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Tuesday 14 July 2020
U.S. Attorney Appoints Missing and Murdered Indigenous Persons Coordinator for AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today the appointment of E. Ingrid Cumberlidge to serve as the Missing and Murdered Indigenous Persons (MMIP) Coordinator for the District of Alaska.
As the District of Alaska’s MMIP Coordinator, Ms. Cumberlidge will gather reliable data to identify MMIP cases connected to Alaska; conduct outreach with tribal communities to assist in the creation and implementation of community action plans; coordinate with tribal, local, state, and federal law enforcement in the development of protocols and procedures for responding to and addressing MMIP cases; and promote improved data collection and analyses throughout Alaska. Working in the U.S. Attorney’s Office in Anchorage, Ms. Cumberlidge will serve tribal communities and victims throughout Alaska.
“The U.S. Attorney’s Office remains committed to improving public safety in rural Alaska, and we are fortunate to have Ms. Cumberlidge join our team in this critical role,” said U.S. Attorney Schroder. “For far too long, Alaska Natives have experienced disproportionate rates of violence, which has lasting impacts on families and communities. Ms. Cumberlidge’s expertise will further strengthen our public safety partnerships in rural Alaska, so that we can maximize efforts and develop solutions to address this crisis.”
“The Department of Public Safety is eager to continue our partnership with the DOJ; we are committed to assisting Ms. Cumberlidge with fine-tuning missing persons data and identifying better ways to combat violence against Alaska’s indigenous people through prevention and holding offenders accountable,” said Commissioner Amanda Price, Alaska Department of Public Safety. “Through constructive collaborations between all levels of government, we can break down barriers of distrust, foster positive change, and build a safer Alaska.”
“Working in conjunction with our local, state and federal partners, the FBI is committed to finding ways to better protect the communities we serve,” said Robert Britt, Special Agent in Charge of FBI Anchorage. “It is imperative we work together to make certain all persons responsible for engaging in this type of criminal activity in Alaska are brought to justice. We welcome the appointment of Ms. Cumberlidge and look forward to continued collaboration on the important work of the MMIP initiative.”
Ms. Cumberlidge is an educator and Tribal Leader with over 30 years supporting her native community in Alaska. Prior to joining the U.S. Attorney’s Office, Ms. Cumberlidge served as a Tribal Judge and Chief Judge engaged in various cases including primarily child protection and protective order cases. As a Tribal Court Judicial Trainer and Advisory Council Member on the National Judicial College Tribal Council, University of Nevada, Reno, Ms. Cumberlidge has trained in the Alaskan Interior with Tanana Chief’s Conference, Southwest Alaska, the Aleutians, the Alaska Bar Association, Rural Cap, and Alaska Intertribal Council. She also served as a teacher and principal of the Aleutians East Borough School District, and was a tribal appointed regional delegate to the Gov. Knowles State and Tribal Millennium agreement negotiations and ratification.
On Nov. 22, 2019, Attorney General William Barr launched a national strategy to address missing and murdered Native Americans. As part of this MMIP Initiative, the Department of Justice made an initial investment of $1.5 million to hire MMIP Coordinators to serve with U.S. Attorney’s Offices in 11 states, including Alaska, to develop protocols for a more coordinated law enforcement response to missing cases. The strategy also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts.
Two-Time Bank Robber SentencedRead the Press Release
PROVIDENCE – A Providence man twice convicted for robbing banks in Rhode Island, among other crimes he has been convicted of committing as an adult over the past 33 years, was sentenced today to five years in federal prison.
David L. Evans, 51, was most recently convicted in federal court of robbing a Providence branch of Santander Bank in May 2018. At the time of his guilty plea, Evans admitted that he handed a note to a teller demanding cash, at the same time telling her to empty both drawers and that “you have three seconds to give me the money and I’m not joking, I’m serious.” He then counted “1, 2, 3,” as the teller handed him cash.
According to information presented to the court, the bank teller handed Evans $568 in cash. Evans did nothing to conceal his face and identity during the robbery, which was recorded on bank surveillance video and still photographs. The images were used to confirm his identity. He was arrested on June 6, 2018, by Providence Police Detectives and agents from the FBI.
Evans pleaded guilty on February 6, 2020, to bank robbery. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 60 months in federal prison to be followed by three years of supervised release. Evans was ordered to pay $568 in restitution to Santander Bank.
Evans sentence is announced by United States Attorney Aaron L. Weisman, Providence Police Chief Colonel Hugh T. Clements, Jr., and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
According to court documents, Evans, who has been involved in the justice system for the past 33 years, has spent most of his adult life incarcerated. His convictions include arrests and convictions on, among other crimes, firearm, drugs, assault, domestic assault, breaking and entering, wire fraud, transportation of stolen goods, and second degree robbery charges. Evans was convicted of robbing a bank branch office located inside a Warwick supermarket in March 2010.
The most recent case, prosecuted in U.S. District Court in Providence, was prosecuted by Assistant U.S. Attorneys Stacey P. Veroni and Paul F. Daly, Jr.
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Two Major Methamphetamine Distributors Sentenced to PrisonRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 8, 2020, two individuals were sentenced to prison by United States District Court Senior Judge James E. Gritzner for Conspiracy to Distribute Methamphetamine. Erik M. Barber and Lacey Jo Smalley were sentenced to prison for 18 years and 16 years, respectively. Previously, the Court sentenced the leader of the conspiracy, Jason Paul Rodriguez, to 30 years in prison on March 12, 2020.
Rodriguez organized and led the large-scale drug trafficking operation from 2016 until his arrest in April 2019. Rodriguez and his co-conspirators distributed more than 220 pounds of methamphetamine in Omaha and Western Iowa. Barber, age 43, of Council Bluffs, was a major distributor of methamphetamine for Rodriguez. Smalley, age 36, of Clarinda, was also one of Rodriguez’s primary distributors.
The sentencings were the result of a lengthy investigation by Iowa Division of Narcotics Enforcement originating in Page County regarding distribution of methamphetamine delivered from Council Bluffs, Iowa. The investigation revealed that Rodriguez, Barber, Smalley, and others were distributing large amounts of methamphetamine in numerous locations throughout Southwest Iowa and Omaha.
This matter was investigated by the Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Enforcement Task Force, Council Bluffs Police Department, Clarinda Police Department, Page County Sheriff’s Office, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Tulare County Man Indicted for Falsely Marketing Herbal Mixtures as FDA-Approved Treatment for COVID-19Read the Press Release
FRESNO, Calif. — A Porterville man was arrested today after a federal grand jury returned a five‑count indictment on July 9, charging him with mail fraud and introducing a misbranded drug into interstate commerce with the intent to defraud, U.S. Attorney McGregor W. Scott announced.
According to the indictment, Huu Tieu, 58, is the president and chief executive officer of Golden Sunrise Pharmaceutical Inc. and Golden Sunrise Nutraceutical Inc., both headquartered in Porterville. From at least April 25 to July 9, through his companies, Tieu marketed and sold a package of herbal mixtures dubbed the “Emergency D-Virus Plan of Care,” which he claimed treated COVID-19. In materials posted on the companies’ websites and Facebook pages and in emails to the media, Tieu made a series of false statements about the Emergency D-Virus Plan of Care, including:
- That one of the mixtures in the product, called “ImunStem,” was the first dietary supplement in the United States to be FDA approved as a prescription medicine to treat serious or life-threatening conditions and had specifically been approved to treat COVID‑19. In reality, the FDA has never approved any Golden Sunrise product for any intended use and, on at least two occasions, has told Tieu in writing that ImunStem is not FDA approved; and
- That ImunStem was designated as a Regenerative Medicine Advanced Therapy (RMAT) under the 21st Century Cures Act. In reality, the FDA never granted an RMAT designation to any Golden Sunrise product, denied Tieu’s request for an RMAT designation for ImunStem in 2017, and reiterated that denial to Tieu in writing in 2019.
According to the indictment, Tieu made these misrepresentations for the purpose of soliciting customers, both patients and health care professionals, to acquire Golden Sunrise products so that he could submit reimbursement claims to the patients’ insurers, including Medicare and Medi-Cal. Tieu dispensed his products to customers in the Porterville area and also shipped the products to other parts of California and the United States.
On May 8, an undercover investigator with the Tulare County District Attorney’s Office met with Tieu in person, telling him her mother was 68 and very sick with COVID-19. The investigator asked Tieu if she should take her mother to the hospital. Tieu responded, “No. You cannot go in there,” and instead, encouraged her to use Golden Sunrise products.
“The FDA is actively monitoring the marketplace for fraudulent products claiming to treat COVID-19. Americans expect and deserve treatments that are safe, effective and meet appropriate standards, and the agency will continue to bring to justice those who place profits above the public health during this pandemic,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We commend the efforts of our law enforcement partners in this investigation and today’s announcement should serve as a reminder that we will take appropriate action against those who jeopardize the health of Americans while taking advantage of a crisis.”
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the U.S. Food and Drug Administration, the U.S. Postal Inspection Service, and the California Department of Health Care Services with assistance from the Tulare County District Attorney’s Office and the California Bureau of Medi-Cal Fraud and Elder Abuse. Assistant U.S. Attorneys Vincente Tennerelli and Alexandre Dempsey are prosecuting the case.
If convicted, Tieu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on the mail fraud counts and three years in prison and a $10,000 fine on the misbranding counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Traverse City Physician Assistant Surrenders DEA Registration and Agrees to Life-Time Ban on Prescribing Controlled SubstancesRead the Press Release
GRAND RAPIDS, MICHIGAN — James J. Berg, P.A., has agreed to resolve allegations that he violated the Controlled Substances Act by writing illegitimate prescriptions for controlled substances, U.S. Attorney Andrew B. Birge announced today. As part of the settlement, Mr. Berg agreed to surrender his U.S. Drug Enforcement Administration (DEA) registration that allowed him to prescribe controlled substances, to never reapply for a DEA registration in the future, and to pay a civil penalty of $50,000.
This settlement resolves allegations that Mr. Berg, the co-owner and operator of Hope Clinic for Muscle & Joint Pain, PLLC (Hope Clinic), a pain management clinic in Traverse City, wrote numerous prescriptions without a legitimate medical purpose and outside of the usual course of professional practice. The United States alleges that Mr. Berg prescribed large quantities of opioids to patients well above national guidelines for treating patients with chronic pain and despite multiple red flags indicating that the prescriptions were not legitimate. These red flags included patients traveling long distances, failing multiple urine drug screen tests, violating Hope Clinic’s pain management agreements, and displaying other conduct indicative of diversion. Mr. Berg also prescribed opioids concurrent with other controlled substances, such as benzodiazepines and muscle relaxers, resulting in a dangerous cocktail.
“For several years, Mr. Berg recklessly prescribed high doses of opioids in a manner that endangered patients and contributed to the ongoing opioid epidemic,” said U.S. Attorney Birge. “This settlement ensures that Mr. Berg will no longer be in a position to prescribe controlled substances and serves as an example of our office’s efforts to work with the DEA and other law enforcement to use all tools necessary to enforce compliance with controlled substance prescribing laws in Traverse City and the rest of Western Michigan.”
“To have a medical professional, who is fully aware of the effects of controlled substances, abusing his privileges is a total betrayal of his profession and the public trust,” said DEA Detroit Field Division Special Agent in Charge Keith Martin. “Teamwork at all levels of law enforcement was instrumental in this investigation.”
This case was investigated by the DEA and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorneys Ryan D. Cobb and Andrew J. Hull represented the United States.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Texas Man Charged with COVID Relief FraudRead the Press Release
A Texas man was taken into custody on allegations he fraudulently obtained more than $1.1 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
Joshua Thomas Argires, 29, of Houston, Texas, is charged in a criminal complaint, unsealed Monday upon his arrest, with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He made his initial appearance Monday before U.S. Magistrate Judge Peter Bray.
Argires allegedly perpetrated a scheme to file two fraudulent loan applications seeking more than $1.1 million in forgivable loans. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The complaint alleges Argires submitted two fraudulent PPP loan applications to federally insured banks. One of these applications was submitted on behalf of an entity called Texas Barbecue; the other was filed on behalf of a company called Houston Landscaping. Argires allegedly claimed these two companies had numerous employees and hundreds of thousands of dollars in payroll expenses.
According to the complaint, neither Texas Barbecue nor Houston Landscaping has employees or pays wages consistent with the amounts claimed in the PPP loan applications. The complaint further asserts that both of these loans were funded, but that none of the funds were used for payroll or other expenses authorized under the PPP. Rather, the funds received on behalf of Texas Barbecue were invested in a cryptocurrency account, while the funds obtained for Houston Landscaping were held in a bank account and slowly depleted via ATM withdrawals, according to the charges.
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 the CARES Act provides 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 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 federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA OIG and U.S. Postal Inspection Service’s Houston Division conducted the investigation. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James McAlister for the Southern District of Texas are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Ten individuals arrested and charged in a conspiracy to sell drugs throughout the Elyria areaRead the Press Release
U.S. Attorney Justin Herdman announced that 10 individuals were arrested and charged in a multi-count indictment today for their involvement in a conspiracy to distribute and possess crack cocaine, cocaine and oxycodone throughout the Elyria, Ohio area.
These 10 individual are Terrence Bowens, 44; Cedric Green, 34; Marcus Harder, 36 of Elyria; James Milton Jr; Lavar Thornton, 42; James Robinson, 46; Randy Glover, 44; Harold Kimbro, 46; Kavis Roberts, 43; and Melanie Grantham, 57, all of Elyria, Ohio.
“Drug dealers and others criminal have long targeted Lorain County as an area to exploit and sell their deadly product,” said U.S. Attorney Justin Herdman. “Since 2018, as part of Operation SOS, we have committed to assisting our state and local partners by federally prosecuting any fentanyl or opioid trafficking offense from Lorain County. Today’s arrests send a strong message – if you deal dope in Lorain County, you will face a federal prosecution.”
“These arrests and charges are a reminder drug traffickers have little regard for human life,” said DEA Special Agent in Charge Keith Martin. “DEA remains committed to working with our law enforcement partners to rid our communities of illicit drugs and to prosecute those who look to profit from criminal activity.”
