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18 August 2020
Raleigh Man Receives Life Imprisonment for Human TraffickingRead the Press Release
NEW BERN, N.C. – A Raleigh man was sentenced today to life in prison for human trafficking. Brandon Marquis Jennings received his sentence in United States District Court in New Bern.
According to the court documents and evidence presented at the trial in this matter in June of last year, from 2013 until late 2016 Jennings prostituted women and children here in the Eastern District of North Carolina and at other locations around the United States.
Victims told investigators and the trial jury that Jennings would use a number of techniques to get each of them to trust and rely on him and would then convince them to work with him and to commercially prostitute themselves. Once they started, Jennings would use a variety of methods to intimidate them and to ensure they remained “willing” to engage in prostitution. At times he would physically and mentally abuse them, deprive them of food and he would withhold all their money, rendering them helpless and unable to leave.
Jennings was charged with 13 counts related to the prostitution and human trafficking activities: two counts of sex trafficking by force, fraud and coercion; two counts of sex trafficking of a minor; one count involving the manufacture of child pornography; six counts of interstate transportation for purposes of engaging in prostitution (often referred to as violations of the Mann Act); one count involving the use of the internet to promote an unlawful business, namely a prostitution business; and one count of interstate transportation of a minor for illegal sexual activity.
On June 13, 2019, Jennings was convicted of all thirteen counts following a jury trial in United States District Court in New Bern.
Mr. Higdon commented: “Today Brandon Jennings received a sentence he richly deserved. He was convicted of crimes we call human trafficking – that is, exploiting a person for labor, service or commercial sex. But, in reality, Jennings was running a form of modern-day slavery. He exploited some of our most vulnerable citizens, effectively imprisoned them, treated them as less than human and sold them out for sex to line his own pockets. My office and the entire Justice Department are focused on these crimes and we are committed to prosecuting anyone involved and to ridding our communities of this horrendous offense.”
“Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims show why these cases are a top priority for HSI investigation,” said Special Agent in Charge of Homeland Security Investigations Charlotte Ronnie Martinez. “HSI is committed to working with our law enforcement partners to find and prosecute criminal traffickers while ensuring the victims of these terrible crimes are rescued and get the care they need.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Department of Homeland Security – Homeland Security Investigations and the Raleigh Police Department investigated the case, and Assistant U.S. Attorney Erin Blondel prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-CR-318-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Pharmacy Shooter Sentenced to 29 1/2 Years in Federal PrisonRead the Press Release
NASHVILLE, Tenn. – August 17, 2020 – A Nashville man convicted last fall of the robberies and shooting at the Rite-Aid Pharmacy on West End Avenue was sentenced Friday in U.S. District Court to 355 months in federal prison, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Dionte Breedlove, 26, was found guilty by a federal jury in October 2019, after a week-long trial, of robberies affecting interstate commerce and using a firearm during and in relation to crimes of violence. Breedlove was tried for participating in two separate robberies of the pharmacy on September 14, 2017, and again on October 9, 2017, during which he shot an unarmed security guard.
Breedlove, along with Carlos Valcarcel-Arocho, 22, also of Nashville, were both charged in August 2018, after an investigation into the robberies determined that Valcarcel-Arocho, an employee of Rite-Aid, was present during each robbery and participated by texting Breedlove when the time was right for him to enter the store. Valcarcel-Arocho posed as a victim during each robbery and helped stuff cash into a bag after opening the safe and cash registers. The investigation also determined that Breedlove and Valcarcel-Arocho had been acquainted for several years. A search warrant later executed at Valcarcel-Arocho’s apartment uncovered several items connected to the robbery. Valcarcel-Arocho pleaded guilty to charges relating to the October 2017 robbery and is awaiting sentencing.
During the October 2017 robbery, Breedlove pointed a gun at two employees, including Valcarcel-Arocho, and ordered them to put cash into a bag. The unarmed security guard stood nearby with his arms behind his head. Breedlove then shot him in the chest at close range and held the gun to the back of the head of the other employee while threatening him. The security guard underwent emergency surgery and was hospitalized for several weeks, followed by months of rehabilitation. His injuries were life altering and a bullet remains lodged in his spine.
At the time Breedlove committed these crimes, he was a convicted felon who had completed a six-year sentence for robbery less than two years earlier. In that case, Breedlove, who was 18 years old at the time, also shot the person he robbed.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Philip H. Wehby and Sunny A.M. Koshy prosecuted the case.
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Pharmacist Who Tampered with and Stole Infusion Narcotics Sentenced to 51 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARL MANCINI, 43, of Wolcott, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 51 months of imprisonment, followed by three years of supervised release, for tampering with and stealing infusion narcotics while he was employed as a pharmacist for a Connecticut company.
According to court documents and statements made in court, Mancini was employed as a licensed pharmacist by a Connecticut company that prepared home or hospice care intravenous infusions for a variety of medical conditions, including pain management. As part of his duties, Mancini was responsible for formulating infusions of the correct concentration for specific patients pursuant to the orders of their physician. Between approximately January and June 2019, Mancini accessed a secure area of his workplace and took vials of narcotics, including hydromorphone hydrochloride and morphine sulfate pentahydrate, that were intended to be used to formulate infusion for patients. He used a syringe to withdraw the narcotics from the vials and reinjected saline into the vial so that it would appear as if the narcotics were not missing. In order to hide his tampering, Mancini used specialized crimping tools to reseal the vials. He then returned the vials to the secure area at his workplace.
Mancini tampered with dozens of vials through this scheme. Laboratory testing of a sample of vials Mancini tampered with revealed that virtually all of the active drug had been removed and replaced with saline.
During today’s sentencing, Judge Shea heard from family members of several patients who may have received vials that Mancini had tampered with. The infusion drugs the patients received, in order to reduce their pain while in end-of-life care, appeared to be ineffective.
The investigation revealed that, in 2003, Mancini stole drugs from a previous employer, a pharmacy that provided pharmaceutical products to long-term care facilities. He was charged with state offenses, resigned, and received an adjudication under Connecticut’s accelerated rehabilitation provision. In 2007, Mancini wrote prescriptions for himself while working as a clinical pharmacist. He was again arrested on state charges, convicted, and received a one-year suspended sentence and two years of probation.
As part of the resolution of his 2007 conviction, Mancini lost his pharmacist license and agreed never to apply for one again. However, he subsequently reapplied for, and received, his license.
On December 13, 2019, Mancini pleaded guilty to one count of tampering with a consumer product.
Mancini, who is released on a $100,000 bond, is required to report to prison on November 16, 2020.
This matter was investigated by the Food and Drug Administration, Office of Criminal Investigations, the Cromwell Police Department and the Connecticut Department of Consumer Protection, Drug Control Division. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Petal Woman Sentenced to 12 Months for Theft or Receipt of Stolen MailRead the Press Release
Hattiesburg, Miss. – Angelia Dawn Sanford, 36, of Petal, Mississippi, was sentenced today by Senior U. S. District Judge Keith Starrett to serve 12 months in federal prison, followed by three years of supervised release, for theft or receipt of stolen mail matter, announced U.S. Attorney Mike Hurst and Inspector in Charge Chris Cave with the U.S. Postal Service Office of Inspector General Southern Area Field Office. Sanford was also ordered to pay restitution to a victim and a $1,000 fine.
On April 3, 2017, Forrest County Sheriff’s Office investigators were executing a search warrant at the Petal residence of Sanford and co-defendant Booker Tallieferro Hilton. During the search, investigators recovered multiple pieces of mail matter not belonging to Sanford or Booker. The U.S. Postal Inspection Service was contacted and their investigation determined that the mail matter was stolen. Sanford and Booker also confessed to stealing the mail matter found at their residence.
A federal grand jury returned an indictment against Sanford and Hilton on July 24, 2019. Sanford pled guilty on May 12, 2020. Hilton pled guilty on June 17, 2020, and will be sentenced on September 24, 2020 at 11:15 a.m. by Judge Starrett in Hattiesburg. The maximum penalty faced by each defendant for Theft or Receipt of Stolen mail is not more than 5 years in prison and a $250,000 fine.
The case was investigated by the Forrest County Sheriff’s Office and the U. S. Postal Inspection Service. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Passaic County Man Admits Participating in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in a scheme to distribute heroin and fentanyl in Paterson, New Jersey, U.S. Attorney Craig Carpenito announced.
Isaiah Hargrove, 20, of Paterson, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl and knowingly and intentionally distributing fentanyl.
According to documents filed in this case and statements made in court:
Hargrove and his conspirators are members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, the defendant and his conspirators conspired to distribute narcotics, including heroin and fentanyl.
The count of conspiracy to distribute heroin and fentanyl carries a mandatory minimum of five years in prison, maximum penalty of 40 years in prison and a fine of $5 million. The count of distribution of fentanyl carries a maximum of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 21, 2020.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Operators of Global Cryptocurrency Ponzi Scheme and Attorney Charged with Fraud and Money LaunderingRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced the unsealing of an indictment charging PABLO RENATO RODRIGUEZ, GUTEMBERG DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, and JACKIE AGUILAR for their roles in an internationally coordinated fraud and money laundering ring involved in defrauding individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company.
The case has been assigned to U.S. District Judge George B. Daniels. RODRIGUEZ and HUGHES are expected to be presented today before U.S. Magistrate Judge John Early of the Central District of California, MILLAN is expected to be presented today before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina, and AGUILAR is expected to be presented today before U.S. Magistrate Judge Christine A. Nowak of the Eastern District of Texas. DOS SANTOS was arrested in Panama City, Panama, and is pending extradition to the United States.
Acting United States Attorney Audrey Strauss said: “As alleged, the defendants put a modern-day spin on an age-old investment scam, promising extraordinary rates of guaranteed return on phantom investments in cryptocurrencies. Thanks to HSI, the defendants are in custody and facing serious criminal charges.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “Those arrested today have not only been charged with running a multimillion-dollar cryptocurrency investment fraud and money laundering ring, but also for allegedly spending their victim’s money on luxury cars, jewelry, and homes. These alleged fraudsters pulled out all the stops to sell their scheme to their victims with enticing recruitment events, then shamelessly used proceeds of their scheme to recruit additional victims through even more aggressive and lavish marketing pitches. As today’s arrests show, HSI New York’s El Dorado Task Force investigates financial crimes of every type, and will stop those who prey on unsuspecting investors who entrust their hard-earned savings to so-called financial advisors. Those who violate this trust for their personal gain will face consequences for their actions.”
According to the allegations in the Superseding Indictment unsealed today: [1]
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and AGUILAR participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). Beginning in late 2015, AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN and AGUILAR, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and AGUILAR traveled throughout the United States, and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false: no Bitcoin mining or trading on behalf of Victims in fact took place. Instead, RODRIGUEZ, DOS SANTOS, MILLAN, and AGUILAR enriched themselves, and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims.
HUGHES, an attorney licensed to practice law in California, had previously represented RODRIGUEZ and DOS SANTOS in a Securities and Exchange Commission investigation related to another investment scheme known as Vizinova before aiding RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet.
In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In one instance, AGUILAR told one Victim of the AirBit Club Scheme who was complaining about her inability to withdraw AirBit Club returns that she should “bring new blood” into the AirBit Club Scheme in order to receive her returns.
In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the Airbit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).”
RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds. Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme. In total, the defendants laundered at least $20 million in proceeds of the Scheme through these various methods.
