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6 August 2020
Dominican National Pleads Guilty to Fentanyl Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that LUIS MIGUEL ROSARIO-PERALTA, 29, a citizen of the Dominican Republic last residing in Stamford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl.
According to court documents and statements made in court, the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Unit identified Rosario-Peralta as a large-scale fentanyl trafficker. In July 2019, investigators intercepted Rosario-Peralta on a wiretap negotiating the sale of kilogram quantities of narcotics. Rosario-Peralta was arrested on July 5, 2019, in Yonkers, New York, after he traveled to a drug stash location there and picked up approximately three kilograms of fentanyl.
Peralta has been detained since his arrest. At sentencing, which is not scheduled, he faces a maximum term of imprisonment of life.
This matter has been investigated by the Drug Enforcement Administration and the Stamford Police Department, with the assistance of the Yonkers Police Department. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Diamondhead Man Sentenced to over 14 Years in Prison for Possessing Massive Amount of Child PornographyRead the Press Release
Gulfport, Mississippi. – Taryn Goin Naidoo, 41, of Diamondhead, Mississippi, was sentenced yesterday by Senior U.S. District Judge Louis Guirola, Jr., on three separate counts, to 170 months in prison on each count, each to run concurrently, for a total of 170 months, followed by 15 years of supervised release for each count, also to run concurrently, for knowingly possessing images of minors engaging in sexually explicit conduct, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst and Acting Special Agent in Charge Gilbert Trill with Homeland Security Investigations in New Orleans.
From July 2017 through October 2018, HSI conducted an investigation with the Hancock County Sheriff’s Office and the Diamondhead Police Department which resulted in the seizure and forensic examination of multiple electronic devices found at Naidoo’s residence, to include Micro SD cards, laptop computers, notepads or tablets, and hard drives. The evidence found on the electronic devices and the timeline of that evidence proved Naidoo knowingly possessed over 70,000 images and videos of minors engaging in sexually explicit conduct, to include images of minors under the age of 12.
Naidoo was charged in a federal criminal indictment on September 7, 2018, and in a superseding indictment on May 29, 2019. He was found guilty by a federal jury on January 10, 2020, after a five-day trial in U.S. District Court in Gulfport.
This case was prosecuted by Assistant U.S. Attorney Andrea Jones and Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Department of Justice Awards Nearly $7 Million in Grant Funding to Assist Nevada Victims of Domestic ViolenceRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced today that the Department of Justice — through the Office of Justice Programs (OJP), Office of Violence Against Women (OVW), and the Bureau of Justice Assistance (BJA) is awarding nearly $7 million in grant funding and award opportunities to assist law enforcement agencies, tribes, victims of domestic violence, and local and state government within Nevada, as part of its efforts to curb domestic and sexual violence across the country.
Domestic violence continues to be a scourge in Nevada communities, and has long lasting effects not only on victims of domestic violence, but also on their families and friends. The grant awards announced today are being launched as “Project Veronica,” in honor of a local victim of domestic violence named Veronica Caldwell. In 2015, Veronica lost her life at the hands of her husband, who also shot and killed Veronica’s daughter Yvonne and her daughter’s boyfriend.
Veronica’s mother, Rose Floyd, expressed gratitude for the initiative and said: “My family is honored that the Department of Justice and our Nevada communities will be keeping my daughter’s name in their hearts. Veronica would be proud to know that her legacy will live on through a project that aims to save families from the senseless pain suffered at the hands of domestic violence.”
“The recent increase in domestic violence homicides in Nevada is alarming,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs supports efforts by assisting state and local law enforcement and prosecutors in collaborating with U.S. Attorney Nick Trutanich’s office to help hold domestic violence offenders accountable and assist the victims of these crimes. We continue to applaud this Administration's determination to combat all violent crime.”
“We recognize that the increase in domestic violence as a result of the COVID-19 pandemic creates an urgent situation,” says Laura L. Rogers, Principal Deputy Director of OVW. “This funding will help support the victims of domestic violence, keep survivors safe, and provide resources for victim advocates.”
“This initiative funds domestic violence service providers and law enforcement throughout our state at a critical time,” said U.S. Attorney Trutanich. “Together, our combined efforts will prevent and deter domestic violence, and save lives. For our part, with the help of these new resources, our office looks forward to working closely with our local, state, and federal partners to make a renewed push to prosecute domestic violence offenders who illegally possess guns.”
“While staying at home may keep Nevadans safe from the pandemic, for many domestic violence victims, staying at home can be dangerous and has resulted in more calls for help,” said Nevada Attorney General Aaron D. Ford. “I’m grateful to the Department of Justice for providing funding so that my office can help protect our victims and their families, and provide much needed additional services.”
“When multiple agencies coordinate efforts to combat a known problem, our success is exponential. The partnership between my office, the U.S. Attorney, the Nevada Attorney General, and multiple non-profits shows our commitment to protecting victims of Domestic Violence and gun violence, and aggressively prosecuting offenders. Additional financial resources provided by these federal grants helps to ensure our success,” said Clark County District Attorney Steve Wolfson.
“Our pledge to protect the public is one ATF takes very seriously,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division. “Our special agents are working hard to prevent those individuals who are prohibited from possessing firearms. This includes investigating those who illegally possess a firearm after being convicted of a misdemeanor crime of domestic violence or who are subject to a domestic violence protective order. Since the start of the COVID-19 pandemic, there has been a troubling increase in domestic violence cases. To combat this unacceptable trend, ATF has been working side by side with our prosecutorial and law enforcement partners to achieve a maximum impact with the investigation and prosecution of those domestic violence offenders who illegally possess firearms. It is critically important to prevent these abusers from having access to firearms and to reduce the threat of gun violence in our communities.”
Over the past few years, victim service providers and law enforcement agencies throughout Nevada have worked hard to help victims and hold abusers accountable. Domestic violence, however, remains a significant issue. For example, Nevada ranks among the highest in the country for the rate of women murdered by men. And in Southern Nevada, about one-fourth of all murders stem from domestic violence and disputes.
Offenders who have committed domestic violence pose a particularly high risk of murdering their partners. Accordingly, federal law prohibits individuals subject to certain domestic violence protective orders and those who have been convicted of domestic violence misdemeanors — and convicted felons — from possessing firearms. Research indicates that an abuser with a firearm at home is five times more likely to kill her or his partner, compared to an abuser who does not have the same access to a firearm.
Against this backdrop, to help reduce domestic violence in Nevada, the Department of Justice is providing the following grant awards and targeted invitations to strengthen services and resources for victims, as well as to prosecute abusers for both violence and gun crimes:
Grant Award Opportunities
·$600,000 from BJA, made available to the Clark County District Attorney’s Office; Initiative with U.S. Attorney’s Office to Prosecute Gun Crimes
o The Clark County District Attorney’s Office is receiving a targeted invitation to apply for up to three years of funding (for up to $600,000), to help prosecute domestic violence-related gun crimes.
·$300,000 from OVW to enhance relationships between law enforcement and a community-based victim service provider.
·Total: $900,000
Statewide Initiatives
·$1,704,832 from OVW to the Nevada Office of the Attorney General; STOP (Services, Training, Officers, Prosecutors) Violence Against Women
o The STOP program’s goal is to develop and strengthen law enforcement, prosecution, victim services, and court strategies to combat violent crimes against women, including community-based, culturally specific services, in cases involving domestic violence, dating violence, sexual assault, and stalking.
·$416,734 from OVW to the Nevada Office of the Attorney General; Sexual Assault Services Program
o The Sexual Assault Services Program directs grant dollars to states and territories to assist them in supporting rape crisis centers and nonprofit, nongovernmental organizations that provide core services, direct intervention, and related assistance to victims of sexual assault.
·$243,619 from OVW to the Nevada Coalition to End Domestic and Sexual Violence; Support for Domestic Violence and Sexual Assault Victims
o This grant program helps the Nevada Coalition to End Domestic and Sexual Violence provide support to rape crisis centers, domestic violence shelters, and other domestic violence victim services programs.
·Total: $2,365,185
Tribal Communities
·$663,004 from OVW to the Yerington Paiute Tribe; Tribal Governments Program
o With this funding, in collaboration with the Nevada Coalition to End Domestic and Sexual Violence, the Yerington Paiute Tribe Victim Services Program will, among other things, support a violence prevention advocate and a victim services advocate who will provide legal advocacy and emergency services for primary and secondary victims of domestic violence, stalking, and sexual assault.
·$325,212 from OVW to the Shoshone-Paiute Tribes of the Duck Valley Indian Reservation; Tribal Sexual Assault Services Program
o This award will enable the Shoshone-Paiute Tribes to expand their Tribal Sexual Assault Services Program, such as increasing advocate staff hours and the availability of services for victims.
·Total: $988,216
Nevada’s Rural Communities
·$748,154 from OVW to the Douglas County District Attorney’s Office; Rural Domestic Violence, Sexual Assault, Dating Violence & Stalking Program
o With this award, the Douglas County Special Victims Response Team will enhance its ability to provide timely and thorough investigations of reported incidents of domestic violence, dating violence, sexual assault and stalking.
·$277,500 to No to Abuse – Nevada Outreach Training Organization; Transitional Housing
o This award will help No to Abuse provide both housing and supportive services to move survivors of domestic violence, dating violence, sexual assault, and stalking who are homeless to permanent housing. Additional services may include job training, education attainment, and safety planning.
·Total: $1,025,654
Nationwide Initiative
·$1,550,000 from OVW to the National Council of Juvenile and Family Court Judges; Training & Technical Assistance
o These funds will, among other things, help build the capacity of the criminal and civil justice systems within Nevada and elsewhere to respond effectively to domestic violence, dating violence, sexual assault, and stalking and to foster partnerships between organizations that have not traditionally worked together to address violence against women.
·Total: $1,550,000
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The Office of Justice Programs provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
Anyone affected by abuse and wishes to seek support should please call the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or text LOVEIS to 22522.
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Cosmetic Surgeon and Cosmetic Surgery Practice Found Liable After Trial for Discriminating Against Individuals with Disabilities and Ordered to Pay $125,000 to Each VictimRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that SPRINGFIELD MEDICAL AESTHETIC P.C. d/b/a ADVANCED COSMETIC SURGERY OF NEW YORK (“ADVANCED COSMETIC”), and EMMANUEL O. ASARE, M.D. (“ASARE”), a plastic surgery practice and surgeon in that practice, were found by federal district judge Analisa Torres, after a bench trial, to have engaged in discrimination on the basis of disability in violation of Title III of the Americans with Disabilities Act of 1990 (“Title III of the ADA”). Specifically, Judge Torres concluded that ADVANCED COSMETIC, which has offices in Manhattan and Long Island, and ASARE, had an unlawful policy of denying services to individuals who are, or perceived to be, living with HIV, and applied that policy to unlawfully deny services to three prospective patients (the “Patients”) on the basis of their disability. The Court further concluded that ADVANCED COSMETIC and ASARE engaged in an unlawful practice of testing every preoperative patient for HIV, in violation of the ADA. Judge Torres awarded each of the three Patients $125,000 for emotional distress suffered as a result of ADVANCED COSMETIC’s and ASARE’s conduct, and imposed $15,000 in civil penalties. The Court also enjoined ADVANCED COSMETIC and ASARE from continuing to engage in practices that violate the ADA.
Acting U.S. Attorney Audrey Strauss said: “This verdict marks a significant victory in our continuing efforts to enforce the ADA and eliminate discriminatory practices against individuals living with HIV. The three patients who bravely testified at trial should not have had to suffer the discrimination they did when seeking medical services, and medical providers are reminded again that they are prohibited by law from treating individuals living with HIV differently from anyone else.”
Title III of the ADA prohibits discrimination by doctors, lawyers, hospitals, restaurants, retail stores, hotels, private transportation providers, and other private businesses and nonprofit organizations that provide services to the public. All of these entities are prohibited from excluding individuals with disabilities from their services and programs because they are living with a serious medical condition, such as HIV.
On May 6, 2015, the United States filed a Complaint in Manhattan federal court, alleging that ADVANCED COSMETIC and ASARE denied cosmetic surgery services to individuals living with HIV, in violation of the ADA. On February 10, 2016, one of the Patients filed an intervenor complaint alleging that ADVANCED COSMETIC and ASARE denied him cosmetic surgery services on the basis of his HIV status in violation of the ADA and the New York City Human Rights Law. At the bench trial held in October 2018, the Patients testified that they were denied services by ADVANCED COSMETIC and ASARE because they were either living with HIV, or, in the case of one Patient, perceived to be living with HIV. The Court’s findings of fact after trial included the following:
(1) Defendants refused cosmetic surgery services to the three Patients;
(2) Defendants did so when they became aware that each Patient was either living with HIV, potentially living with HIV, or living with HIV and taking antiretroviral drugs;
(3) Defendants tested the Patients without their consent in order to ascertain their HIV status; and
(4) each Patient suffered emotional distress as a result of Defendants’ actions.
The Court concluded that the above conduct violated the ADA. The Court further found that the testimony of the Patients detailed “severe psychological and emotional consequences of Defendants’ actions,” and awarded each Patient $125,000 in damages. The Court also awarded the United States $15,000 in civil penalties due in part to Defendants’ “troubling” practice of testing all prospective patients for HIV without their express consent. Finally, to prevent ADVANCED COSMETIC and ASARE from continuing to engage in unlawful practices, the Court permanently enjoined Defendants from (1) performing HIV testing on every patient as a routine practice, and (2) conducting HIV testing on any patient without the patient’s express consent.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Arastu Chaudhury and Lara K. Eshkenazi are in charge of the case.
Company President and Employee Arrested in Alleged Scheme to Violate the Export Control Reform ActRead the Press Release
Assistant Attorney General for National Security John C. Demers, Audrey Strauss, the Acting U.S. Attorney for the Southern District of New York, and Jonathan Carson, Special Agent in Charge of the New York Field Office of the U.S. Department of Commerce, Office of Export Enforcement (OEE), announced the arrests today of Chong Sik Yu, a/k/a “Chris Yu,” and Yunseo Lee. Yu and Lee are charged with conspiring to unlawfully export dual-use electronics components, in violation of the Export Control Reform Act, and to commit wire fraud, bank fraud, and money laundering. Yu and Lee were arrested this morning and are expected to be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court.
