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Friday 26 June 2020
U.S. Attorney Warns Public about Fraudulent Face Mask DocumentsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank today advised the public that cards and other documents bearing the Department of Justice seal and claiming that individuals are exempt from face mask requirements are fraudulent.
There have been reports of individuals in Maine handing out cards claiming that the bearer is exempt from face mask requirements under the Americans with Disabilities Act (ADA). The Department of Justice also is aware of postings or flyers on the internet making the same claims. Many of these documents include the Department’s seal. The following is an example of a card that has been distributed in Maine:
These documents were not issued by the Department, and the Department does not endorse them. The Department also has not granted permission for the use of its seal for this purpose. Misuse of the Department seal is a federal crime.
The Department urges the public not to rely on the information contained in these documents and to visit https://www.ada.gov/ for ADA information issued by the Department.
For more information and technical assistance about the ADA, please contact the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY).
U.S. Attorney Appoints First Missing and Murdered Indigenous Persons Coordinator for UtahRead the Press Release
SALT LAKE CITY – U.S. Attorney John W. Huber announced today the appointment of Brian Speelman as the Missing and Murdered Indigenous Persons (MMIP) coordinator in Utah.
As Utah’s first MMIP coordinator, Speelman will gather reliable data to identify MMIP cases connected to Utah; conduct outreach with tribal communities to assist in the creation and implementation of community action plans; and coordinate with tribal, local, state, and federal law enforcement in the development of protocols and procedures for responding to and addressing MMIP cases.
Speelman, who will coordinate with tribal communities and serve victims throughout Utah, will work in the U.S. Attorney’s Office in Salt Lake City.
U.S. Attorney General William Barr launched a national strategy in November to address missing and murdered Native Americans. As a part of the initiative, the Department of Justice made funding available to hire MMIP coordinators in 11 states, including Utah.
“American Indian and Alaska Native people suffer from unacceptable and disproportionately high levels of violence, which can have lasting impacts on families and communities. Native American women face particularly high rates of violence, with at least half suffering sexual or intimate-partner violence in their lifetime. Too many of these families have experienced the loss of loved ones who went missing or were murdered,” said Attorney General William P. Barr. “This important initiative will further strengthen the federal, state, and tribal law enforcement response to these continuing problems.”
“My office is fully committed to our tribal partners in Utah, and this new position will add to our combined capabilities. The position is designed to help serve crime victim families who have suffered from missing or murdered family members. It will also enable my office to better collaborate with other groups in Utah working on MMIP issues,” U.S. Attorney Huber said today. “Brian Speelman brings decades of experience, and is committed to working with our tribal communities and other stakeholders to reduce violent crime and deliver justice.”
Prior to joining the U.S. Attorney’s Office, Speelman worked as an FBI agent, retiring as a Supervisory Special Agent in 2011. Following his retirement, he was appointed Director of the Utah Statewide Information and Analysis Center (SIAC), which was recognized in 2015 with the Governor’s Award for Excellence in Public Services. Most recently, Speelman worked as an associate with the Argonne National Laboratory focusing on homeland security issues. He is a graduate of the University of Maryland.
The strategy announced in November by DOJ has three parts:
Establish MMIP coordinators: The Department of Justice is investing resources to hire 11 MMIP coordinators in 11 states to serve with all U.S. Attorney’s offices in those states, and others who request assistance. The states are Alaska, Arizona, Montana, Oklahoma, Michigan, Utah, Nevada, Minnesota, Oregon, New Mexico, and Washington. MMIP coordinators will work closely with federal, tribal, state and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people.
Specialized FBI Rapid Deployment Teams: The strategy will bring needed tools and resources to law enforcement. Upon request by a tribal, state, or local law enforcement agency, the FBI will provide expert assistance based upon the circumstances of a missing indigenous persons case. FBI resources and personnel, which may be activated to assist with cases include: Child Abduction Rapid Deployment (CARD) teams, Cellular Analysis Support Teams, Evidence Response Teams, Cyber Agents for timely analysis of digital evidence/social media, Victim Services Division Response Teams, and others. MMIP coordinators will assist in developing protocols.
Comprehensive Data Analysis: The department will perform in-depth analysis of federally supported databases and analyze data collection practices to identify opportunities to improve data and share the results of this analysis with our partners in this effort.
More broadly, the MMIP Initiative will involve a coordinated effort by more than 50 U.S. Attorneys on the Attorney General’s Native American Issues Subcommittee (NAIS), the FBI, and the Office of Tribal Justice, with support from the Office of Justice Programs (OJP) and the Office on Violence Against Women (OVW).
Two Sentenced for Tax EvasionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Dudley Hellenbrand, 68, and Cherie Hellenbrand, 46, both of Middleton, Wisconsin, were sentenced today by U.S. District Judge James D. Peterson to each serve six months in federal prison for filing a false income tax return with the Internal Revenue Service. The judge staggered the prison sentences to allow one parent to stay home with their children. Dudley Hellenbrand reports to prison on July 27, 2020. Cherie Hellenbrand must report on June 14, 2021.
On July 11, 2019, both defendants pleaded guilty to a one-count information that charged them with filing a false 2017 income tax return with the IRS. The information alleged that the Hellenbrands owned and operated a sports bar/bowling alley in Middleton called Middleton Sport Bowl.
According to the information, the defendants contracted with a video gambling machine (“VGM”) vendor to have VGMs placed at Middleton Sport Bowl. The defendants split the cash receipts generated by the VGMs with the vendor, with the defendants most recently receiving 75% of the VGM profits, and the vendor receiving the remaining 25%.
As part of the plea agreement, the Hellenbrands admitted they skimmed the VGM cash receipts from Middleton Sport Bowl, and did not report the skimmed receipts on their state and federal income tax returns. The Hellenbrands agreed the total tax loss from the skim, for both state and federal income taxes, totaled $268,852.04 for the years 2010-2017.
This tax investigation started with a U.S. Department of Treasury Special Agent working as an undercover agent and posing as a buyer of a bar listed for sale by Cherie and Dudley Hellenbrand in August 2017. The bar was Middleton Sport Bowl (MSB) in Middleton. On May 31, 2018, the undercover agent met with the Hellenbrands and their VGM vendors at Middleton Sport Bowl. During that meeting, the vendors told the undercover agent they skimmed the cash receipts from the VGMs and prepared fake handwritten collection tickets showing much lower numbers for what came in, what came out, and what was the profit. These fake tickets were then used to report a fraction of the skim on the state and federal tax returns for the vendors as well as the Hellenbrands.
At today’s sentencing, Judge Peterson noted the Hellenbrands were good and decent people, but they compartmentalized an area of their lives to justify the cash skim of the VGM receipts at Middleton Sport Bowl, and not report all of these receipts on their tax returns. Judge Peterson stated that a term of incarceration was necessary to punish these defendants for their criminal conduct because it was knowing, calculated, and deliberate. Lastly, Judge Peterson explained that a period of incarceration was necessary to send a general deterrence message to the taxpaying community – “the tax laws must be respected and if you violate those laws you will not receive a slap on the wrist, and you may end up going to federal prison, like these two defendants.”
On June 19, 2020, Judge Peterson sentenced Tom Laugen to 1 year and 1 day in federal prison for his role in this VGM skim and tax evasion scheme. Laugen pleaded guilty to federal income tax evasion on July 12, 2019 and admitted he was a VGM vendor who supplied VGMs to the Hellenbrands at Middleton Sport Bowl from 2004 to 2017, and split the skimmed VGM cash receipts with the Hellenbrands.
The case against the Hellenbrands and Laugen is the result of an ongoing investigation being conducted by IRS Criminal Investigation and the Wisconsin Department of Revenue, Office of Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorneys Daniel Graber and Chadwick Elgersma.
Two Alleged Boston Gang Members Arrested for Drug ConspiracyRead the Press Release
BOSTON – Two alleged members of the Franklin Hill street gang in Boston were arrested on federal drug charges.
Trevel Brewster, 25, and Timmy Hunt, 29, of Boston, were each charged in an indictment with two counts of distribution and possession with intent to distribute cocaine base and one count of distribution and possession with intent to distribute over 28 grams of cocaine base. Brewster was arrested yesterday and Hunt, who is on pretrial release on a state court matter, was arrested on Wednesday, June 24, 2020. Following arraignments via videoconference in federal court in Boston, both men were detained pending a detention hearing set for July 2, 2020.
According to the indictment, Brewster and Hunt distributed and possessed with intent to distribute cocaine base in Boston on Feb. 26, 2020 and March 2, 2020, and conspired to distribute and possess with intent to distribute over 28 grams of cocaine base.
The charge of distributing or possessing with intent to distribute cocaine base carries a sentence of up to 20 years in prison, three years to a lifetime of supervised release and a fine of up to $1 million. The charge of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base provides for a minimum mandatory sentence of five years and up to 40 years in prison, four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Gross; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; and Brockton Police Chief Emanuel Gomes made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three charged with money laundering conspiracy involving online romance scamRead the Press Release
COLUMBUS, Ohio – A federal indictment accuses three central Ohio men of conspiring to launder the proceeds of online romance scams for more than five years.
Those charged include Robert Asante, 35, of Canal Winchester, Kwame Yeboah, 36, of Columbus, and Eric Ahiekpor, 49, of Lewis Center.
According to the indictment, which was unsealed yesterday, individuals committing fraud created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams allegedly requested money, typically for investment or need-based reasons, and provided account information and directions for where money should be sent. In part, these accounts were allegedly in the names of the defendants, in the names of the defendants’ family members, and in the names of the defendants’ companies.
The indictment alleges that the funds were not used for the purposes claimed by the perpetrators of the romance scams. Instead, the defendants conducted transactions designed to conceal, such as withdrawing cash, transferring funds to other accounts, buying official checks, sending wires to Ghana, China, and the United States, and more. It is alleged that part of the conspiracy was for the defendants to move the romance fraud proceeds from the United States to Ghana.
“The defendants allegedly laundered proceeds earned from an online romance scam through a series of financial transactions intended to conceal the fraud,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Conspiracy to launder money is punishable by up to 20 years in prison and a $500,000 fine, as well as forfeiture of any proceeds involved in the conspiracy. U.S. Marshals arrested Ahiekpor Tuesday. He was arraigned before a U.S. Magistrate Judge yesterday. Asante and Yeboah have court appearances scheduled for Monday, June 29.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); and Pete Tobin, U.S. Marshal for the Southern District of Ohio announced the charges. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Texas Man Charged with Defrauding Alameda-Based Union of $4.5 MillionRead the Press Release
OAKLAND – Scott A. Wilson was arrested today in connection with a complaint unsealed in Oakland alleging that he defrauded the Operating Engineers Local Union No. 3, based in Alameda, California, of approximately $4.5 million, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John L. Bennett, and U.S. Department of Labor Office of Inspector General Special Agent in Charge Quentin Heiden.
According to the complaint, Wilson, 52, of Corsicana, Texas, was the director of the union’s information technology department, where he had authority to purchase goods and services. While working for the union, Wilson allegedly set up a front company called OST. Using the alias, “John Lasson,” Wilson allegedly used OST to receive funds from the union, at first directly and then through two other front companies set up by a friend and a relative under Wilson’s direction. Between 2011 and 2017, Wilson allegedly used these front companies to fraudulently invoice the union for IT-related goods and services that were never to be delivered, taking some funds directly through OST, and others through kickbacks paid by his friend and relative. Wilson also allegedly used the front companies to conceal payments made with union funds to his own family members, primarily for work that was never done. At one point, according to the complaint, Wilson arranged for the union funds to be withdrawn from the front companies’ accounts and delivered to him at various restaurants around the Bay Area in the form of cash, wrapped in the shape of bricks and placed in silver bags.
