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Wednesday 17 June 2020
Founder of Plastics Company Charged in $61 Million Tax Evasion SchemeRead the Press Release
NEWARK, N.J. – A Florida man made his initial court appearance today in connection with charges that he evaded over $61 million in income taxes from 2016 through 2018, U.S. Attorney Craig Carpenito announced.
Alfred Teo, 74, of Boca Raton, Florida, is charged by complaint with one count of tax evasion. He made his initial appearance by videoconference before U.S. Magistrate Judge Edward S. Kiel, who set bond at $20 million.
According to documents filed in this case and statements made in court:
Teo was the majority shareholder of multibillion-dollar plastics manufacturing holding company Alpha Industries Management (Alpha). Teo also traded heavily in the securities markets. Between January 2016 and December 2018, Teo diverted $600 million from Alpha’s line of credit directly into his brokerage accounts to trade and to pay off margin calls.
Teo returned a portion of the $600 million to Alpha, but he did not report the remaining outstanding amount as income on his personal tax returns. Instead, $167 million was recorded as income to AAST Holding Corp. (AAST), another Teo-owned entity that was unrelated to his plastics business, and which Teo used as a vehicle to hide personal income.
Alpha did not provide AAST with the $167 million that AAST claimed as income from Alpha in 2016, 2017, and 2018. The money Alpha recorded as salary to AAST was instead money provided for the benefit of Teo and included money that Alpha sent directly to Teo’s trading accounts.
Instead of reporting the $167 million of income from Alpha on Teo’s personal tax returns in 2016, 2017, and 2018, and paying taxes on that income, the income was reported on AAST’s corporate tax returns. Teo then provided false deduction information to his tax preparer in the form of fictitious “cost of goods sold” to artificially reduce his income and evade the income taxes owed.
AAST was organized for purposes of being a holding company, not for selling goods. The company’s principal place of business and mailing address was a Florida residence that Teo owned. AAST’s bank account records do not show purchases of material, equipment, inventory, or other purchases consistent with the sale of goods or products. AAST’s bank account records do not include deposits that would reflect the millions of dollars in receipts that AAST reported on its tax returns for those three years.
In 2016, 2017, and 2018, Teo’s tax preparer provided draft AAST corporate tax forms for Teo’s review. Teo then returned the corporate tax forms with handwritten notes that indicated AAST had tens of millions of dollars of cost of goods sold. Teo did not provide any support to his tax preparer for these claims.
Teo’s tax preparer used the information that Teo provided to report AAST’s cost of goods sold on AAST’s corporate tax returns in the amounts of approximately $26 million, $51 million, and $87 million for 2016, 2017, and 2018, respectively.
By submitting fraudulent cost of goods sold expenses to his tax preparer for inclusion on AAST’s corporate tax returns, Teo used AAST to avoid paying tens of millions of dollars of income taxes. He reduced AAST’s net business income by approximately $165 million for tax years 2016, 2017, and 2018 combined.
TEO’s personal IRS Forms 1040 for 2016, 2017, and 2018 included AAST’s net business income – as reduced by the approximately $165 million in AAST’s false cost of goods sold – as income to TEO. As a result, Teo understated his personal income for those years by approximately $165 million.
Because Teo’s personal tax returns for 2016, 2017, and 2018 included AAST’s net business income, Teo’s fraudulent reduction of AAST’s net business income with purported cost of goods sold expenses resulted in a tax loss of approximately $10 million, $20 million, and $31 million in 2016, 2017 and 2018, respectively, for a total tax loss of approximately $61 million.
The tax evasion charge carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio and Vijay Dewan of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former hospital director of security pleads guilty to buying firearms with hospital funds and selling the guns for profitRead the Press Release
ATLANTA - Russell Richardson, former DeKalb Medical Center, Inc. (DeKalb Medical) Director of Security, has pleaded guilty to fraudulently using hospital funds to acquire multiple handguns that he then sold for his personal benefit and financial gain.
“Richardson abused his position at the hospital, and manipulated the system for personal profit,” said U.S. Attorney Byung J. “BJay” Pak. “His actions diverted hospital funds that could have been used to purchase critical medical supplies.”
"Richardson violated the trust placed in him as the Director of Security at DeKalb Medical Center,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta. “Even worse, Mr. Richardson fraudulently obtained and sold guns without any concern as to who they were being sold to or where they would ultimately end up.”
According to U.S. Attorney Pak, the charges and other information presented in court: Richardson, who was then the Director of Security at DeKalb Medical Center, was authorized to submit purchase requests and to approve purchases made on behalf of the Security Department. Richardson abused his position when, beginning in March 2016, he submitted purchasing requests to the hospital for firearms he intended to sell for his personal benefit. Since Richardson also approved the requests, the hospital paid for the firearms that Richardson subsequently took and sold for profit.
Then, starting in July 2017, Richardson used hospital letterhead to place orders directly with the firearms’ vendor. He concealed his gun purchases from the hospital by causing the vendor to send the invoices directly to him. Richardson then submitted false invoices to the hospital that listed the vendor’s name but falsely listed the items purchased. The hospital paid the invoices without knowing the funds were actually for the purchase of numerous firearms.
After acquiring firearms purchased with hospital money, Richardson advertised that he had guns for sale at gun courses he taught in South Carolina and on his social media sites. He eventually sold many of them for 100% profit.
According to ATF records, and Richardson’s own admission, he acquired approximately 100 firearms since the inception of his fraud scheme.
Russell Richardson, 44, of Columbia, South Carolina, was indicted by a grand jury on August 13, 2019, for mail fraud, dealing firearms without a license, and selling firearms to non-state residents. Richardson pleaded guilty one count each of mail fraud and unlawfully transferring firearms to non-state residents. His sentencing has not yet been scheduled.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this case.
Assistant U.S. Attorney Tracia M. King is prosecuting the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Mexican governor convicted of money launderingRead the Press Release
CORPUS CHRISTI, Texas – A former Coahuila, Mexico, governor has entered a guilty plea for his role in a money laundering scheme that includes offenses against a foreign nation involving bribery of a public official, announced U.S. Attorney Ryan K. Patrick.
Jorge Juan Torres-Lopez, 66, admitted to conducting financial transactions in the United States to conceal the bribes he received here in return for road-building contracts for the State of Coahuila.
Torres-Lopez worked for the Mexican government from 1994 to 2011. His roles included general director of Promotion and Development while secretary of Finance for the state of Coahuila, municipal president of Saltillo as well as interim governor of Coahuila. In approximately December 2005, Hector Javier Villarreal-Hernandez was appointed as undersecretary of Program and Budget for the state of Coahuila. At the time, Torres-Lopez was his supervisor. In July 2008, Villarreal-Hernandez was appointed as secretary of Finance for Coahuila, where he remained until his resignation in August 2011.
As part of his plea, Torres-Lopez agreed to forfeit a piece of property in the United States associated with the payments.
U.S. District Judge Nelva Gonzalez Ramos set sentencing for Sept. 10. At that time, Torres-Lopez faces up to 20 years in federal prison and a possible $500,000 fine, twice the value of the monetary instrument or funds involved in the transaction or both.
Torres-Lopez was taken into custody in Mexico on Feb. 5, 2019, where he remained until his extradition to the United States Oct. 29, 2019. He will remain in custody pending his sentencing.
Villarreal-Hernandez, 49, of Saltillo, Coahuilla, Mexico, has also been convicted in the Southern and Western Districts of Texas for money laundering offenses and is also awaiting sentencing.
Multiple agencies conducted the Organized Crime Drug Enforcement Task Force investigation dubbed Operation Politico Junction to include Drug Enforcement Administration, IRS - Criminal Investigation, Immigration and Customs Enforcement’s Homeland Security Investigations, FBI and U.S. Marshals Service.
The Prosecutor General of the Republic of Mexico provided significant assistance. The Department of Justice’s Office of International Affairs of the Department’s Criminal Division also assisted.
Assistant U.S. Attorneys Jon Muschenheim and Lance A. Watt are prosecuting the case.
Former Joplin Teacher Pleads Guilty to Enticing a Minor for Sex, Faces at Least 10 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – A former Joplin, Missouri, middle school teacher has pleaded guilty in federal court to charges related to enticing one of her students to engage in illicit sex.
Amanda Ruth Schweitzer, 41, pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, June 16, to enticing a minor for illegal sexual activity.
Schweitzer was a teacher at North Middle School in Joplin at the time of the offense.
The 13-year-old victim, who was a student of Schweitzer’s, reported Schweitzer sent nude photos of herself to the victim, with whom she primarily communicated via Instagram, and engaged in sexual intercourse with the victim on at least two occasions in March 2017. The victim reported that he also sent a nude image of himself to Schweitzer.
Under federal statutes, Schweitzer is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Joplin, Mo., Police Department, and the FBI.
Project Safe Childhood
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Felon Gets 42 Months for Possessing PistolRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Cedric Rice, 40, of Grand Rapids, was sentenced to serve 42 months in the Federal Bureau of Prisons for being a felon in possession of a firearm. U.S. District Judge Paul L. Maloney also imposed a period of supervised release of 3 years to follow.
On April 8, 2019, Grand Rapids Police responded to a 911 call that Rice had pointed a gun at a woman and her mother. When police stopped the car carrying Rice, he jumped out and fled on foot. As he ran between houses, Rice dropped a cell phone and hid a .40 caliber Sig-Sauer pistol in a woodpile. He then ducked into a home, changed his clothes, and denied being the person with the gun. In November 2019, Rice pleaded guilty and admitted to possessing the gun.
Rice has an extensive criminal history that began in 1999 with illegally carrying a firearm in Chicago. In 2000, he was convicted of delivering cocaine. He was convicted of assault in 2002, and hindering and resisting police in 2002 and 2003. In 2007, Rice was convicted in federal court and sentenced to serve 106 months in prison for being a felon in possession of a firearm, possessing a firearm in furtherance of drug trafficking, and possessing a firearm while facing federal charges. In 2017, he was convicted of domestic violence. In sentencing Rice to 42 months’ custody, Judge Maloney expressed concern for Rice’s dangerous conduct and history of illegally possessing guns.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by the Grand Rapids Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Federal Judge in Waco Issues Several Lengthy Prison Sentences TodayRead the Press Release
In Waco today, U.S. District Judge Alan Albright handed down lengthy federal prison sentences to multiple defendants in four separate cases, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Chris Combs, San Antonio Field Office, and Drug Enforcement Administration (DEA) Special Agent in Charge Steve Whipple, Houston Division.
- Judge Albright sentenced 31-year-old Michael James Wier of Jacksonville, FL, to 30 years imprisonment followed by a lifetime of supervised release. Judge Albright also ordered Wier to pay a $10,000 fine. On December 19, 2019, Wier pleaded guilty to two counts of aggravated sexual abuse of a child. Wier admitted to sexually assaulting two minors, both of whom were under the age of 12, while residing on Fort Hood between May 2008 and January 2011. The FBI, U.S Army Criminal Investigation Command and the Aiken County Sheriff’s Office in South Carolina investigated this case. Assistant U.S. Attorneys Mark Frazier and Mary Kucera prosecuted this case on behalf of the government.
- Judge Albright sentenced 32-year-old Devito Dembinsky of McGregor, TX, to 413 months imprisonment followed by five years of supervised release. On June 11, 2019, Dembinsky pleaded guilty to one count of obstruction of justice, one count of retaliating against a witness and one count of conspiracy to possess with intent to distribute at least 50 grams of methamphetamine. Dembinsky admitted that in January 2019, while incarcerated awaiting trial on the meth charge, he punched a co-conspirator multiple times in the face. The co-conspirator suffered multiple broken bones in his nose and a large lip contusion. During subsequent recorded telephone conversations from inside the detention facility, Dembinsky bragged to two different individuals that he had assaulted the “snitch” and “rat” because he believed the individual agreed to cooperate with prosecutors and be a witness against Dembinsky. “The lengthy sentence handed down today sends a clear message to those who poison our communities with dangerous drugs, and then attempt to avoid accountability for their criminal conduct by threatening or harming witnesses,” stated FBI Special Agent in Charge Combs. “Obstruction of Justice strikes at the foundation of our criminal justice system and will not be tolerated.” The FBI and the Temple Police Department investigated this case. Assistant U.S. Attorney Stephanie Smith-Burris prosecuted this case on behalf of the government.