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RODRIGUEZ, 37, of Irvine, California, DOS SANTOS, 45, of Panama City, Panama, and MILLAN, 37, of Greensboro, North Carolina, are each charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering. HUGHES, 44, of Newport Beach, California, is charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. AGUILAR, 55, of Plano, Texas, is charged with one count of conspiracy to commit wire fraud.
The wire fraud conspiracy and money laundering conspiracy charges each carry a maximum term of 20 years in prison, and the bank fraud conspiracy charge carries a maximum term of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force, HSI Panama, the HSI Panama City Transnational Criminal Investigative Unit, and HSI New Orleans. Ms. Strauss further thanked the attorneys and investigators at the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Cecilia E. Vogel, and Elizabeth A. Espinosa are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Newark Man Sentenced to 90 Months for Narcotics Trafficking and Weapon Possession OffensesRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 90 months in prison for drug and weapons offenses, U.S. Attorney Craig Carpenito announced.
Terrance Bradley, 28, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing with intent to distribute heroin, cocaine, and a fentanyl analogue; one count of being a prior felon in possession of a firearm and ammunition; and one count of possessing a firearm in furtherance of a drug trafficking crime. Judge Arleo imposed the sentence today.
According to the documents filed in this case and statements made in court:
On Dec. 6, 2018, members of the Newark Police Department were conducting surveillance near a residence on Renner Avenue in Newark, when they observed Bradley engage in a suspected hand-to-hand drug transaction with a buyer. Upon completion of the suspected drug transaction, Bradley re-entered the residence while the buyer walked a short distance away, where law enforcement placed the buyer under arrest and recovered heroin from the buyer.
On Dec. 7, 2018, Newark Police Department executed a search warrant at the residence. During a search of Bradley’s bedroom, law enforcement recovered approximately 3,151 glassine envelopes of heroin and 455 vials of crack cocaine, more than $6,000 in U.S. currency, and a loaded 9mm semi-automatic pistol. Law enforcement also recovered from the residence more than 200 additional rounds of ammunition of varying calibers. Bradley acknowledged that the firearm, ammunition, and narcotics belonged to him.
In addition to the prison term, Judge Arleo sentenced Bradley to three years of supervised release.
U.S. Attorney Carpenito credited members of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s sentencing.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Missouri Surgeon and Kansas Distributor Agree to Plead Guilty to Conspiring to Pay and Receive Kickbacks to Induce Use of Spinal Implants and ObstructionRead the Press Release
BOSTON – A Missouri surgeon and Kansas distributor have been charged and agreed to plead guilty to conspiring to pay and receive kickbacks aimed at inducing the use of spinal implants sold by a medical device company as well as engaging in conduct aimed at obstructing the government’s federal investigation into that the kickback scheme.
Jason Montone, DO, 44, of Lawson, Mo., will plead guilty to one count of conspiracy to violate the Anti-Kickback statute and one count of obstruction. According to the terms of Montone’s plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine and forfeiture of $379,000 – the amount that he received in sham consulting fees from the medical device company.
John Balzer, 42, of Lenexa, Kan., will plead guilty to one count of conspiracy to violate the Anti-Kickback statute and one count of witness tampering. According to the terms of Balzer’s plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, and forfeiture of $1,264,501 – the amount that he received in commissions from the medical device company for products Montone used in his spine surgeries.
Plea hearings have not yet been scheduled by the Court.
“Kickbacks paid to influence physicians are illegal and incompatible with a properly functioning health care system,” said United States Attorney Andrew E. Lelling. “We will take all necessary steps to ensure that patients receive, and the government pays for, health care that is based solely on sound medical judgment, not compromised by kickbacks.”
“These charges serve as a strong reminder that we will not tolerate bribes and corruption within our federal healthcare system, nor will we accept acts of obstruction that attempt to disrupt our pursuit of justice,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Surgeons are entrusted to make decisions for the best interests of their patients, not because of the corrupting influence of kickbacks. We will fervently pursue kickback schemes that seek to undermine our healthcare system no matter how those schemes are disguised.”
“When surgeons participate in a kickback scheme with medical device companies, they trade their commitment to patient care for personal gain. Any efforts to obstruct our investigations only compound that harm,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Sham consulting arrangements undermine the integrity of the medical decision-making process, and this case sends a clear message that these types of financial arrangements will not be tolerated.”
According to the charging documents, between late 2012 and October 2015, Balzer, Montone, and their co-conspirators engaged in a scheme in which the medical device company and its CEO and CFO paid Montone a total of $379,000 pursuant to a sham consulting program that paid Montone $500 to $750 per hour for supposedly performing consulting services. Although the medical device company’s physician-consulting program was purportedly directed at gathering technical feedback about its products from surgeons, the company and its CEO and CFO allegedly used the program, and the kickbacks they paid pursuant to that program, to induce and reward Montone’s decision to use the company’s products.
To accomplish this, the medical device company, among other things, tracked the sales volumes of Montone and other physician-consultants and used that information to determine how much the company would pay Montone, regardless of how much consulting was actually performed. During the conspiracy, Balzer and Montone represented that Montone had spent hundreds of hours evaluating products, discussing industry trends and educating medical residents. In fact, Montone spent only a small fraction of his reported time performing actual consulting activities for the medical device company. In exchange for the consulting payments he received, Montone used over $4.5 million of the company’s products in his surgeries, often in Balzer’s presence or at his prompting, including excessive amounts of certain of the company’s products. During this time, Montone performed numerous surgeries on patients who were Medicare or Medicaid beneficiaries. The medical device company agreed to pay Balzer a 25% commission on all of the medical device company’s products that Montone used in his spine surgeries. Over the period of the time covered by the conspiracy, the company paid Balzer over $1.2 million in commissions for spine products Montone used.
In September 2017, after Montone learned of the government’s investigation into the medical device company, he created false documents purporting to show work he ostensibly performed pursuant to his consulting agreement and later produced those false documents to the government. In December 2018, Montone sat for an interview with government agents and withheld information concerning his conversations with the company’s employees regarding how his consulting fees would be determined; how he came up with the number of alleged consulting hours he had performed; and his conversations with Balzer about violations of the Anti-Kickback Statute.
In February 2019, after Balzer became aware of the government’s investigation he advised Montone to falsely tell the government that Montone had performed legitimate consulting in an amount equal to the hundreds of hours Balzer and Montone had reported and that Montone was “surprised” the company was missing documentation showing Montone’s feedback and consulting work. In fact, Balzer knew that neither representation was true.
The charge of witness tampering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the victims and restitution. The charges of conspiracy to violate the Anti-Kickback Statute and obstruction of a criminal health care fraud investigation each provide for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the victims, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement. Assistant U.S. Attorneys Patrick M. Callahan, Abraham R. George and David J. Derusha of Lelling’s Health Care Fraud Unit and Affirmative Civil Enforcement Unit are prosecuting the cases.
The details contained in the court documents concerning other individuals and entities are allegations only and those individuals and entities are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mission Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury.
Thomasine Noela Charging Bear, age 35, was indicted on August 11, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 17, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 19, 2020, Charging Bear assaulted an individual with a sharp edged instrument with the intent to do bodily harm and the assault resulted in serious bodily injury.
The charges are merely accusations and Charging Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Charging Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Member of Safe Streets Program and Others Face Federal Charges for Distributing HeroinRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed against Ronald Alexander, age 50, Mark Brinkley, age 51, and Thomas Corey Crosby, age 51, all three of Baltimore, charging them with Conspiracy to Distribute Controlled Substances, 21 U.S.C. § 846. The criminal complaint was filed on August 12, 2020 and was unsealed at the initial appearance yesterday. Detention hearings have been scheduled for Crosby on Wednesday August 19, 2020 at 11:30 a.m., and Alexander on Friday August 21, 2020 at 9:30 a.m.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
In 2001, Alexander pleaded guilty in the United States District Court for the District of Maryland to Conspiracy to Distribute and Possess with Intent to Distribute Heroin. Alexander was sentenced to 240 months of incarceration and released from the Bureau of Prisons in or around May 2018.
Law enforcement had obtained judicial authorization to intercept communications to and from cellular telephones used by Alexander from May through July 23, 2020. During the course of the investigation, the DEA also obtained authorization to install and maintain a GPS tracking device on a 2019 Dodge Caravan registered to Alexander. Interceptions of Alexander revealed that he operated a “drug shop” in the vicinity of Spaulding Avenue and Palmer Avenue in Baltimore, Maryland and that Crosby supplied narcotics to Alexander, who then dispersed them to Brinkley, and others.
Over the course of the investigation, law enforcement intercepted Alexander conducting narcotics-related business on multiple occasions. For example, on June 19, 2020, Alexander engaged in a lengthy discussion with another individual about a co-conspirator, complaining that the co-conspirator had been getting too high from drugs recently. Alexander cautioned that the co-conspirator had been pulling out all of his money all at a time and was going to be robbed. As the call continued, Alexander remarked, “I said, be realistic man, you went from selling two to three thousand dollars’ worth of dope to only selling damn near three, four hundred dollars’ worth of dope a day…” Alexander continued, “You’re only selling that much because you keep running around, you sitting there noddin’, you’ll selling dope like you you’ll sell coke, waiting for people to come to you instead getting out promotin.”
Throughout June 2020, Alexander engaged in conversations with Crosby and Binkley about narcotics dealing, as detailed in the criminal complaint. For example, law enforcement intercepted Alexander and Brinkley on June 18, 2020, discussing an upcoming narcotics transaction, which occurred later that day. Alexander also discussed with another individual obtaining firearms, and during that conversation Alexander said that he had two guns, one of which he kept in his house. Alexander has a felony conviction and therefore, prohibited from possessing any firearms.
On July 23, 2020, DEA investigators executed a search warrant at Brinkley’s residence in Baltimore, Maryland. Inside the house, investigators encountered Brinkley, another adult and two children. Agents searched the house and located a safe in the main bedroom, which the other adult unlocked. Inside the safe, investigators found a grocery bag containing a bag with fentanyl weighing approximately 117 grams, a bag with cocaine weighing approximately 271 grams, and a latex glove containing heroin, weighing approximately 128 grams. Agents also located an iPhone in the residence. One agent called a target number belonging to Brinkley, and saw the phone indicate there was an incoming call.
On August 9, 2020, Alexander received a call from Crosby asking to meet that evening. At around 9:05 p.m., Alexander arrived at a BP gas station in Baltimore in his Dodge Caravan. At around 9:09 p.m., a gold Toyota minivan arrived at the gas station. Investigators saw Crosby get out of the gold Toyota minivan and get into Alexander’s vehicle. After a short period of time, Crosby got out of Alexander’s vehicle and then returned to his vehicle. At around 9:12 p.m., Alexander left in his Dodge Caravan. Investigators followed Alexander and conducted a traffic stop of Alexander.. During the stop, investigators searched the vehicle and discovered a plastic bag that contained a white powdery substance in the center console believed to be heroin. During the stop, Alexander stated that he had taken the drugs from a member of the community in furtherance of his work with the Safe Streets program. To preserve the integrity of the investigation, DEA investigators seized the suspected heroin and did not arrest Alexander. Investigators weighed the suspected heroin and it weighed approximately 101 grams.
If convicted, Alexander, Crosby, and Brinkley face a maximum sentence of 20 years in federal prison for the drug conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the DEA, and BPD for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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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 19, 2020, at 10 a.m. regarding law enforcement actions.
