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14 August 2020
California Man Charged with Investment FraudRead the Press Release
CAMDEN, N.J. – A California man has been arrested for defrauding victims in New Jersey through an investment scheme, U.S. Attorney Craig Carpenito announced today.
Christopher Glynn, 57, of Burbank, California, was indicted in August 2019 on seven counts of wire fraud and four counts of money laundering. After evading law enforcement for nearly a year, Glynn was arrested in Medford, Oregon, and is expected to make his initial appearance before a judge in the District of Oregon later this afternoon.
According to the indictment:
In 2014, Glynn maintained a variety of corporate entities, including U.S. Grant Distribution Group, PG Philanthropic Initiative, Perrarus Global Philanthropic Initiative, and others. Glynn also claimed affiliation with an international trust that purportedly was funded with billions of dollars, whose stated purpose was to “aide in the economic recovery of each of the individual US States, as well as the United States of America as a whole.”
Relying on the air of legitimacy created by his various entities and the international trust, Glynn approached two victims in Vineland, New Jersey, and offered them a “once in a lifetime opportunity” to invest in a “business development loan” related to the international trust. Glynn told the victims that this business development loan would be used for authorized business and legal expenses related to his entities and the international trust. The loan also would be used for expenses related to an animal care foundation and shelter that Glynn was helping the victims to set up, in memory of the victims’ recently deceased family member. Glynn assured the victims that the international trust would guarantee their business development loan, the loan would generate specific returns for the victims, and the victims could use the returns to fund their animal care foundation and shelter.
As part of his fraudulent scheme, Glynn sent emails and other correspondence and contracts to the victims. Glynn also arranged for conference calls between himself, his associates, and the victims, including one call that purportedly included “a direct representative from the NSA (National Security Agency), and a representative from either DHS (Department of Homeland Security) or the FBI.” Glynn took these steps in order to convince the victims that they were investing in a legitimate business opportunity.
Glynn ultimately directed the victims to wire funds to various bank accounts that Glynn controlled, in order to fund the “business development loan.” The victims did so, relying on Glynn’s representations about how the funds would be used.
Instead of using the loan in the manner he had promised, however, Glynn and his associates misappropriated the victims’ loan money and used it for personal expenses and other expenses that were unrelated to any charitable or business purpose that the victims sought to advance or that Glynn promised to achieve.
Glynn also took out credit cards in the name of the victims’ animal foundation, which he promised that he and his associates would only use for authorized expenses related to that foundation. Instead of using the credit cards in the manner he had promised, Glynn and his associates used the credit cards for retail items and other unauthorized personal expenses and incurred late fees.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The money laundering counts each carry a maximum potential penalty of 20 years in prison and a $500,000 fine or twice the value of the property involved in the offense.
U.S. Attorney Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bourne Man Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A Bourne man was indicted yesterday by a federal grand jury on charges of receipt and possession of child pornography.
Bryan C. Mileikis, 33, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Mileikis was arrested on July 1, 2020 and charged by criminal complaint.
According to the charging documents, on June 11, 2019, law enforcement executed a search warrant at Mileikis’ home and seized an iPhone belonging to Mileikis. A forensic examination of the phone revealed images and videos depicting child pornography.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Bourne Chief of Police Dennis Woodside made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Biloxi Man Pleads Guilty to Illegally Possessing Firearm as Drug UserRead the Press Release
Gulfport, Miss. – Anthony T. Smith, Jr., 20, of Biloxi, pled guilty today before U.S. District U.S. District Judge Sul Ozerden to one count of possession of a firearm by an unlawful drug user, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation, Mississippi Field Office.
On December 26, 2019, Biloxi Police officers executed a search warrant on the Biloxi residence of Anthony Smith, Jr. Once inside the residence, the investigators made contact with Smith who was in a bedroom. They also found a large quantity of marijuana and three firearms, including one sawed-off shotgun. Smith was interviewed by investigators and asked about the large quantity of marijuana found in his bedroom. He admitted that he was a daily marijuana user and that he had been smoking every day for the last five to six years.
Anthony Smith, Jr. will be sentenced on November 19, 2020 by Judge Ozerden, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Erica Rose.
Benton County Drug Dealer Sentenced to 13 Years for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, TN – Kelvin Melton, 43, a Big Sandy, Tennessee resident, has been sentenced to 156 months imprisonment for possession with intent to distribute methamphetamine. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in Court, during an undercover operation in June, 2017, Henry County Sheriff’s Deputies developed Melton as a suspect distributing methamphetamine in the Western District of Tennessee. Based on information obtained from a confidential informant, deputies made five separate drug purchases from Melton. The total methamphetamine amounted to over 10 grams of actual methamphetamine.
This case was investigated by the Henry County Sheriff’s Office, the Drug Enforcement Agency, the Tennessee Bureau of Investigation and the Paris, TN., Police Department.
On August 11, 2020, U.S. District Court Chief Judge S. Thomas Anderson sentenced Melton to 156 months in federal prison followed by four years supervised release. There is no parole in the federal system.
U.S. Attorney Dunavant said, "Meth distribution creates havoc and jeopardizes public safety, especially in small rural communities. Drug dealers can no longer hide in any part of the Western District of Tennessee, and this sentence demonstrates our commitment to remove poison peddlers from our streets."
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Attorney Sentenced in International Securities Fraud SchemeRead the Press Release
BOSTON – An attorney was sentenced yesterday in federal court in Boston for his role in an international securities fraud scheme that sought to generate $15 million in fraudulent proceeds.
Milan Patel, 50, a resident of Minnesota, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 15 months in prison and ordered to pay a fine of $50,000. In February 2019, Patel pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.
From 2013 to 2018, Patel and co-conspirators Morrie Tobin, Matthew Ledvina and Roger Knox conspired to disguise their ownership and control of various microcap securities, and to employ paid promotional campaigns and manipulative trading techniques to artificially inflate the price and trading volume of those stocks so that Tobin and others could secretly sell their shares at a substantial profit. Patel, together with Ledvina, helped Tobin create shell companies to disguise Tobin’s control of the shares, enabling Tobin to sell the shares to unsuspecting investors.
Tobin pleaded guilty in February 2019 and was sentenced yesterday to one year and one day in prison and ordered to pay a fine of $100,000 and forfeiture of $4 million. Ledvina was sentenced in June 2020 to 30 months of probation and ordered to pay a fine of $50,000. Knox previously pleaded guilty and is currently scheduled to be sentenced on Sept. 30, 2020.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. The Boston regional office of the SEC provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen and James R. Drabick of Lelling’s Securities, Financial and Cyber Fraud Unit are prosecuting the case.
Ariel Quiros Pleads Guilty to Fraud Charges Related to the Jay Peak EB-5 AnC Vermont Project in Northeast VermontRead the Press Release
The United States Attorney’s Office announced that today Ariel Quiros, 64, of Key Biscayne, Florida, pleaded guilty before Chief Judge Geoffrey W. Crawford in United States District Court in Burlington to three felony charges in connection with his involvement in the Jay Peak Biomedical Research Park EB-5 investment project, also called the AnC Vermont project.
Quiros pleaded guilty to conspiring with co-defendants William Kelly, Jong Weon (Alex) Choi, and William Stenger in a multi-year wire fraud scheme to defraud immigrant investors seeking green cards through the EB-5 program. He also pleaded guilty to money laundering and to concealing material facts in a matter within the jurisdiction of a federal agency, namely United States Citizenship and Immigration Services (USCIS), which oversaw the EB-5 process.
During the plea hearing, Quiros admitted to a lengthy statement of facts. That factual statement was appended to the written plea agreement filed with the Court last week. In sum, Quiros admitted participating in a scheme conceived in 2011 and carried through until he lost control of the project in April 2016. The AnC Vermont project, managed by Quiros and Stenger, was designed to raise $110 million from 220 immigrant investors in order to build and operate a biotechnology company on a property in Newport. From 2012 to 2016, Quiros and his co-defendants obtained approximately $85 million, plus approximately $8 million in “administrative fees", from approximately 169 immigrant investors in the AnC project. Under the EB-5 program created by Congress, immigrant investors could obtain lawful permanent residency (green cards) by investing $500,000 each in a United States business that would create ten jobs per investment. Pursuant to federal law, the AnC project was regulated and monitored by USCIS and the Vermont Regional Center, a part of state government.
Quiros admitted that the scheme involved misleading AnC investors about important information, including how investor money would be used, the timing of job creation for the project, and Choi’s role in the project. For example, Quiros knew that investors were given a use-of-funds chart that contained a number of misrepresentations about the amount of funds Quiros and Choi planned to receive. Moreover, as the defendants raised investor money, Quiros used investor funds for purposes unrelated to the project, including the payoff of a loan at Raymond James and as collateral for a separate loan at Citibank. Quiros also acknowledged that he participated in concealing this misuse of funds.
Quiros further admitted that the scheme included misrepresentations about the timing of the jobs that would be created by the project and the business revenue that would be generated from the project. Marketing the project to immigrant investors depended on job creation and future revenue, since the defendants emphasized their ability to satisfy the job creation standards under EB-5 law and repay immigrant investors. Quiros understood that his co-defendants devised job and revenue projections based on the number of jobs needed to obtain project approval from USCIS, and Quiros did not inquire whether they had a viable plan to actually create those jobs or achieve those revenues. AnC Vermont would supposedly rent clean rooms, market stem cell therapies, and manufacture artificial organs. Quiros admitted that investors were deceived in regard to all three facets of the future business.
In addition to the wire fraud conspiracy charges, Quiros admitted using AnC investor funds for personal expenses, specifically a $6 million payment to the IRS in early 2015 funded by the Citibank loan described above. In addition, Quiros helped conceal from the Vermont Regional Center that Choi, who was deeply involved in the project, was being investigated in Korea for financial crimes.
In the plea agreement, Quiros agreed to cooperate in the government’s ongoing matters. The plea agreement caps Quiros’s jail sentence at 97 months, so long as he abides by the terms of the agreement. The government agreed that it would not recommend a fine or forfeiture, but instead focus on seeking a restitution order for victims. The government requested that the Court delay Quiros’s sentencing pending his ongoing cooperation.
Co-defendants Kelly and Stenger have entered not guilty pleas to the pending charges, which are only allegations. These defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The Court has scheduled their trial for 2021. Co-defendant Choi remains at large.
United States Attorney Christina E. Nolan expresses her ongoing gratitude for the outstanding investigation assistance by the Federal Bureau of Investigation, the Criminal Investigation Division of the Internal Revenue Service, the Food and Drug Administration, and for the assistance of the Justice Department’s Fraud Section and Office of International Affairs. The prosecutors handling the case are Assistant U.S. Attorneys Nicole Cate and Paul Van de Graaf and Trial Attorney Jessee Alexander-Hoeppner, from the Department of Justice Criminal Division. Ariel Quiros is represented by Neil Taylor, Esq. and Robert Katims, Esq. William Kelly is represented by Robert Goldstein, Esq. and Mary Kehoe, Esq. William Stenger is represented by Brooks MacArthur, Esq. and David Williams, 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
Agents apprehend previously deported felon residing illegally in New MexicoRead the Press Release
DOÑA ANA COUNTY, N.M. – On Friday, August 7, Border Patrol agents apprehended Luis Arias-Yanez, 54, a previously deported felon residing illegally in Anthony, New Mexico.