According to the indictment, from January 2018 to July 2020, the defendants worked together to distribute at least 280 grams of a substance containing crack cocaine, 500 grams of a substance containing cocaine and a mixture and substance containing a detectable amount of oxycodone throughout the Elyria, Ohio area. Allegedly, defendants Bowens and Green would purchase large quantities of cocaine from an individual and would then redistribute it to the other narcotics traffickers in the area.
Court documents state that defendants Bowens and Green used cellular devices to communicate and conduct their operations and used a residence on Foster Avenue in Elyria to store, cook, and distribute crack cocaine and oxycodone. Furthermore, the indictment alleges that Bowens and Green would conduct counter-surveillance of law enforcement in the area and shared information with each other on law enforcement presence.
Terrence Bowens has a previous 1st-degree felony conviction for drug trafficking from 2013 in the Lorain County Common Pleas Court.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation was conducted and aided by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Elyria Police Department, the Lorain County Sheriff’s Department and the Lorain County Prosecutors Office. The case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and Robert F. Corts.
Lorain County is one of 10 communities around the nation that is part of Operation Synthetic Opioid Surge (S.O.S). This initiative ensures that cases involving heroin, fentanyl and any synthetic opioids are prosecuted in federal court.
Stewartstown Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Christopher Brown, 39, of Stewartstown, pleaded guilty in federal court to possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on June 23, 2019, Lancaster Police encountered Brown after he was involved in a motorcycle crash. The police searched the area and found a bag of approximately 30 grams of fentanyl near where Brown had been standing when the police first encountered him. Brown later admitted to the police that he had obtained the drugs earlier that day in Hooksett. Brown said that, when the crash occurred, he had been on his way north to Colebrook to deliver some of the drugs to another individual.
Brown is scheduled to be sentenced on October 16th 2020.
“Fentanyl trafficking causes damage in all ten counties of our state,” said U.S. Attorney Murray. “Accordingly, law enforcement agencies aggressively target drug dealers throughout New Hampshire. We will continue to work closely with all of our law enforcement partners to identify and prosecute those who undermine public safety by selling fentanyl and other deadly drugs in the Granite State.”
This matter was investigated by the Drug Enforcement Administration with assistance from the Lancaster Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Statement by Attorney General William P. Barr on the Execution of Daniel Lewis LeeRead the Press Release
Attorney General William P. Barr has issued the following statement:
“This morning, in the first federal execution in 17 years, Daniel Lewis Lee was executed by lethal injection at USP Terre Haute in accordance with a death sentence imposed by a federal district court in 1999. Lee, a member of a white supremacist organization, brutally murdered William Frederick Mueller and Nancy Ann Mueller, along with her eight-year-old daughter, Sarah Elizabeth Powell. After robbing and shooting them with a stun gun, Lee duct-taped plastic bags around their heads, weighed down each victim with rocks, and drowned the family in the Illinois bayou. On May 4, 1999, a jury in the U.S. District Court for the Eastern District of Arkansas found Lee guilty of numerous offenses, including three counts of murder in aid of racketeering, and he was sentenced to death. Today, Lee finally faced the justice he deserved. The American people have made the considered choice to permit capital punishment for the most egregious federal crimes, and justice was done today in implementing the sentence for Lee’s horrific offenses.”
Statement by Department of Justice Spokesperson Kerri Kupec:
“Today, Daniel Lewis Lee faced the justice he deserved. Although Lee’s execution was originally scheduled to occur on Monday at 4:00 pm, a district court’s last-minute preliminary injunction required the Department of Justice to seek emergency vacatur from the Supreme Court. After receiving the green-light early on Tuesday morning, the Federal Bureau of Prisons began preparing Lee for the execution; however, a last-minute procedural claim by Lee’s attorney resulted in an additional delay. The U.S. Court of Appeals for the Eighth Circuit ultimately rejected his claim, clearing the way for his execution. He was pronounced dead at 8:07 am.
The Attorney General appreciates the hard work, dedication, and professionalism demonstrated by the Federal Bureau of Prisons; the United States Marshals Service; and the law enforcement and legal teams that investigated and prosecuted Lee, and that for many years defended the government’s duty to carry out this lawful sentence.”
Southwest Iowa Man and Woman Sentenced for Distributing MethRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 8, 2020, Robert Matthew Justice, age 41, of Glenwood, was sentenced to 156 months in prison followed by five years of supervised release and his co-defendant, Stacey Madonna Morrison, age 44, of Council Bluffs was sentenced to 61 months in prison followed by three years of supervised release by United States District Court Senior Judge James Gritzner for conspiracy to distribute methamphetamine.
The sentencing was the result of an investigation by Iowa Division of Narcotics Enforcement with the Federal Bureau of Investigation Safe Streets Task Force into methamphetamine trafficking in Western Iowa and the Omaha Metro Area. The investigation revealed that methamphetamine was being brought into Western Iowa by Justice, who then provided it to Morrison and others for distribution in Pottawattamie, Mills, and Fremont Counties.
In March of 2020, Justice and Morrison entered guilty pleas to Conspiracy to Distribute Methamphetamine.
The case was investigated by the Mills County Sheriff’s Office, Fremont County Sheriff’s Office, Southwest Iowa Narcotics Task Force, Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation’s Safe Streets Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Smithfield Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
RALEIGH, N.C. – A North Carolina man was sentenced today to 120 months in prison for possessing child pornography.
According to court documents, Mitch Hamilton Parrish, 44, possessed several images of child pornography when law enforcement agents searched his home in Smithfield, North Carolina. Using digital forensic analysis, agents found child pornography on Parrish’s laptop. The agents also found internet search terms related to child pornography.
This is the second time Parrish has been convicted of possessing child pornography. In 2010, Parrish was convicted in Franklin County Superior Court of three counts of sexual exploitation of a minor relating to possessing child pornography. Parrish is also a registered sex offender.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. Homeland Security Investigations, the North Carolina State Bureau of Investigation, Cary Police Department and Johnston County Sheriff’s Office investigated the case and Assistant U.S. Attorneys John Parris and Melissa Kessler prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00168-D.
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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.
Six Rockford Residents Sentenced on Federal Fraud Charges Related to Supplemental Nutrition Assistance Program (“SNAP”)Read the Press Release
ROCKFORD — Six Rockford residents were sentenced Monday in federal court by U.S. District Judge Matthew F. Kennelly on wire fraud or money laundering charges.
Leeform “John” Xayvandy, Sr., 39, pleaded guilty on Nov. 27, 2019, to one count of wire fraud and one count of money laundering. He was sentenced to three years in prison and ordered to pay approximately $3.18 million in restitution.
Som Xayvandy, 49, pleaded guilty on Nov. 4, 2019, to one count of wire fraud. He was sentenced to 18 months in prison and ordered to pay approximately $2.77 million in restitution.
Vansy “Dee” Xayvandy, 45, pleaded guilty on Jan. 27, 2020, to one count of wire fraud. She was sentenced to 15 months in prison and ordered to pay approximately $2.77 million in restitution.
Christiana “Tina” Xayvandy, 28, pleaded guilty on Nov. 4, 2019, to one count of wire fraud. She was sentenced to 15 months in prison and ordered to pay approximately $2.97 million in restitution.
Feuy Khaikham, 59, pleaded guilty on Nov. 18, 2019, to one count of wire fraud and one count of money laundering. She was sentenced to 15 months in prison and ordered to pay approximately $2.03 million in restitution.
Aung Gyaw, 25, pleaded guilty on Jan. 3, 2020, to one count of wire fraud. He was sentenced to six months of home confinement and ordered to pay approximately $2.97 million in restitution.
The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General in Chicago; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service, Criminal Investigation Division. The Rockford Police Department and Winnebago County Sheriff’s Office assisted in the investigation. The government was represented by Assistant U.S. Attorney Talia Bucci.
The wire fraud charges relate to the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the food stamp program. SNAP is a federal benefit program administered by the U.S. Department of Agriculture in conjunction with state governments. It provides nutrition benefits to supplement the food budgets of eligible individuals and families. Stores authorized to participate in SNAP can accept SNAP benefits only as payment for eligible food items, and it is illegal for stores and individuals to exchange SNAP benefits for cash - a practice commonly referred to as SNAP trafficking.
According to written plea agreements entered by the six defendants, between April 2015 and January 2017, the defendants schemed to defraud the USDA by fraudulently accepting and redeeming SNAP benefits exchanged for discounted amounts of cash, knowing that such exchanges were prohibited under SNAP. As part of the scheme, defendants conducted SNAP trafficking at multiple stores in Rockford, including Pattaya Grocery Foods, formerly located at 108 15th Ave., B&P Foods Market, formerly located at 102 15th Ave.), Platinum Electronics and More, formerly located at 1114 Broadway, and Mr. Clark Groceries, formerly located at 1019 S. Main St.. Proceeds from the SNAP trafficking transactions were deposited into bank accounts controlled by the defendants and then distributed to other members of the scheme through cash payments or check. Som Xayvandy and Khaikham admitted in their plea agreements that they previously owned stores that were permanently disqualified from participating in SNAP in 2014 after USDA Food and Nutrition Services found that SNAP trafficking had been conducted at those stores.
Leeform Xayvandy, Sr., and Khaikham also admitted that they conducted financial transactions affecting interstate commerce involving the proceeds of the wire fraud scheme. Khaikham admitted that she directed a nominee owner of B&P Foods Market to cash checks from the store’s bank account and return the proceeds to Khaikham. Leeform Xayvandy, Sr., admitted that he issued checks from B&P Foods Market’s bank account to two other individuals, and directed those individuals to cash the checks and return the proceeds to him. Leeform Xayvandy, Sr., and Khaikham admitted that they did so in order to conceal the nature, ownership, and control of the wire fraud proceeds involved in those transactions.
A seventh defendant, Bounleung “Tommy” Thamontri, 56, was also charged with wire fraud, food stamp fraud, money laundering, and conspiracy to commit money laundering. Thamontri remains at large.
Shelby County Resident Sentenced for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 13, 2020, Ryan Nicholas Schwery, age 43, of Shelby County, was sentenced by United States District Court Judge Stephanie M. Rose to 78 months in prison, to be followed by six years of supervised release for distributing methamphetamine.
The sentencing was the result of an investigation by the Shelby County Sheriff’s Office and Iowa Division of Narcotics Enforcement into the distribution of methamphetamine in Harlan, Iowa. The Shelby County Sheriff’s Office, using a confidential source, made three separate purchases of methamphetamine from Schwery before serving a search warrant on his living quarters at the Harlan Inn and Suites. During the search, officers located approximately 144 grams of pure methamphetamine, along with drug distribution paraphernalia, and over $1,000 in cash from the sale of methamphetamine. On February 21, 2020, Schwery entered a guilty plea to Possession of Methamphetamine with Intent to Distribute.
This matter was investigated by the Shelby County Sheriff’s Office and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Second Leader of North Philadelphia Drug Gang Sentenced to Twelve Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Brandon Smith, 30, of Philadelphia, Pennsylvania, was sentenced to twelve years in prison, to be followed by five years of supervised release, by United States District Court Judge C. Darnell Jones.
In November 2019, the defendant pleaded guilty to multiple criminal counts, including conspiracy to distribute and attempted possession with intent to distribute controlled substances. The charges arose from his leadership role in a large drug trafficking organization that shipped hundreds of pounds of narcotics -- including methamphetamine, cocaine, heroin, and fentanyl -- from California to Philadelphia via United States mail, from at least early 2016 until November 2017.
To obtain the narcotics, Smith and other members of the organization flew from Philadelphia to Los Angeles to purchase the drugs directly from a source in California, concealing large amounts of cash between clothing packed in their carry-on luggage. After purchasing the drugs, members of the organization shipped the narcotics in boxes addressed to businesses in the Feltonville neighborhood of North Philadelphia, and then coordinated the delivery of the drugs to various locations, so they could then be prepared for distribution.
Another leader of the drug trafficking group and a co-defendant in this case, George Felts, 33, also of Philadelphia, was previously sentenced to sixteen years in prison for similar charges.
“Smith and other members of this drug gang pumped huge quantities of deadly drugs into our community,” said U.S. Attorney McSwain. “The punishment handed down today cannot undo the damage that Smith caused, but his conviction and lengthy sentence have made Philadelphia safer. My Office is committed to aggressively investigating and prosecuting drug trafficking organizations that prey on the community.”
“Today, another defendant was sentenced to more than a decade in jail for his participation in the organized distribution of illegal and dangerous narcotics in Philadelphia neighborhoods,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division of the United States Postal Inspection Service. “I again would like to thank and congratulate the officers from the Philadelphia Police Department, the agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the prosecutors from the United States Attorney’s Office, and the Postal Inspectors from the Philadelphia Division who worked tirelessly on this case to protect the US mail system from criminal misuse and to ensure Mr. Smith faced justice for the harm he has caused to the Philadelphia community.”
The case was investigated by the United States Postal Inspection Service, with the assistance of the Philadelphia Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, and Firearms. It is being prosecuted by Assistant United States Attorney Nancy Beam Winter.
San Antonio Tax Preparer Indicted for False ReturnsRead the Press Release
A federal grand jury in Waco, Texas, returned an indictment today charging a San Antonio tax preparer with aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John F. Bash for the Western District of Texas.
According to the indictment, Telesa Hall operated Precision Efile Tax Services, a tax return preparation business located in San Antonio, Copperas Cove, and Killeen, Texas. From 2014 to 2017, Hall allegedly falsified clients’ tax returns by claiming business losses that her clients did not incur, in order to fraudulently increase their refunds. The indictment further alleges that from 2013 through 2016, Hall falsified her own tax returns by not reporting all of the income she earned from her tax preparation business.
If convicted, Hall faces a maximum sentence of three years in prison on each of the 23 counts in the indictment. She also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Bash commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Francesca Bartolomey and William Guappone of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Rocky Mount Tax Return Preparer Pleads Guilty to Conspiracy and Filing False Tax ReturnsRead the Press Release
RALEIGH, N.C. – A Rocky Mount, NC woman pleaded guilty today to conspiracy to prepare and file false tax returns.
