Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
13 August 2020
Luzerne County Man Sentenced to 12 Years’ Imprisonment for Two Separate Drug Trafficking ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jesse Carey, age 33, formerly of Wilkes-Barre, Pennsylvania, was sentenced on August 12, 2020, by U.S. District Court Judge Malachy E. Mannion, to 12 years’ imprisonment for two separate drug trafficking crimes committed in Monroe and Luzerne Counties.
According to United States Attorney David J. Freed, Carey was indicted by a grand jury in 2017, after an incident on August 5, 2017, at the Mount Airy Casino in Monroe County, in which Carey was found in possession of approximately 47 grams of cocaine and 29 individual packets of heroin for further distribution, a scale, and $9,777 in U.S. Currency. Carey was also indicted for drug trafficking after a separate incident on January 12, 2017, in Plymouth Borough, Luzerne County, in which Carey was arrested and found in possession of 14 grams of cocaine and approximately 80 individual doses of heroin for further distribution, $2,086 in U.S. currency, scales and drug packaging materials. Carey committed these offenses while on probation for a previous offense he committed in Luzerne County.
The cases were investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, the Pennsylvania State Police, the Pennsylvania Gaming Control Board, and the Plymouth Borough Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the cases.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
KC Man Charged with Illegal Firearm Used in Fatal ShootingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been charged in federal court with illegally possessing the firearm he accidentally fired in a fatal shooting at the Kansas City Zoo.
Anthony R. Meneses, 27, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, Aug. 11, with being a felon in possession of a firearm. Meneses was arrested today and will have his initial court appearance this afternoon.
According to an affidavit filed in support of the federal criminal complaint, Kansas City police officers were called to the scene of an accidental shooting in a parking lot at 6800 Zoo Drive, Kansas City, Mo., on Sunday, Aug. 9. The victim, identified in court documents as “J.S.,” had been shot while he was sitting in the driver’s seat of a 2005 Toyota Camry, which was occupied by three other persons.
Meneses, J.S.’s cousin, was sitting behind the driver’s seat. Meneses’s wife was also in the back seat; the victim’s girlfriend was in the front passenger seat. Meneses allegedly grabbed the gun, a Glock 9mm pistol, from the back pocket of the driver’s seat when the gun accidentally fired. The bullet traveled though the driver’s seat, striking J.S. in the chest.
J. S. was transported to Research Medical Center where he was later pronounced deceased.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Meneses has a prior felony conviction for tampering with a motor vehicle.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.Justice Department Finds Yale Illegally Discriminates Against Asians and Whites in Undergraduate Admissions in Violation of Federal Civil-Rights LawsRead the Press Release
The Department of Justice today notified Yale University of its findings that Yale illegally discriminates against Asian American and white applicants in its undergraduate admissions process in violation of Title VI of the 1964 Civil Rights Act. The findings are the result of a two-year investigation in response to a complaint by Asian American groups concerning Yale’s conduct.
“There is no such thing as a nice form of race discrimination,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Unlawfully dividing Americans into racial and ethnic blocs fosters stereotypes, bitterness, and division. It is past time for American institutions to recognize that all people should be treated with decency and respect and without unlawful regard to the color of their skin. In 1890, Frederick Douglass explained that the ‘business of government is to hold its broad shield over all and to see that every American citizen is alike and equally protected in his civil and personal rights.’ The Department of Justice agrees and will continue to fight for the civil rights of all people throughout our nation.”
As a condition of receiving millions of dollars in taxpayer funding, Yale expressly agrees to comply with Title VI of the Civil Rights Act of 1964, a cornerstone civil-rights law that prohibits discrimination on the basis of race, color, or national origin in programs and activities that receive federal financial assistance.
The Department of Justice found Yale discriminates based on race and national origin in its undergraduate admissions process, and that race is the determinative factor in hundreds of admissions decisions each year. For the great majority of applicants, Asian Americans and whites have only one-tenth to one-fourth of the likelihood of admission as African American applicants with comparable academic credentials. Yale rejects scores of Asian American and white applicants each year based on their race, whom it otherwise would admit.
Although the Supreme Court has held that colleges receiving federal funds may consider applicants’ race in certain limited circumstances as one of a number of factors, the Department of Justice found Yale’s use of race is anything but limited. Yale uses race at multiple steps of its admissions process resulting in a multiplied effect of race on an applicant’s likelihood of admission, and Yale racially balances its classes.
The Department of Justice has demanded Yale agree not to use race or national origin in its upcoming 2020-2021 undergraduate admissions cycle, and, if Yale proposes to consider race or national origin in future admissions cycles, it must first submit to the Department of Justice a plan demonstrating its proposal is narrowly tailored as required by law, including by identifying a date for the end of race discrimination.
Jamestown Man Indicted on Multiple Drug and Gun ChargesRead 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 a federal grand jury has returned an indictment charging Wade J. Paulisick, Jr., 22, of Jamestown, NY, with possessing with intent to distribute 100 grams or more of acetyl fentanyl, 40 grams or more of fentanyl, five grams or more of methamphetamine, buprenorphine, possession of a firearm in furtherance of drug trafficking activities, and possession of a stolen firearm. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that according to the indictment and a previously filed complaint, on September 26, 2019, the Jamestown Metro Drug Task Force and the Jamestown Police Swat Team executed a search warrant at the defendant’s Tower Street residence. Officers recovered a quantity of suspected fentanyl and methamphetamine, as well as a handgun.
The indictment is the result of an investigation by the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson; the New York State Police, under the direction of Major James Hall; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan; and the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb.
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.
# # # #
Jamestown Man Going to Prison for 6 1/2 Years for His Role in A Drug Trafficking RingRead 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 Bryan Ferrer-Vazquez, 27, of Jamestown, NY, who was convicted of conspiracy to distribute one kilogram or more of heroin, was sentenced to serve 78 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Laura A. Higgins and Jeremiah E. Lenihan, who handled the case, stated that beginning in early 2016, Ferrer-Vazquez distributed heroin and cocaine for a drug trafficking organization led by co-defendant Sigfredo Martinez. The defendant was responsible for the “day shift” transactions, while another co-defendant, Alex Mercado, was responsible for “night shift” transactions. Ferrer-Vazquez would receive a couple hundred bundles of heroin from Martinez every few days and was tasked with distributing it to users and lower-level dealers. The defendant then turned over the proceeds to Martinez and took payment for his role in the distribution.
During the course of the investigation, the Drug Enforcement Administration conducted three controlled purchases of heroin and cocaine from Ferrer-Vazquez, who was arrested on April 6, 2017, at his Buffalo Street residence. A federal search warrant was executed at the residence and investigators recovered 19 cellphones, a quantity of suspected cocaine hidden in lunchboxes in the rafters of the basement, a quantity of suspected heroin, $2,994 in cash, three ledger notebooks, and a scale. A loaded.380 caliber semi-automatic handgun was found wrapped in rags and a plastic shopping bag locked inside a cabinet in the detached garage.
Alex Mercado and Sigfredo Martinez were both previously convicted and sentenced to serve 120 months and 175 months in prison respectively.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan; the Chautauqua County Sheriff’s Department, under the direction of Sheriff James B. Quattrone; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson; the Town of Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.; the New York State Police, under the direction of Major James Hall; and the Dunkirk Police Department, under the direction of Chief David Ortolano.
# # # #
Greensboro Man Sentenced to 103 Months Imprisonment for Possessing a Stolen FirearmRead the Press Release
GREENSBORO, N.C. - A Greensboro resident was sentenced today in federal court in Greensboro for knowingly possessing a stolen firearm, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
TEQUAN JAMEZ BARKLEY, age 31, was sentenced to a 103 month term of imprisonment by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, BARKLEY was ordered to serve three years of supervised release and to pay a special assessment of $100.00. BARKLEY pleaded guilty on February 3, 2020, to possession of a Smith & Wesson .38 caliber revolver, knowing and having reasonable cause to believe the firearm was stolen.
Court records show that on June 24, 2018, Sanford Police were investigating a shooting incident outside a nightclub when they received information about a gray Chevrolet Suburban seen near the nightclub. Police saw a gray Chevrolet Suburban traveling nearby, parking at a convenience store. BARKLEY was driving the vehicle, and he was arrested on unrelated outstanding warrants. After obtaining a search warrant for the vehicle, police found a loaded .38 caliber revolver on the front passenger seat under a plastic bag. The gun was reported stolen in Sanford in 2017. Police later obtained other warrants and conducted testing on the firearm, finding BARKLEY’S DNA on the gun.
The case was investigated by the Sanford Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Anand Ramaswamy.
###
Global Disruption of Three Terror Finance Cyber-Enabled CampaignsRead the Press Release
WASHINGTON - The Justice Department today announced the dismantling of three terrorist financing cyber-enabled campaigns, involving the al-Qassam Brigades, Hamas’s military wing, al-Qaeda, and Islamic State of Iraq and the Levant (ISIS). This coordinated operation is detailed in three forfeiture complaints and a criminal complaint unsealed today in the District of Columbia. These actions represent the government’s largest-ever seizure of cryptocurrency in the terrorism context.
These three terror finance campaigns all relied on sophisticated cyber-tools, including the solicitation of cryptocurrency donations from around the world. The action demonstrates how different terrorist groups have similarly adapted their terror finance activities to the cyber age. Each group used cryptocurrency and social media to garner attention and raise funds for their terror campaigns. Pursuant to judicially-authorized warrants, U.S. authorities seized millions of dollars, over 300 cryptocurrency accounts, four websites, and four Facebook pages all related to the criminal enterprise.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.
“It should not surprise anyone that our enemies use modern technology, social media platforms and cryptocurrency to facilitate their evil and violent agendas,” said Attorney General William P. Barr. “The Department of Justice will employ all available resources to protect the lives and safety of the American public from terrorist groups. We will prosecute their money laundering, terrorist financing and violent illegal activities wherever we find them. And, as announced today, we will seize the funds and the instrumentalities that provide a lifeline for their operations whenever possible. I want to thank the investigators from the Internal Revenue Service, Department of Homeland Security, Federal Bureau of Investigation, and the prosecutors from the D.C. United States Attorney’s Office and National Security Division for their hard and innovative work in attacking the networks that allow these terrorists to recruit for and fund their dangerous actions.”
"Terrorist networks have adapted to technology, conducting complex financial transactions in the digital world, including through cryptocurrencies. IRS-CI special agents in the DC cybercrimes unit work diligently to unravel these financial networks," said Secretary of the Treasury Steven T. Mnuchin. "Today's actions demonstrate our ongoing commitment to holding malign actors accountable for their crimes.”
“The Department of Homeland Security was born after the September 11, 2001 terrorist attacks and, nearly 20 years later, we remain steadfast in executing our critical mission to safeguard the American people, our homeland, and our values,” said Acting Secretary of Homeland Security Chad F. Wolf. “Today’s announcement detailing these enforcement actions targeting foreign terrorist organizations is yet another example of the Department’s commitment to our mission. After launching investigations that identified suspected online payments being funneled to and in support of terrorist networks, Homeland Security Investigations skillfully leveraged their cyber, financial, and trade investigative expertise to disrupt and dismantle cyber-criminal networks that sought to fund acts of terrorism against the United States and our allies. Together with our federal law enforcement partners, the Department will utilize every resource available to ensure that our Homeland is and remains secure.”
“These important cases reflect the resolve of the D.C. United States Attorney’s Office to target and dismantle these sophisticated cyber-terrorism and money laundering actors across the globe,” stated Acting United States Attorney Michael R. Sherwin. “While these individuals believe they operate anonymously in the digital space, we have the skill and resolve to find, fix and prosecute these actors under the full extent of the law.”
“IRS-CI’s ability to trace funds used by terrorist groups to their source and dismantle these radical group’s communication and financial networks directly prevents them from wreaking havoc throughout the world,” said Don Fort, Chief, IRS Criminal Investigation. “Today the world is a safer place.”
“As the primary law enforcement agency charged with defeating terrorism, the FBI will continue to combat illicit terrorist financing regardless of platform or method employed by our adversaries,” said FBI Director Christopher Wray. "As demonstrated by this recent operation, the FBI remains committed to cutting off the financial lifeblood of these organizations that seek to harm Americans at home and abroad."
“Homeland Security Investigations continues to demonstrate their investigative expertise with these enforcement actions,” said ICE Deputy Director and Senior Official Performing the Duties of the Director Matthew T. Albence. “Together with law enforcement partners, HSI has utilized their unique authorities to bring to justice those cyber-criminal networks who would do us harm.”
Al-Qassam Brigades Campaign
The first action involves the al-Qassam Brigades and its online cryptocurrency fundraising efforts. In the beginning of 2019, the al-Qassam Brigades posted a call on its social media page for bitcoin donations to fund its campaign of terror. The al-Qassam Brigades then moved this request to its official websites, alqassam.net, alqassam.ps, and qassam.ps.
The al-Qassam Brigades boasted that bitcoin donations were untraceable and would be used for violent causes. Their websites offered video instruction on how to anonymously make donations, in part by using unique bitcoin addresses generated for each individual donor.
However, such donations were not anonymous. Working together, IRS, HSI, and FBI agents tracked and seized all 150 cryptocurrency accounts that laundered funds to and from the al-Qassam Brigades’ accounts. Simultaneously, law enforcement executed criminal search warrants relating to United States-based subjects who donated to the terrorist campaign.
With judicial authorization, law enforcement seized the infrastructure of the al-Qassam Brigades websites and subsequently covertly operated alqassam.net. During that covert operation, the website received funds from persons seeking to provide material support to the terrorist organization, however, they instead donated the funds bitcoin wallets controlled by the United States.
The United States Attorney’s Office for the District of Columbia also unsealed criminal charges for two Turkish individuals, Mehmet Akti and Hüsamettin Karataş, who acted as related money launderers while operating an unlicensed money transmitting business.
Al-Qaeda Campaign
The second cyber-enabled terror finance campaign involves a scheme by al-Qaeda and affiliated terrorist groups, largely based out of Syria. As the forfeiture complaint details, these terrorist organizations operated a bitcoin money laundering network using Telegram channels and other social media platforms to solicit cryptocurrency donations to further their terrorist goals. In some instances, they purported to act as charities when, in fact, they were openly and explicitly soliciting funds for violent terrorist attacks. For example, one post from a charity sought donations to equip terrorists in Syria with weapons:
Undercover HSI agents communicated with the administrator of Reminder for Syria, a related charity that was seeking to finance terrorism via bitcoin donations. The administrator stated that he hoped for the destruction of the United States, discussed the price for funding surface-to air missiles, and warned about possible criminal consequences from carrying out a jihad in the United States.
