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Friday 12 June 2020
Former London and Miami Art Dealer Arrested for Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging INIGO PHILBRICK, an art dealer specializing in post-war and contemporary fine art, with galleries in London, United Kingdom, and Miami, Florida, with engaging in a multi-year scheme to defraud various individuals and entities in order to finance his art business. In total, PHILBRICK allegedly fraudulently obtained more than $20 million as a result of the scheme.
Federal law enforcement agents took PHILBRICK into custody yesterday in Vanuatu, after Vanuatu authorities expelled PHILBRICK from Vanuatu at the request of the U.S. Embassy in Papua New Guinea in light of the charges in the Complaint. PHILBRICK was then transported to Guam, where he is expected to be presented in federal court on June 15, 2020.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Inigo Philbrick was a serial swindler who misled art collectors, investors, and lenders out of more than $20 million. You can’t sell more than 100 percent ownership in a single piece of art, which Philbrick allegedly did, among other scams. When his schemes began to unravel, Philbrick allegedly fled the country. Now he is in U.S. custody and facing justice.”
FBI Assistant Director William F. Sweeney Jr. said: “Mr. Philbrick allegedly sought out high-dollar art investors, sold pieces he didn’t own, and played games with millions of dollars in other people’s money. The game ended when investors began wondering where their money went. Hats off to the FBI NY Joint Major Theft Task Force/Art Crime Team who worked diligently to track down Mr. Philbrick and bring him back to the U.S., where, if convicted, he might have to trade in his jet-set life for a drab federal prison cell.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
From approximately 2016 through 2019, to finance his art business, PHILBRICK engaged in a scheme to defraud multiple individuals and entities in the art market located in the New York metropolitan area and abroad. PHILBRICK made material misrepresentations and omissions to art collectors, investors, and lenders to access valuable art and obtain sales proceeds, funding, and loans (the “Fraud Scheme”). PHILBRICK knowingly misrepresented the ownership of certain artworks, for example, by selling a total of more than 100 percent ownership in an artwork to multiple individuals and entities without their knowledge; and by selling artworks and/or using artworks as collateral on loans without the knowledge of co-owners, and without disclosing the ownership interests of third parties to buyers and lenders. PHILBRICK furnished fraudulent contracts and records to investors to artificially inflate the artworks’ value and conceal his scheme, including a contract that listed a stolen identity as the seller.
PHILBRICK obtained millions of dollars in loans and sale proceeds in connection with the Fraud Scheme. Artworks about which PHILBRICK made these fraudulent misrepresentations in furtherance of the Fraud Scheme include, among others, a 1982 painting by the artist Jean-Michel Basquiat titled “Humidity,” a 2010 untitled painting by the artist Christopher Wool, and an untitled 2012 painting by the artist Rudolf Stingel depicting the artist Pablo Picasso.
By in or about the fall of 2019, PHILBRICK’s Fraud Scheme began to come to light as various investors and lenders learned about the fraudulent records PHILBRICK had provided and the material misrepresentations and omissions he had made. By in or about mid-October, a lender officially notified PHILBRICK that he was in default of approximately a $14 million loan, and by November 2019, various investors had filed civil lawsuits in multiple jurisdictions regarding PHILBRICK’s Fraud Scheme in connection with various artworks. At around the same time, PHILBRICK’s art galleries in Miami and London closed, and PHILBRICK stopped responding to legal process. Flight records show that PHILBRICK departed the United States shortly before public reporting began about the lawsuits. Based on information provided by Vanuatu, PHILBRICK has been residing in Vanuatu since in or about late October 2019.
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PHILBRICK, 33, a U.S. citizen previously residing in London, United Kingdom, and a fugitive since October 2019, was charged in the Complaint with one count of wire fraud and one count of aggravated identity theft. The wire fraud charge carries a maximum prison term of 20 years. The aggravated identity theft charge carries a mandatory sentence of two years in prison.
The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Berman praised the investigative work of the FBI NY Joint Major Theft Task Force/Art Crime Team. In addition, Mr. Berman thanked authorities in Vanuatu, including the Vanuatu Police Force, Vanuatu Immigration Services, and the Ministry of Foreign Affairs, International Cooperation, and External Trade of the Republic of Vanuatu, as well as the United States Justice Department’s Office of International Affairs of the Department’s Criminal Division, the U.S. State Department, the U.S. Embassy in Papua New Guinea, the Regional Security Office Port Moresby, the FBI’s Legal Attaché in Canberra, Australia, the FBI’s Guam Resident Agency, and the U.S. Marshals Service in Guam for their assistance.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.
To report information related to this case, please contact the FBI's Art Crime Team at [email protected].
The allegations in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Felon Who Brought Gun to Madison House Party Sentenced to 96 MonthsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ronald Rice, 36, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 71 months in prison for unlawful possession of a firearm, and an additional 24 months in prison for violation of supervised release conditions.
On January 10, 2020, Rice pleaded guilty to a one-count information that charged him with unlawful possession of a .40 caliber Glock firearm as a felon. On May 19, 2019, Rice brought the gun to an after-party in Madison. At the time, Rice was on federal supervised release following his prison sentence for dealing drugs. Pursuant to a written plea agreement, Rice agreed to a joint sentencing recommendation of 71 months for the gun charge and 24 months for violating conditions of his supervised release, for a total sentence of 95 months in prison.
At today’s sentencing, Rice apologized for his conduct and noted that it was a dumb thing for him to do, bringing a gun to the May 19, 2019 party, and he was just hanging around the wrong people. Judge Peterson agreed with Rice that it was a dumb thing to do, especially given the fact that Rice had just been released from federal prison 46 days earlier after serving a 72-month sentence for drug dealing. Judge Peterson told Rice that he hoped Rice recognizes that being on supervised release is a tool to help an inmate get back on his feet, “but if you violate the rules and cause problems you will be revoked and go back to prison. “ Finally, Judge Peterson noted that, “People should understand that gun crimes, such as this one, pose an acute danger to the community, and if you unlawfully possess a firearm you will face a stiff penalty.”
The charges against Rice are the result of an investigation conducted by the Madison Police Department. The prosecution of this case was handled by Assistant U.S. Attorney Daniel Graber.
The case was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Federal Grand Jury Indicts Orange County Man in Investment Fraud Scheme Centering on Bogus Claims of COVID-19 CureRead the Press Release
LOS ANGELES – A federal grand jury this afternoon indicted a Huntington Beach man on fraud charges that allege he solicited people around the nation to invest in a companies that would market pills he claimed would prevent coronavirus infections and produce an injectable cure for those already suffering from COVID-19.
