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25 August 2020
North Carolina Man Charged with COVID-19 Relief FraudRead the Press Release
WASHINGTON – A North Carolina man was charged by criminal complaint unsealed today for fraudulently seeking more than $414,000 in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General (FDIC OIG), and Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (CI) Miami Field Office made the announcement.
David Christopher Redfern, 31, of Trinity, North Carolina, was charged by criminal complaint filed in the Middle District of North Carolina with one count of wire fraud and one count of bank fraud. Redfern was arrested this morning and made his initial appearance this afternoon before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina.
The complaint alleges that Redfern, through a company called Wilder Effects LLC (Wilder Effects) that he formed in January 2020, fraudulently applied for two EIDLs and a PPP loan between April and June of this year. The PPP loan application was supported by falsified documents. The false documentation included a fake IRS filing that purported to be Wilder Effects’ Employer’s Quarterly Federal Tax Return for the first quarter of 2020, showing that the company paid wages to 20 employees, when in reality the IRS has no record of such a filing. The complaint further alleges that EIDL and PPP loan proceeds were withdrawn in cash or transferred to Redfern’s personal bank account. As a result of suspected fraud alerts, Wilder Effects’ bank account was frozen and approximately $402,000 of the over $414,000 in EIDL and PPP loan proceeds were recovered.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by TIGTA, FDIC OIG, and IRS CI. Trial Attorney Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith Ruggles for the Middle District of North Carolina are prosecuting the case. The Justice Department thanks the SBA OIG for their support and assistance.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (BCDF) hotline by phone (1-866-720-5721 or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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North Carolina Man Charged with COVID-19 Relief FraudRead the Press Release
A North Carolina man was charged by criminal complaint unsealed today for fraudulently seeking more than $414,000 in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General (FDIC OIG), and Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (CI) Miami Field Office made the announcement.
David Christopher Redfern, 31, of Trinity, North Carolina, was charged by criminal complaint filed in the Middle District of North Carolina with one count of wire fraud and one count of bank fraud. Redfern was arrested this morning and made his initial appearance this afternoon before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina.
The complaint alleges that Redfern, through a company called Wilder Effects LLC (Wilder Effects) that he formed in January 2020, fraudulently applied for two EIDLs and a PPP loan between April and June of this year. The PPP loan application was supported by falsified documents. The false documentation included a fake IRS filing that purported to be Wilder Effects’ Employer’s Quarterly Federal Tax Return for the first quarter of 2020, showing that the company paid wages to 20 employees, when in reality the IRS has no record of such a filing. The complaint further alleges that EIDL and PPP loan proceeds were withdrawn in cash or transferred to Redfern’s personal bank account. As a result of suspected fraud alerts, Wilder Effects’ bank account was frozen and approximately $402,000 of the over $414,000 in EIDL and PPP loan proceeds were recovered.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by TIGTA, FDIC OIG, and IRS CI. Trial Attorney Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith Ruggles for the Middle District of North Carolina are prosecuting the case. The Justice Department thanks the SBA OIG for their support and assistance.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (BCDF) hotline by phone (1-866-720-5721 or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
New Haven Man Sentenced to 3 Years in Federal Prison for Selling Drugs While on Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOEY FULLER, 31, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for violating the conditions of his federal supervised release.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler. Fuller purchased distribution quantities of crack cocaine from Butler and then sold the drug in smaller quantities to his own customers. Fuller pleaded guilty and, on November 20, 2019, Judge Bryant sentenced him to approximately 21 months of imprisonment, time already served, and four years of supervised release.
On January 14, 2020, less than two months after Fuller was release from prison, New Haven police conducted a controlled purchase of marijuana from Fuller. Investigators then arranged to purchase a quantity of heroin from Fuller. Fuller was arrested on January 31, 2020, after he arrived at a location to conduct the transaction. At the time of his arrest, Fuller possessed approximately 22 bags of heroin that he had agreed to sell.
Fuller has been detained since his arrest, and his state charges are pending.
On August 10, 2020, Butler was sentenced to 78 months of imprisonment.
This case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
Middlesboro Man Sentenced to 188 Months for Attempted Production of Child PornographyRead the Press Release
LONDON, Ky.— Jordan Ryan Turner, 32, of Middlesboro, Kentucky, was sentenced to 188 months in federal prison on Tuesday, by United States District Judge Claria Horn Boom, after pleading guilty to using the internet to attempt to persuade, induce, or entice a minor to engage in sexual activity.
According to Turner’s plea agreement, he admitted to using Facebook Messenger and Kik Messenger to persuade and induce minors to produce sexually explicit videos and still images. Turner further admitted that, in March 2018, while employed as a teacher at Bell County High School, he used Facebook Messenger to attempt to convince a minor to send him a sexually explicit photo.
Turner pleaded guilty to the charges in March 2019.
Under federal law, Turner must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years after his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Commissioner Rodney Brewer, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the KSP and FBI. The United States was represented by Assistant U.S. Attorney Gregory Rosenberg.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and 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.
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Metairie Man Pleads Guilty to Embezzling over $7 Million from His Employer and Filing False Tax ReturnsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEEPAK “JACK” JAGTIANI, age 60, a resident of Metairie, pleaded guilty today before U.S. District Judge Jay C. Zainey. JAGTIANI admitted his guilt to both counts of the indictment that was filed against him in December 2019, which charged him with wire fraud and making false statements on a federal income tax return.
According to the court documents, from 2007 to 2019, JAGTIANI served as the comptroller of Dan-Gulf Shipping, Inc., a Metairie-based freight forwarding company. In that capacity, JAGTIANI had the authority to manage the payroll and other accounts for Dan-Gulf. JAGTIANI admitted that he used his authority to pay himself excessive salaries and benefits from 2009 through early 2019. In total, JAGTIANI defrauded Dan-Gulf and its business partners of over $7,000,000.00.
JAGTIANI also admitted to filing false personal tax returns. According to court documents, for tax years 2014 to 2017, JAGTIANI claimed business losses through a fake catering business. In total, he claimed enough business losses to offset most of his income for which he would be required to pay federal income tax. In truth and in fact, neither JAGTIANI nor his spouse operated any catering business. In total, JAGTIANI avoided paying a total of $1,232,267.00 in federal income taxes.
As to Count 1, wire fraud, JAGTIANI faces a maximum of 20 years in prison, a $250,000.00 fine, and up to three years of supervised release. As to Count 2, filing false tax returns, JAGTIANI faces a maximum of three years of imprisonment, a $250,000.00 fine, and up to one year of supervised release. Judge Zainey scheduled the sentencing hearing for November 17, 2020.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, including the U.S. Secret Service, the Internal Revenue Service – Criminal Investigations, and the Jefferson Parish Sheriff’s Office. U.S. Attorney Strasser also extended his thanks to the Jefferson Parish District Attorney’s Office for their assistance in this matter. This case is an example of the coordinated effort of the federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force, which includes representatives from the U.S. Secret Service, the Internal Revenue Service, the Louisiana Attorney General’s Office, Louisiana State Police, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John the Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, U.S. Postal Inspection Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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Men Admit to Smuggling Disaster that Resulted in Tragic Deaths of Three SistersRead the Press Release
Assistant U. S. Attorney Charlotte E. Kaiser (619) 546-7282
NEWS RELEASE SUMMARY – August 25, 2020
SAN DIEGO – Two brothers from Chihuahua, Mexico, pleaded guilty in federal court today, admitting that they smuggled three sisters across the U.S.-Mexico border in an ill-fated trek across treacherous terrain that resulted in the tragic deaths of the young women. One of the victims was the mother of a young child.
Cecilio and Ricardo Rios-Quinones pleaded guilty to Transportation of Aliens Resulting in Death, Bringing in Aliens for Financial Gain and Conspiracy. The brothers are scheduled to be sentenced on November 13, 2020 at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo. The defendants also agreed to provide restitution to the sisters’ families.
As part of their plea agreements, the defendants admitted that they conspired with others to serve as foot guides in order to smuggle individuals illegally into the United States, and that they were ill-prepared when they guided the three sisters - Juana Santos Arce, Margarita Santos Arce and Paula Santos Arce of Oaxaca, Mexico - through a remote, mountainous region during a snow storm. The youngest sister was the mother of a young child.
According to the plea agreements, the defendants guided the three sisters - ages 35, 32 and 29 respectively - across the border from Mexico through the boundary fence in a remote area within the Southern District of California. They encountered cold, windy and rainy weather. It then began to snow. They lacked proper clothing, shoes, shelter, and other food and equipment to remain or hike in this cold, remote, mountainous environment.
According to the plea agreements, agents from the Border Patrol, Search, Trauma and Rescue (BORSTAR) unit initiated a rescue operation due to a distress call in the Boulevard Border Patrol Station’s area of operation on February 10, 2020, at approximately 1:50 p.m. The call concerned five undocumented aliens who were lost and experiencing hypothermia. BORSTAR agents initially encountered the two defendants in the snow in an area approximately 20.5 miles east of the Tecate, California port of entry and approximately 12 miles north of the border. The defendants pointed agents to the direction of the three sisters. Agents subsequently found the three sisters lying on the ground near a large boulder on a ridge.
Two of the women were already dead; one was responsive but suffering severely from hypothermia. She later died despite gallant efforts of members of BORSTAR, Border Patrol Agents from the Campo/Boulevard area and ASTREA, the aviation unit from the San Diego Sheriff’s Department, who placed their own lives at risk while trying to keep the distressed woman alive as temperatures dropped and winds accelerated. Autopsies confirmed the three sisters died due to environmental hypothermia.
“These three young women lost their lives in horrible circumstances, despite the heroic efforts of many who tried to save them,” said U.S. Attorney Robert Brewer. “This is a tragedy that never should have happened. Unfortunately, migrant deaths are not uncommon because selfish smugglers don’t hesitate to place vulnerable victims in grave danger to make money. We will deliver justice to these callous smugglers who value their pay day over human lives.” Brewer commended the hard work of prosecutor Charlotte Kaiser and federal agents from Homeland Security Investigations to achieve justice in this case, and the heroism of many Border Patrol agents and Sheriff’s deputies in this heartbreaking case.
“Human smugglers are driven by greed, prey on the desperate, and demonstrate a blatant disregard for human life, as demonstrated by this senseless tragedy,” said Homeland Security Investigations (HSI) Special Agent in Charge Cardell T. Morant. “HSI and our partners remain committed to pursuing and convicting the criminal networks that exploit migrants for profit and undermine our nation’s immigration laws.”
“Justice has been served with these guilty pleas. Unfortunately, the families of those lost in this tragedy will never be whole. These young woman suffered and died at the hands of smugglers who never saw them as people, but only as commodities that could be exploited,” said San Diego Sector Chief Patrol Agent Aaron Heitke. “Border Patrol agents frequently risk their own lives to save others. The actions exhibited in this event represent the highest values of the Border Patrol.”
DEFENDANT Case Number 20cr0868-CAB
Cecilio Rios-Quinones Age: 37 Chihuahua, Mexico
Ricardo Rios-Quinones Age: 22 Chihuahua, Mexico
SUMMARY OF CHARGES
Transportation of Aliens Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (B)(iv)
Maximum penalty: Life in prison or death and $250,000 fine
Bringing in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Three years mandatory minimum in prison, 10 years maximum, and $250,000 fine
Conspiracy – Title 18, U.S.C., Section 371
Maximum Penalty: Five years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
U.S. Border Patrol, Intelligence Unit
Memphis Woman Pleads Guilty in $2 million Healthcare Fraud SchemeRead the Press Release
Memphis, TN – Princess Terry, 27, has pleaded guilty to healthcare fraud and aggravated identity theft. D. Michael Dunavant, U.S. Attorney announced the guilty plea today.
According to information presented in Court, Princess Terry owned and operated Caring Hearts Memphis, a home healthcare services business, which purported to provide healthcare services to mostly elderly patients, including home health aides, skilled nursing, and physical and occupational therapy. Between approximately January 1, 2016 and June 27, 2019, Terry submitted over $2 million in fraudulent billing to Humana, a private health insurance provider, for services that were not actually rendered.
Terry's fraudulent billing practices included numerous instances of billing for home health services on days when patients were actually hospitalized, billing for services in excess of 24 hours in a given day for the same patient, and billing for services purportedly rendered after the patient was deceased.
In executing this scheme, Terry also committed aggravated identity theft by forging patients' signatures without their knowledge or permission on consent-for-services forms and progress notes containing fraudulent misrepresentations about services not actually performed.
The defendant pled guilty on August 25, 2020, before U.S. District Court Judge Thomas L. Parker. A sentencing hearing is scheduled on November 6, 2020, where Terry faces a mandatory minimum sentence of two years and up to ten years.
