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3 August 2020
Jailed Cocaine Dealer Sentenced to 4 More Years for Conspiring to Distribute Controlled Substances while in PrisonRead the Press Release
PITTSBURGH, PA – Robert Korbe was sentenced to 48 months in prison for conspiring to distribute Schedule I synthetic cannabinoid controlled substances between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Korbe, age 51, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan directed that the prison sentence be served consecutively to the prison sentence Korbe was serving at the time of the crime. Judge Ranjan also directed that Korbe serve six years of supervised release following his prison sentence and forfeit $2,819.85 from his prison account that contained some of the proceeds of the crime.
Korbe was incarcerated at the federal prison at Loretto, Pennsylvania, when he was conspiring to distribute Schedule I synthetic cannabinoid controlled substances which have caused severe illness and deaths throughout the United States in recent years. Korbe was incarcerated as a result of several prior convictions in theWestern District of Pennsylvania for cocaine trafficking, possessing a firearm after a prior felony conviction, and wire fraud. Korbe has six prior drug trafficking convictions in six prior federal and state prosecutions as well as a prior conviction for aggravated assault in another prior state prosecution.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Green Bay Man Sentenced to 96 Months in Federal Prison Following Arson TrialRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 31, 2020, William A. Julius (age: 57) of Green Bay and Menominee, Wisconsin, was sentenced to 96 months’ imprisonment by Senior District Judge William C. Griesbach. In March of this year, a jury found Julius guilty of two counts of arson to a building.
The evidence presented at trial established that just before 1:00 a.m. on August 20, 2017, Julius set fire to a porch of a building on Madison Street in downtown Green Bay. Residents of the apartments located in the upper portion of the building were accounted for, and the Green Bay Fire Department began an investigation. While the fire marshal continued his investigation into the first fire, Julius returned and lit another fire in front of the main entrance, causing significant fire and smoke damage to the businesses located on the first floor. Julius later was found hiding under a vehicle a few blocks away and arrested.
In imposing sentence, Judge Griesbach noted that arson is a serious crime that puts not only the building’s occupants, but firefighters and first responders in harm’s way. He further noted that Julius’ history of serious criminal conduct and lack of “pro-social” activities called for a lengthy prison sentence. Following his release from prison, Julius will serve an additional 3 years on supervised release.
This case was investigated by the Green Bay Fire Department, the Green Bay Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by United States Attorney Krueger and Assistant United States Attorney Daniel R. Humble.
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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Great Falls Drug Dealer Sentenced to over 10 Years in PrisonRead the Press Release
GREAT FALLS – A man accused of leading a large methamphetamine and heroin trafficking ring and distributing drugs from a Great Falls pre-release center was sentenced today to 160 months in prison followed by 5 years supervised release, U.S. Attorney Kurt Alme said.
Anthony Joseph Beltran, 45, who lived at a Great Falls pre-release center, pleaded guilty in March to possession with intent to distribute controlled substances and to obstruction of justice by retaliating against a witness.
Chief U.S. District Judge Brian M. Morris presided. Judge Morris also ordered Beltran to forfeit four vehicles, an RV and $47,824 in currency.
The prosecution said in court records that law enforcement began investigating a meth and heroin distribution ring in Great Falls in September 2018. Agents learned that Beltran supplied a significant amount of drugs that came from California to others, including convicted co-defendants Jacqueline Kirkaldie and David Awberry, for redistribution. Kirkaldie was sentenced to 11 years and four months in prison, while Awberry was sentenced to 10 years in prison.
Beltran, who was distributing meth and heroin while living at the pre-release center, also maintained a safe with drugs, cash and firearms at a local residence and had a storage unit.
During the investigation, detectives served a search warrant on the house where Beltran stored drugs and found about 4.8 pounds of methamphetamine. The amount of meth seized from the home is the equivalent of about 17,395 doses.
In a search of the storage unit, detectives found 31 firearms, most of which had been stolen from residences in Cascade County.
Beltran was arrested on April 3, 2019 and held at the Cascade County Detention Center. On April 22, 2019, detectives learned that the entire sealed criminal complaint filed against Beltran and his co-defendants had been published on Facebook pages and that its publication appeared to be an implicit threat against anyone who had provided law enforcement information about Beltran’s drug activities. Investigators linked the Facebook pages to Beltran, who in jail calls referred to funneling the paperwork out of the jail for posting on Facebook.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Drug Enforcement Administration, Great Falls Police Department, Russell Country Drug Task Force and the Cascade County Sheriff’s Office.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Arrested in Jackson and Indicted for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Jackson, TN – Four individuals have been indicted for conspiracy to possess with the intent to distribute methamphetamine. D. Michael Dunavant, U.S. Attorney announced the indictment today.
On July 30, 2020, a federal grand jury returned a three-count indictment which remained sealed until the defendants’ arrest. This investigation was conducted in conjunction with federal prosecutors in Jackson as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations, and related criminal enterprises.
The four defendants listed are currently in custody:
• Jason Kennedy, 43, of Puryear, Tennessee
• Justin Barker, 31, of Atlanta, Georgia
• Derick Barker, 35, of Atlanta, Georgia
• Colby Criswell, 29, of Greenfield, Tennessee
During this investigation, agents seized large amounts of crystal methamphetamine (ICE), money, digital scales, a firearm, and other various paraphernalia from the defendants at a hotel in Jackson, TN. The defendants were arrested on July 25, 2020 and charged in a federal criminal complaint.
Criswell has also previously been charged among seventeen individuals with operating a multi-state drug trafficking conspiracy to distribute methamphetamine in West Tennessee, Arkansas, and Mississippi in "Operation Clear Cut". https://www.justice.gov/usao-wdtn/pr/seventeen-charged-multi-state-drug-trafficking-ring-operation-clear-cut.
If convicted in this case, the defendants each face mandatory minimum sentences of 10 years and up to life imprisonment.
U.S. Attorney D. Michael Dunavant said, "West Tennessee is a major logistics hub for the country, and drug trafficking organizations transport large quantities into and through our communities. We must use every available resource to disrupt and dismantle these conspiracies, and hold them accountable for distributing poisonous illegal drugs that cause addiction, injury, and death. We commend the outstanding investigative work of our federal, state, and local law enforcement partners in this important case involving significant seizures of dangerous narcotics."
This case was investigated by the Drug Enforcement Administration (DEA) - Jackson, Houston, and Chattanooga offices; Madison County Sheriff’s Department; Weakley County Sheriff’s Department; Jackson-Madison County Narcotics Unit; 24th Judicial District Drug Task Force; Puryear Police Department, and Georgia Bureau of Investigation.
Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on behalf of the government.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Fifteen Years in Federal Prison for Nashville Man Who Illegally Possessed FirearmRead the Press Release
NASHVILLE, Tenn. – August 3, 2020 - A Nashville man arrested during a 2017 traffic stop has been sentenced to 15 years in federal prison, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Brandon Desean Wells, 33, was sentenced Friday to the mandatory minimum sentence for being a felon in possession of a firearm and being qualified as an Armed Career Criminal, which subjected him to a mandatory sentence enhancement.
Wells was arrested by officers with the Metropolitan Nashville Police Department on April 20, 2017, after he was found to be a passenger in a vehicle which was stopped for traffic violations. Wells was observed making furtive movements and after exiting the vehicle, he refused to comply with officer’s commands to place his hands behind his back. After physically gaining compliance and handcuffing Wells, the officers found a loaded semi-automatic pistol in his waistband. Wells was also in possession of hydrocodone pills and drug trafficking paraphernalia and told the officers he was under the influence of cocaine and other drugs.
Wells was indicted by a federal grand jury in April 2018 and pleaded guilty in January of this year. Well’s criminal record dates back to his teenage years and includes multiple convictions for armed robbery, drug trafficking and firearm offenses, including a prior six-year federal prison sentence for illegal firearms possession for an offense that occurred only weeks after being placed on probation in state court.
U.S. Attorney Cochran commended the actions of the officers of the Metropolitan Nashville Police Department and agents of the Bureau of Alcohol, Tobacco Firearms & Explosives, along with Assistant U.S. Attorney Joseph P. Montminy in bringing this case and removing a dangerous criminal from the community.
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Fayetteville Man Sentenced to 14 Years for Drug and Firearm ChargesRead the Press Release
RALEIGH, N.C. – A Fayetteville man was sentenced today to 168 months in prison for Cocaine Base (Crack) and Firearm violations.
According to court documents, Elbert Tojuan McNeill, 40, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Cocaine Base (Crack), Possession with Intent to Distribute a Quantity of Cocaine Base (Crack), and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on April 20, 2020.
In January 2018, investigators with the Fayetteville Police Department (FPD) and the Federal Bureau of Investigation (FBI) learned that McNeill was distributing cocaine base (crack) in the Fayetteville area. Agents then conducted several controlled purchases of cocaine base (crack) from McNeill.
On February 6, 2019, agents executed a search warrant at a residence associated with McNeill. Agents seized currency, cocaine base (crack), a stolen 9mm Glock handgun, and a stolen .40 caliber Smith & Wesson firearm.
McNeill admitted that since 2015, he had purchased more than ten kilograms of cocaine. He had then cooked it into cocaine base (crack) and sold it to customers.
Based on his criminal history, McNeill was determined to be a Career Offender.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Fayetteville Police Department (FPD) and the Federal Bureau of Investigation (FBI) investigated the case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-CR-340-D-1.
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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.
Everett Man Charged in Connection with Damaging Property at Boston FBI HeadquartersRead the Press Release
BOSTON – An Everett man has been charged in federal court in Boston in connection with scaling the perimeter fence of the Boston FBI Headquarters in Chelsea and damaging property.
Brian Ricardo Dennis, 52, was charged by criminal complaint with injuring or depredating government property. Following an initial appearance today, Dennis was detained pending a probable cause and detention scheduled for Wednesday, Aug. 5, 2020.
It is alleged that at approximately 1:20 am on Friday, July 31, 2020, an individual – later identified as Dennis – scaled the perimeter fence of the Boston FBI Headquarters in Chelsea. Video surveillance recorded Dennis climbing over the perimeter fence, approaching an exterior door, banging on the door with his hands and then retrieving a large rock and repeatedly throwing the rock against the door, shattering the glass on the door. Dennis then allegedly climbed back over the perimeter fence and left the area.
According to court documents, thereafter, local law enforcement encountered Dennis, who had significant injuries to his right hand, and transported him to a local emergency room. During an interview with agents, Dennis admitted to being the individual in the surveillance recordings. Fingerprints found at the FBI Headquarters were determined to match Dennis.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Chelsea Police Department also provided assistance. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
East Bay Residents Charged with Stealing 27 Firearms from Hayward Gun StoreRead the Press Release
OAKLAND – In an indictment partially unsealed today, a federal grand jury charged Dashawn Talifario Taylor, Anthony Lamar Craft, Jr., and Tyronza Hampton, Jr., for stealing 27 firearms from a Hayward gun shop on the night of May 31, 2020, announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Patrick Gorman. The grand jury also charged Taylor with possession of a stolen firearm and Craft with being a felon in a possession of a firearm.
According to the indictment and an affidavit by an ATF agent in connection with a criminal complaint filed in the same matter, on the night of May 31, 2020, Taylor, 23, Craft, 26, and Hampton, 25, all of Oakland, and several others congregated outside of Richardson Tactical, a firearms retail store in Hayward, California, after business hours when the store was closed. The co-conspirators allegedly broke the store window and entered the store, where they smashed display cabinets and ripped firearms from the walls. In total, the defendants and their co-conspirators allegedly stole no fewer than 27 firearms from the store. The co-conspirators then left the store together and fled the location.
Court filings indicate that surveillance footage and fingerprint evidence were used to identify the defendants, who were arrested between July 15, 2020, and July 31, 2020. Furthermore, according to court filings, on June 6, 2020, in Oakland, California, defendant Taylor attempted to flee by car with several other individuals from the scene of a shooting. The car crashed, at which point Taylor was apprehended; one of the stolen firearms was allegedly recovered from the front passenger area of the car, where Taylor had been sitting. In addition, according to court filings, on June 18, 2020, Craft posted a photo to Instagram, depicting him holding two of the stolen firearms.
“This burglary occurred on a night when Hayward and many other cities in the Bay Area and across the country were experiencing civil unrest and protests,” U.S. Attorney David L. Anderson commented. “My office stands in support of all Americans exercising their First Amendment rights to peaceable assembly and speech. But we will also investigate and seek justice for those who use the cover of lawful protests to break the law.”
Taylor and Hampton were previously arrested and have made their initial appearances before the magistrate court. Both were ordered released on bond, and are currently scheduled to appear before the Honorable Jon S. Tigar, U.S. District Court Judge, on September 25, 2020, at 9:30 a.m. Craft was arrested on July 31, 2020, and made his initial appearance before the magistrate court today. Craft’s next scheduled appearance is before U.S. Magistrate Judge Thomas S. Hixon tomorrow, August 4, 2020, for a detention hearing.
One defendant charged in the indictment has not been arrested and remains a fugitive.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The defendants face a maximum sentence of ten years’ imprisonment, a three-year term of supervised release, a fine of $250,000, and restitution if convicted of theft from a federal firearms licensee in violation of 18 U.S.C. § 922(u), felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1), or possession of a stolen firearm, in violation of 18 U.S.C. § 922(j). If convicted of conspiracy, in violation of 18 U.S.C. § 371, the defendants face a maximum sentence of five years’ imprisonment, a three-year term of supervised release, a fine of $250,000, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Oakland Branch of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the ATF with the assistance of the Hayward and Oakland Police Departments, and the Alameda County Sheriff’s Office.
East Bay Felon Charged with Unlawful Possession of AmmunitionRead the Press Release
OAKLAND – Dustin Vaughn Dean Laster made an initial appearance today in federal court on a criminal complaint for being a felon in possession of ammunition, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Laster made his initial appearance in federal court today before Magistrate Judge Thomas S. Hixson.
According to the complaint, Contra Costa Sheriff’s Office deputies saw Laster, 30, of El Sobrante, California, sitting in the driver’s seat of a car near Hilltop Park in Richmond, California on May 15, 2020, along with another individual in the passenger seat. As the deputies drove past, Laster, whom they knew to be on parole for having previous felony convictions, got out of the car and started walking away from them into Hilltop Park. Deputies stopped Laster in the park, and then searched his vehicle pursuant to terms of his parole. During the search, deputies found a .40 caliber semi-automatic pistol on the floorboard of the front driver’s seat near where Laster had been sitting. The pistol was loaded with a 22-round extended magazine that contained twenty live rounds of ammunition.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Laster is currently being held at Santa Rita Jail. Laster’s next scheduled appearance is tomorrow, August 4, 2020, at 10:30 for a status conference hearing before the Honorable Thomas S. Hixson, U.S. Magistrate Judge.
Noah Stern is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kay E. Konopaske. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Contra Costa County Sheriff’s Office.