Keith Lawrence Middlebrook, 52, was named in an indictment that charges him with 11 counts of wire fraud stemming from solicitations he allegedly made to potential investors in Nevada, New York, Texas and Colorado.
“Through text messages, videos, and statements sent to potential investors and posted on the internet, including on Instagram and YouTube, defendant Middlebrook falsely claimed to have developed a cure for the COVID-19 virus, which he called ‘QC20,’ and a treatment that prevented a person from being infected by the COVID-19 virus, which he called ‘QP20,’” according to the indictment.
The FBI arrested Middlebrook in this case on March 25 after Middlebrook delivered pills – purportedly the treatment that prevents coronavirus infection – to an undercover agent who was posing as an investor. Two of the charges in the indictment relate to communications with the undercover agent.
The indictment alleges that Middlebrook claimed to have personally developed a “patent-pending” cure and a treatment to prevent coronavirus infection, even though “[g]overnmental and non-governmental health organizations both within the United States and abroad confirmed that there was no vaccine or specific antiviral medicine then known to prevent or treat COVID-19,” according to the indictment.
Middlebrook fraudulently solicited investments in companies he called Quantum Prevention CV Inc. (also called QP20) and Quantum Cure CV 2020 Inc. (also known as QC20) with a series of false promises. Those fraudulent claims included miraculous results from the prevention product and the cure, risk-free and 100 percent guaranteed “enormous returns” on investments,” and that Earvin “Magic” Johnson was a director and/or officer of QC20, the indictment alleges.
“To bolster these claims, defendant Middlebrook falsely represented that an unnamed party in Dubai had offered to purchase the companies for $10 billion, and this offer would secure the victim-investors’ investments in QP20 and/or QC20; and that he had secured funding from seven investors who had each already invested between $750,000 and $1,000,000,” the indictment alleges.
Following his arrest at the March 25 meeting in El Segundo, Middlebrook remained in custody until May 6, when he was freed on a $150,000 bond. His arraignment on the indictment has not yet been scheduled.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each of the 11 counts of wire fraud alleged in the indictment carries a statutory maximum penalty of 20 years in federal prison.
The investigation in this matter is being conducted by the FBI.
This case is being prosecuted by Assistant United States Attorneys Valerie Makarewicz and James Hughes of the Major Frauds Section.
Members of the public are urged to report suspected fraud schemes related to the coronavirus and COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721 or completing an online complaint form.
Federal Embezzlement Charges Filed Against Former Southern University Band DirectorRead the Press Release
United States Attorney Brandon J. Fremin announced today the filing of charges against Nathan Haymer, age 42, of Houston, Texas, for federal program theft, in violation of Title 18, United States Code, Section 666.
As alleged in the Bill of Information, Haymer served as Director of Bands at Southern University A&M College (“Southern University”) and, in that role, was responsible for leading Southern University’s marching band, which performed at Southern University athletic events and a wide variety of other events both within Louisiana and across the United States. Haymer’s duties included making purchases and paying expenses during the band’s trips.
According to the Bill, from November 2016 through March of 2018, Haymer intentionally misapplied more than $30,000 that Southern University had provided to him to be used for official band expenses. Specifically, according to the Bill, on more than a dozen occasions, Haymer submitted false documents, such as fictitious and forged invoices from purported vendors, knowing that he had not incurred the expenses reflected on the documents.
U.S. Attorney Fremin commends Southern University for their cooperation in the investigation, appreciates the work of the Louisiana Legislative Auditor in preparing the underlying audit, and he applauds the efforts of the Federal Bureau of Investigation and Louisiana State Police to bring these charges. This case is being prosecuted by Assistant United States Attorney Alan Stevens.
A bill of information is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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.
Fairfield Man Convicted Twice in Six Years for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A Fairfield man pleaded guilty Thursday to being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
Antonio Tawan Bankhead, 32, was convicted of the same crime in Sacramento federal court in 2015. He violated his federal probation in that case when he committed this new offense.
According to court documents, on the evening of Oct. 11, 2019, police responded to the area of Laurel Creek Park for a report of a potential robbery involving three individuals, one of whom had a gun. As police arrived, Bankhead ignored commands to stop and began to walk away. As more police arrived and tried to cut off his path, Bankhead changed direction and started to sprint. After a pursuit by officers and a K9, Bankhead was caught in the bushes of a house across from the park, and a gun and phone he had been carrying were found on a baseball field, which was fenced in and closed to the public. The gun, a Glock Model 19 9 mm pistol, had a 30-round extended magazine, and was loaded with 30 live 9 mm rounds and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses.
This case is the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.
Bankhead is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Aug. 27. Bankhead faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Bankhead also faces an additional maximum of two years for violating his federal probation from his 2015 conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fifteen Defendants Plead Guilty to Racketeering Conspiracy in International Cyber Fraud SchemeRead the Press Release
WASHINGTON – Fifteen defendants have pleaded guilty to-date for their roles in a transnational and multi-million dollar scheme to defraud American victims through online auction fraud.
Four of the guilty pleas took place in the past 24 days before U.S. Magistrate Judge Matthew A. Stinnett of the U.S. District Court for the Eastern District of Kentucky.
Bogdan-Stefan Popescu, 30, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to plea documents, Popescu operated a car wash in Bucharest, Romania, where he managed coconspirators in the RICO enterprise. From at least December of 2013, Popescu oversaw an operation whereby he knowingly negotiated fraudulently obtained Bitcoin. He did so in many ways. For example, he would sometimes receive cryptocurrency from coconspirators who obtained the funds through online fraud scams, transfer the cryptocurrency to other conspirators such as codefendant Vlad-Călin Nistor. He would then direct that Nistor exchange the cryptocurrency for fiat currency, and deposit the fiat currency into bank accounts held in the names of various employees and family members. According to court documents, in addition to providing money laundering services, Popescu also coordinated the dissemination of tools used to defraud American-based victims, such as the language and photographs for fake advertisements as well as usernames and passwords for IP address anonymizing services. Popescu also assisted members of the RICO conspiracy by connecting them with other members who could provide call center services—that is, who would impersonate eBay customer service representatives over the phone.
Liviu-Sorin Nedelcu, 34, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to court documents, Nedelcu worked in conjunction with others to post advertisements for goods online. To maintain the appearance of legitimacy, Nedelcu created fictitious entities through which he purported to sell vehicles. Once Nedelcu and his coconspirators convinced victims to purchase falsely advertised goods, they sent the victims invoices for payment that appeared to be from legitimate sellers, such as eBay Motors. Upon receiving payment, Nedelcu and his coconspirators engaged in a sophisticated money laundering scheme to convert the victim payment into Bitcoin.