U.S. Attorney D. Michael Dunavant said: "This case represents our commitment to expose healthcare fraudulent schemes, protect the integrity of the health insurance system, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of victims. The U.S. Attorney’s Office is willing and able to go to any lengths in our pursuit of justice in healthcare fraud cases, and we commend the great investigative work of the FBI in this significant fraud case."
The Federal Bureau of Investigation (FBI) investigated this case.
Assistant U.S. Attorney Christopher Cotten is prosecuting this case on behalf of the government.
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Member of Southeastern Connecticut Drug Ring Sentenced to 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAMEL GENERAL, also known as “Ra,” 38, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by four years of supervised release, for his role in a southeastern Connecticut drug trafficking ring.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation included court-authorized wiretaps and controlled purchases and seizures of heroin, cocaine and crack cocaine, and firearms. General worked closely with an identified leader of a drug trafficking network, distributing cocaine on behalf of the organization and assisting in maintaining an apartment in New London that served as the organization’s primary narcotics distribution location. On February 21, 2019, in association with the arrests of several of General’s co-conspirators, a search of the New London apartment revealed more than 1.5 kilograms of cocaine, more than 350 grams of heroin, and 10 firearms.
General was arrested on February 26, 2019. On March 5, 2019, a grand jury in Hartford returned an indictment charging General and 23 other individuals with various offenses.
On May 27, 2019, General, who was released on bond, was arrested by New London Police and charged with multiple offenses stemming from his alleged assault of a woman with whom he was romantically involved. General’s federal bond was revoked on June 4, 2019.
On March 6, 2020, General pleaded guilty to one count of conspiracy to distribute and possession with the intent to distribute 500 grams or more of cocaine.
The state charges against General related to the May 27, 2019, incident are pending
This investigation is being conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Homeland Security Investigations, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Media Advisory: United States Attorney Mike Stuart to Hold Press Conference TomorrowRead the Press Release
CHARLESTON, W.Va. – Mike Stuart, United States Attorney for the Southern District of West Virginia, joined by federal, state and local law enforcement officials, will hold a press conference on Wednesday, August 26, 2020, at 3 p.m., regarding law enforcement actions.
Where: Robert C. Byrd United States Courthouse
Third Floor, Room 3600
300 Virginia Street East
Charleston, WV 25301When: Wednesday, August 26, 2020 at 3 p.m.
*Note: Please wear masks.
Follow us on Twitter: SDWVNews and USAttyStuart
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Marrero Man Sentenced After Pleading Guilty to Cocaine ConspiracyRead the Press Release
NEW ORLEANS –U.S. Attorney Peter G. Strasser announced that, on August 20, 2020, U.S. District Mary Ann Vial Lemmon sentenced DERRIS HELTON, age 37, of Marrero, Louisiana, to seventy-two (72) months’ imprisonment and (4) four years’ supervised release after pleading guilty to a one-count superseding bill of information charging him with conspiracy to distribute and possess with intent to distribute (500) five hundred grams or more of cocaine hydrochloride and twenty-eight grams or more of cocaine base (“crack”).
According to court documents, in 2016, agents of the Drug Enforcement Administration (DEA) New Orleans identified HELTON as a cocaine trafficker in the New Orleans area. Using a confidential source, agents made two controlled purchases of crack from HELTON totaling more than one hundred grams. Through telephone wiretaps, agents identified HELTON’S co-conspirators, including HELTON’S brother, Phillip, and Robert Gaines. During a monitored telephone call in July 2017, HELTON and his brother Phillip discussed having Gaines supply an individual with a quantity of drugs.
On August 1, 2017, agents learned through monitored telephone calls between HELTON and Gaines that HELTON was travelling from Houston, Texas to New Orleans via bus with a large quantity of cocaine. DEA agents and Louisiana State Police troopers stationed themselves at the Greyhound terminal in New Orleans awaiting HELTON’S arrival. When HELTON arrived at the terminal and exited the bus, agents and troopers approached HELTON. After HELTON consented to a search of his bag, agents found approximately 500 grams of cocaine hydrochloride in his bag.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney André Jones in was charge of the prosecution.
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Man sentenced to 41 months for trafficking at least 320 firearmsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, William Beard, 58, Columbus, Ind., was sentenced to 41 months in federal prison for Unlicensed Firearms Dealing and Falsification of Records in Bankruptcy.
“Beard’s illegal activities introduced hundreds of firearms into the underground gun economy,” said Minkler. “At least twenty three of those guns were recovered from crime scenes in Indianapolis neighborhoods. This office will continue to investigate, arrest and prosecute those who illegally put guns on the streets of our district. Mr. Beard found that out today”
Starting in early 2013 and continuing through October 2017, Beard engaged in systematic unlicensed firearms dealing that resulted in the illegal sale or transfer of over 320 guns. Beard profited significantly from those illegal sales.
On numerous occasions, Beard engaged in “multiple sale” transactions in which he bought multiple firearms on the same day or within several days of one another. Through his pattern of unlicensed firearms dealing, Beard sold, traded, or otherwise disposed of all but a handful of the 320-plus firearms that he purchased between 2013 and 2017. He would sell the guns at various locations, including numerous gun and/or trade shows throughout Indiana. In not one instance did Beard conduct a background check or complete the required ATF paperwork that is required if he were a legally operating Federal Firearms Licensee.
Approximately 23 firearms that Beard purchased and or sold have been recovered from crime scenes. The circumstances of the firearm recoveries ranged from armed robberies to drug search warrants.
On June 18, 2018, Beard filed a Chapter 13 bankruptcy petition in the Southern District of Indiana. He failed to disclose income made from selling and trading firearms. He also did not disclose the facts that he had been criminally indicted, thus willfully obstructing the administration of justice, namely, the proper administration of a bankruptcy proceeding.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Selling firearms illegally is just as much a crime as using them illegally,” stated Roland Herndon, Special Agent in Charge of ATF’s Columbus Field Division. “William Beard bought hundreds of firearms, and then sold them without a license. Several of those firearms later showed up in crimes. By diverting firearms from legal to illegal commerce, by helping certain individuals avoid records and background checks, Beard is responsible for fueling violence in our community. Now he will not be able to purchase firearms, and his role in feeding the violence is at an end.”
According to Assistant United States Attorneys Kendra Klump and Amanda Kester, who prosecuted this case for the government, Beard must also serve 2 years of supervised release following his sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to target, investigate, and prosecute defendants committing violent crimes involving firearms trafficking, robbery, and carjacking. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3)
Man Pleads Guilty to COVID-19 Fraud Involving Paycheck Protection ProgramRead the Press Release
ALEXANDRIA, Va. – An Ashburn man pleaded guilty today to defrauding the Paycheck Protection Program (PPP), a federal initiative designed to help businesses pay their employees and meet their basic expenses during the COVID-19 pandemic.
“During a time of national crisis, the federal government set aside money to help struggling businesses pay their hardworking employees and keep their doors open,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Tarik Jaafar planned and executed a scheme to steal money from this essential program and use it for his own personal benefit. This office will continue to work with our law enforcement partners to make sure that federal economic assistance provides relief for beleaguered businesses and not profits for devious criminals.”
According to court documents, Tarik Jaafar, 42, conspired with his wife, Monika Magdalena Jaworska, to create four shell companies. These companies conducted no legitimate business and existed solely as a means to execute the scheme to defraud. From April 13 to May 6, Jaafar and Jaworska applied for 18 separate PPP loans in the names of the four shell companies valued at approximately $6.6 million, falsely claiming, among other things, that the businesses had employees and they needed the loans to pay their employees’ salaries. Jaafar and Jaworska fraudulently induced banks to distribute approximately $1.4 million in loans which they intended to use for their personal benefit.
“The Paycheck Protection Program was developed to aide small businesses during these challenging times,” said Hannibal “Mike” Ware, Inspector General of the Small Business Administration. “Our office will remain relentless in the pursuit of bad actors who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
“Tarik Jaafar pleaded guilty to defrauding the Paycheck Protection Program while millions of Americans are suffering, physically and financially, and using the money to his own benefit,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “The FBI will not tolerate anyone who schemes and steals government funds designed to provide much-needed relief to American business owners. The FBI is committed to tackling COVID-related fraud head on with our local and federal partners.”
On June 20, Jaafar and Jaworska were arrested at John F. Kennedy International Airport as they attempted to flee to Poland. The majority of the funds were recovered by the banks and by law enforcement.
Jaafar pleaded guilty to conspiracy to defraud the United States, and faces a maximum penalty of five years in prison when sentenced on November 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorneys Kimberly Shartar and William Fitzpatrick are prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Financial Institution Fraud squad and the Small Business Administration Office of Inspector General, who work identify, investigate, and prosecute egregious misuses of the Payroll Protection Plan. Tips regarding financial and government fraud schemes can be reported to the FBI at tips.fbi.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-185.
Lobbyist Agrees to Plead Guilty in City Hall Bribery Scheme in Which City Councilman Jose Huizar Supported Developer in Exchange for PAC DonationsRead the Press Release
LOS ANGELES – Federal prosecutors today filed a criminal information charging a longtime Los Angeles City Hall lobbyist and close associate of City Councilman Jose Huizar with participating in a bribery scheme in which he brokered deals where a developer client agreed to make $50,000 in political donations in exchange for Huizar’s official actions for the developer’s benefit.
Morris Roland Goldman, a.k.a. “Morrie,” 57, of Porter Ranch, was charged today with one count of conspiring to commit bribery and honest services mail fraud.
In a plea agreement also filed today in United States District Court, Goldman agreed to plead guilty to the felony offense and cooperate in the government’s ongoing investigation.
According to the court documents, Goldman was a lobbyist for “Company M,” which had a pending development project in the city’s Arts District. Goldman was one of several people who established two political action committees, one of which purportedly supported a variety of causes, but actually was created to primarily benefit the City Council campaign of Huizar’s relative, known in court papers as “Relative A-1.” If elected, Relative A-1 would help Huizar and his associates “maintain a political stronghold in the city,” according to court documents.
In his plea agreement, Goldman admits that in September 2018 he agreed with Huizar and a Company M executive that the developer would contribute $50,000 to a PAC established to support Relative A-1’s political campaign. In exchange, Huizar would vote against a union appeal of Company M’s project in the Planning and Land Use Management Committee, which he chaired at the time.
Court documents also outline how Goldman secured commitments from Company M to contribute to PACs at Huizar’s request prior to September 2018. Between November 2016 and March 2017, Company M contributed a total of $50,000 to a PAC used to benefit Huizar’s political causes. In June 2018, Goldman secured a $25,000 contribution to the PAC designed to elect Relative A-1, as well as a commitment for an additional $25,000 contribution. Company M’s project ultimately received significant benefits in the city approval process. For example, the City Council’s approval of Company M’s request to reduce the project’s availability of low-income housing – despite its proximity to Skid Row – netted the company approximately $14 million in savings, court papers state.
Out of the $150,000 in donations agreed to by the developer, $75,000 was actually paid, with the final payments being derailed by an FBI search of Huizar’s home and offices in November 2018.
Goldman is now the sixth defendant to be charged as a result of Operation “Casino Loyale,” an FBI investigation into corruption at Los Angeles City Hall. Four defendants, including former Los Angeles City Councilman Mitchell Englander, have pleaded guilty and await sentencing.
On August 3, Huizar pleaded not guilty to charges in a 34-count racketeering indictment that alleges he led a criminal enterprise designed to enrich himself and his associates, give favorable treatment to developers involved in the payment of bribes, and elect his relative to preserve the enterprise’s power when his term expired at the end of this year. Huizar’s trial is scheduled for June 22, 2021.
Goldman has agreed to surrender in this case and make his first court appearance on September 23. Once he pleads guilty to the conspiracy count, Goldman will face a statutory maximum penalty of five years in federal prison.
The cases against Goldman, Huizar and the other defendants are being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Veronica Dragalin and Melissa J. Mills, also of the Public Corruption and Civil Rights Section.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Leader of Rochester Drug Trafficking Conspiracy Going to Prison for 10 YearsRead 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 Jose Casado, 32, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, fentanyl, heroin, cocaine, and crack cocaine, was sentenced to serve 121 months in prison by Chief U.S. District Court Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that the defendant was the leader of a Rochester-based drug trafficking conspiracy. Between December 2017 and May 15, 2019, Casado conspired with multiple co-defendants to sell fentanyl, heroin, cocaine, and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester. The defendant obtained bulk quantities of the drugs from various suppliers, which he and other members of the conspiracy would then repackage for individual sale. During the course of the conspiracy, the Drug Enforcement Administration made 13 controlled purchases from the defendant or a co-defendant.
