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4 September 2020
Catonsville Drug Dealer Pleads Guilty to Federal Charge of Conspiring to Distribute Fentanyl and Heroin in BaltimoreRead the Press Release
Baltimore, Maryland – Jermol McCoy, age 37, of Catonsville, Maryland, has pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin and fentanyl. At the guilty plea hearing yesterday, McCoy also admitted that he committed this crime while on supervised release for a previous federal drug conviction.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA), Baltimore District Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police (MSP); Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services (DPSCS); and Baltimore City State’s Attorney Marilyn Mosby.
According to his guilty plea, from at least 2018 through 2019, McCoy conspired with others to distribute heroin, fentanyl, and crack cocaine in and around Baltimore. During the investigation, law enforcement intercepted phone calls and text messages in which McCoy made plans to distribute drugs, spoke about the hierarchy of the drug trafficking organization, and discussed methods to avoid detection by law enforcement.
On November 21, 2019, law enforcement executed a search warrant at McCoy’s apartment in Catonsville, which he used to manufacture and distribute controlled substances. Law enforcement recovered 4.9 grams of fentanyl in a plastic bag behind the microwave, cutting agent, and drug paraphernalia, including a kilogram press, digital scales, three boxes of plastic baggies, and cellular phones. In addition, law enforcement recovered a loaded 9mm semi-automatic pistol concealed in a bag in the bedroom. McCoy is prohibited from possessing a firearm or ammunition as a result of his previous felony conviction.
McCoy and the government have agreed that, if the Court accepts the plea agreement, McCoy will be sentenced to 10 years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for December 15, 2020.
United States Attorney Robert K. Hur commended the DEA, the ATF, the Baltimore Police Department, MSP, DPSCS and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joan C. Mathias and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Career Drug Trafficker Sentenced to 15+ Years in PrisonRead the Press Release
MACON, Ga. – A drug trafficker with past criminal convictions was sentenced to more than 15 years in prison as the result of a lengthy investigation in the Warner Robins, Georgia area, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Robert Law, 36, of Lizella, Georgia was sentenced by U.S. District Judge Marc Treadwell on Tuesday, September 1 to 188 months in prison followed by three years of supervised release after he pleaded guilty to conspiracy to possess with intent to distribute cocaine and cocaine base. There is no parole in the federal system.
Drug Enforcement Administration (DEA) and Warner Robins Police Department (WRPD) agents received information from confidential informants that Law was trafficking illegal drugs, including cocaine, in Warner Robins, Georgia. During the course of the investigation from May 2018 until September 2018, agents recorded Law coordinating the distribution of cocaine and conducted controlled buys through confidential informants. In all, Law distributed 1091.1 grams cocaine hydrochloride and 121.67 cocaine base. Law is a career offender, with previous convictions for possession with intent to distribute cocaine, sale of cocaine and trafficking cocaine.
“Law has demonstrated zero respect for the laws that govern our communities with his continued and prolific distribution of cocaine in Middle Georgia,” said Charlie Peeler, the U.S. Attorney. “Thanks to the excellent investigative work by the DEA and the Warner Robins Police Department, another drug trafficker is off the streets and won’t be able to push illicit and deadly substances in Warner Robins.”
“We want to send a clear message that Robert Law’s sentencing illustrates the seriousness that comes with the distribution of large volumes of poison to the community. This sentence appropriately fits the defendant’s level of criminal activity,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division. “The investigation of this case was a success because of the efforts between DEA and its law enforcement counterparts.”
“Warner Robins Police are appreciative of the dedication, determination and cooperation of the U.S. Attorney’s Office and the DEA to rid our community of a long-serving drug dealer. Mr. Law’s drug tradecraft has resulted in criminal acts and violence that immeasurably affects all aspects of community life. We can be assured he will no longer be an obstacle to a safer environment for our future,” said Warner Robins Police Chief John Wagner.
The case was investigated by the Drug Enforcement Administration (DEA) and the Warner Robins Police Department. Assistant U.S. Attorneys Charles Calhoun and Steven Ouzts prosecuted 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.
Broken Arrow Man Receives 36 Months Probation for Making Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Aaron Robert Schupp, age 36, of Broken Arrow, Oklahoma was sentenced to 3 years of probation for Making Counterfeit Obligation, in violation of Title 18, United States Code, Section 471. The charges arose from an investigation by the Broken Arrow Police Department and the United States Secret Service.
The Indictment alleged that beginning in or about September 2018, and continuing until on or about September 17, 2019, the Defendant, with intent to defraud, falsely made, forged, counterfeited and altered an obligation of the United States, fifteen counterfeited twenty-dollar Federal Reserve Notes, and six counterfeited one-hundred-dollar Federal Reserve Notes.
United States Attorney Brian J. Kuester said, “Counterfeiters can very quickly do a lot of harm to a community by injecting worthless currency into unsuspecting local businesses. Fortunately for the City of Broken Arrow and the surrounding areas, a prompt and thorough investigation by the Broken Arrow Police Department and the United States Secret Service, this scheme came to an abrupt halt.”
“The United States Secret Service aggressively investigates the manufacturing and distribution of counterfeit currency in order to protect the integrity of our financial systems,” said Douglas Farrell, Resident Agent in Charge of the Tulsa U.S. Secret Service Office. “Counterfeiting victimizes everyone in our community and can be especially devastating to small business where a significant loss can cripple an operating budget. The effective partnership between the Secret Service and the Broken Arrow Police Department led to successful prosecution of this case and sends a strong message that our community will not tolerate these type of criminal offenses.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.
Boulder Man Sentenced for Possessing Tens of Thousands of Images and Videos of Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Wesley David Gilreath, age 30, of Boulder, was sentenced today to serve 186 months in federal prison (15.5 years) followed by 10 years on supervised release for possession of child pornography. Gilreath was remanded at the conclusion of the sentencing hearing. The Denver office of the FBI joined in today’s announcement.
According to the stipulated facts contained in his plea agreement, the FBI searched Gilreath’s phone pursuant to a federal search warrant after it was found on a bus. The contents of Gilreath’s phone included approximately 12,000 images and 200 videos depicting child pornography. Gilreath also used the phone to seek out child pornography.
On July 31, 2019, the defendant was arrested pursuant to a federal warrant. During a subsequent search of his residence, FBI agents seized a thumb drive with approximately 22,000 images and 2,400 videos depicting child pornography. Agents also seized a second phone with approximately 4,750 images and 1,400 videos depicting child pornography. The child pornography on the thumb drive and both of the defendant’s phones included images and videos depicting the sexual abuse and torture of toddlers and infants. In addition, Gilreath used various social media, including three Twitter accounts and one Gab account, to knowingly receive, transport and distribute child pornography.
During the sentencing hearing, evidence was presented to the court that Gilreath had posted “hunting guides” online targeting Jews, Muslims, and other groups. During the search of the defendant’s residence, agents found: a full-size Nazi flag, two full-size black and white flags bearing symbols associated with white supremacy; a book titled “National Anarchism”; a book titled “American Terrorist: Timothy McVeigh and the Oklahoma City Bombing”; a book titled “In Bad Company: America’s Terrorist Underground”; and a tee-shirt bearing Timothy McVeigh’s face, among other items. Agents also found hand-written notes bearing the names and addresses of 15 Mosques, Synagogues, religious centers and other locations, all less than 35 miles from the defendant’s apartment. Additionally, the investigation revealed that in May 2019, Gilreath attempted to purchase a firearm, but that purchase was denied following a query of the National Instant Criminal Background Check System (NICS).
“While one image of child pornography is horrific, tens of thousands of images and videos in the possession of one person is almost incomprehensible in its depravity and wickedness. While we can never return the lost innocence that this defendant has stolen, this sentence ensures that he can no longer contribute to the market for these images,” said U.S. Attorney Jason Dunn. “Mr. Gilreath was also a credible threat to various religious communities in Colorado. They can now rest assured that that threat has been stopped for at least a very long time.”
“The FBI will continue to do everything in its power to stop children from being exploited and bring justice to those responsible,” said FBI Denver Special Agent in Charge Michael Schneider. “This case is a great example of the work that can be done when state and federal partners collaborate to hold those accountable for their actions. We appreciate the dedication of the Boulder Police Department, RTD, and United States Attorney's Office in this investigation.”
This case was prosecuted by Assistant U.S. Attorney Julia Martinez.
The sentence was pronounced by U.S. District Court Judge Raymond P. Moore. This case was investigated by the FBI with support from the Boulder Police Department, RTD, and the Rocky Mountain Regional Computer Forensic Lab.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-384.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. 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.
Blue Springs Man Sentenced to 30 Years for Meth ConspiracyRead the Press Release
Neal A. NorlesSPRINGFIELD, Mo. – A Blue Springs, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Neal A. Norles, 31, was sentenced by U.S. District Judge Roseann Ketchmark to 30 years in federal prison without parole.
On Sept. 5, 2019, Norles pleaded guilty to possessing methamphetamine with the intent to distribute.
Norles served as a methamphetamine source for a large-scale, multi-state drug-trafficking organization that distributed at least 13.28 kilograms of pure methamphetamine. Norles transported the methamphetamine from California to Missouri and distributed that methamphetamine to high-level dealers in Kansas City and southwest Missouri.
During the course of the investigation, a Missouri State Highway Patrol trooper seized nearly 2.4 kilograms of methamphetamine from a Dodge Charger in which Norles was a passenger during a traffic stop on Interstate 44 in Newton County, Missouri, on Jan. 22, 2019. During a search of the Charger, a trooper found five vacuum-sealed packages of methamphetamine, weighing approximately 2,384 grams, hidden in the rear-windshield-deck trim. The traffic stop was made while Norles was returning from a trip to Los Angeles, California.
Norles possessed firearms in connection with his drug-trafficking activities and exchanged methamphetamine for firearms.
The government introduced evidence at court that Norles glamorized this violent life with his posts on social media. In one image, Norles is pointing three firearms at the viewer and the image is captioned, “Last sight he seen.” In the second image, Norles is pointing a firearm at the viewer with the caption “…IMA SHOOTER!!” In a third image, Norles is pointing a firearm at himself, while consuming what appears to be marijuana, with the caption “going out by the gun.” In the last image, Norles is holding a firearm and what appears to be a marijuana roach with the caption “…on me foreva!!”
Norles is the second defendant sentenced in this case. Co-defendant Brent A. Tribble, 30, of Kirbyville, Missouri, was sentenced on March 5, 2020, to 24 years in federal prison without parole. Co-defendants Stephan D. Samons, 30, of Camdenton, Missouri, and April E. Luke, 32, of Springfield, Missouri have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Alabama Man Pleads Guilty to Violating Federal Sex Offender Registration and Notification ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that YAMIL DIAZ, 48, formerly of Alabama, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of failing to register as a sex offender.
The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to court documents and statements made in court, in May 2019, Diaz was convicted in Alabama of attempted sexual abuse of a child less than 12 years of age. He received a sentenced of 120 months of incarceration, suspended after seven months, and two years of supervised probation. In July 2019, Diaz registered as a sex offender with the Alabama Law Enforcement Agency Sex Offender Registration Unit. Diaz acknowledged in writing that he was required to register as a sex offender in each jurisdiction where he resided.
In August 2019, Diaz traveled from Alabama to Connecticut and, from at least November 2019 to February 24, 2020, he resided and worked as a mechanic in Waterbury. Diaz failed to register as a sex offender with the Connecticut Sex Offender Registry, as required under SORNA.
In September 2019, a court in Coffee County issued an arrest warrant for Diaz for violating his probation. On February 24, 2020, the U.S. Marshals Service Fugitive Task Force located Diaz in Waterbury and arrested him on the outstanding Alabama warrant. He has been detained since his arrest.
Judge Meyer scheduled sentencing for November 30, 2020, at which time Diaz faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the United States Marshal Service. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
3 Florida men charged with stealing credit, tax refunds, COVID-19 stimulus checks in bank fraud conspiracy involving more than $1 million in lossesRead the Press Release
CINCINNATI – A federal grand jury has charged three Florida men in a financial fraud conspiracy that allegedly involved stealing identities in order to fraudulently obtain credit, tax refunds, and COVID-19 stimulus checks. Several of the victims of their alleged scheme resided in the Southern District of Ohio.
Adesh Alvin Bissoon, 41, of Miami Beach, Fla.; Michael Jacques Joseph, 37, of Miami Beach, Fla.; and Victor Torres, 38, of Apollo Beach, Fla.; are charged with defrauding at least 11 banks.
According to the indictment, from 2012 through August 2020, the co-conspirators used the Dark Web to obtain personally identifiable information (PII) on individuals, including victims who at the time lived in the Southern District of Ohio.
As part of the conspiracy, the three defendants allegedly used the IRS’s eAuthentication service to verify that the stolen PII was accurate and therefore useful in furtherance of the fraud. After verifying the PII, the defendants allegedly filed fraudulent tax returns in the names of some of the victims, causing those victims’ tax refunds and COVID-19 stimulus checks to be deposited into bank accounts controlled by the defendants.
