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27 August 2020
Sioux Falls Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Being a Felon in Possession of a Firearm was sentenced on August 25, 2020, by U.S. District Judge Lawrence L. Piersol.
Levi Shanteau, age 25, was sentenced to 21 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Shanteau was indicted by a federal grand jury on March 3, 2020. He pled guilty on June 10, 2020.
The conviction stemmed from an incident on January 30, 2020, in Sioux Falls, where police responded to an escalating violent situation. Levi Shanteau left the house as the police arrived and a loaded handgun was found tucked in his pants. Shanteau was on probation at the time for a 2018 felony drug conviction, which he knew prohibited him from possessing a gun.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Shanteau was immediately turned over to the custody of the U.S. Marshals Service.
Serial Armed Robber Sentenced to 9 YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Nicholas K. Murn, 26, Whitewater, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to nine years in federal prison, for committing five armed robberies of Rock County businesses during a two-week period of time in October 2019. His term of imprisonment will be followed by a three-year term of supervised release.
Murn committed the following robberies:
1. Tex’s Grocery, 1909 Saint Lawrence Avenue, Beloit, Wisconsin, on October 17, 2019;
2. Casey’s General Store, 464 S. John Paul Road, Milton, Wisconsin, on October 23, 2019;
3. Stop N’ Go, 3515 E. Milwaukee Street, Janesville, Wisconsin, on October 24, 2019
4. Mulligans BP Convenience, 3961 Milton Avenue, Janesville, on October 26, 2019; and
5. Rollette Oil Gas Station, 1451 Madison Road, Beloit, on October 30, 2019.
Because Murn brandished a firearm during each robbery, he was subject to a mandatory minimum seven-year sentence, which is what he asked Judge Conley to impose. Although Murn did not have a prior criminal history, Judge Conley denied his request because of the trauma Murn inflicted on the victims.
The charges against Murn were the result of an investigation conducted by the Beloit, Janesville, and Fort Atkinson Police Departments, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Rosebud Woman Sentenced for Threatening a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, woman convicted of Influencing a Federal Officer by Threat was sentenced on August 24, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Jamie E. Oliver, a/k/a Jamie E. Decory, age 35, was sentenced to 4 years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Oliver was indicted by a federal grand jury on February 11, 2020. She pled guilty on August 24, 2020.
The conviction stemmed from an incident that occurred on October 6, 2019, in Mission, South Dakota. On that date, a Rosebud Sioux Tribe Law Enforcement Services Officer responded to a call for service. Oliver was arrested for assaulting another individual. While she was being transported to the Rosebud Sioux Tribe Adult Correctional Facility, Oliver remarked that she was going to remember the officer and take the officer’s life. During transport, Oliver continued to threaten to murder the law enforcement officer, who was employed by the Rosebud Sioux Tribe Law Enforcement Services.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Oliver was immediately released.
Roanoke Woman Pleads Guilty to Theft of Public MoneyRead the Press Release
ROANOKE, Va. – A Roanoke woman, who conspired with others to enrich themselves by obtaining federal income tax refunds from the IRS to which they were not entitled, pleaded guilty yesterday in U.S. District Court in Roanoke, United States Attorney Thomas T. Cullen announced.
Michelle Coppola, 59, a resident of Roanoke, Va., pleaded guilty yesterday to one count of conspiring to knowingly and willfully commit the offense of theft of public money. Coppola will be sentenced November 13, 2020.
Coppola admitted today to conspiring with Osazuwa Peter Okunoghae, and others, from August 2012 through April 2014 in the Western District of Virginia and Eastern District of Texas to steal IRS tax refunds that were not their own.
According to court documents, Coppola knew the IRS tax refunds she was receiving were not her own and that it was therefore illegal for her to receive them. Throughout the course of the scheme, Coppola received approximately $53,470 is fraudulent IRS tax refunds to which she was not entitled.
The investigation of the case was conducted by the Internal Revenue Service. The prosecution of Coppola and her co-conspirators is being handled by Assistant United States Attorney Charlene R. Day for the Western District of Virginia and Assistant United States Attorney Nathaniel C. Kummerfeld for the Eastern District of Texas.
Rapid City Man Charged with Unlawful Possession of FirearmsRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person and Possession of a Stolen Firearm.
Nicholas Carlow, age 21, was charged on August 20, 2020. Carlow appeared before U.S. Magistrate Judge Daneta Wollmann on August 26, 2020, and pleaded not guilty to the charges. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Carlow, previously convicted of a felony and prohibited from possessing firearms, possessing a Cugir Arms Factory semi-automatic pistol and a stolen Ruger semi-automatic pistol in March and July 2020 at Rapid City. The charges are merely an accusation and Carlow is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Carlow was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm and Ammunition by a Prohibited Person.
Allen Libby, age 29, was charged on August 20, 2020. Libby appeared before U.S. Magistrate Judge Daneta Wollmann on August 26, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Libby, previously convicted of a felony and prohibited from possessing firearms, possessing a 9mm semi-automatic pistol in April 2020 at Rapid City. The charge is merely an accusation and Libby is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Libby was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Failure to Register as a Sex Offender.
Jasper Chase Alone, age 34, was charged on August 20, 2020. Chase Alone appeared before U.S. Magistrate Judge Daneta Wollmann on August 26, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Chase Alone knowingly failing to update his sexual offender registration between November 2019 and March 2020. The charge is merely an accusation and Chase Alone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Chase Alone was released pending trial. A trial date has not been set.
Quapaw Man Sentenced to Life for Sexually Abusing a Child Under 12Read the Press Release
A federal judge sentenced a Quapaw man today for sexually abusing a child under 12 years of age in Indian Country, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Wilkie Bill Burtrum, 60, to life in prison for the aggravated sexual abuse of a minor in Indian Country and to 360 months for abusive sexual contact with a child under 12 in Indian Country. Burtrum previously spent 14 years in federal prison for sexually abusing two other children.
“After repeated convictions for child molestations, a life sentence of imprisonment was the only way to protect children from this monster. I am so proud that a young victim bravely spoke up and helped us stop Burtrum from hurting any other children,” said U.S. Attorney Trent Shores. “Because of a team of committed investigators, prosecutors, and victim specialists, Wilkie Burtrum was brought to justice. We stand ready to help any other child victim who may want to come forward.”
Burtrum was convicted of abusing the victim between August 2018 and October 2019. During his March trial, the prosecution contended that the defendant paid extra attention to the victim and offered him special privileges in order to gain the child’s trust. During the time the defendant and victim were together, Burtrum purposefully touched the victim sexually both over his pants and under his clothing. The child eventually confided in a relative then his father, who reported the crimes to authorities.
During the trial, an additional victim, who came forward during the investigation, also testified about abuse he suffered at the hands of Burtrum approximately five years ago. The prosecution further introduced into evidence a 1993 sexual abuse conviction, establishing a pattern of behavior by the defendant. In that case, Burtrum served 14 years in prison for four counts of aggravated sexual abuse in Indian Country with children under 12.
Restitution will be determined at a later hearing set for Sept. 10, 2020. Burtrum remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Quapaw Tribal Marshals Service and Miami Police Department conducted the investigation. Assistant U.S. Attorneys Shannon Cozzoni and Scott Proctor prosecuted the case.
This case was prosecuted as part of the Project Safe Childhood initiative. PSC combats the epidemic of child sexual exploitation and abuse and was launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Purveyors of fraudulent Native American-style goods and products sentenced in federal courtRead the Press Release
ALBUQUERQUE, N.M. – Jawad Khalaf, 72, of Albuquerque, New Mexico, Nashat Khalaf, 73, of Gallup, New Mexico, Sterling Islands, Inc., a wholesale jewelry business in Albuquerque, and Al-Zuni Global Jewelry, Inc., a wholesale jewelry business in Gallup, were sentenced in federal court in Albuquerque yesterday. In April, the defendants pled guilty to misrepresentation of Indian-produced goods and services in an amount greater than $1000 as part of a scheme to import Native American-style jewelry from the Philippines and sell it to customers in the United States as authentic. Another defendant, Taha Shawar, 49, of Breckenridge, Colorado, remains a fugitive.
Jawad Khalaf and Nash Khalaf were sentenced to 2 years’ supervised release and Jawad Khalaf must also perform 100 hours of community service. Sterling Islands Inc. was sentenced to 5 years’ probation and 50 hours community service, while Al-Zuni Global Jewelers, Inc. was sentenced to 5 years’ probation and 20 hours community service. Collectively, the defendants will pay $300,000 to the Indian Arts and Crafts Board and forfeit their interests in $288,738.94 seized by investigators in the case.
A grand jury returned an indictment on Dec. 19, 2018, charging these defendants and three other people with conspiracy, smuggling goods into the United States and misrepresentation of Indian-produced goods and products. The defendants admitted that on Oct. 28, 2015, they displayed and offered for sale miniature canteens at Al-Zuni Global Jewelry in Gallup. These canteens were not actually Indian-produced but could have reasonably been mistaken for authentic Indian-produced canteens.
“I want to express my appreciation for the hard work of the investigators and prosecutors who brought this case to conclusion,’ said John C. Anderson, U.S. Attorney for the District of New Mexico. “It is the culmination of countless hours of diligent work and cooperation among our partnering law enforcement agencies on behalf of Native American artists and artisans. We stand ready to bring the power of the law to bear upon those seeking to profit from cultural theft.”
“This U.S. Fish and Wildlife Service-led investigation uncovered a transnational criminal scheme that defrauded U.S. consumers and Native American artists,” said Assistant Director of the Office of Law Enforcement Edward Grace. “I would like to thank our special agents for their exemplar investigative work as well as our state and federal partners, who because of their collaboration and dedication to duty, these defendants were sentenced yesterday.”
“The Land of Enchantment’s identity and economy relies heavily on Indian art and culture,” said Meridith Stanton, Director of the Indian Arts and Crafts Board (IACB), U.S. Department of the Interior. The IACB by statute is responsible for enforcement of the Indian Arts and Crafts Act, which includes criminal penalties for marketing counterfeit Indian art and craftwork, to protect the economic livelihoods of Indian artists and artisans.
“Consumers must have confidence that the ‘Indian art’ they are purchasing in New Mexico is authentic, and not imported from factories in the Philippines,” said Director Stanton. “At the same time, Indian artists and economies must be protected from unfair competition from counterfeit Indian art. Robust Indian Arts and Crafts Act enforcement ensures that Indian artistic traditions can be passed down from one generation to the next to preserve an important American treasure – authentic Indian art. The Board commends our colleagues at the Office of the U.S. Attorney for the District of New Mexico and the U.S. Fish and Wildlife Service’s Office of Law Enforcement for their extraordinary dedication, diligence, and commitment in working with us to combat the sale of counterfeit Indian art.”
“The FBI hopes this case sends a loud and clear message that those who try to cheat Native Americans of their cultural heritage will be held accountable,” said James C. Langenberg, Special Agent in Charge of the FBI’s Albuquerque Field Office. “We will continue working closely with our partners to make sure our nation’s precious artistic resources are protected.”
“These individuals conspired to exploit the rich culture and work of Indian artisans for their personal gain by selling counterfeit merchandise and passing it as genuine Indian art and craftwork,” said Erik P. Breitzke, acting Special Agent in Charge of Homeland Security Investigations (HIS) El Paso. “This sentence sends a powerful message to others who believe they can do the same and elude justice. HSI will continue to cooperate with our law enforcement partners to assist in protecting and preserving Native American cultural heritage.”
“Yesterday’s sentencing marks a turning point in this case and provides some closure to those who were victimized by this unfair practice,” said Sonya K. Chavez, U.S. Marshal for the District of New Mexico. “This collaboration affirms law enforcement’s commitment to pursuing those who believe they can get away with fraud against our state and our unique cultural resources.”
