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1 September 2020
Two Men Plead Guilty to Drug Trafficking in Operation Dirty BirdRead the Press Release
TEXARKANA, Texas – Two Texas men have pleaded guilty to drug trafficking in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Rodolfo Javier Falcon, 36, of Titus County, Texas, pleaded guilty to conspiring to distribute controlled substances before U.S. Magistrate Judge Caroline M. Craven on August 20, 2020. Falcon agreed to forfeit $5 million in drug proceeds.
Jose Armando Rosales-Bernal, 27, of Dallas County, Texas, pleaded guilty to conspiring to distribute controlled substances before U.S. Magistrate Judge Caroline M. Craven on September 1, 2020. Rosales-Bernal agreed to forfeit $4 million in drug proceeds; $234,971.00 in U.S. currency; his home in Dallas, Texas; numerous firearms; two luxury watches; a gold necklace with a rooster-shaped pendant covered in jewels; and three vehicles, including a Dodge Charger Hellcat.
According to information presented in court, Falcon, Rosales-Bernal, and others conspired to distribute more than 150 kilograms of Mexican cocaine in Dallas, East Texas, and beyond. In fact, Falcon and others—including two children—were stopped in Tennessee carrying nine kilograms of cocaine to distribute in North Carolina. The organization was also responsible for shipping drug proceeds, in the form of bulk cash, back to Mexico. For example, law enforcement intercepted one bulk cash shipment of approximately $350,000.00. Rosales-Bernal and Falcon both occupied leadership roles in the drug trafficking organization, which also distributed methamphetamine. During the investigation, law enforcement observed several members of the organization—including Rosales-Bernal—carrying firearms. Rosales-Bernal admitted that he possessed multiple firearms because he knew that the large quantity of drugs being trafficked by the organization made their activities inherently dangerous. Rosales-Bernal also described how he spent his drug proceeds on lavish lifestyle items, including a Dodge Charger Hellcat, flashy watches, a jewel encrusted rooster necklace, and numerous pairs of shoes and boots.
Under federal statutes, Falcon faces at least 10 years and up to life in federal prison at sentencing; Rosales-Bernal faces at least five years and up to 40 years in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
Operation Dirty Bird is a long-term drug trafficking and money-laundering investigation that has already led to the seizure of more than $500,000.00 in U.S. Currency, almost 40 kilograms of cocaine, more than a quarter kilogram of methamphetamine, nine firearms, and multiple vehicles.
Rosales-Bernal, Julio Villarreal, Armando Moreno Jr., Falcon, Gerardo Cabrera Ramirez, Claudia Claribel Gardea, Jose Geraldo Ornelas-Pineda, Dalia Janes Campos Rosales, Eleazar Martinez Reyes, and David Martinez were previously charged and arrested as a result of this investigation. Ornelas-Pineda and Moreno have pleaded guilty and have been sentenced. Rosales-Bernal, Villarreal, Falcon, Ramirez, Reyes, and Gardea have pleaded guilty and are awaiting sentencing. Campos Rosales and Martinez have pleaded not guilty and are awaiting trial. This case is pending in the Texarkana Division of the Eastern District of Texas.
If convicted, Campos Rosales and Martinez face a minimum of 15 years and as much as life in federal prison.
This case is being investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division and the Dallas office of Homeland Security Investigations SRT. In addition, the following agencies have played critical roles in this investigation: the Mesquite, Texas, Police Department SWAT team; the Texas National Guard; the Texas Department of Public Safety, Highway Patrol Division and Aircraft Division; the George West, Texas, Police Department; the 23rd Judicial Drug Task Force in Dickson, Tennessee; and the Mount Pleasant, Texas, Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Two Baltimore County Men Facing Federal Indictment for Murder-For-Hire, Extortion, and Related ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Clement Robert Mercaldo, Jr., age 61, of Timonium, Maryland and Stepfen Gerard Gaither, age 29, of Randallstown, Maryland, for a murder-for-hire conspiracy, use of interstate commerce facilities in the commission of murder-for-hire, collection of credit by extortion, and for interstate communications with intent to extort. Gaither is also charged for possession with intent to distribute fentanyl and heroin.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the 16-count indictment and other court documents, Mercaldo loaned money to a Baltimore County restaurant owner. The indictment alleges that from March 2019 through February 2020, Mercaldo and Gaither conspired to commit a murder in exchange for cash. Further, the defendants allegedly sent numerous text messages threatening harm to the restaurant owner, his business partner, and their families, related to non-payments of this loan. Mercaldo and Gaither allegedly discussed and planned the murder of one or both of the victims.
Finally, the indictment alleges that on June 23, 2020, Gaither possessed with intent to distribute 40 grams or more of a mixture of fentanyl and heroin.
If convicted, Mercaldo and Gaither face a maximum sentence of 10 years in federal prison for the murder-for-hire conspiracy and for use of interstate commerce facilities in the commission of murder-for-hire; a maximum of 20 years in federal prison for both collection of credit by extortionate means and for interstate communications with intent to extort. Gaither also faces a maximum sentence of 40 years in federal prison for possession with intent to distribute fentanyl and heroin. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. The defendants will have an initial appearance in U.S. District Court in Baltimore at a later date. Mercaldo and Gaither are currently detained on related federal charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Troy J. McRath Sentenced for Conspiracy to Distribute 50 Grams or More of MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On August 31, 2020, Troy J. McRath, 43, of Elizabethton, was sentenced by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
On July 17, 2019, McRath was found guilty at trial of conspiracy to distribute 50 grams or more of methamphetamine. McRath is sentenced to serve 240 months in prison for his role in a conspiracy to distribute methamphetamine in the Eastern District of Tennessee.
In the spring of 2017, multiple local and federal agencies worked together to develop suspects in a methamphetamine distribution conspiracy in Elizabethton, Tennessee. Through the investigation, McRath was determined to be involved in the drug conspiracy. McRath purchased methamphetamine and then redistributed the methamphetamine to drug users in Elizabethton.
This investigation was the product of a partnership between the DHS-HSI, DEA, and Elizabethton and Carter County Joint Drug Task Force. Assistant U.S. Attorneys Meghan L. Gomez and Andrew C. Parker represented the United States in court proceedings.
The investigation resulted from the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Third major takedown of drug trafficking ring nets 14 arrestsRead the Press Release
(Seattle) - The third major drug ring takedown in as many months resulted in 14 arrests today of members of the drug trafficking network. U.S. Attorney Brian T. Moran and DEA Special Agent in Charge Keith Weis announced the culmination of these three wiretap investigations. Those arrested today will appear in U.S. District Court in Seattle at 2:00.
“With this third law enforcement takedown in six weeks, we continue to root out those who seek to poison our communities with fentanyl, heroin and methamphetamine,” said U.S. Attorney Moran. “Despite the challenges of tracking criminal activity during a pandemic, the dedicated men and woman of law enforcement continue to investigate and interdict drug shipments while building legal cases against these defendants.”
“Even during this Covid-19 crisis, these alleged drug traffickers preyed on Washingtonians, using extraordinary violence to increase their wealth and power,” said DEA Acting Administrator Timothy J. Shea. “However, as this operation shows, DEA and our law enforcement partners will never stop working – even during a global pandemic – to protect the communities we serve. Operation Lockdown successfully removed a number of violent drug traffickers from the streets of the Seattle-Tacoma area, and will enable these communities to focus on what matters most – the health and safety of their loved ones.”
“With today’s operation we have surpassed 60 arrests of members of highly organized transnational groups with tentacles reaching from Mexico to Puget Sound. They profit by pushing extremely dangerous narcotics such as methamphetamines, heroin and the worst of the worst – fentanyl,” said DEA Special Agent in Charge Keith Weis. “With our partners, even before today’s action, we took over 300 pounds of methamphetamine, 55 pounds of heroin, 41,200 fentanyl pills, 30 firearms; and more than $1. 3 million in drug trafficker assets off the streets. The dealers of these drugs are responsible for increasing levels of violence, addiction and overdose deaths in our communities.”
Today’s arrests come on the heels of two other major drug takedowns: On August 5, 2020, law enforcement rolled up a drug trafficking ring that distributed large amounts of fentanyl, heroin and meth in the Seattle area and North Puget Sound region. During that investigation law enforcement seized more than14 pounds of heroin and 15 pounds of methamphetamine.
On July 28, 2020, law enforcement arrested 13 people named in an indictment for drug trafficking connected to the violent CJNG Mexican cartel. Much of the drug trafficking activity in that case was in the South Sound region, including the Kitsap Peninsula. More than 100 pounds of meth were seized in that investigation, and law enforcement had to intervene at times when they heard threats being made over the wire to enforce cartel rules with violence.
Today’s takedown involves drug defendants who distributed fentanyl, meth and heroin in Seattle and North Puget Sound communities. They discussed or conducted their drug deals in a wide variety of locations, such as a Mexican restaurant in Kent, a bank parking lot at the Northgate shopping mall and a 7-11 in Snohomish County. The members of the drug distribution ring were frequently armed – one was pulled over after waving a firearm at another vehicle on I-5 North near Bellingham. In December 2019, law enforcement seized 10 kilos of methamphetamine, 1,000 fentanyl-tainted pills and a loaded firearm from the lead defendant in this case.
Those named in the indictments or taken into custody on criminal complaints week include:
Gonzalo Villasenor, 23, Lynnwood
Julio Cesar Ramirez-Meneses, 32, Kent
Jocelyn Leyva-Castellanos, 21, Lynnwood
Edgar Efren Olivas-Armenta, 43, Edmonds
Rozzy Marie McGee, 34, Everett
Emanuel Campos-Pantoja, 23, SeaTac
Francisco Javier Carrillo, 33, Marysville
Anthony Michael Shepherd, 33, Marysville
Julius B. Supnet, 27, Edmonds
Jesus Israel Tapia-Alvarado, 24, Bellevue
Bryan Michael Pollestad, 33, Everett
Travis Eugene Keel, 52, Everett
Laura Rodriguez-Moreno, 44, Marysville
Jose Morales-Flores, 39, Marysville
Omar Israel Morales, 18, Marysville
Joaquin Guerrero-Serrano, 34, Marysville
Gerardo Arias-Garcia, 32, Renton
Samantha Hernandez, 38, Lynnwood
Lionel Gonzalez-Torres, 24, Burlington
Jesus Daniel Lerma-Jaras, 40, Everett
Prior to today’s takedown law enforcement seized more than 8,000 pills tainted with suspected fentanyl, 22 pounds of heroin, 70 pounds of methamphetamine, one kilo of cocaine, two firearms and approximately $500,000 cash in drug proceeds. Today, law enforcement seized: 36 pounds of heroin, 1,600 suspected fentanyl pills, a pound of methamphetamine, and seven firearms.
“I’m grateful for the dozens of arrests and the seizure of many pounds of illegal drugs, including thousands of pills likely tainted with fentanyl,” Seattle Police Chief Adrian Diaz said Tuesday. “What’s far more difficult to count; the number of lives saved and the number of parents who have been spared the trauma of burying their child, thanks to the on-going partnerships between local and federal law enforcement agencies.”
“The Skagit County Interlocal Drug Task Force is pleased to have played a small role in this larger multi-jurisdictional law enforcement effort that will have a significant and sustained impact on the organized drug trade in Washington State,” said Tobin Meyer, Chief Criminal Deputy, Skagit County Sheriff’s Office
Due to the amount of narcotics involved in this case, some defendants face a mandatory minimum ten years in prison.
The charges contained in the indictments and complaints are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was conducted by the U.S. Drug Enforcement Administration (DEA), Snohomish Regional Drug Task Force, Seattle Police Department, Federal Bureau of Investigation and the Skagit Interlocal Drug Enforcement Unit. The investigation was supported by the High Intensity Drug Trafficking Area (HIDTA).