“The Department’s fight against illegal technology transfer to China is no more critical than in areas like those involved in this case — controlled items used in missile and nuclear technology,” said Assistant Attorney General for National Security John C. Demers. “We will do everything in our power to disrupt illegal exports like these that jeopardize our national security.”
“Chong Sik Yu and Yunseo Lee are accused of violating U.S. export laws by sending electronics components with military applications to Hong Kong and China,” said Acting U.S. Attorney Audrey Strauss. “Together with the Commerce Department and all of our law enforcement partners, we will continue to protect our national security by preventing dual-use technologies from being sent abroad without the required licenses.”
“A top priority of the Office of Export Enforcement is identifying and disrupting the illicit export of items to Hong Kong and China that undermine the national security of the United States,” said OEE Special Agent in Charge Jonathan Carson. “We will continue to work with our law enforcement partners using criminal prosecutions to keep the most dangerous goods out of the most dangerous hands.”
As alleged in the criminal Complaint,[1] unsealed today in Manhattan federal court:
Since at least 2019, a U.S. company named America Techma Inc. (ATI) has illegally exported electronic components from the United States to Hong Kong for apparent re-export to other countries, including China, in violation of the Export Control Reform Act of 2018 (ECRA). Pursuant to the ECRA controls, the Department of Commerce administers export-licensing and other requirements for the export of goods, software, and technologies from the United States to foreign countries. These requirements restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to the foreign policy or national security of the United States. The Commerce Department identifies the most sensitive items subject to EAR controls on the Commerce Control List (CCL), which is categorized by Export Control Classification Number (ECCN).
Yu is ATI’s President, and Lee is an ATI Sales Representative. Yu and Lee worked together and with others to ship what they knew to be export-controlled items to Hong Kong and China. For instance, in June 2019, ATI obtained electronics components — which are export-controlled under the CCL for missile technology, nuclear nonproliferation, and anti-terrorism reasons —from a U.S. supplier (U.S. Supplier-1), and then sent those components to a trading company in Hong Kong (Hong Kong Trading Company-1). In January 2020, ATI attempted to send to Hong Kong Trading Company-1 several electronic components, which are export-controlled under the CCL for anti-terrorism, national security, regional stability, missile technology, nuclear nonproliferation, and anti-terrorism. After the January 2020 package was detained by law enforcement, Yu and Lee discussed methods for evading future law enforcement scrutiny by, for instance, transshipping packages through South Korea, and by using a separate company based in New Jersey (the “New Jersey Reshipper”) to send shipments to Hong Kong in an attempt to avoid customs scrutiny of ATI’s shipments.
For instance, on Feb. 12, 2020, Lee sent an email to another ATI customer located in Hong Kong (Hong Kong Company-2) stating that: “[W]e had delivery issue currently with customs, so we’ve decided to release all items to South Korea first and release to HK from Korea temporarily.” The next day, Lee received a response, which stated, in part, “Most of the items we buy from ATI are under ECCN restriction, so I guess ATI will stock in and release to [ATI’s branch in South Korea], and then ship to HK . . . am I correct?” Lee replied, “Yes you are right.”
On March 5, 2020, Lee responded to Hong Kong Company-2’s inquiry regarding whether ATI could sell certain components to China. Lee’s response, which copied Yu, stated: “We’ve sold” the requested parts “to China customer many times. . . But currently we have customs issue so we don’t know how to handle it. [W]e are thinking we release all controlled parts to South Korea first then release to HK from Korea[.]”
Hong Kong Trading Company-1 also advised ATI on steps to take in order to evade U.S. export controls. For instance, Hong Kong Trading Company-1 advised Yu and Lee to use a marker to cover ATI’s name on labels, to cover each component with an electro-static discharge (ESD) bag, to remove all original documentation from the package, and to use the New Jersey Reshipper to send the shipment. On March 14, 2020, Lee sent an email to Hong Kong Trading Company‑1, copying Yu, stating: “We will follow your direction like adjusting invoice or removed label. But we do not have responsible if it will have problem during the transit to you. But for sure, we will do everything what you want for preparing shipments. We just hope that there is no more detained package.”
In April 2020, ATI sent a package of components to Hong Kong Trading Company-1 using the New Jersey Reshipper. The package was inspected and detained by U.S. customs authorities. Consistent with Hong Kong Trading Company-1’s instructions, the components had been placed in ESD bags labeled with part numbers different from the actual part numbers. One of the components in the April 2020 shipment was export-controlled under the CCL for national security and anti-terrorism.
Financial and shipping records establish that ATI has had a long-standing relationship with Hong Kong Trading Company-1. Between August 2016 and July 2020, ATI shipped more than 200 packages to Hong Kong Trading Company-1. In the one-year period between May 2019 and June 2020, Hong Kong Trading Company-1 transferred over $800,000 into ATI’s bank account in the United States.
No one involved in any of these transactions obtained the licenses required under the ECRA to export these dual-use components.
Yu, 58, of Oradell, New Jersey, and Lee, 33, of Fort Lee, New Jersey, are charged with one count of conspiring to unlawfully export dual-use electronics components, which carries a maximum sentence of 20 years in prison, one count of conspiring to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Assistant Attorney General Demers and Ms. Strauss praised the extraordinary investigative work of the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael K. Krouse and Michael D. Lockard are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Counterintelligence and Export Control Section.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
Company President and Employee Arrested in Alleged Scheme to Violate the Export Control Reform ActRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, and Jonathan Carson, Special Agent in Charge of the New York Field Office of the U.S. Department of Commerce, Office of Export Enforcement (“OEE”), announced the arrests today of CHONG SIK YU, a/k/a “Chris Yu,” and YUNSEO LEE. YU and LEE are charged with conspiring to unlawfully export dual-use electronics components, in violation of the Export Control Reform Act, and to commit wire fraud, bank fraud, and money laundering. YU and LEE were arrested this morning and are expected to be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court.
Acting U.S. Attorney Audrey Strauss said: “Chong Sik Yu and Yunseo Lee are accused of violating U.S. export laws by sending electronics components with military applications to Hong Kong and China. Together with the Commerce Department and all of our law enforcement partners, we will continue to protect our national security by preventing dual-use technologies from being sent abroad without the required licenses.”
Assistant Attorney General for National Security John C. Demers said: “The Department’s fight against illegal technology transfer to China is no more critical than in areas like those involved in this case – controlled items used in missile and nuclear technology. We will do everything in our power to disrupt illegal exports like these that jeopardize our national security.”
OEE Special Agent in Charge Jonathan Carson said: “A top priority of the Office of Export Enforcement is identifying and disrupting the illicit export of items to Hong Kong and China that undermine the national security of the United States. We will continue to work with our law enforcement partners using criminal prosecutions to keep the most dangerous goods out of the most dangerous hands.”
As alleged in the criminal Complaint,[1] unsealed today in Manhattan federal court:
Since at least 2019, a U.S. company named America Techma Inc. (“ATI”) has illegally exported electronic components from the United States to Hong Kong for apparent re-export to other countries, including China, in violation of the Export Control Reform Act of 2018 (“ECRA”). Pursuant to the ECRA controls, the Department of Commerce administers export-licensing and other requirements for the export of goods, software, and technologies from the United States to foreign countries. These requirements restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to the foreign policy or national security of the United States. The Commerce Department identifies the most sensitive items subject to Export Administration Regulations (“EAR”) on the Commerce Control List (“CCL”), which is categorized by Export Control Classification Number (“ECCN”).
YU is ATI’s president, and LEE is an ATI sales representative. YU and LEE worked together and with others to ship what they knew to be export-controlled items to Hong Kong and China. For instance, in June 2019, ATI obtained electronics components – which are export-controlled under the CCL for missile technology, nuclear nonproliferation, and anti-terrorism reasons – from a U.S. supplier (“U.S. Supplier-1”), and then sent those components to a trading company in Hong Kong (“Hong Kong Trading Company-1”). In January 2020, ATI attempted to send to Hong Kong Trading Company-1 several electronic components, which are export-controlled under the CCL for national security, regional stability, missile technology, nuclear nonproliferation, and anti-terrorism reasons. After the January 2020 package was detained by law enforcement, YU and LEE discussed methods for evading future law enforcement scrutiny by, for instance, transshipping packages through South Korea, and by using a separate company based in New Jersey (the “New Jersey Reshipper”) to send shipments to Hong Kong in an attempt to avoid customs scrutiny of ATI’s shipments.
For instance, on February 12, 2020, LEE sent an email to another ATI customer located in Hong Kong (“Hong Kong Company-2”) stating that: “[W]e had delivery issue currently with customs, so we’ve decided to release all items to South Korea first and release to HK from Korea temporarily.” The next day, LEE received a response, which stated, in part, “Most of the items we buy from ATI are under ECCN restriction, so I guess ATI will stock in and release to [ATI’s branch in South Korea], and then ship to HK . . . am I correct?” LEE replied, “Yes you are right.”
On March 5, 2020, LEE responded to Hong Kong Company-2’s inquiry regarding whether ATI could sell certain components to China. LEE’s response, which copied YU, stated: “We’ve sold” the requested parts “to China customer many times. . . But currently we have customs issue so we don’t know how to handle it. [W]e are thinking we release all controlled parts to South Korea first then release to HK from Korea[.]”
Hong Kong Trading Company-1 also advised ATI on steps to take in order to evade U.S. export controls. For instance, Hong Kong Trading Company-1 advised YU and LEE to use a marker to obscure ATI’s name on labels, to cover each component with an electro-static discharge (“ESD”) bag, to remove all original documentation from the package, and to use the New Jersey Reshipper to send the shipment. On March 14, 2020, LEE sent an email to Hong Kong Trading Company‑1, copying YU, stating: “We will follow your direction like adjusting invoice or removed label. But we do not have responsible if it will have problem during the transit to you. But for sure, we will do everything what you want for preparing shipments. We just hope that there is no more detained package.”
In April 2020, ATI sent a package of components to Hong Kong Trading Company-1 using the New Jersey Reshipper. The package was inspected and detained by U.S. customs authorities. Consistent with Hong Kong Trading Company-1’s instructions, the components had been placed in ESD bags labelled with part numbers different from the actual part numbers. One of the components in the April 2020 shipment was export-controlled under the CCL for national security and anti-terrorism.
Financial and shipping records establish that ATI has had a long-standing relationship with Hong Kong Trading Company-1. Between August 2016 and July 2020, ATI shipped more than 200 packages to Hong Kong Trading Company-1. In the one-year period between May 2019 and June 2020, Hong Kong Trading Company-1 transferred over $800,000 into ATI’s bank account in the United States.
No one involved in any of these transactions obtained the licenses required under the ECRA to export these dual-use components.
* * *
YU, 58, of Oradell, New Jersey, and LEE, 33, of Fort Lee, New Jersey, are each charged with one count of conspiring to unlawfully export dual-use electronics components, which carries a maximum sentence of 20 years in prison, one count of conspiring to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss praised the extraordinary investigative work of the New York Field Office of the Department of Commerce, Office of Export Enforcement. Ms. Strauss also thanked the Newark Field Offices of Homeland Security Investigations and U.S. Customs and Border Protection for their assistance in the investigation, as well as the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael K. Krouse and Michael D. Lockard are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Counterintelligence and Export Control Section.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
Chicago Man Sentenced to 20 Years in PrisonRead the Press Release
HAMMOND – Jesus Lopez, 42 years old, of Chicago, Illinois, was sentenced by United States District Court Judge James T. Moody after pleading guilty to possession with intent to distribute methamphetamine, announced United States Attorney Thomas L. Kirsch II.
Lopez received a sentence of 240 months in prison followed by 3 years of supervised release.
“Mr. Lopez will serve 20 years in prison for his guilty plea to possessing with the intent to distribute methamphetamine,” said U.S. Attorney Kirsch. “Smuggling drugs into our Country is an intolerable offense. We will continue to arrest and prosecute those caught in the Northern District of Indiana. I commend the interdiction efforts of the Hobart Police Department for the apprehension of Mr. Lopez.”
According to documents in this case, in November of 2016, a Hobart police officer stopped Lopez and his co-defendant in a vehicle on I-94. They were in possession of approximately 450 grams of 100% pure methamphetamine, which they were planning to sell to another individual. Lopez was also responsible for attempting to smuggle an additional 16 kilograms of methamphetamine from Mexico into the United States in November 2016.
“This sentencing of Mr. Lopez to 20 years in federal prison was necessary and just for the fine citizens of Porter County and the surrounding area,” said DEA Assistant Special Agent in Charge Michael Gannon. “Mr. Lopez, and others, who show complete disregard for the well-being of Hoosiers by trying to bring methamphetamine into Indiana must be held accountable for their actions. DEA commends the outstanding work that was done in this investigation by the United States Attorney’s Office and our state, local and federal partners.”
This case was investigated by the Drug Enforcement Administration and the Hobart Police Department. This case was prosecuted by Assistant United States Attorney Jennifer Chang.
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Camden County Businessman Admits Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, businessman today admitted filing false tax returns that failed to report all of his business income, U.S. Attorney Craig Carpenito announced.
Rodney Bush-Rowland, 41, of Camden, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of making and subscribing a false income tax return.
According to documents filed in this case and statements made in court:
Bush-Rowland was the sole owner of To & Fro Transportation Inc., a Camden business that provided medical transportation services. Bush-Rowland admitted that during 2014 and 2015, he used a commercial check casher to negotiate over $2.7 million of To & Fro’s revenue checks. He admitted that he failed to include a large portion of the cashed checks on To & Fro’s corporate income tax returns. Bush-Rowland also admitted that he substantially underreported To & Fro’s income on his own individual income tax returns, causing a tax loss of more than $25,000.