Domestic Abuser Sentenced to 6 Years for Unlawful Possession of Multiple FirearmsRead the Press Release
Memphis, TN – Darius Washington, 24, has been sentenced to 72 months in federal prison for possession of a firearm after having been previously been convicted of misdemeanor crime of domestic violence. Michael Dunavant, U.S. Attorney announced the sentence today.
According to the information presented in court, on December 9, 2017, detectives conducted a traffic stop on Watkins Avenue in the Family Dollar parking lot. When the car pulled into the parking lot, the front right passenger, later identified as Darius Washington, jumped out of the vehicle and ran inside the store. Detectives observed Washington casually walk back towards the front of the store. After reviewing the in-store video footage, law enforcement observed Washington hide a Beretta .40 caliber pistol in one of the food aisles. The gun was loaded with 13 rounds in the magazine and 1 round in the chamber.
On June 5, 2019, during a physical altercation with a man, Washington pulled out a semi-automatic pistol and shot the man in the ear. Visibly injured, the victim fled the scene. Washington then reached inside the victim's car and stole a Smith and Wesson .40 caliber pistol he had been carrying.
Washington's prior criminal history consisted of four misdemeanor convictions, including two convictions for domestic violence with bodily harm. Based upon his domestic violence convictions, Washington was unlawfully in possession of all three firearms pursuant to federal law. Washington had no felony convictions, until today.
On July 29, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Washington to 72 months in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Under the new Project Guardian initiative announced by Attorney General Barr inMemphis in November, 2019, we have intensified our focus on removing firearms from the hands of prohibited persons, and removing dangerous offenders from our streets. We have no better partner in this fight against gun crime than the ATF, and under Project Guardian, we will aggressively investigate and prosecute the trigger-pullers and prohibited persons who violate federal firearms laws in West Tennessee. Persons with histories of domestic violence present a known and immediate risk of violence to their families and the community at large. Clearly, this recidivist had no hesitation in committing a violent crime with a firearm, and he will now be removed from the community for 6 years."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Chippewa Falls Felon Sentenced to 42 Months for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Joshua Reedy, 26, Chippewa Falls, Wisconsin, was sentenced Friday, July 31 by U.S. District Judge William M. Conley to 42 months in federal prison for possessing a firearm as a felon. This prison term will be followed by 3 years of supervised release.
On August 16, 2019, Eau Claire police officers found Reedy in the parking lot of a Goodwill store after receiving a complaint for a suspicious vehicle. At the time officers found Reedy, he was wearing a bullet-proof vest and was also in possession of a crow-bar and hunting knife. During a search of his vehicle, officers located a sawed-off shotgun. Reedy admitted to knowing this shotgun was stolen and to sawing off its barrel. A second gun, ammunition, stolen credit cards, and other burglarious tools were located in the vehicle and in the possession of Reedy’s associate, who was located nearby.
Reedy is prohibited from possessing any firearms as a result of multiple Wisconsin felony convictions.
In sentencing Reedy, Judge Conley acknowledged his long-standing addiction to alcohol and drugs. However, Judge Conley noted that Reedy was a high functioning addict who failed to take prior addiction treatment seriously. Judge Conley imposed this prison sentence, in part, because of Reedy’s pattern of increasingly serious crimes.
The charge against Reedy was the result of an investigation conducted by the Eau Claire Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Braxton County man sentenced for role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Duncan Currie Canter, of Burnsville, West Virginia, was sentenced today to 15 months incarceration for his involvement in a methamphetamine distribution operation, U.S. Attorney Bill Powell announced.
Canter, age 26, pled guilty to one count of “Aiding and Abetting Distribution of Methamphetamine in Proximity to a Protected Location” in October 2019. Canter admitted to selling methamphetamine near Glenville State College in September 2018 in Gilmer County.Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Armed Career Criminal Sentenced to 17 Years for Possession of a FirearmRead the Press Release
Memphis, TN – Davien Stokes, 39, of Horn Lake, Mississippi, has been sentenced to 210 months in federal prison for being a convicted felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on January 22, 2018, Memphis Police responded to a request for a welfare check at a local business complex on Union Avenue in Memphis, Tennessee. Officers arrived to find a 2013 red Ford Focus obstructing the entrance way of the business with keys in the ignition and the engine was idle.
The driver, later identified as Davien Stokes, appeared to be unconscious. Eventually, Stokes began to move around in the seat. As he did so, officers observed an open container of alcohol on the front passenger seat. Stokes attempted to grab something and told officers he was reaching for his mouthwash. Officers were able to see a Ruger 9mm pistol in the cup holder. Also, 23 live rounds of 9mm ammunition and one spent shell casing were found in the vehicle. The gun was loaded with two live rounds of ammunition in the magazine. Officers learned that Stokes' drivers’ license had been revoked since 2015.
Due to three prior violent felony convictions for robberies in 1999, 2005, and 2010, Stokes is prohibited by federal law from possession of a firearm or ammunition. At sentencing, Stokes was determined to be an armed career criminal, which carries a 15 year mandatory minimum prison sentence.
On July 28, 2020, U.S. District Court Judge Mark S. Norris sentenced Stokes to 210 months in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Our PSN efforts continue to provide targeted prosecution of the worst of the worst violent offenders in order to enhance public safety
in Memphis. This significant sentence removes an armed career criminal from the community, and sends a strong message that we will no longer tolerate this lawless behavior. We are FED UP with gun crime in Memphis, and will continue to aggressively prosecute prohibited and dangerous offenders with firearms. Gun Crime is Max Time."
This case was investigated by the Memphis Police Department, Project Safe Neighborhoods Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Justice Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Acting Manhattan U.S. Attorney Files Lawsuit Against Jewelry Importer and Settles Claims Against Its Former President for Fraudulently Underreporting Value of Jewelry to Evade Customs DutiesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Brenda Smith, Executive Assistant Commissioner for U.S. Customs and Border Protection’s (“CBP”) Office of Trade, and Troy Miller, Director, CBP Field Operations New York, announced today that the United States has filed a civil fraud lawsuit against ANAYA GEMS, INC. (“ANAYA GEMS”), a company that sold jewelry to retailers and was previously based in Long Island City, New York, and its former president, ANSHUL GANDHI (“GANDHI”), for defrauding the United States by falsely underreporting to CBP the value of jewelry imported from Hong Kong and Thailand, and thereby avoiding customs duties owed on the goods. Specifically, the Government alleges that ANAYA GEMS did not report the value of the diamonds contained in the jewelry, or grossly understated their value. The Hong Kong and Thailand companies that assembled the finished jewelry shipped to ANAYA GEMS used diamonds that were obtained from India-based companies owned, operated, and/or controlled by GANDHI’s family members.
Simultaneous with the filing of the lawsuit, the United States has resolved the claims against GANDHI pursuant to a settlement agreement approved today by U.S. District Judge Edgardo Ramos. Under the settlement, GANDHI will pay $415,000 to the United States and made admissions regarding his conduct and the company’s conduct. Specifically, GANDHI admitted that ANAYA GEMS routinely and knowingly underpaid customs duties for jewelry containing diamonds imported from Hong Kong and Thailand. The amount paid by GANDHI under the settlement is based on the Office’s assessment of his ability to pay based on the financial information he provided. ANAYA GEMS is no longer operating.
Acting U.S. Attorney Audrey Strauss said: “Anaya Gems and its former president engaged in a fraudulent scheme to short-change the Government of customs duties owed for imported jewelry by falsely reporting its value. Our Office will continue to hold companies, as well as their executives, accountable when they try to evade paying the legally required custom duties on imported goods.”
Executive Assistant Commissioner Brenda Smith said: “U.S. Customs and Border Protection maintains a zero-tolerance policy for trade fraud and other unfair trade practices that undermine the competitiveness of U.S. businesses. Our auditors, attorneys, and analysts in New York played an important role in this investigation, and I want to recognize their outstanding work. We are proud to partner with the U.S. Attorney’s Office to level the playing field for legitimate traders by steadfastly enforcing U.S. trade laws.”
CBP Field Operations Director Troy Miller said: “This case is a great example of CBP’s historical mission of protecting the revenue of the United States and coincides with the 231st anniversary of the creation of the United States Customs Service. I would like to thank our partners for their efforts in this priority trade enforcement action.”
The Complaint filed in Manhattan federal court alleges that from 2010 through 2017, ANAYA GEMS and GANDHI engaged in a scheme to fraudulently underpay customs duties on jewelry containing diamonds imported from Hong Kong and Thailand. They carried out this scheme by causing false representations to be made concerning the value of the jewelry on entry documents filed with CBP, and by submitting invoices that did not reflect the true value of the jewelry. ANAYA GEMS’ own records reflected the fraudulent scheme, showing the difference between the true values of the jewelry and the false values that were declared to CBP, as well as the duty that ANAYA GEMS would have been required to pay if it had lawfully reported the actual value of the jewelry. In many instances, upon receipt of a shipment of jewelry from Hong Kong or Thailand, an ANAYA GEMS employee would handwrite on the manufacturer’s receipt the actual value of the diamonds contained in the imported merchandise so that the company could track this information. ANAYA GEMS then provided its customs broker with the versions of these invoices without the handwriting – and without the actual value of the diamonds – and the customs broker submitted those invoices to CBP.
As part of the settlement approved today by Judge Ramos, GANDHI admits, acknowledges, and accepts responsibility for the following conduct:
- As the president of the company during the period relevant to the Government’s allegations, GANDHI was closely involved in managing the day-to-day operations of ANAYA GEMS.
- ANAYA GEMS imported jewelry containing diamonds (the “Jewelry”) from manufacturers based in Hong Kong and Thailand (collectively, the “Manufacturers”). The diamonds used in the Jewelry assembled by the Manufacturers were obtained from companies that shared common ownership with ANAYA GEMS, including India-based companies Antrix Diamond Exports, Ltd., Shubh Exports, and Netaya Jewels PVT Ltd. (collectively, the “Diamond Suppliers”). GANDHI’s family members, including his father, owned, operated and/or controlled the Diamond Suppliers.
- The Manufacturers used the diamonds provided by the Diamond Suppliers to create the finished Jewelry that was exported to ANAYA GEMS. The Manufacturers were not billed for, and did not pay for, the diamonds that they used to assemble the finished Jewelry.
- ANAYA GEMS routinely and knowingly underpaid customs duties for the Jewelry imported from Hong Kong and Thailand. The entry documents submitted by ANAYA GEMS for the Jewelry imported from Hong Kong and Thailand were false. ANAYA GEMS regularly and knowingly misrepresented the actual value of the Jewelry on entry documents filed by its customs broker with CBP by not including the value of the diamonds, or grossly understating the value of the diamonds, contained in the Jewelry.
- ANAYA GEMS also, through its customs broker, submitted to CBP inaccurate invoices to support the declared values, which omitted the value of the diamonds or grossly understated the value of the diamonds.
- GANDHI was involved in pricing the Jewelry for purposes of selling the merchandise to retailers. When calculating the prices to sell merchandise to retailers, GANDHI and ANAYA GEMS staff used the actual value of the pieces – including the value of the diamonds – as opposed to the values reported to CBP.
- GANDHI was aware of ANAYA GEMS’ obligation to report the accurate value of the imported Jewelry to the CBP, which included the full value of any diamonds included in the Jewelry. GANDHI knew that the invoices used by ANAYA GEMS’ customs broker to record the value of the merchandise declared on the entry summary forms did not include the full value of the diamonds contained in the Jewelry. GANDHI was aware that ANAYA GEMS did not accurately report the value of Jewelry imported from Hong Kong and Thailand and that this resulted in the underpayment of customs duties that were due and owing to the United States.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Ms. Strauss thanked U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the case.
- As the president of the company during the period relevant to the Government’s allegations, GANDHI was closely involved in managing the day-to-day operations of ANAYA GEMS.
1 August 2020
Winnebago Man Sentenced to 153 Months for Assault and Firearm ChargesRead the Press Release
United States Attorney Joe Kelly announced that Roman Perales, age 22, was sentenced in federal court today in Omaha, Nebraska, for assault with intent to commit any felony and discharging a firearm during and in relation to a crime of violence. United States District Judge Robert F. Rossiter, Jr. sentenced Perales to 153 months’ imprisonment. There is no parole in the federal system. Following Perales’s term of imprisonment, he will begin a 5-year term of supervised release.
On July 25, 2019, an altercation occurred outside of a residence in Winnebago, Nebraska. Perales was at the residence. Perales grabbed a .22 caliber rifle and fired it multiple times at individuals outside of the residence. A female victim was shot in the arm and bled from an open injury.
After shooting the first victim, Perales approached a second female. The second victim was in a vehicle at the time. The second victim told Perales that she was not involved in the altercation and just wanted to go home. Perales pointed the rifle at her face and threatened her. She believed that Perales was going to shoot her. Perales later fled the scene and hid the ammunition and the rifle.
On July 25, 2019, Perales was on federal supervised release for a prior felony conviction. Perales was previously convicted on June 15, 2015 of assault with intent to commit any felony, in the United States District Court for the District of Nebraska.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
The case was investigated by Federal Bureau of Investigations and the Winnebago, Nebraska Police Department.
31 July 2020
Whitefield Man Sentenced for Illegally Possessing FirearmRead the Press Release
Bangor, Maine: A Whitefield man was sentenced yesterday in federal court in Bangor for being a felon in possession of a firearm, United States Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Samuel Caison, 36, to 105 months in prison and three years of supervised release. Caison pleaded guilty on January 7, 2020.
According to court records, on April 22, 2019, a Winthrop Police Department detective saw an individual, later identified as Caison, carrying what appeared to be a firearm wrapped up in material in Augusta. Caison placed the firearm in the trunk of a car. Officers with the Augusta Police Department later located Caison driving the car and pulled him over. Officers found a .22 caliber rifle in the trunk. Caison was prohibited from possessing the firearm due to multiple prior felony convictions, including convictions for robbery in 2005, aggravated assault and illegal possession of a firearm in 2010, and terrorizing in 2013.
The Augusta Police Department, the Winthrop Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN, please visit http://www.justice.gov/psn.
Upshur County man admits to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Jason Benton Barcus, of Ellamore, West Virginia, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Barcus, age 40, pled guilty to one count of “Possession with Intent to Distribute 50 grams or more of Methamphetamine.” Barcus admitted to distributing 50 grams or more of methamphetamine in March 2019 in Upshur County.Barcus faces not less than ten years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Attorney William M. McSwain Testifies before Presidential Commission on Law Enforcement and Administration of JusticeRead the Press Release
PHILADELPHIA – On July 21, 2020, United States Attorney William M. McSwain delivered testimony at a hearing before the Presidential Commission on Law Enforcement and Administration of Justice. He spoke on a panel addressing Respect for Law Enforcement and the Rule of Law, and addressed the negative impact that certain policies, enacted by some local district attorneys, are having on public safety, especially in large cities where violent crime is on the rise. These self-proclaimed “progressive prosecutors” are promoting a culture of disrespect for law enforcement and the rule of law, which has had the predictable effect of jeopardizing public safety. U.S. Attorney McSwain concluded that, in order to restore the public’s trust in law enforcement and ensure equal justice under the law, U.S. Attorneys have a responsibility to serve as a counter-weight to radical “reform” policies that are causing far more harm than good.
