Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 19 June 2020
The Department of Justice Files Statement of Interest Defending the Constitutionality of Idaho’s Fairness in Women’s Sports ActRead the Press Release
The Department of Justice today filed a statement of interest in Idaho federal court defending Idaho’s Fairness in Women’s Sports Act against a challenge under the Constitution’s Equal Protection Clause.
“Allowing biological males to compete in all-female sports is fundamentally unfair to female athletes” said Attorney General William P. Barr. “Under the Constitution, the Equal Protection Clause allows Idaho to recognize the physiological differences between the biological sexes in athletics. Because of these differences, the Fairness Act’s limiting of certain athletic teams to biological females provides equal protection. This limitation is based on the same exact interest that allows the creation of sex-specific athletic teams in the first place — namely, the goal of ensuring that biological females have equal athletic opportunities. Single-sex athletics is rooted in the reality of biological differences between the sexes and should stay rooted in objective biological fact.”
On March 30, 2020, Idaho enacted the Fairness in Women’s Sports Act (Fairness Act), Idaho Code Ann. § 33-6202 et seq., which goes into effect in July 2020. Idaho’s Fairness Act contains two main provisions. First, covered athletic teams “shall be expressly designated as one (1) of the following based on biological sex: (a) Males, men, or boys; (b) Females, women, or girls; or (c) Coed or mixed.” Idaho Code Ann. § 33-6203(1). Second, “[a]thletic teams or sports designated for females, women, or girls shall not be open to students of the male sex.” Id. § 33-6203(2). The Fairness Act does not contain a comparable limitation for biological females who wish to participate on a team designated for biological males.
In enacting the Fairness Act, Idaho determined that “[h]aving separate sex specific teams furthers efforts to promote sex equality. Sex-specific teams accomplish this by providing opportunities for female athletes to demonstrate their skill, strength, and athletic abilities while also providing them with opportunities to obtain recognition and accolades, college scholarships, and the numerous other long-term benefits that flow from success in athletic endeavors.” Id. § 33-6202(12). In support of this conclusion, the Fairness Act cites authority establishing that inherent physiological differences between men and women generally include a difference in “strength, speed, and endurance” that results in “different athletic capabilities,” which generally give men a significant advantage in head-to-head competition. Id. § 33-6202(1)-(10).
In its statement of interest, the United States explains that the Equal Protection Clause of the Constitution does not require States to abandon their efforts to provide biological women with equal opportunity to compete for, and enjoy the life-long benefits that flow from, participation in school athletics in order to accommodate the team preferences of transgender athletes. Put differently, the Constitution does not require Idaho to provide the special treatment plaintiffs request, under which biological males are allowed to compete against biological females if and only if the biological males are transgender.
Syracuse Man Pleads Guilty to Heroin, Fentanyl, Cocaine ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Isidro De Los Santos, age 33, of Syracuse pled guilty to conspiracy to distribute and possess with intent to distribute, and distribution of heroin, fentanyl, acetyl fentanyl, and cocaine, announced United States Attorney Grant C. Jaquith, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and Chief Kenton Buckner, City of Syracuse Police Department
As part of his guilty plea, De Los Santos admitted that he conspired with others to possess with intent to distribute and distribute heroin, fentanyl, acetyl fentanyl, and cocaine from a location on Syracuse’s west side. In pleading guilty, De Los Santos admitted that on six (6) occasions between December 2018 and January 2019, he and co-conspirator Anthony Moreno sold drugs during an undercover operation conducted by ATF, DEA, and the Syracuse Police Department. On January 31, 2019, ATF Agents assisted by the United States Drug Enforcement Administration (DEA) and the Syracuse Police Department Special Investigations Division, executed a federal search warrant at Isidro De Los Santos’s residence and recovered over a pound (743 grams) of heroin mixed with fentanyl in two packages. A federal search warrant executed at the residence of Anthony Moreno on the same day resulted in the seizure of approximately 13 ounces of cocaine. A sentencing date will be set in the future. Anthony Moreno also pled guilty previously and is awaiting sentencing.
At sentencing De Los Santos faces a maximum sentence of life imprisonment, a minimum of ten years imprisonment, a fine of up to $10 million, and a term of post-imprisonment 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 United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Drug Enforcement Administration (DEA), and the Syracuse Police Department Special Investigations Division, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Statement of U.S. Attorney Geoffrey S. Berman on Announcement by Attorney General BarrRead the Press Release
“I learned in a press release from the Attorney General tonight that I was ‘stepping down’ as United States Attorney. I have not resigned, and have no intention of resigning, my position, to which I was appointed by the Judges of the United States District Court for the Southern District of New York. I will step down when a presidentially appointed nominee is confirmed by the Senate. Until then, our investigations will move forward without delay or interruption. I cherish every day that I work with the men and women of this Office to pursue justice without fear or favor – and intend to ensure that this Office’s important cases continue unimpeded.”
Readout of Attorney General William P. Barr’s Visit with Boston and New York City Police DepartmentsRead the Press Release
On Thursday, June 18, and Friday, June 19, Attorney General William P. Barr traveled to Boston and New York City to visit with leadership and members of each city’s police department. In Boston, the Attorney General met with Commissioner William Gross and his leadership team. In New York City, the Attorney General met with Deputy Commissioner Ben Tucker and other senior NYPD officials. In both meetings, the Attorney General expressed his deep appreciation for, and importance of, the service and work of their departments and discussed policing issues that have been at the forefront of national conversation and debate.
The purpose of the Attorney General’s visit was to show the Administration’s strong support for law enforcement and seek the input of police leadership on a range of issues, including President Trump’s recent Executive Order on Safe Policing for Safe Communities, as well as other issues involving community relations, use of force, officer training, and officer wellness. These visits were the first in a series of meetings Attorney General Barr intends to hold in the coming weeks with police leadership across the nation.
Rainier Man Charged with Kidnapping Ex-GirlfriendRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Rainier, Oregon man has been charged with kidnapping his ex-girlfriend and transporting her from her home in Ilwalco, Washington to Rainier.
James Donald Cooley, 59, has been charged by criminal complaint with one count of kidnapping.
According to court documents, in the early morning hours of May 18, 2020, Cooley is alleged to have traveled from his home in Rainier to his ex-girlfriend’s home in Ilwalco without notice or invitation. He parked his vehicle on the side of Highway 101 near her home. Cooley approached his ex-girlfriend and a confrontation ensued. He grabbed her by her arms, tied her hands together with zip ties, and began pulling her toward the highway. Cooley drug his ex-girlfriend a couple hundred feet to his vehicle, put a knife to her throat, shoved her into the backseat, and began driving back to Rainier.
When Cooley arrived at his residence, his sister, who also lives in Rainier, spotted Cooley’s ex-girlfriend at his residence. Cooley’s sister confronted them and the ex-girlfriend told her that Cooley was going to kill her. Cooley’s sister contacted the Columbia County Sheriff’s Office and reported the incident. Sheriff deputies responded and later arrested Cooley.
Cooley made his initial appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending further proceedings.
This case was investigated by the Columbia County Sheriff’s Office and the FBI. It is being prosecuted by Gregory R. Nyhus, Assistant U.S. Attorneys for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Domestic violence is a serious violent crime that includes both physical and emotional abuse. It is frequently hidden from public view. Many survivors suffer in silence, afraid to seek help or not knowing where to turn. The traumatic effects of domestic violence also extend beyond the abused person, impacting family members and communities.
If you or someone you know are in immediate danger, please call 911.
If you need assistance or know someone who needs help, please contact the National Domestic Violence Hotline at 1-800-799-SAFE (7233). Many communities throughout the country have developed support networks to assist survivors in the process of recovery.
Project Guardian Update: Seven Felons Appear in Federal Court for Gun CrimesRead the Press Release
CHARLESTON, W.Va. -- Defendants in seven separate Project Guardian cases appeared in federal court this week, according to United States Attorney Mike Stuart.
Kevin Lee Ramsey, 30, of Parkersburg, pled guilty to being a felon in possession of a firearm. Ramsey admitted that he possessed a loaded Heckler & Koch 9mm compact semi-automatic pistol within a vehicle in which he was riding as a passenger on August 15, 2019. On that date, the vehicle was stopped by officers with the Parkersburg Police Department near the intersection of 7th Street and Swann Street in the city of Parkersburg. Pursuant to that traffic stop, officers searched the vehicle and discovered the firearm in the glove box directly in front of where Ramsey was seated. At the time that Ramsey possessed this firearm, he knew that he had been previously convicted of the offense of delivery of heroin in Wood County Circuit Court in July of 2015, and was prohibited by law from possessing a firearm. He faces up to 10 years in prison when sentenced on September 9, 2020 in Charleston. The Parkersburg Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
Anthony Smith, 44, of Wayne County, was sentenced to 33 months for being a felon in possession of a firearm. He previously admitted that on April 8, 2019, troopers with the West Virginia State Police searched his vehicle in the parking lot of the Speedway gas station on 5th Street Road in Huntington. Troopers located a loaded sawed off shotgun in the vehicle. Smith admitted the gun was his. Smith was prohibited from possessing a firearm under federal law because of a 2005 conviction for the felony offense of aggravated assault with a deadly weapon in Davidson County, Tennessee. The West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
Ricky Nelson, 32, of Logan County, was sentenced to 30 months in prison and three years of supervised release for being a felon in possession of a firearm. Nelson previously admitted that on April 30, 2018, he possessed a RG Model 23, .22 in Boone County. While in his possession, the gun fired, shooting another person. His possession of the firearm was illegal due to his having been convicted in the Circuit Court of Logan County for robbery in the first degree. The Boone County Sheriff’s Office conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the sentencing. Assistant United States Attorney Christopher Arthur handled the prosecution.
David Walker, Jr., 45, of Huntington, was sentenced to 57 months in prison and three years of supervised release for being a felon in possession of a firearm. Walker previously admitted that while on parole, he possessed two firearms. He is prohibited from possessing firearms because he was convicted in 2018 of the felony offense of possession with intent to deliver controlled substances in Cabell County. The West Virginia State Police and the West Virginia Division of Corrections Probation and Parole conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor handled the prosecution.
Jonathan Felts, 31, of Greenbrier County, was sentenced to 50 months in prison and three years of supervised release for being a felon in possession of a firearm. Felts previously admitted that on August 16, 2018, he was a passenger in a motor vehicle driving on Route 20 in Summers County. The vehicle was stopped because the registration plates were not visible. The deputy sheriff smelled burned marijuana coming from the vehicle. The deputy had each occupant exit the vehicle. In Felts’ backpack, deputies located a Springfield Armory XDS, .40 caliber six round magazine, numerous empty baggies used in the distribution of controlled substances, a blue digital scale, and approximately three grams of a white crystal substance. Upon further search of the vehicle, deputies located a Glock, model 27, .40 caliber pistol under the passenger seat and a Springfield Armory XDS, .40 caliber pistol stuffed underneath the cushion of the back seat. The Springfield Armory XDS, .40 caliber six round magazine that was located in a lock box found in Felts’ red backpack fit the Springfield Armory XDS, .40 caliber pistol. Felts’ prior felony convictions included delivery of oxymorphone and burglary in Greenbrier County. The Summers County Sheriff’s Department, the Summers County Prosecutor’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Kristin F. Scott handled the prosecution.
David Moore, 40, of Beckley, was sentenced to 46 months in prison to be followed by three years of supervised release for being a felon in possession of a firearm. Moore previously admitted that on April 1, 2017, a Raleigh County Sheriff’s Deputy pulled him over near the Beckley bypass. At the time of the stop, the officer saw a firearm in the back seat area of Moore’s car. Moore admitted to the deputy that he possessed the Sig Sauer P522, .22 caliber semi-automatic firearm found in the car. Moore further admitted that he knew it was illegal for him to possess a firearm because he had been convicted of a felony in 2003 in Raleigh County Circuit Court for delivery of a controlled substance. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
Richard Spinks, 40, of Richwood, was sentenced to 18 months in prison and a term of three years of supervised release for being a felon in possession of a firearm. Spinks previously admitted that he was in possession of a firearm on June 22, 2019, despite his knowledge that he was prohibited by federal law from possessing firearms due to a 2010 felony conviction in Nicholas County Circuit Court for forgery. Spinks was witnessed carrying a Savage .22 caliber rifle into the home of another individual in Richwood by a sergeant with the Nicholas County Sheriff’s Department. When officers arrived at the residence to investigate, they encountered Spinks and two other individuals, who both gave statements indicating that Spinks carried the weapon into the residence. The firearm was seized, and Spinks was then placed under arrest. The Nicholas County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Andrew Tessman handled the prosecution.