Posts from another Syrian charity similarly explicitly referenced weapons and extremist activities:
Al-Qaeda and the affiliated terrorist groups together created these posts and used complicated obfuscation techniques, uncovered by law enforcement, to layer their transactions so to conceal their actions. Today’s complaint seeks forfeiture of the 155 virtual currency assets tied to this terrorist campaign.
ISIS Campaign
The final complaint combines the Department’s initiatives of combatting COVID-19 related fraud with combatting terrorism financing. The complaint highlights a scheme by Murat Cakar, an ISIS facilitator who is responsible for managing select ISIS hacking operations, to sell fake personal protective equipment via FaceMaskCenter.com (displayed below).
The website claimed to sell FDA approved N95 respirator masks, when in fact the items were not FDA approved. Site administrators claimed to have near unlimited supplies of the masks, in spite of such items being officially-designated as scarce. The site administrators offered to sell these items to customers across the globe, including a customer in the United States who sought to purchase N95 masks and other protective equipment for hospitals, nursing homes, and fire departments.
The unsealed forfeiture complaint seized Cakar’s website as well as four related Facebook pages used to facilitate the scheme. With this third action, the United States has averted the further victimization of those seeking COVID-19 protective gear, and disrupted the continued funding of ISIS.
The claims made in these three complaints are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government. Further, charges contained in criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI Cyber Crimes Unit (Washington, D.C.), HSI’s Philadelphia Office, and FBI’s Washington D.C., New York, and Los Angeles field offices are investigating the case. Assistant U.S Attorneys Jessi Camille Brooks and Zia M. Faruqui, and National Security Division Trial Attorneys Danielle Rosborough and Alexandra Hughes are litigating the case, with assistance from Paralegal Specialists Brian Rickers and Bria Cunningham, and Legal Assistant Jessica McCormick. Additional assistance has been provided by Chainalysis and Excygent.
Global Disruption of Three Terror Finance Cyber-Enabled CampaignsRead the Press Release
The Justice Department today announced the dismantling of three terrorist financing cyber-enabled campaigns, involving the al-Qassam Brigades, Hamas’s military wing, al-Qaeda, and Islamic State of Iraq and the Levant (ISIS). This coordinated operation is detailed in three forfeiture complaints and a criminal complaint unsealed today in the District of Columbia. These actions represent the government’s largest-ever seizure of cryptocurrency in the terrorism context.
These three terror finance campaigns all relied on sophisticated cyber-tools, including the solicitation of cryptocurrency donations from around the world. The action demonstrates how different terrorist groups have similarly adapted their terror finance activities to the cyber age. Each group used cryptocurrency and social media to garner attention and raise funds for their terror campaigns. Pursuant to judicially-authorized warrants, U.S. authorities seized millions of dollars, over 300 cryptocurrency accounts, four websites, and four Facebook pages all related to the criminal enterprise.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.
“It should not surprise anyone that our enemies use modern technology, social media platforms and cryptocurrency to facilitate their evil and violent agendas,” said Attorney General William P. Barr. “The Department of Justice will employ all available resources to protect the lives and safety of the American public from terrorist groups. We will prosecute their money laundering, terrorist financing and violent illegal activities wherever we find them. And, as announced today, we will seize the funds and the instrumentalities that provide a lifeline for their operations whenever possible. I want to thank the investigators from the Internal Revenue Service, Department of Homeland Security, Federal Bureau of Investigation, and the prosecutors from the D.C. United States Attorney’s Office and National Security Division for their hard and innovative work in attacking the networks that allow these terrorists to recruit for and fund their dangerous actions.”
"Terrorist networks have adapted to technology, conducting complex financial transactions in the digital world, including through cryptocurrencies. IRS-CI special agents in the DC cybercrimes unit work diligently to unravel these financial networks," said Secretary of the Treasury Steven T. Mnuchin. "Today's actions demonstrate our ongoing commitment to holding malign actors accountable for their crimes.”
“The Department of Homeland Security was born after the September 11, 2001 terrorist attacks and, nearly 20 years later, we remain steadfast in executing our critical mission to safeguard the American people, our homeland, and our values,” said Acting Secretary of Homeland Security Chad F. Wolf. “Today’s announcement detailing these enforcement actions targeting foreign terrorist organizations is yet another example of the Department’s commitment to our mission. After launching investigations that identified suspected online payments being funneled to and in support of terrorist networks, Homeland Security Investigations skillfully leveraged their cyber, financial, and trade investigative expertise to disrupt and dismantle cyber-criminal networks that sought to fund acts of terrorism against the United States and our allies. Together with our federal law enforcement partners, the Department will utilize every resource available to ensure that our Homeland is and remains secure.”
“These important cases reflect the resolve of the D.C. United States Attorney’s Office to target and dismantle these sophisticated cyber-terrorism and money laundering actors across the globe,” stated Acting United States Attorney Michael R. Sherwin. “While these individuals believe they operate anonymously in the digital space, we have the skill and resolve to find, fix and prosecute these actors under the full extent of the law.”
“IRS-CI’s ability to trace funds used by terrorist groups to their source and dismantle these radical group’s communication and financial networks directly prevents them from wreaking havoc throughout the world,” said Don Fort, Chief, IRS Criminal Investigation. “Today the world is a safer place.”
“As the primary law enforcement agency charged with defeating terrorism, the FBI will continue to combat illicit terrorist financing regardless of platform or method employed by our adversaries,” said FBI Director Christopher Wray. "As demonstrated by this recent operation, the FBI remains committed to cutting off the financial lifeblood of these organizations that seek to harm Americans at home and abroad."
“Homeland Security Investigations continues to demonstrate their investigative expertise with these enforcement actions,” said ICE Deputy Director and Senior Official Performing the Duties of the Director Matthew T. Albence. “Together with law enforcement partners, HSI has utilized their unique authorities to bring to justice those cyber-criminal networks who would do us harm.”
Al-Qassam Brigades Campaign
The first action involves the al-Qassam Brigades and its online cryptocurrency fundraising efforts. In the beginning of 2019, the al-Qassam Brigades posted a call on its social media page for bitcoin donations to fund its campaign of terror. The al-Qassam Brigades then moved this request to its official websites, alqassam.net, alqassam.ps, and qassam.ps.
The al-Qassam Brigades boasted that bitcoin donations were untraceable and would be used for violent causes. Their websites offered video instruction on how to anonymously make donations, in part by using unique bitcoin addresses generated for each individual donor.
However, such donations were not anonymous. Working together, IRS, HSI, and FBI agents tracked and seized all 150 cryptocurrency accounts that laundered funds to and from the al-Qassam Brigades’ accounts. Simultaneously, law enforcement executed criminal search warrants relating to United States-based subjects who donated to the terrorist campaign.
With judicial authorization, law enforcement seized the infrastructure of the al-Qassam Brigades websites and subsequently covertly operated alqassam.net. During that covert operation, the website received funds from persons seeking to provide material support to the terrorist organization, however, they instead donated the funds bitcoin wallets controlled by the United States.
The United States Attorney’s Office for the District of Columbia also unsealed criminal charges for two Turkish individuals, Mehmet Akti and Hüsamettin Karataş, who acted as related money launderers while operating an unlicensed money transmitting business.
Al-Qaeda Campaign
The second cyber-enabled terror finance campaign involves a scheme by al-Qaeda and affiliated terrorist groups, largely based out of Syria. As the forfeiture complaint details, these terrorist organizations operated a bitcoin money laundering network using Telegram channels and other social media platforms to solicit cryptocurrency donations to further their terrorist goals. In some instances, they purported to act as charities when, in fact, they were openly and explicitly soliciting funds for violent terrorist attacks. For example, one post from a charity sought donations to equip terrorists in Syria with weapons:
Undercover HSI agents communicated with the administrator of Reminder for Syria, a related charity that was seeking to finance terrorism via bitcoin donations. The administrator stated that he hoped for the destruction of the United States, discussed the price for funding surface-to air missles, and warned about possible criminal consequences from carrying out a jihad in the United States.
Posts from another Syrian charity similarly explicitly referenced weapons and extremist activities:
Al-Qaeda and the affiliated terrorist groups together created these posts and used complicated obfuscation techniques, uncovered by law enforcement, to layer their transactions so to conceal their actions. Today’s complaint seeks forfeiture of the 155 virtual currency assets tied to this terrorist campaign.
ISIS Campaign
The final complaint combines the Department’s initiatives of combatting COVID-19 related fraud with combatting terrorism financing. The complaint highlights a scheme by Murat Cakar, an ISIS facilitator who is responsible for managing select ISIS hacking operations, to sell fake personal protective equipment via FaceMaskCenter.com (displayed below)
The website claimed to sell FDA approved N95 respirator masks, when in fact the items were not FDA approved. Site administrators claimed to have near unlimited supplies of the masks, in spite of such items being officially-designated as scarce. The site administrators offered to sell these items to customers across the globe, including a customer in the United States who sought to purchase N95 masks and other protective equipment for hospitals, nursing homes, and fire departments.
The unsealed forfeiture complaint seized Cakar’s website as well as four related Facebook pages used to facilitate the scheme. With this third action, the United States has averted the further victimization of those seeking COVID-19 protective gear, and disrupted the continued funding of ISIS.
The claims made in these three complaints are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government. Further, charges contained in criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI Cyber Crimes Unit (Washington, D.C.), HSI’s Philadelphia Office, and FBI’s Washington D.C., New York, and Los Angeles field offices are investigating the case. Assistant U.S Attorneys Jessi Camille Brooks and Zia M. Faruqui, and National Security Division Trial Attorneys Danielle Rosborough and Alexandra Hughes are litigating the case, with assistance from Paralegal Specialists Brian Rickers and Bria Cunningham, and Legal Assistant Jessica McCormick. Additional assistance has been provided by Chainalysis and Excygent.
Fugitive Apprehended and Faces Federal Firearms and Drug ChargesRead the Press Release
St. Louis – Troy Jackson, 28, of St. Louis, Missouri, was charged by a federal complaint with being a felon in possession of a firearm, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.
According to the criminal complaint, on July 2, 2020, a felony arrest warrant was issued for Jackson by the State of Missouri Probation and Parole for violating his parole, following his imprisonment on burglary first degree charges. Jackson was also wanted on murder first degree and armed criminal action charges in relation to a homicide occurring during June, 2020. Further, Jackson was wanted on assault second and assault third charges arising from a separate incident.
During their investigation into Jackson’s whereabouts, on August 9, 2020 investigators learned that Jackson was at the Best Western St. Louis Inn on Heimos Industrial Park Drive, in St. Louis, Missouri.
Upon arriving at the hotel, law enforcement officers confirmed that Jackson was staying in a room at the hotel, having registered under a false name. Once the officers entered the hotel room, they located Jackson inside the room holding the magazine of a gun. A Mossberg 9mm pistol was nearby, on a table in plain view in the room. The magazine that Jackson was holding appeared to be compatible with the 9mm pistol on the table.
Located in a closet of the hotel room was a distribution amount of fentanyl, along with empty capsules in a nightstand. Jackson admitted possession of the pistol and fentanyl, and confessed to being a drug dealer.
“I stand in awe at the great teamwork of the men and women of the U.S. Marshals Metropolitan Fugitive Task Force. Once again the partnership forged with municipal, county, state, and federal task officers working side by side led to the apprehension of this dangerous felon without incident.” John Jordan US Marshal
This 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 U.S. Marshals Service Metropolitan Fugitive Apprehension Task Force and the St. Louis Metropolitan Police Department.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Former Union Officer and Daughter Charged with EmbezzlementRead the Press Release
NEWARK, N.J. – The former secretary treasurer of a Jersey City Medical Center union and her daughter made their initial appearances today on charges they embezzled $40,455 from the union’s checking and savings accounts, U.S. Attorney Craig Carpenito announced.
Linda Rogers, 71, and her daughter, Jennifer Rogers, 38, both of Jersey City, were indicted by a federal grand jury with one count each of conspiracy to embezzle and embezzlement. They allegedly embezzled $40,500 from Local 2254 of the American Federal State County and Municipal Amalgamated Transit Workers Union (AFSCME). The defendants made their initial appearances today by videoconference before U.S. Magistrate Judge Joseph A. Dickson and were released on bond. They will be arraigned Aug. 19, 2020, by videoconference before U.S. District Judge Stanley R. Chesler.
According to the indictment :
Linda Rogers was formerly employed at the Jersey City Medical Center as a medical clerk; she also held a part-time position at Local 2254 as its secretary treasurer. She had sole control over the union’s checkbook and savings account. From July 2016 through August 2017, she and her daughter, also a former employee at the hospital, deposited 112 unauthorized checks from the Local 2254’s checkbook to their joint checking and savings accounts, totaling $35,267. From October 2016 through December 2016, Linda Rogers made six telephonic wire transfers from the Local 2254’s savings account, totaling $5,188, into her personal credit card account. None of the expenditures were authorized or for legitimate union purposes. The total loss to AFSCME Local 2254 was $40,455.
The counts of conspiracy to embezzle and embezzlement each carry a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited the investigators of the U.S. Department of Labor, Office of Labor Management Standards, under the direction of Adriana Vamvakas, Regional Director; and special agents of the Department of Labor (OIG), New York Region, under the direction of Special Agent in Charge Michael Mikulka, with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former St. Ann Police Officer Indicted on Federal Civil Rights Charges for Causing Bodily Injury to an IndividualRead the Press Release
St. Louis – Former St. Ann Police Officer Ellis Brown has been indicted by a federal Grand Jury, United States Attorney Jeffrey B. Jensen announced today. According to the Indictment, Brown was working as an officer with the St. Ann Police Department on April 9, 2019 when he “willfully deprived” victim S.K. of his/her Constitutional right to be free from unreasonable seizures when Brown “repeatedly kicked S.K. while S.K. was compliant and not posing a physical threat to anyone.” According to the indictment, S.K. suffered bodily injury as a result of the incident.
"When making an arrest, a police officer is given the authority to use only the level of force necessary," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "In this case, Officer Ellis Brown is accused of using unreasonable force by repeatedly kicking an individual who was compliant and not posing a physical threat to anyone."
Brown made his initial appearance today before United States Magistrate Judge David D. Noce. Brown was allowed to remain free on bond, and was ordered to surrender any and all firearms, and will not be permitted to possess a firearm for any purpose so long as the case remains pending.
The charge Deprivation of Rights Under Color of Law carries a maximum penalty of ten years in prison, a fine of $250,000, or both imprisonment and a fine.
The Federal Bureau of Investigation investigated this case.
As is always the case, the charge in an indictment is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Former Meridian Police Officer Charged Federally with ExtortionRead the Press Release
Jackson, Miss. – A former member of the City of Meridian Police Department has been charged in a federal indictment with extortion under color of official right, announced United States Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
The indictment returned by a federal grand jury on July 28, 2020, and unsealed today, charges former Meridian Police Officer Royric “Roy” Benamon, 27, with two counts of extortion under color of official right, in violation of 18 U.S.C. § 1951(a).