“The Department of Game and Fish is proud to have been an integral part of this multi-jurisdictional prosecution,” said New Mexico Department of Game and Fish director Michael Sloane. “We take pride in both conserving wildlife and protecting the diverse cultures of New Mexico. We congratulate our partners on a job well done.”
The Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service led the investigation of this case with assistance from the Albuquerque Division of the FBI, Homeland Security Investigations, the Indian Arts and Crafts Board, the Drug Enforcement Administration, the U.S. Marshals Service, and the New Mexico Department of Game and Fish. Assistant U.S. Attorneys Jonathon M. Gerson, Sean J. Sullivan, Kristopher N. Houghton, and Stephen R. Kotz prosecuted the case.
Project Safe Neighborhoods: Detroit Man Pleads Guilty to Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – A Michigan man has pled guilty to drug and gun crimes, announced United States Attorney Mike Stuart. Darelle Devon Boynton, 35, of Detroit, pled guilty to distribution of heroin and possession of a firearm by a convicted felon.
Boynton admitted that on January 23, 2020, he sold approximately 1.75 grams of heroin for $100 to a confidential informant. He also admitted that on January 30, 2020, he sold 8.47 grams of heroin to a confidential informant inside a car at 2005 10th Ave. in Huntington.
On February 13, 2020, police searched his house at 199 Davis St. in Huntington. Boynton had approximately 35.13 grams of heroin in his bedroom which he intended to sell. Also on February 13, 2020, Boynton possessed a Glock Model 19, 9mm pistol while inside a bar called Tamika’s, formerly known as the Copa, located at 2005 10th Ave. in Huntington. Boynton had previously been convicted of crimes that carried punishments of more than one year in prison, including armed robbery, possession of a firearm by a felon and fleeing from a police officer. Because of those convictions, he was prohibited from possessing the firearm.
Boynton faces up to 30 years in prison when sentenced on November 30, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.) and Project Safe Neighborhoods.
Operation S.O.S. is an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
The Project Safe Neighborhoods (PSN) program 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.
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. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00038.
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Previously deported sex offender charged with illegal reentryRead the Press Release
ALBUQUERQUE, N.M. – Isaias Magana, 41, a convicted sex offender from El Salvador, has been charged with illegally reentering the United States. Magana made an initial appearance in court on Aug.14, and at a hearing on Aug. 18 was ordered to be detained pending trial.
According to a criminal complaint, shortly after midnight on August 13, U.S. Border Patrol Agents allegedly discovered Magana and two other individuals attempting to conceal themselves in the desert brush. A record check revealed that Magana had a criminal history including an aggravated felony conviction for sexual offenses in Utah, and that he subsequently had been deported to El Salvador from the United States through Phoenix, Arizona, in April 2019.
Under federal law, as alien who previously has been arrested and convicted of an aggravated felony and subsequently deported from the United States may not lawfully reenter the country without consent to apply for admission.
A criminal complaint is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Magana faces up to 20 years in prison.
This case was investigated by the U.S. Border Patrol. Assistant U.S. Attorney Matthew Ramirez is prosecuting the case.
Pittsburgh Man Pleads Guilty to Federal Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of receipt and possession of material depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
James Franklin Young, 37, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, on or before November 14, 2018, through on or about August 28, 2019, Young received material depicting the sexual exploitation of minors, and on August 28, 2019, Young knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Horan scheduled sentencing December 17, 2020, at 9:00 a.m. The law provides for a total sentence of not less than five years nor more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Young remains under detention pending the sentencing hearing.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Young.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pine Ridge Man Sentenced to Life in Prison for First Degree Murder of ChildRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of First Degree Murder and Assault Resulting in Serious Bodily Injury was sentenced on August 21, 2020, by Jeffrey L. Viken, U.S. District Judge.
Zachariah Michael Poor Bear, age 26, was sentenced to life in federal prison and ordered to pay a $100 special assessment to the Federal Crime Victims Fund as to the First Degree Murder charge. Poor Bear was sentenced to 10 years in federal prison, to be served concurrently to the murder charge, and was ordered to pay another $100 special assessment to the Federal Crime Victims Fund for the Assault Resulting in Serious Bodily Injury charge.
The conviction stemmed from Poor Bear killing a 19 month-old baby by inflicting blunt force trauma to her head and abdomen in May 2015 at Pine Ridge. Poor Bear was found guilty at trial.
“The murder of a child is incomprehensible,” said U.S. Attorney Parsons. “We mourn the loss of this precious little girl and pray that the justice represented by this life sentence will bring some measure of rest to her family.”
“This crime was gut-wrenching and there is no question the sentencing is just,” said FBI Minneapolis Assistant Special Agent in Charge, Bob Perry. “The FBI is responsible for investigating the most serious crimes in Indian Country and along with our law enforcement partners, we will continue to aggressively pursue these cases. The FBI is committed to protecting all of the tribal communities we serve, helping victims, and ensuring that justice is met for violent offenders.”
The investigation was conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Sarah B. Collins and Eric Kelderman prosecuted the case.
Poor Bear was immediately remanded to the custody of the U.S. Marshals Service.
Pennsylvania Man Pleads Guilty to Starting Fire During Delta FlightRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Robert Vincent Allen, a resident of Pennsylvania, has pleaded guilty to the attempted destruction of an aircraft. Allen appeared remotely, and is free on bond. The Denver Division of the FBI joined in today’s announcement.
According to the stipulated facts contained in Allen’s plea agreement, on the morning of April 1, 2020, Allen boarded Delta Air Lines flight #1706 at the Los Angeles International Airport scheduled to fly to Detroit, Michigan. Shortly after take-off, other passengers observed Allen acting strangely, moving continuously about the cabin, and switching seats. Delta crewmembers monitored Allen, advised the pilot in command of a possible issue and attempted to get Allen settled. Allen later entered the lavatory, and refused to come out again. The lavatory smoke alarm sounded. Crewmembers forced open the door, removed Allen from the lavatory and extinguished burning paper he set on fire.
Upon hearing the smoke alarm, the pilot in command concluded that he could not safely operate the aircraft with a fire onboard and diverted the flight to Denver International Airport (DIA). Crewmembers seated him in the last row of the plane. Officers arrested Allen after the flight landed at DIA.
Allen was charged in a federal criminal complaint on April 2, 2020, and indicted by a federal grand jury in Denver on June 2, 2020. The guilty plea was entered before U.S. District Court Judge Christine M. Arguello on August 26, 2020.
Allen will be sentenced on December 16, 2020. He faces not more than 20 years in federal prison, a fine of $250,000, and payment of restitution to Delta Air Lines.
This case was investigated by the Denver FBI and the Denver Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Patricia Davies.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 20-cr-147.
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.
Pelham Man Pleads Guilty to Mail Fraud Scheme Involving Fraudulent Surety BondsRead the Press Release
CONCORD - Leo Rush, 76, of Pelham, pleaded guilty in federal court to mail fraud, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Rush ran the Newport Insurance Company from his home office in Pelham. As Rush knew, the Newport Insurance Company was not licensed to sell insurance in New Hampshire or any other state. Rush also maintained a website for the company that listed a false address in Rhode Island.
From 2012 through 2019, Rush sold fraudulent surety bonds through Newport Insurance Company for construction projects in several states. Surety bonds are a form of insurance, subject to oversight by state insurance regulatory agencies. For certain construction projects, contractors are required to purchase surety bonds from licensed insurance companies to ensure that workers and material suppliers are paid and to ensure that a contractor’s work is completed and performed according to a contract’s specifications. Thus, if a contractor defaults on a contract, the owner of the construction project can trigger the surety’s obligation and receive payments required to complete the contract up to the value of the bond.
Rush sold these surety bonds knowing that they were fraudulent. He knew his company was not a licensed insurer and that it did not have the financial ability to make payments equal to the value of the bonds. In fact, after the deposits were made in the Newport Insurance bank account, Rush used the proceeds for his personal benefit, leaving no money to make payments on claims made against surety bonds.
From 2012 through 2019, Rush’s victims paid him over $633,000 for fraudulent surety bonds valued at over $23 million.
Rush is scheduled to be sentenced on December 10, 2020.
“Financial crimes cause serious harm to victims and deprive them of their hard-earned money,” said U.S. Attorney Murray. “Through this deceitful scheme, the defendant obtained over $600,000 from his victims, while subjecting them to the risk of major financial loss in the event that they needed to file a claim against his fraudulent surety bonds. To stop this type of criminal activity and seek justice for victims, we work closely with our law enforcement partners to identify and prosecute fraudsters and other white collar criminals.”
“Mr. Rush’s conduct is inexcusable. With today’s guilty plea, he is finally taking responsibility for deceiving and defrauding his clients out of hundreds of thousands of dollars by selling fake insurance policies that would have left them in serious trouble if claims were made, since he did not have the money to back them,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Individuals like Mr. Rush who engage in this type of financial fraud should know they will not go undetected, and sooner or later, they will be brought to justice. We thank the New Hampshire Insurance Department for its partnership in this investigation.”
This matter was investigated by the New Hampshire Insurance Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter and former Assistant U.S. Attorney Robert Kinsella.
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Pascagoula Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Walter Edward Bohl, 64, of Pascagoula, pled guilty today before U.S. District Judge Halil S. Ozerden, to knowingly possessing a firearm after having been committed to a mental institution, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On May 20, 2020, when agents executed a federal search warrant at Bohl’s residence in Pascagoula, Bohl was found to be in possession of a Smith and Wesson, Model M&P 15, 5.56 caliber Rifle. Bohl was prohibited by law from possession a firearm as he had been previously committed to a mental institution.
Walter Edward Bohl was indicted by a federal grand jury on June 23, 2020. He will be sentenced by Judge Ozerden on November 30, 2020, at 10:00 a.m., in Gulfport. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Park City Man Faces Fraud, Money Laundering Charges in Connection with Alleged Fraud SchemeRead the Press Release
SALT LAKE CITY – A federal grand jury returned a five-count indictment late Wednesday afternoon charging Timothy Andrew Nemeckay, 60, of Park City, Utah, with securities fraud, making false statements to the Security Exchange Commission (SEC), wire fraud, and money laundering in connection with an alleged fraud scheme.
According to the indictment, Nemeckay was the founder and manager of Mine Shaft Brewing, a Park City business. The indictment alleges Nemeckay represented to investors that Mine Shaft was raising funds to develop a brewery and restaurant in Park City and later in Santa Clarita, California. Nemeckay collected approximately $2.7 million from approximately 100 investors from across the United States in connection with the Mine Shaft investment offering, the indictment alleges. The indictment alleges the fraud scheme started in early 2013 and continued until around July 6, 2020.
“Far too many Utah headlines report homegrown fraud schemes. There are disproportionate numbers of wolves in sheep’s clothing in our state. In this indictment, the alleged offender was even under the thumb of securities regulators when he persuaded investors to pay into his scheme, and he purportedly used investor money to pay off previously ordered restitution,” U.S. Attorney John W. Huber said today. “Once again, we encourage those considering investment opportunities to do their due diligence before handing over their life savings to someone who doesn’t have their interests at heart.”
Nemeckay made a series of representations to investors in connection with the investment offering, including telling them that Mine Shaft was offering Series A Preferred Equity shares totaling $9.4 million and that Mine Shaft had already raised or had sizeable commitments for the funding needed. Investors were told, the indictment alleges, that the minimum investment amount was $20,000 and that the investment would earn 8 percent annual interest. Investors were also told that Mine Shaft would use funds to acquire and develop a brewery in Park City and that the location would produce thousands of barrels of alcohol for distribution. He represented that the location would operate as a restaurant and event center and become a top craft brewer in five years and that investors would receive the first right of refusal on additional investment rounds – among other things.