In addition to filing false income tax returns, Bush-Rowland admitted to failing to pay over to the IRS employment taxes for To & Fro’s employees. During 2014, 2015, and 2016, Bush-Rowland filed quarterly employment tax returns that falsely reported that To & Fro paid all of the employment taxes due and owing for its employees. Bush-Rowland admitted that he actually failed to pay over more than $147,000 of To & Fro’s employment taxes during these three years.
The charge to which Bush-Rowland pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 16, 2020.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office Criminal Division in Camden.
Byram Man Sentenced to over 20 Years for Methamphetamine Trafficking ConspiracyRead the Press Release
Jackson, Miss. – Timothy Griffin, 44 of Byram, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III, to 262 months in federal prison and 5 years of supervised release for conspiring to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Griffin was also ordered to pay a $1,500 fine.
In June 2018, during an extensive investigation targeting illegal methamphetamine distribution in central Mississippi, DEA agents learned that a drug transaction was going to occur at a location on Raymond Road in Jackson. Agents observed a truck pull in to the location. The driver of the vehicle was identified as Timothy Griffin. After searching the truck, agents found approximately 425 grams of actual methamphetamine intended for distribution.
Griffin was charged in a federal criminal indictment with conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. He pled guilty before Judge Jordan on March 17, 2020.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jones County Sheriff’s Office, the Jackson Police Department, the Richland Police Department, the Mississippi Bureau of Narcotics and the Internal Revenue Service. It was prosecuted by Assistant United States Attorneys Chris Wansley and Keesha Middleton.
Buffalo Woman Charged with Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sharee Bailey, 28, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that according to the complaint, between October 12, 2017, and March 5, 2020, the defendant posted numerous photographs and videos on various social media accounts depicting herself displaying what appears to be multiple semi¬automatic handguns, revolvers, and rifles. On August 4, 2020, law enforcement officers went to a residence on Landon Street in Buffalo, and during the execution of a search warrant at the residence, officers recovered .22 caliber rifle and one spent .9mm shell casing. They also recovered a gun box for a .40 caliber pistol with one magazine inside the box. A hole, which appeared to be caused by gunfire, was found in the floor of the residence. Officers also recovered various types and calibers of ammunition throughout the apartment, and two cellular phones. Bailey, who told officers that she considers herself a member of the Riverdale Gang, was arrested a short time later.
In September 2012, the defendant was convicted in Erie County Court of Criminal Sale Controlled Substance-5th Degree. As a result of that 2012 conviction, Bailey is legally prohibited from possessing a gun. Bailey made an initial appearance before U.S. District Judge Jeremiah J. McCarthy and was detained.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Pleads Guilty to Drug Trafficking Charges and Admits His Role in A Drug-Related MurderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Taire Chaney, 28, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiring to possess with intent to distribute cocaine and crack cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between 2008 and March 9, 2012, the defendant conspired with co-conspirator Tyshawn Bradley and others to sell cocaine and crack cocaine in and around the Perry Housing Projects in the City of Buffalo. The defendant admitted that Brad Daniels was murdered in 2012 as a result of this conspiracy.
In the summer of 2010, Chaney and Bradley perceived that a rival drug dealer was encroaching on their territory as the rival began selling crack cocaine in the Perry Projects. Bradley confronted the rival over this infringement. On July 29, 2010, an associate of Bradley was shot and killed on Perry Street, and Bradley believed that the death was a result of the feud with the rival drug dealer. In the following months, Chaney, Bradley, and another co-conspirator followed and shot at the rival drug dealer. On February 29, 2012, they saw the rival drug dealer riding in a Cadillac Escalade, which was driven by Brad Daniels. Chaney, Bradley and the co-conspirator followed the Escalade as it dropped off the rival drug dealer and continued driving. After the Escalade stopped on Bardol Street in Buffalo, Chaney, Bradley and the co-conspirator approached the car. Chaney shot a .45 caliber handgun multiple times through the driver’s side of the Escalade, while Bradley shot a .45 caliber handgun multiple times through the rear and passenger side of the Escalade. The co-conspirator discharged a 9mm semi-automatic handgun through the rear of the Escalade. Daniels, who was driving the Escalade, suffered three gunshot, and died. The investigation determined that one of the shots fired by Chaney resulted in Daniels death.
Tyshawn Bradley was previously convicted and sentenced to serve 30 years in prison.
Chaney’s plea is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for November 18, 2020, at 9:00 a.m. before Judge Skretny.
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Bowie County Man Guilty of Distributing Child PornographyRead the Press Release
TEXARKANA, Texas – A 32-year-old Texarkana, Texas, man has pleaded guilty to distribution of child pornography in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Troy Dewayne Daniels pleaded guilty on August 6, 2020, to distributing child pornography before U.S. Magistrate Judge Caroline M. Craven. In his plea agreement, Daniels agreed to pay restitution to his victims, to register as a sex offender, and to be sentenced to a life term of supervised release following his imprisonment.
According to information presented in court, in October 2019, Daniels used social media apps to communicate with an undercover law enforcement officer. During the conversation, Daniels described his progress in grooming a female child for sexual exploitation, including stating that he was “hoping” to go “[a]ll the way” with her. During the conversation, Daniel admitted to the undercover officer that he had been looking at pictures and videos of younger girls “for a while.” Daniels then sent the undercover officer an image of child pornography claiming that the prepubescent female child depicted looked like the child he had been grooming. Daniels did so in exchange for non-pornographic images of the undercover officer’s (fictional) daughter. Several days later, Daniels reached out to the undercover officer and asked if he could “play” with the officer’s (fictional) daughter on Snapchat. In November 2019, law enforcement officers executed a search warrant at Daniels’s home. Inside, officers found electronic devices containing more than 600 images of child pornography. The images found depicted prepubescent minors, sadistic or masochistic abuse or other depictions of violence, and depictions of the sexual exploitation of infants and toddlers.
Under federal statutes, Daniels faces a minimum of 5 years and up to 20 years in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The U.S. Attorney’s Office for the Eastern District of Texas is committed to the protection of our children. Advances in technology over the past two decades have brought about new obstacles for parents, educators, and law enforcement. No longer are children safe in their own homes. No longer can teachers and parents let their guard down when our children are in the classroom, library, or even in their own home. The statistics are alarming. One in five children per year receives an unwanted sexual solicitation online. One in 33 children per year receives an aggressive sexual solicitation. And perhaps most disturbing, at any given time, 50,000 predators are on the Internet actively seeking out children. This office is committed to aggressively implementing programs and targeting those who would harm children in order to provide a safer environment for all children. More information and resources for parents and educators are available at https://www.justice.gov/usao-edtx/project-safe-childhood.
This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Biofuel Fraudster Sentenced to Seven Years in Prison for Scamming Multiple Federal Agencies and CustomersRead the Press Release
The owner of a biofuel company was sentenced to seven years in prison followed by a three-year term of supervised release and ordered to pay $10,207,000 in restitution for defrauding multiple federal agencies and customers.
Following a four-week trial before U.S. District Judge Jeffrey L. Schmehl, a federal jury in the Eastern District of Pennsylvania convicted David Dunham, owner of Smarter Fuel LLC in Wind Gap, Pennsylvania and co-owner of Greenworks Holdings LLC of Allentown, Pennsylvania, of conspiracy to commit wire fraud and defraud the United States; wire fraud; filing false tax documents and obstruction of justice.
The conviction arose from Dunham’s planning and executing a scheme to defraud the Environmental Protection Agency (EPA), the IRS, the U.S. Department of Agriculture (USDA), and his customers, to obtain renewable fuel credits in his “green energy” business.
“This sentence sends a clear message that the Department of Justice will not tolerate fraud and will not hesitate to prosecute those who seek to undermine support for true American-made renewable fuel,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Mr. Dunham’s crimes were longstanding and elaborate, but this did not stop the Department from ensuring that such crimes are punished and justice is done.”
“David Dunham is a thief, dressed up in ‘green energy’ clothing,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “He thought he could con not just one, but several federal agencies. Eventually, his lies caught up to him and now his reward is a long stint in federal prison.”
“David Dunham used false and fraudulent pretenses to steal millions of dollars from the Government,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “His loss of liberty today is the price he must pay for scamming the Government and stealing from hard working American taxpayers.”
To carry out his green energy scam, from 2010 to 2015 Dunham fraudulently applied for, received, and sold EPA “credits” for producing biofuels that he, in fact, did not produce and, in many instances, had never possessed in the first place. Dunham also sought and received millions of dollars from the IRS and the USDA based on the same falsehoods. All told, based on the repeated falsehoods he told the federal agencies, Dunham obtained nearly $50 million in fraudulent revenue. In carrying out this massive fraud, Dunham used his businesses, Smarter Fuel, which he owned, and Greenworks Holdings, which he operated with his co-defendant, Ralph Tomasso, who previously pleaded guilty to conspiracy to defraud federal programs.
The evidence at trial also showed that Dunham engaged in multiple cover-ups designed to hide his crimes from authorities. These included altering his accounting records the day before an IRS audit in 2010, and providing a USDA auditor with dozens of falsified records, which Dunham had ordered an employee to produce, during a 2012 audit.
The case was investigated by the EPA’s Criminal Investigation Division, the IRS Criminal Investigation, and the USDA’s Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Mary E. Crawley and Trial Attorney Adam Cullman of the Environment and Natural Resources Division.
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.
Asheville Resident Is Sentenced to 14 Years for Transporting Child PornographyRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Mance Lee Ruvolo, 41, of Asheville, to 168 months in prison on transportation of child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Ruvolo was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney Murray in making today’s announcement.
According to filed documents and statements made in court, on July 13, 2018, law enforcement became aware that an individual was using an e-mail address to upload images containing child pornography. Law enforcement identified the email account user as Ruvolo, and positively linked to Ruvolo the cell phone used to upload the child pornography. Court documents also show that a review of Ruvolo’s email account revealed additional images and videos of child exploitation, including videos and images of prepubescent children being sexually abused. Ruvolo pleaded guilty to transportation of child pornography on January 3, 2020.
Ruvolo is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney Murray thanked HSI and SBI for handling the investigation.
Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District, and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Arkansas Project Manager Pleads Guilty to Bank Fraud and False Statements in Connection with COVID-Relief FraudRead the Press Release
A project manager employed by a major retailer has pleaded guilty to bank fraud charges for filing fraudulent bank loan applications seeking more than $8 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Trent Shores for the Northern District of Oklahoma, Acting Deputy Inspector General Richard Parker of the Federal Housing Finance Agency Office of Inspector General (FHFA OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) OIG and Inspector General Hannibal “Mike” Ware of the SBA OIG made the announcement.
Benjamin Hayford, 32, of Centerton, Arkansas, pleaded guilty to one count of bank fraud and four counts of false statements to a financial institution before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma. Sentencing has been scheduled for Nov. 4 before Judge Eagan.
As part of his guilty plea, Hayford admitted that he sought millions of dollars in forgivable PPP loans from multiple banks by claiming fictitious payroll expenses. To support his applications, Hayford provided lenders with fraudulent payroll documentation purporting to establish payroll expenses that were, in fact, non-existent. In addition, Hayford admitted to making false representations to a financial institution concerning the date that a Limited Liability Partnership for which he applied for relief was established.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA OIG, FDIC OIG, and SBA OIG. Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Victor A.S. Régal for the Northern District of Oklahoma are prosecuting the case. The U.S. Attorney’s Office for the Western District of Arkansas provided valuable assistance in this matter.
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.
Arkansas Project Manager Pleads Guilty to Bank Fraud and False Statements in Connection with Covid-Relief FraudRead the Press Release
A project manager employed by a major retailer has pleaded guilty to bank fraud charges for filing fraudulent bank loan applications seeking more than $8 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Trent Shores for the Northern District of Oklahoma, Acting Deputy Inspector General Richard Parker of the Federal Housing Finance Agency Office of Inspector General (FHFA OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) OIG and Inspector General Hannibal “Mike” Ware of the SBA OIG made the announcement.
Benjamin Hayford, 32, of Centerton, Arkansas, pleaded guilty to one count of bank fraud and four counts of false statements to a financial institution before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma. Sentencing has been scheduled for Nov. 4 before Judge Eagan.
“Stopping COVID-related fraud is a priority for the Department of Justice. Fraudsters like Benjamin Hayford greedily steal money that should be going to America’s small business owners who are struggling during this public health crisis,” said U.S. Attorney Trent Shores. “From coast to coast, U.S. Attorneys and our federal investigative partners will continue to pursue those who would defraud the government by engaging in schemes to steal millions of dollars in forgivable PPP loans by claiming fictitious payroll expenses.”
As part of his guilty plea, Hayford admitted that he sought millions of dollars in forgivable PPP loans from multiple banks by claiming fictitious payroll expenses. To support his applications, Hayford provided lenders with fraudulent payroll documentation purporting to establish payroll expenses that were, in fact, non-existent. In addition, Hayford admitted to making false representations to a financial institution concerning the date that a Limited Liability Partnership for which he applied for relief was established.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA OIG, FDIC OIG, and SBA OIG. Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Victor A.S. Régal for the Northern District of Oklahoma are prosecuting the case. The U.S. Attorney’s Office for the Western District of Arkansas provided valuable assistance in this matter.
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.
Arizona Man Pleads Guilty to Misbranding and Smuggling Conspiracy Involving Online Sale and Distribution of Unapproved Drugs Obtained from OverseasRead the Press Release
PITTSBURGH, Pa. – A resident of Chino Valley, Arizona, pleaded guilty in federal court to one count of conspiracy to smuggle misbranded drugs into the United States and introduce them into interstate commerce, United States Attorney Scott W. Brady announced today.
Jeremy Brooks, 31, pleaded guilty before United States District Judge Arthur J. Schwab.