“Fighting public corruption is a top priority of this office, as our society is undermined when those in positions of power become corrupted and abuse the public trust for personal gain. We will continue to root out corrupt officials who endanger our communities and tarnish the reputation of our law enforcement who serve and protect us so honorably,” said U.S. Attorney Hurst.
According to the indictment, in April 2020, then-Officer Benamon on two separate occasions pulled over drivers in the middle of the night in Lauderdale County, and received from each of them cash payment in exchange for not issuing the driver a ticket. Benamon resigned from the Meridian Police Department immediately following public disclosure of the alleged incidents.
FBI Agents and Task Force Officers arrested Benamon on Wednesday without incident. Benamon appeared for arraignment today before United States Magistrate Judge Linda Anderson in Jackson. The Court released Benamon on bond, subject to conditions including that he refrain from violations of state or federal law while awaiting trial.
Trial has been set for October 5, 2020 before Chief U.S. District Judge Daniel P. Jordan, III in Jackson.
If convicted Benamon faces maximum penalties of 20 years in prison for each count charged for extortion under color of official right. Each count also can merit a fine of up to $250,000.
U.S. Attorney Hurst commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case with assistance from the Mississippi Attorney General’s office. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Former Medical Student Pleads Guilty to Online Sextortion SchemeRead the Press Release
NORFOLK, Va. – A Canadian man pleaded guilty yesterday to orchestrating an online sextortion scheme and producing images of child sexual abuse.
“Marco Viscomi’s criminal conduct is nothing short of horrendous,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Producing images of child sexual abuse is heinous and causes incalculable and unknowable harm to victims. The actions that Viscomi engaged in are one of the most offensive and serious crimes in the entire criminal code. We will continue to shine a light on the darkest areas of the web and protect those that are unable to protect themselves.”
“Let this case serve as notice to online predators. Homeland Security Investigations began this case with the Virginia Beach Police Department more than eight years ago and didn’t relent until justice was served,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. “Individuals who prey on children cannot hide behind their electronic devices and screen names. We will find and arrest you and ensure you are prosecuted to the fullest extent of the law.”
According to court documents, Viscomi, 35, of Ontario, was first identified by the Virginia Beach Police Department (VBPD) and Homeland Security Investigations (HSI) in 2012. In January 2012, a father of two girls, then ages 13 and 17 years old, had reported to the VBPD that his daughters had been extorted by someone they met online. The person online threatened the girls and forced them to engage in sexually explicit conduct and produce images of child sexual abuse. The VBPD and HSI traced the culprit to Ontario and identified Viscomi as the person responsible. Viscomi was a 26-year-old medical student at that time.
Additional investigation uncovered Viscomi had engaged in similar sextortion conduct against dozens of other minor victims around the United States. In July 2012, Viscomi was charged in federal court in the Eastern District of Virginia and arrested in Canada. He fought extradition to the United States until December 2019, when the Canadian courts finally ordered him extradited to Norfolk to face the charges.
Viscomi pleaded guilty to two counts of production of child pornography. Viscomi faces a mandatory minimum of 15 years per count and a maximum penalty of 30 years in prison per count when sentenced on Jan. 14, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Anthony F. Zucaro, Jr., Interim Chief of Virginia Beach Police, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorneys Attorney Elizabeth M. Yusi and E. Rebecca Gantt are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:12-cr-312.
Former Leesburg Resident Pleads Guilty to Child Pornography OffenseRead the Press Release
ALEXANDRIA, Va. – A man who previously resided in Leesburg pleaded guilty yesterday to downloading images of child sexual abuse over the internet.
According to court documents, Jason E. Holmes, 49, of Martinsburg, West Virginia, is a design professional who previously resided in Leesburg prior to moving to West Virginia. Holmes admitted that from October 2016 to April 2018 he intentionally searched for, downloaded, and occasionally paid for access to images and videos depicting the sexual abuse of children. Holmes engaged in this conduct, and discussed these images and videos with others, using the dark web, peer-to-peer software, and password-protected websites on the open internet.
Law enforcement discovered tens of thousands of images and videos depicting the sexual abuse of children across 13 different electronic devices seized from his home, as well as evidence that Holmes used encryption technology on these devices. Additionally, during the search law enforcement recovered enlarged, printed-out images of child pornography that Holmes admitted to posting to foamboard cutouts and placing around his home.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.
Holmes pleaded guilty to receipt of child pornography, and faces a mandatory minimum sentence of five years and a maximum sentence of 20 years in prison when sentenced on October 27. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea. Special Assistant U.S. Attorney William G. Clayman is prosecuting the case. Former Assistant U.S. Attorney Laura Fong assisted with the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-57.
Former CEO Charged with Wire Fraud and Money LaunderingRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Jason Cory (47, Jacksonville) with three counts of wire fraud and one count of money laundering. If convicted, he faces up to 20 years in federal prison for each count of wire fraud and up to 10 years’ imprisonment for the money laundering offense. The indictment also notifies Cory that the United States is seeking a money judgment of at least $558,701.40, the proceeds of the charged criminal conduct.
According to the
indictment , Cory was the Chief Executive Officer of an information technology services company. From approximately March 2017 through March 2019, Cory embezzled $547,071.10 from the company by authorizing and directing wire transfers out of its corporate accounts to an entity named Gambit Matrix LLC (Gambit). Cory informed employees that Gambit had performed consulting services for the company, when in reality, Gambit was a shell company controlled by Cory. Cory also controlled the Gambit bank account into which the embezzled funds were transferred, and used them for his personal expenses, including the purchase of a Rolex watch costing $11,630.30. Cory attempted to conceal his embezzlement by lying to employees and board members about his control over Gambit, attempting to persuade people to portray fictitious owners of Gambit, creating social media profiles and email addresses for those fictitious owners, and falsifying documents to substantiate the fictitious work being performed by Gambit.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney David B. Mesrobian.
Five Men Indicted for Using Skimming Devices on Gas Pumps in Nevada and Southern California to Steal Customers' Credit Card InformationRead the Press Release
LAS VEGAS, Nev. – A federal grand jury returned an indictment last week against five men for allegedly installing skimming devices on gas pumps in Nevada and Southern California to steal credit and debit card information from unsuspecting customers, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Brian Spellacy of the U.S. Secret Service, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).
Five defendants, all of whom live in Las Vegas, face charges related to access device fraud, conspiracy, and aggravated identity theft: Juan Luis Sosa Tamayo, 31; Adrian Leyva Tamayo, 31; Dayner Manuel Alarcon Rodriguez, 22; Alen Boucourt Diaz, 39; and Francisco Rodriguez Gonzalez, 34.
According to allegations in the indictment, from about June 2018 to about June 2020, the defendants and their co-conspirators placed skimmers at gas pump terminals that compromised at least 2,500 credit and debit card numbers. The defendants traveled to gas stations in and around Las Vegas and Reno, Nevada, as well as to various cities in Southern California, to install the skimmers. They subsequently recoded the stolen account information and other personal data onto counterfeit cards. Then the defendants made multiple ATM withdrawals and purchases using the stolen credit and debit card account information obtained from the skimmers.
Sosa Tamayo, Leyva Tamayo, and Rodriguez Gonzalez made their initial appearances on August 7, 2020 in federal court before U.S. Magistrate Judge Daniel J. Albregts. Boucourt Diaz made his initial appearance on August 10, 2020, and Alarcon Rodriguez made his initial appearance on August 12, 2020 in federal court before U.S. Magistrate Judge Brenda Weksler.
The statutory maximum penalty for the conspiracy charge is 5 years in prison and a $250,000 maximum fine. The statutory maximum penalty is 10 years in prison and a $250,000 maximum fine for each count of use or possession of unauthorized or counterfeit access devices. The aggravated identity theft charges carry a mandatory penalty of two years in prison. In addition to imprisonment and fines, each defendant also faces a period of supervised release, restitution, and monetary penalties. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only.
An indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is the product of an investigation by the U.S. Secret Service and the LVMPD. Assistant U.S. Attorney Jamie Mickelson is prosecuting the case.
If you are a victim of identity theft, you may make a report to the Federal Trade Commission (FTC) by calling 1-877-438-4338 or online at www.identitytheft.gov. For identity theft prevention tips and free resources visit www.ftc.gov/idtheft.
###
Five Indicted on Meth ChargesRead the Press Release
PITTSBURGH, PA – Four residents of Westmoreland County, Pennsylvania, and one resident of Cypress, California, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment names the following five individuals:
• Zachary Miller, 27, of Greensburg, Pennsylvania;
• Alan Masecar, 33, of Latrobe, Pennsylvania;
• Joshua Birrell, 37, of Cypress, California;
• Samuel Miller, 25, of Greensburg, Pennsylvania; and
• Jessica Palmer, 39, of Greensburg, Pennsylvania.
According to the Indictment, from September 2017 to August 2020, the five defendants conspired to distribute and possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. The Indictment further charges Masecar with attempting to possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, on or about December 23, 2019. The Indictment further charges Zachary Miller and Palmer with possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, on or about February 15, 2020.
Zachary Miller is a fugitive from justice. Anyone with information is urged to contact the FBI at 412-432-4000. (SEE NOTE BELOW)
The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000 or both, as to Count One, and a total sentence of not less than five years to a maximum of forty years in prison, a fine not to exceed $5,000,000 or both, as to Counts Two and Three. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation Greater Pittsburgh Safe Streets Task Force led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, Allegheny County Sheriff’s Office, Pennsylvania State Police, and Pennsylvania Office of Attorney General Bureau of Narcotics Investigations.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
NOTE: Zachary Miller self-surrendered to FBI on August 16, 2020.
Felon, living in federal half-way house, indicted for attempted sex trafficking of a minorRead the Press Release
(Seattle) — A repeat offender, who had just been released to a half-way house from federal prison, has been indicted by the grand jury for attempted sex trafficking of a juvenile and attempted enticement of a minor, announced U.S. Attorney Brian T. Moran. PRENTICE C. HOLLINGSWORTH, 45, faces a mandatory minimum ten years in prison if convicted of the charges. HOLLINGSWORTH will be arraigned on the charges August 20, 2020.
According to records filed in the case, HOLLINGSWORTH was released to a federal half-way house in Tacoma in December 2019. Less than a month later, he began communicating with an undercover Seattle Police Officer he had contacted via a web application. In these communications, HOLLINGSWORTH attempted to recruit the undercover officer, who presented herself as a 15-year-old girl, to work for him as a prostitute. HOLLINGSWORTH discussed many aspects of the prostitution business, including the fee he would charge the “juvenile” for his services as a pimp and the prices she should charge for various sex acts. HOLLINGSWORTH also advised the “juvenile” that she could earn more money from sex buyers because of her age, and he encouraged her to leave school so she could devote more time to earning money in the sex trade.
In January 2020, HOLLINGSWORTH was arrested at the half-way house in Tacoma shortly after he arranged for the “juvenile” to check into a hotel room in Fife, Washington, for the purpose of prostitution.
Both counts in the indictment are punishable by a mandatory minimum ten years in prison and up to life in prison. HOLLINGSWORTH is already on lifetime federal supervised release because of prior sex offenses.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Kate Crisham.
Felon Sentenced to 30 Months in Prison for Illegally Possessing A Firearm and AmmunitionRead the Press Release
TULSA, Okla. – A Tulsa man has been sentenced to 30 months in prison for unlawful possession of a loaded .357 Magnum revolver and an additional 20 rounds of loose ammunition after multiple prior felony convictions. Defendant Rodney Burton was convicted by a jury of his peers on February 20, 2020.
On August 13, 2020, U.S. District Judge Gregory K. Frizzell granted the government’s request for a longer prison sentence and sentenced Defendant Rodney Burton to a term of 30 months in prison and three years of supervised release. The government argued for an enhanced federal sentence based upon Burton barricading himself inside his residence at the time of his arrest, threatening to shoot law enforcement officers, and a previous domestic violence incident.
“I commend U.S. District Judge Frizzell for handing down this two and one half year sentence of imprisonment. It sends a strong message of deterrence to every convicted felon who would illegally possess a firearm or ammunition,” said U.S. Attorney Shores. “The public can expect to see more of these types of prosecutions. One way to reduce violent gun crime is to prosecute persons who illegally possess guns. That’s just what the Tulsa Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and U.S. Attorney are going to do here in northern Oklahoma.”
At the sentencing hearing today, the government called an officer and a U.S. Marshals Service task force officer to discuss the prior domestic violence incident and the circumstances of Burton’s arrest in this case. USMS TFO Ian Soergel testified that Burton refused to obey officer commands and barricaded himself into his residence causing them to use a bearcat breaching tool to apprehend him. Soergel also testified that Burton threatened to shoot officers in the process of being placed into custody. Burton represented himself and identifies himself as a Moorish national.
Burton will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant U.S. Attorneys Mark R. Morgan and D. Edward Snow prosecuted the case.
The case was prosecuted as part of the Justice Department’s Project Guardian, a nationwide initiative leveraging critical law enforcement partnerships to enforce federal firearms laws. Project Guardian is the Department’s signature initiative to reduce gun violence and enforce federal firearms laws. Project Guardian draws upon the Justice 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). This includes taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Federal Task Force Formed in Response to Significant Increase in Louisville CarjackingsRead the Press Release
LOUISVILLE, Ky. – As carjacking skyrockets in Louisville, the FBI, joined by the Louisville Metropolitan Police Department, the Bureau of Alcohol Tobacco & Firearms, Homeland Security Investigations, Jefferson Co. Sheriff’s Office and the Kentucky State Police have set up a new task force in an effort to take more cases federal – where penalties range up to more than a decade in a federal penitentiary and parole does not exist. This new effort will be in close consultation with the Jefferson Commonwealth’s Attorney’s Office.
Carjacking is a federal crime punishable by imprisonment of up to 15 years and a fine of $250,000. However, if a victim of a carjacking suffers serious bodily injury, the maximum term of imprisonment is up to 25 years. And, if the carjacking victim is killed as a result of the carjacking, a defendant may be imprisoned for any number of years up to life, or sentenced to death. Additionally, if the defendant brandishes a firearm, a consecutive mandatory minimum sentence of seven years is added. If a firearm is discharged, a consecutive mandatory minimum sentence of ten years is added to the sentence. There is no parole in the federal system.
“Put Louisville families at risk though carjacking then be prepared to go to federal prison,” said U.S. Attorney Russell Coleman. “We will respond to this increasing threat to neighborhoods across our city and pledge closer collaboration with our state & local partners to reverse the disturbing trend.”