The complaint alleges that over the course of six years, in total Wilson fraudulently directed approximately $4.5 million to the front companies, of which $2.5 million was kicked directly back to Wilson in various ways. The complaint further alleges that Wilson used the allegedly embezzled funds to, among other things, purchase land in Corsicana, Texas, and build himself a house there.
According to the complaint, the scheme was discovered when the union’s finance department learned that Wilson had concealed that he was the principal behind one of the front companies with which his IT department was conducting business.
Wilson was arrested on June 26, 2020, in Corsicana, Texas, and made an appearance in federal court in Dallas this afternoon. He was ordered to appear in federal court in Oakland on July 13, 2020.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison, and a fine of up to $250,000, along with potential restitution and forfeiture. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the Federal Bureau of Investigation, and the Department of Labor’s Office of Inspector General and Office of Labor Management Standards.
Tampa Man Sentenced to over Five Years for Manufacturing Counterfeit Credit Cards, Fake IDs, and Illegal FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Michael Prime (40, formerly of Brandon) to 5 years and 10 months in federal prison for access device (credit card) fraud, identity theft, and possession of a firearm as a convicted felon. Prime was also ordered to pay a $2,000 fine. He had pleaded guilty on December 12, 2019.
According to court documents, on September 29, 2018, law enforcement officers searched Prime’s residence in Tampa. Prime, a multiple-convicted felon, unlawfully possessed firearms and ammunition. While searching Prime’s residence, law enforcement officers seized 1,774 counterfeit credit and debit cards; 1,490 blank cards, some of which contained magnetic stripes and credit or debit card chips; 37 counterfeit driver licenses and IDs; counterfeit Social Security card templates; sheets of holograms used for manufacturing credit cards, debit cards and IDs; counterfeit chips for credit and debit card manufacturing; and printers and engravers (including a credit card printing machine and 3D printers). A search of Prime’s electronic equipment resulted in the discovery of hundreds of additional credit and debit account numbers, images of approximately 32 driver licenses and ID cards, driving permits from approximately 12 different issuing states, a counterfeit United States Army ID card purportedly for a lieutenant colonel, 5 images of Canadian driver licenses, 2 Portuguese citizen identification cards and the image of a counterfeit Republic de Angola passport, 5 images of Social Security cards, and 4 images of a counterfeit $100 U.S. Federal Reserve note.
Investigators learned that Prime sold “ghost guns” (untraceable firearms) that he manufactured and advertised for $1,500 on the Dark Web, along with counterfeit credit cards and fake IDs. He also sold counterfeit credit cards on the website Republic of Lampeduza, which facilitated the commission of credit card fraud by hosting, receiving, and selling stolen credit and debit card account information resulting from online breaches.
In total, investigators seized approximately 5,493 access (credit card) devices from Prime, including credit card account numbers, debit card account numbers, and Social Security numbers. As a previously convicted felon, Prime is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the United States Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Tampa Man Sentenced to Federal Prison for Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Brett Lawrence Rozenburgh (55, Tampa) to 13 months in federal prison for passing counterfeit Federal Reserve notes. The court also ordered Rozenburgh to pay restitution to the victims he defrauded. Rozenburgh had pleaded guilty on January 16, 2020.
According to court documents, Rozenburgh was part of a group of individuals passing counterfeit Federal Reserve notes. The group traveled throughout Florida, stopping at various shopping centers in order to pass counterfeit $100 bills. In March 2019, Rozenburgh and others, including his co-defendant, Charles Alexander Coriaty III, traveled to north Florida to commit fraud. On March 26, 2019, law enforcement officers stopped a vehicle that Rozenburgh, Coriaty, and others were riding in. During a search of the vehicle, the officers recovered multiple counterfeit $100 bills and a large amount of merchandise that had previously been purchased by Rozenburgh and Coriaty, using counterfeit $100 bills.
On February 24, 2020, Coriaty (27, New Port Richey) was sentenced to 16 months in federal prison for his part in the scheme.
This case was investigated by the United States Secret Service (Jacksonville Field Office) and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Tampa Man Indicted for Attempting to Provide Material Support to Isis and Firearms OffensesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return by a federal grand jury of an indictment charging Muhammed Momtaz Al-Azhari (23, Tampa) with attempting to provide material support or resources to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (“ISIS”), and with violations of the National Firearms Act. If convicted on all counts, Al-Azhari faces a maximum penalty of 40 years in federal prison.
According to court documents, Al-Azhari was an ISIS supporter who planned and attempted to carry out an attack on behalf of that terrorist organization. Since at least 2019, Al-Azhari has consumed ISIS propaganda and spoken favorably about ISIS. Al-Azhari, who has a criminal history that includes prior terrorism charges in Saudi Arabia, acquired multiple firearms, including a Glock pistol and silencer. Al-Azhari also expressed admiration for Pulse nightclub shooter Omar Mateen and spoke of his desire to carry out a similar mass shooting. Additionally, Al-Azhari researched and scouted potential targets in the Tampa area, including beaches and the FBI Tampa Field Office. He also rehearsed portions of an attack and statements that he would make during or in connection with such an attack.
FBI agents arrested Al-Azhari on May 24, 2020, after he took possession of weapons, including a Glock handgun and silencer, to be used in an attack.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI’s Joint Terrorism Task Force, including Homeland Security Investigations, the Tampa Police Department, the Pinellas County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Pasco Sheriff’s Office, the St. Petersburg Police Department, the Clearwater Police Department, and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Patrick Scruggs, with assistance from Trial Attorney Ranganath Mathripragada of the National Security Division’s Counterterrorism Section.
Statement from Assistant Attorney General Eric Dreiband on Federal Court's Religious Liberty Ruling Concerning New York City and New York StateRead the Press Release
Assistant Attorney General Eric Dreiband of the Civil Rights Division issued the following statement in response to the federal court ruling today regarding religious liberty in New York City and New York State:
"Today’s federal court decision is a win for religious freedom and the civil liberties of New Yorkers. Government cannot discriminate by protecting free speech and the right to assemble while threatening or limiting religious exercise – it must protect all rights guaranteed under the First Amendment. The court’s decision is consistent with positions and arguments made by the United States Department of Justice in similar filings and letters, including in New York City and elsewhere around the country. The Department of Justice will continue to support people of faith who seek equal treatment against threats and actions by public officials who discriminate against them because of their religion. The Constitution and our oath to defend and protect it require nothing less."
The federal case is Soos et al., v. Cuomo et al., No. 1:20-cv-651 (N.D.N.Y).
The court opinion can be found here https://www.thomasmoresociety.org/wp-content/uploads/2020/06/Dist.-Ct.-Memo-and-Order-June-26-2020.pdf. The department's previous statement on religious concerns in New York City can be found here https://www.justice.gov/opa/pr/statement-assistant-attorney-general-eric-dreiband-and-us-attorney-matthew-schneider-new-york.
St. Louis Man Sentenced to 60 Months in Prison for Attempting to Possess with Intent to Distribute Approximately 8 Kilograms of FentanylRead the Press Release
St. Louis, Missouri – United States District Judge Ronnie L. White sentenced Kaylin Robinson, 22, of St. Louis, to 60 months in prison for attempting to possess with the intent to distribute in excess of 400 grams of fentanyl.
According to the plea agreement, on Friday, January 18, 2019, the United Parcel Service (UPS) attempted to deliver a package addressed to “Robert Anderson” at 2110 McLaran Avenue, Jennings, Missouri. The UPS driver went to 2110 McLaran but did not deliver the package because the house appeared to be vacant. The driver went back to the truck and Robinson approached the driver to request delivery of the package. Robinson said that he was picking the package up for his grandfather from 2110 McLaran. The driver asked for Robinson’s identification and he said he did not have any. The UPS driver returned the package to the Earth City customer service center.
On Monday, January 21, 2019, UPS security personnel opened the package in an effort to determine the correct address for delivery of the package. A plastic tote was inside the cardboard box and there were several bundles that were wrapped in green and clear cellophane with lotion, coffee grounds, and dryer sheets. Because the wrapping was suspicious, UPS security contacted the St. Louis County Police Department narcotics unit. The St. Louis County Police Department took custody of the package and found it to contain 7.99 kilograms of fentanyl.
On Tuesday, January 22, 2019, Robinson went to the UPS Earth City customer service lobby and identified himself as “Robert Anderson.” A UPS employee told the defendant that he would need to present photo identification showing that he was “Robert Anderson.” He declined to present identification at that time.
Officers prepared an imitation package that looked like the original package to deliver to Robison if he returned to UPS. On January 23, 2019, Robinson went to the UPS customer service center in Earth City and again identified himself as “Robert Anderson.” Robinson presented a false Missouri Department of Revenue Temporary Driver License with his picture on it. The license was in the name of “Robert Anderson” with an address of 2110 McLaran Avenue, Jennings, Missouri. The issue date purported to be January 19, 2019. A UPS employee made a copy of the identification and informed Robinson that the package was out for delivery.
On January 23, 2019, Robinson returned to the UPS customer service center where he was given the imitation package. He placed the package in the trunk of a car waiting in the parking lot, got into the passenger seat, and then left the area. Officers attempted to stop the car, but the car fled at a high rate of speed and went the wrong way down a one-way street. Officers were unable to locate the car, however, they did locate the imitation package which had been discarded in the 12000 block of St. Charles Rock Road.
The St. Louis County Police Department and the Drug Enforcement Administration investigated this case, with the cooperation and assistance of the United Parcel Service.
San Francisco Venture Capitalist Charged in Wide-Ranging Schemes to DefraudRead the Press Release
SAN FRANCISCO – Michael Brent Rothenberg was charged in a criminal complaint with wire fraud in connection with a scheme to invest in a privately-traded software company in 2016, and in an information in connection with multiple schemes to defraud spanning from 2013 to 2016, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Kareem Carter, Special Agent in Charge of Criminal Investigation at the Internal Revenue Service. Rothenberg made his initial appearance in federal court today before Magistrate Judge Westmore.
According to the complaint and information, Rothenberg, 36, of San Francisco, California, is alleged to have orchestrated multiple schemes to defraud his victims. Rothenberg founded a venture capital company, Rothenberg Ventures Management Company, LLC (“RVMC”), that he used between 2013 and 2016 to raise and manage four annual funds whose purpose was to invest in Silicon Valley start-up companies, and particularly companies in the field of virtual reality technologies.
The information filed today alleges that Rothenberg partially funded his capital commitment to the second of those funds by committing bank fraud. Specifically, in 2014, Rothenberg made false statements about his wealth to his bank while refinancing his home mortgage and while obtaining a $300,000 personal loan, and poured some of the ill-gotten money he obtained from the bank into the second of his funds.
In 2015, the information alleges that Rothenberg took excess money in venture capital fees from one of the funds he was raising and managing at RVMC, and therefore faced a shortfall at the end of the year that he did not wish to report to his investors. At the end of 2015, the information alleges that Rothenberg engaged in a scheme to defraud a bank by making false statements and misrepresentations to the bank in order to obtain a $4 million line of credit to pay back the fund from which he had taken excess fees. In so doing, Rothenberg attempted to deceive his investors into believing the fund was well-managed and that RVMC was following the operating agreements the investors understood controlled the management of the fund.
In February 2016, according to the allegations laid out in the information, Rothenberg engaged in a scheme to defraud an investor with respect to a $2 million investment that it believed it was making directly into a virtual reality content production company operating as River Studios that Rothenberg contended he wholly-owned. It is alleged that, rather than using that investment at River Studios as he had represented, Rothenberg used most of it for non-River Studios purposes.