According to court documents, Priscilla Evans, 65 years old, conspired with others to file false tax returns for the 2013 through 2016 tax years for clients of Community Tax Services LLC located in Rocky Mount, North Carolina. Evans and her co-conspirators filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds. According to the IRS, the three-year scam resulted in a loss of more than $2 million in tax dollars. Evans pleaded guilty today to conspiracy to prepare and file false tax returns and faces up to five years imprisonment when she is sentenced during the court’s December 2020 term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. Magistrate Judge Robert Jones accepted the plea. The Internal Revenue Service Criminal Investigations (IRS-CI) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-00077-2FL.
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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.
Richmond Hill man admits attempted child sexual coercionRead the Press Release
SAVANNAH, GA: A Bryan County man admitted in federal court to attempting to persuade a minor to engage in sex.
Michael Wilson, 37, of Richmond Hill, Ga., pled guilty in U.S. District Court to Attempted Coercion of a Minor to Engage in Sexual Activity, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a possible sentence of up to life in prison, along with substantial financial penalties and a minimum of five years of supervised release after completion of the prison sentence.
There is no parole in the federal system.
Previously, Wilson’s wife, Lori Wilson, a/k/a “Loretta Lightningbolt,” 35, also of Richmond Hill, pled guilty in U.S. District Court to Tampering with a Victim or Witness for attempting to persuade a victim to recant the accusations against Michael Wilson and withhold information from investigators. She awaits sentencing.
“The Wilsons represent a vile tag-team of abhorrent behavior that has no place in civilized society,” said U.S. Attorney Christine. “In coordination with our law enforcement partners, we will work relentlessly to protect potential victims from predators and their enablers.”
According to court documents and testimony, Michael Wilson admitted attempting to coerce a minor victim to engage in sexual activity from 2017 through early 2019. Michael Wilson, an active duty member of the military, also is charged with seven violations of the Uniform Code of Military Justice, Article 120(b), Rape and Sexual Assault of a Child. These charges are pending and relate to multiple minor victims.
“No sentence for this man will wipe away the scars left on the child he victimized,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Wilson harmed a defenseless child for life. Our only hope is that his punishment will act as a deterrent to anyone who contemplates preying on our most vulnerable citizens.”
The cases are being investigated by the FBI and by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorneys Katelyn Semales and Jennifer G. Solari.
Retired Cadott Physician to Pay $70,000 to Resolve Controlled Substance Prescribing & Recordkeeping ViolationsRead the Press Release
MADISON, WIS. – United States Attorney Scott C. Blader announced that Clifford T. Bowe, M.D., a retired Cadott, Wisconsin physician, entered into a settlement agreement to pay $70,000 to resolve civil allegations that he violated the Controlled Substances Act (“CSA”) relating to his prescribing of controlled substances, including opioids, outside the usual course of professional practice, among other CSA violations.
Dr. Bowe owned and operated Cadott Medical Center (“CMC”) in Cadott. A majority of his patients went to CMC because they were suffering from opioid use disorder and other addictions. Dr. Bowe had received authorization to treat up to 100 opioid dependent patients for opioid use disorder with medication-assisted treatments, such as the FDA-approved Schedule III drug, buprenorphine (Suboxone). Buprenorphine, a partial opioid agonist, blocks the opiate receptors and reduces an individual’s urges to use opioids. According to the government’s allegations set forth in the settlement agreement, Dr. Bowe not only improperly prescribed buprenorphine along with other potent opioids, but he also counseled patients on how to fill these improper simultaneous prescriptions so as to avoid rejection by pharmacies or insurance payers. Moreover, the government alleged that Dr. Bowe prescribed Schedule II opioids to treat opioid use disorder, which is prohibited by CSA regulations.
According to the settlement agreement, the government alleged that Dr. Bowe also violated the CSA by prescribing emergency Schedule II controlled substances to a family member that failed to meet the regulatory requirements for such prescribing; by providing inaccurate directions for use on controlled substance prescriptions to maneuver-around pharmacies refusing to fill compounded prescriptions or insurance companies denying payment for such prescriptions; and by failing to maintain records regarding the receipt and dispensing of controlled substances, or to maintain an inventory of controlled substances on-hand at CMC. Dr. Bowe denies these allegations.
In enacting the CSA, Congress recognized the importance of preventing the diversion of drugs from legitimate to illegitimate uses. The CSA, in relevant part, deters the illegal distribution, possession, dispensing, and improper use of controlled substances, all of which have contributed significantly to the opioid epidemic over the past two decades. The CSA therefore regulates entities and practitioners that dispense controlled substances by establishing controls over all stages of the chain of distribution of controlled substances in the United States.
“Physicians who prescribe controlled substances, including opioids, outside the usual course of professional practice, abuse their prescription-writing privileges and contribute to the opioid crisis,” said United States Attorney Blader. “Controlled substance prescribing violations, in addition to the critical recordkeeping of controlled substances to ensure the system remains closed, will result in enforcement action in the Western District of Wisconsin.”
“DEA will continue to pursue civil actions against any registrant that violates the Controlled Substances Act by practicing outside of professional medical practice and issuing illegitimate controlled substance prescriptions. The overprescribing of opioids has played a large role in the national opioid addiction crisis that our country currently faces on a daily basis,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
According to public records, on February 15, 2012, the Wisconsin Medical Examining Board reprimanded Dr. Bowe for engaging in any practice or conduct that tended to constitute a danger to the health, welfare, or safety of patients or the public, and thus, unprofessional conduct, including the unjustified prescribing of Schedule II and other controlled substances. The Board ordered Dr. Bowe to attend a Comprehensive Pain Board symposium, which he later completed.
In 2017, DEA obtained an Administrative Inspection Warrant to conduct an inspection relating to Dr. Bowe and CMC. According to the settlement, after DEA informed Dr. Bowe of numerous allegations that he failed to comply with relating to the federal controlled substance requirements, Dr. Bowe voluntarily surrendered his DEA Registration Number. Without a DEA registration number, he could no longer prescribe or dispense controlled substances.
In 2016, the State of Wisconsin also opened cases into Dr. Bowe’s prescribing practices that led to the Wisconsin Medical Examining Board’s March 15, 2017 Order. According to the Board’s Order, to resolve the State’s claims, Bowe neither admitted nor denied engaging in unprofessional conduct, rather, he stated that due to his age and limitation on his ability to care for patients, he agreed to resolve the cases by voluntarily and permanently surrendering his Wisconsin license to practice medicine.
Assistant United States Attorney Leslie Herje represented the government in this matter. The DEA Milwaukee District Office primarily conducted the investigation, along with the United States Attorney’s Office Affirmative Civil Enforcement team. The settlement agreement states CSA allegations only; Dr. Bowe denies the allegations, except that he admits that, in violation of federal law, he pre-signed incomplete patient prescriptions on other than the date of issuance and placed them in patient charts.
Putnam County Man Indicted in Connection with Making Serious Threats of Violence Against Police Officers on SnapchatRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man was indicted today by a federal grand jury sitting in Huntington for making threats of violence against law enforcement officers on social media, announced United States Attorney Mike Stuart. The one count indictment charges Silas Thornton King, 18, of Hurricane, with interstate communications containing a threat to injure the person of another.
The indictment alleges that on June 28, 2020, King posted threats to injure law enforcement on Snapchat, a social media platform. King was previously arrested on a federal criminal complaint which alleged that he posted a Snapchat video of himself as he verbally threatened serious physical violence against officers of the Milton Police Department.
“Today’s indictment of King is a testament to my sincere commitment to do everything in my power to protect and defend those in law enforcement - our Guardians of Justice - who serve bravely, selflessly, and courageously in defense of all our citizens. Threats of physical violence against law enforcement officers are abhorrent and something I will never tolerate,” said United States Attorney Mike Stuart.
"The FBI takes all threats seriously," said FBI Pittsburgh Special Agent in Charge Mike Christman. "We work very closely with our state and local partners when these types of threats come in. We want everyone to know posting anything of a threatening nature on social media will be taken seriously and it will be investigated."
If convicted, King faces up to five years in federal prison.
The investigation was conducted by the Federal Bureau of Investigation (FBI), the West Virginia State Police, the Milton Police Department and the Hurricane Police Department. Assistant United States Attorney Courtney Cremeans is handling the prosecution.
Please note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. The indictment and related court documents and information can be found on PACER by searching for Case No. 3:20-CR-00111.
Follow us on Twitter: SDWVNews and USAttyStuart
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Possessing Five Firearms Sends Felon to Federal Prison for over Six YearsRead the Press Release
A convicted felon who repeatedly possessed firearms while also using drugs was sentenced today to more than six years in federal prison.
George Raymond Bounds, age 49, from Cedar Rapids, Iowa, received the prison term after a December 23, 2019 guilty plea to one count of possession of a firearm by a felon and one count of possession of a firearm by a felon and a drug user.
Information disclosed during the case shows that Bounds is a three-time felon. He was previously convicted of burglary, kidnapping, and aggravated assault in Arizona in 1996. Between March 2018 and February 2019, Bounds possessed five different firearms on four separate occasions. Bounds repeatedly obtained firearms after officers had seized firearms from him. Testing showed his DNA was on all five firearms. Two of the firearms had altered or obliterated serial numbers.
Bounds was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bounds was sentenced to 80 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Bounds is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-69.
Follow us on Twitter @USAO_NDIA.
Pittsburgh Parolee Sentenced for Drug Trafficking CrimeRead the Press Release
PITTSBURGH, PA – Quintine Scales was sentenced to 30 months in prison for fentanyl and heroin trafficking in September 2019 while on state parole and probation for prior heroin trafficking and gun crimes, United States Attorney Scott W. Brady announced today.
Scales, 35, of Pittsburgh, was sentenced by United States District Judge Arthur J. Schwab. Judge Schwab ordered Scales’s federal prison sentence to be served consecutively to any state parole or probation revocation sentence. Judge Schwab also ordered Scales to serve six years of supervised release following his prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the United States Marshals Service, and the Pennsylvania Office of Attorney General conducted the investigation leading to the conviction and sentence in this case. This case is being prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Ohio man admits to methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Giovanni Geonard Ingersoll, of Akron, Ohio, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Ingersoll, age 28, pled guilty to one count of “Aiding and Abetting Distribution of Methamphetamine.” Ingersoll admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral County.Ingersoll faces not less than ten years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge Robert W. Trumble presided.
Ninja Electronics Owner Charged with Conspiring to Sell Stolen Goods, Mail Fraud and Money LaunderingRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit mail fraud and money laundering, United States Attorney Scott W. Brady announced today.
The six-count Indictment named Milton I. Barr, age 33, of Pittsburgh, Pennsylvania.
According to the indictment, Barr was charged in six counts for conspiring with others to sell stolen goods through his business, called Ninja Electronics, which sold used electronics and a wide variety of drug store type health and beauty aids and over the counter medications over the internet. Barr was charged with a criminal conspiracy, a mail fraud scheme for delivering stolen goods through the mail, and money laundering with regard to his handling of the proceeds of the stolen goods.
The law provides for a maximum sentence of up to five years for the conspiracy count, up to 20 years on each wire fraud count and up to 10 years on each money laundering count. The statutes in question each also carry a fine provision of up to $250,000. 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.
The Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case. Police departments from the City of Pittsburgh, Ross Township and Shaler Township also assisted in the overall investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Myrtle Beach Man Sentenced to 12 Years in Federal Prison for Selling Drug that Caused Overdose DeathRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Darell Levon Curry, a/k/a “Rell,” 31, of Myrtle Beach, was sentenced via videoconference to 12 years in federal prison after pleading guilty to possession with intent to distribute fentanyl, cocaine, heroin, and crack cocaine. Evidence presented to the court at Curry’s guilty plea and sentencing showed that in addition to distributing significant quantities of these drugs in and around Horry County from 2016 through 2019, Curry sold a quantity of fentanyl on May 21, 2019, that led to two overdoses, one of which was fatal.
"As this case shows, those who push drugs that kill others will be dealt with swiftly and severely,” said U.S. Attorney McCoy. “This case would not be possible without the work of our joint federal, state, and local task force designed to disrupt and dismantle the flow of deadly opioids into the Myrtle Beach area. With these partners, we will continue to aggressively prosecute those who deal in illegal narcotics, especially those who distribute opioids that cause death and serious injury.”
"This case should be taken as a stern warning, both for those who seek to use heroin and those who supply it laced with fentanyl,” said Jody Norris, Special Agent in Charge of the FBI. “The work of the FBI and our state and local partners will continue in an effort to find those that peddle in this poison.”
Evidence presented to the court in the case further showed that on May 21, 2019, the victims contacted Curry, who was one of their regular drug dealers, to obtain $20 worth of heroin. Curry fronted them a substance he called “China White,” a term that commonly refers to a light-colored type of heroin, with an understanding they would pay for the drugs later. The victims split the small amount of what was purported to be heroin between them, snorted it, and immediately overdosed. Records reflect that the two victims were located by their teenage children who called 911 and attempted to revive them with CPR until paramedics arrived. The paramedics administered Narcan to both victims. One responded and has since fully recovered, but Samuel Erny, of Horry County, died from his overdose. Toxicology results reflect that the drug ingested by the victims was fentanyl rather than heroin. Curry left the site of the overdose before authorities arrived and was arrested several days later on federal charges.
During the sentencing hearing, the court also heard evidence of the impact the overdose death has had on Erny’s family. Erny’s family described him as a hard-working husband who had struggled with addiction for several years. The court noted the great impact that the opioid crisis has had in South Carolina, and it observed that anyone who sells drugs such as heroin should know that they are selling a potentially deadly substance.
The court also found troubling Curry’s escalating and continuing pattern of criminal activity. His past convictions included carrying weapons on school property in 2004, possession of crack cocaine and resisting arrest in 2009, criminal domestic violence in 2010, possession of crack cocaine and marijuana and resisting arrest in 2010, possession with intent to distribute cocaine in 2013, third degree assault and battery in 2013, possession of cocaine in 2014, and third degree assault and battery in 2016. Records reflect Curry had been sentenced to sanctions ranging from fines and probation to four years in prison for these past convictions.