It is also alleged that the defendants used the victims’ information to create fraudulent Social Security cards and driver’s licenses, which they then used to open financial accounts in the victims’ names. The conspirators allegedly profited from the scheme by requesting convenience checks in high dollar amounts from the fraudulently opened accounts. Bissoon, Joseph and Torres also registered LLCs with states and the IRS in order to obtain business credit cards with higher credit limits, according to the five-count indictment.
Bissoon was initially charged by criminal complaint and released on bond in the Florida. The government later moved to revoke Bissoon’s pretrial release, alleging he had committed new crimes. On Aug. 28, United States Magistrate Judge Karen L. Litkovitz revoked Bissoon’s pretrial release after finding probable cause to believe that Bissoon had attempted to steal another $150,000 from a bank while on release by falsely claiming to be the victim of unauthorized bank transfers.
To date, agents have identified more than $1 million in suspected criminal proceeds flowing through accounts associated with Bissoon alone.
Each of the three defendants has now been arrested and charged with conspiracy to commit bank fraud (up to 30 years in prison), two counts of mail fraud affecting a financial institution (up to 30 years in prison) and two counts of aggravated identity theft (additional two years in prison).
David M. DeVillers, United States Attorney for the Southern District of Ohio, and J. Russell George, the United States Treasury Inspector General for Tax Administration, announced the charges. Assistant United States Attorneys Julie D. Garcia and Ebunoluwa A. Taiwo are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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27 Members of International Cocaine Conspiracy That Trafficked HundredsRead the Press Release
PITTSBURGH, PA – Twenty-seven members of an international drug organization were indicted by a federal grand jury for trafficking significant quantities of cocaine from Mexico into the United States, United States Attorney Scott W. Brady announced today. "Operation Tripwire," a two-year investigation with international, federal, state and local partners, identified and dismantled the organization’s national network and operations from California and Arizona to Pittsburgh, Pennsylvania. This investigation and prosecution relied on critical partnerships and resources, made available by the Office of National Drug Control Policy’s designation of Allegheny County as a High Intensity Drug Trafficking Area (HIDTA) on September 24, 2018.
"We stand shoulder to shoulder with our state and local partners to fight Mexican cartels from operating in western Pennsylvania," said U.S. Attorney Brady. "This investigation dismantled a large-scale drug trafficking pipeline that brought major quantities of cocaine from Mexican cartels, into the United States through California and Arizona, and across the country to the streets of Pittsburgh. ‘Operation Tripwire’ began shortly after Allegheny County’s designation as a High Intensity Drug Trafficking Area, and represents the most significant HIDTA prosecution to date. The HIDTA designation of our largest counties enhances our ability to identify and dismantle international drug trafficking organizations which pose a serious, sustained threat to our communities."
"Today the DEA District Office in Pittsburgh, the United States Postal Service’s Office of Inspector General, and our other law enforcement counterparts dismantled an international cocaine drug trafficking organization that operated in Los Angeles, Tucson, and Mexico," said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. "This case is another example of how essential law enforcement collaboration is in combatting drug trafficking. The DEA is thankful for its partnerships across Western Pennsylvania."
"We won’t back down, communities need law enforcement to work together as we’ve done in Operation Tripwire," Attorney General Josh Shapiro said. "We work every day to stop those who bring dangerous drugs and guns into our neighborhoods. We are dedicated to working collaboratively to ensure the safety of communities across Pennsylvania."
"The function of the Postal Service is to deliver the nation’s mail, not transport illegal drugs into our community for drug traffickers. Special agents with the United States Postal Service Office of Inspector General, using advanced analytical tools, are always on the look-out for those who seek to abuse the mail system by sending drug parcels in the mail," said USPS OIG Special Agent in Charge Kenneth Cleevely of the Eastern Area Field Office. "Drug traffickers should be put on notice that when we identify a suspicious parcel, we will use all of our investigative resources to identify those responsible. We will work with our law enforcement partners to seize drug traffickers’ narcotics and money, and seek to put them in prison. To report drug traffickers abusing the mail, or to report other crimes involving postal employees, contact USPS OIG special agents at www.uspsoig.gov or 888-USPS-OIG."
The Indictment charges the following individuals with conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine, in the Western District of Pennsylvania and elsewhere, from in and around October 2018, and continuing until in and around June 2020:
- Jamaal Maragh (a/k/a “Alrick Williams” a/k/a “Frederick Vanlierop”), 38, of Turtle Creek, PA;
- Noel Perez Aguilar (a/k/a “Venado”), 48, of Los Angeles, CA;
- Juan Carlos Alejandres, 26, of Los Angeles, CA;
- Dino Aquiline, 61, of Pittsburgh, PA;
- Ramon S. Araiza-Vega, 27, of Rio Rico, AZ;
- Jose D. Delosrios Benitez (a/k/a “McQueen”), 30, of Inglewood, CA;
- Johnny Bravo, Jr., 32, of Los Angeles, CA;
- Lucien Burton, 50, of Los Angeles, CA;
- Keith L. Clark, 49, of Pittsburgh, PA;
- Antonio Egurrola-Gamboa (a/k/a “Chango”), 32, of Tucson, AZ;
- Roberto Egurrola-Vasquez (a/k/a “Gordito”), 32, of Tucson, AZ;
- Sherita James, 34, of McKees Rocks, PA;
- Howard E. Johnson III, 30, of Pittsburgh, PA;
- Alexis A. Perez Lopez, 44, of Los Angeles, CA;
- Clayton F. Manning, 43, of Los Angeles, CA;
- John W. Montgomery, 32, of Tarentum, PA;
- Manuel J. Murrietta, 52, of Nogales, AZ;
- Patricia Murrietta, 49, of Nogales, AZ;
- Rachel M. Novalesi, 37, of Rochester, PA;
- Justo Edgardo Parra Jr., 28, of Nogales, AZ;
- Robert E. Reed II, 60, of Verona, PA;
- Odean Samuels (a/k/a “Martin ONeil”, a/k/a “Smokey”), 32, of Canoga Park, CA;
- Manuel Silvestre, 49, of Los Angeles, CA;
- Kevin Thomas Jr., 33, of Pittsburgh, PA;
- Steven L. Trent Jr., 50, of Penn Hills, PA;
- Darrick Watkins, 50, of Los Angeles, CA; and
- Kressmore J. Watson, 33, of Los Angeles, CA.
The Indictment additionally charges Defendant Trent with possessing with intent to distribute 500 grams or more of cocaine, and with unlawfully possessing a firearm and ammunition as a convicted felon, in Western District of Pennsylvania, on or about March 4, 2020. Federal law prohibits a convicted felon from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than ten years to a maximum of life imprisonment, a fine of up to $10,000,000, or both, as to each charged Defendant. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (in Pittsburgh, PA) and the United States Postal Service – Office of Inspector General led the multi-agency investigation that included members of the Drug Enforcement Administration (in Los Angeles, CA; in Tucson, AZ; in New York, NY; in Nashville, TN; at the Special Operations Division; and in Mexico); the Pennsylvania Office of Attorney General; the Los Angeles Police Department; the Pittsburgh Bureau of Police; the Allegheny County Police Department; the New Castle Police Department; the Monessen Police Department; and the Pennsylvania State Police.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
3 September 2020
Zephyrhills Man Sentenced to 150 Years for Sexually Exploiting Multiple Young ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Edgar Johan Diaz-Colon (34, Zephyrhills) to 150 years in federal prison for sexually exploiting children. Diaz-Colon had pleaded guilty on April 22, 2020.
According to court documents and evidence presented at sentencing, in 2018 and 2019, Diaz-Colon sexually abused three young children. Two of the victims (who were then six and seven years old) lived near Diaz-Colon, and he lured them to the studio where he was staying. There, on multiple occasions, he repeatedly raped the children and forced them to perform sex acts on him. Diaz-Colon video-recorded some of those incidents. He also hit at least one of the children with a belt and taped her mouth shut when she cried for help. Diaz-Colon threatened to kill the child if she told her parents about his abuse.
The third victim was three years old when Diaz-Colon had abused her. In at least one instance, he video-recorded himself molesting the child.
This case was investigated by the Federal Bureau of Investigation, the Sanford Police Department, and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.justice.gov/psc.
Washington State Man Charged with Civil Disorder After Assaulting Portland Police OfficerRead the Press Release
PORTLAND, Ore.—Kristopher Michael Donnelly, 26, of Kelso, Washington, has been charged by criminal complaint with civil disorder after assaulting a local police officer and being arrested during East Portland riots on August 5 and 8, 2020.
According to court documents, at approximately 10:30pm on August 5, 2020, Donnelly was observed using a hammer to destroy a window at the police bureau’s East Precinct on Southeast 106th Avenue in Portland. Donnelly was spotted by police throwing hard objects capable of causing injury, refusing to disperse, and blocking traffic. When a Portland officer attempted to arrest Donnelly, he forcefully struck the officer in the face with his elbow. He continued to resist arrest, requiring several more officers to assist. Donnelly was eventually arrested by Portland Police for riot, second degree disorderly conduct, interfering with a public safety officer, assaulting a public safety officer, vandalism, and resisting arrest.
On August 8, 2020, Donnelly was again arrested by Portland Police during a declared riot outside the Penumbra Kelly Building, a police facility on East Burnside Street in Portland, for interfering with a public safety officer, riot, and second degree disorderly conduct. Donnelly was observed by law enforcement blocking the street and throwing hard objects. Donnelly attempted to flee from officers and resisted arrest before successfully being taken into custody.
On August 30, 2020, Donnelly was arrested a third time for riot-related offenses. He was transferred to federal authorities on September 2, 2020 for his first appearance in federal court. If convicted in federal court, Donnelly 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.
Ville Platte Man Sentenced to Federal Prison for Federal Drug ChargesRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Rondrekus Soileau a/k/a “Drake,” aka “D,” 28, of Ville Platte, Louisiana, was sentenced today. United States District Judge Michael J. Juneau sentenced Soileau to 74 months (6 years, 2 months) in prison followed by 4 years of supervised release for conspiracy to distribute and possession with intent to distribute a controlled substance. Soileau pleaded guilty on December 12, 2019.
According to information presented to the court, between January and April of 2019, Rondrekus Soileau purchased methamphetamine from a co-defendant approximately every other week. Soileau arranged purchases of methamphetamine using his cell phone and the transactions involved quantities of one-half ounce of methamphetamine. After purchasing the methamphetamine, Soileau sold some of it for profit and kept some of it for his own personal use.
This prosecution is part of a larger investigation conducted by the DEA through its Southwest Louisiana HIDTA Task Force and Organized Crime and Drug Enforcement Task Forces. The Louisiana State Police Narcotics Division initiated the investigation, and Special Agents with DEA, as well as Task Force Officers assigned to the Southwest Louisiana HIDTA Task Force, completed the investigation. In addition to the above conviction and sentence, the investigation resulted in the dismantling of a drug trafficking organization in Ville Platte, Louisiana. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
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Ventura County Man Arrested on Federal Indictment for Alleged Attempted Enticement of Minors to Produce Child PornographyRead the Press Release
LOS ANGELES – A Ventura County man was arrested today by FBI special agents on a five-count federal grand jury indictment charging him with using the Skype internet messenger service to pay facilitators overseas to live-stream the sexual and physical abuse of female minors.
William Hayes, 57, of Newbury Park, whose online aliases include “ko hong,” “hokong69,” and “brianwilson2461,” is charged with one count of attempted production of child pornography, two counts of attempted enticement of a minor to engage in criminal sexual activity, and two counts of possession of child pornography.
Hayes is expected to make his initial appearance in United States District Court this afternoon.
According to the indictment, from April 2017 to August 2019, Hayes used Skype to attempt to entice underage girls to engage in illicit sexual activity that would be live-streamed on the internet for him to watch. Hayes allegedly offered to pay money after the acts were live-streamed. In other messages, he offered to pay to have acts of torture and cruelty inflicted on the minors, the indictment alleges.
Hayes also allegedly possessed images child pornography – depicting prepubescent minors – on his personal computer and a hard drive.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Hayes would face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 15 years.
The FBI investigated this case. Anyone with information concerning this matter is encouraged to contact the FBI’s Los Angeles field office at (310) 477-6565.
This matter is being prosecuted by Assistant United States Attorneys Jeffrey M. Chemerinsky and Kevin J. Butler of the Violent and Organized Crime Section.
Vallejo Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
SACRAMENTO, Calif. — Joshua Wayne Thompson, 25, of Vallejo, pleadedd guilty today to being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Nov. 18, 2019, law enforcement arrested Thompson on multiple felony warrants. Before the arrest, law enforcement witnessed Thompson exit a home in Vallejo and approached him. Thompson ran toward and entered the driver’s side door of a Ford Fusion. While attempting to flee, Thompson rammed the Ford into a Deputy U.S. Marshal’s vehicle. Law enforcement converged on the Ford, removed Thompson, and placed him under arrest. At the time of the arrest, Thompson possessed a loaded pistol with a 25-round extended magazine. Thompson cannot possess a firearm or ammunition because he previously was convicted of a felony offense.