The complaint then alleges that, in July 2016, Rothenberg engaged in a scheme to defraud as many as five separate investors when he induced them to wire a total of $1.35 million under the premise of investing in the untraded stock of a privately-held software company. The complaint charges Rothenberg with knowingly engaging in a scheme to defraud one investor by representing to that organization that its money would be used to purchase the software company’s shares. According to the complaint, on the same day the money was wired, Rothenberg took the money from the bank account designed to make the investment and sent it to RVMC’s main operating bank account, from which it was used for many purposes. The complaint alleges that no stock in the software company was ever purchased.
Finally, the information sets out allegations about a series of investors as to whom Rothenberg engaged in a scheme to defraud in 2015 and 2016 by inducing their investments in his RVMC-managed funds under the premise he would use the money for investments in “frontier edge” technologies and take only certain limited fees for the management of the funds. Instead, Rothenberg took more fees than to which he was entitled and invested far less of the money he raised than the operating agreements disclosed to the investors contemplated.
Today’s allegations in the criminal complaint and information state that the evidence has established that since 2013 Rothenberg fraudulently obtained at least $18.8 million through his illegal conduct.
The criminal complaint unsealed today charges Rothenberg with wire fraud, in violation of 18 U.S.C. §§ 1343 and 2.
The information filed today charges Rothenberg with 23 crimes, including the one set out in the criminal complaint. For his two schemes to defraud a bank, Rothenberg is charged with two counts of bank fraud, in violation of 18 U.S.C. §§ 1344 and 2, and two counts of making a false statement in a loan application to an FDIC-insured lender, in violation of 18 U.S.C. §§ 1014 and 2. With respect to his scheme to defraud an investor in River Studios, Rothenberg is charged with three counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2, and four counts of engaging in monetary transactions in property derived from specified unlawful activity, commonly known as money laundering, in violation of 18 U.S.C. §§ 1957 and 2. For his scheme to defraud investors in the untraded stock in a privately held software company in July 2016, Rothenberg is charged with four counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2. Finally, for his scheme to defraud investors in his funds in 2015 and 2016, Rothenberg is charged with eight counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2.
Each of the wire fraud charges carries maximum statutory penalties of up to 20 years in prison, not more than three years supervised release, and a $250,000 fine. The two bank fraud charges and the two false statement to a bank charges each carry a maximum of 30 years in prison, not more than five years supervised release, and a $1,000,000 fine. Finally, the money laundering charges carry a penalty of imprisonment of not more than ten years, not more than three years of supervised release, and a fine of not more than twice the amount of the criminally derived property involved in the transaction at issue. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint and information are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Magistrate Judge Westmore ordered Rothenberg released on $250,000 bond pending the outcome of the case. Rothenberg’s next appearance is scheduled for August 27, 2020, at 10:30 a.m.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office. The case is being investigated by the FBI and IRS Criminal Investigations.
Russian National Sentenced to Prison for Operating Websites Devoted to Fraud and Malicious Cyber ActivitiesRead the Press Release
A Russian national was sentenced today to nine years in prison for his operation of two websites devoted to the facilitation of payment card fraud, computer hacking, and other crimes before Senior U.S. District Judge T.S. Ellis III in the Eastern District of Virginia.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Special Agent in Charge Matthew S. Miller of the U.S. Secret Service’s Washington Field Office made the announcement.
According to court documents, Aleksei Burkov, 30, ran a website called “Cardplanet” that sold payment card numbers (e.g., debit and credit card numbers) that had been stolen primarily through computer intrusions, victimizing hundreds of thousands. Many of the card numbers offered for sale belonged to U.S. citizens. The stolen credit card data sold on Burkov’s site has resulted in over $20 million in fraudulent purchases made using U.S. credit card accounts.
Burkov also ran another website that served as an invite-only club where elite cybercriminals could advertise stolen goods, such as personal identifying information and malicious software, and criminal services, such as money laundering and hacking services. To obtain membership in Burkov’s cybercrime forum, prospective members needed three existing members to “vouch” for their good reputation among cybercriminals and to provide a sum of money, normally $5,000, as insurance. These measures were designed to keep law enforcement from accessing Burkov’s cybercrime forum and to ensure that members of the forum honored any deals made while conducting business on the forum.
Burkov was arrested at Ben-Gurion Airport near Tel Aviv, Israel in December 2015. An Israeli district court approved his extradition in 2017. He was extradited to the United States from Israel on Nov. 11, 2019, after appeals to the Israeli Supreme Court and the Israeli High Court of Justice were denied. On Jan. 23, 2020, he pleaded guilty to one count of access device fraud and one count of conspiracy to commit access device fraud, identity theft, computer intrusions, wire fraud, and money laundering.
Senior Trial Attorney Laura Fong of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kellen S. Dwyer and Alexander P. Berrang of the Eastern District of Virginia prosecuted the case. The Criminal Division’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from Israel.
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.
Russian National Sentenced for Operating Websites Devoted to Fraud and Malicious Cyber ActivitiesRead the Press Release
ALEXANDRIA, Va. – A Russian national was sentenced today to nine years in prison for his operation of two websites devoted to the facilitation of payment card fraud, computer hacking, and other crimes.
“Aleksei Burkov’s massive fraud victimized hundreds of thousands of people and resulted in over $20 million in losses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Tackling global cybercrime means holding accountable leaders like Burkov who have allowed cybercrime to become organized and hyper-specialized. I want to thank our prosecutors and investigative partners for their terrific work on this complex case.”
According to court documents, Burkov, 30, ran a website called “Cardplanet” that sold payment card numbers (e.g., debit and credit card numbers) that had been stolen primarily through computer intrusions. Many of the card numbers offered for sale belonged to United States citizens. The stolen credit card data sold on Burkov’s site has resulted in over $20 million in fraudulent purchases made using United States credit card accounts.
Burkov also ran another website that served as an invite-only club where elite cybercriminals could advertise stolen goods, such as personal identifying information and malicious software, and criminal services, such as money laundering and hacking services. To obtain membership in Burkov’s cybercrime forum, prospective members needed three existing members to “vouch” for their good reputation among cybercriminals and to provide a sum of money, normally $5,000, as insurance. These measures were designed to keep law enforcement from accessing Burkov’s cybercrime forum and to ensure that members of the forum honored any deals made while conducting business on the forum.
Burkov was arrested at Ben-Gurion Airport near Tel Aviv, Israel in December 2015. An Israeli district court approved his extradition in 2017. He was extradited to the United States from Israel on Nov. 11, 2019, after appeals to the Israeli Supreme Court and the Israeli High Court of Justice were denied. On January 23, 2020, Burkov pleaded guilty to one count of access device fraud and one count of conspiracy to commit access device fraud, identity theft, computer intrusions, wire fraud, and money laundering.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; and Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Kellen S. Dwyer and Alexander P. Berrang prosecuted the case, along with Senior Trial Attorney Laura Fong of the Criminal Division’s Computer Crime and Intellectual Property Section.
The Office of International Affairs of the Justice Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Israel.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-245.
Russian National Pleads Guilty for Role in Transnational Cybercrime Organization Responsible for more than $568 Million in LossesRead the Press Release
One of the leaders of the Infraud Organization pleaded guilty today to RICO conspiracy. Infraud was an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement.
Sergey Medvedev, aka “Stells,” “segmed,” “serjbear,” 33, of the Russian Federation, pleaded guilty before U.S. District Court Judge James C. Mahan in the District of Nevada. According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” “Rector,” and “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for “carding”—purchasing retail items with counterfeit or stolen credit card information—on the Internet. Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods. It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members. In March 2017, there were 10,901 registered members of the Infraud Organization.
During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $568 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked.
The investigation was conducted by the Las Vegas Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Henderson, Nevada Police Department. The Criminal Division’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from Thailand. Deputy Chief Kelly Pearson and Trial Attorneys Chad W. McHenry and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Rockingham Man Sentenced to 5 Years in Federal Prison for Throwing Molotov Cocktail into a Laurinburg ResidenceRead the Press Release
WINSTON-SALEM, N.C. - On Wednesday, June 24, 2020, a judge in federal district court sentenced former Rockingham resident A D MCRAE IV, to a 60-month prison term for throwing a Molotov cocktail into an occupied residence, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
MCRAE, age 30, pleaded guilty on December 4, 2019, to one count of malicious use of explosive materials.
According to documents filed with the Court, two people were inside a Laurinburg residence on March 1, 2017, when an ignited Molotov cocktail came through a bedroom window. The glass bottle landed on a pile of clothing, failing to break and explode, and one of the occupants was able to extinguish the wick of the device. MCRAE had been seen in the area 30-45 minutes prior to the incident. Police responded to the scene that evening, and returned a week later with agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE), finding a second Molotov cocktail under the residence. An examination of that second device yielded a fingerprint left by MCRAE. Under federal law, Molotov cocktails are classified as improvised incendiary bombs, which are destructive devices prohibited under federal law.
The Honorable Judge Stephanie D. Thacker, a judge from the Court of Appeals for the Fourth Circuit, sitting by designation, imposed a 5-year prison term, to be followed by a 3-year period of supervised release.
The case was investigated by the Laurinburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Anand Ramaswamy.
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Ridin’ High Proprietor Sentenced to 5 years of Probation for Distributing MarijuanaRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Van Hazinga, aka “Big John,” 42 years old, was sentenced today by U.S. District Judge Christina Reiss to 5 years of probation following his felony conviction for distributing marijuana, a Schedule I controlled substance. Van Hazinga agreed in his plea agreement to the forfeiture of $67,189 of drug proceeds seized from three of his properties, and also agreed to file amended tax returns for this undeclared income.
According to Court documents, Van Hazinga has been involved in the cultivation and distribution of marijuana in Chittenden County since at least 2004, utilizing his business Ridin’ High to facilitate those efforts. In 2009, Van Hazinga was convicted in state court of selling marijuana. In 2013, Van Hazinga was convicted in state court of felony marijuana possession for his possession of more than a pound of marijuana. In 2015, while on state probation, Van Hazinga was again convicted of felony marijuana possession for his possession of more than a pound of marijuana. Van Hazinga was on state parole at the time of his 2019 federal arrest.
During the summer of 2018, the Burlington Police Department (BPD), with assistance from the Drug Enforcement Administration (DEA), began an investigation into the distribution of marijuana for profit out of defendant Van Hazinga’s business, Ridin’ High, located at 2 Pearl Street in Burlington, Vermont. The investigation was spurred by community reports that individuals at the store were selling marijuana to juveniles. One woman reported that she worked as an interventionist, and had spoken to multiple boys between the ages of 13 and 15 who reported they had purchased marijuana at Ridin’ High.
An undercover BPD detective conducted five purchases of marijuana and/or THC-infused edible products. Law enforcement efforts revealed a potential grow operation at Van Hazinga’s residence in Underhill, Vermont; e-mail correspondence with Van Hazinga’s co-defendant revealed her willingness to sell a bulk order of THC-infused products, and links were discovered between Van Hazinga and a rural camp located in Keene, New York.
On July 24, 2019, law enforcement obtained federal search warrants for the Ridin’ High commercial location in Burlington, Van Hazinga’s residence in Underhill, Vermont, and the rural camp in Keene, New York. On August 5, 2019, the undercover BPD detective conducted a final controlled purchase of marijuana from defendant Van Hazinga, utilizing serialized currency during the transaction.