In addition, to the agencies listed above, these law enforcement agencies assisted with arrests and search warrants executed today: Snohomish County Sherriff’s Office, Everett Police Department, Marysville Police Department, Skagit County Sherriff’s Office, Valley SWAT, Region 1 SWAT, North Sound Metro SWAT, Olympic Peninsula Narcotic Enforcement Team, Washington State Patrol, King County Sherriff’s Office, Auburn Police Department, Kent Police Department, Federal Way Police Department, Shoreline Police Department, Renton Police Department, Bothell Police Department, Lake Stevens Police Department, Mountlake Terrace Police Department, Arlington Police Department, Snoqualmie/North Bend Police Department, Burien Police Department, Tacoma Police Department, DEA Special Response Team, Homeland Security Investigations (HSI), United States Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The case is being prosecuted by Assistant United States Attorneys Stephen P. Hobbs and C. Andrew Colasurdo.
The Department of Justice and the Federal Bureau of Investigation Announce Critical Reforms to Enhance Compliance, Oversight, and Accountability at the FBIRead the Press Release
The Department of Justice and the Federal Bureau of Investigation today announced key reforms that will empower the FBI to build a more robust internal compliance program and that will ensure, among other things, the accuracy of FISA applications, as well as the active oversight of applications targeting federal elected officials, candidates for federal elected office, and their staffs.
“Today, the Department of Justice and the Federal Bureau of Investigation press forward with Foreign Intelligence Surveillance reforms. In consultation with FBI Director Wray, I issued two memoranda — one that authorizes the establishment of an FBI Office of Internal Auditing and directs the FBI to undertake aggressive compliance measures, and the other that establishes protocols to ensure the accuracy of FISA applications and the effective oversight of any surveillance applications targeting elected officials and political campaigns,” said Attorney General William P. Barr. “FISA is a critical tool to ensuring the safety and security of Americans, particularly when it comes to fighting terrorism. However, the American people must have confidence that the United States Government will exercise its surveillance authorities in a manner that protects the civil liberties of Americans, avoids interference in the political process, and complies with the Constitution and laws of the United States. What happened to the Trump presidential campaign and his subsequent Administration after the President was duly elected by the American people must never happen again.”
“Since the Inspector General’s Crossfire Hurricane report was issued last December, I have made clear that it describes conduct that was unacceptable and unrepresentative of the FBI as an organization” said FBI Director Christopher Wray. “That’s why I immediately ordered more than 40 corrective actions, including foundational FISA reforms, many of which went beyond those recommended by the Inspector General. The FBI has been working diligently to implement these corrective actions. The additional reforms announced today, which we worked on closely with the Attorney General’s office, will build on the FBI’s efforts to bolster its compliance program. FISA is an indispensable tool that the FBI uses to protect our country from national security threats, and Americans can rest assured that the FBI remains dedicated to continuously strengthening our FISA compliance efforts and ensuring that our FISA authorities are exercised in a responsible manner.”
The first memorandum issued by the Attorney General is entitled Augmenting the Internal Compliance Functions of the Federal Bureau of Investigation. This memorandum makes significant improvements to the FBI’s internal compliance program. It authorizes the establishment of the Office of Internal Auditing to overcome a gap in auditing capability at the FBI and requires the development of compliance and oversight mechanisms, training, and internal controls to ensure the FBI’s compliance with applicable statutes, policies, procedures, and court orders that govern the FBI’s national security activities. The reforms also require the FBI to perform robust auditing functions, including, for example, routine audits of the FBI’s use of National Security Letters, compliance with the Foreign Intelligence Surveillance Act (FISA), and adherence to FISA’s minimization, targeting, and querying procedures.
The second memorandum is entitled Supplemental Reforms to Enhance Compliance, Oversight, and Accountability with Respect to Certain Foreign Intelligence Activities of the Federal Bureau of Investigation. The supplemental reforms in this memorandum build on the corrective measures undertaken by the FBI Director in his response to the December 2019 report of the Department of Justice Inspector General entitled Review of Four FISA Applications and Other Aspects of the FBI’s Crossfire Hurricane Investigation. These reforms are designed to ensure the accuracy and completeness of FISA applications targeting U.S. persons. The reforms also include oversight protocols to ensure that any use of FISA to surveil federal elected officials, candidates for federal elected office, or their advisors or staff is justified, non-partisan, and based on full and complete information. Finally, the memorandum requires the FBI to develop procedures to prevent United States persons from becoming unwitting participants in malign influence operations by foreign powers and to review its disciplinary policies and procedures to ensure appropriate disciplinary action for those who knowingly misrepresent facts to the Foreign Intelligence Surveillance Court.
Tenderloin Drug Dealer Sentenced to More Than Two Years in Prison for Trafficking Heroin in A School ZoneRead the Press Release
SAN FRANCISCO – Darwin Villatoro pleaded guilty and was sentenced today to two years and four months in prison for possessing with intent to distribute heroin, possessing with intent to distribute heroin in a school zone, and possessing with intent to distribute cocaine base, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux.
According to the United States’ sentencing memorandum, Villatoro, 29, of Honduras, was arrested three times between January 2019 and January 2020. The first arrest occurred on January 28, 2019, when San Francisco Police Department officers observed Villatoro in the 300 block of Golden Gate Avenue in violation of a previous order. The order required Villatoro to stay at least 150 yards away from the intersection of Golden Gate Avenue and Larkin Street. When officers attempted to approach Villatoro, he fled on foot and discarded his backpack. After a brief chase, the officers arrested Villatoro and searched his backpack, which contained 22 bindles of heroin, five bindles of methamphetamine, and 10 bindles of cocaine base.
The second arrest occurred on October 26, 2019. On that date, officers observed Villatoro at the intersection of Golden Gate Avenue and Larkin Street, which is within 1,000 feet of both the Tenderloin Community Elementary School and the N. Helen Diller Civic Center Playground. According to papers filed by the government, officers knew Villatoro was the subject of multiple outstanding felony warrants. When officers approached Villatoro, he fled and threw a plastic baggie to the ground. Officers arrested Villatoro and recovered 26 bindles of heroin and eight bindles of cocaine base from the plastic baggie.
The third arrest, on January 27, 2020, occurred after officers observed Villatoro walking on the 300 block of Golden Gate Avenue, in violation of an active stay away order from that location. Officers arrested Villatoro, who, on that occasion, possessed 75 bindles of cocaine base, 13 packages of fentanyl, 22 bindles of heroin, and 11 individually wrapped packages of methamphetamine.
On February 13, 2020, a federal grand jury indicted Villatoro, charging him with possession with intent to distribute heroin, possession with intent to distribute heroin within 1,000 feet of a school or playground, and possession with intent to distribute cocaine base, all in violation of 21 U.S.C. § § 841(a)(1) and (b)(1)(C). Villatoro pleaded guilty to all three counts. The defendant has been in custody since March 16, 2020 and will begin serving his sentence immediately.
San Francisco’s Tenderloin neighborhood has been especially severely impacted by illegal drug dealing. “San Francisco’s Tenderloin neighborhood is known to users and dealers throughout the Bay Area as a place to buy illegal drugs,” according to local law enforcement. Indeed, more than half of all the drug sales incidents booked or cited by the San Francisco Police Department took place in the Tenderloin district—specifically, “56 percent … by far the highest of any police district in the City” in fiscal year 2017–2018.
Assistant U.S. Attorney Yoosun Koh is prosecuting the case. The prosecution is the result of an investigation by the Drug Enforcement Administration and the San Francisco Police Department. This case is part of the Federal Initiative for the Tenderloin, a multi-agency effort spearheaded by the U.S. Attorney’s Office focusing on fighting crime in the Tenderloin neighborhood of San Francisco.
Ten Men Arrested, Charged with Attempted Enticement of a Child to Engage in Sexual ActivityRead the Press Release
SPRINGFIELD, Ill. – U.S. Attorney John Milhiser and FBI Springfield Special Agent in Charge Sean M. Cox announced that 10 men were arrested over the weekend in Springfield, Ill., and charged in separate criminal complaints with attempted enticement of a child to engage in sexual activity. The complaints were unsealed on August 31, throughout the day, as each made their respective initial appearance in federal court in Springfield, before U.S. Magistrate Judge Tom Schanzle-Haskins via video teleconference. Each was ordered detained pending hearings scheduled for later this week.
According to the affidavits filed in support of the complaints, each of the men allegedly used various social media applications to contact and engage with individuals whom they believed to be minors, under the age of 18 with the intent of meeting to engage in sexual activity.
The charges are the result of investigation by the Federal Bureau of Investigation with the assistance of the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and, the Illinois State Police. Assistant U.S. Attorney Tanner K. Jacobs is representing the federal government in the case prosecutions in coordination with Assistant State’s Attorney Brian Shaw of the Sangamon County State’s Attorney’s Office.
The defendants charged with attempted enticement of a child to engage in sexual activity are:
- Charles E. Brinkley, 51, of Festus, Mo., presently working in Jacksonville, Ill.;
- Rafael Mercado Berrios, aka Jose Berrios, 41, of the 1200 block of N. 4th St., Springfield;
- Zachary Jones, 33, of the 200 block of S. Parker Ave., Springfield;
- James Simons, Jr. 28, of the 200 block of N. Illinois St., Springfield;
- Matthew Faubel, 49, of the 300 block of N. Lincoln Ave., Springfield;
- Jason King, 35, of Assumption, Ill.;
- Matthew Wetzel, 35, of the 800 block of W. Edwards St., Springfield;
- Shondell Hodges, 47, of Chicago;
- Stacey Furlow, 59, of the 3700 block of Peoria Rd., Springfield; and,
- James Hammonds, 20, of the 1800 block of Gregory Ct., Springfield.
If convicted, for the offense of attempted enticement of a minor, each defendant faces a minimum of 10 years and up to life in prison.
Members of the public are reminded that a complaint is merely an accusation; each defendant is presumed innocent unless proven guilty.
These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
St. Paul Man Sentenced to 10 Years in Prison for Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of BRANDON JAMES JOTBLAD, 29, to 120 months in federal prison for possession of child pornography. JOTBLAD pleaded guilty and was sentenced yesterday before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
“Downloading sexually explicit images or videos involving children is not victimless crime. These are real children who are re-victimized every time the images are downloaded and shared,” said United States Attorney Erica H. MacDonald. “Individuals who chose to participate in this type of victimization will face significant prison time.”
According to the defendant’s guilty plea and documents filed with the court, on July 30, 2019, JOTBLAD knowingly possessed video files containing visual depictions of a minor engaging in sexually explicit conduct. During this time JOTBLAD was on probation for a prior Ramsey County felony conviction for possession of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was the result of an investigation conducted by the FBI, the St. Paul Police Department, and the Minnesota Bureau of Criminal Apprehension, with assistance from the Minnesota Attorney General’s Office and the Anoka County Attorney’s Office.
This case was prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
Defendant Information:
BRANDON JAMES JOTBLAD, 29
St. Paul, Minn.
Convicted:
- Possession of child pornography, 1 count
Sentenced:
- 120 months in prison
- 15 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
South Philadelphia Drug Trafficking Ringleader Sentenced to 25 YearsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Antoine Clark, 31, of Philadelphia, PA, was sentenced to 25 years in prison, 10 years of supervised release, and ordered to pay a $1,700 fine by United States District Court Judge Gerald J. Pappert for multiple narcotics offenses related to his role in leading an almost around-the-clock drug delivery service for several years in South Philadelphia.