Where: Robert C. Byrd United States Courthouse – (will be outside in the front courtyard)
300 Virginia Street East
Charleston, WV 25301When: Wednesday, August 19, 2020 at 10 a.m.
*Note: Please wear masks.
Follow us on Twitter: SDWVNews and USAttyStuart
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Man Charged with Conspiracy to Use Interstate Commerce Facilities in the Commission of Murder-for-Hire, Resulting in DeathRead the Press Release
St. Louis – James Timothy Norman, 41, of Jackson, Mississippi, was charged by a federal complaint on August 11, 2020. He was arrested this morning in Jackson, Mississippi. Norman was charged with conspiracy to use interstate commerce facilities in the commission of a murder-for-hire, resulting in death.
According to the complaint, Norman conspired with Terica Ellis and others to use a facility of interstate commerce, namely, a cellular telephone, to commit a murder-for-hire in exchange for United States currency, in violation of Title 18, United States Code, Section 1958. In 2014, Norman obtained a $450,000 life insurance policy on his 18-year-old nephew, Andre Montgomery, on which Norman was the sole beneficiary. In the days leading up to Montgomery’s murder, Ellis, an exotic dancer residing in Memphis, Tennessee, communicated with Montgomery and informed him that she was planning to be in St. Louis. On March 13, 2016, the day before Montgomery’s murder, Norman flew to St. Louis, Missouri from his home in Los Angeles, California. On March 14, 2016, Ellis and Norman communicated using temporary phones activated that day. Ellis also used the temporary phone to communicate with Montgomery and learn his physical location. Immediately after learning Montgomery’s location, Ellis placed a call to Norman. On March 14, 2016, at approximately 8:02 p.m., Montgomery was killed by gunfire at 3964 Natural Bridge Avenue in the City of St. Louis. Ellis’s phone location information places her in the vicinity of the murder at time of the homicide. Immediately following Montgomery’s murder, Ellis placed a call to Norman, and then began travelling to Memphis, Tennessee. In the days after the murder, Ellis deposited over $9,000 in cash into various bank accounts. On March 21, 2016, Norman contacted the life insurance company in an attempt to collect on the life insurance policy he had obtained on his nephew.
Terica Ellis was also charged by complaint with conspiracy to use interstate commerce facilities in the commission of murder-for-hire, resulting in death.
United States Attorney Jeff Jensen credited the St. Louis Metropolitan Police Department and the FBI. Jensen stated, “The St. Louis Metropolitan Police Department Homicide Section and FBI have established a dedicated and effective partnership in this extensive investigation.”
The arrests are part of Operation LeGend which is a federal partnership with local law enforcement to address the increase in homicides and violent crime in St. Louis in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the Department of Homeland Security, FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
The St. Louis Metropolitan Police Department Homicide Section and Federal Bureau of Investigation are investigating these current charges.
A criminal complaint is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
Machesney Park Man Sentenced to 12 Years in Federal Prison for Robbing a Bank and Convenience StoreRead the Press Release
ROCKFORD — A Machesney Park man was sentenced Monday by U.S. District Judge John J. Tharp, Jr., to a total of 12 years in federal prison for armed robbery, robbery, and using and carrying a firearm during a crime of violence.
DAVID M. BANEY, 35, pleaded guilty on Jan. 6, 2020, to the robbery of Chase Bank, 7997 N. Alpine Rd. in Loves Park, and the robbery of Kelley’s Market/Mobil Gas Station, 8200 N. Second St. in Machesney Park, on Jan. 11, 2018. Baney was also ordered to pay restitution totaling $24,732.80.
According to a written plea agreement, Baney admitted that on Jan. 11, 2018, he walked into the Chase Bank wearing a mask. Baney approached a teller who was behind the teller stations and demanded money from two tellers. During the robbery, Baney carried a gun and pointed it at a bank employee and a bank customer. Baney obtained $24,402 from Chase Bank during the robbery.
Baney also admitted that on the same day he possessed an object that appeared to be a firearm when he entered the Kelley’s Market/Mobil Gas Station and ordered the employee to give him cash. The employee turned over cash, and Baney left the store with the money.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Gary Caruana, Winnebago County Sheriff; Dan O’Shea, Chief of the Rockford Police Department; and Chuck Lynde, Chief of the Loves Park Police Department. The government was represented by Assistant U.S. Attorney Michael D. Love.
The investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, consisting of law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department, and Freeport Police Department. Officers from the Loves Park Police Department and the Winnebago County Sheriff’s Department participated in the investigation.
Labelle Felon Who Sold Firearm to ATF Agent Sentenced to More Than Six Years in PrisonRead the Press Release
Fort Myers – U.S. District Judge Sheri Polster Chappell today sentenced Alton Jackson (26, Labelle) to six years and three months in federal prison for possessing a firearm as a convicted felon. The court sentenced Jackson to a term of imprisonment above his federal sentencing guidelines range, citing his numerous encounters with law enforcement dating back to age 14 and his recidivism risk.
Jackson had pleaded guilty on May 8, 2020.
According to court documents, in January 2019, Jackson sold an AR-15 style rifle to an undercover ATF agent at a motel in Fort Myers. Following a months-long search, Jackson was arrested in North Carolina by the United States Marshals Service and transported to the Middle District of Florida.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Justice Department Files Lawsuit Against Tampa, Florida, Towing Company for Unlawfully Selling Car Belonging to Deployed ServicememberRead the Press Release
The Justice Department today filed a lawsuit in the Middle District of Florida alleging that Target Recovery Towing Inc. and Target Recovery & Transport Inc. (together “Target”) violated the Servicemembers Civil Relief Act (SCRA), by failing to obtain a court order before auctioning off a car belonging to a U.S. Marine Corps Sergeant who was deployed overseas.
The SCRA, which provides a wide variety of financial and housing protections to members of the military, prohibits towing companies from auctioning off servicemembers’ vehicles without a court order.
The law places the burden on towing companies and other lienholders to determine whether the property in their possession belongs to a servicemember. The complaint alleges that several facts should have put Target on notice that the owner of the vehicle was a servicemember, including that the Marine Corps Sergeant’s car had at least one military decal, military documents were in the car, her address of record was at a U.S. Marine Corps Base, and she obtained her vehicle loan through Navy Federal Credit Union.
“Imagine returning home after honorably serving your country only to find that your sole means of transportation and its contents are gone and lost to you forever as a result of a towing company’s callous disregard of the law,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The Justice Department is committed to protecting the rights of the men and women in our Armed Forces, and putting a stop to these unlawful business practices.”
“The law is clear and unequivocal,” said Maria Chapa Lopez, U.S. Attorney for the Middle District of Florida. “We owe it to all military servicemembers to vigorously protect their rights while they are deployed protecting our rights and our freedom.”
In addition to seeking damages for the servicemember, including the value of the auctioned vehicle and its contents, the Justice Department is seeking to enjoin Target from illegally auctioning off servicemembers’ vehicles in the future in violation of the SCRA. The lawsuit also seeks civil penalties against the defendants.
This lawsuit resulted from a referral to the Justice Department from the United States Marine Corps. Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Justice Department Files Lawsuit Against Father & Son Moving & Storage in Billerica, Massachusetts, for Unlawfully Auctioning Off Belongings of Deployed ServicememberRead the Press Release
The Justice Department today filed a lawsuit in the District of Massachusetts alleging that PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage (Father & Son), violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the entire contents of a U.S. Air Force Technical Sergeant’s two storage units while he was deployed overseas.
The SCRA, which provides a wide variety of financial and housing protections to members of the military, prohibits storage companies from auctioning off servicemembers’ belongings without a court order. The lawsuit further alleges that among the Technical Sergeant’s possessions sold by Father & Son were military gear and mementos that had belonged to a cousin who was killed in military action, his grandfather’s military service medals, a dresser that was handmade by his great-grandfather, and personal photographs.
“Congress enacted the Servicemembers Civil Relief Act to protect the patriots who protect all of us by serving in our nation’s armed forces. The Servicemembers Civil Relief Act outlawed the kind of conduct alleged here, and for good reason. No individual or organization should be able to get away with the kind of devastation this young man suffered when he returned home from an overseas deployment and learned that many of his most valued family mementos were gone. The law protects servicemembers from losing their property, including items of great sentimental value, because of their service,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “The Department of Justice is filing this lawsuit today to ensure that this servicemember receives just compensation and to prevent this from happening to another member of our military. We must and will put an end to these unlawful business practices.”
“This servicemember was called overseas to serve our country and returned home to find his personal possessions, family heirlooms and military awards auctioned off to the highest bidder,” said U.S. Attorney Andrew E. Lelling. “That is unacceptable. We will continue to protect the rights of servicemembers who dedicate their lives to preserving our security and freedom.”
The law places the burden on moving and storage companies and other lienholders to determine whether the property in their possession belongs to a servicemember. The complaint alleges that several facts should have put Father & Son on notice that the Technical Sergeant was a servicemember, including that he told an agent of Father & Son that he was in the military. The complaint also alleges that Father & Son picked up and packed the Technical Sergeant’s belongings at Hanscom Air Force Base while he was present and wearing his U.S. Air Force uniform. The lawsuit asserts that Father & Son sent correspondence to the Technical Sergeant at his previous address of record at Hanscom Air Force Base while he was stationed overseas.
In addition to seeking damages for the servicemember, including the value of the auctioned items, the Justice Department is seeking to enjoin Father & Son from illegally auctioning off servicemembers’ possessions in the future in violation of the SCRA. The lawsuit also seeks a civil penalty.
This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Justice Department Files Lawsuit Against Father & Son Moving & Storage for Unlawfully Auctioning off Belongings of Deployed ServicememberRead the Press Release
BOSTON – The Justice Department filed a lawsuit today alleging that PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage, violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the entire contents of a U.S. Air Force Technical Sergeant’s storage units while he was deployed overseas.
The SCRA, which provides a wide variety of financial and housing protections to members of the military, prohibits storage companies from auctioning off servicemembers’ belongings without a court order. The lawsuit alleges that included among the Technical Sergeant’s possessions sold by Father & Son were military gear and mementos that had belonged to a cousin who was killed in military action, his grandfather’s military service medals, a dresser that was handmade by his great-grandfather and personal photographs.
The SCRA places the burden on moving and storage companies to determine whether the property in their possession belongs to a servicemember. The complaint alleges that several facts should have put Father & Son on notice that the Technical Sergeant was a servicemember, including that he told an agent of Father & Son that he was in the military. According to court documents, Father & Son picked up and packed the Technical Sergeant’s belongings at Hanscom Air Force Base while he was present and wearing his U.S. Air Force uniform. The lawsuit asserts that Father & Son sent correspondence to the Technical Sergeant at his previous address of record at Hanscom Air Force Base while he was stationed overseas.
“This servicemember was called overseas to serve our country and returned home to find his personal possessions, family heirlooms and military awards auctioned off to the highest bidder,” said Untied States Attorney Andrew E. Lelling. “That is unacceptable. We will continue to protect the rights of servicemembers who dedicate their lives to preserving our security and freedom.”