The FBI Louisville Field Office and law enforcement partners are offering incentives in the form of federal overtime, vehicles and training for Jefferson County law enforcement agencies who are participating in the task force.
"Helping to foster safe communities continues to be a primary focus of FBI Louisville,” said FBI Louisville Division SAC Robert Brown. “As preventing violent crime is a bedrock of the FBI, we look forward to working with and leading a new violent crime task force comprised of FBI, ATF, LMPD, KSP, HSI, and JCSO."
“We have seen a disturbing number of carjackings over the past few weeks,” said LMPD Interim Chief Rob Schroeder. “We are grateful for this collaboration with our federal partners, who always step up for this city when we see spikes in crime or alarming trends in violence.”
“Carjackings are violent crimes that harm our communities and threaten the public’s safety,” stated R. Shawn Morrow, ATF Special Agent in Charge of the Louisville Division. “ATF Special Agents will work closely with our law enforcement partners in order to stop this trend and find those responsible. The combined efforts of our law enforcement partners with the U.S. Attorney’s Office will go a long way in quickly shutting down these violent robberies.”
“The reduction and prevention of violent crime is important regardless where it takes place in our state,” said KSP Commissioner Rodney Brewer. “The Kentucky State Police is committed to providing whatever resources we have available to combat carjacking and other crimes in and around the Louisville Metro region.”
There has already been one such carjacking case taken federal in Louisville. Damion Lemont Hayes, 20, of Louisville, Kentucky, has been charged with carjacking. Hayes was on a felony diversion at the time of the carjacking as a result of a February 2020 conviction for charges that were initially filed as complicity to murder and complicity to robbery.
According to a criminal complaint, on June 2, 2020, the victim was driving a black 2017 Subaru Forester with a friend down Bardstown Road. The two victims ran into protestors and police activity on Bardstown – they parked to see what was going on. As the victims were walking they were asked for a ride by two females and five males. They all walked back to the victims’ Subaru, however, only three of the males got in the car.
The victim continued to drive down Bardstown, but was caught in traffic. According to the victim, she was uncomfortable with the men in the car, and told them she needed to get gas. She was directed by one of the men to BP, where one of the men put $20 worth of gas in the Subaru. The driver was then directed to drive to three different houses.
The victim reported she wanted the men out of the car, and as she turned to tell them she needed to get home one of the men in the rear passenger side of the car pointed a gun at her. At that point both victims were forced out of the car. The men attempted to take their cell phones, according to the complaint. A minor struggle ensued and one of the men was sprayed with mace by the owner of the car.
The federal carjacking charge carries a penalty of no more than 15 years, a maximum fine of $250,000 and no more than three years of supervised release.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, the Louisville Metro Police Department, the Kentucky State Police, the Jefferson Co. Sheriff’s Office, and the United States Attorney’s Office comprise the task force with additional local departments expected to participate as well.
####
Ex-correctional officer sentenced to federal prison for accepting bribesRead the Press Release
WAYCROSS, GA: A former correctional officer has been sentenced to federal prison for accepting bribes in return for smuggling contraband to an inmate.
Micheal Eaddy, 25, of Blackshear, Ga., was sentenced to six months in prison after pleading guilty in U.S. District Court to one count of Bribery, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. At the time of the offense, Eaddy was a correctional officer at D. Ray James Correctional Facility, a private prison operated under federal contract in Folkston, Ga. After completion of his prison term, Eaddy must serve three years of supervised release.
“Michael Eaddy sold out his fellow corrections staff and forfeited his own freedom when he accepted money in return for smuggling contraband into the prison,” said U.S. Attorney Christine. “His crime endangered other prison guards and the security of the entire facility, and as a result he’ll now spend time on the wrong side of the prison bars.”
In his guilty plea, Eaddy admitted accepting a bribe of $246.25 from inmate Jean Civil, 25, of Port-au-Prince, Haiti, in return for smuggling cigarettes into the prison. Investigators discovered the activity after seizing a contraband phone from Civil and reading electronic conversations between Civil and Eaddy.
After pleading guilty to Possession of Contraband, Civil received one month added to his current sentence of 78 months for Conspiracy to Distribute 500 Grams or More of Cocaine.
“Eaddy put his own interests above his duties when he accepted bribes from an inmate and smuggled contraband into the prison he was supposed to secure,” said Special Agent in Charge James F. Boyersmith, Department of Justice Office of the Inspector General, Miami Field Office. “He will rightly serve time for his actions, which put his fellow correctional officers, prison staff, and the entire institution at risk.”
The case was investigated by the U.S. Department of Justice Office of the Inspector General, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Ellington Man Sentenced to Nearly 29 Years in Federal Prison for Child Exploitation OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SIMON HESSLER, 48, formerly of Ellington, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 347 months of imprisonment, followed by 10 years of supervised release, for child exploitation offenses.
According to court documents and statements made in court, in October 2018, a Connecticut State Police detective identified Hessler as a person possibly involved in the sex trafficking of minors. Hessler began communicating with the detective, who was acting in an undercover capacity, and told the detective that he maintained a sex dungeon on the top floor of his office building that was full of devices including a cage, stocks, handcuffs, whips and other devices. Hessler offered to pay the detective $500 for two-days of “slave training” and “limitless sex” with a 12-year-old “DCF child.” Once the detective agreed to the “sale,” Hessler required the “DCF child” be left in a trailer near a hotel he operated in Manchester, and told the detective to send him a picture of the child gagged, blindfolded and handcuffed before he would reveal the location of the cash payment. After the detective sent Hessler a photo of an image that appeared to be a child bound on the floor of a trailer, Hessler revealed the location of the money. On November 13, 2018, Hessler was arrested after he exited his car and began walking toward the trailer.
After his arrest, investigators accessed a USB drive that had been inside a safe in Hessler’s “sex dungeon” in Vernon. The USB drive contained thousands of photos and videos that contained both child pornography and child erotica, including approximately 60 images of a specific female who was under the age of 12. The investigation revealed that, between July 2016 and November 2018, Hessler sexually abused the minor female, and he used a used a cellular phone to produce images of the sexual abuse.
Hessler has been detained in state custody since his arrest. On December 11, 2019, he pleaded guilty in federal court to one count of production of child pornography.
Hessler also was charged in both the Hartford Judicial District and the Tolland Judicial District with related state offenses. On December 17, 2019, he pleaded guilty to several of those offenses, including two counts of sex assault in the fourth degree, two counts of risk of injury, and multiple counts related to his attempt to commit commercial sex abuse of a minor under the age of 13, unlawful restraint and attempt to commit intentional cruelty. Today’s sentencing is part of a global resolution of all federal and state charges. Hessler is expected to be sentenced to 30 years of incarceration for the state offenses, and Judge Underhill ordered Hessler’s federal sentence to run concurrently with his state sentence.
This matter was investigated by the Connecticut State Police and the Federal Bureau of Investigation. The case federal case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
U.S. Attorney Durham thanked the Hartford and Tolland State Attorney’s Offices for their cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
El Paso County Man Sentenced to Federal Prison for Possession of Stolen MailRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Jeffrey Hermansen, age 37, of El Paso County, Colorado, was sentenced to serve 27 months in federal prison, followed by 3 years on supervised release, for possession of stolen mail. Hermansen appeared remotely in custody and was remanded at the hearing’s conclusion. The U.S. Postal Inspection Service joined in today’s announcement.
According to the stipulated facts in his plea agreement, on December 18, 2018, law enforcement found Hermansen in an El Paso County hotel room, taking him into custody based on an active warrant for a federal supervised release violation. While conducting a protective sweep of his hotel room, officers noticed a mail parcel addressed to an individual other than Hermansen. Police contacted that person and discovered that the package had been stolen while in the mail. With that information, officers obtained a search warrant for the hotel room, where they discovered 452 pieces of stolen mail, including stolen credit cards, gift cards and checks either from or addressed to 33 victims. The total loss for the stolen mail possessed by the defendant was approximately $24,257.00.
“The public must be able to rely on a safe and secure mail system,” said U.S. Attorney Jason Dunn. “ Hopefully others considering such crimes will see the serious penalties here and think again.”
“Postal Inspectors across Colorado are always ready to seek those who disrupt the safe passage of the U.S. Mail, and bring them to justice,” said Ruth M. Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “We hope today’s sentence will serve as a deterrent to all mail thieves, proving they cannot hide from the diligent work of the U.S. Postal Inspection Service.”
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-487. The sentence was pronounced by Chief U.S. District Court Judge Phillip A. Brimmer. Hermansen was prosecuted by Assistant U.S. Attorney Brian M. Dunn.
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.
Eighteen Defendants Charged in Long-Term Investigation of the Lowrider Criminal Street GangRead the Press Release
DAVENPORT, Iowa – Eleven members and associates of the Lowriders, a Davenport- based street gang, have been charged in federal court in Davenport for various crimes, including violent crimes in aid of racketeering, drug trafficking, tampering with witnesses, the knowing transfer of a handgun to a juvenile, lying to the grand jury, use of persons under 18 years of age in drug operations, and firearms charges. Five members or associates of the Lowriders are charged in state court for intimidation with a dangerous weapon, willful injury, criminal gang participation, and drug- related offenses.
Two other members were previously charged with federal firearms violations. Specifically, in November 2019, Alejandro Francisco Herrera, Jr. was sentenced after pleading guilty to being a prohibited person in possession of a firearm and possession of a controlled substance. In February 2020, Zacharia Allen Clark was sentenced to 200 months of imprisonment after pleading guilty to being a prohibited person in possession of ammunition related to an incident in which he shot at another person in the parking lot of a Davenport nightclub.
Many of the defendants were arrested earlier this week stemming from a years-long investigation of this criminal gang trafficking organization. Those arrested on federal charges include AUSTIN NICHOLS, ADAN HERRERA, CODY HERRERA a/k/a Cody Williamson, KERRI JOANNE REITZ, JOSE MIGUEL PENA, ANDRES JOSEPH ARRIAGA, and TEVIN MAXWELL LIRA. In addition, MARCOS MAGDALENO, CALVIN MORROW, a juvenile defendant, and two others were charged with state crimes arising from this investigation. The identities of those who have not yet been arrested remain sealed at this time.
The charges were announced by Marc Krickbaum, United States Attorney for the Southern District of Iowa; Mike Walton, Scott County Attorney; and Paul Sikorski, Davenport Police Chief. In addition, the Federal Bureau of Investigation, Drug Enforcement Administration, Iowa Department of Criminal Investigations, Bettendorf Police Department, Moline Police Department, and Scott County Sheriff’s Office assisted in the investigation.
“As the indictment alleges, the Lowriders street gang is a criminal enterprise,” said United States Attorney Marc Krickbaum. “Members of the gang illegally carry guns, peddle drugs, and shoot up neighborhoods while warring with rival gangs. We will continue to work with all our partners to charge these criminals in state court or federal court with whatever crimes we can prove, from attempted murder to witness tampering.”
“While we only have five of the gang members now as part of this takedown, we have been a part of prosecutions on these individuals for years, and have witnessed how much havoc they have been wreaking on our community,” stated Amy DeVine, First Assistant Scott County Attorney. “We are pleased to see the investigation lead to federal charges on so many of them because we know the sentencing guidelines on the federal side is much more appropriate than what is available to us on the state side. We are committed to coordinating with law enforcement and the federal government in order to appropriately handle these cases, every time that we can.”
“The Davenport Police Department is committed to leveraging all resources available to combat violent crime in our city,” stated Davenport Police Chief Paul Sikorski. “As you can see demonstrated through the collaborative efforts of local, county, state and federal law enforcement teamed up with our county and federal prosecutors to bring those responsible for violence in our community to justice.”
It is alleged that the Lowrider Street Gang is a criminal enterprise that engaged in racketeering activity, namely offenses involving controlled substances; acts involving murder; and acts relating to the tampering with a witness, victim, or informant. The Lowrider Street Gang and its members are alleged to have preserved and protected the profits of the gang through the threatened or physical use of violence and kept victims and witnesses in fear of the street gang through these threats of violence. In addition, it is alleged the Lowrider Street Gang provided support to gang members who were incarcerated for gang-related activities; and retaliated against acts of violence perpetrated against the street gang including acts of violence against rival gangs known as the West Side Mafia and Latin King street gang. The Lowrider Street Gang allegedly operated and conducted their affairs through a series of rules and policies; held regular meetings at which they discussed, planned, and otherwise engaged in criminal activity; and initiated new members through the practice of causing them to endure physical assaults conducted by members of the gang at various gang-related gatherings. It is alleged members agreed to distribute drugs, recruited juveniles to commit violent acts for the gang’s benefit, and agreed or conspired to commit acts of violence, including acts involving murder, against rival gangs.
DEFENDANTS
AUSTIN NICHOLS
Title 18, U.S.C. § 1959(a)(2) – Assault With a Dangerous Weapon in Aid of Racketeering
Maximum Penalty is 20 years of imprisonment
ADAN HERRERA
Title 26, U.S.C. §§ 5841, 5845, 5861(c), 5861(d), 5871 – Receipt or Possession of Firearm Made in Violation of NFA
Maximum Penalty is 10 years of imprisonment
Title 18, U.S.C. § 924(c)(1)(A)(i), 924(c)(1)(B)(i) – Possession of a Firearm in Furtherance of Drug Trafficking
Maximum Penalty is life imprisonment; mandatory minimum of 10 years of imprisonment
CODY HERRERA
Title 18, U.S.C. § 922(g)(3) – Prohibited Person in Possession of Firearms
Maximum Penalty is 10 years of imprisonment
KERRI REITZ
Title 18, U.S.C. § 3 – Accessory After the Fact
Maximum Penalty is 15 years of imprisonment
JOSE MIGUEL PENA
Title 18, U.S.C. § 1959(a)(2) – Assault With a Dangerous Weapon in Aid of Racketeering
Maximum Penalty is 20 years of imprisonment
ANDRES ARRIAGA
Title 18, U.S.C. § 1512 – Tampering With a Witness
Maximum Penalty is 20 years of imprisonment
Title 18, U.S.C. § 1623 – False Declarations Before a Grand Jury
Maximum Penalty is 5 years of imprisonment
TEVIN LIRA
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years of imprisonment
The years-long investigation culminated in the execution of federal gang and firearm search warrants at the following locations on August 10 and 11, 2020. Law enforcement officers seized four guns, one of which had an obliterated serial number; cocaine at two residences; marijuana, and Lowrider Street Gang paraphernalia at almost every location.