Clark and his codefendants, Gerald Spruell, 33, and Daniel Robinson, 37, were convicted after more than two weeks at trial of charges that included conspiracy to distribute controlled substances, and distribution or possession with intent to distribute crack cocaine and heroin.
Between 2014 and 2016, the defendant and his co-conspirators, including Spruell, Robinson, and several others who pleaded guilty to similar charges before trial, were known as the “Friends” and the “7th Street” drug trafficking group. Members of the group delivered crack cocaine and heroin to customers along the 7th Street corridor in South Philadelphia using a shared drug phone to take orders and communicate with customers; they would pass the phone off in shifts to keep their operation going almost 24 hours per day. During the course of the investigation, FBI agents intercepted phone calls and text messages from the phone, which documented the defendants’ illicit activities.
“Drug trafficking is an insidious, dangerous activity that ruins neighborhoods,” said U.S. Attorney McSwain. “Antoine Clark was an expert at it, and now he will pay the price -- to the tune of 25 years. That is the sort of just punishment that awaits drug dealers in federal court. My Office is determined to protect communities ravaged by the drug trade by investigating and destroying drug trafficking organizations like the 7th Street organization.”
“The FBI is committed to keeping communities safe from predators like Antoine Clark,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Today’s sentence sends the message to drug organizations and gang members that if you traffick in illegal drugs, we will hunt you down and bring you to justice.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Matthew Newcomer and Jason Grenell.
Son of Drug Kingpin Sentenced to More Than Five Years in PrisonRead the Press Release
A man who assisted a multinational drug trafficking organization was sentenced today to more than five years in federal prison.
Jose Leonardo Alvarez, age 25, from Riverside, California, received the prison term after a March 13, 2020 guilty plea to conspiracy to distribute methamphetamine.
In 2013, Jose Maria Valencia, Alvarez’s father, was sent to California state prison after being convicted of conspiracy to commit murder. Despite his incarceration, Valencia continued to run his drug trafficking organization. He ultimately directed the distribution of more than 250 pounds of ice methamphetamine from his prison cell. Valencia relied on family members, such as Alvarez, to assist him with the drug trafficking. Alvarez traveled to Iowa on multiple occasions to serve as Valencia’s eyes and ears, and reported back to Valencia on the status of organization. Alvarez also collected money from the sale of methamphetamine in Iowa. Alvarez was a fugitive for more than two years until his arrest in September 2019.
Alvarez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Alvarez was sentenced to 70 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Alvarez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2041.
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Sixth Nigerian Co-Conspirator Sentenced to Federal Prison in Nationwide Identity Theft and IRS Tax Fraud SchemeRead the Press Release
MEDFORD, Ore.—Oluwole Oluwaseun Odunowo, 37, of Houston, Texas, was sentenced today to 54 months in federal prison and three years’ supervised release for his role in a nationwide conspiracy to commit mail fraud and aggravated identity theft.
According to court documents, IRS-Criminal Investigation began a lengthy investigation into the fraud scheme when, in May 2013, a victim in Medford, Oregon notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s personal identifying information including their social security numbers and dates of birth.
IRS determined the scheme required co-conspirators to amass a large supply of stolen U.S. taxpayer identities; obtain IRS filing PINs using victim identities; acquire prepaid debit cards in victims’ names; use fictitious email addresses; file fraudulent tax returns and conceal refund proceeds by wiring cash to Nigeria. Fraudulent tax returns were filed using the identities of thousands of Oregon and Washington taxpayers. In total, the scheme lasted several years and netted co-conspirators more than $11.6 million in fraudulent tax returns.
Using approximately 700 stolen identities he received from a co-conspirator, Odunowo filed fraudulent tax returns seeking over $1.5 million in refund payments. These returns resulted in nearly $403,000 in tax refunds paid by the IRS.
On September 6, 2018, Odunowo was indicted by a federal grand jury in Medford. On May 15, 2020, he pleaded guilty to conspiring to commit mail fraud, mail fraud, and aggravated identity theft.
During sentencing, U.S. District Court Judge Ann L. Aiken ordered Odunowo to pay $402,846 in restitution to the IRS.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations with support provided by the Department of Treasury, Inspector General for Tax Administration, the U.S. State Department, and the Oregon Department of Revenue Policy and Systems Unit and was prosecuted by Byron Chatfield and Gavin Bruce, Assistant U.S. Attorneys for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Six Defendants Arrested, Charged with Narcotics Conspiracy; Two of the Defendants Charged in Triple Homicide Murder, While Third Charged with Helping Murderers to Burn the Bodies and Destroy EvidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that a federal grand jury has returned a 24-count indictment charging six defendants with narcotics conspiracy, a conspiracy that ultimately led to the deaths of three individuals, and the burning of their bodies. Named in the indictment are:
• Jariel Cobb, a/k/a Doobie, a/k/a Black, 47, of Buffalo, NY; • James Reed, a/k/a Fatts, 38, of Buffalo, NY; • Jahaan McDuffie; a/k/a Wanka, 29, of Buffalo, NY; • Destenee Bell, a/k/a K, 27, of Cheektowaga, NY; • Deandre Wilson, a/k/a D, 49, of Buffalo, NY; and
• Deshema Clark, 42, of Buffalo, NY.Assistant U.S. Attorneys Brendan T. Cullinane and Michael J. Adler, who are handling the case, stated that according to the indictment, between 2014 and September 25, 2019, the defendants are accused of conspiring to sell cocaine, heroin, marijuana, and fentanyl in the Buffalo area. In furtherance of this conspiracy, defendants Jariel Cobb, James Reed, and Destenee Bell are accused of maintaining a drug involved premises by utilizing residences at 211 Box Avenue and 973 Fillmore Avenue in Buffalo, to facilitate their drug trafficking activities. Defendants Wilson and Deshema Clark are accused of utilizing 164 Parkridge Avenue, also in Buffalo, for drug trafficking activities. Defendant Jahaan McDuffie is charged with distributing significant quantities of marijuana and heroin.
The indictment further states that between September 15 and 16, 2019, defendants Cobb and Wilson committed murder while engaged in a narcotics conspiracy and Hobbs Act conspiracy. Cobb and Wilson allegedly murdered Miguel Anthony Valentin-Colon, Nicole Marie Merced-Plaud, and Dhamyl Roman-Audiffred and stole from them certain personal property, including cocaine, cellular telephones, and a white Chrysler Pacifica minivan.
Following the murders, Cobb, Wilson, and defendant Reed are accused of obstruction of justice for burning the bodies of Valentin-Colon and Merced-Plaud, and mutilating and burning the body of Roman-Audiffred. Cobb and Wilson are also accused of conspiracy to damage and destroy a vehicle used in interstate commerce by fire, and damaging and destroying a vehicle used in interstate commerce by fire. Defendant Reed is charged with being an accessory after the fact for assisting Cobb and Wilson.
“The Department of Justice has a capital case review process which culminates in a decision by the Attorney General regarding whether to seek, or not to seek, the death penalty against a particular defendant,” stated U.S. Attorney Kennedy. “That process is underway in this case as it pertains to defendants Jariel Cobb and Deandre Wilson.”
“For the families of Miguel, Nicole, and Dhamyl, we hope that the charges announced today will ease some of your suffering,” said Stephen Belongia, Special Agent- in-Charge of the FBI's Buffalo Office. “And to gang members and other violent criminals, if you choose to live a life fueled by greed and violence, you should know that the FBI and our law enforcement partners stand ready to do everything in our power to ensure you are held accountable for your crimes. While we can’t bring back Miguel, Nicole, and Dhamyl, we hope it brings the families some bit of peace to know that the Western New York law enforcement community came together and threw everything we had at this investigation.”
The indictment also seeks the forfeiture of currency and firearms which resulted from the drug trafficking activities of the defendants, including $16,900 in cash, two 9mm handguns, and 22 rounds of 9mm ammunition.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Erie County Central Police Services Forensic Laboratory, under the direction of Commissioner James Jancewicz. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
The fact that a defendant has been charged with a crime is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
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Shreveport Man with Lengthy Criminal History Sentenced in Federal CourtRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Bobby Kirkendoll, 44, of Shreveport, Louisiana, was sentenced to 162 months (13 years, 6 months) in prison, followed by 5 years of supervised release for possession of cocaine with intent to distribute and possession of a firearm by a convicted felon. United States District Judge Elizabeth E. Foote conducted the sentencing hearing. Kirkendoll previously pleaded guilty to the charges January 9, 2020.
According to information presented to the court, in April 2019, Caddo Parish Sheriff’s Office deputies attempted to stop the vehicle Kirkendoll was driving for a traffic violation. Instead of stopping, Kirkendoll drove away and a car chase ensued. During the chase, deputies observed him throw a gun onto the roadway, as well as other items, from the car. Eventually, Kirkendoll stopped the vehicle and deputies arrested him. Deputies recovered the items that Kirkendoll threw from the car, which included a Ruger pistol, a Smith and Wesson revolver, and bags. Inside the bags were drug paraphernalia and a variety of narcotics including methamphetamine, cocaine, marijuana, synthetic marijuana, and Alprazolam. The narcotics were tested by the North Louisiana Criminalistics Laboratory and it was confirmed that the substances included at least 5 grams of methamphetamine.
Kirkendoll was previously convicted in federal court for possession with intent to distribute cocaine and felon in possession of a firearm (2006). His state court convictions were for manslaughter and possession with intent to distribute cocaine (1994); second degree battery (1999); and aggravated incest (2008).
This case was investigated by the DEA and Caddo Parish Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Leon H. Whitten.
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Shelter worker admits to housing illegal teen after escape from facilityRead the Press Release
BROWNSVILLE, Texas – A 24-year-old Brownsville resident has pleaded guilty for her role in an alien smuggling incident involving a juvenile resident of the Southwest Key facility, announced U.S. Attorney Ryan K. Patrick.
Karla Izaguirre appeared in federal court today and admitted she harbored an underage undocumented boy from Honduras.
Izaguirre was an employee of Southwest Key, a government-sponsored shelter, where she had been professionally trained to work and care for illegal alien juveniles. The teen was an unaccompanied minor who entered the United States illegally and was under Southwest Key’s supervision.
On July 5, 2019, the facility sponsored an outing at the Harlingen Arts and Heritage Museum. While there, the juvenile fled on foot.
The investigation led to Izaguirre. Authorities subsequently arrested her, at which time she acknowledged knowing the minor boy was illegally present in the United States and helping to plan the escape. She also admitted she harbored him in her own home for approximately three months.
U.S. District Judge Fernando Rodriguez accepted the plea and set sentencing for Dec. 8. At that time, Izaguirre faces up to five years in federal prison and a possible $250,000 maximum fine. She will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the U.S. Department of Health and Human Services. Assistant U.S. Attorney Nikki Piquette is prosecuting the case.
Shakopee Man Charged with Being an Armed Career Criminal in Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging MICHAEL ALLEN BURRELL, 40, with one count of possession of a firearm by a convicted felon. BURRELL was ordered to remain in custody following a detention and arraignment hearing held today before Magistrate Judge Tony N. Leung, in U.S. District Court in Minneapolis, Minnesota.
According to allegations in the indictment, on June 23, 2020, BURRELL possessed a .45 caliber Sig Sauer semi-automatic pistol, model P250. Because BURRELL has multiple prior felony convictions he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Justin A. Wesley is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
MICHAEL ALLEN BURRELL, 40
Shakopee, Minn.
Charges:
- Felon in possession of a firearm- Armed career criminal, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Serial Bank Robber from Philadelphia Sentenced to 12 YearsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Lamar Tindall, 45, of Philadelphia, PA, was sentenced to 12 years in prison, three years of supervised release, and was ordered to pay $2,955 in restitution by United States District Court Judge Joshua D. Wolson for robbing three separate BB&T Banks over a period of ten days in May 2019.