The cases are 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 (ATF) when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners listed above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Philadelphia Woman Who Worked with Children at Multiple Locations Arrested for Distributing Child PornographyRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Tayanna Bowman, 23, of Philadelphia, Pennsylvania, has been arrested and charged with one count of distribution and attempted distribution of child pornography. The charges arise out of the defendant’s alleged distribution of images and videos -- including to an undercover federal agent -- on a file sharing platform over the internet.
At the time of the alleged offenses, Bowman worked with some of the most vulnerable members of society – autistic children. She was employed as a behavioral health technician at ChanceLight Autism Services in Havertown until June 12, 2020. Previously, she was employed as a teaching assistant at Cynthia’s Little Treasures Day Care on North 63rd Street in West Philadelphia.
“The allegations in this case are disturbing,” said U.S. Attorney McSwain. “Any child exploitation case is a very serious matter, but here, the defendant was working with vulnerable, autistic children while she was engaged with an online community of individuals interested in the sexual abuse and exploitation of children -- and illegally distributing child pornography to that community. It is our duty to protect the most vulnerable members of society and we will continue to uphold that duty by bringing to justice anybody who preys upon minor children.”
“It’s extremely concerning when someone allegedly distributing child pornography also works with children,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI is committed to identifying, locating, and holding responsible anyone who circulates this vile material. In doing so, they extend the trauma of the children victimized and drive a demand for additional abusive content.”
If convicted, Bowman faces a statutory maximum sentence of 20 years in prison, a lifetime of supervised release, and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Kelly Harrell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pearl River County Man Pleads Guilty to Failing to Register as Sex OffenderRead the Press Release
Gulfport, Miss. – Nathanael Cecil Hall III, 37, of Pearl River County, Mississippi, pled guilty yesterday before U.S. District Judge Sul Ozerden to failing to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA), also known as the Adam Walsh Act, announced U.S. Attorney Mike Hurst and U.S. Marshal Mark Shepherd for the Southern District of Mississippi.
Hall will be sentenced by Judge Ozerden on September 24, 2020, at 10:30 a.m. in Gulfport. He faces a maximum penalty of 10 years in prison, a $250,000.00 fine, and 5 years to life of supervised release.
In 2006, Hall was convicted of “Possession of Photographs, Film or other Representation that Knowingly Includes Sexual Conduct of a Child” in Hillsborough County, Florida. As part of his sentence, Hall was required to register as a sex offender. He also was required to notify/register with Florida officials if he moved away from the State of Florida.
In March 2020, Hall did not appear in person for his scheduled sex offender registration in Florida, and it was determined that he had absconded. A full extradition arrest warrant was issued by the Hillsborough County Sheriff’s Office for failure to renew his sex offender registration. The U.S. Marshals Service in the Middle District of Florida was advised by the Florida Department of Law Enforcement that Hall had absconded from supervision and appeared to have departed the State of Florida.
In April 2020, the U.S. Marshals obtained information showing Hall had been in Picayune, Mississippi, during January and February 2020. After an investigation, members of the USMS Gulf Coast Regional Fugitive Task Force traveled to Picayune on May 8, 2020, to locate and arrest Hall. Hall was arrested without incident based on the Florida State Arrest Warrant. He was transported to the Pearl River County Sherriff’s Office, where he was charged with failing to register as a sex offender in Mississippi. He was held at the Pearl River County Adult Detention Facility, until he was released to the U.S. Marshals Service after a federal criminal complaint and arrest warrant were issued. A multi-jurisdiction investigation, coordinated by the U.S. Marshals, showed that Hall failed to fulfill his registration requirement in Florida, and traveled interstate to Mississippi.
Law enforcement records document that Nathanael Cecil Hall, III, also has been known by, or has had attributed to him, the following names or name variations: Nathanael Cecil Paul Hall, III, Nathanael Hall, and Satanica.
U.S. Attorney Hurst commended the coordinated investigation conducted by the U.S. Marshals Service, the Mississippi Department of Public Safety, the Pearl River County Sheriff’s Department, the Florida Department of Law Enforcement, and the Hillsborough County Sheriff’s Department in Florida. The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
Omaha Woman Sentenced for Straw Purchase of Two FirearmsRead the Press Release
United States Attorney Joe Kelly announced that Ashlie Rickards, 27, of Omaha, Nebraska, was sentenced by United States District Judge Robert F. Rossiter, Jr. on June 18, 2020 for transferring a firearm to a prohibited person. She received a three-year term of probation.
An ATF investigation revealed that Rickards purchased two Taurus 9mm handguns in 2016. According to firearms transactions records executed by Rickards, she purchased four handguns between the dates of September 22 and September 24, 2016. Two of the purchases were, by Rickards own admissions, straw purchases. A straw purchase occurs when someone buys a firearm for another person who is legally prohibited from purchasing a firearm.
Between September 11 and September 24, 2019, Omaha Police conducted two interviews with Rickards. Ultimately, she admitted to purchasing two Taurus 9mm 111G2 handguns for her then boyfriend in exchange for money. The boyfriend was prohibited from possessing a firearm. During each purchase, Rickards falsified firearm transaction documents indicating that she was the actual transferee/buyer of the firearm listed when, in fact, she was acquiring the firearm on behalf of another person, which is a violation of federal law. Her boyfriend is not charged at this time.
This case was investigated by Omaha Police officers who are members of a Bureau of Alcohol, Tobacco, Firearms, and Explosives task force. This case is part of Project Safe Neighborhoods, which is a national initiative of the Department of Justice that was announced in 2001 to reduce and prevent violent crime and make the nation’s neighborhoods safer.
Omaha Man Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Joe Kelly announced that John West, Jr., 38, of Omaha, Nebraska, was sentenced by United States District Judge Robert F. Rossiter, Jr. on June 18, 2020, for Conspiracy to Distribute Methamphetamine and Possession with Intent to Distribute Methamphetamine. He received a sentence of 120 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
On December 6, 2018, Sarpy County Sheriff’s deputies utilized an informant to purchase approximately 1.5 grams of methamphetamine mixture from West inside of West’s residence. Then on March 14, 2019, the informant purchased 11 grams of actual methamphetamine from West. On March 25, 2019, the informant purchased 12 grams of actual methamphetamine from West. Later that same day, the informant purchased a stolen/defaced Springfield XDs 9mm handgun from West. On April 11, 2019, the informant purchased 2 grams of actual methamphetamine from West on the street outside of his residence. On April 30, 2019, the informant purchased 11 grams of actual methamphetamine from West. On June 27, 2019, the informant purchased 10 grams of actual methamphetamine from West inside of his residence. On August 6, 2019, officers executed a search warrant on West’s residence and seized 75 grams of actual methamphetamine, a scale, a cell phone, and $801. A search of the phone showed text messages evidencing his involvement in sales of methamphetamine. In a post-Miranda interview, West admitted to selling and using methamphetamine.
This case was investigated by the Sarpy County Sheriff’s Office.
Old Forge Man Charged with Tax EvasionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Jones, age 53, of Old Forge, Pennsylvania, was charged on June 16, 2020, by criminal information with tax evasion.
According to United States Attorney David J. Freed, the criminal information alleges that Jones failed to report over $500,000 in taxable income between 2014 and 2019 to avoid paying federal income taxes. The information alleges that Jones failed to report income he gained from illegal bookmaking activities. The information further alleges that Jones made false statements to federal agents in February 2019 during the investigation.
The case is being investigated by the U.S. Internal Revenue Service (IRS). Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Niagara Falls 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 Verquan Jackson, 32, of Niagara Falls, NY, with attempted possession with intent to distribute MDMA, maintaining a drug-involved premises, and possession of a firearm in furtherance of drug trafficking offenses. The charges carry up to 45 years in prison.
Assistant U.S. Attorney Charles E. Watkins, Jr., who is handling the case, stated that according to the indictment and a previously filed complaint, on February 13, 2020, the United States Postal Inspection Service was notified about a box that was shipped from California to Niagara Falls breaking open during transit. Inside the box, which was addressed to Jackson at his 65th Street residence, were approximately 41 lbs. of 2 oz. individual narcotics distribution baggies.
Subsequently, on April 8 and May 19, 2020, search warrants were executed on packages addressed to the defendant’s residence but in the names of B. Jackson and Jane Brown. One package contained approximately 695 grams of suspected marijuana and paraphernalia. The other package contained approximately 652 grams of multicolored pills containing MDMA and fentanyl.
On May 21, 2020, the package containing the MDMA was replaced with sham and delivered to Jackson’s residence. A short time later, investigators executed a search warrant inside the residence. They recovered a 9mm firearm; five digital scales; a box of plastic sandwich baggies; clear plastic bags containing a tan powdery substance; designer drug packaging bags; and multiple clear plastic bags containing suspected marijuana.
Jackson made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and was released on conditions.
The indictment is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata.
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.
# # # #
Neopit Woman Indicted for Felony Child Abuse on the Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on June 16, 2020, a federal grand jury returned a one-count indictment against a woman allegedly involved in felony child abuse against a child on the Menominee Indian Reservation. The indictment named Markala K. Waukau (age: 18) of Neopit.
The indictment charged Waukau with Felony Child Abuse in violation of 18 U.S.C. § 1153(a) and Wis. Stat. § 948.02(b)(2). If convicted, Waukau faces a maximum of three years in prison, up to a $10,000 fine, and up to three years of supervised release.
According to the indictment, on or about January 6, 2020, the defendant struck a child under the age of one with an elbow while at a residence on the Menominee Indian Reservation. The child’s injuries included a fractured skull and hematomas.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Maryland Man Sentenced to 70 Months' Imprisonment for Narcotics Trafficking Conviction in ATF Firearms and Narcotics InvestigationRead the Press Release
WASHINGTON – Marcus Stackhouse, 37, of Maryland was sentenced today to 70 months’ imprisonment on a federal narcotics trafficking charge stemming from his narcotics trafficking in the summer and fall of 2019, announced Acting U.S. Attorney Michael R. Sherwin, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On February 13, 2020, Stackhouse pled guilty in the U.S. District Court for the District of Columbia to one count of Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or more of Cocaine Base. Today, June 19, 2020, he was sentenced to 70 months’ imprisonment followed by four years of supervised release by the Honorable Amit P. Mehta of the U.S. District Court, with some of that term to run concurrently to his ongoing sentence in Prince George’s County, Maryland.
Stackhouse was arrested after the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) engaged in a large-scale drug investigation in the 2900 block of Martin Luther King Jr. Avenue, Southeast, Washington, D.C. and arrested multiple individuals involved with narcotics trafficking. During the investigation, the ATF conducted several controlled purchases of narcotics from Stackhouse, to include the purchase of cocaine base (also known as crack cocaine). After Stackhouse was arrested on a separate firearms charge in Maryland, Stackhouse’s brother – Kevin Stackhouse – took over the narcotics trafficking on Stackhouse’s behalf. On October 9, 2019, ATF obtained a search warrant and conducted a search of Kevin Stackhouse’s residence, finding a digital scale, drug paraphernalia, cocaine residue, two loaded firearms – a .22 caliber firearm and a revolver – and four imitation firearms. Law enforcement also recovered nearly 400 rounds of ammunition, and two additional firearms magazines. On January 8, 2020, Kevin Stackhouse pled guilty to one count of Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense, and on May 7, 2020, Judge Mehta sentenced Kevin Stackhouse to 60 months’ imprisonment.
“This investigation is another example of our ability and desire to disrupt drug trafficking organizations in the District of Columbia, even and especially during a global public health crisis,” said Acting U.S. Attorney Sherwin. “As a result of this effort, we were able to remove dangerous narcotics and firearms off of our streets.”
“Today’s sentencing is the culmination of an extensive and highly successful investigation by our dedicated agents and law enforcement partners,” said ATF Washington Special Agent in Charge Ashan M. Benedict. “This operation accomplished multiple objectives, including the removal of firearms and ammunition, as well as the arrests and convictions of multiple suspects tied to these crimes. Our communities are safer today as a result of these efforts.”
“This arrest and conviction gets us one step closer to making our communities in the District safe from illegal drugs, firearms and violent crime,” said Metropolitan Police Chief Peter Newsham. “The coordinated effort between federal and local agencies demonstrates our commitment to bringing individuals involved in these types of crimes to justice.”
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
This case was also prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the District of Columbia, Acting U.S. Attorney Sherwin coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
In announcing the sentence, Acting U.S. Attorney Sherwin, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case, including ATF and MPD. They also expressed appreciation for the assistance provided by the United States Secret Service, U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland.
Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Section, Paralegal Specialist Teesha Tobias, Kim Hall, Candace Battle, and Legal Assistant Peter Gaboton.