According to the criminal complaint, Arias-Yanez, a citizen of Mexico, was deported via Del Rio, Texas, on June 21, 2016, subsequent to a conviction for voluntary manslaughter in 1990. Border patrol agents had received information about Arias-Yanez living in New Mexico. It was determined that Arias-Yanez had no authorization to be or remain in the United States and there is no evidence that he has received permission from the appropriate authority to reapply for admission to the United States.
Under federal law, an alien who previously has been arrested and convicted of a felony and subsequently deported from the United States may not lawfully re-enter the country without the consent of the appropriate authority of the United States to apply for admission.
A criminal complaint is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Arias-Yanez faces up to 20 years in prison.
This case was investigated by the U.S. Border Patrol in coordination with the Doña Ana County Sheriff’s Department. Assistant U.S. Attorney Christopher S. McNair is prosecuting the case.
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13 August 2020
Worcester Man Charged with Transporting Stolen Electronics Across State LinesRead the Press Release
BOSTON – A Worcester man was arrested yesterday and charged in connection with transporting stolen laptops.
Christian Diaz, 31, was indicted on one count of interstate transportation of stolen goods. Diaz will be arraigned in federal court at a later date.
According to the indictment, from Aug. 11, 2015 until Sept. 30, 2015, Diaz transported stolen laptops in interstate commerce.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement. Assistant U.S. Attorney Danial E. Bennett of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington Man Sentenced for Aggravated Identity TheftRead the Press Release
COEUR D'ALENE – Devin Alexander Motley, 22, of Greenacres, Washington, was sentenced in U.S. District Court to two years in prison for aggravated identity theft, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Motley to serve one year of supervised release following his prison sentence and to pay $19,094.15 in restitution. Motley pleaded guilty to the charge on May 19, 2020.
According to court records, in September 2017, Motley stole personal information from a victim and used that information to illegally obtain a credit card. Motley then traveled to Idaho and used the card at the Coeur d’Alene Casino, on the Coeur d’Alene Reservation, as part of a scheme to fraudulently obtain over $19,000 of goods and services. The Coeur d'Alene Tribal Police Department and Federal Bureau of Investigation ultimately uncovered Motley’s actions and began investigating. During this same time period, Motley was also involved in multiple other fraudulent activities, which resulted in felony convictions for burglary and grand theft in Kootenai County, Idaho.
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Warwick Man Charged with Being Armed Drug TraffickerRead the Press Release
PROVIDENCE – A Warwick man who allegedly took on several identities has been arrested by members of the Rhode Island DEA Drug Task Force and ordered detained in federal custody on charges of being an armed drug trafficker, after law enforcement executed court-authorized searches of his residence and two vehicles he regularly used and seized a kilogram of heroin, a loaded firearm, ammunition, and more than $200,000 in cash.
Luis Cortes, 48, a/k/a Danny Vasquez, a/k/a Alberto Diaz, a/k/a John Doe, was stopped and arrested by DEA Drug Task Force agents on Wednesday as he drove away from his residence. Prior to executing a court-authorized search of the vehicle Cortes was driving, a Warwick Police Department certified narcotics detection canine alerted to the presence of narcotics odors at the vehicle. The vehicle was allegedly found to contain after-market hides commonly used to conceal contraband behind the front passenger seat and in a child safety seat. No drugs were located inside the vehicle.
Simultaneous to the traffic stop and the search of Cortes’s vehicle, a court-authorized search of Cortes’s residence was undertaken by members of the Rhode Island DEA Drug Task Force, where they allegedly discovered and seized a kilogram of heroin from a first floor closet; a loaded 9mm semi-automatic pistol with two magazines and between $200,000 and $250,000 in cash from a concealed compartment in the master bathroom which connected to the bedroom; and three kilo presses and various items used in the packaging and distribution of narcotics located in various locations in the residence.
Cortes’s girlfriend and two young children who live with Cortes were present in the residence when law enforcement arrived at the home.
During the traffic stop, the defendant maintained to law enforcement that his true identity is Luis Cortes. The FBI confirmed that the person arrested and fingerprinted was known as both Danny Vasquez and Alberto Diaz. Further review of records by members of the DEA Drug Task Force determined that Danny Vasquez was born in the Dominican Republic.
Luis Cortes, a/k/a Danny Vasquez, a/k/a Alberto Diaz, a/k/a John Doe appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond and was ordered detained on a federal criminal complaint charging him with possession with intent to distribute 100 grams or more of heroin and possession of a firearm in furtherance of drug trafficking.
Cortes’s arrest and initial appearance are announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA and Providence, East Providence, Central Falls, Coventry, North Kingstown, Woonsocket, Cranston, Pawtucket, Newport, South Kingstown, Warwick, and West Warwick Police Departments, Rhode Island State Police, and Amtrak Police Department.
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Village of Rockville Centre Agrees to Settle Federal Complaint by Complying with Clean Air Act RequirementsRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator of the United States Environmental Protection Agency, Region 2 (EPA), announced today that the United States filed suit under the Clean Air Act (CAA) against the Village of Rockville Centre (“the Village”) to address its failure to comply with federally-enforceable emissions limits for particulate matter (PM) and nitrogen oxide (NOx). The Village operates a 33 megawatt municipal power plant (the “Power Plant”) that provides electric power to its residents, in part, using diesel engines. The Village operates the Power Plant primarily during the summer to meet high electricity demands.
The parties also agreed to enter into a Consent Judgment that requires the Village to retire high-emission engines, and to institute operational practices and technologies to reduce further the PM and NOx emissions of the Power Plant. The settlement also requires the Village to pay a civil penalty of $110,000 and perform other injunctive relief that will bring its Power Plant into compliance with the CAA.
The lawsuit and Consent Judgment were filed in the United States District Court for the Eastern District of New York, in Central Islip, New York. Following a 30-day public comment period, the United States will review any comments and, if appropriate, request the District Court to enter and approve the Consent Judgment.
“The United States brought this action to ensure that the Village of Rockville Centre meets its obligation to protect our air quality by instituting stronger emission control practices at its power plant,” stated Acting United States Attorney DuCharme. “The settlement enforces specific and appropriate emission limits that are critical to mitigating human exposure to particulate matter, which is potentially harmful to our health. This Office will vigorously enforce the Clean Air Act against parties who illegally emit air pollutants and compromise the safety of our community.”
“Emission limits on particulate matter and nitrogen oxides exist to help reduce conditions that lead to the formation of dangerous soot and smog. Studies show that in excess, both of these pollutants are linked to a range of respiratory ailments and premature death,” stated EPA Regional Administrator Lopez. “EPA is committed to resolve violations of the Clean Air Act. By fully implementing the actions in the agreement, the Village can protect people that live, work and visit this community.”
The CAA was passed by Congress in 1970 to protect public health and the environment through the regulation of air emissions from both stationary and mobile sources. The law requires the EPA to establish national ambient air quality standards and imposes limits on air pollutant emissions.
Since at least 2009, the Power Plant has exceeded PM and NOx limits under the CAA. As a result of the United States’ enforcement efforts preceding this settlement, the Power Plant’s exceedances of PM ceased in December 2018, by which time the Village had instituted effective operational controls to reduce its PM emissions. However, the Village continues to violate the NOx limits, and the Consent Judgment requires the Village to comply with the NOx limits by December 31, 2021.
As part of the settlement, the Village has permanently retired its three most polluting engines. Further, the Village will reclassify certain engines to limit their use, which will produce significant emissions reductions. The Village will also increase its capacity to import electricity, thereby reducing the load on its Power Plant and associated air emissions. Finally, the Consent Judgment requires the Village to install and operate a continuous emissions monitoring system on all non-emergency engines and implement periodic engine tune ups. These requirements will protect local air quality while enforcing the Village’s compliance with PM and NOx limits.
The negotiations and settlement were handled by Assistant U.S. Attorneys James R. Cho and Matthew Silverman and paralegal Loan Nguyen of the U.S. Attorney’s Office for the Eastern District of New York, working with Liliana Villatora, Denise Leong, Amanda Prentice and Sara Froikin of the Regional Counsel’s Office, U.S. EPA Region 2, Gaetano LaVigna, Chief, Stationary Source Compliance Section, Air Compliance Branch, U.S. EPA Region 2 and Richard Kan, also with the Air Compliance Branch.
Ventura Man and Former Music Teacher Pleads Guilty to Federal Criminal Charge of Production of Child PornographyRead the Press Release
LOS ANGELES – A former music teacher who contracted with a number of school districts in Southern California pleaded guilty today to a federal child pornography charge.
John Edward Zeretzke, 61, of Ventura, pleaded guilty to one count of production of child pornography.
He previously pleaded guilty in Orange County Superior Court to six state counts of committing lewd or lascivious acts with minors under the age of 14 years old.
According to his plea agreement in the federal case, from December 2016 to February 2017, Zeretzke used a computer and the internet to communicate with a female minor and coerced her into producing child pornography. The victim did not live in California at the time.
United States District Judge Fernando M. Olguin has scheduled a December 3 sentencing hearing, at which time Zeretzke will face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison. Zeretzke has been sentenced to 18 years in state prison and federal prosecutors are recommending an 18-year federal prison sentence that will run concurrently with his state prison sentence.
This case is a part of Project Safe Childhood, the Justice Department’s ongoing initiative to combat the plague of child exploitation crimes.
This matter was investigated by the United States Postal Inspection Service and the Los Angeles County Sheriff’s Department, Special Victims Bureau.
This case is being prosecuted by Assistant United States Attorney Justin R. Rhoades.
United States Attorney McSwain Delivers Remarks on the Escalating Public Safety Crisis in PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain convened a press conference today outside the Byrne United States Courthouse after the sentencing hearing for Jovaun Patterson, the man convicted of shooting a Philadelphia shop owner with a military-style assault rifle during an attempted robbery. During his remarks, U.S. Attorney McSwain addressed the escalating violent crime crisis in Philadelphia, the anti-law enforcement bias pushed by certain groups, and the devastating impact that both continue to have on minority communities in the City.
Remarks as Prepared for Delivery
Jovaun Patterson has been sentenced to over 14 years in federal prison for shooting and attempting to rob Philadelphia shop owner, Mike Poeng. Mr. Patterson has been held accountable for his violent criminal behavior and will now serve an appropriate sentence. This was only possible because the U.S. Attorney’s Office stepped in and charged Mr. Patterson after the local authorities had bent over backwards to give him a break, negotiating an overly lenient sentence that sent a message that violent crime has little consequences.
That sad state of affairs – where the mishandling of Mr. Patterson’s original case necessitated federal involvement – is symbolic of a larger catastrophe that is playing out before our eyes in Philadelphia. Homicides, shootings, and serious violent crime have all skyrocketed in 2020 – from already intolerable levels that existed in 2019 and 2018. Almost all the victims are racial minorities, the vast majority of whom are Black. This past weekend alone, at least 25 people were shot. So far this year, over 100 children have been shot, a 68% increase as compared to last year. Again, almost all of these child victims are racial minorities, the vast majority of whom are Black. And we all know about Zamar Jones, the 7 year-old boy who was murdered earlier this month while playing on his front porch in West Philadelphia.