On March 14, 2019, a search warrant was executed at 467 Clifford Avenue. Investigators recovered 19 bags of fentanyl, nine bags of powder cocaine, nine bags of crack cocaine, materials used to package controlled substances for distribution, 1,800 rounds of .22 caliber ammunition, and 50 shotgun shells. On May 15, 2019, a second search warrant was executed at 467 Clifford Avenue. During that search, investigators recovered a .22 caliber pistol. Also on May 15, 2019, a search warrant was executed at 125 William Warfield Drive in Rochester, and investigators found and seized $3,970.00 in cash hidden in a heating duct.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
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Las Vegas Man Sentenced to Prison for Distributing FentanylRead the Press Release
LAS VEGAS, Nev. — Tanoo Senethavilay, 37, of Las Vegas, Nevada was sentenced today by Chief U.S. District Judge Miranda Du to four years and nine months in prison, to be followed by three years of supervised release, for conspiracy to distribute fentanyl — a powerful synthetic opioid — in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
Senethavilay pleaded guilty on December 18, 2019, to conspiracy to distribute a controlled substance. Following today’s hearing, Senethavilay was remanded to the custody of the U.S. Marshals Service.
According to court documents, from August 2017 to September 2017, Senethavilay conspired to and did distribute 208 grams (approximately a half-pound) of fentanyl in exchange for cash. He has prior convictions for robbery, felon in possession of a firearm, attempted grand larceny, unlawful carry of a concealed weapon, and driving under the influence of alcohol.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine, and is commonly added to heroin to increase its potency. Street names include “China Girl,” “King Ivory,” and “Murder 8.” Fentanyl poses a high risk of death not only to users, but also to law enforcement since the drug may be ingested, inhaled, or absorbed through the skin. A few milligrams, which is equivalent to a few grains of table salt, may be deadly. Users may believe that they are purchasing heroin without knowing that they are actually purchasing fentanyl – which often results in overdose deaths.
The charges resulted from a joint investigation by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nevada Gaming Control Board.
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Lancaster County Business Owner Sentenced to One Year in Prison for Filing False Liens Against IRS AgentRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Dorothy Recarde, 68, of Kirkwood, PA, was sentenced to one year in prison, one year of supervised release and ordered to pay a $25,000 fine by United States District Judge Paul S. Diamond for filing false and fraudulent liens worth $15,000,000 against an employee of the Internal Revenue Service.
In December 2019, the defendant pleaded guilty to corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue Service. After an IRS revenue officer initiated levy actions to satisfy an outstanding federal tax obligation of approximately $24,000 incurred by Recarde’s company, Summerbeam Woodworking, Recarde retaliated by filing two fraudulent liens in Chester County against the officer.
According to court documents, Recarde initially responded to repeated attempts by the revenue officer to collect the outstanding tax obligation by mailing notarized letters to the IRS that espoused sovereign citizen ideology, an anti-government movement that, among other things, denies the government’s authority to impose taxes. She further claimed that correspondence she had mailed to IRS officials and the United States Treasury had gone unanswered, thus nullifying her outstanding debts. Bogus and illegal liens, such as those filed by the defendant, are a common tactic used by supporters of the sovereign citizen movement against perceived opponents or enemies.
“The sovereign citizen movement is nonsense and will be treated as such,” said U.S. Attorney McSwain. “And if you use it as an excuse to harass and retaliate against an IRS agent, you’re going to jail. Then you’ll have plenty of free time to think about the consequences of flouting the law.”
“TIGTA’s statutory mission includes investigating individuals who interfere with Federal tax administration,” said J. Russell George, Treasury Inspector General for Tax Administration. “Attempts to intimidate or retaliate against Internal Revenue Service employees engaged in the performance of their official duties will not be tolerated. We appreciate the efforts of the U.S. Attorney’s Office in this investigation.”
The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA), and is being prosecuted by Assistant United States Attorney Frank R. Costello, Jr.
Justice Department Files Statement of Interest in Massachusetts Absentee Voting Rights CaseRead the Press Release
Yesterday, the Department of Justice filed a Statement of Interest in the Supreme Judicial Court in the Commonwealth of Massachusetts to help ensure that uniformed service members serving their country away from home, their family members absent with them, and American citizens living overseas have the opportunity to participate fully in Massachusetts’s 2020 federal general election. The brief is part of the Department of Justice’s continued efforts to enforce the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).
“Our filing reflects the Justice Department’s unwavering commitment to ensuring that military and overseas voters are afforded a meaningful opportunity to participate in federal elections,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We will continue to ensure that the ability of our brave men and women serving in the military and our citizens residing overseas to participate fully in all federal elections is not infringed.”
“We are committed to protecting the rights of Massachusetts men and women serving our country and our citizens living overseas, including ensuring that their votes are counted and so their voices heard,” said Andrew E. Lelling, U.S. Attorney for the District of Massachusetts.
The lawsuit in question, filed by private plaintiffs, involves a challenge to the absentee ballot receipt deadline for Massachusetts’s upcoming federal primary election on Sept. 1. The plaintiffs have asked the court to extend the ballot receipt deadline until Sept. 11.
The department’s brief explains that UOCAVA requires states to transmit absentee ballots to military and overseas voters who have requested them at least 45 days before any federal election. Massachusetts needs sufficient time after the Sept. 1, primary election to certify and finalize the ballots so that the local election clerks will be able to send the military and overseas absentee ballots by Sept. 19, which is UOCAVA’s 45-day deadline for the Nov. 3, federal general election. The brief does not take a position on whether the court should adjust the ballot receipt deadline, nor does it take a position on the merits of plaintiffs’ claims. But the brief notes that any adjustment to the ballot receipt deadline should allow Massachusetts time to comply with UOCAVA to avoid the real possibility of disenfranchising military and overseas voters for the Nov. 3, 2020 election.
UOCAVA requires states to allow uniformed service voters serving away from home (those serving both overseas and within the United States) and their families who are absent with them, and American citizens residing overseas, to register to vote and to vote absentee for all elections for federal office. In 2009, Congress enacted the MOVE Act, which made significant amendments to UOCAVA. Among those changes was a requirement that states transmit absentee ballots to UOCAVA voters who have timely requested ballots, by mail or electronically at the voter’s option, no later than 45 days before federal elections.
More information about UOCAVA and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about possible violations of the federal voting rights laws may be reported to the Justice Department’s Civil Rights Division at 1-800-253-3931.
Statement of Interest
Justice Department Files Statement of Interest in Massachusetts Absentee Voting CaseRead the Press Release
BOSTON – The Department of Justice filed a Statement of Interest yesterday in the Supreme Judicial Court in the Commonwealth of Massachusetts to help ensure that uniformed service members serving their country away from home, their family members absent with them and American citizens living overseas have the opportunity to participate fully in Massachusetts’s 2020 federal general election. The brief is part of the Department of Justice’s continued efforts to enforce the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).
“We are committed to protecting the rights of Massachusetts men and women serving our country and our citizens living overseas, including ensuring that their votes are counted and so their voices heard,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts.
“Our filing today reflects the Justice Department’s unwavering commitment to ensuring that military and overseas voters are afforded a meaningful opportunity to participate in federal elections,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We will continue to ensure that the ability of our brave men and women serving in the military and our citizens residing overseas to participate fully in all federal elections is not infringed.”
The lawsuit in question, filed by private plaintiffs, involves a challenge to the absentee ballot receipt deadline for Massachusetts’s upcoming federal primary election on Sept. 1, 2020. The plaintiffs have asked the court to extend the ballot receipt deadline until Sept. 11, 2020.
The brief explains that UOCAVA requires states to transmit absentee ballots to military and overseas voters who have requested them at least 45 days before any federal election. Massachusetts needs sufficient time after the September 1 primary election to certify and finalize the ballots so that the local election clerks will be able to send the military and overseas absentee ballots by Sept. 19, 2020, which is UOCAVA’s 45-day deadline for the Nov. 3, 2020 federal general election. The brief does not take a position on whether the court should adjust the ballot receipt deadline, nor does it take a position on the merits of plaintiffs’ claims. But the brief notes that any adjustment to the ballot receipt deadline should allow Massachusetts time to comply with UOCAVA to avoid the real possibility of disenfranchising military and overseas voters for the Nov. 3, 2020 election.
UOCAVA requires states to allow uniformed service voters serving away from home (those serving both overseas and within the United States) and their families who are absent with them and American citizens residing overseas to register to vote and to vote absentee for all elections for federal office. In 2009, Congress enacted the MOVE Act, which made significant amendments to UOCAVA. Among those changes was a requirement that states transmit absentee ballots to UOCAVA voters who have timely requested ballots, by mail or electronically at the voter’s option, no later than 45 days before federal elections.
More information about UOCAVA and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about possible violations of the federal voting rights laws may be reported to the Justice Department’s Civil Rights Division at 1-800-253-3931.
This matter is being handled by Torey B. Cummings of Lelling’s Civil Rights Unit.
Iowa Man with Multiple Felony Convictions Sentenced to Six Years in Federal Prison for Illegally Possessing a Gun.Read the Press Release
A convicted felon who possessed a gun while also using drugs was sentenced to six years in federal prison.
Curtis Eugene Koesters, age 40, received the prison term after a February 20, 2020 guilty plea to one count of possession of a firearm by a felon and a drug user.
Evidence presented at the change of plea and sentencing hearings in this case revealed that defendant was a recidivist drug dealer, with a history of dangerousness, who unlawfully possessed a gun in connection with his felonious drug trafficking activities. When he was discovered in possession of the gun, he was also in possession of a methamphetamine pipe, approximately 7 grams of methamphetamine, $561 in US Currency, a syringe containing methamphetamine, and a digital scale, among other items.
Koesters was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Koesters was sentenced to 72 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Koesters is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4078.
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Inmate's Mother Admits to Participating in Son's Drug Trafficking ConspiracyRead the Press Release
PROVIDENCE – A mother today admitted to a federal court judge that she participated in a drug trafficking conspiracy run by her son while he was incarcerated in the Adult Correctional Institutions (ACI). The son, with the mother’s assistance, directed drug dealers to sell crack cocaine to people outside of the prison.
According to court documents, on January 22, 2018, during an investigation of the drug trafficking activities of Pawtucket residents James Gomes, 33, and his mother, Lisa Ellis, 52, police executed a court-authorized search of Ellis’ residence and arrested both Ellis and Gomes. Ellis at the time told police she knew her son was dealing crack cocaine and admitted that she assisted on at least one occasion. Ellis and Gomes were charged with drug trafficking offenses in Rhode Island state court. Gomes was detained at the ACI, while Ellis was released on bail. According to court documents, Gomes continued dealing crack cocaine from inside the prison, with his mother’s assistance.
Appearing today in federal court, Ellis admitted that she acted as point-of-contact for her son as he executed a scheme from inside the prison to have crack cocaine delivered to prospective buyers outside of prison. Ellis admitted that on her receiving her son’s calls from the ACI, she conferenced in his associates on her cell phone, who were then directed by Gomes to make crack cocaine sales, specifying customer, quantity, and price. She also admitted that those associates would bring her the proceeds of the sales, a portion of which she kept and the remainder of which she deposited in Gomes’ prison account.
Joshua Moore, 19, formerly of Pawtucket, and Gerald Price, 34, of Cranston, were among the associates who sold drugs for Gomes.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Ellis pleaded guilty to conspiracy to distribute cocaine base and distribution of 28 grams or more of cocaine base, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives Kelly D. Brady.
Ellis is scheduled to be sentenced on November 10, 2020. Conspiracy to distribute cocaine base and distribution of 28 grams or more of cocaine base are each punishable by statutory penalties of up to 20 years imprisonment, with a mandatory minimum term of incarceration of 5 years; a life term of supervised release; and a fine of up to $1,000,000.
In this matter, Gomes pleaded guilty on October 15, 2019, to one count of conspiracy to distribute 28 grams or more of cocaine base, one count of distribution of 28 grams or more of cocaine base, and three counts of distribution of cocaine base. He was sentenced on July 8, 2020, to 77 months in federal prison, to be served concurrently with his present term of incarceration at the ACI on state charges. His term of incarceration in federal prison is to be followed by 4 years’ federal supervised release.
Joshua Moore pleaded guilty on September 4, 2019, to conspiracy to distribute 28 grams or more of cocaine base and three counts of distribution of cocaine base. He was sentenced on November 21, 2019, to 60 months in federal prison to be followed by 4 years of supervised release.