MS-13 Members Sentenced to Prison for Violent 2018 AttackRead the Press Release
ALEXANDRIA, Va. – Two MS-13 members were sentenced today to over a combined 28 years in prison for their roles in a December 2018 shooting and stabbing that occurred in Four Mile Run Park.
“Yes, Northern Virginia has a gang problem,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I have personally handled the prosecution of MS-13 members in Alexandria for over a decade. By burying their heads in the sand and lacking courage to address a problem because they mistakenly deem it to be politically incorrect, various community leaders in Northern Virginia simply refuse to acknowledge the gang problem to the detriment of the same Hispanic community they claim to be defending. No one suffers more at the hands of MS-13 than other individuals of Central American birth or ancestry. MS-13 gang members extort minority owned businesses in their own communities, sexually traffic first generation American juveniles, and brutally assault and even murder Hispanic boys and girls who they believe have disrespected the gang. This case is proof positive of the need for community leaders in Northern Virginia to acknowledge this reality and work to be part of the solution. We cannot prosecute MS-13 out of existence. The community must play a significant role to protect our youth from joining the gang in the first place. I believe that together we can eliminate the gang problem in Northern Virginia.”
According to court documents, Juan Francisco Rivera-Pineda, 25, and Jefferson Noe Amaya, 25, both of Alexandria, are members of the Pinos Locos Salvatrucha (PLS) clique of MS-13, which operates in Chirilagua, an area in Alexandria near the border of Arlington.
On Dec. 30, 2018, Rivera-Pineda and Amaya shot and stabbed a 40-year-old victim while the victim and his two friends were in Four Mile Run Park. The victim’s nephew had been warned by PLS not to sell drugs in PLS territory without paying rent. On the night of the shooting, Rivera-Pineda, Amaya, and a third unidentified suspect confronted the victim in the park, shooting him in the throat and arm, and stabbing him in the torso. The victim was transported to the hospital where he underwent surgery and survived.
“Today's sentencings send a clear message that the FBI and the Safe Streets Task Force remain aggressive in investigating and dismantling gang activity that brings violence and fear into our communities,” said James A. Dawson, Special Agent in Charge of the Criminal Division, FBI Washington Field Office. “The FBI will continue steadfastly in its goal to take these violent offenders off the street and ultimately bring justice to the victims of these brutal acts.”
Rivera-Pineda and Amaya each pleaded guilty to assault with a dangerous weapon in aid of racketeering activity, and discharging a firearm during a crime of violence. Rivera-Pineda was sentenced to 161 months in prison, and Amaya was sentenced to 177 months. Each sentence included a mandatory minimum penalty of 10 years.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Blue Heat. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This matter was investigated by the FBI Washington Field Office’s Safe Streets/HIDTA Task Force – Northern Virginia, which is composed of FBI Agents, along with Detectives from the Fairfax County Police, Alexandria City Police, Prince William County Police, Arlington County Police, Alexandria Police Department, Alexandria Sheriff’s Office, Vienna Police Department, Herndon Police Department, along with Agents from the Department of Homeland Security Enforcement Removal Operations, the USMS, and the Northern Virginia Gang Task Force. The task force is charged with investigating, disrupting and dismantling the most egregious and violent gangs operating in Northern Virginia to include MS-13.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; M. Jay Farr, Arlington County Chief of Police; and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Morris Parker and Natasha Smalky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-225.
Long Island Man Indicted on Sexual Exploitation and Child Pornography ChargesRead the Press Release
An indictment was filed today in federal court in Central Islip charging Thomas Blaha with traveling to the Philippines with intent to engage in illicit sexual conduct, sexual exploitation of a child, distribution of child pornography and possession of child pornography. Blaha was arrested on a complaint in February 2020 and released on a $1 million bond. He will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the charges.
“The defendant allegedly traveled halfway across the globe to sexually exploit a minor that he had enticed through Facebook and create child pornography,” stated United States Attorney Donoghue. “The Department of Justice is committed to protecting children from online predators by identifying such offenders and prosecuting them to the full extent of the law.”
“It is alleged Blaha made trips to the Philippines to sexually abuse a 13-year old female who was being exploited for money,” stated HSI Special Agent-in-Charge Fitzhugh. “Crimes involving the sexual exploitation of unwitting children are the most heinous and will not be tolerated, regardless of where the sexual acts occur. HSI is a global investigative agency, and with our resources and partnerships with the United States Attorney’s Office, we will stop at nothing to put an end to child victimization worldwide.”
According to court filings, in September and October 2019 Blaha traveled from New York to the Philippines to engage in sexual activity with a 13-year-old female and persuade her to take sexually explicit images of herself and send them to him in exchange for money. As a part of the government’s investigation, in December 2019, search warrants were obtained for Blaha’s Facebook account, as well as his residence in Garden City and his electronic devices. The searches revealed hundreds of images of children engaged in sexually explicit conduct.
The charges in the indictment are allegations only, and the defendant is presumed innocent unless and until proven guilty. If convicted, Blaha faces a mandatory minimum sentence of 15 years’ imprisonment.
This prosecution 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 United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Anna L. Karamigios is in charge of the prosecution.
The Defendant:
THOMAS BLAHA
Age: 64
Garden City, New YorkE.D.N.Y. Docket No. 20-CR-220 (JMA)
Labor trafficker sentenced for encouraging the illegal entry of Guatemalan nationals, including unaccompanied minors, into the United StatesRead the Press Release
Justin E. Herdman, U.S. Attorney for the Northern District of Ohio, announced that Pablo Duran Ramirez, age 52, was sentenced to 37 months imprisonment, three years supervised release and ordered to pay a $67,232 fine after pleading guilty to one count of encouraging illegal entry for financial gain on September 17, 2018. According to court documents, Ramirez encouraged the illegal entry of Guatemalan nationals, including unaccompanied minors, into the United States, knowing that the individuals had been smuggled into the United States through coercion or threat.
“Ramirez exploited the desperation of migrant workers and, in some instances, their children for his own personal financial gain,” said U.S. Attorney Justin Herdman. “Human trafficking can take many forms, and this sentence reflects the Justice Department’s commitment to combat this plague in every shape it takes.”
"Ramirez, in conspiracy with three other previously convicted individuals, coerced and assisted individuals to enter the United States illegally, many of them children, forcing them to live in deplorable conditions and work for little to no wages,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Division. “These reprehensible actions are unacceptable. The FBI will continue to work with our partners to identify and bring to justice those who engage in human trafficking."
Ramirez, through his company, Haba Corporate Services, contracted to provide labor to Trillium Farms, knowing that the workers were unlawfully present in the United States. He further admitted to knowing that some of the workers were unaccompanied minors who had been coerced or threatened to enter the United States and then housed in an isolated trailer park in Marion, Ohio. In 2013 and 2014, Trillium Farms paid the defendant’s company approximately $6 million for its labor services.
Three other defendants—Aroldo Castillo-Serrano, of Guatemala, Ana Angelica Pedro-Juan, of Guatemala, and Conrado Salgado-Soto, of Mexico—previously pleaded guilty for their roles in the same labor trafficking scheme. Castillo-Serrano, the lead smuggler and primary enforcer, was sentenced to 188 months in prison; Pedro-Juan, who oversaw the victims in Ohio, was sentenced to 120 months; and Salgado-Soto, a subcontractor hired by Duran Ramirez, was sentenced to 51 months.
Those defendants admitted to recruiting workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. During their sentencing, Senior United States District Judge James G. Carr found that they had threatened workers with physical harm and withheld their paychecks in order to compel them to work. Eight minors and two adults were identified as victims of the scheme.
Three additional defendants, including Duran Ramirez’s son, pleaded guilty for their roles in encouraging the workers’ illegal entry into the United States.
This case was investigated by the FBI’s Cleveland Office, Mansfield Resident Agency and the Department of Homeland Security. The case was jointly prosecuted by Assistant U.S. Attorney Chelsea Rice and Dana Mulhauser, formerly of the Civil Rights Division’s Criminal Section.
Keshena Man Indicted for Domestic Violence on the Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on June 16, 2020, a federal grand jury returned a one-count indictment against a man allegedly involved in domestic violence against a woman on the Menominee Indian Reservation. The indictment named Justin M. Moore (age: 35) of Keshena.
The indictment charged Moore with Domestic Assault by Strangulation in violation of 18 U.S.C. § 113(a)(8). If convicted, Moore faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the indictment, on or about December 1, 2019, the defendant strangled a woman with whom he had a dating relationship on the Menominee Indian Reservation.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Kayenta Man Sentenced to Federal Prison for Domestic AssaultRead the Press Release
PHOENIX, Ariz. – On Monday, Ervin Crank, 58, of Kayenta, Arizona, was sentenced by U.S. District Judge Steven P. Logan to 30 months of imprisonment to be followed by three years of supervised release. Crank previously pleaded guilty to assault of an intimate partner or dating partner resulting in substantial bodily injury.
On July 1, 2019, Crank assaulted the victim by striking her multiple times with his hand. The assault occurred on the Navajo Nation Indian Reservation and both Crank and the victim are enrolled members of the Navajo Nation.
The Navajo Nation Division of Public Safety and the Federal Bureau of Investigation conducted the investigation in this case. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-19-08192-PCT-SPL
RELEASE NUMBER: 2020-059_Crank# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Kaplan Sex Offender Sentenced to 7+ Years in Federal Prison for Possessing Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Kaplan, Louisiana, man with a prior 2002 state conviction of carnal knowledge of a juvenile, was sentenced in federal court today for a child pornography offense.
Jessie C. Comeaux, 37, was sentenced by U.S. District Judge Michael J. Juneau., to 87 months in federal prison for possession of child pornography. Following his imprisonment, Comeaux will be supervised by the United States Probation Office for eight years and will be required to register with the state sex offender registry in any state in which he lives or works. Comeaux pled guilty to this charge on March 12, 2020.
According to court records, the investigation began when the National Center for Missing and Exploited Children (NCMEC) reported a CyberTip to special agents with the Louisiana Bureau of Investigations (LBI) Cyber Crimes Unit indicating that an IP address associated with Comeaux’s address used an electronic device to access child pornography. Special agents with U.S. Department of Homeland Security Investigations (HSI) obtained a federal court-authorized search warrant, and on April 1, 2019, law enforcement officers with HSI, LBI and Vermilion Parish Sheriff’s Office executed the search warrant at Comeaux’s residence in Kaplan. A laptop previewed during the search revealed images of child pornography. Comeaux admitted to the officers that he was the primary user of the laptop and that he viewed images of child pornography on the internet involving females 10 and 12 years of age.
A subsequent forensic analysis of Comeaux’s laptop revealed 42 images of pre-pubescent and post-pubescent children engaged in sexually explicit conduct, some as young as two years of age. Seven of the images had been downloaded by Comeaux from the internet.
The U.S. Department of Homeland Security Investigations, Louisiana Attorney General’s Office Cyber Crime Unit, and Vermilion Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Danny Siefker prosecuted the case.
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 the United States. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the “resources” tab.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/tipline or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Tips may also be submitted through your local law enforcement agency or through the following agencies:
- Leave a tip with the FBI at https://tips.fbi.gov. Tips may be submitted anonymously.
- File a report with NCMEC at 1-800-THE-LOST or online at www.cybertipline.org.
# # #
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.
KC-Area Brothers Plead Guilty to $4 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Two Kansas City-area brothers have pleaded guilty in federal court this week to their roles in a multi-million dollar investment fraud scheme.
Phillip Hudnall, 49, of Lenexa, Kansas, waived his right to a grand jury and pleaded guilty today before U.S. District Judge Roseann Ketchmark to a federal information that charges him with conspiracy to commit money laundering. His brother, Brian Hudnall, 43, of Kansas City, Missouri, pleaded guilty on Wednesday, June 17, to the same charge in a separate but related case.
Phillip Hudnall was one of the owners of BirdDog Business Group, LLC. Brian Hudnall owned and operated a business called DonDon LLC.
Phillip Hudnall and his co-conspirators proposed an opportunity to high net worth individuals to invest in the purchase, refurbishing, and sale of used oil equipment. Phillip Hudnall informed investors that their principal would be returned within nine months along with 20 to 30 percent interest.
Phillip Hudnall informed the investors that BirdDog had completed two successful transactions – a $244,000 loan and a $490,000 loan, both of which had been repaid with an interest rate of 30 percent. In fact, no prior completed transactions occurred and no monies were received from the sale of any oil equipment including any principal or interest. To support the false claim, Phillip Hudnall requested that Brian Hudnall create documents as proof of the prior successfully completed transactions. Brian Hudnall wrote two checks on a DonDon bank account that was closed. Brian Hudnall also created a fraudulent memorandum to support the false claim.