United States District Judge Donald C. Coggins, Jr. sentenced Curry to 145 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
The investigation was led by Task Force Officers of the Federal Bureau of Investigation, along with the Horry County Police Department, the Horry County Sheriff’s Office, the 15th Circuit Drug Enforcement Unit, and the 15th Circuit Solicitor’s Office.
Assistant United States Attorney Everett McMillian of the Florence 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.
Michigan City Man Sentenced to 115 Months in PrisonRead the Press Release
SOUTH BEND – Jeffrey Cooper, age 32, of Michigan City, Indiana was sentenced today by United States District Court Judge Damon R. Leichty upon his guilty plea to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Mr. Cooper was sentenced to 115 months in prison followed by 3 years of supervised release.
According to documents filed in this case, Cooper led police on a car chase for over a mile that ended when he crashed into a car and then a telephone pole outside the Blue Chip Casino. Cooper ran away but police found a loaded pistol with a high capacity magazine in his crashed car. Cooper’s felony convictions include battery resulting in serious bodily injury, intimidation, and escape.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive with the assistance of the Michigan City Police Department, Long Beach Police Department, LaPorte County Sheriff’s Department, and LaPorte County Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Molly E. Donnelly.
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Mexican National with Convictions for Robbery and Kidnapping Pleads GuiltyRead the Press Release
RICHMOND, Va. – A Mexican national with previous convictions for robbery and kidnapping pleaded guilty today to illegally reentering the United States.
According to court documents, from 2002 to 2003, Aureliano Escorcia-Martinez, 37, illegally entered the United States on six separate occasions, was apprehended each time on the border by the U.S. Border Patrol, and then voluntarily returned to Mexico. Sometime after his last voluntary return to Mexico, he illegally re-entered the United States for a seventh time and made his way to Virginia and committed serious crimes. For example, in June 2006, Escorcia-Martinez was convicted in the Circuit Court for Henrico County for robbery (sentenced to 15 years) and abduction/kidnapping (sentenced to 10 years). All but two years and five months of the sentences were suspended.
“Over the past 18 years, Mr. Escorcia-Martinez has illegally entered or attempted to enter the United States at least eight times, has been convicted of robbery and kidnapping, and was in custody this time for drunk driving,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This recidivist behavior reflects a blatant disregard for our nation’s laws and borders, and represents a clear threat to public safety. The Department of Justice is committed to prioritizing criminal immigration enforcement, and this case reflects that continuing commitment.”
In December 2009, Escorcia-Martinez was physically removed from the United States. Sometime later, Escorcia-Martinez again illegally reentered the United States for an eighth time.
In March, Escorcia-Martinez was incarcerated in the Henrico County jail for Driving While Intoxicated, and immigration authorities learned of his illegal return. Escorcia-Martinez was then indicted on the instant federal charges.
“This man committed serious crimes in our community — burglary, robbery, and driving under the influence,” said Lyle Boelens, Acting Washington Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). “His repeated egregious disregard for the law, including immigration law, demonstrates he is a threat to the public. ICE is committed to identifying and removing individuals who break our immigration laws and pose a threat to public safety.”
Escorcia-Martinez pleaded guilty to illegal reentry, and faces a maximum penalty of 20 years in prison when sentenced on November 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle Boelens, Acting Washington Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-65.
Massachusetts Man Charged After Getting Caught with Nearly 60 Pounds of MethamphetamineRead 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 Daren Lewis, 39, of Quincy, MA, was arrested and charged by criminal complaint with possessing with intent to distribute 500 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that on July 10, 2020, Homeland Security Investigations (HSI) in Flagstaff, Arizona received an alert regarding a suspicious cargo shipment, originating in California and destined for Tonawanda, NY. The shipment was manifested as personal effects and the phone number provided by the shipper was not a working number.
HSI Buffalo, the Erie County Sheriff's Office, and the Niagara County Drug Task Force began investigating the shipment on July 13, 2020, after its arrival in Tonawanda. On that day, a U.S. Customs and Border Protection (CBP) K-9 showed interest in the vent of the container, but did not make a final positive alert to the presence of controlled substances. However, an Erie County Sheriff's Office K-9 ran to the suspicious shipment container without command and indicated a positive alert to the presence of a narcotic odor near the same vent and area of the container at which the CBP K-9 showed interest.
At approximately 1:45 p.m. on July 13, 2020, the defendant Daren Lewis arrived at an area cargo terminal in a U-Haul rental truck. After going inside the office, the defendant returned to the truck and backed the U-Haul up to the container holding the suspicious shipment. Lewis opened the locks on the container and positioned the doors of the U-Haul truck to obscure the area between the truck and the container before going into the container.
After a short time, he was observed in the cab of the truck and appeared to be using a telephone. After closing the doors on the back of the U-Haul truck and driving away from the cargo terminal, the defendant was stopped on Sheridan Drive in Tonawanda by Erie County Sheriff's Deputies. The defendant and the U-Haul truck were transported to an Erie County Sheriff's Office. A search warrant was executed on the U-Haul. Inside, investigators discovered two cardboard boxes containing shrink wrapped packages. One of the packages was opened and found to contain a bag of a white crystal substance, which field tested positive for methamphetamine. The shipment contained a total of 59.5 pounds of suspected methamphetamine. The estimated street value of the suspected methamphetamine is $2,700,000. Lewis was arrested.
“While we often speak of the potentially deadly consequences of heroin and fentanyl use, methamphetamine can be just as dangerous, just as addictive, and in the end, just as deadly,” stated U.S. Attorney Kennedy. “The coordinated efforts by Homeland Security and our partners in local law enforcement have resulted in one of the largest seizures of methamphetamine ever in the Western District of New York and prevented this massive batch of poison from reaching our streets and wreaking havoc in our community.”
“Drug trafficking organizations clearly have the false perception that they can act with impunity during the current crisis,” said Kevin Kelly, HSI Buffalo Special Agent-in-Charge. “This arrest and significant seizure sends an unequivocal message that we will continue to hold criminals accountable.”
The defendant will make an initial appearance on July 15, 2020, at 10:00 a.m. before U.S. Magistrate Judge Michael J. Roemer.
The criminal complaint is the culmination of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Niagara County Drug Task Force, under the direction of Niagara County Acting Sheriff Michael Filicetti.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Maryland man and West Virginia woman admit to firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two people have admitted to participating in a firearms trafficking conspiracy, U.S. Attorney Bill Powell announced.
Brayan Mengou, of Hagerstown, Maryland, pled guilty to one count of “Aiding and Abetting Illegal Transportation or Receipt in State of Residency of Firearms Purchased or Acquired Outside of State of Residency.” Mengou, age 21, worked with others to transport several firearms from Berkeley County to Maryland in October 2019.
Amber Nicole Downing, of Hedgesville, West Virginia, pled guilty to one count of “False Statement During Purchase of Firearms.” Downing, age 35, admitted to purchasing firearms, stating the firearms were for her personal use, when she wasn’t the true purchaser of the firearms.
Mengou faces up to five years of incarceration and a fine of up to $250,000. Downing faces up 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Defense Contractor Facing Federal Indictment for Procurement FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Cory Collin Fitzgerald Sanders, age 39, of Hagerstown, Maryland, on federal charges of wire fraud, false claims, and aggravated identity theft in connection with his companies’ performance on federal contracts. The indictment was returned on July 8, 2020, and was unsealed at his initial appearance yesterday.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Special Agent in Charge John Salazar of the Naval Criminal Investigative Service, Washington Field Office.
According to the indictment, in June 2014 Sanders formed Sandtech LLC, a Maryland limited liability company whose business was the sale of video teleconference equipment to the Department of Defense and other agencies of the federal government. Sanders was the sole owner, agent, and president of Sandtech. As detailed in the indictment, Sanders obtained contracts with federal agencies for Sandtech to provide telecommunications equipment and services. Sanders caused Sandtech to fail to perform on contracts with the U.S. Department of Labor and the Department of the Army, which terminated the Sandtech conracts for cause. Sanders then formed Cycorp Technologies in 2016 to provide the same type of telecommunication services as Sandtech.
The indictment alleges that from February 10, 2015 through June 6, 2018, Sanders engaged in a scheme to defraud the government by allegedly entering into contracts with federal agencies which required Sandtech and Cycorp Technologies to provide new telecommunications equipment which was still under warranty. The indictment alleges that in his communications with federal agency contracting officers Sanders provided false information about the delivery, source, warranty, and/or condition of the electronic equipment provided by his companies, including misrepresentations that the equipment was new and protected by the manufacturer’s warranty, when Sanders knew that the equipment was not new, or was new but not under warranty, or was procured through unauthorized channels.
Further, the indictment alleges that Sanders provided contracting officials with false information and false documents about the credentials, certifications, and qualifications of Cycorp Technologies. Sanders allegedly provided fabricated and forged documents falsely certifying Cycorp Technologies’ status as an “authorized partner” of two large national telecommunications equipment manufacturers, which would have authorized Cycorp Technologies to buy directly from those companies and/or distribute their new and warrantied products. One of the documents included the forged name and signature of an official at one of the manufacturers. In addition, Sanders allegedly submitted invoices on behalf of Sandtech and Cycorp Technologies so that contracting government agencies would pay for deficient or non-existent performance by electronic deposit into business bank accounts.
If convicted, Sanders faces a maximum sentence of 20 years in federal prison for each of nine counts of wire fraud; a maximum of five years in federal prison for each of two counts of false claims; and a mandatory two years in federal prison, consecutive to any other sentence, for aggravated identity theft. 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. At Sanders’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge J. Mark Coulson ordered that Sanders be released under the supervision of U.S. Pretrial Services.
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 Department of Labor – OIG, the NCIS, and the other federal law enforcement agencies involved for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew J. Maddox and Joyce K. McDonald, who are prosecuting the case.
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Man Sentenced for Illegally Straw Purchasing Multiple FirearmsRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to one year in prison for aiding and abetting the illegal straw purchase of five firearms.
According to court documents, Manuel Christopher Thomas, 28, and Paul Laurence Chambers, 21, aided and abetted the straw purchase of five firearms from federal firearm licensees in the Eastern District of Virginia by providing Joni Maria Metcalf, 35, money and explicitly directing her as to which firearms to illegally purchase on their behalf. Police in Washington, D.C. recovered one of the illegally purchased firearms from Thomas 11 days after it was straw purchased.
Previously, Chambers, also from Maryland, was sentenced to 9 months in prison for his role in this coordinated scheme to illegally straw purchase firearms.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Liam O'Grady. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Benjamin Kringer prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-019.
Local Methamphetamine Dealer Sentenced to 324 Months' ImprisonmentRead the Press Release
MARQUETTE, MICHIGAN — Jonathan Collins, 41 years old, was sentenced on July 10, 2020, to serve 324 months’ imprisonment by U.S. District Judge Paul L. Maloney. Collins pled guilty in December 2019 to possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Upon his release, Collins will be subject to 5 years of supervision.
Marquette City Police pulled over Collins’s vehicle in November 2018. During that encounter, investigators found approximately 50 grams of methamphetamine in the car and a double-edged dagger concealed in the driver-side support handle. The Upper Peninsula Substance Enforcement Team (UPSET) then took over the investigation and learned that Collins had been making frequent trips to the Grand Rapids area and had brought ounces of crystal methamphetamine back to the Upper Peninsula for redistribution. After being charged by the Marquette County Prosecuting Attorney’s Office and being released on bond, Collins conspired to obtain additional methamphetamine and made threats against a co-conspirator. The U.S. Attorney’s office charged Collins in August 2019.
District Judge Maloney imposed an enhanced sentence in this case based on several factors, including Collins’s obstructing justice by posting a statement online calling a co-conspirator a “snitch” and attaching a copy of the co-conspirator’s statement to police. Judge Maloney concluded a substantial term of incarceration was necessary because of Collins’s actions toward the co-conspirator and the damage crystal methamphetamine is doing to Michigan and the Upper Peninsula more specifically.
“As long as methamphetamine distribution continues to be a problem in the Upper Peninsula, my office will continue to work with our federal and local law enforcement partners to prosecute those who would otherwise go undeterred and keep bringing this terrible drug into our northernmost communities,” said U.S. Attorney Andrew Birge.
The U.S. Attorney’s Office, Marquette County Prosecuting Attorney’s Office, UPSET, and Marquette City Police Department worked together to ensure Collins was brought to justice
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Lexington Man Pleads Guilty to Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky. - A Lexington, Ky., man, Kenneth Mitchell, 27, pleaded guilty in federal court on Tuesday, before Chief U.S. District Judge Danny Reeves, to being a convicted felon in possession of a firearm.
According to Mitchell’s plea agreement, on December 9, 2019, officers responded to a firearm being discharged at an apartment complex in Lexington, where officers located Mitchell and a female victim. Mitchell admitted that prior to police arriving, he had taken the firearm to a nearby fence line to hide it, where law enforcement later recovered it. Mitchell further admitted that he knowingly possessed the firearm and that he was prohibited from possessing it, as a convicted felon.
Mitchell was indicted in February 2020. Mitchell had previously been convicted, in May 2019, of Wanton Endangerment, in Fayette County Circuit Court.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos II.
Mitchell faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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 Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
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Last Conspirator Pleads Guilty in $5 Million Fraud over Hurricane Michael Cleanup in Lynn HavenRead the Press Release
PANAMA CITY, FLORIDA – The last remaining defendant indicted in a $5 million fraud against the City of Lynn Haven has pled guilty to a charge stemming from the Hurricane Michael-related scheme. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced that David Wayne Horton, who was the city’s Community Services Director at the time of the fraud, entered a guilty plea to wire fraud. The charge stemmed from a 35-count federal indictment that included the former Lynn Haven city manager.
The indictment, handed down by a federal grand jury, alleged that in the wake of Hurricane Michael, the City of Lynn Haven entered into contracts for debris removal. The indictment alleged that ECS and Greenleaf submitted invoices that were false and fraudulent, but then-City Manager Michael White approved them and directed city employees to immediately pay ECS and Greenleaf for those invoices. The other defendants took various actions to advance the conspiracy, which defrauded Lynn Haven of approximately $5 million.