On August 6, 2019, BPD and DEA executed the search warrants for the Ridin’ High location, the Underhill residence, and the Keene camp. At the Ridin’ High location, agents seized three bags of suspected marijuana, nine jars of suspected marijuana, marijuana-growing literature, a marijuana grinder with residue, and two small digital scales. A large safe in the bathroom contained suspected marijuana, marijuana extracts, and THC-infused edibles. At the Underhill residence, agents discovered a suspected grow operation that laboratory testing revealed to be a mix of hemp and marijuana plants. $9,000 in cash was seized from Van Hazinga’s vehicle, and an additional $33,289 in cash was seized from inside the residence. Within the currency, agents located the serialized bills used during the August 5, 2019 controlled purchase from Van Hazinga. At the Keene camp, agents seized $24,900 in cash, 18 jars of suspected marijuana, a jar of suspected hallucinogenic mushrooms, five bags of suspected marijuana, and eight suspected marijuana plants.
United States Attorney Christina E. Nolan commended the investigative efforts of the Drug Enforcement Administration and the Burlington Police Department, and thanked the Vermont Air National Guard for their assistance.
“DEA has a sworn duty and responsibility to enforcing drug laws enacted by Congress, which make marijuana illegal,” said DEA Special Agent in Charge Brian D. Boyle. “DEA will continue to enforce federal laws as it pertains to our mission. This investigation demonstrates the strength of collaborative local, state and federal law enforcement partners in Vermont and our strong relationship with the U.S. Attorney’s Office.”
The United States was represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Van Hazinga was represented by Paul Volk, Esq.
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
Project Safe Neighborhoods Missoula County continues violent crime decrease for second yearRead the Press Release
MISSOULA—For the second straight year, murders, robberies and aggravated assaults in Missoula County have decreased as law enforcement continues investigating and prosecuting methamphetamine trafficking, firearms offenses and armed robberies through Project Safe Neighborhoods, announced federal, state and local prosecutors today.
Crime statistics show that in Missoula County, these violent crimes decreased by 9.2 percent in the 12-month period ending May 2020. Overall, violent crime has decreased 25.7 percent since PSN was launched in May 2018, and 85 fewer people were the victim of a violent crime than in the 12 months before PSN began.
PSN is a reinvigorated U.S. Department of Justice initiative that targets the most violent criminals in high-crime areas and works with federal, state, local and tribal law enforcement and community partners to reduce crime.
PSN Missoula County’s partners include the U.S. Attorney’s Office; Missoula County Attorney’s Office; Montana Department of Justice’s Prosecution Services Bureau, Highway Patrol and Division of Criminal Investigation; the Montana Department of Correction’s Adult Probation and Parole Division; the Missoula Police Department; the Missoula County Sheriff’s Office; Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI, Homeland Security Investigations and the U.S. Marshal’s Service.
"The continuing decline in violent crime in Missoula County is great news for the community. This focus on taking meth dealers and the most dangerous offenders off the street is working. But we're not done. We also must reduce demand for meth through a comprehensive prevention, treatment and diversion plan. I want to recognize the cooperation and hard work of all of our PSN partners for making Missoula County a safer place to live," U.S. Attorney Kurt Alme said.
“Our continued success in reducing violent crime in Missoula County is due to hard work, multi-agency collaboration, and targeted enforcement,” Montana Attorney General Tim Fox said. “I am proud of our city, county, state, and federal law enforcement officers and prosecutors and the great results we have achieved working together.”
"Working together with our law enforcement and justice partners is beginning to pay off. We’re bringing the highest risk offenders to justice while, at the same time, building a foundation for local drug treatment and prevention efforts. I am proud of our law enforcement team’s great work,” Missoula County Attorney, Kirsten Pabst said.
From 2011 to 2017, the City of Missoula’s violent crime rate had increased 49 percent. Methamphetamine was identified as a primary cause of the increase.
In the 24 months PSN has been in effect, Missoula’s murders, robberies and aggravated assaults have fallen 25.7 percent to 246 crimes.
Since May 1, 2018, the U.S. Attorney’s office has charged 73 defendants with federal meth trafficking, armed robbery and firearms crimes.
In addition, 60 pounds of meth, representing 217,440 doses and having an estimated $450,000 street value, have been seized in the federal cases. Law enforcement officers also have seized 65 firearms, including three semi-automatic assault-style rifles. The U.S. Marshals Service Violent Offender Task force has served 938 federal and state warrants on violent offenders in Missoula County.
Since May 2018, Missoula County Attorney's Office has charged 39 persons identified as high risk with charges including meth or heroin possession, assault with a weapon, burglary, deliberate homicide and strangulation.
In addition to continuing its enforcement strategy to further cut the violent crime rate by reducing the meth supply, PSN is working with a community coalition called Missoula Substance Abuse Connect. A coalition of more than 30 nonprofit and government organizations, coordinated by United Way of Missoula County, has formed to develop a community plan to reduce the demand for meth through prevention and treatment.
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Previously Deported Aggravated Felon Sentenced for Returning to U.S.Read the Press Release
ALEXANDRIA, Va. – A Front Royal man was sentenced late yesterday to ten months in prison for illegally reentering the United States after previously being deported following an aggravated felony conviction.
“Castillo Garcia was convicted of reckless driving and five separate drunk driving offenses in a seven-year period,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “After serving a prison sentence, he was removed from the United States, only to illegally return. Castillo Garcia has consistently demonstrated a complete lack of regard for the safety of others by repeatedly—at least five times—taking to the roads drunk, and has shown a blatant disregard for America’s state and federal laws over the course of two decades. Defendants like Castillo Garcia represent a significant threat to public safety, and cases such as this one are precisely why we prioritize criminal immigration prosecutions and value the critical federal, state, and local law enforcement, including Immigration and Customs Enforcement (ICE), collaboration here in the Eastern District.”
According to court documents, Jose Guillermo Castillo Garcia, 45, is a Salvadoran national who previously entered the United States illegally and was convicted of five DWIs and multiple felonies, one of which constituted an “aggravated felony” as defined by federal law, before being deported in 2007. Despite being barred from returning, Castillo Garcia clandestinely reentered the United States. In 2018, he was convicted of a sixth DWI in his absence after failing to appear in court in Fairfax County.
“Castillo Garcia repeatedly flouted the law, as evidenced by his multiple reckless and drunk driving convictions—each instance putting the community at risk—and by his choice to reenter the country after being ordered removed,” said Lyle Boelens, Acting Director of the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Washington Field Office.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle Boelens, Acting Director of the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney John C. Blanchard prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-14.
President’s Commission on Law Enforcement and the Administration of Justice Holds Hearing on Policing Culture and Community EngagementRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice continued its series of hearings on community engagement, with testimony from faith leaders, and held a hearing on policing culture. The hearings were conducted via teleconference and featured expert witnesses who provided testimony and answered questions from the commissioners.
On Tuesday, June 23, 2020, the commission received testimony from Robin Engel, Ph.D., Professor, University of Cincinnati; Michael Ranalli, Chief (Retired), Glenville, New York, Police Department; Hampton (Virginia) Police Chief Terry Sult; and Springboro (Ohio) Police Chief Jeff Kruithoff.
The panelists discussed policing culture and reasonable use of force. An overarching theme throughout the panel was the need to use evidence-based research to inform successful reforms regarding police use of force.
On Wednesday, June 24, 2020, the commission received testimony from Sheriff James McDonell (retired), Los Angeles (Calif.) County; Ronal Serpas, Superintendent of Police of the New Orleans Police Department (retired) and Professor with the Loyola University New Orleans Criminal Justice Department; Chief Robert White (retired), Denver Police Department; and Sheriff Mike Chitwood, Volusia (Fla.) County.
The panel focused on the use of force and culture change. The panelists discussed the importance of leading by example within the department, especially with regards to new officers; integrating community policing values throughout an entire academy curriculum instead of teaching it as a standalone course; acknowledging that while no single police incident represents an entire department, nothing undermines years of work developing community trust as quickly as incidents where police use unnecessary or excessive force; and learning from the successes of other departments and agencies.
On Thursday, June 25, 2020, the commission received testimony from Jeff Ballabon, CEO B2 Strategic, Washington, DC; Rabbi Jack Moline, Executive Director, Interfaith Alliance, Washington DC; and Imam Talib Shareef, President of Masjid Muhammad, The Nation's Mosque.
The panel focused on the relationship between religious minorities and law enforcement. The panelists discussed the importance of building relationships with law enforcement at a community level in order to change dynamics; the need for law enforcement to take steps at every level to investigate and prevent hate-based crime, as well as hold officers accountable for engaging in racial or religious profiling, targeting, and surveillance; and the value of breaking stereotypes and “challenging the narrative.”
For more information on the commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice
Audio recordings and transcripts of the hearings will be posted online once available.
Polk County Man Sentenced to More Than Ten Years for Drug TraffickingRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Antonie Latimore (36, Winter Haven) to 10 years and 10 months years in federal prison for conspiring to distribute cocaine base. Latimore had pleaded guilty on March 6, 2020.
According to court documents, the FBI received information that Latimore and others were distributing narcotics in Polk County. Between March 2 and July 20, 2019, Latimore sold crack cocaine to a confidential source multiple times. Latimore also negotiated to sell methamphetamine to the confidential source.
On August 10, 2019, the Florida Highway Patrol arrested Latimore for driving with a suspended license and found crack cocaine and other drugs in his car.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Pharmacist Pleads Guilty to Prescription Drug ConspiracyRead the Press Release
ALEXANDRIA, Va. – A licensed pharmacist who owned and operated CARE4U Pharmacy in Manassas pleaded guilty today to illegally distributing prescription drugs, including oxycodone, Adderall, and Xanax, by filling fake or fraudulent prescriptions.
According to court documents, between November 2016 and July 2018, George Appiah, 47, of Manassas, filled at least 128 fake or fraudulent prescriptions, including 85 prescriptions for oxycodone, brought to the pharmacy by his two co-conspirators (identified in court filings as CC-1 and CC-2). Appiah provided CC-1 and CC-2 the names and medical credentials of at least five unwitting doctors for use in forging the prescriptions, and provided templates of the doctors’ prescription pads, so that CC-1 and CC-2 could “Photoshop” the image and make the fake prescriptions look legitimate.
Appiah pleaded guilty to conspiracy to distribute controlled substances. He faces a maximum penalty of 20 years in prison when sentenced on October 23, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Barry M. Barnard, Chief of Prince William County Police, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea. Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-111.
Petersburg Man Sentenced for Burglarizing Post OfficeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Petersburg man has been sentenced in federal court for burglarizing the Petersburg Post Office with the intent to steal parcels for pecuniary gain.
Christopher Scott Manske, 38, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve four months in prison, followed by 150 hours of community service, after previously pleading guilty to burglary of a post office. As part of his sentence, Manske was also ordered to pay restitution to the victims in this case, as well as $2,100 in restitution to the U.S. Forest Service.
According to court documents, on Feb. 24, 2020, Manske broke into the Petersburg Post Office’s secured mail sorting area through a parcel locker. The investigation revealed that Manske forcibly entered the parcel locker by breaking the steel pole that was designed to prevent unauthorized access. While inside, Manske took approximately 70 parcels and placed them inside other parcel lockers. Manske then took the parcel keys with the intent to go back and retrieve those parcels so he could sell the contents. While exiting with the parcel keys, Manske activated the alarm system, triggering a law enforcement investigation.
Manske was arrested on Feb. 24, after a search of Manske’s boat revealed a number of opened parcels belonging to other people, as well as a stolen heater belonging to the U.S. Forest Service.
At the sentencing hearing, Judge Burgess stated the need to protect the public and to deter Manske from future criminal conduct. Following Manske’s prison term, he will have to comply with conditions of release such as submitting to a mental health and drug treatment assessment and will have to follow recommendations.
The U.S. Postal Inspection Service (USPIS) and the Petersburg Police Department conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack Schmidt of the U.S. Attorney’s Office for the District of Alaska.