Phillip Hudnall informed the investors that the monies raised would be used to purchase specific pieces of oil equipment for refurbishment and resale. Persons invested approximately $3.6 million for the purpose of purchasing specific pieces of oil equipment. Phillip Hudnall and another person also obtained a loan from a bank in Pittsburgh, Pennsylvania, for approximately $1.3 million to finance the oil equipment scheme.
From February through June 2019, Phillip Hudnall transferred approximately $4.1 million from the BirdDog Oil Equipment bank account to the DonDon bank account. Thereafter, Brian Hudnall transferred approximately $4 million from the DonDon account to the bank account of Kansas Oil Reserve 2, another company owned by Phillip Hudnall and operating at the same address as BirdDog Oil Equipment.
Phillip Hudnall used approximately $925,000 of that money to purchase “used oil equipment.” He used the remainder of the investor funds to purchase mineral rights in Weld County, Colorado, for $1.7 million, a BMW for $99,000, and transfer approximately $1.6 million to his other business and personal bank accounts.
Brian Hudnall retained approximately $58,000 of the investor monies in the DonDon account. Brian Hudnall transferred $34,000 to other accounts, paid over $15,000 in credit card charges, and withdrew approximately $6,000 in cash.
Under the terms of their plea agreements, Phillip and Brian Hudnall must pay restitution to the victims of the fraud scheme, in an amount to be determine by the court. They must also forfeit to the government an amount to be determined by the court. The government believes a money judgment in the amount of at least $3,848,067, representing the proceeds Phillip Hudnall received as result of the criminal conspiracy , is supported by the evidence. Phillip Hudnall must forfeit his 2019 BMW X7 and his mineral and royalty rights.
Under federal statutes, Phillip and Brian Hudnall each are subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Paul S. Becker. They were investigated by the FBI and the Securities and Exchange Commission.
KC Man Sentenced for $2.5 Million Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for a scheme to obtain more than $2.5 million in fraudulent federal income tax refunds, in part by stealing his children’s identities.
“This lifelong criminal has spent his entire adult life committing one fraud after another,” said Garrison, “but he reached a new low when he used his own children in a failed tax fraud scheme. Even after being indicted by a federal grand jury, he continued to steal from the public by filing another false tax return and by fraudulently claiming unemployment benefits. Today’s substantial prison sentence will deter him from committing more crimes and protect the public from his habitual thievery.”
“Today’s sentencing further shows that IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Acting Special Agent in Charge Adam Steiner. “Individuals who commit refund fraud with this degree of dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation along with the United States Attorney’s Office remains vigilant in identifying, investigating, and prosecuting those individuals who seek to willfully defraud the United States Treasury.”
Michael A. Kheop, 53, was sentenced by U.S. Chief District Judge Beth Phillips to eight years and six months in federal prison without parole. The court also ordered Kheop to pay $24,322 in restitution.
On Dec. 2, 2019, Kheop was found guilty at the conclusion of a bench trial of three counts of making false claims, two counts of mail fraud and one count of aggravated identity theft.
Kheop created a fraudulent business entity in 2013. He then created fraudulent W-2 forms that contained false income and withholding in order to fraudulently claim refunds in his own name and using his three minor children’s names. Kheop filed 12 fraudulent claims for refunds on behalf of his three minor children for tax years 2014 through 2017. He filed four fraudulent claims for refunds in his own name for tax years 2015 through 2017.
By filing the 15 fraudulent claims for refunds, Kheop attempted to defraud the government of $2,591,706. The U.S. Treasury actually paid Kheop $24,322. In August 2017, the IRS sent Kheop a check for $717,910 based on his false 2016 return, but Central Bank refused to deposit the check due to suspected fraud and contacted the IRS. In 2018, the IRS also sent Kheop a check for $1,596,765 based on his false 2017 tax return, which Kheop attempted to deposit at Merrill Lynch/Bank of America. Once again, the bank suspected the check was fraudulent and refused to release the funds to Kheop.
The false claims convictions are specifically related to three tax returns Kheop filed in 2018, one in his own name and two in the names of his minor children. The mail fraud convictions are specifically related to refund checks mailed to Kheop’s post office box. The aggravated identity theft conviction is specifically related to the use of his minor child’s name and Social Security number on a federal income tax return.
On Oct. 10, 2018, Kheop was released on bond after indictment in this case. While on pre-trial supervision, on Feb. 22, 2019, he filed yet another false tax return for tax year 2018, claiming he worked for “Michael Kheop,” that he earned $17,500, and withheld $1,451 in federal income taxes. Kheop also filed false unemployment claims with the state of Missouri in 2017 and 2018, while on pre-trial release, claiming he worked for (and was laid off from) yet another fictional company, Quddus. The state of Missouri paid Kheop a total of $7,680 based on his false unemployment claims. Based on these new law violations, the court revoked Kheop’s pre-trial supervision.
Today’s sentence includes an enhancement for obstruction of justice because Kheop testified falsely at his trial that he paid income tax withholding.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney and Special Assistant U.S. Attorney Bradley Cooper. It was investigated by IRS-Criminal Investigation.
Justice Department Files Lawsuit Against Stafford County, Virginia, over Blocking of Islamic CemeteryRead the Press Release
The Justice Department today announced that it has filed a lawsuit alleging that Stafford County, Virginia, violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by enacting overly restrictive zoning regulations prohibiting an Islamic organization from developing a religious cemetery on land it had purchased for that purpose.
“The United States of America must and will remain a nation committed to the right of all people to practice their faith free from unjustified governmental restrictions. Indeed, this nation exists to provide sanctuary to people seeking the religious freedom that is too often denied in other parts of the world, and the Department of Justice is committed to protecting the fundamental right of people of all faiths to practice their religion free from illegal governmental interference,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “That right protects the freedom of faith communities to use their land for religious purposes, including for cemeteries, houses of worship, and religious schools.”
“Honoring and burying the dead is a sacred religious act for many faith traditions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The complaint that was filed in this case demonstrates this office’s commitment to ensuring that those of all faiths are not substantially burdened by improper local government actions in practicing their religious rituals.”
The complaint, filed in the Eastern District of Virginia, alleges that the county passed an ordinance in 2016 that blocked the All Muslim Association of America from developing an Islamic cemetery on a 29-acre parcel of land that it owns. When the association bought the property, it complied with all of the state and local requirements for use as a cemetery. But after learning of the association’s plans, the county amended its ordinance to require that cemeteries be no closer than 900 feet from private wells and certain types of streams, thus preventing the association from using its property as a cemetery. The United States’ complaint alleges that this requirement is far more restrictive than the Virginia Department of Health’s 100-foot distancing standard, has no legitimate health justification, imposes a substantial burden on the association’s religious exercise, and is not narrowly tailored to achieve a compelling governmental interest.
The complaint seeks injunctive relief, including a court order that the county allow the association to build its cemetery in conformity with the prior ordinance.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Juneteenth Message from Civil Rights Division Assistant Attorney General Eric DreibandRead the Press Release
Assistant Attorney General for Civil Rights Eric Dreiband issued the following statement today regarding Juneteenth:
“On June 19, 1865, the Emancipation Proclamation was first announced to enslaved African-Americans in Texas. On that day, Union soldiers, led by Major General Gordon Granger, landed at Galveston, Texas, with news that the Civil War was over and that the enslaved were now free. This was two and a half years after President Abraham Lincoln’s Emancipation Proclamation became the official policy of the United States on January 1, 1863.
“Today, “Juneteenth” has become a day to recognize the abolition of slavery and the continuing work to promote racial equality for all Americans.
“When President Lincoln issued the Emancipation Proclamation, it had little impact on Texans due to the minimal number of Union troops to enforce it. For over two years, 250,000 men, women, and children remained enslaved in Texas. When Confederate forces surrendered in April of 1865, and Union soldiers led by General Granger arrived in Texas, the Union army overcame the resistance.
“After General Granger arrived in Texas, he issued General Order Number 3. It began:
"The people of Texas are informed that in accordance with a Proclamation from the Executive of the United States, all slaves are free. This involves an absolute equality of rights and rights of property between former masters and slaves, and the connection heretofore existing between them becomes that between employer and hired laborer."
“The Juneteenth announcement in Texas sparked joyous celebrations of freedom that have grown in communities across our nation for the past 155 years. Today, forty-seven states and the District of Columbia officially commemorate Juneteenth.
“But even after the Juneteenth announcement, a regime of racial violence, intimidation, abuses of authority under color of law, and the use of debts, threats, and assaults held many of the ostensibly freed citizens in conditions of inequality.
“While Juneteenth is a joyous celebration of emancipation from enslavement, it also serves as a solemn reminder that words alone cannot deliver on the promises of freedom, individual rights, and equal justice for all. It is a reminder that, although our nation has come a long way from our history of state-sanctioned slavery and segregation, our work remains unfinished.
“It would be another century before the civil rights movement – in the second wave of Reconstruction – resulted in passage of the Civil Rights Act of 1964. That long overdue legislation was the result of courageous citizens who spoke out against injustice, made their voices heard, and propelled our nation toward a more complete embrace of freedom and equality.
“In the decades since 1964, the Civil Rights Division has served on the front lines of enforcing laws against racial injustice and deprivations of individual rights. It has been steadfast in its commitment to vindicating the rights of individuals who have suffered discrimination and holding perpetrators accountable for the violations they commit.
“This year, Juneteenth affords us an opportunity for somber reflection on our past and future as we continue to work for the realization of the promise of equal rights under the law for all African Americans, so celebrated at the first Juneteenth. The Civil Rights Division will continue to vigorously enforce the laws that protect the rights, lives, and freedoms guaranteed to all individuals under the law.
“Yet, Juneteenth also serves as a reminder of the grief and anguish our nation has experienced over the lives lost and the dreams destroyed by acts of racially-motived violence, abuses of power, and injustice.
“Just five years ago, as Juneteenth approached, our nation was reeling from the horrific act of racial violence that took the lives of nine worshippers at Mother Emmanuel AME Church in Charleston, South Carolina on June 17, 2015. The Department of Justice convicted and obtained the ultimate penalty against the perpetrator.
“This Juneteenth, we recognize the progress our country has made, and the work that remains unfinished. We pledge to continue to deliver, to all Americans regardless of race, on the promises of freedom and equal justice under the law enshrined in the Constitution and laws of the United States.”
Janesville Felon Sentenced for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Deshawn Foreman, 24, Janesville, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 48 months in federal prison for possessing a firearm as a felon. This prison term will be followed by three years of supervised release.
On July 24, 2019, Foreman led Janesville police officers on a foot chase, during which he dropped a .45 caliber magazine. He was not apprehended that day, but on the following day, officers observed Foreman get in a car and drive towards the Town of Beloit, where he abandoned his vehicle and attempted to hide from officers for several hours in a wooded residential area. He was apprehended only after police officers found him pointing a .45 caliber Glock firearm at them.
At the time of this offense, Foreman was on state supervision for burglary.
In sentencing the defendant, Judge Conley noted that Foreman‘s offense was particularly serious and reflected a general disregard for his safety and that of the arresting officers. Judge Conley also considered the defendant’s significant criminal history for his age, and that prior terms of supervision and rehabilitation programs did not appear to create any discernable changes in the defendant’s behavior.
The charge against Foreman was the result of an investigation conducted by the Janesville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 15 was:
Terry Lee Wells, Jr., 34, of Havre, on charges of prohibited person in possession of a firearm and possession with intent to distribute methamphetamine. If convicted of the most serious crime, Wells faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Wells was detained pending further proceedings. The FBI, Great Falls Police Department, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and Tri-Agency Drug Task Force investigated the case. Pacer case reference. 20-36.
Randal James Whitford, 37, of Box Elder, on charges of possession with intent to distribute meth and conspiracy to possess with intent to distribute meth. If convicted of the most serious crime, Whitford faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Whitford was detained pending further proceedings. The FBI, Tri-Agency Drug Task Force and Chippewa Cree Law Enforcement Services investigated the case. Pacer case reference. 20-37.
Appearing on June 18 was:
Kyle Frank Russette, 25, of Box Elder, on charges of possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Russette faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Russette was detained pending further proceedings. The FBI and Chippewa Cree Law Enforcement Services investigated the case. Pacer case reference. 20-29.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Independence Man Sentenced to 17 Years in Prison for Illegal Firearm Used to Shoot His GirlfriendRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man was sentenced in federal court today for illegally possessing a firearm that he used to shoot his girlfriend.
William C. McGee, 45, was sentenced by U.S. Chief District Judge Beth Phillips to 17 years in federal prison without parole. McGee was sentenced as an armed career criminal due to his prior felony convictions.
On April 4, 2019, McGee was found guilty at trial of being a felon in possession of a firearm.