In entering his guilty plea, Horton admitted to signing and certifying fraudulent time sheets that purported to show how various individuals had performed hurricane cleanup work for the city. According to a Statement of Facts entered with Horton’s plea, when he was interviewed by federal agents in 2018, Horton made false statements to agents claiming that he had signed and certified the time sheets and that the number of workers on the time sheets had actually provided the services represented.
“With today’s guilty plea, everyone who has been indicted thus far has admitted to their role in a shameless scheme to defraud the taxpayers. These individuals violated the public trust, and now they will pay the consequences. The plea closes this chapter of our ongoing investigation, but our Public Trust Unit will continue to pursue those involved in similar conduct within Bay County and throughout the Northern District,” U.S. Attorney Keefe said.
Four of the five defendants named in the indictment last November had previously pled guilty. They are former Lynn Haven City Manager Michael Edward White, ECS owner David Mitchelle White, Shannon Delores Rodriguez, a/k/a Shannon Delores Harris, and Joshua Daniel Anderson, owner of Greenleaf Lawn Care of Bay County, all of Panama City.
"The citizens of Florida are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and the individuals who pay them bribes," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "The FBI is committed to aggressively pursuing those who violate the trust placed in them by the public, and holding them accountable for their actions."
As a result of his guilty plea, Horton faces a maximum of 20 years in prison, three years of supervised release, a $250,000 fine, and a $100 special monetary assessment to be paid prior to sentencing. He also agreed to pay full restitution to his victims and to forfeit all property derived from the proceeds of the fraud or used to facilitate it. Sentencing hearing is scheduled for September 29, 2020, at 3:00pm at the United States Courthouse in Tallahassee.
"I am pleased that those that took advantage of us in the aftermath of Hurricane Michael will be held accountable," Sheriff Tommy Ford said. "I look forward to our continuing investigation with the Federal Bureau of Investigation and the U.S. Attorney's Office."
The Federal Bureau of Investigation and Bay County Sheriff’s Office conducted the investigation. The case has been prosecuted by Assistant U.S. Attorney Stephen M. Kunz.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - David HortonKimberly Man Pleads Guilty to Mailing Threatening Letter to Twin Falls County Deputy ProsecutorRead the Press Release
BOISE – Nathaniel Michael West, 23, of Kimberly, Idaho, pleaded guilty to mailing threatening communications, U.S. Attorney Bart M. Davis announced today. West was indicted by a federal grand jury in Boise on January 14, 2020. Sentencing is set for October 7, 2020 before U.S. District Judge Winmill at the federal courthouse in Boise.
According to court records, West admitted that on August 22, 2019, he knowingly sent a threatening letter through the United States Postal Service to a Twin Falls County Deputy Prosecutor. This prosecutor had previously prosecuted West for crimes he committed. West stated in the letter that he was going to get out of prison and the kill the prosecutor and her family. West also threatened to kill a witness from a prior prosecution.
After the prosecutor received the letter, law enforcement officers interviewed West. During the interview, West confessed to sending the letter using the United States Postal Service. West claimed he sent it out of anger and that he wanted scare the threatened parties. West sent the letter from an Idaho Department of Correction facility, where he is currently housed for other crimes.
The charge of mailing threatening communications is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
This case was investigated by the Ada County Sheriff’s Office.
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Kemah Man Guilty of Liberty County Attempted Bank RobberyRead the Press Release
BEAUMONT, Texas – A 59-year-old Kemah, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Jimmy James Mamoth, Jr., pleaded guilty to attempted bank robbery before U.S. District Judge Thad Heartfield on July 13, 2020.
According to information presented in court, on Sep. 27, 2019, a witness observed Mamoth approach the entrance to the Texas First Bank in Hull, Texas, wearing a dark hooded jacket, gloves, a Halloween-style mask on his face, and carrying a duffle bag. The witness honked his vehicle’s horn to draw attention to Mamoth, who subsequently fled into the nearby woods. Law enforcement was able to locate and arrest Mamoth, and from him recovered an Airsoft-style replica gun meant to resemble a Beretta 9mm pistol. Mamoth was indicted by a federal grand jury on Oct. 9, 2019.
As part of his plea agreement, Mamoth admitted his participation in a string of other robberies and attempted robberies, specifically, the robbery of the Arbor 8 movie theater in Austin, Texas, on March 17, 2019; an attempted robbery of the Benchmark Bank in West Lake Hills, Texas, on June 4, 2019; the robbery of the Broadway Bank in Wimberley, Texas, on June 19, 2019; and the robbery of the First National Bank of Hughes Springs in Kilgore, Texas, on June 28, 2019. Mamoth further agreed to pay restitution for the above crimes.
This case is being investigated by the Federal Bureau of Investigation, the Liberty County Sheriff’s Office, the Austin Police Department, the West Lake Hills Police Department, the Hays County Sheriff’s Office, and the Gregg County Sheriff’s Office and is prosecuted by Assistant U.S. Attorneys Christopher Rapp and Rachel Grove.
Jewelry Wholesaler Indicted for $200 Million Ponzi SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Gregory Altieri, the president of LNA Associates, with one count of wire fraud for allegedly running a two-year, $200 million Ponzi scheme based on nonexistent wholesale jewelry deals and false promises of inflated returns. Altieri was arrested today and will be arraigned this morning via video conference before United States Magistrate Judge James Orenstein.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.
According to the indictment, beginning in August 2017, Altieri solicited between $75 million to $85 million from over 80 investors from Queens, Staten Island, Long Island and elsewhere, allegedly to purchase jewelry at “closeout” prices and resell it at a high profit. Altieri promised returns of between 30 and 70 percent in a matter of months. While Altieri initially purchased some jewelry with investors’ money, in approximately May 2018 he began to use new investors’ money to pay earlier investors, representing to the latter group that they were receiving returns on their investments. These purported “returns” were used by Altieri to convince the earlier investors to keep their money with LNA Associates, by “rolling over” their investments into new investments based on false promises to use this money to purchase additional jewelry. By January 2020, when Altieri stopped making paybacks to investors, he owed them approximately $200 million based on the falsely inflated promised returns.
“As alleged, Altieri defrauded investors, including retirees living off their pensions, by representing that he was buying and reselling jewelry for big profits, which was a lie,” stated Acting United States Attorney DuCharme. “This Office is committed to protecting the investing public from con artists who would prey upon our community.”
“Stealing millions based on false promises made to retirees who rely on their pensions is contemptible. We allege Mr. Altieri knew he was going to have problems paying off his first round of investors, but he kept his con going anyway. As a result of his actions, the FBI has provided him with stainless steel jewelry for his wrists today, and a guarantee of working to hold him and others who commit similar frauds accountable for their behavior,” stated FBI Assistant Director-in-Charge Sweeney.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Altieri faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution, assisted by EDNY Special Agent Martin Sullivan.
The Defendant
GREGORY ALTIERI
Age: 53
Melville, New YorkE.D.N.Y. Docket No. 20-CR-249 (BMC)
Jail Inmate Charged with Failing to Update His Sex Offender RegistrationRead the Press Release
ERIE, Pa. - An inmate at the Pamunkey Regional Jail in Hanover, Virginia, has been indicted by a federal grand jury in Erie on a charge of failure to register under SORNA, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Jeremy Christopher Ester, 40, as the sole defendant.
According to the Indictment presented to the court, Ester knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Henderson Man Sentenced to 14 Years for Drug DistributionRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced today to 168 months in prison for drug conspiracy and distribution offenses.
According to court documents, Steven Lamar Cooke, 38, managed a drug distribution conspiracy in 2017 that distributed heroin, cocaine, and fentanyl in the Henderson community. The drug-trafficking organization distributed primarily from a trailer on Brown Hills Road where customers sometimes had to wait in line for their turn to purchase drugs from Cooke or his associates. Cooke also pled guilty to personally distributing a quantity of heroin during the conspiracy time frame. Cooke had a history of other drug distribution-related offenses at the state level.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The North Carolina State Bureau of Investigation, Warren County Sheriff’s Office and the Franklin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Lucy Brown prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:19-CR-2-D.
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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.
Four Sentenced to Federal Prison for Federal Firearms ConspiracyRead the Press Release
Charles Westfall, Jr, age 32, from Clarion, Iowa, Donald Rundall III, age 42, from Stratford, Iowa, Jami Stupka, age 29, from Ames, Iowa and Leah Hanson, age 32, from Cedar Rapids, Iowa, received prison terms, ranging from over 8 years to time served for their roles in a conspiracy to steal, possess, and traffic firearms.
Donald Rundall III and Leah Hanson were each convicted of one count of conspiracy to possess a stolen firearm, one count of possession of a stolen firearm and one count of possession of a firearm by a prohibited person. Jami Stupka was convicted of one count of conspiracy to possess a stolen firearm, and Charles Westfall, Jr., was convicted of one count of possession of a stolen firearm.
Evidence presented by the United States in court revealed before on or about June 17, 2017, Donald Rundall, III and Leah Hanson identified M.C.’s home to Charles Westfall, Jr. and Jami Stupka as containing valuables including firearms. On or about June 17, 2017, defendant Donald Rundall, III, using a crowbar broke into M.C.’s Humboldt County home and garage. Defendants, Charles Westfall, Jr., Donald Rundall, III, Jami Stupka, and Leah Hanson stole valuables including a Mossberg 535 12 gauge shotgun. The weapon and other valuables were concealed at Livermore Mini Storage Units, Leah Hanson’s home as well as other places. Defendants, Charles Westfall, Jr. and Jami Stupka, took a stole TV and the stolen firearm to be bartered, sold, and dispose of to B. H. in exchange for methamphetamine. Charles Westfall, Jr. and Jami Stupka, paid Donald Rundall, III and Leah Hanson in methamphetamine because they expected to obtain methamphetamine in exchange for the TV and firearm. B.H. subsequently sold the firearm to a felon, who could not have lawfully purchased a firearm.
Rundall was sentenced on May 1, 2020, Hanson was sentenced on July 8, 2020, Westfall was sentenced on June 26, 2020, and Stupka was sentenced on June 19, 2020, in United States District Court in Sioux City by United States District Court Chief Judge Leonard T. Strand. Rundall was sentenced to 96 month’s imprisonment, Westfall was sentenced to 104 months’ and 29 days’ imprisonment, and Stupka and Hanson were each sentenced to time served. Rundall, Hanson, Westfall, and Stupka each must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Westfall and Rundall are being held in the United States Marshal’s custody until they can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the United States Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Humboldt County and Wright County Sheriff’s Offices, and the Eagle Grove, Iowa Police Department. The case was prosecuted by Assistant United States Attorneys Mikala M. Steenholdt and Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3024.
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Fort Wayne Man Sentenced to 121 Months in PrisonRead the Press Release
FORT WAYNE – Juan Salas, age 31, of Fort Wayne, Indiana, was sentenced before U.S. District Court Judge Holly A. Brady following his plea of guilty to distributing fentanyl, announced U.S. Attorney Kirsch.
Salas was sentenced to 121 months in prison followed by 8 years of supervised release and was ordered to forfeit $22,839.00 and to pay $2,802.53 in restitution.
According to documents presented in this case, on May 30, 2019, Salas distributed over 40 grams of fentanyl. Salas has a 2010 conviction for possession with intent to distribute cocaine.
The case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets and Gang Task Force with the assistance of the Indiana State Police, the Allen County Sheriff’s Department and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
Former supervisor in DeKalb County’s Tax Commissioner’s Office pleads guilty to bribery and blackmailRead the Press Release
ATLANTA - Gerald D. Harris, a former supervisor in the DeKalb County Tax Commissioner’s Office, has pleaded guilty to accepting bribe payments from customers to unlawfully register vehicles and then trying to blackmail a bribe payer by threatening to inform on her to the FBI.
“By repeatedly accepting bribe payments, Harris peddled his honor for money and in doing so sold out the citizens of DeKalb County – sometimes for as little as $100 per car,” said U.S. Attorney Byung J. “BJay” Pak. “By then attempting to blackmail one of bribe payers, Harris showed his seemingly limitless greed.”
“Harris’s blatant disregard for the law and abuse of his position help to erode the public's trust in government,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We continually work hard with our partners in law enforcement to regain that trust by seeking justice for those who choose their own financial interest over the taxpayers they serve.”
“I applaud the swift effort of the U.S. Attorney's Office, the FBI and other law enforcement agencies in bringing this case to a quick resolve. The DeKalb County Tax Commissioner's Office remains committed to safeguarding the trust of DeKalb's taxpayers and weeding out individuals who act unlawfully in any way,” said DeKalb County Tax Commissioner Irvin J. Johnson.
According to U.S. Attorney Pak, the charges, and other information presented in court: The DeKalb County Tax Commissioner’s Office is an agency of DeKalb County, Georgia responsible for the billing and collection of property taxes, processing of homestead exemptions, and collecting delinquent taxes. In addition, the Motor Vehicle Division of the DeKalb County Tax Commissioner’s Office handled all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes, (b) issuing vehicle tags and titles, and (c) processing vehicle registration renewals for citizens and businesses located in DeKalb County.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner - North Office’s clerks who processed motor vehicle registrations and renewals for customers.
From approximately mid-2018 to November 2019, Harris accepted bribe payments from customers to unlawfully register vehicles or renew vehicle registrations. For example, Harris accepted bribe payments:
- To register vehicles to individuals who did not have Georgia driver’s licenses or identification cards as required, typically in exchange for $200 per vehicle;
- To register vehicles that did not have the required accompanying documentation (such as: titles or Forms MV-1 title/tag application), typically in exchange for $500 to $1,000 per vehicle; and
- To renew vehicles that had not passed emissions tests by falsely entering that the vehicles had emissions exemptions, typically in exchange for $100 per vehicle.
In total, Harris is alleged to have accept at least $30,000 in bribe payments.
In addition to accepting bribe payments, Harris also attempted to blackmail one of the individuals who had been paying him bribe money. On November 18, 2019, DeKalb County Tax Commissioner’s Office fired Harris for accepting bribe payments (as fully detailed above). On the same date, Harris admitted to the FBI that he had accepted thousands in bribe payments in exchange for illegally registering/renewing vehicles for several people, including a person identified as Individual-1.