New Orleans Attorneys Indicted for Tax FraudRead the Press Release
NEW ORLEANS, La. – United States Attorney for the Western District of Louisiana David C. Joseph announced that a federal grand jury in New Orleans returned an 11-count indictment today charging Jason R. Williams, 47, of New Orleans, and Nicole E. Burdett, 39, of Kenner, Louisiana, with conspiracy to defraud the United States, aiding and assisting in the preparation and presentation of false and fraudulent tax returns, and failure to file IRS Forms 8300 relating to cash received in trade or business.
According to the indictment, Jason R. Williams is the owner of Jason Rogers Williams &Associates, LLC Law Firm (JRWA), located in New Orleans. Williams also currently serves as a Councilman-at-Large on the New Orleans City Council. Nicole E. Burdett is an attorney at JRWA and performs administrative functions for the firm. Burdett is responsible for paying the law firm bills, receiving client payments, and inputting and maintaining the firm’s books and records in the accounting program “QuickBooks” and other software programs.
According to the indictment, Williams and Burdett conspired to reduce Williams’ tax liability for the 2013 through 2017 tax years by classifying personal expenses as business expenses on the “Schedule C” (Profit and Loss from a Business) portion of Williams’ tax returns. Specifically, for the 2013 through 2017 tax years, Burdett compiled QuickBooks information that included many personal expenses of Jason Williams and provided this false information to the tax preparer for the preparation of tax returns. Throughout the conspiracy, Burdett, at the direction of Williams, would instruct the tax preparer to artificially increase the business expenses on the Schedule C in order to further reduce Williams’ tax liability. After Williams and Burdett were satisfied with the tax liability amount, Burdett instructed the tax preparer to electronically file the returns with the IRS.
Throughout the course of the conspiracy, Williams’ and Burdett’s conduct caused fraudulent tax returns to be filed on behalf of Williams, which reflected inflated Schedule C business expenses in the amounts of approximately $200,000 for 2013, $90,000.00 for 2014, $170,000.00 for 2015, $140,000 for 2016, and $120,000.00 for 2017. These fraudulent tax returns reduced Williams’ tax liability in excess of $200,000.
The indictment further alleges that between June 2017 and August 2018, Williams and Burdett failed to file the required IRS Forms 8300 for receipt of cash payments over $10,000. On five separate occasions charged in the Indictment, the defendants received and failed to report cash payments in excess of $10,000 from clients for legal services, totaling $66,516.
If convicted, Williams and Burdett each face a maximum sentence of five years in prison on the conspiracy count, three years in prison on each false return count, and five years in prison on each count of failing to file Forms 8300. The defendants also face a period of supervised release, restitution, and monetary penalties.
Assistant United States Attorneys Kelly P. Uebinger and David J. Ayo of the Western District of Louisiana are prosecuting the case. The prosecution is the result of an investigation by the IRS-Criminal Investigation Division with assistance from the FBI. The U.S. Attorney’s Office for the Western District of Louisiana is prosecuting this case due to the recusal of the Eastern District of Louisiana U.S. Attorney’s Office.
The charges in the indictment are only accusations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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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.
Nampa Man Sentenced to Five Years for Distributing MethamphetamineRead the Press Release
BOISE - Alfredo Esparza, Jr., 49, of Nampa, Idaho, was sentenced in U.S. District Court to 60 months in prison for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Esparza serve four years of supervised release following his prison sentence. Esparza pleaded guilty to the charge on January 9, 2020.
According to court records, Esparza’s charge stemmed from an investigation into the West Side Loma gang that spanned from October 2018 to October 2019. Law enforcement used a confidential informant to purchase methamphetamine from Esparza, who has a history of drug dealing. According to court records, a federal grand jury indicted Esparza on November 13, 2019. Esparza has a lengthy criminal history including two prior convictions for delivering or possessing with intent to deliver a controlled substance. At the time he committed this federal offense, Esparza was on felony probation.
This case was investigated by Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state, and local agencies. These agencies include the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction, Bureau of Probation and Parole.
This indictment was also the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. 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. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Multiple-Time Convicted Monroe Felon is Sentenced to 10 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Fletcher Terrell Minor, 43, of Monroe, was sentenced June 24, 2020, by U.S. District Judge Terry A. Doughty, to 10 years in prison, a three-year term of supervised release following his release from prison, and forfeiture of the firearm related to this charge. Minor pled guilty on March 9, 2020, to possession of a firearm by a convicted felon.
On December 20, 2018, officers with the Monroe Police Department responded to a trespassing complaint on Outlet Road. The resident told the police department’s dispatch that Minor was armed with a weapon and was asleep by her front door. When officers made contact with Minor he fled. Minor was eventually detained and taken into custody. During Minor’s apprehension, a Hi Point, Model: C9 .9mm caliber Luger handgun fell from his possession.
It is a violation of federal law for a person previously convicted of a felony offense to possess firearms or ammunition. Minor has multiple prior felony convictions in Ouachita Parish that include possession of cocaine, attempted possession of PCP, battery of a police officer, possession of cocaine with intent to distribute, resisting an officer, and aggravated robbery with a deadly weapon (Dallas, TX).
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Monroe Police Department conducted the investigation. Special Assistant U.S. Attorney Michelle A. Thompson prosecuted the case.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative. PSN is 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. PSN plays a major role in the Department of Justice’s violent crime reduction strategy. 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. 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.
Moss Point Man Sentenced to 9 Years in Federal Prison Under Project EJECT for Armed Robbery of a BusinessRead the Press Release
Gulfport, Miss. – Antwone Malik Coleman Booker, 19, of Moss Point, was sentenced today by U.S. District Judge Sul Ozerden to 108 months in prison, followed by five years of supervised release, for armed robbery of a business and using a firearm during a crime of violence, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Booker was also ordered to pay restitution in the amount of $1,285 to victims and a $1500 fine.
On August 15, 2019, Antwone Malik Coleman Booker entered a Waffle House restaurant in Moss Point and pointed a black handgun at the cashier and demanded money. While the waitress was opening the cash register, Booker shot one round of ammunition from the firearm into the ceiling of the restaurant. After the waitress handed the money to Booker, he shot one additional round into the ceiling. Booker then fled the restaurant, but was arrested shortly thereafter.
Booker was indicted on September 10, 2019 and he pled guilty before Judge Ozerden on February 19, 2020.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Moss Point, Ellisville, and Pascagoula Police Departments. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
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.
Montana Resident Found Guilty of Smuggling Bald Eagle Feathers into ArizonaRead the Press Release
TUCSON, Ariz. – Today, United States District Court Judge James A. Soto found Dennis Raymond McPherron, 74, of Hamilton, Montana, guilty of illegally smuggling bald eagle feathers (and other feathers from protected species) into the United States, in violation of the Bald and Golden Eagle Protection Act. The case was tried before District Court Judge Soto in January. McPherron faces up to five years in prison and a $250,000 fine. Sentencing is scheduled for October 9.
The United States Fish and Wildlife Service conducted the investigation in cooperation with United States Customs and Border Protection. The United States Attorney’s Office, District of Arizona, Tucson, prosecuted the case.
CASE NUMBER: CR17-00242-JAS-EJM
RELEASE NUMBER: 2020-061_McPherron# # #
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.Meth Dealer, Mule and Distributor Plead Guilty in Atlanta-to-Macon Drug Trafficking OperationRead the Press Release
MACON, Ga. – Three defendants involved in a methamphetamine drug trafficking operation involving nearly 2,000 grams of “ice” methamphetamine pleaded guilty to federal criminal drug charges Thursday, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. Jose E. Ordez Avalos, 39, of Ellenwood, Georgia, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. Avalos faces a maximum sentence of life in prison, a $10,000,000 fine and five years supervised release. Alex Raymond, 43, of Warner Robins, Georgia, pleaded guilty to possession with intent to distribute methamphetamine and faces a maximum sentence of 20 years in prison, a $1,000,000 fine and three years supervised release. Albruce Green, 40, of Macon, is charged with conspiracy to possess with intent to distribute methamphetamine. Green faces a maximum sentence of 20 years in prison, a $1,000,000 fine and three years supervised release. All three defendants entered guilty pleas before U.S. District Judge Marc Treadwell, and sentencing dates have not been scheduled by the Court. There is no parole in the federal system.
“DEA agents and Butts County Sheriff’s deputies intercepted a large quantity of pure ice methamphetamine before it entered the Macon community. I have no doubt their efforts saved lives in Middle Georgia, and we owe these officers a debt of gratitude for their good work,” said U.S. Attorney Peeler. “Our office will prosecute all those engaged in pushing methamphetamine, heroin, opioids and other illegal, deadly drugs into our communities.”
“Drug distribution delivers misery to the community. DEA’s mission is about removing the supply before it gets to the consumer. This case was successful because of the collaborative efforts of our federal, state and local law enforcement partners and the United States Attorney’s Office,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
Methamphetamine obtained from Avalos in Atlanta was transported by Raymond for distribution by Green in Macon. The Drug Enforcement Administration (DEA) conducted surveillance on the drug trafficking operation in August 2018. On August 19, 2018, a Butts County deputy stopped Raymond’s vehicle for following too closely and weaving. The deputy’s canine alerted on the passenger side door of Raymond’s vehicle. During a legal search of the vehicle, 1990.8 grams of pure “ice” methamphetamine was found inside a Michelob Ultra beer box. The methamphetamine was provided by Avalos to Raymond for transport to Green in Macon.
This case was investigated by the DEA. Assistant U.S. Attorney Charles Calhoun is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Memphis Man Sentenced to 20 Years in Federal Prison for Distribution of Heroin and Fentanyl Resulting in DeathRead the Press Release
MEMPHIS, TN – Dwayne Tullous, 57, has been sentenced to 240 months in federal prison for distribution of heroin and fentanyl resulting in death. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on July 30, 2018, victim Larry House was found deceased in his Lakeland, Tennessee residence from a heroin and fentanyl overdose. Investigators from the Shelby County Sheriff's Office and the United States Postal Inspection Service responded to the scene and conducted an investigation which revealed that the victim had been visited by a drug dealer, Tullous, earlier that evening. Tullous sold the victim various amounts of black tar heroin and fentanyl. A few hours later, the victim died from using the heroin and fentanyl distributed to him by the defendant, Tullous.
Investigators with the Postal Inspection Service determined that Tullous received packages from the Los Angeles, California area to a house in Cordova. Upon further investigation and after execution of a search warrant, investigators recovered black tar heroin, fentanyl, a firearm, and oxycodone pills from Tullous' residence. The heroin and fentanyl found at Tullous' residence was wrapped in the same packaging as the substances found at the residence of the victim. An autopsy revealed that the cause of victim's death was a heroin and fentanyl overdose.
On March 12, 2020, Tullous pled guilty, admitting he caused the death of Larry House by distributing heroin and fentanyl to him in July 2018.
On June 25, 2020, U.S. District Court Judge Mark S. Norris sentenced Tullous to 20 years imprisonment followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Distribution of illegal narcotics is NOT a victimless crime, and poses an immense threat to public safety. The drug seller, at every level of distribution, is at the root of the pervasive cycle of drug abuse. Measured thus by the harm it inflicts upon the addict, and, through him, upon society as a whole, drug dealing of heroin and fentanyl in its present epidemic proportions is a grave offense of high rank. In order to prevent needless addiction, injury, violence, and death in our communities, we must act with urgency to stop and punish drug dealers that deliver this deadly poison to citizens in West Tennessee. This case demonstrates the significant penalty that we will use to hold dealers accountable, deter others from dealing death to our citizens, and save lives. We commend the outstanding investigative work of our federal and local law enforcement partners, and we hope this sentence will achieve some measure of justice for the House family."