In January 2020, Tindall pleaded guilty to three counts of bank robbery, arising from his robberies of BB&T Banks in Philadelphia on May 14, 2019; Feasterville on May 17, 2019; and King of Prussia on May 23, 2019. During each robbery, Tindall handed a threatening note to a teller in order to receive money. For example, during the robbery on May 14, Tindall handed the frightened teller a note that read, “all 50’s and 100’s or ill shoot.” Tindall made off with a total of $3,650 as a result of these robberies. Philadelphia Police Department officers later arrested Tindall, who confessed to his crimes.
Tindall has a long rap sheet, which includes convictions for drug distribution offenses in 1999 and 2010, and a conviction for robbery of property of the United States in 2002. Because of his criminal history, the Court found Tindall to be a “Career Offender” under the U.S. Sentencing Guidelines.
“Robbing any type of business – whether it’s a bank, a corner store, or anything in between – is a serious federal offense that can carry stiff penalties, as Tindall can now attest,” said U.S. Attorney McSwain. “And even the threat of having and using a firearm during a robbery, regardless of whether or not you actually have one, will multiply the penalty. I want people to know that committing a violent crime in the Eastern District of Pennsylvania carries a tremendous risk of a long prison sentence, which is the point of our anti-violence public awareness campaign. You can learn more about this campaign on our District website.”
“Serial bank robbers like Lamar Tindall terrorize our communities,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “I would like to thank our law enforcement partners who assisted in bringing Mr. Tindall to justice and making our community safer.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the Abington Township Police Department, the Conshohocken Police Department, the Lower Southampton Township Police Department, the Philadelphia Police Department, and the Upper Merion Township Police Department. The case is being prosecuted by Assistant United States Attorneys Lauren R. Baer and Kevin Jayne.
Second Minneapolis Man Charged with Armed Robbery Spree of Twin Cities BusinessesRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging DAIJON LEWIS MILES, 28, with three counts of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. MILES, who was arrested on August 27, 2020, made an appearance today before Magistrate Judge Tony N. Leung in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the criminal complaint and law enforcement affidavit, on July 28, 2020, between 2:16 p.m. and 8:55 p.m, MILES used force, violence, and fear of injury to commit three armed robberies of businesses located in St. Paul and Minneapolis, including one gas station and two liquor stores.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Fridley Police Department, the Brooklyn Center Police Department, the New Hope Police Department, and the St. Paul Police Department. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Justin A. Wesley is prosecuting the case.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
DAIJON LEWIS MILES, 28
Minneapolis, Minn.
Charges:
- Hobbs Act robbery, 3 counts
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rockford Man Indicted on Charges of Transmitting Threats to Law Enforcement OfficerRead the Press Release
ROCKFORD — GIANNI GASPARE ANTHONY CARDENAS, 25, of Rockford, was indicted today by a federal grand jury in Rockford on two counts of transmitting threats in interstate commerce to injure another person.
The indictment alleges that in February 2018 a federal law enforcement officer interviewed Cardenas at a county jail regarding whether Cardenas had any information about the whereabouts of a federal fugitive. According to the indictment, Cardenas told the law enforcement officer during the interview that Cardenas would “kick [the officer’s] [expletive]” when Cardenas got out of jail. The indictment alleges that in June 2019 Cardenas emailed the law enforcement officer seeking to arrange a meeting with the officer so that Cardenas could “clear [his] name.” The indictment further alleges that on or about Oct. 20, 2019, after the officer did not respond to Cardenas’s earlier emails, Cardenas sent two threatening emails to the officer. The first email allegedly stated, among other things, “Hopefully we can meet again this time with me not being in handcuffs[.]” The second email, sent less than 20 minutes later, allegedly stated, “I’ll kill you[.]”
Arraignment via videoconference is set for Sept. 16, 2020, at 9:30 a.m., before U.S. Magistrate Judge Iain D. Johnston.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Talia Bucci.
Each count in the indictment carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Rock Hill Men Sentenced to More than 20 Total Years in Federal Prison on Drug and Money Laundering ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Brandon Marquis Kimble, 30, and Cravelyn Squilla Davis, 25, both of Rock Hill, were sentenced in federal court after pleading guilty to conspiracy to possess with the intent to distribute controlled substances and money laundering. Kimble was sentenced to 11 years, and Davis was sentenced to 12 years.
Evidence presented to the court showed that this case stemmed from a joint investigation by the Federal Bureau of Investigation (FBI) and the Rock Hill Police Department into individuals who were obtaining large amounts of cocaine, methamphetamine, and marijuana from a distributor in Southern California. Some of these individuals were flying to California and shipping the drugs back to the Rock Hill area, including Charlotte, N.C. Kimble and Davis were a part of this organization, which later began to obtain fentanyl and began to press fake prescription pills that were sold on the streets.
United States District Judge Mary G. Lewis sentenced Kimble to 132 months in federal prison and Davis to 144 months in federal prison, with both sentences to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), Rock Hill Police Department, and York County Sheriff's Office. Assistant United States Attorneys William K. Witherspoon, T. DeWayne Pearson, and Elliott B. Daniels, all of the Columbia office, prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Riverton Man Pleads Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
SALT LAKE CITY – Justin Peck, 47, of Riverton, entered a plea of guilty to one count of operating an unlicensed money transmitting business in federal court in Utah recently, admitting that he owned several companies that were operating as unlicensed money transmitting businesses from as early as 2012 through sometime in 2019.
As a part of a plea agreement reached with federal prosecutors, Peck stipulated that his companies that did not comply with federal law and regulations for money transmitting business registration requirements.
Specifically, Peck admitted he received checks from general contractors for drywall labor. He cashed those checks and deliver the money to subcontractors or other individuals who were responsible for paying the laborers. For his services, Peck would keep a fee of 6-10% of the contractor’s check. From 2012 through 2019, Peck transmitted at least $58,248,103.38.
Investigators believe the purpose of the business was to avoid employment taxes and higher workers compensation premiums.
Peck waived indictment and was charged in a Felony Information filed in July 2020.
Peck earned significant income through his business and failed to report it on his personal taxes. As a part of his plea agreement, Peck agreed to file accurate and complete personal tax returns for the tax years 2012-2017. He also agreed to forfeit his interest in property.
He faces up to five years in prison when he sentenced Nov. 5, 2020, by U.S. District Judge Howard C. Nielson, Jr.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Special agents with IRS-Criminal Investigation are investigating the case.
Pittsburgh Felon Charged with Illegally Possessing Fentanyl, Heroin, Firearm and AmmuntionRead the Press Release
PITTSBURGH, PA. One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment named Herbert Walker, 25, as the sole defendant.
According to the Superseding Indictment, Walker is alleged to have possessed with the intent to distribute fentanyl and heroin and possessed a firearm and ammunition as a convicted felon.
The law provides for a maximum total sentence of sixty years in prison, a fine of $5,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allegheny County Police Department conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pike County Man Sentenced to 30 Years in Prison Following Federal Gun and Drug ConvictionsRead the Press Release
Montgomery, Alabama – On Friday, August 28, 2020, Osie Lee Davis., a 49-year-old resident of Troy, Alabama, was sentenced to 360 months in prison following federal gun and drug convictions, announced United States Attorney Louis V. Franklin, Sr., ATF Acting Special Agent in Charge Toby C. Taylor, and Troy Police Chief Randall Barr. Davis was also ordered to serve six years of supervised release after he completes his prison sentence. There is no parole in the federal system.
Based on his substantial criminal history, which included at least eight prior felony drug convictions, the judge determined that Davis qualified as a career offender under the federal sentencing guidelines and was subject to sentencing enhancements under the Armed Career Criminal Act of 1984. These rulings significantly increased the guidelines range for Davis and resulted in a 30-year sentence.
Evidence presented during Davis’ October 2019 trial showed that just before midnight on January 31, 2017, the Troy Police Department observed Davis driving a vehicle with the headlights off and performed a traffic stop. The officer discovered that Davis had a suspended license and outstanding arrest warrants. When officers took Davis into custody and searched him, they discovered multiple drugs, which were packaged for sale, inside a pouch in his jacket pocket. The narcotics included marijuana, methamphetamine, cocaine, and clonazepam. A handgun was also found next to the driver’s seat of the vehicle. Davis has multiple previous felony convictions and is prohibited by federal law from possessing a firearm.
A second encounter with law enforcement occurred on October 5, 2018 in Troy, just after midnight. Troy police conducted a traffic stop due to a headlight being out and, while arresting Davis for yet another outstanding warrant, they found cocaine and marijuana in the vehicle. Once Davis was taken into custody and booked into the Troy City Jail, several additional baggies of cocaine, which were packaged for sale, were discovered in one of his shoes.
The Troy Police Department joined with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to investigate and ultimately bring the case up for federal prosecution. After hearing all the evidence from the Troy Police Department and ATF during his trial, a federal jury found Davis guilty on six counts of possessing illegal drugs with intent to distribute, one count of being a felon in possession of a firearm, and one count of possessing a firearm in connection with a drug trafficking offense.
“Drug trafficking encompasses more than simply selling narcotics, it also tears families apart, destroys lives, and heightens the potential for violence throughout our communities,” stated U.S. Attorney Franklin. “Mr. Davis has a long history of criminal conduct that spans decades. He has multiple convictions for drug distribution and has had numerous opportunities to change, but each time he chose to return to the same way of life. Thirty years is a significant sentence, but it is one that Mr. Davis earned for himself. I would like to thank the agencies involved in this investigation and I am grateful that Mr. Davis will no longer be a threat to the citizens of Troy and the surrounding communities.”
“Removing the criminal element that uses a firearm to facilitate violent crimes is a priority of ATF,” stated ATF Acting Special Agent in Charge Toby Taylor. “This focused investigation of an individual with an extensive criminal history will have a lasting impact within this community.”
“This is a significant arrest that will go a long way in making our streets and our community safer,” said Troy Police Chief Randall Barr. “Davis has proven that after multiple convictions he has no intention of changing his ways and continues to distribute dangerous illegal drugs. The sentence handed down in this case sends a strong message that this type behavior will not be tolerated. We truly appreciate the cooperation and hard work invested in this case by everyone involved to bring this case to a successful end.”
The Troy Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorneys Eric Counts and Robert Nichols prosecuted this case.
Owner of Japanese fishing vessel charged with unlawful trafficking of shark finsRead the Press Release
HONOLULU – Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court today with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act.
The charge arose from the November 2018 discovery of approximately 962 shark fins weighing approximately 190 pounds from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (“Kyoshin Maru”). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about November 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic white tip shark has declined by approximately 80-95% across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In announcing the charge, U.S. Attorney for the District of Hawaii, Kenji M. Price stated: “Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem. My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
United States laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass; and the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark—including three species found among the fins at issue in this case—are protected under the CITES Convention.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service; and the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
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 District of New Mexico. Operation Legend was launched in Albuquerque on July 22, 2020, in response to the city facing a record-breaking homicide rate.
United States vs. Manuel A. Chavira
“Cases like this one are what Operation Legend is all about. The violent and unprovoked actions described in the complaint contribute to the growing perception that Albuquerque is a dangerous city in which violent crime continues unchecked and out of control,” said U.S. Attorney John C. Anderson for the District of New Mexico. “Operation Legend sends a strong message that federal law enforcement, working in concert with their state and local partners, will not stand idly by while the residents of Albuquerque live in fear of falling victim to senseless violence. I commend the FBI and the New Mexico State Police for their seamless investigation and diligent pursuit of this defendant.”