- Judge Albright sentenced a pair of defendants, 36-year-old Jeremy King of Temple, and 42-year-old Joe Aaron Holmesley of Austin, TX, to 365 months and 300 months imprisonment, respectively, for conspiring to distribute methamphetamine throughout the Waco area from September 2018 to April 2019. Judge Albright ordered that each defendant pay a $1,000 fine and be placed on supervised release for a period of five years after completing their prison terms. Both defendants pleaded guilty to the charge. The Temple Police Department, FBI and the DEA investigated this case. Assistant U.S. Attorney Stephanie Smith-Burris prosecuted this case on behalf of the government.
- Judge Albright sentenced 55-year-old Delida Mindieta of Temple, to 87 months imprisonment followed by three years of supervised release. Judge Albright also ordered that Mindieta pay a $100 fine and $8,121 in total restitution to three separate banks. On November 5, 2019, Mindieta pleaded guilty to three counts of bank robbery. Mindieta admitted robbing: the BBVA Compass Bank located on East Central Avenue in Belton, TX, on April 22, 2019; the Wells Fargo Bank located on University Oaks Boulevard in Round Rock, TX, on April 22, 2019; and, the Texas Champion Bank located on West Oaklawn Road in Pleasanton, TX, on April 25, 2019. She also admitted to robbing the Wells Fargo Bank in Edna, TX, on April 30, 2019. On each occasion, Mindieta entered the financial institution and demanded cash from bank tellers. The FBI, Belton Police Department, Round Rock Police Department and the Atascosa County Sheriff’s Office investigated this case. Assistant U.S. Attorney Greg Gloff prosecuted this case on behalf of the government.
#####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.
- Judge Albright sentenced 31-year-old Michael James Wier of Jacksonville, FL, to 30 years imprisonment followed by a lifetime of supervised release. Judge Albright also ordered Wier to pay a $10,000 fine. On December 19, 2019, Wier pleaded guilty to two counts of aggravated sexual abuse of a child. Wier admitted to sexually assaulting two minors, both of whom were under the age of 12, while residing on Fort Hood between May 2008 and January 2011. The FBI, U.S Army Criminal Investigation Command and the Aiken County Sheriff’s Office in South Carolina investigated this case. Assistant U.S. Attorneys Mark Frazier and Mary Kucera prosecuted this case on behalf of the government.
Federal Grand Jury Indicts Three Men for Seeking to Exploit Protests in Las Vegas and Incite ViolenceRead the Press Release
LAS VEGAS, Nev. — A federal grand jury indicted Stephen T. Parshall, aka “Kiwi,” 35, Andrew Lynam, 23, and William L. Loomis, 40, all of Las Vegas, for violations of federal law for conspiracy to cause destruction during protests in Las Vegas and possession of an unregistered destructive device, specifically, a so-called “Molotov cocktail.”
U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department made the announcement.
According to allegations contained in the criminal complaint and indictment, Parshall, Lynam, and Loomis claimed to be members of the “Boogaloo” movement, a term used by extremists to signify a coming civil war and/or collapse of society. From April 2020 to May 30, 2020, the defendants conspired to damage and destroy — by fire and explosives — buildings and property owned by the U.S. Government, as well as a public utility installation. On May 30, the defendants possessed Molotov cocktails to throw at police in downtown Las Vegas, during a protest connected to George Floyd’s death.
Parshall, Lynam, and Loomis were all arrested on May 30, 2020, and have been ordered detained by U.S. Magistrate Judge Nancy J. Koppe.
If convicted, Parshall, Lynam, and Loomis each face a statutory maximum sentence of 20 years in prison and a $250,000 fine for conspiracy to damage and destroy by fire and explosive; and ten years in prison and a $250,000 fine for possession of unregistered firearms. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only. If convicted of any federal offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
An indictment alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
In addition to the federal charges, the Clark County District Attorney’s office has filed state charges against the defendants, including one count of Assist, Solicit or Conspire Conspiracy to Commit an Act of Terrorism; one count of Provide Material Support for use in the Commission of an Act of Terrorism; one count of Conspiracy to Damage or Destroy a Building by Means of Explosives; and one count of Possession of Component of Explosive or Incendiary Device with Intent to Manufacture Explosive Incendiary Device.
The federal charges stem from an investigation led by the FBI Joint Terrorism Task Force (JTTF) in Las Vegas. JTTF members who participated in this investigation include the FBI, LVMPD, ATF, North Las Vegas Police Department, Henderson Police Department, Nye County Sheriff’s Office, City of Las Vegas Municipal Court Marshal’s Office, and the U.S. National Park Service. Each regional FBI JTTF brings together highly skilled investigators from federal, state, and local law enforcement agencies to investigate and stop terrorism. As directed by Attorney General William P. Barr, law enforcement is using the existing network of 56 regional FBI JTTFs to identify and prosecute the violent criminal organizers and instigators who have taken over peaceful protests.
U.S. Attorney Nicholas D. Dickinson is prosecuting the federal case. Deputy District Attorney Michael Dickerson is prosecuting the state’s case.
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Erie Man Facing Charges Relating to the Sexual Exploitation of MinorsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count Indictment named David Lyons, 26, as the sole defendant.
According to the Indictment presented to the court, from January 2019 to March 2020, Lyons received and possessed computer and cell phone images depicting prepubescent minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
El Paso Man Faces Federal Charge of Posting Threatening Communications over the InternetRead the Press Release
Manuel Flores, age 42 of El Paso, faces a federal charge of posting a threatening communication over the Internet, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Luis M. Quesada, El Paso Division.
On Monday, FBI agents arrested Flores in Dallas based on a federal criminal complaint filed in El Paso. According to the criminal complaint, Flores recorded and uploaded a video to YouTube entitled “[N*****] Lives Matter” in which he made threatening comments to Black Lives Matter protestors. During the video, the defendant is seated visible only from the knees down with what appears to be an AR-15 style rifle resting on the defendant’s feet. Flores stated that he would be travelling on I-20 Eastbound through Dallas on Monday while daring individuals representing Black Lives Matter to “stop him.” Flores further stated that “my dream is at least take out at least 200 [N******].”
On Monday, FBI agents located and arrested Flores in the Dallas area without incident. He had his initial appearance yesterday before a U.S. Magistrate in Dallas.
Flores is charged with one count of transmitting threatening communications. Upon conviction, he faces up to five years in federal prison. He remains in the custody of the U.S. Marshals Service at this time awaiting transfer to El Paso. His preliminary hearing before a U.S. Magistrate in El Paso has yet to be scheduled.
The FBI is investigating this case. Assistant U.S. Attorney Ian Hanna is prosecuting this case on behalf of the government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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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.
Edinboro, PA Man Indicted in Project Safe Childhood CaseRead the Press Release
ERIE, Pa. -A resident of Edinboro, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count Indictment named James Paredes Andrada, 22, as the sole defendant.
According to the Indictment presented to the court, from November 2019 to February 2020, Andrada received and possessed computer and cell phone images depicting minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Edinboro Police Department conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dubuque Man Pleads Guilty to Distributing Fatal Dose of Fentanyl and Fentanyl AnalogueRead the Press Release
A man who sold a mixture of fentanyl and acetyl fentanyl pled guilty today in federal court in Cedar Rapids.
Carl Ravon Watkins, age 29, from Dubuque, Iowa, was convicted of one count of distribution of controlled substances resulting in death.
In a plea agreement, Watkins admitted that in August 2019, a woman called and texted him, looking for heroin. Watkins met with the woman and her boyfriend in the area of the 700 block of Wilson Avenue in Dubuque, where Watkins entered the woman’s vehicle and sold her what was supposedly heroin. The woman took the mixture home, used it later that night, and lost consciousness. Her boyfriend found her hours later, unconscious and not breathing. Emergency responders arrived, but were unable to revive the woman and she was pronounced dead. An autopsy determined that the woman’s death was caused by mixed drug toxicity, specifically from fentanyl and an analogue of fentanyl called acetyl fentanyl. During a search of the woman’s bedroom, officers found a chunky white substance that tested positive for fentanyl and acetyl fentanyl.
Watkins also admitted that the day after the woman’s death, the Dubuque Drug Task Force set up a controlled meeting with Watkins to attempt to purchase $80 of purported heroin from him. When Watkins arrived at the area of the 700 block of Wilson Avenue in Dubuque, officers placed him under arrest. During his arrest, Wilson dropped a baggie containing about a quarter gram of fentanyl and acetyl fentanyl.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Watkins remains in custody of the United States Marshal pending sentencing. Watkins faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-01043-CJW-MAR.
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Drug Trafficking Organization Leader Sentenced to 10 Years in PrisonRead the Press Release
PROVIDENCE – The admitted leader of a drug trafficking organization that distributed dozens of kilograms of fentanyl and cocaine in New England was sentenced Tuesday to 10 years in federal prison.
Ramon Delossantos, 27, a Dominican national who lived in Cumberland at the time of his arrest in October 2017, previously admitted to the court that he and members of his drug trafficking organization trafficked at least at least 25 kilograms of fentanyl and cocaine throughout several New England states.
According to court documents, a Rhode Island DEA Drug Task Force and Rhode Island State Police High Intensity Drug Trafficking Area Task Force investigation dubbed “Operation Panemera” determined that Delossantos utilized multiple telephones to avoid law enforcement detection as he facilitated the distribution of narcotics with the use of “runners.” The deliveries varied from small quantities for users to kilogram quantities for large-scale distributors. Delossantos’ favorite mode of transportation was a 2010 Porsche Panamera Turbo. The vehicle was seized by law enforcement at the time of his arrest and forfeited to the government.
The investigation, which resulted in the arrest of 23 individuals, resulted in the seizure of approximately 23 kilograms of fentanyl, 18 kilograms of cocaine, 11 kilograms of marijuana, and two kilograms of psilocybin mushrooms. The seizures were made as the drugs moved through the U.S. Postal Service; during traffic stops, including a traffic stop in Fairfield, Conn., on September 30, 2017, where 5 kilograms of fentanyl, ultimately headed to Rhode Island for distribution, were seized; and the execution of court authorized searches of residences, storage units and vehicles where, for example, 5 kilograms of suspected fentanyl were seized from a residence in Norton, Mass., on September 30, 2017.
Arrested and detained on October 2, 2017, Delossantos pleaded guilty on June 14, 2018, to conspiracy to possess with intent to distribute 400 grams or more of fentanyl and conspiracy to possess with intent to distribute 5 kilograms or more of cocaine. On Tuesday, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Delossantos to 120 months in federal prison, 5 years supervised release, and a fine of $10,000.
Delossantos’ sentenced is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
According to court documents, Delossantos, who has strong ties to the Dominican Republic, was previously convicted in Massachusetts and Rhode Island state courts on drug trafficking and firearms charges. Most recently, Delossantos was convicted and sentenced to the Adult Correctional Institutions (ACI) in Rhode Island in December 2014 on firearms charges.
An immigration detainer has been lodged against Delossantos by Immigration and Customs Enforcement.
The case was prosecuted by Assistant United States Attorneys Paul F. Daly, Jr., and Milind M. Shah.
United States Attorney Aaron L. Weisman acknowledges and thanks the Middleborough, Pembroke, and Norton, Mass. Police Departments, Cumberland, RI, Police Department, Massachusetts State Police, Connecticut State Police, United States Postal Inspection Service, Homeland Security Investigations, and the DEA Cape Cod Drug Task Force for their assistance in the investigation of this matter.
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Drug Trafficker Sentenced to Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Randall Curtis Gross, age 27, of Grand Coulee, Washington, was sentenced today after having pleaded guilty on February 11, 2020, to conspiracy to distribute 500 grams or more of methamphetamine as well as heroin. Senior District Court Judge Wm. Fremming Nielsen sentenced Gross to a 10-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Gross primarily distributed methamphetamine and heroin to individuals residing on the Colville Indian Reservation. Gross was identified as a drug trafficker as a result of an extensive, long-term joint investigation led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”) and the U.S. Drug Enforcement Administration (“DEA”) into drug and firearms trafficking in Grant County, Washington, and surrounding areas. During the investigation, law enforcement officers obtained a court-authorized wire-tap and executed search warrants at multiple locations in Eastern Washington. While searching Gross’ trailer near Grand Coulee, Washington, in July 2019, investigators found a fully-loaded assault rifle near a quantity of methamphetamine.