The indictment alleges Nemeckay issued and sent “investor newsletters” to convince investors to invest and that their investments were succeeding.
In furtherance of the scheme, the indictment alleges Nemeckay also made a variety of other false misrepresentations to investors, including telling them that Mine Shaft was seeking capital to fund the launch of the brewery when, in fact, he was seeking funding for his personal use. The indictment alleges Nemeckay used approximately $1.7 million of Mine Shaft investor funds for his own personal use. Less than $550,000 of investment funds were used toward developing a brewery in Park City and later Santa Clarita.
Interest payments were usually not made to investors, the indictment alleges, and when they were, the payments came from new investor money.
The indictment also alleges Nemeckay reported to investors that he had provided information to the SEC regarding his involvement with Mine Shaft’s fundraising efforts and the SEC had expressed no concern. In fact, he was in violation of State of Utah and federal orders not to participate in the purchase and sale of securities. Nemeckay was the subject of an administrative action with the Utah Division of Securities for selling unregistered securities.
On July 7, 2014, the defendant entered into a Stipulation and Consent Order with the Utah Division of Securities. The sanctions barred Nemeckay from associating with a broker-dealer and from being licensed in any capacity in the securities industry in Utah. It also included a fine of $350,000 with $313,710 offset by restitution to investors.
Nemeckay used Mine Shaft investor funds to pay $312,266.47 in restitution following the sanctions by the Utah Division of Securities.
A summons will be issued for Nemeckay to appear for an initial appearance on the charges. The maximum potential penalty for securities fraud is 25 years in federal prison. The two counts of making false statements to the SEC and the wire fraud count each carry 20-year potential sentences. The potential penalty for money laundering is 10 years.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in the U.S. Attorney’s Office are prosecuting the case. Special agents of the Utah Division of Securities and the FBI are investigating the case.
New York City Man Arrested, Charged with Cyberstalking and Identity TheftRead 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 David Mondore, 29, of New York, New York, was arrested this morning in Manhattan and charged by complaint with unauthorized access to computer systems in furtherance of any criminal act in violation of state law; unauthorized access to a protected computer in furtherance of fraud; and aggravated identity theft. The unauthorized access charges carry a maximum penalty of five years in prison and a $250,000 fine. Aggravated identity theft carries a mandatory two years in prison, which must be served consecutive to any penalty imposed on other charges.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, on December 5, 2019, the FBI received information that the Snapchat account of a SUNY Geneseo student (Victim l) may have been compromised. According to Victim 1, she received a message from a Snapchat account owned by an acquaintance (Acquaintance 1). The person messaging Victim 1 from Acquaintance l's account asked her for her Snapchat login credentials under the ruse that Acquaintance 1 would use Victim l's account to check whether “Acquaintance 1” had been “blocked” by another user. Victim 1 shared her credentials to the person using Acquaintance l's account. Soon after, Victim 1 received a text message purported to be from Snapchat Security indicating that her account had been locked and that she needed to provide a pin number to unlock it. The text message also advised that the pin requested would be the same pin used for Victim l's “My Eyes Only” folder in her Snapchat account. Victim 1 replied and provided the pin number for the folder.
Shortly thereafter, Victim 1 received an email from the true Snapchat, notifying her of a new device login to her account. The true Snapchat also notified Victim 1 that the email address associated with her account had been changed, preventing access to her account. Victim 1 was later made aware that the person who had gained access to her Snapchat account used her account to send an explicit photo of her, which had been saved in her Snapchat account, to 116 Snapchat users on her Snapchat friend list. The photo was captioned, “Flash me back if we are besties.” Four of Victim 1's friends responded, sending explicit pictures of themselves.
One of the friends who responded was Acquaintance 2, and like Victim 1, Acquaintance 2 was a student at SUNY Geneseo at the time. She stated that once she replied with an explicit picture of herself, she noticed that Victim 1's Snapchat account saved the photo, which Acquaintance 2 noted was unusual for Victim 1 to do. Acquaintance 2 then received a text message from Victim 1 saying that her Snapchat account had been hacked and apologized if anyone received suspicious messages from her. Acquaintance 2 then filed a police report fearing that the individual who had accessed Victim l's Snapchat account had the explicit photo Acquaintance 2 sent to Victim l's account. Subsequently, Victim 1 advised that multiple high school friends of hers from her hometown of Delmar, New York, had their Snapchat accounts hacked in a similar way. Most, if not all, of the victims attended the high school she attended and had some connection to Acquaintance 1.
A second victim, Victim 2, who lives in the Northern District of New York, filed a police report on December 7, 2019. According to Victim 2, his Snapchat account received messages from Acquaintance 3's Snapchat account requesting his login credentials for his Snapchat account. The person operating Acquaintance 3's account claimed that she deleted her Snapchat account and wanted to login from Victim 2's account to confirm her account was deleted. Victim 2 provided who he believed was Acquaintance 3 with his Snapchat login credentials. Like Victim 1, a short time later, Victim 2 received a text message purported to be Snapchat Security, indicating that his account was locked due to suspicious activity. The text message then requested Victim 2's pin number to unlock the account. Victim 2 provided his pin number, which was also the same as the pin number for Victim 2's “My Eyes Only” folder. Victim 2 was then locked out of his Snapchat account. Thereafter, Victim 2’s account was used to send a photo of male genitalia to 11 Snapchat users, with the caption “send a nude back.”
Investigators traced the phone numbers purporting to send text messages from Snapchat security and the IP addresses used to hack into the victims’ Snapchat accounts, and each resolved to the defendant, David Mondore. A search of Mondore’s iCloud account revealed the photo of Victim 1 described above; the photos that were sent to Victim 1’s Snapchat account in response to the request for explicit photos; a Snapchat conversation between Victim 1 and Acquaintance 1; and the photo of Victim 2 described above.
“This case should serve as a cautionary reminder that many individuals lurking on social media use those platforms to engage in decidedly anti-social behavior,” stated U.S. Attorney Kennedy. “As alleged, defendant engaged in multiple manipulative techniques in order to hack his way into the accounts of social media users so that he could get what he was after—explicit photographs of those users. While it may sound mundane, my advice is pretty simple and it applies whether you are communicating online or over the phone—do not share your personal information, especially your passwords, with anyone.”
“David Mondore’s alleged crimes are predatory,” said Stephen Belongia, Special Agent-in-Charge of the FBI’s Buffalo Office. “The facts in this case are all-too-familiar to us in the FBI. Here, and across the globe, we have witnessed hackings coupled with exploitation and extortion, and our agents and analysts are acutely focused on attacking this cyber-related criminal behavior. I thank the brave victims in this case who, although terrorized, came forward and reported what happened to them. And while it must have been difficult to do, by coming forward they were instrumental in keeping future names off Mondore’s long list of alleged victims.”
Anyone who believes their Snapchat account was compromised in a similar manner is asked to call the FBI at 716-856-7800.
The defendant is making an initial appearance this afternoon in the Southern District of New York, and will be returned to the Western District of New York at a later date.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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New Jersey Electronic Health Records Company to Pay $500,000 to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – An electronic health records company based in Passaic County, New Jersey, has agreed to pay $500,000 to resolve allegations that a former subsidiary caused users to file false claims with the government, U.S. Attorney Craig Carpenito announced today.
Konica Minolta Healthcare Americas Inc., based in Wayne, New Jersey, has agreed to pay $500,000 to resolve False Claims Act allegations that its former subsidiary, Viztek LLC, caused users to submit false claims by misrepresenting the capabilities of its electronic health records (EHR) software.
According to documents filed in this case and the contentions of the United States contained in the settlement agreement:
The American Recovery and Reinvestment Act of 2009 established the Medicare & Medicaid EHR Incentive Program to encourage hospitals and eligible professionals – health care providers – to adopt and demonstrate their meaningful use of EHR technology. The U.S. Department of Health and Human Services (HHS) made incentive payments available to eligible professionals and hospitals that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that developed and marketed EHR technology were required to, among other things, demonstrate that their products satisfied certain HHS-adopted criteria.
The United States contends that Viztek fraudulently obtained certification for its product, known as “EXA EHR,” when it misrepresented to its certifying entity that the product complied with all applicable requirements for certification. Viztek knowingly caused eligible providers who used EXA EHR to falsely attest to compliance with the HHS requirements, which caused false claims for incentive payments to be submitted to the Medicare Program.
The allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorneys Marihug P. Cedeño, of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit, and Nicole F. Mastropieri, of the Health Care Fraud Unit, in Newark.
The case is captioned United States ex rel. Leighsa Wilson v. Viztek Inc. et al. The claims settled by this settlement are allegations only, and there has been no determination of liability.
NDTX Round-Up: August 20-27Read the Press Release
GUILTY PLEA – CHUPEE ERNEST JOE
On August 20, Chupee Ernest Joe, 37, pled guilty to two counts of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns. Mr. Joe operated an income tax preparation business located in Irving, Texas. From 2013 to 2016, he assisted in the preparation of fraudulent individual tax returns. Mr. Joe routinely falsified or inflated deductions and credits including education credits and unreimbursed employee business expenses to create inflated refunds. Mr. Joe faces up to 6 years in federal prison for his crimes. This case was investigated by IRS – Criminal Investigations. Assistant U.S. Attorney Christopher Stokes is prosecuting this case.
GUILTY PLEA – ROGELIO ALVARADO
On August 20, Rogelio Alvarado, 35, pled guilty to conspiracy to distribute a controlled substance. Mr. Alvarado purchased crack cocaine and cocaine from other co-conspirators which were his source of supply. Mr. Alvarado used a cellular phone to negotiate, discuss, and facilitate his drug transactions. Mr. Alvarado faces up to 20 years in federal prison for his crimes. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phelesa Guy is prosecuting this case.
GUILTY PLEA – RASHID WALKER
On August 25, Rashid Walker, 48, plead guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance. Mr. Walker purchased methamphetamine from a supplier to distribute into the community. On five separate occasions, Mr. Walker supplied an undercover agent posing as a narcotics buyer with methamphetamine. Mr. Walker faces up to 20 years in federal prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Walt Junker is prosecuting this case.
SENTENCING – CHRISTOPHER LATHAM
On August 27, Christopher Latham, 46, was sentenced to 71 months in federal prison for six counts of wire fraud. Mr. Latham devised a scheme to defraud and obtain money from two victims. He misrepresented the ownership and control over an oil and gas lease by telling the victims that the lease was lucrative. Mr. Latham made lies and material omissions to obtain approximately $70,000 from the victims which he used for his personal use, including to pay off debt, gamble, and make cash withdrawals. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Fabio Leonardi is prosecuting this case.
Multi-Defendant Indictment ReturnedRead the Press Release
FORT WAYNE – Multiple individuals were charged with drug and firearms offenses by way of a 19 count Indictment, announced U.S. Attorney Kirsch.
According to the Indictment, Frederick Morgan II, Frederick Morgan Sr., Monica Duvalon, Larry Lamb, Sarah Waltz, Eddie Knox, and James Russell Jr., were each indicted on conspiracy to distribute methamphetamine, cocaine and fentanyl. The indictment alleges that the conspiracy to distribute controlled substances occurred between May 6, 2019 and August 26, 2020.
“Today’s drug and gun charges allege that many highly addictive controlled substances were flooding the streets of Northern Indiana, which increases the propensity for violence, particularly when firearms are present,” said US Attorney Thomas L. Kirsch II. “I commend the ATF and DEA along with all the other law enforcement agencies involved in this case for their hard work. We will continue to focus on these type of cases to keep our communities safe.”
