Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
4 September 2020
Statement from Attorney General William P. Barr on Cleveland Detective and Operation Legend Officer James Skernivitz who was Killed in Line of DutyRead the Press Release
Attorney General William P. Barr has issued the following statement:
“Today is a very sad day for the city of Cleveland and the entire law enforcement community. Overnight, Cleveland Division of Police Detective James Skernivitz was shot and killed in the line of duty. Detective Skernivitz was a 22-year veteran of the Cleveland Division of Police and a sworn Operation Legend task force officer assigned to the Federal Bureau of Investigation’s Violent Crimes Task Force.
Two weeks ago, I had the honor of visiting the unit where Detective Skernivitz was assigned. I was briefed on the critical work that he and his colleagues do to keep our streets safe from violent crime. Detective Skernivitz selflessly gave his life in this cause.
It takes a special kind of courage to be a police officer. Our men and women in blue put their lives on the line day after day in order to keep us safe. We will not forget Detective Skernivitz and his life of service and sacrifice. I send my heartfelt condolences to his wife, children, and family.”
Statement by Attorney General William P. Barr on the Tracking Down of Fugitive Michael Forest ReinoehlRead the Press Release
Attorney General William P. Barr has issued the following statement:
“Last Saturday, Aaron “Jay” Danielson was shot and killed amid the continuing violence in Portland. Local authorities subsequently obtained an arrest warrant for Michael Forest Reinoehl, a self-described Antifa member suspected of the alleged murder. Reinoehl fled to Washington State, where he was located yesterday by members of a fugitive task force led by the U.S. Marshals Service, the FBI, and state and local law enforcement partners. When Reinoehl attempted to escape arrest and produced a firearm, he was shot and killed by law enforcement officers.
The tracking down of Reinoehl — a dangerous fugitive, admitted Antifa member, and suspected murderer — is a significant accomplishment in the ongoing effort to restore law and order to Portland and other cities. I applaud the outstanding cooperation among federal, state, and local law enforcement, particularly the fugitive task force team that located Reinoehl and prevented him from escaping justice. The streets of our cities are safer with this violent agitator removed, and the actions that led to his location are an unmistakable demonstration that the United States will be governed by law, not violent mobs.”
State Prisoner Indicted for Mailing Threatening LettersRead the Press Release
SYRACUSE, NEW YORK --Dennis J. Nelson, age 49, a New York State prisoner incarcerated at the Mohawk Correctional Facility in Oneida County, New York, was indicted on Wednesday for mailing letters from state prison facilities, in which he threatened to bomb and murder Senior United States District Judge Thomas J. McAvoy, United States Representative Anthony Brindisi, and United States Senator Charles Schumer.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The indictment charges that Nelson mailed a threat letter to Judge McAvoy’s chambers in Binghamton, New York, on August 1, 2018, when Nelson was then incarcerated in the Great Meadow Correctional Facility, in Washington County, and that Nelson thereafter, on July 15, 2019, mailed additional threat letters to the Utica office of Representative Brindisi and to the Syracuse office of Senator Schumer while Nelson was incarcerated at the Mohawk Correctional Facility. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Nelson each carry a maximum sentence of 10 years in prison. 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.
The defendant will be arraigned before a United States Magistrate Judge at a date and time to be determined, and will be transferred to federal custody at that time.
This case is being investigated by the FBI’s Joint Terrorism Task Force, and is being prosecuted by Assistant U.S. Attorney Carl G. Eurenius.
Star Man Sentenced to Five Years in Federal Prison for Distributing MethamphetamineRead the Press Release
BOISE – Brooks Case, 33, of Star, Idaho, was sentenced in U.S. District Court to five years in federal prison for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Case serve four years of supervised release following his prison sentence. A federal jury found Case guilty of the charge on June 4, 2020.
According to court records, Case was indicted by a federal grand jury on November 13, 2019. Case’s charge stemmed from an investigation into the West Side Loma gang that spanned from October 2018 to October 2019. While law enforcement conducted a controlled buy of methamphetamine from a member of the gang in April 2019, Case arrived and provided the methamphetamine to the gang member. Case has a lengthy history of criminal convictions and violations of probation.
This case was investigated by Treasure Valley Metro Violent Crime Task Force. The Task Force is comprised of federal, state, and local agencies. These agencies include the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction, Bureau of Probation and Parole.
This indictment was the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
# # #
Springfield Woman Sentenced to Prison for Health Care Fraud and Tax EvasionRead the Press Release
PORTLAND, Ore.—On September 2, 2020, a Springfield woman who owned several durable medical equipment stores in Oregon was sentenced to federal prison for defrauding six health insurance plans of approximately $1.3 million and for evading $99,000 in federal income taxes, announced U.S. Attorney Billy J. Williams.
Saffron Gustafson, 43, was sentenced to 21 months in federal prison and three years’ supervised release. Gustafson was also ordered to pay more than $1.3 million in restitution to the victim insurance plans.
“Health care fraud affects all Americans because it increases the cost of health insurance and reduces the amount of money insurance plans have available to pay legitimate claims,” said U.S. Attorney Williams. “The investigation and prosecution of health care fraud is a priority for the U.S. Attorney’s Office and the Justice Department.”
“Ms. Gustafson exploited the insurance companies of vulnerable patients and then evaded payment of her significant tax liability,” said IRS–Criminal Investigation Special Agent in Charge Justin Campbell. “Tax evasion is a crime that impacts each and every American, which is why it is a top priority for IRS–Criminal Investigation special agents.”
According to court documents, between June 2013 and August 2017, Gustafson owned and operated Saffron’s Specialized Medical, a durable medical equipment company with retail stores in Portland, Springfield, and Salem, Oregon and in Vancouver, Washington. Gustafson’s stores supplied customized compression garments to patients with circulatory medical conditions.
To defraud health insurance plans, Gustafson submitted bills requesting payment amounts inflated by 600% or more. To support these false billings, Gustafson, and employees acting at her direction, fabricated invoices from her wholesaler. Gustafson and her employees destroyed the genuine wholesaler invoices so insurance companies could not review them during audits. The six victim insurance plans are Cambia (Regence), CHAMP VA, Cigna, Kaiser Permanente, TRICARE, and Providence.
Gustafson also evaded $99,606 in income taxes she owed for 2015 by falsifying records and diverting profits from her company to pay various personal expenses, including paying off the mortgage on her parents’ rental property and paying her psychic.
On November 12, 2019, Gustafson pleaded guilty to a criminal information charging her with health care fraud and tax evasion.
This case was investigated by the FBI; IRS-Criminal Investigation; the U.S. Department of Health and Human Services, U.S. Department of Veterans Affairs, and Amtrak Inspectors General; the Defense Criminal Investigative Service, and the Washington State Office of the Insurance Commissioner. It was prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
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.
So-called 'sovereign citizen' sentenced to federal prison for illegal possession of a firearmRead the Press Release
SAVANNAH, GA: A man who claimed his status as a “sovereign citizen” made him exempt from obeying the law will spend the next nine years in federal prison for illegally carrying a gun.
Michael Levant Williams, 36, of Savannah, was sentenced by U.S. District Court Judge Lisa Godbey Wood to 110 months in federal prison for Possession of a Firearm by a Convicted Felon, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Williams was found guilty in March after a two-day trial when the jury took just 15 minutes to reach a verdict. After completion of his prison sentence, Williams also must serve three years on supervised release.
There is no parole in the federal system.
“Michael Williams ludicrously claims that the laws of the United States don’t apply to him,” said U.S. Attorney Christine. “His phony legal status won’t keep him from being held accountable for violating those laws, and his sentence should warn any other play-acting ‘sovereign citizens’ to abandon such legalistic charades.”
Williams, who had a previous federal felony conviction for Possession with Intent to Distribute Controlled Substances, was arrested by Savannah Police officers Nov. 22, 2018, for a traffic violation. Officers recovered a firearm during a subsequent search of his vehicle. As a convicted felon, Williams is prohibited from possessing weapons.
After his arrest, and during subsequent legal proceedings, Williams acted as his own attorney and claimed to be a “sovereign citizen” who was immune from the law. His case represents the second time this year in the Southern District in which a defendant has asserted the claim that “sovereign citizen” status shielded him from prosecution. In that unrelated case, an Augusta man was sentenced in January in U.S. District Court to 25 years in prison for fraudulent legal filings that targeted federal officials.
“This case involves an illegally possessed firearm in the hands of a criminal,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “It demonstrates the cooperation that exists between Savannah Police Department and ATF.”
The case was investigated by the ATF and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Joshua Bearden and Karl Knoche.
Russian National Indicted for Conspiracy to Introduce Malware into a Computer NetworkRead the Press Release
A federal grand jury in the District of Nevada returned an indictment today charging a Russian national for his role in a conspiracy to intentionally cause damage to a protected computer.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
The indictment alleges that Egor Igorevich Kriuchkov, 27, a citizen of Russia, attempted to recruit an employee of a company located in Nevada, with the purpose of introducing malicious software into the company’s computer network, extracting data from the network, and thereafter extorting ransom money from the company under the threat of making the extracted data public.
According to the indictment, from about July 16, 2020, to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee to introduce malware into the computer network of the employee’s company.
The malware would purportedly provide Kriuchkov and his co-conspirators with access to the data within the computer system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.
Kriuchkov was arrested on Aug. 22, 2020, in Los Angeles, California and had his initial appearance before U.S. Magistrate Judge Alexander F. MacKinnon of the U.S. District Court in the Central District of California. Kriuchkov was detained pending trial and has not yet appeared in the District of Nevada.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI’s Los Angeles and Sacramento Field Offices and the Washoe County (Nevada) Sheriff’s Office. The case is being prosecuted by Senior Counsel C.S. Heath and Trial Attorney Thomas Dettore of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Richard Casper of the District of Nevada.
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.
Russian National Indicted for Conspiracy to Introduce Malware into A Computer NetworkRead the Press Release
WASHINGTON – A federal grand jury in the District of Nevada returned an indictment yesterday charging a Russian national for his role in a conspiracy to intentionally cause damage to a protected computer.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office made the announcement.
The indictment alleges that Egor Igorevich Kriuchkov, 27, a citizen of Russia, attempted to recruit an employee of a company located in Nevada, with the purpose of introducing malicious software into the company’s computer network, extracting data from the network, and thereafter extorting ransom money from the company under the threat of making the extracted data public.
According to the indictment, from about July 16, 2020, to about Aug. 22, 2020, Kriuchkov conspired with associates to recruit an employee to introduce malware into the computer network of the employee’s company. The malware would purportedly provide Kriuchkov and his co-conspirators with access to the data within the computer system. After the malware was introduced, Kriuchkov and his co-conspirators would extract data from the network and then threaten to make the information public, unless the company paid their ransom demand.
If convicted, Kriuchkov faces a statutory maximum sentence of five years in prison and a $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. Kriuchkov also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The investigation was led by the FBI’s Las Vegas Field Office with assistance by the FBI’s Los Angeles and Sacramento Field Offices and the Washoe County (Nevada) Sheriff’s Office. The case is being prosecuted by Senior Counsel C.S. Heath and Trial Attorney Thomas Dettore of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Richard Casper of the District of Nevada.
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.