This case is a product of an investigation by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the California Highway Patrol. Assistant United States Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Morrison C. England, Jr., is scheduled to sentence Thompson on December 3, 2020. Thompson faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case also is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information, please see https://www.justice.gov.
Urgent Care Provider Convicted of Health Care Fraud and Ordered to Pay $12.5 MillionRead the Press Release
PHOENIX, Ariz. – Last week, UCXtra Umbrella, LLC, was sentenced by U.S. District Judge Michael T. Liburdi and ordered to pay $12,500,000 in restitution. UCXtra Umbrella, LLC, had previously pleaded guilty to health care fraud and engaging in monetary transactions derived from unlawful activity.
UCXtra Umbrella, LLC, which did business in Arizona under the name “Urgent Care Extra,” owned and operated a network of more than 30 urgent care centers, primarily in the Phoenix and Tucson areas. From 2012 through 2016, more than one million patient visits occurred at UCXtra clinics in Arizona.
As part of its guilty plea, UCXtra admitted that it intentionally created patient care practices and billing procedures that caused its providers and staff to overstate the complexity of the medical services provided to patients and claim falsely inflated reimbursement rates from health insurance companies. UCXtra also admitted that it encouraged providers and staff to order tests and procedures that may not have been medically necessary to justify higher billing codes and obtain higher reimbursement rates. The estimated loss to health insurance companies caused by UCXtra’s health care fraud scheme is $12,500,000.
“Greed-driven schemes like this one drive up health care costs and hurt all Americans,” said United States Attorney Michael Bailey. “This excellent investigation by the FBI and IRS will send a clear message to health care providers that fraudulent billing will be held to account.”
The Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation conducted the investigation. Assistant United States Attorneys Peter Sexton and Bridget Minder handled the prosecution.
Update on Twin Cities Violent Crime Task ForceRead the Press Release
On July 8, 2020, United States Attorney Erica H. MacDonald announced the formation of a new Twin Cities Violent Crime Task Force (Task Force) in response to an extraordinary spike in gun violence and violent crime across the Twin Cities. The Task Force brought together Minnesota-based federal, state and local law enforcement resources to investigate, arrest, and prosecute individuals responsible for gun violence in our communities. Over the last 60 days, as a result of the efforts of the Task Force and its partner agencies, more than 156 illegal firearms have been taken off the streets and at least 22 individuals have been charged with federal firearms violations and related federal crimes such as robbery and carjacking. In addition, at least 19 individuals have been charged in state court. Operating out of a centralized command center, hosted first by FBI and then by the Hennepin County Sheriff’s Office, Task Force members have participated in daily briefings, shared information in real-time, and leveraged immediate access to data and intelligence analysis. Moving forward into the fall and winter, the collaborative efforts and interagency resources brought to bear by federal, state, and local partners will continue through a virtual platform. U.S. Attorney MacDonald remains steadfast in her commitment to make our streets safe by stemming the tide of gun violence.
The public may report tips by calling 1-800-CALLFBI (800-225-5324) or submit pictures and/or videos at www.fbi.gov/violence.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney’s Office Provides Update on Operation Legend in ChicagoRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced an update on Operation Legend in Chicago.
Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of the initiative, the Department of Justice allocated additional investigators and resources to the FBI, DEA, ATF, and U.S. Marshals Service. The Department of Homeland Security’s Homeland Security Investigations also committed additional agents.
Since the operation’s launch in Chicago on July 22, 2020, through Aug. 31, 2020, 103 defendants have been charged with federal felony offenses relating to violent crime affecting the city of Chicago. Most defendants have been charged in the Northern District of Illinois, including more than 60 defendants facing a lead firearms-related charge, and more than 25 defendants facing a lead drug trafficking charge. In addition to the charges filed in the Northern District of Illinois, several cases involving false statements in the acquisition of a firearm have been filed in the Northern District of Indiana. Those cases were investigated with the assistance of the influx of ATF agents under Operation Legend, and some of the guns were later discovered in the Chicago area.
“The mission of Operation Legend is clear: reduce violent crime and save lives,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Enforcing the rule of law and holding offenders accountable for the crimes they commit are essential components of every reasonable strategy to ensure public safety in Chicago.”
“My Office is committed to focusing investigative and prosecutorial efforts on reducing gun violence in Northern Indiana,” said Thomas L. Kirsch II, United States Attorney for the Northern District of Indiana. “Our coordinated effort with the Northern District of Illinois proves that state borders do not save criminals from aggressive prosecution. We are working hard across the Districts to rid our streets of violent crime. Today with the announcement of more arrests from Operation Legend, we emphasize that we are working together to focus our resources on reducing violent crime and violence due to illegal firearms on both sides of the state line.”
Recent federal cases filed in Chicago with the assistance of Operation Legend include:
- A man was charged with a firearm offense for allegedly “straw purchasing” multiple guns in Indiana on behalf of a convicted felon in Chicago.
- A man was arrested on a federal robbery charge for allegedly robbing a United Parcel Service delivery truck last month. The driver was ordered to lay face down in the street while the man and two accomplices allegedly stole several boxes from the UPS truck.
- A man was indicted on carjacking charges for allegedly stealing a vehicle from two women at gunpoint in Chicago. The man allegedly discharged a handgun during the carjacking, which led to an additional firearm charge that is punishable by a maximum sentence of life in federal prison.
- A convicted felon with a history of firearm convictions was charged with a federal firearm offense after HSI agents and CPD officers executing an arrest warrant discovered two handguns and 70 rounds of ammunition in his Volvo convertible.
Several of the cases involving felons in illegal possession of firearms were charged directly in federal court after ATF agents worked side-by-side with the Chicago Police Department in neighborhoods of the city that have suffered through the highest number of shootings and homicides. In other firearm investigations, the U.S. Attorney’s Office has worked with the Cook County State’s Attorney’s Office to determine the best forum in which to bring a prosecution.
During Operation Legend, the U.S. Attorney’s Office and its federal partners have also worked closely with the Cook County Sheriff’s Office and Illinois State Police.
Operation Legend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept on June 29, 2020, in Kansas City, Mo. A 22-year-old Kansas City man has been charged with LeGend’s murder. The arrest was the product of a coordinated effort by the Kansas City Police Department, FBI, and U.S. Marshals Service.
Operation Legend began in Kansas City on July 8, 2020. In addition to Chicago, it has expanded to Albuquerque, Cleveland, Detroit, Milwaukee, St. Louis, Memphis, and Indianapolis. In all of the operation’s cities thus far, there have been more than 2,000 state, local, and federal arrests. Of the individuals arrested, 476 have been charged in federal courts, including 249 with firearms offenses and 185 with drug-related offenses. In addition, law enforcement has seized 544 firearms, more than seven kilograms of fentanyl, 14 kilograms of heroin, 12 kilograms of cocaine, and 50 kilograms of methamphetamine.
U.S. Attorney Justin Herdman announces update on Operation Legend in the city of ClevelandRead the Press Release
On July 8, 2020, Attorney General William P. Barr announced 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, MO., 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 kilos of fentanyl, 14 kilos of heroin, 12 kilos of cocaine, and 50 kilos of methamphetamine have been seized.
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.
“Operation Legend has had a strong start in the city of Cleveland and we hope to build upon this early success,” said U.S. Attorney Justin Herdman. “This initiative has already seen more than 50 defendants charged with federal crimes and has removed numerous firearms and drugs off our streets. This success is due to the strong partnership that we have here in Cleveland between city, state and federal law enforcement.”
The breakdown of federal charges in Cleveland is below.
Cleveland, Ohio
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.
To view Operation Legend results in other cities, click here.
U.S. Attorney Justin Herdman and city of Youngstown announce Operation Red-Zone ahead of Labor Day weekendRead the Press Release
U.S. Attorney Justin Herdman, Youngstown Mayor Jamael Tito Brown and Police Chief Robin Lees announced today the launch of Operation Red-Zone in the city of Youngstown over the Labor Day holiday weekend. Joining the U.S. Attorney, Youngstown Mayor and Police Chief today were representatives from the ATF, DEA, FBI, U.S. Marshals, Mahoning County Prosecutor, Mahoning County Sherriff and the Ohio State Highway Patrol.
“We are here today ahead of the Labor Day holiday weekend to announce the launch of Operation Red-Zone in the city of Youngstown,” said U.S. Attorney Herdman. “What this means is that if you are prohibited from possessing a firearm under federal law, either because you have a prior felony conviction, a prior misdemeanor conviction, or some other disqualifying condition, then you are in the Red-Zone. If you possess a firearm this weekend while in the Red-Zone, we are going to stop you and prosecute you in federal court.”
“These type of partnerships are beneficial to the city of Youngstown and its residents,” said Police Chief Robin Lees. “The city’s 19 homicides this year are just one shy from last year’s total. This is just one of many reasons why we need to target repeat gun offenders, put them behind bars, and make sure they stay there.”
“ATF is here with our law enforcement partners to encourage everyone to take a step back from the violence and enjoy a peaceful Labor Day weekend,” stated Roland Herndon, ATF’s Special Agent in Charge for the Columbus Field Division. “But be aware, if you choose to use firearms to commit crimes, ATF and our law enforcement partners will be there, working to hold you accountable for those acts.”
During the press conference, U.S. Attorney Herdman announced that the Northern District will pursue federal charges, where applicable, against individuals who are prohibited under federal law from possessing firearms, or who otherwise use firearms in a violent crime or drug trafficking offense. In addition, the U.S. Attorney announced that law enforcement agents with ATF, DEA, FBI and U.S. Marshals will be out in full force over the holiday weekend.
“The people of the city of Youngstown deserve peace and days and nights free from anxiety and fears caused by violent criminals, said U.S. Attorney Herdman. "We will stop at nothing to ensure that people who are causing this violence are put in federal prison.”
U.S. Attorney Grant C. Jaquith Steps DownRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith announced his resignation upon his appointment as a Judge on the United States Court of Appeals for Veterans Claims after serving 31 years with the Department of Justice.
Jaquith stated, “It has been an honor and privilege to serve my country for 31 years in the U.S. Attorney’s Office for the Northern District of New York, striving to secure equal justice for all in criminal and civil cases. My years as a line prosecutor, supervisor, and U.S. Attorney have been full of meaning thanks to the agents, support staff, attorneys, supervisors, and judges I have had the good fortune to work with and learn from.”
“Grant Jaquith is the epitome of a selfless public servant who has dedicated his career to the Department of Justice,” said Attorney General William P. Barr. “He is a diligent and capable leader who has worked tirelessly to promote the rule of law. Law enforcement at all levels knew that they could count on him as a true partner, as did the communities in his district. His work has made the Northern District of New York a better and safer place.”
Mr. Jaquith took office as the 49th United States Attorney for the Northern District of New York on January 5, 2018. He had previously served as Acting United States Attorney, First Assistant United States Attorney (2010-2017), Chief of the Criminal Division (2006-2010), and Narcotics Chief and Chief of the Albany Office (1998-2006). During his tenure as United States Attorney, he served on three subcommittees of the Attorney General’s Advisory Committee – Border and Immigration, Native American Issues, and Servicemembers and Veterans Rights (as Vice-Chair and then Chair) – and the Attorney General’s Advisory Committee’s Healthcare Fraud Working Group.
In 2016, Mr. Jaquith received the Executive Office for U.S. Attorneys Director’s Award for Executive Achievement.
As United States Attorney, Jaquith emphasized several key areas. National security was his highest priority, and his office obtained convictions against foreign nationals Mojtahedzadeh, Tepper, and Biria, who worked together to unlawfully export gas turbine parts from the United States to Iran. His office also focused on economic espionage, obtaining a guilty plea to stealing GE trade secrets in Sui, and in Zheng and Zhang, Chinese foreign nationals will be tried on an indictment charging them with economic espionage and conspiring to steal trade secrets knowing and intending that those stolen trade secrets would be used to benefit the People’s Republic of China.
A related priority was border security, and Jaquith served on the Attorney General Advisory Committee’s Border and Immigration subcommittee. He also organized and led regular meetings of the U.S.-Canada Border Operations Leadership Team, which was created in 2015 to discuss cross-border law enforcement and prosecution issues.
He emphasized aggressive narcotics and gang prosecutions, with guilty pleas against international drug trafficking and money laundering organizations such as Haviaropoulos; a RICO case against the 110 Gang in Syracuse; methamphetamine cases throughout the district including Harris in Binghamton; and cutting-edge prosecutions of controlled substance analogues, Requena.