United States Attorney Hyslop said, “Prosecuting those who distribute drugs on Indian Reservations remains a top priority for the United States Attorney’s Office for the Eastern District of Washington. The sentence imposed sends a strong message that drug trafficking will not be tolerated. I commend the relentless work of the federal, state, local and tribal law enforcement officers who investigated this case.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was investigated by the Spokane District Office of the Drug Enforcement Administration, the Spokane Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Bureau of Indian Affairs, the Moses Lake Police Department, the Grant County Sheriff’s Office, the Ephrata Police Department, the Colville Tribal Police, and the Northwest High Intensity Drug Trafficking Area. This case was prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
Dominican National Sentenced in Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Dominican national who previously resided illegally in Methuen was sentenced yesterday in federal court in Boston for trafficking cocaine.
Cesar Rodriguez-Sanquentin, 27, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 37 months in prison and four years of supervised release. On Feb. 12, 2020, Rodriguez-Sanquentin pleaded guilty to one count of conspiracy to distribute 500 grams or more of cocaine and possession with intent to distribute 500 grams or more of cocaine.
In 2018, federal and state law enforcement began investigating a Brockton drug crew allegedly headed by Djuna Goncalves, a violent Brockton-area drug dealer. During the investigation, agents identified different Boston-based drug trafficking organizations that allegedly supplied Goncalves and others with heroin, fentanyl, cocaine, crack cocaine, and marijuana.
On Dec. 17, 2018, federal agents intercepted calls in which Rodriguez-Sanquentin promised to deliver a kilogram of cocaine to a customer. After Rodriguez-Sanquentin met with the customer, federal agents stopped and searched Rodriguez-Sanquentin’s car. Agents recovered a Kellogg’s Corn Flakes box that contained $33,611 in cash. On May 13, 2019, agents intercepted calls in which Rodriguez-Sanquentin agreed to supply cocaine to a Boston drug crew that had supplied Djuna Goncalves. Agents stopped Rodriguez-Sanquentin on the way to meet with the customer and recovered one kilogram of cocaine wrapped in a Christmas-themed gift bag from the engine compartment of Rodriguez-Sanquentin’s car.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; John Gibbons, United States Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
The details contained in the criminal complaint are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Announces Launch of Civil Rights Reporting PortalRead the Press Release
WASHINGTON – The Department of Justice today announced the launch of the Civil Rights Reporting Portal. This new online tool will make it easier for the public to report a civil rights violation.
“The department is committed to upholding the civil and constitutional rights of all people in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Reporting Portal will make it easier for the public to connect with us, which in turn makes us more effective at upholding these important rights. I encourage the public to use this portal to report civil rights violations.”
The new Civil Rights Reporting Portal – located at civilrights.justice.gov – will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting civilrights.justice.gov. When appropriate, the Civil Rights Division staff will refer complainants to other agencies that are responsible for handling specific types of complaints.
Individuals who believe they are a victim of criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
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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Department of Justice Announces Launch of Civil Rights Reporting PortalRead the Press Release
WASHINGTON – The Department of Justice today announced the launch of the Civil Rights Reporting Portal. This new online tool will make it easier for the public to report a civil rights violation.
“The department is committed to upholding the civil and constitutional rights of all people in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Reporting Portal will make it easier for the public to connect with us, which in turn makes us more effective at upholding these important rights. I encourage the public to use this portal to report civil rights violations.”
The new Civil Rights Reporting Portal – located at civilrights.justice.gov – will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Individuals who believe that they may have been victims of civil rights violations should contact the department by visiting civilrights.justice.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.
Dentists Agree to Pay Civil Penalties Under Controlled Substances ActRead the Press Release
NORFOLK, Va. – Dr. Gary Hartman, Dr. Arnold Berger, and Dr. Paul Berger, of Virginia Beach, have agreed to pay a combined $30,000 to settle allegations that they violated the Controlled Substances Act (“Act”) by issuing and filling prescriptions with no legitimate medical purpose.
The Government alleged that dentists Dr. Gary Hartman and Dr. Arnold Berger, and then-retired dentist Dr. Paul Berger, wrote prescriptions for Schedule II and Schedule IV substances with no legitimate medical purpose. Dr. Hartman and Dr. Arnold Berger allegedly wrote prescriptions for controlled substances, including opioids, to each other and in Dr. Hartman’s case, to Dr. Paul Berger. All three would fill the prescriptions and bring the majority of the opioids to Dr. Hartman.
Dr. Hartman and Dr. Arnold Berger previously pleaded guilty to violating the Act. The settlements resolve their civil liability under the Act as well as Dr. Paul Berger’s civil liability under the Act.
Separately, Drs. Hartman and Arnold Berger surrendered their DEA registrations.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the Drug Enforcement Administration.
The matter was investigated by Assistant U.S. Attorney Clare P. Wuerker. The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Denison Texas Man Sentenced to 5 Years in Federal Prison for Calling in Bomb Threat to the Mena Post Office and for Setting Fire to A Mena BusinessRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Jacob Samuel Green, age 26, of Denison, Texas, was sentenced today to 60 months in federal prison followed by two years of supervised release and ordered to pay $145,272.25 in restitution on one count of Making Willful Threat by Mail or Telephone and one count of Maliciously Damaging and Destroying or Attempting to Damage and Destroy Real or Personal Property. The Honorable Judge P. K. Holmes III presided over the sentencing hearing today in the United States District Court in Fort Smith.
In the early morning hours of August 3, 2019, the Mena Police Department received a telephone call on its non-emergency phone line there was a bomb in one of the Postal Service vehicles at the Mena Post Office and when someone opens the door of the vehicle, it will blow up. Mena police officers responded to the Mena Post Office and while they were investigating, one of the officers noticed a fire had been set in the "Just for Kids" resale store located across the street of the post office. Police officers called the fire department, which were able to put out the fire after substantial damage to the building and its contents had occurred. At all relevant times, the resale store was operated by the Polk County Developmental Center which is a nonprofit corporation and the proceeds from the resale store were and are used to provide services for individuals with disabilities. During the investigation, officers were able to identify Green as being the caller and were able to trace the phone back to a hotel room in Mena that had been registered in Green’s name. Officers were able to locate and interview Green. During the interview, Green admitted to calling in the bomb threat and to setting the business on fire.
Green was indicted by a federal grand jury in January 2020 and entered a guilty plea in February 2020.
This case was investigated by the Mena Police Department, Mena Fire Department, Polk County Sheriff’s Office, United States Postal Service, ATF and the Fort Smith Bomb Squad. Assistant United States Attorney Claude Hawkins prosecuted the case for the Western District of Arkansas.
Department of Justice Announces Launch of Civil Rights Reporting PortalRead the Press Release
WASHINGTON—The Department of Justice this week announced the launch of the Civil Rights Reporting Portal. This new online tool will make it easier for the public to report a civil rights violation.
“The department is committed to upholding the civil and constitutional rights of all people in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Reporting Portal will make it easier for the public to connect with us, which in turn makes us more effective at upholding these important rights. I encourage the public to use this portal to report civil rights violations.”
“We hold our civil and constitutional rights dear. Montanan’s who have suffered a violation of those rights can now use this portal to report them, including voting, housing and land use, lending and credit, public accommodations, education, employment, policing, prisons, disability and service member rights and more." U.S. Attorney Kurt Alme said today.
The new Civil Rights Reporting Portal – located at civilrights.justice.gov – will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting civilrights.justice.gov. When appropriate, the Civil Rights Division staff will refer complainants to other agencies that are responsible for handling specific types of complaints.
Individuals who believe they are a victim of criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
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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Department of Justice Announces Launch of Civil Rights Reporting PortalRead the Press Release
A new online tool designed to help the public report civil rights violations
U.S. Attorney Matthew D. Krueger joined the Department of Justice in announcing the launch of the Civil Rights Reporting Portal. This new online tool will make it easier for the public to report a civil rights violation.
“The department is committed to upholding the civil and constitutional rights of all people in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Reporting Portal will make it easier for the public to connect with us, which in turn makes us more effective at upholding these important rights. I encourage the public to use this portal to report civil rights violations.”
The new Civil Rights Reporting Portal – located at civilrights.justice.gov – will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting civilrights.justice.gov. When appropriate, the Civil Rights Division staff will refer complainants to other agencies that are responsible for handling specific types of complaints.
Individuals who believe they are a victim of criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Department of Justice Announces Launch of Civil Rights Reporting PortalRead the Press Release
The Department of Justice announced the launch of the Civil Rights Reporting Portal. This new online tool will make it easier for the public to report a civil rights violation.
“The department is committed to upholding the civil and constitutional rights of all people in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Reporting Portal will make it easier for the public to connect with us, which in turn makes us more effective at upholding these important rights. I encourage the public to use this portal to report civil rights violations.”
“The need to accurately and completely report civil rights violations is at the front of our duties as citizens of Michigan,” stated United States Attorney Matthew Schneider. “The events of recent weeks show that Michiganders are standing up to be heard, and this new online reporting tool will help people speak out against civil rights violations at any time, day or night.”
The new Civil Rights Reporting Portal – located at civilrights.justice.gov – will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting civilrights.justice.gov. When appropriate, the Civil Rights Division staff will refer complainants to other agencies that are responsible for handling specific types of complaints.
Individuals can also still report civil rights violations locally to the U.S. Attorney’s Office. In the Eastern District of Michigan, complaints can be submitted via email at [email protected] or by telephone at (313) 226-9151.
Individuals who believe they are a victim of criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
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.
Convicted Felon with Body Armor Pleads Guilty to Federal Firearm and Ammunition OffenseRead the Press Release
Ocala, Florida – Duvale Lamar Van Dyke (31, Ocala) today pleaded guilty to possessing a firearm and ammunition as a convicted felon. Van Dyke faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Van Dyke was indicted on January 22, 2020.
According to the plea agreement, on January 1, 2020, City of Ocala police officers stopped Van Dyke in his vehicle pursuant to an active warrant for his arrest. A search of the car revealed a loaded firearm, a jar of marijuana, and body armor designed to protect against armor-piercing rifle rounds. The officers also located a .223 rifle round in Van Dyke’s pants pocket. Van Dyke admitted that all of these items belonged to him.
As a previously convicted felon, Van Dyke is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Convicted Felon Faces Prison Time for Illegally Possessing an Assault RifleRead the Press Release
ALBANY, Ga. – A convicted felon caught with an assault rifle and more than a dozen rounds of ammunition has pleaded guilty for his crime, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. Blake Richard Ruis, 26, of Valdosta, entered a guilty plea to possession of a firearm by a convicted felon before U.S. District Judge Louis Sands on Tuesday, June 16, 2020. The charge carries a maximum ten years in prison and a $250,000 fine. A sentencing date has not been scheduled. There is no parole in the federal system.
A Lanier County Sheriff’s Deputy on patrol the night of May 8, 2019 attempted to pull over the defendant after observing him driving his Ford Mustang erratically, but the defendant increased his speed and failed to stop, eventually losing control of his car and striking several stop signs before giving up the chase. Ruis was taken into custody without incident. Inside Ruis’ car, the arresting officer found a High Point 9mm assault rifle, along with 15 rounds of ammunition, all of which the defendant admitted belonged to him. Ruis has prior convictions in the Superior Court of Lowndes County for possession with intent to distribute methamphetamine and theft by taking.
“It is illegal for convicted felons to carry firearms, period. We will prosecute those found in violation of this law. Keeping firearms out of the hands of convicted felons is an important part of our strategy to reduce violent crime across the entire Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “We are working closely with our law enforcement partners to decrease violent crime in our district. I want to thank the FBI and the Lanier County Sheriff’s Office for their work in this case.”
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
This case was investigated by the FBI and the Lanier County Sheriff’s Office. Assistant U.S. Attorney Sonja Profit is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Chinese Manufacturer Charged with Exporting Defective and Misbranded Masks Falsely Purporting to be KN95 RespiratorsRead the Press Release
NEWARK, N.J. – A Chinese manufacturer was charged today with producing and exporting to the United States in the midst of the COVID-19 pandemic over 140,000 misbranded and defective masks that falsely purported to be KN95 respirators, U.S. Attorney Craig Carpenito announced.
Crawford Technology Group (HK) Co. LTD. (Crawford) is charged by complaint with violating the Federal Food, Drug and Cosmetic Act (FDCA) for causing misbranded and substandard respirators that falsely purported to meet various filtration efficiency standards to be imported into the United States.
“Defective and misbranded personal protection equipment is a danger to all who unwittingly purchase and use it,” U.S. Attorney Carpenito said. “The Department of Justice and our partners remain committed to finding the unscrupulous companies that sell dangerous gear and stopping them from further endangering health care workers and first responders.”