Police officers were called to the Great Western Motel in Independence on June 13, 2018, in response to a report from a motel guest who heard gunshots. The caller also told police that the suspected shooter was in a green Toyota Camry, last seen traveling west on 24 Highway.
Officers located the green Toyota Camry in a nearby driveway. McGee was standing beside the vehicle. When he saw the police officers, McGee reached behind his back, pulled out a black Hi-Point 9mm handgun, and threw it over the vehicle. McGee, who had an active arrest warrant for domestic assault, was placed under arrest. The firearm was loaded with one round of 9mm ammunition.
McGee’s girlfriend, who was standing beside him, told officers that McGee had shot her outside their camper home, which was parked at that location, and she had a gunshot wound to her buttocks. Located in the camper were multiple rounds of 9mm ammunition – the same brand of ammunition as found in the firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McGee has three prior felony convictions for delivery of a controlled substance and prior felony convictions for distributing a controlled substance, possessing a controlled substance, and carrying a concealed weapon.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Independence, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Hattiesburg Drug Traffickers Get Significant Sentences in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss – Justin Williams, 30, of Hattiesburg, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to 84 months in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Homeland Security Investigations in New Orleans.
Williams’ co-defendant, Rodney Renchie, 31, also of Hattiesburg, was sentenced by Judge Starrett last week, on June 11, 2020 to serve 240 months in federal prison, followed by five years of supervised release. Both defendants were also ordered to pay a $5,000 fine.
“These individuals put kids, families, neighbors and entire communities at a significant risk of harm by slinging this poison throughout the Hattiesburg area. I applaud our HSI agents and our federal prosecutors for taking these criminals off our streets, as their hard work has literally saved people’s lives,” said U.S. Attorney Hurst.
“These sentences reflect the seriousness of the charges and the danger this drug poses to our communities,” said Jere T. Miles, Special Agent in Charge of HSI New Orleans. “It is also a gratifying outcome for the diligent work our special agents and law enforcement partners put into keeping our neighborhoods and community members safe.”
On June 19, 2019, HSI agents discovered that Renchie and Williams had sold 1.7 kilograms of methamphetamine, commonly known as “ICE,” to individuals in the parking lot of a hotel on Hardy Street in Hattiesburg. When HSI agents arrived to arrest Renchie and Williams, Renchie attempted to flee in his vehicle, but backed into another car in the parking lot. Williams attempted to flee on foot and threw a bag containing methamphetamine as he ran from agents. Williams was apprehended a short time later.
On July 10, 2019, Williams and Renchie were charged in a federal criminal indictment with conspiracy to possess with intent to distribute methamphetamine. Williams pled guilty before Judge Starrett on October 3, 2019, and Renchie pled guilty on December 5, 2019.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Shundral H. Cole.
Greensburg Medical Lab Owner Pleads Guilty in $1.6M Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
William J. Hughes, 73, pleaded guilty to one count of conspiracy to defraud the United States before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Hughes owned and operated Universal Oral Fluid Labs (UOFL), a clinical drug testing laboratory located in Greensburg, Pennsylvania. From October 2011 to August 2013, Hughes, through his lab UOFL, entered into kickbacks-for-referrals arrangement with the co-defendant. Pursuant to this arrangement, Hughes agreed to pay the co-defendant to refer patients, including patients who were covered under the Medicare Program and Kentucky Medicaid Program, to UOFL for drug testing services in exchange for cash payments. Between September 2012 and August 2013, UOFL obtained $1,672,422.84 from the Kentucky Medicaid Program based on these referrals.
Judge Cercone scheduled sentencing for November 9, 2020 at 1:00 p.m. The law provides for a total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rachael L. Mamula is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Hughes.
Former Yellowstone Partners’ CEO Sentenced to 5 Years in PrisonRead the Press Release
POCATELLO – David Hansen, 49, of Idaho Falls, was sentenced to 60 months in prison for wire fraud, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also imposed a term of three years of supervised release to follow Hansen’s prison sentence. The Court will determine what amount Hansen must pay in restitution at a hearing scheduled for June 26, 2020.
According to court records, Hansen was the Chief Executive Officer and a 90-percent partner in Yellowstone Partners, LLC, an investment management firm headquartered in Idaho Falls. Clients of Yellowstone Partners entrusted their monies to Yellowstone Partners to invest and manage on their behalf. In exchange, Yellowstone Partners earned fees for its services. Yellowstone Partners’ fees were set forth in investment agreements between Yellowstone Partners and its clients. Yellowstone Partners’ clients’ monies were kept in accounts at third party custodians. Yellowstone Partners directed how the monies in client accounts were invested and how they were disbursed. This included submitting email billing requests to the third party custodians to take fees from client accounts and to deposit them into Yellowstone Partners’ own accounts.
According to court records, from 2008 through April 2016, Hansen knowingly and intentionally devised a scheme to defraud clients of Yellowstone Partners by overbilling their investment accounts. Specifically, Hansen fraudulently billed clients for fees to which Yellowstone Partners was not entitled under the terms of the investment agreements or otherwise. Through this overbilling scheme, Hansen fraudulently obtained client funds from a third party custodian and used them to enrich himself and to fund Yellowstone Partners’ operations. For certain identified victims, Hansen personally submitted 51 fraudulent overbilling requests, which resulted in a loss of $2,675,856.
As part of the plea agreement, Hansen agreed to pay full restitution to the victims of the wire fraud scheme, in an amount to be determined by the court at the June 26, 2020 hearing. Further, Hansen agreed to a forfeiture judgment in the amount of restitution ordered by the court. Finally, Hansen agreed to cooperate with an Internal Revenue Service civil tax examination and assessment, and pay any unpaid tax due and owing, and accrued interest for his 2012 and 2013 Form 1040 joint income tax returns.
“This significant sentence sends a strong message to any investment manager who might consider taking advantage of the trust their clients place in them,” said U.S. Attorney Davis. “When an investment manager like Mr. Hansen steals from his clients, this office and our law enforcement partners will leave no stone unturned until justice is done and victims are repaid. I commend the FBI and IRS for their thorough investigation and tireless efforts in this case.”
“Mr. Hansen was greedy; defrauding his clients so that he could fund a lavish lifestyle,” said Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office. “This case highlights the FBI’s commitment to aggressively investigating fraudsters who abuse the trust of their clients. We value the relationships we have with our law enforcement partners and agencies, including the U.S. Securities and Exchange Commission. The SEC referred the case to us, allowing us to pursue some measure of justice for Hansen’s victims.”
“David Hansen will now reap the rewards of his fraudulent activities by going to prison,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “This sentence reflects the serious repercussions of abusing one’s position of trust to defraud investors and the government for personal gain.”
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation Division.
# # #
Former Norfolk Doctor Sentenced for Role in Internet Pharmacy OrganizationRead the Press Release
A former Norfolk physician has been sentenced for his role in a long-running Internet pharmacy operation, the Department of Justice announced.
U.S. District Judge Robert G. Doumar sentenced Lawrence B. Ryan, 48, to 10 months’ incarceration and ordered him to forfeit $316,153, which constitutes the proceeds from the offense. Ryan pleaded guilty in January to conspiracy to distribute controlled substances and to introduce misbranded drugs into interstate commerce.
As part of his guilty plea, Ryan admitted that from October 2007 to September 2010, he approved more than 158,000 online drug orders for RX Limited, an international Internet pharmacy organization that sold prescription drugs without valid prescriptions to consumers in the United States. Ryan admitted that the drugs included Fioricet (which contains butalbital, a barbiturate that is a controlled substance), carisoprodol (Soma), and tramadol (Ultram). RX Limited sent Ryan drug orders for approval as a participating physician. These drugs were sold to customers without a valid prescription, because there was no legitimate doctor-patient relationship between Ryan and the customers. Specifically, there was no face-to-face contact, no physical examination, no taking of patient histories, and no checking of the accuracy of information provided by the customers, including qualifying medical conditions. The drugs sold were therefore mis-branded because they were introduced into interstate commerce without valid prescriptions.
“The Department of Justice has long been committed to protecting consumers from those who unlawfully sell potentially harmful and addictive drugs to American consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Ordering drugs on the Internet in the absence of a valid doctor-patient relationship is risky to consumers and can lead to impairment and addiction.”
Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Alan M. Salsbury of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case. The Drug Enforcement Administration’s Minnesota office investigated the case, with assistance from the Internal Revenue Service and the Food and Drug Administration’s Office of Criminal Investigations.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Virginia, visit https://www.justice.gov/usao-edva.
Former Cressona Borough Treasurer Indicted for Tax EvasionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Erin Hossler, age 50, of Pottsville, Pennsylvania, the former treasurer for Cressona Borough, Schuylkill County, was indicted on June 17, 2020, by a federal grand jury on three counts of tax evasion for 2015, 2016, and 2017 and 12 counts of failure to account for and pay over employment tax.
According to United States Attorney David J. Freed, the indictment alleges that Hossler took hundreds of thousands of dollars between 2015 and 2018 from the Borough of Cressona, where she used to work as the Secretary/Treasurer. It is alleged that Hossler had numerous checks issued to herself, forged signatures on checks, and used online banking for the borough’s bank accounts to pay her personal bills. The indictment further alleges that Hossler concealed her activities by altering federal records, withholding payment of federal employment taxes for Cressona Borough employees, and altering an audit from an independent accounting firm to make it appear that the firm approved of the borough’s finances.
The case was investigated by the Pennsylvania State Police and the IRS. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of these offenses is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Former City of Atlanta Commissioner of Watershed Management indicted for allegedly accepting bribes from contractor Jeff JafariRead the Press Release
ATLANTA – Former City of Atlanta Commissioner of the Department of Watershed Management Jo Ann Macrina has been charged with conspiratorial bribery, bribery, and tax evasion in connection with money and other items of value that she accepted from City of Atlanta and DeKalb County contractor Lohrasb “Jeff” Jafari. In March 2019, Jafari was charged in a 51 count indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring. Jafari was separately charged with one additional count of bribery and tampering with a witness in connection with bribes he paid to Macrina.
“Macrina allegedly decided that accepting bribes from Jafari was more important than following the rules established for contracting by the City of Atlanta – and thereby betrayed the public’s trust,” said U.S. Attorney Byung J. “BJay” Pak. “In exchange for those bribe payments, Macrina manipulated the evaluation process to direct work to Jafari’s firm.”
“Circumventing the process to hire contractors for the city by accepting bribes to profit personally is the highest form of public corruption,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is extremely disturbing when the person alleged to have accepted bribes is the head of a department. Our public corruption squad is determined to hold those serving the public in positions of trust accountable.”
Macrina undermined the process of fair and open competition when she accepted bribes from a contractor in exchange for money and other things of value," said James Dorsey, Special Agent in Charge, IRS Criminal Investigation. "In addition, Macrina failed to report bribes and income on her income tax returns. The IRS is committed to aggressively investigating those individuals who engage in corruption. These actions demonstrate our collective efforts to enforce the law and ensure public trust.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From April 2011 through May 20, 2016, Macrina served as the Commissioner of the Department of Watershed Management for the City of Atlanta. PRAD Group, Inc. (“PRAD Group”) was an architectural, design, and construction management and services firm with its headquarters and primary place of business in Atlanta, Georgia. Jafari was the Executive Vice President of PRAD Group at that time. During Macrina’s tenure, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner.
From at least from 2014 through May 20, 2016, Macrina met with Jafari alone and with others, including Adam Smith, the former Chief Procurement Officer, to discuss City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was allegedly actively seeking contracts, projects, and work with the City of Atlanta. In July 2014, the City of Atlanta issued a request for proposal for architectural, engineering, and design services contract FC-7383. Vendors subsequently submitted proposals to earn an opportunity to be one of the firms to service this contract. By late 2014, evaluators chosen from various City departments met on several occasions to score the proposals. JP2, a joint venture led by PRAD Group, scored at the bottom of the rankings. Macrina and others then decided to conduct interviews with the proponent firms and reevaluate the proposals in an effort to alter the final scores. To ensure that certain firms were ultimately selected, Macrina replaced two evaluators that previously represented the Department of Watershed Management with herself and another individual. In July 2015, JP2 was selected as one of six vendor firms for FC-7383. In January 2016, Macrina issued two notices to proceed to JP2 for work for the Department of Watershed Management. Task Order One was valued at over $9 million. Task Order Two was valued at over $2 million.
During this time, Macrina discussed potential employment with Jafari and allegedly accepted items of value from Jafari in exchange for or as a reward for providing Jafari with access to information and preferential treatment with respect to City of Atlanta projects. In particular, Macrina allegedly accepted $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, and landscaping work at her home from Jafari either directly or through an employee of PRAD. On May 20, 2016, Macrina’s employment ended with the City of Atlanta. Shortly thereafter, she began working for Jafari and PRAD Group. Between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments. She did not report any of these funds on her 2016 income tax return.