Manuel A. Chavira, 25, was charged on Aug. 3, 2020, with carjacking and discharging a firearm during and in relation to a crime of violence according to a criminal complaint filed in the U.S. District Court of New Mexico. The Federal Bureau of Investigation (FBI) and New Mexico State Police Department (NMSP) launched an investigation and search for Chavira. Chavira surrendered in Las Cruces, New Mexico, on Aug. 20, 2020.
According to the criminal complaint, on July 18, 2020, Chavira approached two female victims who were in their vehicle in the parking lot of a church at the San Jose De Armijo Cemetery in the South East area of Albuquerque. Chavira initially asked if he could charge his phone in the vehicle. As the phone would not charge, he asked to borrow the driver’s phone, ostensibly to find a tow truck for his vehicle. The driver complied, and he used the phone to make a number of calls.
After the driver exited her vehicle to remove a sweater from her trunk, however, Chavira brandished a firearm and told her that he needed to take her vehicle. The passenger protested, but the driver removed her keys from the ignition to give them to Chavira. Chavira reportedly then racked the slide on the firearm, an indication that he had chambered a round of ammunition. Chavira then pointed the firearm, shouting, “Do you want me to shoot her? Do you want me to shoot her?” Both victims fled, at which point they heard gunshots being fired.
The victims described the firearm as black and possibly .22 or .25 caliber. The victims were able to identify Chavira from photos as the suspect. Chavira left the scene driving the victims’ blue 2019 Honda Civic SI.
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 he slept in his home.Since Operation Legend’s launch in Kansas City, Mo., on July 8, 2020, it has 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. Marshal Service, DEA and ATF to surge resources these cities to help state and local officials fighting violent crime. Since its inception, Operation Legend has yielded close to 1500 local, state, and federal arrests.
Operation LeGend Results in 355 Arrests, Including 33 Murder SuspectsRead the Press Release
KANSAS CITY, Mo. – U.S. Attorney Tim Garrison announced today that 355 arrests have been made by local and federal law enforcement officers in Operation LeGend.
Among those arrested since the launch of the operation, 88 are federal defendants in the Western District of Missouri and 21 are federal defendants in Kansas (18) and Texas (3). Among the remaining 246 arrests, 33 were homicide cases and 62 were fugitives with either state or federal warrants for their arrest. The remaining 151 non-fugitive arrests were either supervised release violators or were referred for prosecution in state court.
In addition to the arrests, agents and officers have seized 122 firearms during Operation LeGend.
The U.S. Attorney’s Office is not able to track cases that are referred for prosecution in state court or in other districts. Defendants have been charged in the Western District of Missouri with the following federal crimes: - 35 defendants have been charged with being a felon in possession of a firearm; - 26 defendants have been charged with drug trafficking; - Five defendants have been charged with being a drug user in possession of a firearm; - Six defendants have been charged with being in possession of a firearm in furtherance of drug trafficking; - Five defendants have been charged with being in possession of a firearm in furtherance of violent crime; - Two defendants have been charged with being a felon in possession of ammunition; - Four defendants have been charged with armed robbery; - Three defendants have been charged with carjacking; and
- Two defendants have been charged with arson.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Ohio man indicted on carjacking and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ryan Ashley Hubbs, of Paris, Ohio, is facing federal charges involving a carjacking and firearms, U.S. Attorney Bill Powell announced.
Hubbs, 37, was indicted today on one count of “Unlawful Possession of Firearm,” one count of “Carjacking,” and one count of “Use of Firearm During Crime of Violence.” Hubbs, who is prohibited from having a firearm because of a previous crime, is accused of using a .380 caliber pistol to steal a Honda CR-V in Lewis County in October 2016.
Hubbs faces up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession and carjacking charges. He no less than seven years of incarceration and a fine of up to $250,000 for the violence crime charge. 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 Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Lewis County Sheriff Office; and the Weston Police Department and investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
North Texas Men, Including a Head Pastor of a Church, Indicted on Child Pornography ViolationsRead the Press Release
PLANO, Texas – Two North Texas men have been charged with child exploitation crimes in the Eastern District of Texas announced U.S. Attorney Stephen J. Cox today.
David Pettigrew, 48, of Denison, Texas, and Chad Michael Rider, 46, of Anna, Texas have been charged in an indictment returned by a grand jury with conspiring to sexually exploit children (also referred to as production of child pornography). Pettigrew was additionally charged with transporting child pornography. Both men have entered “not guilty” pleas to the charges.
Pettigrew came to the attention of law enforcement officials through referrals sent by two electronic surveillance providers and the National Center for Missing and Exploited Children. Those referrals identified a computer user who uploaded suspected child pornography onto their online platforms. On August 6, 2020, Homeland Security Investigations agents executed federal search warrants at Pettigrew’s residence and the Denison Church of the Nazarene, after which, agents arrested Pettigrew. Agents executed a search warrant at Rider’s residence on August 21, 2020. Until recently, Pettigrew had served as pastor of the Denison Church of the Nazarene. Rider is a resident of Anna, Texas.
If convicted, Pettigrew and Rider face a minimum of 15 years and up to 30 years in federal prison.
The investigation has revealed that a number of children were surreptitiously photographed in private locations or outside of the presence of their parents. Any members of the public with information about this case or possible victims are urged to contact Homeland Security Investigations at [email protected]. Members of the community are urged to send a detailed message (including contact information) with information about any possible private interactions with Pettigrew or Rider to the email above.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations and the Grayson County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Marisa J. Miller and Jay Combs.
It is important to note that an indictment or arrest should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
New Haven Men Charged with Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut; Patrick Griffin, State’s Attorney for the Judicial District of New Haven; New Haven Police Chief Otoniel Reyes; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that DENZEL SUGGS, 26, and JAQUAN GRAY, 26, both of New Haven, have been arrested on federal criminal complaints charging each with possession of a firearm by a convicted felon.
Suggs was arrested on August 28 and Gray was arrested earlier today. Both are detained.
These prosecutions are part of a coordinated federal, state and local law enforcement effort to address rising gun violence in New Haven. Participating in this effort are the New Haven Police Department; the FBI’s New Haven Safe Streets/Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the New Haven State’s Attorney’s Office, and the U.S. Attorney’s Office.
As alleged in court documents and statements made in court, on July 31, 2020, law enforcement received information that several members of the “Exit 8” group were in possession of firearms near the entrance of the Essex Townhouses complex at 1134 Quinnipiac Avenue in New Haven. Members of the New Haven Police and the FBI’s New Haven Safe Streets/Gang Task Force entered the housing complex at approximately 10 p.m. and identified several Exit 8 members. Suggs and Gray ran from the scene as law enforcement arrived and ignored commands to stop. Both were quickly apprehended. A search of Suggs’ person revealed a loaded Taurus PT-22, .22 caliber firearm, and a search of a fanny pack Gray was wearing revealed a loaded Smith and Wesson Model 469, 9mm firearm, which had been reported stolen in Hamden in 2018.
It is further alleged that both Suggs and Gray have been previously convicted of state weapon and drug felony offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Suggs appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven for a detention hearing. During the hearing, the government presented evidence alleging that Suggs was present during a homicide that occurred on August 15, 2020, in New Haven.
The charge of unlawful possession of a firearm by a convicted felon carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
New Haven Cocaine Dealer Sentenced to Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC YOPP, also known as “E-Love,” 34, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to 21 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
Numerous conversations and text messages intercepted during the investigation revealed that Yopp was acquiring and distributing cocaine.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging 25 individuals with federal narcotics offenses related to the distribution of crack cocaine, cocaine and heroin. Yopp and another individual were added as defendants in a superseding indictment that was returned on November 25, 2019.
Yopp was arrested on November 26, 2019. At the time of his arrest, he possessed approximately two grams of cocaine and items used to process and package narcotics for street sale.
Yopp has been detained since his arrest. On June 10, 2020, he pleaded guilty to one count of possession with intent to distribute cocaine.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Elena L. Coronado.
New Britain Man Sentenced to 46 Months in Federal Prison for Trafficking FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS SOTO, also known as “Puchie,” 39, of New Britain, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 46 months of imprisonment, followed by three years of supervised release, for trafficking firearms.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Reyes. Court-authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates who sold drugs on his behalf. Intercepted communications also revealed that Norman Klosek of Enfield was acting as a “straw purchaser” of firearms for Reyes. Klosek, who was addicted to heroin/fentanyl, purchased and then illegally sold, or “loaned,” a total of 47 handguns to support his drug addiction.
On April 22, 2019, multiple intercepted communications revealed that Reyes and Soto were brokering a gun deal where Julio Martinez, of New Britain, arranged to purchase two firearms from Reyes and Soto for $800. On that date, Reyes picked up Klosek in Enfield and drove to a licensed gun dealer in Newington where Klosek, who had a valid state firearm permit, purchased two handguns. Klosek then provided the guns to Reyes. After the purchase, law enforcement observed Reyes, Soto and Martinez at a location on High Street in New Britain. Martinez then left the High Street location and traveled by car to a nearby grocery store. Investigators believed that Martinez was in possession of the two firearms, but Martinez, in fact, had traveled to the grocery store to use an ATM to retrieve cash for the firearms purchase. Investigators stopped and searched Martinez as he attempted to exit the store. The search revealed $850 in cash. Later that day, investigators conducted a traffic stop of Reyes’ vehicle in New Britain and seized the two firearms.
Soto, Reyes, Martinez and several co-defendants were arrested on federal criminal complaints on June 17, 2019. On that date, investigators seized two additional guns that had been purchased by Klosek.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Soto, Reyes, Martinez and 12 associates with various narcotics trafficking and firearm possession offenses.
Soto has been detained since his arrest. On December 12, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
Reyes, Martinez and Klosek also pleaded guilty. On June 30, 2020, Martinez was sentenced to 46 months of imprisonment. Reyes and Klosek await sentencing.
To date, approximately 11 of the 47 guns purchased by Klosek have been recovered by law enforcement. One gun was recovered after it was used in a shooting in Hartford on August 22, 2019.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the New Britain Police Department have provided valuable assistance to the investigation. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Morris County Resident Sentenced to 94 Months in Prison for Computer Intrusions that Targeted Two New Jersey CompaniesRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, resident was sentenced today to 94 months in prison for perpetrating a sophisticated computer hacking scheme that targeted two companies in New Jersey, U.S. Attorney Craig Carpenito announced.
Ankur Agarwal, 45, of Montville, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of obtaining information from computers and one count of aggravated identity theft. Judge Wigenton imposed the sentence today.
According to documents filed in this case and statements made in court:
Beginning in February 2017, Agarwal admitted that he physically trespassed onto a company’s premises in New Jersey (Company One). Agarwal illegally installed hardware key-logger devices onto Company One’s computers. The key-logger devices covertly recorded the keystrokes of the company’s employees and gave Agarwal their usernames and passwords. Agarwal also surreptitiously installed his personal computer and a hard drive onto the company’s computer network. Using the fraudulently obtained logon credentials of company employees, Agarwal hacked into the company’s computer network and targeted various employees, including employees developing an emerging technology. Agarwal admitted that he stole, transferred, and exfiltrated Company One’s data and information, including its emerging technology. Agarwal also created a malicious computer code designed to exfiltrate data, installed it on the company’s computer systems, and executed the code to steal and transfer data to himself.
Agarwal also admitted that he hacked into, targeted, and stole data and information from a second company in New Jersey (Company Two). Using the same general scheme, Agarwal physically trespassed onto Company Two’s premises, illegally installed hardware key-logger devices onto the company’s computers, installed his personal computer and a hard drive onto the company’s computer network, and stole, transferred, and exfiltrated Company Two’s data and information, including an emerging technology that Company Two was developing.