Remarks as Prepared for Delivery
Introduction
Thank you, Chairman Keith and thank you to the Commission for the important work you are doing on behalf of the Department. It is an honor to be here today to provide testimony on the importance of respect for law enforcement and the rule of law in our country.
I have served as the United States Attorney for the Eastern District of Pennsylvania since April 2018, and my Office is one of the nation’s largest U.S. Attorney’s Offices. We serve a population of over five million citizens and cover a geographic area of roughly 4,700 miles across nine counties in southeastern Pennsylvania – Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, Northampton, and Philadelphia counties. In addition to the suburban and rural areas within the District’s borders, we serve five of Pennsylvania’s eight major cities: Philadelphia, Allentown, Reading, Bethlehem, and Lancaster. In our District, the criminal behavior that we encounter runs the gamut, with a mix of issues to confront: big-city problems, small-town problems, and everything in between.
Despite these differences, every law-abiding citizen wants the same thing – to live in a community that is safe for themselves and their families. This is why this Commission’s work is so critical: the study of crime, including its causal factors, is essential to reduce its prevalence.
President Trump’s Executive Order establishing this Commission directed it to study “important current issues facing law enforcement and the criminal justice system.”[1] One of the specific subjects identified for study was “refusals by the state and local prosecutors to enforce laws or prosecute categories of crime.”[2]
Which brings me to the topic of this hearing and my testimony today. Though respect for law enforcement and the rule of law are broad concepts, my testimony today will primarily focus on one important and troubling recent development – that is, the undeniable fact that the rule of law and law enforcement officers are currently under attack in many parts of our nation. In many cities and counties across the country, so-called progressive prosecutors have been elected on an agenda of sending fewer people to jail, by whatever means necessary, and with little regard for the public safety consequences.[3]
Philadelphia is, in many ways, ground zero for this experiment. But there are many other cities across the United States where the top local prosecutors are pushing progressive policies.[4] And in many of these cities, prosecutors are decriminalizing certain conduct, encouraging overly lenient plea bargaining, [5] firing career prosecutors who might not share their viewpoints,[6] and shifting significant resources away from prosecution and into conviction integrity units,[7] among other significant policy changes.
My testimony today focuses on the work we have done in the Eastern District of Pennsylvania to serve as a counter-weight to some of the worst excesses of this movement. In the two-plus years I have served as U.S. Attorney, I have worked to restore a culture of respect for law enforcement and to uphold the rule of law and ensure that it is enforced in a consistent, impartial manner. I believe that the steps we have taken in the Eastern District of Pennsylvania can serve as a model for other federal districts that are facing the predictable rise in crime and chaos that results from radical “reform” policies.
The Public Safety Crisis in Philadelphia and Its Root Causes
There can be no doubt that there is a public safety crisis in Philadelphia; one need only look to the staggering rise in serious violent crime in the past two-plus years as proof. The timing coincides with a decline in the number of local cases charged in several key categories and recently, a decline in the homicide clearance rate.[8]
In 2019, Philadelphia recorded its highest number of homicides since 2007, and more people were shot in Philadelphia in 2019 than in any other year since 2010, according to Philadelphia Police statistics. The 2020 numbers are on track to be even worse. As of July 12, 2020, there have been 227 homicides, a 28% increase from the same date in 2019, and 1,578 shooting incidents, a 55% increase from the same date in 2019. On Sunday, July 6, 2020, a staggering 23 people were shot across Philadelphia – the most in a single day in years. Of these victims, six of them died, including a six-year old boy.
These statistics undoubtedly establish the problem. And in Philadelphia and other large cities where murders and shootings continue to rise at an alarming rate,[9] one of the root causes is that criminals believe that there will be no consequences for their actions.
There are two main reasons why criminals think there are no consequences.
First, the local criminal justice system does not hold them fully accountable. Criminals bank on the fact that certain progressive policies – things like requiring assistant district attorneys to decline charges and to offer lenient plea deals in a broad swath of cases – will give them some breathing room to ply their trade.
Second, criminals believe they can commit crime without facing the consequences because the community is too often told that police are the enemy, which discourages witnesses from cooperating with the police and results in crimes remaining unsolved. This has grave consequences for the community. Such mistrust also results in deadly assaults on police officers – of which unfortunately, Philadelphia has had its fair share recently.
The culture of disrespect for law enforcement was on full display in front of a national audience this past August when Maurice Hill, a convicted felon with a long rap sheet, opened fire on Philadelphia police officers as they attempted to execute a search warrant. This confrontation left six officers wounded and a neighborhood in North Philadelphia traumatized. It is a miracle that every officer survived this attack.[10]
In March of this year, the Philadelphia police were not as fortunate. On March 13, 2020, Philadelphia Police Sergeant and SWAT member James O’Connor was gunned down while trying to arrest Hassan Elliot, a known affiliate of a dangerous drug gang who was wanted by local authorities for murder and multiple other offenses.[11]
And just last month, 27 Philadelphia Police Officers were injured after a period of violence, rioting, and looting that swept across several sections of Philadelphia. What began on May 30, 2020 as peaceful protests concerning the death of George Floyd turned violent, and over the course of several days, officers sustained injuries ranging from chemical burns, head injuries, and broken bones.[12] One officer was hospitalized after suffering severe damage to his upper body – a crushed shoulder and broken ribs – when a woman drove over him when protesters turned violent during a demonstration that look place at Seventh and Chestnut Streets – steps away from Independence Hall and my Office.
As tensions continue to mount between the police and the public, police officers remain on their heels, which gives violent criminals the room to operate that they seek. Criminals literally think they can get away with murder, shootings, looting, and rioting. And in many cases, they are.
EDPA’s Response to the Rise in Violent Crime and Culture of Lawlessness
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to stemming the wave of violent crime that is occurring in parts of our District. This section highlights the ways in which my Office has worked to promote the rule of law and respect for law enforcement.
1. Increase Focus on Violent Crime Prosecutions
The first strategy my Office has employed is to increase our violent crime prosecutions District-wide. For example, in Fiscal Year 2019, our Violent Crime Unit charged the largest number of cases in all of the Criminal Division Units in my Office. We charged 208 violent crime cases, as compared to 136 the year before, which represents a 53% increase.
And in Philadelphia’s most dangerous neighborhoods – police districts that are designated as “Project Safe Neighborhood” hot spots – federal prosecutions continue to rise. Project Safe Neighborhood (PSN) is a collaborative effort by federal, state, and local law enforcement agencies and prosecutors to deter and punish gang and gun violence. The Department of Justice’s PSN Strategy requires each District to identify PSN “target areas” with the highest violent crime rates and adopt cases for federal prosecution in those areas. In the Eastern District of Pennsylvania, our PSN target areas are all located in police districts in Philadelphia. In Fiscal Year 2019, my Office charged 143 violent crime and illegal gun possession cases (against 195 defendants) in PSN target areas as compared to 82 cases (against 92 defendants) charged in the previous year. That amounts to a 72% increase in the number of PSN cases this Office pursued and a 112% increase in the number of defendants prosecuted.
To manage the increase in caseload, the Office has dedicated additional resources to our Violent Crime Unit. In addition to adding multiple Assistant U.S. Attorneys to the Unit, this past year, we earmarked our District’s PSN grant funds to hire two experienced prosecutors from the Criminal Law Division of the Pennsylvania Attorney General’s Office who are stationed full-time in our Violent Crime Unit, working solely on cases in the PSN target areas. We are currently in the process of hiring a third full-time attorney. These cross-designated Special Assistant United States Attorneys have served as a force multiplier in our fight against rising violent crime.
2. Seize Opportunities to Take on High Impact Cases that Serve Deterrence
My Office has also been involved in a variety of impactful criminal and civil cases and remains at the forefront of many important areas of federal law enforcement. In the face of the uncertainty created by district attorneys and city leaders who advocate pro-violent defendant policies, it is important for federal prosecutors to show the public – law abiding citizens and would-be criminals alike – that federal law enforcement will step in to fill the law enforcement vacuum. Doing so has an important deterrent effect.
For example, my Office charged a criminal case against Jouvan Patterson, who shot and nearly killed a Cambodian store owner in South Philadelphia with an AK-47 during a store robbery. We charged Patterson federally after he received an overly lenient plea deal from local authorities. Even though the victim is confined to a wheelchair, the plea deal he received on the state charge could have meant that Patterson would serve as little as 3 ½ years in prison. He faces a much longer, more appropriate sentence in our case.
In the wake of statements by Philadelphia leaders that suggested plans of leniency toward the rioters and looters who turned peaceful protests over George Floyd’s death into mayhem, my Office has offered a swift response. For example, we charged Lore-Elisabeth Blumenthal with two counts of arson after allegedly setting two Philadelphia police cars on fire in front of City Hall on May 30. We have also brought charges against defendants accused of taking advantage of the unrest by, among other things, blowing up ATM machines and burglarizing banks, and we have many active, ongoing investigations that we expect will lead to many more arrests.
In the civil context, my Office filed a civil lawsuit to prevent the opening in Philadelphia of the first-ever supervised heroin injection site in the United States. Those who support such injection sites – including some city officials – are attempting an end-run around the federal Controlled Substance Act (CSA). The case is currently on appeal before the U.S. Court of Appeals for the Third Circuit, and we expect a decision later this year.
3. Communicate Support for the Police and Share Our Deterrent Message with the Public
The progressive prosecutor reform movement has garnered significant media attention across the country. The best way to counter disrespect for law enforcement and the rule of law is to publicly challenge those who promote an anti-law enforcement culture. It is important for federal prosecutors to speak out when public safety is at risk and to support our federal, state, and law enforcement officers whenever possible.
One of the first things I did when I began my tenure as U.S. Attorney was to form a new unit called the Office of Public Affairs and External Engagement (OPAEE). OPAEE is designed to promote transparency with the community, foster relationships with law enforcement stakeholders and the public, and work with community groups on deterrence initiatives and crime prevention.
My Office has increased transparency in a number of ways. For example, I appear and speak to civic, legal, and law enforcement groups whenever possible, and take every opportunity to publicly communicate my steadfast support of the police. When significant local events occur that have a negative impact on law enforcement efforts, I share my views with the community we serve. In addition, I recently launched an anti-violence campaign across the District to deter violent crime by raising public awareness about the types of federal criminal charges that can be brought when firearms are involved. The campaign, #fedcrimegetsfedtime, features public service announcements encouraging would-be offenders to put the guns down and make the right choice for their future.
Conclusion
As senior Department of Justice officials, U.S. Attorneys have a platform and a voice to stand up for the rule of law and respect for law enforcement, which go hand-in-hand. We should use that platform responsibly and forcefully and serve as a counter-weight to radical “reform” policies that threaten public safety. As Attorney General Barr has put it, the first duty of the government is to protect the safety of our citizens. The law is the foundation of our society, and we at the Department are the caretakers of the law. By upholding the law, we make possible the common life of our nation and the freedom, safety, and equality under the law that define our country.
[1] Exec. Order No. 13896, 84 Fed. Reg. 58595 (2019), www.federalregister.gov/documents/2019/11/01/2019-24040/commission-on-law-enforcement-and-the-administration-of-justice.
[2] Id.
[3] See Emily Bazelon & Miriam Krinsky, There’s a Wave of New Prosecutors. And They Mean Justice, N.Y. Times (Dec. 11, 2018), http://www.nytimes.com/2018/12/11/opinion/how-local-prosecutors-can-reform-their-justice-systems.html.
[4] See Mark Berman, These Prosecutors Won Office Vowing to Fight the System. Now, the System is Fighting Back, Wash. Post (Nov. 9, 2019), https://www.washingtonpost.com/national/these-prosecutors-won-office-vowing-to-fight-the-system-now-the-system-is-fighting-back/2019/11/05/20d863f6-afc1-11e9-a0c9-6d2d7818f3da_story.html. The nearly two dozen prosecutors who consider themselves in this category include Chesa Boudin (District Attorney of San Francisco, California); John Creuzot (District Attorney of Dallas County, Texas); Kim Foxx (State’s Attorney of Cook County, Illinois (Chicago)); Eric Gonzalez (District Attorney of Brooklyn, New York); and Rachael Rollins (District Attorney of Suffolk County, Massachusetts (Boston)).
[5] See, e.g., The Rachel Rollins Policy Memo (Mar. 2019), http://files.suffolkdistrictattorney.com/The-Rachael-Rollins-Policy-Memo.pdf. (last visited July 19, 2020).
[6] See, e.g., Gabe Dreschler, Why Did San Francisco’s New District Attorney Fire Seven Prosecutors?, KQED News, (Jan. 12, 2020), https://www.kqed.org/news/11795676/why-did-san-franciscos-new-district-attorney-fire-seven-prosecutors.
[7] Chicago District Attorney Kim Foxx revamped Cook County’s Conviction Integrity Unit, which to date, has reversed convictions of over 20 defendants. https://www.law.upenn.edu/live/profiles/1248-kimberly-m-foxx/profiles/quattroneadvisory (last visited July 19, 2020).
[8] The Philadelphia District Attorney’s Public Data Dashboard provides statistics relating to charges filed and outcomes across various types of criminal offenses. Examining the Year-to-Date Count of Cases Charged by Offense Category, as of July 17, 2020, the Dashboard reports that the District Attorney’s Office charged 30% fewer cases overall as compared to the same time period in 2019. It also reports 20% fewer violent crime cases charged, 48% fewer drug cases charged, and 31% fewer retail theft cases as compared to the same time period in 2019. https://data.philadao.com/Charge_Report.html (last visited July 19, 2020). And in reporting case outcomes year-to-date (January 1, 2020 to July 17, 2020) as compared to the same time in 2019, the Dashboard reports a decrease in outcomes (defined as “the various ways a criminal case can end”) in several key categories of cases charged. For example, in the category of violent offenses, case outcomes have decreased 53 percent. When broken down further, case outcomes in the category of robberies with a gun are down 65 percent; and homicide outcomes are down 62 percent. https://data.philadao.com/Case_Outcomes_Report.html (last visited July 19, 2020).
[9] Safia Samee Ali, Gun Violence Is Surging in Cities, and Hitting Communities of Color Hardest, NBC News (July 9, 2020) (discussing rise in shootings and homicides in Philadelphia, Chicago, and other major cities), https://www.nbcnews.com/news/us-news/gun-violence-surging-cities-hitting-communities-color-hardest-n1233269.
[10] Statement by United States Attorney William M. McSwain on the Shooting of Six Philadelphia Police Officers (Aug. 15, 2019), https://www.justice.gov/usao-edpa/pr/statement-united-states-attorney-william-m-mcswain-shooting-six-philadelphia-police.