Vlad-Călin Nistor, 33, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to plea documents, Nistor was the founder and owner of the Romania-based Bitcoin exchange Coinflux Services SRL. He exchanged cryptocurrency into local fiat currency on behalf of the Romania-based members of the conspiracy, knowing that the Bitcoin represented the proceeds of illegal activity. According to plea documents for example, Nistor exchanged over $1.8 million worth of Bitcoin for co-defendant Bogdan Popescu.
Beniamin-Filip Ologeanu, 30, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to court documents, Ologeanu worked in conjunction with others in the conspiracy to post advertisements for goods to auction websites, including eBay, and sales websites, including craigslist. Once Ologeanu or his coconspirators convinced victims to purchase and provide payment for falsely advertised items, Ologeanu reached out to U.S.-based conspirators to convert the victim payment into other forms of payment and transfer part of it to Ologeanu in Bitcoin. Ologeanu also purchased fraud proceeds from other coconspirators, typically in the form of prepaid debit cards, to be laundered by U.S.-based coconspirators.
“Today’s modern cybercriminals rely on increasingly sophisticated techniques to defraud victims, often masquerading as legitimate businesses,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These guilty pleas demonstrate that the United States will hold accountable foreign and domestic criminal enterprises and their enablers, including crooked bitcoin exchanges that swindle the American public.”
“The guilty pleas announced today are a direct result of the extraordinary cooperation and partnership among law enforcement agencies at the local, state, federal, and international levels,” said U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky. “These partnerships helped dismantle a sophisticated organized crime group who preyed upon victims across the United States. I commend the exceptional work conducted by our law enforcement partners and trial team members who worked diligently to hold these defendants accountable.”
“Through the use of digital currencies and trans-border organizational strategies, this criminal syndicate believed they were beyond the reach of law enforcement,” said Assistant Director Michael D’Ambrosio, U.S. Secret Service, Office of Investigations. “However, as this successful investigation clearly illustrates, with sustained, international cooperation, we can effectively hold cyber criminals accountable for their actions, no matter where they reside. I commend the hard work and perseverance of all those who joined together in this investigation and prosecution. This includes our partners in Europe, as well as those closer to home.”
“Today’s guilty pleas serve as a reminder that IRS-CI special agents will uncover illegal activity here and abroad, pierce the perceived veil of anonymity provided by cryptocurrencies, and bring those responsible for unlawful acts to justice,” said Special Agent in Charge Jonathan Larsen of the IRS-Criminal Investigations (IRS-CI) New York Field Office. “We will continue to push the agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure the United States financial system is protected.”
“These are scam artists who hide behind a wall of technology which allows them to prey upon innocent victims throughout the United States,” said Kentucky State Police Commissioner Rodney Brewer. “The dismantling of this criminal enterprise was made possible because of the incredible level of cooperation between the law enforcement community here in Kentucky.”
According to court documents, the defendants participated in a criminal conspiracy that engaged in a large-scale scheme of online auction fraud. Specifically, Romania-based members of the conspiracy posted false advertisements to popular online auction and sales websites—such as Craigslist and eBay—for high-cost goods (typically vehicles) that did not actually exist. Members of the conspiracy would convince American victims to send money for the advertised goods by crafting persuasive narratives, for example, by impersonating a military member who needed to sell the advertised item before deployment.
According to court documents, members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, often using the stolen identities of Americans to do so. They also delivered invoices to the victims bearing trademarks of reputable companies in order to make the transaction appear legitimate. Members of the conspiracy also set up call centers, impersonating customer support, to address questions and alleviate concerns over the advertisements.
Once victims were convinced to send payment, the conspiracy participants engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based money launderers.
The 15 defendants who have pleaded guilty in this case have yet to be sentenced. Two other defendants in the case are scheduled for trial starting on Sept. 14, 2020, before the Honorable Robert E. Wier of the U.S. District Court for the Eastern District of Kentucky. Three others are fugitives.
In addition to pleading guilty in this case, on Jan. 13, 2020, Adrian Mitan pleaded guilty in a related money laundering conspiracy, arising from online schemes, including a credit card phishing and brute-force attack scheme, designed to steal money from Americans. According to court documents, Mitan phished for payment card information of U.S. customers, hacked into the electronic systems of American businesses, and then conducted a brute-force attack on their point-of-sale systems for the purpose of stealing the remaining payment card information. Mitan then directed American money launderers to create clone payment cards with the stolen information, which were used to extract money from the customers’ accounts. These fraudulent proceeds were then returned to Mitan in the form of Bitcoin.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation, and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Criminal Division’s Money Laundering and Asset Recovery Section provided significant support and the Criminal Division’s Office of International Affairs provided significant support in securing and coordinating the arrests and extraditions from Romania of more than a dozen defendants.
This case is being prosecuted by Senior Trial Attorney Timothy C. Flowers and Senior Counsel Frank H. Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases. Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.
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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Edwards Man Sentenced to over Three Years in Prison Under Project EJECT for Trafficking MethamphetamineRead the Press Release
Jackson, Miss – Daniel Chad Parrette, 48, of Edwards, was sentenced today by Chief U.S. District Judge Daniel P. Jordan to 43 months in prison, followed by three years of supervised release, for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Interim Director Steve Maxwell with the Mississippi Bureau of Narcotics (“MBN”). Parrette was also ordered to pay a $1,500 fine.
On March 30, 2018, MBN agents received information that Parrette was attempting to sell methamphetamine. Based upon this information, as well as the agents’ observations, agents made a traffic stop on Parrette’s truck and confronted Parrette. Agents searched Parrette’s truck and found four individually wrapped bags of methamphetamine. In a subsequent interview, Parrette told agents that he wanted to sell the methamphetamine.
On April 3, 2019, Parrette was charged in a federal indictment with possession with intent to distribute a substance containing methamphetamine. He pled guilty before Judge Jordan on November 21, 2019.
The case was investigated by the Mississippi Bureau of Narcotics and prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Defense Contractor SAIC Pays $5.98 Million to Settle False Claims Act InvestigationRead the Press Release
NEWS RELEASE SUMMARY – June 15, 2020
SAN DIEGO – Science Applications International Corporation (SAIC), a major defense contractor headquartered in Reston, Virginia, has paid $5,982,865 to resolve allegations that it violated the federal False Claims Act. The settlement arises out of a contract for SAIC to provide information technology support to the U.S. Army.
The United States Attorney’s Office for the Southern District of California and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), with assistance from the Air Force Office of Special Investigations, began its investigation after SAIC self-disclosed certain time charging and contract administration irregularities associated with a U.S. Army contract. The contract in question was awarded to SAIC by U.S. Army Aviation and Missile Command Expedited Professional & Engineering Support Services (AMCOM EXPRESS). Specifically, SAIC was awarded a particular task order (the contract) for “Soldier Protection Lab Systems Engineering, Development, and Modeling Support.” Portions of the contract were performed in San Diego County, in part, for the benefit and training of Marines at Camp Pendleton.