“It is not enough that this pandemic has upended lives around the world and caused countless suffering and hundreds of thousands of deaths,” Jason Molina, Special Agent in Charge, Homeland Security Investigations (HSI), Newark, said. “In the midst of that, we have companies like this that exploited this tragedy for financial gain and in the process put millions of lives at risk. This case is a good reminder that the combined efforts of the agencies involved in Attorney General Barr’s Task Force have a very long reach to track and charge those who commit such wrongdoing. In addition, for HSI this fulfills the mission of Operation Stolen Promise to rout out COVID related fraud in all its many forms.”
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by U.S. Attorney Carpenito, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Secretary of Health and Human Services has issued a notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
“In a time when the United States Postal Service is playing such a critical role in the nation’s supply chain, the United States Postal Inspectors will be ever vigilant in our pursuit of criminals using the mail to commit fraud schemes,” U.S. Postal Inspection Service Inspector in Charge James Buthorn said. “We will not stand by and allow American citizens to be preyed upon and are proud to stand with our partners defending the public as we recover from the COVID-19 pandemic. Congratulation to the inspectors, special agents, and prosecutors.”
“U.S. Customs and Border Protection is proud of the expertise we bring to support and assist investigations that result in the seizure of illicit products,” Troy Miller, Director New York Field Office, said. “It is through interagency partnerships and collaborative efforts, like the one leading to today’s criminal charges, that law enforcement successfully combats today’s criminal organizations.”
“The FDA is actively monitoring the marketplace for fraudulent products related to our battle against COVID-19 that are marketed and distributed to Americans. The agency will continue to collaborate with our fellow law enforcement partners to bring to justice those who place profits above the public health during this pandemic,” Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations New York Field Office, said. “We will take appropriate action against those who jeopardize the health of Americans and take advantage of a crisis.”
According to documents filed in this case and statements made in court:
In May 2020, Crawford, a digital electronics company based in Shenzhen, China, manufactured and sold 140,400 adulterated and misbranded KN95 filtering face piece respirators to Company-1 for import into the United States.
The packaging for the respirators, as well as the respirators themselves, falsely indicated that they were 95 percent efficient at filtering harmful airborne particles. The respirators and their packaging also claimed that they complied with established standards in the European Union and China, which require at least 94 percent or 95 percent filtering efficiency, respectively. Crawford also advertised the respirators on its website under a tab labeled “epidemic” and claimed that their respirators have “4 layers of protection” and “Passed the national standard 2626-2000 test.” The page also says “KN95 Filtration reaches 95%,” “KN95 Filter Effect 95%,” and states that their respirators protect against “Severe Haze,” “Bacteria,” and “Dust.” These claims were false and misleading because the average filtering efficiency for the Crawford respirators was 22.33 percent, far below the required thresholds.
U.S. Attorney Carpenito thanked the staff of the NIOSH National Personal Protective Technology Laboratory, under the direction of NIOSH Director John Howard M.D., and special agents of the U.S. Secret Service for their work on the investigation.
The charge in the complaint carries a maximum fine of $200,000.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
Information on the NIOSH Covid-19 Respirator Assessment program and the results of other NIOSH respirator tests can be found here: https://www.cdc.gov/niosh/npptl/respirators/testing/NonNIOSHresults.html
The government is represented by Assistant U.S. Attorney Jonathan Peck of the Asset Recovery and Money Laundering Unit.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Castle Creek Man Sentenced to 180 Months for Attempting to Receive and Receiving Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Chad Swartwood, age 41, of Castle Creek, New York, was sentenced today to serve 180 months’ imprisonment for receiving and attempting to receive child pornography, announced United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his previous guilty plea, Swartwood admitted that from approximately December 2017 through December 2018, he operated several social media accounts on different platforms where he presented himself as a teenage female interested in online, sexual interactions with minor boys. While impersonating a teenage female, Swartwood engaged people he believed to be minor boys in sexually explicit text conversations, sent sexually explicit images that he claimed to be of himself as a teenage female, and solicited sexually explicit images from minor boys.
Swartwood was previously convicted of the New York State felony of Sexual Abuse in the First Degree, an offense that involved a child less than 10 years of age.
In addition to the term of imprisonment, Senior United States District Judge Thomas J. McAvoy also imposed a 20-year term of supervised release, which will start after Swartwood is released from prison. Swartwood also will be required to register as a sex offender upon his release from prison.
This case was investigated by Homeland Security Investigations (HSI) with assistance from the Broome County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and is designed to marshal 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 https://www.justice.gov/psc.
Canton Man Sentenced to Almost Two Years in Prison for Illegal Possession of an Unregistered Firearm SilencerRead the Press Release
Gulfport, Miss. – Kevin Martin Gentry, 38, of Canton, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 23 months in prison, followed by 3 years of supervised release, for unlawful possession of a firearm silencer not registered in the National Firearms Registration and Transfer Record, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). .
On October 9, 2019, in Long Beach, Mississippi, police responded to a report of an aggravated assault in progress at a local apartment. Officers made contact with the defendant, Kevin Martin Gentry, who was armed with a knife. Gentry was disarmed and detained. Further investigation revealed that Gentry had initiated the altercation by forcing himself into the apartment residence displaying a knife. Long Beach Police officers located Gentry’s vehicle parked near the crime scene, and detectives were granted a search warrant from Long Beach Municipal Court. During execution of the search warrant, police found a short-barreled rifle with a silencer.
ATF examined the recovered firearm and measured its barrel length and overall length. The measurements revealed a barrel length of approximately 7 ¾ inches and overall length of approximately 26 ¼ inches. Such a short-barreled rifle and silencer both would require federal registration. The ATF investigation revealed that the firearm was not manufactured in Mississippi, and neither the short-barreled rifle nor the silencer were registered as required in the National Firearms Registration and Transfer Record.
Gentry admitted to sole possession of the short-barreled rifle and the silencer. He also admitted to making the silencer and to adapting the silencer and short-barreled rifle so that the silencer was threaded to fit onto the rifle.
Gentry was indicted by a federal grand jury on November 6, 2019 and pled guilty before Judge Ozerden on February 20, 2020.
U.S. Attorney Hurst commended the coordinated investigation by the ATF and the Long Beach Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Camden County Man Charged with Selling Phony PrescriptionsRead the Press Release
CAMDEN, N.J. – An employee of a Mount Holly, New Jersey, medical practice was arrested today for allegedly selling fraudulent prescriptions for controlled substances, U.S. Attorney Craig Carpenito announced.
Jose Colon, 36, of Sicklerville, New Jersey, is charged by complaint with one count of distributing controlled substances. He is expected to appear by videoconference later this afternoon before U.S. Magistrate Judge Ann Marie Donio.
According to documents filed in this case and statements made in court:
Colon, who is not a medical provider, used the identities of doctors with whom he worked to make and sell fraudulent prescriptions for controlled substances, including Oxycodone, Adderall, Percocet, and Xanax. Colon sometimes met his customers in person with a prescription pad to sell the fraudulent prescriptions for cash. He also submitted fraudulent prescriptions electronically to pharmacies in exchange for electronic payments from his customers. Colon advised his customers on how to fill the fraudulent prescriptions, including instructing them to wait until the medical practice was closed so that Colon would be able to answer any phone calls from the pharmacies questioning the validity of the fraudulent prescriptions.
The count of distributing controlled dangerous substances carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents with the FBI Newark Division, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Douglas Korneski with the investigation leading to today’s arrest. He also thanked the FBI Newark Health Care Fraud Task Force, whose members include the Galloway Township and Middle Township Police Departments, as well as the Cape May County Prosecutor’s Office, for their assistance on this investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Buffalo Man Pleads Guilty to Being an Armed Drug TraffickerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney James P. Kennedy Jr. announced today that Erin Cameron, 28, of Buffalo, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiring to possess with intent to distribute, and distributing, 100 grams or more of heroin, and 10 grams or more of fentanyl, and possessing a firearm in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $5,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between July 2018, and December 30, 2018, the defendant conspired with others to sell heroin and fentanyl. During the course of the conspiracy, Cameron supplied another co-conspirator with butyryl fentanyl for future sale.
On October 22, 2018, an individual cooperating with law enforcement set up a controlled purchase of suspected heroin or fentanyl with the defendant. That individual then purchased butyryl fentanyl from an associate of Cameron.
On December 30, 2018, the defendant drove with others from Buffalo to Salamanca, NY to distribute narcotics in and around the Salamanca area. Cameron carried a pistol with six rounds of ammunition, as well as several packages of narcotics including acetyl fentanyl, crack cocaine, and oxycodone. The Salamanca Police stopped the vehicle in which the defendant was a passenger, and recovered the firearm and the controlled substances on Cameron’s person.
The plea is the result of an investigation by the Bureau of Indian Affairs, Office of Justice Services, under the direction of Deputy Bureau Director Charles Addington; the Southern Tier Drug Regional Task Force, under the direction of Cattaraugus County Sheriff's Office Lieutenant Ronald Lott; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Salamanca Police Department, under the direction of Chief Troy Westfall.
Sentencing is scheduled for October 13, 2020, at 2:00 p.m. before Judge Sinatra.
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Buffalo Man and Woman Indicted on Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney James P. Kennedy Jr. announced today that a federal grand jury has returned an indictment charging Frankie Cook, 26, and Shawntee Ellison, 26, both of Buffalo, NY, with narcotics conspiracy, possessing with intent to distribute 100 grams of heroin and 40 grams of fentanyl, maintaining a drug-involved premises, and possession of a firearm in furtherance of drug trafficking offenses. The charges carry up to 65 years in prison. In addition, defendant Cook is charged with being a felon in possession of a firearm.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that according to the indictment, in February 2020, the defendants conspired with others to possess with intent to distribute heroin and fentanyl, and used a residence on Dartmouth Avenue in Buffalo to manufacture, use, and distribute the controlled substances. Cook and Ellison also possessed a firearm in furtherance of their drug trafficking activities. On February 11, 2020, in Erie County Court, Cook was convicted of a felony and is legally prohibited from possessing a firearm.
The indictment is the result of an investigation by the Erie County Probation Department, under the direction of Commissioner Brian McLaughlin; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Boston Man Sentenced to 120 Months for Transportation of a Minor for SexRead the Press Release
CONCORD - Dagoberto Duarte Espinal, 23, of Boston, Massachusetts, was sentenced to 120 months in federal prison for transportation of a minor for the purpose of sexual activity, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on June 10, 2018, the Londonderry Police Department was informed that a 13-year-old female was missing. Officers responded to her residence to investigate. During the investigation, the Londonderry officers were told that the minor female had been communicating with a man online and that they had made plans to meet.
The mother of the minor female received a call from Duarte Espinal telling her that he had taken her daughter to Boston. A law enforcement officer spoke with Duarte Espinal who said the minor female had been dropped off at a bus station. Boston police officers were notified and officers were able to locate the minor female.
On July 3, 2018, Duarte Espinal was arrested by police officers in Boston. Duarte Espinal later admitted that he had picked up the minor female in New Hampshire and driven her to Massachusetts, where they engaged in sexual activity.
Duarte Espinal pleaded guilty on March 12, 2020. After serving his sentence, he faces possible deportation to Honduras.
“Those who use the internet to prey upon children pose a serious threat to public safety,” said U.S. Attorney Murray. “This defendant’s reprehensible conduct merits the substantial sentence imposed by the court. We will continue to work closely with our federal, state, and local law enforcement partners to identify, prosecute, and incarcerate those who victimize children in the Granite State.”
“Homeland Security Investigations (HSI) is strongly committed to pursuing child predators who use the internet to prey on their victims, especially in light of the increased levels of online activity by all age groups in recent months,” said Michael Shea, acting Special Agent in Charge, Homeland Security Investigations (HSI) Boston. “It’s only through the critical teamwork of our law enforcement partners in the Internet Crimes Against Children Task Force (ICAC) and the U.S. Attorney for New Hampshire that HSI was able to help bring about the conviction of this dangerous child predator who is now no longer free to roam the streets of our communities.”
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston, the Internet Crimes Against Children Task Force, the Londonderry Police Department, and the Boston Police Department. The case was prosecuted by Assistant U.S. Attorney Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Beaver County Man Sentenced to 10 Years in Prison for Possessing Videos of Him Sexually Exploiting a MinorRead the Press Release
PITTSBURGH - A resident of Rochester, Pennsylvania, has been sentenced in federal court to 10 years (120 months) in prison to be followed by seven years of supervised release on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Elijah Winchester, 23.