On December 12, 2019, Harris met with Individual-1 at an Atlanta, Georgia, gas station. During the meeting, Individual-1 (who did not know that Harris had been fired) gave Harris registration documentation so that Harris could register four vehicles. Indvidual-1 gave Harris checks and cash to cover the costs of the required fees and taxes for each vehicle. Given that Harris no longer worked for the DeKalb County Tax Commissioner’s Office, Harris obviously could not register the four vehicles for Individual-1. Nevertheless, Harris accepted and kept the money from Individual-1.
Then on December 17, 2019, Individual-1 sent a series of text messages to Harris requesting that Harris return the registration documentation and money. On December 17 and 18, 2019, Harris sent a series of text messages to Individual-1 where Harris stated that: (a) he was under investigation by the FBI, (b) the FBI has a video of Harris and Individual-1 meeting, (c) “[a]ll of us can be in trouble,” (d) Harris needed to know “how much” money will he be paid not to give information to the FBI, and (e) Harris is “not going to prison empty handed. It’s that simple.”
Based on the conduct set forth above, on February 28, 2020, the U.S. Attorney charged Gerald D. Harris, 51, of Fulton County, Georgia, in a criminal information with one count each of federal program bribery and blackmail. Harris pleaded guilty to both counts.
The FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office are investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Nicholas Hartigan are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- To register vehicles to individuals who did not have Georgia driver’s licenses or identification cards as required, typically in exchange for $200 per vehicle;
Former VA Hospital Nursing Assistant Admits to Murdering Seven Veterans and Assault with Intent to Commit Murder of an EighthRead the Press Release
U.S. Attorney Bill Powell announces a plea in the murders of 8 veteransCLARKSBURG, WEST VIRGINIA – A former nursing assistant pled guilty today in federal court here to murder and assault charges in the deaths of eight veterans at the Veterans Affairs Medical Center (VAMC) in Clarksburg, West Virginia, U.S. Attorney Bill Powell announced.
Reta Mays, 46, of Harrison County, West Virginia, pled guilty today to seven counts of second degree murder in the deaths of veterans Robert Edge, Sr., Robert Kozul, Archie Edgell, George Shaw, W.A.H., Felix McDermott, and Raymond Golden. She pled guilty to one count of assault with Intent to commit murder” involving the death of veteran R.R.P.
“In today’s plea agreement, the defendant has admitted to actions that ended the lives of several military veterans who served our country honorably. Our investigation never lost sight of each of these lives and the sacrifices these men made for their country. The investigative work and the time it took to do it was always done with an eye towards honoring these men. Though we can’t bring these men back because of her evil acts, we hope the conclusion of the investigation and guilty plea helps ease the pain of the victims’ families,” said Powell. “I want to thank the incredible work by the FBI, the VA-OIG, the West Virginia State Police, the Greater Harrison Drug & Violent Crimes Task Force and our prosecution team. I also want to especially thank Attorney General Barr, and the families of the victims who never wavered in their support of this investigation. We look forward to the conclusion of this matter at the sentencing, where we will be seeking the maximum penalty.”
Mays was employed as a nursing assistant at the VAMC, working the night shift during the same period of time veterans in her care died of hypoglycemia while being treated at the hospital. Nursing assistants at the VAMC are not qualified or authorized to administer any medication to patients, including insulin. Mays admitted to administering insulin to several patients with the intent to cause their deaths.
“These cases are tragic and heart breaking,” said Veterans Affairs Inspector General Michael J. Missal. “I thank the VA OIG agents and our law enforcement partners who worked tirelessly to ensure justice was served and that the victims’ families have some measure of closure. They are in our thoughts and prayers as we work with VA to help prevent anything like this from ever happening again.”
“When you break the trust you’re given as a medical professional and break the law, there are consequences,” said FBI Special Agent in Charge Michael Christman. “This was a lengthy and thorough investigation with hundreds of interviews, extensive medical and administrative records to review and forensic testing that needed to be done. These eight Veterans deserved respect and honor. They served our country and we all owe them a debt of gratitude. They didn’t deserve to die at the hands of a nursing assistant who intentionally inflicted pain on them and their families. I commend the work of my agents and our law enforcement partners with the Veterans Affairs Office of Inspector General.”
Mays faces up to life in prison for each count of second-degree murder. Mays faces up to 20 years in prison for assault with intent to commit murder.” 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. Attorneys Jarod J. Douglas and Brandon S. Flower are prosecuting the case on behalf of the government. The Veterans Affairs Office of Inspector General and the FBI investigated. The West Virginia State Police and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, assisted.
U.S. District Judge Thomas S. Kleeh presided.
View the announcement here: https://www.youtube.com/watch?v=kvGG23_mZQg
Former State Senator Sentenced for Making False StatementRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that today WESLEY T. BISHOP, age 52, of New Orleans was sentenced to 4 (four) years of probation, before U.S. District Judge Greg Guidry, for making a false statement, a crime punishable by up to five years’ imprisonment. BISHOP admitted to knowingly and willfully making a false, material statement to the United States Department of Housing and Urban Development (“HUD”) in connection with rental property that he owned. As explained by FBI New Orleans Special Agent in Charge Bryan Vorndran, “Former State Senator Bishop made false statements on HUD paperwork which resulted in Bishop receiving a forgivable $188,000 loan under the “road home” program.”
Pursuant to the plea agreement, BISHOP has agreed to pay restitution of $188,000 to the State of Louisiana, Division of Administration, Office of Community Development, which administers the subject Small Rental Property Program on behalf of HUD. In addition to probation, BISHOP has been ordered to pay a $100.00 special assessment fee.
U.S. Attorney Strasser praised the work and tireless efforts of the HUD Office of Inspector General and the FBI in investigating, and of Assistant United States Attorney Andre J. Lagarde in prosecuting this matter.
Former Pearl Resident Sentenced for Dog FightingRead the Press Release
Jackson, Miss. – Antoine Clayborne, 42, formerly of Pearl, Mississippi, was sentenced today by Senior U.S. District Judge David Bramlette III to 36 months’ probation for his participation in a pit bull dog fighting venture, announced U.S. Attorney Mike Hurst and Dax Roberson, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General. Clayborne was also ordered to pay a $1,500 fine.
Clayborne pled guilty before Judge Bramlette on March 5, 2020, admitting that he trained pit bulls to fight to the death. Clayborne admitted that he entered one of his pit bulls in a dog fight outside the State of Mississippi, his pit bull won the fight, and as a result Clayborne won a substantial amount of money. Law enforcement discovered Clayborne’s dog-fighting activities as a result of a tip from a citizen concerned about the condition of the pit bulls at Clayborne’s house. After investigating the tip, law enforcement officers obtained a search warrant for Clayborne’s residence and seized eleven adult pit bulls and eight pit bull puppies. Law enforcement also seized a variety of equipment commonly used to train pit bulls to fight, including weighted vests, collars and harnesses, a slat mill used to force the dog to walk, two treadmills with boxes built onto them to hold the dog and force it to walk, heavy chains, hanging scales, flirt poles and break/bite sticks. Clayborne’s cell phone contained gruesome videos of dogs fighting until one dog killed the other, text messages with photos of dogs Clayborne had used for dog fights, invitations to enter animals in fights, and financial receipts of wire transfers related to dog fighting ventures.
The case was investigated by the U.S. Department of Agriculture - Office of Inspector General and the Rankin County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Carla J. Clark.
Former Director of Chabad of Poway and Several Co Defendants Plead Guilty to Multi Million-Dollar Tax Evasion and FraudRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorneys Emily W. Allen (619) 546-9738,
Andrew Young (619) 546-7981, and Oleksandra Johnson (619) 546-9769SAN DIEGO – Rabbi Yisroel Goldstein, former director at Chabad of Poway, and five of his associates pleaded guilty in federal court today and Monday to fraud charges, admitting that they participated in a complex, years-long, multi-million dollar tax-evasion scheme and other financial deceptions involving theft of public money.
According to his plea agreement, while Rabbi Goldstein was director of the Poway synagogue, he received at least $6.2 million in phony contributions to the Chabad and affiliated charities and secretly refunded up to 90 percent of the donations to the “donors.” After Rabbi Goldstein provided these donors with fake receipts, they illegally claimed huge tax deductions for these nonexistent donations, and the rabbi kept about 10 percent – more than half a million dollars over the course of the fraud - for himself. Tax losses to the IRS were more than $1.5 million. At least 20 taxpayers were involved in this and related tax-evasion schemes.
This case was under investigation for more than two years before Rabbi Goldstein was shot and wounded during the April 27, 2019 attack on worshippers at the Chabad. In that case, federal civil rights and hate crimes charges are pending against John T. Earnest of Rancho Peñasquitos.
The rabbi was aware of the investigation at the time of the shooting. FBI and IRS agents had searched his home in October of 2018, and he began cooperating with the investigation shortly after that time.
According to his plea agreement, Rabbi Goldstein has agreed to cooperate with ongoing investigations of uncharged co-conspirators and to forfeit $1 million in proceeds and pay restitution of $2.5 million.
“This case has brought us all a great deal of anguish because of the attack on Chabad of Poway,” said U.S. Attorney Robert Brewer. “But whatever a defendant’s dire personal circumstances, or stature in the community, we will always seek justice, first and foremost. We cannot, and will not, sweep serious criminal conduct under the rug. We cannot look the other way because a perpetrator of crime has suddenly become a victim of crime.”
“This case shows the FBI’s dedication to untangling the web of fraud in a complex, multi-million dollar charitable donation scheme that violated the trust of the Chabad of Poway and defrauded the United States government," said FBI San Diego Acting Special Agent-in-Charge Omer Meisel. “The FBI is committed to holding those accountable who use their position and stature in the community as a disguise to commit fraud. All the defendants in this case, including Rabbi Yisroel Goldstein, have admitted their guilt in these fraudulent schemes and will no longer be able to use deceit and lies to cheat those who were intended to receive charitable funds and taxpayer dollars.”
“The Chabad of Poway, which has served its community for decades, was used by Rabbi Yisroel Goldstein and the five co-defendants to evade over $1.5 million in taxes over the last 8 years,” said Ryan L. Korner, Special Agent in Charge of the IRS’s Criminal Investigation Division. “The Chabad was further victimized in April 2019 when a shooter attacked its worshippers, and we recognize the pain that terrible event has caused for the Chabad, Rabbi Goldstein, and the community. Ultimately, the financial fraud schemes uncovered during this multi-year, multi-defendant investigation were egregious and IRS Criminal Investigation has a responsibility to bring to justice those who exploit and manipulate non-profit and religious organizations in order to benefit themselves. The IRS is responsible for protecting honest taxpayers and serving the public by ensuring the integrity of our tax system, which funds our nation’s critical infrastructures and vital programs, including supporting our citizens and small businesses during the ongoing pandemic. The hard work of our Special Agents will not stop despite the ongoing challenges posed by Covid-19. We will continue to work alongside our law enforcement partners, and this week’s six guilty pleas demonstrate our collective efforts to continue to enforce the law and ensure the public trust.”
Five others who participated in the scheme with Rabbi Goldstein also entered guilty pleas in federal court this week, admitting that they knowingly participated by concealing their donations through the Chabad and making false deductions on their tax forms, or by recruiting new taxpayers to participate in the scheme. One taxpayer, defendant Bruce Baker, admitted that he began participating in this scheme with Rabbi Goldstein in the 1980s, and made millions of dollars in fictitious donations over the years.
Rabbi Goldstein admitted today that in one instance in late 2017, he attempted to disguise the source of more than $1.1 million in fraudulent donations by purchasing gold coins worth approximately $1 million. He then delivered the gold to the phony donor.
CLICK HERE - Press Presentation Graphics
There were many schemes within the broader tax-fraud and kickback scheme, dating back to 2010 or earlier and continuing through 2018.
Rabbi Goldstein admitted he defrauded three different Fortune 500 companies by tricking them into matching supposed charitable donations of their employees. Working with the employees, Rabbi Goldstein fabricated fake receipts and then secretly returned their fake “donations.” This allowed the employees to claim tax deductions for the completely fabricated donations, and allowed Rabbi Goldstein to collect the companies’ matching funds—including some that matched double their employees’ donations. Rabbi Goldstein helped to orchestrate this scheme with at least six taxpayer-employees and two other associates who helped recruit new donors or conceal the true recipient of the funds. In total, Rabbi Goldstein defrauded the companies out of at least $134,000, and helped the taxpayer-employees to claim nearly as much in fictitious tax-deductible charitable contributions to the IRS.
Rabbi Goldstein admitted that he also helped an individual conceal more than $700,000 in income by allowing the individual to use Chabad bank accounts to deposit his income, thereby hiding it from the IRS. As his cut, Rabbi Goldstein kept 10 percent of this individual’s income—more than $70,000.
Separate and apart from the tax evasion scheme, Rabbi Goldstein and defendant Alexander Avergoon, who also pleaded guilty today, used false information and fabricated invoices and other records to pretend to be eligible for emergency funds, grants or donations, and private loans. These frauds on the Federal Emergency Management Agency (FEMA), the California Governor’s Office of Emergency Services (Cal OES), and private foundations resulted in losses to these programs of at least $875,000. Rabbi Goldstein and Avergoon have agreed to pay restitution to recoup these losses and reimburse these programs.
The rabbi also admitted in his plea agreement that he defrauded San Diego County courts by falsely certifying that co-conspirators and associates had performed volunteer work at the Chabad or its affiliated entities, so that those associates could submit fake reports to the courts that they had fulfilled sentencing requirements for criminal offenses showing dozens or even hundreds of community service hours. Finally, Rabbi Goldstein admitted that, along with Avergoon, he fraudulently obtained loans from banks and mortgage lending businesses by submitting false information in loan applications that they verified for one another.
“Sadly, the facts of this case show a willful, devious effort to deceive on the part of a trusted community leader,” Brewer said. “Evading taxes causes harm not just to the government, but also to one’s fellow citizens, who are forced to bear a heavier burden. Members of the Chabad of Poway are also victims of this crime, for those fake donations certainly did not benefit their congregation.