Gerald Price pleaded guilty on November 8, 2019, to conspiracy to distribute 28 grams or more of cocaine base, distribution of 28 grams or more of cocaine base, and three counts of distribution of cocaine base. He was sentenced on February 24, 2020, to 60 months incarceration to be followed by 4 years of supervised release.
The cases in federal court are being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Illinois Felon Sentenced to 20 Months in Federal Prison for Unlawfully Possessing a GunRead the Press Release
A convicted felon who illegally possessed a gun during a brief standoff with police was sentenced August 21, 2020, to 20 months in federal prison.
Antoine Argue, 38, from Park Forest, Illinois, received the prison term after a guilty plea to illegally possessing a firearm as a felon.
Evidence presented by the United States at the detention, change of plea, and sentencing hearings showed that law enforcement made a traffic stop of a vehicle on June 15, 2019 in which Argue was a passenger. Argue was uncooperative when officers repeatedly ordered him to show his hands and to keep his hands up. Eventually as Argue exited the vehicle, law enforcement heard a metal object hit the pavement, which was identified as a loaded Taurus .45 caliber handgun.
Argue was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Argue was sentenced to 20 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4047.
Follow us on Twitter @USAO_NDIA.
Illegal Alien admits to drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Hashim Hussein, a citizen of Kuwait, has admitted to selling cocaine near West Virginia University, U.S. Attorney Bill Powell announced.
Hussein, also known as “Kuwait,” age 21, pled guilty to one count of “Distribution of Cocaine Hydrochloride within 1000 Feet of Protected Location.” Hussein admitted to selling cocaine hydrochloride, also known as “Coke,” in December 2019 near the campus of West Virginia University in Monongalia County.
Hussein faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The FBI and Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michal John Aloi presided.
Historic prosecutor appointments enhance Southern District U.S. Attorney's OfficeRead the Press Release
SAVANNAH, GA: The first-ever dedicated prosecutor from Fort Stewart and a specialized animal cruelty prosecutor represent historic appointments bolstering the ranks of the Southern District of Georgia U.S. Attorney’s Office.
Capt. Darron Hubbard, of Savannah, and Jessica Rock, of Jackson, Ga., have been sworn into office to serve the United States in the Southern District of Georgia U.S. Attorney’s Office, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Hubbard will serve as a full-time Special Assistant U.S. Attorney (SAUSA) in the Savannah Office, while Rock will serve as an SAUSA dedicated to animal cruelty cases.
“Our office’s resounding prosecutorial success in leveraging outstanding U.S. Army JAG Corps attorneys to serve full-time assignments in the U.S. Attorney’s Office continues to reap benefits for our law enforcement efforts while providing valuable experience to military attorneys,” said U.S. Attorney Christine. “In addition, a prosecutor specializing in animal cruelty cases adds tremendous firepower in our work to eradicate animal fighting operations in the Southern District and beyond.”
The new appointees are:
- Capt. Darron Hubbard, a six-year veteran of the U.S. Army, served as trial defense counsel for the Army in Kaiserslautern, Germany, before joining the JAG Corps at Fort Stewart. A summa cum laude graduate of DePaul University College of Law, Hubbard served in the Army as a criminal prosecutor and defense counsel, and as personal civil counsel for soldiers. He previously served as a SAUSA for the Western District of Oklahoma U.S. Attorney’s Office, and is the first full-time dedicated SAUSA appointed from Fort Stewart.
- Jessica Rock represents only the second time in the nation that a dedicated animal cruelty prosecutor has joined a U.S. Attorney’s Office. In 2019, she was appointed as Georgia’s Statewide Animal Crimes Prosecutor and Trainer and serves as an Assistant District Attorney with the Towaliga Judicial Circuit. Rock provides statewide animal cruelty and animal fighting case assistance for law enforcement and prosecutors, and statewide and national training to law enforcement, animal control officers, prosecutors, judges and veterinarians. In 2004, she became Georgia’s first dedicated animal cruelty prosecutor, creating Georgia's first animal cruelty task force with law enforcement. For more than 16 years, Jessica has dedicated her career to the prosecution of animal crimes and education on the closely connected link between animal abuse and human violence. Rock is a graduate of the Emory University School of Law and a former clerk for a former Chief Justice of the Supreme Court of Georgia. She currently is assisting in the prosecution of two major cockfighting cases in the Southern District.
The U.S. Attorney’s Office for the Southern District of Georgia, led by U.S. Attorney Bobby L. Christine, prosecutes cases involving violations of federal laws, and represents the interests of the United States government and its agencies in criminal and civil matters.in the 43 counties of the Southern District.
Guatemalan Woman Living in Clarion, Iowa Sentenced for Using Illegally Obtained SNAP and SSI FundsRead the Press Release
A woman who illegally obtained SNAP and SSI funds was sentenced August 24, 2020, to time served.
Aracely Batres-Alonzo, age 26, from Guatemala received the prison term after an October 21, 2019, guilty plea to two counts of theft of U.S. government funds.
In a plea agreement, Batres-Alonzo admitted that between about January 1, 2016 and May 31, 2019, she used $43,346.00 in the form of Supplemental Nutrition Program (SNAP), formerly Food Stamps; and Family Investment Program (FIP) funds, to which the she was not entitled to. She fraudulently reported on her Iowa Department of Human Services (DHS) applications and review/recertification eligibility documents (RREDs) that she and her spouse (father of her children) were not employed. The investigation showed her spouse had been working under an assumed name. The investigation also shows that Batres-Alonzo had been employed with several different companies since April 2015, and never reported her or her spouse’s income to DHS. This unreported income would have made the household ineligible for benefits.
Batres-Alonzo, the representative payee for her minor child’s Supplemental Security Income (SSI) benefit, administered by the Social Security Administration (SSA), concealed material information from the SSA in her capacity as her minor child’s representative payee. She failed to report her full household income to the SSA, causing her minor child to be overpaid $1,829.29 between April 1, 2018 and March 30, 2019.
Batres-Alonzo was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Batres-Alonzo was sentenced to 2 days’ time served. She was ordered to make $43,346 in restitution to the Department of Human Services and $1,829.29 in restitution to the Social Security Administration.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by United States Department of Agriculture, Office of Inspector General (USDA-OIG), the Department of Homeland Security, Bureau of Immigration and Customs Enforcement (ICE), the Social Security Administration, Office of Inspector General (SSA-OIG), and the Iowa Department of Inspections and Appeals (IDIA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-03028.
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Gilmore City Man Sentenced to Federal Prison for Filing False Tax Returns and Theft of Government FundsRead the Press Release
A Gilmore City, Iowa man who owned and operated a tax return preparation business was sentenced August 25, 2020 to more than 1 year in federal prison.
David Miller, age 52, from Gilmore City, IA, received the prison term after pleading guilty to three counts of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns and three counts of receiving stolen government money or property.
In a plea agreement, Miller admitted that he owned and operated a tax return preparation business. He further admitted that while operating that business, he prepared fraudulent income tax returns. The fraudulent returns that Miller prepared between 2011 and 2016 resulted in a total loss to the government of $125,954. Miller also stole money from his clients by depriving them of part of their tax refunds. Miller also failed to report the stolen funds as income, which resulted in an additional tax obligation for himself of $30,752. In his plea agreement, Miller agreed to pay a total of $156,706 in restitution to the Internal Revenue Service.
“Miller abused his position as a tax preparer to steal from both the American taxpayer and Miller’s own clients,” said United States Attorney Peter E. Deegan, Jr. “I thank the Internal Revenue Service for its hard work in protecting the integrity of the tax system. Together, the United States Attorney’s Office and the Internal Revenue Service will continue to hold tax preparers accountable when they commit fraud and abuse.”
“Today’s sentencing of Mr. Miller again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their pursuit of those who would attempt to defraud America’s tax system,” said Acting Special Agent in Charge Adam Steiner. “Taxpayers should be careful in selecting the tax professional who prepares their returns.”
Miller was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Miller was sentenced to 12 months’ and 1 day imprisonment. He was ordered to pay restitution to the victims in this case—numerous individual tax payers and the IRS. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system. Miller will report to the Bureau of Prison’s as directed by the United States Marshals Service.
This case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the Department of Treasury and the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3004.
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Four Indicted in Minneapolis Police Third Precinct ArsonRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging DYLAN SHAKESPEARE ROBINSON, 22, DAVON DE-ANDRE TURNER, 24, BYRCE MICHAEL WILLIAMS, 26, and BRANDEN MICHAEL WOLFE, 23, with one count each of conspiracy to commit arson at the Minneapolis Police Department’s Third Precinct. ROBINSON and WOLFE, were previously charged via federal criminal complaint with aiding and abetting arson. WILLIAMS was previously charged via criminal complaint with conspiracy to commit arson. Formal detention and arraignment hearings will be scheduled at a later date.
According to the allegations in the indictment, on May 28, 2020, ROBINSON, TURNER, WILLIAMS, and WOLFE each went to the Minneapolis Police Department’s Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. ROBINSON, TURNER, WILLIAMS, and WOLFE, along with unidentified other co-conspirators, breached the fence and entered the Third Precinct building.
According to the allegations in the indictment, ROBINSON, assisted by an unidentified co-conspirator, lit an incendiary device held by the unidentified co-conspirator who threw it toward the Third Precinct building with the intent that it would start a fire or fuel an existing fire. WILLIAMS and TURNER, assisted by an unidentified co-conspirator, lit a Molotov cocktail, which was taken into the Third Precinct building by TURNER and used to start a fire. WOLFE pushed a barrel into a fire at the entrance of the Third Precinct building to accelerate an existing fire.
The ATF and FBI continue to urge the public to report suspected arson, use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information specifically related to the Third Precinct fire or other business fires in the Twin Cities can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com. In addition to fires, the FBI is looking for people who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALLFBI (800-225-5324) or visit tips.fbi.gov.
This case is the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
DYLAN SHAKESPEARE ROBINSON, 22
Brainerd, Minn.
Charges:
- Conspiracy to commit arson, 1 count
DAVON DE-ANDRE TURNER, 24
St. Paul, Minn.
Charges:
- Conspiracy to commit arson, 1 count
BRYCE MICHAEL WILLIAMS, 26
Staples, Minn.
Charges:
- Conspiracy to commit arson, 1 count
BRANDEN MICHAEL WOLFE, 23
St. Paul, Minn.
Charges:
- Conspiracy to commit arson, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Inmate Sentenced for Introducing Heroin and Buprenorphine into USP LeeRead the Press Release
ABINGDON, VIRGINIA – A former inmate of the United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced yesterday for his role in introducing heroin and buprenorphine into the prison, United States Attorney Thomas T. Cullen announced today.
Tylan Lucas, 38, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon to a total term of 96 months imprisonment for conspiracy and possession with intent to distribute heroin and buprenorphine, as well as other related charges.
Co-defendant Shauntae Crummer was sentenced on June 30, 2020, to 36 months imprisonment for her role in the offense.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Former Florida Investment Adviser Sentenced to Ten Years in Prison for Defrauding ClientsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Sean Donald Premock, 47, of Ft. Lauderdale, Florida, was sentenced today to ten years in prison and three years of supervised release by United States District Judge Paul S. Diamond for numerous fraud offenses. The defendant was also ordered to forfeit $797,021 in proceeds and pay $1,061,532 in restitution.
The defendant, a former licensed stockbroker and investment adviser, pleaded guilty in May 2017 to nine counts of mail fraud, nine counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud. As part of his guilty plea, Premock admitted that he had lost all of his professional licenses between March 2012 and August 2013, and had been permanently barred from serving as an investment advisor. The defendant’s fraud that led to his conviction in this case began while he was still licensed and continued even after he lost his licenses.
Premock began defrauding his clients in at least 2009, while still employed at a securities firm in Florida. When it became apparent that he was going to lose his licenses, Premock set up his own investing companies, including the aptly-named Mocktrading Investments, LLC and Mock Trading Group, which the defendant used to defraud his clients -- most of whom were elderly and inexperienced investors and some of whom were his own family members. Premock continued to hold himself out as a licensed stockbroker and investment adviser even after losing his licenses, and convinced many of his clients to trust him with their life savings. The defendant promised to manage his clients’ money and invest it in, among other things, stocks, bonds, “hedge funds,” “tractions,” and annuities. Premock told his clients that their funds would be safe, and promised to place them in low risk investments.
In reality, Premock invested only about half of the funds he received from clients and spent the rest on himself. Furthermore, the investments he did make were failures and he lost virtually all of his clients’ money. To hide his fraud, the defendant lied to his clients about their investments and mailed them false account statements. Later, Premock even began calling himself “Ethan” to make it harder for anyone to discover his true identity. In total, Premock’s clients lost more than $1,000,000 during the course of his fraud.