In addition to the conspiracy charges, Morgan II was also charged with 15 counts of distributing controlled substances and 1 count of maintaining a drug involved premises. Duvalon was charged with 2 additional counts of distributing controlled substances. Morgan Sr. was charged with 2 additional counts of distributing controlled substances. Lamb was charged with 2 additional counts of distributing controlled substances, 1 count of possession of a firearm in furtherance of a drug trafficking crime, and 2 counts of providing a firearm to a felon. Waltz and Russell Jr. were charged with 1 additional count of distributing a controlled substance. Knox was charged with 5 additional counts of distributing a controlled substance and 1 count of maintaining a drug involved premises.
“The individuals arrested today, allegedly peddled poison into our communities,” said DEA Assistant Special Agent in Charge Michael Gannon. “This group is allegedly responsible for distributing large quantities of methamphetamine, fentanyl and crack cocaine throughout Fort Wayne area. Anytime we can take dangerous addictive drugs and firearms off the streets it is a big win! DEA is committed to working with our state, local and federal partners and arresting drug traffickers to keep our communities safe. DEA appreciates the exceptional work in this multi-jurisdictional investigation by all involved.”
“Working closely with our state, local and federal partners, ATF will continue to investigate felons in possession of firearms and those responsible for distributing narcotics in the Fort Wayne community,” remarked Special Agent in Charge Kristen de Tineo of the Alcohol, Tobacco, Firearms and Explosives Chicago Field Division. “When partnering with law enforcement agencies and the United States Attorney’s Office, we focus our resources and these charges illustrate the effectiveness of those relationships.”
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is a result of a joint investigation conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, with the assistance of the US Marshals Service and multiple local law enforcement agencies, including the Indiana State Police, Allen County Sheriff’s Department, Allen County Drug Task Force, Adams County Sheriff’s Office, Huntington Police Department, Auburn Police Department, and the Fort Wayne Police Department. This case is being prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent A. Ecenbarger.
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More Charges Brought Against Executive Director of NEAD and Former Chairman of the RHA, and A Co-defendantRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a fifth superseding indictment charging George Moses, 50, and Janis White, 58, both of Rochester, NY, with additional charges. Moses is facing additional charges of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and money laundering. White is facing additional charges of money laundering. Moses faces up to 20 years in prison if convicted, White up to 10 years.
Assistant U.S. Attorneys Richard A. Resnick and Melissa M. Marangola, who are handling the case, stated that the new charges set forth in the fifth superseding indictment, allege that between February and August 2018, defendant Moses conspired with co-defendant Shirley Boone to defraud the Dormitory Authority of the State of New York (DASNY). In June 2016, Moses, as Executive Director of the North East Area Development Association (NEAD), applied for a $125,000 grant for renovation of the Freedom Market, owned by Freedom Community Enterprise Inc., a subsidiary of NEAD. In August 2017, the grant was approved. Between February and July 2018, Moses and Boone tricked DASNY into believing that NEAD paid Freedom Community $45,000 for construction work which never occurred. As a result, DASNY reimbursed NEAD $45,000 to which it was not entitled.
The fifth superseding indictment also alleges that defendant White, who was the Executive Secretary for the Rochester Housing Authority (RHA), and Board Secretary for the Rochester Housing Charities (RHC), started a company called HJJ Property Development Inc. (HJJ Property) in March 2018. HJJ Property, listed as a heating and air conditioning business, was technically owned by White’s mother and stepfather, but controlled by White herself. At times, White prepared a fraudulent invoice from HJJ Property addressed to the RHC which made it appear that HJJ Property had provided services to the RHC. White emailed the fraudulent invoice to defendant Moses. RHC then paid HJJ Property the amount contained on the fraudulent invoice.
On other occasions, contractors provided the RHC with an estimate for services to be performed for the RHC or NEAD. Estimates were emailed to Moses who would email them to White. In turn, White prepared a fraudulent invoice from HJJ Property addressed to the RHC, which made it falsely appear that HJJ Property would be providing the services to the RHC that were actually going to be performed by another contractor. The amount requested to be paid on the HJJ Property fraudulent invoice would be more than what the other contractor had originally requested for such services. Moses then approved the payment of the fraudulent invoice by the RHC. The additional charges against White involve her conducting monetary transactions with the proceeds of the fraud to conceal that the proceeds came from fraudulent activity.
The fifth superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
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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Mission Man and Woman Indicted for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man and woman have been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Renae Jo Pacheco, a/k/a Renae Jo Hopkins, age 51, and Thomas Pacheco, Sr., age 29, were indicted on August 11, 2020. They appeared before U.S. Magistrate Judge Mark A. Moreno on August 24, 2020, and pled not guilty to their Indictments.
The maximum penalty upon conviction is a mandatory minimum 10 years, up to life in prison and/or a $10,000,000 fine, at least 5 years, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictments allege that beginning at a time unknown but no later than on or about January 1, 2015, and continuing to on or about January 1, 2020, Hopkins and Pacheco, did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine on the Rosebud Sioux Indian Reservation.
The charges are merely accusations and Hopkins and Pacheco are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Hopkins was remanded to the custody of the U.S. Marshals Service pending trial. Pacheco was released pending trial. Trial dates have not been set.
Minnesota Man Sentenced to Federal Prison for Possession of a Firearm as a Felon and Possession of Methamphetamine with the Intent to DeliverRead the Press Release
A Minnesota man who was caught with nearly 14 ounces of high purity methamphetamine and a loaded handgun was sentenced August 25, 2020 to more than 13 years in federal prison.
Marcus Jones, age 32, from St. Paul, Minnesota received the prison term after a guilty plea to one count of possession with intent to deliver 50 grams or more of methamphetamine and one count of possession of a firearm by a felon.
In a plea agreement, Jones admitted that on December 12, 2019, knowing he was a felon, possessed a Jennings .25 caliber pistol and 50 grams or more of methamphetamine with the intent to deliver the methamphetamine.
On December 6, 2019 police conducted a traffic stop in Mason City, IA. The driver of the vehicle, Marcus Jones, fled on foot. Jones was not apprehended at that time but later was arrested on December 12, 2019 after again attempting to flee from police. At the time of his arrest, Jones had eight individually wrapped packages of ice methamphetamine that he intended to distribute, and a loaded pistol hidden in his center console.
Jones was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Jones was sentenced to 162 months’ imprisonment for possession with the intent to deliver methamphetamine and 120 months’ for possession of a firearm as a felon, to be served concurrently. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Jones is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Mason City Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-3058.
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Methamphetamine User Driving with Stolen Firearm Receives Federal Prison SentenceRead the Press Release
A methamphetamine user found with two firearms in his vehicle was sentenced August 26, 2020, to a term in federal prison.
Lukas Rick, age 24, from Center Point, Iowa, received the prison term after a February 6, 2020 guilty plea to possession of firearms by a drug user.
At the guilty plea, Rick admitted he was driving a car and in possession of both a .30-06 caliber Ithaca rifle and a 12 gauge Remington shotgun. At the time he possessed these guns, he was an unlawful user of methamphetamine. Law enforcement stopped Rick’s car because it was missing a license plate. Law enforcement subsequently discovered that the rifle in Rick’s possession was stolen.
Rick was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rick was sentenced to six months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rick was released on the bond previously set and is to surrender to the United States Marshal; Bureau of Prisons at a later date.
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 Liz Dupuich and investigated by 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-0114.
Follow us on Twitter @USAO_NDIA.
Member of New Bedford Chapter of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former probationary member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Emanuel Lopez-Velez, a/k/a “King Manny,” 22, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 10, 2020. Lopez-Velez was arrested and charged in December 2019, at which time he was a probationary member of the New Bedford Chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
As detailed during the plea hearing, Lopez-Velez admitted that on Sept. 30, 2019, he was one of multiple members of the Latin Kings who travelled to Ruth Street and McGurk Street in New Bedford in order to confront and rob rival gang members, and was provided with a firearm to do so by another member of the gang. The Latin Kings members approached one of the rival gang members, surrounded him, pointed a firearm at the victim and demanded the victim’s phone. During the gunpoint robbery, the victim ran from the Latin Kings, and Lopez-Velez was ordered by another to “get him.” Lopez-Velez chased the rival gang member and fired one shot, hitting the victim in the back. The victim fell to the ground and was transported to the hospital, where he was treated and ultimately survived the incident.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Lopez-Velez is the ninth defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
McLaughlin Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on August 24, 2020, by U.S. District Judge Charles B. Kornmann.
Melissa Rose Decoteau, a/k/a Melissa Rose Bobtail Bear, age 35, was sentenced to 46 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Decoteau was indicted by a federal grand jury on July 16, 2019. She pled guilty on August 24, 2020.
The conviction stemmed from a conspiracy in 2018, wherein Decoteau conspired with others to distribute more than 50 grams of methamphetamine on the Standing Rock Sioux Indian Reservation in South Dakota.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Mobridge Police Department, the Bureau of Indian Affairs, and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Decoteau was immediately remanded to the custody of the U.S. Marshals Service.
Manufacturing Broker Pleads Guilty in Conspiracy to Manufacture and Sell Counterfeit GoodsRead the Press Release
PROVIDENCE – A Brooklyn, NY, businessman appeared before a U.S. District Court judge in Providence, R.I., on Tuesday and admitted that he brokered the manufacturing of counterfeit clothing, apparel and gear manufactured in China and Pakistan that was shipped to wholesalers in the United States for distribution. Some of the counterfeit items were distributed to members of the United States military.
Bernard Klein, 39, admitted that he conspired with New York wholesaler Ramin Kohanbash, 50, and at least one other person, to arrange the mass production of goods in China and Pakistan that carried counterfeit markings and labels identical to genuine trademarks registered with the U.S. Patent and Trademark Office.
According to court documents, Klein was sent samples of genuine clothing, apparel, and gear by Kohanbash to be reproduced. Prior to the approval of mass production of the counterfeit goods, Klein emailed photographs of the goods, as well as hangtags and labels, to Kohanbash for approval. After making any changes ordered by Kohanbash, Klein facilitated the manufacturing of goods that contained counterfeit markings identical to genuine marks registered with the U.S. Patent and Trademark Office.
According to information presented to the court, Klein and Kohanbash instructed the manufacturers on how to fold and package the counterfeit goods, and to affix removable “Made in China” stickers in order to avoid problems when shipments were inspected by U.S. Customs.
Among the counterfeit items produced in China and Pakistan and shipped to Kohanbash in the United States for distribution were counterfeit FREE® hoods, counterfeit Polartec® fleece shirts, and Gen III Level 7 parkas bearing counterfeit Primaloft® hangtags.
According to information presented to the court, in August 2018, 60 counterfeit Polartec® fleece shirts were shipped to a business in North Kingstown, RI, and in October 2018, counterfeit parkas and trousers were shipped to the Rhode Island National Guard in East Greenwich, RI. The parkas contained counterfeit Primaloft® hangtags and labels. Both shipments were the result of controlled purchases as part of the investigation.
Appearing Tuesday before U.S. District Court Judge William E. Smith, Klein pleaded guilty to conspiracy to commit mail fraud, announced United States Attorney Aaron L. Weisman; Leigh-Alistair Barzey, Special Agent-in-Charge of Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Joseph P. Dattoria, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Boston Fraud Resident Agency, US Army Criminal Investigation Command; Jason T. Hein, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Detachment 6, Joint Base Andrews, MD; Homeland Security Investigations Newark, NJ, Special Agent in Charge Jason J. Molina; and Troy Miller, Director of Customs and Border Protection, New York Field Office.
On June 13, 2019, Ramin Kohanbash pleaded guilty to conspiracy to commit wire fraud and trafficking in counterfeit goods. At the time of his guilty plea, Kohanbash admitted that among the items he and others arranged to counterfeit were 200 military parkas of a type used by U.S. Air Force personnel stationed in Afghanistan. These parkas were falsely represented to be genuine Multicam®, a fabric which incorporates specialized near-infrared management technology designed to make the wearer more difficult to detect with equipment such as night-vision goggles.