Romeo Walter, Charged with Illegally Possessing Firearms in Hospital Ground Area of St. Thomas, Arrested in Oklahoma Traffic StopRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a complaint has been unsealed which charges Romeo Walter with Felon in Possession of a Firearm; Possession of a Firearm with an Obliterated Serial Number; Possession of a Firearm within a School Zone; Possession of a Firearm with an Obliterated Serial Number within the Territory of the Virgin Islands; and Unauthorized Possession of a Firearm within the Territory of the Virgin Islands. The defendant was apprehended yesterday during a traffic stop, outside of Oklahoma City. He is expected to make his initial appearance on the federal complaint filed in the District of the Virgin Islands today in the Western District of Oklahoma.
According to the affidavit filed in this case, on April 8, 2020, Virgin Islands Police Officers investigating recent shootings in the Hospital Ground neighborhood of St. Thomas pursued a group of men that fled as the officers entered the Jah Yard area. Walter was identified as one of the four men who fled. One of the men, Kenan Thomas, was arrested after allegedly hiding two bags he carried while fleeing to a nearby residence. The bags contained four firearms—an AK-47 pistol, an AR-15 pistol, a .45 caliber handgun, and a 10 mm handgun—and over 200 rounds of ammunition. Walter allegedly had possessed the firearms contained in the two black bags. According to the affidavit, Walter’s DNA was recovered from one of the black bags containing the firearms; from two of the firearms; and from two AK pistol magazines. Walter is prohibited from carrying firearms, as he was previously convicted of multiple felonies in Arizona.
This case is being investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Virgin Islands Police Department.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Prisoner Sentenced for A Conspiracy to Distribute Methamphetamine Inside A PrisonRead the Press Release
KNOXVILLE, Tenn. – On September 3, 2020, William E. Echols, 36, of Rockford, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
After a trial, the defendant was convicted by a jury of both a conspiracy to possess with the intent to distribute methamphetamine, and possession with the intent to distribute methamphetamine. Echols was sentenced to 238 months in prison, followed by five years of supervised release.
On October 29, 2018, Echols was one of five prisoners on a work detail from the Jefferson County, Tennessee, Detention Center, that conspired to smuggle a large amount of methamphetamine back into the prison. While working on a roadside detail outside of the detention center walls, the prisoners found multiple kilograms of methamphetamine in a box on the roadside. The source of that methamphetamine is unknown. Echols and four others tried the methamphetamine, discovered that it was real, and then hatched a plan to bring the methamphetamine back into the prison. The prisoners divided a portion of the methamphetamine among themselves, and several prisoners were able to smuggle the methamphetamine back into the prison, where it was distributed to other prisoners. After an investigation, law enforcement was able to seize approximately two kilograms of pure methamphetamine.
In addition to his convictions for conspiring to possess with the intent to distribute methamphetamine, and possession with the intent to distribute methamphetamine, Echols was classified as a Career Offender under the Federal Sentencing Guidelines due to his extensive criminal history, including two previous robbery convictions, and numerous other criminal offenses.
This prosecution resulted from a joint investigation by the Federal Bureau Investigation (FBI) Johnson City, the 4th Judicial District of Tennessee Drug and Violent Crime Task Force, the Jefferson County Sheriff’s Department, the Tennessee Highway Patrol, and the Drug Enforcement Administration (DEA) Knoxville.
Assistant U.S. Attorneys Kevin Quencer and LaToyia Carpenter represented the United States.
###
Prison for Probationers Caught Breaking into Cars in a Macon NeighborhoodRead the Press Release
MACON, Ga. – Two armed probationers caught breaking into multiple cars in a north Macon neighborhood have both been sentenced to federal prison, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Quenshon Travez Robinson, 23, of Macon, was sentenced by U.S. District Judge Marc Treadwell on Tuesday, September 1 to 34 months in prison and three years of supervised release after pleading guilty to one count conspiracy to receive and possess stolen firearms. Robinson’s federal prison sentence will run consecutively to any term of imprisonment imposed in Houston County Superior Court and in Bibb County Superior Court for violation of probation. Co-defendant Deshae Amondai Floyd, 23, also of Macon, was sentenced by Judge Treadwell on August 6 to 27 months in prison and three years of supervised release after pleading guilty to one count conspiracy to receive and possess stolen firearms. Floyd’s federal prison sentence will run consecutively to any term of imprisonment imposed in Bibb County Superior Court Case for violation of probation.
“Stolen firearms lead to violence in our streets, and our office will aggressively prosecute those who choose to buy, sell or possess stolen guns. These two repeat criminal offenders will now have several years in federal prison to think about the dangers of stealing guns,” said U.S. Attorney Charlie Peeler. “Thanks to the rapid response of the Bibb County Sheriff’s deputies, these offenders were quickly captured, helping restore peace to the community.”
Robinson and Floyd admitted that they broke into multiple cars in residential areas during the morning hours of Saturday, February 16, 2019. Bibb County Sheriff’s deputies responded to a citizen’s call reporting a break-in, and the deputies arrested the defendants as they attempted to flee from the scene. The men were caught with two stolen pistols and ammunition. At the time, Robinson was serving five years’ probation for Criminal Damage to Property in the Second Degree under the First Offender Act and Floyd was serving ten years’ probation for Cruelty to Children in the Second Degree under the First Offender Act. As probationers under First Offender status, it is unlawful for them to possess firearms.
This case was prosecuted as 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Paul McCommon is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Portland Man Charged with Civil Disorder After Assaulting Police Officers with Bear SprayRead the Press Release
PORTLAND, Ore.—Kevin Phomma, 26, of Portland, has been charged by criminal complaint with civil disorder, a felony, after assaulting several police officers with bear spray during an unlawful assembly on August 26, 2020.
According to court documents, on August 26, 2020, protesters gathered near the U.S. Immigration and Customs Enforcement building on South Macadam Avenue in Portland, blocking city streets. The crowd spray-painted the building’s façade and threw projectiles at federal agents. The U.S. Department of Homeland Security declared the event an unlawful assembly at approximately 10:45 p.m. Minutes later, the Portland Police Bureau instructed the crowd to disperse and issued a use-of-force warning for non-compliance.
As Portland officers began dispersing the crowd, Phomma was witnessed pepper spraying officers. Phomma positioned himself with a shield in one hand and a spray can in the other. Phomma doused several officers with pepper spray while they attempted to arrest him. Once in custody, officers discovered the pepper spray was in fact a powerful bear deterrent pepper spray. While searching Phomma, officers also found a sheathed, three-inch dagger attached to his hip. Phomma was later released.
Today, Phomma turned himself in to the U.S. Marshals Service. He made his first appearance in federal court before a U.S. Magistrate Judge and was released pending further proceedings. If convicted, Phomma faces a maximum sentence of five years in federal prison.
This case was investigated by the FBI. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Philadelphia Men Charged with Child Sex TraffickingRead the Press Release
Three Philadelphia men were charged, by a federal grand jury, in an indictment unsealed today in the Eastern District of Pennsylvania for their roles in a sex trafficking operation that exploited numerous minors from 2016 through 2017.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania, and Special Agent in Charge Michel J. Driscoll of the FBI’s Philadelphia Field Division made the announcement.
Andre Michael Felts, aka “Dre” and “Plug,” 32, and Kevin Michael Francis, aka “Kev,” 60, were each charged with one count of conspiracy to sex traffic a minor and four counts of sex trafficking a minor. Ryan Keel, 39, was charged with conspiracy to sex traffic a minor.
The indictment alleges that Felts ran a prostitution ring that recruited and enticed young females, including minors, to engage in commercial sex acts; harbored the victims at various residences for that purpose; transported and provided the victims to males who purchased the commercial sex acts; and collected a portion of the proceeds.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Sara Solow of the Eastern District of Pennsylvania are prosecuting the case. The FBI’s Philadelphia Field Division is investigating the case and received significant assistance from the Philadelphia Police Department.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
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.
Owner of Fraudulent Telemarketing Company Sentenced to Four Years in Federal PrisonRead the Press Release
Tampa, Florida – Chief U.S. District Judge Steven D. Merryday today sentenced Samuel Friedman (45, Land O’ Lakes) to four years in federal prison for health care fraud. The court also ordered Friedman to forfeit his interests in real property as well as a bank account containing nearly $475,000, which were traceable to proceeds of the offense. Restitution was ordered in the amount of $3.42 million.
Friedman had pleaded guilty on June 16, 2020.
According to court documents, Friedman owned and operated a telemarketing operation known as SKF Enterprises, LLC (SKF). SKF targeted the Medicare-aged population to generate orders for durable medical equipment (DME) and cancer genetic (CGx) testing. SKF’s call center employees were trained to follow a script of triage questions designed to upsell DME and CGx testing to Medicare beneficiaries. SKF then packaged this information into the format of a prescription for doctors’ approval under the guise of “telemedicine,” but no proper telemedicine occurred. Rather, doctors’ signatures were secured in exchange for bribes and kickbacks.
During the scheme, Friedman bribed numerous doctors, through fraudulent “telemedicine” companies, to sign and to approve thousands of DME and CGx-testing orders, regardless of medical necessity. Once signed by doctors, Friedman sold the prescriptions to client-conspirators for submission to Medicare and the Civilian Health and Medical Program of the Department of Veterans Affairs. The conspirators attempted to conceal their illegal kickback relationships using sham boilerplate marketing agreements. For these illegal sales, conspirators paid SKF more than $3.4 million.
This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigation, the Department of Veterans Affairs – Office of Inspector General, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
Operation Legend: Update on Federal ChargesRead the Press Release
On July 8, 2020, U.S. Attorney Matthew D. Krueger joined Attorney General William P. Barr in announcing the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, Missouri, on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020.
Since the operation’s launch through Monday, August 31, 2020, more than 2000 arrests – included 147 for homicide – have been made; more than 544 firearms have been seized; and more than seven kilograms of fentanyl, 14 kilograms of heroin, 12 kilograms of cocaine, and 50 kilograms of methamphetamine have been seized.
“Through Operation Legend, federal resources are joined with state and local resources to reduce violent crime in Milwaukee and other cities,” said U.S. Attorney Krueger. “Operation Legend is already making a difference, leading to the apprehension of violent fugitives and the prosecution of crimes involving firearms, drug trafficking, and gangs.”
Of those individuals arrested, 476 have been charged with federal offenses. Two hundred and forty-nine (249) of those defendants have been charged with firearms offenses, while 185 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses. The breakdown of federal charges is below.
Milwaukee, WI
15 defendants have been charged with federal crimes outlined below.
- 2 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 1 defendant has been charged with other violent crimes.
Kansas City, MO
99 defendants have been charged with federal crimes outlined below.
- 28 defendants have been charged with narcotics-related offenses;
- 60 defendants have been charged with firearms-related offenses; and
- 11 defendants have been charged with other violent crimes.
Chicago, IL
103 defendants have been charged with federal crimes outlined below.
- 27 defendants have been charged with narcotics-related offenses;
- 72 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Albuquerque, NM
35 defendants have been charged with federal crimes outlined below.
- 15 defendants have been charged with narcotics-related offenses;
- 14 defendants have been charged with firearms-related offenses; and
- 6 defendants have been charged with other violent crimes.
Cleveland, OH
54 defendants have been charged with federal crimes outlined below.
- 39 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 2 defendants have been charged with other violent crimes.
Detroit, MI
41 defendants have been charged with federal offenses outlined below.
- 17 defendants have been charged with narcotics-related offenses;
- 21 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
St. Louis, MO
89 defendants have been charged with federal crimes.
- 44 defendants have been charged with narcotics-related offenses;
- 37 defendants have been charged with firearms-related offenses; and
- 8 defendants have been charged with other violent crimes.
Memphis, TN
14 defendants have been charged with federal offenses.