The United States contended that SAIC employees misused administrative leave by working on contract requirements for a certain project before funding was available and then later clearing those charges by adding extra billing hours that were not worked to a separate project. The United States also contended that SAIC employees were provided charge codes for their hours to be recorded to projects with available funding, while they continued to work on tasks that were not funded. Once the new funding arrived, the employees working on a project that provided the original funding would then charge their hours to the new project. The United States contended that SAIC knowingly submitted to the government false claims for payment for the mischarging on these projects.
“As always, we are committed to doing our part in preserving the integrity of the government contracting process and protecting the tax payer,” said Robert Brewer, Jr., United States Attorney for the Southern District of California. He further noted that, “while it is encouraging to see a Fortune 500 corporation accept responsibility for its wrongdoing, we remain vigilant in our efforts to stem the tide of fraud, waste, and abuse that impacts our military.” On behalf of the Department of Justice, U.S. Attorney Brewer expressed gratitude to Assistant U.S. Attorneys Joseph Purcell and Paul Starita and the team of dedicated federal agents whose diligent work on this case led to the instant settlement. The U.S. Army Criminal Investigation Command’s MPFU was the lead investigative agency working with the Affirmative Civil Enforcement Section of the United States Attorney’s Office to bring this matter to a swift resolution. “We commend SAIC for coming forward with the contract discrepancies and working with law enforcement on this settlement,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s MPFU. “The MPFU and our law enforcement partners, remain diligent in our efforts to ensure that those who disregard the law will be held accountable for their actions.”
This matter was investigated by Assistant U.S. Attorneys Joseph Purcell and Paul Starita and auditing personnel of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office, in coordination with Special Agents of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Air Force Office of Special Investigations, and auditing personnel of the Defense Contract Audit Agency.
Defendants Sentenced and Ordered to Pay $993,644.46 in RestitutionRead the Press Release
HAMMOND- Jacqueline Jay Podell, 46, and Michael Wilson, 53, both of Winamac, Indiana were sentenced before U.S. District Court Judge Philip Simon, announced U.S. Attorney Kirsch.
On December 13, 2019, defendant Podell entered a guilty plea to conspiring to commit health care fraud. Defendant Wilson entered his guilty plea a month later to the charge of participating in a health care fraud scheme. Defendant Podell was sentenced on June 11, 2020 and received 6 months in prison and 6 months home confinement. Defendant Wilson was sentenced today and received 18 months in prison.
Both defendants have been ordered to pay restitution in the amount of $985,490.27 to Medicare and $8,154.19 to Indiana Medicaid.
According to documents in this case, in June 2018 Michael Wilson and Jacqueline Podell were indicted for their involvement in a multi -year scheme to defraud Medicare and, to a lesser degree, the Indiana Medicaid Program by submitting fraudulent ambulance transport claims for payment. Operating under the name Transport Loving Care, dba Alliance EMS defendants transported 4 patients, none of who actually had a medical need for ambulance transport, to and from dialysis from 2010-2014. Defendants’ scheme resulted in almost 2 million dollars in fraudulent claims to Medicare and tens of thousands of dollars in fraudulent claims to Indiana Medicaid.
“All taxpayers are victims of health care fraud schemes like this one, where money is stolen from the public fisc. These defendants are required to pay back the money they stole and will be going to prison for their crimes,” said United States Attorney Thomas L. Kirsch. “I have directed my Office to work with federal, state and local law enforcement and state administering agencies to find and bring cases like this for the benefit of the honest taxpayer. I wish to commend my partner agencies on a great job and on the resolution to this case.”
“Medicare and Medicaid do not pay health care providers for services that are not medically necessary,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Submitting false or fraudulent claims that mis-represent the medical need for a service is illegal. The OIG will continue to identify, investigate and hold accountable those who choose to defraud federally funded health care program and waste tax payer dollars.”
“Health care fraud is often billed as a victimless crime, but that couldn’t be further from the truth. These schemes often impact many of the most vulnerable in our society who rely on these services,” said Acting Special Agent in Charge Robert Middleton, FBI Indianapolis. “Today’s sentencing reaffirms the FBI’s commitment in bringing those responsible for these acts to justice. The FBI and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by manipulating the system motivated by nothing more than greed.”
This case was investigated by the US Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation and the Indiana Attorney General’s Medicaid Fraud Control Unit. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
DOJ files statement of interest in Seattle Housing Authority lawsuit involving Fair Housing ActRead the Press Release
Seattle—The U.S. Attorney’s Office Western District of Washington and the U.S. Department Justice today filed a statement of interest in Roque v. Seattle Housing Authority (SHA) as part of DOJ’s work to safeguard the civil rights of all Americans, announced U.S. Attorney Brian T. Moran. The suit arises out of the efforts of a resident of Raven Terrace in the Yesler Terrace area of Seattle to obtain parking garage access for his caregiver. The plaintiff, Tony Roque, has quadriplegia and requires caregiver assistance for his daily activities. Mr. Roque filed suit against the Seattle Housing Authority after it refused his request to modify its policies and allow his caregiver parking access in the building’s garage.
“With this filing DOJ is making clear what we believe to be the state of the law – the Fair Housing Act requires modifications to housing complex policies when modifications are necessary to afford a resident with a disability with equal access to the enjoyment of his or her home. That is true even when the accommodation relates to caregiver access, ” said U.S. Attorney Moran. “Safeguarding the rights of people with disabilities is even more important during this period of COVID-19, when the isolation and risks facing many people with disabilities are heightened.”
According to records filed in the case and the government’s statement of interest, Mr. Roque alleges that he needs caregiver assistance for the necessities of daily life – eating, dressing, administering medication, etc. Due to covid-19, the number of caregivers accessing his apartment has been reduced to one. That caregiver had been parking in the garage of Raven Terrace from 2018 until early March 2020 so that she could deliver Mr. Roque’s groceries and medical supplies and transport him to medical appointments, etc. On March 4, 2020, the Housing Authority had the caregiver’s car towed saying that since she was not a resident nor an employee she was not allowed to park in the building. When Mr. Roque requested a parking pass for the caregiver, his request was denied. The Seattle Housing Authority claimed that since the caregiver is not disabled, and the parking space was for the caregiver, it is not required to grant the accommodation.
In its statement of interest, DOJ states that under the FHA, a parking space for a caregiver of a resident with a disability may be a “necessary” accommodation under certain circumstances. Further under the ADA, a reasonable accommodation may not be denied solely because it would provide Mr. Roque with a benefit not available to other residents.