Also beginning at least in 2014 to January 2017, Jafari paid thousands of dollars in bribe payments to Adam Smith, the then-Chief Procurement Officer of the City of Atlanta. Jafari and Smith met at Atlanta-area restaurants where they discussed City business, among other things, and Jafari would generally pay Smith $1,000 in cash in the restaurant bathroom. Jafari similarly paid bribes to a local official in DeKalb County in April and August of 2014. In exchange for Jafari’s payments to Smith, Smith met with Jafari regularly and provided Jafari with information and counsel regarding the City of Atlanta’s procurement processes, among other information. When PRAD Group or a joint venture in which PRAD Group was a partner became a successful proponent on a City of Atlanta contract or Request for Proposal, Smith approved and submitted the award of those projects. Smith also approved task and/or purchase orders for those projects.
In February 2017, Jafari became aware of the Federal investigation into his payments to Smith, at which time he confronted Smith in an effort to intimidate and persuade Smith to provide false information to federal law enforcement about the payments, instructing Smith to deny taking bribe money from Jafari. Similarly, following the execution of a federal search warrant at PRAD’s offices in 2017, Jafari instructed a PRAD employee to lie to the FBI about gifts that she purchased for Macrina on Jafari’s instructions while she and Macrina were traveling abroad in the spring of 2016.
Between 2014 through 2016, Jafari also willfully failed to pay income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and allegedly used corporate funds for personal expenses, among other things, to avoid the assessment of income tax. In 2014, Jafari owed at least $150,000; in 2015, at least $300,000; and in 2017, at least $700,000 to the IRS. Jafari is additionally charged with numerous counts of money laundering for engaging in financial transactions with funds earned from City of Atlanta work he obtained while he was paying bribes to Adam Smith and Jo Ann Macrina.
On February 26, 2019, a grand jury returned an indictment against Jafari, 69, of Alpharetta, Georgia, on 51 federal charges, including conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring. On June 16, 2020, a grand jury again indicted him on these 51 charges in addition to two new charges relating to payments to Macrina. On June 16, 2020, the grand jury also returned an indictment against Macrina, 63, of Daytona Beach, Florida, on one count each of conspiratorial bribery, bribery, and tax evasion.
Members of the public are reminded that the indictments only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating these cases.
Assistant U.S. Attorneys Jill E. Steinberg, Deputy Chief of the Criminal Division, Jeffrey W. Davis, Chief of the Public Integrity Section, and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fayetteville Probationer Sentenced to 41 Months for Possession of a FirearmRead the Press Release
RALEIGH, N.C. – A Fayetteville man was sentenced today to 41 months in prison for unlawfully possessing a firearm.
According to court documents, on June 26, 2019, North Carolina Probation Officers, supported by the Bureau of Tobacco, Alcohol, Firearms, and Explosives Agents, conducted a probation search at Johnathan Muhammed Martinez’s residence, as part of a larger probation operation known as Operation Zero Hour II. In Martinez’s closet, authorities found a Mossberg Shotgun with a pistol grip. Martinez was serving a 24-month state probationary sentence for a Felony Hit and Run conviction after a drug deal went awry.
Despite numerous attempts by Martinez to have others claim the firearm, both during arrest and while in custody, Martinez pled guilty to his Indictment on March 11, 2020. Noting Martinez’s obstructive behavior and numerous violations of the trust placed in him by previous courts, U.S. District Judge James C. Dever, III sentenced Martinez to the top of the advisory sentencing guideline range. The Court deemed this sentence appropriate to promote respect for the law and deter others from committing similar crimes.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, in support of North Carolina Probation and Parole authorities, investigated the case and Assistant U.S. Attorney J.D. Koesters prosecuted the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00461-D.
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.
Doctor Sentenced to Prison for Illegal Distribution of Adderall, OxycodoneRead the Press Release
ALEXANDRIA, Va. – A Fairfax medical doctor was sentenced today to 10 years in prison and fined $30,000 for illegally diverting Adderall and oxycodone to six different patients, including a patient who suffered from opioid addiction and later died of a drug overdose.
“Doctors represent one of the key first lines of defense in thwarting the opioid crisis,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Though armed with a license to practice medicine, Dr. Gurpreet Singh Bajwa discarded his fundamental oath—first, do no harm— by engaging in criminal conduct and in doing so exposing his patients to potentially grave consequences in the process. Dr. Bajwa defines what we commonly refer to as a “dirty doc,” and his prosecution and sentence should send a very clear message to any other medical practitioners contemplating risking patient lives out of greed that you will face swift and certain consequences for your nefarious, unethical, and criminal conduct.”
As part of his sentence, Bajwa will be prohibited from practicing medicine for three years after he is released from prison. The doctor had previously surrendered his medical license in May 2019.
"Physicians who put their own greed above the health and safety of their patients only inflame the ongoing opioid epidemic," said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office's Criminal Division. "The FBI and our partners will continue to combat the illegal actions of trusted medical professionals who over-prescribe these highly addictive drugs to the detriment of their patients."
According to court documents, Dr. Bajwa, 49, temporarily lost his medical license in 2012 following an investigation by the Virginia Department of Health Professions (DHP) into his prescription practices. After his license was reinstated, he significantly reduced the quantity of pain medications he prescribed, and switched over to stimulants, benzodiazepines, and sedatives.
Generally, at no point during any of his patients’ visits did Bajwa or any of his staff receive, review, or request prior medical files; obtain medical histories; conduct physical examinations; discuss the cause of any attention disorder or what might properly address such a condition; discuss any alternatives to treatment; or obtain and analyze urine samples to ensure his patients were taking their medications as directed.
Beginning in summer 2018, two undercover law enforcement officers posed as patients and made appointments to see Bajwa. At each visit, Bajwa prescribed the undercover officers a 30 day supply of Adderall—despite the undercover officers showing up to two weeks prior to the end of the previous 30 day period. One of the officers told Bajwa that she was a fitness model and needed Adderall for her workouts, which is not a legitimate use for the substance. The undercover officer also asked Bajwa to prescribe her extra pills that she could give to a “friend” and he readily agreed.
One of the patients to whom Bajwa prescribed significant quantities of prescription drugs had a history of high blood pressure, among other health conditions. Nevertheless, Bajwa wrote her monthly prescriptions for the maximum dose of Adderall, a schedule II stimulant.
In 2016, the CDC and the FDA issued warnings cautioning against prescribing opioids and benzodiazepines (including Xanax) together because of the increased risk of fatal overdose. Nevertheless, on multiple occasions, Bajwa wrote prescriptions to patients for both oxycodone—a powerful Schedule II opioid—and Xanax.
One of Bajwa’s patients, N.J., suffered from heroin addiction. N.J.’s mother told Bajwa two or three times that N.J. was abusing drugs, and yet Bajwa continued to prescribe controlled substances to N.J. In November 2017, Bajwa prescribed both oxycodone and Xanax to N.J., despite knowing of N.J.’s drug addiction, and despite the increased danger of combining the two medications. In January 2018, N.J. was dismissed from a rehabilitation program after he was caught abusing drugs Bajwa prescribed him. N.J. died of a drug overdose a short time later.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Knuckle Ball. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-60.
Department of Justice announces launch of civil rights reporting websiteRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the launch of the Civil Rights Reporting Portal for the Department of Justice. This new online tool will make it easier for the public to report a civil rights violation.
“Our office recently asked anyone who has witnessed or experienced harassment or discrimination as a result of the COVID-19 pandemic to report such allegations to the Civil Rights Coordinator in my office, or to the Department of Justice Civil Rights Division.” said Minkler. “Even though reports can still be received in this manner, I encourage the public to utilize the user-friendly Civil Rights Portal to report any civil rights violations.”
The new Civil Rights Reporting Portal – located at civilrights.justice.gov - will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting civilrights.justice.gov
When appropriate, the Civil Rights Division staff will refer complainants to other agencies that are responsible for handling specific types of complaints.
Remember that besides the new portal, individuals who believe they are a victim of a civil rights violation can still call the U.S. Attorney’s Office Civil Rights Coordinator, Jeffrey D. Preston, at 317-226-6333, or the Department of Justice Civil Rights Division in Washington D.C. at 855-856-1247 (toll free) or 202-514-3827. Individuals who believe they are the victim of a criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
Denver CPA Sentenced for Conspiracy to Defraud Xcel Energy and the IRSRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Stephen Yobst, age 64, of Denver, Colorado was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 27 months in federal prison followed by 3 years of supervised release for wire fraud, conspiracy to defraud the United States, filing false tax returns and theft of government funds. Yobst was also ordered to pay restitution totaling $1,167,273.42, with $806,216 going to Xcel Energy and $361,057.42 going to the Internal Revenue Service.
According to the information and plea agreement, in 2005, Yobst was employed by Xcel Energy with the title of “Category Manager, Sourcing and Purchasing”. Yobst’s co-conspirator, James Brittain, incorporated a company called Pacific Exchange Group, Inc. (PEG) in Colorado in March 2005. On March 18, 2005, Yobst opened a Vectra Bank account representing himself as the “President” of PEG. Brittain was added as an authorized signatory in November 2005. In December 2006, PEG entered into a Master Exchange Agreement (MEA) contract with Xcel designed to allow Xcel to postpone paying taxes on gains from the sale of certain assets if the sales were reinvested in similar property as permitted by the Internal Revenue Code.
Yobst participated in the MEA contract negotiations as an officer on behalf of Xcel while Brittain represented PEG. As part of the agreement, Xcel would deposit the proceeds from disposing Xcel’s transformers and fleet vehicles and hold the funds until directed by Xcel to distribute them for the purchase of replacement assets. Xcel agreed to pay PEG 5% commission on the sale price for vehicles and a 12% commission for transformers. Additionally, with Xcel’s prior approval, PEG could be reimbursed for out-of-pocket expenses for “professional legal and tax services and other expenses”.
Beginning in 2005 and continuing through approximately May 14, 2015, Yobst and Brittain worked together to divert, use and convert funds for their own personal benefit without Xcel’s authorization. The diversion of funds included withdrawals from the PEG account to a Scottrade Account for $400,000, which were used by Yobst and Brittain to conduct stock transactions and other investment activities; $363,966 in payments to American Express for Yobst’s personal expenditures; and Yobst wiring $42,250 to an automotive dealer to purchase a 2011 Honda Pilot.
Yobst and Brittain purposely concealed Yobst’s involvement in PEG and failed to provide Xcel with a detailed accounting of the exchange funds deposited or copies of PEG’s Vectra Bank account statements. Xcel filed a civil suit in September 2014 seeking an accounting of all exchange funds in the PEG bank account and the return of unspent funds. Brittain and Yobst provided false and misleading information in connection with the litigation.
Additionally, between March 2011 and October 2014, acting as PEG’s accountant, Yobst transferred $10,500 monthly from the PEG bank account to an account Yobst personally controlled. Yobst mischaracterized the transfers as “ACH Offsets” to an entity labelled “Havfund” when in fact they were personal income payments from PEG to Yobst. Also, during this time, Yobst used a PEG American Express credit card for personal expenditures, including golf supplies, leisure travel, cigars, and other items. Finally, in 2015, Yobst obtained accumulated disbursements totaling $1,324,644. Yobst filed personal federal income tax returns which did not reflect the PEG income or taxes due for these disbursements.
“The defendant not only created and operated a complex scheme to steal from his employer, he stole from all of us as taxpayers,” said U.S. Attorney Jason Dunn. “Thanks to the great work of IRS - Criminal Investigation, the FBI, and the team in my office, he’s going to have time in a federal prison to think about his conduct.”
“IRS Criminal Investigation’s primary focus is the nation’s tax laws, however schemes like this not only involve our primary mission but also allows us to focus our abilities to unravel complex financial schemes,” said Andy Tsui, Special Agent in Charge, IRS CI Denver Field Office. “Our agents are uniquely qualified to follow the money in cases such as this because the victims are not only the taxpayers, but also individuals and entities who suffer the financial harm.”
“Today's sentencing of Stephen Yobst illustrates the FBI's commitment to identify and arrest anyone who participates in defrauding corporate and government institutions,” said FBI Denver Special Agent in Charge Michael Schneider. “Yobst’s sentencing comes as a result of the dedicated and tireless efforts of agents, analysts, and prosecutors committed to holding those accountable who deliberately compromise the integrity of their position for personal gain.”