He aggressively addressed the opioid crisis through prosecution, education, and treatment. His office attacked the sources of supply in cases like Touchstone; held medical professionals responsible for illegal distributions, Mabry and Brown; and held dealers responsible when their poison killed, such as Boice, Burnell, Charo, Ebel, and Fillerup. He also participated in community meetings educating teens and their parents about the dangers of opioid and synthetic drug abuse. His office has presented 45 of those community events reaching more than 6,000 people.
In combatting financial fraud, U.S. Attorney Jaquith’s office prosecuted multi-million dollar fraudsters including Mann, which involved more than $100 million of loss related to MyPayrollHR.com; LaVigne ($10 million); Backis ($3.1 million), and Jergensen and Ghosh ($2.5 million).
U.S. Attorney Jaquith also emphasized justice for victims of violent crime. He was personally participating in the prosecution of a death penalty case against a man who is charged with the brutal murder of co-workers, Wood, and his office is prosecuting drug dealers for a cold-blooded murder, Leeper. His office obtained convictions and lengthy sentences against a college student who used a straw purchaser to buy a gun used to murder his father, Tan, and a man who caused severe injuries and burns with a bomb, Seppi. He also emphasized child exploitation cases, and his office obtained lengthy sentences for child predators in LaPorte, Decker, and Stroming. His office also prosecuted sextortion cases including Robinson.
U.S. Attorney Jaquith thanked his staff for their impressive work and emphasized what an honor it has been to work with attorneys and support staff who “demonstrate the highest ideals of public service every day through their unwavering, tireless, and humble commitment to the pursuit of justice.”
Jaquith also focused on Native American issues by serving on the AGAC’s Native American Issues Subcommittee and regularly consulting with the Oneida, Mohawk, Onondaga, and Cayuga nation leadership in the Northern District. His tribal liaison worked closely with tribal police agencies to address public safety needs in Indian Country. He said, “I very much respect the Native American tribes and their leadership in our district, and have been honored to work with them. Our efforts to maintain healthy relationships must never waver.”
Mr. Jaquith also emphasized civil work. The office’s Affirmative Civil Enforcement attorneys continued to obtain significant results including Northland Associates, Inc., Alutiiq Diversified Services LLC, and Mallinckrodt. He appointed a Civil Rights Coordinator who obtained a $450,000 settlement to resolve a complaint alleging that a landlord subjected former and potential tenants to sexual harassment, Waterbury. The office’s civil defensive AUSAs also did outstanding work defending the United States against claims.
Jaquith understood the value of crime prevention and community outreach. He led the office’s LEADership Project, a youth violence reduction program designed to help 5th grade students avoid the lure of gangs, drugs, violence, and vandalism; assigned attorneys to work in Reentry Courts; and participated in community events whenever he was invited. He was particularly proud of his work with the Albany Law Enforcement Resolution Team.
During his career, Mr. Jaquith personally prosecuted many significant cases. In United States v. Leon, Duell, Ramsey, and Fish, he obtained perjury convictions for lies witnesses told during an arson homicide investigation where a father and his three young children were killed and another child was seriously maimed. In United States v. Endo Pharmaceuticals, Inc., a pharmaceutical company paid $192.7 million to resolve criminal and civil liability arising from the marketing of a prescription drug not approved as safe and effective by the Food and Drug Administration. The resolution included a deferred prosecution agreement with significant corporate compliance provisions and a monetary penalty and forfeiture totaling $20.8 million in the Northern District of New York. In United States v. Holland and Kornak, he convicted both a research coordinator at the Stratton VA Medical Center in Albany for fraud causing a patient’s death in a cancer study and the chief of oncology who failed to ensure that accurate patient records were maintained. In United States v. Davidson, Parke, Lawrence, Morales, and Stewart, the defendants were convicted of murdering undercover drug task force officer Wallie Howard, Jr. at mid-day in a grocery store parking lot in downtown Syracuse as he attempted to purchase two kilograms of cocaine. Mr. Jaquith prosecuted several other drug trafficking organizations to trial convictions and significant sentences, including United States v. Murgas, et al, where 3 of the 12 defendants convicted were held accountable for the murders of a customer of the ring and his girlfriend; United States v. Blythe, et al, involving a conspiracy to import at least 100 kilograms of cocaine and 2,000 pounds of marijuana; and United States v. Carnell Donaldson, who led a continuing criminal enterprise comprised of 12 co-defendants that distributed about 4 kilograms of cocaine in Syracuse every 6 weeks. He also prosecuted criminal enterprises distributing kilograms of crack and cocaine led by Tyrone Hines (14 defendants) and Vyron Hargrett (15 defendants). In United States v. Walter J. Butler, the president of Service Employees International Union 200 was convicted at trial of racketeering, embezzlement, and fraud.
Mr. Jaquith served in the U.S. Army Judge Advocate General’s Corps from 1982-2011, rising to the rank of Colonel in 2004. His military awards include the Legion of Merit. Mr. Jaquith was an Army circuit judge from 2001-2010, presiding over courts-martial at forts throughout the continental United States and in Alaska, Germany, and Korea. In 2006, Mr. Jaquith spent three months on active duty as the trial judge at Fort Bragg, North Carolina.
Before joining the U.S. Attorney’s Office, Mr. Jaquith was in the litigation department of the law firm of Bond Schoeneck & King in Syracuse (1988-89) and a Judge Advocate on active duty in the U.S. Army (1982-88), where his work included administrative law, labor law, settlement of civil claims, legal assistance to soldiers, retirees, and their families, and criminal prosecutions. In 1984, he also taught Juvenile Law and Federal Income Taxation at Drury College. In 1982, he interned at the Public Defender’s Office in Gainesville, Florida.
Mr. Jaquith received his Juris Doctor from the University of Florida College of Law in 1982 and a Bachelor of Science (cum laude) in business administration/accounting from Presbyterian College, Clinton, South Carolina, in 1979, from which he was a Distinguished Military Graduate.
The Northern District of New York covers 32 counties in Northern and Central New York, covering an area of more than 30,000 square miles. The District includes 310 miles of the U.S. border with Canada and the Cayuga, Mohawk, Oneida and Onondaga Nations. The United States Attorney’s Office, with staffed offices in Albany, Binghamton, Plattsburgh, and Syracuse, has 50 attorneys and is responsible for conducting all criminal and civil litigation in the district involving the United States government.
U.S. Army major convicted on federal charge of producing child pornographyRead the Press Release
AUGUSTA, GA: A U.S. Army major assigned to the U.S. Army Cyber Command at Fort Gordon, Ga., has admitted to producing child pornography.
Jason Michael Musgrove, 40, of Grovetown, pled guilty in U.S. District Court to an Information charging him with Production of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a possible penalty of up to 30 years in prison along with substantial fines and restitution to victims in the case, followed by a period of supervised release.
There is no parole in the federal system.
At the time of his December 2019 arrest, Musgrove was an Integrated Threat Operations Officer with Top Secret/Sensitive Compartmentalized Information clearance, assigned to the Army Cyber Joint Headquarters at Fort Gordon.
According to court testimony and documents, Musgrove admitted using a hidden camera to film juvenile victims in a bathroom of his residence.
“We’re grateful to our FBI partners for their work in identifying and removing this threat to children. Their diligent and fast action in this case is inspiring,” said U.S. Attorney Christine. “There is no place in the Southern District where such a despicable predator will be allowed to hide from justice.”
“The production of child pornography is one of the most horrendous crimes we deal with in our society. It is even more concerning when the crime is allegedly committed by a member of our armed forces who is sworn to protect the United States,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “The FBI is committed to protecting our children and working with our law enforcement partners to identify and apprehend predators who carry out these appalling crimes.”
The investigation is being conducted by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Two Missouri Men Charged with Firearms OffensesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that Michael M. Karmo (40) and Cody E. Smith (33) of Missouri have been charged by criminal complaint with illegal possession of firearms after being arrested on September 1, 2020, at a hotel in Pleasant Prairie, Wisconsin.
As alleged in the criminal complaint, on September 1, 2020, the Kenosha Police Department advised FBI that a law enforcement agency in Iowa had received a tip that Karmo and an unidentified male were in possession of firearms and traveling from Missouri to Kenosha, Wisconsin. FBI agents subsequently located and detained Karmo and Smith at a hotel in Pleasant Prairie, which is located near Kenosha. After receiving consent to search Karmo and Smith’s vehicle and hotel room, FBI agents recovered an Armory AR-15 assault rifle, a Mossberg 500 AB 12-Gauge shotgun, two handguns, a silencer, ammunition, body armor, a drone, and other materials. Karmo has prior felony convictions. Smith has a prior misdemeanor domestic battery conviction and acknowledged regular drug use. Consequently, both Karmo and Smith were prohibited from possessing firearms and ammunition on September 1, 2020.
The criminal complaint charges Karmo with violating 18 U.S.C. § 922(g)(1) (Felon in Possession of a Firearm). The criminal complaint charges Smith with violating 18 U.S.C. §§ 922(g)(1) and 2 (Aiding and Abetting a Felon’s Possession of Firearms); 18 U.S.C. § 922(g)(9) (Possession of Firearms and Ammunition by a Prohibited Person – Misdemeanor Domestic Violence); and 18 U.S.C. § 922(g)(3) (Possession of Firearms and Ammunition by a Prohibited Person – Unlawful User of a Controlled Substance). Each of these offenses carries a maximum penalty of 10 years in prison, a maximum fine of $250,000, and up to three years of supervision after release from prison.
This case was investigated by the FBI, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Kenosha Police Department, the Village of Pleasant Prairie Police Department, the Kenosha County Sheriff’s Office, the Kenosha County District Attorney’s Office, and local law enforcement in the state of Iowa. It will be prosecuted by Assistant United States Attorneys Richard G. Frohling and Margaret B. Honrath.
A complaint is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove the defendant’s guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Trenton Man Sentenced to 160 Months in Prison for Participating in Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 160 months in prison for his role in a large drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced.
Omar Council, a/k/a “Stacks,” a/k/a “O,” a/k/a “Y-O,” a/k/a “Snow,” 41, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Judge Wolfson imposed the sentence today.
According to documents filed in this case and statements made in court:
In October 2018, Council and 25 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. On Aug. 8, 2019, a grand jury returned a 15-count second superseding indictment charging Council and eight other defendants, Jerome Roberts, a/k/a “Righteous,” a/k/a “Lee”; David Antonio, a/k/a “Papi,” a/k/a “Pop,” a/k/a “Victor Arias,” a/k/a “Santiago Ramirez”; Brian Phelps, a/k/a “B-Money,” a/k/a “B”; Timothy Wimbush, a/k/a “Young Money”; Taquan Williams, a/k/a “Trip”; Jubri West; Dennis Cheston, Jr., a/k/a “Beans”; and Wayne K. Bush with various crimes relating to the drug-trafficking conspiracy, including firearms charges against Phelps, Wimbush, Williams, West, and Cheston. To date, 23 defendants have pleaded guilty in connection with their participation in the conspiracy.
From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders – including over a cellular telephone used by Council – controlled purchases of heroin from Council and others, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Council was a significant drug distributor in and around Trenton. Council maintained close relationships with other conspirators, including Jakir Taylor, who obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.” Council obtained supplies of heroin directly from Taylor and others (including supplies of heroin originating from Antonio), and regularly re-distributed that heroin to others in and around Trenton.
In addition to the prison term, Judge Wolfson sentenced Council to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch, Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s conviction and sentence. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case.
The government is represented by J. Brendan Day, Attorney-in-Charge of the U.S. Attorney’s Office’s Trenton Branch Office, and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. 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.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Tioga County Man Charged with Attempted Enticement of a ChildRead the Press Release
BINGHAMTON, NEW YORK – Jacob Gorman, age 39, of Waverly, New York, was arrested and charged with attempting to entice a child. Following his initial appearance in court on Friday, a detention hearing was held today and United States Magistrate Judge Miroslav Lovric ordered that Gorman be detained pending trial.
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 criminal complaint alleges that between August 11, 2020 and August 27, 2020, Gorman exchanged text messages with an undercover FBI agent who was posing as the mother of a 9-year-old girl. In those messages, Gorman expressed an interest in meeting the child and engaging in sex acts with her. Gorman negotiated a price he was willing to pay to engage in sex acts with the child and on August 27, 2020, drove to a pre-determined location in Broome County to meet and have sex with the child. Gorman was then encountered by law enforcement and arrested. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, the defendant faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, a maximum fine of $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Gorman would also be required to register as a sex offender.
Anyone who wants to provide law enforcement with information about the defendant should contact the FBI Binghamton office at (607) 778-7240.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.
Three Peruvian Men Sentenced to Significant Terms of Incarceration for Overseeing Call Centers That Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
Three Peruvian men have been sentenced to significant terms of incarceration for operating a large fraud and extortion scheme, the Department of Justice announced.
The three men managed and operated call centers based in Lima and Cajamarca, Peru, which used government impersonation, lies, and threats to steal money from thousands of Spanish-speaking victims in the United States.