“There is no doubt that Rabbi Goldstein was the victim of a heinous hate crime that terrorized him and Chabad congregants,” Brewer said. “This is a mitigating factor, but this is no excuse. We acknowledge the rabbi’s cooperation and his community leadership in the wake of the shooting. But this illegal conduct had been going on for many years, and it cannot be ignored.”
U.S. Magistrate Judge Karen S. Crawford presided over today’s arraignment and guilty plea. Rabbi Goldstein is next scheduled to appear at a sentencing hearing on October 19, 2020 at 9 a.m. before U.S. District Judge Cynthia Bashant.
The five related guilty pleas involve a series of fraud and tax evasion schemes by Rabbi Goldstein’s co‑defendants:
1. Defendant Alexander Avergoon
Avergoon admitted that from 2010 to 2015, he recruited at least nine taxpayers who made more than $275,000 in fraudulent “donations” to the Chabad, then used Avergoon as a conduit to secretly return 90 percent of the money to the purported “donors.” He also admitted that he joined Rabbi Goldstein in the grant fraud scam in which they obtained hundreds of thousands of dollars in misappropriated grant funds.
As part of the government benefits fraud scheme, Avergoon used shell companies, including “Imagination Construction Company,” to create fictitious and backdated invoices for services like carpet installation, repairs to the Chabad of Poway’s HVAC system, and replacing damaged books and other supplies—even though Avergoon had never performed these services. In some cases, Avergoon would give Goldstein several fake bids from different shell companies, so that Rabbi Goldstein could trick the grant program administrators into believing he had complied with their competitive bidding requirements. Avergoon and Goldstein pretended that the government grant funds would be used for facilities upgrades, security systems, and community programs. But in reality, the money often went straight to Goldstein’s and Avergoon’s pockets; other times they used portions of it to pay contractors who had in fact charged much lower prices than reflected on Avergoon’s phony paperwork.
Apart from his fraudulent partnership with Rabbi Goldstein, Avergoon also admitted to participating in separate real estate Ponzi schemes from 2010 to 2016, in which he cheated retirement investors out of a total of $12 million. Avergoon was a San Diego-based real estate agent, and he used his industry knowledge and reputation to target trusting victims who would invest in what they thought was the purchase of rental property. Avergoon promised monthly dividends that would be paid from rental income. He created written investment materials like prospectus and projected income and expenses calculations, designed to give investors the false impression that their money would be safely tucked away in passive-income retirement investments. But in truth, instead of using investors’ money to buy rental properties as he promised, Avergoon spent the money himself and just pretended that he had purchased the apartment buildings and office space he advertised. In true Ponzi fashion, for a time, Avergoon made the promised dividend payments—but rather than using rent income, he funded those payments using new investor money.
Avergoon deceived more than a dozen unwitting investors, and convinced them to part with at least $5 million. When an investor would ask to cash out, he encouraged them to re-invest, and at one point he pretended to “roll over” their retirement investments to purchase a multi-million dollar commercial building. In reality, he bought that building with a loan, not with investor money, and again diverted their money to his own personal use. He created fake partnership agreements, false purchase documents and deeds, and other fictitious records, and forged the signatures of his investors to conceal the fraud—then laundered the proceeds in order to disguise the true source and ownership of the money.
Avergoon did not stop there. He convinced investors to part with another $5 million or more by pretending to use their money to fund short-term, low-risk loans supposedly secured by the borrowers’ high-end San Diego homes. But in reality, there were no “borrowers”—Avergoon used his real estate connections to identify homes he could pose as collateral, and he simply doctored up fake loan agreements and forged the borrowers’ signatures. In some cases, the individuals he claimed were the borrowers did not even own the homes that were purportedly used as collateral. Avergoon made fake loan agreements, Deeds of Trust, mortgage Notes, and other official-looking documents, and he even created fake notary stamps and San Diego County Recorder’s Office markings to make the paperwork appear legitimate. Once again, Avergoon used new investor money to make occasional payments to his victims, to make it appear that the “loans” were performing. But in truth, he diverted the money to his own use and the “investments” were worthless.
Avergoon was indicted in August 2019 and apprehended in Latvia. He was extradited to the United States in November 2019 and has remained in custody since his extradition and initial appearance in federal court in San Diego. U.S. Magistrate Judge Barbara L. Major presided over his change of plea hearing today. Avergoon is next scheduled to appear at a sentencing hearing on October 19, 2020 at 9 a.m. before U.S. District Judge Cynthia Bashant.
2. Defendant Bruce Baker
Bruce Baker pleaded guilty to conspiring with Rabbi Goldstein to defraud the IRS and file false tax returns beginning as early as the mid-1980s. For three decades, Baker admitted that he used fabricated records from Goldstein to fraudulently reduce his tax liabilities by pretending he was eligible for tax deductions for millions of dollars in nonexistent “gifts to charity” he reportedly made to the Chabad. In reality, Goldstein secretly returned 90 percent of Baker’s donations, and kept a 10 percent fee.
This part of the scheme was especially complex and intricate. Rather than simply paying cash or returning Baker’s money in direct payments, Goldstein would pay Baker’s creditors, make large purchases on his behalf, give money to Baker’s relatives, or pay off bills on behalf of his family. To disguise the repayments, Rabbi Goldstein delivered the money in clandestine ways by, for example, paying:
- around $200,000 to Baker’s business partner to buy the partner’s share of their business assets on Baker’s behalf;
- more than $420,000 in tuition and fees for Baker’s son to attend dental school and a post-doctoral residency in dentistry;
- at least $90,000 to a construction company for Baker’s benefit, another $200,000 directly to a building contractor working for Baker and $129,000 to a home builder, and more than $300,000 to Baker’s account at a construction and building supply company; and
- $200,000 from the proceeds of the sale of Goldstein’s property paid directly to Baker’s son.
Over the years, Baker admitted that he “donated” at least $2.6 million to Chabad of Poway, with at least $2.4 million secretly funneled back from Goldstein to Baker. In total, Baker’s and Goldstein’s scheme cost the IRS around $644,000 in tax losses.
Separate from his dealings with Rabbi Goldstein, Baker also admitted that he engaged in a similar tax evasion scheme with the director of a separate religious congregation and community organization in San Diego. In 2006, that individual offered Baker and his family an arrangement where they would pretend to make an “in-kind” donation to the religious organization of an ancient Iranian Torah—although no such Torah existed and the “in-kind” donation was a hoax. This other director provided Baker with a fraudulent appraisal that valued the Torah at $1.2 million. Baker and his family used the fake paperwork to claim exorbitant tax deductions, and gave the co-conspirator a 10 percent fee—or $120,000—in return. On top of that, the director charged Baker $20,000 for the fake appraisal.
U.S. Magistrate Judge Karen S. Crawford presided over Baker’s arraignment and guilty plea on July 13, 2020. Baker is scheduled for sentencing on October 19, 2020, at 9 a.m. before U.S. District Judge Cynthia Bashant. He has agreed to make full restitution to the IRS including all unpaid taxes, penalties, and interest.
3. Defendant Bijan Moossazadeh
Bijan Moossazadeh began participating in the tax evasion scheme with Rabbi Goldstein as early as 2012. As he admitted in his plea agreement, between 2012 and 2018 he pretended to “donate” a total of around $290,000 to Chabad of Poway. But instead of using the money for charitable purposes, Goldstein secretly funneled back 90 percent of the funds to Moossazadeh. Even so, Goldstein generated fraudulent donation receipt letters for Moossazadeh, so he could fraudulently verify that the money was indeed a “gift to charity.” Moossazadeh fraudulently reduced his tax liability—or intended to, before he learned of this investigation in 2018—by more than $91,500.
Goldstein concealed his repayments by giving Moossazadeh large cash payments that would be difficult to trace. And he communicated in code when he had cash available, referring to his cash supplies as “challah” and his supplier as “the baker.” In 2016, for example, Goldstein texted Moossazadeh to tell him he had cash: “I got a call from the Baker today he’s preparing for Friday how many Chalah do you need?” Moossazadeh answered, “22”—by which he meant, $22,000. The next day, Goldstein followed up: “Good morning[.] The baker came in earlier and has today 22 challa ready for pickup[.] Let me know what time?” Moossazadeh met Rabbi Goldstein at the Chabad on March 16, 2016, where he delivered a $22,000 check made payable to the Chabad (with “Contribution” written in the memo line), and in exchange Goldstein gave him $20,000 in cash (keeping the remaining $2,000). Goldstein also gave Moossazadeh a fraudulent donation receipt thanking Defendant for his “generous tax deductible donation.”
They followed a similar pattern in 2018, when Goldstein again used coded text messages to alert Moossazadeh that he did not have cash ready and available: “Just got a call the baker is not baking challah this Friday-will be back next Friday and have the full order.” A week later, Goldstein followed up: “Cook just finished . [] Come and pickup[.]” Moossazadeh admitted in his plea agreement that he met Goldstein at the Chabad the next day and delivered a check for $33,000, made payable to the Chabad (again with “Contribution” written in the memo line). In exchange, Goldstein gave Moossazadeh $30,000 in cash (keeping the remaining $3,000), along with another fraudulent donation receipt.
In August 2018—just at the time that court documents show Goldstein had offered to launder cash proceeds for an individual who he only later discovered was an undercover federal agent--—Rabbi Goldstein let Moossazadeh know he had more cash available. He texted Moossazadeh: “I have a new baker who can bake many more challah almost unlimited[.] Let Joe [SHEMIRANI] know that a new baker came to town and to let me know how many challah to bake ? Can do as many as you need .. unlimited[.]” But just a few months later in October 2018, Moossazadeh learned that Rabbi Goldstein was under investigation. He did not attempt to deduct any of his 2018 purported donations to the Chabad.
U.S. Magistrate Judge Karen S. Crawford presided over Moossazadeh’s arraignment and guilty plea on July 13, 2020. He is scheduled for sentencing on October 19, 2020, at 9 a.m. before U.S. District Judge Cynthia Bashant. He has agreed to make full restitution to the IRS including all unpaid taxes, penalties (including a 75 percent fraud penalty), and interest.
4. Defendant Yousef Shemirani
Yousef Shemirani admitted in his plea agreement that he participated in the tax scheme from 2011 to 2016, and in total he pretended to “donate” $137,650 to Rabbi Goldstein and the Chabad of Poway. In return, Goldstein secretly funneled approximately 90 percent of the “donations” back to Shemirani, keeping 10 percent (around $13,765). Shemirani’s participation in the scheme resulted in a tax loss to the IRS of more than $39,000.
As with Moossazadeh, Rabbi Goldstein used coded language to discuss the scheme with Shemirani, and he concealed his return of the “donations” by returning Shemirani’s payments in large amounts of cash. As Shemirani admitted in his plea agreement, Goldstein texted him in June 2015 to alert him that he would have cash available: “The baker will be back in July and will have all the Chalah you need :)” In July 2015, he followed up: “I just got a call from the Baker he may be in this Friday do you still need Chalah?” A year later, Goldstein continued the disguise, alerting Shemirani: “The Baker came today and actually be a nice amount of fresh Chalah – you can come by today and pick it up.”
Shemirani heard from Rabbi Goldstein again on October 20, 2018, when Goldstein appeared unannounced at Shemirani’s door. As Shemirani admitted, Goldstein warned that he was under investigation and that his home and office had been searched by federal agents. He alerted Shemirani that the next time they saw each other, Goldstein might be “wearing a wire.” Shemirani understood this was a warning, and he took steps to amend his fraudulent tax returns in response.
Shemirani was arraigned and entered a guilty plea on July 13, 2020, before U.S. Magistrate Judge Karen S. Crawford. His sentencing is scheduled on October 19, 2020, at 9 a.m. before U.S. District Judge Cynthia Bashant. He has agreed to make full restitution to the IRS including all unpaid taxes, penalties (including a 75 percent fraud penalty), and interest.
5. Defendant Boris Shkoller
Boris Shkoller admitted that from 2015 to 2016, he “donated” $122,000 to Chabad of Poway and secretly received 90 percent—or $109,800—back from Goldstein. Shkoller used Alexander Avergoon as a conduit to make the payments and receive the kickbacks. Avergoon also passed along fraudulent and backdated donation receipt letters that fraudulently verified Shkoller’s “generous tax deductible donation[s].” Shkoller admitted that he filed fraudulent tax returns for both years, resulting in tax losses to the IRS of more than $36,000.
Shkoller was arraigned and pleaded guilty today before U.S. Magistrate Judge Karen S. Crawford. His sentencing is scheduled on October 19, 2020 at 9 a.m. before U.S. District Judge Cynthia Bashant. He has agreed to pay $53,772 in restitution to the IRS for his tax underpayment, penalties, and interest.
U.S. Attorney Brewer commended the excellent work of prosecutors Emily Allen, Andrew Young and Oleksandra Johnson as well as case agents from the FBI and IRS.
DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prisonAlexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prisonAggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prisonMoney Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prisonBruce Baker, Case Number 20CR1912-BAS Age: 74 La Jolla
Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371
Maximum Penalty: Five years in prisonBijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prisonYousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prisonBoris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prisonINVESTIGATING AGENCIES: Federal Bureau of Investigation, Internal Revenue Service
CLICK HERE - Avergoon Indictment CLICK HERE -Goldstein Plea Agreement CLICK HERE - Avergoon Plea Agreement CLICK HERE - Shkoller Plea Agreement CLICK HERE - Goldstein Information CLICK HERE - Baker Information CLICK HERE - Moossazadeh Information CLICK HERE - Shemirani Information CLICK HERE - Shkoller Information
Former Atomwaffen Division Leader Pleads Guilty to Swatting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former leader of the white supremacist group Atomwaffen Division pleaded guilty today to charges related to his role in a conspiracy that conducted multiple swatting events targeting journalists, a Virginia university, a historic Virginia church, and a former cabinet official.
According to court documents, John Cameron Denton, 26, of Montgomery, Texas, is a former leader of the Atomwaffen Division in Texas. From October 2018 to at least April 2019, Denton and several others conspired together to conduct “swatting” calls. Swatting is a harassment tactic that involves deceiving dispatchers into believing that a person or persons are in imminent danger of death or bodily harm and causing the dispatchers to send police and emergency services to an unwitting third party’s address.