This is . . . infuriating. There is nothing more important than the safety of children. But where is the sense of outrage, where is the anger, where is the sense of urgency among City leaders? This slaughter in our streets has largely been met with indifference, a sense of inevitability, even a shrug of the shoulders. Or as the District Attorney frequently puts it: “poverty equals bullets.”
“Poverty equals bullets.” That condescending statement is a slap in the face to every law-abiding, low-income resident in the City. There are scores of low-income people in the City who respect the law, never shoot anybody, love their neighbors, and work hard to improve their neighborhood. Poverty is never an excuse for violent crime, and certainly not for murder. There is no possible justification for walking up to somebody and shooting them. Furthermore, poverty isn’t going away overnight. As law enforcement leaders, we can’t put the violence problem at the doorstep of poverty and just leave it there. That is the equivalent of abandoning the people we are sworn to protect and serve.
Instead, we must do something. At the U.S. Attorney’s Office, we have and we are – unlike the District Attorney’s Office. With our anti-violence public messaging campaign that we launched last month, the law-abiding citizens of Philadelphia know where the U.S. Attorney’s Office stands – with them and with our law enforcement partners. The campaign also puts potential criminals on notice that if they commit a crime with a gun and we have federal jurisdiction, we will prosecute them to the fullest extent of the law. We will come after them with everything that we have. We are spreading that message of deterrence through billboards, bus shelter advertisements, posters, the Internet, social media, videos, radio, and TV. It’s a message that is sorely needed in the City, and one that I believe will make neighborhoods safer and save lives.
And this is not just messaging. It is backed up by federal resources and results. The U.S. Attorney’s Office prosecuted 53% more violent crime cases in the Eastern District of Pennsylvania this past fiscal year than we prosecuted the year before. In Philadelphia’s most dangerous neighborhoods – what are designated as Project Safe Neighborhood (or PSN) target districts – we charged 72% more violent crime and weapons cases than the year before. And, where necessary, we have provided federal oversight in cases like today’s Patterson sentencing. Still, we know that in order to meet today’s challenges, we must do even more.
But the federal authorities cannot do it alone. We need City leaders to speak with one voice in condemning violence – not making excuses for it and not treating violent defendants like they are somehow the victims in all of this. And most importantly, the rhetoric should be backed up by aggressive local prosecution that holds criminals accountable and therefore makes neighborhoods safer.
City leaders also should speak with one voice in rejecting the extreme anti-law enforcement bias that is currently being peddled by certain irresponsible fringe groups. This bias – especially if it is not forcefully condemned by City leaders – puts the police on their heels and puts violent criminals on their toes, ready to stride forward confidently. One year ago, I stood in this spot and decried the culture of disrespect for law enforcement in the City – a culture that celebrated chants like “F*** the police” and “No good cops in a racist system.” Today, the bile and vitriol coming from some elements of the mob makes those chants sound quaint by comparison.
The vast majority of Philadelphia police officers do their jobs faithfully and honorably – and by putting on the uniform and doing the dangerous work inherent in their mission, they show that they value the lives of others more than they value their own. They, like all responsible citizens, abhor police brutality and are in favor of accountability for police. We can and should work towards better relations between the police and the community without indulging infantile notions that the police as a whole make communities more dangerous. Obviously, they do just the opposite. So to those of you out there who say that we should “abolish the police,” or “defund the police,” or “abolish prisons,” or one of my favorites, that “communities should be left to police themselves,” I have a message for you: your ideas are absurd and deserve nothing but scorn. Moreover, those ideas would cause great harm to the most vulnerable members of our society. Victims of violent crime, like Mike Poeng, are the ones who suffer the consequences of these foolish notions. As is often the case, the policies demanded by the self-righteous mob would come at the expense of minority communities.
Everybody in our City deserves to live in a safe neighborhood – regardless of race or income level. It is time for City leaders to step forward and do everything that they can to make that a reality. We won’t get there by treating violent criminals like they are victims, or by undermining law enforcement, or by grasping for excuses – like conveniently blaming the pandemic. It’s true that the virus isn’t making things any easier, but violence is contagious, too. It can easily spread across a City or even beyond. We must confront it and stop it and put the good people of this City first. Thank you.
U.S. Attorney Brandon J. Fremin Announces $499,458 Award to Provide Housing to Victims of Human Trafficking in LouisianaRead the Press Release
U.S. Attorney Brandon J. Fremin announced that the Middle District of Louisiana received $499,458 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and other appropriate services to victims of human trafficking.
The recipient, Empower 225, is a charitable foundation located in Baton Rouge dedicated to helping those who are at risk of homelessness and dependency locate permanent housing and secure employment, occupational training, and counseling. Their HOPE Team provides supportive services and mentoring to victims of human trafficking and also facilitates training for those who serve these victims. The grant awarded to Empower 225 will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rent, utilities or related expenses, such as security deposits and relocation costs. Empower 225 is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
U.S. Attorney Fremin stated, “This funding is a tremendous boost to our efforts to combat human trafficking and serve victims so desperately in need of help. This funding will assist victims of this terrible crime by allowing service providers to enhance their efforts in combatting human trafficking in Louisiana. This is yet another example of the Justice Department’s support of local organizations that serve and mentor crime victims in our district.”
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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.
Two Individuals Sentenced for Bribery, Theft And/Or Embezzlement of Alabama-Quassarte Tribal TownRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced the sentencings of Bristow, Oklahoma resident, George Phillip Tiger, age 70, and Aaron Dewayne Terry, age 64, of Wichita Falls, Texas. Mr. Tiger was sentenced to 12 months and 1 day imprisonment, 2 years’ supervised release, and ordered to pay a $10,000.00 fine for bribery concerning programs receiving federal funds, in violation of Title 18, United States Code, Section 666(a)(1)(B). Mr. Terry was sentenced to 48 months’ imprisonment, 3 years’ supervised release, and ordered to pay restitution in the amount of $1,250,000 for the theft and embezzlement of funds from business entities wholly owned by the Alabama-Quassarte Tribal Town (“AQTT”). Mr. Terry was also sentenced to 36 months’ imprisonment, 1 year supervised release, and ordered to pay restitution in the amount of $105,068.58 for federal tax charges. Mr. Terry’s sentencings are to run concurrently.
The AQTT is a federally recognized Indian tribe located in Oklahoma with an enrollment of 461 members. The AQTT-owned business entities focus primarily on federal contract procurement in Huntsville, Alabama. The AQTT is headquartered in Wetumka, Oklahoma.
Tiger, the former Principal Chief of the Muscogee (Creek) Nation, was an agent of the AQTT from September 26, 2017 through December 4, 2018. His duties included serving as the Chairman of the Economic Development Authority (EDA) Board. The AQTT formed the EDA to identify, plan, initiate, and develop tribal economic and industrial activities on behalf of the AQTT. The Indictment to which Tiger entered his guilty plea alleged that from on or about September 26, 2017 through on or about February 15, 2019, he corruptly solicited, demanded, accepted and agreed to accept a bribe from Mr. Aaron Terry, intending to be influenced and rewarded in connection with a transaction or series of transactions of the AQTT.
Mr. Terry held various executive management and control positions within the AQTT-owned business entities. He pled guilty to one count of Theft By An Agent Of An Indian Tribal Government Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A); one count of Bribery Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B); and one count of Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Section 371. Mr. Terry also pled guilty via Information to two counts of personal Tax Fraud, in violation of Title 26, United States Code, Section 7206(1).
“Mr. Tiger took advantage of the position of trust he had been given by the people of the Alabama-Quassarte Tribal Town. Instead of acting in the best interests of those he was appointed to serve Tiger sought out and received unlawful profit for himself. Terry likewise exploited his position as an agent of a tribal government for his own selfish and unlawful gain.” said United States Attorney Brian J. Kuester. “This office and the agencies who have been involved in this investigation are committed to identifying, investigating, and prosecuting those who corrupt the positions of trust and authority they hold.”
"While serving as appointed officials within the Alabama-Quassarte Tribal Town, George Tiger and Aaron Terry engaged in various bribery schemes with the sole intention of personal financial gain," said Melissa Godbold, Special Agent in Charge of the FBI's Oklahoma City Field Office. "The prosecution of these subjects should serve as a warning that law enforcement will not tolerate officials who abuse their positions of trust.”
"The sentencings today illustrate the commitment of the Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who exploit, for their own benefit, Tribal organizations and their business entities that support critical national security programs funded by the Department of Defense (DoD)," said Michael Mentavlos, Special Agent-in-Charge of the DCIS Southwest Field Office. "DCIS will continue to investigate corruption and fraud that affects the DoD through the exploitation of Small Business Administration programs designed to help disadvantaged groups."
“Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Kevin Caramucci, Assistant Special Agent in Charge, IRS-CI’s Dallas Field Office. “Public officials who fail to faithfully discharge the duties of their office will be investigated, prosecuted and subjected to the full punishment of the law for their actions.”
The Defense Criminal Investigative Service (DCIS) – Office of Inspector General, the Federal Bureau of Investigation (FBI), the Internal Revenue Service, the Small Business Administration – Office of Inspector General, the General Services Administration – Office of Inspector General, the Army Criminal Investigations Division, and the Naval Criminal Investigative Service participated in the investigation that lead to the Indictment of Tiger and Terry.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the sentencing hearings for each of the defendants. Assistant United States Attorney Douglas Horn, Assistant United States Attorney Ryan Heatherman, and Special Assistant United States Attorney Courtney Jordan represented the United States at the sentencing hearing. Tiger and Terry will be supervised by the United States Probation Office for the Eastern District of Oklahoma.
Two Arrested with Conspiracy to Distribute Fentanyl that Killed an Individual, Injured AnotherRead the Press Release
BIRMINGHAM, Ala. – Federal agents yesterday arrested two individuals charged with distributing fentanyl that resulted in death and serious bodily injury, announced U.S. Attorney Prim Escalona and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
A three-count indictment filed in U.S. District Court charges Anthony Shawn Clark, 33, Huntsville, and Tamara Denise Moore, 23, Huntsville, with distributing fentanyl and also with conspiracy to distribute and possess with the intent to distribute fentanyl. The grand jury returned the indictment against Clark and Moore in July.
According to the indictment, from May 2019 through May 2020, Clark and Moore engaged in a conspiracy to distribute controlled substances, specifically fentanyl. On June 2, 2019 in Madison County, Clark distributed fentanyl which resulted in the death of an individual from the use of the drug. On May 20, 2020, Clark and Moore distributed fentanyl that caused serious bodily injury to an individual from the use of the drug.
The maximum penalty for conspiracy to distribute and possess with the intent to distribute a controlled substance is 20 years in prison.
The penalty for distributing a controlled substance that results in death or serious bodily injury is 20 years to life in prison and a maximum $1 million fine.
DEA investigated the case, along with Madison Police Department and Huntsville-Madison County STAC. Assistant U.S. Attorney Robert J. Becher Sr. is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Three Drug Traffickers Sentenced to Prison following Greater Pittsburgh Safe Streets Task Force InvestigationRead the Press Release
PITTSBURGH, PA – Three former residents of the Pittsburgh area have been sentenced in federal court this week on their convictions of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Michael Rose, 28, formerly of Pittsburgh, PA, Kreg Williams, formerly of Duquesne, PA, and Marvin Porter, 49, formerly of Allison Park, PA.