According to information presented to the court, Winchester possessed 14 graphic videos in which he and a 14 year-old female minor victim were engaged in sexual activity. The Court was also informed that Winchester had started engaging in sexual activity with the minor when she was just 13 years old and that this conduct lasted for months prior to his arrest.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Western Pennsylvania Violent Crimes Against Children Task Force, the Beaver Police Department and the Beaver County District Attorney’s Office for the investigation leading to the successful prosecution of Winchester.
Baltimore Heroin Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Branden Jones, age 21, of Baltimore, yesterday to 10 years in federal prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Jones’ plea agreement, between January 2017 and December 13, 2018, Jones conspired with others to distribute heroin and fentanyl in Baltimore and elsewhere. Specifically, Jones admitted that he participated in a drug trafficking organization that operated a “drug shop” in the 1400 block of Kuper Street and in the area of West Pratt and South Calhoun Streets, all in South Baltimore. Jones and other members of the organization conducted hand-to-hand sales of drugs to customers in those areas. Jones was captured on video surveillance of the drug shop participating in the drug distribution activities. Jones also discussed his participation in the drug shop’s activities on recorded telephone calls.
During one of the recorded telephone calls, Jones discussed “doing 52 today,” which was a reference to selling 52 packs of heroin or fentanyl, and stated that he “made like $1200 today,” a reference to his drug trafficking proceeds. A pack typically contains 50 doses of heroin or fentanyl. Jones continued during the phone call by saying that he had possessed a Hi-Point firearm in furtherance of drug trafficking. Finally, Jones also collected drug proceeds from lower-level members of the organization and posted pictures of himself with large amounts of cash on his social media accounts.
Jones admitted that as a result of his participation in the organization, it was reasonably foreseeable to him that members of the conspiracy would distribute between one and three kilograms of heroin. Eighteen other defendants were also convicted as members of the organization. Seven, including Jones, have been sentenced to between 70 months and 11 years in federal prison and twelve others are awaiting sentencing.
United States Attorney Robert K. Hur praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary Stendig, Charles Austin, and Michael Hanlon, who prosecuted the case.
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Bakersfield West Side Crip Member Sentenced to over 20 Years in Prison for Narcotics TraffickingRead the Press Release
FRESNO, Calif. — Tommie Thomas, 37, of Bakersfield, was sentenced by U.S. District Judge Dale A. Drozd on Tuesday to 20 years and six months in prison for distribution of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Dec. 14, 2017, after a 10-month investigation, more than 35 members and associates of the West Side Crips, a local criminal street gang, were arrested on federal and state charges including burglary, illegal gun possession, drug sales, and murder. On April 4, 2019, a second superseding indictment charged Thomas, a West Side Crip member also known as “Tapp,” and co-conspirators with drug trafficking offenses. Since the December 2017 arrests, all defendants in federal custody have either been convicted of or have pleaded guilty to charged offenses.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Justice, the Bakersfield Police Department and the Drug Enforcement Administration. Assistant U.S. Attorneys Angela Scott and Thomas Newman are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Arthur Ranney Sentenced to 97 Months in Prison Following Conviction for Possession with Intent to Distribute MethamphetamineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on June 8, 2020, United States District Judge William K. Sessions III sentenced Arthur Ranney to 97 months in prison following his guilty plea to possession with intent to distribute five grams or more of methamphetamine. Ranney’s offense involved over 300 grams of high-purity methamphetamine, a highly-addictive and dangerous stimulant.
According to Court records, on September 17, 2018, University of Vermont Police conducted a traffic stop on a vehicle operated by Ranney. Execution of a search warrant for the vehicle resulted in the seizure of 21.7 grams of 97% pure methamphetamine. On December 27, 2018, South Burlington Police encountered Ranney in his vehicle. A search warrant of the vehicle resulted in the seizure of 240.2 grams of 98% pure methamphetamine. Finally, on January 6, 2019, law enforcement personnel with the Drug Enforcement Administration and South Burlington Police arrested Ranney outside a hotel room in South Burlington, Vermont where he was staying. Execution of a search warrant for the room led to the seizure of another 49.1 grams of 92% pure methamphetamine, as well as $1,800 in U.S. currency.
For his crime, Ranney was subject to a mandatory minimum sentence of 60 months. The 97-month sentence imposed by Judge Sessions considered the large quantity of methamphetamine Ranney possessed, as well as the danger posed to the Vermont community by methamphetamine.
“In recent years in New England, we have seen increasing amounts of highly-potent methamphetamine that is manufactured in Mexico,” said United States Attorney Christina Nolan. “We will do all we can to keep this deadly and highly addictive substance out of Vermont, including aggressively prosecuting traffickers, working with our outstanding partners at DEA and in state and local law enforcement.”
“As methamphetamine seizures are on the rise DEA stands committed to keeping this highly addictive drug out of Vermont,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Ranney accountable for his crimes but serves as a warning to those who attempt to distribute this poison in the Green Mountain State.”
South Burlington Police Chief Shawn Burke added, “The growing prevalence of this highly addictive drug in our community is cause for concern. Ranney’s conduct is that of a drug profiteer, not that of a person wrestling with substance abuse disorder. Our partnership with Federal law enforcement and the United States Attorney is valuable, holding defendants such as Ranney accountable is an important element of public safety.”
The case was prosecuted by Assistant U.S. Attorney John J. Boscia. Ranney was represented by Assistant Federal Public Defender Elizabeth K. Quinn.
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.
Armed home invasion over heroin sends Helena man to prisonRead the Press Release
HELENA—A Helena man who admitted sending threatening text messages and participating in an armed robbery of a couple involved in heroin trafficking last year was sentenced today to 11 years and seven months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Kielan Brett Franklin, 34, pleaded guilty in January to robbery affecting commerce and possession of a firearm in furtherance of violence.
U.S. District Judge Sam E. Haddon presided.
The prosecution said in court records that Franklin provided a couple with $1,200 to go to Washington to buy an ounce of heroin. The couple returned with less than an ounce because the price was higher in Washington. When the couple did not immediately give Franklin the heroin, Franklin began sending the couple threatening text messages on March 7, 2019.
Several hours later, on March 8, 2019, Franklin's girlfriend and co-defendant, Arielle Rose Cowser, knocked on the couple's door and said she needed to enter because Franklin had broken up with her. The female victim let Cowser enter and a short time later, Cowser let in Franklin and two other co-defendants, Gerald Allen Hiler and Morgan Victor Pitsch.
Hiler brandished a handgun and Pitsch possessed one during the robbery. Both wore masks. The defendants fled when they realized the female victim had called 911. The robbers took a small amount of heroin, the female victim’s wedding ring, her cell phone and a purse.
Hiler and Pitsch pleaded guilty to charges in the case. Hiler was sentenced to 11 years and seven months in prison, while Pitsch was sentenced to six years and six months in prison. Cowser was convicted by a jury of charges for her role in the crime and was sentenced to one year and one day in prison.
Assistant U.S. Attorneys Tom Bartleson and Tim Racicot prosecuted the case, which was investigated by FBI, Montana Regional Violent Crime Task Force, Lewis and Clark County Sheriff’s Office and Missouri River Drug Task Force.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Approximately $2.25 Million in U.S. Currency Seized in Joint Federal Maritime Operation off the Western Coast of St. ThomasRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that On June 10, 2020, Department of Homeland Security (DHS) Customs Border Patrol-Air Marine Operation (CBP-AMO) personnel reported that while on duty in the western vicinity of St. Thomas, U.S. Virgin Islands, they spotted a vessel travelling towards St. Thomas from Puerto Rico without navigational lights. CBP-AMO officers observed two subjects on the unknown vessel, which was described as a 25’ twin engine “yola,” tossing duffle bags overboard as CBP-AMO approached. Federal law enforcement officers engaged in apprehension efforts and attempted to board the unidentified vessel.
The vessel was able to evade law enforcement during the pursuit, however, DHS and CBP-AMO officers later recovered four duffel bags that had been thrown overboard. A search of the four recovered duffel bags revealed approximately $2.25 million in bulk U.S. currency that was vacuum sealed within numerous bundles of plastic wrappings. This seizure is part of an ongoing joint federal initiative between the United States Attorney’s Office District of the Virgin Islands, HSI, DEA, FBI, ATF, IRS-CI and CBP-AMO as part of the Organized Crime Drug Enforcement Task Force (OCDETF) which is focused on disrupting and dismantling drug trafficking organizations in the Caribbean and which seeks to seize and forfeit the proceeds of criminal activity.
Tuesday 16 June 2020
Yadkinville Man Sentenced to 26.5 Years in Federal Prison for Armed Robbery and Arson at Clemmons Convenience StoreRead the Press Release
GREENSBORO, N.C. - On Thursday, June 11, 2020, a judge in federal district court sentenced a High Point resident, DAVID CURTIS SMITH, to a 319-month prison term, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
SMITH, age 59, pleaded guilty on October 17, 2019, to all four charges in the Indictment, including Hobbs Act robbery, carjacking, use of a firearm during and in relation to a crime of violence, and arson.
Evidence in the records shows that on October 20, 2018, between approximately 9:30 and 9:45 p.m., SMITH and an accomplice entered the Stop and Shop Mart in Clemmons, North Carolina, as the store clerk was cleaning and preparing to close for the night. The accomplice told the clerk to open the cash register. When the clerk refused, SMITH brandished a pistol and told the clerk to do what they said. The clerk complied and opened the cash register. The clerk was held at gunpoint while the other suspect stole cash and over $1,000 in tobacco products. The suspects then bound the clerk’s hands and feet with zip ties and moved him to the back office. One of the suspects then doused the victim and the back office in diesel fuel. One of the suspects then lit a paper towel with a lighter and threw it onto the fuel. The two suspects then poured more diesel fuel onto the floor of the store and attempted to set the store on fire. The suspects then took the victim’s car keys. Prior to leaving, they locked the security gates at the front of the store, using a chain and padlock. One of the suspects stole the victim’s 2011 Ford pickup truck that was parked outside.
The store clerk was able to break the zip ties around his legs and get to the front door. After he saw the suspects leaving, he was able to get between the doors and the security gates to yell for help. Early in the morning of October 21, 2018, the clerk’s truck was located on an access ramp to Interstate 40 near Farmington Road and Rainbow Road. The interior of the vehicle was soaked with diesel fuel and there was material smoldering on the front seat and in the gasoline fill pipe.
SMITH and his accomplice were arrested on November 2, 2018, in Whytheville, Virginia.
At sentencing, United States District Court Judge Loretta C. Biggs imposed an aggregate 235-month prison term on three of the four counts, and an 84-month term for brandishing a weapon, to run consecutive to all prior sentences. SMITH was also ordered to pay $366,989.07 in restitution and to serve a 5-year period of federal supervised release.
The case was investigated by the Forsyth County Sheriff’s Office, Forsyth County Fire Marshal Office, North Carolina State Highway Patrol, Wythe County (Virginia) Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Graham T. Green.
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Woman admits tampering with witness in child sexual coercion caseRead the Press Release
SAVANNAH, GA: A Bryan County woman admitted in federal court to attempting to persuade a victim to recant allegations that the woman’s husband had coerced a minor for sex.
Lori Wilson, a/k/a “Loretta Lightningbolt,” 35, pled guilty in U.S. District Court to Tampering with a Victim or Witness, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a possible sentence of up to 20 years in prison, followed by up to five years of supervised release.
There is no parole in the federal system.
“The facts in this case are disturbing, especially when you consider the defendant relentlessly worked to persuade a minor victim to recant serious allegations of sexual misconduct by an adult,” said U.S. Attorney Christine. “But we will be even more relentless in pursuing justice for vulnerable victims of child predators.”
Wilson’s husband, Michael Wilson, 37, is charged in the Southern District of Georgia with one count each of Coercion and Enticement of a Minor to Engage in Sexual Activity, and Attempted Coercion and Enticement of a Minor to Engage in Sexual Activity, and currently is awaiting trial. According to court documents and testimony, Michael Wilson is accused of attempting to coerce a minor victim to engage in sexual activity from 2017 through early 2019. Additionally, Michael Wilson is charged with seven violations of the Uniform Code of Military Justice, Article 120(b), Rape and Sexual Assault of a Child. These charges relate to multiple minor victims.
After the minors reported the information to authorities, Lori Wilson admitted intimidating and persuading one of the victims to withhold information from authorities, trying to persuade the victim that the minor’s experiences were “psychic visions” or “dreams,” and to communicate false information to agents of the Army Criminal Investigation Command, among others.