“Swatting is a dangerous act with potentially tragic consequences,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Sending law enforcement and emergency responders rushing to an individual’s home, business, or place of worship, in an effort to target individuals because of their race or religious affiliation or simply to create chaos shows both criminal behavior and a complete disregard for public safety. This office is committed to locating and investigating individuals responsible for such threats, and when appropriate, will seek federal charges.”
According to court documents, Denton participated in a conspiracy that conducted three swatting calls that occurred here in the Eastern District of Virginia: a former Cabinet official living in Northern Virginia on Jan. 27, 2019; Old Dominion University on Nov. 29 and Dec. 4, 2018; and Alfred Street Baptist Church on Nov. 3, 2018.
Additionally, Denton chose at least two targets to “swat”: the New York City office of ProPublica, a non-profit newsroom that produces investigative journalism; and an investigative journalist that produced materials for ProPublica. Denton chose the two targets because he was furious with ProPublica and the investigative journalist for publishing his true identity and discussing his role in Atomwaffen Division.
“The FBI takes swatting seriously because it can have harmful consequences and puts innocent people and first responders at risk,” said James A. Dawson, Special Agent in Charge of the FBI's Washington Field Office Criminal Division. “Putting the lives of others in danger by swatting is senseless and criminal. The FBI's Washington Field Office will continue to work with our partners to locate and apprehend those who are responsible for such threats.”
During the investigation, Denton unknowingly met with an undercover law enforcement officer and told the undercover officer about his role in the swatting conspiracy. Denton stated that he used a voice changer when he made swatting calls, and admitted that he swatted the offices of ProPublica and the investigative journalist. He also stated that it would be good if he was “raided” for the swatting because it would be viewed as a top tier crime, and he felt that his arrest could benefit Atomwaffen Division.
Denton pleaded guilty to conspiracy to commit an offense against the United States, interstate threats to injure. He faces a maximum sentence of five years in prison when sentenced on November 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI's Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Carina A. Cuellar is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-154.
Five Charged as Cocaine Pipeline to Rhode Island ShutdownRead the Press Release
PROVIDENCE – An alleged drug trafficking pipeline that U.S. Postal Inspection Service agents believe may have been responsible for the shipment through the U.S. Mail of upwards of 100 kilos of cocaine into Rhode Island from Puerto Rico was shut down today when five individuals were charged in U.S. District Court in Providence and more than a dozen firearms were seized.
U.S. Postal Inspection Service (USPIS) agents and law enforcement agents and officers from the Rhode Island High Intensity Drug Trafficking Area Task Force culminated an investigation of the alleged drug trafficking organization with the execution of federal court-authorized search warrants at four locations in Woonsocket, seizing 16 firearms, multiple military style bullet proof vests, ammunition, cross bows, a kilogram of cocaine, a cocaine press, and other items used in the distribution of cocaine.
Also today, USPIS agents intercepted and seized three packages sent from Puerto Rico to addresses in Woonsocket. A federal court-authorized search of the packages resulted in the seizure of eight kilos of cocaine.
According to information presented to the court, 15 unsecured firearms, many of which were loaded, to include handguns, shotguns and rifles, including a modified AK-47, were seized from a Woonsocket residence. The firearms were discovered by members of law enforcement out in the open and within reach of a 6-year-old child who was in the residence at the time. Luis Alvarez, 25, was arrested, charged by way of a federal criminal complaint with conspiracy, possession with intent to distribute cocaine, and using a communication facility (U.S. Mail) to commit a drug felony.
A loaded firearm was also seized from another Woonsocket residence searched today by law enforcement, where William Lugo, 29, was arrested, charged by way of a federal criminal complaint with conspiracy, possession with intent to distribute cocaine, and using a communication facility (U.S. Mail) to commit a drug felony. According to court documents, Lugo is currently on state probation related to a 2016 firearm conviction.
According to court documents, a USPIS investigation identified approximately 55 Priority Mail packages alleged to contain one or more kilograms of cocaine that were shipped from different post offices in Puerto Rico to various addresses in Woonsocket since January 2019. Often times, multiple packages were mailed on the same day. The investigation showed that the parcels’ sender names were not associated with the listed return address, and similarly, the listed recipients were not associated with the Rhode Island addresses to which the parcels were sent. Many of the parcels had similar weights, and some bear similar handwriting.
It is alleged that several individuals worked together to track the shipments through the U.S. Postal Service, retrieve the Priority Mail parcels, and deliver them to other members of the drug trafficking organization at the locations searched today by law enforcement.
Also arrested today, charged by way of federal criminal complaints with conspiracy, possession with intent to distribute cocaine, and using a communication facility (U.S. Mail) to commit a drug felony, were Natasha Belardo, 27, of Woonsocket, and Hector G. Rios, 37, of Cranston.
An arrest warrant has been issued for a fifth person, Victor L. Casanova, 26, of Woonsocket. Casanova is charged by way of federal criminal complaint with conspiracy, possession with intent to distribute cocaine, and using a communication facility (U.S. Mail) to commit a drug felony.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The investigation and today’s arrests and seizures are announced by United States Attorney Aaron L. Weisman, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
United States Attorney Aaron L. Weisman acknowledges and thanks the Woonsocket Police Department for their assistance today in the execution of the search warrants and in the arrest of Alvarez, Lugo, and Belardo.
The Rhode Island HIDTA Task Force is managed by the Rhode Island State Police and is comprised of law enforcement agents and officers from the Rhode Island State Police, Lincoln Police Department, Providence Police Department, North Providence Police Department, Middletown Police Department, West Warwick Police Department, Bristol Police Department, ATF, DEA, Homeland Security Investigations, ACI Special Investigative Unit, and Rhode Island National Guard Counterdrug Program.
The case is being prosecuted by Assistant U.S. Attorney Christine D. Lowell and Denise M. Barton.
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Federal Prosecutions Serve as Reminder to Comply with Tax Obligations as Revised Filing Deadline ArrivesRead the Press Release
CHICAGO — With the upcoming arrival of Tax Day on July 15, the U.S. Attorney’s Office and IRS Criminal Investigation Division in Chicago remind taxpayers to accurately file their returns and promptly pay any money owed.
The new deadline to file and pay 2019 income taxes and estimated taxes is Wednesday, July 15, 2020. The federal government and state of Illinois postponed the original filing deadline of April 15 due to the COVID-19 pandemic.
Tax evaders face criminal charges, including potential incarceration, as well as civil penalties, and they remain responsible for all taxes and interest due, said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Taxes are how governments provide essential services,” said U.S. Attorney Lausch. “Tax offenses are neither victimless nor without consequence. Our office strives to preserve the integrity of the federal tax system through vigorous enforcement of the internal revenue laws.”
“As the tax filing deadline quickly approaches, I am asking all citizens to file correct and accurate tax returns and to pay their share of taxes,” said Special Agent-in-Charge Enstrom. “We all pay when others cheat the government. IRS Criminal Investigation, together with the U.S. Attorney’s Office, works year-round to make certain that those who willfully defy the tax laws will be investigated and criminally prosecuted. Taxpayers are encouraged to visit the IRS.gov website for tips on filing a tax return accurately and searching for a reputable return preparer.”
Several Chicago-area defendants have recently been prosecuted in federal court for a variety of tax violations, exemplifying the serious nature of the offense.
MOHAMMAD KHATIB and his wife, LISA KHATIB, pleaded guilty to filing false tax returns. The couple concealed more than $2.2 million in taxable income from their business in south suburban Harvey, leading to a total tax loss of at least $822,266. U.S. District Judge Sharon Johnson Coleman sentenced Mohammad Khatib to two years in federal prison, and Lisa Khatib to six months of home confinement. The government was represented by Assistant U.S. Attorney Sean J.B. Franzblau.
SAMANTHA RILEY, of Oak Park, pleaded guilty to stealing federal tax refunds in other taxpayers’ names and directing the money to be deposited into her personal bank accounts. Riley used the illegal proceeds to purchase clothing at Gucci and to make a down payment on a Porsche Cayenne. U.S. District Judge Virginia M. Kendall sentenced Riley to five years of probation and ordered her to pay $77,726 in restitution to the IRS. The government was represented by Assistant U.S. Attorney Sean K. Driscoll.
Another recent tax prosecution resulted in a term of imprisonment for a Chicago business owner for filing a false tax return. PATRYK TRYNDA, the sole owner of Kitchen and Bath Design Inc., failed to report $4.03 million of gross receipts for 2015 and 2016, resulting in tax losses of $345,091. Trynda also employed at least eleven individuals but failed to pay payroll taxes to the IRS for the years 2015, 2016, and 2017, causing $166,617 in additional tax losses. U.S. District Judge Andrea R. Wood sentenced Trynda to a year and day in federal prison and ordered him to pay a fine of $10,000. The government was represented by Assistant U.S. Attorney Jordan Matthews.
A federal prison sentence was also handed down to ROBERT S. WAKSMUNDZKI, of Chicago and Palos Hills, on conspiracy and false tax return charges. For several years Waksmundzki significantly underreported income he received from operating multiple websites, including Torrentz, through which visitors were re-directed via links to other sites where they could download motion picture content without the authority of lawful copyright holders. U.S. District Judge Edmond E. Chang sentenced Waksmundzki to a year and a day in federal prison and ordered him to pay $194,166 in restitution to the IRS. The government was represented by Assistant U.S. Attorney Sean K. Driscoll.
RICHARD T. DAVIS, the owner of a McHenry County tooling and plastics business, pleaded guilty to diverting nearly $500,000 in business receipts into his personal checking account and failing to report the income on his personal tax return. U.S. District Judge Philip G. Reinhard sentenced Davis to two years of probation and ordered him to pay restitution of $113,845 to the IRS. The government was represented by Assistant U.S. Attorney Michael Love.
For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website at https://www.irs.gov/newsroom/irs-tax-tips. Taxpayers facing hardships due to COVID-19 may also find assistance by visiting the official IRS website at https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments.
Federal Judge Sentences Serial Bank Robber to over 10 YearsRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced John Howard Johnson, 65, to 130 months in prison followed by three years of supervised release, in connection with a series of armed bank robberies he committed in 2019, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Judge Cogburn also ordered Johnson to pay $8,569 as restitution.
According to filed court documents and today’s sentencing hearing, between July 3, 2019, and August 23, 2019, Johnson robbed four banks in North and South Carolina. Court records show that on July 3, 2019, Johnson entered a BB&T bank located at 174 Meeting Street, in Charleston, S.C., and passed a demand note written on an envelope to a teller that read, “I have a gun. Give me $100s and $50s.” According to court records, Johnson lifted his shirt and exposed what appeared to be a firearm and threatened to shoot the teller. The teller placed $1,800 into an envelope and gave it to Johnson, who then fled the scene in a vehicle.
According to court records, the second bank robbery occurred on July 23, 2019. On that date, Johnson entered the First Bank located at 201 Market Street, in Wilmington, N.C., and, similar to the first robbery, Johnson passed a demand note to the teller, threatening to kill the teller and asking for cash. After the teller handed Johnson the money, Johnson again fled in his vehicle. The next bank robbery occurred on July 31, 2019, at the BB&T bank located at 150 S. Main Street, in Mount Holly, N.C. As with the prior robberies, Johnson entered the bank, passed a demand note written on an envelope to a teller that read, “I have a gun in my shorts. Give me all of your 50s and 100s. Don’t make me kill you. Don’t make me shoot you.” After the teller put the cash into an envelope and gave it to Johnson, the defendant fled in the same vehicle.
According to court records, on August 23, 2019, Johnson entered the TD Bank located at 535 Greenville Highway, in Hendersonville, N.C., and again passed a demand note to the teller that read, “This is not a joke, I have a gun, I will kill you.” Johnson took the money the teller handed him and left the bank in his vehicle.
Law enforcement arrested Johnson in Charleston in September 2019. On February 3, 2020, he pleaded guilty to bank robbery charges. Johnson is in federal custody and will be transferred into custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney thanked the FBI, the Mt. Holly Police Department, the Hendersonville Police Department, the Wilmington Police Department, the Charleston Police Department and the Sever County Police Department for investigation of this case.
Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Federal Grand Jury in Waco Indicts Killeen Woman in Connection with the Disappearance of U.S. Army Specialist Vanessa GuillenRead the Press Release
In Waco today, a federal grand jury indicted 22-year-old Cecily Aguilar in connection with the disappearance of U.S. Army Specialist Vanessa Guillen, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and U.S. Army Criminal Investigative Command (USACID) Special Agent in Charge Vanessa Neff at Fort Hood.
The federal grand jury indictment charges Aguilar with one count of conspiracy to tamper with evidence and two substantive counts of tampering with evidence. Aguilar faces up to 20 years in federal prison for each count upon conviction.
According to court records, U.S. Army Specialist Aaron Robinson told Aguilar that he killed a female soldier by striking her in the head with a hammer while on Ft. Hood on April 22, 2020. Robinson further admitted to Aguilar that he transferred the woman’s body off of Ft. Hood to a remote site in Bell County. Subsequently, Robinson enlisted the help of Aguilar in disposing of the victim’s body. At a later time Aguilar recognized the deceased, whom she helped Robinson mutilate and dispose of, as Vanessa Guillen.
The indictment alleges that from April 22, 2020, through July 1, 2020, Aguilar conspired with Robinson to corruptly alter, destroy, mutilate and conceal evidence, including the victim’s body in order to prevent Robinson from being charged with and prosecuted for any crime. The indictment also alleges that on April 23, 2020, and on April 26, 2020, Aguilar tampered with evidence in this case, including the victim’s body, to impair its integrity and availability for use in an official proceeding.
During a previously scheduled court hearing in Waco today, U.S. Magistrate Judge Jeffrey C. Manske arraigned Aguilar on the indictment now pending against her. A not-guilty plea was entered by Aguilar’s counsel. Judge Manske also ordered that Aguilar remain in federal custody until further notice. No further court dates have been scheduled.
Agents and investigators from USACID, FBI, Texas Rangers, Bell County Sheriff’s Office, Killeen Police Department, Belton Police Department, Texas Parks and Wildlife and the U.S. Marshals Service are continuing to investigate this case. Assistant U.S. Attorneys Mark Frazier and Greg Gloff are prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.