Earlier today, U.S. District Judge Robert N. Scola sentenced Johnny Enso Hidalgo Marchan, 40, of Lima, Peru, to 100 months in federal prison for his role overseeing one of the Peruvian call centers. In sentencing Hidalgo, Judge Scola stated that it was “important to impose a significant sentence to deter people in other countries who think they can prey on people in the U.S. with impunity.” In June 2020, Judge Scola sentenced Francesco Guerra, 25, of Lima, Peru, to 90 months in federal prison, and, in March 2020, he sentenced Rodolfo Hermoza, 45, to 88 months in prison for their roles in the scheme. The three men were extradited from Peru in December 2019 and convicted of conspiring to commit mail fraud and wire fraud earlier this year.
“We are committed to pursuing transnational criminals who defraud U.S. consumers,” said Acting Assistant Attorney General Ethan P. Davis of the Justice Department’s Civil Division. “Disrupting transnational elder fraud schemes is an Agency Priority Goal for the Department of Justice. These prison sentences show that criminals responsible for threatening and defrauding U.S. consumers will be held to account.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Fajardo Orshan of the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this Office and the Department of Justice.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and go after those who deprive citizens of their hard earned money through the use of threats and other abusive tactics. The results of this investigation are an example of this determination and the dedicated partnership established with the Department of Justice’s Consumer Protection Branch,” said Inspector in Charge Antonio Gomez.
As part of their guilty pleas, Hidalgo, Hermoza, and Guerra admitted that they falsely posed as attorneys affiliated with U.S. courts and government agencies in threatening victims with fines, detention, confiscation of property, deportation, and community-service requirements to obtain payments from the victims. U.S. consumers lost more than $1.5 million to the defendants’ fraud scheme.
In addition to prison time, each defendant was also ordered to serve three years’ supervised release following their terms of incarceration and to make restitution payments to victims of their scheme.
Hidalgo, Hermoza, and Guerra managed and operated Peruvian call centers that, in partnership with an entity in Miami, Florida, used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers often falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims—many of whom were elderly—had never ordered or received the products.
The defendants and other call center employees claimed that the consumers could resolve the supposed debts and avoid threatened consequences if they immediately paid a “settlement fee.” Consumers who contested the settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
At Guerra’s June 2 sentencing, Judge Scola described the defendants’ crimes as a “very serious offense” and noted that they preyed on many vulnerable victims and caused lasting psychological and emotional damage to the victims of their scheme. Judge Scola stated that a significant sentence was necessary to promote respect for the law and to deter others from engaging in similar conduct.
In addition to Hidalgo, Hermoza, and Guerra, two other individuals previously were brought to justice in connection with this scheme. In 2014, charges were brought against Angeluz and Maria Luzula of Miami and Juan Alejandro Rodriguez Cuya of Lima, Peru. Luzula pleaded guilty to all counts against her midway through trial and was sentenced to 165 months in prison. Rodriguez Cuya was convicted following a two-week trial. U.S. District Court Judge Patricia A. Seitz sentenced Rodriguez Cuya to 210 months in prison. With today’s sentencing by Judge Scola, all five defendants who have been charged in connection with this large-scale fraud and extortion scheme have now been sentenced to substantial terms of imprisonment.
The case was prosecuted by Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice Civil Division’s Consumer Protection Branch. U.S. Postal Inspection Service’s Miami Division investigated the case. The Justice Department’s Office of International Affairs of the department’s Criminal Division, the U.S. Attorney’s Office of the Southern District of Florida, the Department of State Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.
Supervisor at Long Island Drug Manufacturer Indicted for Theft of over a Million Dollars Worth of Medical ProductsRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Gregory Settino with theft of medical products and making a false statement to a federal agent. Settino was arrested today and arraigned this afternoon via teleconference before United States Magistrate Judge Arlene R. Lindsay. Settino was released on a $250,000 bond.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Jeffrey Ebersole, Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations, New York Field Office (FDA-OCI), announced the arrest and charges.
“As alleged, Settino abused his supervisory position at a pharmaceuticals company to steal large quantities of equine drugs in order to enrich himself and without regard for how his sale of the medical products could potentially endanger the health of horses,” stated Acting United States Attorney DuCharme. “The defendant then allegedly compounded his criminal conduct by lying to an FDA Special Agent to minimize the scope of his thefts. Thanks to the combined efforts of the U.S. Attorney’s Office and the FDA, this illicit pipeline of stolen drugs to vets and horse trainers has been shut down.”
“The safety and effectiveness of veterinary drugs play a key role in maintaining the health of animals. When these drugs leave the legitimate supply chain, they can lose their effectiveness or become unsafe,” stated FDA-OCI Special Agent-in-Charge Ebersole. “We will continue to investigate and bring to justice those who endanger the health of animals.”
As set forth in court filings, Settino was the production supervisor of manufacturing at Luitpold Pharmaceuticals, Inc. in Shirley, New York. In January 2019, Luitpold was renamed American Regent. One of the products manufactured at Luitpold and American Regent was Adequan, an injectable equine drug administered to horses with degenerative joint disease and sold throughout the United States. Between 2012 and January 2020, Settino allegedly stole thousands of bottles of Adequan from Luitpold and American Regent valued at over $1 million, and sold those drugs to horse trainers and veterinarians at New York racetracks, including Belmont Park, for more than $600,000. Settino’s conduct endangered the health of horses because the drugs were not maintained, stored or transported in accordance with proper procedures for ensuring the safety, effectiveness and efficacy of the drugs. At times, Settino transported the drugs in shoeboxes stored in his car. At all times, the drugs were handled in violation of the FDA regulated supply chain.
On January 23, 2020, Settino was interviewed by an FDA Special Agent and allegedly falsely stated that he had stolen fewer than 100 bottles of Adequan from Luitpold and American Regent.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Settino faces up to 25 years in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution.
The Defendant:
GREGORY SETTINO
Age: 58
Bethpage, New YorkE.D.N.Y. Docket No. 20-CR-340 (JS)
Springfield Man Sentenced to 17 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for receiving and distributing child pornography.
Marco Barraza, 28, was sentenced by U.S. District Judge Roseann Ketchmark to 17 years and six months in federal prison without parole. The court also sentenced Barraza to 20 years of supervised release following incarceration and ordered him to pay $39,000 in restitution to his victims. Barraza 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 Oct. 29, 2019, Barraza was found guilty at trial of one count of receiving and distributing child pornography.
Law enforcement investigators received two reports from the National Center for Missing and Exploited Children that Barraza had transmitted images of child pornography through chat sessions on his Tumblr account in September 2016. Officers executed a search warrant at Barraza’s residence on March 16, 2017, and seized numerous computer-related property, including three cell phones and two hard drives that had been removed from laptop computers. Those devices contained approximately 600 images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, and the Barry County, Mo., Sheriff’s Department.
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."Seven Defendants Arrested and Charged in Conspiracy to Possess and Carry Firearms in Furtherance of Drug TraffickingRead the Press Release
WASHINGTON – Seven men have been indicted on federal narcotics and firearms charges as part of an ongoing investigation into drug and firearms trafficking in Southeast Washington, D.C.
The charges were announced by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Those indicted by the federal grand jury include: Terrance Phillips, 35, of Washington, D.C., Niko Culbreth, 28, of Washington, D.C.; Xavier Matthews, 20, of Washington, D.C.; Naseem Roach, 20, of Washington, D.C.; Victor Davis, 20, of Washington, D.C.; Trenton Robinson, 24, of District Heights, Maryland; Steven Phillips, Jr., 26, of Washington, D.C.
According to the indictment, the defendants were engaged in the distribution of marijuana, oxycodone, and codeine. Their drug distribution was centered on 10th Place Southeast and Wheeler Road Southeast, both of which connect Alabama Avenue Southeast and Mississippi Avenue Southeast in the Congress Heights neighborhood of the District of Columbia. The defendants also used, carried, and possessed firearms, to include privately made firearms (often referred to as “ghost guns”), to protect their illegal narcotics business, to include protecting their persons, their cash, their territory, and their narcotics and paraphernalia. The defendants purchased, or otherwise acquired, firearms—often utilizing controlled substances as currency—either from each other, or from other sources. The defendants also sold or traded firearms to each other, or to other sources, in order to acquire money to purchase drugs and/or other firearms.
The defendants are expected to make their initial appearances before the U.S. Magistrate Court today, September 3, 2020.
In addition to effecting their arrests, law enforcement agents from FBI, ATF, and MPD executed multiple search warrants throughout this investigation, yielding the seizure of one fully-automatic machine gun, six additional semi-automatic firearms, more than $19,500 in cash, approximately 200 grams of oxycodone, and narcotics paraphernalia.
“The U.S. Attorney’s Office is committed to investigating and prosecuting those who endanger the residents of the District of Columbia in pursuit of the illegal gun and drug trade.” said Acting U.S. Attorney Michael R. Sherwin.
“Violent drug traffickers prey on members of their own neighborhoods,” said Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This investigation and the resulting arrests demonstrate the strong partnership between the FBI and other Department of Justice law enforcement assets—including ATF, DEA, and the U.S. Marshals Service—and MPD to address violent crime within the District of Columbia. Together, we will continue to work tirelessly with our task force partners to remove dangerous narcotics and illicitly obtained firearms from circulation on the streets of our communities.”
“The arrests today of these seven individuals marks the continuation of a concerted effort by law enforcement to pursue these violent criminals,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “Given the staggering number of crimes committed by these individuals, it was imperative that they be brought to justice. We thank our local and federal law enforcement partners for their exceptional assistance in apprehending these criminals.”
An indictment and its contents are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the FBI Washington Field Office's Cross Border Task Force, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Washington DC Metropolitan Police Department. Additional assistance in this matter was provided by the United States Marshals Service and the Metropolitan Washington Airports Authority. The task force is comprised of Special Agents from the Washington and the Baltimore Field Offices, task force officers from the Capital Region, and United States Park Police.
In announcing the indictment, Acting U.S. Attorney Sherwin, acting Special Agent in Charge Bornstein, Special Agent in Charge Benedict, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who are handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys James B. Nelson and Kaitlin A. Vaillancourt of the Federal Major Crimes Section, and Paralegal Specialists Jennifer Saralino, Rommel Pachoca, Kim Hall, Candace Battle, and Teesha Tobias as well as Legal Assistants Emma Atlas, Peter Gaboton, LaToya Wade, and Kate Abrey.
Sentence of 21+ Years for Texas Man Who Ran Drug Ring in Kansas CityRead the Press Release
KANSAS CITY, KAN. – A Texas man who oversaw a drug ring in the Kansas City metro area was sentenced Wednesday to 262 months in federal prison, U.S. Attorney Stephen McAllister said.
Jorge Portillo-Uranga, 36, Teague, Texas, pleaded guilty to seven felony counts including conspiracy, possession with intent to distribute cocaine and using a telephone in furtherance of drug trafficking.
According to court documents, the Drug Enforcement Administration began an investigation in 2016 of a drug trafficking organization headed by Portillo-Uranga that was selling kilogram quantities of cocaine and marijuana to buyers in the Kansas City metro area. Portillo-Uranga managed the operation from his home in Teague, Texas. Investigators intercepted communications between Portillo-Uranga in Texas and other members of the organization as he directed their movements in obtaining cocaine and delivering it to Kansas City. In various conversations, Portillo-Uranga expressed his suspicions that some of the traffickers were skimming cocaine from the shipments.
McAllister commended the Drug Enforcement Administration, Assistant U.S. Attorney Trent Krug and Assistant U.S. Attorney David Zabel for their work on the case.
Seminole Man Sentenced to 48 Months Probation, $249,000 Restitution for Theft from Organization Receiving Federal FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Randall Pete Loftis, age 41, of Seminole, Oklahoma was sentenced to 4 years of probation and ordered to pay $249,000.00 in restitution for Theft From Organization Receiving Federal Program Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). The charges arose from an investigation by the Seminole Police Department and the Department of Defense Office of Inspector General - Defense Criminal Investigative Service (“DCIS”).
The Information alleged that from on or about December 19, 2011, until on or about August 9, 2016, in the Eastern District of Oklahoma, the defendant, Randall Pete Loftis, being an agent, employee, and officer of Enviro Systems, Inc., an organization which received in excess of $10,000 in federal benefits in each one year period from 2011 through 2016, embezzled, stole, obtained by fraud, and without authority knowingly converted to his use, property of a value of $5,000 or more, owned by, under the care of, and under the control of Enviro Systems, Inc.
United States Attorney Brian J. Kuester said, “The defendant over a period of years fraudulently used a company credit card to purchase items valued at nearly $250,000 for his personal enrichment. DCIS investigators and members of this office, after many years of investigation and working with Enviro Systems to identify the amount of loss, have successfully brought the defendant to justice. He is being held accountable and restitution has been ordered.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States.