[11] Statement of William M. McSwain Regarding the Murder of Philadelphia Police Corporal James O’Connor (Mar. 16, 2020), https://www.justice.gov/usao-edpa/pr/statement-us-attorney-william-m-mcswain-regarding-murder-philadelphia-police-corporal.
[12] See Fox29 News, Commissioner: 768 Arrests, 27 Officers Injured in Continued Violence in Philadelphia (June 7, 2020), https://www.fox29.com/news/commissioner-768-arrests-27-officers-injured-in-continued-violence-around-philadelphia.
Union County Man Charged with Fourth Count of Coercing and Enticing Victims for the Purpose of ProstitutionRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Union County, New Jersey, man for persuading, inducing and enticing numerous female victims to travel in interstate or foreign commerce to engage in prostitution and other sexual acts, often by use of force, violence and threats, U.S. Attorney Craig Carpenito announced.
Jose Torres, 42, of Elizabeth, New Jersey, was charged today in a superseding indictment with four counts of coercion and enticement. Torres was originally charged in February 2020 with two counts of coercing and enticing and on May 29, 2020, he was indicted on a third count involving another victim. Today’s indictment adds a fourth victim. Torres will be arraigned at a later date.
According to the documents filed in this case and statements made in court:
From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from various out of state locations, including Canada, New York, and Pennsylvania, in order to engage in prostitution with him. In each instance, Torres lured a female victim to New Jersey with promises of large payments. In three of the charged instances, when the victim asked for payment, Torres became aggressive, often assaulting and raping her. Torres never paid the women for their services.
The two most recently charged counts allege that in December 2015, Torres lured Victim-4 to travel from Pennsylvania to New Jersey on promises of large sums of payment. In May 2018 Torres lured Victim-3 to travel from New York City to New Jersey on promises of large sums of payment. Once Victim-3 arrived, she began to feel uncomfortable. Torres threatened Victim-3, telling her it was in her best interest to remain in the hotel room. Victim-3 remained in the room and Torres then forced her to engage in unwanted sexual activity, including having sexual intercourse without a condom.
The coercion and enticement charges each carry a maximum term of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) under the direction of Special Agent in Charge Jason Molina in Newark; and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to today’s superseding indictment.
The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Commemorates 30th Anniversary of the Americans with Disabilities ActRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, this week marked the 30th anniversary of the passage of the Americans with Disabilities Act of 1990 (ADA). Since President George H.W. Bush signed the Act into law on July 26, 1990, the ADA has transformed society—by replacing exclusion with access, segregation with integration, and limitations with self-determination.
The ADA prohibits discrimination on the basis of disability in employment, activities and facilities of state and local governments and places of public accommodation, including all hotels, restaurants, retail stores, theaters, health care facilities, convention centers, parks and places of recreation. Its promise is to work to eliminate disability discrimination across the range of services, programs and activities that most Americans take for granted, but were largely inaccessible to individuals with disabilities prior to the law’s enactment. The ADA seeks to allow individuals with disabilities to live more independently.
The ADA empowers the U.S. Attorney’s Office to investigate, litigate and resolve complaints of discrimination and to conduct compliance reviews to ensure covered entities comply with the Act’s requirements.
“On this anniversary of the enactment of the ADA, we are reminded of the harm caused by discrimination on the basis of disability,” stated Acting United States Attorney DuCharme. “The ADA recognizes that we all benefit when persons with disabilities have the same opportunities and access to services and facilities as people without disabilities. This Office, which serves the people of Brooklyn, Queens, Staten Island, and Nassau and Suffolk Counties, remains committed to protecting the rights of the disabled and taking legal action when necessary to right wrongs.”
Since the passage of the ADA in 1990, this Office has fulfilled the mission of the ADA in a wide range of enforcement actions, including:
- Protecting the Rights of New York City Firefighters with Disabilities. In response to a complaint by an FDNY captain whose lungs were damaged while serving as a 9/11 first responder, the United States Attorney’s Office successfully obtained a court-ordered Stipulation of Settlement compelling the FDNY to develop and implement a policy providing reasonable accommodation to firefighters with disabilities who are otherwise able to perform work within the department.
- Ensuring Accessibility at Citi Field and Barclays Center. Pursuant to its authority to conduct compliance reviews under the ADA, the Office worked to ensure that individuals with mobility impairments are able to access Citi Field, home of the New York Mets, and the Brooklyn Nets’ Barclays Center.
- Protecting the Rights of Individuals with Serious Mental Illness. The Office has obtained an ongoing Consent Decree with the State of New York to transition into the community individuals with mental illness who reside in adult homes – substandard privately owned facilities licensed by the State. Almost 1,000 former adult home residents covered by the Decree now live successfully in community placements.
- Protecting the Rights of Individuals Who Are Deaf and Hard of Hearing in the New York City Homeless Family System Programs. The Office entered into a Consent Decree and Judgment with the City of New York homeless family shelter system to ensure that it provides sign language interpretation and other auxiliary aids and services to clients who are deaf or hard of hearing.
- Obtaining relief for individuals with disabilities who were subject to discrimination
- Compelling a regional shoe store chain to educate its managers regarding the rights of individuals with disabilities after a store manager in Bay Ridge, Brooklyn forced a customer in a wheelchair to leave the store because her wheels were “dirtying the carpets.” The Settlement Agreement also required the chain to pay the individual $10,000 for emotional injury.
- Obtaining damages on behalf of an HIV+ patient whose surgeon refused to operate on him.
- Obtaining relief for a child with diabetes who was turned away from a children’s summer camp.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov. To file a complaint with the U.S. Attorney’s Office, contact the U.S. Attorney’s Office at [email protected] or visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/
For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
- Protecting the Rights of New York City Firefighters with Disabilities. In response to a complaint by an FDNY captain whose lungs were damaged while serving as a 9/11 first responder, the United States Attorney’s Office successfully obtained a court-ordered Stipulation of Settlement compelling the FDNY to develop and implement a policy providing reasonable accommodation to firefighters with disabilities who are otherwise able to perform work within the department.
U.S. Attorney's Office Commemorates 30th Anniversary of the Americans with Disabilities ActRead the Press Release
PITTSBURGH – Sunday, July 26, 2020, marked the 30th Anniversary of the Americans with Disabilities Act (the ADA), a critical civil rights law that aims to eliminate discrimination against people with disabilities.
"The ADA has improved the lives of millions of Americans by ensuring that individuals with disabilities are afforded equal access and opportunity," said U.S. Attorney Scott Brady. "Our office remains committed to investigating complaints, removing barriers and safeguarding the civil rights of all of our citizens, including those protected by the ADA."
The promise of the ADA is its wide-ranging efforts to eliminate disability discrimination across the range of services, programs, and activities that most Americans take for granted, but were largely inaccessible to individuals with disabilities prior to the law’s enactment. Whether in employment, areas of civic life, or in the day-to-day activities and access to goods and services that we all enjoy – the ADA ensures that individuals with disabilities enjoy the same opportunities as all Americans to participate in everything this nation has to offer.
Over the past 30 years, the United States has undertaken the challenge of changing perceptions about disability, tearing down barriers to equality, and altering the systems that have historically excluded people with disabilities. Today, the Justice Department commemorates the many ways that the ADA has transformed society—by replacing exclusion with access, segregation with integration, and limitations with self-determination.
For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY). To file a complaint with the Department, please visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/.
In January 2020, U.S. Attorney Brady named Assistant U.S. Attorneys Eric G. Olshan and Haley Warden-Rodgers as co-coordinators of the office’s Civil Rights efforts. Either can be reached through the office’s main number: (412) 644-3500 or by emailing [email protected].
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two California Residents Sentenced for Counterfeiting SchemeRead the Press Release
BOISE – This week, U.S. District Judge B. Lynn Winmill sentenced two of four defendants who pleaded guilty to passing counterfeit obligations of the United States, U.S. Attorney Bart M. Davis announced. On July 29, 2020, Nicole Perez, 34, of California, was sentenced to 33 months in federal prison for her role in the scheme. On July 30, 2020, Equallette Ballesteros, 34, also of California, was sentenced to 33 months in federal prison. Both defendants sentenced this week will serve three years of supervised release upon their release from custody.
According to court records, on January 4 and 5, 2020, Perez and Ballesteros knowingly passed counterfeit $100 bills at retailers in the Twin Falls, Idaho area, with the intent to defraud the retailers.
The remaining co-defendants, Richard Hernandez, 27, and Matthew Rodriguez-Islas, 22, both of California, are scheduled to be sentenced on September 22, 2020 and September 23, 2020, respectively in front of U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
This case was investigated by the United States Secret Service and Twin Falls Police Department.
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Tipton County Probationer Arrested During “Operation Crime Driver” Sentenced to Federal Prison for Possessing FirearmRead the Press Release
Memphis, TN – Danny Muex, 32, of Tipton County has been sentenced to 40 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on February 20, 2019, as law enforcement patrolled near the area of Covington, Tennessee where several gunshots had been reported, Officers saw a white 1999 Ford Mustang traveling at a high rate of speed. The driver was later identified as Muex. Corporal Bradley Williams with the Tipton County Sheriff’s Office attempted to stop the vehicle, but Muex continued driving, eventually losing control of the vehicle.
As Muex got out of the vehicle, the deputy observed Muex carrying a firearm in his right hand while attempting to flee on foot. The deputy was able to stop Muex and placed him in custody. Corporal Jeremy Finney located a loaded Bersa .380 caliber firearm underneath Corporal Williams’s vehicle. A search of the suspect vehicle was conducted. Deputies located a straw with a white residue which tested positive for cocaine. Deputies also located a box containing 38 rounds of .380 ammunition, one round of 300 blackout ammunition, $186.00 cash, five cellular telephones, and a digital scale.
At the time of the offense, Muex was on probation from a Florida felony conviction for possession of a firearm as a convicted felon. Muex’ arrest was part of "Operation Crime Driver", a joint federal, state and local law enforcement anti-violence initiative led by the District Attorney General’s Office for the 25th Judicial District, and conducted between February and May 2019, where law enforcement targeted offenders wanted on arrest warrants for violent criminal offenses in Tipton County, Tennessee. Muex was among 6 defendants from the first phase of "Operation Crime Driver" to be indicted in federal court in October, 2019 for various drug and gun offenses. https://www.justice.gov/usao-wdtn/pr/operation-crime-driver-targets-violent-criminals-tipton-county.
On July 27, 2020, U.S. District Court Judge Thomas L. Parker sentenced Muex to 40 months in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "We are pleased to join with our federal, state and local law enforcement partners to focus on the priority areas of firearms and narcotics cases that impact public safety in our rural communities, and we are glad to support this successful joint operation by adopting these cases for aggressive federal prosecution. We are tired of the trigger-pullers and traffickers that terrorize Tipton County, and we will continue our laser focus on the real drivers of violent crime: guns, gangs, and drugs."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Tipton County Sheriff’s Office.
Special Assistant U.S. Attorney Sean Hord prosecuted this case on behalf of the government.
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Three Individuals Charged for Alleged Roles in Twitter HackRead the Press Release
Three individuals have been charged today for their alleged roles in the Twitter hack that occurred on July 15, 2020.
Mason Sheppard, aka “Chaewon,” 19, of Bognor Regis, in the United Kingdom, was charged in a criminal complaint in the Northern District of California with conspiracy to commit wire fraud, conspiracy to commit money laundering, and the intentional access of a protected computer.
Nima Fazeli, aka “Rolex,” 22, of Orlando, Florida, was charged in a criminal complaint in the Northern District of California with aiding and abetting the intentional access of a protected computer.
The third defendant is a juvenile. With exceptions that do not apply to this case, juvenile proceedings in federal court are sealed to protect the identity of the juvenile. Pursuant to the Federal Juvenile Delinquency Act, the Justice Department has referred the individual to the State Attorney for the 13th Judicial District in Tampa, Florida.
“The hackers allegedly compromised over 100 social media accounts and scammed both the account users and others who sent money based on their fraudulent solicitations,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The rapid investigation of this conduct is a testament to the expertise of our investigators, our commitment to responding quickly to cyber attacks, and the close relationships we have built with law enforcement partners throughout the world.”
“There is a false belief within the criminal hacker community that attacks like the Twitter hack can be perpetrated anonymously and without consequence,” said U.S. Attorney David L. Anderson for the Northern District of California. “Today’s charging announcement demonstrates that the elation of nefarious hacking into a secure environment for fun or profit will be short-lived. Criminal conduct over the Internet may feel stealthy to the people who perpetrate it, but there is nothing stealthy about it. In particular, I want to say to would-be offenders, break the law, and we will find you.”
“Upon opening an investigation into this attack, our investigators worked quickly to determine who was responsible and to locate those individuals,” said San Francisco FBI Special Agent in Charge John F. Bennett. “While investigations into cyber breaches can sometimes take years, our investigators were able to bring these hackers into custody in a matter of weeks. Regardless of how long it takes us to identify hackers, we will follow the evidence to where it leads us and ultimately hold those responsible for cyber intrusions accountable for their actions. Cyber criminals will not find sanctuary behind their keyboards.”
“Weeks ago, one of the world’s most prolific social media platforms came under attack. Various political leaders, celebrities, and influencers were virtually held hostage as their accounts were hacked,” said Kelly R. Jackson, IRS-Criminal Investigation (IRS-CI) Special Agent in Charge of the Washington D.C. Field Office. “The public was confused, and everyone wanted answers. We can now start answering those questions thanks to the work of IRS-CI cyber-crime experts and our law enforcement partners. Washington DC Field Office Cyber Crimes Unit analyzed the blockchain and de-anonymized bitcoin transactions allowing for the identification of two different hackers. This case serves as a great example of how following the money, international collaboration, and public-private partnerships can work to successfully take down a perceived anonymous criminal enterprise. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, IRS-CI will continue to follow the money and unravel complex financial transactions.”
“Today’s announcement proves that cybercriminals can no longer hide behind perceived global anonymity,” said Thomas Edwards, Special Agent in Charge, U.S. Secret Service, San Francisco Field Office. “The Secret Service remains committed to pursuing those responsible for cyber-enabled fraud and will continue to hold cyber criminals accountable for their actions. This investigation is a testament to the strong partnerships between the Secret Service, the U.S. Attorney’s Office, the FBI, the IRS, as well as our state, local and international law enforcement partners.”
“Our identities and reputations are sacred. We will continue to aggressively defend and protect individuals, companies, and other entities from new-age cyber-fraud, especially those who scheme to hack, defraud and wreak havoc on U.S. citizens across the country,” said Caroline O’Brien Buster, Special Agent in Charge, U.S. Secret Service, Orlando Field Office. “The Secret Service believes that building trusted partnerships between the private sector and all levels of law enforcement is the proven model for success. I commend the exceptional work conducted by our law enforcement partners and the U.S. Attorney’s Office who worked diligently to hold these defendants accountable.”
As alleged in the complaints, the Twitter attack consisted of a combination of technical breaches and social engineering. The result of the Twitter hack was the compromise of approximately 130 Twitter accounts pertaining to politicians, celebrities, and musicians.