Klein is scheduled to be sentenced on December 4, 2020. Kohanbash is scheduled to be sentenced on January 22, 2021.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Zachary A. Cunha, and Lee H. Vilker.
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Man from Pinehill, New Mexico sentenced to 10 years for assault and firearms charges in Indian CountryRead the Press Release
ALBUQUERQUE – Harrington Alonzo, 34, of Pinehill, N.M., was sentenced Monday in federal court to 10 years of custody. In January, Alonzo pled guilty to charges of assault with a dangerous weapon in Indian Country, using and carrying a firearm during and in relation to a crime of violence, and possessing and discharging said firearm in furtherance of such crime.
According to Alonzo’s plea agreement, he committed this crime in Cibola County on April 24, 2019. Alonzo unlawfully assaulted a Navajo Nation police officer by shooting at the officer with a semiautomatic handgun. The officer was responding to a domestic dispute between Alonzo and his girlfriend. Alonzo is an enrolled member of the Navajo Nation where this crime occurred.
The case was investigated by the Gallup office of the Federal Bureau of Investigation with assistance from the Ramah Navajo Police Department and the Navajo Nation Police Department. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Man Sentenced to Prison for Trafficking Cocaine and Fentanyl AnalogueRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to over 12 years in prison for possession with intent to distribute cocaine.
According to court documents, Demond Mitchell, 32, was selling cocaine and other controlled substances on Grayson Street, in the area of East Ladies Mile Road. After observing Mitchell make a number of hand-to-hand transactions, police officers approached one of the customers, who dropped a small user-quantity of cocaine to the ground. Another police officer went to the area where Mitchell had put down a small black bag that Mitchell was utilizing. In the bag, the officers found over 41 grams of cocaine, including some packaged in little bag corners for distribution. The officers also recovered 2.79 grams of a mixture containing fentanyl and acetyl fentanyl, a potent and potentially deadly fentanyl analogue.
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 Robert E. Payne. Assistant U.S. Attorney Olivia L. Norman 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. 3:19-cr-161.
Madison Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Yvonne Spencer, 64, Madison, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to one year and one day in federal prison, followed by one year of supervised release, for filing false tax returns. She was also ordered to pay restitution to the IRS, although the Court noted that full repayment by the defendant was unlikely.
An IRS investigation in 2018 revealed that Spencer had prepared and filed tax returns containing materially false information on behalf of taxpayers. A survey of 79 tax returns filed by Spencer between 2013 and 2017 revealed that the IRS had paid out $292,872 in fraudulent tax refunds as a result of the false information. Spencer directed $48,000 of the fraudulent refunds to herself, and also collected tax preparation fees from some taxpayers. Spencer was able to generate the fraudulent refunds primarily by claiming business and educational expenses on behalf of taxpayers who did not in fact own businesses or attend school. She admitted at her guilty plea that she knew information on the tax returns was false.
At sentencing, Judge Conley considered Spencer’s age, health, family ties, lack of a criminal history, and her statement that she now understood the wrongfulness of her actions. However, in determining a prison sentence was nevertheless warranted, the judge recognized that she had used her status and skills as a tax preparer to steal a lot of money from the government over a long period of time. Judge Conley noted that the defendant’s conduct showed a disregard for the system of collecting taxes, taxes which fund the public programs used to care for others. While the judge considered a two-year prison sentence, he ultimately settled on a sentence of one year and one day, in light of the fact that COVID-19-related restrictions in prison made serving a sentence more difficult.
The charge against the defendant was the result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith P. Duchemin.
Lawrence Man Sentenced to 45 Years in Prison for Operating Major Fentanyl Trafficking OrganizationRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Sergio Martinez, 30, of Lawrence, Massachusetts, was sentenced to 45 years in federal prison for leading a continuing criminal enterprise and participating in a money laundering conspiracy based upon his role in operating a Lawrence-based fentanyl trafficking organization. Additionally, Martinez was ordered to forfeit $2,000,000 in cash, as well as three houses in Lawrence.
Martinez pleaded guilty on the sixth day of a jury trial. During the trial, which began on October 1, 2019, the government presented evidence that Martinez operated a fentanyl trafficking operation that employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Testimony at trial showed that customers knew the Martinez organization by the name “Brian” and that most of the organization’s customers came from New Hampshire. Distributors knew to identify customers on the streets of Lawrence by their New Hampshire license plates.
Testimony at trial showed that the organization served three distinct sets of customers. The first group of customers, who ordered the smallest amounts of drugs, was served by various telephones (“small phones”) that were located in a specific residence and answered by dispatchers. This residence was referred to as “the base” and dispatchers staffed “the base” from 9:00 a.m. to 11:00 p.m. daily. Dispatchers took orders and directed customers to meet various distributors throughout the Merrimack Valley area, mostly in Lawrence or Haverhill, Massachusetts, but sometimes in Salem, New Hampshire. These phones usually received hundreds of calls daily from customers placing fentanyl orders. Street-level distributors were provided with 200-gram bags of fentanyl, which they sold for $30 per gram, generating $6,000 per bag of fentanyl sold. Distributors testified at trial that they sometimes had lines of 10 to 15 customers, most with New Hampshire license plates, waiting for them on the street.
A second set of customers was serviced by the so-called “big phone.” The big phone was reserved for customers who typically purchased from ten grams to 200 grams of fentanyl at a time, quantities which the purchasers would then distribute themselves. The defendant and his brother Raulin Martinez answered this telephone, took orders, and sent these customers to meet a different set of distributors. They promised these customers better and faster service than they received if they called the small phones. These phones received between approximately 50 and 100 calls daily.
A third, much smaller set of customers, who ordered particularly large quantities of fentanyl (usually one kilogram or more at a time) called the defendant directly to place orders. The organization would deliver directly to these individuals by sending a distributor, often in a taxi, to deliver to these customers at or near their residences.
Trial testimony showed that Martinez managed numerous individuals including between five and ten runners working each day, people who staffed “the base” answering telephones, and people who mixed and packaged the drugs in milling operations he operated at different locations in Lawrence. The jury was provided with evidence showing that investigators seized over 12 kilograms of fentanyl from the Martinez organization during the investigation. During one telephone call intercepted over a court-authorized wiretap and played at trial, Martinez spoke to a man who identified himself as a fentanyl supplier located in Sinaloa, Mexico. Martinez told him, “what I look for is quality for when I prepare it and give it to people. Because I’m one of those people that’s moving a lot here. I move between 15, to 30, to 35 kilos a month.” In other intercepted telephone calls played at trial, Martinez acknowledged the dangerous nature of the drug he distributed, noting that “what we give out is poison.”
Evidence at trial showed that Martinez received substantial income from his business and that he sent some of this money to the Dominican Republic. Drug runners testified that they provided the defendant with between $30,000 and $35,000 per day based on aggregate drug sales. On one occasion, the defendant was stopped by the police while transporting $400,494 in cash that he intended to send to the Dominican Republic. This money was seized by the Drug Enforcement Administration. The plea agreement includes a forfeiture of $2,000,000 including funds in two bank accounts in the Dominican Republic in Martinez’s name.
Twenty four individuals have pleaded guilty and been sentenced in this conspiracy. Five additional individuals are awaiting sentencing. Three defendants remain fugitives. One defendant is awaiting trial.
In addition to these defendants, 13 New Hampshire-based individuals who obtained fentanyl from this organization have been charged with drug trafficking offenses. Twelve of those individuals have pleaded guilty and one is still awaiting trial.
“International fentanyl trafficking organizations have targeted New Hampshire as a profitable market for the sale of their deadly product,” said U.S. Attorney Murray. “The result has been disastrous for our citizens. Mr. Martinez ran a criminal enterprise that exploited the substance abuse proclivities of Granite Staters in order to obtain huge profits. In doing so, he enriched himself and funneled portions of the profits to parties outside of the United States. This 45-year sentence should send a strong message to fentanyl traffickers that those who choose to do business in New Hampshire will be held accountable for their conduct. I am grateful to the DEA and all of our federal, state, and local law enforcement partners whose hard work resulted in the successful prosecution of this high-level drug trafficker.”
“The State of New Hampshire is faced with a fentanyl crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. Today’s significant sentence not only holds Mr. Martinez accountable for his crimes but serves as a warning to those traffickers who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
“Today’s sentencing sends a strong message: The Diplomatic Security Service is committed to making sure that those who are responsible for trafficking in deadly drugs face consequences for their criminal actions,” said Brian Papanu, Assistant Special Agent in Charge of the Boston Field Office of the U.S. Department of State's Diplomatic Security Service. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and the Organized Crime Drug Enforcement Task Force continues to be essential in the pursuit of justice.”
Agencies participating in this investigation are part of the Organized Crime Drug Enforcement Task Force (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.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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Last remaining member of drug trafficking organization sentenced to federal prisonRead the Press Release
BRUNSWICK, GA – The final remaining defendant among two dozen people indicted for operating a drug distribution ring in south Georgia and northern Florida has been sentenced to federal prison.
Jose Salguero, 32, of Brunswick, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood to 121 months in federal prison after pleading guilty to Possession with Intent to Distribute and to Distribute Cocaine, Methamphetamine, MDMA, and Marijuana, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Salguero will be required to serve three years of supervised release. There is no parole in the federal system.
“Along with his now-convicted and sentenced co-defendants, Jose Salguero was responsible for distributing significant amounts of recreational poison throughout a large area of south Georgia and beyond,” said U.S. Attorney Christine. “We are committed to coordinating with our law enforcement and prosecutorial partners to make our neighborhoods safer by eradicating these criminal drug dealers.”
According to court documents and in information shared in court proceedings, the federal, state and local investigation into violent gang and drug trafficking activities in the greater Glynn County area determined that Robert Johnson, 54, of Jacksonville, Fla., supplied Salguero and other members of the conspiracy with illegal narcotics that they in turn distributed throughout the area. Johnson, who has a prior federal conviction in federal court for drug trafficking, is serving a 78-month sentence in federal prison.
All of the defendants in the conspiracy have now been sentenced in U.S. District Court. Together they have more than 60 previous felony convictions in state court.
“Salguero is the last of more than 20 defendants, part of a major drug trafficking organization, to be sentenced for inflicting a scourge of drugs and crime in our communities,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI’s Safe Streets Gang Task Forces, comprised of federal, state and local law enforcement officers, remain committed to dismantling these types of criminal organizations.”
The case was investigated by the FBI and the Coastal Georgia Violent Gang Task Force, along with the Glynn County Police Department and the Brunswick Police Department, and was prosecuted for the United States by Assistant U.S. Attorney Jennifer Kirkland.
Kansas Man Sentenced for Dealing Meth with a GunRead the Press Release
United States Attorney Joe Kelly announced that Cody Rhyne, 32, of Hiawatha, Kansas, was sentenced August 26, 2020 by United States District Judge Brian C. Buescher for possession of methamphetamine with intent to distribute and use of a firearm in furtherance of drug trafficking. He received a sentence of 144 months with a three-year term of supervised release to follow. There is no parole in the federal system.
On or about December 4, 2019, Rhyne drove to the parking lot of a Shopko in Falls City, Nebraska, where he sold an informant half an ounce of methamphetamine. Officers followed Rhyne’s vehicle and activated the emergency lights and siren but Rhyne did not stop. Officers pursued Rhyne’s vehicle at speeds reaching 105 MPH. During the pursuit, Rhyne ran three stop signs, one traffic control device, turned in front of a semi, and was almost hit at the intersection of HWY#8 and HWY#75. After Rhyne’s Cadillac ran out of gas south of Humboldt, Nebraska, Rhyne fled on foot. He was taken into custody shortly thereafter.
In Rhyne’s vehicle officers found a Taurus 9 mm handgun, a loaded handgun magazine containing 9 mm hollow point rounds, digital scales, and six plastic bags containing a total of 299.734 grams of lab-confirmed methamphetamine mixture.