- 3 defendants have been charged with narcotics-related offenses;
- 8 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Indianapolis, IN
26 defendants have been charged with federal crimes outlined below.
- 10 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
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.
# # # #
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 Missouri. Operation Legend launched in St. Louis on Aug. 6, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Troy Jackson
“The goal of Operation Legend is to take violent criminals off the streets so long term, community-wide efforts to make St. Louis a safer place can take hold,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri. “Troy Jackson is one of approximately 370 arrested so far. Many more arrests and charges will follow.”
Troy Jackson, 28, was indicted on Aug. 9, 2020, with being a felon in possession of a firearm, possession with intent to distribute the deadly opioid fentanyl, and possessing a firearm in furtherance of a drug trafficking crime.
According to charging documents, Jackson was wanted for first-degree murder and armed criminal action related to a homicide in June 2020; wanted for second and third degree assault arising from a separate incident; and on July 2, 2020, a felony arrest warrant was issued for Jackson for violating his parole stemming from a 2013 conviction for burglary.
It is alleged that an investigation into Jackson led investigators to a hotel in St. Louis on Aug. 9, 2020. Law enforcement officers, working with the U.S. Marshals Service, found Jackson at the hotel in a room holding the magazine of a Mossberg 9mm pistol, which was located nearby in a plain view on a table. While in the hotel room, law enforcement seized approximately five grams of fentanyl and drug paraphernalia, as well as the pistol.
Because of a previous felony conviction punishable by more than one year in prison, Jackson 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. The Department of Homeland Security is also contributing agents to these efforts in St. Louis. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 476 defendants charged with federal crimes.
Onawa Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced September 4, 2020, to 7 years in federal prison.
Nathan Wagner, 34, from Onawa, Iowa, received the prison term after pleading guilty to conspiring to distribute methamphetamine within a protected location.
At the hearing, Wagner admitted that from about June 2017 through December 2018 he along with others distributed more than 10 pounds of methamphetamine in Sioux City. Wagner admitted that he and another individual involved in the conspiracy regularly traveled to Omaha, NE to obtain methamphetamine, which they brought back to a residence in Sioux City to split up and sell to others. This residence was within 1000 feet of Cook Park.
Wagner was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Wagner was sentenced to 88 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system. Wagner is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4062.
Follow us on Twitter @USAO_NDIA.
Oakland City man sentenced in scheme to defraud businessesRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today, Joshua W. Eaden, 38, Oakland City, Ind., was sentenced to 46 months in federal prison for orchestrating a fraud scheme.
“Mr. Eaden was a trusted employee by many in and around the Princeton community,” said Minkler. “His greed got the best of him, and now his career of lies, deceit and fraud are over. This prosecution should remind those out there who defraud local businesses, that they will face real consequences.”
Joshua Eaden was the manager of the Best-One Tire & Service of Princeton, a retail tire and automobile service sales location in Princeton. Best-One Tire & Service provided parts, supplies, and services to Gibson County Coal. Included among the items Gibson County Coal purchased from Best-One Tire & Service, was industrial heavy equipment tires and foam tire fill, a product made for inflating heavy equipment tires used in coal mining operations.
Between November 1, 2013, and March 4, 2016, Eaden devised a scheme to defraud Gibson County Coal by submitting over 300 false foam tire fill invoices using e-mail messages. Gibson County Coal then made payments by mail to Best-One Tire & Service. Those payments, amounting to more than $189,000, caused the net profit percentage of Best-One Tire & Service to appear to go up to levels yielding higher bonus payments to Eaden.
During this same time, Eaden included Bridgestone Firestone tire manufacturer in his scheme. They operated a program to reward persons for selling Bridgestone tires through retail sales outlets like Best-One Tire & Service of Princeton. As a participant gained more points within the program, the participant was eligible to receive bonuses.
Eaden reported tire sales to Bridgestone that never occurred and cited invoices related to the claimed sales that did not involve the actual sale of any eligible Bridgestone tires or substantially overstated the number and type of Bridgestone tires sold. As a result, Eaden received bonuses as incentive rewards from Bridgestone for the fictitious tire sales.
A jury returned its verdict on October 24, 2019 finding the defendant guilty of 17 Counts of wire and mail fraud. The sentencing hearing was delayed multiple times by Eaden based on claims that he suffered a medical problem after the trial that severely damaged his vision and rendered him legally blind.
The sentencing hearing was conducted on September 2, 2020. Eaden appeared for the hearing wearing dark light-blocking glasses and told the judge his vision was substantially impaired. The Court permitted the government to present evidence disputing Eaden’s claimed loss of vision. The government called an FBI agent to testify about surveillance conducted during the times Eaden had requested delays in his sentencing hearing. The surveillance evidence included video recordings and photographs of Eaden playing golf and driving a golf cart. Golf course records reflected that Eaden had played golf constantly in 2020, including on days right after he asked the Court to delay his sentencing because of his loss of vision.
After reviewing the surveillance evidence, the Judge enhanced Eaden’s sentence based on his obstruction of justice for exaggerating and misleading the Court about his alleged blindness.
This case was investigated by the Federal Bureau of Investigation and the Indiana State Police.
“Mr. Eaden abused his position and the trust his company had in him for one simple reason – greed. To top that off, he thought he could play on the sympathy of the court for a lighter sentence by presenting a disability that was proven to be blatantly false through the dedicated work of our agents,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “This sentence should send a clear message to anyone who would engage in such illegal activities that the FBI and our law enforcement partners will ensure you are held accountable.”
According to Assistant United States Attorneys Todd Shellenbarger and Kyle Sawa, who prosecuted this case for the government, Eaden must also serve three years of supervised release following his sentence, and pay $244,683 in restitution.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute complex and large-scale fraud schemes. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1)
NDTX Round-Up: August 28-September 3Read the Press Release
SENTENCING – ANDREW TYLER MOLINA
On August 31, Andrew Tyler Molina, 31, was sentenced to 18 years in prison for transporting and shipping child pornography. Tumblr, a social media app popular amoung teenagers, reported to the National Center for Missing and Exploited Children, that a user, Mr. Molina, was involved in communications about the sexual molestation of children. Law enforcement executed a search warrant on Mr. Molina’s residence and conducted a forensic review of his cell phones. Mr. Molina admitted to transporting videos and images depicting sadistic child pornography with infants and toddlers. Law enforcement recovered 88 images and 16 vides of child pornography on Mr. Molina’s two cell phones. This case was investigated by the FBI and Grand Prairie PD. Assistant United States Attorney Camille Sparks is prosecuting this case.
GUILTY PLEA – ILDERALDO DEANDRE LIMA-MOSLEY
On September 1, Ilderaldo Deandre Lima-Mosley, 31, pled guilty to felon in possession of a firearm. In May 2020, Mr. Lima-Mosley, a previously convicted felon, met an individual at a Dallas area tobacco shop to sell a .380 pistol and several magazines containing ammunition for $740. Mr. Lima-Mosley faces up to 10 years in prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Phelesa Guy is prosecuting this case.
GUILTY PLEA – PETE TORRES
On September 1, Pete Torres, 30, plead guilty to conspiracy to launder money. Two individuals supplied Mr. Torres with cocaine. He sold the cocaine to others and earned a profit from his drug transactions. Mr. Torres used then profits to purchase more controlled substances from his suppliers to sell. Mr. Torres faces up to 20 years in prison for his crimes. This case was investigated by the Drug Enforcement Administration, Dallas PD, Irving PD, Dallas County SO, Richardson PD, and Carrolton PD. Assistant United States Attorney George Leal is prosecuting this case.
SENTENCING – JASON CRAIG WILLIAMS
On September 1, Jason Craig Williams, 33, was sentenced to 150 months for conspiracy to possess with intent to distribute methamphetamine. Mr. Williams engaged in this conspiracy form June 2017 through on or about June 28, 2017 in the Dallas Division of the Northern District of Texas. The case was investigated by the Department of Homeland Security Investigations, Texas Department of Public Safety, and Carrollton PD. Assistant United States Attorney George Leal is prosecuting this case.
SENTENCING – JEFFREY BRYAN DOUGHERTY
On September 2, Jeffrey Bryan Dougherty, 28, was sentenced to 9 years in prison for possession of a firearm by a convicted felon, possession of a controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Law enforcement located Mr. Dougherty in a motel in Hutchins, Texas. In plain view, officers observed drug paraphernalia and a black backpack containing a 9 mm firearm, methamphetamine, heroin, and Mr. Dougherty’s wallet. Mr. Dougherty admitted that his was in possession of a 9 mm firearm and that he was at the motel selling the methamphetamine and heroin. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas Department of Public Safety. Assistant United States Attorney Gary Tromblay is prosecuting this case.
Mountain View Man Sentenced to 15 Years for Attempted Enticement of a Minor for SexRead the Press Release
SPRINGFIELD, Mo. – A Mountain View, Missouri, man has been sentenced in federal court for attempting to entice a minor for illicit sex.
Jason Matthew Perdue, 47, was sentenced by U.S. District Judge M. Douglas Harpool on Thursday, Sept. 3, to 15 years in federal prison without parole. Perdue will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On March 2, 2020, Perdue pleaded guilty to attempting to entice a minor for illicit sexual activity.
Law enforcement received CyberTips on July 13, 2018, when Perdue uploaded images of child pornography to his Google account. Officers executed a search warrant at Perdue’s residence on Sept. 6, 2018. Officers found a safe that contained a SanDisk flash drive with a large volume of videos and images of child pornography. Officers also seized multiple devices from Perdue’s residence, including a laptop, hard drives, a camera, a cell phone, and flash drives. Investigators conducted a forensic examination of Perdue’s devices and found numerous Skype chat messages in which Perdue engaged in sexually explicit communications with purported minors.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Milwaukee Man Sentenced to Ten Years’ Imprisonment for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on September 4, 2020, Khamphanh Phakousonh (age: 46) of Milwaukee, Wisconsin, was sentenced to a term of ten years in federal prison, followed by four years of supervised release, for possession with intent to distribute 50 grams or more of methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c).
According to court documents, on February 22, 2019, Phakousonh sold a DEA confidential source approximately 2 ounces (59.75 grams) of methamphetamine. Laboratory testing later confirmed the methamphetamine was 100% pure. On February 25, 2019, law-enforcement authorities executed a search warrant at Phakousonh’s Milwaukee residence. The officers found several items consistent with drug-trafficking activity, including over 6 kilograms (over 13 pounds) of marijuana, $25,700 in U.S. currency, and a loaded Ruger LCP, .380 caliber, semi-automatic pistol. Law-enforcement authorities subsequently determined that Phakousonh had obtained the firearm from an individual in satisfaction of a drug debt.
In pronouncing sentence, U.S. District Judge Lynn Adelman noted the serious nature of the offense and the history and characteristics of the defendant.
The case was investigated by the North Central HIDTA Office and was prosecuted by Assistant United States Attorney Robert J. Brady, Jr.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
# # #
For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
Follow us on Twitter
Mexican National Sentenced to 16 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Mexican national who resided in Springfield, Missouri, was sentenced in federal court today for his role in a conspiracy to distribute large amounts of methamphetamine in the Kansas City, Missouri, area and in the Springfield area.
Luis Manuel Gonzalez-Rodriguez, 44, was sentenced by U.S. District Judge Greg Kays to 16 years and eight months in federal prison without parole.
On Jan. 6, 2020, Gonzalez-Rodriguez pleaded guilty to participating in a conspiracy to distribute methamphetamine, possessing a firearm in furtherance of a drug-trafficking crime, and illegally reentering the United States after having been deported.