“Honesty, integrity, and trust all play a critical role in the relationship between a financial advisor and a client. Any advisor who deliberately betrays his clients’ trust for his own financial gain turns the system on its head,” said U.S. Attorney McSwain. “The damage done by such corrupt financial advisors can be catastrophic; here, some of Sean Premock’s victims lost their life savings. Today’s sentence reflects the gravity of that betrayal.”
“Getting fired for bad behavior and losing his professional licenses proved a mere career speedbump for Sean Premock,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “His next venture: flat-out fraud. He set about reeling in unsuspecting investors, lied about his plans for their money, and created a phony paper trail to cover up his crimes. Most of his victims were elderly. Maybe that’s why he thought he could get away with it. The FBI is proud to have proved him wrong.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Former Defense Department Employee Sentenced for Public Corruption While Working at Sierra Army Depot and at Naval Air Station LemooreRead the Press Release
SACRAMENTO, Calif. — Jeffery Parsons, 44, of Dillon, Montana, was sentenced on Monday by U.S. District Judge Kimberly J. Mueller to one year in prison for conspiring to accept illegal gratuities on account of official actions and conspiring to sell government property without authority. Judge Mueller also ordered Parsons to forfeit to the United States over $230,000.
According to court documents, Parsons was a civilian employee of the U.S. Department of Defense. In November 2009, Parsons began working as an Environmental Protection Specialist at Sierra Army Depot in Herlong, California (SIAD). He later held the same position at Naval Air Station Lemoore in Lemoore, California (NASL). In his official positions at SIAD and NASL, Parsons’ responsibilities included the disposition of hazardous materials such as batteries, fuel and oil.
In October 2012, Parsons, his wife, and their associate Travis Wong agreed that Parsons would use his authority at SIAD to allow Wong to sell valuable materials from the installation and that, in return, Wong would pay Parsons and his wife a portion of his proceeds from the sales. After Parsons transferred to NASL, Parsons, his wife, and Wong continued their illegal scheme. Just as Parsons had done at SIAD, he abused his authority at NASL by allowing Wong to sell materials removed from the U.S. Navy base. Once again, Wong paid Parsons and his wife a portion of his proceeds from the sales. In total, Wong received approximately $314,000 from selling government property, and he paid Parsons and his wife approximately $56,000. Wong made the illegal payments by checks payable to a company registered to Parsons’ wife, as well as checks payable to Parsons’ daughter.
While carrying out their illegal scheme with Wong, Parsons and his wife also began a separate scheme. Specifically, Parsons allowed his wife to sell materials from SIAD to third-party recycling companies. Parsons’ wife falsely represented to those companies that she and her company had a contract with SIAD or were otherwise authorized by SIAD to sell the recyclers materials removed from the installation. In total, the recycling companies collectively paid Parsons’ wife approximately $175,000.
On March 16, Judge Mueller sentenced Wong to three years of probation and ordered him to forfeit to the United States approximately $314,000.
This case is the product of an investigation by the Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Command. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
Former CFO of ETA Compute Pleads Guilty to Wire FraudRead the Press Release
BOISE – Timothy Semones, 60, of Ketchum, Idaho, pleaded guilty to wire fraud, U.S. Attorney Bart M. Davis announced today. Semones was indicted by a federal grand jury in Boise on February 12, 2020, on ten counts of wire fraud and one count of money laundering. Sentencing is set for December 8, 2020, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
According to court records, Semones admitted that, in 2017 and 2018, he was the Chief Financial Officer (CFO) of ETA Compute, Inc. (ETA), a corporation with its principal place of business in Los Angeles, California. Semones worked remotely from Ketchum. As part of his duties as CFO, Semones had access to ETA’s Wells Fargo Bank business checking account and had the ability to make online transfers of funds from this account.
According to court records, in 2017 and 2018, Semones was in the process of designing and building an approximate 7,000 square foot personal residence located at 29 Lake Creek Drive in Ketchum. Between October 2017 and November 2018, Semones made nine online transfers of funds, totaling $3 million, from ETA’s Wells Fargo Bank business checking account to personal bank accounts over which he had access and control. Semones used the misappropriated funds to pay construction costs for the residence at 29 Lake Creek Drive, and to pay off the balance of a line of credit used to build the residence.
According to court records, in November 2018, when ETA’s Chief Executive Officer confronted Semones about the low balance of funds in ETA’s Wells Fargo Bank business checking account, Semones made false statements about the location and balance of funds. Further, Semones emailed falsified Wells Fargo Bank records – that made it appear that ETA’s bank account had $1.5 million more than it actually did – to ETA’s Chief Executive Officer.
In May 2020, the Lake Creek Drive property was sold. ETA was provided with $3 million, in full restitution for its loss, from the proceeds of the sale.
The charge of wire fraud is punishable by up to 20 years in federal prison, a maximum fine of $250,000, and up to three years of supervised release.
This case was investigated by the Federal Bureau of Investigation.
# # #
Foreign traveler convicted of bringing in child pornographyRead the Press Release
McALLEN, Texas - A 31-year-old Mexican national has pleaded guilty to transportation of child pornography, announced U.S. Attorney Ryan K. Patrick.
On Dec. 10, 2019, Edgar Arevalo-Lara entered the United States from Mexico through the Roma Port of Entry. There, he claimed he was travelling to Dallas for a month. However, authorities noticed he did not appear to have enough luggage or money with him to support his reported length of stay.
Upon further investigation, they discovered 53 images on his phone depicting minors engaged in sexually explicit conduct. He admitted he downloaded child pornography from the internet and knew the images were graphic.
U.S. District Judge Randy Crane accepted the plea and has set sentencing for Nov. 5. At that time, Arevalo-Lara faces a minimum of five and up to 20 years imprisonment and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Kristina Pekkala prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Floyd County Dentist Pleads Guilty to Health Care FraudRead the Press Release
FRANKFORT, Ky.- A McDowell, Ky., man, Denver D. Tackett, DMD, 66, pleaded guilty on Tuesday, before U.S. District Judge Gregory Van Tatenhove, to health care fraud.
According to the plea agreement, Tackett, a licensed dentist who owned and operated Tackett Family Dentistry in McDowell, Ky., submitted false and unnecessary claims to Kentucky Medicaid for reimbursement for dental procedures and services performed at his practice. Tackett admitted to performing, and submitting claims for, dental procedures that were not reasonable or necessary for the diagnosis and treatment of a patient’s illness or injury. For example, Tackett submitted claims for “surgical” extractions when he had only performed a “simple” extraction, a lower reimbursing procedure, or a “surgical” extraction was not medically necessary.
In total, Tackett admitted to submitting more than $95,000 in reimbursement claims to Kentucky Medicaid and its fiscal intermediaries for medically unnecessary dental procedures.
As part of his plea agreement, Tackett agreed to permanently surrender his Drug Enforcement Administration registration and agreed to refrain from seeking registration in the future. Without a DEA registration, healthcare professionals are not able to lawfully prescribe controlled substances. Tackett also agreed to pay restitution of at least $70,000, and agreed to a forfeiture money judgement of $20,000.
Tackett was indicted in April 2019 as part of the Appalachian Regional Prescription Opioid (ARPO) Strike Force initiative.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey T. Scott, Special Agent in Charge, DEA, Louisville Field Division; and Daniel Cameron, Kentucky Attorney General, jointly announced the guilty plea.
The investigation was conducted by DEA, Kentucky Office of the Attorney General, and AHIDTA. The United States was represented by Assistant U.S. Attorney Andrew Smith and Assistant Chief Kate Payerle from the Department of Justice’s Fraud Section.
Tackett is scheduled to be sentenced on December 15, 2020. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
The ARPO Strike Force is made up of prosecutors and data analysts with the Department of Justice’s Fraud Section, prosecutors with the ten U.S. Attorney’s Offices in the Appalachian region, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in Ft. Mitchell, Kentucky, and Nashville, Tennessee, areas, supporting the ten districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Kentucky Medicaid Fraud Control Unit.
Since its inception in October 2018, the ARPO Strike Force, which operates in ten districts, has charged more than 70 defendants who are collectively responsible for distributing approximately 50 million pills. Thus far there have been 31 guilty pleas as a result of ARPO Strike Force’s efforts. The ARPO Strike Force is part of the Medicare Fraud Strike Force Program, led by the Fraud Section. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
— END —
Five Charged in Multi-Million Dollar International Customs Fraud SchemeRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Dale Behm; Yong Heng Liang, also known as Colin Liang; Joshua Stanka; Joshua Clark; and Michael Choy with conspiracy, wire fraud, and related charges related to an alleged scheme to submit fraudulent claims for refunds on import duties, announced United States Attorney David L. Anderson, Homeland Security Investigations (HSI) Special Agent in Charge Tatum King, and Internal Revenue Service Criminal Investigations (IRS-CI) Special Agent in Charge Kareem Carter.
The indictment, filed August 12, 2020, and unsealed today, alleges Liang, 34, of Daly City, Calif.; Behm, 75, of Shell Knob, Missouri.; Stanka, 41, of Katy, Texas; Clark, 38, of Fair Oaks Ranch, Texas; and Choy, 47, of Etibicoke, Ontario, Canada, conspired to defraud the United States of as much as $40 million by submitting multiple claims for refunds to recover tariffs that were properly owed on imports. Pursuant to the refund scheme, defendants allegedly used a tire recycling company in Hayward and a shell company, both controlled by Liang. The recycling company had no recycling equipment and shipped containers of thousands of used tires to countries in Asia, often using the name of the shell company. In addition, the defendants forged the shipping documents to support false claims to the government that the exported tires were actually high-quality plastics, allowing defendants to seek refunds paid for other imports.
“We allege that the defendants, using Bay Area Tire Recycling, engaged in a massive environmental fraud. Used tires don’t belong in landfills, either here in California or overseas. Used tires can be recycled, retreaded and reused. By dumping used tires in Korea, India, and Vietnam, and using those exports to support false claims, the defendants cheated consumers, American taxpayers, the shipping companies, and everyone who cares about the environment.“
“Working in partnership with IRS Criminal Investigations and U.S. Customs and Border Protection, HSI will vigorously pursue U.S. based violators who seek to trash our planet and ruin the ecosystem for future generations,” said Special Agent in Charge King.
“This was an extremely well organized network,” said Special Agent in Charge Carter. “They manipulated the system to their advantage, submitted millions in false claims and laundered their ill-gotten gains. IRS CI will continue to work with our law enforcement partners to ensure that anyone involved in these types of schemes will be held accountable for their crimes.”
According to the indictment, at the heart of the scheme were bonded companies such as San Francisco-based raw plastics importer The Pacific Rim Traders, LLC. The indictment alleges that beginning as early as 2014 and continuing through September 2019, the defendants filed fraudulent claims for refunds of customs duties that Pacific Rim and other companies had paid to CBP. In the case of Pacific Rim, the company imported large amounts of plastic resin from its parent company in China and used the resin to manufacture food-grade bottles and other materials. Pacific Rim paid tariffs, or “customs duties,” on the imported plastics. The company also maintained a customs bond with CBP and therefore was entitled to accelerated refund checks, or “drawbacks,” from the U.S. Treasury when it exported qualifying goods.
The indictment describes how the defendants submitted documents allowing Pacific Rim to receive drawbacks by submitting documents that made it appear shipping containers filled with used tires and scrap plastic were loaded with drawback-eligible virgin plastic material. Specifically, Liang, who controlled a company that purported to recycle tires, allegedly arranged for shipping containers loaded with used tires to be shipped to ports in countries in Asia, including the Republic of Korea, India, and Vietnam. Liang then allegedly provided documents, including export bills of lading, to Choy who, at the direction of Stanka, Clark, and others, modified Liang’s and other exporters’ documents to provide to Behm with false invoices. The invoices made it appear that Pacific Rim was selling large amounts of virgin plastic material to companies in Asia, when, in reality, Liang was exporting tires and other material. Behm and others then allegedly directed a San Francisco-based customs broker to use the false documents to prepare customs drawback claims with CBP. The claims sought drawbacks for as much as $655,000 at a time.
Liang is also charged with defrauding a shipping company that had to pay for destruction of containers of tires shipped to Busan, South Korea. According to the indictment, Liang listed a then-dissolved company as the recipient, or consignee, of the tires. The indictment alleges that in 2017, 128 containers shipped by Liang were found abandoned in Busan, a discovery that lead to the initiation of an investigation by federal authorities. A comparison of the export documents to the refund claims suggests the coconspirators altered the paperwork so that “scrap rubber” appeared as “PFTE Resin” and “EFTE Resin.” The indictment alleges that if the actual contents of the containers – scrap rubber tires – had been reported to CBP, Pacific Rim’s drawback claims would not have been granted.