“Congress enacted the Servicemembers Civil Relief Act to protect the patriots who protect all of us by serving in our nation’s armed forces. The Servicemembers Civil Relief Act outlawed the kind of conduct alleged here, and for good reason. No individual or organization should be able to get away with the kind of devastation this young man suffered when he returned home from an overseas deployment and learned that many of his most valued family mementos were gone. The law protects servicemembers from losing their property, including items of great sentimental value, because of their service,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “The Department of Justice is filing this lawsuit today to ensure that this servicemember receives just compensation and to prevent this from happening to another member of our military. We must and will put an end to these unlawful business practices.”
In addition to seeking damages for the servicemember, including the value of the auctioned items, the Justice Department is seeking to enjoin Father & Son from illegally auctioning off servicemembers’ possessions in the future in violation of the SCRA. The lawsuit also seeks a civil penalty. This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office.
The Department’s enforcement of the SCRA is conducted by U.S. Attorney’s Offices and the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the Department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
This matter is being handled by Assistant United States Attorney Torey B. Cummings of Lelling’s Civil Rights Unit and Trial Attorney Tanya Kirwan of the Civil Rights Division’s Housing and Civil Enforcement Section.
Jamestown Woman Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Brandi M. Whitford, 24, of Jamestown, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. to maintaining a drug-involved premises. The charge carries a maximum penalty of 20 years in prison, and a $500,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between September 2019 and October 23, 2019, the defendant and co-defendant Richard E. Kinsey Jr. used a residence on Newland Avenue in Jamestown, to manufacture, distribute, and use methamphetamine. On September 6, 2019, investigators executed a New York State search warrant at the residence, recovering three firearms. A fourth firearm was thrown from the residence during the execution of the search warrant. Investigators also recovered methamphetamine throughout the residence, approximately $12,045 in US currency, assorted ammunition, and drug paraphernalia, including scales and packaging material.
Charges remain pending against defendant Kinsey. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The plea 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; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; and the Jamestown Metro Drug Task Force, under the direction of Acting Jamestown Police Chief Timothy Jackson.
Sentencing will be scheduled at a later date.
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Jamaican Man Sentenced to More Than Five Years in Federal Prison for Lottery SchemeRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Darryl Cleon Forbes (27, Jamaica) to five year and six months in federal prison for conspiracy to commit wire fraud. The court also ordered Forbes to forfeit $2.4 million, and pay $1,122,957 in restitution.
Forbes had pleaded guilty on November 18, 2019.
According to court documents, from early 2015 until December 2017, Forbes and others operated a fraudulent sweepstakes scheme in Jamaica, the Middle District of Florida, and elsewhere. Forbes and his co-conspirators, posing as government officials from the Federal Bureau of Investigation or the Department of Treasury, falsely informed victims in the United States that they had won a prize in a sweepstakes and had to send money via wire transfers or other methods to pay various fees and taxes necessary to retrieve their prize. Forbes and his co-conspirators often targeted victims who were elderly and more susceptible to fraud. After Forbes and his co-conspirators had successfully induced a victim to send money, they telephoned the victim again, repeatedly, to “reload” him or her, making further false and fraudulent misrepresentations in an effort to induce the victim to send more money. The conspirators would often tell the victims that they had to send additional fees and taxes to ensure the safe delivery of the prize. This practice would continue as long as the victim continued to send money. No victim of the conspiracy ever received a promised prize. Forbes and his co-conspirators kept all of the funds for their own personal benefit.
Forbes and his co-conspirators also recruited residents in the United States to open bank accounts to deposit and transfer the fraudulently obtained funds. To facilitate the scheme, Forbes and his co-conspirators obtained personal identifying information of victims and then transferred, or directed others to transfer, victim funds to co-conspirators in Jamaica and elsewhere for the purpose of making ATM withdrawals.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Jay Taylor and Ashley Washington.
Hattiesburg Man Sentenced to over 4 Years in Prison Under Project EJECT for Violent Robbery of BusinessRead the Press Release
Hattiesburg, Miss. – D’Andre Garry, 23, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 50 months in prison, followed by three years of supervised release, for committing Hobbs Act Robbery, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Garry was also ordered to pay a $3,250 fine.
On March 31, 2019, Garry and a criminal associate robbed a Family Dollar store located in Hattiesburg, Mississippi. As Garry’s associate held the cashier at gunpoint, Garry emptied the cash register. The robbery was captured by store surveillance and Garry was quickly apprehended by Hattiesburg Police Department officers.
Garry was indicted for this offense on September 25, 2019. He pled guilty before Judge Starrett on January 9, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case was being prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Gregg County Man Sentenced for East Texas Drug Trafficking CrimesRead the Press Release
TYLER, Texas – A 44-year-old Longview, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Correy James Rider was found guilty by a jury on Nov. 6, 2019, of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and crack cocaine. Rider was sentenced to 360 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, in 2017, law enforcement began an investigation into drug trafficking activities in Longview, Texas. During the investigation, police obtained an undercover recording of Rider participating in the sale of methamphetamine and a firearm at a Longview motel. In January 2018, Rider and a co-defendant were arrested at a different motel in possession of methamphetamine, cocaine base, surveillance equipment, digital scales, and other distribution paraphernalia. Further investigation revealed that Rider and his co-conspirators used various motels and residences throughout the city to conduct illegal drug transactions. Rider and 11 others were indicted by a federal grand jury on June 21, 2018, and charged with violations of federal law.
The case was investigated by the Federal Bureau of Investigation – Dallas Division, Longview Police Department, Gregg County Organized Drug Enforcement (CODE) Unit and Texas Department of Public Safety and prosecuted by Assistant U.S. Attorneys Lucas Machicek and Ryan Locker.
Gary Man Pleads Guilty to Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
HAMMOND- Varnell Dixon, 24, of Gary, Indiana, pled guilty to possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
In the plea agreement, the parties agreed that the Court should impose the statutory mandatory minimum five year term of imprisonment.
In the plea agreement, Dixon admitted that on December 28, 2019, he was driving a rented vehicle speeding eastbound on Interstate 80/94. At the time, he possessed a fully loaded Glock nine millimeter firearm, four bags of marijuana, some of which he intended to distribute, and $323.00 in small bills. Upon being pursued by the Indiana State Police, Dixon attempted to elude the police at a high rate of speed and ultimately exited onto the Cline Avenue ramp. Dixon lost control of the vehicle, causing it to leave the roadway and roll over several times. Dixon was thrown from the vehicle and arrested by police.
“There have been several high speed pursuits in the recent months that have garnered media attention in Northwest Indiana,” said United States Attorney Thomas L. Kirsch. “Some of these chases have occurred solely within Indiana and some have crossed state lines. This type of criminal activity – fleeing police and putting many lives at risk while doing so – is entirely intolerable. I have instructed federal law enforcement and my office to charge these type of cases federally, whenever possible, and to seek appropriate sentences for these criminals. We are fortunate in Northwest Indiana to have so many outstanding law enforcement officers and departments. Although many separate municipalities, they all work together for one purpose, to keep crime down in Northern Indiana. We will do everything we can to deter this criminal conduct.”
This case is the result of the investigative efforts of the Federal Bureau of Investigation Gang Response Investigative Team and the Indiana State Police. This case is being prosecuted by Assistant U.S. Attorney Joseph A. Cooley.
Fugitive Bethlehem Drug Dealer Arrested at Miami International AirportRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Timothy Stanley Wilkins, 41, of Bethlehem, PA was arrested last night in Miami, Florida. Wilkins was a fugitive from justice on federal drug trafficking and firearms offenses. After being charged, Wilkins fled the country and was apprehended by federal agents at Miami International Airport, while attempting to re-enter the United States.
On March 11, 2020, Wilkins was charged in a three-count Indictment with possession with intent to distribute fentanyl and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. He is scheduled to have his initial appearance today in the Southern District of Florida and then will be extradited to the Eastern District of Pennsylvania.
“As alleged in the Indictment, charging him with firearms and drug offenses, Wilkins has a brazen disrespect for the law,” said U.S. Attorney McSwain. “In response to the charges, he fled the country, but all that did was postpone the inevitable. If you are charged in the Eastern District of Pennsylvania with a federal offense, there is no place to hide, here or abroad. We will not rest until we find you and hold you accountable.”
“I would like to take an opportunity to recognize the cooperation among our law enforcement agencies responsible for getting a dangerous drug dealer off the streets,” said Northampton County District Attorney Terence P. Houck. “It is important for people to know that together, we will investigate, arrest and convict these law breakers by exhausting all federal and state efforts in the pursuit of this cause.”
“Timothy Wilkins fled to evade prosecution on state charges brought against him,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Now he’s in the federal system, indicted on these drug and gun charges and safely in custody. The FBI and our partners at the Bethlehem Police Department will continue to work together to protect our community from those engaged in illegal and dangerous activity.”
If convicted, the defendant faces a maximum possible sentence of life imprisonment, a mandatory minimum 15 years imprisonment, 8 years supervised release, a $1,500,000 fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the City of Bethlehem Police Department, and the Northampton County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four found in Northern Ohio indicted for illegal reentry into U.S.Read the Press Release
A federal grand jury sitting in Cleveland has indicted four individuals in the Northern Ohio area on charges of illegal reentry. These are separate cases and are not related.
Ervin David Carias Raudales, aka Carlos Jose Heraso, age 38, a citizen of Honduras, was indicted on one charge of illegal reentry into the United States after having been previously removed. Carias Raudales, who has been removed four times prior (the last time was on or about July 27, 2019), was found in Ashtabula, Ohio. The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Andrea Isabella.
Samuel Hernandez-Hernandez, age 22, a citizen of Guatemala, was indicted on one charge of illegal reentry into the United States after having been previously removed. Hernandez-Hernandez, last removed on or about February 12, 2019, was found in Columbiana County, Ohio. The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Vanessa V. Healy.
Fabian Chavez-Canales, age 32, a citizen of Mexico, was indicted on one charge of illegal reentry into the United States after having been previously removed. Chavez-Canales, last removed on May 17, 2016, was found in North Royalton, Ohio. The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Bryson Gillard.
Rene Cabrera-Ramos, age 42, a citizen of El Salvador, was indicted on one charge of illegal reentry into the United States after having been previously removed. Cabrera-Ramos, last removed on March 11, 2011, was found in Cleveland, Ohio. The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Bryson Gillard.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
Fort Thompson Man Sentenced to 102 Months in Federal Prison for Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man was sentenced in Pierre federal court on August 17, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Devon Wayne Saul, age 27, was sentenced to 102 months in federal prison, to be followed by 5 years of supervised release. Saul was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, on August 18, 2019, Saul knowingly engaged in a sexual act with a victim while the victim was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating her unwillingness to engage in the sexual act, and Saul knew the victim was incapacitated. In early morning hours of August 18, the victim was drinking with friends. The victim drank too much and became incapacitated. Saul and one other person carried the victim to his vehicle and placed her inside the vehicle. After placing the victim in his vehicle, Saul left the others and was alone with the victim when he perpetrated the sexual assault inside his vehicle.
The investigation was conducted by the Federal Bureau of Investigation and the Crow Creek Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Saul was remanded to custody to serve his sentence.
Former Montgomery High School Assistant Principal Pleads Guilty to Federal Fraud ChargeRead the Press Release
Montgomery, Alabama – On Monday, August 17, 2020, Walter James, III, a 49-year-old from Montgomery, Alabama, and former Montgomery Public Schools employee, pleaded guilty to wire fraud, announced United States Attorney Louis V. Franklin, Sr., FBI Special Agent in Charge James Jewell, and Alabama Attorney General Steve Marshall.