During his plea hearing, Brooks admitted that between January 2016 and May 8, 2018, he engaged in a conspiracy to obtain unapproved drugs in bulk quantities from overseas suppliers, including suppliers in China, for the purpose of pressing the drugs into pills and distributing them to customers throughout the United States via an internet-based business—Domestic RCS—that he and a co-conspirator, Justin Ash, controlled. The business’s website, www.domesticrcs.com, advertised multiple unapproved or "misbranded" drugs—clonazolam, diclazepam, flubromazolam, and etizolam—each of which was a non-prescription benzodiazepine or substance with a similar chemical composition. As Brooks further acknowledged, these substances carried risks of dependency, toxicity, and even fatal overdose, particularly when combined with other central nervous system depressants. Although the co-conspirators’ website and the packaging contained in their shipments indicated that the substances were for "research purposes only," Brooks admitted that he was aware that the vast majority of customers purchased the drugs for individual consumption. Indeed, Brooks, Ash, or others acting at their direction communicated directly with individual customers about, among other things, the effects of the drugs when used for personal consumption. In an effort to evade detection by United States federal authorities, including the United States Food and Drug Administration, United States Postal Inspection Service, and United States Customs and Border Protection, Brooks also admitted that he and Ash caused their overseas suppliers to ship drugs to multiple addresses under their control and in smaller quantities that would draw less government scrutiny.
As part of a written plea agreement, Brooks agreed to forfeit approximately $106,000 in currency seized as part of the investigation.
Brooks faces a maximum sentence of five years in prison, a fine of not more than the greater of (i) $250,000 or (ii) an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
In a related case before Judge Schwab, Ash pleaded guilty for his role in the conspiracy on January 16, 2020, and is awaiting sentencing.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The United States Food and Drug Administration – Office of Criminal Investigations and Homeland Security Investigations conducted the investigation leading to the charge in this case.
Acting Manhattan U.S. Attorney Announces Agreement to Address New York City’s Ongoing Non-Compliance with Rikers Consent JudgmentRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that the United States has entered into an agreement (“Remedial Order”) with New York City and the New York City Department of Correction (“DOC”) to address ongoing non-compliance with core provisions of a Court-ordered Consent Judgment entered in October 2015 to reduce violence in NYC jails on Rikers Island and ensure the safety and well-being of inmates. The Remedial Order, which is subject to the final approval of the Court, requires DOC to implement operational reforms to fix systemic deficiencies that have continued to plague the jail system. Specifically, under the Remedial Order, DOC must adopt numerous new measures designed to reduce the unnecessary use of force against inmates, improve staff supervision, enhance the quality and timeliness of investigations into use of force incidents, ensure that correction officers are held accountable for their misconduct, and better manage and supervise the youngest inmates in custody. The independent federal monitor overseeing the Consent Judgment will assess compliance with the requirements of the Remedial Order.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Five years ago, this Office entered into a groundbreaking, Court-enforceable agreement requiring the City and the Department of Correction to implement sweeping, comprehensive reforms to protect the constitutional rights of inmates and ensure their safety. As documented repeatedly through the federal monitor’s reports to the Court, the City and DOC have failed to fulfill core obligations under that agreement. While this Office recognizes that changing a decades-long culture of violence is not a simple task, the City and DOC must do better. By agreeing to adopt the measures set forth in this Remedial Order, they have taken a step in the right direction. This Office will continue to closely monitor the implementation of the required reforms and vigilantly enforce the requirements of the Remedial Order and the underlying Consent Judgment.”
In August 2014, after completing a multi-year investigation, this Office issued a report that concluded that “a deep-seated culture of violence is pervasive throughout the adolescent facilities at Rikers, and DOC staff routinely utilize force not as a last resort, but instead as a means to control the adolescent population and punish disorderly or disrespectful behavior.” The United States proceeded to join a class action lawsuit against the City, Nunez v. City of New York, which alleged that DOC engaged in a pattern and practice of using unnecessary and excessive force against inmates throughout the jail system. In October 2015, Judge Laura Taylor Swain entered a Consent Judgment requiring DOC to develop and implement myriad new practices, systems, policies, and procedures to reduce violence and the use of excessive and unnecessary force. The Consent Judgment is subject to the oversight of the Court and an independent federal monitor.
Notwithstanding these Court-mandated reforms, the frequency with which correction officers use force against inmates has increased dramatically since the Consent Judgment was entered, with the average monthly use of force rate increasing by more than 100% from 2016 to 2019. In recent bi-annual reports to the Court, the federal monitor has found the City and DOC to be in non-compliance with numerous key provisions of the Consent Judgment. For instance, in his report filed on May 29, 2020, the federal monitor found that DOC “continues to struggle to properly manage Staff’s use of force” and went on to conclude that “a pattern of unprofessional conduct and hyper-confrontational behavior by Staff, an overreliance on alarms and the Probe Team, misuse of OC spray [i.e., pepper spray], use of painful escort techniques, and improper use of head strikes have all plagued the agency’s use of force since the Effective Date [of the Consent Judgment].”
The Remedial Order requires DOC, among other things, to:
- Improve the level of supervision of Captains by substantially increasing the number of Assistant Deputy Wardens assigned to jails.
- Evaluate inmates who have been involved in a significant number of use of force incidents to determine whether their mental health needs are being adequately addressed, and whether existing security and management protocols are appropriate for these inmates.
- Develop a new protocol governing the composition and deployment of Facility Emergency Response Teams (i.e., probe teams) in order to minimize unnecessary or avoidable uses of force by staff.
- By the end of the year, complete all outstanding investigations into use of force incidents that have been pending for a lengthy period of time.
- Utilize a recently created unit of trained investigators to investigate all use of force incidents within 25 business days to determine whether staff violated the use of force policy, or whether further investigation is necessary.
- Consistently not exceed caseload targets approved by the federal monitor for investigators responsible for investigating use of force incidents.
- Impose immediate corrective action on staff for violations of the use of force policy when recommended by the federal monitor.
- Expedite the prosecution of disciplinary cases involving violations of the use of force policy by, among other things, ensuring that at least 50 cases are heard each month by the Office of Administrative Trials and Hearings (“OATH”).
- With respect to units housing 18-year-old inmates, improve the staff assignment system such that the same correction officers, Captains, and Assistant Deputy Wardens are consistently assigned to work in the same housing unit and on the same tour, to the extent feasible.
- With respect to units housing 18-year-old inmates, implement a system that includes a variety of short-term and long-term rewards and consequences to incentivize positive inmate behavior and sanction negative conduct.
While this Office remains extremely concerned with DOC’s ongoing failure to comply with core requirements of the Consent Judgment, the Office recognizes that the agency has made some significant improvements in other areas since the Consent Judgment became effective. For example, DOC has installed thousands of wall-mounted video surveillance cameras throughout the jails to ensure complete camera coverage; created and provided a wide range of new training programs for staff; developed a new computerized case management system to track a wide range of information relating to use of force incidents; eliminated the use of punitive segregation for inmates under the age of 22; and stopped housing youths under the age of 18 on Rikers Island.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Lara K. Eshkenazi are in charge of the case.
- Improve the level of supervision of Captains by substantially increasing the number of Assistant Deputy Wardens assigned to jails.
26 charged in a drug conspiracy involving heroin, fentanyl, “crack” cocaine, and meth in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – Residents of multiple states were arrested today after being charged in a 50-count indictment involving a drug conspiracy, U.S. Attorney Bill Powell announced.
The indictment charges 26 people in a drug distribution operation that sold cocaine base, also known as “crack,” heroin, methamphetamine, including “ice,” and fentanyl in Ohio County and elsewhere from February 2019 to August 2020. In some instances, the sale of the drugs took place near protected locations such as North Park Apartments, Riverview Towers, Luau Manor, Madison Elementary School, Jensen Playground, Belle Isle Playground, Elks Playground, Bridge Park Playground, West Virginia Northern Community College, Wheeling Central Catholic High School, and Wheeling University. Those arrested today and charged are:
• Jennifer Marie Cuffman, also known as “Jennifer Proctor” and “Jen,” 32, of Martins Ferry, Ohio
• Carlos Leeper, also known as “Los,” 57, of Wheeling. West Virginia
• Andre Cornell Diggs, also known as “Dre” and “Big Homie,” 38, of Cleveland Heights, Ohio
• Jalen Deshon Dalton, also known as “J” and “NBA J,” 27, of Cleveland, Ohio
• Susan Manuel, 57, of Wheeling, West Virginia
• Quaison Maurice Harris, also known as “Action,” 35, of Willoughby Hills, Ohio
• Zachary James Parsons, 30, of Wheeling, West Virginia
• Erick Lamont Stanback Singleton, also known as “Gotti,” 26, of Cleveland, Ohio
• Matthew Trabert, 37, of Wheeling, West Virginia
• Willie Johnson, also known as “Ace,” 36, of Cleveland, Ohio
• Kristen Hoffler, 24, of Wheeling, West Virginia
• Larry A. Cuffman, also known as “Pops,” 60, of Martins Ferry, OhioFourteen others are charged and still at large. Their names are not being released at this time.
“We are sending a strong message to all of those from other states who want to sell drugs in our neighborhoods. We will not tolerate the poison and violence. The residents and business owners on Wheeling Island and the City of Wheeling deserve to live, work, and recreate in a safe neighborhood,” said Powell.
“The dedicated men and women of the Drug Enforcement Administration are committed to stopping the flow of drugs and violence into West Virginia and bringing to justice those who seek to poison our communities and threaten the safety of our residents,” said Special Agent in Charge Todd Scott, of DEA’s Louisville Division. “Violence and drug crime know no borders; we will find you, wherever you are, and put you behind bars,” added Scott.
The government is seeking forfeiture of more than $21,000 in cash and multiple firearms associated with the alleged crimes.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Watch the press conference here: https://www.youtube.com/watch?v=diumz-YnImg
5 August 2020
Victims of Tom Petters Ponzi Scheme Receive Additional Distribution of More Than $22 Million in Forfeited FundsRead the Press Release
The Department of Justice announced today that an additional distribution of $ 22,394,690.03 has been issued to victim investors of the THOMAS PETTERS fraud scheme. These funds, forfeited to the United States through criminal and civil forfeiture proceedings prosecuted in the District of Minnesota, will be sent to approximately 364 victims worldwide.
On December 1, 2008, THOMAS JOSEPH PETTERS, of Wayzata, Minnesota, was indicted on multiple counts of mail fraud, wire fraud, money laundering, and conspiracy for orchestrating a $2.1 billion Ponzi scheme. On December 2, 2009, a federal jury found PETTERS guilty of all 20 counts against him and was later sentenced by U.S. District Judge Richard H. Kyle to 50 years in federal prison. Other defendants were convicted in related criminal proceedings. As part of their sentencing judgments, PETTERS and other defendants were ordered to forfeit assets obtained through their criminal activity, including real estate, bank and investment accounts, vehicles and other assets. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victim investors who lost money in connection with the scheme. The proceeds of all forfeited assets are being distributed to victim investors.
This distribution follows the 2018 initial distribution of over $16 million, bringing the total to more than $38 million.
The forfeiture proceedings were part of a coordinated effort to compensate victim investors. In October 2008, the United States obtained an injunction against the fraud in a separate civil case, and the Court appointed a receiver to assist in the recovery of assets. Thereafter, multiple bankruptcy proceedings were filed in Minnesota and other states. In September 2010, the U.S. District Court and the U.S. Bankruptcy Court approved a Coordination Agreement governing the asset recovery efforts of the United States, the bankruptcy trustees, and the Court appointed receiver. In addition to the funds distributed via remission payments, additional payments are being made to victim investors and creditors through these ongoing bankruptcy and receivership proceedings in various states including Minnesota, Illinois and Florida.
The Petters’ remission payments would not have been possible without the efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the District of Minnesota, the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
United States Attorney’s Office Announced $500,000 Award to Provide Housing to Victims of Human Trafficking in South CarolinaRead the Press Release
COLUMBIA, South Carolina --- U.S. Attorney Peter M. McCoy, Jr. announced today that the State of South Carolina received $500,000 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime (OVC), to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“This office is committed to aggressively prosecuting human trafficking, which is among the most despicable and vile forms of criminal activity,” said U.S. Attorney McCoy. “Its victims suffer immeasurably, and I am thankful that there are safe places in South Carolina for survivors of this horrendous crime to experience a transformed life.”
The grant, awarded to Doors to Freedom, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rent, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing and secure employment, as well as occupational training and counseling. Doors to Freedom is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
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The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney, Peyton Anderson Foundation, Federal Defenders, Macon-Bibb leaders announce “Armed with Knowledge” public service campaignRead the Press Release
MACON, Ga. – A public service campaign aimed at educating young people on the consequences of illegal gun possession is underway in Central Georgia.
Presented by the Peyton Anderson Foundation, in partnership with the U.S. Attorney’s Office for the Middle District of Georgia, the Federal Defenders of the Middle District of Georgia, Inc., the Bibb County School District Superintendent, and the Bibb County Sheriff, the “Armed with Knowledge” video project depicts the story of Noah, a preteen youth facing life-altering decisions that lead to prison for illegal firearm possession. Throughout the video, Noah learns hard truths and irreversible consequences through personal points of view from the perpetrator, victim’s family and federal court system.
The Peyton Anderson Foundation worked with the U.S. Attorney’s Office for the Middle District of Georgia and the Federal Defenders for the Middle District of Georgia, Inc. on the project’s development and is partnering with the U.S. Attorney’s Office, the Federal Defenders for the Middle District of Georgia, Inc., the Bibb County School District and the Bibb County Sheriff’s Office on distributing the educational video and accompanying facilitator guide for screening in schools and youth programs throughout Georgia. The video is suitable for middle school viewers and older, although educators can choose to present the video to older elementary school children, as deemed appropriate. The Bibb County School District will be showing the video to students in the fall. The Bibb County Sheriff’s Office plans to utilize the video in its youth outreach programs. The U.S. Attorney’s Office for the Middle District of Georgia will implement “Armed with Knowledge” as part of its own Successful Tips for Youth on Law Enforcement Encounters (STYLE) youth outreach program.