“This defendant tried to manipulate a child from telling the truth about being sexually victimized by another adult,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No sentence can wipe away the scars those actions left on this child, but hopefully it will send a message to anyone who contemplates preying on our most vulnerable citizens.”
The cases are being investigated by the FBI and by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Special Assistant U.S. Attorney Katelyn Semales and Assistant U.S. Attorney Jennifer G. Solari.
U.S. Attorney Wrigley Announces Life in Prison Sentence for a Belcourt, ND, Man Convicted of Aggravated Sexual Abuse of ChildrenRead the Press Release
Fargo – United States Attorney Drew Wrigley announced that Myron Jay Azure, Age 51 of Belcourt, ND, has been sentenced to serve life in prison for two counts of Aggravated Sexual Abuse of Children. Azure pled guilty to both counts of Aggravated Sexual Abuse on February 14, 2020, and was sentenced by United States District Court Chief Judge Peter D. Welte on June 15, 2020.
"The children whom Azure sexually abused will always know that the justice system stood firmly at their side and fought to ensure that this defendant will never again hurt another child," said US Attorney Drew Wrigley, "Justice has been done".
Between October 2014 and January 2017, Azure abused one of the two child victims on the Turtle Mountain Indian Reservation. While that investigation was pending, between May 2019 and August 2019, Azure sexually abused a second child. Both children were under the age of 12 at the time of Azure’s sexual abuse.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, and was prosecuted by Assistant United States Attorney Lori H. Conroy.
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U.S. Attorney McSwain Announces Charges Against Massachusetts Man for Sending Racist, Threatening Emails to the Philadelphia Police CommissionerRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Peter Fratus, 39, of West Dennis, Massachusetts, was arrested and charged by criminal complaint with sending threatening emails to Philadelphia Police Commissioner Danielle Outlaw, in violation of 18 U.S.C. § 875, which prohibits transmitting threatening communications in interstate commerce.
After his arrest, Fratus made his initial appearance today in the U.S. District Court for the District of Massachusetts, prior to his transfer to the Eastern District of Pennsylvania. The U.S. Attorney’s Office for the Eastern District of Pennsylvania will also be filing a motion seeking detention of the defendant pending trial.
The criminal complaint in this case alleges that on June 6, 2020, the defendant sent two emails to the Philadelphia Police Commissioner’s email address. Both emails allegedly contained racist, offensive, and threatening language, with one communication asking where Commissioner Outlaw lives. The complaint further states that an investigation by the FBI determined the originator of the emails was Fratus and forensic evidence reinforced that Fratus sent both emails.
“As alleged in the criminal complaint, Peter Fratus’ racist threats towards Commissioner Outlaw were vile and disturbing,” said U.S. Attorney McSwain. “We take such threats very seriously, and let this be a warning to anyone who might feel the urge to fire off an online threat directed at a public official: we will trace your digital footprint, track you down and hold you accountable.”
“While the First Amendment gives us the right to express our own opinions, violent physical threats are certainly not protected speech,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “When someone threatens the life of another person, it’s a clear red flag and we have to take their despicable words at face value. Today’s arrest of Peter Fratus demonstrates the FBI’s resolve to investigate and bring to justice anyone who crosses this line.”
If convicted, the defendant faces a maximum possible sentence of five years in prison, three years of supervised release, and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Robert Livermore.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Keefe Joins Department of Justice in Observing 15th Annual World Elder Abuse Awareness DayRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida,
joins Attorney General William P. Barr and the entire Department of Justice in observing the 15th
Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning
elder abuse, neglect, and exploitation.“The Northern District of Florida is home to more than 300,000 residents age 65 and older, and they
have earned the loving support of all our communities,” U.S. Attorney Keefe said. “The sad truth is
that some people see these elders as a prime target, someone they can take advantage of, and we are
committed to stopping them and pursuing justice for our older neighbors.”The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among
those most severely affected by the threat of the coronavirus are our senior citizens. During this
time when seniors are most vulnerable and often isolated from their families and loved ones by
social distancing and quarantine restrictions, bad actors have jumped in to exploit this
international tragedy by preying on the elderly through a host of scams and fraud schemes. As the
world takes this day to remember the elderly during these uncertain times, the Department of
Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to
prevent and prosecute fraud against America’s seniors.The Department will aggressively prosecute fraudsters exploiting the COVID-19 pandemic and
targeting seniors through such ploys as offering them fake testing kits and fake help in obtaining
stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors,
the U.S. Attorney’s Office and the Department of Justice are sending a strong message that they
continue the fight to keep seniors safe as a top priority.Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder
Fraud” to be an Agency Priority Goal, making it one of the Justice Department’s four top
priorities.Major strides have already been made to that end:
• National Elder Fraud Hotline: 833-FRAUD-11
Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by
experienced case managers who provide personalized support to callers, the hotline serves to assist
elders and caretakers who believe they have been a victim of fraud by reporting and providing
appropriate services.• Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest
coordinated sweep of elder fraud cases in department history. The Department, together with every
U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through
fraud schemes that largely affected seniors. In the Northern District of Florida, three Tampa
Bay-area men – Edward Newton, 45, of Lutz, Christopher Mayes, 29, of Tarpon Springs, and Christian
Pantazonis, 31, of Largo – pled guilty to charges of defrauding elderly Northwest Florida
homeowners whose homes suffered damage from Hurricane Michael. The men fraudulently
contracted to make home repairs in the Panama City area but instead, stole approximately
$319,000 in down payments. The Tampa Bay-area company owned by Newton hired Mayes and
Pantazonis in November 2018 to go door to door in Bay County soliciting home repair contracts.
They promised that the repair work would begin immediately, telling homeowners they required a
down payment to obtain building materials and permits or to “place the homeowner at the front of the
line” for repairs. As part of the fraud, they occasionally sent workers to complete small projects, such
as removing damaged drywall or replacing shingles, in order to lead the homeowners to believe the
major repairs were underway. When homeowners began to complain about the lack of work, Newton
told them in writing or by phone that he would return the money he collected for the work never
performed. However, on May 25, 2019, he sent each homeowner a letter stating that he did not intend
to complete any of the contracted work and would not return any money.
• Money Mule Initiative: In October 2018, the Department and its law enforcement partners began a
concentrated effort across the country and around the world to disrupt, investigate, and prosecute
money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens.
In 2019, actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a
similar effort against approximately 400 mules in the previous year. In the Northern District of
Florida, three Bay County men – Delroy Williams, 52, of Lynn Haven, Vivian Walters, 33, of Lynn
Haven, and Jevaughn Williams, 22, of Panama City Beach – were sentenced on federal fraud charges
stemming from activities meant to induce elderly victims with false promises of sweepstakes prizes.
Since the late 1990s, telemarketers in Jamaica have been engaging in a scam in which they contact
victims in the United States and falsely claim their targets have won large sweepstakes prizes.
Victims, who are primarily elderly, are induced to send cash or cash equivalents in order to
release their supposed prizes. The victims’ funds are often transported by wire transfers and
United States Postal Service packages. Between 2014 and 2017, the defendants conspired together to
receive wire transfers and packages mailed by victims. They then took a percentage of the funds for
themselves before forwarding the remainder to co-conspirators in Jamaica. Multiple victims have
been identified through wire transfer records and searches of the defendants’ electronic devices.For more information on enforcement actions, training and resources, research, and victim
services, please visit www.justice.gov/elderjustice.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
available public court documents online, please visit the U.S. District Court for the Northern
District of Florida website. For more information about the United States Attorne ’s Office for
the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.U.S. Attorney Erin Nealy Cox Testifies Before Senate Judiciary CommitteeRead the Press Release
U.S. Attorney for the Northern District of Texas Erin Nealy Cox testified before the Senate Judiciary Committee on Tuesday, June 16. You can watch the full hearing -- entitled "Police Use of Force and Community Relations" -- here.
Below is the U.S. Attorney's prepared opening statement:
Good afternoon Chairman Graham, Ranking Member Feinstein, and members of the Committee; thank you for inviting us to testify today. I also want to thank my home state Senators, Senators Cornyn and Cruz, for their unwavering support all our efforts in my District.
I am Erin Nealy Cox, United States Attorney for the Northern District of Texas and Chair of the Attorney General’s Advisory Committee. In those roles, I’m proud to serve as the chief federal law enforcement officer for more than 8 million Texans, as well as an advocate for prosecutorial priorities nationwide.
I know I’m appearing at a time of great turmoil in this country. I start with this: Police brutality in any form is repugnant and unacceptable. It is impossible not to feel anger and sadness when watching the video of George Floyd’s tragic killing. Actions like this and others we have witnessed rightly erode trust in law enforcement as a whole and tarnish the badge of the vast majority of officers who serve honorably.
It’s vital that law enforcement speak out against officers who bring great dishonor upon the profession. At the Department, our character and commitment to justice compel us to speak out as well as listen to and empathize with those who suffer the most when law enforcement falls short in our duty to protect them. So on behalf of the 93 United States Attorneys, we condemn this conduct and we commit to be united, determined, deeply engaged, and thoughtful in our collective efforts to help bring about meaningful change on the issues at this moment in history. We steadfastly join with the Attorney General and the Deputy Attorney General in their commitment to restore confidence in the American criminal justice system for all.
Mr. Floyd’s death, and the resulting outrage, tears at the very fabric of our communities. This divide is particularly disheartening to me, because for the past two years, in my District we’ve been spearheading a public safety program built on the notion that positive, meaningful relationships between police and the people they serve can transform struggling communities. Project Safe Neighborhoods – the cornerstone of DOJ’s anti-violent-crime strategy – can help us ensure equal justice under the law.
We launched our first PSN project in Dallas in April 2018, targeting a neighborhood that – for decades -- was plagued by violent crime. As with any law enforcement initiative, one of PSN Dallas’s goal was to root out offenders – members of violent gangs, and drug traffickers who terrorized residents daily.
Importantly though, we felt that we needed to build relationships of trust within the community for our program to be successful. So we deployed a consistent and compassionate team of Officers and Agents that earnestly wanted to form relationships with the people in the neighborhood. And we took steps to foster a community that felt empowered to approach our officers for help – with the assurance that they would be met with respect.
To accomplish this, we took several steps:
- We’ve hosted more than 100 community meetings with neighborhood groups, apartment managers, faith leaders, and school teachers to share our vision for the neighborhood and solicit advice on how to achieve it.
- Based on community feedback, our PSN task force worked to shut down seedy convenience stores, game rooms, and other establishments that were spawning crime.
- And we’ve used important grant money to implement what’s called “crime prevention through environmental design,” working with a non-profit organization to redesign a central community square. This vibrant plaza now boasts a mini-lending library, recreation tables, and a child’s craft area. Since completion of the project, the plaza hasn’t seen a single act of violence.
Our PSN engagement has yielded real results. Even as Dallas’ citywide crime rate increased dramatically, inside the PSN area, violent crime decreased. Community members have been vocal in their support.
USAs across the country are having similar success stories and success breeds success. And so we launched programs out of our other district offices – in Amarillo, Lubbock, and elsewhere.
The results have been undeniably positive. In its first year, PSN Amarillo achieved a 13% reduction of violent crime inside the targeted areas, and PSN Lubbock, using the same community-based approach, achieved a 26% reduction in aggravated assaults, and a 25% reduction in business robberies.
That is tangible results: violence going down, trust within the community is coming up, and lives impacted for the better.
The people of these communities have joined together with law enforcement – united in a singular goal. I have witnessed it working first hand in the communities we serve.
I look forward to telling you more about my experience and answering your questions.
For more on the Northern District of Texas' Project Safe Neighborhoods initiatives, click here.
U.S. Attorney David J. Freed Observes the 15th Annual World Elder Abuse Awareness DayRead the Press Release
HARRISBURG – U.S. Attorney David J. Freed joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day on June 15, 2020. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
“Because of the COVID-19 pandemic, it is more important this year than perhaps ever before to bring awareness to elder abuse, neglect and exploitation,” said U.S. Attorney Freed. “As lockdowns and social distancing have limited interaction between people, this crisis has created numerous opportunities for scammers to prey on our most vulnerable citizens. While the scams may have different names and use different methods, the goal remains the same: to separate law abiding citizens from their money. In the Middle District of Pennsylvania we are proud to prioritize and prosecute elder fraud cases of all types. I urge everyone to report these scams so that we can take down these brazen criminals.”