The hackers are alleged to have created a scam bitcoin account, to have hacked into Twitter VIP accounts, to have sent solicitations from the Twitter VIP accounts with a false promise to double any bitcoin deposits made to the scam account, and then to have stolen the bitcoin that victims deposited into the scam account. As alleged in the complaints, the scam bitcoin account received more than 400 transfers worth more than $100,000.
This case is being investigated by the FBI’s San Francisco Division, with assistance from the IRS-Criminal Investigation Cyber Unit; the U.S. Secret Service, San Francisco and Headquarters; the Santa Clara County Sheriff’s Office and their REACT task force and the Florida Department of Law Enforcement.
The case is being prosecuted by Senior Counsel Adrienne Rose of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys William Frentzen and Andrew Dawson of the Northern District of California.
Additional assistance has been provided by the U.S. Attorney’s Office for the Middle District of Florida; the State Attorney for the 13th Judicial District in Tampa, Florida; the Criminal Division’s Office of International Affairs and Organized Crime and Gang Section; the United Kingdom’s Central Authority and National Crime Agency; Chainalysis and Excygent.
The allegations of a criminal complaint are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Anderson’s video statement can be viewed here.
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.
Three Individuals Charged for Alleged Roles in Twitter HackRead the Press Release
SAN FRANCISCO– Three individuals have been charged today for their alleged roles in the Twitter hack that occurred on July 15, 2020.
The announcement was made by United States Attorney David L. Anderson; Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; FBI Special Agent in Charge John L. Bennett; Kelly R. Jackson, IRS Criminal Investigation, Special Agent in Charge of the Washington D.C. Field Office; U.S. Secret Service Special Agent in Charge of the San Francisco Field Office Thomas Edwards and U.S. Secret Service Special Agent in Charge of the Orlando Field Office Caroline O’Brien Buster. Additional facts regarding the investigation and charges can be found here: https://youtu.be/z80K3-q3Kqg.
Mason Sheppard, aka “Chaewon,” 19, of Bognor Regis, in the United Kingdom, was charged in a criminal complaint in the Northern District of California with conspiracy to commit wire fraud, conspiracy to commit money laundering, and the intentional access of a protected computer.
Nima Fazeli, aka “Rolex,” 22, of Orlando, Florida, was charged in a criminal complaint in the Northern District of California with aiding and abetting the intentional access of a protected computer.
The third defendant is a juvenile. With exceptions that do not apply to this case, juvenile proceedings in federal court are sealed to protect the identity of the juvenile. Pursuant to the Federal Juvenile Delinquency Act, the Justice Department has referred the individual to the State Attorney for the 13th Judicial District in Tampa, Florida.
“There is a false belief within the criminal hacker community that attacks like the Twitter hack can be perpetrated anonymously and without consequence,” said U.S. Attorney David L. Anderson for the Northern District of California. “Today’s charging announcement demonstrates that the elation of nefarious hacking into a secure environment for fun or profit will be short-lived. Criminal conduct over the Internet may feel stealthy to the people who perpetrate it, but there is nothing stealthy about it. In particular, I want to say to would-be offenders, break the law, and we will find you.”
“The hackers allegedly compromised over 100 social media accounts and scammed both the account users and others who sent money based on their fraudulent solicitations,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The rapid investigation of this conduct is a testament to the expertise of our investigators, our commitment to responding quickly to cyber attacks, and the close relationships we have built with law enforcement partners throughout the world.”
“Upon opening an investigation into this attack, our investigators worked quickly to determine who was responsible and to locate those individuals,” said San Francisco FBI Special Agent in Charge John F. Bennett. “While investigations into cyber breaches can sometimes take years, our investigators were able to bring these hackers into custody in a matter of weeks. Regardless of how long it takes us to identify hackers, we will follow the evidence to where it leads us and ultimately hold those responsible for cyber intrusions accountable for their actions. Cyber criminals will not find sanctuary behind their keyboards.”
“Weeks ago, one of the world’s most prolific social media platforms came under attack. Various political leaders, celebrities, and influencers were virtually held hostage as their accounts were hacked,” said Kelly R. Jackson, IRS-Criminal Investigation (IRS-CI) Special Agent in Charge of the Washington D.C. Field Office. “The public was confused, and everyone wanted answers. We can now start answering those questions thanks to the work of IRS-CI cyber-crime experts and our law enforcement partners. Washington DC Field Office Cyber Crimes Unit analyzed the blockchain and de-anonymized bitcoin transactions allowing for the identification of two different hackers. This case serves as a great example of how following the money, international collaboration, and public-private partnerships can work to successfully take down a perceived anonymous criminal enterprise. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, IRS-CI will continue to follow the money and unravel complex financial transactions.”
“Today’s announcement proves that cybercriminals can no longer hide behind perceived global anonymity,” said Thomas Edwards, Special Agent in Charge, U.S. Secret Service, San Francisco Field Office. “The Secret Service remains committed to pursuing those responsible for cyber-enabled fraud and will continue to hold cyber criminals accountable for their actions. This investigation is a testament to the strong partnerships between the Secret Service, the U.S. Attorney’s Office, the FBI, the IRS, as well as our state, local and international law enforcement partners.”
“Our identities and reputations are sacred. We will continue to aggressively defend and protect individuals, companies, and other entities from new-age cyber-fraud, especially those who scheme to hack, defraud and wreak havoc on U.S. citizens across the country,” said Caroline O’Brien Buster, Special Agent in Charge, U.S. Secret Service, Orlando Field Office. “The Secret Service believes that building trusted partnerships between the private sector and all levels of law enforcement is the proven model for success. I commend the exceptional work conducted by our law enforcement partners and the U.S. Attorney’s Office who worked diligently to hold these defendants accountable.”As alleged in the complaints, the Twitter attack consisted of a combination of technical breaches and social engineering. The result of the Twitter hack was the compromise of approximately 130 Twitter accounts pertaining to politicians, celebrities, and musicians.
The hackers are alleged to have created a scam bitcoin account, to have hacked into Twitter VIP accounts, to have sent solicitations from the Twitter VIP accounts with a false promise to double any bitcoin deposits made to the scam account, and then to have stolen the bitcoin that victims deposited into the scam account. As alleged in the complaints, the scam bitcoin account received more than 400 transfers worth more than $100,000.
This case is being investigated by the FBI’s San Francisco Division, with assistance from the IRS-Criminal Investigation Cyber Unit; the U.S. Secret Service, San Francisco and Headquarters; the Santa Clara County Sheriff’s Office and their REACT task force and the Florida Department of Law Enforcement.
The case is being prosecuted by Assistant U.S. Attorneys William Frentzen and Andrew Dawson of the Northern District of California and Senior Counsel Adrienne Rose of the Criminal Division’s Computer Crime and Intellectual Property Section.
Additional assistance has been provided by the U.S. Attorney’s Office for the Middle District of Florida; the State Attorney for the 13th Judicial District in Tampa, Florida; the Criminal Division’s Office of International Affairs and Organized Crime and Gang Section; the United Kingdom’s Central Authority and National Crime Agency; Chainalysis and Excygent.
The allegations of a criminal complaint are merely allegations, and the defendants are presumed innocent unless or until the allegations against them are proved beyond any reasonable doubt.
Statement of the Department of Justice Antitrust Division on the Closing of Its Investigation of London Stock Exchange Group and RefinitivRead the Press Release
Assistant Attorney General Makan Delrahim of the Antitrust Division of the U.S. Department of Justice issued the following statement today in connection with the closing of the division’s investigation into the proposed acquisition of Refinitiv by the London Stock Exchange Group (LSEG):
“After an extensive review of the proposed transaction, the Antitrust Division determined that the combination of LSEG and Refinitiv is unlikely to result in harm to competition or American consumers.”
LSEG, headquartered in London, operates the London Stock Exchange, the Italian stock exchange, Borsa Italiana, and a number of other trading platforms for trading of stocks, other equity-like exchange traded products, bonds and derivatives. LSEG offers indexes such as the FTSE 100 and Russell 2000, analytical tools, and data solutions through its FTSE Russell business.
Refinitiv, headquartered in New York City, is one of the main providers of financial markets data and infrastructure. Refinitiv offers consolidated real-time and non-real time data feeds of stocks and other discrete content, and desktop solutions and terminals for financial industry professionals. It also supplies foreign exchange benchmarks and controls several electronic trading venues in various asset classes.
In August 2019, LSEG and Refinitiv announced that LSEG had reached an agreement to acquire Refinitiv in a transaction valued at approximately $27 billion. Following that announcement, the Antitrust Division conducted a comprehensive eight-month investigation, during which it reviewed documents, analyzed data, and interviewed industry participants.
In conducting its analysis, the Division considered the vertical relationships between LSEG and Refinitiv where one firm serves as a supplier to the other of needed inputs, as well as the horizontal aspects of the transaction where LSEG and Refinitiv offer competing products. In analyzing these different aspects to the transaction, the Division used both the recently released Vertical Merger Guidelines and the Horizontal Merger Guidelines, issued by the Antitrust Division and the Federal Trade Commission.
When analyzing the vertical aspects of the transaction, the division considered how the proposed transaction could affect the ability and incentives of LSEG and Refinitiv to change the licensing terms for proprietary data feeds used by their rivals to supply products that compete against similar products from LSEG and Refinitiv. Examples of such data feeds include pricing data for financial instruments, currency benchmark rates, and securities identifiers.
The division’s analysis considered how changes in the licensing of LSEG’s and Refinitiv’s proprietary data feeds could affect competition for financial indexes and financial data products, and found that the proposed transaction is unlikely to significantly lessen competition for those products where rivals rely on LSEG and Refinitiv for inputs. In many instances, for example, the rivals who purchase products and services from LSEG or Refinitiv also sell products and services back to LSEG and Refinitiv. The division’s analysis took into account the competitive significance in the United States of LSEG’s and Refinitiv’s products compared to their rivals’ products, and the bargaining relationships these rivals have with LSEG and Refinitiv. The division’s analysis also considered the possible competitive effects of the proposed transaction on customers in the United States of LSEG, Refinitiv, and their rivals. Because LSEG and Refinitiv’s rivals would maintain significant bargaining leverage that would make post-transaction price increases unlikely, and because any potential increase in the fees of the combined firm would not likely be passed on to customers, the division concluded the vertical aspects of the transaction would not cause a significant lessening of competition.
With respect to the horizontal aspects of the transaction, the division found that in areas where LSEG and Refinitiv offer similar products, such as financial indexes, that the combination of the companies’ products are unlikely to significantly lessen competition. This analysis was based on a review of LSEG’s and Refinitiv’s products that are similar to each other, an analysis of whether these products actually compete against each other in the United States, and the small changes the transaction would likely cause in post-transaction market concentration for these products based on the companies’ market shares in the United States.
The division considered several theories of harm in its review of the proposed transaction, and concluded that these theories were not supported by the available evidence. For these and other reasons, the division determined that the proposed transaction is unlikely to substantially harm consumers in the United States and therefore closed its investigation.
Six Charged in Transnational Money Laundering Operation Involving Elder FraudRead the Press Release
TYLER, Texas – U.S. Attorney Stephen J. Cox announced today that six individuals have been arrested pursuant to a federal indictment alleging money laundering violations.
“The threat posed by transnational organized crime is continuing to increase,” said U.S. Attorney Stephen J. Cox. “Of particular concern to us is the financial exploitation of older Americans by foreign-based crime rings. These villains are located thousands of miles away, but they can target seniors here at home through believable scams designed to rob them of hard-earned savings. Our district will be relentless in the fight against not only these transnational criminal organizations, but also their extensive networks of associates and money mules laundering the stolen funds. We also plan to develop a new initiative with our law enforcement partners to ramp up our enforcement efforts on this front.”
A federal grand jury returned the two-count indictment on June 18, 2020, charging a money laundering conspiracy and operation of an unlicensed money transmitting business. The individuals charged include:
Jeremy Christopher Jones, 45, of Kansas City, Kansas;
John Arthur Fuss, 69, of Wartrace, Tennessee;
Perry Lewis Crenshaw, Jr., 26, of Pensacola, Florida;
Mary Elizabeth Booth, a/k/a Mary Beaman, 39, of Hammond, Louisiana;
Ronnie Duane Booth, 37, of Hammond, Louisiana; and
Tracey Lynn Brookshier, 51, of Tyler, Texas.
All six defendants were arrested in other districts and then later made court appearances in the Eastern District of Texas. Jones was arrested in the District of Kansas on June 29, 2020, and arraigned on July 29, 2020. Fuss was arrested on July 1, 2020, in the Eastern District of Tennessee and arraigned on July 23, 2020. Crenshaw was arrested in the Northern District of Florida on June 30, 2020, and arraigned on July 21, 2020. Beaman, Booth, and Brookshire were all arrested on July 6, 2020, in the Eastern District of Louisiana and arraigned on July 22, 2020.
According to the indictment, the defendants engaged in a money laundering conspiracy from July 2012 to September 2019. As part of the operation, co-conspirators allegedly employed by call centers fraudulently induced victims, some of whom were located in the Eastern District of Texas, to transfer funds to the defendants and other co-conspirators. These callers allegedly made unsolicited calls to individuals in the United States and employed various schemes that directly targeted or predominantly affected elder victims.
The indictment alleges that the schemes included impersonation of Social Security Administration and IRS/Department of Treasury officials. Callers allegedly claimed that the victim’s Social Security number had been suspended because of suspicious activity and could be reactivated by payment of some amount. Other callers allegedly claimed that victims owed back taxes and were required to satisfy the fictional debt to avoid threatened legal action. Some callers allegedly posed as employees of mortgage companies. Victims, who included borrowers with mortgages backed by the U.S. Department of Housing and Urban Development Federal Housing Administration, were promised lower rates through fictitious loan modifications and, in some instances, threatened with foreclosure if they did not agree to pay for the loan modification.
The indictment further alleges that victims wired funds through money services businesses to locations in the Eastern District of Texas and elsewhere. The indictment charges that the defendants’ money laundering conspiracy involved more than 4,000 victim wire transfers that totaled over $3.2 million. The defendants and co-conspirators receiving these illicit proceeds are alleged to have retained a percentage of the victim funds for their services.
The indictment also charges that the defendants created fictitious companies and then deposited victim funds into bank accounts opened in the names of these fictitious companies. The defendants are alleged to have made cash withdrawals of the fraudulently-obtained money and transferred some of the proceeds to other accounts, some of which were located outside of the United States.
Jvones, Beaman, Booth, and Brookshier were separately charged with operation of an unlicensed money transmitting business in the State of Texas.
“I’m very proud of my IRS service and I take these impersonation scams very personally. I am disgusted by attempts to impersonate IRS employees and steal money from the taxpaying public,” stated Brian Payne, Special Agent in Charge of the Tampa Field Office of IRS Criminal Investigation. “Our office will continue to use the full force of the financial skills of our agents to identify and investigate these impactful crimes with our law enforcement partners in order to improve confidence in the taxpayers’ contacts with the IRS and its public servants.”