Brittain was sentenced on June 21, 2019, to serve 12 months and 1 day in prison followed by 3 years of supervised release for wire fraud, aiding and abetting, and conspiracy to defraud the United States. Brittain was also ordered to pay restitution to Great American Insurance Company in the amount of $806,216 and to the Internal Revenue Service in the amount of $215,094.
Yobst pled guilty on September 3, 2019 to an information filed on June 26, 2019. He was sentenced on June 15, 2020.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Tim Neff.
Dallas Doctor Pleads Guilty to Prescription Drug Diversion Scheme on ElderlyRead the Press Release
A Dallas doctor has pleaded guilty to a felony for prescription drug diversion crimes perpetrated on elderly victims, announced U.S. Attorney Erin Nealy Cox.
Dr. Edward Agura, 63 pleaded guilty before U.S. Magistrate Judge Renee H. Toliver on Tuesday for possession of a controlled substance by misrepresentation or fraud.
“Elder abuse by anyone, particularly by health professionals, is deeply disturbing,” said U.S. Attorney Erin Nealy Cox. “Those who exploit the elderly and perpetrate crimes on our seniors will be held accountable for their criminal actions. Importantly, the Department of Justice recently observed World Elder Abuse Awareness Day and we reconfirmed our commitment to rooting out fraud that preys on the elderly.”
“Using one’s trusted status as a medical professional for unlawful acts cannot go unpunished,” stated Eduardo A. Chavez, Special Agent in Charge of the D.E.A. Dallas Field Division. “The Dallas D.E.A. will always seek justice against those who take advantage of unsuspecting individuals, especially the elderly, to fuel their drug addiction through fraudulent means.”
Beginning in May 2016, Dr. Agura admitted to issuing prescriptions in the names of elderly victims without their knowledge or consent. The controlled substances were for his own personal use.
According to court documents, Dr. Agura issued fraudulent prescriptions for Hydrocodone, Fentanyl, Oxycodone, Alprazolam, Triazolam, and Lorazepam were dispensed to himself at Dallas area pharmacies under the guise he was obtaining them for elderly patients.
To further perpetuate the fraud, Dr. Agura admitted to creating phony medical records in the names of the elderly victims. While Dr. Agura did personally know each victim, the victims were not patients and had not sought medical treatment for the prescriptions that he issued in their name. Dr. Agura admitted obtaining the unlawful prescriptions to utilize for his personal consumption.
Dr. Agura faces up to four years in federal prison for the felony conviction. A sentencing date has been set for October 8th.
This case was investigated by the Drug Enforcement Administration, Dallas Division. Assistant U.S. Attorney Donna Strittmatter Max is prosecuting the case.
DOJ Files Lawsuit Against Stafford County over Blocking of Islamic CemeteryRead the Press Release
ALEXANDRIA, Va. – The Justice Department today announced that it has filed a lawsuit alleging that Stafford County violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by enacting overly restrictive zoning regulations prohibiting an Islamic organization from developing a religious cemetery on land it had purchased for that purpose.
“Honoring and burying the dead is a sacred religious act for many faith traditions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The complaint that was filed in this case demonstrates this office’s commitment to ensuring that those of all faiths are not substantially burdened by improper local government actions in practicing their religious rituals.”
The complaint, filed in the Eastern District of Virginia, alleges that the County passed an ordinance in 2016 that blocked the All Muslim Association of America from developing an Islamic cemetery on a 29-acre parcel of land that it owns. When the Association bought the property, it complied with all of the state and local requirements for use as a cemetery. But after learning of the Association’s plans, the County amended its ordinance to require that cemeteries be no closer than 900 feet from private wells and certain types of streams, thus preventing the Association from using its property as a cemetery. The United States’ complaint alleges that this requirement is far more restrictive than the Virginia Department of Health’s 100-foot distancing standard, has no legitimate health justification, imposes a substantial burden on the Association’s religious exercise, and is not narrowly tailored to achieve a compelling governmental interest.
“The United States of America must and will remain a nation committed to the right of all people to practice their faith free from unjustified governmental restrictions. Indeed, this nation exists to provide sanctuary to people seeking the religious freedom that is too often denied in other parts of the world, and the Department of Justice is committed to protecting the fundamental right of people of all faiths to practice their religion free from illegal governmental interference,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “That right protects the freedom of faith communities to use their land for religious purposes, including for cemeteries, houses of worship, and religious schools.”
The complaint seeks injunctive relief, including a court order that the County allow the Association to build its cemetery in conformity with the prior ordinance.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Colorado Tax Evader Pleads Guilty to Fleeing to Avoid Serving Five Year Prison SentenceRead the Press Release
A Colorado tax defier pleaded guilty yesterday to failing to surrender to serve his prison sentence for tax evasion and illegal possession of a firearm, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Birk was convicted by a jury in July 2019 of tax evasion. According to court documents and evidence presented at trial, Birk founded a sole proprietorship, Tarryall River Log Homes LLC, which sold and built log homes. Although the company was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, Birk hired a tax firm to prepare eight years’ worth of delinquent tax returns, but concealed from the firm $400,000 of retirement distributions. Even after filing returns, Birk still did not pay what the returns acknowledged he owed in taxes. Instead, he sent the IRS threatening correspondence and sought to impede its efforts to seize money from his bank accounts. He did not file returns or make any tax payments for 2006 through 2018.
Based on this conduct, on Oct. 30, 2019, U.S. District Judge Robert E. Blackburn sentenced Birk to 60 months in prison, to serve three years of supervised release, and to pay restitution to the IRS in the amount of $1,858,826.
According to court documents and statements made in court, Birk was ordered to report to prison in November 2019 to serve his sentence. Instead, he fled Colorado with a fully automatic assault rifle, two pistols, over a dozen loaded magazines, hundreds of additional rounds of ammunition, ballistic helmets, ballistic vests, and gas masks. Birk remained a fugitive until he was caught and arrested in Florida in January 2020 and has been in custody ever since.
Judge Blackburn scheduled sentencing for Sept. 10, 2020. At sentencing, Birk faces a maximum sentence of five years’ imprisonment for his failure to appear, and ten years’ imprisonment for possession of a firearm after being convicted of a felony, in addition to the 60 month term of imprisonment previously imposed.
Principal Deputy Assistant Attorney General Zuckerman commended the IRS special agents and U.S. Marshals Service who conducted the investigation, as well as Department of Justice Trial Attorneys Elizabeth C. Hadden and Christopher Magnani, who are prosecuting the case.
Colorado Couple Charged with Theft of Mail Containing Tax Return and Stimulus ChecksRead the Press Release
LITTLE ROCK— A man and woman from Colorado have been charged with possession of a stolen postal key and theft of mail, some of which contained a tax return check and a federal stimulus check intended for financial relief during the Covid-19 pandemic. David Alan Gilmore, 31, and Kathleen Lucille Johnson, 40, appeared for arraignment in federal court today before United States Magistrate Judge Jerome T. Kearney.
A complaint filed late Thursday alleges that on June 17, 2020, the Arkansas Highway Police in Conway initiated a traffic stop on a car that was displaying a stolen Colorado license plate. During the traffic stop, with assistance from Conway Police, officers located several bags full of mail, none of which was addressed to either Gilmore or Johnson. That mail contained six personal checks, one tax refund check, and one stimulus check.
In addition to the stolen mail, officers found 13 credit and debit cards in the vehicle, none of which were in the name of either Gilmore or Johnson. Officers also found a United States Postal Service key, which is used by postal carriers to open collection boxes, apartment delivery boxes, and neighborhood delivery collection box units.
The penalty for possessing a stolen postal key is not more than 10 years imprisonment, and the penalty for theft of mail is not more than 5 years imprisonment. Both crimes carry a fine of up to $250,000 and not more than three years of supervised release. The investigation is being conducted by the United States Postal Inspection Service.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Clarksville Man Sentenced to Five Years in Prison for Meth He Attempted to BurnRead the Press Release
A man who attempted to destroy methamphetamine by burning it was sentenced June 18, 2020, to five years in federal prison.
Drew Johnson, age 38, from Clarksville, Iowa, received the prison term after a January 8, 2020 guilty plea to aiding and abetting the possession with intent to distribute a controlled substance.
In a plea agreement, Johnson admitted that in February 2019 he was in possession of methamphetamine when officers arrived at his home to search it. Johnson, who was outside at the time, admitted running in to the house and throwing the methamphetamine in a wood burning stove and then fighting with officers. Johnson has an extensive criminal history, including two prior convictions for domestic assault and multiple theft convictions.
Johnson was sentenced in Sioux City, Iowa by United States District Court Chief Judge Leonard T. Strand. Johnson was sentenced to 60 months’ imprisonment. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system.
Johnson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Clarksville Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-3032.
Follow us on Twitter @USAO_NDIA.
Cedar Grove Man Sentenced to Federal Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – A Cedar Grove man was sentenced to prison for a federal child pornography crime, announced United States Attorney Mike Stuart. Benjamin Franklin Thomas, 32, was sentenced to 60 months in prison for possession of child pornography. He also is required to register as a sex offender and to complete 15 years of federal supervised release. The federal prison sentence will run consecutive to a three to 30-year state sentence that Thomas currently is serving for breaking and entering into Cedar Grove Elementary School and Ward Church of God.
“Reprehensible,” said United States Attorney Mike Stuart. “Child porn is a disgusting offense that, sadly, is a frequent crime prosecuted by my office. My highest priority is protecting our kids. These crimes are some of the most troubling crimes committed in society. I commend the very important work done by the law enforcement agencies that investigate these crimes.”
Thomas previously admitted that he used his smartphone to search for images of child pornography on the internet, download the images, and save them to his Google Photos while residing in Cedar Grove in Kanawha County. Images possessed by Thomas in his collection of child pornography included prepubescent minors and images depicting sadistic or masochistic conduct and sexual exploitation of very young children.
The South Charleston Police Department, the Cedar Grove Police Department, the United States Secret Service and the West Virginia State Police Internet Crimes Against Children Task Force conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Kristin F. Scott handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Buffalo Man Accused of Selling Drugs That Led to A Fatal and Two Non-Fatal OverdosesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 14-count superseding indictment charging Kalijah Long, 36, of Buffalo, NY, with possession with intent to distribute, and distribution of, a controlled substance causing death and causing serious bodily injury, possession with intent to distribute, and distribution of, fentanyl and cocaine, possession with intent to distribute crack cocaine and fentanyl, maintaining a drug involved premises, possession of a firearm in furtherance of drug trafficking, and being a felon in possession of a firearm and ammunition. The charges carry a maximum penalty of life in prison.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Michael J. Adler, who are handling the case, stated that according to the superseding indictment, between August 1 and September 19, 2019, the Drug Enforcement Administration conducted six controlled purchases of fentanyl and cocaine from the defendant. During the course of the investigation, the DEA learned that Long distributed fentanyl to an individual identified as D.H. that led to his death. It is also alleged that the defendant distributed narcotics that led to the non-fatal overdoses of individuals identified as R.M. and G.A.
In late September 2019, investigators executed a search warrant at Long’s residence and his vehicle. Inside his residence, they recovered narcotics paraphernalia and ammunition, including .380 caliber ammunition. Inside the defendant’s vehicle, investigators recovered a loaded .380 caliber handgun along with a bag containing 17.5 grams of fentanyl and 9.2 grams of crack cocaine.
The superseding indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the West Seneca Police Department, under the direction of Chief Daniel Denz.
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.
# # # #
Attorney General William P. Barr on the Nomination of Jay Clayton to Serve as U.S. Attorney for the Southern District of New YorkRead the Press Release
Attorney General William P. Barr has released the following statement:
“I am pleased to announce that President Trump intends to nominate Jay Clayton, currently the Chairman of the Securities and Exchange Commission, to serve as the next United States Attorney for the Southern District of New York. For the past three years, Jay has been an extraordinarily successful SEC Chairman, overseeing efforts to modernize regulation of the capital markets, protect Main Street investors, enhance American competitiveness, and address challenges ranging from cybersecurity issues to the COVID-19 pandemic. His management experience and expertise in financial regulation give him an ideal background to lead the United States Attorney’s Office for the Southern District of New York, and he will be a worthy successor to the many historic figures who have held that post. On behalf of the President, I thank Jay for accepting this nomination, and I look forward to working with him soon.
On my recommendation, the President has appointed Craig Carpenito, currently the United States Attorney for the District of New Jersey, to serve as the Acting United States Attorney for the Southern District of New York, while the Senate is considering Jay Clayton’s nomination. This appointment will be effective July 3, and Craig will work closely with the outgoing United States Attorney to ensure a smooth transition. I thank Craig for his continued service and for taking on this important interim responsibility.