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.
Major strides have already been made to that end:
- National Elder Fraud Hotline: 833-FRAUD-11 Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
- Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
- Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors, including two cases in the Middle District. One being:
- Omoefe Okoro, age 48, a citizen of Canada, was charged in the Middle District of Pennsylvania. Okoro and others are alleged to have engaged in an attorney “collection scam” in Ontario, Canada, and elsewhere. In particular, Okoro and his co-conspirators are alleged to have conducted a scheme in which they contacted businesses and individuals, including elderly victims, and requested, among other things, to collect an outstanding debt. The suspects, posing as the third party, then sent a counterfeit check to the victim for deposit and requested that the victim wire funds to an account overseas, typically in Japan, South Korea, or China. Canada surrendered Okoro to the United States on Aug. 29, 2018. Okoro is currently scheduled for trial on August 3, 2020.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year. The Middle District disrupted such a case in June 2019:
- Anthony W. Redd, age 63, of Allentown, Pennsylvania, was charged in the Middle District of Pennsylvania. It is alleged that Redd was a “Money Mule” and participated in a scheme to defraud individuals out of money by making them believe they were eligible for cash and other prizes. As part of the scheme, Redd is alleged to have caused the mailing of legitimate postal money orders from Mechanicsburg to his address in Allentown, Pennsylvania, and to have converted the known proceeds of the scheme to cash or to have sent the proceeds through Western Union or MoneyGram to Costa Rica. Redd is currently scheduled to plead guilty on July 1, 2020.
- Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams. One such case that the Middle District recently prosecuted was:
- Jenmariey Burchell, a 26-year-old Jamaican citizen for her part in a scheme to defraud senior citizens that were falsely told they had won multi-million dollar international sweepstakes prizes. The purported winners were directed to send Western Union and MoneyGram money transfers, money orders and checks to persons known as “money mules,” ostensibly to pre-pay taxes and other fictitious expenses, in order to collect the non-existent cash prizes. Burchell enlisted the “money mules” to receive and transfer the fraud proceeds to him and other conspirators in Jamaica. Burchell ultimately received a sentence of 51 months’ imprisonment on November 12, 2019.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
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U. S. Attorney Kelly and S. A. C. Johnson Announce the Unsealing of Scam Indictments and Treasury Sanctions Against Nigerian NationalsRead the Press Release
United States Attorney Joe Kelly and Kristi K. Johnson, Special Agent in Charge of the Omaha field office of the Federal Bureau of Investigation, announced the unsealing of indictments charging six Nigerian nationals for their involvement in Business Email Compromise (BEC) schemes. The schemes included individual victims and victim businesses both in Nebraska and other states. BECs are sophisticated cyber crimes involving electronic transfer payments or automated clearinghouse transfers.
The indictments charge the defendants with one or more of the following violations of federal law: 1) Conspiracy to commit wire fraud and wire fraud, punishable by up to 20 years of imprisonment and a fine of up to $250,000; 2) Identity theft and access device fraud, each punishable by up to 10 years of imprisonment and a fine of up to $250,000. The Nigerian nationals charged and still at large are: Richard Uzuh; Micheal Olorunyomi; Alex Ogunshakin; Felix Okpoh; Abiola Kayode and Nnamdi Benson. An indictment is a formal accusation returned by a grand jury upon establishing probable cause. The indictment is not evidence of guilt and defendants are entitled to a presumption of innocence. Two related defendants have entered pleas of guilty. Adewale Aniyeloye was sentenced in the District of Nebraska to 96 months’ imprisonment for wire fraud. Onome Ijomone received a 60 month sentence for conspiracy to commit wire fraud. The unsealed indictments are attached.
Indictment 1 Indictment 2 Indictment 3Because of the BEC scheme set forth in the unsealed indictments the Department of Treasury’s Office of Foreign Asset Control (OFAC) has taken the extraordinary step of imposing financial sanctions on each of the six fugitives. As a result of the sanctions, all property and interests in property held by these individuals and subject to U.S. jurisdiction are blocked and other persons are blocked from engaging in financial transactions with these fugitives.
United States Attorney Joe Kelly thanked the efforts of the Omaha FBI and more particularly the excellent work of the FBI Omaha Field Office Cyber Task Force. He cautioned the public that every day we see victims ranging from the elderly losing their accumulated life’s savings, to large scale businesses falling prey to BEC, romance, COVID and any number of other opportune scams. Additionally, if the public has any information regarding the current whereabouts of the six fugitives please call law enforcement immediately.
Special Agent in Charge Johnson noted, “The FBI is working every day to disrupt and dismantle the criminal enterprises that target our businesses and our citizens. Today’s charges are another successful example of our commitment to working together with our foreign colleagues abroad and we’re sending a strong message to the criminals who perpetrate these BEC schemes. We will continue coming after you, no matter where you are. And to the public, we will keep doing everything we can to protect you.” FBI Omaha Special Agent Jacob Foiles will be available for questions regarding the Business Email Compromise investigation. The media availability will be at 3:00 pm TODAY at FBI headquarters, 4411 S. 121st Court. If you plan to attend, please email FBI Public Affairs, [email protected] for instructions for entering the property.
This case was investigated by the Federal Bureau of Investigation. The law enforcement actions taken related to these prosecutions were assisted by the efforts of law enforcement counterparts from Nigeria. The Department of Justice and the Federal Bureau of Investigation wish to thank their partners in Nigeria, particularly the Economic and Financial Crimes Commission, the Federal Ministry of Justice, and National Central Bureau, Abuja – INTERPOL (Nigeria Police Force), for their past and continued assistance in pursuing those that engage in Business Email Compromise and other fraud schemes.
Wanted posters attached to this release contain additional details about the six individuals still at large.
RICHARD IZUCHUKWU UZUH ALEX AFOLABI OGUNSHAKIN MICHEAL OLORUNYOMI FELIX OSILAMA OKPOH ABIOLA AYORINDE KAYODE NNAMDI ORSON BENSONTwo Defendants Charged with Murder and Aiding and Abetting in Slaying of Federal Protective Service Officer at Oakland Courthouse BuildingRead the Press Release
At a press conference held this morning at the Ronald V. Dellums Federal Building and U.S. Courthouse in Oakland, the Department of Justice announced that murder and attempted murder charges have been filed against Steven Carrillo, the alleged gunman in the May 29, 2020, drive-by shooting that resulted in the death of Protective Security Officer David Patrick Underwood and injuries to a second security officer. The Department of Justice also announced aiding and abetting charges against Robert Alvin Justus Jr., the driver of the vehicle from which Carrillo is alleged to have attacked the guards.
“Liberty flourishes in the rule of law,” said Assistant Attorney General for National Security John C. Demers. “Indiscriminate targeting of law enforcement officers by those motivated by violent extremism of any stripe is contrary to our nation’s values and undermines the powerful message of peaceful protestors. The Department of Justice stands in support of all Americans exercising their First Amendment rights to peaceable assembly and speech but we stand firmly against anyone who seeks to hijack the protests with acts of violence and destruction.”
“I applaud the agents and officers who investigated and captured those responsible for the attack on Federal Protective Service officers resulting in the death of Officer Underwood and serious injury of Officer Mifkovic,” said Department of Homeland Security Acting Secretary Chad Wolf. “As the nation's largest law enforcement organization, the Department's top priority is protecting the American people and our workforce, and we are not going to rest until these criminals are brought to justice. The assassination and injury of federal officers who swore an oath to protect the American public will not be tolerated. The Department of Homeland Security will continue its mission to end violent extremism in any form.”
“Pat Underwood was murdered because he wore a uniform,” said U.S. Attorney Anderson, “but he was much more than just the uniform he wore. Pat Underwood was a brother, a father, and a son. Many, many people will miss hearing the sound of his voice and laughter. Pat Underwood wore his uniform because it signified his authority to protect the courthouse where we are gathered here today. This courthouse exists to administer justice, to uphold the rule of law, and to protect the freedoms that we all cherish. In announcing today’s charges, we are reaffirming our determination to protect those who protect us.”
"These arrests are an important step for our community, the families of those who were killed in the line of duty, and our law enforcement partners, so that we may begin the healing process," said FBI San Francisco Special Agent in Charge John F. Bennett. "While we cannot bring Officer Pat Underwood and Sergeant Damon Gutzwiller back, we can hold those responsible for taking them from us accountable.”
“ATF immediately responded to these shooting incidents to make available our personnel to support our partners with the investigations into these crimes,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, ATF. “ATF provided investigative and forensic support throughout the investigation into these crimes. This included local special agents, as well as, laboratory and firearms enforcement officer resources from the greater Washington, DC area. ATF personnel examined firearm evidence and utilized our National Integrated Ballistic Information Network or NIBIN. The complaints describe the work ATF personnel performed to uncover the purported similarities between the recovered fired cartridge cases found at the Oakland and Ben Lomond homicides. These senseless crimes, which resulted in the tragic loss of Patrick and Damon and caused serious injuries to others, should not have occurred. ATF will continue to make available our resources and support to our partners throughout this investigation.”
The charges against Carrillo and Justus were brought in two criminal complaints, one filed against each defendant. According to the complaints, at approximately 9:27 p.m., on May 29, 2020, a white Ford Econoline-style van parked directly across the street from the federal building in Oakland on Jefferson Street. The van was parked facing the guard post where Officer Underwood and his partner that evening stood guard to protect the building. The van was on the southeast corner in the spot closest to the intersection with an unobstructed view of the guard post. Shortly after the van parked, a man emerged from the driver’s seat and walked around the area conducting reconnaissance for approximately ten minutes. Then, at approximately 9:43 p.m., the exterior lights of the van turned on and the van moved north on Jefferson Street toward the guard post. The passenger-side sliding door opened, and Carrillo allegedly fired multiple rounds from a firearm toward the guard post, killing Officer Underwood and injuring his partner.
The incident set off an eight-day manhunt that came to a crescendo after a witness reported an abandoned white Ford van in Ben Lomond, Calif. The van reportedly contained what appeared to be ammunition, firearms, and bomb-making equipment and an effort apparently was made to alter the van’s appearance with spray paint and a wheel covering to disguise a missing hubcap. Nevertheless, evidence from the van, led deputies from the Santa Cruz County Sheriff’s Office to Carrillo’s residence in Ben Lomond. There, Carrillo allegedly opened fire on the deputies when they arrived at his property, killing one deputy and injuring a second. During the attack there was also an explosion on the property.
The complaints describe a subsequent odyssey during which Carrillo was shot and fled the scene initially on foot, and then by carjacking a vehicle on a nearby highway. The chase came to an end when, still bleeding from his hip, Carrillo was taken into custody.
Additional evidence was recovered at Carrillo’s Ben Lomond residence included an AR-15-style short-barreled rifle fitted with a binary trigger that fired one round of 9mm ammunition at the pull of the trigger and another round at the release of the trigger. The rifle was fitted with a silencer that suppressed the sound of gunfire from the rifle. In addition, Carrillo appears to have used his own blood to write various phrases on the hood of the car that he carjacked. The phrases relate to an extremist ideology that promotes inciting a violent uprising through use of militias.
Cell phone records from Carrillo’s phone identified Justus as a person with whom Carrillo may have been communicating in the days leading up to the drive-by shooting attack in Oakland. On June 11, while the FBI had Justus under surveillance, travelled to the Federal Building in San Francisco, met with the FBI, and was thereafter arrested for his involvement in the shooting, including his role as the driver of the vehicle.
The charges contained in the criminal complaints are allegations only. Carrillo and Justus are presumed innocent until proven guilty beyond a reasonable doubt.
Carrillo is charged with one count of murder of a person assisting an officer or employee of the United States Government, in violation of 18 U.S.C. §§ 1114(1) and 1114(3) and one count of attempted murder under the same statutes. If convicted of the murder charge, the maximum statutory penalty for this charge is death. If convicted of the attempted murder charge, Carrillo faces a maximum statutory penalty of 20 years in prison, three years of supervised release, a $250,000 fine, and restitution. Justus is charged with aiding and abetting the murder and attempted murder and faces the same maximum statutory penalties. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
Justus made his initial appearance Monday, June 15, 2020, before U.S. Magistrate Judge Laurel Beeler, and was detained for further proceedings. His next appearance is scheduled for Friday, 10:30 am, before Magistrate Judge Kandis A. Westmore for identification of counsel and additional proceedings. An initial federal court appearance has not yet been scheduled for Carrillo.