- 2100 block of West 18th Street, Davenport
- 1400 block of Sixth Street, Davenport
- 2200 block of West Second Street, Davenport
- 1700 block of West 17th Street, Davenport
- 1500 block of West 38th Street, Davenport
- 1600 block of West 9th Street, Davenport
- 1300 block of Warren Street, Davenport
- 5300 block of Gaines Street, Davenport
- 5100 block of North Fairmount Street, Davenport
- 700 block of LeClaire Street, Davenport
The charges in the indictment carry maximum penalties of between 10 years and life imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. There is no parole in the federal court system.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Eight Robles Park Gang Members and Associates Indicted for Drug Trafficking ViolationsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an
indictment charging eight members of a drug trafficking organization with offenses related to the distribution of cocaine and heroin. (See chart for details).According to court records, this investigation targeted illegal drug traffickers operating an open-air drug market in the Robles Park Housing Community in Tampa. During the course of the investigation, law enforcement officers seized approximately 2.5 kilograms of cocaine and approximately $52,000.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation is the result of a partnership between the United States Attorney’s Office, the Drug Enforcement Administration, the Tampa Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Florida Highway Patrol, and the Lakeland Police Department. It will be prosecuted by the Assistant United States Attorney Callan L. Albritton.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
SUMMARY CHART
Name
(Age, Residence)
Charges
Penalties
Darron Dexter Matthew McNeal
(30, Tampa)
Conspiracy to distribute and possess with intent to distribute 5 kg or more of cocaine and 100g or more of heroin
Distribution of cocaine (3 counts)
Minimum mandatory term of 10 years, and up to life, in federal prison
Up to 20 years in federal prison per count
Jose Angel Andujar, a/k/a “Zay”
(43, Orlando)
Conspiracy to distribute and possess with intent to distribute 5 kg or more of cocaine
Possession of 500 g or more of cocaine with the intent to distribute
Minimum mandatory term of 15 years, and up to life, in federal prison
Minimum mandatory term of 5 years, and up to 40 years in federal prison
Tywon Jamarquise Spann
(24, Tampa)
Conspiracy to distribute and possess with intent to distribute 5 kg or more of cocaine
Distribution of cocaine (3 counts)
Minimum mandatory term of 10 years, and up to life, in federal prison
Up to 20 years in federal prison per count
Antonio A. Diaz, Jr.
(29, Tampa)
Conspiracy to distribute and possess with intent to distribute 5 kg or more of cocaine
Distribution of cocaine
Minimum mandatory term of 10 years, and up to life, in federal prison
Up to 20 years in federal prison
James Edward Moore, a/k/a “Doc”
(44, Tampa)
Conspiracy to distribute and possess with intent to distribute 5 kg or more of cocaine
Distribution of cocaine (2 counts)
Minimum mandatory term of 10 years, and up to life, in federal prison
Up to 20 years in federal prison per count
Zarron Dexter McNeal
(56, Tampa)
Conspiracy to distribute and possess with intent to distribute 100 g or more of heroin
Distribution of fentanyl and heroin
Minimum mandatory term of 5 years, and up to 40 years, in federal prison
Up to 20 years in federal prison
Omar Rashada Bacon
(33, Tampa)
Conspiracy to distribute and possess with intent to distribute 100 g or more of heroin
Minimum mandatory term of 5 years, and up to 40 years, in federal prison
Juan Manuel Corrales
(30, Tampa)
Conspiracy to distribute and possess with intent to distribute 100 g or more of heroin
Minimum mandatory term of 5 years, and up to 40 years, in federal prison
Drug-Dealing, White Supremacist Stripper Sentenced for Obstruction of JusticeRead the Press Release
TEXARKANA, Texas – A 28-year-old Dallas, Texas, man has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
On March 6, 2020, a federal jury found Collin Garrett Hayden guilty of obstruction of justice, and he pleaded guilty to possessing a weapon in jail before the trial began. He was sentenced to 200 months in federal prison today by U.S. District Judge Robert W. Schroeder, III.
According to information presented in court, in 2016, law enforcement began an investigation into methamphetamine trafficking from Dallas into East Texas. During the investigation, police intercepted Hayden and his roommate on an undercover recording offering to sell drugs to another individual. Further investigation revealed Hayden sold cocaine in the Dallas strip clubs in which he performed, and additionally sold methamphetamine to a Shreveport, Louisiana buyer.
When Hayden learned of his pending federal charges, he turned on his roommate and threatened to kill him. Hayden later described his plan to have the roommate killed by members of Hayden’s white supremacist prison gang. While in custody at the Titus County jail, Hayden obtained a shank-type weapon and threatened to kill any guards who entered his cell, all in retaliation for a guard reporting Hayden for attempting to illegally obtain a cell phone by bribe. Hayden was indicted by a federal grand jury on April 19, 2017, and charged with federal violations.
The case was investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Donald Carter.
Department of Justice Awards over $1 Million in Forensic Grants to Aid Wyoming InvestigatorsRead the Press Release
Attorney General William P. Barr today announced that the Department of Justice has awarded more than $1 million in forensic grants to help Wyoming officials protect citizens from dangerous drugs, sexual perpetrators and violent criminals.
The Attorney General made the announcement during a roundtable meeting with state and local law enforcement officials in Wyoming, where he joined Wyoming Attorney General Bridget Hill, U.S. Attorney for the District of Wyoming Mark Klaassen, Interim Director of Wyoming Division of Criminal Investigation Forrest Williams, and DEA Acting Administrator Tim Shea.
“Wyoming law enforcement work diligently every day to combat drug traffickers and dangerous criminals in their state,” said Attorney General Barr. “The important investments in building lab capacity and expanding forensic capabilities announced today will help squelch the flow of illegal drugs, prevent sex offenders from doing additional harm, and keep violent criminals off the streets of Wyoming’s communities.”
“Every day across Wyoming, traffickers and dangerous criminals look to bring lethal drugs and violence into our communities, while law enforcement agencies across the state are working around the clock to keep crime and addiction at bay,” said U.S. Attorney Klaassen. “These new resources will give our investigators and crime lab professionals state-of-the-art tools that they can leverage in the fight to protect Wyoming’s citizens and ensure that justice is served.”
The three grants from the Department’s Office of Justice Programs are being made to the Wyoming Attorney General’s Office. Awards from OJP’s Bureau of Justice Assistance (BJA) will allow analysts to test samples and interpret results in cases involving violent crime and dangerous drugs. Some of the funds will go specifically to help toxicologists analyze opioids and reduce the backlog of opioids and synthetic drugs that have been submitted for testing. BJA funds will also cover training, equipment and overtime costs for DNA analysts. A grant from OJP’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART Office) will allow the entry of DNA evidence from sex offenses into the sex offender registry and help to upgrade technology, collection methods and storage capacity in an effort to link sexual perpetrators to other crimes in the DNA database.
States across the country are seeing a surge in activity involving methamphetamine and dangerous synthetic drugs like fentanyl. Wyoming is no exception. Drug traffickers use the state’s highways to transport illicit substances and introduce them into communities, where they fuel a cycle of addiction and crime. In July, a convicted drug courier received a 20-year prison sentence for carrying 46 pounds of meth along with significant quantities of cocaine, fentanyl and heroin. The case was the largest drug bust in the state’s history.
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 is located at www.ojp.gov.
College Station man admits guilt to multiple charges under Project Safe ChildhoodRead the Press Release
HOUSTON – A 35-year-old Texan has entered a guilty plea to coercion and enticement as well as receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Ryan Dale McWhorter had been in a chat group dedicated to the sexual exploitation of children. There, he began communicating with someone he believed to be the stepfather of a 9-year-old girl. McWhorter expressed his sexual interest in the child and asked for naked photos of her, to include her genitals. He also wanted the girl to take a picture of herself touching her stepfather’s penis. The “stepfather” was actually an undercover law enforcement officer.
McWhorter, who was residing in College Station, also discussed his intentions to travel to Florida in order to have sex with the child.
He eventually admitted to the sexual communications. Law enforcement also seized his cellphone. Forensic analysis of that device revealed 40 images of children engaged in sexually explicit conduct which included children under the age of 5.
They also discovered another chat, during which he received a video of child pornography and saved it to the photo gallery on his phone.
McWhorter has been in custody since he was found to be a flight risk and a danger to the community. He will remain there pending his sentencing, which is set for Nov. 16 before U.S. District Judge Lynn N. Hughes. At that time, McWhorter faces up to life in prison for the coercion and enticement conviction, while the receipt and possession of child pornography charges carry additional penalties up to 20 and 10 years, respectively. He could also be ordered to pay up to a $250,000 fine.
The FBI - Bryan Resident Agency and Jacksonville, Florida, Field Office conducted the investigation along with the College Station Police Department.
Assistant U.S. Attorney Kimberly Ann Leo is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Cincinnati Man Indicted for Distribution of Drugs that Resulted in a DeathRead the Press Release
COVINGTON, Ky. - Daniel J. Huegel, 23, of Cincinnati, was indicted by a federal grand jury sitting in Covington, for one count of distributing a controlled substance resulting in death.
The indictment alleges that, on or about March 23, 2020, in Boone County, Ky., Huegel distributed fentanyl, which resulted in the death of the victim.
The investigation preceding the indictment was conducted jointly, by the DEA and the Northern Kentucky Drug Strike Force.
If convicted, Huegel faces a minimum of 20 years in prison, up to a maximum of life in prison. However, any sentence following conviction would be imposed by the Court, after its consideration of the United States Sentencing Guidelines and the federal statutes governing the imposition of sentences.
An indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove guilt beyond a reasonable doubt.
— END —
Camden County Man Charged with Attempting to Hire Hitman on Dark Net to Kill Victim of His Child Pornography CrimeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man under investigation by the Atlantic County Prosecutor’s Office for child pornography-related offenses was arrested today for allegedly paying $20,000 in Bitcoin to have the child victim murdered, U.S. Attorney Craig Carpenito announced.
John Michael Musbach, 31, of Haddonfield, New Jersey, is charged by complaint with one count of murder-for-hire. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Karen M. Williams.
According to documents filed in this case and statements made in court:
In the summer of 2015 Musbach began communicating via an Internet Relay Chat (IRC) website with his victim, who was 13 years old at the time. At some point, Musbach began using those IRC conversations to request and receive sexually explicit videos and photographs of the minor victim and to send to the victim sexually explicit videos and photographs of himself.
In September 2015 the victim’s parents discovered the nature of Musbach’s communications with the victim and notified local law enforcement officers in the State of New York, where the victim resided. Officers began investigating Musbach’s conduct and called Musbach to notify him that he was under investigation for his online sexual contact with the victim and that he was to stay away from the victim. Upon identifying Musbach as a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO), which continued the investigation.
On March 31, 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey. Law enforcement officers seized Musbach’s cellular telephone and also his business laptop provided to him by his then-employer, a cloud hosting company. Musbach admitted to having sent sexually explicit images and videos of himself to the victim and having requested and received sexually explicit images and videos from the victim, all while knowing that the victim was 13-years old.
On Oct. 11, 2017, Musbach pleaded guilty to endangering the welfare of a child (the victim) by sexual contact and was sentenced on Feb. 9, 2018, by a New Jersey Superior Court Judge to a two-year suspended sentence with parole supervision for life.
In 2019, a cooperating informant began providing information to agents from Homeland Security Investigations in St. Paul, Minnesota, and provided messages between Musbach and a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency.
Those messages revealed that in May 2016, Musbach arranged for a murder-for-hire from the website. He asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.
Agents were able to confirm Musbach’s identity through several means, including linking him to the same screen name he used to communicate with the murder-for-hire website and also by tracing the flow of monies from Musbach’s bank account to the purchase of bitcoin used to pay for the hit.
The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross profits to Musbach or twice the gross losses to the victim of his offense.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), in Newark, under the direction of Special Agent in Charge Jason Molina, and in St. Paul, Minnesota, under the direction of Tracy Cormier, with the investigation. He also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Burt Man Going to Prison for Five Years for Possession 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 Adam Williams, 33, of Burt, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve 60 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on October 3, 2017, investigators executed a search warrant at the defendant's residence after discovering that Williams was utilizing a peer-to-peer network to distribute child pornography. Items seized from the defendant's residence that contained child pornography included a laptop computer, and a hard drive. A forensic analysis recovered in excess of 11,000 images and 290 videos of child pornography on the laptop and hard drive. Some of images included prepubescent minors and depictions of violence.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
# # # #
Brooklyn Residents Charged with Arson of an NYPD Vehicle in ManhattanRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John B. DeVito, Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Daniel A. Nigro, Commissioner of the New York City Fire Department (“FDNY”), announced today the arrest of COREY SMITH and ELAINE CARBERRY in connection with their destruction of a marked NYPD Homeless Outreach Unit van in Greenwich Village in Manhattan. SMITH and CARBERRY were arrested this morning and will be presented in Manhattan federal court before U.S. Magistrate Ona T. Wang later today.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Corey Smith and Elaine Carberry deliberately set fire to an NYPD van, then minutes later returned to the vehicle and – once again using an accelerant – ensured its complete destruction. Thanks to the NYPD, the Fire Department, and the ATF, there was not further damage to life or property. The defendants are now in custody.”
ATF Special Agent-in-Charge John B. DeVito said: “These defendants, as alleged, set fire to a marked NYPD van under the cover of darkness, endangering the lives of all New Yorkers. ATF and our partners in the Arson and Explosives Task Force remain dedicated to seeking justice against those intent on using fire as a weapon.”
Police Commissioner Dermot Shea said: “Setting a police car on fire endangers police officers, firefighters, and nearby residents and properties. These organized efforts are not a form of protest, they are crimes. They cost the taxpayer and damage the cause of those engaged in legitimate protest. I commend the hard work of our detectives in this case together with our law enforcement and city partners, the United States Attorney for the Southern District of New York, the Bureau of Alcohol, Tobacco & Firearms, and the New York Fire Department.”
Fire Commissioner Daniel A. Nigro said: “Deliberately setting fires to damage property or harm others has no place in our city, or anywhere. The act of arson endangers the lives of New Yorkers and all first responders. I commend the excellent teamwork of our Fire Marshals, the NYPD, and ATF to apprehend those who needlessly destroy property and risk the lives of others.”
According to the allegations in the Complaint[1]:
On July 15, 2020, at approximately 4:35 a.m., using ignitable liquid, SMITH and CARBERRY set on fire a marked NYPD Homeless Outreach Unit van on the northwest corner of 12th Street and University Place. More specifically, as surveillance footage shows, at approximately 4:37 a.m., the NYPD van ignited in flames, and CARBERRY and SMITH walked away from the NYPD van. As they walked away, SMITH handed CARBERRY what appeared to be a bottle, which CARBERRY put in her purse. Minutes later, CARBERRY handed SMITH a bottle from her purse, and SMITH again walked towards the NYPD van, with CARBERRY following behind. Shortly after SMITH approached the NYPD van the second time, a larger fire appeared to ignite. CARBERRY and SMITH again walked away from the NYPD van, and SMITH again handed CARBERRY an object that appeared to be a bottle, which CARBERRY put in her purse.