In total, the indictment alleges Pacific Rim received at least $6,400,000 in fraudulent drawbacks, while other clients of Stanka, Clark, Choy, and Liang obtained as much as an additional $34,000,000 in total refunds.
In addition, the indictment alleges the parties laundered the proceeds of the fraud scheme. Pacific Rim allegedly received a percentage of the fraudulent refund claims and paid the remainder to a company owned by Stanka and Clark. Further, Stanka and Choy allegedly transferred hundreds of thousands of dollars to themselves and made frequent payments to Choy for altered documents. Choy, in turn, allegedly paid Liang for copies of bills of lading for his exports of waste tires to South Korea, Hong Kong, Vietnam, and elsewhere.
In sum, the defendants are charged with the following crimes:
Count
Violation
Description
Defendant(s) Charged
1
18 U.S.C. § 286
Conspiracy To Defraud the Government With Respect To Claims
All Defendants
2-16
18 U.S.C. § 287
False, Fictitious, Or Fraudulent Claims
All Defendants
17-28
18 U.S.C. § 1343
Wire Fraud
All Defendants
29-30
18 U.S.C. § 1341
Mail Fraud
Yong Heng Liang
31
18 U.S.C. § 1957
Engaging In Monetary Transactions In Property Derived From Specified Unlawful Activity
Joshua Stanka
32
Joshua Clark
33
Joshua Stanka
34
Joshua Stanka
35
Joshua Clark
36
Joshua Stanka; Joshua Clark
37
Joshua Clark; Michael Choy
38
Joshua Clark
39
18 U.S.C. § 1956(a)(2)(A)
Laundering Of Monetary Instruments
Yong Heng Liang; Michael Choy
40
Yong Heng Liang; Michael Choy
41
Joshua Clark; Michael Choy
42
Yong Heng Liang; Michael Choy
43
18 U.S.C. § 1519
Destruction, Alteration, Or Falsification Of Records In Federal Investigations And Bankruptcy
Yong Heng Liang
Defendant Liang was arrested in Daly City, Calif., and is scheduled to make his initial appearance tomorrow morning, August 26, 2020, in San Francisco. Defendants Stanka and Clark were also arrested in Texas this morning and are scheduled made their initial appearances in federal court in Houston, Texas, and San Antonio, Texas, respectively. Defendant Dale Behm was arrested in Missouri and will make his initial appearance in federal court in Springfield, Missouri.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face maximum sentences as follows:
Violation
Description
Maximum Penalties
18 U.S.C. § 286
Conspiracy To Defraud The Government With Respect To Claims
10 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 287
False, Fictitious, or Fraudulent Claims
10 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 1343
Wire Fraud
20 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 1341
Mail Fraud
20 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 1957
Engaging In Monetary Transactions In Property Derived From Specified Unlawful Activity
10 Years;
$250,000 fine;
3 Years Supervised Release
18 U.S.C. § 1956(a)(1)(A)
Laundering Of Monetary Instruments
20 Years;
$500,000 fine, or twice the value of property involved in the transaction;
3 Years Supervised Release
18 U.S.C. § 1519
Destruction, Alteration, Or Falsification Of Records In Federal Investigations And Bankruptcy
20 Years;
$250,000 fine;
3 Years Supervised Release
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.The case is being prosecuted by the Special Prosecutions section of the United States Attorney’s Office with the assistance of Beth Margen and Lance Libatique. The prosecution is the result of an investigation by HSI and IRS-CI.
Felon with Multiple Convictions Sentenced to 5+ Years on Firearm ChargeRead the Press Release
TOPEKA, KAN. – A Topeka man who has a record of criminal convictions including voluntary manslaughter and aggravated battery was sentenced today to 64 months in federal prison for possessing a firearm, U.S. Attorney Steven McAllister said.
William F. Bivens III, 42, Topeka, Kan., pleaded guilty to two counts of unlawful possession of firearms by a convicted felon. He admitted officers found him in possession of two firearms, a .40 caliber Glock and a .45 caliber Arms Corp. pistol. Federal law prohibits convicted felons from possessing firearms.
In a sentencing memo filed with the court, prosecutors cited Bivens’ criminal record built over 20 years.
“The defendant has absolutely no desire to live a law-abiding life,” the memo said.
McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service and Assistant U.S. Attorney Jared Maag for their work on the case. This case was prosecuted under Project Safe Neighborhoods, a federal initiative to reduce gun violence.
Federal Inmate Gets More Time for Possessing ContrabandRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 3 months in jail on his conviction of possession of contraband in prison, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on William Hunt, 37. The sentence was imposed to run consecutively to the sentence Hunt is currently serving.
According to information presented to the court, on or about June 11, 2019, Hunt was in possession of contraband, namely a quantity of synthetic cannabinoid NM2201 while an inmate at the McKean Federal Correctional Institution.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Brady commended officers of the McKean Federal Correctional Institution and the Pennsylvania State Police for the investigation leading to the successful prosecution of Hunt.
Drug trafficker implicated in overdose death sentenced to federal prisonRead the Press Release
BRUNSWICK, GA: The second of two men charged in a drug trafficking conspiracy implicated in a woman’s overdose death has been sentenced to more than 15 years in federal prison.
Makeda Atkinson, 46, of Brunswick, was sentenced in U.S. District Court to 186 months in prison by Judge Lisa Godbey Wood after pleading guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Previously, Judge Wood sentenced Donald Adams, 63, of Brunswick, to 126 months in prison on the same charge. Each man also must serve three years of supervised release after completion of their prison terms. There is no parole in the federal system.
“Makeda Atkinson and Donald Adams were small-time drug dealers until their poison fueled the overdose death of a young mother whose body was found by her 5-year-old daughter,” said U.S. Attorney Christine. “Her death should serve as a wakeup call for other drug users to seek help – and as a warning to drug traffickers that we will find and prosecute them.”
According to court documents and testimony, investigators with the Glynn County Police Department and the FBI determined that Atkinson and Adams were selling heroin laced with Fentanyl throughout the Brunswick, Ga., area. During the investigation, a 32-year-old woman who purchased drugs from the men on Dec. 28, 2017, was found dead the next day in her parent’s home, and an autopsy determined the woman died from acute Fentanyl toxicity. Glynn County Criminal Investigator Stephen Lowery took the lead in investigating the woman’s death and, working with the FBI, linked it to Fentanyl-tainted heroin sold by Atkinson and Adams.
“Atkinson and his co-defendant played a significant role in the death of a young mother poisoned by the drugs they were pushing,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No sentence is harsh enough to bring solace to the woman's family, but thanks to the assistance from the Glynn County Police Department we were able to make sure these defendants were held accountable under the law.”
The case was investigated by the FBI and the Glynn County Police Department, and prosecuted for the United States by Assistant U.S. Attorneys E. Greg Gilluly and Jennifer Kirkland.
Dothan Man on Supervised Release from Previous Drug Convictions Sentenced to More Than 14 Years in Prison for New Cocaine and Marijuana ChargesRead the Press Release
Montgomery, Alabama – On Thursday, August 20, 2020, Rasheed Demond Johnson, a 38-year-old from Dothan, Alabama, was sentenced to 151 months in prison after pleading guilty to possession of cocaine and marijuana with the intent to distribute, announced United States Attorney Louis V. Franklin, Sr. Johnson was also ordered to serve six years of supervised release after he completes his prison sentence. There is no parole in the federal system.
According to court records, Johnson was on federal supervised release for a previous drug trafficking conviction when law enforcement began to suspect that he had returned to his old ways. According to testimony during his sentencing hearing, in March of 2017, U.S. Postal Inspectors discovered that two packages from Hong Kong containing a synthetic opioid used in making “Spice” were being mailed to addresses associated with Johnson. Spice is an illegal drug that consists of a mixture of plant material sprayed with synthetic chemicals. Over the next year, law enforcement used various investigative methods, including the controlled purchase of drugs from Johnson, to confirm his involvement in illegal activity. Then, on March 23, 2018, law enforcement executed a search warrant on Johnson’s residence and his suspected drug “stash house” where they found cocaine and marijuana. They also found spray bottles that were consistent with those used to make Spice.
Based upon the March 2018 search, Johnson’s federal supervised release was revoked and, as a result, on September 6, 2019, he was sentenced to 24 months in prison. This two-year sentence will run consecutive to the 151 months he received for his most recent federal drug convictions for a total of 175 months in prison. In pronouncing the sentence on Thursday, the judge determined that Johnson qualified as a career offender under the federal sentencing guidelines based on his substantial criminal history. This can significantly increase the potential sentence for a defendant.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the Alabama Law Enforcement Agency, and the Houston County Sheriff’s Office investigated this case, with assistance from the Drug Enforcement Administration and the Alabama Department of Forensic Sciences. Assistant United States Attorney Kevin Davidson prosecuted the case.
Defendants in Pensacola Dog Fighting Prosecution Sentenced to PrisonRead the Press Release
The last of four defendants to be convicted for their roles in a dog fighting conspiracy was sentenced today in federal court in Pensacola, Florida.
David Lee Moser, 37, of Waynesboro, Tennessee, was sentenced today to 12 months and one day in prison. Moser pleaded guilty to conspiring with the co-defendants to violate the dog fighting prohibitions of the federal Animal Welfare Act.
The other three defendants include:
- James “Tommy” Peek, 68, of Milton, Florida, was sentenced on Aug. 10, 2020, to serve 15 months in prison. Peek had pleaded guilty to unlawfully conspiring to violate the dog fighting prohibitions of the federal Animal Welfare Act, delivering a dog to co-defendant Shane Sprague for purposes of having the dog participate in an animal fighting venture, and possessing a dog for purposes of having the dog participate in an animal fighting venture.
- Haley Cook Murph, 25, of Milton, Florida, was sentenced on Aug. 12, 2020, to serve eight months in prison. Murph had pleaded guilty to unlawfully conspiring to violate the dog fighting prohibitions of the federal Animal Welfare Act, traveling to Alabama to purchase a fighting dog from a known dog fighter, and possessing that dog for purposes of using the dog in an animal fighting venture.
- Shane Patrick Sprague, 36, of Pensacola, Florida, was sentenced on Aug. 13, 2020, to serve 18 months in prison. A jury had convicted Sprague of felony conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act.
Senior U.S. District Judge Roger Vinson in the Northern District of Florida imposed the sentences.
“Our division continues to aggressively pursue those who engage in the cruel and brutal practice of dog fighting, which is often linked with many other forms of violent and organized criminal activity,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Today’s sentencing, along with the prior sentencings of other defendants in this case, sends a strong message that we are bringing to justice those who engage in illegal dog fighting and trafficking of fighting dogs. Anyone who engages in this conduct does so at the risk of significant jail time.”
“Federal prison sentences are absolutely appropriate for these criminals,” said U.S. Attorney Lawrence Keefe for the Northern District of Florida. “Each one of them knowingly contributed to the immeasurable fear, suffering and pain these helpless dogs experienced. The U.S. Attorney’s Office will continue to pursue and prosecute those who violate the Animal Welfare Act to the fullest extent of the law.”
“The cruel and inhumane practice of dog fighting has no place in a civilized society and is against federal law,” said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG). “The outstanding work of the USDA-OIG agents who investigated this case made it possible to bring these operators of a major animal fighting venture and breeders who participate in such activities to justice. We will continue to vigorously investigate individuals who attend, facilitate, or profit from the misery inflicted upon animals during these barbaric fights.”
Evidence at trial, along with admissions made by the pleading defendants in conjunction with their plea agreements, established that Sprague arranged dog fights and trafficked in fighting dogs with Moser and others. Moser admitted that he and Sprague agreed to fight their dogs against one another and to prepare a dog for a dog fight, and had discussed concealing evidence that one of Moser’s dogs had killed another dog.
Peek was one of the suppliers of fighting dogs to the conspiracy. He used his reputation as a prominent dog fighter to sell fighting dogs to others around the country. A dog fighting book commonly seized as evidence in dog fighting investigations has a chapter devoted to Peek, which Peek would autograph and sell to customers. He admitted to having delivered a dog to Sprague, believing that the dog would be used for fighting purposes. He also admitted to selling a dog to an undercover agent after making representations about the fighting “bloodlines” and prior and upcoming dog fights scheduled for some of the dogs on his yard.
Murph’s role was that of a makeshift “veterinarian.” Although Murph at no time possessed a veterinary license, she admitted to offering and performing veterinary and surgical procedures on dogs belonging to members of the conspiracy, treating dogs injured in a dog fight, and surgically removing dogs’ ears, including for the purpose of dog fighting. Two dogs she treated died from their fighting injuries. Murph also admitted to supplying a “bait” animal to test the fighting abilities of one of the dogs of a co-defendant. Finally, Murph admitted to traveling to Alabama to receive a dog from a known dog fighter, and to keeping that dog for the purposes of having the dog participate in an animal fighting venture.