In furtherance of his hacking scheme against Company Two, Agarwal also obtained unauthorized access into an employee’s computer system and then fraudulently created an access badge for himself. This fraudulently obtained access badge, bearing another individual’s name, allowed Agarwal to physically trespass onto Company Two’s premises.
In addition to the prison term, Judge Wigenton sentenced Agarwal to three years of supervised release and fined him $25,000.
U.S. Attorney Carpenito credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the Cybercrime Unit in Newark.
Minnesota Woman Sentenced in Federal Firearms CaseRead the Press Release
United States Attorney Ron Parsons announced that a Brooklyn Park, Minnesota, woman convicted of Conspiracy to Make a False Statement During the Purchase of a Firearm was sentenced on August 10, 2020, by U.S. District Judge Karen E. Schreier.
Justice May Yang, age 25, was sentenced to five years in federal prison, followed by 3 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Yang was indicted for Conspiracy to Make a False Statement During the Purchase of a Firearm by a federal grand jury on June 6, 2019. She pled guilty on May 27, 2020.
On May 15, 2017, Yang went to purchase a gun in Sioux Falls, South Dakota, with an acquaintance, specifically a Ruger model SR 40, 40 caliber semi-automatic handgun bearing serial number 342-99157. Yang knew she was prohibited from purchasing a firearm because she was a fugitive from justice. Yang, along with her acquaintance, completed the ATF Form 4473 in the presence of two clerks. Yang’s acquaintance signed the Form 4473 verifying the information to be true. Question 11.a. asks: “Are you the actual transferee/buyer of the firearm(s) listed on this form?” To that question, Yang falsely marked “Yes” on behalf of her acquaintance, and her acquaintance falsely verified the answer to be true by signing the form as “Transferee/Buyer.” Yang paid for the firearm and kept it.
On May 25, 2017, Yang and her acquaintance again went to buy another firearm – a Ruger model 9E (black in color), 9 millimeter semi-automatic handgun, serial number 337-78160, with laser sight. Yang and her acquaintance knew Yang was still prohibited from purchasing firearms. To purchase the handgun, Yang’s acquaintance filled out ATF Form 4473 and falsely verified he was the actual buyer. Yang took possession of the firearm.
On August 12, 2017, Yang was shopping online. She found a previously owned gun on a website, with a location in Sioux Falls – a Ruger model SR 40C, 40 caliber, semi-automatic handgun, serial number 343-94362. Yang contacted her acquaintance and told him about the gun she wanted. Yang wired the money to her acquaintance so he could buy the firearm for her. Yang’s acquaintance picked up the wired money and went to the store, where he bought the handgun chosen by Yang. To purchase the handgun, Yang’s acquaintance filled out ATF Form 4473 and falsely verified he was the actual buyer. Yang’s acquaintance then drove to Madison, Wisconsin, where he gave the firearm to Yang.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sioux Falls Police Department. Assistant U.S. Attorney John E. Haak prosecuted the case.
Yang was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Charged with COVID-Relief FraudRead the Press Release
A Michigan man was arrested today in connection with a wire fraud scheme involving $3.1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office, and Inspector General Hannibal Mike Ware of the SBA’s Office of the Inspector General (OIG) made the announcement.
Antonio George, 44, of Novi, Michigan, was charged with a criminal complaint, unsealed today, in the Eastern District of Michigan with one count of wire fraud. He made his initial appearance today before U.S. Magistrate Judge David R. Grand.
The complaint alleges that George was the nexus in an attempt to obtain approximately $3.1 million in PPP loans through applications to insured financial institutions, and others, on behalf of 19 different companies. The complaint alleges that George provided false and misleading documents about certain of the companies’ respective business operations and payroll expenses. As an example of such false documentation, the complaint alleges that George submitted identical wage information and employee count records for two separate companies. One of those companies has allegedly not been operational since 2015.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The CARES Act also authorizes the SBA to provide Economic Injury Disaster Loans (EIDL) of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and the SBA-OIG. Trial Attorney Patrick J. Suter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John K. Neal of the Eastern District of Michigan are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Michigan Man Charged with Covid-Relief FraudRead the Press Release
A Michigan man was arrested today in connection with a wire fraud scheme involving $3.1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and Inspector General Hannibal Mike Ware of the SBA’s Office of the Inspector General (OIG), made the announcement.
Antonio George, 44, of Novi, Michigan, was charged with a criminal complaint, unsealed today, in the Eastern District of Michigan with one count of wire fraud. He made his initial appearance today before U.S. Magistrate Judge David R. Grand.
The complaint alleges that George was the nexus in obtaining approximately $3.1 million in PPP loans through applications to insured financial institutions, and others, on behalf of 19 different companies. The complaint alleges that George provided false and misleading documents about certain of the companies’ respective business operations and payroll expenses. As an example of such false documentation, the complaint alleges that George submitted identical wage information and employee count records for two separate companies. One of those companies has allegedly not been operational since 2015.
“Small businesses across Michigan have received loans from the Paycheck Protection Program, and these loans have kept these businesses alive,” stated United States Attorney Schneider. “Every dollar stolen from the program is a dollar stolen from struggling businesses in need. So to the scammers, if you think law enforcement isn’t paying attention to the damage you’re doing to Michigan business owners, you’re dead wrong and we will be coming after you.”
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The CARES Act also authorizes the SBA to provide Economic Injury Disaster Loans (EIDL) of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and the SBA-OIG. Trial Attorney Patrick J. Suter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John K. Neal of the Eastern District of Michigan are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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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Meth Dealer Sentenced to Five Years in PrisonRead the Press Release
PROVIDENCE – A Providence man who was one of twenty-six people indicted by a federal grand jury in September 2018 as the result of a series of ATF Task Force and FBI Safe Streets Task Force undercover Project Safe Neighborhoods investigations targeting individuals illegally obtaining and/or trafficking firearms, and trafficking narcotics, was sentenced today to five years in federal prison for trafficking methamphetamine.
According to court documents, in September 2018, Jason Moriera, 39, of Providence, sold an individual 56.5 grams of methamphetamine for $2,000. The transaction was monitored by members of law enforcement. The drugs were quickly seized by law enforcement.
As the result of the ATF and FBI investigations, twenty-six individuals were indicted and more than two-dozen firearms, including three AK-47 and two AR-15 assault rifles, along with significant quantities of heroin, fentanyl, crack cocaine, and methamphetamine were seized.
Many of the individuals arrested as a result of these Project Safe Neighborhoods were members of or associated with street gangs.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Moreira pleaded guilty on May 22, 2020, to possession with intent to distribute and distributing 50 grams or more of methamphetamine. Appearing today before U.S. District Court Judge William E. Smith, Moreira was sentenced to 60 months in federal prison to be followed by 4 years’ supervised release.
Moriera’s sentence is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Meridian Man Pleads Guilty under Project EJECT to Illegal Possession of Multiple FirearmsRead the Press Release
Jackson, Miss. – Marquis Howard McNeely, 38, of Meridian, pled guilty today before U.S. Chief District Court Judge Daniel P. Jordan III to two counts of possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 24, 2019, at approximately 4:00 a.m., a Lauderdale County Sheriff’s Office deputy was on patrol on Highway 19 when the deputy encountered McNeely parked in the wrong lane of traffic. He was found to be intoxicated and he was placed under arrest. A search of McNeely’s vehicle found a stolen pistol. McNeely was charged and released on bond.
On October 8, 2019 McNeely drove up to a traffic safety checkpoint being conducted by the Lauderdale County Sheriff’s Office at the intersection of State Boulevard and Chandler Road. A deputy approached McNeely’s car and immediately saw that McNeely had an assault rifle style pistol held between his right knee and the center console. McNeely was again arrested and charged.
McNeely was indicted by a federal grand jury on November 19, 2019 for being a previously convicted felon in possession of firearms. McNeely has prior felony convictions for felony DUI, aggravated assault and manslaughter. He is currently in custody and will be sentenced on November 20, 2020 by Judge Jordan. He faces a maximum penalty of ten years in prison and up to $250,000 in fines on each count.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Liberty County man sentenced to federal prison for enticing a child for sexual activityRead the Press Release
BRUNSWICK, GA: A Liberty County man will spend more than 12 years in federal prison for persuading a 12-year-old child to engage in sexual activity.
Casey Austin Desmuke, 31, of Hinesville, was sentenced to 151 months in federal prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to one count of Coercion and Enticement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Desmuke also must pay $50,000 in restitution, and after completion of his prison term must serve 10 years of supervised release. There is no parole in the federal system.
“It is the depth of depravity than for an adult to coerce a pre-teen child for his sexual gratification,” said U.S. Attorney Christine. “Our community’s most vulnerable citizens will be protected from this predator for at least the next dozen years while he’s locked away from society.”
Desmuke was arrested in July 2019 after an investigation determined he had communicated with a 12-year-old and later transported the child to his home to engage in sexual activity. He also faces pending state charges for similar activity that occurred in 2010 in Waco, Texas.
“We must diligently pursue any adult who would take advantage of a young child for sex,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No sentence could ever erase the trauma that scars a child for life. We can only take solace in the fact that Desmuke won't be able to harm another child for a long time.”
The case was investigated by the FBI, the Coffee County Sheriff’s Office and the Liberty County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo and Special Assistant U.S. Attorney Katelyn Semales.
Lexington Woman Sentenced to Nearly Six Years in Federal Prison on Drug ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Candice Johnson Dooley, 40, of Lexington, was sentenced to nearly six years in federal prison after pleading guilty to possession with intent to distribute methamphetamine and cocaine.
Evidence presented in court established that on December 21, 2018, deputies with the Lexington County Sheriff’s Department responded to Dooley’s residence in search of a fugitive. Dooley allowed law enforcement to look inside the residence, and upon entering, they observed drug paraphernalia in plain view. Law enforcement obtained and executed a search warrant on the residence and located approximately 241 grams of methamphetamine, approximately two grams of cocaine, baggies commonly used to package drugs for individual sales, and digital scales. Dooley admitted to possessing the drugs and making drug sales.
United States District Judge Mary G. Lewis sentenced Dooley to 70 months in federal prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney William K. Witherspoon of the Columbia office, along with Special Assistant United States Attorney Casey Rankin Smith of the 11th Judicial Circuit, prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Lexington Couple Plead Guilty to Fentanyl Trafficking Resulting in Serious Bodily InjuryRead the Press Release
LEXINGTON, Ky. - Sierra Monique Green, 24, and Martinus Shamar Watts, 31, both of Lexington, have pleaded guilty before U.S. District Judge Karen Caldwell, to conspiring with others to distribute 40 grams or more of fentanyl and distribution of fentanyl resulting in serious bodily injury.
According to court records, including Green’s plea agreement, from March 2019 until September 2019, Martinus Watts, Green, , and Karmon Jamel Watts, 26, conspired to distribute more than 40 grams of fentanyl. Additionally, on March 20, 2019, Martinus Watts and Green delivered approximately one-half gram of fentanyl to a victim. The victim ingested a portion of the substance and lost consciousness. First responders arrived shortly thereafter to find the victim not breathing. After administering several doses of Narcan, the victim was revived, received medical treatment and survived the overdose.
On June 20, 2019, law enforcement executed a search warrant at the residence shared by Martinus Watts and Green. Officers located $67,000 in U.S. currency, 2 loaded firearms, and various controlled substances. In their plea agreements, both Watts and Green admitted that the currency was the proceeds of their drug trafficking activity.
Martinus Watts pleaded guilty in August 2020, and Green entered her guilty plea yesterday. Karmon Jamel Watts pleaded guilty in May 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge for the Drug Enforcement Administration, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Gary Todd Bradbury.