The video was the idea of Peyton Anderson Foundation Trustee Marc Treadwell. Judge Treadwell is a United States District Judge, serving in the United States District Court for the Middle District of Georgia since 2010. Filmed entirely in Central Georgia by Big Hair Productions, the video features local actors, as well as Judge Treadwell, members of the U.S. Attorney’s Office for the Middle District of Georgia and the Federal Defenders of the Middle District of Georgia, Inc. It also features a powerful scene with Tonora Jones, the mother of Ta’Shuntis “Tootie” Roberts, who was lost to gun violence in 2015.
“Many defendants, particularly younger defendants, are completely unaware of the severe criminal penalties that can result from illegal possession of a gun,” said Judge Treadwell. “If our young people are fully informed, perhaps they will choose a different path, a path that will save them, their families and their communities from the consequences of illegal gun possession.”
“Our hope is that this film will make a lasting impression on young viewers, and they will never forget that gun violence can cost them their lives, literally or through years in prison,” said U.S. Attorney Charlie Peeler. “With this powerful video, the Peyton Anderson Foundation has provided educators, mentors, parents and community leaders a unique educational tool with the potential to reduce gun violence and gang activity. We owe it to our community to take full advantage of this opportunity by watching this film with the young people in our lives.”
“The overwhelming dream of our office is that this film will help young people, especially young men of color, to avoid mistakes that bring lifelong consequences. As a lawyer who has represented the indigent accused for over 35 years, I have seen the horrifying consequences that people of color and poor people face after making what many think are minor mistakes early on in life. I hope and desire that this film will empower youth to make better decisions to rebuild their communities which have been shattered by systemic racial injustice, destroyed nuclear families, and disenfranchised so many people,” said Christina Hunt, Executive Director, Federal Defenders of the Middle District of Georgia, Inc. “Our belief is that by knowing the consequences early on, we will be able to rebuild a better place for all to live. We also want people to know that this Office stands to answer any questions any person may have on these matters and can answer those questions confidentially.”
“For too long, I have seen our students make bad decisions about guns. I hate seeing the consequences of those decisions and the hurt it causes; all because young children just don’t know,” said Bibb County School District Superintendent Dr. Curtis Jones. “The ‘Armed with Knowledge’ partnership is just the right proactive actions we need to tell our youth and their parents – Don’t Do It. Thank you for showing how an engaged community helps students develop and demonstrate the strength of character we want of them.”
“‘Armed with Knowledge’ is a compelling video which will be an exceptional teaching tool which touches upon relevant issues that today’s youth are facing,” said Bibb County Sheriff David Davis. “The information a young person receives from this presentation will help them deal with peer pressure and making right choices. We at the Bibb County Sheriff’s Office look forward to adding this to our youth outreach options.”
“‘Armed with Knowledge’ is an impactful educational tool that, with outreach and guidance, can make a permanent imprint in the hearts and minds of young viewers, making them think twice when they, or someone they know, are faced with the decision to engage in a gang or other criminal activity,” said Karen Lambert, president of the Peyton Anderson Foundation.
The trailer of the video will debut on August 5, 2020 on both the Peyton Anderson Foundation and U.S. Attorney’s Office for the Middle District of Georgia Facebook pages, directing viewers to the ArmedWithKnowledge.org website for additional information and access to the full-length video. Organizations can request to use the video and its educational content from the website.
This partnership is in conjunction with Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This partnership also affiliated with Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The Peyton Anderson Foundation was formed in 1988, in honor of Peyton T. Anderson Jr., owner in the 1950s and 60s of the Macon Telegraph and the Macon News. A highly successful businessman, family man, veteran, civic leader, and philanthropist, Anderson assigned the bulk of his estate for charitable purposes to benefit his hometown of Macon, Georgia. He maintained that the people of Central Georgia had been good to him, and he in turn, wished to be good to them. His instructions were simple: give to “good-doers,” instead of “do-gooders.” The Peyton Anderson Foundation carries out these wishes and serves as a lasting memorial to a man whose goodwill lives on long after him, investing over $105 million in Central Georgia and touching the lives of thousands of our residents. For more information, please visit PeytonAnderson.org.
For more information about “Armed with Knowledge” and to request access to the full-length video, please visit ArmedWithKnowledge.org. Questions for the Peyton Anderson Foundation can be directed to Jessica Walden at [email protected] or (478) 361-6998. Questions for the U.S. Attorney’s Office can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
U.S. Attorney's Office recognizes employees for outstanding work in 2019Read the Press Release
The United States Attorney's Office for the Northern District of Ohio presented awards to honor exceptional advocacy, support and legal work on behalf of the district's six million residents in 2019.
"These awards recognize the best efforts put forth by our office on behalf of the citizens of the Northern District," said U.S. Attorney Justin Herdman. "Whether it's combating violent crime, protecting taxpayers, trying to curb the tide of the opioid epidemic, just to name a few, these employees embody the best of public service."
Details of the award winners are below:
Graduates of the Cleveland Federal Community Leadership Institute (CFCLI): Antoinette Burrell, Angelia Johnson and Crystal Williamson
The Cleveland Federal Community Leadership Institute is a program designed to develop leaders among Cleveland's federal agencies. This program gives students opportunities to network with like-minded leaders in the Cleveland area, develop effective teamwork skills, and design a community outreach project. This year, the Northern District had three graduates: Antoinette Burrell, Angelia Johnson and Crystal Williamson. Congratulations, graduates.
Wings of Excellence Award: Jeanette Albrecht and Michelle Baeppler
The purpose of this award is to recognize those employees whose outstanding performances, either on or off the job, have served as an inspiration to others and/or brought credit to the Federal service. Awardees may be recognized for on-the-job performance, community service, or both.
Jeanette Albrecht has been with the Northern District since 2014. She was hired as a Legal Assistant in the Civil Division, where she supported several Assistant U.S. Attorneys in the Financial Litigation and Defensive Units. She assisted in mentoring new legal assistants and has never missed an opportunity to support other personnel within the division.
Michelle Baeppler has handled some of the office's most notable prosecutions. She joined the U.S. Attorney's Office in 2007 as an Assistant U.S. Attorney and has since prosecuted a myriad of criminal cases, including narcotics trafficking, firearms, bank robbery, terrorism, national security and civil rights matters. She has served as the Deputy Chief of the Organized Crime Drug Enforcement Task Force (OCDETF) Unit and is currently the Branch Chief for the Akron office.
Congratulations, Jeanette and Michelle.
2020 Franklin A. Polk Public Servant Award: Renee Mackey
Renee Mackey has been recognized by the Cleveland Metropolitan Bar Association for demonstrating outstanding service to the legal profession, the general public, and the justice system. These merit awards are given for long and faithful service, devotion to duty, wise counsel, and unfailing patience. Renee has worked tirelessly on behalf of the Northern District's six million residents for the past 31 years and is an exemplary public servant. Congratulations, Renee.
The Bill Edwards Career Award: Jim Morford
Jim Morford is honored for over 30 years of exceptional federal service. Jim began his career as an Assistant Prosecuting Attorney in Montgomery County and joined the Northern District in 1991. Jim is an Assistant U.S. Attorney who oversees the district's forfeiture division. Jim is widely considered an expert and leading authority on all things related to both criminal and civil forfeiture. Jim's division consistently nets forfeiture results that far exceed districts much larger than Ohio Northern. Congratulations, Jim.
The Roberta Sladick Career Award: Cindy Jenkins
Cindy is described as an "invaluable asset" and "one of the best employees the U.S. Attorney's Office has had over her long career." Cindy is a leader, mentor and trainer. Cindy has trained countless new employees as they have joined the Criminal Division and is always ready to help and fill in for anyone who needs help, and she has a hands-on approach when it comes to completing the mission. Congratulations, Cindy.
Excellence in Criminal Advocacy: Dan Riedl, Duncan Brown, Om Kakani, Matt Kall and Michelle McEwen
This year's recipients are awarded the Excellence in Criminal Advocacy award for their unwavering commitment and professionalism demonstrated throughout trial. Congratulations to Dan, Duncan, Om, Matt and Michelle.
Excellence in Civil Advocacy: Renee Bacchus, James Bennett, Karen Swanson Haan, Twana Rogers and Devin Zabarsky
This year's recipients are recognized for their legal skills and adaptability while protecting the United States, and their shining example of professionalism in the face of national headlines and unexpected challenging circumstances. The team used keen legal knowledge and exceptional judgment in meeting, conferring, and negotiating with both the Plaintiffs and defense counsel, the Special Masters, the Court and numerous agency officials and attorneys. Congratulations to Renee, James, Karen, Twana and Devin.
Excellence in Criminal Support: Allison Kretz
Allison Kretz is such an instrumental part of the Northern District's Criminal Division. Many of the office's 2019 success stories would not have happened without Allison. She is approachable, knowledgeable, easy to work with, encouraging and patient. She leads by example and becomes an integral part of every team to which she is assigned. But more important than helping the office, Allison assists the victim community that the district serves. Congratulations, Allison.
Excellence in Civil Support: Donna Stroffolino
Donna Stroffolino is awarded this year's "Excellence in Civil Support" award for providing support on high-volume foreclosure matters and doing so in a timely manner. The foreclosure unit files in 17 different state courts, has approximately 1500 cases pending and bring in over $1M a year. Donna helps manage the unit's workload by assessing and reviewing each foreclosure complaint and coordinating with the respective agencies in order to enable the office to file an answer or response. Congratulations, Donna.
Excellence in Paralegal Support: Jen Bosher
Jen Bosher is awarded this year's "Excellence in Paralegal Support" award for her meticulous work and exemplary attention to detail. Jen has worked as a paralegal for the past 10-plus years and has demonstrated exceptional writing ability and the aptitude to handle large and complex discovery productions. Congratulations, Jen.
Excellence in Administrative Support: Annette Coreno
Annette is recognized for her positive attitude and willingness to assist whoever calls or walks through the door. Annette manages multiple duties and tasks throughout the day and handles all of her assignments with a pleasant attitude and smile. Congratulations, Annette.
New Assistant U.S. Attorney Award: Elliot Morrison
In the few short years that Elliot has been with the Northern District office, he has demonstrated outstanding written and oral advocacy skills, thorough and meticulous approach to case development and prosecution, and has earned numerous convictions and significant trial accomplishments. During 2019, AUSA Morrison worked tirelessly on cases involving public corruption and drug trafficking. AUSA Morrison is a conscientious, dedicated and thorough advocate and deserves recognition by his peers as this year's New Assistant U.S. Attorney award recipient. Congratulations, Elliot.
New Legal Support Award: Chiquita Bonner
Chiquita's work ethic and professionalism have earned her this year's New Legal Support award. Chiquita is always ready to say yes to a project, a quick learner, and values her time and others. Chiquita strives to represent the office with professionalism, honesty, and integrity and readily volunteers her time to assist with the planning of events, such as the diversity and outreach programs, holiday events, etc. Congratulations, Chiquita.
The Jane Corrigan Award: Anthony Myers
This award recognizes a supportive staff member who is always professional, ready to help others in the performance of their duties, who expresses a "can-do" attitude, and whose demeanor is always engaging. Anthony receives this year's award for going out of his way to assist others, ensuring that his work is professional and error-free, and addressing deficiencies in internal processes. Congratulations, Anthony.
The Craig Tame Award for Excellence in Community Outreach: Marlon Primes
Marlon is the recipient of the first-ever Craig Tame Award for Excellence in Community Outreach. Marlon is a true leader – both in the office and throughout our community. He has been a champion for Cleveland's youth for several years as he has advanced and supported the Cleveland Metropolitan Bar Association's 3R's program – teaching high school-aged students about their rights and responsibilities as reflected in the U.S. Constitution. Marlon organizes an annual field trip for students to visit the federal courthouse and experience a moot court opportunity. Additionally, he has been a long-standing member of the Office's Diversity and Outreach committee, leading all of us by example. He is described by his peers in many positive ways, including being described as good-natured, exceptionally kind, and "having a heart of gold and the patience of a saint." Congratulations, Marlon.
Administrative Employee of the Year: Jeff Oleyar
Jeff receives this year's award for his role in helping the office navigate the information technology challenges posed by remote-working due to the COVID-19 pandemic. Even before the pandemic, Jeff provided the office with knowledgeable, timely, and friendly service and support. Congratulations, Jeff.
Legal Support Employee of the Year: Rowenda Dellisanti
Rowenda provides outstanding support to all civil Assistant U.S. Attorneys in the Toledo Branch Office. Rowenda is the primary Legal Assistant for two Civil Assistant U.S. Attorneys, provides backup support when necessary, and also supports the bankruptcy and medicare unit, two high-volume areas. Well-organized and meticulous, Rowenda exhibits exceptional skills in all areas of civil litigation support. This includes the difficult and sometimes tedious tasks associated with civil discovery. Congratulations, Rowenda.
Assistant U.S. Attorney of the Year: Margaret Sweeney
Margaret Sweeney is this year's Assistant U.S. Attorney of the Year. Margaret's attention and dedication to her work resulted in 77 defendants charged last year, with several of these matters being significant prosecutions resulting from complex, long-term investigations.
Notable accomplishments in 2019 include:
•The first trial in this district for a fentanyl analogue under the mandatory minimum statute. It was also then the largest carfentanil seizure with 200 grams of carfentanil found.
•Indicting the leader of a drug trafficking organization that, for at least 10 years, has been trafficking upwards of 200 kilos of cocaine into the Northern District.
In 2019, Margaret was selected to be the lead Strike Force attorney for the newly created Cleveland Strike Force. In addition, she coordinates the summer intern program and mentors new Assistant U.S. Attorneys. Her colleagues describe Margaret as motivating, thoughtful and keenly observant of details. Congratulations, Margaret.