An analysis of the materials found in the NYPD van confirmed the presence of an accelerant. The FDNY ultimately confirmed that the fire was deliberately set as an act of arson, resulting in the complete destruction of the NYPD van.
* * *
SMITH, 24, of Brooklyn, New York, and CARBERRY, 36, of Brooklyn, New York, are each charged with one count of conspiracy to commit arson and one count of arson, each of which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the New York City Arson and Explosion Task Force of the ATF, the NYPD, and the FDNY.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Christy Slavik is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Agents Watched 5 Pounds of Heroin Exchange Hands in Rest Area Near TopekaRead the Press Release
TOPEKA, KAN. – A Kansas man was sentenced Wednesday to six years in federal prison for heroin trafficking, U.S. Attorney Stephen McAllister said.
Terrance Wills, 42, Kansas City, Kan., pleaded guilty to one count of possession with intent to distribute heroin. In his plea, Wills admitted he met two other men, who had transported the heroin from Texas, at a rest area near Topeka. Investigators had been following the load – almost five pounds of heroin -- since the couriers were stopped on Highway 54 near Meade, Kan.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Stephen Hunting for their work on the case.
15+ Year Prison Sentence for Career Criminal Caught with Illegal Guns, MethRead the Press Release
MACON, Ga. – A parolee with multiple prior felony convictions was sentenced to a total of 188 months in prison for illegally possessing firearms and distributing methamphetamine, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia.
Clifton Eugene Peterman, 51, of Eatonton, Georgia was sentenced on Wednesday, August 12 by U.S. District Judge Tilman E. “Tripp” Self to 120 months in prison after pleading guilty to one count possession of a firearm by a convicted felon and 188 months in prison after pleading guilty to one count possession with intent to distribute methamphetamine, to run concurrently for a total term of 188 months in prison. This federal sentence will run consecutively to his state sentence from Putnam County. There is no parole in the federal system.
Peterman was on parole following a 2015 conviction in the Superior Court of Putnam County for possession of methamphetamine, possession of a controlled substance and possession of a firearm by a convicted felon when deputies and officers with the Department of Community Supervisions conducted a legal search of his home, per the terms of Peterman’s parole. Officers found five firearms, including one semi-automatic rifle, one caliber lever action rifle, two semiautomatic pistols and .38spl caliber revolver. Officers also seized methamphetamine that Peterman admitted he was intending to sell. Peterman has multiple prior felony convictions. In addition to the 2015 conviction named above, Peterman was convicted on October 6, 2005 in the Superior Court of Jones County, Georgia for possession with intent to distribute methamphetamine, theft by receiving stolen property, possession of a firearm by a convicted felon and possession of a sawed off shotgun. Peterman was also convicted on March 21, 2006 in the Middle District of Georgia for possession of a sawed-off shotgun.
“The defendant is a career criminal that clearly has no respect for the law and has shown no remorse for his past crimes. He will now spend the next 15 years in a federal prison, where there is no parole, and he will no longer be free to wreak havoc in our community,” said U.S. Attorney Charlie Peeler. “I want to thank the Department of Community Supervision, the Morgan County Sheriff’s Office, the Putnam County Sheriff’s Office and the FBI for their work in this case.”
"Peterman will get yet another chance to turn his life around in prison, and if not, the communities he has preyed upon can at least take solace that he won't be able to threaten their well-being for a long time," said Chris Hacker, Special Agent in Charge of FBI Atlanta.
“As for Mr. Peterman, we are truly grateful for the federal assistance in this case. Clifton Peterman is career criminal, a true recidivist and a virtual crime machine. As the federal system doesn’t have the revolving door machine of meaningless parole and probation the State of Georgia maintains, we know that Peterman will literally be locked away for the next 15 years and his incarceration for such a period will truly protect the public from this type of criminal,” said Putnam County Sheriff Howard Sills.
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 the Putnam County Sheriff’s Office, the Morgan County Sheriff’s Office, the Georgia Department of Community Supervision and the FBI. Assistant U.S. Attorney Elizabeth Howard 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.
10 Individuals Charged with Possessing Firearms in Brooklyn over Two Days in AugustRead the Press Release
Ten individuals were separately charged by complaint or indictment during the past week in the Eastern District of New York with being a felon in possession of a firearm.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the arrests and charges.
“The one tried and true way to reduce the rapid spike in gun violence we’ve experienced in Brooklyn this summer is to take the guns out of the hands of repeat offenders and take those offenders off of our streets,” stated Acting U.S. Attorney DuCharme. “This is another example of the great results we’ve achieved with our Project Safe Neighborhoods program and I commend the outstanding work by this Office’s prosecutors, members of the New York City Police Department (NYPD), the FBI-NYPD New York Metro Safe Streets Task Force and the New York State Department of Parole for sending a clear message to convicted criminals that carrying a gun also carries serious federal consequences.”
As alleged, the following defendants, having previously been convicted in a court of a crime punishable by a term of imprisonment exceeding one year, intentionally possessed a firearm:
DASHAWN ANDREWS
On August 6, 2020 Andrews was indicted for possessing a Taurus, model PT-22, .22LR caliber pistol and ammunition on Livonia Avenue near Pennsylvania Avenue in Brooklyn.
PAOLO ALFARO BARBER
On August 6, 2020, in front of 2501 Newkirk Avenue in Brooklyn, NYPD Officers observed an L-shaped bulge in a bag hanging from Alfaro Barber’s neck. When the bag was searched, officers found a Taurus .38 caliber revolver loaded with six rounds of .38 caliber ammunition.
TERRENCE BROWN
On August 6, 2020, Brown was indicted for possessing a Taurus PT 111, 9mm pistol found in his apartment at 419 Blake Ave. in Brooklyn during a search by New York State Parole Officers and NYPD Officers.
JAHQUEL GIDDEON
On August 6, 2020, Giddeon was indicted for possessing a loaded Ruger 380 semi-automatic pistol found under a mattress during a search of his apartment on Rockaway Parkway by New York State Parole Officers.
MACYE MCCALL
On August 6, 2020, McCall was indicted for possessing a Taurus, Model 85, .38 Special caliber revolver. NYPD Officers discovered the gun after they pulled over a Range Rover in which McCall was a passenger for driving the wrong way down a one way street off Sutter Avenue in Brooklyn.
TONY MCQUEEN
On August 6, 2020, McQueen was arrested for possessing a Smith & Wesson Model M&P 9C caliber 9mm pistol loaded with 13 rounds of ammunition in a vehicle where he was found intoxicated and passed out behind the wheel at the intersection of Atlantic Avenue and Boyland Street in Brooklyn.
AVERY MILLINGTON
On August 6, 2020, Millington was indicted for possession of Charter Arms Undercover .38 Special Pistol loaded with five rounds of .38 caliber ammunition after he was observed driving a Hyundai the wrong way on Bristol Street near Newport Avenue in Brooklyn.
KEENEN NURSE
On August 4, 2020, Nurse was arrested on a complaint charging him with possessing a loaded Jimenez Arms .380 caliber semi-automatic pistol hidden under the stairwell in a residential building on Eastern Parkway in Brooklyn. Nurse’s DNA was found on the firearm.
MARVIN PICKETT
On August 6, 2020, Pickett was arrested on an indictment charging him with possessing a Taurus .380 caliber pistol while allegedly driving drunk and crashing into a Citibike stand at Nassau and Navy Streets in downtown Brooklyn on March 28, 2020.
AARON SWABY
On August 6, 2020, Swaby was indicted for possessing a Smith & Wesson, Model SD40VE, .40 caliber semi-automatic pistol inside a vehicle stopped by NYPD Officers for a traffic infraction on Surf Avenue in Brooklyn.
These cases are 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. Attorney General William Barr has enhanced PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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 charges in the complaints and indictments are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 10 years’ imprisonment.
The government’s cases are being handled by the Office’s Criminal Division, General Crimes Section and Organized Crime and Gangs Section.
The Defendants:
DASHAWN ANDREWS
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-285 (ILG)
PAOLO ALFARO BARBER
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-642
TERRENCE BROWN
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-295 (WFK)
JAHQUEL GIDDEON
Age: 20
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-289 (MKB)
MACYE MCCALL (also known as “Gunplay”)
Age: 27
Bronx, New YorkE.D.N.Y. Docket No. 20-CR-290 (ARR)
TONY MCQUEEN
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-643
AVERY MILLINGTON
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-288 (LDH)
KEENEN NURSE
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-602
MARVIN PICKETT
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-255 (BMC)
AARON SWABY
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-287 (WFK)
12 August 2020
Winslow Man Sentenced to 10 Years in Federal Prison for Attempted Enticement of A MinorRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Jay Edward Thompson, age 43, of Winslow, Arkansas, was sentenced today to 120 months in federal prison without the possibility of parole followed by five years of supervised release on one count of Attempted Enticement of a Minor to Engage in Illegal Sexual Activity. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, In September 2019, the Homeland Security Investigations (HSI) Internet Crimes Against Children (ICAC) Task Force, the Arkansas State Police, and local law enforcement, set up an operation to target online predators in Northwest Arkansas. As part of the operation, undercover law enforcement investigators placed multiple advertisements on various online websites and mobile applications.
On September 25, 2019, an undercover investigator (UC), posing as a 13-year-old minor female, was contacted by Thompson after he responded to one of the advertisements using his email address. The following day, Thompson arranged to meet with the UC and was taken into custody.
Thompson was indicted in November 2019 and was found guilty by a federal jury sitting in Fayetteville, Arkansas on March 3, 2020.
This case was investigated by the Department of Homeland Security, the Internet Crimes Against Children (ICAC) Task Force and the Benton County Sheriff’s Department. Assistant United States Attorney Carly Marshall, Assistant United States Attorney Amy Driver and Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Washington County Woman Indicted for Distributing a Fentanyl AnalogueRead the Press Release
PITTSBURGH - A resident of Washington County has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Breanna M. Bane, age 28, of Fredericktown, Pennsylvania, as the sole defendant.
According to the Indictment, on July 3, 2020, Bane was found to have distributed and possessed with the intent to distribute a quantity of fentanyl analogue, a Schedule I controlled substance.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
ValueWise CEO Michael Mann Pleads Guilty to $100 Million FraudRead the Press Release
ALBANY, NEW YORK – Michael T. Mann, age 50, of Saratoga County, New York, pled guilty today to orchestrating a years-long fraud that caused more than $100 million in losses to banks, financing companies, and other businesses.
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).
Mann operated ValueWise Corporation, based in Clifton Park, New York, as well as subsidiary companies including MyPayrollHR.com LLC. In pleading guilty, he admitted that from 2013 to September 2019, he engaged in a fraudulent scheme to deceive banks and financing companies into loaning his companies tens of millions of dollars. Because Mann could not repay the loans with legitimate business revenues, he expanded the fraud, by stealing and diverting millions of dollars that were entrusted to his payroll companies, and engaging in the daily kiting of millions of dollars among bank accounts he controlled.
Mann’s scheme collapsed in early September 2019, when one of his banks froze his accounts, setting off a chain of events that left his payroll companies unable to make payroll for hundreds of small business customers nationwide.
United States Attorney Grant C. Jaquith stated: “Michael Mann’s fraud was staggering. He caused more than $100 million in losses and wove a web of deception so complex that it eventually ensnared hundreds of small businesses and several thousand workers across the country. Today’s plea is the start of holding him accountable for the terrible harm he inflicted on these victims, as well as the banks and other companies that trusted him with their money and believed his sophisticated lies.”
FBI Special Agent in Charge Thomas F. Relford stated: “Michael Mann’s deception directly impacted thousands of people across the country. Helping himself to those funds left the businesses who trusted him with their payroll unable to pay their employees who survive on timely paychecks. While many of the businesses were able to recover, others experienced irreparable hits to their reputations. Today’s admission of guilt is a small step forward in their process to rebuild. The FBI will continue to work with our law enforcement partners to aggressively pursue and charge those who willingly defraud our citizens and banking institutions.”
Mann pled guilty to one count of conspiracy to commit wire fraud, one count of aggravated identity theft, nine counts of bank fraud, and one count of filing a false tax return.
Mann’s scheme had multiple layers, including:
- Mann obtained tens of millions of dollars in loans from three financing companies, located in New York, Colorado and California, respectively, by falsifying his companies’ revenues and receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his companies. Mann created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for the loans.
- Mann fraudulently obtained a line of credit (“LOC”) from several Capital Region banks, which had grown to $42 million by 2019. To obtain the LOC, Mann created companies whose sole purpose was to further the fraud by generating fake invoices, disguising sources of funds, and artificially inflating his assets; falsely represented to the banks that his fake businesses had revenues and receivables based on consulting work for Optum/UHG and other well-known companies, including 3M, Best Buy and T-Mobile; hid the tens of millions of dollars in loans he was receiving from the financing companies, and that he was using the LOC to pay down these loans; and provided false financial statements, and individual and corporate tax returns, to his outside auditor, which in turn made inaccurate reports to the banks.
- Mann misappropriated payroll monies, entrusted to MyPayrollHR and another company, by changing the instructions for digital Automated Clearing House (“ACH”) files that were supposed to transmit payroll from MyPayrollHR’s customers (employers) to the employees of the customers. Although his companies’ contracts with Cachet Financial Services specified that ACH transfers would route payroll funds from the employers’ accounts to a designated Cachet trust account and then directly to the customers’ employees, Mann changed the instructions inside digital ACH files provided to Cachet, in order to divert payroll funds from MyPayrollHR’s customers into accounts he controlled at Pioneer Bank. When Pioneer Bank froze Mann’s corporate accounts on or about August 30, 2019, it froze the payroll funds in those accounts, and caused several thousand people across the country to not receive a payroll payment. Cachet, as the guarantor of the payroll funds, paid about $7.2 million to the employees of MyPayrollHR’s customers.
Mann is scheduled to be sentenced on December 10, 2020 by Senior United States District Judge Lawrence E. Kahn. He will be sentenced to 2 years in prison on the aggravated identity theft conviction, and, on the other charges, faces maximum terms of 3 years (filing a false tax return), 20 years (wire fraud conspiracy), and 30 years (bank fraud). A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Mann has agreed to entry of an order requiring him to pay $101,038,793.31 in restitution, and to forfeit assets including $14,522,474.90 already seized by the Government, 30,000 common shares of Pioneer Bancorp Inc. already seized by the Government, and a 2020 Jeep Gladiator.
Mann is the second person to plead guilty in connection with this fraud. On February 6, 2020, former Optum employee Luke E. Steiner, age 32, of Minneapolis, Minnesota, pled guilty to conspiring with Mann to defraud two financing companies out of millions of dollars.