Seafood Processor Pleads Guilty to Selling Foreign Crabmeat Falsely Labeled as Blue Crab from USARead the Press Release
A North Carolina man pleaded guilty today before U.S. District Judge James C. Dever III in the Eastern District of North Carolina on charges that his company, Garland F. Fulcher Seafood Company Inc. (Garland Fulcher), at his direction, falsely labeled hundreds of thousands dollars’ worth of foreign crabmeat as “Product of USA.”
According to information in the public record, Jeffrey A. Styron was the treasurer of the corporate board of officers for Garland Fulcher, a North Carolina company engaged in the business of purchasing, processing, packaging, transporting and selling seafood and seafood products, including crabmeat from domestically harvested blue crab.
As treasurer, Styron was responsible for overseeing the daily operations of the company’s crab-related business, which involved managing and directing employees of the company with respect to the processing, packaging, and labeling of crab meat. Styron pleaded guilty to a one-count information charging him with substituting foreign crabmeat for domestic blue crab and, as part of the plea, Styron admitted to falsely labeling crabmeat with a retail market value of at least $250,000 dollars, which was sold primarily to small seafood retailers and restaurants.
“Blue crabs are a classic American seafood product and a vital resource for coastal communities in North Carolina, Virginia, Maryland, and other parts of the United States,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This investigation is part of the department’s mission to work with our law enforcement partners in the protection of Atlantic blue crab populations and other marine resources.”
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Styron and Garland Fulcher Seafood an unacceptable and unfair economic advantage over law-abiding competitors.”
“Seafood fraud undermines the economic viability of U.S. and global fisheries, deceives consumers, and threatens the health of those who consume tainted or misidentified seafood products,” said Chris Oliver, Assistant Administrator of the National Oceanic and Atmospheric Administration’s (NOAA) National Marine Fisheries Service. “This case is a great example of investigative cooperation by state and federal law enforcement to strengthen seafood fraud detection and safeguard the industry and consumers.”
As part of his guilty plea, Styron admitted that he and his company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, Styron and his company used foreign crabmeat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Styron and Garland Fulcher purchased crabmeat (not live crabs) from South America and Asia.
As part of the guilty plea, Styron further admitted that beginning at least as early as Jan. 1, 2014, and continuing through Dec. 31, 2017, he directed company employees to repack foreign crabmeat into containers labeled “Product of USA,” which Garland Fulcher then sold to customers as “backfin,” “claw,” “lump,” “jumbo lump,” or “special,” domestically-harvested blue crab meat.
Styron is scheduled to be sentenced on Dec. 7.
This case was part of an ongoing effort by NOAA’s Office of Law Enforcement, in coordination with the Food and Drug Administration and the Department of Justice to detect, deter and prosecute those engaged in the false labeling of crabmeat.
This prosecution is being handled by the Environment and Natural Resources Division’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina. Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Seafood Processor Pleads Guilty to Selling Foreign Crabmeat Falsely Labeled as Blue Crab from USARead the Press Release
WASHINGTON – A North Carolina man pleaded guilty today before U.S. District Judge James C. Dever III in the Eastern District of North Carolina on charges that his company, Garland F. Fulcher Seafood Company Inc. (Garland Fulcher), at his direction, falsely labeled hundreds of thousands dollars’ worth of foreign crabmeat as “Product of USA.”
According to information in the public record, Jeffrey A. Styron was the treasurer of the corporate board of officers for Garland Fulcher, a North Carolina company engaged in the business of purchasing, processing, packaging, transporting and selling seafood and seafood products, including crabmeat from domestically harvested blue crab.
As treasurer, Styron was responsible for overseeing the daily operations of the company’s crab-related business, which involved managing and directing employees of the company with respect to the processing, packaging, and labeling of crab meat. Styron pleaded guilty to a one-count information charging him with substituting foreign crabmeat for domestic blue crab and, as part of the plea, Styron admitted to falsely labeling crabmeat with a retail market value of at least $250,000 dollars, which was sold primarily to small seafood retailers and restaurants.
“Blue crabs are a classic American seafood product and a vital resource for coastal communities in North Carolina, Virginia, Maryland, and other parts of the United States,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This investigation is part of the department’s mission to work with our law enforcement partners in the protection of Atlantic blue crab populations and other marine resources.”
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Styron and Garland Fulcher Seafood an unacceptable and unfair economic advantage over law-abiding competitors.”
“Seafood fraud undermines the economic viability of U.S. and global fisheries, deceives consumers, and threatens the health of those who consume tainted or misidentified seafood products,” said Chris Oliver, Assistant Administrator of the National Oceanic and Atmospheric Administration’s (NOAA) National Marine Fisheries Service. “This case is a great example of investigative cooperation by state and federal law enforcement to strengthen seafood fraud detection and safeguard the industry and consumers.”
As part of his guilty plea, Styron admitted that he and his company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, Styron and his company used foreign crabmeat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Styron and Garland Fulcher purchased crabmeat (not live crabs) from South America and Asia.
As part of the guilty plea, Styron further admitted that beginning at least as early as Jan. 1, 2014, and continuing through Dec. 31, 2017, he directed company employees to repack foreign crabmeat into containers labeled “Product of USA,” which Garland Fulcher then sold to customers as “backfin,” “claw,” “lump,” “jumbo lump,” or “special,” domestically-harvested blue crab meat.
Styron is scheduled to be sentenced on Dec. 7.
This case was part of an ongoing effort by NOAA’s Office of Law Enforcement, in coordination with the Food and Drug Administration and the Department of Justice to detect, deter and prosecute those engaged in the false labeling of crabmeat.
This prosecution is being handled by the Environment and Natural Resources Division’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina. Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Saratoga County Man Charged with Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – Cameron Hennelly, age 30, currently of Halfmoon, New York and formerly of Amsterdam, New York, appeared in court yesterday on a charge of distributing child pornography.
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).
On August 28, 2020, Hennelly was charged by a criminal complaint with distributing child pornography. Hennelly appeared yesterday before United States Magistrate Judge Christian F. Hummel for a detention hearing and was ordered detained pending further proceedings. The complaint alleges that Hennelly used the Kik phone messaging application to distribute a video containing child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted, Hennelly faces at least 5 and up to 20 years in prison, a mandatory term of supervised release of at least 5 years and up to life, mandatory registration as a sex offender, and a maximum fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Ready-Mix Concrete Company and Individuals Indicted for Fixing Prices and Rigging Bids in Violation of Antitrust LawsRead the Press Release
A federal grand jury returned an indictment against one company and four individuals for their roles in a long-running conspiracy to fix prices, rig bids, and allocate markets for ready-mix concrete in the greater Savannah, Georgia area, the Department of Justice announced today.
The indictment, returned in the U.S. District Court in Savannah, charges Evans Concrete, LLC; James Clayton Pedrick; Gregory Hall Melton; John “David” Melton; and Timothy “Bo” Strickland with conspiring to fix prices, rig bids, and allocate markets for the sale of ready-mix concrete used in residential, commercial, and public projects. Pedrick is also charged with making false statements, and Strickland is charged with making false statements and perjury.
“The charges continue the division’s efforts to prosecute those who cheat the American consumer by driving up prices of the building blocks of commercial enterprise in the United States,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “With support from our law enforcement partners, the Antitrust Division will hold accountable anyone who cheats the system by depriving customers of competitive pricing, as well as individuals who lie to investigating agents.”
“Activities related to illegal price-fixing, bid rigging, and market allocation do not promote an environment conducive to open competition. When this occurs, the consumer is not guaranteed the best products at the lowest prices,” said Acting Special Agent in Charge Steven Stuller, U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities that require concrete and other construction materials. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
“The charges illustrate the FBI’s dedication and ongoing efforts with our partners to ensure that U.S. markets remain free and open,” said Acting Assistant Director in Charge, James A. Dawson, FBI Washington Field Office. “The company and individuals charged all had an alleged role in a long-running conspiracy to fix prices and rig bids. The FBI will continue to investigate those who try to cheat the system and profit at the expense of consumers.”
“The stability of our free market depends on fair play from competitors, and when competing companies collude and conspire to illegally enhance their profits, consumers and taxpayers are penalized with higher prices,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “We applaud the actions of our law enforcement partners and the Department of Justice in helping to provide a level playing field for commerce in our district.”
Ready-mix concrete is a product comprised of ingredients including cement, aggregate (sand and gravel), water, and, at times, other additives. It is made on demand and, if necessary, delivered to work sites by concrete mixer trucks. Ready-mix concrete is purchased by do-it-yourself and commercial customers, as well as local, state, and federal governments, for use in various construction projects, including, but not limited to, sidewalks, driveways, bridges, tunnels, and roads.
According to the indictment, from as early as 2010 until approximately July 2016, the charged individuals, on behalf of their companies, participated in a conspiracy to fix prices, rig bids, and allocate markets for sales of ready-mix concrete. The conspirators submitted rigged bids and accepted payments for ready-mix concrete sold through contracts and on projects that were affected by the alleged conspiracy. In order to carry out the conspiracy, the conspirators used Pedrick as a conduit to exchange price-increase letters and other competitive information between the defendants and other co-conspirators for the purpose of coordinating price increases, rigging bids, and allocating jobs.
Timothy “Bo” Strickland was, at different times, owner, president, area manager, plant manager, and a salesperson for Evans. Gregory Melton was division manager of ready-mix concrete sales, and James Clayton Pedrick was a cement salesman, for a co-conspirator company. John David Melton was the general manager for another co-conspirator company. All of the defendants worked in the Savannah area.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a $100 million fine for corporations. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. The offenses of making false statements and perjury each carries a maximum penalty of 5 years in prison and a $250,000 fine.
The charges stem from an ongoing investigation by the Antitrust Division’s Washington Criminal II Section, the United States Postal Service Office of Inspector General, and the FBI’s Washington Field Office, with the assistance of the U.S. Attorney’s Office in Savannah, Georgia, and the Department of Transportation Office of the Inspector General. Anyone with information concerning price fixing, bid rigging, or other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Indictment: U.S. v. Evans Concrete LLC, et al
Reading, PA Woman Pleads Guilty to Sex Trafficking ChildrenRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Melissa Madera, 27, of Reading, PA pleaded guilty before United States District Court Judge Joseph F. Leeson, Jr. to multiple child exploitation and pornography offenses.
In August 2019, the defendant was charged by Indictment with two counts of sex trafficking minors, and one count each of distribution, receipt, and possession of child pornography. The charges stem from Madera’s trafficking of two children, 15-year-old and 17-year-old girls, from about August until October 2017. Madera forced the girls to engage in commercial sex for her own financial gain, and also plied the minors with drugs like Ecstasy and cocaine to ensure their compliance. Sometimes the girls would not make it to school the following day because they had been given so many drugs the previous night.
Madera also obtained a sexually explicit image of one of the girls and used it in a commercial sex trafficking website, advertising the minor for commercial sex acts using locations like the Quality Inn in Wyomissing, PA, and the Days Inn, Kleins’ Motel and Roadway Inn, all in Reading, PA. The defendant would rent two rooms at the hotel: one room was for the commercial sex acts and Madera would stay in the other after meeting the sex buyers and charging a fee of $200 per hour. After the 15-year-old’s mother reported her missing to the Reading Police Department in October 2017, Madera confronted the girl and assaulted her, stating “This is what you get for being a rat.”
“Sex trafficking is a serious problem in the Eastern District of Pennsylvania and we are committed to rooting it out,” said U.S. Attorney McSwain. “Here, Madera advertised children like objects to be sold online and gave them drugs so that they weren’t in their right minds. This is a parent’s worst nightmare.”
“Predators come in many different forms,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Make no mistake, Melissa Madera fits that bill. She has now admitted to selling minors for sex, drugging them to maintain control of their minds and bodies. Such despicable treatment does serious lasting harm. The FBI is committed to finding and freeing trafficking victims and holding their tormentors accountable.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
President of Consultant Firm Pleads Guilty to Employment Tax FraudRead the Press Release
A Richmond, Virginia, businessman pleaded guilty today to failing to collect, truthfully account for, and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.
According to documents and information provided to the court, Rama Gogineni was president and director of Computech Services Inc., a technology consulting services firm in Richmond, Virginia. Gogineni was also responsible for collecting, truthfully accounting for, and paying over to the IRS Social Security, Medicare, and income taxes withheld from his employees’ wages. Beginning as early as 2007 and through 2015, Gogineni did not pay over more than $980,000 in employment taxes to the IRS. During this time, Gogineni entered into three separate installment agreements with the IRS committing to make the payments, but defaulted each time.
U.S. District Judge David Novak scheduled the sentencing for Feb. 10, 2021. At sentencing, Gogineni faces a maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney William Montague of the Tax Division and Assistant U.S. Attorney David McGuire, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Portland Man Charged with Civil Disorder After Targeting Police Officers with High-Powered LaserRead the Press Release
PORTLAND, Ore.—Hugo Ryan Berteau-Pavy, 26, of Portland, has been charged by criminal complaint with civil disorder, a felony, after targeting the eyes of multiple law enforcement officers with a high-powered laser during a June 13, 2020 civil disturbance in Portland.