In a post-Miranda interview, Rhyne admitted that he sold ten grams of meth and a .22 caliber rifle to the informant and that he planned to sell more methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms as part of Project Safe Neighborhoods, which is a national initiative of the Department of Justice that was announced in 2001 to reduce and prevent violent crime and make the nation’s neighborhoods safer.
Joplin Man Sentenced to Life in Prison for the Sexual Exploitation of a 4-Year-Old ChildRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Missouri, man has been sentenced in federal court for the sexual exploitation of a 4-year-old child victim.
Anthony Leon Helsel, 32, was sentenced by U.S. District Judge M. Douglas Harpool on Tuesday, Aug. 25, to life in federal prison without parole.
On Sept. 24, 2019, Helsel pleaded guilty to one count of the sexual exploitation of a minor and one count of the sex trafficking of a minor.
The investigation began in September 2018 when law enforcement received two CyberTips that Helsel was offering a 4-year-old child for sex through the KIK application, and that Helsel had uploaded suspected child pornography to his Facebook account. In October 2018, Kentucky law enforcement provided information that Helsel also offered images of child pornography to an undercover law enforcement officer in Kentucky, as well as to other members of a KIK group.
Officers executed a search warrant at Helsel’s residence on Oct. 2, 2018. Helsel admitted that he had taken pornographic photos of the child victim, that he had been sending child pornography to others and receiving child pornography from them, and that he had talked to others about them having sex with the child victim. Helsel also admitted that he had shared videos of him sexually assaulting the child victim to multiple users on KIK.
According to court documents, Helsel created hundreds of images and videos of the child victim’s sexual abuse. He repeatedly sent images and videos of him sexually assaulting her to many other KIK users over the internet. Investigators also found images of child pornography produced by Helsel with a one-year-old infant.
At the time officers arrived at Helsel’s residence to execute the search warrant, he was conversing with another user on KIK, Gary McKinney of Joplin.
McKinney was sentenced on Feb. 26, 2020, to 15 years in federal prison without parole. McKinney, who pleaded guilty to receiving and distributing child pornography, was an officer with the Joplin Police Department for about seven years until May 20, 2006. He also worked for a short time as a police officer in Webb City, Missouri, and Duquesne, Missouri. He owned and operated Gary McKinney Plumbing Services at the time of his arrest.
According to court documents, the child victim reported that both Helsel and another individual sexually assaulted her.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jacksonville Pair Charged with Aggravated Identity Theft and FraudRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Charles Cornelius Smith (35, Jacksonville) and Zipporan Carmel Peters (31, Jacksonville) with two counts of aggravated identity theft, one count of conspiracy to commit bank fraud, and one count of false representation of a Social Security number. If convicted, each faces a maximum penalty of 30 years in federal prison for the conspiracy to commit bank fraud, up to 5 years’ imprisonment on the false representation of a Social Security number, and a 2-year mandatory minimum term of imprisonment on each aggravated identity theft count. Smith and Peters made their initial appearance in federal court today, and were detained until their arraignment hearing on September 1, 2020.
According to the indictment, Smith obtained the personal identification information of a victim, including the name, date of birth, and Social Security number. Using this information, Smith provided Peters with a counterfeit South Carolina driver license using the identity information of the victim, but with Peters’s photo on it. Smith then drove Peters to different branches of the Navy Federal Credit Union where Peters subsequently made various fraudulent transactions, using the victim’s identity.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Secret Service - Jacksonville Field Office, the Clay County Sheriff’s Office, the Orange Park Police Department, with assistance from the Jacksonville Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Hartford Man Sentenced to 9 Years in Federal Prison for Role in Heroin and Fentanyl Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FERNANDO TOLENTINO, Jr., also known as “Humacao,” 50, of Hartford was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 108 months of imprisonment, followed by four years of supervised release, for trafficking heroin and fentanyl.
According to court documents and statements made in court, in October 2016, the Drug Enforcement Administration’s Hartford Task Force began an investigation of an organization that was trafficking large quantities of heroin, fentanyl and other narcotics in Connecticut and western Massachusetts. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization were receiving bulk quantities of heroin and fentanyl from out-of-state suppliers. They then stored, processed and packaged the heroin/fentanyl in multiple locations, including apartments located at 280 Collins Street in Hartford, and then distributed the drug in the Hartford area, and also the Springfield and Holyoke, Massachusetts area. A significant amount of drug trafficking activity occurred at the Neighborhood Supermarket, located at 316 Farmington Avenue in Hartford.
The investigation also revealed that the drug trafficking organization was using xylazine, a horse tranquilizer, as an additive to the heroin and fentanyl it distributed.
Fourteen individuals were charged with various narcotics, firearms and immigration offenses as a result of this investigation. During the investigation, law enforcement seized approximately 10 kilograms of heroin and fentanyl, much of which was packaged for resale in hundreds of thousands of bags. Seven firearms were also seized.
Tolentino lived in an apartment at 280 Collins Street, and he operated a drug and firearm stash location there used by the organization. He also regularly distributed heroin/fentanyl to customers and street-level distributors, and served as a “look out” for the organization.
Tolentino was arrested on June 29, 2017. On May 11, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Tolentino, who was released on bond, was remanded to the custody of the U.S. Marshals Services at the conclusion of today’s sentencing.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Federal Bureau of Investigation, U.S. Postal Inspection Service, U.S. Marshals Service and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Gulfport Man Pleads Guilty to Possession of a Firearm by an Unlawful Drug UserRead the Press Release
Gulfport, Miss. – Johnathan Quarles, 25, of Gulfport, pled guilty today before U.S. District U.S. District Judge Sul Ozerden to one count of possession of a firearm by an unlawful user, announced U.S. Attorney Mike Hurst and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On December 26, 2019, Biloxi Police officers executed a search warrant on a Biloxi residence. Just outside the residence, they observed Johnathan Quarles, who was seated in his vehicle. Quarles saw officers and threw a bag of marijuana out of the car window. When the officers spoke with Quarles, they observed an unsheathed .9mm in his pocket. Quarles is an active user of narcotics and therefore not permitted to be in possession of a firearm. He told officers that he smokes 3-4 ounces of weed a day and that he has smoked regularly since he was 13 years old.
Quarles will be sentenced by Judge Ozerden on November 30, 2020 at 9:30 a.m. and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Erica Rose.
Ghanaian National Is Sentenced to Prison for His Role in Financial Scams Targeting Older VictimsRead the Press Release
CHARLOTTE, N.C. – Suleman Alhassan, 38, a Ghanaian national residing in Charlotte, was sentenced today by U.S. District Judge Max O. Cogburn Jr. to 51 months in prison and one year of supervised release for his involvement in financial scams targeting older adults, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Cogburn ordered Alhassan to pay $1,127,989 as restitution, and to be deported upon completion of his prison term.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, join U.S. Attorney Murray in making today’s announcement.
“Alhassan preyed upon older victims by exploiting their vulnerabilities, including their human need for a personal connection and a loving relationship. Some of the victims were exploited repeatedly, until their well ran dry and they had no more money to give,” said U.S. Attorney Murray. “Investigating and prosecuting the full range of criminal activities that exploit America’s seniors is a priority for my office. It’s equally important that all of us look out for our elderly family and friends who may be targeted by scammers, as a watchful eye can make all the difference in keeping our loved ones safe, and preventing their financial and emotional devastation.”
“The U.S. Postal Inspection Service takes great pride in protecting the American public, especially our vulnerable older Americans. Those seeking to defraud and take advantage of our postal customers should know they will not go undetected and will be held accountable,” said Inspector-in-Charge Coke.
“This case makes clear that transnational scammers who believe they can avoid accountability for their crimes are mistaken,” said Special Agent in Charge Martinez. “HSI is committed to using its unique, cross-border investigative authorities to hold persons accountable who defraud senior citizens and other vulnerable persons. We’re appreciative of our partnership with the U.S. Attorney’s Office to successfully prosecute this case, and will continue to work with our federal, state and local partners to identify and stop financial crimes targeting vulnerable populations.”
According to filed documents and today’s sentencing hearing, beginning in or about March 2016, Alhassan conspired with other individuals in the United States and in Ghana to execute romance and precious metals scams that defrauded more than 20 older victims of over $1 million. According to court records, Alhassan and his co-conspirators operated the romance scheme by creating fake profiles and using fake identities on internet dating websites and other methods to target potential fraud victims, who were frequently elderly, with false promises of a romantic relationship.
According to court records, as part of the scheme, and in addition to developing fake romantic relationships with the victims, Alhassan and others falsely claimed to own large quantities of gold located in Ghana. The victims were induced to send money to Alhassan and others, purportedly to pay for expenses to ship the gold from Ghana to the United States and other countries, where it could be sold. As Alhassan previously admitted in court documents, he and his co-conspirators falsely told the victims that they would receive a share of the profits when the gold was brought and sold in the United States.
According to court records, Alhassan and his co-conspirators further induced victims to send funds under the guise of securing travel documents for the person with whom the victims believed to be in a romantic relationship. To convince victims to continue to send money, Alhassan and his co-conspirators invented fictitious obstacles, including problems with travel visas and customs related issues. The co-conspirators continued to call, text, and e-mail the victims and insist that more money was needed. Alhassan and his co-conspirators employed these tactics until the victims either ran out of money or discovered the fraudulent nature of the scheme.
Court records show that, in August 2017, Alhassan was stopped at the Charlotte airport with more than $130,000 in proceeds derived from the fraud. Alhassan continued to be involved in the scams even after law enforcement seized the funds, until he was arrested and charged federally for his role in the fraudulent scheme.
Alhassan is currently detained and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray commended the USPIS and HSI for their investigation of this case.
Assistant United States Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative
Georgia Man Indicted for Scheme to Steal Millions from the San Felipe Del Rio Consolidated School DistrictRead the Press Release
Donald Ray Lockard, age 66 of Douglasville, GA, made his initial appearance in federal court today in Del Rio on charges in connection with the alleged scheme to steal over $2 million from the San Felipe Del Rio Consolidated School District (SFDRCISD), announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office.
A federal grand jury indictment charges Lockard with one count of conspiracy to commit wire fraud and three substantive counts of wire fraud. The indictment alleges that while doing business as DL Investments from August 2019 to February 2020, Lockard stole SFDRCISD funds and used them for his own personal benefit. According to the indictment, co-conspirators sent fraudulent emails to the comptroller of SFDRCISD claiming to be representatives of the financial institution to which SFDRCCISD made bi-annual bond payments. Those fraudulent emails resulted in the diversion of SFDRCISD bond payments to a different financial account established and controlled by Lockard. The indictment specifically identifies three separate fraudulent wire transfers to Lockard’s account on February 12, 2020, totaling $2,013,762.50. The indictment also includes a notice of criminal forfeiture in which the government is seeking to forfeit over $1.5 million seized from Lockard’s bank accounts. Lockard filed for Chapter 7 bankruptcy on May 10, 2016.
Each count upon conviction calls for up to 20 years in federal prison. Lockard remains on bond. No further court dates have been scheduled.
The FBI is conducting this ongoing investigation. Assistant U.S. Attorney Joshua Banister is prosecuting this case on behalf of the government.
It is important to note that 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.
Frederick Man Faces Federal Charges of Fraud Related to COVID-19Read the Press Release
Baltimore, Maryland – The United States Attorney’s Office for the District of Maryland has charged Marek Majtan, age 35, of Frederick, Maryland with committing a scheme to defraud to sell unregistered and misbranded pesticides. Majtan has been charged via criminal complaint with the following federal charges: mail fraud, in violation of 18 U.S.C. § 1341; and the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), in violation of 7 U.S.C. § 136j(a)(1)(A), 136j(a)(1)(E), and 136l(b)(1)(B). An initial appearance is set for September 11, 2020 at 2:15 p.m.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer Lynn of the Environmental Protection Agency-Criminal Investigation Division; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
“It is particularly egregious to seize on the ongoing pandemic to take advantage of the public,” said U.S. Attorney Robert K. Hur. “My office will continue to investigate and prosecute those who commit COVID-19 related frauds, especially those who endanger the public through their actions.”