Trial Attorney Ethan Eddy and Assistant U.S. Attorney Ryan Love prosecuted the case. The matter was investigated by the U.S. Department of Agriculture, Office of the Inspector General.
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.
- James “Tommy” Peek, 68, of Milton, Florida, was sentenced on Aug. 10, 2020, to serve 15 months in prison. Peek had pleaded guilty to unlawfully conspiring to violate the dog fighting prohibitions of the federal Animal Welfare Act, delivering a dog to co-defendant Shane Sprague for purposes of having the dog participate in an animal fighting venture, and possessing a dog for purposes of having the dog participate in an animal fighting venture.
Cudahy Woman Sentenced to 90 Months in Federal Prison for Attempting to Provide Material Support to ISISRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on August 24, 2020, Waheba Issa Dais (48) of Cudahy, Wisconsin, was sentenced to 90 months in prison and three years of supervised release following her conviction on one count of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court records, Dais provided support to ISIS in 2018 in the form of expert advice and assistance. According to admissions made in connection with her plea, Dais used hacked Facebook accounts in order to support ISIS. Using these accounts, she pledged her allegiance to ISIS on numerous occasions, communicated with and encouraged other ISIS supporters who described their plans to conduct attacks, disseminated information about explosives and biological weapons, and attempted to recruit new members to ISIS’s cause. For example, Dais posted videos providing step-by-step instructions on how to make an explosive belt and TNT, and she provided a detailed recipe for the poison Ricin. Dais also maintained encrypted social-media channels, where she posted messages encouraging ISIS supporters who could not travel to ISIS-controlled lands to conduct terrorist attacks in their home countries. Through those encrypted channels, she also provided detailed information about explosives, guns, attack planning, and target selection.
“Dais not only personally pledged her allegiance to a terrorist organization but took steps designed to help others cause death and destruction around the world,” said United States Attorney Krueger. “I commend the agents, analysts, and attorneys who worked hard to bring Dais to justice.”
“The FBI’s number one priority is fighting terrorism. This case is a clear example of the influence a foreign terrorist organization such as ISIS, can have right here in Wisconsin. The significant sentencing underscores the serious consequences for those who choose to support terrorist groups and their plans to attack our citizens. The FBI’s Joint Terrorism Task Force (JTTF) is dedicated 24/7 to keeping all Americans safe.” said FBI Special Agent in Charge Robert Hughes.
This conviction and sentence is the result of an extensive investigation by the Federal Bureau of Investigation’s Milwaukee Field Office. The case was prosecuted by United States Attorney Matthew D. Krueger, Assistant United States Attorney Rebecca Taibleson, and Trial Attorney Jennifer Burke of the National Security Division.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Crawford County Man Sentenced to 78 Months for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Travis Johnson, 32, Gays Mills, Wisconsin pleaded guilty and was sentenced today by U.S. District Judge James D. Peterson to 78 months in federal prison for possessing methamphetamine with intent to distribute.
On November 10, 2019, a Crawford County Sheriff’s Department deputy saw an SUV being driven erratically in the village of Soldiers Grove, Wisconsin. The SUV eventually stopped on a side street, and the driver got out and walked away, leaving the driver’s side door slightly open. As the deputy pulled up behind the SUV, he saw the driver attempt to hide on a patio of a nearby residence. When the deputy got out of his squad car, the driver left his hiding place and walked towards the deputy. The deputy identified the driver as Travis Johnson, a person who was on extended supervision for drug-related charges.
The deputy searched Johnson’s SUV and found several grams of Psilocybin mushrooms, a digital scale coated in white residue, hypodermic needles, and gem baggies. The deputy then searched the patio where he originally saw Johnson hiding, and found a large plastic bag that contained 162 grams of methamphetamine.
The charge against Johnson was the result of an investigation conducted by the Crawford County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma.
Convicted Felon Pleads Guilty to Possessing Firearms During Civil UnrestRead the Press Release
RICHMOND, Va. – A previously convicted felon pleaded guilty today to a charge related to his possession of an assault rifle, handgun, ballistic vest, and eight magazines of ammunition after leaving the Robert E. Lee Monument during civil unrest on June 12 in Richmond.
“Project Guardian is the Department’s signature anti-gun violence program,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “One of the key cornerstones of Guardian is holding those accountable who have forfeited their Second Amendment rights due to their status as a felon, drug user, or domestic abuser—amongst other prohibitors. This defendant, due to his own previous felonious conduct and conviction, was prohibited from possessing a firearm and ammunition, and chose to openly flout state and federal law by unlawfully possessing multiple firearms and eight magazines of ammunition.”
According to court documents, on June 12, Matthew Lee Frezza, 37, of Chesterfield, possessed an assault rifle and handgun during the course of a traffic stop during civil unrest. The incident started when Richmond Police Department (RPD) officers observed a caravan of three trucks driving recklessly in the vicinity of the Robert E. Lee Monument. Based on this reckless driving, RPD officers executed a traffic stop on one of the pickup trucks at the intersection of Old Mill Road and Boatwright Road in the city of Richmond. Upon approaching the truck, RPD officers observed three occupants inside, with an individual later identified as Frezza in the front passenger seat of the truck. RPD officers further observed all three occupants of the truck armed with firearms, including assault rifles.
“Firearms in the possession of a convicted felon are always a public safety concern, but especially so when multiple weapons are recovered during a potentially volatile situation, such as civil unrest,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “This defendant’s guilty plea confirms that the unlawful possession of a firearm is a serious offense and we are grateful to U.S. Attorney Terwilliger and our law enforcement partners in Richmond for this successful outcome.”
Based on the firearms and the vehicles prior presence at the Robert E. Lee Monument, RPD Officers requested the three occupants step out of the truck. As Frezza exited the truck, RPD officers took an assault rifle from his possession, removed a handgun and two clips from a holster on his thigh, and removed a ballistic vest from his body that contained six rifle magazines with ammunition. On the scene, RPD Officers determined that Frezza was a convicted felon and placed him under arrest. The firearm possessed by Frezza was a Taurus, Model G3, 9mm caliber, semi-automatic pistol. The assault rifle possessed by Frezza was later determined to be a homemade rifle without a serial number, which contained a loaded, high-capacity magazine.
Frezza pleaded guilty to possession of a firearm by a convicted felon, and faces a maximum penalty of 10 years in prison when sentenced on December 10. 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.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-78.
Conspiracy to Traffic Stolen Firearms to Persons from Iowa, Illinois, and South Dakota DisruptedRead the Press Release
From on or about November 25, 2018, and continuing until on or about April 23, 2019, MOSES STRICKLAND, JR., ANTHONY HOLEYFIELD and ANTWON HOLEYFIELD (and others known and unknown to authorities) conspired to steal, receive, possess, conceal, store, barter, sell, and traffic as many as 15 stolen firearms.
Moses Strickland, Jr., age 22, from Decatur, Illinois, was sentenced on August 21, 2020 to over six years in prison after a March 11, 2020, guilty plea to one count of conspiracy to possess stolen firearms, one count of possession of stolen firearms, and one count of possession of a firearm by a prohibited person.
Antwon Holeyfield, age 25, from Sioux City, Iowa, was sentenced on January 24, 2020 to over three years in prison after a August 12, 2019, guilty plea to one count of conspiracy to possess stolen firearms and one count of possession of stolen firearms.
Anthony Holeyfield, age 21, from Sioux City, Iowa, was sentenced on January 31, 2020, to 8 months in prison after a September 23, 2019, guilty plea to one count of conspiracy to possess stolen firearms and one count of possession of stolen firearms.
Evidence presented by the United States at the detention, change of plea, and sentencing hearings in this case revealed, on November 26, 2018, Antwon Holeyfield and Strickland broke into a victim’s Woodbury County, Iowa home using an axe. Once inside the two stole valuables including 15 firearms. After leaving the victim’s residence, Antwon Holeyfield and Strickland went to Anthony
Holeyfield’s residence where Anthony Holeyfield helped them move all of the stolen firearms and other stolen items into his house. Then men worked together over the next several months to sell the stolen firearms. The men conducted deals at Anthony Holeyfield’s home and other places to people who lived in and out of Iowa. Stickland even attempted to sell some to the firearms in Chicago, Illinois before his firearms were interdicted by police. Despite law enforcement’s best efforts a number of the stolen firearms are still unrecovered.
Strickland was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Strickland was sentenced to 72 months’ imprisonment. He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Antwon Holeyfield was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 42 months’ imprisonment. He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Anthony Holeyfield was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 8 months’ imprisonment. He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Strickland is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa and the Chicago, Illinois Police Department, Woodbury County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4027.
Follow us on Twitter @USAO_NDIA.
Colorado Man to Federal Prison for Gun ChargeRead the Press Release
A man who illegally possessed a gun pled guilty and was sentenced August 24, 2020, to more than nine years’ in federal prison.
Robert Anderson, 27, from Denver, Colorado, pled guilty to being a felon in possession of a firearm. Anderson had been previously convicted of three felony crimes in Texas, in 2012, 2015 and 2018, respectively.
Evidence at the detention, change of plea, and sentencing hearing revealed the following. On December 5, 2019, Anderson, who was already a three-time felon, attempted to carjack an innocent victim in front of the Hard Rock Casino and succeeded in robbing the victim at gunpoint. The weapon used was a handgun that was loaded (and designed to use) .410 shotgun shells.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Anderson remains in custody of the United States Marshal until he can be transported to a federal prison. Anderson was sentenced to 112 months’ imprisonment. He must also serve a term of 3 years of supervised release following the imprisonment. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4013. Follow us on Twitter @USAO_NDIA.
Civil Chief Retires After 36 Years of ServiceRead the Press Release
Assistant United States Attorney John Gaupp announced his retirement after more than 36 years of service with the Department of Justice. In 1994, Mr. Gaupp was named as the first Chief of the Civil Division of the United States Attorney’s Office, Middle District of Louisiana, and currently serves in that capacity. In addition to serving as the division chief for more than thirteen years, he has also served as the office’s Senior Litigation Counsel and Ethics Advisor.
Mr. Gaupp has participated in a variety of notable litigation, substantially impacting Baton Rouge and the surrounding area. Early in his career, Mr. Gaupp helped plan and obtained warrants for the contemporaneous seizure by the IRS of property from Adler “Barry” Seal, a major drug smuggler for the notorious Medellin Cartel. He also worked with Government officials in bringing suit under the Sherman Act to break the alleged monopoly on OB/GYN services then held by the Woman’s Hospital Foundation.
In the mid-1990s, Mr. Gaupp actively participated in settlement negotiations in civil rights litigation challenging the formation and continued existence of the Metropolitan Council, which led to the adoption of a redistricting plan. Mr. Gaupp also served as local counsel for the U.S. Department of Justice in all school desegregation cases in this federal district, including the cases in East Baton Rouge, Ascension, and Livingston Parishes.
Mr. Gaupp worked on numerous environmental cases brought by the Department of Justice on behalf of the EPA. Significantly, he played a major part in negotiations with the City of Baton Rouge that led to the Consent Decree addressing the city’s then crumbling sewer system, which ultimately led to the overhauling and redesigning of its sewer system. He also worked in brokering a deal between the U.S. Department of Justice, the City of Baton Rouge, and residents living in close proximity to the north Baton Rouge sewerage treatment plant to relocate residents whose living conditions were drastically effected by the treatment plant. Mr. Gaupp served on the litigation team in the case against Louisiana Generating, LLC (“La Gen”) for asserted Clean Air Act violations at its Big Cajun II plant, resulting in La Gen reducing its emission and funding other environmental mitigation projects. Using the Government’s authority to take property through eminent domain proceedings, Mr. Gaupp acquired the property needed by the Corps of Engineers to build the Lilly Bayou Control Structure, thereby clearing the way to begin construction of the Comite River Diversion Canal.
Beyond litigating cases, Mr. Gaupp is co-drafter of the legislation enacted as the Federal Debt Collections Procedures Act, which provides the legal procedures for the enforced collection of federal debts throughout the country. He has also served as a nationwide mentor for Assistant U.S. Attorneys in the area of bankruptcy law.
Mr. Gaupp said, “I don’t have any definite plans as to how I will spend my retirement. I am sure that I will find multiple causes to throw myself into; but for now – after almost more years on the front lines of federal litigation than I can remember – I’m looking forward to a little ‘rocking chair therapy’ on my back patio with my wife who I adore.”