U.S. District Judge Richard A. Jones issued a temporary restraining order on May 4, 2020, prohibiting the Seattle Housing Authority from towing the caregiver’s car. Judge Jones can make the order permanent, depending on the decision made by the Seattle Housing Authority on Mr. Roque’s appeal.
The statement of interest was filed by Assistant United States Attorney Christina Fogg, the Civil Rights Coordinator in the Western District of Washington, and by Trial Attorney Max Lapertosa of the DOJ Civil Rights Division.
statement_of_interest_of_usa_roque_v_seattle_hous_auth.pdfConvicted Felon Indicted for Firearms Business without a License, Possession of Firearms, Distribution of Methamphetamine and Using a Firearm During a Drug Trafficking OffenseRead the Press Release
MEMPHIS, TN – On June 9, 2020, a federal grand jury indicted Bruce Matthews, 27, on several charges, including engaging in a firearms business without a license. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to information presented in court, between November of 2019 and January of 2020, the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a criminal investigation of Matthews for engaging in the business of firearms dealing without a license; possession of a firearm by a convicted felon; possession of a firearm by an unlawful drug user; use or carrying a firearm during and in relation to a drug trafficking offense, and distribution of methamphetamine.
During the course of this investigation, ATF special agents while undercover conducted several controlled purchases of firearms and methamphetamine from Matthews, recording each transaction.
If convicted on counts 1, 2, 3, Matthews faces sentences on each of up to 5 years imprisonment; a $ 250,000 fine and 3 years supervised release. On counts 4, 5, 6, and 7, he faces sentences of each of up to 10 years imprisonment; a fine of $ 250,000 and 3 years supervised release. On count 8, he faces an additional sentence of up to 5 years imprisonment; a $ 250,000 fine and 5 years supervised release. On counts 9 and 10, he faces sentences on each of up to 40 years imprisonment; a $5,000,000 fine and 4 years supervised release.
U.S. Attorney D. Michael Dunavant said: "Under the new Project Guardian initiative announced by Attorney General Barr in Memphis in November, 2019 https://www.justice.gov/usao-wdtn/pr/attorney-general-announces-launch-project-guardian-nationwide-strategic-plan-reduce-gun, 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, traffickers, straw purchasers, and prohibited persons who violate federal firearms laws in West Tennessee."
This case was being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Wendy K. Cornejo is prosecuting this case on behalf of the government.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Convicted Armed Drug Trafficker Sentenced to 17 Months in Federal Prison for Illegal Re-EntryRead the Press Release
Ocala, Florida – Senior United States Judge John Antoon II today sentenced Jose Manuel DeJesus-Mujica (41, Ocala) to 17 months in federal prison for illegal re-entry into the United States. DeJesus-Mujica had pleaded guilty on February 28, 2020.
According to court documents and the evidence presented at sentencing, DeJesus-Mujica was convicted of trafficking in cocaine with a firearm in Kentucky on February 21, 2003. He was deported from the United States on October 8, 2004. DeJesus-Mujica then illegally re-entered the United States at an unknown date, but no later than 2010, and continued to live in the United States until he was arrested on December 17, 2019.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Chinese National Sentenced to Three Years for Attempting to Send an Export-Controlled Radio to ChinaRead the Press Release
NEWS RELEASE SUMMARY – June 12, 2020
San Diego – Qingshan Li, a national of the People’s Republic of China, was sentenced in U.S. District Court today to three years in federal custody for attempting to send to China an export-controlled radio, which is designated as a defense article due to its certification by the National Security Agency for Top Secret wire and data communications.
At sentencing, Assistant U.S. Attorney Alexandra Foster noted that for weeks preceding his arrest, Li was communicating with a man identified by the Government as “AB.” Li wanted to buy specific U.S. military equipment from AB, including the Harris Falcon III AN/PRC 152A radio (the Radio). Li had previously purchased U.S. military equipment from AB. Li flew into San Diego from China on a tourist visa on June 28, 2019, with a return ticket for July 7, 2019. The next day, Li drove his rental car to AB’s storage unit in San Diego and purchased the Radio, along with other military radios, antennas, additional military equipment and a map of North Island Naval Air Station. Li informed AB that Li planned to take the Radio to Tijuana, Mexico, and ship it to China from Tijuana in light of the lack of export-control rules in Mexico. Li agreed to pay AB 50,000 renminbi (approximately $7,200) for the Radio. Li gave AB a $600 cash down payment toward the purchase price of the Radio at the storage locker, with the promise of paying AB the remaining $6,600 at a later date.
AUSA Foster pointed out that this Radio was not a cheap make-believe radio meant for costume play. It was designated a defense article on the United States Munitions List and subject to ITAR (International Trafficking in Arms Regulations, Title 22, Code of Federal Regulations, Parts 120 et seq.). A license from the Department of State, Directorate of Defense Trade Controls, is required to export the Radio from the United States. AUSA Foster emphasized that the Radio is designated export-controlled for a reason: it is certified by the National Security Agency for Top Secret wire and data communications. Any breach in these communications could mean deadly results for U.S. Navy SEALS and other U.S. Military personnel using this equipment in the field.
The record demonstrates that soon after law enforcement agents stopped Li with the Radio and other military equipment in his bag, they interviewed him. At that time, Li stated that he knew the Radio was export controlled, and he knew that it was illegal for the Radio to be transported to China. Li stated that he purchased the Radio with the intent to ship it to China, knowing he was violating United States law.
At the sentencing, U.S. District Court Judge Cathy Ann Bencivengo noted that there was nothing mistaken about this crime. Li intended to buy this Radio and get it to China. In doing so, he was endangering the lives of U.S. Military servicemembers. Judge Bencivengo noted that Li would be deported after he served his sentence and lose his visa, which would reduce the threat to the United States going forward. Accordingly, Judge Bencivengo sentenced Li to 36 months.
“The exportation of sensitive U.S. defense technology risks the lives of American military personnel and imperils our nation’s overall security,” said U.S. Attorney Robert Brewer. “Mr. Li’s sentence demonstrates this office’s ongoing commitment to holding fully accountable those who cavalierly violate our export control laws.” U.S. Attorney Brewer specifically commended “AUSA Alexandra Foster and the stellar team of federal agents who diligently pursued justice in this case.”
“Our military technology and communication equipment is at the core of maintaining the safety of our US military personnel and the security of our nation," said Omer Meisel, FBI Acting Special Agent in Charge of the San Diego Field Office. “The FBI is committed to working with our military and national security partners, including NCIS, to stop individuals, like the defendant in this case, from engaging in the theft of information and sensitive technology for a foreign government or at the direction of an agent of a foreign government. Our country's national security is the highest priority, and the FBI will do everything in our power to protect it.”