This case is being investigated by the FBI, as well as Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
United States Attorney Mike Stuart Releases 'Back the Blue' VideoRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced the release of a ‘Back the Blue’ video supporting law enforcement in West Virginia and across the country. The video features Stuart, along with several staff members of the United States Attorney’s Office for the Southern District of West Virginia, voicing support for law enforcement.
“I’m proud as the United States Attorney for the Southern District of West Virginia to make it clear that I back the blue, that we back the blue, and that our progress in keeping our streets safe is a commitment that we share with our federal, state and local partners,” said United States Attorney Mike Stuart. “Recent efforts to defund, undermine and weaken the police will only make our communities less safe. The police are not the enemy. They are brave, courageous public servants. Our police officers should never be a target for those attempting to undermine public safety. God forbid if those that attempt to undermine our police are successful in their efforts. The public needs police protection now more than ever, especially in light of the violence surging across the country. I encourage members of the public to show their support for law enforcement all across this nation. We cannot continue to demoralize our police; we need to lift them up and have their backs as they work tirelessly to protect us every day. We keep them and their family members in our prayers.”
The video can be seen on the district’s YouTube page.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Two Defendants Charged in Connection with Methamphetamine Conversion Lab Uncovered in San JoseRead the Press Release
SAN FRANCISCO – A complaint was unsealed today in San Jose alleging that Mario Orozco and Teodoro Ayon-Ramos distributed methamphetamine, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux. Both defendants were arrested at their residences, one in San Jose and the other in Los Banos, on August 11, 2020.
According to the complaint, the defendants sold approximately four ounces of methamphetamine to a cooperating source working with law enforcement. The transaction occurred in San Jose. The day before, Orozco agreed to sell the cooperating source approximately four ounces of methamphetamine for $3,500. In addition, Ayon-Ramos met a cooperating source in San Jose on June 18, 2020, and delivered the methamphetamine. The complaint alleges that Mario Orozco and Teodoro Ayon-Ramos violated statutes prohibiting drug distribution at 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii).
The defendants made their initial appearances in federal court in San Francisco on August 12, 2020. They are currently being held in custody pending further proceedings. Orozco’s next appearance is scheduled for 10:30 a.m., on August 14, 2020, before U.S. Magistrate Judge Kandis A. Westmore. Ayon-Ramos’ next appearance is scheduled for 10:30 a.m., August 17, 2020, before U.S. Magistrate Judge Thomas S. Hixson. Both court appearances are scheduled to address issues regarding detention.
In documents filed in connection with the detention hearings, the government argued that defendants were engaged in a scheme to smuggle methamphetamine dissolved in buckets of paint to avoid discovery and to extract the methamphetamine at a warehouse and convert the drugs into its crystal form. According to the government, the defendants used a warehouse-type structure located on Stockton Avenue, San Jose, Calif., to process the drugs.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the offense charged in the complaint, the defendants each face a maximum sentence of 40 years and a minimum sentence of five years, and a fine of $5,000,000, for each violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(viii). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Tulsa Doctor Enters Pleas of Guilty in Opioid Drug Conspiracy and Maintaining a Drug Involved PremisesRead the Press Release
TULSA, Okla. – A Tulsa physician pleaded guilty today in U.S. District Court to conspiring to distribute controlled substances, as well as maintaining a drug involved premises at his medical clinic where he and others acting on his behalf unlawfully issued prescriptions for controlled substances.
United States Attorney Trent Shores announced that Dr. Christopher V. Moses, D.O., 67, of Tulsa entered guilty pleas related to his leading a conspiracy to distribute controlled substances without a legitimate medial purpose and outside the scope of professional practice and his maintaining a drug involved premises. As a part of this conspiracy, Moses and his coconspirators unlawfully issued prescriptions for controlled substances, many of which included deadly opioid prescription drugs such as Hydrocodone, Oxycodone, and Fentanyl. Defendant Moses’ medical clinic was located at 8222 South Harvard Avenue, Tulsa, Oklahoma.
“Doctors who run “pill mills” are on notice: you will be investigated and prosecuted, and once convicted as a felon you will no longer be allowed to practice medicine. Whether a $1.8 million dollar money judgment, as in this case, or a term of imprisonment, this United States Attorney’s Office will hold you accountable,” said U.S. Attorney Shores. “Drug overdose deaths are a leading cause of death in the United States and almost 70 percent of those deaths involve a prescription or illicit opioid. The diversion of highly addictive and dangerous prescription opioid pills is the primary way in which people become addicted to opioids. We won’t turn a blind eye while you seek to profit from turning Oklahomans into opioid addicts.”
U.S. District Judge Gregory K. Frizzell set Moses’ sentencing for November 12, 2020. The charge of drug conspiracy carries a maximum statutory sentence of not more than twenty years in prison and a fine of not more than $1,000,000. The charge of maintaining a drug involved premises carries a statutory sentence of not more than twenty years imprisonment and a fine of not more than $500,000.
As a part of the plea agreement in this case, the United States and Defendant Moses have agreed to a sentence of one year of home confinement and five total years of probation. The defendant has agreed to forfeit his medical license and not seek reinstatement during the five year sentence. Additionally, Defendant Moses will pay $28,581.00 in restitution to two victims and a $200,000 fine.
The Drug Enforcement Administration conducted the investigation of this case. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case with assistance from AUSA Vani Singhal, AUSA Melody Nelson, and AUSA Reagan Reininger. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
Troy Man Charged with Attempted Enticement of a ChildRead the Press Release
ALBANY, NEW YORK – Brian Botsford, age 24, of Troy, New York, was arrested on Monday and charged with attempting to entice or coerce a child.
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).
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The criminal complaint alleges that between July 14, 2020 and August 10, 2020, Botsford exchanged sexually explicit text messages with an undercover investigator who was posing as a 13-year-old girl. On August 10, 2020, Botsford traveled from Troy to Cohoes, New York, to meet and have sex with a 13-year-old child at a predetermined location. Botsford was encountered by law enforcement and arrested.
Botsford appeared in court yesterday for an initial appearance before United States Magistrate Judge Christian Hummel. Today, Botsford waived his right to a detention hearing, subject to renewal of that right upon further notice.
The charge filed against Botsford carries a sentence of at least 10 years and up to life in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, including investigators from the Colonie Police Department, and is being prosecuted by Assistant United States Attorney Rachel Williams.
Anyone with information about this defendant is encouraged to contact the FBI Albany Field Office at (518) 465-7551.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
Three Nigerian Nationals Indicted for International Cyber Fraud ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of three separate indictments against OLUFEMI OLUWASEUN BANJO, a/k/a “Femi Banjo,” 37, FRANCIS NWABUEZE IWUOHA, 38, and OLUWADAMILARE GBENGA MACAULAY, 32, charging them with wire fraud, aggravated identity theft, and conspiracy. The defendants are at large and believed to be in Nigeria.
According to the allegations in the indictments, from approximately March 2016, through approximately February 2018, BANJO, IWUOHA, and MACAULAY, all citizens of Nigeria, gained unauthorized access to internet accounts of thousands of individual victims to steal Personal Identifying Information (PII) and IRS W-2 Forms, which they used to file false tax returns in the names of the individual victims seeking fraudulent refunds.
As part of the scheme, BANJO, IWUOHA, MACAULAY, and others gained unauthorized access to approximately 1,200 individuals’ accounts maintained by a Minnesota-based company that provides human resource and payroll services to numerous businesses. The accounts were registered with a web-based program that allowed employees to download a copy of their IRS Form W-2 from an internet portal. After fraudulently obtaining PII and tax information from the accounts, BANJO, IWUOHA, MACAULAY, and others used the information to prepare and electronically file fraudulent tax returns with the IRS.
As part of the scheme, BANJO, IWUOHA, MACAULAY, and others also gained unauthorized access to individuals’ accounts maintained by the Department of Education by exploiting an online tool that facilitates the transfer of individuals’ PII and tax information from the IRS website to the Department of Education. The defendants used the stolen information to prepare and electronically file fraudulent tax returns with the IRS. As a result of the scheme, BANJO, IWUOHA, MACAULAY, and others attempted to claim a total of approximately $16.4 million in fraudulent tax refunds.
These cases are the result of an investigation conducted by the Internal Revenue Service’s Criminal Investigation Division, the U.S. Department of Education, Office of Inspector General, and the FBI.
Assistant U.S. Attorneys Julie E. Allyn and Angela M. Munoz are prosecuting the cases.
Defendant Information:
OLUFEMI OLUWASEUN BANJO, a/k/a “Femi Banjo,” 37
Lagos, Nigeria
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 4 counts
- Aggravated identity theft, 4 counts
FRANCIS NWABUEZE IWUOHA, 38
Lagos, Nigeria
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 5 counts
- Aggravated identity theft, 5 counts
OLUWADAMILARE GBENGA MACAULAY, 32
Abuja, Nigeria
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 3 counts
- Aggravated identity theft, 3 counts
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Individuals Arrested for Separate Schemes to Harass, Threaten, Intimidate and Bribe Alleged R. Kelly VictimsRead the Press Release
Three separate criminal complaints were unsealed yesterday in federal court in Brooklyn charging defendants Richard Arline, Jr., Donnell Russell and Michael Williams, respectively, with crimes relating to their efforts to harass, intimidate, threaten or corruptly influence individuals named as alleged victims in the racketeering case against Robert Sylvester Kelly, also known as “R. Kelly,” currently pending in the Eastern District of New York (the Kelly case).
Arline, Jr. is charged with attempting to corruptly persuade the testimony of an alleged victim in the Kelly case, identified in the complaint as “Jane Doe,” and engaging in misleading conduct towards the victim, with intent to influence, delay and prevent her testimony in the Kelly case, as well as corruptly offering something of value to the victim, with the intent to influence her testimony as a witness upon a trial, hearing and other proceeding. Arline, Jr. was arrested earlier today in Dolton, Illinois, and his initial appearance took place yesterday afternoon before United States Magistrate Judge Young B. Kim at the federal courthouse in Chicago, Illinois.
A second criminal complaint charges Russell with using the mail, the internet and cellular telephones to attempt to cause emotional distress to another individual identified in the complaint as “Jane Doe,” an alleged victim in the Kelly case, as well as Jane Doe’s mother, with the intent to harass and intimidate Jane Doe and her mother. Russell’s initial appearance will take place before a United States Magistrate Judge in the Eastern District of New York at a date to be determined in the near future.
A third criminal complaint charges Williams with using and attempting to use intimidation and threats against an alleged victim in the Kelly case, with intent to influence, delay and prevent her testimony in the Kelly case. The complaint also charges Williams with maliciously damaging and destroying a vehicle by means of fire and an explosive. Williams was arrested yesterday in Pompano Beach, Florida, and his initial appearance is scheduled for this morning at the federal courthouse in Fort Lauderdale, Florida.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York Field Office, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“The defendants are separately charged with engaging in multiple crimes that were intended to undermine and subvert the integrity of the criminal justice system and victimize the women who have come forward with serious allegations of criminal conduct against the defendant R. Kelly,” stated Acting United States Attorney DuCharme. “Efforts to illegally influence pending federal cases, whether through threats of violence, intimidation, damage to property, or payments to buy a potential witness’s silence, will not be tolerated.”
Mr. DuCharme expressed his grateful appreciation to the HSI Field Offices in Chicago, Illinois, Fort Lauderdale, Florida, Long Beach, California, and Tampa, Florida; the Bureau of Alcohol, Tobacco, Firearms and Explosives Field Offices in Savannah, Georgia, and Tampa, Florida; the Florida Bureau of Fire, Arson & Explosives Investigations; the Broward County Sheriff’s Office, Florida, the Lowndes County Sheriff’s Office, Florida, the Polk County Sheriff’s Office, Florida and the Valdosta Police Department, Georgia, for their assistance in these cases.
“These crimes shock the conscience. The men charged today allegedly have shown that there is no line they will not cross to help Kelly avoid the consequences of his alleged crimes—even if it means re-victimizing his accusers. These acts not only fly in the face of human decency, they insult the very rule of law. HSI will continue to bring the full force of our investigative powers to pursue those seeking to attack witnesses and pervert the cause of justice. To the victims of these and other crimes: we stand with you. We will meet your bravery with our resolve to keep you safe to tell your story,” stated HSI Special Agent-in-Charge Fitzhugh.
“The bribery, intimidation and violence alleged in these complaints reflects a nationwide pattern of criminality that further victimized civilian witnesses in a federal case. Such behavior can never be accepted and I commend the NYPD investigators, federal agents and prosecutors from the U.S. Attorney’s Office for the Eastern District of New York in bringing these charges,” stated NYPD Commissioner Shea.
The Arline, Jr. Complaint
As alleged, between January 9, 2020 and June 2020, Arline, Jr., a self-proclaimed longtime friend of Kelly, attempted to illegally influence the cooperation and testimony of an alleged victim in the Kelly case. After learning of Arline Jr.’s plan, the victim contacted law enforcement, and under the supervision of law enforcement authorities, continued to communicate with him. During a series of consensually recorded telephone calls, as well as in calls and texts captured pursuant to a judicially authorized wiretap, Arline, Jr. discussed a scheme in which the victim would receive compensation, including a proposed payment of $500,000, to keep her from cooperating with the government. During one of the recorded telephone calls, Arline, Jr. claimed that he had communicated with Kelly while Kelly was incarcerated via a three-way call with another individual.
The intercepted communications also include Arline, Jr. discussing plans to pay the victim “to be quiet,” explaining that “if I had a way to talk to Rob [Kelly], being next to him, and telling him what’s going on, without nobody listening to, no feds, nobody, he gonna pay her . . . off to be quiet” because “[s]he got too much. She got too much.”
The Russell Complaint
As alleged, between November 2018 and February 2020, Russell, a self-described manager, advisor and friend of Kelly, used the mail, telephones and the internet to harass and intimidate Jane Doe, an alleged victim in the Kelly case, and her mother after Jane Doe filed a civil lawsuit against R. Kelly. Specifically, Russell threatened to reveal sexually explicit photographs of Jane Doe and to publicly reveal her sexual history if she did not withdraw her lawsuit against Kelly and “cease her participation and association with the organizers” of a “negative campaign” against Kelly. In November 2018, Russell caused a letter with attachments purportedly written by Kelly to be mailed to Jane Doe’s Brooklyn-based lawyer at the time. The attachments included cropped nude photographs of Jane Doe with the following text: “the next two pictures have been cropped for the sake of not exposing her extremities to the world, yet!!!” In December 2018, Russell, using his alias “Colon Dunn,” sent a series of text messages to Jane Doe and her mother, which contained the same photographs of Jane Doe, and stating “Just a sample. We will seek criminal charges. You’ve been warned,” as well as “Publishing soon” and “[T]his is Colon.”