“Over the last several years, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating IRS employees,” said J. Russell George, the Treasury Inspector General for Tax Administration. “TIGTA and our law enforcement partners will do everything within our power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.”
“Creating a scheme that enriches the defendants while defrauding distressed and vulnerable HUD insured borrowers jeopardizes the many legitimate processes in place to protect a person’s mortgage,” said HUD Office of Inspector General, Special Agent in Charge, Nick Nelson. “I want to thank the tireless efforts of our law enforcement partners and the U. S. Attorney’s Office, whose collaboration made these charges possible. The HUD Office of Inspector General will continue to aggressively prosecute these type of cases.”
“As reflected by the indictment, the United States Secret Service in Indianapolis -- along with our federal, state and local partners across America -- remains dedicated to the pursuit and apprehension of those fraudsters who seek to cheat their way to riches by preying upon some of our most vulnerable citizens,” said Eric Reed, Special Agent in Charge of the Indianapolis Field Office. “I commend the excellent work of all the prosecutors and agents who have worked on this matter, and I am especially appreciative of the successful teamwork demonstrated by the many different law enforcement agencies who contributed to this investigation. The Secret Service will continue to prioritize cases that have economic impact to the community and those that involve such ruthless schemes.”
If convicted, the defendants face up to 20 years in federal prison on the money laundering conspiracy charge and up to 5 years on the charge of operating an unlicensed money transmitting business. Any proceeds are also subject to forfeiture.
In October 2017, President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. This past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
This case is being investigated by the Internal Revenue Service – Criminal Investigations, the Treasury Inspector General for Tax Administration, the U.S. Department of Housing and Urban Development Office of Inspector General, and the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Frank Coan.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rory Jackson, Rachael Gauthier, Jocelyn Pond, Justine Pond, and Sarah Cassell Sentenced for Violations of the Controlled Substances ActRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on July 29, 2020, United States District Judge Christina Reiss sentenced Rory Jackson, 36, of Queens, New York to 18 months in prison for possession with intent to distribute fentanyl, to be followed by five years of supervised release. Before sentencing Jackson, Judge Reiss, earlier this year, also sentenced his co-defendants Rachael Gauthier, of Brattleboro, Vermont; Jocelyn Pond, of West Brattleboro, Vermont; and Justine Pond, of Putney Vermont, all for distribution of fentanyl; and Sarah Cassell, of Brattleboro, Vermont, for distribution of heroin. Gauthier was sentenced to one year and one day in prison. Jocelyn Pond was sentenced to time served. Justine Pond was sentenced to 5 years’ probation, and Sarah Cassell was sentenced to time served.
All five defendants were arrested in connection with the April 10, 2019 search of 48 Central Street in Brattleboro, and as part of a multi-agency, multi-jurisdictional law enforcement effort that focused on drug trafficking in the Brattleboro area. The Drug Enforcement Administration and the Vermont Drug Task Force provided crucial investigative assistance in this five-defendant case. In addition, the April 2019 enforcement surge in the Brattleboro area involved the participation of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Department of Homeland Security - Homeland Security Investigations; the Federal Bureau of Investigation; the United States Marshals Service; the Brattleboro Police Department; the Vermont State Police; CBP Air/Marine Unit; and New Hampshire Drug Task Force.
U.S. Attorney Christina E. Nolan commended the inter-agency cooperation underlying this case and the broader Brattleboro enforcement effort. “Our office continues to prioritize the prosecution of trafficking of deadly narcotics in our Vermont communities, and appreciate the hard work of our law enforcement partners.”
The United States was represented in this matter by Assistant U.S. Attorneys Nicole Cate and Nikolas Kerest. Jackson was represented by Richard Bothfeld, Esq. Gauthier was represented by David Watts, Esq. Jocelyn Pond was represented by Katina Ready, Esq. Justine Pond was represented by Thomas Sherrer, Esq. Sarah Cassell was represented by Heather Ross, Esq.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Rochester Man Indicted in Multi-Million Dollar Nationwide Ponzi SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Law, age 41, of Rochester, New York, was indicted on July 28, 2020, by a federal grand jury on fraud charges.
According to United States Attorney David J. Freed, the indictment alleges that Law conspired with Perry Santillo and others to defraud investors as part of a Ponzi scheme that netted over $115 million nationwide. Law is charged with conspiracy to commit mail fraud, wire fraud, and bank fraud, and with four counts of mail fraud.
Previously, Perry Santillo pled guilty to felony charges in Rochester and Scranton, and admitted to defrauding investors around the country as part of a Ponzi scheme that included victims in the Middle District of Pennsylvania. Santillo admitted as part of his plea that the scheme took in approximately $115 million in fraudulent investments, and resulted in a total loss to investors of $70.7 million.
Perry Santillo was a founder, member, manager, and CEO of First Nationle Solution, LLC. Law joined Santillo in offering and selling securities in First Nationle, Boyles America, and other issuers to investors. Law also provided investment advice to those same investors.
In fact, First Nationle, Boyles America, and other issuers did not conduct their purported businesses. Rather, Santillo and others working with him operated each business primarily as a Ponzi scheme by issuing securities in the form of promissory notes, soliciting and then misappropriating substantial amounts of investor funds, and using some remaining investor funds to pay off redeeming investors.
As part of the scheme, Santillo and others travelled the country and bought books of business from investment professionals such as registered representatives and investment advisors.
In the Middle District of Pennsylvania, Santillo, Law and those who aided and abetted them purchased a book of business from an investment advisor and conducted their fraud scheme under the guise of an “investment business” located in Scotrun, Monroe County, using various business names, including Advice and Life Group, Poconos Investments, First American Securities, and Financial Planners Group of America.
Santillo and Law, with the help of others, then solicited investors from within those acquired books of business to withdraw money from traditional investments such as annuities, and reinvest the funds in issuers controlled by Santillo and others, including First Nationle, Percipience, and United RL, sometimes without disclosing that Santillo and his confederates controlled those issuers.
Through offering documents, company websites, and in-person pitches, Santillo and his confederates, including Law, falsely indicated that investments would be used to fund legitimate businesses. However, rather than use investors’ funds for purported legitimate business purposes, Santillo and his confederates misappropriated vast amounts of the funds for their personal use and used some of the funds to pay redeeming investors to perpetuate the Ponzi scheme. Santillo, Law, and their associates also misrepresented the ongoing performance – or lack thereof – of investors’ investments. Santillo, Law, and others provided account statements to investors falsely stating that investor funds were invested, falsely stating investment returns, and in some cases falsely stating that a bonus had been credited to investor accounts. In certain instances, Santillo and others provided investors with bonus funds or interest payments, and in other cases Santillo and others provided redeeming investors with all or part of their funds, at times with returns. These were Ponzi payments derived from new investor funds rather than actual investment returns. In other cases, Santillo and others failed to fulfill the requests of investors to redeem their investments.
Among the victim investors defrauded in the Middle District of Pennsylvania was an individual with the initials “JP.” Victim JP first invested $159,000 in First Nationle in September 2015, and invested another $380,000 in June 2016. In 2017, JP also invested twice in United RL, the first an investment of $20,000 and the second $52,000. Santillo and confederates also induced JP to invest $325,000 in a third fraudulent issuer. JP was repaid only $15,000, and was defrauded of the remainder of the $936,000 total investment. The specific charge in the information to which Santillo pled guilty related to a mailing sent in relation to the fraudulent investments JP was sold by Santillo and his confederates.
The case was investigated by the U.S. Federal Bureau of Investigations; the Securities and Exchange Commission; United States Postal Inspection Service; the Internal Revenue Service, Criminal Investigation Division; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud; the New York State Department of Financial Services; and the Harrisburg Police Department, and is being prosecuted by Assistant U.S. Attorney Sean A. Camoni in Scranton, and Assistant United States Attorney John Field in Rochester.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Roanoke Man Faces Life Sentence After Pleading Guilty to Gang-related ChargesRead the Press Release
ROANOKE, VIRGINIA – Trayvone Kasey, a member of the Rollin’ 30s Crips in Roanoke, who conspired with others to commit murder and other gang-related violent crimes, pleaded guilty today in federal court to a plethora of federal crimes as part of the Western District of Virginia’s ongoing Project Safe Neighborhoods effort to reduce gun and violent crime in the Roanoke Valley. United States Attorney Thomas T. Cullen, David W. Archey, Special Agent in Charge of the FBI’s Richmond Division and Samuel Roman Jr., Roanoke Chief of Police made the announcement today following the guilty plea.
Kasey, 21, of Roanoke, was federally indicted in October 2018 on federal racketeering charges, conspiracy to commit murder, and several firearms charges. He pleaded guilty today to federal racketeering, murder in aid of racketeering, conspiracy to committee murder in aid of racketeering, possession of a firearm in furtherance of a crime of violence resulting in death, interference with commerce by robbery, and discharging a firearm and possessing a firearm in furtherance of a crime of violence resulting in death. At sentencing, Kasey faces up to life in prison. A sentencing hearing for Kasey will be scheduled after the trial of the remaining defendants, Sean Denzel Guerrant and DeMonte Rashod Mack.
Kasey and his alleged co-conspirators, Sean Guerrant, Demonte Mack, and Chauncey Levesy, were members and associates of the Rollin’ 30s Crips, which also called itself the “Dirt Gang.” The Rollin’ 30s Crips are a national street gang founded in the greater Los Angeles, California area with smaller sets in other cities throughout the United States. The Roanoke set of the Rollin’ 30s operated primarily in northwest Roanoke, centered in and around the Lansdowne neighborhood.
As part of today’s guilty plea, Kasey admitted that beginning no later than April 22, 2017, he, Guerrant, Mack, and Levesy conspired to conduct a pattern of racketeering activity including multiple threats and acts involving violent crime.
Specifically, between on or about June 14, 2017, and June 15, 2017, Guerrant, Mack, Kasey, and Levesy conspired to murder “Victim D.F.” Court documents further allege that Mack and Kasey murdered “Victim N.L.” at the direction of Guerrant.
Levesy has also pleaded guilty to racketeering and conspiracy to commit murder in aid of racketeering. Levesy will also be sentenced after the trial of Guerrant and Mack.
The investigation of the case was conducted by the City of Roanoke Police Department and the Federal Bureau of Investigation’s Violent Crimes Task Force. The investigation was a coordinated effort that also involved law enforcement assets from the Virginia State Police, Roanoke County Police Department, the Federal Bureau of Alcohol, Tobacco, and Firearms, and the Federal Drug Enforcement Agency.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Randolph County man sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Eric Allen Harris, of Beverly, West Virginia, was sentenced today to 36 months incarceration for a drug distribution charge, U.S. Attorney Bill Powell announced.
Harris, age 40, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in June 2019. Harris admitted to distributing methamphetamine, also known as “ice,” in September 2018 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crime Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. District Judge Thomas S. Kleeh presided.
Project Safe Neighborhoods: Charleston Man Sentenced for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison for a gun crime, according to United States Attorney Mike Stuart. Harry Lee Nguyen, 24, was sentenced to 24 months in prison for being a felon in possession of a firearm.
On January 10, 2020, Nguyen pled guilty to being a felon in possession of a firearm based on his arrest by Charleston Police detectives on August 3, 2019. He admitted that he had a .40 caliber Smith & Wesson handgun in his possession and threw the gun into a yard of a residence on Charleston’s West Side. Nguyen has two prior felony convictions which prohibit him from having a weapon – one on February 1, 2016 for wanton endangerment with a firearm where he twice shot at a woman with a handgun and missed, and another on May 1, 2017 for malicious wounding where he punched and kicked a victim breaking the victim’s nose and ribs.
The Charleston Police Department investigated the case. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Steven Loew handled the prosecution.
This case was prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00275.
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Project Guardian: Two Men Appear in Federal Court on Gun ChargesRead the Press Release
Two felons appeared in federal court this week for gun crimes, according to United States Attorney Mike Stuart.
Shad Michael Knight, 27, of Parkersburg, was sentenced to 60 months in prison for being a felon in possession of a firearm. Knight’s prison sentence will begin following the completion of a sentence that he currently is serving through Wood County Circuit Court, and will be followed by three years of supervised release. Knight previously admitted that on October 21, 2019, he was driving a blue Chevrolet Cruze when it was pulled over in the 1000 block of 29th Street in Parkersburg due to a busted tail light and Knight having a suspended driver’s license. During the traffic stop, a Parkersburg Police Department K-9 responded to the scene and provided a positive indication for the presence of controlled substances within the vehicle. The vehicle was then searched, and officers located a backpack behind the driver’s seat containing a 9mm pistol, two loaded magazines, two boxes of 9mm ammunition, several small plastic bags, and a small amount of methamphetamine. Knight admitted that the firearm was within his possession, that he had placed the firearm in the backpack prior to the traffic stop, and that he knew that he was not permitted to possess firearms under federal law. Knight had previously been convicted of possession of a controlled substance with intent to deliver in Wood County Circuit Court, and was still on parole for that offense when this incident occurred. The Parkersburg Narcotics Task Force, the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
Michael LeRose, 32, of Nitro, pled guilty to being a felon in possession of a firearm. LeRose admitted that on June 9, 2020, law enforcement officers executed a search warrant on his residence. Inside they recovered a .22 caliber rifle, a 5.56 mm caliber semi-automatic rifle, two 9mm handguns, two AM-15 rifle receivers, and a full auto conversion kit for a semi-automatic rifle. They also recovered assorted ammunition, a homemade silencer, marijuana and psychedelic mushrooms. A tactical vest also was found in a separate search of his car. LeRose acknowledged that his addiction to drugs prohibited him from possessing firearms, as he was a user of multiple illegal narcotics. He faces up to 10 years in prison when sentenced on October 27, 2020. The Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00007 (Knight) and Case No. 2:20-cr-00097 (LeRose).
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Portland Man Charged in July 28, 2020 Arson at Mark O. Hatfield U.S. CourthouseRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Gabriel Agard-Berryhill, 18, has been charged by criminal complaint with using fire to maliciously damage the Mark O. Hatfield U.S. Courthouse in downtown Portland on July 28, 2020.
“No legitimate protest message is advanced by throwing a large explosive device against a government building. Mr. Agard-Berryhill’s actions could have gravely injured law enforcement officers positioned near the courthouse, other protesters standing nearby, or himself,” said U.S. Attorney Williams. “I applaud the ATF agents and U.S. Marshals Service deputies who worked quickly to identify Mr. Agard-Berryhill before he had an opportunity to hurt others.”
“The violent opportunists engaged in dangerous acts of violence, such as arson, need to realize there will be grave consequences,” said Russel Burger, U.S. Marshal for the District of Oregon. “Serious crimes of this nature go beyond mere property damage to the courthouse and endanger people’s lives.”