“Mr. Li’s criminal attempt to obtain sensitive military communications technology and provide it to China posed a serious threat to the U.S. military’s warfighting capability,” said NCIS Southwest Field Office Special Agent in Charge Garrett Waugh. “The sentencing should serve as a warning that NCIS and our partner law enforcement agencies will always fully investigate and bring to justice nefarious actors like Mr. Li who seek to diminish the U.S. military’s strategic edge. We credit this investigative success to the outstanding collaboration among NCIS and our partner law enforcement agencies with support from the Naval Special Warfare Command.”
This matter was investigated and prosecuted by Assistant U.S. Attorney Alexandra Foster, in coordination with the National Security Division of the Department of Justice, the FBI and NCIS.
DEFENDANT Case Number: 19CR2564-CAB
Qingshan LI Age: 34
SUMMARY OF CHARGE
Unauthorized Solicitation of Access Devices, 18 USC Sec. 371, Conspiracy to Attempt to Export Defense Articles Without a License.
Maximum Penalty: Five years in prison, three years’ supervised release, $250,000 fine, restitution.
AGENCIES
Federal Bureau of Investigation
Naval Criminal Investigative Service
DOJ National Security Division
Charlotte Man Pleads Guilty to Wire Fraud for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Joseph Maurice Deberry, a/k/a Joseph Maurice Dewberry, 56, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer yesterday and pleaded guilty to wire fraud, for orchestrating an investment scheme that defrauded victims of hundreds of thousands of dollars, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, join U.S. Attorney Murray in making today’s announcement.
According to admissions Deberry made in plea documents and yesterday’s plea hearing, from 2016 through June 2019, Deberry fraudulently obtained hundreds of thousands of dollars from more than a dozen investors. As part of the scheme, Deberry induced victims to invest in entities with which he was affiliated, such as Pinnacle Investment Properties, LLC and Place Capital Group LLC, among others. Deberry typically represented to investors that their money would be used to further projects related to the construction of student housing at certain colleges in the Carolinas and other ventures.
To further promote the fraudulent scheme and to induce his victims to part with their money, Deberry lied about his education, employment background, involvement in prior lawsuits and regulatory actions, previous success in student housing projects, and about how he would use the victims’ money. For example, Deberry falsely claimed that he studied at the London School of
Economics when he had never studied there, and falsely claimed that he had a successful career as an investment banker at Goldman Sachs, when he had never worked there.
As Deberry admitted in court yesterday and in related filings, rather than use the victims’ money as he had represented, Deberry used a significant portion of their funds to pay for personal expenses like rent, entertainment and travel. Further, Deberry actively concealed from his victims the fact that he was under a Cease and Desist Order from the state of North Carolina, which prohibited him from offering for sale, soliciting offers to purchase, or selling any securities in North Carolina. Deberry concealed this information from victims by, among other things, telling them that his name was Maurice Dewberry.
Deberry pleaded guilty to wire fraud. The charge carries a maximum prison sentence of 20 years and a $250,000 fine. A sentencing date for Deberry has not been set.
The FBI’s Charlotte Field Office and the USPIS handled the investigation.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Career Criminal Sentenced to over 13 Years in Federal Prison for Possession of FirearmsRead the Press Release
Ocala, Florida –Senior United States District Judge John Antoon II today sentenced Shane Lamar Harris (41, Dunnellon) to 13 years and 4 months in federal prison for possession of a firearm affecting commerce by a convicted felon. Harris had pleaded guilty on January 23, 2020.
According to court documents, City of Ocala police officers stopped Harris in his car for several traffic infractions on January 27, 2018. During a search of the car, the officers recovered small bags of cocaine and marijuana, a loaded pistol under the driver’s seat, and a stolen shotgun in the back of the automobile. A subsequent laboratory analysis conclusively showed Harris’s DNA on the firearms. Harris’s previous convictions, including numerous drug sales, qualified him for a sentencing enhancement as an Armed Career Criminal. As a convicted felon, Harris is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the City of Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives ATF. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Businessman Sentenced to Prison for $1.4 Million Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A North Carolina man was sentenced today to over six years in prison for his role in orchestrating an investment fraud scheme that caused over $1.4 million in losses to multiple victims.
According to court records and evidence presented at trial, Anthony Eric Mitchell, 52, of Charlotte, was one of the two managing principals of a company called Aura Exchange LLC (AURA). Mitchell and his co-conspirator, Armando Almirall, through AURA, promised their clients that they could help obtain funding for a host of business purposes, such as real estate transactions and television projects. Instead, Mitchell and Almirall spent large portions of their clients’ funds on personal expenses, including trips to casinos, concert tickets, stays at beach resorts, cash withdrawals, and wire transfers overseas on speculative investments.
In order to induce the victims to provide AURA with money, Mitchell and Almirall made numerous fraudulent misrepresentations. The two promised clients that they were guaranteed to receive their initial equity deposits back when, in fact, none of the victims ever received any money from AURA. Mitchell and Almirall claimed that AURA had offices in Zurich, London, and New York when no such offices existed. Mitchell and Almirall also falsely claimed that AURA controlled valuable precious metals, such as nickel wire, that could be “monetized” in order to generate huge profits.
Mitchell and Almirall also maintained a website for AURA that contained a number of misrepresentations, including claims that AURA was an industry leader in a number of fields, that AURA was an international business with access to hundreds of financiers, and that AURA could turn around funding to its clients in as little as 24 hours. AURA never made any money for any of its clients, and in fact, victims of the fraud suffered losses of at least $1.47 million.
In October 2019, Mitchell was convicted on all counts after a five-day jury trial. Mitchell was also ordered to pay full restitution to the victims of the crime.
Mitchell’s business partner and co-conspirator, Armando Almirall, previously pleaded guilty to conspiracy to commit wire fraud and was sentenced to over five years in prison in February 2020.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Jamar K. Walker and Special Assistant U.S. Attorney Russell L. Carlberg prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-101.
Buffalo Man Pleads Guilty to Assaulting A VA Police OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Darnell Curry, 27, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder to assaulting, resisting, or impeding a federal officer. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that on February 19, 2020, while at the Starbucks inside the Veterans Affairs Medical Center on Bailey Avenue in Buffalo, the defendant engaged in a verbal argument with a female friend employed at Starbucks.
Three Department of Veterans Affairs Police officers approached Curry in response to a complaint about the verbal argument. When the defendant did not hear or acknowledge verbal commands, an officer touched Curry's shoulder. The defendant turned and a scuffle with the officers ensued. During the scuffle, Curry pulled an officer by the vest and into his body. In the process, the defendant struck the officer in the head, leaving a mark on his cheek below his left eye. Physical resistance by the defendant resulted in the officers taking Curry to the ground, handcuffing, and detaining him.