United States Attorney Brandon J. Fremin stated, “As noted by John’s impressive career as a public servant, he has been an incredible asset not only to this office, but to the Department of Justice, and the many communities we serve in the Middle District. John is an outstanding attorney who would have enjoyed great success in any endeavor he pursued, but he chose to devote his professional life to public service seeking justice and protecting the rights of the United States and its citizens. John’s absence will surely be felt, and I wish him all of the best in retirement.”
Chiropractor Sentenced to Nearly 4 Years in Federal Prison for Scheme that Fraudulently Billed Labor Union Health Plan $4.8 MillionRead the Press Release
LOS ANGELES – A chiropractor was sentenced today to 46 months in federal prison for conspiring to defraud a labor union’s health care benefit plan by offering kickbacks to patients for attending the clinic and by submitting approximately $4.8 million in sham billings.
Mahyar David Yadidi, 38, of West Los Angeles, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $1,976,832 in restitution.
In November 2019, Yadidi pleaded guilty to one count of conspiracy to commit health care fraud.
Yadidi operated Philips San Pedro Chiropractic – formerly known as Synergy Healthcare and Wellness Center – in San Pedro. From July 2016 to October 2018, Yadidi operated a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) health care benefit plan. Yadidi worked with co-conspirators Ivan Semerdjiev, 41, of Irvine, a chiropractor who worked for Yadidi, and Julian Williams, 45, of San Pedro, a personal trainer who also worked for Yadidi.
ILWU-PMA health care plan members were induced by Yadidi to visit his clinic with offers of $50 in cash for each visit, according to a one-count criminal information filed in this case. Yadidi also paid plan members to allow him to bill the plan when members did not visit his clinic.
Yadidi offered monetary incentives to Williams, Semerdjiev, and other employees, as well as to patients, to recruit additional plan members to visit his clinic. Williams induced plan members to visit the clinic by falsely informing them that they could receive personal athletic training services from him that the plan would pay for.
Once plan members either visited Yadidi’s clinic or agreed to allow him to submit claims to the plan for non-existent visits, Yadidi billed and caused his employees to bill the plan for services that were not rendered, services that were not medically necessary, and chiropractic and physical therapy services that were performed by
Williams, who was neither licensed nor otherwise qualified to be performing those services.
At his instruction, Yadidi’s employees falsified records, including sign-in sheets that listed the dates plan members purportedly received services from Philips Chiropractic. Yadidi instructed Semerdjiev to falsify patient files to support the clinic’s fraudulent billing. Yadidi and his co-conspirators also created false entries in the name of plan members’ relatives, knowing that the union’s health care benefit plan allowed them an additional number of covered visits as well.
Yadidi continued to operate his scheme after he was terminated as an authorized provider by the ILWU-PMA plan in August 2017, six months after it conducted an audit of his clinic.
To continue the conspiracy, Yadidi changed the name of his clinic – which previously was called “Synergy” and falsely held out another person as the clinic’s primary owner and operator, when in fact, Yadidi continued to own, operate, and financially benefit from the clinic. Yadidi continued to submit claims to the plan in the sham owner’s name.
During the conspiracy’s duration, Yadidi’s clinic submitted $4,756,284 in fraudulent claims to the ILWU-PMA plan, for which the plan paid $1,976,832.
Williams and Semerdjiev each pleaded guilty to one count of conspiracy to commit health care fraud and were sentenced to six months and one year in federal prison, respectively.
This matter was investigated by the U.S. Department of Labor, Office of Inspector General, and the U.S. Department of Labor, Employee Benefits Security Administration.
This case was prosecuted by Assistant United States Attorney Alexander C.K. Wyman of the Major Frauds Section.
Cayuga County Man Charged with Receipt of Child Pornography and Possession of a Firearm by a FelonRead the Press Release
SYRACUSE, NEW YORK – Richard J. Potter, Jr., age 55, of Springport, New York, was arrested today on charges of receipt of child pornography and possession of a firearm by a convicted felon, announced United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Potter appeared today before United States Magistrate Judge Thérèse Wiley Dancks. A registered sex offender based on a 2003 state felony conviction related to the sexual abuse of a minor, Potter was ordered detained pending the resolution of his case.
The criminal complaint unsealed today alleges that Potter used a computer to receive images and videos of child pornography from the Internet, and stored thousands of digital copies of those images and videos on cellular telephones. In addition, Potter is alleged to be in possession of a 12-gauge shotgun following a previous felony conviction.
If convicted of receipt of child pornography, Potter faces a mandatory minimum sentence of fifteen years and a maximum term of 40 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. The charge of unlawful possession of a firearm by a convicted felon carries a maximum term of imprisonment of ten years, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation’s Mid-State Child Exploitation Task Force, the New York State Police Bureau of Criminal Investigation (BCI) and Computer Crimes Unit (CCU), and the Cayuga County District Attorney’s Office. The case is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
California man sentenced for blackmailRead the Press Release
MISSOULA — A California man who admitted blackmailing an individual for years by threatening to inform on the person if he wasn't paid money was sentenced today to five years of probation, U.S. Attorney Kurt Alme said.
Bryan Gregg Waterfield Nash, 57, of Woodside, CA, pleaded guilty in May to blackmail, a misdemeanor.
U.S. Magistrate Judge Kathleen L. DeSoto presided.
The prosecution said in court documents that the blackmail began in December 2013 and ran until about June 2019 in Whitefish and in northern California. Nash knew the victim, identified as John Doe 1, for many years. Beginning in about December 2013, Nash frequently communicated with John Doe 1 in person and electronically and with his family, friends and colleagues.
Nash demanded money from John Doe 1, accused the victim of committing federal crimes, including tax fraud, and repeatedly asked for financial assistance.
When John Doe 1 stopped responding to Nash, Nash intensified communications with the victim's family, friends, employees and privately-retained lawyers. Many of the messages referenced the victim being investigated by the IRS or FBI, and Nash repeatedly asked to meet with the victim's lawyers to "settle" with the victim. Nash's requests to settle with John Doe 1 were in consideration for not filing a civil complaint against the victim or reporting his alleged crimes to law enforcement.
Assistant U.S. Attorneys Tim Racicot and Ryan Weldon prosecuted the case, which was investigated by the FBI.
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Big Stone Gap Man Sentenced for Role in Methamphetamine ConspiracyRead the Press Release
ABINGDON, Va. – Jeremy Mallory, a Big Stone Gap man who was one of 21 defendants charged with conspiring to distribute 500 grams or more of methamphetamine, was sentenced yesterday in U.S. District Court in Abingdon to 168 months in federal prison, United States Attorney Thomas T. Cullen announced.
Mallory, 42, pleaded guilty in 2019 to conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine.
According to court documents, Mallory was one of the 21 defendants who conspired to distribute methamphetamine in Lee and Wise counties, and elsewhere, between July 1, 2016 and May 1, 2019. To date, all 21 defendants have been convicted via plea agreement or jury trial.
A complete list of the defendants and charges can be found here.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Southwest Virginia Drug Task Force, which is comprised of the Scott County Sheriff’s Office, Lee County Sheriff’s Office, Wise County Sheriff’s Office, Dickenson County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and the Virginia State Police. Assistant United States Attorneys Lena Busscher, Anthony P. Giorno, and Jonathan Jones prosecuted the case for the United States.
Baltimore County Felon Sentenced to 12 Years in Federal Prison for Drug Distribution Charges and Illegal Possession of FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III, today sentenced Deandre Laquan Jones, a/k/a “Cuz,” age 27, of Towson, Maryland, to 12 years in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances, possession with intent to distribute drugs near a school, and to being a felon in possession of firearms and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD).
According to his guilty plea, from December 2018 to February 2019, Jones distributed fentanyl, heroin, and cocaine. On January 31 and again on February 11, 2019, Jones sold an undercover Baltimore County Police officer two “packs” of heroin—each containing 25 gel capsules—for $375.
On February 22, 2019, law enforcement executed a search warrant at an apartment in Parkville, Maryland, which was rented by Tyrell Curry, Jones’ co-conspirator, and was located within 1,000 feet of a Baltimore County elementary school. Jones used the apartment to distribute fentanyl, heroin, crack cocaine, and powder cocaine. From the apartment, law enforcement recovered two baggies containing a total of approximately 345 grams of fentanyl, cutting agents, digital scales, two kilogram presses, and bags of packaging materials. In addition, officers found documents and an identification card belonging to Jones, and two empty .40-caliber extended magazines, from which the BCPD Forensic Services Section recovered a latent print of Jones’ left thumb. In the living room, officers located a coffee table that had been custom-manufactured to contain a hidden compartment secured by a wireless lock. Investigators later learned that the table had been purchased by, and shipped to, Deandre Jones at the Parkville apartment. When the hidden compartment in the table was opened, law enforcement recovered plastic bags containing 16 grams of fentanyl, 175 grams of heroin, 185 grams of crack cocaine, and 173 grams of powder cocaine, as well as a .410-caliber handgun and 19 rounds of .410-caliber ammunition.
That same day, BCPD officers executed a search warrant at Jones’ residence and recovered three iPhones in the bedroom, and an AK-47 loaded with 30 rounds of ammunition in Jones’ nightstand. The firearm had been reported stolen in October 2018. In Jones’ office, officers found a money counter, $13,700 in cash, a one-kilogram block of fentanyl, a loaded 9mm pistol, which had been reported stolen in April 2017, a book bag that contained eight plastic bags containing a total of 1.9 kilograms of cocaine, and five additional bags containing 138 grams of heroin. A search of Jones’ vehicles recovered two additional loaded firearms and a fourth iPhone.
A subsequent forensic examination of Jones’ iPhones recovered message between Jones and Curry relating to drug trafficking, including discussions about the Parkville apartment, potential customers, sources of supply, possible police surveillance, and ammunition.
As part of his plea agreement, Jones has agreed to forfeit assets obtained as a result of, or used to facilitate Jones’ drug trafficking, including: $13,708 in cash; a 2013 Lexus GS 350; an AK-47 and 30 7.62x39mm cartridges; a double-action revolver and 19 .410-caliber cartridges; two 9mm pistols and 26 9mm cartridges; and a .40-caliber pistol and 13 .40-caliber cartridges.
Jones’ co-defendant, Tyrell Daronte Curry, a/k/a “Mike,” age 28, of Baltimore, previously pleaded guilty and was sentenced to 51 months’ imprisonment, to be followed by 4 years of supervised release.
United States Attorney Robert K. Hur commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher J. Romano, who prosecuted the case.
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Armed Hartford Drug Trafficker Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DANNY CASTILLO, 28, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 128 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and other drugs, and possessing a short-barrel shotgun.
According to court documents and statements made in court, in August 2018, the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department received information that Castillo and his associate, Pascual Ivan Medina, were distributing large quantities of fentanyl in and around Hartford. An investigation revealed that Castillo used his family business, the Albany Grocery Store located at 1160 Albany Avenue in Hartford, to conduct narcotics transactions. Between October 2018 and January 2019, investigators made multiple controlled purchases of distribution quantities of fentanyl from Castillo, sometimes with Medina’s assistance, at both the Albany Grocery Store and Castillo’s apartment on Woodland Street in Hartford.
On January 25, 2019, investigators conducting surveillance observed Alexis Velez arrive by car at Castillo’s apartment building, interact with Castillo, enter his apartment, exit the apartment and then drive away from the location. After a Hartford Police cruiser conducted a traffic stop of Velez’s vehicle, a search of Velez’s person revealed quantities of cocaine and crack cocaine, and a search of a bag that Velez was seen carrying as he entered and exited Castillo’s apartment revealed approximately 102 grams of a mixture of fentanyl and heroin, 46 grams of cocaine, 15 grams of crack, two ounces of marijuana, and $4060 in cash.
Castillo was arrested a short time later at his Woodland Street apartment. A search of the residence revealed approximately 436 grams of fentanyl, 229 grams of heroin, 231 grams of a mixture with both fentanyl and heroin, 543 grams of a mixture of tramadol and methamphetamine, numerous items used to process and package narcotics for distribution, a loaded short-barrel shotgun, and a loaded Smith & Wesson .357 revolver. Investigators later recovered a third firearm from Castillo’s residence.
U.S. Attorney Durham noted that the quantity of the fentanyl and heroin seized from Castillo would have produced at least 35,000 dose bags of the drugs.
Castillo has been detained since his arrest. On February 11, 2020, he pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl, and possession of an unregistered short-barrel shotgun.
Medina and Velez pleaded guilty to related charges. On January 23, 2020, Medina was sentenced to 30 months of imprisonment. Velez awaits sentencing.
The Federal Bureau of Investigation’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.