According to court documents, at approximately 11:50pm on July 28, 2020, security cameras at the Hatfield Federal Courthouse captured footage of a large incendiary object enter the building’s portico area and land near plywood sheeting affixed to the building’s façade. A few seconds later, the object exploded, igniting a fire near the building’s main entrance. Federal law enforcement personnel collected various items near the site of the explosion and sent them to a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) laboratory for further analysis.
ATF investigators reviewed social media posts from the night of the explosion and located videos of the incendiary object being thrown. The individual depicted throwing the object, later identified to be Agard-Berryhill, was a young, Caucasian male wearing a green colored vest, camouflage pants, and a mask. Investigators observed the person in other protest-related videos posted online wearing the same vest and attempting to hold a shield in front of a naked woman.
Investigators also found a post on Twitter depicting a product review for the vest. The review included a photo of a person wearing the vest who matched the description of the person seen throwing the explosive device. The review states “I got this [vest] for my grandson who’s a protestor [sic] downtown, he uses it every night and says its [sic] does the job.” Investigators later found the same photo on a Facebook page and, using law enforcement databases, were able to positively identify Agard-Berryhill.
Agard-Berryhill made his first appearance in federal court today before a U.S. Magistrate Judge and was ordered released pending further court proceedings. Arson is punishable by up to 20 years in prison with a mandatory minimum sentence of 5 years.
This case is being jointly investigated by ATF and the U.S. Marshals Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Criminal complaints are only accusations of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pineville Man Charged with Forced Labor and Transporting a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
ALEXANDRIA, La. – A multiple-count indictment was unsealed today in federal court in Alexandria charging Darnell Fulton, 36, with forced labor, conspiracy, and transportation of a minor with the intent to engage in criminal sexual activity, announced David C. Joseph, United States Attorney for the Western District of Louisiana, Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, and FBI’s New Orleans Field Office Special Agent in Charge Bryan A. Vorndran.
The defendant was arrested and taken into federal custody on Tuesday, July 28, 2020, and made his initial appearance in court on July 29, 2020. A detention hearing is scheduled for Friday, July 31, 2020.
According to the allegations set forth in the indictment, the defendant forced three victims, who were his step-children, to provide labor and services in his business by means of force and threats of force by causing the victims to believe that if they did not perform the labor and services, they would suffer serious physical harm.
As part of the conspiracy, the indictment alleges that the defendant subjected the victims to physical violence, sexual abuse, verbal abuse, withholding of food, degradation, intimidation, and psychological manipulation in order to obtain uncompensated labor and services from the victims. As the conspiracy progressed, the defendant took the victims out of school, water-boarded them, and set daily sale quotas. In addition, the indictment alleges that at three times between June 2016 and May 17, 2019, the defendant transported the minors in interstate commerce with the intent that they engage in criminal sexual activity.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Fulton faces a sentence of up to life in prison, as well as mandatory restitution.
The case is being investigated by the Federal Bureau of Investigation, Alexandria Resident Agency, with assistance from the Alexandria Police Department. The case is being prosecuted by Assistant U.S. Attorney John Luke Walker for the Western District of Louisiana and Trial Attorney Maryam Zhuravitsky for the Civil Rights Division’s Human Trafficking Prosecution Unit.
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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.
Pineville Man Charged with Forced Labor and Transporting a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
Darnell Fulton, 36, was charged today in a multiple count indictment with charges including forced labor, conspiracy, and transportation of a minor with the intent to engage in criminal sexual activity, announced Eric S. Dreiband, Assistant Attorney General for Civil Rights, and David C. Joseph, U.S. Attorney for the Western District of Louisiana.
The defendant was arrested and taken into federal custody on Tuesday, July 28, 2020, and made his initial appearance in court on July 29, 2020. A detention hearing is scheduled for Friday, July 31, 2020.
According to the allegations set forth in the indictment, the defendant forced three victims, who were his step-children, to provide labor and services in his business by means of force and threats of force to the victims and by means of a scheme, plan, and pattern intended to cause the victims to believe that if they did not perform the labor and services, that they and others would suffer serious harm.
According to the indictment, the defendant conspired to do so with others and the conspiracy included forcing the victims to bake and sell brownies to sustain the family. As part of the conspiracy, the indictment alleges that the defendant subjected the victims to physical violence, sexual abuse, verbal abuse, withholding of food, degradation, intimidation, and psychological manipulation in order to obtain uncompensated labor and services from the victims. As the conspiracy progressed, the defendant took the victims out of school, water-boarded them, and set daily sale quotas. In addition, the indictment alleges that at three times between June 2016 and May 17, 2019, the defendant transported, and conspired to transport, a minor, under the age of 18, in interstate commerce, with the intent that the minor engage in criminal sexual activity.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted, the defendant faces a sentence of up to life in prison, as well as mandatory restitution.
The case is being investigated by the Alexandria office of the FBI, with assistance from the Alexandria Police Department. It is being prosecuted by Assistant U.S. Attorney John Luke Walker for the Western District of Louisiana and Trial Attorney Maryam Zhuravitsky for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Pine Grove Man Sentenced to 97 Months’ Imprisonment on Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brett Lamar Heinbach, age 38, of Pine Grove, Pennsylvania, was sentenced on July 27, 2020, to 97 months’ imprisonment followed by four years supervised release by United States District Court Judge Robert D. Mariani, for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to United States Attorney David J. Freed, between March 8, 2016 and April 9, 2016, Heinbach conspired with other individuals to distribute methamphetamine throughout Schuylkill County. During the conspiracy, Heinbach possessed multiple firearms, one of which had an obliterated serial number.
The case was investigated by the Pennsylvania State Police, Schuylkill County District Attorney’s Office and Homeland Security and was prosecuted by Assistant U.S. Attorney Jenny P. Roberts.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
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Pensacola Man Pleads Guilty to Possessing Firearms at Veterans Affairs FacilityRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, yesterday announced that Pensacola resident Howell E. Camp, 58, pled guilty to carrying a concealed firearm and possession of firearms on federal property, stemming from a May 6 incident at the Department of Veterans Affairs (VA) Joint Ambulatory Care Clinic in Pensacola. Camp admitted that he illegally possessed a 5.56 millimeter Del-Ton Incorporated rifle and a 9 millimeter Smith & Wesson pistol while at the federal facility.
Camp admitted that he became agitated while waiting for a prescription to be filled by the clinic, and left the federal facility to retrieve multiple firearms from his residence. When he returned, Camp approached the clinic doors armed with his rifle, which was loaded with 20 rounds, including one in the chamber. He was stopped at gunpoint by Veterans Affairs Police officers and taken into custody. The officers found a concealed Smith & Wesson pistol in Camp’s waistband.
“Tragedy was averted thanks to the diligence and professionalism of the VA Police officers on duty that day,” said U.S. Attorney Keefe. “We and our law enforcement partners are deeply committed to stopping gun violence and protecting federal facilities and the people who work and visit them. Veterans clinics are there to serve the brave men and women who have given so much to serve our nation, and those officers were truly heroes that day.”
Assistant United States Attorney David L. Goldberg is prosecuting the case following a joint investigation by the United States Department of Veterans Affairs Office of the Inspector General (VA OIG) joined by the Federal Bureau of Investigation and the Florida Department of Law Enforcement (FDLE).
“The VA Police officers on scene deserve the highest praise. They showed tremendous restraint, protected the public, and even protected Howard Camp. Because of their actions, lives were saved,” said Jack Massey, FDLE Pensacola Special Agent in Charge. “FDLE will continue working closely with our federal partners doing all we can to protect our community.”
“Camp’s dangerous actions risked the safety and well-being of veterans and VA employees,” said David Spilker, VA OIG Special Agent in Charge. “VA OIG is steadfast in ensuring that VA facilities remain a safe environment for veterans and their families to seek healthcare services and we will work with our law enforcement partners to hold accountable anyone who attempts to commit acts of violence or intimidation at VA facilities. I commend the swift and heroic actions of the VA Police officers, who prevented a potentially deadly outcome in this case."
Camp faces up to six years’ imprisonment following his guilty plea. As a convicted felon, he will be prohibited from possessing firearms in the future. His sentencing has been scheduled for October 29, 2020 at the United States Courthouse in Pensacola.
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 public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - Howard CampPennsylvania and Rhode Island Men Charged with Fraud and Identity Theft Offenses in Automobile Warranty SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian Larry, age 56, of Clark’s Summit, Pennsylvania, and Jason Pannone, age 39, of North Providence, Rhode Island, were indicted on July 28, 2020, by a federal grand jury on fraud and identity theft offenses.
According to United States Attorney David J. Freed, the indictment alleges that Larry and Pannone, along with other co-conspirators conspired to defraud a Wilkes-Barre based automobile warranty company from approximately January 2014 through October 2018. The conspirators are alleged to have created false invoices for nonexistent automobile repair work supposedly performed at various garages in Rhode Island, Massachusetts, and Pennsylvania, including by forging the policy owners’ signatures on the paperwork. The false and forged documentation was then sent to the warranty company to obtain payment for the nonexistent repairs, with the conspirators splitting the warranty company’s payments between themselves. Larry is alleged to have been a claims adjuster at the warranty company who approved of the fraudulent claims in exchange for kickbacks. Pannone is alleged to have been the owner or employee of three of the garages that submitted fraudulent claims.
Over the course of the conspiracy, the conspirators allegedly obtained in excess of $400,000 in fraudulent proceeds. In addition to the conspiracy charge, Larry and Pannone also are charged with several counts of wire fraud and aggravated identity theft. Larry further is charged with mail fraud and with providing false statements to federal agents during the course of the investigation.
Separately, the United States Attorney’s Office unsealed charges against two other alleged co-conspirators. Herman Cabral, age 61, of Cranston, Rhode Island, was charged in an information with conspiring to commit wire fraud. Cabral allegedly processed false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile repair shop, A Plus Collision Center LLC. Cabral pleaded guilty on July 23, 2019, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and he has agreed to repay over $211,000 in restitution.
Matthew Gershkoff, age 63, of North Providence, Rhode Island, was charged in an information with conspiring to commit wire fraud, and with aggravated identity theft. Gershkoff allegedly prepared and forged false invoices for nonexistent automobile repairs at multiple automobile repair shops located in Rhode Island and in Massachusetts. Gershkoff pleaded guilty to the charges on May 18, 2020, to causing between $250,000 and $550,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and has agreed to repay restitution.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the fraud offenses are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charges carry a mandatory, consecutive two-year minimum. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Owner of Chicago Tax Preparation Business Charges with Preparing False ReturnsRead the Press Release
A federal grand jury in Chicago, Illinois, returned a superseding indictment yesterday charging the owner of a tax preparation business with filing tax returns for herself and clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the superseding indictment, Eunice Salley owned and operated Tax Research and Resolution Inc., a tax preparation business located in Chicago, Illinois. From 2016 through 2017, Salley allegedly created false W-2 Forms for clients that reported fake wages and withholdings and then falsified clients’ tax returns accordingly, in order to fraudulently claim refunds. The superseding indictment further alleges that Salley falsified her own 2017 tax return by not reporting all of the income she earned from her business.
In November 2019, Salley was charged in an indictment alleging that from 2010 through 2017, she misrepresented to a pension administrator that her relative was still alive and eligible for pension payments, even though the relative was no longer eligible due to her death in 2009. Salley allegedly used the pension funds her own benefit.
If convicted of the charges in today’s superseding indictment charges, Salley faces a maximum sentence of three years in prison on each count of aiding and assisting in filing a false return and filing a false return. Salley also faces a maximum of 20 years in prison for the pension fraud scheme, as well as five years in prison on each count of pension fraud. She also faces a period of supervised release, restitution, and monetary penalties.
An indictment or superseding indictment merely allege that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorney Barry Jonas, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Operation LeGend Results in 97 Arrests to Date, Including Five Murder SuspectsRead the Press Release
KANSAS CITY, Mo. – U.S. Attorney Tim Garrison announced today that 97 arrests have been made by local and federal law enforcement officers in less than two weeks since the launch of Operation LeGend.
“This is the impact of a targeted initiative to reduce violent crime, carried out by local and federal law enforcement working together,” Garrison said. “Many of those who were arrested were illegally carrying firearms or illegal drugs. By bringing them to justice, we reduce the level of violence on the street and the threat of crime in our neighborhoods.”
“This is our first detailed report to update the public on the progress against violent crime that has been achieved as a result of Operation LeGend,” Garrison added. “We are striving to maintain as much transparency as possible for an ongoing law enforcement operation. I’ve been communicating with local pastors, community leaders, victims of violent crime, and public officials, and will continue to provide regular updates.”
Among those arrested from July 15 to July 31, new federal charges have been filed against 11 defendants. Nine defendants were charged with illegally possessing firearms, one defendant was charged with drug trafficking, and one defendant was charged with carjacking.
Among the remaining 88 arrests, 49 were fugitives with either state or federal warrants for their arrest. The remaining 39 non-fugitive arrests were referred for prosecution in state court. Five arrests were for homicides. Other offenses cited in the arrests included assault, drug trafficking, illegally possessing firearms, robbery, child molestation, and sexual assault.
In addition to the arrests, agents and officers seized 35 firearms, a total of nearly three kilograms of methamphetamine, hundreds of pills (including oxycontin and ecstasy), heroin, cocaine, crack cocaine, and nearly $40,000 in cash.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Ohio man admits to role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cory Davonta Smith, Jr., of Barberton, Ohio, has admitted to his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Smith, also known as “C.J.,” age 27, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute 50 Grams or More of Methamphetamine.” Smith admitted to working with others to distribute 50 grams or more of crystal methamphetamine, also known as “ice,” in November 2018 in Gilmer County.
Smith faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Nine Individuals Charged for Conspiring to Distribute Fentanyl, Heroin, and Cocaine in Daytona Beach AreaRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of two indictments charging nine individuals involved with drug trafficking organizations operating in Daytona Beach. The first indictment charges Matthew Zachariah Humphrey (25, Daytona Beach) and Janee Reve Najee Kelly (31, Daytona Beach) with conspiracy to distribute fentanyl and with possessing firearms in furtherance of that offense. The second indictment charges Maxwell Garvice Johnson (29, Ormond Beach), Jeremy Rashan Tarrand (39, Mascotte), Robert Lee Hamilton, Jr. (36, Daytona Beach), Dawnte Dequite Benjamin Davis (22, Daytona Beach), Felicia Mae Riley (35, Edgewater), Jeniver Sebastian Scott, Jr. (32, Daytona Beach), and Sharrod Solomon Favors (29, Daytona Beach) with conspiracy to distribute fentanyl, cocaine, and heroin. If convicted, each faces a minimum mandatory term of 5 years, and up to 40 years, in federal prison for each count. Humphrey and Kelly each face an additional 5 years’ imprisonment for possessing firearms in furtherance of the offense. The indictment also notifies each defendant that the United States intends to forfeit traceable proceeds of the offense.