Rose was sentenced to 102 months’ imprisonment followed by four years of supervised release. Williams was sentenced to 63 months’ imprisonment followed by four years of supervised release. Porter was sentenced to 60 months’ imprisonment followed by four years of supervised release.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Rose, Williams and other individuals were identified as members or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. Rose, Williams, and Porter, along with 30 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
As to Rose, the Court was informed that intercepted communications confirmed that Rose was conspiring with others to distribute controlled substances in Western Pennsylvania. On April 15, 2019, Rose was apprehended by law enforcement while conducting a drug transaction in the parking lot of the Monroeville Mall. After arresting Rose and seizing a firearm, which Rose was not permitted to possess, as well as heroin, cocaine and cocaine base, all packaged for resale from the vehicle, Rose broke free from law enforcement and ran into the Monroeville Mall while in handcuffs. Rose was sentenced for distributing 198.4 grams of heroin, 28 grams of cocaine, and 154 grams of cocaine base, commonly known as crack.
As to Williams, the Court was informed that intercepted communications confirmed that Williams, a member of the street gang, "SCO", was conspiring with others to possess with intent to distribute and distribute controlled substances, namely, 28 grams or more of cocaine base, commonly known as crack, a Schedule II controlled substance, between August 2018 and May 2019. Additionally, on June 12, 2019, Williams possessed three firearms, including an assault rifle and two pistols, all of which were forfeited to the government.
As to Porter, the Court was informed that in April of 2019, while intercepting communications over telephones used by Howard McFadden, SCO’s leader, law enforcement identified Chadlin Leavy as a source of supply for heroin and cocaine. I n April of 2019, investigators obtained authorization for the interception of wire and electronic communications over a telephone operated by Chadlin Leavy. Intercepted communications confirmed that Mr. Porter, who is not associated with SCO, was conspiring with others to possess with intent to distribute heroin. On June 12, 2019, law enforcement seized a suitcase containing 612 bricks and one bundle of heroin, six firearms as well as related magazines and ammunition, jewelry, and a digital scale from Mr. Porter’s residence.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Porter, Rose and Williams. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Three California Residents Plead Guilty to Drug Trafficking ChargesRead the Press Release
RENO, Nev. — Three California men have pleaded guilty in federal court to possessing with the intent to distribute more than one pound of methamphetamine, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
Jesse Pina, 26, of Visalia, California; Daniel Mediano, 29, of Farmersville, California; and Nicholas Lucky Lozano, 19, of Farmersville, were charged by criminal complaint in June 2019.
• Yesterday, Pina pleaded guilty to one count of possession with the intent to distribute 50 grams or more of methamphetamine.
• Mediano pleaded guilty yesterday to one count of conspiracy to possess methamphetamine with the intent to distribute a controlled substance.
• Today, Lozano pleaded guilty to one count of conspiracy to possess methamphetamine with the intent to distribute a controlled substance.
According to court documents and admissions that the defendants made in court, on or about June 19, 2019, Pina, Mediano, and Lozano were staying in a motel room in downtown Reno and conspired to possess with the intent to distribute methamphetamine. During the execution of a search warrant of the motel room, law enforcement recovered 595 grams (approximately 1.3 pounds) of methamphetamine, a scale, money from a drug sale conducted by Pina, and another $2,880 in cash.
Pina, Mediano, and Lozano are scheduled to be sentenced by Chief U.S. District Judge Miranda M. Du on November 16, 2020.
The maximum statutory penalties are: (a) life in prison and a $10,000,000 fine, for possession with intent to distribute methamphetamine and (b) 20 years in prison and a $1,000,000 fine, for conspiracy to possess methamphetamine with the intent to distribute a controlled substance. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Regional Crime Suppression Unit (which included, at the time of this investigation, the Reno Police Department and the Sparks Police Department). Assistant U.S. Attorneys Megan Rachow and Peter Walkingshaw are prosecuting the case.
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Three Additional Members of Money Laundering Ring ChargedRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Patrick Freaney, Deputy Special Agent in Charge of the New York Field Office of the United States Secret Service (“Secret Service”), William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Troy Miller, Director of New York Field Operations for United States Customs and Border Protection (“CBP”), announced today the unsealing of a Superseding Indictment charging SUNDAY OKORO, COLLINS ENEH, and IKECHUKWU ELENDU with money laundering and bank fraud schemes. The case has been assigned to United States District Judge Denise L. Cote. SUNDAY OKORO will be presented before a United States Magistrate Judge in the Middle District of Georgia tomorrow and IKECHUKWU ELENDU will be presented before a United States Magistrate Judge in the Northern District of California tomorrow. A third defendant, COLLINS ENEH, remains at large. A prior Indictment in the case charged 11 additional defendants.
Acting U.S. Attorney Audrey Strauss said: “As alleged, three more defendants have been implicated in a conspiracy to launder the criminal proceeds of schemes to defraud corporate and individual victims of multiple millions of dollars. Thanks to the efforts of the Secret Service, the FBI, CBP, and Special Agents of my Office, the defendants face federal charges.”
Secret Service Deputy Special Agent in Charge Patrick Freaney said: “The U.S. Secret Service is committed to working with our law enforcement partners to combat cyber-enabled fraud. The continued success of this investigation is the result of this collaborative effort and highlights the relentless investigative pursuit by the U.S. Secret Service and our partners as we address the ever evolving threat posed by cyber-crime.”
FBI Assistant Director William F. Sweeney Jr. said: “The threat of a business email compromise is a cyber iceberg that will inflict serious losses on a victim company. This type of cyber threat is a constant hazard lurking below the surface to every business, regardless of its size, and many cannot sustain the damage it will cause. Companies small and large should continue to educate their workforce on cyber threats. Well done to the investigative teams involved in bringing today’s charges.”
CBP Director of New York Field Operations Troy Miller said: “U.S. Customs and Border Protection is proud of the expertise we provide in support of investigations that result in the takedown of criminal enterprises. It is through interagency partnerships and collaborative efforts, like the one leading to today’s arrests, that law enforcement successfully combats today’s criminal organizations.”
According to the allegations in the Superseding Indictment unsealed today in federal court:[1]
From at least in or about March 2018 up to and including at least in or about January 2020, OKORO, ENEH, and ELENDU conspired to launder the proceeds of at least seven business email compromise schemes and one romance scheme in which corporate, organizational, and individual victims were fraudulently induced to send over $10 million to bank accounts controlled by members of the conspiracy, in the mistaken belief that those accounts belonged to the intended recipients of the funds. Members of the conspiracy received the victim funds by opening bank accounts in the names of the intended recipients, transferred the funds through additional accounts to hide the origin and fraudulent nature of the proceeds, and ultimately transferred most of those proceeds to foreign bank accounts or withdrew them in cash.
* * *
OKORO, ENEH, and ELENDU are each charged with one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison, and one count of conspiracy to commit bank fraud, which carries a maximum term of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI, the Secret Service and its Electronic Crimes Task Force, CBP, and special agents of the United States Attorney’s Office for the Southern District of New York. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jun Xiang and Kevin Mead are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Hometown
Charges
SUNDAY OKORO
41
Jonesboro, GA
Money laundering conspiracy; bank fraud conspiracy
COLLINS ENEH
32
Long Beach, CA
Money laundering conspiracy; bank fraud conspiracy
IKECHUKWU ELENDU
41
San Leandro, CA
Money laundering conspiracy; bank fraud conspiracy
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Texas Man Sentenced to 57 Months for Computer Hacking and Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK –Tyler C. King, age 31, of Dallas, Texas, was sentenced today to 57 months in prison for computer fraud and aggravated identity theft in connection with his hacking of a New York-based technology company.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
United States Attorney Grant C. Jaquith stated: “Tyler King hacked into a major technology company, damaged its systems, stole its data, and laughed about it, all from the comfort of his sofa in Texas. He will now serve 57 months in federal prison. Those interested in hiding behind their keyboards to steal information and damage property should take today’s sentence as a stark reminder that computer hacking is a serious business with serious consequences. I thank the FBI for its exceptional work in bringing King to justice.”
FBI Special Agent in Charge Thomas F. Relford stated: “This kind of behavior is not a prank, and it isn’t harmless. Today’s sentence should serve as a reminder that cybercrime is a serious threat and the FBI is prepared to go to any lengths to apprehend criminals like Mr. King.”
Senior United States District Judge Thomas J. McAvoy ordered King to serve a 2-year term of supervised release, to begin after King is released from prison, and to pay a fine of $15,000 and $21,159 in restitution.
The evidence at King’s 5-day trial, in November 2019, established that he conspired with Ashley St. Andria in 2015 to gain access to the computer network of a New York-based technology company that employed St. Andria. While on the company’s network, King and St. Andria created unauthorized administrator accounts that gave them access to proprietary company information, including real-time access to the emails of senior company executives, personnel files, and financial records.
In response to the company shutting down the fake administrator accounts, King regained access to the network with the assistance of St. Andria, stole proprietary business records, and – through a series of sophisticated steps, including the use of password-cracking programs – bypassed the company’s security measures. In doing so, King illegally used the credentials of two company employees based overseas. The jury convicted King of conspiring to commit computer fraud, computer fraud, and two counts of aggravated identity theft.
In June 2020, King pled guilty to obstructing justice by falsifying evidence for use at his November 2019 trial.
King’s co-conspirator, Ashley St. Andria, age 31, of Irving, Texas, pled guilty to computer fraud on August 15, 2018 and was sentenced by Judge McAvoy to time served, and 2 years of supervised release, in March 2020.
This case was investigated by the FBI, and prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
Syracuse Man Sentenced to Nearly Eight Years in Prison for 110 Gang-Related RICO ConvictionRead the Press Release
SYRACUSE, NEW YORK – Jason Lebron, 28, of Syracuse, NY, was sentenced today to serve 92 months in federal prison based on his previous guilty plea for violating the Racketeering Influenced Corrupt Organizations Act (RICO), announced United States Attorney Grant C. Jaquith, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Chief Kenton Buckner, City of Syracuse Police Department.
In imposing sentence, Senior U.S. District Judge Frederick J. Scullin, Jr. also ordered Lebron to serve three years of supervised release following his term of imprisonment. As part of his guilty plea, Lebron admitted that he was a member of the 110 Gang operating in the city of Syracuse, and that he repeatedly distributed cocaine base (“crack”) in the gang’s territory. In imposing sentence, the Court found that the 110 Gang members regularly possessed and used firearms to facilitate their drug trafficking, and that the defendant was aware of such use.
Jason Lebron was one of 14 defendants charged with violating RICO based on their membership in the 110 Gang. The other 13 men have all pled guilty or been convicted at trial. Co-defendant Damani Prince was sentenced in October 2019 to 6.5 years in prison, to be followed by three years supervised release; and co-defendant Rashawn Wynn was sentenced in July 2020 to 92 months in prison, to be followed by three years supervised release. The remaining defendants in the case are awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation (FBI), the Syracuse Police Department, and the Gang Violence Task Force, which consists of members of the Syracuse Police, the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the New York State Department of Corrections, the New York State Attorney General’s Office, and the Onondaga County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Kristen Grabowski.
This prosecution was brought as 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.