“This case shows that consumers need to be cautious of products that make unsubstantiated claims of controlling viruses,” said Environmental Protection Agency (EPA) Special Agent in Charge Jennifer Lynn of EPA’s Criminal Investigation Division in Maryland. “EPA and our law enforcement partners continue to work to stop the sale of these illegal products. Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of approved products.”
“Protecting American consumers from fraudsters taking advantage of a public health emergency is a top priority for the U.S. Postal Inspection Service. We continue to work with the U.S. Attorney’s Office and our partners at the Environmental Protection Agency- Criminal Investigations Division as part of the COVID-19 Anti-Fraud Task Force to bring those seeking to exploit people during this pandemic to justice, said Inspector in Charge Peter R. Rendina of the Washington Division of the U.S. Postal Inspection Service.”
According to the federal criminal complaint, Majtan is alleged to have committed multiple violations of the Federal Insecticide, Fungicide, Rodenticide Act (“FIFRA”) by fraudulently selling unregistered and misbranded pesticides. On April 8, 2020, in the midst of the COVID-19 pandemic, Majtan filed a trade name application with the Maryland State Department of Assessment and Taxation for “Capitol Cleaning Solutions” (CCS). It is further alleged that he purchased pesticides of unknown origin from a person he met on Facebook Marketplace and whose last name he did not know. He then repackaged the pesticides at his home, and created his own handmade label and application directions, using EPA registration information from a discontinued product. He then advertised on the internet that the product was “Compliant and Approved” by EPA and the CDC. He falsely claimed that the product “Kills 99.9% Bacterias & Viruses” and “Kills Covid 19 & Seasonal Flu,” in an effort to entice people to buy it.
Since May 19, 2020, it is alleged that Majtan sold disinfectant products on eBay without authorization from the EPA. In addition to selling CCS products on eBay, CCS appeared to market and sell products on a website, http://ccs-box.com, created by Majtan. He fraudulently claimed that the products were EPA-registered pesticides under FIFRA, that the products were registered with the Centers for Disease Control (CDC), and that these products were on FIFRA’s List N: Disinfectants for Use Against SARS-CoV-2. Neither CCS nor Majtan has obtained a company number from EPA as required prior to registering a pesticide. Neither CCS nor Majtan submitted an application for registering a pesticide to the EPA. CCS does not produce any pesticides registered by the EPA pursuant to FIFRA. The CCS website stated that 1,231 CCS product bottles had been sold, and the company has served 323 customers. Majtan admitted to Agents that he falsified those figures to entice buyers.
On May 20, 2020 EPA-CID and USPIS conducted an undercover purchase of two pesticides sold by CCS on eBay, that were delivered to FedEx. Based on the undercover purchase, federal law enforcement agents executed a search warrant at this particular FedEx and seized five additional packages sent by CCS with the undercover purchase intended for customers in Florida, Georgia, Massachusetts, and Illinois.
FIFRA requires that pesticides must display on labels the following information clearly and prominently: name, brand, and trademark under which the product is sold; name and address of the producer or registrant; product registration number and producing establishment's number. Additionally, pesticides must display labels containing a warning or caution statement necessary that, if complied with, is adequate to protect human health and the environment. Majtan failed to include any such labels or to display any such required information.
If convicted, Majtan faces a maximum sentence of 20 years in federal prison and a $250,000 fine for mail fraud, and up to 1 year in federal prison and a $25,000 fine for a violation of FIFRA. 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.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the EPA-CID and the U.S. Postal Inspection Service, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sean R. Delaney and Lindsay Kaplan, who are prosecuting the case.
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Four Webster Groves Men Arrested for Conspiracy to Distribute Cocaine Base (Crack) and Related ChargesRead the Press Release
St. Louis, MO – During the afternoon of August 25, 2020, four Webster Groves men were arrested for a twenty-five count federal indictment for conspiracy to distribute cocaine base (crack) and related charges. Law enforcement officers arrested the following men, all of whom are from Webster Groves, Missouri:
Marcus Antonio Beasley, 33;
Kevin Melinek Ingram, Jr., 27;
Jason Marquis Ingram, 35; and
Steven Paul Wright, 39.
The defendants were presented in federal court yesterday for their initial appearances.
The indictment charges, among other things, that between October 2016 and July 2020, the defendants conspired to distribute and possess with the intent to distribute cocaine base (crack cocaine) and that they distributed cocaine base (crack cocaine).
The charges against Marcus Antonio Beasley and Kevin Menilek Ingram, Jr., are punishable by imprisonment of not less than five years and up forty years and a fine up to $5,000,000. The charges against Jason Marquis Ingram and Steven Paul Wright are punishable by up to twenty years imprisonment and a fine of up to $1,000,000.
This investigation was conducted by the Webster Groves Police Department, the St. Louis County Multi-Jurisdictional Drug Task Force, and the FBI.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty in a court of law.
Four Southwest Mississippi Men Charged with Federal Wildlife CrimesRead the Press Release
Jackson, Miss. – Kenneth R. Britt, Jr., 51, of Wesson, Tony Grant Smith, 26, of Wesson, Barney Leon Bairfield, III, 28, of Brookhaven, and Dustin Corey Treadway, 27, of Brookhaven, have been charged in a criminal indictment by a federal grand jury with killing in excess of the legal limit of Kansas and Nebraska wild turkeys while unlicensed in those states, and transporting the wild turkeys across state lines to Mississippi, announced U.S. Attorney Mike Hurst and Colonel Steve Adcock of the Mississippi Department of Wildlife, Fisheries, and Parks (MDWFP)
According to the indictment, in the spring of 2017 and 2018, the defendants traveled to Kansas and Nebraska and hunted wild turkeys, taking over 25 wild turkeys without the required hunting licenses and in excess of the limit of two per person per season, in violation of Kansas law. They returned to Mississippi with trophy spurs and beards of the illegally-killed turkeys. Under the federal Lacey Act, it is unlawful for any person to transport across state lines any wildlife taken in violation of state law.
The indictment also charges Kenneth R. Britt, Jr. with the federal felony of lying to a federal law enforcement officer, and Tony Grant Smith with killing red-shouldered hawks in violation of the Migratory Bird Treaty Act.
The defendants appeared for arraignment today before U.S. Magistrate Judge F. Keith Ball in Jackson. The case has been set for trial before Senior United States District Judge David C. Bramlette III on November 2, 2020.
If found guilty of all charges, Britt faces a total of 7 years in prison and a $450,000 fine; Smith faces a total of 2 years and 6 months in prison and a $215,000 fine; Bairfield faces a total of 3 years in prison and a $300,000 fine; and Treadway faces 1 year in prison and a $100,000 fine.
“The fine sportsmen and women of this state can rest assured that, nationwide, conservation enforcement agencies, along with Agents of the U.S. Fish and Wildlife Service, will continue working together to stop the thievery and abuse of our valuable natural resources,” said MDWFP Colonel Steve Adcock.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement and the Mississippi Department of Wildlife, Fisheries and Parks. It is being prosecuted by First Assistant United States Attorney Darren J. LaMarca.
The public is reminded that the indictment is merely an allegation of wrongdoing and the defendants are presumed innocent until proven guilty in a court of law.
Founder and CEO of Fresno Substance Abuse Treatment Center Pleads Guilty to Defrauding Health Insurance CarriersRead the Press Release
FRESNO, Calif. — Orlando Gillam, 46, of Fresno, pleaded guilty Thursday to mail fraud in connection with false claims he submitted to public and private health insurers, U.S. Attorney McGregor W. Scott announced.
According to court documents, Gillam is the founder and CEO of Dunamis Inc. Group Home, a nonprofit that provided services that included alcohol and drug treatment and counseling. Between January 2016 and January 2018, Gillam falsely billed insurers hundreds of thousands of dollars for alcohol and drug treatment and counseling, mental health treatment, and group and individual psychotherapy purportedly rendered to multiple individuals. Those individuals did not receive the services billed, and several of them were not Dunamis clients at all.
This case is the product of an investigation by the Federal Bureau of Investigation, the Office of Personnel Management Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.
Gillam is scheduled to be sentenced on Nov. 20. He faces a maximum statutory penalty of 20 years in prison and a $$250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former International UAW President Charged with Conspiring to Embezzle Union FundsRead the Press Release
Dennis Williams, the former President of the international United Auto Workers union, was charged today in a Criminal Information with conspiring with other UAW officials to embezzle UAW funds announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Dennis Williams, 67, of Corona, California, is charged with conspiring with former UAW President Gary Jones and others to embezzle UAW dues money between 2010 and September 2019.
Between June 2014 and June 2018, Williams served as the President of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States. Prior to serving as UAW President, Williams was the Secretary-Treasurer of the UAW from June 2010 through June 2014.
The Criminal Information charges that Williams conspired with at least six other senior UAW officials in a multi-year conspiracy to embezzle money from the UAW for the personal benefit of Williams and other senior UAW officials. UAW officials concealed hundreds of thousands of dollars in personal expenditures in the cost of UAW conferences held in Palm Springs, California, Coronado, California, and Missouri. Between 2010 and 2018, former UAW President and co-defendant Gary Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with UAW leadership and training conferences. In truth, however, Williams and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators.
The Information charges that Williams and other senior UAW officials used UAW money to pay for personal expenses, including multi-month long stays at private villas in Palm Springs, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals. During the course of the conspiracy, while Williams was UAW President, co-conspirators Gary Jones, Vance Pearson, and others provided themselves and Williams with thousands of dollars in such personal items.
Based on the charge of conspiring to embezzle union funds, Williams faces a maximum of five years in prison and a fine of up to $250,000.
A Criminal Information is only a charge and is not evidence of guilt.
Williams is the fifteenth defendant to be charged in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 moths). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW President Gary Jones, former UAW Vice President Joseph Ashton, former senior UAW official Jeffrey “Paycheck” Pietrzyk, former UAW Region 5 Director UAW Board member Vance Pearson, and former UAW Midwest CAP President Edward “Nick” Robinson.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The charges today are further steps forward in our relentless effort to ensure that the over 400,000 men and women of the UAW have honest and ethical leadership,” said United States Attorney Matthew Schneider. “The UAW’s members deserve leaders dedicated to serving the members and their families, not serving themselves.”
“An important mission of the Office of Inspector General is to investigate allegations relating to labor racketeering. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.”
"As an officer and president of the UAW, Dennis Williams' union members trusted him to advocate for them. Instead, he trampled on that trust and used his position and influence to advocate for his own personal benefit," said Special Agent in Charge D'Antuono."Today, Williams begins to face the consequences of his choice to break that trust and fiduciary responsibility."
“Today’s charges underscores our commitment to work in a collaborative effort with our law enforcement partners to rid the UAW of corrupt officials,” said Special Agent in Charge, Sarah Kull, of the Internal Revenue Service – Criminal Investigation, Detroit Field Office.
“Today’s information alleges a continuation of the outrageous abuse of power by former UAW top officers. Former UAW International President Dennis Williams misused his position of trust to enrich himself and other officers within the UAW at the expense of the UAW’s hardworking members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “This information leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.
Former Bank Vice President Sentenced in Federal Court after Conspiring to Lie to His EmployerRead the Press Release
A former vice president of a bank who conspired to lie to the bank for years was sentenced today to three years of probation.