The plea is the result of an investigation by the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri, and the VA Medical Center Police, under the direction of Chief Michael Steinmetz.
Sentencing is scheduled for September 16, 2020, before Judge Schroeder.
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Brandon Man Sentenced for Theft of Government FundsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Robert Miller (54, Brandon) to six months in federal prison, followed by three years of supervised release, for theft of government funds. As part of his sentence, the court also entered a money judgment of $75,984, the proceeds from the offense, and ordered Miller to pay restitution.
Miller had pleaded guilty on January 28, 2020.
According to court documents, Miller’s mother, S.M., was receiving Social Security Retirement Insurance Benefits. On December 9, 2009, S.M. passed away and her death was never reported to the Social Security Administration (SSA). Consequently, the SSA continued to make the benefit payments. From December 2009 through June 2019, Miller accessed the funds meant for S.M. and used them for his own personal expenses. In total, Miller knowingly and willfully stole approximately $75,984 in benefits to which he was not entitled.
This case was investigated by the Social Security Administration – Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Bellevue Store Operator Charged with Fraud and Money LaunderingRead the Press Release
PITTSBURGH - A resident of Venetia, Pennsylvania and Davie, Florida, has been indicted by a federal grand jury in the Western District of Pennsylvania on charges of wire fraud and money laundering, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Thach Duc Le, aka "Tucker" as the sole defendant.
According to the Indictment Le operated a store on Lincoln Avenue in Bellevue called Last Call Entertainment. The indictment alleges that Le engaged in the purchase of a wide variety of goods, mostly over the counter medications and health and beauty aids, from persons that were known to Le to be substance abusers who had shoplifted or otherwise stolen the goods they sold to him at Last Call.
The law provides for a maximum total sentence of up to twenty five years in prison, a fine of $250,000 per count or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Internal Revenue Service, Criminal Investigation, the FBI and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case. Police departments from the City of Pittsburgh, Ross Township and Shaler Township also assisted in the investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Beaumont Family Sentenced for Tax Evasion and Laundering of Gambling ProceedsRead the Press Release
BEAUMONT, Texas – A Beaumont businessman, his wife, and son have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Larry Earnest Tillery, 70, Judy Kay Tillery, 63, and Brian Tillery, 47, all of Beaumont, pleaded guilty on June 25, 2019 to federal charges and were sentenced today by U.S. District Judge Thad Heartfield.
Larry Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and tax evasion. Today he was sentenced to 33 months in federal prison. Tillery was ordered to pay restitution in the amount of $1,000,040.00 and to forfeit approximately $2 million in cash, jewelry, and sports memorabilia that were proceeds of his illegal gambling enterprise. A money judgment of $32,758,541.00 was also ordered by the court.
Judy Tillery pleaded guilty to structuring of financial transactions to evade reporting requirements and was sentenced to serve two years federal probation. Judy Tillery shares the forfeiture judgment with her husband.
Brian Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and was sentenced to two years of federal probation. Brian Tillery was ordered to forfeit approximately $245,477.00 and a residence on Christina Court in Beaumont with an appraised value of approximately $600,000.00 that was determined to be proceeds of the illegal gambling enterprise. Additionally, a money judgment of $700,000.00, which represents the proceeds of the illegal gambling enterprise.
According to information presented in court, Larry Tillery was engaged in the business of accepting illegal wagers on sporting events from 1985 until April - 2017. Tillery owned and operated Daylight Motors, a used car dealership, and Lamar Capital, a holding company for Daylight Motors, and used these two companies as a front to launder illicit proceeds from his illegal gambling enterprise.
Larry Tillery used a website to receive and track wagers from his betting clients, allowing his bettors to place wagers on sporting events, including professional and collegiate basketball, baseball, and football games. Judy assisted her husband in laundering cash proceeds of his illegal gambling activities by depositing cash into her personal bank account at Beaumont Community Credit Union in Beaumont, Texas, and then writing checks to bank accounts controlled by her husband. Judy Tillery structured these cash deposits in amounts under $10,000 in an attempt to evade federal currency transaction reporting requirements.
Brian Tillery, Larry Tillery’s son, aided the bookmaking enterprise by collecting money from sports bettors; making payments to bettors on Larry’s behalf; checking the online wagers on a regular basis to make Larry aware of what bets were placed on which games; accepting illegal gambling funds from Larry and making wire transfers to pay illegal gambling debts for Larry; and mailing packages of currency in excess of $10,000 – derived from illegal gambling activities – via the United States Postal Service at the request of Larry.
Larry Tillery knew that despite the fact he was violating Texas state and federal law, federal tax law nonetheless required him to register as a bookmaker with the Internal Revenue Service and to file monthly excise tax returns to report total wagers he accepted during the month. Larry also knew that he was required to pay gross wagering excise taxes of 2% on wagers he accepted each month, but he failed to report or pay taxes to the IRS based on the wagers he accepted each month. From September through November of 2016, Larry Tillery accepted at least 450 wagers totaling $5,060,150. These wagers are subject to the 2% federal gross wagering excise tax, and Larry evaded gross excise wagering taxes of $29,717 in September 2016, $34,423 in October 2016 and $37,063 in November 2016 for a three month total of $101,203.
Between 2011 and 2016, Larry Tillery accepted at least $52 million in illegal wagers on sporting events. Larry did not report these wagers to the IRS or pay gross excise taxes. The gross wagering taxes that resulted from wagers Larry Tillery accepted between 2011 and 2016 total $1,040,000.
The investigation traced a total of 125 financial transactions in excess of $10,000 derived from illegal gambling that utilized the United States banking system. These financial transactions total $32,383,841 and occurred between 2010 and 2016.
“These sentences imposed today on the Tillery family demonstrate the Department’s commitment to hold criminal enterprises accountable,” said U.S. Attorney Stephen J. Cox. “Illegal gambling activity and tax evasion will not be tolerated in the Eastern District of Texas.”
“Today’s sentencing and forfeiture order are the culmination of a six-year multi-agency criminal investigation into one of the largest illegal sports gambling and money laundering operations in U.S. history,” said Mark Dawson, special agent in charge of Homeland Security Investigation (HSI) Houston. “Working together with our federal partners, we have successfully disrupted the Tillery family criminal enterprise and sent a message that we are united in our efforts to investigate and prosecute financial crimes.”
“Most individuals file truthful and accurate tax returns voluntarily and pay their fair share of taxes," said Gerardo Gomez, Acting Assistant Special Agent in Charge, IRS Criminal Investigation. "IRS Special Agents will continue to investigate individuals like Mr. Tillery, who gain illicit profits and evade their taxes at the expense of law-abiding taxpayers.”