Gonzalez-Rodriguez was arrested on Nov. 2, 2017, when law enforcement officers executed a search warrant at his residence. Gonzalez-Rodriguez attempted to flush approximately 157.1 grams of methamphetamine down the toilet as officers entered the residence. Officers searched the residence and found an additional 3.7 grams of pure methamphetamine, cocaine, a Walther .380-caliber semi-automatic pistol that had been reported stolen in Arkansas, ammunition, 14 cell phones, ledgers and drug notes, and $21,558. Gonzalez-Rodriguez admitted that he was illegally present in the United States. He was deported in October 2011 after previously having been convicted of illegally reentering the United States.
Gonzalez-Rodriguez’s plea agreement cites several controlled purchases of methamphetamine by cooperating law enforcement sources, as well as his involvement in several controlled purchases by a cooperating source from co-defendant Jason Edward Hochard, 41, of Kansas City, Kansas, during the investigation of the drug-trafficking organization.
Hochard was sentenced on July 30, 2020, to 14 years and eight months in federal prison without parole.
On Nov. 1, 2017, co-defendant Darely Dominguez-Bustillos, 26, of Kansas City, Kansas, delivered one pound of methamphetamine to Gonzalez-Rodriguez. Dominguez-Bustillos then transported $8,000 in illicit drug proceeds from Gonzalez-Rodriguez back to her residence. Law enforcement discovered this money when they later executed a search warrant at her residence and in the vehicles located at that residence.
Dominguez-Bustillos was sentenced on May 20, 2020, to four years in federal prison without parole.
Gonzalez-Rodriguez’s plea agreement also cites multiple deliveries of methamphetamine to co-defendant Tara Hageman, 45, of Springfield. When law enforcement officers executed a search warrant at Hageman’s residence, they seized 103 grams of pure methamphetamine and two handguns.
Hageman, who admitted she distributed the methamphetamine to others, was sentenced on March 11, 2020, to seven years in federal prison without parole.
Co-defendant Armando Quintana-Galaz, 38, a citizen of Mexico residing in Springfield, was sentenced on May 26, 2020, to 16 years and eight months in federal prison without parole. Quintana-Galaz had been deported from the United States six times before being arrested on Nov. 2, 2017, in Springfield. At that time, he was again illegally present in the United States. When law enforcement officers executed a search warrant at Quintana-Galaz’s residence on that day, they found approximately 3.159 kilograms of pure methamphetamine in a hamper in the master bathroom and approximately 189 grams of pure methamphetamine in a dresser in the master bedroom. They found a Ruger 9mm semi-automatic handgun, a Norinco SKS 762-caliber rifle, various ammunition, a bag that contained approximately four grams of cocaine, and six cell phones. They also found a Taurus 9mm semi-automatic handgun in his Jeep Grand Cherokee. Officers also found $40,020 in a dresser in the master bedroom, $6,295 in the pocket of his pants that were on a TV stand, and $293 in a suitcase in the master bathroom closet. According to his plea agreement, the $46,608 seized from Quintana-Galaz’s residence would convert to more than 2.6 kilograms (2,642.6 grams) of methamphetamine.
Co-defendant Miguel Angel Ramirez-Romero, 27, a citizen of Mexico residing in Kansas City, Kan., was sentenced on Nov. 13, 2019, to 14 years in federal prison without parole.
Gonzalez-Rodriguez is the final defendant in this case to be sentenced, among six defendants who have been convicted.
This case was prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Member of Paterson Drug Ring Charged with Conspiracy to Distribute Heroin and FentanylRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, woman was arrested today in connection with her alleged role in a conspiracy to distribute heroin and fentanyl in New Jersey and Vermont, U.S. Attorney Craig Carpenito announced.
Nysifah Deaveareaux, 27, is charged by criminal complaint with conspiracy to distribute 40 grams or more of fentanyl and 100 grams or more of heroin. She is scheduled to make her initial court appearance today by videoconference before U.S. Magistrate Judge James B. Clark III.
Caron J. Abrams, 26, of Paterson, was charged by criminal complaint on Aug.14, 2020, with possession with intent to distribute 40 grams or more of fentanyl. He appeared by videoconference before the U.S. Magistrate Judge Joseph A. Dickson and was detained without bail.
Shamir Williams, 25, of Paterson, was charged by complaint on Aug. 14, 2020, along with Deaveareaux, with conspiracy to distribute 40 grams or more of fentanyl and 100 grams or more of heroin. On Aug. 20, 2020, Williams appeared by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was detained without bail.
According to documents filed in this case and statements made in court:
From May 2020 through Aug. 13, 2020, Williams negotiated sales of heroin to another individual. On June 11, 2020, pursuant to these negotiations, Deaveareaux transported approximately 250 “bricks,” or over 12,000 individual doses of heroin, from Paterson and distributed the heroin in Vermont. On Aug. 13, 2020, Abrams attempted to deliver 200 “bricks,” or over 9,000 individual doses of heroin and fentanyl, to an individual at a Passaic County Home Depot parking lot, where he was taken into custody.
Each of the crimes charged carries a minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a fine of at least $5 million.
U.S. Attorney Carpenito credited special agents and task force officers with the DEA in New Jersey and New England, under the direction of Special Agents in Charge Susan Gibson and Brian D. Boyle, respectively, with the investigation leading to the charges.
This investigation was conducted as part of the Paterson Violent Crime Initiative (VCI). The VCI was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey and the Passaic County Prosecutor’s Office, for the sole purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration’s (DEA) New Jersey Division, the Department of Homeland Security – Homeland Security Investigations, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, New Jersey State Parole, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Manchester Man Arrested for Bank RobberyRead the Press Release
CONCORD – Alex Stoltman, 23, of Manchester, was arrested today and charged with bank robbery, United States Attorney Scott W. Murray announced today.
According to court documents, Stoltman is charged with robbing a Citizens Bank branch on Elm Street in Manchester on September 2, 2020. Court documents show that the robber wore a hat and mask and handed a note to the teller threatening to use a gun if the teller did not comply with his demands.
Stoltman was taken into custody on September 4, 2020. A court appearance is scheduled for 11 a.m. on Tuesday, September 8, 2020.
This matter was investigated by the FBI and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Krasinski and Charles Rombeau.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###
Ludington Man Sentenced to 63 Months' Imprisonment for Embezzling from the Lake Michigan Carferry and Filing False Tax ReturnRead the Press Release
Paul Patrick Piper, the Carferry’s former Financial Controller, stole in excess of $1.7 million over 11 years and failed to pay federal income taxes of $363,000
GRAND RAPIDS, MICHIGAN — Paul Patrick Piper, 58, of Ludington, Michigan, was sentenced to 63 months’ imprisonment today on charges of bank fraud and filing a false federal income tax return. The sentencing hearing took place in the United States District Court in Grand Rapids, Michigan, before Chief U.S. District Judge Robert J. Jonker. In imposing sentence, Judge Jonker commented that the amount Piper embezzled over many years was "a frightening number that caused substantial financial hardship" to the Lake Michigan Carferry and resulted from a "pattern of conduct that needs deterrence."
"Mr. Piper earned his sentence," said U.S. Attorney Andrew Birge. "His greed caused significant financial damage to one of the largest employers in the Ludington, Michigan area. Vigorous prosecution of white collar crime and enforcement of our country’s tax laws remains an important priority in my office."
Piper served for many years as the financial controller for Lake Michigan Carferry, the company operating the SS Badger ferry between Ludington, Michigan, and Manitowoc, Wisconsin. Piper embezzled in excess of $1,700,000.00, between 2007 and May 2018, by overriding normal company accounting systems and writing checks directly to himself and to two of his affiliated businesses, Piper Tax & Accounting and Piper Group. Piper either forged the signatures of company owners on these checks or used a signature stamp without the authorization of the owners. Piper hid these transactions in the accounting system by booking these checks to an insurance expense code and by otherwise making false entries to balance company accounts. Additionally, Piper filed false personal income tax returns with the Internal Revenue Service because he knowingly failed to include the income he stole from the Carferry, and other income earned from his tax business, on his federal income tax returns.
"Piper violated the trust of the company that hired him and endangered the financial well-being of one of Ludington’s largest employers," said Special Agent in Charge of the FBI in Michigan, Steven M. D’Antuono. "Financial crime is not a victimless crime. The FBI and our law enforcement partners will continue to pursue anyone who uses their position of trust for personal gain."
"For over a decade Mr. Piper repeatedly took advantage of his position as controller and committed criminal financial crimes that resulted in a large tax due and owing," said IRS-CI Special Agent in Charge Sarah Kull. "Of course activity like this hurts the ‘Carferry,’ but it also hurts every U.S. taxpayer. IRS-CI will continue to work with our law enforcement partners to investigate tax fraud committed by trusted professionals."
As part of his sentence, the court imposed a forfeiture money judgment in the amount of $1,740,037.91. Pursuant to prior forfeiture efforts, Piper forfeited a 2018 Ram Truck, a 2008 Glacier Bay 5th Wheel Recreational Vehicle, and cash in lieu of forfeiture of other assets. The court will impose mandatory restitution for the victim in an amount of at least $1,740,037.91 after receiving information and arguments from the parties about possible additional losses within the next 30 days.
Assistant United States Attorney, Ronald M. Stella, conducted the prosecution of the case. The Internal Revenue Service’s Criminal Investigation Division and the Federal Bureau of Investigation, with significant assistance from the Mason County Sheriff’s Office, handled the investigation of the case.
###
Local “Cell Head” and Two Others Plead Guilty to Drug Conspiracy in Transnational Heroin Trafficking OperationRead the Press Release
Three additional men pleaded guilty this week for their roles in a heroin trafficking operation with ties to Mexico’s New Generation Cartel, announced U.S. Attorney Trent Shores.
Jose Garcia Solis, 38; Oseil Serafin Calderon, 24; and Rudolph Gorniak, 29, pleaded guilty to drug conspiracy. Garcia, a “cell head” for the trafficking organization, was sent from Mexico to northeastern Oklahoma specifically to run the operation. He was responsible for overseeing the distribution of heroin to local dealers and for the collection of drug proceeds.
The three were among more than 30 individuals indicted in 2019 for drug conspiracy and other crimes related to the cartel’s heroin operations. The prosecution resulted from Operation Smack Dragon, an Organized Crime Drug Enforcement Task Force investigation.
“Cartels and their conspirators are responsible for flooding our communities with deadly drugs. They profit hand over fist while families are torn apart by addiction and loss,” said U.S. Attorney Trent Shores. “This prosecution highlights the diligent investigative work and cooperation between federal, state, and local partners in identifying, tracking, and dismantling this drug trafficking organization. We remain committed to protecting Oklahoma’s neighborhoods and communities.”
According to court documents, the transnational criminal organization’s hierarchy had clearly defined roles, as leaders from Mexico supplied heroin to the Tulsa “cell heads.” These “cell heads” were originally from Mexico but lived in Tulsa. Stille Giovanni Gutierrez Vivanco, allegedly directed, from Mexico, the overall drug trafficking operations in Tulsa by delegating responsibilities for the import and distribution of the heroin and for the movement of the proceeds from heroin sales. The criminal organization smuggled heroin into the United States and transported the drug to storage locations in Tulsa where they prepared it for distribution throughout the United States. After preparing the heroin, the coconspirators would repackage it for distribution to mid-level distributers, who would then redistribute it to street-level dealers until it eventually found its way into the hands of customers.