Statement from U.S. Attorney Tim GarrisonRead the Press Release
U.S. Attorney Tim Garrison participated in a press conference today with Jackson County Prosecutor Jean Peters Baker (center) and Charron Powell, the mother of LeGend Taliferro, to announce state charges in the fatal shooting of LeGend.KANSAS CITY, Mo. – U.S. Attorney Tim Garrison participated in today’s press conference with Jackson County Prosecutor Jean Peters Baker to announce state charges against Ryson Ellis in the fatal shooting of 4-year-old Legend M. Taliferro, who was asleep at home the morning of June 29, 2020, when a shot was fired into his residence and struck him.
“We are all pleased that we’re now a step closer to finding justice for the tragic murder of LeGend Taliferro,” Garrison said. “This case underscores the effectiveness of state, local, and federal law enforcement working together to reduce violent crime in Kansas City. Operation LeGend has resulted in significant numbers of arrests and seizures of dozens of firearms and illegal drugs. Today’s arrest is one of 16 homicide-related arrests under Operation LeGend.
“The alleged killer of LeGend Taliferro is in custody, but there are still too many armed and violent criminals roaming the streets of Kansas City. Operation LeGend will continue to provide federal support to assist our local law enforcement partners so that more criminals will be taken off the street, more victims will receive justice, and our neighborhoods will be more safe.”
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Statement from Attorney General William P. Barr on the Arrest of Kansas City Man Charged with the Murder of Four-Year-Old LeGend TaliferroRead the Press Release
Attorney General William P. Barr issued the following statement in response to the arrest of a Kansas City man accused of murdering four-year-old LeGend Taliferro, after whom the Department of Justice’s Operation Legend is named.
“On June 29, 2020, four-year-old LeGend Taliferro was killed by gunfire while asleep in his bed in Kansas City, Missouri. His senseless death, which is part of an alarming increase in violent crime this summer, led the Department of Justice to launch Operation Legend. As part of that initiative, we have sent greater numbers of federal law enforcement agents, investigators, and analysts to work closely with state and local law enforcement partners to remove violent criminals from the streets of key American cities.
Today’s arrest of LeGend Taliferro’s suspected murderer marks a significant step forward in his case and illustrates the potential of Operation Legend more broadly. The arrest and state charges resulted from cooperation among Kansas City police officers, the FBI, and U.S. Marshals. This development is a model for joint efforts to solve crimes and reduce violence in other cities. I thank the state and local law enforcement officers who helped make possible this important step in bringing justice to LeGend, to his family, and to his community.
Although LeGend’s suspected murderer has been arrested, Operation Legend will go on. Inspired by this success, federal law enforcement will continue working tirelessly to support state and local partners in our shared mission to keep the American people safe and enforce the rule of law.”
St. Louis Man Faces Federal Firearms ChargeRead the Press Release
St. Louis – Deandre J. White, 24, of St. Louis, Missouri, was charged by a federal complaint with being a felon in possession of a firearm. White will appear in court on Friday, August 14, 2020, for his initial appearance in front of U.S. Magistrate David D. Noce.
According to the criminal complaint and motion seeking detention, agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives executed a search warrant at White’s residence on August 12, 2020. Officers located an Alien Armory Tactical, model AAT-15, .223 caliber pistol and ammunition, along with approximately 200 capsules of suspected fentanyl and drug packaging paraphernalia. During the last several months, White has been engaged in consistent and routine distribution of fentanyl and sales of firearms. During the course of their investigation, ATF agents have conducted numerous controlled purchases of both fentanyl and firearms from White. During many of these transactions, White was armed with a gun. In addition to the instant offense, White has been charged in St. Louis County with Unlawful Use of a Weapon for a shooting that occurred on April 21, 2020 (20SL-CR01697). On April 26, 2020, White was arrested in Bridgeton for being in possession of fentanyl and a firearm.
This is investigation is part of Operation LeGend which is a federal partnership with local law enforcement to address the increase in homicides and violent crime in St. Louis in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the Department of Homeland Security, FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
These charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the St. Louis Metropolitan Police Department. Assistant United States Attorney Catherine Hoag is handling this case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
St. George Woman Sentenced to 33 Months in Federal Prison After Pleading Guilty to Distribution of FentanylRead the Press Release
ST. GEORGE, UT – Lacey Nichole Crawshaw, 33, of St. George will serve 33 months in federal prison after pleading guilty to distribution of fentanyl. U.S. District Judge David Nuffer imposed the sentence Wednesday in St. George. Crawshaw will serve 36-months of supervised release when she finishes her prison sentence. There is no parole in the federal criminal justice system.
Crawshaw was charged with distribution of fentanyl after she sold counterfeit Oxycodone 30 mg pills containing fentanyl to a confidential source four times over a one-month period. Each transaction included 10 to 30 pills.
Fentanyl is a potent synthetic opioid drug approved by the U.S. Food and Drug Administration for use as an analgesic (pain relief) and anesthetic. It is approximately 100 times more potent than morphine and 50 times more potent than heroin, according to a DEA fact sheet. It is also one of the most dangerous cutting agents used by drug traffickers in making counterfeit pills, including oxycodone pills. Lacing the counterfeit pill with fentanyl makes the drug cheaper to produce and can generate large profits for drug dealers. It also increases the risk of overdose and loss of life since users may not know the pill they are buying contains fentanyl.
“Drug dealers in Utah should be on notice. If you deal in fentanyl, you will find yourself in federal prison where there is zero chance for parole. I have directed officers, agents and prosecutors that no case is too small for our review when it comes to fentanyl. It is too deadly of a substance to tolerate,” U.S. Attorney John W. Huber said today.
“This case is a perfect example of teamwork between the Washington County Drug Task Force, the DEA, and the United States Attorney’s Office. By now we’re all aware of the devastating effects fentanyl has on our communities, even in small quantities. This case illustrates the fact that it doesn’t matter the size of the case, we will collectively and tenaciously pursue drug dealers like Lacey Crawshaw,” Sgt. Sean Sparks of the Washington County Drug Task Force said today.
Crawshaw was charged in a four-counts of distribution of fentanyl in an indictment returned by a federal grand jury in December 2019. She pleaded guilty to one count of distribution of fentanyl in a plea agreement reached with federal prosecutors in April.
As a part of the plea agreement, Crawshaw, also known as Lacey Nichole Crawshaw-Leavitt and Lacey Nichole Crawshaw-Chavarria, admitted that on Sept. 24, 2019, she knowingly and intentionally distributed fentanyl. A Utah Bureau of Forensic Services senior forensic scientist determined that the tablets containing fentanyl that she distributed weighed approximately 3 grams. The plea agreement also included an understanding that relevant conduct that was either not charged or not included in the plea agreement could be taken into consideration by the court in determining a sentence in the case.
Assistant U.S. Attorneys from the St. George office of the United States Attorney’s Office prosecuted the case. The case was investigated by members of the Washington County Drug Task Force and special agents with the DEA.
Specialty Pharmacy Advanced Care Scripts Agrees to Pay $3.5 Million to Resolve Allegations that it Served as a Kickback ConduitRead the Press Release
BOSTON – The U.S. Attorney’s Office has reached a $3.5 million settlement with specialty pharmacy Advanced Care Scripts, Inc. (ACS), to resolve allegations that ACS conspired with pharmaceutical manufacturer Teva Neuroscience, Inc. (Teva), to enable Teva to pay kickbacks to Medicare patients taking Copaxone, a Teva drug approved for treatment of multiple sclerosis.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
From approximately October 2006 through January 2015, ACS served as a contracted vendor for Teva and provided, among other things, benefits investigation services to certain patients who had been prescribed Copaxone. As part of today’s settlement, ACS acknowledged certain facts, including that it relayed data from two foundations, Chronic Disease Fund (CDF) and The Assistance Fund (TAF), to Teva so that Teva could correlate its payments to the foundations with the amounts of money the foundations spent on Copaxone patients. ACS further acknowledged that, when the foundations lacked funding and were not accepting new applications for Medicare co-pay coverage, ACS provided regular updates to Teva on the number of Medicare Part D patients serviced by ACS who had prescriptions for Copaxone, met the criteria for foundation co-pay coverage, and were awaiting foundation co-pay coverage. At least one ACS employee understood that Teva would use the number of waiting Copaxone patients to help determine the amount of its next payment to CDF or TAF. Teva sometimes provided ACS with advance notice of its payments to CDF or TAF. Once ACS learned that CDF or TAF had re-opened its co-pay fund, ACS promptly would send the foundation a “batch file” that consisted almost entirely of Copaxone patients’ applications for Medicare co-pay coverage. Thereafter, ACS often received notice from the foundation that most or all of the applications submitted by ACS had been approved to receive co-pay funding. When a Copaxone patient’s application was approved, ACS no longer included that patient in its reports to Teva on the number of Copaxone patients awaiting foundation co-pay coverage.
“According to the allegations in today’s agreement, ACS knowingly enabled a large pharmaceutical manufacturer to pay kickbacks to Medicare patients taking its expensive drug,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts. “Such conduct undermined the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices. We commend ACS for expeditiously resolving this matter.”
“Advanced Care Scripts (ACS) willingly served as a pawn in a kickback scheme, putting profit over patient needs, by helping Teva to time its foundation payments to boost sales of Teva's own drug, which ACS then dispensed,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s settlement should be a warning to others that the FBI will continue to aggressively go after vendors like ACS who conspire with pharmaceutical companies to disguise kickbacks as charitable contributions, at the expense of hard-working taxpayers who support the Medicare program.”
“This settlement demonstrates the OIG’s commitment to safeguarding the Medicare program from kickback arrangements,” said Phillip M. Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office. “I appreciate the partnership with the Massachusetts U.S Attorney’s Office in identifying and prosecuting this type of fraud.”
The government previously entered into settlement agreements with TAF and CDF.
U.S. Attorney Lelling, Boston FBI SAC Bonavolonta, and HHS-OIG SAC Coyne made the announcement today. The matter was handled by Assistant U.S. Attorneys Abraham George, Gregg Shapiro, and Evan Panich of Lelling’s Affirmative Civil Enforcement Unit, with assistance from Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Department of Justice’s Civil Division.
South Charleston Man Pleads Guilty to Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man pled guilty today to a federal drug crime, announced United States Attorney Mike Stuart. Eric Wiseman, 39, pled guilty to attempting to possess with intent to distribute marijuana.
“Arranging for the delivery of marijuana and the sale of marijuana amounts to drug trafficking,” said United States Attorney Mike Stuart. “U.S. Attorneys don’t make the laws. I don’t make the laws, I enforce the laws - all laws. Marijuana is illegal under federal law and my office prosecutes all federal crimes, including those involving marijuana.”
Wiseman admitted that on November 7, 2019, he attempted to possess approximately 6.1 kg of marijuana and had arranged for the delivery of this marijuana to his residence in South Charleston. Wiseman further admitted he had intended to distribute this marijuana for sale. Officers with the Metropolitan Drug Enforcement Network Team (MDENT) intercepted the marijuana delivery and then conducted a controlled delivery of a package to his residence as part of their investigation.
Wiseman faces up to five years in prison when he is sentenced on November 12, 2020.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Negar M. Kordestani is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00122.
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South Bend Man Sentenced to 70 Months in PrisonRead the Press Release
SOUTH BEND – Jamar Sims, age 27, of South Bend, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio upon his plea of guilty to distribution of methamphetamine, announced United States Attorney Thomas L. Kirsch II.
Mr. Sims was sentenced to 70 months in prison followed by 3 years of supervised release.