On January 3, 2019, Russell allegedly sent additional text messages to Jane Doe and her mother, stating, “Pull the plug or you will be exposed.” On January 6, 2019, Russell, using the Colon Dunn alias, created a Facebook Page named “Surviving Lies,” a play on the title of Lifetime’s “Surviving R Kelly” documentary, and posted screen shots of text messages between Kelly and Jane Doe, which contained the same sexually explicit photographs of Jane Doe. In late January 2020, Russell appeared on two live interviews with “vloggers” discussing Kelly’s legal troubles, which were streamed live on the internet via YouTube. Russell again displayed the same sexually explicit photographs of Jane Doe and broadcast them publicly over the internet.
The Williams Complaint
As alleged, on or about June 11, 2020, Williams, a relative of an individual who once served as a publicist for Kelly, set fire to an SUV parked outside a residence in Florida where an alleged victim in the Kelly case and others were staying. The vehicle, leased by the victim’s father, was heavily damaged. Fire investigators also detected an accelerant along the outside perimeter of the residence. Cell site records, surveillance footage, toll records and photographs, and Williams’ internet searches for the victim’s address, revealed that Williams had driven from Georgia to the Florida residence. Williams also performed internet queries about the detonation properties of fertilizer and diesel fuel, witness intimidation and witness tampering, and countries that do not have extradition with the United States.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Elizabeth A. Geddes, Nadia I. Shihata and Maria Cruz Melendez are in charge of the prosecution.
The Defendants:
RICHARD ARLINE, JR.
Age: 31
Dolton, ILDONNELL RUSSELL, also known as “Don Russell” and “Colon Dunn”
Age: 45
Chicago, ILMICHAEL WILLIAMS
Age: 37
Valdosta, GAE.D.N.Y. Docket Nos: 20-MJ-239; 20-MJ-629; 20-MJ-630
Three Arrested in Connection with International Money Laundering ConspiracyRead the Press Release
ALBANY, NEW YORK – Three men have been arrested for their roles in a $46.8 million money laundering scheme involving the smuggling of cut rag tobacco into Canada from the United States.
The announcement was made by United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Jonathan D. Larsen, Special Agent In Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (IRS-CID).
Edgar M. Baker, Jr., age 46, of Southern Pines, North Carolina; Jeffrey Doctor, age 48, of Washington, D.C.; and Carey Terrance, age 39, of Hogansburg, New York, were arrested last week following their indictment on July 23, 2020, on one count of conspiracy to commit money laundering.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The indictment alleges that, from approximately 2013 to 2016, the defendants worked together and with others to acquire cut rag tobacco and smuggle it into Canada, where it was made into contraband cigarettes. Members of the conspiracy sold the contraband cigarettes, making substantial profits by avoiding taxes and duties, and used some of their profits to buy more cut rag tobacco that they sent into Canada.
Funds to purchase the cut rag tobacco were sent from Canada, often through the Northern District of New York, to North Carolina. Once purchased, the cut rag tobacco was delivered to warehouses and buildings in the Northeastern United States, including on the Akwesasne St. Regis Mohawk Indian Reservation, where it was staged for smuggling into Canada. Each truckload of cut rag tobacco in the scheme (totaling over 18 million pounds) was worth approximately $3 million in lost tax revenue for the Canadian and Quebecois governments.
If convicted, each defendant faces up to 20 years in prison, a fine of up to $500,000 or twice the value of the funds involved in the conspiracy, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by HSI and IRS-CID, and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.
Thirteen Sentenced in Multi-State Methamphetamine Trafficking Conspiracy to 145 Combined Years in Federal PrisonRead the Press Release
Greenville, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Fernando Lara, 45, of Marietta, Georgia, was sentenced to 25 years in federal prison, marking the thirteenth and final defendant to be sentenced in a large methamphetamine trafficking conspiracy in Georgia and the Upstate region of South Carolina. The sentences, which total 145 years in federal prison, come after twelve guilty pleas and Lara’s conviction at trial.
“These armed drug dealers posed a serious threat to the people of South Carolina and Georgia, which is reflected in the more than a century of federal prison time imposed,” said U.S. Attorney McCoy. “Along with our federal, state, and local partners we brought this criminal enterprise to an end and we will continue to vigorously prosecute those who endanger their communities.”
“Methamphetamine continues to ravage many communities in our nation,” said Drug Enforcement Administration (DEA) Atlanta Field Division Special Agent in Charge Robert J. Murphy. “Because of the positive results yielded in this case, other methamphetamine manufacturers in the upstate of South Carolina and elsewhere should be put on notice that DEA, its law enforcement partners and the U.S. Attorney’s Office will not tolerate their continued efforts to manufacture and distribute this insidious drug.”
“Cases like this have an immediate and positive impact on the community,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte Special Agent in Charge Vince Pallozzi. “A substantial number of firearms have been recovered, a large amount of narcotics seized and taken off the streets, and, most important, numerous individuals that threatened our communities are now in prison. This is a collaborative win for public safety.”
Evidence presented at Lara’s trial established that he was a methamphetamine trafficker from Georgia who would sell pure methamphetamine in kilogram quantities to a co-defendant, Angela G. Skelton, 41, of Starr, who would bring the methamphetamine back into the Upstate region of South Carolina for distribution. Lara would often offer a better price on methamphetamine in exchange for firearms from Skelton. On January 16, 2019, Lara and Skelton were pulled over on Interstate 85 in Anderson County with approximately two kilograms of methamphetamine and a loaded pistol in the vehicle.
As to the other co-defendants, evidence presented to the court established that beginning in or around August 2017, co-defendant Briand F. Zapata-Rodriguez, 45, of Sandy Springs, Georgia, would transport kilogram quantities of methamphetamine from around Atlanta into the Upstate region of South Carolina, primarily into Anderson and Abbeville Counties. Zapata-Rodriguez would then use a network of runners and distributors to break up and distribute the methamphetamine throughout the Upstate. Several of the traffickers illegally possessed firearms and ammunition during the course of their drug trafficking activity. During the course of the investigation, agents seized over 30 kilograms of methamphetamine, 36 firearms, more than 1,000 rounds of ammunition, and more than $157,000 in cash. Evidence presented to the court indicated that this drug trafficking organization was responsible for the distribution of over 214 kilograms of methamphetamine during its time operating in Georgia and South Carolina.
United States District Judge Donald C. Coggins, Jr., presided over the case. In addition to Lara’s 300-month sentence, to be followed by a five-year term of court-ordered supervision, the following Defendants were sentenced in the case:
- Skelton: 52 months, to be followed by a five-year term of court-ordered supervision;
- Zapata-Rodriguez: 280 months, to be followed by a five-year term of court-ordered supervision;
- Christopher C. Presley, 29, of Honea Path: 145 months, to be followed by a five-year term of court-ordered supervision;
- Jonathan E. Gilmer, 37, of Starr: 360 months, to be followed by a five-year term of court-ordered supervision;
- Tara M. Thomason, 41, of Iva: 108 months, to be followed by a ten-year term of court-ordered supervision;
- Tena M. Todd, 47, of Calhoun Falls: 72 months, to be followed by a five-year term of court-ordered supervision;
- Randy N. Gilliam, 60, of Honea Path: 48 months, to be followed by a five-year term of court-ordered supervision;
- Michael R. Mitchem, 55, of Iva: 80 months, to be followed by a five-year term of court-ordered supervision;
- Matthew J. Green, 41, of Belton: 48 months, to be followed by a five-year term of court-ordered supervision;
- Christian D. Black, 30, of Honea Path: 96 months, to be followed by a five-year term of court-ordered supervision;
- Jesse L. Williams, 30, of Honea Path: 125 months, to be followed by a four-year term of court-ordered supervision; and
- Florence A. Gilmer, 43, of Anderson: 36 months of court-ordered supervision.
There is no parole in the federal system. This case was investigated by the DEA, ATF, Anderson County Sheriff’s Office, City of Anderson Police Department, Abbeville County Sheriff’s Office, and City of Greenwood City Police Department. This case was prosecuted as part of the joint federal, state, and local 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.
Assistant United States Attorney Sloan P. Ellis of the Greenville office prosecuted the case.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- Skelton: 52 months, to be followed by a five-year term of court-ordered supervision;
Texas Man Sentenced to Two Years in Prison for Participation in Multimillion-Dollar Business Email Compromise SchemeRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, announced that JOSHUA IKEJIMBA, a/k/a “Johnson Ifeanyi Gbono,” a/k/a “Alfred Henshaw,” a/k/a “Peterson Kamara Lawson,” a/k/a “Ganiru Paul Thompson,” pled guilty and was sentenced in Manhattan federal court today for conspiring to commit wire fraud as part of a wide-ranging, international business email compromise (“BEC”) syndicate. IKEJIMBA was sentenced to 24 months in prison by U.S. District Judge Jesse M. Furman.
Acting U.S. Attorney Audrey Strauss said: “As he admitted in court today, Joshua Ikejimba played a key role in an international business email compromise conspiracy. For his admitted crime, Ikejimba will serve a two-year prison sentence and be compelled to make restitution to the victims of his fraud.”
According to the allegations in the Indictment, other court filings, and statements made during court proceedings:
During the relevant time period, IKEJIMBA, his co-defendants, and others engaged in a fraudulent BEC scheme that deceived numerous victims, including international companies, individuals, and an intergovernmental organization headquartered in New York City, into diverting payments to bank accounts controlled by the syndicate.
The defendants executed this fraudulent scheme by, among other things, obtaining fraudulent passports in false names, registering and incorporating shell companies, and opening fake bank accounts at various banks throughout the United States. A substantial number of victims were tricked by fake emails and fraudulent wiring instructions into sending funds to the syndicate’s bank accounts, and those amounts were then withdrawn by members of the conspiracy and dissipated. During the period from about 2016 through about July 2018, it appears the defendants obtained approximately $8 million by defrauding numerous victims.
IKEJIMBA had a multi-faceted role in the BEC scheme, which included using fraudulent identities and false identification documents to open bank accounts; using those accounts to receive funds from victims; and forming a shell corporation to launder hundreds of thousands of dollars in additional fraud proceeds, principally by purchasing or depositing cashier’s checks that represented stolen funds. Through his participation in the scheme, IKEJIMBA was personally responsible for receiving and laundering approximately $1.25 million in fraud proceeds.
* * *
IKEJIMBA, 25, of Houston, Texas, pled guilty to, and was sentenced on, one count of conspiracy to commit wire fraud. In addition to the 24-month prison term, IKEJIMBA was sentenced to three years of supervised release. IKEJIMBA was further ordered to forfeit $1,250,766.03, and to pay restitution to his victims in the amount of $1,238,748.93.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Olga I. Zverovich and Jarrod L. Schaeffer are in charge of the prosecution.
Rosebud Man Sentenced for Threatening a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Influencing a Federal Officer by Threat was sentenced on August 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Anthony One Star, Jr., a/k/a Tony One Star, a/k/a Sonny One Star, age 32, was sentenced to 26 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
One Star was indicted by a federal grand jury on January 22, 2020. He pled guilty on May 19, 2020.
The conviction stemmed from an incident that occurred on December 15, 2019, in the Two Strike Community near Rosebud. On that date, a Rosebud Sioux Tribe Law Enforcement Services Officer responded to a report of an intoxicated male walking in the roadway. When the officer arrived in the area, he observed One Star dressed in all black and walking in the middle of the roadway. One Star was arrested for public intoxication and disorderly conduct. While he was being transported to the Rosebud Sioux Tribe Adult Correctional Facility, One Star remarked that he was a cop killer and that he was going to find and kill the officer when the officer was off duty.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
One Star was immediately turned over to the custody of the U.S. Marshals Service.
Reading, PA Man Sentenced to 19+ Years for Stockpile of 200,000+ Images of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that James Millette, 33, of Reading, PA, was sentenced to 235 months (over 19 years) in prison and lifetime supervised release by United States District Judge Joseph F. Leeson, Jr., for multiple child pornography charges. The defendant was also ordered to pay a total of $66,000 in restitution to the various victims depicted in these images.
In February 2020, Millette pleaded guilty to charges of possession and receipt of child pornography. The charges stem from the defendant’s February 7, 2019 arrest at his apartment, during which he was found to be in possession of an enormous collection of child pornography, including images depicting prepubescent minors. In total, more than 200,000 images and videos depicting child pornography were recovered from various electronic devices found in the defendant’s possession.
“The amount of child pornography seized in this case is stunning,” said U.S. Attorney McSwain. “Millette is a depraved hoarder of these illegal images – every one of which was made at the expense of an innocent child, whose life will never be the same. Protecting children by prosecuting criminals like Millette is a top priority of my Office.”
“James Millette couldn’t get enough of these abhorrent images of young children being sexually abused,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Consumers of child pornography like him perpetuate the exploitation of child victims, something the FBI simply won’t abide. May this lengthy prison sentence be a warning to others involved with such repulsive material. Our Child Exploitation Task Force could soon be knocking at your door.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Matthew Newcomer.
Queens Man Pleads Guilty to Defrauding Pharmaceutical ManufacturerRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Arkadiy Khaimov pleaded guilty before United States Magistrate Judge A. Kathleen Tomlinson to conspiring to commit mail and wire fraud by defrauding a pharmaceutical manufacturer of approximately $6.9 million by submitting fraudulent claims under the manufacturer’s Co-pay Coupon Program. As part of the plea, Khaimov agreed to forfeit approximately $489,000 as proceeds involved in the fraudulent scheme. When sentenced, Khaimov faces up to 20 years in prison.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Khaimov is held accountable for bilking a program designed to reduce the cost of prescription medicines so that he could line his own pockets with millions of dollars,” stated Acting United States Attorney DuCharme. “The defendant will now face the consequences of his fraudulent scheme.” Mr. DuCharme expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation for their exemplary work on the case.
The pharmaceutical manufacturer, referred to in the indictment as “John Doe Company 1,” established the Co-pay Program to reimburse pharmacies for dispensing a prescription medication. Between approximately February 2017 and July 2018, Khaimov and his co-conspirators submitted claims for approximately $6.9 million in reimbursements under the Co-pay Program for the medications that pharmacies operated by the defendant and his co-conspirators never actually dispensed. In some cases, Khaimov and his co-conspirators fraudulently used the credentials of a Nassau County-based physician to submit the false claims.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King, Madeline O’Connor and Department of Justice Trial Attorney Andrew Estes are in charge of the prosecution.
The Defendant:
ARKADIY KHAIMOV (also known as “Alex”)
Age: 37
Forest Hills, QueensE.D.N.Y. Docket No. 20-CR-267 (SJF)