According to court documents, at approximately 10:00 p.m. on June 13, 2020, a civil disturbance was declared when a crowd gathered around the Multnomah County Justice Center in downtown Portland. At approximately 10:50pm, local police began to clear the crowd. A Portland Police Bureau officer watching the crowd from the roof of the Justice Center observed two individuals, one later identified at Berteau-Pavy, standing in the middle of the street and repeatedly hitting several officers in the face with high-powered lasers.
The officer moved to a lower floor and was able to photograph Berteau-Pavy. The officer kept track of Berteau-Pavy as the crowd was dispersed. In the early morning hours of June 14, 2020, Berteau-Pavy joined a group of individuals marching from the Justice Center to Portland Mayor Ted Wheeler’s personal residence. Berteau-Pavy was observed shining a laser at the Mayor’s residence and at other homes in neighborhood. The officer who originally spotted Berteau-Pavy with the laser, tracked his location until Berteau-Pavy was contacted by other officers and taken into custody. Berteau-Pavy was later released by state authorities.
On September 2, 2020, FBI agents arrested Berteau-Pavy at his residence in southwest Portland without incident.
Berteau-Pavy made his first appearance in federal court today before a U.S. Magistrate Judge and was released pending further court proceedings. If convicted, Berteau-Pavy 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.
Pennsylvania Medicare Advantage Plan Provider Agrees to Pay $2.25M to Resolve Allegations of Inflated Plan BidsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Keystone Health Plan East, Inc. and QCC Insurance Company, Inc. (collectively referred to as “KHPE/QCC”), on behalf of parent company Independence Blue Cross, LLC (“IBC”), operator of Medicare Advantage plans, have agreed to pay a total of $2,250,000 plus interest to resolve False Claims Act allegations of incorrectly calculating anticipated plan costs, resulting in inflated Medicare Advantage plan bids to the Centers for Medicare and Medicaid Services (“CMS”).
IBC operates a number of Medicare Advantage plans for Medicare beneficiaries, and is reimbursed by CMS, which pays IBC’s subsidiaries KHPE/QCC. Medicare Advantage plans are also sometimes called “Part C” or “MA Plans,” and include bundled coverage for Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance), and usually Medicare prescription drugs (Part D). KHPE/QCC submits annual bids that include anticipated costs for each Medicare Advantage plan to be offered the following year. The government alleges that KHPE/QCC incorrectly calculated its actual prior costs in the financial plan bids submitted to CMS for contract years 2009 and 2010. The incorrect and inflated prior cost data resulted in higher base amounts in KHPE/QCC’s Medicare Advantage plan bids, causing CMS to pay inflated reimbursement to KHPE/QCC. The United States contends that these claims were false in light of defendant’s conduct.
This settlement resolved a lawsuit filed under the False Claims Act in the U.S. District Court for the Eastern District of Pennsylvania by an employee of IBC. Under the qui tam (or whistleblower) provisions of the False Claims Act, private citizens are permitted to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The False Claims Act also permits the government to intervene and take over the lawsuit, which occurred in this case. The whistleblower in this case, Mr. Eric Johnson, will receive $499,438.05 as his share of the recovery.
“Investigating credible allegations of fraud against federal healthcare programs saves taxpayer dollars, especially in complex Medicare Advantage Part C cases such as this, when the alleged conduct has potential implications for Medicare beneficiaries and drives up the cost of Medicare Advantage plans,” said U.S. Attorney McSwain. “Medicare Advantage plan operators must know the CMS contracting rules, and the proper presentation of claims costs required by those programs, and abide by them.”
“Today’s settlement represents significant teamwork and shows our commitment to investigating all potential allegations of fraud against the Medicare Part C Programs, no matter how complex,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General, Department of Health and Human Services. “We will continue to partner with the United States Attorney’s Office to evaluate allegations brought under the False Claims Act to ensure the integrity of Medicare programs.”
The government’s pursuit of these matters illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services (“HHS”), at 1-800‑HHS‑TIPS (1-800-447-8477).
This matter was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, in conjunction with the U.S. Department of Health and Human Services Office of Inspector General. The lawsuit is captioned United States ex rel. Eric Johnson v. Independence Blue Cross, Civ. Action No. 10-CV-1520 (E.D. Pa.). Assistant U.S. Attorneys Viveca D. Parker and Eric D. Gill handled the case in the Eastern District of Pennsylvania, with assistance from auditor Dawn Wiggins.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Otsego County Woman Charged with Federal Program Theft for Stealing from School DistrictRead the Press Release
ALBANY, NEW YORK – Kristina Hand, age 47, of Morris, New York, was arrested today and charged with stealing thousands of dollars from her former employer, the Morris Central School District.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; New York State Comptroller Thomas P. DiNapoli; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
A criminal complaint alleges that Hand, as the Treasurer for the Morris Central School District in Otsego County, diverted and stole at least $22,315.33 in checks made payable to the school district in 2018 and 2019 – years in which the district annually received more than $10,000 in federal funding. The school district terminated Hand’s employment in February 2020, upon discovering the theft. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Hand appeared today before United States Magistrate Judge Daniel J. Stewart, and was released pending further proceedings. If convicted, she faces up to 10 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, New York State Police, and the Office of the New York State Comptroller, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Operation Pocket Dial Results in Eleven Drug Traffickers Charged for Conspiring to Distribute HeroinRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez, along with federal, state, and local law enforcement partners, announces several recent arrests in “Operation Pocket Dial” – a joint investigation targeting heroin and fentanyl distribution networks in Tampa and Kissimmee.
Three indictments were unsealed this week charging a total of 11 members of drug trafficking organizations with offenses related to the distribution of heroin and fentanyl. (See chart for details).
In December 2019, two additional defendants, Eric Manuel Robles Rivera (45/Orlando) and Eddie Quinones Santiago (38, Kissimmee), were charged as part of this investigation. Robles Rivera previously pleaded guilty to possessing heroin with the intent to distribute it and, in July 2020, he was sentenced to 33 months in federal prison. Quinones Santiago is scheduled for trial in October 2020.
According to the indictments just unsealed, between January 1, 2016, and continuing through August 27, 2020, the defendants conspired to distribute heroin and fentanyl in the Middle District of Florida. The defendants distributed heroin and fentanyl on multiple occasions, and the use of the heroin and fentanyl resulted in death and serious bodily injury.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation is the result of a partnership between the United States Attorney’s Office, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Tampa Police Department, the Hillsborough County Sheriff’s Office, the Florida Highway Patrol, and the Hillsborough County Medical Examiner’s Office. It will be prosecuted by Assistant United States Attorney Michael Sinacore.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Name
(Age, Residence)
Charges
Maximum Penalties
William Franqui,
a/k/a “Gordo”
(35, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin and fentanyl resulting is serious bodily injury
Distribution of heroin (two counts)
Mandatory minimum of 10 years, up to life, in federal prison
Mandatory minimum 20 years, up to life, in federal prison
20 years in federal prison (per count)
Marie Rodriguez
(39, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin (two counts)
Mandatory minimum of 10 years, up to life, in federal prison
20 years in federal prison (per count)
Kevin Darnell Diaz Tirado
(27, Clearwater)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin (two counts)
Mandatory minimum 10 years, up to life, in federal prison
20 years in federal prison (per count)
Edgardo Colon Rosado
(28, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin (two counts)
Mandatory minimum of 10 years, up to life, in federal prison
20 years in federal prison (per count)
Jose Miriel Morales Sanchez
(29, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Mandatory minimum of 10 years, up to life, in federal prison
Orlando Muniz Escalera
(26, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin
Mandatory minimum of 10 years, up to life, in federal prison
20 years in federal prison (per count)
Leslie Pagan
(39, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin and fentanyl resulting in death
Distribution of heroin and fentanyl (eight counts)
Mandatory minimum of 10 years, up to life, in federal prison
Mandatory minimum of 20 years, up to life, in federal prison
20 years in federal prison (per count)
Jackylin Bonifacio
(36, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin and fentanyl resulting in death
Mandatory minimum of 10 years, up to life, in federal prison
Mandatory minimum of 20 years, up to life, in federal prison
Steven Echevarria, a/k/a “Unca”
(34, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of fentanyl
Mandatory minimum of 15 years, up to life, in federal prison
30 years in federal prison
Nathaniel Quiles, a/k/a “Chuleta”
(35, Kissimmee)
Conspiracy to distribute one hundred grams or more of heroin
Distribution of heroin
Mandatory minimum of 5 years, up to 40 years, in federal prison
20 years in federal prison
Kiara Marie Rivera Serrano
(29, Kissimmee)
Conspiracy to distribute one hundred grams or more of heroin
Distribution of heroin
Mandatory minimum of 5 years, up to 40 years, in federal prison
20 years in federal prison
Operation Legend: Update on Federal ChargesRead the Press Release
On July 8, 2020, Attorney General William P. Barr announced 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, MO., 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 kilos of fentanyl, 14 kilos of heroin, 12 kilos of cocaine, and 50 kilos of methamphetamine have been seized.
Of those individuals arrested, 476 have been charged with federal offenses. 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.
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, Ill.
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.
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.
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, Tenn.
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, Indiana
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.
Operation Legend: Update on Federal ChargesRead the Press Release
DETROIT - On July 8, 2020, Attorney General William P. Barr announced 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, MO., 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.
“Operation Legend is working, not only in Detroit but in other districts as well,” stated United States Attorney Matthew Schneider. “Operation Legend is proof that by working with our state and local law enforcement partners we are making our communities safer for the citizens of Detroit.”
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 kilos of fentanyl, 14 kilos of heroin, 12 kilos of cocaine, and 50 kilos of methamphetamine have been seized.
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.
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, Ill.
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.
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.
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, Tenn.
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, Indiana
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.
***
Operation Legend: Update on Federal ChargesRead the Press Release
ALBUQUERQUE, N.M. - On July 8, Attorney General William P. Barr announced 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.
The operation was expanded to Albuquerque on July 22. Since the operation’s expansion through Monday, Aug. 31, 35 defendants have been charged with federal crimes. Among the charges brought under Operation Legend in Albuquerque to date are:
-8 defendants charged with conspiracy to distribute controlled substances
-9 defendants charged with distribution of controlled substances
-16 defendants charged with possession with intent to distribute a controlled substance
-10 defendants charged with being in possession of a firearm in furtherance of drug trafficking
-19 defendants charged with being a felon in possession of a firearm
-4 defendants charged with being in possession of a stolen firearm
-5 defendants charged with Hobbs Act violations
-1 defendant charged with carjacking
-1 defendant charged with re-entry of a removed alien
-2 defendants charged with brandishing of a firearm in furtherance of a violent crime
-1 defendant charged with discharging a firearm in furtherance of a violent crime
-1 defendant charged with brandishing a firearm in furtherance of a violent crime
-1 defendant charged with maintaining a drug-involved premises
“The goal of Operation Legend in Albuquerque is to achieve a sustained reduction in gun and other dangerous crimes,” said John C. Anderson, U.S. Attorney for the District of New Mexico. “By coordinating federal resources with state and local law enforcement, we’ve been able to identify, apprehend and prosecute individuals driving dangerous crime in the city. We can see from the charges brought under Operation Legend that we have been effective in meeting our objectives and we intend to continue this trend. I want to express my appreciation to our partnering agencies for their exceptional efforts to achieve our successes to date.”
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 Northern District of Ohio. Operation Legend launched in Cleveland on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Richard Woodard
“This defendant is alleged to have been associated with a heroin overdose, is accused of drug trafficking and was found in possession of multiple, loaded firearms at his home, often in the presence of a child,” said U.S. Attorney Justin Herdman for the Northern District of Ohio. “This case is a great example of what Operation Legend was designed to do – identify those illegally in possession of a firearm, drugs, or otherwise committing acts of violence and get them out of our communities to protect innocent lives.”
Richard Woodard, 41, of Cleveland, Ohio, was charged on Aug. 7, 2020, with drug distribution and being a felon in possession of a firearm.
According to the criminal complaint, an FBI-led investigation into a heroin overdose death in the city of Cleveland led law enforcement to Woodard. On Aug. 7, 2020, agents conducted surveillance of Woodard and observed him complete a heroin transaction. Later that day, law enforcement arrested Woodard in a parking lot in Cleveland for the earlier transaction. During a subsequent search warrant execution at Woodard’s apartment, law enforcement seized 60 grams of heroin, four firearms (three of which were loaded and in plain view), approximately $12,000, several boxes of ammunition, and multiple items commonly used to process and package illegal narcotics.
Because of a previous felony conviction punishable by more than one year in prison, Woodard 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 into these cities to help state and local officials fight violent crime. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with 476 defendants charged with federal crimes.