According to documents in this case, in November 2018, Mr. Sims sold methamphetamine to a person working for the police. In March of 2019, he sold methamphetamine to the same cooperating person. On both occasions, investigators watched Sims travel from a residence on Bowman Street in South Bend to conduct the transactions. Sims also indicated to the cooperator that he had a variety of drugs to sell.
This case was investigated by the Drug Enforcement Administration. The case is being handled by Assistant U.S. Attorney Joel Gabrielse.
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Río Grande Man Sentenced to 17 Years in Prison for Production of Child PornographyRead the Press Release
SAN JUAN, P.R. – United States District Court Chief Judge Gustavo A. Gelpí sentenced Enrique Sánchez Hernández to 210 months (17 years and six months) in prison followed by a supervised release term of 30 years for Production of Child Pornography, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
On November 20, 2019, Sánchez Hernández pleaded guilty to the sole count in the indictment, one count of Production of Child Pornography. According to the government’s evidence, Sánchez Hernández had made a recording of his sexual abuse of an 8 year-old minor, utilizing his cellular phone. A civilian discovered the recording in June of 2018, when the abandoned phone was found in Río Grande, Puerto Rico. Police of Puerto Rico referred the case to Homeland Security Investigations (HSI) agents, who were able to identify Mr. Sánchez Hernández from the video and arrested him shortly thereafter.
“The U.S. Attorney’s Office for the District of Puerto Rico will continue to protect and defend our children from those who seek to prey upon them and steal their innocence,” said U.S. Attorney W. Stephen Muldrow. “We will continue to work with our law enforcement partners to investigate and prosecute these crimes, using all available resources to ensure that additional vulnerable victims aren’t abused.”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The Department of Homeland Security was in charge of the investigation of the case and the criminal prosecution was handled by Assistant U.S. Attorney Nicholas W. Cannon.
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Rio Rico Resident Sentenced to Prison for Bank FraudRead the Press Release
TUCSON, Ariz. – Yesterday, Juan Diego Ibanez, 40, of Rio Rico, Arizona, was sentenced by United States District Court Judge Scott Rash to 15 months in prison, followed by five years of supervised release. Ibanez previously pleaded guilty to bank fraud.
In 2017, Ibanez provided fraudulently-created documents to 1st Bank Yuma and received $690,000 in loan proceeds based on the false documents. Upon learning of the fraud, the bank immediately investigated the illegal conduct and reported it to the Federal Bureau of Investigation (FBI).
The FBI investigated this matter. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR19-01049-SHR-BGM
RELEASE NUMBER: 2020-068_Ibanez# # #
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.Randolph Man Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Alexander Carnahan, 27, of Randolph, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorneys Charles M. Kruly and Elizabeth R. Moellering, who are handling the case, stated that according to the complaint, on June 9th, 2020, the Jamestown Police Department responded to a residence for a report of alleged child sexual abuse involving an 11 year-old (Victim). The Victim’s mother advised officers that another one of her children gave her a cell phone belonging to the defendant, who was staying with the family, and told her that there were nude images of the Victim on the phone. The Victim’s mother searched the phone and found what she believed to be nude images of the Victim. The mother then kicked Carnahan out of the family residence.
On June 16, Jamestown Police Officers executed a state search warrant on the defendant’s phone but did not locate any images or videos depicting child pornography. On June 17, 2020, a federal search warrant was executed on the defendant’s Google account. Investigators recovered several images and videos that appeared to match descriptions provided by the Victim’s mother. The investigation determined that the defendant transferred the images and videos from his phone to his Google account. Investigators also recovered child pornography images that Carnahan did not produce himself.
On August 13, 2020, a search warrant was executed at the defendant’s current residence in Randolph. A second warrant authorized photographs of Carnahan’s hands to determine whether his hands matched a hand seen in the images of child pornography recovered by investigators.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson.
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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Rafael Pina-Nieves Indicted for Firearms ViolationsRead the Press Release
SAN JUAN, Puerto Rico – Today, a federal grand jury returned an indictment charging Rafael Pina-Nieves, a convicted felon and person prohibited from possessing or carrying firearms, with firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, were in charge of the investigation of the case.
According to the indictment, on or about April 1, 2020, in the District of Puerto Rico, defendant Rafael Pina-Nieves, knowing that he had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed: one Glock pistol, Model 19, 9mm caliber; one Smith & Wesson, Model SD40, .40 caliber, and 526 total rounds of live ammunition, including 148 rounds of .40 caliber handgun ammunition, 123 rounds of .357 caliber handgun ammunition, 3 rounds of .45 caliber handgun ammunition, 170 rounds of .25 caliber handgun ammunition, 3 rounds of 5.7 caliber handgun ammunition, 35 rounds of 7.62 caliber rifle ammunition, 18 rounds of 7.92 caliber rifle ammunition, 1 round of 12 gauge shotgun ammunition, and 25 rounds of 9mm caliber handgun ammunition.
The Glock pistol, Model 19, 9mm caliber possessed by Pina-Nieves was a machine gun, as it was modified to shoot more than one shot, without manual reloading, by a single function of the trigger.
Pina-Nieves has agreed that he shall surrender to federal authorities in Puerto Rico on August 14, 2020.
Assistant U.S. Attorney Edward G. Veronda is in charge of the prosecution of the case. If convicted, the defendant faces up to 10 years’ imprisonment for each count.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Project Guardian: Two Men Plead Guilty to Firearm CrimesRead the Press Release
CHARLESTON, W.Va. – Two men pled guilty this week to federal firearm crimes, according to United States Attorney Mike Stuart.
Jeremy Vance, 38, of Charleston, pled guilty to being a felon in possession of several firearms in Logan County. Vance admitted that on August 15, 2019, he was carrying four guns while riding a bicycle in West Logan. He admitted that he knew he should not have had the guns because he had previously been convicted of breaking and entering in Logan County Circuit Court in 2011. Vance admitted that he had planned to take the four guns to a local flea market to sell them for money. The guns included two Mossberg 12 gauge shotguns, one Marlin .22 caliber rifle and one Marlin 12 gauge shotgun. Vance faces up to 10 years in prison when sentenced on December 9, 2020. The West Virginia State Police conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Kristin Scott is handling the prosecution.
Adam Michael Miller, 28, of Parkersburg, pled guilty to being a felon in possession of a firearm. Miller admitted that he was driving a white Honda Pilot on October 28, 2019, when the vehicle was stopped by an officer with the Parkersburg Police Department in the 900 block of Williams Street in Parkersburg. Officers searched the vehicle and found a loaded Smith & Wesson .40 caliber semi-automatic pistol along with a digital scale, small empty plastic bags consistent with drug distribution, and quantities of marijuana and psilocybin mushrooms. Several .40 caliber bullets also were found on Miller’s person. The firearm had previously been reported to the Parkersburg Police Department as stolen. Miller was not legally permitted to possess a firearm due to his previous conviction for the felony offense of burglary on December 6, 2017, in the Circuit Court of Calhoun County. Miller’s prior burglary conviction was related to his role in the kidnapping and torture of Joshua Darwin Shrader of Parkersburg in July 2016. He was sentenced to prison in that case for an indeterminate sentence of not less than one year or more than 15 years. He was later released on supervised parole and was still on parole when this offense occurred. In addition to the burglary conviction, Miller has three convictions for battery on a corrections officer, four convictions for battery, three convictions for violation of a protective order, as well as convictions for reporting a false emergency, obstructing an officer, destruction of property and intimidation of a witness. Miller faces up to 10 years in prison when sentenced on December 8, 2020. The Parkersburg Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
These cases are being prosecuted as part of the Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office is prosecuting these cases with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00094 (Vance) and Case No. 2:20-cr-00022 (Miller).
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Prison Sentence for Macon Felon Caught with Stolen GunRead the Press Release
MACON, Ga. – A convicted felon was sentenced to 54 months in prison for illegally possessing a stolen gun, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Howard Paul Hayes, 36, of Warner Robins, Georgia was sentenced on Wednesday, August 12 by U.S. District Judge Tillman E. “Tripp” Self to 54 months in prison after pleading guilty to one count possession of a firearm by a convicted felon. There is no parole in the federal system.
Hayes was captured in Macon by Georgia State Patrol (GSP) after attempting to outrun officers before sunrise on May 18, 2018. Hayes was initially pulled over for not having headlights. The defendant did not produce a license and gave the officer a false identity before he took off in the car he was driving. Hayes ultimately lost control of the vehicle, and was arrested. Hayes was captured wearing a holster, and officers found a stolen Glock semi-automatic pistol under the driver’s seat. Hayes admitted he knew it was illegal for him to have a firearm, due to prior felony convictions.
“It is illegal for convicted felons to possess a firearm. The punishment for those with a criminal record caught with guns is prison time without parole,” said U.S. Attorney Charlie Peeler. “I want to thank the GSP and the Bibb County Sheriff’s Office for their work in this case.”
The investigation was conducted as 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by GSP and the Bibb County Sheriff’s Office. Assistant U.S. Attorney Will R. Keyes prosecuted 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.
Plaquemines Parish Man Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on August 12, 2020, DALE PHILLIPS, age 40, a resident of Plaquemines Parish, Louisiana, pled guilty to an indictment, charging him with distribution of 200 grams of cocaine.
These charges stem from an investigation by both the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office into the illegal distribution of drugs in the Parish that were brought into the Parish from the Houston area. This investigation led to the Indictment of Paul Metz, Eugene Rudolph, Elbert Childs, Zyeta Rudolph, Yrian Devoure, and Dale Phillips back in May 2019 under case number 19-087 “H”.
Based on his guilty plea, PHILLIPS will face a sentence of not more than 20 years in prison, not more than $1,000,000.00 in fines, three years of supervised release, and a mandatory special assessment of $100.00. The other defendants are scheduled to stand trial on October 13, 2020. PHILLIPS is scheduled to be sentenced on October 21, 2020.
The case was investigated by the Drug Enforcement Administration (D.E.A.), the Plaquemines Parish Sheriff’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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Philadelphia Man Sentenced to 14+ Years for Shooting and Attempted Armed Robbery of West Philadelphia Convenience StoreRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jovaun Patterson, 31, of Philadelphia, PA was sentenced to 171 months in prison (14 years and three months) and 5 years of supervised release by United States District Judge Mitchell S. Goldberg for the attempted robbery of a convenience store in West Philadelphia in 2018.
In December 2019, Patterson pleaded guilty to charges of attempted Hobbs Act robbery, and using, carrying and discharging a firearm during and in relation to a crime of violence. These charges stem from the defendant’s attempted armed robbery on May 5, 2018, of the KCJ, Inc. convenience store, during which Patterson shot the store owner, Li “Mike “ Poeng, with an assault rifle. Mr. Poeng is a refugee from Cambodia who became a U.S. citizen in 1998. As a result of the shooting, Mr. Poeng is confined to a wheelchair. The Philadelphia District Attorney’s Office originally charged Patterson with multiple crimes, including attempted murder and aggravated assault, but then dropped the attempted murder charges and agreed to an overly lenient plea deal of only 3 ½ to 10 years imprisonment. The U.S. Attorney’s Office then stepped in to correct this injustice.