According to the first indictment, beginning on an unknown date, but no later than December 6, 2019, and continuing through July 29, 2020, Humphrey and Kelly conspired with each other and others to distribute controlled substances, including 40 grams or more of a substance containing fentanyl. According to the second indictment, beginning on an unknown date, but no later than April 3, 2020, and continuing through July 29, 2020, Johnson, Tarrand, Hamilton, Davis, Riley, Scott, and Favors conspired to distribute controlled substances, including 40 grams or more of fentanyl, 100 grams or more of heroin, and 500 grams of cocaine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Volusia County Sheriff’s Office, the Daytona Beach Police Department, the Federal Bureau of Investigation, and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Dana Hill.
New Jersey Man Sentenced for Holly Hill ArsonRead the Press Release
Columbia, South Carolina ---- United States Attorney Peter M. McCoy, Jr., announced today that Marvin Leroy Smith-Capers, Jr., age 38, of Newark, New Jersey, was sentenced to 92 months in federal prison after pleading guilty to arson. He was also ordered to pay over $700,000 in restitution to the victims: Joy’s Touch of Class, Goldstein’s, and the Super 10. United States District Court Judge Mary Geiger Lewis presided over the hearing.
According to evidence presented to the court, on January 8, 2018, just after midnight, Smith-Capers set fire to Joy’s Touch of Class in downtown Holly Hill after spending much of the previous two hours stealing merchandise from the store. The flames spread to two adjacent businesses, Goldstein’s and the Super 10, causing damage to all three in excess of $700,000.
Holly Hill police officers first noticed suspicious activity when the white GMC Yukon driven by Smith-Capers recklessly pulled into the road opposite their direction of travel. They followed the Yukon, which then accelerated down Railroad Street, ultimately losing control. At the accident scene, officers discovered the overturned Yukon, an ejected and unresponsive Smith-Capers, and merchandise scattered about. This merchandise was traced back to Joy’s.
Smith-Capers was also linked to the scene of the fire through the ankle monitor he was wearing as part of a previous probationary sentence. GPS data tracked Smith-Capers as he moved back and forth between the store and his vehicle as he loaded the Yukon with stolen merchandise.
The United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as well as the Holly Hill Police and Fire Departments, the Orangeburg County Fire District, and the South Carolina Law Enforcement Division (SLED) investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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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.
NDTX Round-Up: July 20-26Read the Press Release
SENTENCING – ZODERICK JACKSON
On July 20, Zoderick Jackson, 50, was sentenced to five and a half years for possession with the intent to distribute a cocaine base. Jackson package crack cocaine into eleven small baggies. He met two confidential sources at his home in Greenville, Texas where he sold the bags of crack cocaine. The Drug Enforcement Administration and Hunt Count Sheriff’s Office conducted this investigation. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
SENTENCING – HERNAN ORDUNA
On July 22, Hernan Orduna, 25, was sentenced to 46 months for conspiracy to acquire a firearm from a licensed dealer by a false and fictitious statement. On two separate occasions, Orduna purchased a 9mm Glock and a Ruger AR556 from an Irving, Texas licensed firearms dealer by falsely answering the ATF’s Firearms Transaction Record. Following the sale of the firearms, Orduna transferred the firearms to a 17-year drug dealer. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Irving Police Department conducted this investigation. Assistant U.S. Attorney Walt Junker is prosecuting the case.
SENTENCING – CARLOS ACOSTA-ENRIQUEZ
On July 24, Carlos Acosta-Enriquez, 35, was sentenced to six and a half years for conspiracy to possess with the intent to distribute cocaine. Texas Department of Public Safety troopers stopped Aocsta-Enriquez for a traffic related violation. During the stop, officers searched Aocsta-Enriquez’s vehicle and located six-kilograms of cocaine inside the car. Federal agents also searched Aocsta-Enriquez’s home and recovered $18,604.00 in drug proceeds, digital scales, and a drug ledger. The Drug Enforcement Administration conducted this investigation. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
CHARGED – OSWALD AGUILERA-ADAME, JUAN JOSE CAMACHO, & MIGUEL ANGEL MARTINEZ-SERGURA*
On July 21, a federal grand jury indicted Oswald Aguilera-Adame, 28, Juan Jose Camacho, 35, and Migel Angel Martinez-Sergura, 53, for conspiracy to possess with the intent to distribute a controlled substance, possessing a firearm in furtherance of drug trafficking, and aiding and abetting possession with the intent to distribute. The defendants allegedly trafficked 500 or more grams of methamphetamine throughout the Northern District. During the defendants’ arrest, law enforcement seized a .380 caliber firearm and approximately $180,000 of drug proceeds. The defendants face up to life years in federal prison. The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Kull.
CHARGED – DEVIONN HOLMES*
On July 21, a federal grand jury indicted Devionn Holmes, 24, for bank robbery. Holmes allegedly robbed a bank in Carrollton a by force and intimidation while in the presence of bank employees. The defendant face up to 20 years in federal prison. The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joe Magliolo.
*All defendants are presumed innocent unless and until proven guilty in a court of law.
Montgomery County Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
FRANKFORT, Ky.- A Montgomery County, Ky., man, Scotty Allen Jones, 48, pleaded guilty yesterday, before U.S. District Judge Gregory Van Tatenhove, to distributing a fentanyl and heroin mixture, possessing 10 grams of acetylfentanyl with intent to distribute, possessing a firearm in furtherance of drug trafficking, and being a felon in possession of firearms.
As part of his plea agreement, Jones admitted that in September 2018 he sold quantities of heroin and fentanyl mixtures to a confidential informant who was working with law enforcement. During one of the drug transactions, Jones admitted to possessing a firearm for the purpose of furthering his drug trafficking
Jones also admitted in his plea agreement to pawning at least two firearms at a local pawn shop in Mt. Sterling, Kentucky, in February 2019. Jones has prior felony convictions for drug trafficking and burglary, and was prohibited from possessing firearms.
In March 2019, officers with the Kentucky Department of Fish and Wildlife attempted to arrest Jones on several outstanding warrants while Jones was at a gas station in Jeffersonville, Kentucky. Jones fled from the officers, and after both a vehicle and short foot pursuit, Jones was apprehended. Upon his arrest, Jones was found in possession of 10 grams of acetylfentanyl, a Schedule I controlled substance. As part of his plea agreement, Jones admitted that intended to distribute the acetylfentanyl in his possession.
Jones also admitted in his plea agreement to possessing eight firearms discovered by law enforcement during a search of barn in Jeffersonville, Kentucky, in April 2019.
Jones was indicted in July 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Commissioner Rodney Brewer, Kentucky State Police; and Colonel Eric Gibson, Law Enforcement Director, Kentucky Department of Fish and Wildlife jointly announced the guilty plea.
The investigation was conducted by ATF, KSP, and the KY Dept. of Fish and Wildlife. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
Jones is scheduled to be sentenced on December 10. He faces a minimum sentence of at least 10 years (5 years minimum on the possession with intent to distribute acetylfentanyl charge, and 5 years consecutive for the possession of firearm in furtherance of drug trafficking charge), and maximum sentence of up to life imprisonment for the commission of these offenses. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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Mobile-Area Doctor Charged in Prescription Drug Billing SchemeRead the Press Release
BIRMINGHAM, Ala. – A Mobile-area Alabama doctor was indicted on Tuesday in a long-running investigation into a prescription drug-billing scheme involving a Haleyville, Ala.-based pharmacy, Northside Pharmacy doing business as Global Compounding Pharmacy. U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, United States Postal Inspector in Charge, Houston Division Adrian Gonzalez, and Internal Revenue Service-Criminal Investigation Special Agent in Charge James E. Dorsey announced the charges.
An 11-count indictment charges Dr. Michelle Martine Jackson, 53, of Fairhope, Alabama, with a conspiracy to receive kickbacks, a conspiracy to commit health care fraud and mail fraud, health care fraud, and aggravated identity theft. According to the indictment, Dr. Jackson, who worked out of two clinics in Mobile, Alabama, received kickbacks in exchange for issuing medically unnecessary compounded drug and other prescriptions to be filled by Global Compounding Pharmacy. Dr. Jackson issued medically unnecessary prescriptions to a Global employee Bonita Amonett, and her family and friends, to individuals with whom Jackson did not have a doctor-patient relationship, and to individuals with whom she had a doctor-patient relationship, but who did not need the drugs in question. Ms. Amonett paid the kickbacks in the form of cash and free offices services to Dr. Jackson and a nurse practitioner, Brandy Lunsford. According to court documents, both Ms. Amonett and Ms. Lunsford previously entered guilty pleas to paying and receiving kickbacks and health care fraud.
Dr. Jackson’s indictment brings the total number of individuals who have been charged in this long-running investigation to 30, 24 of whom have previously entered guilty pleas. Those who have previously pled guilty include two nurse practitioners and various Global employees, including its CEO, COO, a vice president of sales, an operations manager, a district manager, and multiple sales representatives.
The maximum punishment for the 18 U.S.C. § 371 kickback conspiracy is 5 years in prison and a $250,000 fine. The maximum punishment for the 18 U.S.C. § 1349 health care and mail fraud conspiracy charge is 20 years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine. The minimum and maximum penalty for the 18 U.S.C. § 1028A aggravated identity theft charge is 2 years in prison and a $250,000 fine.
The FBI, HHS-OIG, DCIS, USPIS, IRS-CI, and a United States Attorney’s Office investigator investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Don Long, and Edward Canter are prosecuting. The Veteran Affairs Office of Inspector General Criminal Investigations Division provided assistance in the investigation.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Missouri Man Charged with ForgeryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that MATTHEW CUOMO, aged 55, has been charged by a Bill of Information with Forgery on July 30, 2020, in violation of Title 18, United States Code, Section 513. If convicted of this crime, CUOMO will face a maximum sentence of ten years in the Bureau of Prisons, three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
CUOMO was the former president of a local labor union for employees of the Transportation Security Administration (TSA) working at multiple airports in Louisiana and Mississippi. An audit in 2017 revealed that union funds were missing, and an investigation allegedly revealed that CUOMO had been forging checks from the union’s bank account and using union funds for personal expenses. CUOMO forged 50 checks, resulting in a loss amount of approximately $15,000.
U. S. Attorney Strasser praised the work of the United States Department of Labor and the Transportation Security Administration for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
U. S. Attorney Strasser stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.
Minnesota Man Sentenced to 3 Years for Robbing River Falls BusinessRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Larry Darnell Armstrong, 50, Minneapolis, Minnesota, was sentenced today by Chief U.S. District Judge James D. Peterson to three years in federal prison for committing a robbery of a business located in River Falls, Wisconsin. The parties jointly recommended the three-year prison sentence.
On June 13, 2019, Pierce County, Wisconsin dispatch received a 911 call regarding an armed robbery at North Town Cleaners in River Falls. Responding officers met with an employee of North Town Cleaners who stated that she was working at the counter when two men entered the store. The larger of the two men, later identified as Larry Armstrong, approached the counter and stated that he needed some buttons sewn on a coat. Armstrong gave the employee the coat and several buttons, and gave his last name as Johnson. During that time, the smaller of the two men was at the soda machine.
According to the employee, Armstrong asked for change for a $20 bill. The employee went to the safe to deposit the $20 and make change, and as she was starting to close the safe, the other man pointed a black handgun at her and demanded money. The employee gave him a black bank bag, and he reached into the safe and grabbed a box of quarters. Both Armstrong and the other man ran out of the business.
Armstrong was identified after the buttons were submitted to the Wisconsin State Crime laboratory in Madison and a DNA profile taken from the buttons matched the DNA profile of Armstrong that was on file. Law enforcement officers then obtained driver’s license information for Armstrong and he matched the description of the robber. Law enforcement officers also ran Armstrong’s criminal history, which revealed that he has used different aliases, including “Shelly A. Johnson.” Finally, Armstrong’s cell phone was in River Falls on June 13, 2019, during the North Town Cleaners robbery. Later that same day, the phone was in the area of Armstrong’s residence in Minneapolis.
To date, Armstrong’s accomplice has not been identified.
The charge against Armstrong was the result of an investigation conducted by the River Falls Police Department and the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Man from Rayne Sentenced for Transporting Illegally Killed Endangered Whooping CraneRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Kaenon A. Constantin, 28, was sentenced on July 30, 2020, to five years of probation for killing and transporting a federally protected and endangered whooping crane. During his period of probation, Constantin must complete 360 hours of community service related to wildlife conservation. As part of the sentence, Constantin’s hunting privileges have been suspended until he completes the community service. United States Magistrate Judge Hanna also ordered Constantin to pay a $10,000 fine and to pay $75,000 in restitution to the Louisiana Department of Wildlife and Fisheries (LDWF).
In November 2019, Constantin was named in a federal bill of information for violating the Lacey Act in May 2016. Specifically, on May 20, 2016, Constantin and a juvenile, using .22 caliber rifles, shot at a pair of whooping cranes located in a field within Acadia Parish, Louisiana. One of the cranes, identified as L5-15, fell dead in the field, and Constantin and his accomplice retrieved its carcass. The other crane, identified as L3-15, flew too far north into another field so that it could not be retrieved, but investigators later recovered its carcass.
After retrieving L5-15’s carcass, they noticed that it had transponders on its legs and received information that the bird was a whooping crane. Constantin and the juvenile transported the carcass to the juvenile’s residence, where they severed the legs from L5-15’s carcass by using a knife and removed the transponders. They then transported the knife, carcass, severed legs, and transponders along a nearby road and discarded the evidence. When initially approached by investigators shortly after the crime, Constantin lied about his involvement, causing the investigation to continue for nearly two more years before he finally confessed in April 2018.
The Lacey Act is a comprehensive federal law that protects against wildlife crimes, such as international and domestic wildlife trafficking. The Act prohibits, among other actions, a person from knowingly transporting wildlife, when in the exercise of due care the person should have known that the wildlife was taken or possessed in violation of, or in a manner unlawful under, any underlying law, treaty, or regulation of the United States. Whooping cranes are a federally protected species under federal laws and regulations, including the Endangered Species Act. They are large birds, standing nearly five feet tall and with wingspans of 7.5 feet.
United States Fish and Wildlife Service Acting Special Agent in Charge Stephen Clark stated, “We take our mission partnering with the Louisiana Department of Wildlife and Fisheries in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. The U.S. Fish and Wildlife Service, Office of Law Enforcement, considers the illegal taking of protected wildlife species a high priority, and we will continue to work closely with our state agencies to assist them in these important joint investigations."
“Our agents take any investigation of illegally shooting whooping cranes very seriously. Chief of LDWF Enforcement Col. Chad Hebert and I applaud the judge in this case for imposing severe monetary punishments to help deter anyone from this behavior,” said LDWF Secretary Jack Montoucet. “The Louisiana Department of Wildlife and Fisheries has spent a lot of resources in an effort to bring back the native whooping crane to a sustainable population, and senseless shootings like this case make that mission much more problematic.”
The United States Fish & Wildlife Service and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Danny Siefker prosecuted the case.
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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.