“This investigation demonstrates Homeland Security Investigation’s (HSI) unique authorities and steadfast commitment to vigorously pursue members of transnational criminal organizations that exploit and endanger the American people,” said Ryan L. Spradlin, special agent in charge, HSI Dallas. “HSI will continue to use every available resource to protect communities and secure the homeland from dangerous contraband and the criminals who bring them into our country.”
“Investigations such as these cannot be successful without DEA Tulsa’s relationship with numerous law enforcement partners in Eastern Oklahoma and the Texoma High Intensity Drug Trafficking Area (HIDTA) Initiative,” said Eduardo A. Chávez, special agent in charge, DEA Dallas Field Division. “These individuals are being held responsible for their actions. Whether it is a gram or a kilogram, heroin is poisoning our streets, and the DEA will never cease its efforts to rid these drugs from the streets of Oklahoma.”
In his Sept. 4 plea agreement, Jose Garcia Solis admitted that from November 2018 through June 2019, he knowingly conspired with others to distribute heroin. Garcia stated that he supplied heroin to numerous individuals for re-distribution, collected payment from dealers and returned the funds to the Mexican source of supply. U.S. District Judge Claire V. Eagan set sentencing for Dec. 8, 2020.
On Sept. 3, 2020, Oseil Serafin Calderon pleaded guilty to conspiring with others to distribute heroin from January 2019 through June 2019. Specifically, the defendant assisted in delivering heroin to Jose Garcia by transporting the heroin from Southern California to the northeastern Oklahoma. He also assisted in collecting drug proceeds from Garcia. U.S. District Judge Claire V. Eagan set sentencing for Dec. 7, 2020.
On Sept. 2, 2020, Rudolph Gorniak pleaded guilty to conspiring with others to distribute heroin from January 2019 through June 2019. Over the course of several weeks, Gorniak purchased quantities of heroin from defendants Alphonso Caldwell and Devin Hartzell. He purchased heroin, redistributed it to third parties, and relied on the payment from customers to purchase additional heroin. U.S. District Judge Claire V. Eagan set sentencing for Dec. 4, 2020.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
You can find the May 2019 Indictment announcement here.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Nathan Steven Larsen, 30, of Lincoln, was sentenced on September 4, 2020 by Chief United States District Judge John M. Gerrard to 14 years in federal prison for conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Following the prison term, Larsen will serve five years on supervised release. There is no parole in the federal system.
Information provided to law enforcement indicated that Larsen was responsible for the distribution of at least 5 kilograms (approximately 11 pounds) of methamphetamine in the Lincoln area between November of 2018 and November of 2019.
On September 24, 2019, officers arrested Larsen on an outstanding warrant at his Lincoln apartment. Officers saw methamphetamine in the apartment, and Larsen later admitted he had attempted to flush about five grams of methamphetamine down the toilet when he heard officers at the door. He said any drugs found in the apartment belonged to him. Officers found small amounts of methamphetamine and marijuana in the apartment along with pipes, scales, and packaging materials during the execution of a search warrant at the apartment.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lincoln Man Sentenced for Conspiracy to Distribute Drugs and Felon in Possession of FirearmRead the Press Release
United States Attorney Joe Kelly announced that Tracy James Abrams, 48, of Lincoln, was sentenced today by Chief United States District Judge John M. Gerrard to 12 years and seven months in federal prison for conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and a mixture or substance containing cocaine base (crack cocaine). Abrams was also sentenced to seven years for being a felon in possession of a firearm. Those sentences were ordered to run concurrent to each other (at the same time). Following the prison terms, Abrams will serve five years on supervised release on the drug charge and three years on the gun charge. Those terms will also run concurrent with each other. There is no parole in the federal system.
Information provided to law enforcement indicated between January of 2015 and August of 2019, Abrams was responsible for the distribution of more than 500 grams (approximately 18 ounces) of methamphetamine mixture. In July and August of 2019, an undercover officer made three purchases of methamphetamine from Abrams totaling approximately 1 ½ ounces. On one of those occasions, Abrams also sold approximately ½ gram of cocaine base, also known as crack cocaine, to the undercover officer. On August 23, 2019, a search warrant was executed at Abrams’s Lincoln residence. A handgun with ammunition was found in a kitchen cabinet. Abrams’s criminal record showed he had two prior state felony convictions for attempted robbery and theft by receiving stolen property.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of 33 Oak Street Drug Trafficking Ring Sentenced to Nine Years of ImprisonmentRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Chyquan Cupe, aka “Cash,” was sentenced yesterday to 9 years of imprisonment for possessing firearms in furtherance of his drug trafficking activities and being the leader of a drug trafficking conspiracy which distributed cocaine base, heroin, and fentanyl in the area of Brattleboro, Vermont. Chief U.S. District Judge Geoffrey W. Crawford also sentenced Cupe to a 4-year term of supervised release to follow his imprisonment.
According to Court documents, Cupe was the leader and organizer of a drug trafficking organization which distributed narcotics from an apartment located at 33 Oak Street in Brattleboro over a five-month period. On December 28, 2018, Brattleboro Police Officers executed a state search warrant at the apartment, resulting in the seizure of a sawed-off shotgun, a .38 caliber handgun with an obliterated serial number, a nautical flare gun, and a safe. Inside the safe, officers located approximately 200 grams of cocaine base, 68 oxycodone/morphine pills of various dosages, numerous rounds of ammunition, and a bill of sale for a vehicle purchased by Cupe. After this search, Cupe was a fugitive, but the drug trafficking activities continued at the 33 Oak Street apartment unabated.
A Southern Vermont Drug Task Force investigation in January and February 2019 resulted in multiple controlled purchases of heroin and fentanyl from Desiree Wells-Cooper and Linda Wainwright. On February 28, 2019, the Federal Bureau of Investigation and the Southern Vermont Drug Task Force executed a federal search warrant at the 33 Oak Street apartment, resulting in the seizure of approximately 10 grams of cocaine, 5 grams of cocaine base, a 9mm pistol, and $2,500 of U.S. currency. Wells-Cooper, Wainwright, Juan Sanchez, Jr., and Francis Macie were all arrested on federal drug trafficking charges.
Subsequent witness interviews and searches of the contents of cellular phones and Facebook accounts revealed that Cupe’s drug organization trafficked hundreds of grams of heroin and hundreds of grams of cocaine base into Brattleboro for distribution. The investigation also revealed that Pedro Ocasio, aka “Pluto,” played a vital role in the drug trafficking. After Cupe became a fugitive, Ocasio supervised and managed the drug distribution activities at 33 Oak Street, Ocasio collected drug proceeds on Cupe’s behalf, and Ocasio armed himself with firearms to protect the illicit drugs being sold at the apartment. The investigation also revealed that Cupe transported drugs from Connecticut to Brattleboro by using multiple female coconspirators, including a 17-year-old child suffering from substance abuse disorder.
During the investigation of Ocasio’s involvement in Cupe’s drug trafficking organization, Ocasio was arrested on July 29, 2019 for aggravated assault stemming from a shooting at the intersection of Elliot Street and Elm Street in Brattleboro, Vermont. On August 14, 2019, Ocasio was charged by the federal grand jury with conspiracy to distribute controlled substances along with Cupe, Wells-Cooper, Wainwright, Sanchez, and others.
Chief Judge Crawford sentenced Ocasio to 8 years of imprisonment for his possession of firearms in furtherance of drug trafficking. Wainwright received a sentence of 4 years of imprisonment for her role in the drug trafficking conspiracy. Sanchez was sentenced to time served for his drug trafficking activity and possession of firearms, which equated to approximately 13 months of imprisonment. For hosting the drug traffickers in his apartment, Macie received a time-served sentence which equated to approximately 8 months of imprisonment. Wells-Cooper is currently a participant in the Burlington Federal Drug Court, after she pleaded guilty to conspiring to distribute controlled substances.
United States Attorney Christina E. Nolan commended the investigative efforts of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Vermont State Police, and the Brattleboro Police Department. Nolan added: “This violent and heavily armed drug trafficking organization openly and notoriously peddled poison in Brattleboro, undeterred by multiple police enforcement efforts. This case highlights the violence that follows drug trafficking, and the dangers to the most vulnerable Vermonters. The U.S. Attorney’s Office and our law enforcement partners will continue to pursue out-of-state profit-driven drug traffickers and the Vermonters who facilitate their crimes.”
“Mr. Cupe is a dangerous individual who terrorized the Brattleboro community with his violent behavior," said Thomas F. Relford, Special Agent in Charge of the Federal Bureau of Investigation's (FBI) Albany Field Office. “This sentencing should prove the FBI, along with our local, state, and federal law enforcement partners, is focused on stopping the movement and sale of drugs on our streets and ensuring our neighborhoods are free from illegal firearms.”“ATF will continue to work with our local, state and federal law enforcement partners, to vigorously combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade,” stated Kelly D. Brady Special Agent in Charge, ATF Boston Field Division
“This case is another fine example of local, state, and federal law enforcement collaborating in their investigations to take down a violent drug trafficking organization,” added Major Daniel Trudeau of the Vermont State Police. “The Brattleboro community is now a safer place with this group off the streets.”
Brattleboro Police Chief Michael Fitzgerald stated, "The Brattleboro Police Department appreciates the time and effort invested by partner law enforcement agencies in this cooperative investigation and prosecution. Several illegal guns and deadly drugs were removed from our streets, and dangerous offenders are being held accountable. Our department remains committed to assisting those struggling with substance use disorder to get the treatment they need, while at the same time aggressively investigating armed drug dealers."
The United States was represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Cupe was represented by Assistant Federal Defender David McColgin, Esq. Ocasio was represented by Thomas Sherrer, Esq. Wainwright was represented by Ernest Allen, Esq. Macie was represented by John-Claude Charbonneau, Esq. Wells-Cooper was represented by Mark D. Oettinger, Esq.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Leader of Human Trafficking Ring Sentenced to 25 Years’ ImprisonmentRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 3, 2020, Miguel Scott Arnold, age 33, of Harrisburg, Pennsylvania, was sentenced to 25 years’ imprisonment by United States District Court Judge Sylvia H. Rambo, for his role as the leader of a human trafficking operation.
According to United States Attorney David J. Freed, Arnold was convicted on June 21, 2019, after a four-day jury trial. He was convicted of (1) conspiracy to commit sex trafficking by force, fraud, and coercion; (2) sex trafficking by force, fraud, and coercion; (3) conspiracy to possess with intent to distribute heroin and marijuana; and (4) possession with intent to distribute heroin. Arnold was part of a significant sex trafficking operation that exploited over 20 victims, including juveniles. Arnold and his co-conspirators coerced the sex trafficking victims though fraud, physical assault, the deprivation of heroin to addicted victims, and threats of violence.
Four co-defendants in the case previously pleaded guilty to engaging in sex trafficking by force, fraud, and coercion, participated in a conspiracy that began in Harrisburg in the fall of 2015, and continued until it was dismantled in August 2016. Arnold and the co-conspirators rented hotel rooms and posted “escort” advertisements and photographs on backpage.com, a website that the FBI has since seized and which is no longer operational. Arnold and his co-conspirators would frequently solicit women to engage in prostitution by lying to them about the services that they would be expected to perform. Arnold and his co-conspirators would also target victims who were vulnerable by virtue of their age, financial insecurity, or drug addiction. At least three victims of the conspiracy were minors, one as young as 14 years old. Arnold and the others would take the majority of the money made during the course of the prostitution business, and distributed drugs to the women, including heroin.