According to court documents, while he was employed by the Montgomery Public Schools (MPS) system, James held himself out to be the owner of a consulting company, "ED-ONE Professional Development Services." He then collaborated with others at his high school and the MPS central office to submit fraudulent invoices for consulting or professional development services. The invoices listed vague descriptions of the types of services that the vendor supposedly rendered. For example, the invoices would include descriptions such as “books & materials,” “consulting,” or “three-day workshop.” However, James did not provide any professional development services or products of any kind to MPS, nor did any of the purported consulting companies on the corresponding invoices that James submitted for payment. As a result of this scheme, the submission of false invoices from August 2016 to April 2019 gave rise to a loss of more than $250,000.00 to MPS.
James was charged with wire fraud on March 3, 2020. His sentencing hearing will be scheduled in the next few months and he is facing up to 20 years in prison and a significant fine. He will also be subject to an order of restitution for the stolen money.
The Federal Bureau of Investigation (FBI), the Alabama Attorney General’s Office, the Alabama Ethics Commission, and the Alabama Department of Examiners of Public Accounts investigated this case. Assistant United States Attorneys Thomas Govan and Jonathan Ross are prosecuting the case.
Former Fort Polk Soldier Sentenced to Life in Prison for Sexually Abusing a MinorRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Ronald W. Allen, Jr., 41, was sentenced by United States District Judge Jay C. Zainey to spend life in prison for sexual abuse of a minor. Allen was also ordered to pay restitution in the amount of $72,000.
After a two-day trial in August 2019, a federal jury handed down a guilty verdict on all counts against Ronald W. Allen, Jr., a former Fort Polk Army Soldier, for sexually abusing a minor under the age of 12 years old.
According to evidence presented during trial, from April 2012 until June 2016 the defendant sexually abused the minor on numerous occasions on the Fort Polk Military Base, where the defendant lived. The abuse was exposed when the minor gave details to an individual at a school she was attending in a community near Fort Polk. Local police were later notified, the victim was interviewed, and a warrant was executed on the defendant’s residence. Agents obtained DNA evidence from where abuse occurred and matched it to the defendant’s DNA.
“This sentence sends a clear message that those who abuse children will be brought to justice. These crimes are particularly heinous because children put their trust in adults and especially those who serve in the United States Military. This office will make it a priority to continue to prosecute these difficult cases to help provide safer communities for all of our children,” said Acting U.S. Attorney Van Hook.
The FBI, U.S. Army Criminal Investigation Command, and the Vernon Parish Sheriff’s Department conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Daniel J. Vermaelen prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Firearms thief sentenced to prison for pawning dozens of stolen gunsRead the Press Release
BRUNSWICK, GA: A Glynn County woman will spend nearly five years in federal prison for stealing and selling dozens of firearms.
Elaina Carter, 38, of Brunswick, was sentenced to 57 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Possession of Stolen Firearms, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Carter also will be required to serve three years of supervised release after completion of her prison sentence. There is no parole in the federal system.
“Elaina Carter could be the poster child for demonstrating that theft is the typical route for firearms making it into the hands of criminals,” said U.S. Attorney Christine. “It’s fortunate that she sold these stolen guns to licensed dealers, and that vigilant law enforcement officers brought an end to her serial thefts.”
According to court documents and testimony, Carter stole and pawned numerous items from June 2018 to January 2019, including 37 firearms. She has previous convictions on state charges in Glynn County for burglary, theft by receiving, and theft by deception.
“The Bureau of Alcohol, Tobacco, Firearms and Explosives will continue to dedicate federal resources to eradicate criminal activities in communities we serve,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF.
The case was investigated by the ATF and the Glynn County Police Department, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Federal Indictment Charges Two Men with Sex TraffickingRead the Press Release
CHICAGO — Two men have been indicted on federal sex trafficking charges for allegedly recruiting three victims, including a child, to engage in commercial sex acts by means of force, threats of force, fraud, and coercion.
KENDALL GUYTON, 25, of Joliet, and GREGORY INGRAM, 41, of Richton Park, are charged with conspiring to traffic three victims for the purposes of commercial sex, according to an indictment returned in U.S. District Court in Chicago. One of the victims was under 18 years old when Guyton and Ingram enticed her to engage in a commercial sex act for the defendants’ financial benefit, the indictment states. The alleged trafficking occurred in 2017 and 2018.
Both defendants are currently in law enforcement custody. Ingram has pleaded not guilty and is scheduled to appear for a detention hearing on Aug. 25, 2020, before U.S. District Judge Sara L. Ellis. Guyton is being held in state custody on an unrelated charge. His arraignment on the federal charge has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Carol Stream Police Department, Lisle Police Department, Will County Sheriff’s Office, Joliet Police Department, and Richton Park Police Department. The government is represented by Assistant U.S. Attorneys Abigail Peluso and Christine M. O’Neill.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges in the indictment are punishable by a maximum sentence of life in prison, while a mandatory minimum of 15 years in prison could also be applicable. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Eight Men Arrested in Sex Trafficking OperationRead the Press Release
United States Attorney Ron Parsons announced that the South Dakota Division of Criminal Investigation (DCI), South Dakota Internet Crimes Against Children Task Force, and the U.S. Homeland Security Investigations (HSI) conducted a joint sex trafficking operation during the 2020 Sturgis Motorcycle Rally. The operation began on August 7, 2020, and continued through August 13, 2020.
As a result, the following eight men were arrested:
Robert Lee Goodwill, Jr., 20, Rapid City, SD - Attempted Commercial Sex Trafficking of a Minor
Cody Wayne Hopkins, 29, Montgomery, PA - Attempted Enticement of a Minor Using the Internet
Michael Ray Hudson, 32, Rapid City, SD - Attempted Enticement of a Minor Using the Internet
Travis John McDonald, 28, Rapid City, SD - Attempted Enticement of a Minor Using the Internet
William Nicholas Riley, 60, Sturgis, SD - Attempted Enticement of a Minor Using the Internet
Kevin William Clements, 22, Claysville, PA - Attempted Commercial Sex Trafficking of a Minor
Darren Wilber Harrison, 25, Rapid City, SD - Attempted Enticement of a Minor Using the Internet
Christopher Covey Dale Truax, 33, Rapid City, SD - Attempted Enticement of a Minor Using the Internet
The mandatory minimum penalty upon conviction for Attempted Commercial Sex Trafficking of a Minor is 15 years if victim is under 14 years of age, and 10 years if between 14-17 years of age, up to life in federal prison; a $250,000 fine; any term of years, not less than 5, up to lifetime supervised release; $100 to the Federal Crime Victims Fund; and a $5,000 assessment if not indigent. Restitution may also be ordered.
The mandatory minimum penalty upon conviction for Attempted Enticement of a Minor Using the Internet is 10 years up to life in federal prison; any term of years, not less than 5, up to lifetime supervised release; $100 to the Federal Crime Victims Fund; and a $5,000 assessment if not indigent. Restitution may also be ordered.
The charges are merely accusations and all eight defendants are presumed innocent until and unless proven guilty.
The Agencies involved in the operation were DCI, HSI, the U.S. Attorney’s Office, Rapid City Police Department, and the Pennington County Sheriff’s Office.
The cases are being federally prosecuted by Assistant U.S. Attorney Sarah B. Collins.
The U.S. Attorney’s Office would like to extend its appreciation to all law enforcement partners involved in the investigations for their efforts and continued cooperation.
Eagle Butte Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on August 17, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Jocelyn Chasing Hawk, a/k/a Jocelyn Bear Eagle, age 39, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Chasing Hawk was indicted by a federal grand jury on January 23, 2019. A three-count Superseding Indictment was filed on June 1, 2019. She pled guilty on June 4, 2020.
The conviction stemmed from a conspiracy beginning in 2017 and continuing through 2019, wherein Chasing Hawk, knowingly and intentionally, conspired with others to distribute 500 grams or more of methamphetamine on the Cheyenne River Sioux Indian Reservation, and in Rapid City, South Dakota.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, the South Dakota Highway Patrol, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Chasing Hawk was immediately remanded to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender and Assault by Strangulation and Suffocation.
Dustin Marrowbone, a/k/a Dustin Condon, age 30, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 14, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 12, May 26, and June 14, 2020, in Dewey County, South Dakota, Marrowbone unlawfully assaulted his intimate partner by strangulation and suffocation after having been previously convicted on at least two previous occasions of assaulting a spouse or intimate partner.
The charges are merely accusations and Marrowbone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Marrowbone was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Danville Pharmacy Technician Sentenced for Federal Drug ChargeRead the Press Release
DANVILLE, Virginia – Paulette G Toller, a former pharmacy technician working in Danville, was sentenced in U.S. District Court in Danville to 13 months in federal prison for illegal distribution of a controlled substance. United States Attorney Thomas T. Cullen and Jesse Fong, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field Division made the announcement.
Toller, 60, pleaded guilty in February 2020 to possessing with the intent to distribute and distributing a controlled substance, acquiring, and obtaining possession of a controlled substance by misrepresentation, fraud, forgery or deception.
According to court documents, Toller, who worked as a pharmacy technician at Sovah Health Danville since 2001, admitted to finding a “loophole” in the hospital’s automated dispensing system that allowed her to withdraw controlled substances under codes that were no longer valid. Toller admitted to obtaining the substances, which included hydrocodone, oxycodone, and other controlled substances, for her own personal use.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, and the Danville Police Department. Assistant United States Attorneys Michael Baudinet and Randy Ramseyer prosecuted the case for the United States.
Cuban National Pleads Guilty to Conspiracy to Cultivate More Than 100 Marijuana PlantsRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that El Paso County resident Jose Carlos Garcia-Montero, age 34, a Cuban national and lawful permanent resident, pleaded guilty to conspiracy to cultivate more than 100 marijuana plants. The Denver Division of the DEA joined in today’s announcement.
Garcia-Montero was part of an organization that would purchase or rent residential properties in Colorado, establish marijuana grows, and help others with harvesting and preparing marijuana. Once cultivated, Garcia-Montero and others would then coordinate distribution of the processed marijuana to out of state buyers.
On March 1, 2017, law enforcement stopped Garcia-Montero’s vehicle in Missouri, finding $176,600 in the vehicle’s spare tire. It was then determined that the currency was proceeds from the sale of marijuana obtained through this conspiracy.
Following the car stop, in March and May of 2017, DEA agents executed search warrants at properties where Garcia-Montero was assisting, financially and physically, in cultivating marijuana grows for the eventual sale of processed marijuana. The searches include:
- On May 23, 2017, agents executed a search warrant in Yoder, Colorado. Agents found 171 marijuana plants.
- On March 3, 2017, agents executed a search warrant in Peyton, Colorado. Agents found 76 marijuana plants and 38 kilograms processed marijuana.
The guilty plea was entered before U.S. District Court Judge Raymond P. Moore on August 13, 2020. Garcia-Montero is one of seven individuals who have been charged with this conspiracy, and is the fifth to plead guilty. He was charged by indictment on May 23, 2019 and is scheduled to be sentenced on October 30, 2020. This case was investigated by the Colorado Springs Resident Agency 0f the Denver Division of the DEA. Local law enforcement, including the El Paso County SWAT team and the Colorado Springs Police Department, assisted with the execution of the search warrants. The defendant is being prosecuted by Assistant U.S. Attorneys Garreth Winstead and Brian M. Dunn.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-256.