U.S. Attorney and ICE Director to Give Update and New Announcements on One-Year Anniversary of August 2019 Immigration Operations in MississippiRead the Press Release
Jackson, Miss. - United States Attorney Mike Hurst, Director of U.S. Immigration and Customs Enforcement (ICE) Matt Albence, and ICE Homeland Security Investigations (HSI) New Orleans Acting Special Agent in Charge Gilbert Trill will hold a press conference on Thursday, August 6, 2020 at 10:00 a.m. at the Federal Courthouse in Jackson to give an update and make new announcements on investigations and prosecutions arising from the August 2019 execution of criminal and administrative search warrants at multiple locations throughout central Mississippi.
WHEN: THURSDAY, AUGUST 6, 2020 - 10:00 A.M.
WHERE: THAD COCHRAN U.S. COURTHOUSE - SECOND FLOOR EXTERIOR COURTYARD
501 E. COURT STREET, JACKSON, MS 39201
NOTE:
- If you are sick, show any signs or symptoms of COVID-19, or have tested positive for COVID-19 (or anyone in your household) and you have not yet completed a 14-day quarantine after testing positive, do not come to the Courthouse.
- Everyone entering the courthouse must wear a mask while in any common area of the courthouse, unless speaking publicly or asking a question during the press conference.
- Everyone must also observe physical distancing requirements, maintaining at least 6 feet between others.
Doors open to press at 9:30 a.m. All cameras must be preset by 9:45 a.m. All media must RSVP to Sheila Wilbanks at [email protected] and present government-issued photo identification and valid media credentials. This event in limited to only members of the media.
U.S. Attorney Announces over $860,000 Awarded to Provide Housing to Victims of Human Trafficking in VirginiaRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger today announced that two victim services providers in the Commonwealth of Virginia received $866,676 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
The grant, awarded to Survivor Ventures, Inc. and Transitions Family Violence Services, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Survivor Ventures, Inc. and Transitions Family Violence Services are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said Katharine T. Sullivan, Deputy Assistant Attorney General for OJP Principal. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.s. Attorney Matthew D. Krueger Announces Award of $1 Million to Provide Housing for Human Trafficking VictimsRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, today announced that two agencies in Wisconsin received nearly $1 million from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“The funds announced here will provide direct and much-needed aid to victims of human trafficking,” said U.S. Attorney Krueger. “Combatting human trafficking remains a top priority for my office, which is among the most active U.S. Attorney’s Offices in the country in fighting this scourge. From our experience, we know that providing safe, stable housing is essential to helping victims break away from their trafficker.”
The grant, awarded to Newcap, Inc. in the amount of $500,000, and to Pathfinders Milwaukee, Inc. in the amount of $499,000, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Newcap, Inc. and Pathfinders Milwaukee, Inc. are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Two O.C. Men Sentenced for Roles in Loan Modification Scam that Caused $3.5 Million in Losses to Distressed HomeownersRead the Press Release
SANTA ANA, California – Two Orange County residents were sentenced late this afternoon – with one being ordered to serve 12 years in federal prison – for their key roles in businesses that offered bogus modification programs to homeowners struggling to pay their mortgages in the wake of the 2008 financial crisis.
The two defendants who were associated with the Santa Ana-based company U.S. Homeowners Relief and several related businesses participated in a long-running “advance fee” scheme that caused more than 1,600 homeowners to suffer over $3.5 million in losses. Many victims lost their homes in subsequent foreclosure proceedings.
Aminullah “David” Sarpas, 37, of Irvine, was sentenced to 144 months in federal prison after being convicted by a jury in April 2019 of 10 counts of conspiracy and mail fraud.
Samuel Paul Bain, 40, of Tustin, was sentenced to five years in prison after pleading guilty in 2016 to conspiracy and mail fraud.
The two men – who were co-owners of U.S. Homeowners Relief, Greenleaf Modify, Waypoint Law Group, and American Lending Review – were sentenced by United States District Judge Cormac J. Carney.
Sarpas and Bain established U.S. Homeowners Relief in late 2008, using it and the subsequent companies to offer programs that falsely offered to help distressed homeowners obtain modifications of their mortgages. Sarpas and Bain initially marketed the programs themselves, but they also used TV, radio and internet advertisements, as well as a team of telemarketers to entice victims. Homeowners who agreed to participate – based on false claims, including that the companies had a 97 percent success rate in obtaining loan modifications that dramatically reduced monthly mortgage payments – were charged an advance fee ranging between $1,450 and $4,200. In short, the scheme “compounded these homeowners’ financial woes by inducing them to dig the hole they were in even deeper,” prosecutors wrote in court documents.
There were two other defendants named in a 2014 indictment. One man was acquitted of all counts. The fourth defendant – Louis Saggiani, 70, of Huntington Beach, pleaded guilty and is scheduled to be sentenced in October.
The investigation was conducted by the United States Postal Inspection Service, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and IRS Criminal Investigation.
This matter was prosecuted by Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office and Assistant United States Attorney David H. Chao of the Major Frauds Section.
Twelve arrested in takedown of North Sound drug trafficking organizationRead the Press Release
Seattle)—Twelve members of a drug trafficking group distributing fentanyl, heroin, methamphetamine, and cocaine throughout the Puget Sound region were arrested today following a year-long investigation and two grand jury indictments, announced U.S. Attorney Brian T. Moran. The members of the conspiracies engaged in trafficking activities from Mexico, through California and Oregon, and into the North Puget Sound region. Those arrested today will make appearances in U.S. District Court for the Western District of Washington today and tomorrow.
“During the course of this investigation agents seized more than 20,000 pills pressed to look like oxycodone, but actually tainted with fentanyl,” said U.S. Attorney Brian Moran. “I have had heartbreaking conversations with the parents of young people who died from fentanyl overdoses linked to counterfeit pills. We are making it a priority to get these deadly drugs off the streets.”
“While most Puget Sound residents have been in ‘lockdown’ status because of the pandemic, our investigators and prosecutors continued pursuing those endangering our communities with indiscriminate sales of fentanyl tainted pills, heroin and methamphetamine,” said DEA Special Agent in Charge Keith Weis. “The tough job of removing this criminal organization was accomplished through the sheer determination and dedication to our community’s safety by our law enforcement professionals.”
In addition to the fentanyl pills, during the investigation law enforcement seized more than six pounds of heroin and nearly nine pounds of methamphetamine. Some of the drugs were smuggled in hidden compartments in the seats of vehicles.
The indictments charge a range of drug trafficking crimes. Those indicted include:
Delmer VELASQUEZ-Lacuna, 23, Seattle, Washington
Rodrigo ALVAREZ-Quinonez, 31, Selma, California
Elias Neftali MONTES-Sevilla, 30, Federal Way, Washington
Gustavo SANDOVAL-Agurcia, 38, Burien, Washington
Jorge Uriel ESQUIVEL-Mena, 31, Fairfield, California
Francisco Javier ESQUIVEL-Mena, 32, Aloha, Oregon
Wilmer GALINDO-Maradiaga, 26, Seattle, Washington
Jose CRUZ-Hernandez, 31, Mountlake Terrace, Washington
Jose Fernando ESCOTO-Fiallos, 32, Mountlake Terrace, Washington
Jose Alberto RAMOS, 59, Selma, California
Juan HERNANDEZ-Hernandez, 54, Bellingham, Washington
Baldemar MARTINEZ-Rico, 28, Kent, Washington
Saul SUAREZ-Mata, 34, Bellevue, Washington
Due to the drug quantities involved, some of the defendants face potential mandatory minimum ten-year sentences. Today alone, law enforcement seized: nearly 6 pounds of methamphetamine, 8 pounds of heroin, 7,500 pills likely tainted with fentanyl, over $100,000 in cash, 4 firearms, and vehicles outfitted with “traps”—hiding places for smuggling drugs and money.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The investigation was conducted by the U.S. Drug Enforcement Administration in partnership with Homeland Security Investigations, Shoreline Police Department, King County Sheriff’s Office (KCSO), Seattle Police Department and the Snohomish Regional Drug Task Force (SRDTF). The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA). In addition, to the agencies listed above, these law enforcement agencies assisted with arrests and search warrants executed today: DEA Oakland Resident Office; DEA Fresno District Office; DEA Portland District Office; DEA Bellingham Resident Office; United States Marshals Service—Seattle, Washington, and Fresno, California; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Federal Bureau of Investigation (FBI) Seattle; FBI SWAT; Washington State Patrol; Valley SWAT; Puyallup Police Department; and Thurston County Narcotics Team.
The case is being prosecuted by Assistant United States Attorneys Stephen Hobbs and Benjamin Diggs.
us_v._velasquez-licona_et_al.pdf us_v_sandoval-agurcia.pdfTuolumne County Man Charged with Receipt and Distribution of Material Involving the Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. — Jonathan James Rodriguez, 37, of Sonora, was arraigned Tuesday for receipt and distribution of material involving the sexual exploitation of minors, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January 2014 and January 2020, Rodriguez used a laptop computer to receive and distribute a visual depiction of a minor engaged in sexually explicit conduct.
Anyone who has information related to this investigation or who believes they may be a victim can contact the FBI at [email protected].
This case is the product of an investigation by the Federal Bureau of Investigation and the Tuolumne County Sheriff’s Office. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of 20 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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, 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.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Three Philadelphia Men Sentenced for Running “Drug Delivery Service” along 7th Street Corridor in South PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Stefan Tucker, 33, of Philadelphia, PA was sentenced to 200 months (over 16 years) in prison by United States District Judge Gerald J. Pappert for his involvement in an almost around-the-clock drug delivery service for several years in South Philadelphia. Two of Tucker’s co-defendants, Stephen Wilkerson, 30, and Jerome Tucker, 29, both of Philadelphia, PA, were also recently sentenced and received ten years and five years in prison, respectively. All three pleaded guilty to multiple drug offenses in January and February, 2020.
Between 2013 and 2016, the defendants and their co-conspirators, known as the “Friends” and the “7th Street” drug trafficking group, delivered crack cocaine and heroin to customers along the 7th Street corridor in South Philadelphia using a shared drug phone. The defendants used the phone to take orders and communicate with customers; they would pass the phone off in shifts to keep their operation going almost 24 hours per day. FBI agents conducted surveillance and controlled purchases of narcotics from the defendants using audio and video recording devices. During the course of the investigation, agents also intercepted phone calls and text messages from the shared drug phone, which documented the defendants’ illicit activities. Three co-defendants, Antoine Clark, Gerald Spruell, and Daniel Robinson, were convicted at trial in February 2020 of multiple drug offenses stemming from their involvement in the drug operation and await sentencing.
“Trafficking in heroin and crack cocaine destroys neighborhoods, it’s deadly, and it’s obviously illegal – for good reason,” said U.S. Attorney McSwain. “And it will land you in federal prison for many years. The 7th Street drug trafficking group is now gone, and we bid it good riddance.”
“This group’s constant churn of drug transactions kept the 7th Street corridor awash in heroin, crack, and other narcotics,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Shutting them down makes the community safer and these sentences will put them out of business.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Matthew Newcomer and Jason Grenell.
The Department of Justice Files Sexual Harassment Lawsuit Against Owner of Rental Properties in Elizabeth, New JerseyRead the Press Release
The Department of Justice announced today that it has filed a lawsuit alleging that the owner of rental properties in Elizabeth, New Jersey violated the Fair Housing Act by subjecting tenants to sexual harassment.
The complaint, filed in the U.S. District Court for the District of New Jersey, alleges that Joseph Centanni, who owns hundreds of rental units in and around Elizabeth, New Jersey, has subjected tenants and housing applicants to sexual harassment on multiple occasions since at least 2005. According to the complaint, Centanni demanded sexual favors like oral sex to get or keep housing, offered housing benefits like reduced rent in exchange for sexual favors, touched tenants and applicants in a way that was sexual and unwelcome, and made unwelcome sexual comments and advances to tenants and applicants. The complaint also alleges that Centanni initiated or threatened to initiate eviction actions against tenants who objected to or refused his sexual advances. According to the complaint, Centanni participates in the federal Housing Choice Voucher Program (also known as Section 8) and receives approximately $102,000 each month in Housing Choice Voucher payments.
“The Fair Housing Act protects the right of all persons in our nation to rent a home without suffering sexual exploitation at the hands of abusive landlords. Demanding sexual favors from tenants, especially those who are financially vulnerable, is illegal,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will hold accountable those who engage in such cruel, depraved, and illegal conduct and will work tirelessly to obtain relief for their victims.”
“No one should ever be forced to provide sexual favors, or otherwise endure sexual harassment, as a condition to keep or obtain housing,” said U.S. Attorney Craig Carpenito. “Sexual harassment in housing is illegal under the Fair Housing Act, and we will vigorously enforce this federal law to end this type of depraved behavior.”
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
Today’s lawsuit is the result of a joint investigative effort with the U.S. Department of Housing and Urban Development’s Fair Housing and Equal Opportunity Office and Office of Inspector General.
The Justice Department's Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The Attorney General recently reaffirmed this commitment by directing the Justice Department to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing. U.S. Attorney Craig Carpenito has also reaffirmed the U.S. Attorney’s Office’s commitment to combatting sexual harassment in housing amid the COVID-19 pandemic. The goal of the department’s initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. As part of the initiative, the Justice Department developed a public service announcement and formed a joint task force with HUD to combat sexual harassment in housing. Since launching the Initiative in October 2017, the Department of Justice has filed 17 lawsuits alleging sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Centanni, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line toll free, at 1-833-591-0291, and select option number one to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339, by e-mailing the Justice Department at [email protected], or by submitting a report online.
Tampa Felon, Previously Convicted of Attempted Murder, Sentenced to 15 Years in Federal Prison for Drug and Firearms OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced DeShawn Torrell Salley (40, Tampa) to 15 years in federal prison for distributing 50 grams or more of methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.
Salley had pleaded guilty on February 6, 2020.