In addition to Arnold, four others from Harrisburg were charged in the indictment:
- Tevin Bynoe, age 27, pleaded guilty to sex trafficking by force, fraud, and coercion on September 20, 2018, and is awaiting sentencing;
- Terrence Hawkins, age 26, pleaded guilty to sex trafficking by force, fraud, and coercion on September 20, 2018, and is awaiting sentencing;
- Joshua Guity-Nunez, age 31, pleaded guilty to conspiracy to engage in sex trafficking by force, fraud, and coercion, and was sentenced to 15 years’ imprisonment on July 10, 2020; and
- Emonie Murphy, age 23, pleaded guilty to sex trafficking by force, fraud, and coercion on August 27, 2018, and was sentenced to six years’ imprisonment on September 3, 2020.
Arnold faced a mandatory sentence of 15 years in prison for his role as the leader of sex trafficking operation. Judge Rambo noted the seriousness of the criminal conduct as the compelling reason justifying the sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The FBI coordinated the investigation and was aided by law enforcement agencies in the Harrisburg area. Assistant U.S. Attorneys Michael A. Consiglio and Christian T. Haugsby prosecuted the case on behalf of the United States.
# # #
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 Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 1 was:
Martin Shane Waddingham, 46, of Billings, on charges of possession with intent to distribute methamphetamine and prohibited person in possession of a firearm. If convicted of the most serious crime, Waddingham faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Waddingham was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-102.
Courage Dane DeCrane, 20, of Pryor, on charges of aggravated sexual abuse and abusive sexual contact. If convicted of the most serious crime, DeCrane faces life in prison, a $250,000 fine and at least five years to life in prison. DeCrane was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-16.
Destiny Nilsen, 27, of Billings, on charges of receipt of a firearm by a person under indictment. If convicted of the most serious crime, Nilsen faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Nilsen was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-98.
Appearing on Sept. 3 was:
Courtney Nicole Lienemann, 31, of Billings, on charges of possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Lienemann faces a maximum 20 years in prison, a $1 million fine and three years of supervise release. Lienemann was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-94.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 1 was:
Jose Manuel Villalobos Medina, 25, of Phoenix, AZ, on charges of possession with intent to distribute meth, heroin and fentanyl. If convicted of the most serious crime, Medina faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Medina was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department investigated the case. Pacer case reference. 20-41.
John Michael Dunne, 31, of Deer Lodge, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Dunne faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Dunne was detained pending further proceedings. The Deer Lodge Police Department, Montana Probation and Parole and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-19.
Harry B. Azure, 20, Wolf Point, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Azure faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Azure was detained pending further proceedings. Fort Peck Law Enforcement and the FBI investigated the case. Pacer case reference. 20-58.
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.
XXX
Indictment Charges Man with Using His Position at Hurricane Business to Solicit and Obtain Kickbacks from Chinese CompaniesRead the Press Release
SALT LAKE CITY – A federal indictment unsealed Friday morning charges Nan Ma, 37, of Washington, Utah, with using his position and authority as the officer in charge of production and sourcing at a home audio products company in Hurricane, Utah, to solicit and obtain kickbacks for his personal benefit from Chinese companies. Ma is a Chinese citizen with legal permanent resident status in the United States.
In exchange for the kickbacks, the indictment alleges Ma awarded lucrative contracts to these companies to manufacture and sell products to his employer. Ma used a portion of the kickback money to purchase a luxurious house and expensive cars. Ma concealed the source of the funds he was getting through the alleged kickbacks by making false representations to his employer, according to the indictment.
Ma received approximately $2.1 million in kickbacks in exchange for awarding approximately $12.4 million in contracts to the Chinese companies, all of which he concealed from his employer, identified in the indictment by the initials SVT, the indictment alleges.
After Ma purchased a home for approximately $450,000, SVT’s CEO, who knew Ma’s salary, asked Ma how he was going to pay for the home. Ma responded that the money came from his ailing father in China, who was trying to get money out of China to avoid having the Chinese government take it upon his death. The indictment alleges Ma’s explanation about the source of the funds was false.
The indictment charges Ma with three counts of wire fraud and six counts of money laundering. It also seeks the forfeiture of five properties in St. George and one in Washington along with two vehicles.
According to the indictment, SVT produces home audio products and purchases most of its component parts from suppliers in China. SVT hired Ma, who has a master’s degree in electronic marketing, in May 2011 as vice president of production/sourcing. His responsibilities included taking SVT’s engineering drawings, ideas, and designs to Chinese factories and obtaining bids from the factories to manufacture SVT’s component parts. His responsibilities also included establishing and maintain good relationships with Chinese suppliers to ensure SVT obtained quality products and favorable prices, the indictment alleges.
SVT took steps, including paying $18,000 in legal fees, to help secure Ma’s immigration status so he could live and work in the United States as well as travel to China on behalf of the business. The company later raised Ma’s salary so he could qualify for a professional work visa, and later petitioned to have Ma’s immigration status adjusted again so he could be a permanent resident immigrant with the designation of “professional holding an advanced degree.”
The indictment alleges that in his capacity as an officer at SVT assigned to establish and maintain relationships with suppliers, Ma owed a fiduciary duty of loyalty to SVT. The business was entitled to have Ma evaluate and select suppliers without being secretly rewarded for his decision through payments from the suppliers he selected. It was a violation of Ma’s duty, and of SVT’s right to honest services, for Ma to accept kickback payments from SVT’s suppliers, particularly when Ma was responsible for determining which suppliers SVT would contract with to manufacture its products, the indictment alleges.
The indictment alleges Ma provided personal bank account information to the suppliers he selected, including the seven suppliers identified in the indictment as suppliers A through G, so they could pay him after they received payments for products from SVT. After receiving funds from the suppliers, Ma transferred the money among various accounts, banks, and investment companies, according to the indictment.
Ma also told suppliers that funds for repairs to products SVT had purchased should be routed to an account he or his wife held. It was contrary to SVT policies for employees to have funds from a supplier sent to personal accounts.
Ma was arrested Thursday. He had an initial appearance this morning in federal court in St. George. He is detained pending a detention hearing Wednesday in St. George.
The potential maximum penalty for each of the three wire fraud counts is 20 years in federal prison. The six money laundering counts each have a potential maximum penalty of 10 years in prison. Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in the U.S. Attorney’s Office are prosecuting the case. Special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation are investigating the case.
Illinois Woman Sentenced to Prison for Conspiring to Commit Wire Fraud and Aggravated Identity TheftRead the Press Release
Lamesha Conley of Chicago, Illinois, was sentenced to 24 months in prison today for conspiracy and identity theft charges related to a scheme to obtain fraudulent tax refunds using stolen identity information, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois.
According to documents and information provided to the court, beginning in 2014, Conley provided more than 6,000 stolen identities to Dominque King and Roxann Gist for the purpose of filing fraudulent income tax returns. Between 2014 and July 2015, King and Gist used those stolen identities to file fraudulent income tax returns with the IRS seeking more than $2.6 million in refunds. King and Gist directed that some of the refunds be mailed to Conley and other co-conspirators.
In addition to the term of imprisonment, U.S. District Judge Robert William Gettlemen ordered Conley to serve 1 year of supervised release and to pay approximately $1,196,460 in restitution to the United States.
King, Gist, and other co-defendants previously pleaded guilty for their roles in the scheme. King was sentenced to 30 months in prison and Gist was sentenced to 36 months in prison. They were ordered to pay $1,332,935 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lausch commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lee F. Langston, and former Trial Attorney Timothy M. Russo, of the Tax Division, who prosecuted this case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Illegal Drug User in Possession of a Gun Sentenced to Federal PrisonRead the Press Release
Rodney Cook, age 40, of Starke, Florida, received the prison term after an August 24, 2020 guilty plea and sentencing on one count of possession of a firearm by an illegal drug user.
Information disclosed during the change of plea and sentencing hearings revealed that on May 5, 2019, law enforcement was dispatched to the Park Motel in Denison, Iowa, in response to reports that a man had fired a gun from inside his room into the parking lot on the south side of the motel. When police responded they did not see the shooter but noticed that the door to a particular hotel room was open and the window had been broken out. As law enforcement approached that room, they observed Cook standing in his hotel room reloading a revolver. Cook told one officer he had used methamphetamine earlier and there was meth in the room. Cook told another officer he had fired the revolver in an attempt to scare some people away. A subsequent search of his room revealed methamphetamine and a second handgun. Cook has twice before been convicted of misdemeanor violence, including an assault and battery on a law enforcement officer.
Cook was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Cook was sentenced to 24 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Cook is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Denison, Iowa Police Department and the Tri-State Drug Task Force based in Sioux City, Iowa (that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement United States Marshals Service; South Dakota Division of Criminal Investigation), and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4070.
Follow us on Twitter @USAO_NDIA.
Grand jury indicts St. Charles County man for sex trafficking of a childRead the Press Release
ST. LOUIS – A federal grand jury indicted Thomas J. Bowles, in a five-count indictment, for sex trafficking of a child. The 44 year old is a resident of St. Charles County.
According to court documents, between January 2016 and August 2020, Bowles used social media (Kik) to knowingly recruit, entice, transport, provide, obtain, maintain, patronize and solicit ‘Jane Doe 1’ and ‘Jane Doe 2’. Both under the age of 18.
Also during the time mentioned above, Bowles used interstate commerce and persuaded, induced, enticed and coerced twos minor, under 18 years of age, to have sex and engage in prostitution.
Bowles faces no less than 10 years and a maximum of life in prison if convicted. He could also face a fine of no more than $250,000. Bowles is presumed innocent until proven guilty.
"It's not uncommon for child predators to cast a wide net on social media to see who responds and whom they can victimize," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "In this case, that's how the defendant met his victims, underscoring just how careful we all need to be when engaging with strangers on-line."
The Federal Bureau of Investigation, St. Charles County Police. St. Louis County Police and Jefferson County Sheriff’s Department investigated this case. Assistant U.S. Attorney Jillian Anderson is handling the case.
Law enforcement is asking for help identifying other victims. Please contact the St. Louis County Special Investigations Unit at 314-615-8618 with info.
Gloucester City Man Charged with Bombing and Unlawful Possession of Explosives and Short-Barreled RifleRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was charged today for detonating an explosive device at a local business and unlawfully possessing unregistered destructive devices and a short-barreled rifle, U.S. Attorney Craig Carpenito announced.
Dwayne A. Vandergrift Jr., 35, of Gloucester City, New Jersey, is charged by complaint with malicious use of explosives, unlawful possession of two destructive devices, and unlawful possession of a short-barreled rifle. Vandergrift will make his initial appearance before U.S. Magistrate Judge Karen M. Williams at a later date.
According to the complaint:
During the early morning hours of Aug. 26, 2020, Vandergrift placed an explosive device on the front door of a local gym near his home in Gloucester City. Security camera footage recorded Vandergrift fleeing the area moments before the device exploded, badly damaging the front door and shattering its glass. On Aug. 28, 2020, federal and local law enforcement officers executed a search warrant at Vandergrift’s home and found substantial quantities of bomb making materials, numerous weapons, including an unregistered short barreled rifle, several tactical vests outfitted with body armor and loaded 30-round ammunition magazines, and a marijuana grow operation containing approximately 85 marijuana plants. Upon examining Vandergrift’s personal computer devices, investigators discovered that he had recently researched how to construct and utilize various explosive devices, including pipe and pressure cooker bombs. Vandergrift was arrested by local authorities on Aug. 28, 2020, and charged by the Camden County Prosecutor’s Office. He is presently in custody on those charges.