Dan Raduns, age 66, from Dubuque, Iowa, received the prison term after a July 1, 2019 guilty plea to one count of conspiracy to make a false statement to a financial institution.
Evidence and information disclosed during court hearings showed that between 2007 and 2009, Raduns worked as a vice president at a bank in Dubuque. During that time, he conspired with another person to lie to the bank about how money the bank was loaning to the other person was being used. Specifically, they lied about using the money to complete a particular construction project when, instead, it was being used elsewhere. Ultimately, the bank lost over $320,000 in loans made on the construction project.
Raduns was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Raudns was sentenced to three years’ probation. He was ordered to make $324,032.27 in restitution the victim bank.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 19-CR-1024.
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Former Baltimore Police Officer Pleads Guilty to Lying to Federal Law Enforcement Officer Regarding the Illegal Sale of Drugs Seized During A BPD InvestigationRead the Press Release
Baltimore, Maryland –Former Baltimore Police Officer Victor Rivera, age 48, of Nottingham, Maryland, pleaded guilty yesterday to making false statements to a federal law enforcement officer in connection with a scheme to sell three kilograms of cocaine seized during a Baltimore Police Department investigation.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
Victor Rivera joined the Baltimore Police Department (BPD) on July 11, 1994 and November 21, 1999, respectively. In February 2009, Rivera served on a squad with I.L., W.J., C.J., P.G., and K.G., that was supervised by W.K.
According to his plea agreement, prior to February 19, 2009, W.J. and C.J. told Rivera they had received information from a confidential informant about a large-scale narcotics trafficker operating out of a residence on the 1400 block of Ellamont Street, in Baltimore, Maryland. On February 19, 2009, Rivera, I.L., and other members of the squad were conducting surveillance at the residence of the alleged narcotics trafficker, an individual whose initials are T.M. Rivera and another member of his squad, W.K., followed a car from that residence to a nearby school where Rivera saw the driver throw something into a trash container. Once the driver left, Rivera and W.K. recovered the trash and found it to be empty kilogram drug wrappers. During this time other officers claimed to have followed a second individual who left the residence who threw trash from the car window, which was found to contain cocaine residue. Rivera, and other officers remained at the house until W.J. and C.J. obtained a search warrant from a Baltimore City District Court judge.
As detailed in his plea agreement, Rivera ultimately participated in the search of the residence. While no drugs were found in the house, officers found car keys, including a key that had the ability to activate an alarm in a vehicle remotely. A BPD officer activated the alarm and officers heard the alarm sound in a pickup truck that was parked nearby. Rivera learned that drugs were found in the truck. Other officers waited with the cocaine until a SWAT team arrived to provide protection during the transportation of the cocaine to BPD headquarters because it was such a large quantity. In order to transport the cocaine from the scene to BPD headquarters, it was loaded into a BPD surveillance van driven by K.G. After the cocaine was loaded into the surveillance van, officers followed the SWAT team to BPD headquarters to maintain chain-of-custody over the cocaine. Forty-one kilograms of cocaine were turned in to the BPD’s Evidence Control Unit on February 20, 2009. Later that day, a criminal complaint was filed in the United States District Court for the District of Maryland charging T.M. with possessing with intent to distribute five or more kilograms of cocaine.
Rivera discovered three additional kilograms of cocaine in the surveillance van that had been used to transport the cocaine to BPD. These kilograms of cocaine had come from the seizure from T.M.’s pickup truck on February 19 and 20, 2009, but had not been turned in to the BPD on February 20, 2009. Rather than turn this cocaine in to BPD, Rivera, and others agreed to sell the cocaine and split the proceeds from its sale.
Rivera sold the cocaine to a confidential informant of his, who trafficked in cocaine. The source sold the cocaine in Baltimore City. Rivera received the proceeds of the sale from his source and then shared them with other officers. Ultimately, Rivera received $20,000 in drug proceeds from the sale of the cocaine seized from T.M.’s pickup truck that had not been turned in to BPD.
On November 1, 2019, Rivera agreed to participate in a voluntary interview with FBI task force officers (“TFOs”). Rivera was told it was a crime to lie to the FBI TFOs interviewing him and he acknowledged he understood. In that interview, Rivera made a number of false statements and material omissions. An example being, the FBI TFO asking, “Did you ever hear of anybody taking any drugs or any money or anything like that from the incident?” to which Rivera replied, “No sir. No.”
Rivera faces a maximum sentence of 5 years imprisonment for making false statements to federal agents. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
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Final Mafia Member in 2017 Takedown Sentenced to Life in Prison for Murder, Racketeering, and Other CrimesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that STEVEN L. CREA, the Underboss of the Luchese Family, was sentenced today to life in prison, a $400,000 fine, and the forfeiture of $1 million following his conviction for the 2013 murder of Michael Meldish, conspiracy to commit racketeering, and other felonies. A jury convicted CREA and three co-defendants on November 15, 2019, following a six-week trial before U.S. District Judge Cathy Seibel, who also imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “Steven L. Crea – the Underboss of the Luchese Family – is the last of a dozen made men arrested in 2017 to be sentenced for his crimes. For his role in the 2013 murder of Michael Meldish and other crimes, Crea will now spend the rest of his life behind bars. Thanks to the outstanding investigative work of the FBI and NYPD, we continue our commitment to render La Cosa Nostra a thing of the past.”
According to the evidence presented at trial, the admissions of defendants who pled guilty, and other court documents:
STEVEN L. CREA was the Underboss, or second-in-command, of the Luchese Family of La Cosa Nostra, one of the “Five Families” that constitute the Mafia in the New York City area. From 2000 to his arrest in 2017, CREA helped lead the Luchese Family, which made millions of dollars in profit from crimes committed by the Family’s members and associates in New York City, Westchester, Long Island, New Jersey, and elsewhere. In 2013, CREA helped orchestrate the murder of Michael Meldish.
In May 2017, charges were filed against 12 members of the Luchese Family, including the Acting Boss, Underboss, Consigliere, four captains, and five soldiers, for their commission of a wide array of crimes with the Mafia from at least in or about 2000 up to and including in or about 2017. With the exception of one captain who died before his case was resolved, every Luchese Family member charged in this case either pled guilty or was convicted at trial. With CREA’s sentencing today, all have now been sentenced by Judge Seibel. Eight Mafia associates were also charged. All subsequently pled guilty or were convicted at trial, and seven have now been sentenced. The defendants were convicted of being leaders, members and associates of the Mafia, and committing crimes including the murder of Michael Meldish; three attempted murders – including the attempted murder of a former witness against the Mafia; multiple assaults; trafficking oxycodone, cocaine, and other drugs; extortion; millions of dollars in fraud against a public hospital in the Bronx; loansharking; operating illegal gambling businesses; and other crimes. A chart containing the ages, residency information, convictions, and sentences of the defendants is attached.
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Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation, the New York City Police Department, Homeland Security Investigations, the Waterfront Commission of New York Harbor, and the U.S. Bureau of Prisons.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Scott Hartman, Hagan Scotten, Jacqueline Kelly, Celia V. Cohen, and Alexandra N. Rothman are in charge of the prosecution.
DEFENDANT
AGE
CITY OF RESIDENCE
CHARGES OF CONVICTION
SENTENCE
Madonna, Matthew
84
Incarcerated
Racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, aiding and abetting use of a firearm to commit murder
Life in prison
Crea, Steven L.
73
Crestwood, NY
Racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, aiding and abetting use of a firearm to commit murder
Life in prison, $400,000 fine,
$1 million forfeiture
Londonio, Christopher
46
Incarcerated
Racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, aiding and abetting use of a firearm to commit murder, conspiracy to distribute narcotics
Life in prisonCaldwell, Terrence
62
Incarcerated
Racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, use of a firearm to commit murder, attempted murder in aid of racketeering, use of a firearm during a crime of violence
Life in prisonDatello, Joseph
69
Staten Island, NY
Racketeering conspiracy
168 months' imprisonment
Crea, Steven D.
48
New Rochelle, NY
Racketeering conspiracy, conspiracy to commit murder in aid of racketeering, attempted assault with a deadly weapon in aid of racketeering
156 months' imprisonment, $50,000 fine
Bruno, Vincent
36
Incarcerated
Attempted murder in aid of racketeering, racketeering conspiracy
136 months' imprisonment
Vaughan, Brian
54
Matawan, NJ
Racketeering conspiracy
84 months' imprisonment
O’Connor, Richard
66
Staten Island, NY
Conspiracy to distribute narcotics
72 months' imprisonment
Garcia, Carmine
Deceased
Hawthorne, NJ
Racketeering conspiracy, conspiracy to commit assault in aid of racketeering
60 months' imprisonment, $250,000 fine
DiNapoli, Joseph
84
Bronx, NY
Racketeering conspiracy
52 months' imprisonment, $250,000 fine
Castelucci, John
60
Staten Island, NY
Racketeering conspiracy
37 months' imprisonment, $150,000 fine
Maffucci, James
72
New York, NY
Extortion, Extortionate extension of credit
37 months' imprisonment
Corso, Tindaro
59
Staten Island, NY
Racketeering conspiracy
30 months' imprisonment, $10,000 fine
Venice, Joseph
59
Yonkers, NY
Racketeering conspiracy
18 months' imprisonment, $10,000 fine
Cassano, Paul
41
Yonkers, NY
Conspiracy to commit assault in aid of racketeering
18 months' imprisonment
Camilli, Robert
63
Briarcliff Manor, NY
Extortionate extension of credit
One year supervised release; $35,000 fine
Incatasciato, John
45
Elmsford, NY
Extortionate collection of credit
Two years' supervised release; 100 hours' community service
Federal Inmate Sentenced for Conspiring to Launder Drug Trafficking ProceedsRead the Press Release
PITTSBURGH – Donnell Steward was sentenced to 24 months in prison for conspiring to launder drug trafficking proceeds between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Steward, age 51, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan directed that the prison sentence be served consecutively to the prison sentence Steward was serving at the time of the crime. Judge Ranjan also directed that Steward serve one year of supervised release following his prison sentence.
Steward was incarcerated at the federal prison at Otisville, New York, when he conspired to launder the proceeds of his distribution of Schedule I synthetic cannabinoid controlled substances. Such substances have caused severe illness and deaths throughout the United States in recent years. Steward was incarcerated as a result of several prior convictions in the District of Columbia for assault with a deadly weapon, possession of a firearm during a crime of violence, and armed robbery.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Federal Court holds Florida Tax Return Preparer in ContemptRead the Press Release
A federal court in Miami, Florida, held that Jessyca Bernard has violated a permanent injunction entered against her on June 25, 2018, which barred her from preparing tax returns for others.
Bernard admitted in documents filed with the court that the United States gathered sufficient evidence demonstrating that she violated the injunction by directly or indirectly preparing 438 tax returns for others, using her husband’s name, Dave Moulton, to conceal her involvement. Bernard agreed to pay the United States $79,000 as reimbursement of its investigative expenses and disgorgement of fees she received from refunds claimed on returns she prepared in violation of the injunction. The investigation was undertaken by the Tax Division as part of its effort to monitor the conduct of return preparers who have been enjoined from preparing returns, and hold those who have continued to do so accountable for violating that ban.
The U.S. District Court for the Southern District of Florida ordered Bernard to pay these amounts and barred her from working at or maintaining any interest in any entity that offers tax preparation services.
The injunction barring Bernard from preparing tax returns remains in effect, and the court authorized the United States to continue to monitor her compliance with its orders.
“Fraudulent tax return preparers abuse our nation’s tax laws and take advantage of those customers who pay them to file a correct tax return,” said Richard Zuckerman, Principal Deputy Assistant Attorney General for the Tax Division. “We are committed to working with our IRS partners to root out these perpetrators, particularly those who continue to violate the law even after being ordered by a court to cease their activities.”
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.