According to court documents and information presented at the sentencing hearing, between 1999 and 2004, Salley was convicted of six felony offenses, including attempted murder in the first degree. On eight occasions, between April and June 2019, Salley sold methamphetamine and heroin in Tampa. On July 31, 2019, federal agents arrested Salley and searched his apartment pursuant to a federal search warrant. The agents recovered a loaded Glock .45 caliber pistol, a bulletproof vest, heroin, and marijuana. As a previously convicted felon, Salley is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher F. Murray
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Syracuse Man Sentenced to 63 Months for Conspiracy to Distribute Marijuana and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Nicholas Tarbell, age 32, of Syracuse, was sentenced today to serve 63 months in prison for conspiring to distribute marijuana and money laundering, announced United States Attorney Grant C. Jaquith, Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and Gregory S. Oakes, Oswego County District Attorney.
As part of his previous guilty plea, Tarbell admitted that between approximately January and August 2017 he received bulk quantities of marijuana from a source of supply. Tarbell sold marijuana he received and sent proceeds from some of those sales back to his source of supply by courier. As part of his guilty plea, Tarbell admitted to distributing and/or possessing approximately 350 kilograms of marijuana.
In addition to his term of imprisonment, the court also sentenced Tarbell to 4 years of supervised release and ordered him to pay a money judgment in the amount of $469,184.
This case was investigated by Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department and Agents of the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorney Thomas Sutcliffe.
Shooting at a Car Sends Drug User Who Unlawfully Possessed Two Guns to Federal Prison for More than Eight YearsRead the Press Release
A drug user who shot at a car containing two people and unlawfully possessed twelve firearms was sentenced August 4, 2020, to more than eight years in federal prison.
Kashad Elijah Hawthorne, age 20, from Cedar Rapids, Iowa, received the prison term after a February 24, 2020 guilty plea to possession of a firearm by a drug user.
Information from sentencing and a plea agreement showed that on May 2, 2019, Cedar Rapids police officers recovered a gun from a car in which Hawthorne had been a passenger. Officers also found a gun in another car Hawthorne was riding in on May 16, 2019. Hawthorne admitted that, on April 22, 2019, he used one of the two guns to shoot at a car containing two people. No one was injured during the incident. Photographs and videos from Hawthorne’s social media accounts showed him posing with firearms on at least thirteen occasions.
Hawthorne was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hawthorne was sentenced to 100 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Hawthorne 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 Kyndra Lundquist and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-121.
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Roanoke Woman Sentenced on Federal Firearms ChargeRead the Press Release
ROANOKE, VIRGINIA – Diamond Topaz Brown, a Roanoke woman who was prohibited from possessing firearms due to her status as a previously convicted felon, was sentenced today in U.S. District Court in Roanoke to 120 months in federal prison, United States Attorney Thomas T. Cullen announced.
According to court documents, Brown, 29, is a seven-time convicted felon who was prohibited from possessing a firearm. In the late hours of September 19 and the early morning hours of September 20, 2018, members of the Roanoke Police Department, the U.S. Marshals Capital Area Regional Fugitive Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives observed Brown outside of a business on Williamson Road in Roanoke. They were looking for Brown in an attempt to arrest her on three outstanding felony extortion warrants based upon violent threats she was alleged to have made in the days prior. Officers observed Brown remove a handgun from a vehicle associated with Brown, place it under her shirt, and move it to another vehicle in the parking lot. Brown hid the firearm under the driver’s seat of the second car. A subsequent search of the second vehicle revealed a Taurus, 9mm, semi-automatic pistol. The gun was loaded with an extended magazine holding 29 rounds of ammunition. Surveillance video from the business confirmed that Brown had, in fact, transferred the pistol from one of the vehicles to another.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation of the case was conducted by the Bureau of Alcohol Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Roanoke City Police Department, and the United States Marshal’s Service. Assistant United States Attorneys Daniel P. Bubar and Coleman Adams prosecuted the case for the United States.
Rhode Island Man Sentenced for Threatening Massachusetts ProfessorRead the Press Release
BOSTON – A Rhode Island man was sentenced today for sending a series of violent and threatening e‑mails to a Massachusetts professor and a university.
Matthew Haviland, 30, of North Kingstown, R.I., was sentenced by U.S. District Court Judge Leo T. Sorokin to 21 months in prison and three years of supervised release. In September 2019, Haviland pleaded guilty to one count of stalking and two counts of transmitting a threat in interstate commerce. Haviland was charged in April 2019.
“The Constitution protects everyone’s right to free speech, but there is a hard line between free speech and the stalking and harassment committed in this case. My office will enforce that line,” said United States Attorney Andrew E. Lelling. “Today’s sentence affirms that these are serious crimes that warrant punishment.”
“Today’s sentence cannot atone for the fear that Matthew Haviland caused, and the sense of security his victims lost, but it does hold him accountable for sending dozens of rage-filled emails threatening horrific acts of violence,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will vigorously protect every individual’s constitutional right to free speech but we will not allow anyone to hide behind the internet and put others in fear for their lives.”
Over the span of several hours on March 10, 2019, Haviland sent a Massachusetts professor a string of approximately 28 e-mails containing messages that included such threats as, “I will rip every limb from your body and eat it, piece by piece,” “I will bite through your eyeballs while you’re still alive, and I will laugh while you scream,” and “I will torture you relentlessly until the end of time … [and] feed your body to pigs again and again….” The professor to whom Haviland sent the threats has published and spoken in favor of abortion rights, and several of Haviland’s e‑mails made reference to abortion. In two successive e-mails, for example, Haviland wrote, “You will be held accountable for every f****** baby you murdered through your horrible deception of they are not humans” and “You will have your face ripped off and eaten by me, personally. I will enjoy raping your body after you’re dead. And that will only be the start.”
Haviland also sent several e-mails on March 15, 2019 to a professional school at the professor’s university. Those e-mails included the message: “You people are Evil, putrid, and somebody shoudl [sic] BOMB your school for spreading the idea that it’s okay to HATE people because of their race.” A later e-mail to the professional school said only, “You should be Murdered in cold blood.”
United States Attorney Lelling and Boston FBI SAC Bonavolonta made the announcement today. Boston FBI’s Joint Terrorism Task Force conducted the investigation with the assistance of the Warwick and North Kingstown (RI) Police Departments. Assistant U.S. Attorney William F. Bloomer of Lelling’s National Security Unit prosecuted the case.
Randolph County woman sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Julie Ann Cutright, of Elkins, West Virginia, was sentenced today to five years of probation for running a drug house, United States Attorney Bill Powell announced.
Cutright, age 34, pled guilty to one count of “Maintaining a Drug-Involved Premises” in May 2019. Cutright admitted to maintaining a home at 113 Riverview Drive in Elkins that was used for distributing methamphetamine, also known as “ice” from October 2017 to November 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. District Judge Thomas S. Kleeh presided.
Randolph County man sentenced to 10 years for methamphetamine distribution and firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joseph William Howell, Jr., of Beverly, West Virginia, was sentenced today to 120 months incarceration for methamphetamine and firearms charges, U.S. Attorney Bill Powell announced.
Howell, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” and one count of “Possess Firearm in Furtherance of a Drug Crime” in October 2019. Howell admitted to working with others to distribute methamphetamine from December 2017 to July 2018 in Randolph County and elsewhere. He also admitted to having a .34 Colt caliber revolver during the drug crime.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Randolph County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
President and Employee of Brooklyn Moving Company Charged with Defrauding CustomersRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Yakov Moroz, the president of Great Movers Inc. and its successor company New City Movers, and company employee Tal Ohana with wire fraud and wire fraud conspiracy by misrepresenting estimated charges for moving services and then requiring customers to pay additional fees that far exceeded the original estimate in order to recover their belongings. Moroz and Ohana were arrested earlier today and will make their initial appearance this afternoon before United States Magistrate Judge Steven M. Gold.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Douglas Shoemaker, Special Agent-in-Charge, United States Department of Transportation, Office of the Inspector General (DOT-OIG), announced the charges.
According to the complaint, Moroz and Ohana, through Great Movers Inc., which operated through the website https://greatmovingusa.com and other affiliated moving companies, defrauded dozens of customers by misrepresenting the estimated charges for moving services and then (i) requiring customers to pay additional fees, often more than 10 percent of the original estimate, (ii) requiring payment before delivery of goods, or (iii) refusing to return and threatening to sell and auction the customers’ belongings if the fees were not paid. These practices violate federal regulations for companies engaged in the transportation of household goods in interstate commerce. Many customers ultimately paid the inflated and additional fees to ensure delivery of their property.
“As alleged, Moroz and Ohana victimized their customers by holding their belongings hostage until the inflated fees were paid,” stated Acting United States Attorney DuCharme. “This Office will hold accountable anyone who seeks to target the vulnerable in an effort to profit from predatory schemes.” Mr. DuCharme thanked the Better Business Bureau for its assistance with the investigation.
“Imagine moving every item you own from one place to another, trusting the moving company loading up the truck to not rip you off. The subjects in this scheme allegedly used that vulnerability in a cruel way, knowing victims would pay almost anything to get their prized possessions back,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Joint Major Theft Task Force will investigate these fraudsters, and we want other potential victims to report it to us so we can stop these criminals before they move on to someone else.”
“Today’s arrests and actions taken stemming from a criminal investigation conducted by the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and FBI shows our commitment to rooting out fraudulent household goods movers who take advantage of unsuspecting customers,” stated DOT-OIG Special Agent-in-Charge Shoemaker. “Working with our law enforcement and prosecutorial partners, as well as the Federal Motor Carrier Safety Administration, we will continue our vigorous efforts to ensure that commercial household goods movers adhere to Federal laws and regulations designed to protect the public.”
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 30 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Devon Lash is in charge of the prosecution.
The Defendants:
YAKOV MOROZ
Age: 39
Brooklyn, New YorkTAL OHANA
Age: 37
Queens, New YorkE.D.N.Y. Docket No. 20-MJ-604
Orlando Resident Sentenced to More Than Six Years for Identity Theft and Credit Card FraudRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Christopher Keith Held (37, Orlando) to six years and nine months in federal prison for conspiring to commit access device (credit card) fraud, producing counterfeit access devices, possessing 15 or more counterfeit access devices, possessing device-making equipment, and committing aggravated identity theft. Held had pleaded guilty on May 13, 2020. Held’s co-defendant, Bonnie Brooke Vogt (25, Orlando), pleaded guilty to several fraud-related charges on June 23, 2020. Her sentencing is scheduled for September 18, 2020.
According to court documents, sometime prior to 2018, Held and Vogt conspired to steal the identities of approximately 2,900 individuals from the Orlando chapter of a labor union where Vogt had been employed. Between 2018 and 2019, Held and Vogt used many of these stolen identities to obtain loans, lines of credit, and credit cards in victims’ names. Held and Vogt then used the fraudulently-obtained funds and stolen identities to purchase four vehicles and to pay other personal expenses, including staying at various hotels in central Florida and renting a new Mercedes. In January 2019, when officers from the Orlando Police Department searched the Mercedes, they found more than 100 counterfeit driver licenses displaying Held or Vogt’s photos, but with the personal information of the identity theft victims, as well as numerous debit and credit cards that had been opened in victims’ names. Officers also located two card printers and a card encoder in the vehicle. Held and Vogt were later found in possession of additional stolen and counterfeit access devices, in September 2019 and October 2019.
This case was investigated by the United States Postal Inspection Service and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Ogle County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ROCKFORD — A Creston man pleaded guilty Tuesday before U.S. District Judge Philip G. Reinhard to charges of transportation of child pornography via the internet and possession of child pornography.
ERIC CANCHOLA, 27, admitted in a written plea agreement that on March 21, 2018, he used a computer to send a video file over the internet to a fellow KIK chat application user. The image depicted a prepubescent female child engaged in sexually explicit conduct. Canchola also admitted that on May 8, 2018, he possessed two iPods, a desktop computer, and two portable hard drives that each contained more than 600 images of children engaged in sexually explicit conduct.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Ogle County Sheriff’s Office assisted in the investigation. The government is represented by Assistant U.S. Attorney Michael D. Love.
Sentencing is set for Dec. 11, 2020, at 9:00 a.m.
Canchola faces a mandatory minimum of five years and a maximum sentence of 20 years in federal prison for transporting child pornography, and a maximum of 20 years for possession of child pornography. The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines.
Navajo Man Pleads Guilty to MurderRead the Press Release
ALBUQUERQUE – Troy Livingston, 20, an enrolled member of the Navajo Nation who resides in Bread Springs, New Mexico, pled guilty in federal court in Albuquerque yesterday to second degree murder in Indian Country.
According to his plea agreement and other court records, Livingston beat Jane Doe, his girlfriend and the mother of his young child, with his hands, feet, and a metal flashlight, which inflicted severe injuries to her head, face and body. Livingston admitted that he killed Jane Doe with malice aforethought and that he acted with callous and wanton disregard for human life. The murder took place at a residence located in McKinley County and within the exterior boundaries of the Navajo Nation.
Livingston is currently in custody awaiting sentencing. He faces up to life in prison.
The Federal Bureau of Investigation worked jointly with the Navajo Department of Criminal Investigations to investigate this case. Assistant U.S. Attorneys David P. Cowen and Frederick T. Mendenhall are prosecuting the case.
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Miami Man Arrested in Connection with Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Another Florida resident has been arrested in connection with an access device fraud and money laundering scheme, for stealing credit and debit card numbers of gas station customers across the country, including in Albany, Broome and Montgomery Counties in the Northern District of New York.
The announcement was made by United States Attorney Grant C. Jaquith; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Inspector in Charge Joseph Cronin, Boston Division, United States Postal Inspection Service (USPIS).
The defendant arrested today was Yanio Montes De Oca, age 33, of Miami, Florida, charged with conspiracy to commit money laundering.
Yesterday, four other defendants were arrested:
- Yudiel Ceballos, age 33, of Miami, charged with conspiracy to commit access device fraud;
- Arley Gonzalez, age 34, of Miami, charged with conspiracy to commit access device fraud;
- Marlon Palacios, age 36, of Miami and Pittsburgh, Pennsylvania, charged with conspiracy to commit access device fraud and aggravated identity theft; and
- Yuny Hurtado Rodriguez, age 31, of Miami, charged with conspiracy to commit access device fraud.
