020, Brown possessed an SCCY Industries, model CPX-2, 9mm caliber pistol and seven 9mm Luger cartridges. Due to a previous conviction for a crime punishable by at least one year in prison, Brown is prohibited from possessing firearms and ammunition. Brown was also charged with failing to register as a sex offender between May 7, 2020 and July 2, 2020.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of failing to register as a sex offender carries a sentence of up to 10 years in prison, a minimum of five years and up to lifetime supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; U.S. Marshal John Gibbons for the District of Massachusetts; U.S. Marshal Thomas L. Foster of the Western District of Virginia; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
This case is part of 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.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Atlanta director and producer indicted for operating cryptocurrency-based investment schemes that cost victims over $2 million in lossesRead the Press Release
ATLANTA - Ryan Felton has been indicted by a federal grand jury on charges arising out of two different cryptocurrency-based investment schemes.
“Initial coin offerings can be used to fund innovative and exciting projects that might not otherwise be able to come to life through traditional funding sources,” said U.S. Attorney Byung J. “BJay” Pak. “The defendant promised investors a stake in innovative ventures and allegedly spent investor funds lavishly on personal expenses.”
"This suspect misled investors to believe their money would fund two innovative ventures, but instead, every penny went to support the suspects lavish personal life style,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is a sad reminder to investors to be very careful where they entrust their money, but also a reminder to anyone motivated by greed that the FBI and our federal partners are committed to holding them accountable for their actions.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: In 2017 and 2018, Felton promoted initial coin offerings (ICO) for two new entities—FLiK and CoinSpark. ICOs are fundraising events during which the issuers of a unique “token” or “coin” set an amount they want to raise, offer it to the public in a crowdsale, and receive cryptocurrency from investors in exchange.
Felton marketed FLiK as an entertainment streaming platform, and he founded CoinSpark as a new cryptocurrency trading exchange. In order to increase, or pump, the price of the coins, Felton made numerous false representations and material omissions before, during and after the ICOs. For example, Felton claimed that all investor funds would go towards the development, launch, and support of the platforms and that private investors made significant investments in the entities. Felton also posed as a potential investor, using fake names, on various internet forums and social media sites in order to further promote false information and build up excitement in CoinSpark. After the ICOs ended, Felton secretly sold thousands of coins on secondary cryptocurrency markets to take advantage of the artificially inflated coin prices based on his misrepresentations and eventually transferred the vast majority of investor funds into his personal financial accounts.
Felton used the vast majority of the investor proceeds to fund his extravagant lifestyle, including an all-cash purchase of a $1.5 million residence and an all-cash purchase of a $180,000 red 2007 Ferrari 599 GTB Fioran Coupe. The government is seeking to forfeit the proceeds of his schemes and previously filed a civil forfeiture action, which is stayed pending the resolution of the criminal prosecution.
Ryan Felton, 46, of Atlanta, Georgia, was indicted on September 9, 2020. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
The Securities and Exchange Commission Washington, D.C. Office and the SEC New York Regional Office provided valuable contributions in this case.
Assistant U.S. Attorneys Nathan P. Kitchens, Deputy Chief, Cyber and Intellectual Property Section, and Sekret T. Sneed, Deputy Chief, Asset Forfeiture and Money Laundering Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ashland Woman Pleads Guilty to Mail Fraud and Aggravated Identity TheftRead the Press Release
COVINGTON, Ky. – A former office manager for a state child support agency admitted in federal court on Friday that she defrauded a state agency, embezzling significant funds.
Mary Elizabeth Pickett, 56, pleaded guilty to one count of mail fraud and one count of aggravated identity theft, before U.S. District Judge David L. Bunning.
According to Pickett’s plea agreement, between January 4, 2013, and September 20, 2019, while she was the office manager of the Boyd County Child Support Enforcement Office (“BCCSEO”), Pickett misappropriated BCCSEO funds for her own personal use and benefit. As part of Pickett’s scheme to embezzle BCCSEO funds, she submitted false payroll documents to the Kentucky Cabinet for Health and Family Services, falsely reporting that an employee had worked 40 hours per week, when in fact the employee had only worked 14 hours. Pickett then wrote herself checks for the difference. In total, Pickett embezzled $126,313.90. In connection with the scheme, Pickett also admitted to knowingly forging the signature of her supervisor, the contracting official of the BCCSEO, without his knowledge or permission.
Pickett was charged by way of information, waiving her right to indictment by a federal grand jury.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Commissioner Rodney Brewer, Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by the FBI and KSP. The United States was represented by Assistant U.S. Attorney Kate K. Smith.
Pickett is scheduled to be sentenced on January 11, 2020, in Ashland. She faces up to 20 years in prison for the mail fraud, a minimum of two years for the identity theft, and a maximum fine of $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable federal sentencing statutes.
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Armed Carjacker Sentenced to 104 months in PrisonRead the Press Release
St. Louis, Missouri – Daquan Sanders, 20, of St. Louis, was sentenced to 104 months in prison for his involvement in an armed carjacking committed in April 2019. In June 2020, Sanders pled guilty to one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence. Sanders appeared today before U.S. District Judge Catherine D. Perry.
According to court documents, on April 1, 2019, Sanders and co-defendant Terrance Brew approached two individuals in a park in St. Louis County. The victims were playing basketball within the park. Sanders and Brew, each armed with a firearm, approached the victims and demanded their belongings. One victim gave his cell phone and the other victim stated that he had nothing but his car keys.
While Sanders held the two victims at gunpoint, Brew reached into the victim’s pocket and removed his car keys. Sanders and Brew then fled the scene in the victim’s car.
Later that evening, St. Louis County Police located the carjacked vehicle. Brew was driving the vehicle, and Sanders was in the front passenger seat. Police tried to perform a traffic stop, but Brew failed to pull over which resulted in a fifteen-mile police chase through St. Louis City.
The vehicle chase ended when Brew crashed into concrete barriers that blocked off a residential street to vehicular travel. Brew and Sanders then fled on foot and both were apprehended.
Co-defendant Brew pled guilty on September 10 and will be sentenced in December.
The Federal Bureau of Investigation and the St. Louis County Police Department investigated this case. Assistant United States Attorney Jason Dunkel handled this case for the United States Attorney’s Office.
Alexandria Man Convicted of Possessing Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal district court judge convicted an Alexandria man today on the charge of possession of child pornography.
According to court records and evidence presented at trial, Sean Michael McLaughlin, 32, was found after law enforcement downloaded videos containing child pornography from an internet protocol address assigned to the defendant’s home. These videos included prepubescent children engaging in sexual activity, with some children being sexually assaulted by adults or restrained with bondage. Law enforcement subsequently interviewed the defendant, and during his interview, McLaughlin admitted to repeatedly searching for, downloading, viewing, and possessing child pornography. A forensic examination of McLaughlin’s electronics revealed that he possessed child pornography from 2016 to 2018.
McLaughlin faces a maximum punishment of ten years in prison when sentenced on January 20, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Anthony J. Trenga announced the verdict. Assistant U.S. Attorney Carina A. Cuellar and Special Assistant U.S. Attorney Gwendelynn Bills are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-367.