Heroin and fentanyl are extremely dangerous substances that have caused the deaths and non-fatal overdoses of thousands of people every year. Fentanyl is 50 times more potent than heroin and a dosage less than a grain of table salt is enough to cause death. This year in Shelby County, over 200 people have died and over 2,000 people have suffered a non-fatal overdose as a result of the continued availability and distribution of heroin and fentanyl in our community. If you or someone you know is suffering from substance abuse or addiction, please call the Tennessee Redline for help at 1-800-889-9789, or visit the Memphis Area Prevention Coalition at https://memphisprevention.org for information and resources.
This case was investigated by the Shelby County Sheriff's Office and the United States Postal Inspection Service (USPIS).
Special Assistant U.S. Attorney Joseph Griffith prosecuted this case on behalf of the government. This case was part of the Heroin Initiative in collaboration with the Shelby County District Attorney General’s Office.
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Memphis Man Indicted for Fraud Scheme Targeting Nonprofit OrganizationsRead the Press Release
Memphis, TN– Jaime Walsh, 53, has been charged in an eight-count federal indictment for multiple forms of fraud, including wire fraud, mail fraud, bank fraud, and fraudulent claims against the government. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to the indictment, between June of 2013 and March of 2019, Walsh carried out a scheme to defraud various organizations including charities, nonprofit entities, and the Peace Corps. Walsh’s scheme was to make an online donation to an organization, contact the organization claiming the donation amount was in error, and ask for a refund to correct the error.
For example, Walsh would make an online donation of $4500 to an organization. He would then contact the organization, claiming he intended to donate only $45, and ask for a refund of $4455. The organization would issue the requested refund and Walsh would immediately withdraw the money from his account. Meanwhile, the original donation made by Walsh would be rejected due to insufficient funds and the targeted organization would suffer a complete loss of the refunded amount.
If convicted, Walsh faces up to 20 years imprisonment followed by three years of supervised release.
U.S. Attorney D. Michael Dunavant said, "Fraudulent schemes that steal precious resources from nonprofit victims represent the very worst acts of dishonesty and betrayals of trust. We commend our federal and state law enforcement partners for their outstanding investigation in this disturbing case."
This case was investigated by the U.S. Postal Inspection Service (USPIS), U.S. Secret Service, Tennessee Highway Patrol, and the Peace Corps Office of the Inspector General.
Assistant U.S. Attorney Scott Smith is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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McLoud Man Pleads Guilty to Unlawfully Possessing a Fully Automatic MachinegunRead the Press Release
OKLAHOMA CITY – Christopher Steven Ledbetter, 29, of McLoud, Oklahoma, has pled guilty to unlawfully possessing a fully automatic machinegun, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint, in March 2020, the Federal Bureau of Investigation (FBI) learned that Ledbetter might be in possession of a fully automatic machinegun. The FBI then reviewed publicly available materials on the internet associated with Ledbetter that depicted Ledbetter on multiple occasions shooting what appeared to be a fully automatic machinegun. The affidavit further indicates on June 4, 2020, the FBI encountered Ledbetter in Oklahoma City driving a 2017 Jeep Wrangler vehicle. In that vehicle, the FBI discovered a fully automatic AK-47 style carbine machinegun.
Federal law prohibits the possession, except under limited circumstances, of a fully automatic machinegun as defined in the National Firearms Act. The affidavit further indicates that the Bureau of Alcohol, Tobacco, Firearms and Explosives searched its federal licensing system. That search determined that Ledbetter does not have the required licenses to possess a machinegun.
Today, Ledbetter pleaded guilty to possessing the automatic machinegun in violation of federal law. At sentencing, Ledbetter faces a maximum penalty of ten years in prison, three years of supervised release, and a $250,000.00 fine. Sentencing will take place in approximately 90 days.
This case is a result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives Dallas Field Division, and the Oklahoma Highway Patrol, along with other law enforcement partners. Assistant U.S. Attorneys Matt Dillon and Jessica Perry are prosecuting the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
McKees Rocks Man Sentenced to 10 Years in Prison for Drug Trafficking CrimesRead the Press Release
PITTSBURGH, PA – Shawn Frank was sentenced to 120 months in prison for fentanyl, heroin, and cocaine trafficking crimes, United States Attorney Scott W. Brady announced today.
On June 25, 2020, Frank, 42, of McKees Rocks, was sentenced by United States District Judge David S. Cercone. Judge Cercone also sentenced Frank to serve six years of supervised release following his prison sentence.
Frank pled guilty earlier this year to distributing quantities of fentanyl and heroin in 2016 and conspiring to distribute cocaine in 2018. He was on state parole between 2016 and 2018 following a five to ten year prison sentence that was imposed in 2011 for possession with intent to deliver heroin. Prior to Frank’s federal convictions this year, he had been convicted of drug trafficking, most often involving cocaine or heroin, seven times in seven prior state prosecutions during the preceding 20 years.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the United States Postal Inspection Service, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, and the Pittsburgh Police Department conducted the investigation leading to the convictions and sentence in this case.
Mariah Ferry sentenced to 30 years in federal prison for kidnapping and brutal beating of two victims suspected of stealing drugs and moneyRead the Press Release
ALBUQUERQUE, N.M. – Mariah Ferry, 22, of Albuquerque was sentenced today in federal court in Santa Fe, New Mexico to 30 years in prison on charges related to the kidnappings and brutal assaults of two victims suspected of stealing drugs and money from the home of co-defendant, Chase Smothermon, 32, of Albuquerque.
Ferry pleaded guilty on Feb. 13 to kidnapping and conspiracy to kidnap, resulting in the death of J.S. According to Ferry’s plea agreement and other public court records, Smothermon, Ferry, and a third co-defendant, Jose Torrez, 48, of Albuquerque, and other co-conspirators took part in a scheme to retaliate against two victims who they believed stole marijuana from Smothermon’s home where he resided with Ferry. On Aug. 8, 2017, Torrez alerted Smothermon that J.S. was present at Torrez’s home. Smothermon went to Torrez’s home to retaliate against J.S. and try to get his drugs and money back. Ferry drove Smothermon to Torrez’s home where Smothermon and co-conspirators brutally beat J.S. with a baseball bat and the butt of a gun.
Smothermon and co-conspirators then put J.S. in the trunk of Ferry’s car and bound J.S.’s hands, ankles, and mouth with tape. Ferry drove Smothermon and J.S. to another co-conspirator’s home where J.S. died shortly thereafter. Ferry and Smothermon then mutilated J.S.’s body in a shed. Later the same day, Smothermon contacted M.T. under a ruse that Smothermon wanted to buy marijuana from M.T. When M.T. arrived at Smothermon’s home, Smothermon, Ferry and others bound, gagged and assaulted M.T. for hours. After several hours, two other co-conspirators escorted a bound and badly beaten M.T. out of Smothermon’s home and drove him to another location where M.T. was held overnight before M.T. was released. On Aug. 9, 2017, Ferry drove Smothermon and another co-conspirator to a rural area in New Mexico where they buried J.S.’s body in a shallow grave.
Smothermon pleaded guilty on Jan. 24 to kidnapping and conspiracy to kidnap, resulting in the death of J.S. Torrez pleaded guilty on Feb. 13 to conspiracy to kidnap, resulting in the death of J.S. Smothermon and Torrez are in custody awaiting sentencing. They face up to life in prison for each offense. However, under the terms of their plea agreements, should the sentencing court accept their plea agreements, Smothermon will receive a sentence between 40 to 60 years and Torrez will receive a sentence of 14 years.
The DEA and FBI investigated this case with assistance from the Albuquerque Police Department and Second Judicial District Attorney’s Office. The Narcotics section of the U.S. Attorney’s Office is prosecuting the case.
Maple Heights man charged with damaging by means of fire a parking lot attendant booth during May 30 demonstrationsRead the Press Release
Justin Herdman, United States Attorney for the Northern District of Ohio, announced today that Timothy James Goodner, age 19, of Maple Heights, has been charged with maliciously damaging or destroying by means of fire or explosion any building or property. According to the criminal complaint, Goodner was involved in an act of arson concerning the Shaia’s Parking Lot attendant booth on 1242 West 3rd Street on Saturday, May 30th, 2020.
“Today’s arrest demonstrates the continued resolve of federal law enforcement to identify, arrest, and prosecute those individuals responsible for the widespread damage in our downtown on May 30,” said U.S. Attorney Justin Herdman. “This defendant is alleged to have committed arson during the riot that followed an otherwise peaceful, Constitutionally-protected assembly of our neighbors. Let this arrest serve as a reminder to all those who were engaged in similar crimes on that day - we are going to find you, we are going to arrest you, and we are going to hold you accountable.”
According to the criminal complaint, Goodner and other persons gathered around an attendant booth in the West 3rd Street parking lot during the demonstrations on May 30th. Images and videos released from that day show a suspect setting fire to cardboard boxes and paper towels and then placing them inside the attendant booth. Goodner is then observed contributing to the fire by placing boxes and other combustible products inside the both to help accelerate the burning.
Afterwards, the Cleveland Division of Police released images and video of suspects committing various criminal acts from the demonstrations to the media. Goodner was identified via these images from numerous anonymous tips by his clothing and a visible tattoo.
Goodner was arrested and booked into the Cuyahoga County Jail on June 22, 2020 by the Ohio State Highway Patrol on an active warrant obtained by the Cleveland Police Department for aggravated arson.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
This case is being investigated by the Cleveland Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cleveland Division of Police. This case is being prosecuted by Assistant U.S. Attorney John Hanley. The U.S. Attorney’s Office for the Northern District of Ohio would like to acknowledge and thank the Cleveland FBI, Cuyahoga County Prosecutor’s Office and the Ohio State Highway Patrol for their assistance with this matter.
Man from Alto, New Mexico pleads guilty to federal kidnapping chargeRead the Press Release
ALBUQUERQUE, N.M. – Joshua Neil Bowen, 28, of Alto, New Mexico pleaded guilty on June 25 in federal court in Las Cruces, New Mexico to kidnapping.
According to Bowen’s plea agreement and other public court documents, he and four co-defendants abducted the victim from a travel center in Mescalero, New Mexico on April 4, 2019. Bowen and Roberto Cervantes, 25, of Chaparral, New Mexico each had a firearm at the time. Cervantes hit the victim in the face several times. They also tied and bound the victim in an attempted robbery.
Bowen and his co-defendants took the victim to Chaparral where the co-defendants tried to withdraw money from the victim’s bank account with a debit card. From there, some of the co-defendants traveled to El Paso, Texas, where Bowen took the victim to a bank. Bowen ordered the victim to pretend to be Bowen’s grandfather and change the PIN for the victim’s ATM card. After changing the PIN, Bowen transported the victim back to New Mexico. Some of the co-defendants obtained money from the victim’s bank account.
Bowen and his co-defendants checked into a hotel in Las Cruces on April 5, 2019, where they prevented the victim from leaving. Bowen and Brittany Priddy, 30, of Ruidoso, New Mexico left the hotel on April 7, 2019, and traveled to a residence. On April 8, 2019, the victim managed to call his son and tell him where he was. An officer from the Las Cruces Police Department responded and rescued the victim.
Priddy pleaded guilty on April 28. Derek Welborn, 30, of Ruidoso Downs, New Mexico pleaded guilty on April 30. Cervantes and Alison Comstock, 28, of Carrizozo, New Mexico pleaded guilty on May 19. All of the defendants are in custody awaiting sentencing.