These defendants were charged in a superseding indictment, which was unsealed yesterday. An initial indictment in this case, unsealed in October 2019, resulted in the arrests of:
- Joan Jesus Manso Dieguez, age 33, of Miami, charged with conspiracy to commit access device fraud and money laundering;
- Atnetys Ferreira, age 40, of Miami, charged with conspiracy to commit money laundering; and
- Hugo Hernandez, age 32, of Miami Lakes, Florida, charged with conspiracy to commit access device fraud and money laundering.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
According to the superseding indictment, from April 2016 through approximately December 2018, certain defendants – those charged with conspiring to commit access device fraud – built gas station skimming devices and installed those devices inside gas pumps so that they could steal credit and debit card data of customers who used the “pay at the pump” function to purchase gasoline. The defendants then used that data to create fraudulent debit and credit cards, which they or co-conspirators used to obtain money orders, gift cards, cash, and other merchandise. The indictment also alleges that certain defendants – those charged with conspiring to launder money – engaged in financial transactions with money orders and gift cards obtained through the scheme, to conceal the source of the funds and transfer money to bank accounts controlled by the members of the conspiracy.
This case is being investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers.
Methamphetamine Trafficking and Illegal Firearms Possession at Tribal Casino in Wittenberg Lead to Ten-year Prison SentenceRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that an individual received a sentence totaling ten years following convictions for possession with intent to distribute methamphetamine and illegal firearms possession at a tribal casino near Wittenberg, Wisconsin. The man, Matthew Hornung (age: 36), formerly lived in the Wausau area.
The sentence, imposed on August 5, 2020, by Senior United States District Judge William C. Griesbach, was the result of guilty pleas entered by the defendant to the following:
CHARGE
STATUTE SECTION
SENTENCE
Possession with Intent to Distribute Methamphetamine (5 grams or more)
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii)
60 months in prison, followed by 60 months of supervised release
Possession of a Firearm in Furtherance of Drug Trafficking
18 U.S.C. § 924(c)(1)(a)(i)
60 months in prison, consecutive to any other sentence, followed by 60 months of supervised release
According to court records, the investigation revealed that on October 16, 2019, Hornung was at a tribal casino located near Wittenberg in western Shawano County. While at the casino, Hornung possessed with the intent to distribute approximately 41 grams of methamphetamine with a purity of greater than 80%. Hornung fled on foot from officers who arrived to arrest him. During the short chase, Hornung threw a loaded 9mm semiautomatic handgun that he had on his person.
In sentencing the defendant, Judge Griesbach noted the seriousness of the crime the defendant committed and referred to a criminal record of similar conduct involving illegal drugs and firearms. Judge Griesbach also remarked upon the need to enforce laws related to firearm possession and to deter those would might consider similar actions.
This case was prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://go.usa.gov/xpBrs.
The Central Wisconsin Narcotics Task Force and Federal Bureau of Investigation investigated the case, with assistance from the Drug Enforcement Administration and Shawano County Sheriff’s Office. Assistant United States Attorney Andrew J. Maier prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Man sentenced for smuggling nearly 50 illegal aliens inside grain haulerRead the Press Release
CORPUS CHRISTI, Texas – A 49-year-old resident of Weslaco has been ordered to federal prison after admitting to transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick.
Jose Roberto Pompa pleaded guilty May 6.
Today, U.S. District Judge David S. Morales ordered Pompa to serve a 41-month sentence to be immediately followed by two years of supervised release.
On April 29, Pompa drove a covered grain hauler through the Sarita Border Patrol (BP) checkpoint, at which time a K-9 alerted to the vehicle. Authorities then referred Pompa to secondary inspection. They rolled back the cover on the trailer and utilized the built-in ladder to climb down and check. They ultimately found 48 people concealed inside the grain hauler. All were all determined to be illegally present in the United States from the countries of El Salvador, Cuba, Honduras, Peru, Mexico and Guatemala. One was an unaccompanied 15-year-old from Guatemala.
Pompa was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility in early 2021.
BP conducted the investigation. Assistant U.S. Attorney Amanda Gould prosecuted the case.
Man from Albuquerque pleads guilty to federal sex trafficking chargeRead the Press Release
Albuquerque, N.M. – Cornelius “Chip” Galloway, 37, of Albuquerque, New Mexico, was sentenced yesterday to 17 years in prison on federal sex trafficking charges.
In March, Galloway pled guilty in federal court, admitting to participating in a sex trafficking ring in Bernalillo County from October 2016 to February 2017. Galloway and other members of the ring operated a prostitution service in which they used force, threats, fraud and coercion to compel women to engage in sex for money. Galloway admitted the members of the ring advertised prostitutes online, rented hotel rooms for prostitution and arranged appointments with clients by phone. They did not allow the victims any say about hours, fees or locations, and forced them to turn over all the money they received from customers.
Co-defendant Danielle Galloway, to whom Cornelius Galloway was married during the time of their criminal acts, pled guilty on April 8, 2019 to conspiracy to commit sex trafficking.
Co-defendant Marcus Taylor, 35, has pled guilty to conspiracy to commit sex trafficking, while Matthew Woods, 31, is in custody and scheduled for trial on August 10. An indictment is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations along with the Albuquerque Police Department. Assistant U.S. Attorneys Letitia Carroll Simms and Jack E. Burkhead prosecuted the case.
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Man Pleads Guilty to Threatening to Burn Down African American ChurchRead the Press Release
NORFOLK, Va. – A North Carolina man pleaded guilty today to making a telephonic threat to burn down an African American church in Virginia Beach.
According to court documents, John Malcolm Bareswill, 63, called a Virginia Beach church with a predominantly African American congregation, made racially derogatory remarks, and threatened to set the church on fire. The threatening call was placed on June 7, 2020, several days after one of the church’s leaders took part in a public prayer vigil and peaceful demonstration for George Floyd.
Bareswill pleaded guilty to a criminal information charging a telephonic threat to use fire to kill, injure, or intimidate any individual, or unlawfully to damage or destroy a building. He faces a maximum penalty of ten years in prison when sentenced on Nov. 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Anthony F. Zucaro, Jr., Interim Chief of Virginia Beach Police; and David Hutcheson, Chief of the Virginia Beach Fire Department, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Andrew Bosse is prosecuting the case. Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division provided significant assistance on the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-61.
MS-13 Members and Associates Arrested for Sex Trafficking a MinorRead the Press Release
ALEXANDRIA, Va. – Eleven members or close associates of the MS-13 gang were arrested this week relating to the sexual exploitation and physical abuse of a minor in northern Virginia and Maryland.
“Sex traffickers often prey upon the most vulnerable victims in our society, and when combined with the horrific abuses of a gang like MS-13, the effects can be devastating,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I have personally handled the prosecution of MS-13 members in northern Virginia for over a decade, including for gang-controlled sex trafficking, and I have led meaningful outreach efforts with the Hispanic community in order to raise public awareness of these serious threats. As I’ve noted before, no one suffers more at the hands of MS-13 than other individuals of Central American birth or ancestry, and cases like this are proof of the need for community leaders to step up, acknowledge this reality, and work together to be part of the solution. I want to thank our law enforcement partners for conducting this complex investigation and arrest operation in a diligent and professional manner, and for their sustained commitment to eradicating MS-13 from our communities. These defendants are charged with heinous offenses, but are appropriately presumed innocent unless or until proven otherwise.”
According to court documents, in Aug. 2018, a 13-year-old identified as MINOR 2 ran away from a youth home in northern Virginia. Shortly after running away, MINOR 2 was introduced to members of MS-13. Members of the gang beat MINOR 2 26 times with a baseball bat as part of a gang initiation. Gang members then sex trafficked MINOR 2 in Virginia and Maryland using the currency of cash and drugs. While in Virginia, men lined up to have sex with her in a wooded area behind one target’s apartment complex. The men gave her drugs in exchange for sex. She also was harbored in various apartments in northern Virginia where men paid her and her handlers cash for sex.
“MS-13 is known for their violence and intimidation, but the horrific crimes alleged in this case show how their cruelty and depravity know no bounds,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “The FBI and our community will not stand by while children are beaten, plied with drugs, and trafficked for sex. We will continue to work tirelessly with our law enforcement partners to disrupt violent gang activity and bring justice on behalf of the innocent victims on whom they prey.”
According to court documents, MINOR 2 was later beaten again with a bat 26 times. After the second bat beating, MINOR 2 was transported to Maryland, where she was sold to numerous gang members and other customers in exchange for cash. Law enforcement recovered photographs and videos of MINOR 2 while being sexually exploited, along with numerous social media messages regarding the trafficking and sexual exploitation of MINOR 2.
“Today’s arrests are a prime example of the commitment and dedication of local police officers and federal agents to safeguard northern Virginia against crime and violence,” said Edwin C. Roessler Jr., Chief of Fairfax County Police. “The Fairfax County police department will continue to use every resource and leverage the full weight of our agency and our federal partners to prevent violence by interdicting organized crime and holding alleged criminal street gangs accountable.”
Below is a list of individuals arrested in this operation:
Name, Age
Hometown
Charges
Moises Orlando Zelaya-Veliz, 25
Woodbridge, VA
Sex trafficking a minor victim under the age of 14 in or effecting interstate commerce (“Sex Trafficking of a Minor”) (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Sioni Alexander Bonilla Gonzalez, 20
Woodbridge, VA
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2) and Violent Crime in Aid of Racketeering Activity through assault with a dangerous weapon (“VICAR Assault”) (18 U.S.C. §§ 1959(a)(3) and 2)
Carlos Jose Turicios Villatoro, 22
Woodbridge, VA
VICAR Assault (18 U.S.C. §§ 1959(a)(3) and 2)
Jose Eliezar Molina-Veliz, 20
Woodbridge, VA
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Santos Ernesto Gutierrez Castro, 21
Woodbridge, VA
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Luis Alberto Gonzales, 31
Greenbelt, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Reina Elizabeth Hernandez, 48
Hyattsville, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Nelson Ezequiel Caballero Portillo, 24
College Park, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Gilberto Morales, 31
Hyattsville, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Jonathan Rafael Zelaya-Veliz, 24
Hyattsville, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
Orlando Alexis Salmeron Funez, 38
Riverdale, MD
Sex Trafficking of a Minor (18 U.S.C. §§ 1591(a)(1), (b)(1), (c) and 2)
If convicted, each defendant charged with sex trafficking of a minor faces a mandatory minimum sentence of 15 years in prison and a maximum penalty of life in prison, and each defendant charged with VICAR assault faces a maximum penalty of 20 years in prison if convicted of that offense. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case also is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Robert E. Borstein, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Jarad L. Phelps, Chief of Prince William County Police, made the announcement. Assistant U.S. Attorneys Maureen C. Cain and Seth Schlessinger are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI Agents and Task Force Officers from the Washington D.C. Metropolitan Police Department, the Fairfax County Police, the Arlington County Police, the Alexandria City Police, the Prince William County Police and other surrounding agencies. Investigative and tactical assistance has been provided by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement Removal Operations, the FBI Baltimore Field Office, FBI Norfolk Field Office, FBI Richmond Field Office, along with the Prince George’s County Police and the Montgomery County Police.
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-mj-215.
A criminal complaint is merely an accusation. Each defendant is presumed innocent until proven guilty.
Lifelong Marijuana User Sentenced to Two Years in Federal Prison for Possessing FirearmsRead the Press Release
A drug user who unlawfully possessed guns and who fired a warning shot to scare another person was sentenced August 4, 2020, to two years in federal prison.
Jordan James Booker, age 23, from Waterloo, Iowa, received the prison term after a January 6, 2020 guilty plea to possession of a firearm by a marijuana user.
In a plea agreement, Booker admitted that, on March 9, 2019, he shot a warning shot after an individual came to his house and attempted to buy a television with a counterfeit $100 bill. When that individual refused to leave Booker’s property, Booker fired a shot into the ground. Officers also recovered a second firearm from a closet in Booker’s residence. Booker admitted that he has been a marijuana user his whole life.
Booker was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Booker was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Booker was released on the bond previously set and is to surrender to the Bureau of Prisons at a date yet to be set.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2048.
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Leader of meth trafficking ring operating in Houston sentenced to 30 years in prisonRead the Press Release
HOUSTON – A 37-year-old Mexican citizen has been ordered to federal prison following his involvement in a conspiracy to possess with intent to distribute a large amount of meth within the Houston area, announced U.S. Attorney Ryan K. Patrick.
Custodio Carrasco-Garcia aka Ariel was illegally residing in Houston. He pleaded guilty Feb. 21.
Today, U.S. District Judge David Hittner handed Carrasco-Garcia a 360-month term of imprisonment. Not a U.S. citizen, Carrasco-Garcia is expected to face removal proceedings following the sentence.
At the hearing, the court heard information that he ran a local drug trafficking organization with providers in Mexico and participated in running a stash house. In handing down the sentence, Judge Hittner noted Carrasco-Garcia’s two previous drug convictions and that he was on parole when he committed this offense. The court found him accountable for 30,000 kilograms of narcotics including meth and cocaine and was head of the drug trafficking cell in the Houston area, further noting the extensive involvement of others and use of a stash house.
In March 2018, authorities conducted an undercover operation to purchase meth from a suspected narcotics distributor - later identified as Carrasco-Garcia. On April 6, 2018, law enforcement observed Carrasco-Garcia as he conducted a drug transaction involving a kilogram of crystal meth. He received $53,000 in exchange for the drugs. Carrasco-Garcia delivered another kilogram of meth May 18, 2018.
On May 7, 2019, authorities conducted an undercover operation during which Carrasco-Garcia sold 155.9 kilograms of crystal meth. They arrested him shortly after the operation, at which time he again was in possession of illegal substances.
Carrasco-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Houston Police Department and Harris County Sherriff's Office conducted the investigation. Assistant U.S. Attorney Celia Moyer prosecuted the case.