Onondaga County Man Indicted on False Statement ChargesRead the Press Release
SYRACUSE, NEW YORK – Chasib Hafedh Saadoon Al Fawadi, age 35, of Syracuse, was charged yesterday by indictment with making false statements in connection with his application to obtain a green card.
Acting United States Attorney Bacon stated: “As alleged in the indictment, Al Fawadi lied to U.S. authorities to conceal his membership in, and support of, an Iranian-backed militia that has carried out attacks in Iraq and Syria. National security is our number one priority. With our law enforcement partners, we will aggressively investigate and seek charges against immigration applicants who lie about their affiliation with violent, extremist organizations.”
Thomas F. Relford, FBI Special Agent in Charge of the Albany Field Office, stated: “The FBI works tirelessly to protect the American people from dangerous individuals seeking to cause harm. Mr. Al Fawadi’s alleged fraudulent actions could have resulted in a member of a violent, Iranian-backed militia becoming a United States citizen. The FBI will continue to work diligently with our local, state, and federal partners to ensure the safety of every American.”
According to the indictment, Al Fawadi, an Iraqi citizen, made false statements in connection with his application to become a lawful permanent resident. Specifically, the indictment alleges that he made false statements (1) on his United States Citizenship and Immigration Services (USCIS) Form I-485 for permanent residence; (2) to an official of the USCIS, a component of the Department of Homeland Security, during an interview conducted on April 9, 2019, in connection with his application for permanent residence; and (3) to another USCIS official on October 30, 2019.
As detailed in the indictment, Al Fawadi falsely answered questions where honest answers would have revealed that (1) he had been a member of and affiliated with Asa’ib Ahl al-Haq, an Iranian-backed Shiite militia and paramilitary organization and group whose members routinely used weapons against others and threatened to do so; (2) he had also assisted and provided material support to Asa’ib Ahl al-Haq knowing that it had engaged in and conspired to engage in sabotage, kidnapping, political assassination, hijacking, and other forms of terrorist activity; (3) he had received military, paramilitary and weapons training; and (4) he had traveled to Iran and Syria. By instead providing false answers, Al Fawadi attempted to conceal all of this information from the USCIS.
According to the indictment, on March 17, 2015, while in Turkey, Al Fawadi applied for classification as a refugee and to be admitted to the United States along with his family in large part on his claim that, while in Iraq, he was persecuted and threatened by Asa’ib Ahl al-Haq because he had refused to assist in the kidnappings of Sunni Muslims.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Al Fawadi faces up to 5 years in prison on each false statement charge, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and Homeland Security Investigations, with assistance from the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Steven D. Clymer.
One Person Indicted, Second Person to Plead Guilty in COVID-19 Stimulus Fraud InvestigationRead the Press Release
PROVIDENCE – A Massachusetts man who failed to appear in federal court in Rhode Island and who allegedly faked his own death after being charged and arraigned on fraud and conspiracy charges for his alleged participation in a conspiracy to file bank loan applications fraudulently seeking more than a half-million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, has been indicted by a federal grand jury in Providence.
David Adler Staveley, a/k/a Kurt David Sanborn, a/k/a David Sanborn, 53, of Andover, MA, has been indicted on three counts of bank fraud and one count each of conspiracy to commit bank fraud, false statements to influence the SBA, aggravated identity theft, and failure to appear in court as required.
According to an information and plea agreement filed with the court, alleged co-conspirator David Andrew Butziger, 52, of Warwick RI, has agreed to plead guilty to conspiracy to commit bank fraud. A court date has not yet been scheduled.
It is alleged that Staveley and Butziger conspired to seek forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four different business, three restaurants and an electronics business, entities when, in fact, there were no employees working for any of the businesses. Additionally, it is alleged that Staveley posed as his brother in real estate transactions.
It is alleged in the indictment that Staveley, following his arrest on May 5, 2020, and released by the court on unsecured bond with certain travel restrictions, violated the terms of pre-trial release when he traveled to Connecticut without the approval of the court or United States Probation. On May 11, 2020, the court ordered Staveley to home confinement with GPS monitoring. While awaiting a further court hearing on the pre-trial release violation, it is alleged that Staveley cut off his electronic monitoring bracelet and fled.
According to the indictment, in an effort to deceive law enforcement into believing that he had died, it is alleged that Staveley staged his suicide by, among other things, leaving suicide notes with associates and in his car, which he left unlocked and parked by the Atlantic Ocean. It is alleged that from May 26, 2020, to July 23, 2020, in an effort to avoid apprehension, Staveley traveled to various States using false identities and stolen license plates. He was apprehended by the United States Marshals Service in Alpharetta, Georgia on July 23, 2020.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
The indictment of Staveley and the filing of an information and plea agreement in the case against Butziger are announced by United States Attorney Aaron L. Weisman, Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office, and Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Joleen Simpson.
A federal indictment and an information are merely accusations. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The Justice Department acknowledges and thanks the SBA Office of Inspector General and the FDIC, Office of Inspector General for their efforts investigating this mater.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Omaha Man Sentenced for New Years’ Robbery SpreeRead the Press Release
United States Attorney Joe Kelly announced that Marcus D. Evans, 26, of Omaha, Nebraska, was sentenced today to 16 ½ years in prison by United States District Judge Robert F. Rossiter, Jr., following his convictions for two counts of robbery and one count of brandishing a firearm. In addition to his prison term, he will serve three years of supervised release following his release from prison. There is no parole in the federal system. Evans was also ordered to pay restitution of $280.00 to Buck’s Inc., $151.55 to Kwik Shop, and $1,000 to Phillip’s 66.
On January 1, 2019, at approximately 5:58 a.m., Christopher Collins, Marcus Evans and Ervin Smith, Jr., while wearing masks and gloves, robbed the Bucky’s at 2901 North 72nd Street, Omaha. Smith brandished a gun but Collins and Evans knew it was there and being used. Collins was shouting orders and ordered the employee to the ground. They left the store with cash, cigarettes and Nebraska lottery tickets.
On January 1, 2019, at approximately 6:16 a.m., Collins, Evans and Smith went into the Kwik Shop at 5929 North 72nd Street. A gun was threatened but never shown. The clerk was ordered to lay on the ground. They left the store with cigarettes, cigars, and Nebraska Lottery tickets.
On January 1, 2019, at approximately 6:31 a.m., Collins, Evans and Smith robbed the Phillip’s 66 at 5920 Sorenson Parkway, Omaha. Smith was carrying a firearm that Collins and Evans knew was there. As they were entering the store, a customer saw them enter with faces covered, laying a stick in the doorway, and had a hunch the store was going to be robbed. He went to his car and retrieved a firearm, which he was licensed to carry, and re-entered the store. He demanded Collins, Evans and Smith not to move. Smith passed Collins his gun and Collins fired several shots in the direction of the customer, before Collins, Evans and Smith left the store taking store money with them.
They were all caught within 24 hours. Evans was recognized by a former school employee at a location Evans attended. Smith was recognized by an Omaha Police Gang Unit officer. The officer also located a 2013 Facebook picture showing Evans and Smith together. On January 2, 2019, a traffic stop was done of a vehicle Smith was driving. Collins was a passenger. Collins had attempted to cash in one of the stolen lottery tickets and the clerk of that store recognized and was able to identify him.
Smith has pleaded guilty and is awaiting sentencing. Collins previously pleaded guilty and was sentenced to 18 years in prison.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives
Okmulgee Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Derrick Leron Jordan, age 49, of Okmulgee, Oklahoma entered a guilty plea to Failure To Register As Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that from on or about December 14, 2018, until on or about March 24, 2020, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Oklahoma on or about April 22, 1999, for Rape First Degree and Oral Sodomy, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charges arose from an investigation by the Okmulgee Police Department and the United States Marshals Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Courtney Jordan represented the United States at the change of plea hearing.
Ohio couple admits to drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony A. Shuster, Jr. and Amy S. Lambert-Shuster, both of Caldwell, Ohio, have admitted to drug and firearms charges, U.S. Attorney Bill Powell announced.
Anthony Shuster, also known as “Tiny,” 35, pled guilty to one count of “Distribution of More than 50 Grams of Methamphetamine.” Shuster admitted to selling more than 50 grams of methamphetamine, also known as “crystal meth” and “ice,” in January 2019 in Ritchie County.
Amy Lambert-Shuster, 41, pled guilty to one count of “Aiding and Abetting the Unlawful Transfer of a Machinegun.” Lambert-Shuster admitted to transferring a AR15-type firearm in January 2019 in Ritchie County.
Shuster faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Lambert-Shuster faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
North Carolina Man Sentenced to 15 Months in Tax Fraud CaseRead the Press Release
GREENSBORO, N.C. – A Greensboro health care services provider was sentenced in federal court in Greensboro to 15 months in prison for tax offenses, announced U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina and Special Agent in Charge Matthew D. Line of the Internal Revenue Service-Criminal Investigation (IRS-CI).
JAVONDELL R. STALLINGS, 47, of Whitsett, N.C., was the chief executive officer of Step By Step Care, Inc. In October 2019, STALLINGS pled guilty to one count of filing a false tax return in violation Title 26, United States Code, Section 7206(1).
According to court documents, STALLINGS owned and operated Step By Step Care in Greensboro since 2005. Step By Step Care provided behavioral healthcare services and substance abuse treatment to patients. On or about March 24, 2013, STALLINGS submitted a materially false personal income tax return to the IRS for calendar year 2012.
On September 3, 2020, United States District Judge William L. Osteen, Jr., sentenced STALLINGS to 15 months in prison and one year of supervised release. During the sentencing hearing, Judge Osteen also found that STALLINGS failed to pay employment taxes between the end of 2012 and the end of 2014, and the Court considered that additional tax loss as relevant conduct when imposing a sentence. STALLINGS was ordered to pay $843,616 in restitution to the IRS.
The case was investigated by IRS-CI, and prosecuted by Assistant U.S. Attorney Tanner Kroeger.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Nine Indicted in Connection with Identity Theft and Bank Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Nine men have been charged in a 13-count indictment for their roles in a wide-ranging bank fraud and identity theft scheme that affected hundreds of victims, including in Onondaga and Albany Counties.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; William F. Sweeney, Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Sheriff Robert L. Langley, Jr., of the Putnam County Sheriff’s Department.
The nine defendants are:
- TYRONE PARKER, JR. a/k/a “Ty,” a/k/a “Cheese,” a/k/a “Little Thigh,” age 21, of Fort Lauderdale, Florida;
- JOSHUA MALLORY, a/k/a “P,” a/k/a “Pudge,” age 35, of Fort Lauderdale;
- TYRONE PARKER, a/k/a “Tyron Parker,” a/k/a “Thigh,” age 39, of Fort Lauderdale;
- RANDALL TAYLOR, a/k/a “Gucci,” a/k/a “Guwop,” age 34, of Fort Lauderdale;
- CEDRIC LYNCH, a/k/a “City,” a/k/a “C,” age 35, of Orlando, Florida;
- TERRELL MCDONALD, a/k/a “Ruger,” a/k/a “Moon,” age 30, of Troy, New York;
- KEYSHAWN ARNOLD, a/k/a “Key,” age 23, of Schenectady, New York;
- ROBERT NATSON, a/k/a “Big Rob,” age 34, of Fort Lauderdale; and
- GARY GRIER, a/k/a “G,” age 34, of Fort Lauderdale.
Each of the defendants is charged with conspiracy to commit bank fraud and aggravated identity theft. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
As alleged in the indictment, the defendants were involved together in a fraud scheme known as “Felony Lane Gang.” Such schemes are characterized by members of the conspiracy using stolen identification from one victim to conduct fraudulent transactions using checks and credit cards stolen from another victim. The mobile identity theft ring traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, outdoor recreational parks, and dog parks. After committing these “smash-and-grab” vehicle thefts, members of the conspiracy stole debit cards, credit cards, check books, and photo identifications, which they later used to commit bank fraud, sometimes even years later. The leaders of the scheme recruited women, whom they often referred to as “faces,” to impersonate the smash-and-grab victims in drive-through bank lanes. The recruited check cashers were almost always suffering from an addiction to a controlled substance and were provided payment at least partially in narcotics.
The defendants were collectively involved in more than 700 smash-and-grab thefts and approximately 1,000 fraudulent bank transactions in the Northern District of New York and all over the country, with losses exceeding $1.5 million.
McDonald was arrested in Troy; Mallory, Parker, Lynch, and Grier were arrested in Florida; Taylor was arrested in Utah; and Parker, Jr. was arrested in Georgia. Arnold was in New York State custody on unrelated state charges and will come into federal custody at a later date.
If convicted of the charges set forth in the indictment, the defendants each face up to 30 years in prison, and a mandatory minimum sentence of 2 years on each aggravated identity theft count. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
The case is being prosecuted by Assistant U.S. Attorney Andrew D. Beaty.