The case is being prosecuted by United States Attorney for the Northern District of California David Anderson and the Oakland Branch of the Office of the United States Attorney with assistance from George Kraehe of the National Security Division’s Counterterrorism Section. The case is being investigated by the FBI, the ATF, the FPS, and the U.S. Marshal Service with assistance from the Oakland Police Department and the Santa Clara County Sheriff’s Office.
Two Defendants Charged with Murder and Aiding and Abetting in Slaying of Federal Protective Service Officer at Oakland Courthouse BuildingRead the Press Release
OAKLAND – At a press conference held this morning at the Ronald V. Dellums Federal Building and United States Courthouse in Oakland, the Department of Justice announced that murder and attempted murder charges have been filed against Steven Carrillo, the alleged gunman in the May 29, 2020, drive-by shooting that resulted in the death of Protective Security Officer David Patrick Underwood and injuries to a second security officer. The Department of Justice also announced aiding and abetting charges against Robert Alvin Justus, Jr., the driver of the vehicle from which Carrillo is alleged to have attacked the guards.
“Pat Underwood was murdered because he wore a uniform,” said U.S. Attorney Anderson, “but he was much more than just the uniform he wore. Pat Underwood was a brother, a father, and a son. Many, many people will miss hearing the sound of his voice and laughter. Pat Underwood wore his uniform because it signified his authority to protect the courthouse where we are gathered here today. This courthouse exists to administer justice, to uphold the rule of law, and to protect the freedoms that we all cherish. In announcing today’s charges, we are reaffirming our determination to protect those who protect us.”
“Liberty flourishes in the rule of law,” said Assistant Attorney General for National Security John C. Demers. “Indiscriminate targeting of law enforcement officers by those motivated by violent extremism of any stripe is contrary to our nation’s values and undermines the powerful message of peaceful protestors. The Department of Justice stands in support of all Americans exercising their First Amendment rights to peaceable assembly and speech but we stand firmly against anyone who seeks to hijack the protests with acts of violence and destruction.”
“I applaud the agents and officers who investigated and captured those responsible for the attack on Federal Protective Service officers resulting in the death of Officer Underwood and serious injury of his partner,” said Department of Homeland Security Acting Secretary Chad Wolf. “As the nation's largest law enforcement organization, the Department's top priority is protecting the American people and our workforce, and we are not going to rest until these criminals are brought to justice. The assassination and injury of federal officers who swore an oath to protect the American public will not be tolerated. The Department of Homeland Security will continue its mission to end violent extremism in any form.”
“These arrests are an important step for our community, the families of those who were killed in the line of duty, and our law enforcement partners, so that we may begin the healing process,” said FBI San Francisco Special Agent in Charge John F. Bennett. "While we cannot bring Officer Pat Underwood and Sergeant Damon Gutzwiller back, we can hold those responsible for taking them from us accountable.”
“ATF immediately responded to these shooting incidents to make available our personnel to support our partners with the investigations into these crimes,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, ATF. “ATF provided investigative and forensic support throughout the investigation into these crimes. This included local special agents, as well as, laboratory and firearms enforcement officer resources from the greater Washington, DC area. ATF personnel examined firearm evidence and utilized our National Integrated Ballistic Information Network or NIBIN. The complaints describe the work ATF personnel performed to uncover the purported similarities between the recovered fired cartridge cases found at the Oakland and Ben Lomond homicides. These senseless crimes, which resulted in the tragic loss of Patrick and Damon and caused serious injuries to others, should not have occurred. ATF will continue to make available our resources and support to our partners throughout this investigation.”
The charges against Carrillo and Justus were brought in two criminal complaints, one filed against each defendant. According to the complaints, at approximately 9:27 p.m., on May 29, 2020, a white Ford Econoline-style van parked directly across the street from the federal building in Oakland on Jefferson Street. The van was parked facing the guard post where Officer Underwood and his partner that evening stood guard to protect the building. The van was on the southeast corner in the spot closest to the intersection with an unobstructed view of the guard post. Shortly after the van parked, a man emerged from the driver’s seat and walked around the area conducting reconnaissance for approximately ten minutes. Then, at approximately 9:43 p.m., the exterior lights of the van turned on and the van moved north on Jefferson Street toward the guard post. The passenger-side sliding door opened, and Carrillo allegedly fired multiple rounds from a firearm toward the guard post, killing Officer Underwood and injuring his partner.
The incident set off an eight-day manhunt that came to a crescendo after a witness reported an abandoned white Ford van in Ben Lomond, Calif. The van reportedly contained what appeared to be ammunition, firearms, and bomb-making equipment and an effort apparently was made to alter the van’s appearance with spray paint and a wheel covering to disguise a missing hubcap. Nevertheless, evidence from the van led deputies from the Santa Cruz County Sheriff’s Office to Carrillo’s residence in Ben Lomond. There, Carrillo allegedly opened fire on the deputies when they arrived at his property, killing one deputy and injuring a second. During the attack there was also an explosion on the property.
The complaints describe a subsequent odyssey during which Carrillo was shot and fled the scene initially on foot, and then by carjacking a vehicle on a nearby highway. The chase came to an end when, bleeding from his hip, Carrillo was taken into custody.
Additional items were recovered at Carrillo’s Ben Lomond residence included an AR-15-style short-barreled rifle fitted with a binary trigger that fired one round of 9mm ammunition at the pull of the trigger and another round at the release of the trigger. The rifle was fitted with a silencer that suppressed the sound of gunfire from the rifle. In addition, Carrillo appears to have used his own blood to write various phrases on the hood of the car that he carjacked. The phrases relate to an extremist ideology that promotes inciting a violent uprising through use of militias.
Cell phone records from Carrillo’s phone identified Justus as a person with whom Carrillo may have been communicating in the days leading up to the drive-by shooting attack in Oakland. On June 11, while the FBI had Justus under surveillance, travelled to the Federal Building in San Francisco, met with the FBI, and was thereafter arrested for his involvement in the shooting, including his role as the driver of the vehicle.
The charges contained in the criminal complaints are allegations only. Carrillo and Justus are presumed innocent until proven guilty beyond a reasonable doubt.
Carrillo is charged with one count of murder of a person assisting an officer or employee of the United States Government, in violation of 18 U.S.C. §§ 1114(1) and 1114(3) and one count of attempted murder under the same statutes. If convicted of the murder charge, the maximum statutory penalty for this charge is death. If convicted of the attempted murder charge, Carrillo faces a maximum statutory penalty of 20 years in prison, three years of supervised release, a $250,000 fine, and restitution. Justus is charged with aiding and abetting the murder and attempted murder and faces the same maximum statutory penalties. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
Justus made his initial appearance Monday, June 15, 2020, before U.S. Magistrate Judge Laurel Beeler, and was detained for further proceedings. His next appearance is scheduled for Friday, 10:30 am, before Magistrate Judge Kandis A. Westmore for identification of counsel and additional proceedings. An initial federal court appearance has not yet been scheduled for Carrillo.
The case is being prosecuted by United States Attorney for the Northern District of California David Anderson and the Oakland Branch of the Office of the United States Attorney with assistance from George Kraehe of the National Security Division’s Counterterrorism Section. The case is being investigated by the FBI, the ATF, the FPS, and the U.S. Marshal Service with assistance from the Oakland Police Department and the Santa Clara County Sheriff’s Office.
Toledo man indicted for possession with intent to distribute cocaineRead the Press Release
Justin E. Herdman, U.S. Attorney for the Northern District of Ohio, announced today that a federal grand jury in Cleveland, Ohio has returned an indictment charging Kevin L. Arnold, age 54, of Toledo, Ohio with two counts of possession with intent to distribute cocaine and cocaine base.
According to the indictment filed in this matter, in March 2020, Arnold possessed and intended to distribute approximately 121 grams of a mixture and substance containing a detectable amount of cocaine base and approximately 124 grams of a mixture and substance containing a detectable amount of cocaine.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Toledo Police Department. The case is being prosecuted by Assistant United States Attorney Alissa M. Sterling.
Temple Man Sentenced to 200 Months in Federal Prison for Possession of Child PornographyRead the Press Release
In Waco, a federal judge sentenced 43–year-old James Stevens to 200 months in federal prison for possession of child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
During sentencing on June 10, 2020, U.S. District Judge Alan Albright also ordered that Stevens pay $5,000 in restitution and be placed on supervised release for a period of ten years after completing his prison term.
“I am thankful that we were able to put another predator behind bars. The sexual exploitation of children is one of the most critical problems facing our country, and it doesn’t get remotely enough attention,” stated U.S. Attorney Bash.
On February 11, 2020, Stevens pleaded guilty to one count of possession of child pornography. According to court records, information concerning child sexual exploitation material provided by the National Center for Missing and Exploited Children (NCMEC) and the South Australian Police led HSI investigators to the defendant. In June 2019, authorities executed a search warrant at the defendant’s residence in Temple and seized his cellular telephone. Stevens was arrested based on outstanding state warrants, but later bonded out of jail.
During a subsequent forensics review of the defendant’s cell phone, authorities discovered numerous images of child pornography as well as images of the defendant pant-less, lying down on a bed next to a minor victim. Information obtained from the images led investigators to a residence in Rockdale, TX, where the minor victim lived with his biological father. Inside the residence, investigators saw the defendant lying on a bed with the minor victim sitting next to him. During an interview, the biological father stated that the four-year-old victim is non-verbal, suffered from a cognitive disability and lacked specific skills that would be normally associated with a child of that age. The biological father also admitted that he and the defendant were in a relationship and that they used methamphetamine which was found in the residence. State authorities arrested both men for the methamphetamine and notified Child Protective Services.
During this investigation, agents discovered approximately 121 images and 24 videos of child pornography on the defendant’s cell phone, computer and online accounts.
“The significant sentence imposed on James Stevens sends a clear message that there are serious consequences for those who exploit children. Stevens will serve almost 17 years in federal prison for his incomprehensible acts,” stated HSI Special Agent in Charge Folden. “HSI remains committed to working with our law enforcement partners to aggressively pursue those who victimize the most vulnerable members of our society, our children.”
HSI investigated this case with assistance from the Bell County Sheriff’s Office and the Milam County Sheriff’s Office. Assistant U.S. Attorney Greg Gloff prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the 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, 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.
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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.
Suburban Chicago Businessman Charged with COVID-Relief FraudRead the Press Release
CHICAGO – The owner and operator of several information technology companies in the Chicago area has been charged with filing a bank loan application that fraudulently sought more than $400,000 in a forgivable Paycheck Protection Program loan guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
Rahul Shah, 51, of Evanston, was charged in a criminal complaint filed in the Northern District of Illinois with bank fraud and making false statements to a financial institution. An initial appearance in U.S. District Court in Chicago has not yet been scheduled.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Inspector General J. Russell George of the Treasury Department Inspector General for Tax Administration (TIGTA); Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG), and Special Agent-in-Charge Emmerson Buie, Jr., of the FBI’s Chicago Field Office. The government is represented by Assistant U.S. Attorney Tyler C. Murray of the Northern District of Illinois, and Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section.
“The Paycheck Protection Program was designed as a lifeline for small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney Lausch. “My office is working closely with our law enforcement partners to hold accountable anyone who seeks to commit fraud in connection with this important program.”
The CARES Act was enacted on March 29, 2020, to provide emergency financial assistance to the millions of Americans 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 one 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 24 weeks of receipt and use at least 60% of the forgiven amount for payroll.
According to the complaint, Shah caused to be submitted to a federally insured bank an application for a $441,138 loan guaranteed by the SBA which significantly overstated the payroll expenses of a company that he controlled. In support of the loan application, Shah allegedly caused to be submitted to the lender several false and fraudulent IRS documents, including IRS Forms 1099-MISC representing that the company made payments to several individuals who later confirmed to federal investigators that they had not received such payments.
In addition, Shah allegedly signed and caused to be submitted to the lender what purported to be IRS Forms 941 representing his company’s quarterly payroll expenses for 2019. A comparison between the documents submitted to the lender and the company’s IRS filings revealed that Shah’s company reported significantly lower payroll expenses to the IRS, the complaint states.
A complaint is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The bank fraud and false statement charges are each punishable by up to 30 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Shah ComplaintSteubenville man sentenced for his role in a drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Rolland Kwame Owens, of Steubenville, Ohio, was sentenced today to 12 months and one day incarceration for his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Owens, also known as “Buster,” age 30, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl” in February 2020. Owens admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (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 John Preston Bailey presided.