“Violent crime is a severe problem in Philadelphia, as shootings and homicides have sharply increased in 2020 from already intolerable levels. Confronting this crime wave is a top priority of my Office,” said U.S. Attorney McSwain. “It is important for potential criminals to know that committing a violent crime will result in grave consequences. It is also important for the general public to know that we are fighting hard to protect Philadelphia neighborhoods and to seek justice for victims. Taking Jovaun Patterson off the streets for an appropriate amount of time is part of that fight. I want to thank Mike Poeng for his courage throughout this case. Sadly, we can never make him completely whole, but today’s sentence is part of his healing process and will also help to deter future violence.”
“Today an extremely violent offender has been sentenced to a lengthy prison term,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “The outcome is the result of ATF’s collaborative effort with the Philadelphia Police Department to combat gun violence. Along with our other local, state and federal partners, we are committed to investigating gun crimes in Philadelphia and working with the US Attorney’s Office to prosecute those who violate the gun laws.”
Committing a violent crime in the Eastern District of Pennsylvania carries a tremendous risk of a long prison sentence, which is the message of the Office’s new anti-violence public awareness campaign. You can learn more about this campaign on the District website.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
Paroled murderer from New York sentenced to federal prison for robbing Brunswick bankRead the Press Release
BRUNSWICK, GA: A New York man will spend the next six and half years in federal prison for an October 2019 bank robbery.
Lionel Valenzuela, 55, was sentenced by U.S. District Court Judge Lisa Godbey Wood to 78 months in prison on one count of Bank Robbery, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his sentence, Valenzuela must serve three years of supervised release. There is no parole in the federal system.
“Bank robbery is a terrifying, dangerous crime, and no one should have to fear for their lives while in their workplace,” said U.S. Attorney Christine. “We’re grateful to the alert bystander and the Brunswick Police officers who stopped Valenzuela’s brief and foolish crime spree. The great work of the FBI will send the repeat offender Valenzuela to a system where there is no parole.”
In pleading guilty to the crime, Valenzuela admitted robbing the Ameris Bank at 3440 Cypress Road in Brunswick on Oct. 30, 2019. He threatened the clerk by saying he had a firearm and demanding money, and then ran from the bank with an undisclosed amount of cash. He was quickly captured by Brunswick Police officers after a private citizen identified him. While the cash from the robbery was recovered, no weapon was found.
Valenzuela was on lifetime parole from New York State at the time of his arrest after having been released from a prison sentence for second-degree murder.
“Without the help of our partners in law enforcement, and our citizens, our job of protecting American citizens and upholding the Constitution would be more difficult,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This bank robber was captured and will now be held accountable because a citizen witness stepped up and helped police.”
The case was investigated by the FBI and the Brunswick Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer Kirkland and Joshua Bearden.
Omaha Man Forfeits $150,000 for Employing Illegal AliensRead the Press Release
United States Attorney Joe Kelly announced that James R. Barger, Jr., 49, was sentenced today in federal court in Omaha for harboring illegal aliens for commercial advantage and private financial gain. United States District Judge Robert F. Rossiter, Jr., expressing concerns about COVID-19 in the jails, sentenced Barger to two years’ supervised release and required Barger to perform 80 hours of community service per year. Barger will also pay a money forfeiture judgment in the amount of $150,000.
Barger is the principal owner of J.R. Barger & Sons, Inc., an Omaha-based commercial concrete company. In April 2018, federal agents visited various J.R. Barger & Sons worksites and identified 27 field employees of the company who were in the United States illegally. Agents determined that several of the employees were employed under falsified identification documents and Barger was aware of the illegal status of at least some of his employees and had permitted employees to change identification documents during the course of their employment. Barger also permitted undocumented workers to purchase used company vehicles in order to further facilitate their employment at J.R. Barger & Sons.
“Protecting the integrity of the U.S. immigration system is a key component of our homeland security mission,” said Katherine Greer, Special Agent in Charge of HSI Kansas City. “Enforcing immigration and hiring laws helps protect jobs for U.S. citizens and lawful residents.”
This case was investigated by Homeland Security Investigations with assistance from the United States Department of Housing and Urban Development Office of Inspector General and Immigration and Customs Enforcement.
Ohio Man Sentenced for Gun TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney James P. Kennedy Jr. announced today that Diones Bowens, 24, of Ashtabula, Ohio, who was convicted of conspiracy to transfer firearms purchased outside of state of residency, was sentenced to serve two years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Joshua A. Violanti, who handled the case, stated that between November 2017 and May 11, 2018, the defendant, without being a licensed firearm importer, manufacturer, dealer, or collector, conspired with Robert L. Williams, Jr., to transport firearms into New York State from the State of Ohio. Bowens conducted straw purchases of firearms in Ohio in his own name, while knowing that the firearms were actually paid, and intended, for Williams, who lived in New York.
Robert Williams was previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, New York Field Division, under the direction of Special Agent-in-Charge John B. Devito, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Oak Creek Man Who Vandalized Racine Synagogue Pleads GuiltyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on August 12, 2020, Yousef O. Barasneh (age: 22) of Oak Creek, Wisconsin, pleaded guilty to conspiring to violate citizens’ rights to use property free from threats and intimidation, in violation of 18 U.S.C. § 241.
According to court documents, Barasneh was a member of a neo-Nazi, white supremacist group called “The Base.” From September 13, 2019, through September 21, 2019, Barasneh participated in online group chats with other Base members in which they agreed to threaten and intimidate African Americans and Jewish Americans, who they viewed as enemies of the white race. Following this agreement, on the evening of September 21, 2019, Barasneh went to the Beth Israel Sinai Congregation in Racine and spray-painted anti-Semitic words and phrases, as well as a swastika and the symbol for “The Base,” on various parts of the synagogue building.
“Violence and intimidation motivated by white supremacist ideology are abhorrent and have no place in this country. The Justice Department is commitment to prosecution such civil rights violations aggressively,” stated United States Attorney Krueger.
Chief United States District Judge Pamela Pepper set a sentencing hearing for November 23, 2020. At sentencing, Barasneh faces up to ten years in prison and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Eastern District of Wisconsin’s Joint Terrorism Task Force. The case is being prosecuted by Assistant United States Attorneys Benjamin Proctor and Adam Ptashkin.
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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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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New Defendant Appears on Federal Charges for Alleged Role in Salt Lake City Police Arson CaseRead the Press Release
SALT LAKE CITY – A federal complaint unsealed Tuesday charges a fourth individual with one count of arson for using fire to destroy a Salt Lake City Police Department vehicle during May 30, 2020, riots in Salt Lake City.
An arrest warrant was issued for Lateesha Richards, also known as Lateesha Kahryn Ritchards, 24, of Salt Lake City on June 18, 2020. While she has yet to turn herself in to the U.S. Marshals Service, she appeared via Zoom with her attorney for an initial appearance Wednesday afternoon. U.S. Magistrate Judge Jared Bennett found her to be a danger to the community and ordered her detained pending trial. He ordered her to turn herself in by Friday morning.
During the afternoon of May 30, 2020, a peaceful protest in downtown Salt Lake City transitioned into acts of destruction, property damage, arson, and other criminal conduct. During the riot, a Salt Lake City police officer, driving a police vehicle, became boxed-in and immobilized by surrounding protestors. Fearing for her safety, the officer fled from her patrol car. Her patrol vehicle was subsequently overturned, vandalized, looted, and then set on fire. Video footage from the event shows individual rioters using fire and explosives to damage and destroy the police vehicle.
At the detention hearing Wednesday afternoon, federal prosecutors told the court that approximately 200 rounds of ammunition for a handgun and 90 rounds of rifle ammunition were in the car when the officer was forced to it. Video shown as evidence during the detention hearing shows the ammunition exploding during the fire.
Federal authorities are filing arson charges against those allegedly responsible for burning the patrol vehicle.
Video footage from the riot shows an individual, later identified by police as Richards, holding a cell phone in her right hand as she walks toward the overturned police car. Richards is then observed taking a selfie with the burning police car as the background. Richards walked away from the patrol car momentarily and then returned to the patrol car holding what appears to be an item of clothing in her right hand. The complaint alleges she bent down facing the burning patrol car and tossed the item onto the small flames before running away.
The complaint alleges the clothing item Richards threw onto the fire acted as kindling and increased the size of flames. Shortly after, the vehicle becomes engulfed in flames. According to the complaint, Richards returned to the area with Latroi Newbins, another defendant in the arson case, to take more selfies with the burning police car in the background. Law enforcement officers identified Richards based on her driver’s license photo, a booking photo, and a neck tattoo, according to the complaint.
Federal arson charges in the case are also pending against Jackson Stuart Tamowski Patton, 26, Latroi Devon Newbins, 28, and Christopher Rojas, 28, all of Salt Lake City, who were charged earlier. Patton remains in custody. Newbins and Rojas have been released on conditions of pretrial release. In addition to complaints filed in the case, Patton, Newbins, Rojas and Richards are charged with arson in a one-count indictment returned by a federal grand jury on July 23, 2020.
Complaints and indictments are not findings of guilt. Individuals charged in a complaint or indictment are presumed innocent unless or until proven guilty in court. Arson carries a potential sentence of 20 years in prison with a minimum-mandatory five-year sentence.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office are prosecuting the case. Investigating agencies include members of the FBI’s JTTF, the Salt Lake City Police Department, the ATF and the Utah Department of Public Safety.
Nevada Woman Charged with COVID-Relief FraudRead the Press Release
A Nevada woman was charged in a criminal complaint unsealed Wednesday with fraudulently seeking over $1 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Nicholas A. Trutanich of the U.S. Attorney’s Office for the District of Nevada.
Karen Chapon, aka Karen Hannafious, 50, of Las Vegas, Nevada, was charged by criminal complaint in the District of Nevada with one count of bank fraud and one count of making false statements to a financial institution. The complaint alleges that, in support of her six fraudulent loan applications, Chapon made numerous false and misleading statements about her companies’ respective business operations and payroll expenses, and falsely denied that she had been convicted of a felony in the past five years.
The complaint also alleges that, in further support of the fraudulent loan applications, Chapon submitted fake and altered documents, including fraudulent federal tax filings. For example, Chapon misrepresented to a lender that, in 2019, her company Heavenly Tahoe Properties paid several million dollars in employee wages. In support of Chapon’s loan application, she submitted a fraudulent IRS filing that appeared to be Heavenly Tahoe Properties’ 2019 Form 940 federal unemployment tax return showing that the company paid nearly $2.5 million in employee wages that year. In reality, the IRS has no record of the company filing any 2019 tax returns, and publicly available records show that the company’s Nevada corporate registration is no longer valid.
The government has executed seizure warrants recovering the majority of the nearly $600,000 in PPP loan proceeds that Chapon obtained in her alleged fraud, including more than $500,000 from the bank account of one of her companies and a Mercedes Benz SUV.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration’s Office of Inspector General. Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Nevada Woman Charged with COVID-Relief FraudRead the Press Release
LAS VEGAS, Nev. – A Nevada woman was charged in a criminal complaint unsealed Wednesday with fraudulently seeking over $1 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Nicholas A. Trutanich of the U.S. Attorney’s Office for the District of Nevada.
Karen Chapon, aka Karen Hannafious, 50, of Las Vegas, Nevada, was charged by criminal complaint in the District of Nevada with one count of bank fraud and one count of making false statements to a financial institution. The complaint alleges that, in support of her six fraudulent loan applications, Chapon made numerous false and misleading statements about her companies’ respective business operations and payroll expenses, and falsely denied that she had been convicted of a felony in the past five years.