The malicious use of explosive charge carries a maximum prison term of 20 years and a maximum fine of $250,000. The charges for possession of the unregistered destructive devices and short-barreled rifle carry maximum prison terms of 10 years each and maximum fines of $250,000.
U.S. Attorney Carpenito credited special agents and task force officers of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll and the FBI’s Philadelphia Joint Terrorism Task Force, with the investigation leading to today’s arrest. He also thanked officers of the Gloucester City Police Department, under the direction of Police Chief Brian Morrell; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert L. Wilson; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; Homeland Security Investigations, under the direction of Special Agent in Charge Jason Molina; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Georgia Resident Sentenced to Federal Prison for Theft in Panama City, Florida, Following Hurricane MichaelRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, today announced that Michaelo Moore of Stone Mountain, Georgia, was sentenced to 21 months in federal prison, followed by supervised release, after pleading guilty on June 25, 2020, to conspiracy to commit mail theft and mail theft. The Panama City Police Department arrested Moore on February 19, 2019, after receiving reports that he had attempted to recruit several members of the city’s transient population to help him cash fraudulent checks.
“This individual not only stole from the citizens of our District who were still recovering in the aftermath of Hurricane Michael, he then exploited desperate and displaced individuals to help him complete his criminal acts,” said U.S. Attorney Keefe. “Our prosecutors worked hand in hand with our federal and local law enforcement partners to ensure Mr. Moore was held duly accountable for his crimes, and we will continue to prosecute those who attempt to prey on the good people of Northern Florida.”
Moore, 45, was found in possession of three stolen checks when he was stopped by officers of the Panama City Police Department in February 2019. One of the passengers in the vehicle told authorities that Moore and another passenger, Maurice Senior, were in the area for the purpose of stealing checks from the mail and asking transient individuals to cash those checks. The third passenger in the vehicle was a transient individual who admitted he had agreed to cash checks for Moore and his co-conspirator in exchange for money. Senior, 43, of Atlanta, Georgia, whose fingerprints were later discovered on the stolen checks, received a prison sentence of 10 months for mail theft on April 21, 2020.
“The Postal Inspection Service is committed to securing the nation’s mail system, it’s customers, and making sure those responsible with violating the Sanctity of the Seal answer for their crimes,” said Antonio Gomez, Inspector in Charge of the United States Postal Inspection Service, Miami Division.
Assistant United States Attorney Aine Ahmed prosecuted this case following a joint investigation by the United States United States Postal Inspection Service, the Panama City Police Department, the Bay County Sheriff’s Office and the Panama City Beach Police Department.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - Michaelo MooreGang-member rapper who glorified guns sentenced to federal prison for illegal possession of a firearmRead the Press Release
AUGUSTA, GA: A gang member and self-styled rapper with a felony criminal record has been sentenced to seven years in federal prison for illegally possessing a gun.
Antonio Dondrell Bell, 29, of Grovetown, Ga., was sentenced to 84 months in prison by U.S. District Court Chief Judge J. Randal 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 his prison term, Bell will be required to serve three years of supervised release. There is no parole in the federal system.
“Antonio Bell knew that as a convicted felon he is not allowed to carry firearms, yet he chose not only to violate the law but to brazenly glorify gun possession in his videos posted online,” said U.S. Attorney Christine. “Now, inside a prison, he might have a live audience – but he won’t be able to flash firearms in his performances.”
According to court documents and information shared in court, Bell was arrested in Dec.7, 2018, after a traffic stop in Augusta by Richmond County sheriff’s deputies who found a loaded Ruger 9mm handgun with high-capacity magazine under the driver’s seat of the 2015 Chevrolet Corvette Bell was driving.
In online videos in which he performs under the name “Yayo,” Bell is seen holding a firearm while also flashing large stacks of cash. He claimed the videos were staged for his budding music career, while also admitting that he was a member of the 5-9 Brims, a subset of the violent Bloods criminal street gang. Bell faces additional state charges, including indictments on multiple counts of the Georgia Street Gang Terrorism and Prevention Act.
Bell has previous felony convictions, which make it illegal for him to possess a firearm.
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) considers Richmond County Sheriff’s Office a critical partner in its long-term mission of removing criminals and gangs from our communities in the Augusta area,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF.
Fraud Alert: Scammers Who Claim to be with the Department of Justice are Preying on the ElderlyRead the Press Release
U.S. Attorney Robert S. Brewer Jr. (619) 557-5690
NEWS RELEASE SUMMARY – September 4, 2020
SAN DIEGO – The U.S. Department of Justice has received multiple reports that individuals claiming to represent the DOJ are calling members of the public as part of an imposter 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.
“We don’t want anyone – particularly our seniors – to be fooled by scammers posing as employees of the Department of Justice,” said U.S. Attorney Robert Brewer. “Please protect yourself! Do not be fooled by scammers, and don’t give out your personal information to a random caller claiming to be a DOJ employee.”
“Phone scams are an ugly and pervasive act of victimization. The scams being reported to our National Elder Fraud Hotline are especially heinous because they show the perpetrators are preying upon one of the most vulnerable segments of our society – the elderly,” said Director Jessica Hart of the Office of Justice Programs’ Office for Victims of Crime (OVC). “As if this were not despicable enough, the scammers do so posing as employees of the Justice Department, usurping public trust in the agency that serves as a bastion of fairness and lawfulness while these scams exploit the elderly for financial gain. The first step to identifying these criminals is to have their crimes reported.”
Those who receive these calls are encouraged not to provide personal information and 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 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://stopelderfraud.ovc.ojp.gov/
Fraud Alert: Scammers Claiming to be with DOJ, Preying on ElderlyRead the Press Release
The Office of Justice Programs’ Office for Victims of Crime (OVC) has received multiple reports that individuals claiming to represent the Department of Justice are calling members of the public as part of an imposter 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.
“Phone scams are an ugly and pervasive act of victimization. The scams being reported to our National Elder Fraud Hotline are especially heinous because they show the perpetrators are preying upon one of the most vulnerable segments of our society – the elderly,” said OVC Director Jessica Hart. “As if this were not despicable enough, the scammers do so posing as employees of the Justice Department, usurping public trust in the agency that serves as a bastion of fairness and lawfulness while these scams exploit the elderly for financial gain. The first step to identifying these criminals is to have their crimes reported.”
Those who receive these calls are encouraged not to provide personal information and 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 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://stopelderfraud.ovc.ojp.gov/.
Former postal worker sentenced for stealing cash from mail at Sweet Grass post officeRead the Press Release
GREAT FALLS – A former U. S. Postal Service worker who admitted going through mail and stealing cash and gift cards from envelopes was sentenced on Sept. 3 to two years of probation, fined $1,000 and ordered to pay $2,065 restitution, U.S. Attorney Kurt Alme said today.
Amanda Holland, 38, of Sunburst, pleaded guilty in May to theft of mail by a postal employee and destruction of mail by a postal employee.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution said that Holland began working in January 2017 for the U.S. Postal Service as a part-time employee in the Sweet Grass and Sunburst post offices, where she assisted customers, processed money orders and sorted mail for delivery. In early 2019, the Postal Service received several reports from individuals indicating that cash and greeting cards sent through the Sweet Grass office did not reach their destinations. Some individuals reported that the envelopes were delivered but that they had been torn open and resealed and were missing cash.
An investigation using test mailings with envelopes containing gift cards and surveillance cameras led to Holland. The gift cards were redeemed to buy jewelry, clothes and candy, and the cameras showed Holland acting suspiciously while working, including placing mail in her apron and cash in a personal bag.
When interviewed by law enforcement, Holland initially denied knowing anything about the mail thefts but then admitted to taking money about three to four times a week, including stealing $30 that day prior to the interview. Holland told law enforcement she would target what appeared to be holiday or birthday cards, open and take items of value, attempt to reseal the envelopes and throw them away if she could not.
Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated the U.S. Postal Service Office of Inspector General.
XXX
Former Executive Officer for Southern Ute Indian Tribe Indicted for Sexual Assault on A ChildRead the Press Release
DURANGO – United States Attorney Jason R. Dunn today announced that McKean Walton, age 51, of Ignacio, Colorado, was indicted on multiple charges stemming from the alleged sexual assault of a child on the Southern Ute Indian Reservation. According to publically available information, Walton was the Executive Officer for the Southern Ute Indian Tribe.
The indictment was returned on September 1, 2020, charging Walton with two counts of aggravated sexual abuse of a child in Indian Country, and one count of sexual abuse of a minor in Indian Country. The indictment alleges that the conduct took place between 2009 and 2011.
Walton made his initial appearance today by video-teleconference from the La Plata County Detention Facility before U.S. Magistrate Judge James Candelaria. He was advised of his rights and the charges pending against him. A detention hearing is scheduled for September 10, 2020. If convicted on the counts alleged in the indictment, Walton faces a mandatory minimum sentence of thirty years imprisonment.
The charges are allegations and the defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 20-cr-260.
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.
Florida Man Indicted in Skimming Scheme at New England Gas StationsRead the Press Release
BOSTON – A federal grand jury returned an indictment against a Florida man for his role in a scheme to install and maintain a network of electronic skimming equipment at gas stations across New England, in order to steal thousands of customers’ debit and credit card account numbers and other personally identifying information.
Luis Angel Naranjo Rodriguez, 29, of Hialeah, Fla., was charged with eight counts of wire fraud, four counts of bank fraud, four counts of aggravated identity theft, one count of possessing 15 or more counterfeit or unauthorized access devices (the debit and credit card account numbers) and one count of possessing device-making equipment (the card skimming devices). Naranjo Rodriguez was previously arrested on related federal charges on March 9, 2020 and has been detained since that time.
As alleged in the charging documents, Naranjo Rodriguez secretly installed card skimming devices in gas pumps in Massachusetts gas stations and in other New England states. The devices were programmed to send Naranjo Rodriguez’s mobile phone a text message with captured account information after customers had used their debit or credit cards to purchase gas at the pumps where the devices were installed. Card skimming devices sending stolen account information to Naranjo Rodriguez’s mobile phone were traced to at least 11different gas stations located in Lynnfield, Concord, Malden, Taunton, Randolph and Raynham; Portland, Maine; Nashua, N.H.; and Willington, Conn.
Between April 2019 until November 2019, Naranjo Rodriguez traveled frequently from Florida to Massachusetts to maintain this network of card skimmers. During the course of the scheme, Naranjo Rodriguez’s mobile phone allegedly received nearly 5,000 text messages containing stolen debit and credit card account numbers. Many of these text messages also included the account holders’ names and Personal Identification Numbers (PINs).
Naranjo Rodriguez cloned the account information stolen from unwitting gas station customers onto branded prepaid debit cards. On Nov. 16, 2019, Naranjo Rodriguez allegedly used four cloned cards to withdraw money from victims’ bank accounts at ATMs in Framingham.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000. The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a $1 million fine. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. The charge of possessing device-making equipment provides for a sentence of up to 15 years in prison, three years of supervised release and a $250,000 fine. The charge of possessing 15 or more counterfeit or unauthorized access devices provides for a sentence of up to 10 years in prison, three years of supervised release and a $250,000 fine. 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 and Frederick J. Regan, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Special assistance was provided by the Concord, Lunenburg and Raynham Police Departments in Massachusetts, Nashua (N.H.) Police Department and the Portland (Maine) Police Department. Assistant U.S. Attorneys William Abely and Fred Wyshak III of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Boise Methamphetamine TraffickerRead the Press Release
BOISE – A federal jury sitting in Boise convicted Edward Eric Behrens, 42, of Boise, of possession with intent to distribute methamphetamine, U.S. Attorney Bart M. Davis announced today. The trial began on Monday, August 31, 2020, and concluded Thursday evening when the jury returned their verdict.