The FBI investigated this case with the New Mexico State Police, Ruidoso Downs Police Department, Las Cruces Police Department and Dona Ana Sheriff’s Office. Assistant U.S. Attorneys Marisa A. Ong and Tilli M. Villalobos is prosecuting the case.
Man Sentenced to Prison for Gun Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to over one year in prison for his role in a conspiracy to straw purchase 31 firearms.
“Emmanuel Ndjongo illegally straw-purchased 31 firearms,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Only two of those firearms have been recovered, and the whereabouts of the remaining 29 firearms are unknown. Ndjongo’s conduct is the quintessential definition of firearms trafficking, and is precisely the type of criminal conduct we are pursuing with Project Guardian-DMV. It should be abundantly clear now to all: If you straw purchase firearms in the Eastern District of Virginia, you will be subject to felony prosecution. I want to commend the tremendous work of our investigative partners at ATF for their outstanding efforts on this important case.”
According to court documents, Ndjongo, 22, of Bowie, Maryland, and his then-girlfriend, Alexus Jordon, 23, of Alexandria, conspired to straw purchase 31 firearms from Federal Firearm Licensees (FFLs) in Virginia. Jordon purchased six of the firearms at FFLs in Virginia. Ndjongo used Jordon’s name to order the remaining firearms online from an FFL located in North Carolina, and had these firearms shipped to various FFLs in Virginia.
“Straw purchasing is a favored practice among criminals to illegally move firearms from a seemingly legitimate purchaser to individuals who use these weapons in the commission of violent crimes. Today’s sentencing affirms that there will consequences when lawbreakers engage in this behavior,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “ATF and our law enforcement partners will aggressively pursue those who engage in criminal straw purchasing and we applaud U.S. Attorney Terwilliger for his continued efforts to curb firearm violence in the Eastern District of Virginia.”
Once the firearms arrived in Virginia, Jordon picked up the firearms and gave them to Ndjongo, who sought to sell the firearms to other individuals. Local law enforcement in Washington, D.C. and Prince George’s County, Maryland have recovered two of the firearms unlawfully purchased during this conspiracy, both of which had altered or destroyed serial numbers.
Jordon was previously sentenced for her role in this straw purchasing conspiracy.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Nicholas U. Murphy II and Philip Alito prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-343.
Man Sentenced to Prison for Child Exploitation CrimesRead the Press Release
ALEXANDRIA, Va. – A man with citizenship in Lebanon and the United States was sentenced today to 10 years in prison for child exploitation offenses.
According to court documents, George A. Nader, 61, admitted that he arranged to transport a 14-year-old boy from Europe to Dulles International Airport for purposes of illegal sexual conduct in early 2000. Nader had met the boy in Prague, Czech Republic, and later brought him to his residence in Washington, D.C. Nader also admitted that, in September 2012, he possessed or accessed with intent to view video images of child sexual abuse while he was in New York.
Nader had previously been convicted of transporting child pornography into the Eastern District of Virginia in 1991.
In addition to his prison sentence, Nader was ordered to pay a fine of $25,000, and $150,000 in restitution to a minor victim.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Jay V. Prabhu prosecuted the case. Additional assistance was provided by Special Assistant U.S. Attorney Melissa L. Chong, Assistant U.S. Attorney Daniel Young, and former Assistant U.S. Attorney Laura Fong.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.
This case was investigated by the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state, and federal partners.
The United States Attorney’s Offices for the Eastern District of New York, the District of Columbia, and the Northern District of California provided valuable assistance to the investigation, as did the Czech National Police, the Pacific Grove Police Department in California, and the FBI’s San Francisco and New York Field Offices.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-201.
Man Sentenced to Federal Prison for Stealing Trade Secrets and Online Extortion of Pensacola CompanyRead the Press Release
PENSACOLA, FLORIDA – Timothy J. Smith, 43, of Mobile, Alabama, was sentenced to 18 months’
imprisonment late Wednesday afternoon in the United States District Court in Pensacola on charges
of theft of trade secrets and interstate extortionate communications. Lawrence Keefe, United States
Attorney for the Northern District of Florida, announced the sentencing today.During the trial, a jury received evidence that Smith was a software engineer in Mobile, Alabama.
StrikeLines, the victim in the case, is a Pensacola based company that uses commercial side scan
sonar equipment to locate fishing reefs in the Gulf of Mexico and sells the coordinates using an
interactive map on their website. StrikeLines also provides public coordinates for free to those
interested in finding valuable spots to fish in the Gulf.The evidence showed that between April and November 2018, Smith obtained private information valued
at hundreds of thousands of dollars from the local company by using sophisticated cyber techniques
in order to gain the trade secrets and decrypt information of the company from its website. After
hearing how Smith stole private sonar coordinates of reefs, the jury received testimony and
exhibits showing how Smith then tried to extort the two owners of StrikeLines for more valuable
information. During this entire time, the victims did not know Smith’s identity or why he was
trying to harm them. Federal and state law enforcement were able to trace all the criminal acts
back to Smith in Mobile where he committed the cyber theft against the Pensacola company.At sentencing, United States District Judge M. Casey Rodgers announced that she thought Smith’s
acts were based upon “spite” and “arrogance.” In addition to his term of imprisonment, Judge
Rodgers sentenced Smith to a one-year term of supervision once released from custody. Smith was
also ordered to forfeit all the electronic devices he utilized to commit his crimes.“The U.S. Attorney’s Office takes very seriously cyber crimes of all kinds, ranging from protecting
our national security to the secrets of private companies,” said U.S. Attorney Keefe. “In our
increasingly online society, cyber security is vital to all of us as we conduct Internet
transactions and conversations so that we can be confident our identities and personal
information are protected. Our office is pleased that the jury held the defendant to account for
victimizing a small local business.”“This is the first time we’ve investigated a case like this and it most likely won’t be the last,”
said FDLE Pensacola Special Agent in Charge Jack Massey. “I applaud our FDLE agents and the
U.S. Attorney’s Office for always working to stay at the forefront of technology and one step ahead
of the bad guys.”This case resulted from an investigation by the Florida Department of Law Enforcement, the Federal
Bureau of Investigation, and the Escambia County Sheriff’s Office. Assistant United States Attorney
David L. Goldberg prosecuted the case."Trade secrets are the cornerstone of American innovation and a driver of the nation's economy,"
said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "When a corporation
invests in developing new products and processes, the theft of those developments is a clear threat
to that company's future. The FBI will continue to work vigorously alongside our partners at FDLE
and the U.S. Attorney's Office to combat intellectual property theft and bring those responsible to
justice."The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Madison Man Charged with ExtortionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today a federal criminal complaint charging Devonere Johnson, 28, with extortion in connection with threats made to Madison businesses this week. Johnson, who was arrested on state charges earlier this week, will make an initial appearance in U.S. District Court in Madison on a date and time to be determined.
The complaint charges Johnson with attempting to obtain money and property by consent induced by the threatened use of force, violence, and fear.
The complaint alleges that on June 22, Johnson threated that the windows of a business would be destroyed unless a person associated with the business made a payment to Johnson’s Venmo account. The second count of the complaint alleges that on June 22, Johnson threatened to shut down and destroy a second business unless Johnson and his associates were provided free food and beverages.
“Those who attempt to take advantage of recent events to extort local businesses under the guise of community activism will be vigorously prosecuted,” said U.S. Attorney Blader. “All citizens have a right to feel safe within their communities. Extortion is not activism, it is a crime and it will not be tolerated.”
If convicted, Johnson faces a maximum penalty of 20 years in federal prison on each count. The charges against Johnson are the result of an investigation by the Federal Bureau of Investigation and the Madison Police Department.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Macy Couple Sentenced for Abuse of Foster ChildRead the Press Release
United States Attorney Joe Kelly announced that Charles Neil Parker, 39, and Krista Parker, 36, were sentenced today in federal court in Omaha for multiple counts of intentional child abuse. United States District Judge Robert F. Rossiter, Jr. sentenced Charles Neil Parker and Krista Parker each to 72 months’ imprisonment. There is no parole in the federal prison system. After their releases from prison, Charles Neil Parker and Krista Parker will each serve an 18-month term of supervised release.
In September 2018, officers responded to a residence in Macy, Nebraska, after receiving a report that a party guest at the residence had observed a child locked in the basement. Officers located the then-nine-year-old victim in a locked utility room in the basement. The door to the room was secured with an eye-hook latch on the outside and had a contact alarm that sounded when the door was opened. Officers observed that the room had a concrete floor, no windows, and no ventilation. The victim had two urine-soaked blankets on the floor to sleep on. The floor and walls were also soiled with urine and feces. The officers observed two toys, an empty chip bag, and an empty soda bottle. The wall contained stick figure drawings and tally marks. The door had scratch marks dug into it on the inside.
Krista Parker was located intoxicated and asleep in another room of the house. During an interview the next day, Krista Parker first stated that the victim must have wandered into the room and gotten locked in by mistake, but later admitted to locking the victim in the room because she wanted to “have one night of fun” after a stressful week at work. Krista Parker had sent her biological children to their grandmother’s house for the night. Charles Neil Parker could not be located on the night of the report, but during a subsequent interview admitted that the Parkers locked the victim in the room sometimes due to his behavior.
The victim, who suffers from cognitive delays and is believed to be on the autism spectrum, reported that he always slept and ate in the room and was unable to leave the room to use the bathroom. The victim was identified as a foster child placed in the Parkers’ care by the Omaha Tribe Children and Family Services. At the time, Krista Parker was employed with Children and Family Services as a case aid.
Judge Rossiter described the Parkers’ treatment of the victim as “horrible” and “unforgiveable.”
United States Attorney Joe Kelly stated, “Today justice was done for one of the most vulnerable victims—a child placed with a couple who saw an opportunity to make money while continuing to exploit a child who was unable to cry out for help.”
FBI Special Agent in Charge Kristi Johnson says the FBI agents who investigate violent crime in Indian Country are passionate about the tribal communities they serve. “Once the Omaha Nation Law Enforcement Services responded to the 911 call and arrested Krista Parker on local charges, the FBI immediately started investigating. Their work resulted in federal charges and today’s federal sentences against Parker and her husband.”
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
Local Man Arrested for Lying About Marion Cross Burning, Interfering with Fair Housing Based on RaceRead the Press Release
ABINGDON, VIRGINIA – James Brown, of Marion, Virginia, was arrested this afternoon and charged with lying to federal agents about his involvement in the burning of a cross on the front lawn of an African-American woman’s home and criminal interference with fair housing based upon the victim’s race. United States Attorney Thomas T. Cullen and Neil L. Mathison, Acting Special Agent in Charge of the FBI’s Richmond Division made the announcement.
“The frightening act at the center of today’s complaint—a racially motivated cross burning—interfered with the victim’s federally protected right to fair housing,” U.S. Attorney Cullen stated today. “Acts of violence, threats, and other forms of intimidation prompted by racial animus are serious federal crimes, and we will continue to work closely with the FBI to hold offenders accountable.”
“The FBI is committed to protecting all citizens, and will aggressively investigate acts of intimidation or violence against anyone based on race or ethnicity,” Acting Special Agent in Charge Mathison said today. “We thank the Marion County Police Department, the Smyth County Sheriff's Office and the United States Attorney's Office's Western District of Virginia for their swift and direct attention to this incident.”
Brown, 40, was arrested today on a federal criminal complaint charging him with lying to federal agents and criminal interference with fair housing based upon the victim’s race.