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.
Convicted Felon from Montgomery Found Guilty of Possessing Methamphetamine, an AR-15, and a HandgunRead the Press Release
Montgomery, Alabama – On Tuesday, August 11, 2020, a federal jury convicted Kemond Jareuz Fortson, a 35-year-old from Montgomery, Alabama, for being a felon in possession of a firearm, possessing methamphetamine with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Louis V. Franklin, Sr.
The trial evidence showed that, on October 31, 2017, the Gulf Coast Regional Fugitive Task Force went to an apartment in Montgomery to serve Fortson, who was previously convicted of murder, with an arrest warrant for a probation violation. Inside the apartment, they found Fortson and his girlfriend, along with nearly 40 grams of methamphetamine strewn along the floor, into the bathroom, and in the toilet. Agents also discovered a digital scale, a large black gun case, and a set of car keys. Agents then obtained a search warrant for a car and found a loaded AR-15, around 40 more grams of methamphetamine, another digital scale, plastic bags, and a Ruger 9mm pistol in the trunk.
Following these convictions, Fortson is facing a sentence of five years to life in prison. His sentencing hearing has been scheduled for December 9, 2020. There is no parole in the federal system.
“Guns and drugs are a deadly mix, it’s like storing gasoline next to the fireplace” stated U.S. Attorney Franklin. “At the time of this offense, Mr. Fortson had been convicted of one violent crime and was a fugitive from justice. Apparently, Mr. Fortson decided that his latest criminal act would be using and carrying a firearm while distributing narcotics. The only reason dealers use and carry firearms is to protect their product, protect their money, and protect themselves, without any regard for the safety of others. My office places a priority on ridding our communities of violent offenders that refuse to obey the law, and I am grateful to the jury for their verdict in this case.”
The Alabama Law Enforcement Agency (ALEA), the Drug Enforcement Administration (DEA), and the U.S. Marshals Service-led Gulf Coast Regional Fugitive Task Force investigated this case. Assistant United States Attorneys Kevin Davidson and Brandon Bates are prosecuting the case.
Convicted Felon Is Sentenced to More Than Six Years for Illegal Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that Takobie Anderson, 20, of Charlotte, was sentenced in federal court late yesterday for illegally possessing a firearm. U.S. District Judge Frank D. Whitney ordered Anderson to serve 82 months in prison, followed by two years of supervised release.
U.S. Attorney Murray is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and yesterday’s sentencing hearing, on April 21, 2019, CMPD officers were dispatched to an apartment complex in Charlotte, in response to a report of a shooting. When the officers arrived at the scene they determined that two individuals, a male and a female, had been shot and had sustained injuries. Over the course of the investigation, law enforcement determined that Anderson had shot the two victims following a verbal altercation between the victims and a relative of Anderson. Court records show that, at the time of the shooting, Anderson was on probation for a state conviction and was wearing an ankle monitor. Law enforcement arrested Anderson on August 23, 2019, at a residence in Charlotte. At the time of Anderson’s arrest, law enforcement located inside the residence a loaded firearm, which they later determined had been stolen and was the firearm Anderson had used to shoot the victims. According to court records, Anderson has a previous felony conviction and he is prohibited from possessing a firearm and/or ammunition.
Anderson is in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility.
The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.
Chicago Man Sentenced to 22 Years for Engaging in a Nationwide Online Child Exploitation EnterpriseRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Marqueal Bonds, 22, of Chicago, Illinois, was sentenced today to 22 years in prison and lifetime supervised release by United States District Court Judge Harvey Bartle, III, for engaging in a child exploitation enterprise. Bonds was also ordered to pay a total of $33,221 in restitution to various victims.
In March 2020, Bonds pleaded guilty in the middle of trial to charges of engaging in a child exploitation enterprise and conspiracy to advertise child pornography. Using Discord, an online communications application that allows users to share files and communicate via chat messages, Bonds and his co-conspirators connected in private chat rooms to discuss how to find children and exploit them to produce child pornography. Bonds and his co-conspirators would also share child pornography on Discord, which included sexual depictions of children as young as toddlers. After discovering evidence of child pornography on Discord’s servers, federal agents executed a search warrant at Bonds’ house, and the defendant confessed to his involvement in this enterprise.
“Bonds and others like him will be held accountable by my Office no matter which dark corners of the Internet they are lurking in,” said U.S. Attorney McSwain. “Bonds and his co-conspirators trolled the Internet on legitimate sites like Snapchat, Periscope, and Live.me for vulnerable victims, tricked these children into believing they were chatting with boys or girls their own ages, and then obtained video and naked photos of them to share on Discord. Today’s lengthy sentence ensures that Bonds is out of business and serves as a warning to anybody who would consider exploiting children via the Internet.”
“Marqueal Bonds manipulated underage girls into providing explicit images of themselves,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He and his co-conspirators teamed up to sexually exploit children across the country and share the vile results. These are predators who harmed young girls without a second thought. Locking them up ensures they won’t be victimizing anyone else.”
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.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorney Kevin Jayne and Trial Attorney Kaylynn Foulon, of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.
Camden County man snared in child sex-trafficking sting sentenced to federal prisonRead the Press Release
BRUNSWICK, GA: A Camden County man snagged in a child sex-trafficking sting will spend more than five years in federal prison.
Charles Barreras, 49, of Kingsland, Ga., was sentenced to 62 months in federal prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Attempted Coercion and Enticement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Barreras will be required to serve 10 years of supervised release and to register as a sex offender.
There is no parole in the federal system.
“As predators attempt to use cyberspace to contact children for evil intentions, our law enforcement partners will remain vigilant in identifying and stopping pedophiles like Barreras,” said U.S. Attorney Christine. “Any adult who intends to contact children for illicit purposes should live in fear that their crimes will be uncovered – and like Barreras, they will go to prison.”
Barreras is a lieutenant commander in the U.S. Navy, stationed at Submarine Base Kings Bay in Kingsland. He and eight other men were indicted in July 2019 as a result of Operation Do You Know Your Neighbor, coordinated by the Georgia Bureau of Investigation’s Internet Crimes Against Children Task Force.
Three of the remaining defendants in the operation have been sentenced to federal prison, while others await sentencing after entering guilty pleas, or are awaiting trial.
“The sentences that continue to be handed down as a result of this successful multiagency operation should serve as a stern warning for sexual predators who target children where Department of the Navy personnel live and work,” said NCIS Southeast Field Office Special Agent in Charge Tom Cannizzo. “NCIS and our state and local partners are dedicated to working together to keep our communities safe for children.”
“This sentence demonstrates that no matter who you are, even a ranking official in the armed forces, you will be held accountable for preying on children,” said GBI Director Vic Reynolds. “We value our law enforcement partnerships to be able to work together in these type operations to catch the criminals who seek to harm one of our most vulnerable populations.”
The sting was set up by the Naval Criminal Investigative Service and the GBI’s Internet Crimes Against Children Task Force for the purpose of identifying adults who were seeking out children for indecent purposes. Other agencies participating in the investigation included the Camden County Sheriff’s Office, the Kingsland Police Department, the Effingham County Sheriff’s Office and the Savannah Police Department.
This case was prosecuted for the United States by Assistant U.S. Attorney Marcela Mateo and Special Assistant U.S. Attorney Katelyn Semales.
Bladenboro Gang Member Sentenced on Firearm Charge After Leading Three Men in Daytime BurglaryRead the Press Release
NEW BERN, N.C. – A Bladenboro man was sentenced today to 120 months in prison for possessing a firearm as a convicted felon.
According to court documents and statements made in court, on the morning of April 5, 2018, four people—defendant Devin Antonio Manuel, codefendants Jaden Davis and Charles Smith, and a juvenile male—burglarized a home in Bladenboro, North Carolina. They stole many items, including a television, cellular phones, gaming consoles, and a safe that contained five firearms. In positioning their car to load the items, they damaged the victims’ porch and left blue paint on a railing. The men then drove to an isolated field where they broke into the safe, removed the firearms, and started a fire in which they burned much of the other property in the safe, including victim family heirlooms.
On October 8, 2019, Davis was sentenced to 13 months in prison and on August 27, 2019, Smith received a 21-month sentence for their involvement in these crimes.
Later the same day, a pair of men attempted to pawn two class rings from the burglary at a store in Elizabethtown. The store owner, who personally knew the victims and saw their names engraved on the rings, reported the event to the victims and later to police. The owner identified Manuel, a known member of the Bloods street gang, as one of the men involved.
The next day, acting on an anonymous tip, police recovered one of the firearms in a parking lot of an apartment complex in Bladenboro. Four people, including codefendant Jaden Davis and the juvenile who participated in the burglary, were standing behind the trunk of a car looking at a Ruger .22 caliber rifle. The rifle was one of the firearms stolen in the burglary, and Davis was wearing a watch that had been stolen. The juvenile confessed to the crime and identified his accomplices. Law enforcement later confirmed codefendant Charles Smith’s involvement based on GPS data from his car, as well as damage to his car and blue paint that matched the damage to the victims’ porch. Forensics subsequently identified latent fingerprints from the gun safe left in the field as belonging to Manuel.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bladen County Sheriff’s Office investigated the case, and Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-0196-FL.
Armed Drug Dealer Receives 80 Months in Federal PrisonRead the Press Release
NEW BERN, N.C. – A Wilmington man, Tysuan Nash, 31 was sentenced today to 80 months in prison for possession with intent to distribute 28 grams or more of crack cocaine and a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and information provided in court, on September 15, 2017, Nash was stopped by a New Hanover County Sheriff’s deputy for a traffic violation. Nash had an outstanding order for arrest. During a search of the car, law enforcement found a quantity of crack cocaine, $2,565 and a loaded .38 caliber handgun. Nash was arrested and was released. On November 7, 2017, New Hanover County Sheriff’s Office narcotics detectives made a controlled purchase of heroin and crack from Nash. Nash was subsequently arrested during a traffic stop. Detectives found a .380 caliber handgun, 2 clips of heroin, almost three ounces of crack and $536 which included buy money from the earlier controlled purchase. Detectives learned that Nash had been receiving 9 ounces of cocaine at a time that he was cooking into crack cocaine.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The F.B.I. Safe Streets Task Force, Bureau of Alcohol, Tobacco and Firearms and the New Hanover County Sheriff’s Office Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-00059-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Allentown Man Sentenced to 10 Years for Multiple Firearms Violations, Dealing Drugs Near a SchoolRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Francisco Cruz-Pica, a/k/a “Javi,” 38, of Allentown, PA was sentenced to 10 years in prison, eight years of supervised release and ordered to pay a $1,200 fine by United States District Judge Jeffrey Schmehl for trafficking drugs and illegally possessing firearms, including a machine gun.
In January 2020, Cruz-Pica pleaded guilty to an 11-count Indictment charging drug trafficking and multiple firearms offenses, including distribution of heroin within 1,000 feet of a public school, maintaining a drug house, being a felon in possession of a firearm, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime. He committed these offenses while on supervised release for a previous felony firearms conviction in the District of Puerto Rico, and is a notorious drug dealer known to authorities operating in and around Allentown.
“This defendant clearly has no respect for the law or for the Allentown community,” said U.S. Attorney McSwain. “Not only did he illegally possess multiple firearms and deal drugs near a school – a place that is supposed to be a safe haven for children – but he did so while on supervised release for a previous felony conviction. My Office is committed to working with our local law enforcement partners, like District Attorney Martin and the Allentown Police Department, to protect the Allentown community by investigating and convicting criminals like Cruz-Pica, and put them behind bars.”