Martinus Shamar Watts is scheduled to be sentenced on November 19, 2020. Green is scheduled to be sentenced on November 30, 2020. Each face a mandatory minimum of 20 years in prison for the crime of distribution of fentanyl resulting in serious bodily injury, and a mandatory minimum of 5 years for the conspiracy to distribute fentanyl charge. Karmon Watts faces a mandatory minimum of 5 years imprisonment for the fentanyl conspiracy. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Letter Carrier Indicted for Stealing from the U.S. MailRead the Press Release
SYRACUSE, NEW YORK – Thomas J. Joslin, age 57, of North Syracuse, New York, made his initial appearance today on charges that he stole gift cards from mail entrusted to him when he was a letter carrier for the United States Postal Service. The charges were announced by United States Attorney Grant C. Jaquith and Special Agent in Charge Matthew Modafferi, United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office.
The indictment alleges that Joslin stole gift cards from multiple pieces of mail intended for delivery to other people on various dates in 2019. The three felony charges in the indictment each carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the United States Postal Service-Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Las Vegas Tax Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas tax preparer was sentenced today by U.S. District Judge Andrew P. Gordon to 12 months and one day in federal prison, to be followed by one year of supervised release, for falsely inflating deductions in his clients’ tax returns and underreporting taxable income (and claiming false expenses) in his own tax returns, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation. Collectively, the false tax returns caused approximately $265,000 in losses to the IRS.
William Pamintuan Craig, 60, pleaded guilty on October 28, 2019, to making and subscribing a false tax return. According to court documents, since at least 2012, Craig operated a tax return preparation business in Las Vegas. When preparing his own tax returns, Craig concealed the actual revenue from his tax preparation business and claimed false work expenses. He underreported his taxable income for tax years 2012 to 2017 by a total of approximately $439,000, causing $143,237 in tax loss to the IRS. Craig also fraudulently claimed false “deductions” in his clients’ tax returns. Between 2012 and 2017, Craig caused at least $128,000 in tax loss by filing false returns for his clients.
In addition to imprisonment and supervised release, the court also ordered Craig to pay $143,237 in restitution to the IRS.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Tony Lopez prosecuted the case.
If you suspect a tax preparer or tax preparation business is not complying with the U.S. tax laws, complete and submit a Return Preparer Complaint form with the IRS. More information about reporting suspected tax fraud activity may be found at https://www.irs.gov/.
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Las Vegas Man Indicted for Scheme Targeting Church FundsRead the Press Release
LAS VEGAS, Nev. — Oluremi Akinleye, 40, of Las Vegas, made his initial appearance in federal court today for his role in a conspiracy to fraudulently obtain money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
A federal grand jury returned an indictment on August 25, 2020, which was unsealed today, charging Akinleye with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of possession of 15 or more counterfeit and unauthorized access devices, and three counts of aggravated identity theft. Akinleye was arrested on August 28, 2020. A jury trial has been set before U.S. District Judge Gloria M. Navarro on November 2, 2020.
According to court documents, from November 2017 to July 2018, Akinleye and his co-conspirators conspired to steal money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund. Both funds provide financial services to members of the religious community, including ministers. As part of the scheme, Akinleye and his co-conspirators fraudulently obtained the names and personal identifying information of certain account holders. Akinleye then used that information to impersonate those individuals, making withdrawals and transfers from their accounts. Through this scheme, Akinleye and his co-conspirators attempted to fraudulently obtain over $400,000 from the two funds.
The statutory maximum sentence is 20 years in prison for conspiracy to commit wire fraud; 20 years in prison for each count of wire fraud; and 10 years in prison for possession of 15 or more counterfeit and unauthorized access devices. The statutory minimum for aggravated identity theft is two years in prison. In addition to imprisonment, Akinleye also faces a period of supervised release, restitution, monetary penalties, and asset forfeiture.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the FBI. Assistant U.S. Attorney Simon F. Kung is prosecuting the case.
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Las Cruces man pleads guilty to Attempted Coercion and Enticement of a MinorRead the Press Release
ALBUQUERQUE, N.M. – Ismael Valdez, 37, of Las Cruces, New Mexico, pleaded guilty in federal court in Las Cruces on Aug. 27 to attempted enticement of a minor.
In the plea agreement, Valdez admitted to committing the offenses between April 29 and May 29 of this year. According to a criminal complaint, Valdez allegedly sent a sexually explicit video to an undercover law enforcement officer posing as a 13-year-old girl on a social networking application. Valdez also asked the person he thought was a child to send sexually explicit material of herself to him. Valdez arranged to meet the person he believed was a child to have sex and traveled from his home in Las Cruces to the meeting location where law enforcement agents arrested him.
Valdez is currently in custody awaiting sentencing, which has not been scheduled at this time. The plea agreement calls for a 12-year prison sentence.
FBI investigated this case. Assistant U.S. Attorney Matilda McCarthy Villalobos is prosecuting the case.
Jury Convicts Cocoa Man of Possessing A Firearm After Having Been Convicted of A FelonyRead the Press Release
Orlando, Florida – A federal jury today found Raymond Lee Kelly (52, Cocoa, FL) guilty of possessing a firearm after having been convicted of a felony. Because of his extensive criminal record, which includes drug trafficking convictions, resisting arrest with violence, battery on a law enforcement officer, and possession of a firearm in furtherance of a drug trafficking offense, Kelly is qualified as an Armed Career Criminal and faces a 15-year mandatory minimum prison sentence. Kelly was also on supervised release from a federal prison sentence when he committed the offense for which he was found guilty. His sentencing hearing is scheduled for November 17, 2020.
According to testimony and evidence presented at trial, Kelly, a convicted felon, fled from a traffic stop in Cocoa Beach, Florida. First, he crashed his vehicle shortly after fleeing. He then he fled on foot toward the beach, leaving behind cannabis, a digital scale, a Ruger semi-automatic handgun and 16 rounds of ammunition.
This case was investigated by the Federal Bureau of Investigation and the Cocoa Beach Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jonesboro Prosecutor Partners with United States Attorney's OfficeRead the Press Release
JONESBORO—A Deputy Prosecuting Attorney in Craighead County has been named a Special Assistant United States Attorney, enabling her to assist in federal prosecutions. Charlene Davidson Henry, a Jonesboro resident who has practiced law in Arkansas since 1999, has been hired by United States Attorney Cody Hiland for the Eastern District of Arkansas.
“Violent crime reduction has been the top priority of our office, and we want to continue by focusing on Craighead County,” U.S. Attorney Hiland said. “We are confident that Ms. Henry’s training and experience will make her an asset to our team and will have an impact in reducing violent crime in Northeast Arkansas.”
United States Attorney’s Offices across the nation have the ability to hire state prosecutors as Special Assistant United States Attorneys (SAUSAs). This equips state prosecutors to work federal cases while maintaining their state position. Since 2017, the Eastern District of Arkansas has emphasized partnerships with SAUSAs in order to carry an increased caseload. In 2018, federal prosecutions increased by 82%, largely based on prosecutions of felons who possess firearms. This increase resulted in federal prosecutors in the Eastern District of Arkansas having the fifth-highest caseload in the nation.
The heavy focus on prosecuting violent crime resulted in a 24% reduction in homicides in Little Rock for 2018. That same year, similar efforts in West Memphis produced a 43% decrease in homicides. Both cities also saw reductions in non-fatal shootings, terroristic acts, and battery cases. “We want these efforts with our state and local partners to continue making a difference in the communities we serve, and Craighead County is no exception,” stated Hiland.
“Ms. Henry is an outstanding lawyer. She is tough but fair, and her experience as a public defender makes her especially qualified to evaluate cases from the prosecution side,” stated Scott Ellington, Prosecuting Attorney for the Second Judicial District. “Our office is proud to participate in this joint endeavor with our federal partners by sharing the talents of one of our best prosecutors.”
Henry currently prosecutes digital crimes, sex crimes, and gun crimes for Craighead County. She has previous experience as a Task Force Coordinator for the Second Judicial Drug Task Force, where she trained Task Force members and coordinated prosecutions between multiple jurisdictions. She now serves as the Task Force Coordinator for the Second Judicial District Organized Criminal Activity Task Force, which investigates offenses including drug trafficking, money laundering, arms trafficking and possession, crimes of violence such as murder and aggravated assault, robbery, and violent street gangs. In her 13 years as a lawyer with the Arkansas Public Defender Commission, she handled cases involving capital murder, murder, rape, computer crimes, and other serious felonies. She is a graduate of East Tennessee State University and the University of South Dakota School of Law.
The firearm investigations that Henry will handle are part of Project Safe Neighborhoods, a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Judge Sentences St. Louis Man for Possession with Intent to Distribute FentanylRead the Press Release
St. Louis, MO – United States District Judge E. Richard Webber has sentenced Nicholas Simmons, 37, of St. Louis, MO, to 46 months and three years of supervised release for distribution of fentanyl. Simmons pleaded guilty in June.
FBI Special Agents received information during December of 2018, Simmons was selling capsules of fentanyl in the St. Louis area. Beginning on January 17, 2019 and continuing to April 25, 2019, the FBI made nine undercover purchases of fentanyl from Simmons, purchasing 16 – 20 capsules of fentanyl each time. On May 13, 2019, FBI Special Agents conducted surveillance of Simmons, and observed him make what appeared to be a sale of illegal drugs to another individual. As the Agents approached Simmons’s vehicle, Simmons attempted to flee the area. Simmons crashed his vehicle, at which time the Agents were able to apprehend him. The Agents located a loaded .45 caliber pistol in Simmons’ waistband, as well as 19 capsules of fentanyl in his pants pocket, and an additional 152 capsules of fentanyl in a black plastic bag in his possession. FBI Special Agents obtained a search warrant for two chases residences associated with Simmons. At one residence the Agents recovered drug paraphernalia and several firearms. At the second residence, the Agents recovered three additional firearms, approximately two kilograms of marijuana, 46 grams of cocaine, and 12 grams of crack cocaine. Agents also recovered hundreds of rounds of ammunition and drug paraphernalia during the investigation.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the St. Louis Metropolitan Police Department. Assistant United States Attorney Sara Koppenaal handled the case for the United States Attorney’s Office.
Hamburg Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Robert Chapline, 60, of Hamburg, NY, pleaded guilty, before Chief U.S. District Judge Frank P. Geraci, Jr., to production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorneys Aaron J. Mango and Caitlin Higgins, who are handling the case, stated that between February 13, 2016, and October 2, 2017, the defendant coerced a minor (Victim) to engage in sexually explicit conduct for the purpose of producing visual depictions. In February 2016, the Victim was in the care of Chapline who took photographs of the Victim getting out of a shower and then posing in a bedroom. The defendant engaged in sexual contact with the Victim on several occasions between 2012 and 2017.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Hamburg Police Department, under the direction of Chief Kevin Trask; and the Regional Computer Forensics Laboratory.
Sentencing is scheduled for December 17, 2020, before Judge Geraci.
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Four Chester County Residents Charged with COVID-19 Related Unemployment FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jennifer D’Hulster, 37, of Coatesville, PA; Zachary Gathercole, 30, of Sadsburyville, PA; Ashley Harrington, 30, of West Chester, PA; and Anthony Schweitzer, 20, also of Coatesville, PA, were charged by Complaint with fraudulently obtaining and attempting to obtain unemployment benefits related to COVID-19 emergency relief funds to which they were not entitled. Defendant D’Hulster was arrested and taken into custody this morning; the other three defendants were already in custody. All four defendants made their initial appearances in federal court today.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits was predicated on the applicant’s unemployment for reasons related to the pandemic; however, the applicant must also have been able to work each day and, if offered a job, the applicant must have been able to accept it. Once the applicant was approved to receive benefits, the applicant was required to submit weekly certifications that indicated that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and, had reported any employment during the week and the gross pay or other payments received.