Finally, I thank Geoffrey Berman, who is stepping down after two-and-a-half years of service as United States Attorney for the Southern District of New York. With tenacity and savvy, Geoff has done an excellent job leading one of our nation’s most significant U.S. Attorney’s Offices, achieving many successes on consequential civil and criminal matters. I appreciate his service to the Department of Justice and our nation, and I wish him well in the future.”
Arcadia Woman Arrested on Complaint Alleging She Swindled Investors of Coachella Hotel Complex Out of More Than $20 MillionRead the Press Release
LOS ANGELES – A San Gabriel Valley woman was arrested this morning on a criminal complaint alleging she fraudulently solicited $21.6 million in funds for a condominium and hotel complex in the Coachella Valley, then spent a significant portion of her victims’ money on her own lavish living expenses, including luxury cars, travel, and designer clothing.
Ruixue “Serena” Shi, 36, of Arcadia, was taken into custody by special agents of the FBI. She has been charged with one count of wire fraud and is expected to make her initial appearance this afternoon in United States District Court.
According to an affidavit filed with the complaint filed Wednesday and unsealed today, between November 2015 and July 2018, Shi solicited investments for the Hyde Resorts and Residences Coachella Valley. Hyde Resorts was to be a 207-unit luxury condominium and hotel complex that was supposed to have a total of 95,000 square feet of on-site conference facilities, a pool, spa, fitness center and other amenities.
Shi was the president and owner of Global House Buyer (GHB), a China-based real estate development company, and also was CEO of the Beverly Hills-based company Hyde Morgan Development, LLC, the affidavit states. The Hyde complex was to be developed by GHB while Hyde Morgan solicited investments.
Shi contacted prospective investors in the Hyde complex – who mostly were based in China – through sales presentations she gave at hotels, radio advertisements, and through the solicitation of investments over forums on WeChat, a Chinese messaging, social media, and mobile payment application, according to the affidavit.
Among the false representations Shi allegedly made to her victims to induce them to invest was that the Hyde development was scheduled to begin construction in 2017. Investors were told they would be purchasing condos ranging in price from $400,000 to $700,000, according to the affidavit. Investors were required to pay 40 percent of the total purchase price upfront as a down payment, but Shi promised that GHB would help them finance the remaining balance with loans from U.S.-based banks when the project was completed.
Chinese investors in the Hyde project were falsely told that their investments with Shi would enable them to obtain visas through the EB-5 Immigrant Investor Program, the affidavit states. EB-5 is a federal program that allows foreign investors to secure a U.S. visa by investing a large sum of money to finance a business in the United States that employs American workers. One victim told law enforcement that Shi told her that Shi would procure a long-term visa for her through the EB-5 Program if she invested $500,000 in the Hyde project, the affidavit states.
Shi also allegedly told investors that GHB had purchased a 47-acre lot of land in Coachella Valley where the Hyde development was to be built. In reality, Shi purchased only 20 acres of that property, the affidavit states. Shi also falsely told investors that GHB had obtained the required city development approvals for the Hyde development, which included the re-zoning of the land she purportedly had purchased, when no such approvals had been given.
When some victim-investors began demanding refunds after hearing GHB no longer was in operation in the United States, Shi allegedly offered them partial refunds if they signed a contract purporting to prevent them from disclosing they had received the refund. She also allegedly sent investors phony photographs purporting to be of construction that was underway. In truth, GHB never began construction on the Hyde development and never purchased the entire plot of land where the development was to be built, the affidavit states.
Bank records allegedly show that Shi transferred the victims’ funds to her personal accounts and then misappropriated a significant portion of victims’ money for her own expenses. For example, she allegedly used $2.2 million of investor money to pay a company that provided luxury travel and concierge services, nearly $295,000 to purchase two Mercedes-Benz automobiles, and hundreds of thousands of dollars to buy clothes, restaurant meals, and hotel stays in Beverly Hills, France, Thailand and China.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Shi would face a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this matter.
This case is being prosecuted by Assistant United States Attorney Alexander C.K. Wyman of the Major Frauds Section.
Andover Woman Charged with Arson of St. Paul Car Rental AgencyRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint against JESSICA LYNN WHITE, 33, charging her with conspiracy to commit arson. WHITE, who was arrested on June, 16, 2020, made her initial appearance on June 17, 2020, before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis.
According to the allegations in the complaint, on May 28, 2020, an Enterprise Rent-A-Car building located in St. Paul, Minnesota, was completely destroyed due to fire. On June 3, 2020, investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the scene and determined that the fire was caused by arson and originated from within the structure. ATF investigators were able to identify WHITE and two other individuals captured on surveillance video footage from cameras located inside and outside of the business on the night of the arson. WHITE can be seen outside of the business, knocking on the front window and looking into the front door while the two other individuals are inside the building for several minutes. Shortly after the two individuals exit the building, the front lobby area is filled with smoke and fire can be seen flickering in the reflection of the front window of the building.
The ATF and FBI urge the public to report suspected arson, use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information specifically related to business fires in the Twin Cities can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com. In addition to fires, the FBI is looking for people who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALLFBI (800-225-5324) or visit tips.fbi.gov.
This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorney Bradley M. Endicott.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
JESSICA LYNN WHITE, 33
Andover, Minn.
Charges:
- Conspiracy to commit arson, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
3 Indicted for Conspiring to Distribute MethRead the Press Release
ERIE, Pa. – Three men have been indicted by a federal grand jury in Erie on a charge of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Dominique Marquise Levye, 31, of Los Angeles, California, Elvin Martinez-Montero, 25, of Indiana, Pennsylvania, and Abenego Rodriguez-Suriel, 29, of Erie, Pennsylvania, as defendants.
According to the Indictment presented to the court, from July 2019 to August 9, 2019, the defendants conspired to possess with intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine. The charges relate to the seizure of over 30 pounds of methamphetamine concealed within a car that had been transported on a car hauler from California and was seized in the parking lot of the Presque Isle Downs and Casino in Erie, Pennsylvania on August 9, 2019.
The law provides for a maximum total sentence of life imprisonment, a fine of $10,000,000, or both for each defendant. 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 defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Department of Homeland Security, Homeland Security Investigations 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.
25 Year Sentence for Local Man Involved in Multiple Armed CarjackingsRead the Press Release
MEMPHIS, TN – Isaiah Miller, 19, has been sentenced to 300 months in federal prison for participating in multiple carjackings and brandishing a firearm during crimes of violence. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court:
• On October 10, 2018, at about 9:45 p.m., two victims were walking to their vehicle on South Cooper Street in Memphis, Tennessee, when four males approached them. One suspect pointed a small black handgun and demanded their property. The suspect told them to "lie on the ground facedown." As one of the victims attempted to get down, one of the suspects punched him twice in the left jaw. The suspects took the victims’ wallets, cell phones, and the keys to the victims’ vehicle. They left in the 2013 Mazda headed northbound on Cooper. After notifying law enforcement about the crime, one of the victims positively identified Miller as one of the individuals who carjacked him. The victim said "Miller was the man who hit him in the face and told another man to shoot him."
• On October 11, 2018, at around 10:19 p.m., a victim was sitting in her silver Honda Civic charging her phone. She saw a group of five males approach her, point a gun at her, and demand that she get out of the vehicle. The victim exited the vehicle and one of the men snatched her cell phone from her hand. She asked if she could keep her purse from the car, and one man responded, "Hell naw." The males got into the Honda Civic and were last seen going west on Mynders Avenue. The victim positively identified Miller as the person responsible for the carjacking who brandished the weapon. Fingerprints belonging to Miller were found on the hood and passenger side rear door glass of the recovered vehicle.
• On October 13, 2018, a victim was pulling into the driveway of his girlfriend’s house on Venable Avenue when another vehicle blocked in their vehicle. Three males approached and demanded he exit the vehicle. The two men on the driver’s side of the vehicle both had firearms, one black and one silver. One of the suspects then pistol whipped the victim and pulled him out of the vehicle. The armed male then pointed the gun at the victim’s girlfriend and told her to get out of the vehicle. They took a phone and a gold ring from the victims. They then drove away from the scene in the victim’s Honda Accord. The victim positively identified Miller as the person who pulled her out of the vehicle.
• On October 17, 2018, at approximately 5:45 p.m., a victim was walking at Walker Avenue and Tanglewood toward his car after visiting friends. The victim was approached by three males armed with firearms who demanded that he give them his car keys, wallet, and cash. The victim initially did not comply, so one of the suspects hit him in the face and head with the firearm. The victim then gave the suspects his wallet and ran. The suspects were unable to find victim’s keys in his wallet so they fled from the scene. The victim positively identified Miller from a photo lineup as the suspect who demanded his keys and struck him in the face with the pistol.
• On Friday, October 19, 2018, Mt. Moriah task force officers were on enhanced patrol looking for a silver Honda Civic that had been seen driving recklessly through the area of South Perkins and Cottonwood. Law enforcement observed a silver Honda matching the description in the area and attempted to pull it over, but the driver refused to stop. Officers chased the vehicle to the Cedar Mills apartment complex, when all four males jumped out of the car and ran in different directions. Miller was apprehended after jumping from a balcony. Ultimately, Miller gave a statement to the police, admitting to at least one of the carjackings.
On June 18, 2020, U.S. District Court Judge Thomas L. Parker sentenced Miller to 300 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "In the short period of just one week, this young offender not only injured and terrorized multiple victims, but he also senselessly wasted his own life by committing successive violent gun crimes. There is a heavy price to pay for such violence and lawlessness, and Miller will now pay that price with 25 years in a federal prison. This case demonstrates our ability and intention to aggressively prosecute violent carjackings, no matter the age of the offender. Hopefully, it will also send a strong deterrent message to others to avoid throwing their lives away by senseless gun violence."
The Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Assistant U.S. Attorney Elizabeth Rogers and Special Assistant U.S. Attorney Samuel D. Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
###
22 Western PA Residents Indicted on Drug and Firearms Charges Associated with Violent South Pittsburgh Gang, Darccide-Smash44Read the Press Release
PITTSBURGH, PA – Twenty-two current and former residents of Western Pennsylvania have been indicted by a federal grand jury in Pittsburgh on charges of narcotics trafficking and firearms violations following an investigation into drug trafficking and violence in and around the South Side neighborhood of Pittsburgh, United States Attorney Scott W. Brady announced today.
"The drug and gun crime activity associated with local gangs threatens the safety of our law-abiding neighbors," said U.S. Attorney Brady. "My office will continue to make the identification and prosecution of these neighborhood thugs a priority until our communities are gang-free."
The Superseding Indictment, returned on June 15 and unsealed yesterday, names the following 22 individuals as defendants:
• Christopher Highsmith, 27, of Irwin, PA
• David Benson, 30, of Pittsburgh, PA
• Lamont Benton, 24, of McKees Rocks, PA
• Jarrell Dawson, 21, of Pittsburgh, PA
• Perry Freeman, 19, of Pittsburgh, PA
• Lequay Fuller, 23, of Pittsburgh, PA
• Dontae Gilbert, 19, of Pittsburgh, PA
• Brandon Green, 35, Pittsburgh, PA
• Anthony Jetter, 31, of Pittsburgh, PA
• Henry Johnson, 29, of Pittsburgh, PA
• Jonathan Laur, 26, of Pittsburgh, PA
• Trevon McCrary, 25, of Pittsburgh, PA
• Danasia McNeal, 22, of Pittsburgh, PA
• Willie Miller, 28, of Pittsburgh, PA
• Michael Norman, 27, of Venetia, PA
• Devonte Parker, 25, of Pittsburgh, PA
• Jaimone Robinson, 20, of Pittsburgh, PA
• Ronika Somerville, 23, of Pittsburgh, PA
• Theresa Somerville, 50, of Pittsburgh, PA
• Raelynn Stevenson, 30, of West Mifflin, PA
• Ronald Williams, 27, of Pittsburgh, PA
• Martel Yates, 31, of Pittsburgh, PA
The named conspirators include leaders, members, drug suppliers, and associates of a violent neighborhood gang known as Darccide-Smash44 ("DS44"), based out of the Knoxville, Arlington, and Mt. Oliver neighborhoods in the South Side. According to the Superseding Indictment, the defendants conspired to possess with intent to distribute and distribute over one kilogram of heroin, at least 400 grams of fentanyl, as well as quantities of several fentanyl analogs, cocaine, and cocaine base, commonly known as crack, from January 2018 through June 2019. The Superseding Indictment further alleges individual firearms charges and/or drug trafficking violations against defendants Benson, Gilbert, McCrary, Miller, Parker, Robinson, and Stevenson.
For all defendants, the law provides for a maximum total sentence of up to life imprisonment, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
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.
Assistant United States Attorneys Christy C. Wiegand and Brendan McKenna are prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.