“I commend the Allentown Resident Office of the FBI and the Allentown Police Department on their investigation, which has enabled an effective prosecution by the U. S. Attorney and has resulted in a dangerous criminal being taken off the streets of our community,” said Lehigh County District Attorney Jim Martin.
“Cruz-Pica illegally armed himself to the teeth as he flooded the streets of Allentown with drugs,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “All while on supervised release imposed for an earlier gun crime. Today’s sentence, obtained through the efforts of the FBI and our partners on the Lehigh Valley Safe Streets Task Force, ensures this repeat offender and threat to public safety remains behind bars for some time.”
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the City of Allentown Police Department, and the Lehigh County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
Acting Manhattan U.S. Attorney Announces Charges in $7 Million Scheme to Defraud Loan Programs Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Kevin Kupperbusch, Special Agent-in-Charge of the Eastern Region Office of the Inspector General of the U.S. Small Business Administration (“SBA”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of SHENG-WEN CHENG, a/k/a “Justin Cheng,” a/k/a “Justin Jung,” a Taiwanese national residing in New York, New York, for a fraudulent scheme to obtain over $7 million in government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, CHENG used the identities of other individuals to falsely represent to the SBA and five financial institutions that companies controlled by him had a total of over 200 employees and paid $1.5 million in monthly wages, when, in fact, his companies appear to have a total of no more than 14 employees. Of the approximately $2.8 million in PPP loan proceeds that CHENG has received to date, CHENG transferred over $880,000 abroad, withdrew approximately $360,000 in cash and/or cashier’s checks, and spent over $275,000 on personal expenses. CHENG was charged with several counts of fraud, including major fraud against the United States, wire fraud, and bank fraud, as well as one count of aggravated identity theft for forging the electronic signature of a payroll company employee in payroll documents provided to financial institutions. CHENG was arrested this morning and will be presented later today before U.S. Magistrate Judge Stewart D. Aaron.
Acting U.S. Attorney Audrey Strauss said: “At a time when so many small businesses and their employees are facing dire financial straits, Sheng-Wen Cheng allegedly saw not an emergency lifeline but a gravy train. As alleged, Cheng fraudulently applied for over $7 million in government-guaranteed loans under programs designed to provide relief for small businesses financially strapped by the COVID-19 pandemic. Cheng allegedly lied to the Small Business Administration and several financial institutions about ownership of his companies, the number of people the companies employed, and how any loan proceeds would be applied, and he used forged and fraudulent documents in the process. Of the nearly $3 million he actually received, Cheng allegedly transferred nearly $1 million to overseas accounts, and spent nearly $300,000 on personal luxury items such as an 18-carat gold Rolex, a $17,000-a-month luxury condo, and a Mercedes. The paid vacation ended with his arrest this morning.”
FBI Assistant Director William F. Sweeney Jr said: “While small business owners throughout the country sought loans from the Paycheck Protection Program in order to pay employee wages and maintain basic business functions, Justin Cheng, a self-proclaimed ‘serial entrepreneur,’ acquired more than $3 million in financial relief, which he then used for personal benefit, as alleged today. True entrepreneurs who have been trying to keep their businesses afloat during these trying times are directly affected by this type of fraud, while the taxpaying citizens of this country are indirectly impacted by all those who siphon money illegitimately from this multibillion-dollar program. This isn’t the first case of SBA fraud we’ve seen, and it won’t be the last, but rest assured those who try to buck the system will be met with federal criminal charges wherever and whenever possible.”
SBA Special Agent-in-Charge Kevin Kupperbusch, said: “This is a critical time for our nation’s small businesses. Our Office will continue to combat fraud schemes that involve SBA’s programs for personal gain and greed. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “As alleged in the criminal complaint, Mr. Cheng fraudulently took advantage of programs meant to help those in need during a world-wide pandemic. IRS-CI will continue to prioritize investigations where criminals seek to steal money from well-deserving citizens amidst this ongoing public health crisis.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
The Coronavirus Aid, Relief, and Economic Security (“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 hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL Program, which provided small businesses with low-interest loans that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19. To qualify for an EIDL Program loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.
CHENG, a Taiwanese national who entered the United States on a student visa, is a self-proclaimed “serial entrepreneur” who earned a Bachelor’s Degree from Pennsylvania State University (“Penn State”). From at least in or about April 2020 through at least on or about August 13, 2020, CHENG appears to have used the identities of other individuals to submit online applications to the SBA and at least five financial institutions for a total of over $7 million in government-guaranteed loans through the SBA’s PPP and EIDL Program for several companies controlled by CHENG, namely Alchemy Finance, Inc., Alchemy Guarantor LLC d/b/a “Celer Offer,” Celeri Network, Inc., Celeri Treasury LLC, and Wynston York LLC (collectively, the “Cheng Companies”). In connection with these loan applications, CHENG represented, among other things, that other individuals were the sole owners of the Cheng Companies and that the Cheng Companies together had over 200 employees and paid a total of approximately $1.5 million in wages to those employees on a monthly basis. In fact, however, the Cheng Companies appear to have a total of no more than 14 employees.
In order to support the false representations in the loan applications about the number of employees at and the wages paid by the Cheng Companies, CHENG submitted fraudulent and doctored tax records that were never actually filed with the IRS, and payroll records containing the forged electronic signature of a payroll company employee. CHENG also submitted a payroll summary for one of his companies that listed the names of more than 90 purported employees, several of whom are current and former athletes, artists, actors, and public figures. For example, the list of purported employee names included a co-anchor on Good Morning America, a former National Football League player, and a prominent Penn State football coach who is now deceased.
Based on the fraudulent PPP loan applications submitted by CHENG, a total of more than $3.7 million in PPP loans were approved for the Cheng Companies and approximately $2.8 million in PPP loan proceeds were deposited into bank accounts solely controlled by CHENG as of on or about August 13, 2020. Based on bank records received to date, instead of using the PPP loan proceeds for payroll costs, mortgage interest, rent, and/or utilities for the purported Cheng Companies as required by the PPP, CHENG used a portion of the $2.8 million in loan proceeds he received as follows:
- A total of at least approximately $881,000 in PPP loan proceeds was transferred to accounts of different individuals and entities located at banks based in Taiwan, the United Kingdom, South Korea, and Singapore.
- A total of at least approximately $360,000 in PPP loan proceeds appears to have been withdrawn in cash and/or cashier’s checks.
- A total of at least approximately $279,000 in PPP loan proceeds was spent on personal expenses, including the purchase of an 18-carat gold Rolex watch for approximately $40,000, rent and move-in fees for a $17,000 per month luxury condominium for CHENG, approximately $50,000 of furnishings for CHENG’s condominium, at least approximately $80,000 toward the purchase of a 2020 S560X4 Mercedes, and purchases totaling approximately $37,000 at Louis Vuitton, Chanel, Burberry, Gucci, Christian Louboutin, and Yves Saint Laurent.
- A total of at least approximately $160,000 in PPP loan proceeds was transferred to Alchemy Marketplace, another company owned and controlled by CHENG, in international accounts.
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CHENG, 24 of New York, New York, is charged with one count of bank fraud, one count of wire fraud, and one count of making false statements to a bank, each of which carries a maximum sentence of 30 years in prison; one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; one count of making false statements, which carries a maximum sentence of five years in prison; one count of making false statements to the SBA, which carries a maximum sentence of two years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any businesses or individuals who believe they may have been a victim in this investigation or have information regarding this investigation should call the FBI at 1-800-CALL-FBI (225-5324).
Ms. Strauss praised the investigative work of the FBI, SBA-OIG, and IRS-CI, and noted that the investigation remains ongoing. Ms. Strauss also thanked U. S. Customs and Border Protection and the New York State Department of Labor for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
17 August 2020
Youngstown man indicted for using and discharging a firearm during string of armed robberiesRead the Press Release
U.S. Attorney Justin Herdman announced that a federal grand jury sitting in Cleveland has returned a 10-count indictment charging Terron Jones, 21, of Youngstown with five counts of interference with commerce by means of robbery, four counts of using or carrying, and brandishing a firearm during and in relation to a crime of violence and one count of using or carrying, and discharging a firearm during and in relation to a crime of violence.
According to the indictment, from May 2020 through June 2020, the defendant is accused of using a firearm, threatening force and obtaining monies in the custody, possession and presence of serval Youngstown area businesses. In addition, the indictment alleges that on or about May 23, 2020, Jones used, carried, and discharged a firearm during one of these robberies.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Youngstown Police Department. The case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
Wilmington Man Sentenced to 67 Months for Gun ChargeRead the Press Release
NEW BERN, N.C. – A Wilmington man was sentenced to 67 months in prison for possession of a firearm by a felon in connection with a July 31, 2019 incident.
According to court documents, Eric Lamont Burch, 45, was charged with one count of felon in possession of a firearm. Burch pled guilty to that count on May 5, 2020.
On July 31, 2019, an officer with the Wilmington Police Department initiated a traffic stop of a vehicle in which Burch was the lone, backseat passenger. As the officer approached the vehicle, he observed Burch conceal something under a backpack in the backseat. A subsequent search of the vehicle recovered drug paraphernalia and a loaded .38 caliber revolver was found in the backseat. At the time, Burch was prohibited from possessing a firearm as a result of prior felony convictions.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and Wilmington Police Department investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
The investigation was part of OCDETF Operation Round Tree Hill. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on an armed drug trafficking organization responsible for bringing heroin and crack into Eastern North Carolina.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00027-M.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Attorney's Office District of Arizona July 2020 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
157 individuals were charged in July with illegal reentry
A. 135 of those 157 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 135 individuals with non-immigration criminal records:
1. 25 had violent crime convictions, including:
1 individual had a homicide conviction
7 individuals had sex offense convictions
10 individuals had domestic violence convictions2. 26 had property crime convictions
3. 29 had DUI convictions
4. 66 had drug crime convictions
B. 81 of those 135 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
28 individuals were charged in July with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in July with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in late March of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2020-069_July Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two Queens Men Charged with the Murder of RUN-DMC D.J. Jason Mizell, also Known as “Jam Master Jay”Read the Press Release
A 10-count indictment was unsealed today in the Eastern District of New York charging Ronald Washington and Karl Jordan, Jr., with the October 30, 2002 murder of Jason Mizell, also known as “Jam Master Jay,” a member of the famed hip hop group Run-DMC. Each defendant is charged with murder while engaged in narcotics trafficking and firearm-related murder for the fatal shooting of Mizell inside the victim’s recording studio in Hollis, Queens. Jordan is charged with several additional narcotics distribution counts. Jordan was arrested yesterday and will be arraigned this afternoon via videoconference by United States Magistrate Judge Lois Bloom. Washington is in federal custody and will be arraigned at a later date.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Dermot F. Shea, Commissioner, New York City Police Department (NYPD), Daryl McCormick, Acting Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and indictment.
“The defendants allegedly carried out the cold-blooded murder of Jason Mizell, a brazen act that has finally caught up with them thanks to the dedicated detectives, agents and prosecutors who never gave up on this case,” stated Acting United States Attorney DuCharme. “The charges announced today begin to provide a measure of justice to the family and friends of the victim, and make clear that the rule of law will be upheld, whether that takes days, months or decades.”