During the four-day trial, the jury heard evidence that on February 2, 2019, Behrens was driving his car when he was stopped by Boise Police for a traffic infraction. During the stop, a drug-sniffing canine alerted to the odor of drugs in the car. A search of the car then revealed a large plastic bag containing 435.68 grams of pure methamphetamine. The evidence showed that this methamphetamine was possessed by Behrens and that he intended to distribute it to others.
Sentencing is scheduled for December 10, 2020, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. Behrens faces a sentence of 15 years to life in federal prison, a maximum fine of $10 million, and up to five years of supervised release.
This case was investigated by the Boise Police Department, Ada County Sheriff's Office, Idaho State Police, and Drug Enforcement Administration.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office, with funds provided by the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA). The HIDTA program is a national drug-prohibition enforcement program run by the United States Office of National Drug Control Policy. The Oregon-Idaho HIDTA is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations. Idaho uses HIDTA funds to investigate and prosecute drug trafficking organizations that operate in and around Ada, Canyon, and Bannock counties.
# # #
Everett, Washington, man charged federally for possessing firearm stolen from Seattle Police Department vehicle during May 30 riotRead the Press Release
Seattle – A 24-year-old Everett resident appeared in U.S. District Court in Seattle today charged with possession of a stolen firearm in connection with a high-powered rifle taken during a downtown Seattle riot on May 30, 2020, announced U.S. Attorney Brian T. Moran. JACOB D. LITTLE was captured by both Seattle Police surveillance photos and images posted online with the large bag used to store the Colt M4 rifle with a suppressor. The rifle still has not been recovered.
Using not only the images captured of the riot scene, but tips from the public, Seattle Police investigators linked LITTLE to the stolen firearm. Images show a man that appears to be LITTLE removing the heavy bag from a Seattle Police vehicle parked outside the downtown Nordstrom store. The vehicles were heavily damaged and ultimately burned by rioters. The investigation reveals that in electronic messages following the theft, LITTLE appears to be negotiating the sale of the firearm. He states in the messages that he has removed the sling and suppressor and the “red dot” (a type of optical sight) from the rifle. All those accessories were present on the rifle when stolen from the Seattle Police vehicle.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Possession of a stolen firearm is punishable by up to ten years in prison and a $250,000 fine.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Snohomish County Violent Offender Task Force and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Kate Crisham.
Convicted Felon with Prior Domestic Violence History Given 5 Year Sentence for Gun PossessionRead the Press Release
Memphis, TN – Clinton Towles, 39, has been sentenced to 60 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in Court, on April 28, 2019, at approximately 3:00 a.m., Memphis Police Officers responded to an aggravated assault call in the 600 block of Pearce Street. A victim advised that an unknown male was intoxicated and beating on her mother's vehicle parked on the street and when she confronted the suspect, he threatened to shoot her and pointed a revolver at her and other family members.
When officers arrived on the scene, a person matching the suspect's description was walking nearby the house. Officers searched him and found a revolver in his waistband along with 6 spent shell casings. The victims immediately recognized the person as the suspect who pointed the gun at them. The defendant initially gave the police his name as Curtis Gilchrease. When the officers discovered Towles gave false identification, he advised law enforcement that he used his uncle’s name because he was a convicted felon.
As a result of his prior felony convictions including reckless aggravated assault, and several misdemeanor convictions for domestic assault involving bodily injury, Towles is prohibited by federal law from possession of firearms or ammunition.
On February 21, 2020, Towles pled guilty to being a convicted felon in possession of a firearm and possessing a firearm after having been convicted of a misdemeanor crime of domestic violence.
On September 3, 2020, U.S. District Court Judge Thomas L. Parker sentenced Towles to 60 months in federal prison, followed by 3 years supervised release. There is no parole in the federal system. Towles is also charged with aggravated assault in state court, and that case is still pending.
U.S. Attorney D. Michael Dunavant said, "Based upon his prior criminal history, Towles has demonstrated his propensity for violence. Under our PSN and Project Guardian initiatives, we focus on removing firearms from the hands of prohibited persons, and removing dangerous offenders from our streets. Clearly, this recidivist had no hesitation in committing another violent crime with a firearm, and he will now be rightly punished and removed from the community for 5 years."
This case was investigated by the Memphis Police Department and Project Safe Neighborhoods Task Force. The Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Justice Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Project Guardian is a new DOJ initiative designed to reduce gun violence and enforce federal firearms laws across the country by focusing on investigating, prosecuting, and preventing gun crimes.
Special Assistant U.S. Attorney Samuel D. Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
###
Convicted Felon Sentenced to 9 Years in Prison for Drug Trafficking and Firearm Related OffensesRead the Press Release
GAINESVILLE, FLORIDA – Burgess Green, 41, of Ocala, Florida, was sentenced on September 1, 2020, to a total of 9 years in federal prison after pleading guilty on September 19, 2019, to conspiracy to distribute and possess with intent to distribute more than 50 grams methamphetamine and possessing a firearm in furtherance of drug trafficking. Green is now a fourteen-time convicted felon with prior convictions for sale of cocaine and possession with intent to sell cocaine and cannabis, evidence tampering, fleeing/eluding law enforcement, and possession of cocaine. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
“The sale and use of methamphetamines in our communities has devastating and wide-reaching effects and must be stopped,” said U.S. Attorney Keefe. “With the help of our federal, state, and local law enforcement partners, we will continue to pursue, prosecute, and punish those who bring these drugs into hometowns across Northern Florida.”
Agents from the Drug Enforcement Administration (DEA) have been working with deputies from the Dixie County Sheriff’s Office (DCSO) to investigate and prosecute individuals who are distributing large amounts of methamphetamine in the Dixie County area. On June 5, 2019, agents learned that Green was in Dixie County to deliver methamphetamine. As he was leaving Dixie County, DCSO deputies alerted the Levy County Sheriff’s Office (LCSO). LCSO deputies identified the vehicle Green was traveling in and conducted a traffic stop. During the search that followed, deputies found that Green was in possession of more than $2,000 cash. They also located a loaded pistol in the vehicle. Green admitted that he had just delivered methamphetamine to individuals in Dixie County and that the cash was proceeds from those sales. Green also admitted the firearm was his.
“Those who distribute dangerous drugs in our communities endanger lives,” said Keith Weis, Acting Special Agent in Charge for the DEA Miami Field Division. “The DEA Miami Field Division will continue our commitment to working with our law enforcement partners at all levels to investigate and stop violent drug trafficking in Florida.”
Further investigation by the DEA revealed that Green was involved with several others in an ongoing conspiracy to distribute methamphetamine in the Dixie County area. Agents determined that over the course of the conspiracy, Green had supplied over 5 kilograms worth of methamphetamine to individuals in Dixie County.
Green will serve 7 years on the conspiracy to traffic in methamphetamine charge followed by 2 years on the firearm charge. The Court also ordered 5 years of supervised release following Green’s prison term. This sentencing resulted from the collaborative work of the Drug Enforcement Administration, the Dixie County Sheriff’s Office, and the Levy County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release U.S. vs Burgess GreenControlled Substance Disposal Company Pays to Resolve Allegations of Civil LiabilityRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Specialty Disposal Services, Inc., a controlled substance disposal company with its principal place of business in New Jersey, will pay $137,500 and enter into an administrative memorandum of agreement with the Drug Enforcement Administration to resolve allegations that the company negligently failed to complete required records regarding the disposal of certain controlled substances.
Specialty Disposal Services (SDS) is registered with the DEA as a reverse distributor. The settlement announced today resolves allegations that SDS negligently failed to make and keep records required by the Controlled Substances Act for reverse distributors arising from SDS’s transportation of controlled substances to a third-party facility in Morrisville, PA. In particular, the settlement resolves allegations that SDS negligently failed to properly complete the DEA form requiring verification that SDS’s employees witnessed the destruction of the controlled substances, which ultimately led to some of those controlled substances being subject to diversion by employees of the third-party facility. There are no allegations, however, that SDS was aware of or involved in the diversion. The settlement resolves liability for SDS’s record-keeping from January 9, 2017 through September 30, 2018.
In addition to the $137,500 civil penalty, SDS entered into an administrative agreement with the DEA, in which it agreed to various compliance and monitoring measures such as ensuring its compliance with these regulatory obligations. SDS and the third-party facility cooperated with the government’s investigation.
“The accountability and record-keeping requirements imposed by the DEA for companies that handle controlled substances are critical in preventing diversion,” said U.S. Attorney McSwain. “This civil settlement acknowledges the important responsibilities that all controlled substance disposal companies have to comply with those requirements and to do their part to prevent controlled substances from falling into the wrong hands.”
“Reverse distributors like Specialty Disposal Services play an important role in the closed distribution system of pharmaceutical controlled substances,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “As such, their observation and documentation of the proper disposal of these same substances are essential to their responsibilities under the Controlled Substances Act.”
The civil investigation was conducted by the Philadelphia Field Division of the Drug Enforcement Administration. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability and no admission of any facts.
Clovis Man Charged with Attempted Online Enticement of Minor to Engage in Illegal Sex Acts and Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment yesterday against Thomas Layman Binford, 55, of Clovis, California, charging him with separate counts of attempting coercion and enticement of a minor and receipt of material involving the sexual exploitation of minors, as well as receipt of child pornography, United States Attorney McGregor W. Scott announced.
According to court documents, Binford traveled to a park in Fresno, California on the evening of July 28, 2020, with the intent of meeting and engaging in illegal sex acts with a 13 year-old minor he had earlier met online through the Skout social media application. Upon his arrest at the park, his cell phone was seized and subsequently searched, where over 250 images of minors being sexually exploited were found.
This case was the product of an investigation by the Fresno County Sheriff’s Office, Clovis Police Department, Fresno Police Department, and the Fresno Office of Homeland Security Investigations, the investigative arm of the Department of Homeland Security. Assistant U.S. Attorney Brian W. Enos is prosecuting the case.
If convicted of the attempted online enticement charge, Binford faces a mandatory minimum sentence of ten years and maximum statutory penalty of life in prison, and a $250,000 fine. If convicted of the receipt of child pornography charge, Binford faces a mandatory minimum sentence of fifteen years and maximum statutory penalty of forty years in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Cedar Rapids Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of Children in the PhilippinesRead the Press Release
A man who sexually exploited children in the Philippines was sentenced today to 30 years in federal prison.
William Meyer, age 65, of Cedar Rapids, Iowa, received the sentence after a February 4, 2020 guilty plea to one count of sexual exploitation of children. At the plea hearing, Meyer admitted that between 2012 and 2019 he persuaded, induced, or enticed minors to engage in sexually explicit conduct for the purpose of producing visual depictions or transmitting live visual depictions of this conduct. The record at the sentencing hearing established that Meyer had traveled to the Philippines for charitable work. The live visual depictions included sexually explicit Skype video transmissions from at least six children in the Philippines, including three prepubescent girls.
Meyer was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Meyer was sentenced to 360 months’ imprisonment and fined $50,000. Special assessments of $5,100 were imposed and Meyer must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 19-105.
Follow us on Twitter @USAO_NDIA.