The complaint also alleges that, in further support of the fraudulent loan applications, Chapon submitted fake and altered documents, including fraudulent federal tax filings. For example, Chapon misrepresented to a lender that, in 2019, her company Heavenly Tahoe Properties paid several million dollars in employee wages. In support of Chapon’s loan application, she submitted a fraudulent IRS filing that appeared to be Heavenly Tahoe Properties’ 2019 Form 940 federal unemployment tax return showing that the company paid nearly $2.5 million in employee wages that year. In reality, the IRS has no record of the company filing any 2019 tax returns, and publicly available records show that the company’s Nevada corporate registration is no longer valid.
The government has executed seizure warrants recovering the majority of the nearly $600,000 in PPP loan proceeds that Chapon obtained in her alleged fraud, including more than $500,000 from the bank account of one of her companies and a Mercedes Benz SUV.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration’s Office of Inspector General. Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Montgomery County Man Sentenced to 78 Months for Drug Trafficking and Firearm OffensesRead the Press Release
LEXINGTON, Ky. - A Mt. Sterling, Kentucky man, Shawn Perkins, 22, was sentenced in federal court on Thursday, to 78 months in prison, by U.S. District Judge Karen Caldwell, for possession with intent to distribute fentanyl and heroin, possession of a firearm by prohibited person, and using a false statement to purchase a firearm.
According to Perkins’ plea agreement, on October 10, 2018, law enforcement received complaints that Perkins was firing an AR-15 rifle into the field across from his house. When officers arrived at the residence, Perkins was uncooperative; but upon entry into the residence, officers located a Bushmaster AR-15 box, ammunition, a jar of marijuana, and approximately $1,000 in cash. Officers also located a gun case, with an additional seven firearms, assorted ammunition, cash, scales, heroin, various pills, and $3,000 cash.
The Bushmaster AR-15 was located inside the safe and Perkins had purchased the firearm on October 2, 2018. However, on August 9, 2018, Perkins had been denied the ability to purchase the very same firearm, based upon his prior conviction for a misdemeanor crime of domestic violence. On the Firearms Transaction Record he filled out when he was allowed to purchase the firearm, Perkins falsely answered that he had never been convicted of a misdemeanor crime of violence. Perkins had been convicted of Assault Fourth Degree Domestic Violence Minor Injury by the Fleming District Court in September 2011.
Perkins also admitted that, on August 28, 2019, while serving the arrest warrant on his indictment, law enforcement officers encountered Perkins, at his home, and found him in possession of 728 oxycodone tablets, a 22 pistol, .38 caliber pistol, scales, and $8,712 in cash.
Perkins pleaded guilty in May 2020.
Under federal law, Perkins must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Sheriff David Charles, Montgomery County Sheriff’s Department, jointly made the announcement.
The investigation was directed by the ATF and the Montgomery County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Cynthia 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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Mobile Meth Manufacturer Receives 119 Months in Federal PrisonRead the Press Release
NEW BERN, N.C. – A Wilmington man was sentenced yesterday to 119 months in prison for conspiracy to manufacture, distribute and possess with the intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute more than 50 grams of methamphetamine and possession of pseudoephedrine with the intent to manufacture methamphetamine.
According to court documents and evidence presented in court, Robert Cox, 29, engaged in the manufacturing and distribution of methamphetamine in Raleigh and then Wilmington, North Carolina. On February 12, 2018, an officer with the Raleigh Police Department observed Cox’s car parked in an AutoZone parking lot after the business was closed. The officer made contact with Cox and a passenger and observed drug paraphernalia. Following a search of the car, members of the North Carolina State Bureau of Investigation’s Clandestine Lab Unit found items that they determined were used for the manufacturing of methamphetamine and more than 300 grams of methamphetamine. Cox was arrested on State charges and subsequently posted a bond. In late May 2018, New Hanover County Sheriff’s Office Narcotic Detectives received information that Cox was now manufacturing methamphetamine in Wilmington. On June 19, 2018, detectives obtained a search warrant for Cox’s residence and car in Wilmington. Cox was stopped at a DMV parking lot in Wilmington. The car contained items involved in the manufacturing of methamphetamine including 158 grams of pseudoephedrine. A search of his residence uncovered additional items used to manufacture methamphetamine.
The investigation was part of OCDETF Operation Speed Bump. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focused on the manufacturing and distribution of methamphetamine into Eastern North Carolina.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Drug Enforcement Administration (DEA) and North Carolina State Bureau of Investigations led the investigation, with assistance from the New Hanover County Sheriff’s Office and the Raleigh Police Department. Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00005-M.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Michigan man sentenced to more than 8 years for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony Foy, of Detroit Michigan, was sentenced today to 100 months of incarceration for selling heroin, U.S. Attorney Bill Powell announced.
Foy, also known as “Duke,” age 42, pled guilty to one count of “Aiding and Abetting Distribution of Heroin” in September 2019. Foy admitted to selling heroin in October 2017 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Meth-trafficking gang member sentenced to federal prisonRead the Press Release
WAYCROSS, GA: An admitted methamphetamine trafficker and criminal street gang member has been sentenced to more than 17 years in federal prison.
Christopher Wells, a/k/a “Jugg,” 32, of Waycross, was sentenced to 210 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Possession of a Firearm by a Convicted Felon, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Wells will be required to serve five years of supervised release.
There is no parole in the federal system.
“Christopher Wells has been involved in criminal activity for his entire adult life, and despite ample, multiple opportunities to walk away from crime, he chose to immerse himself in a violent, lawless lifestyle,” said U.S. Attorney Christine. “While he’s locked away to protect society, he’ll have more than a decade to rethink his illegal choices and criminal associates.”
A leader in the “G-Shine” sect of the notorious Bloods criminal street gang, Wells was arrested in August 2017 as part of an FBI operation targeting a methamphetamine-trafficking operation in the Waycross area and beyond. He was named in a 47-count indictment in 2017 along with 34 other defendants targeted in the wide-ranging operation. Two of the defendants are awaiting sentencing; the remaining defendants all pled guilty, and have been sentenced to an average of 88 months in prison.
Wells’ criminal record started at age 15 and includes at least 25 arrests, with eight felony convictions as an adult.
“Waycross citizens are safer with Wells off the streets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Unfortunately he decided, after many opportunities, not to turn his life around. He now has 17 years in federal prison to think that over once again.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations. It was investigated by the FBI, the Coastal Georgia Violent Gang Task Force, the Ware County Sheriff’s Office, the Waycross Police Department, the Glynn County Police Department, and the Brunswick Police Department, and prosecuted for the United States by Assistant U.S. Attorney and OCDETF Coordinator Marcela C. Mateo and Assistant U.S. Attorney Jennifer Kirkland.
Man who fired on law enforcement helicopter sentenced to federal prisonRead the Press Release
AUGUSTA, GA: A Blythe man who shot a helicopter being used in support of a law enforcement operation has been sentenced to more than 15 years in federal prison.
Terry Kielisch, 56, was sentenced to 183 months in prison by U.S. District Court Judge Dudley H. Bowen on two counts of Assaulting a Person Assisting an Officer of the United States, and one count of Use of a Firearm During and in Relation to a Crime of Violence, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Kielisch will serve five years of supervised release. There is no parole in the federal system.
“When Terry Kielisch aimed and fired a high-powered rifle at a police helicopter, he callously endangered the lives of the officers aboard the aircraft and of any people on the ground,” said U.S. Attorney Christine. “The resulting sentence appropriately reflects the senselessness of this attack.”
As he admitted in pleading guilty to the charges, Kielisch used a .308 caliber rifle to fire two shots at a Georgia State Patrol helicopter piloted by a GSP trooper, with a Richmond County Sheriff’s Office investigator as a passenger, on March 12, 2019. The aircraft was providing support for Operation Gunsmoke, searching for fugitives accused of drug trafficking and illegal firearms possession in Georgia and South Carolina, and coordinated by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Kielisch was not a target in the operation, but told investigators he fired at the helicopter because he didn’t like it flying near his home. Bullets struck the helicopter near its fuel lines, and Judge Bowen ordered Kielisch to pay $54,960 in restitution for the resulting damage.
The pilot was able to land the aircraft safely, and neither he nor the passenger were injured.
“The Georgia State Patrol is grateful the crew and those on the ground weren’t injured as a result of Kielisch’s careless actions,” said Lt. Stephanie L. Stallings, Public Information Director for the Georgia State Patrol. “This agency is equally grateful to U.S. Attorney Christine for the swift resolution in this case.”
The case was investigated by the ATF, the Georgia State Patrol and the Richmond County Sheriff’s Office, and was prosecuted for the United States by Assistant U.S. Attorney Hank Syms Jr.
Man Sentenced for Gang-Related Shootout at Music StudioRead the Press Release
ALEXANDRIA, Va. – A previously convicted felon was sentenced yesterday to over four years in prison for his involvement in a gang-related shootout at a recording studio in Alexandria in July 2019.
“A convicted felon in possession of a firearm poses a serious danger to the safety of our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Reginald Tolliver III has an extensive criminal record that includes assault and battery, and the distribution of narcotics. In this case, Tolliver illegally possessed a firearm, which he then utilized to engage in a gang-related shootout in broad daylight. Far too often, especially in recent months, we see the devastating result to communities and families when criminals engage in armed shootouts to settle their disputes. All communities should have the freedom to be outside without fear of being hit by gang cross-fire. We will continue to prosecute cases such as these, which place innocent lives in danger.”
According to court documents, Tolliver, 23, of Woodbridge, unlawfully possessed and fired a SigSauer semi-automatic pistol during a gang-related shootout, on July 2, 2019, at a recording studio in Alexandria. Surveillance video footage captured two masked individuals exit a vehicle and fire at a vehicle occupied by Tolliver and his associates. Video captured Tolliver fire his pistol at the masked individuals before police responded to the scene to find Tolliver and an associate wounded by gunfire.
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; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr. Assistant U.S. Attorney Nicholas U. Murphy II 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-374.
Man Indicted on Bank Robbery ChargeRead the Press Release
SOUTH BEND – Allen Hanuscak, 65, who has resided in Elkhart Indiana and Ohio, was charged by way of an Indictment with bank robbery, announced U.S. Attorney Kirsch.
On July 14, 2020, Magistrate Judge Joshua P. Kolar approved a criminal complaint against Hanuscak for the bank robbery that is the subject of the indictment. According to the affidavit, on July 13, 2020, the Old National Bank located at 320 North Main Street, Elkhart, Indiana, was robbed by a white male at about 10:30 am. The male entered the bank and slid a demand note to the teller. The man had his hand in his pocket leading the teller to believe he was concealing a firearm, and the teller then gave the man about $7000. The teller described the robber as an elderly, white male wearing glasses, a mask, jeans and a black backpack. Officers responding to the crime saw a white elderly man walking near the bank who was wearing a mask, glasses, jeans and carrying a backpack. Officers stopped him and he identified himself as Allen Hanuscak. He was searched and police found $6995 in his pants. Old National Bank’s money bands were still wrapped around the money. Mr. Hanuscak was on supervised release from federal courts in Ohio when this robbery occurred.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney Frank E. Schaffer.
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