“The gunshots that rang out in a recording studio in Queens nearly 18 years ago, taking this pioneering rap artist’s life, have been answered. Today’s indictment shows that no amount of time passed can erase the commitment of our NYPD detectives, federal law enforcement partners and prosecutors in the US Attorney’s Office for the Eastern District, to the pursuit of justice,” stated NYPD Commissioner Shea.
“The ATF New York Field Division never believed this case was unsolvable,” stated ATF Acting Special Agent-in-Charge McCormick. “Working tirelessly alongside the NYPD Cold Case Squad, we were determined to bring justice for the Mizell family and see these killers held accountable. For nearly eighteen years, one of these alleged perpetrators walked freely, thinking he’d gotten away with murder. But today, thanks to the unwavering efforts of the investigators and prosecutors, two individuals will answer for their crimes.”
As alleged in court filings, on October 30, 2002, Mizell was present at his recording studio, 24/7 Studio, located on Merrick Boulevard in Jamaica, Queens. At approximately 7:30 p.m., Washington and Jordan, armed with firearms, entered the studio. Washington pointed his firearm at an individual located inside the studio and demanded that the person lie on the floor. Jordan approached Mizell, pointed his firearm at him, and fired two shots at close range, striking the victim once in the head, killing him. The second shot struck another individual in the leg.
The investigation revealed that the motive for the killing resulted from Mizell’s previous acquisition of approximately 10 kilograms of cocaine from a narcotics supplier in the Midwest. The cocaine was allegedly intended to be distributed in Maryland by Washington, Jordan and other co-conspirators. Mizell had recently informed Washington that the defendant would not be involved in distributing the narcotics in Maryland, which precipitated the murder conspiracy.
In addition to the murder, Jordan is also charged with one count of conspiracy to distribute cocaine and seven counts of cocaine distribution.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a minimum of 20 years’ imprisonment and a maximum term of life imprisonment, or the death penalty.
Assistant United States Attorneys Artie McConnell and Mark E. Misorek are in charge of the prosecution.
The Defendants:
KARL JORDAN, JR. (also known as “Little D” and “Noid”)
Age: 36
Hollis, QueensRONALD WASHINGTON (also known as “Tinard”)
Age: 56
Hollis, QueensE.D.N.Y. Docket No. 20-CR-305 (LDH)
Two Plead Guilty for Roles in Huntington Fentanyl TraffickingRead the Press Release
HUNTINGTON, W.Va. – A Detroit man trafficking fentanyl, and a Huntington woman assisting him, both pled guilty to federal charges today, announced United States Attorney Mike Stuart. Vernon Eugene Mitchell, 30, and Tasha Lynn Adkins, 34, both pled guilty to distributing fentanyl. Mitchell also pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
“Detroit is home for another drug dealer taken down in southern West Virginia. Fentanyl has been a death drug for our people and Detroit and out-of-state drug dealers simply don’t care. These two were quite the pair. Drugs and guns don’t mix and lawbreakers will be caught and prosecuted,” said United States Attorney Mike Stuart. “We are all safer having these two off the streets.”
On October 2, 2019, officers with the Huntington Police Department utilized a confidential informant to purchase fentanyl from Mitchell. The informant met with Mitchell near the intersection of 13th Street West and Monroe Avenue in Huntington where Mitchell provided the fentanyl to the informant.
On October 28, 2019, officers again used an informant to contact Mitchell to purchase fentanyl. On that date, Mitchell directed the informant to go to a residence in the 300 block of 5th Avenue in Huntington. At that location, Adkins met with the informant and distributed the fentanyl.
Officers executed a search warrant at Mitchell’s residence located at 438 ½ 5th Avenue in Huntington on November 7, 2019. When officers entered, they located Mitchell and Adkins. During the search, officers found a number of items including $11,201 in cash and a loaded .45 caliber pistol. Mitchell admitted at the plea hearing that he made the money by selling fentanyl and that he possessed the firearm. Mitchell also admitted that he had been selling heroin and fentanyl in the Huntington area between the summer of 2019 and December 2019.
Mitchell faces five years to life in prison when he is sentenced on November 23, 2020. Adkins faces up to 20 years in prison when she is sentenced on November 23, 2020.
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
The case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.) and the Project Safe Neighborhoods (PSN) program.
Operation Synthetic Opioid Surge (S.O.S.) is an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
The Project Safe Neighborhoods (PSN) program is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00311.
Follow us on Twitter: SDWVNews and USAttyStuart
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Two Felons Sentenced for Possessing FirearmsRead the Press Release
TWO FELONS SENTENCED FOR POSSESSING FIREARMS
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that two felons have been sentenced in United States District Court for illegal possession of firearms.
Three-Time Convicted Felon Sentenced
Angelo Demario Young, 30, of Shreveport, was sentenced on a federal firearms charge by U.S. District Judge S. Maurice Hicks Jr. to 84 months (7 years) in prison, followed by 3 years of supervised release, after being convicted of possession of a firearm by a convicted felon.
According to documents filed with the court on June 11, 2019, Angelo Young recorded himself shooting a Glock .357 pistol at a shooting range in Shreveport and posted it to Facebook.com. Young has multiple prior felony convictions, including illegal possession of a stolen firearm (2009), possession with intent to distribute narcotics (2015), and possession of a firearm or carrying a concealed weapon by a convicted felon (2017). Federal law prohibits anyone who has been convicted of a felony to possess a firearm.
The ATF conducted the investigation and Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Shreveport Man Sentenced for Federal Firearms Crimes
Quinton Washington, 35, of Shreveport, was sentenced to 60 months (5 years) in prison, followed by 3 years of supervised release, by U.S. District Judge S. Maurice Hicks Jr. for being a convicted felon in possession of a firearm. According to the guilty plea, on August 23, 2018, law enforcement agents executed an arrest warrant for Washington at a house in Caddo Parish. During the operation, law enforcement found Washington and a firearm inside the house. Washington has multiple prior felony convictions, both in Louisiana and Texas.
The ATF and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Each case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Topeka Man Sentenced for $47,000 ID Theft SchemeRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced today to 46 months in federal prison for devising an identity theft scheme that caused a loss of more than $47,000, U.S. Attorney Stephen McAllister said.
Joseph Adams, 42, Topeka, Kan., pleaded guilty to one count of aggravated identity theft and one count of conspiring to commit bank and wire fraud. In his plea, Adams admitted he and a co-defendant obtained stolen mail containing checks and information on victims’ identities. They used a software program to make counterfeit checks and identification cards. They passed the counterfeit checks at stores including a Walmart in Overland Park, Kan. They also used a stolen identity to access an account at Capital Federal Bank. The overall loss was approximately $47,600.
Co-defendant Danielle Hutchens is scheduled for sentencing Sept. 28.
McAllister commended the U.S. Postal Service, the Overland Park Police Department and Assistant U.S. Attorney Skip Jacobs for their work on the case.
Three individuals charged with arranging adoptions from Uganda and Poland through bribery and fraudRead the Press Release
Three women were charged in a 13-count indictment filed on Aug. 14 in the Northern District of Ohio for their alleged roles in schemes to corruptly and fraudulently procure adoptions of Ugandan and Polish children through bribing Ugandan officials and defrauding U.S. adoptive parents, U.S. authorities, and a Polish regulatory authority.
Margaret Cole, 73, of Strongsville, Ohio, Debra Parris, 68, of Lake Dallas, Texas, and Dorah Mirembe, 41, of Kampala, Uganda, were charged in the indictment. In relation to the Uganda scheme, Parris and Mirembe were each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and commit visa fraud, one count of conspiracy to commit mail fraud and wire fraud, one count of conspiracy to commit money laundering, three substantive FCPA counts and three substantive counts of money laundering. Parris was also charged with one count of mail fraud. In relation to the Poland scheme, Parris and Cole were each charged with one count of conspiracy to defraud the United States. Cole was further charged with one count of making a false statement to a U.S. accrediting entity and one count of making a false statement to a Polish authority.
“These defendants are accused of orchestrating an alleged scheme that bribed Ugandan officials, defrauded the United States and manipulated parents inside and outside of the country,” said U.S. Attorney Justin Herdman of the Northern District of Ohio. “As a result of this alleged conduct, prospective parents were deceived, hundreds of thousands of dollars were misused and innocent children were displaced from their homes.”
“The defendants allegedly resorted to bribery and fraud to engage in an international criminal adoption scheme that took children from their home countries in Uganda and Poland without properly determining whether they were actually orphaned. The defendants sought to profit from their alleged criminal activity at the expense of families and vulnerable children,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These charges clearly show that the Department of Justice is committed to protecting children worldwide, including those involved in the international adoption process.”
“These three defendants preyed on the emotions of parents, those wanting the best for their child, and those wishing to give what they thought was an orphaned child a family to love,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “These defendants allegedly lied to both sides of the adoption process, and bribed Ugandan officials who were responsible for the welfare of children. Parents, prospective parents and children were emotionally vested and were heartbroken when they learned of the selfishness and greed in which these three engaged. The FBI will never cease in its efforts to protect the innocent and unwitting from those who prey on that trust and confidence and we will vigorously pursue and hold those responsible accountable.”
With respect to the Uganda scheme, the indictment alleges that Parris and Mirembe, together with others, engaged in a scheme to pay bribes to Ugandan officials to corruptly procure the adoption of Ugandan children by families in the United States, including the adoption of children who were not properly determined to be orphaned and who had to be ultimately returned to their birth parents.
Specifically, Parris, Mirembe, and their co-conspirators allegedly (1) paid bribes to social welfare officers in exchange for them issuing welfare reports recommending that certain children be placed into orphanages without first ensuring that the children were actually orphaned or that putting them up for adoption was in the children’s best interest; (2) paid bribes to Ugandan magistrate judges to obtain court orders placing those children in an orphanage that was willing to accept the children without inquiring into whether they were actually orphans; (3) paid bribes to court registrars to cause the court registrars to assign the cases of these children to two corrupt “adoption-friendly” judges; and (4) paid bribes to the corrupt Ugandan judges to obtain orders to permit their clients to bring the children to the United States for adoption.
Parris, Mirembe, and others also allegedly lied to, and concealed material information from, adoptive parents, including lying about the bribe payments and whether the children were properly determined to be eligible for adoption, and concealing other material information about the children’s history. The indictment also alleges that Parris, Mirembe, and others agreed to cause false documents to be submitted to the U.S. Department of State to hide the corrupt and fraudulent scheme and to mislead it in its adjudication of visa applications for the Ugandan children being considered for adoption. The co-conspirators and the entities they worked for received more than $900,000 in connection with these adoptions.
With respect to the Poland scheme, the indictment alleges that after clients of their adoption agency determined they could not care for one of the two Polish children they were set to adopt, Cole and Parris took steps to transfer the child to Parris’s relatives, who were not eligible for intercountry adoption and one of whom had a criminal arrest record. After the child was physically abused, Cole and Parris took steps to conceal their improper conduct from the entity responsible for accrediting U.S. intercountry adoption agencies—and from the Polish authority responsible for intercountry adoptions—in an attempt to continue profiting from these adoptions.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-fraud/victim-witness-program or call (888) 549-3945.
This case is being investigated by the FBI’s Cleveland Field Office and is being prosecuted by and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio and Trial Attorneys Jason Manning and Alexander Kramer of the Criminal Division’s Fraud Section.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.