The Complaint alleges that D’Hulster and Harrington assisted individuals incarcerated at Chester County Prison and other correctional institutions in fraudulent efforts to obtain Pandemic Unemployment Assistance (PUA) benefits. Harrington enabled Gathercole, who was incarcerated at Chester County Prison prior to the onset of the pandemic, to receive approximately $12,865. D’Hulster and Gathercole enabled another unidentified inmate to receive approximately $11,410 and attempted to obtain PUA benefits for another inmate. Schweitzer did not actually receive any PUA benefits, but attempted to several times. The inmates were not eligible to receive PUA benefits because they did not meet the eligibility requirements -- namely, they were not able to report to a job each day because of their incarceration.
“Sadly, fraudsters consider a national public health crisis as an opportunity to cash in,” said U.S. Attorney McSwain. “That callous attitude rips off honest taxpayers who fund relief programs and also makes it much more difficult to provide funds to those who deserve and need them. My Office will do everything in its power to ensure that coronavirus fraud scams are stopped and punished.”
“Unemployment insurance fraud has risen sharply during the COVID-19 pandemic, and investigating these types of schemes remains a priority for the Office of Inspector General. We will continue to work with our law enforcement partners to aggressively pursue allegations of criminal conduct against the Unemployment Insurance program,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“At the end of March, 2020, the United States Government invested billions of dollars in helping its citizens through the pandemic,” said Postal Inspector in Charge Damon Wood. “From the beginning, Postal Inspectors in Philadelphia, and across the country, have worked to do our part in ensuring that those investments in the American public do not fall into the hands of fraudsters and con artists. I hope that the charges announced today serve as a deterrence to those who think that stealing or obtaining funds fraudulently from the most vulnerable amongst us, pays; it doesn’t. As always, I want to thank the other agencies that assisted in this investigation and the United States Attorney’s Office which supported the investigation and will see the prosecution through.”
If convicted of the conspiracy and fraud in connection with emergency benefits charges, D’Hulster, Gathercole, Harrington, and Schweitzer each face up to 60 years’ imprisonment, a $2,000,000 fine, and five years of supervised release following any imprisonment.
This case was investigated by the United States Department of Labor – Office of Inspector General, the United States Postal Inspection Service, and the Pennsylvania Department of Labor and Industry, assisted by Chester County Prison. The case is being prosecuted by Assistant United States Attorney Anita Eve.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Four Charged for Multi-Million Dollar Elder Fraud SchemesRead the Press Release
Four individuals responsible for mass-mailing fraud schemes were charged with allegedly defrauding thousands of elderly and vulnerable victims, the department announced today. Two U.S. individuals and two Canadian individuals were charged for their roles in operating the schemes, which collectively caused tens of millions of dollars in victim losses. Two defendants were charged in the Eastern District of New York and two defendants were charged in the District of Nevada.
“Fraud schemes are intolerable, especially those that harm our nation’s seniors,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “As Attorney General Barr made clear earlier this year when he announced record results in the 2020 Elder Fraud Sweep, the Department of Justice is committed to protecting seniors. These two cases illustrate that the Civil Division’s Consumer Protection Branch, together with partners at the Postal Inspection Service, will not stop until the scourge of elder fraud is defeated.”
“These charges demonstrate the Postal Inspection Service will relentlessly pursue these fraudulent schemes until they no longer arrive in your mailbox,” said Deputy Chief Inspector Craig Goldberg of the Postal Inspection Service. “Prize notices like these are mailed in an attempt to trick our elderly and vulnerable Americans, while the perpetrators attempt to hide their involvement around the corner or around the globe. We are committed, with the Department of Justice, to protect our older Americans.”
“These individuals mailed their fraudulent prize promotions to victims in blatant defiance of prior Postal Service consent orders and agreements that prohibited them from doing so. The fact that many of the victims were elderly and vulnerable makes the defendants’ conduct particularly egregious. The Postal Inspection Service will continue its efforts to protect the public from fraud schemes and bring the perpetrators of those schemes to justice,” said Inspector in Charge Philip R. Bartlett.
Two Long-Island Residents Indicted for Multi-Million Dollar Elder Fraud Scheme
An indictment unsealed today charges Long Island residents Sean Novis, 50, and Gary Denkberg, 57, with conspiracy to commit mail fraud and multiple mail fraud and wire fraud counts for running a fraudulent mass-mailing scheme that tricked thousands of consumers into paying fees for falsely promised prizes. Novis and Denkberg made their initial appearances in U.S. District Court for the Eastern District of New York after they were arrested by United States Postal Inspectors Monday morning.
The indictment alleges that, from January 2003 to September 2016, the defendants mailed hundreds of thousands of prize notices that represented that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a small fee. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were merely mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists.
According to the indictment, Novis and Denkberg continued to operate their fraudulent mass-mailing scheme in violation of United States Postal Service cease-and-desist agreements and consent orders that they agreed to in 2012. The agreements and orders had permanently barred the defendants from mailing fraudulent prize notices.
Each charge in this case carries a statutory maximum sentence of twenty years in prison, and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Artie DeCastro and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch. The Consumer Protection Branch thanks the U.S. Attorney’s Office for the Eastern District of New York for its assistance in this case.
Canadian Nationals Charged For Long-Running Elder Fraud Schemes
In a separate indictment filed on August 5 in the District of Nevada, Canadian nationals Alex Quaglia and Patrick Fraser were charged with mail fraud and conspiracy to commit mail fraud in connection with schemes to defraud consumers by sending deceptive mailing pieces that falsely promised large cash prizes in exchange for payment of a fee. Many of the victims were elderly. The solicitations were sent using fictitious names and were designed to deceive recipients into believing that they had won hundreds of thousands or millions of dollars. To claim their winnings recipients were directed to pay a small fee. In fact, there was no cash prize sent to victims, and Quaglia, Fraser and their co-conspirators pocketed the money sent by victims.
“As alleged in the indictment, victims in Nevada, across the country, and around the world were defrauded of money in connection with the defendants’ schemes,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone.”
The scheme allegedly caused millions of dollars in losses to thousands of victims. Quaglia was charged with one conspiracy to commit mail fraud count and seven counts of mail fraud. Quaglia’s scheme is alleged to have begun as early as 2000. Fraser was charged with conspiracy to commit mail fraud with Quaglia and with a separate conspiracy charge related to a similar scheme he orchestrated after breaking away from Quaglia’s operation in 2015. Fraser was also charged with six counts of mail fraud. Each charge of the indictment carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Matt Lash and Yolanda McCray Jones of the Department of Justice Civil Division’s Consumer Protection Branch with substantial assistance from Assistant U.S. Attorney Nicholas Dickinson from the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has also provided critical support.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
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 particular, 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.
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. For more information about the U.S. Attorneys’ Offices for the Eastern District of New York and District of Nevada visit their websites at www.justice.gov/usao-edny and www.justice.gov/usao-nv.
Four Charged for Multi-Million Dollar Elder Fraud SchemesRead the Press Release
WASHINGTON - Four individuals responsible for mass-mailing fraud schemes were charged with allegedly defrauding thousands of elderly and vulnerable victims, the department announced today. Two U.S. individuals and two Canadian individuals were charged for their roles in operating the schemes, which collectively caused tens of millions of dollars in victim losses. Two defendants were charged in the Eastern District of New York and two defendants were charged in the District of Nevada.
“Fraud schemes are intolerable, especially those that harm our nation’s seniors,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “As Attorney General Barr made clear earlier this year when he announced record results in the 2020 Elder Fraud Sweep, the Department of Justice is committed to protecting seniors. These two cases illustrate that the Civil Division’s Consumer Protection Branch, together with partners at the Postal Inspection Service, will not stop until the scourge of elder fraud is defeated.”
“These charges demonstrate the Postal Inspection Service will relentlessly pursue these fraudulent schemes until they no longer arrive in your mailbox,” said Deputy Chief Inspector Craig Goldberg of the Postal Inspection Service. “Prize notices like these are mailed in an attempt to trick our elderly and vulnerable Americans, while the perpetrators attempt to hide their involvement around the corner or around the globe. We are committed, with the Department of Justice, to protect our older Americans.”
“These individuals mailed their fraudulent prize promotions to victims in blatant defiance of prior Postal Service consent orders and agreements that prohibited them from doing so. The fact that many of the victims were elderly and vulnerable makes the defendants’ conduct particularly egregious. The Postal Inspection Service will continue its efforts to protect the public from fraud schemes and bring the perpetrators of those schemes to justice,” said Inspector in Charge Philip R. Bartlett.
Two Long-Island Residents Indicted for Multi-Million Dollar Elder Fraud Scheme
An indictment unsealed today charges Long Island residents Sean Novis, 50, and Gary Denkberg, 57, with conspiracy to commit mail fraud and multiple mail fraud and wire fraud counts for running a fraudulent mass-mailing scheme that tricked thousands of consumers into paying fees for falsely promised prizes. Novis and Denkberg made their initial appearances in U.S. District Court for the Eastern District of New York after they were arrested by United States Postal Inspectors Monday morning.
The indictment alleges that, from January 2003 to September 2016, the defendants mailed hundreds of thousands of prize notices that represented that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a small fee. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were merely mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists.
According to the indictment, Novis and Denkberg continued to operate their fraudulent mass-mailing scheme in violation of United States Postal Service cease-and-desist agreements and consent orders that they agreed to in 2012. The agreements and orders had permanently barred the defendants from mailing fraudulent prize notices.
Each charge in this case carries a statutory maximum sentence of twenty years in prison, and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Artie DeCastro and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch. The Consumer Protection Branch thanks the U.S. Attorney’s Office for the Eastern District of New York for its assistance in this case.
Canadian Nationals Charged For Long-Running Elder Fraud Schemes
In a separate indictment filed on August 5 in the District of Nevada, Canadian nationals Alex Quaglia and Patrick Fraser were charged with mail fraud and conspiracy to commit mail fraud in connection with schemes to defraud consumers by sending deceptive mailing pieces that falsely promised large cash prizes in exchange for payment of a fee. Many of the victims were elderly. The solicitations were sent using fictitious names and were designed to deceive recipients into believing that they had won hundreds of thousands or millions of dollars. To claim their winnings recipients were directed to pay a small fee. In fact, there was no cash prize sent to victims, and Quaglia, Fraser and their co-conspirators pocketed the money sent by victims.
“As alleged in the indictment, victims in Nevada, across the country, and around the world were defrauded of money in connection with the defendants’ schemes,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone.”
The scheme allegedly caused millions of dollars in losses to thousands of victims. Quaglia was charged with one conspiracy to commit mail fraud count and seven counts of mail fraud. Quaglia’s scheme is alleged to have begun as early as 2000. Fraser was charged with conspiracy to commit mail fraud with Quaglia and with a separate conspiracy charge related to a similar scheme he orchestrated after breaking away from Quaglia’s operation in 2015. Fraser was also charged with six counts of mail fraud. Each charge of the indictment carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Matt Lash and Yolanda McCray Jones of the Department of Justice Civil Division’s Consumer Protection Branch with substantial assistance from Assistant U.S. Attorney Nicholas Dickinson from the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has also provided critical support.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
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 particular, 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.
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. For more information about the U.S. Attorneys’ Offices for the Eastern District of New York and District of Nevada visit their websites at www.justice.gov/usao-edny and www.justice.gov/usao-nv.
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