According to court documents, on June 14, 2020, at approximately 12:55 a.m., the Marion Police Department received a report of a burning cross in the front yard of an African-American family, one of whom had organized a civil rights protest the day before. In the following days, working with the FBI, investigators learned of the involvement of Brown. When questioned by investigators if he had anything to do with the cross-burning incident, Brown allegedly lied. Witnesses interviewed during the investigation stated that Brown admitted to the cross burning and used racial epithets when referring to the African American family.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Marion Police Department, and the Smyth County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Lexington Man Sentenced to 87 Months for Possession of a Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky. — Clint Dion Davis, 39, of Lexington, was sentenced today, to 87 months in federal prison, by United States District Judge Danny C. Reeves, for possession of a firearm by a convicted felon.
According to his plea agreement, in April 2019, officers with the Lexington Police Department, initiated a traffic stop on a vehicle occupied by Davis. Davis admitted to the officers that he was in possession of a firearm. Officers located a Sig Sauer .40 caliber pistol on his person. Davis has previously been convicted of a felony offense and was prohibited from possessing a firearm.
Under federal law, Moberly must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years. Davis will also be required to pay a $15,000.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Jeffersonville Man Sentenced to 78 Months for Firearm Offenses and Drug TraffickingRead the Press Release
LEXINGTON, Ky. - A Jeffersonville, Kentucky, man, Ryan Keith Herndon, 30, was sentenced on Friday to 78 months in federal prison, by U.S. District Judge Karen Caldwell, for selling a firearm to a convicted felon, possessing a firearm as a convicted felon, and distributing a mixture of heroin, valeryl fentanyl, fentanyl, and methamphetamine.
According to his plea agreement, Herndon admitted that on May 9 and 10 he sold two firearms to a Confidential Informant (CI), who Herndon knew to be a convicted felon at the time of the transactions. Herndon further admitted that he was also a convicted felon and prohibited from owning a firearm. Herndon also admitted to arranging the purchase of and providing various narcotics mixtures to another CI, on May 21 and 22, 2019.
Under federal law, Herndon must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years, upon his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division, and Chief Terry Landrum, Mt. Sterling Police Department, jointly made the announcement.
The investigation was directed by ATF, with the assistance of the Gateway Area AHIDTA Task Force. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Jackson County Man Sentenced to 5 Years in Federal Prison for Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
Gulfport, Mississippi – Nicholas Brown, Jr., 25, of Jackson County, Mississippi was sentenced today by U.S. District Judge Sul Ozerden, to 60 months in federal prison, followed by 5 years of supervised release, for possession of a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Brown was also ordered to pay a $5,000 fine.
On December 21, 2018, Brown was arrested on multiple, unrelated warrants. During an investigation, multiple firearms, cash and marijuana were recovered in the residence where Brown was living. Brown admitted that his fingerprints would be found on all of the firearms and that vacuum sealed bags found in the residence were from marijuana that he purchased and repackaged for sale. The investigation also revealed text messages that indicated Brown was involved in the distribution of controlled substances and photos of Brown with controlled substances and firearms.
On June 12, 2019, Brown was charged in a federal criminal indictment. He pled guilty before Judge Ozerden on December 20, 2019, to one count of possession of a firearm in furtherance of a drug trafficking crime
The case was investigated by the ATF and the Gautier Police Department. It was prosecuted by Assistant U.S. Attorney Shundral Cole.
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.
Insurance Broker Arrested, Charged with Defrauding Insurance Companies and Individual Investors Out of $1-Million DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Brian Bartz, 38, of Rochester, NY, was arrested and charged by criminal complaint with wire fraud, attempted wire fraud, and aggravated identity theft. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that over the past five years, the defendant has been employed as an insurance broker by several different life insurance companies including: the Benjamin Hollamby Agency, which sold life insurance policies on behalf of Nationwide Life Insurance Company; the Banker's Conseco Life Insurance Company; Mass Mutual Life Insurance Company; and the Lavoro Group via Mass Mutual, located in Rochester. The general practice of these companies was to offer monetary commissions and/or bonuses to their agents when agents sold life insurance policies.
According to the complaint, Bartz would submit false applications for life insurance policies to the insurance companies on behalf of individuals who were not aware of these applications. The applications included individuals' means of identification without their knowledge or consent. In order to avoid detection, the defendant used various victims' bank accounts to pay the premiums for the unauthorized policies. Between 2015 and 2020, Bartz defrauded or attempted to defraud a number of life insurance companies and dozens of investors out of more than $950,000.
The complaint further states that some of the defendant’s conduct was discovered after his departure from the insurance companies. For instance, after he left the Benjamin Hollamby Agency in February 2018, Nationwide conducted an annual audit, which revealed that a disproportionately large number of life insurance policies sold by Bartz had lapsed due to policy holders failing to pay the required premiums. As a result, Nationwide performed an internal investigation and determined that many of the lapsed policy holders had never given the defendant authorization to apply for a policy on their behalf.
In October 2019, investigators executed a search warrant on the contents of the defendant’s personal email, which he used to effectuate his scheme. That review revealed that, on multiple occasions, Bartz received emails from Nationwide that were addressed to and intended for prospective policy holders but were sent directly to the defendant’s email address. The emails contained a link to a website application that prospective policy holders were supposed to complete, electronically sign, and submit to Nationwide. These emails were sent shortly before Nationwide received completed applications for these individuals. Investigators believe that the defendant completed the applications and submitted them without the victims' knowledge or consent. In total, Bartz fraudulently submitted approximately 150 policy applications on behalf of approximately 120 individuals to Nationwide and, as a result, Nationwide paid out approximately $250,000 in commissions and bonuses that it otherwise would not have paid.
The defendant continued to engage in this scheme of submitting false life insurance policy applications, collecting commissions for the sale of those policies, and using victim bank accounts to pay the policy premiums after he left the Benjamin Hollamby Agency and Nationwide:
• At Banker's Conseco, Bartz allegedly fraudulently submitted approximately 29 policy applications on behalf of approximately 22 individuals, attempting fraudulently to obtain approximately$70,000 in commissions and bonuses. Banker's Conseco discovered the fraudulent scheme in time to avoid making the payments.
• At Mass Mutual, the defendant fraudulently submitted approximately 138 policy applications on behalf of approximately 10 individuals, attempting fraudulently to obtain approximately $110,000 in commissions and bonuses. However, Mass Mutual discovered the fraudulent scheme in time to avoid making the payments.In addition to defrauding insurance companies, Bartz attempted to defraud individual victims through a fraud scheme commonly known as a Ponzi scheme. The defendant targeted individuals that he either already had years-long relationships with as their life insurance agent or who were referred to Bartz as a trusted life insurance/investment agent. While working at the life insurance companies, the defendant began to persuade individuals to make premium payments to him directly instead of to the life insurance company with which they had or believed they had a policy. In addition, Bartz represented himself as an investment advisor and convinced victims to invest their money in investment funds that he controlled, which, in fact, did not exist. To avoid being detected, the defendant used a small portion of incoming new investor monies to make promised payments to earlier investors. Bartz is accused of defrauding individual investors out of approximately $530,000.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 25 was:
Cheyenne Willow Ironshell, 22, of Butte, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Ironshell faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Ironshell was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 20-31.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 25 was:
Joshua Patrick Vanatta, 30, of Bainville, on charges of prohibited person in possession of ammunition and possession of a destructive device. If convicted of the most serious crime, Vanatta faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Vanatta was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-40.
Jalissa Haley Fern Spotted Bear, 31, of Wolf Point, on charges of robbery and assault with intent to commit robbery. If convicted of the most serious crime, Spotted Bear faces a maximum 15 years in prison, a $250,000 fine and three years of supervised release. Spotted Bear was released pending further proceedings. The Fort Peck Department of Law and Justice investigated the case. Pacer case reference. 20-28.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illegal possession of ammunition results in maximum federal prison sentence for previously convicted felonRead the Press Release
BRUNSWICK, GA: A gang member and convicted felon will spend the next decade in federal prison after sentencing in U.S. District Court.
Wilbert Lee Stephens Jr., a/k/a “Lil Bill,” a/k/a “Wild Bill,” 28, of Morrow, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood to 120 months in prison – the maximum for the offense, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Stephens pled guilty to an Information charging him with Possession of Ammunition by a Convicted Felon. After completion of his incarceration, Stephens will be required to serve three years of supervised release. There is no parole in the federal system.
“As a convicted felon with a long history of violent offenses, Wilbert Stephens was prohibited under federal law from possessing firearms or ammunition,” said U.S. Attorney Christine. “His history of sociopathic behavior amply demonstrates that he shouldn’t be anywhere near firearms – or free society.”
According to court documents and testimony, Stephens was pulled over for speeding in excess of 100 mph by a Georgia State Patrol trooper who smelled the odor of marijuana in the vehicle. A subsequent search discovered nearly a pound of marijuana, an Ak-47 rifle on the back seat, and ammunition in Stephens’ pocket.
Stephens, who was on state probation, was arrested and later indicted related to a criminal drug trafficking conspiracy. During the investigation he was determined to be a member of the Gangster Disciples criminal street gang.
“Stephens had a chance to turn his life around while on probation but instead chose to commit further crimes, proving that he has not learned from his prior convictions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “He will now go back to prison where he can no longer be a threat to society.”
This investigation took place under the umbrella of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
The case was investigated by the FBI, the Georgia State Patrol and the Glynn County Police Department, and prosecuted for the United States by Assistant U.S. Attorney Jennifer Kirkland.
Hartford Man Sentenced to Federal Prison for Narcotics Distribution and Firearm Possession OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DYZHAE RICHARDSON, 23, of Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton to 24 months of imprisonment, followed by three years of supervised release, for narcotics distribution and firearm possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in July 2019, after a spate of gun violence in Hartford, the FBI’s Northern Connecticut Gang Task Force, DEA, Hartford Police Department and other law enforcement agencies initiated an investigation targeting gang-related drug distribution and associated violence in north Hartford. During the investigation, investigators made two controlled purchases of heroin/fentanyl from Richardson in August and September 2019. Richardson was on state probation at the time of these drug sales.
Richardson was arrested on September 13, 2019. On that date, a court-authorized search of his residence revealed a loaded Taurus G2C 9mm handgun, additional loose rounds of 9mm ammunition, approximately 100 wax folds of heroin, a quantity of crack cocaine and approximately $2,500 in cash. A search of Richardson’s person also revealed approximately $1,000 in cash.
Richardson’s criminal history includes felony convictions for narcotics and firearm possession offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Richardson has been detained since his arrest. On January 21, 2020, he pleaded guilty to one count of possession with intent to distribute heroin, fentanyl and cocaine base (“crack”), and one count possession of a firearm by a previously convicted felon.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson as 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 neighborhoods safer for everyone.
Greensboro Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A Greensboro, North Carolina, business owner was sentenced to 18 months in prison yesterday for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Elizabeth Wood, 40, and her mother Rebecca Adams, 57, operated a temporary staffing businesses in Greensboro under the names A & R Staffing Solutions, Inc., Wood Executive Services Inc., and Adams Staffing Enterprises Inc. Wood and her mother withheld federal and state taxes from employees’ paychecks but did not pay those taxes over to the IRS or the State of North Carolina. In 2015, Wood pleaded guilty to embezzling employee state tax withholdings and was sentenced to prison. After her release, Wood resumed her role at the staffing business where she continued to withhold federal taxes from employees’ paychecks, but again did not pay those taxes over to the IRS. She also did not file with the IRS the required quarterly payroll tax return.
On Feb. 5, 2020, Wood and her mother, Adams, pleaded guilty to failing to pay over employment taxes. Adams is scheduled to be sentenced on July 9, 2020.
In addition to the term of imprisonment, U.S. Senior District Judge N. Carlton Tilley Jr., ordered Wood to serve three years of supervised release and to pay approximately $2,338,766 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Frank Chut, who are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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