This case was investigated by Homeland Security Investigations and the Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Bakersfield Truck Driving School Owner Sentenced for Scheme to Fraudulently Issue Commercial Driver’s LicensesRead the Press Release
FRESNO, Calif. — The owner of a Bakersfield truck driving school was sentenced today for his role in a conspiracy to sell California commercial driver’s licenses to unqualified drivers, U.S. Attorney McGregor W. Scott announced.
U.S. District Judge Dale A. Drozd sentenced Paramjit Singh Mangat, 56, of Bakersfield, to 14 months in prison and a $10,000 fine for his conviction on one count of unlawful production of an identification document and aiding and abetting. The court also finalized an order for forfeiture of $100,000 that had been seized as proceeds from the fraud scheme.
According to court documents, Mangat operated driving schools in Bakersfield that ostensibly provided training to those seeking to obtain driver’s licenses, including Akal Truck Driving School and Akal Driving School. When students had difficulty passing DMV examinations, in return for money, Mangat offered to assist them in obtaining fraudulently issued, yet official licenses through Mangat’s contact Javier Jesus Hernandez-Herrera, 56, then a DMV employee.
According to court documents, from approximately June 2012 through Aug. 24, 2016, Mangat conspired with Herrera, then a Licensing Registration Examiner at a DMV office in Bakersfield. In return for monetary payment, Herrera agreed to access the students’ DMV records and alter the records to reflect that the individual had passed DMV written and/or behind-the-wheel examinations, when, in fact, the individual had not passed one or more required DMV tests. Herrera’s alteration of the records resulted in the DMV issuing a California driver’s license and mailing it to that individual.
Herrera pleaded guilty on Nov. 12, 2019, and is scheduled to be sentenced on Aug. 14, 2020. Herrera faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by Homeland Security Investigations and the California DMV, Investigations Division Office of Internal Affairs. Assistant U.S. Attorneys Henry Z. Carbajal III and David L. Gappa are prosecuting the case.
Arizona Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr. sentenced Jorge Villarreal-Rojo today to a term of imprisonment of 72 months. Villarreal-Rojo will serve a 2-year term of supervised release following his release from the Bureau of Prisons. There is no parole in the federal prison system.
Villarreal-Rojo, 21, was convicted of possession with intent to distribute methamphetamine. On August 26, 2019, Villarreal-Rojo was stopped by the Omaha Police Department for a traffic violation. During the traffic stop, officers seized approximately one ounce of marijuana and $11,300. Investigators received consent to search Villarreal-Rojo’s residence in Omaha and recovered approximately 13 pounds of methamphetamine. The methamphetamine was intended for distribution in the Omaha metropolitan area. The money was forfeited to the United States.
The case was primarily investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, the Drug Enforcement Administration, and the Omaha Police Department.
Alexandria Man Pleads Guilty to Possessing a Stolen FirearmRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Malik Dorsey, 21, pled guilty today in federal court before U.S. Magistrate Judge Patrick J. Hanna to possession of a stolen firearm.
On January 28, 2020, deputies with the Lafayette Parish Sheriff's Office conducted a traffic stop of a vehicle driven by Dorsey and discovered a Sig Sauer, Model P365, 9 millimeter, semi-automatic pistol in the center console of the vehicle. Deputies learned that the firearm had previously been reported stolen by Sentry Defense, a federal firearm licensee, in Youngsville, Louisiana. Officers also recovered three 9mm rounds of ammunition.
Following further investigation, agents learned that Dorsey had another firearm at his apartment in Lafayette. On January 28, 2020, officers executed a court authorized search warrant at Dorsey’s residence and found a Glock, Model 27, .40 caliber firearm. Upon inspection of the Glock, officers discovered that the serial number located on the frame differed from the serial number located on the slide and barrel. An NCIC query of both serial numbers revealed that one of the serial numbers was reported stolen from Alexandria, Louisiana. The other serial number yielded negative results.
Dorsey faces up to 10 years in prison, three years of supervised release and a $250,000 fine, as well as forfeiture of the two firearms and ammunition related to this offense. The court set the sentencing date for September 11, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lafayette Parish Sheriff’s Office, and the Youngsville Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative. PSN is a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. PSN plays a major role in the Department of Justice’s violent crime reduction strategy. 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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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.
Alcoa Woman Sentenced for Fraud ChargesRead the Press Release
KNOXVILLE, Tenn – On June 10, 2020, Marilyn Yvette Cook (also known as Marilyn Yvette Powell), 57, of Alcoa, was sentenced by the Honorable Pamela L. Reeves, Chief U.S. District Judge for the Eastern District of Tennessee at Knoxville. Cook was sentenced to 51 months in prison, followed by five years of supervised release.
On July 31, 2019, following a two-day trial, a jury convicted Cook of presenting a fictitious obligation and submitting a false claim to the United States. At trial, the jury heard testimony that, in October of 2017, Cook attempted to deposit a false “bill of exchange,” with a face value of $1 million, to the Regions Bank branch in Alcoa. In support of the “bill of exchange,” which had the appearance of a bank check, Cook presented fictitious documents purporting to show that she possessed Treasury bonds worth more than $100 billion. The jury also heard testimony that, in January 2017, Cook filed a fraudulent federal tax return through which she sought a tax refund of more than $251,000. In addition, the jury learned that Cook had been convicted in 2006 for multiple counts of defrauding the United States through false tax returns, using personal information of indigent individuals receiving assistance from Cook’s faith-based organization, Sheep Ministries, Inc.
“The sentence imposed by the Court is the maximum under this defendant’s sentencing guidelines, which reflects this office’s and the Court’s view regarding the seriousness of the defendant’s fraudulent conduct,” said U. S. Attorney J. Douglas Overbey. “The prosecution of individuals like this defendant and the lengthy sentence imposed serve to protect our banking institutions and their depositors and deter others from engaging in similar fraudulent conduct in the Eastern District of Tennessee.”
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Cook include the U.S. Department of Treasury, Office of Inspector General, the Internal Revenue Service, U.S. Secret Service, and the Alcoa Police Department.
Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States at trial.
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A Florida Man Alleged to Have Terrorized an Underage Victim Online Indicted on Child Pornography, Enticement, and Cyberstalking ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Andrew Lynch, a/k/a Gregory O’Neil, 30, of Crystal River, Florida, with production and receipt of child pornography, enticement of a minor, and cyberstalking. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life in prison, and a fine of $250,000.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendant used Facebook to engage in sexual conversations and obtain sexually explicit images from Victim 1 who was under the age of 18. Lynch then engaged in sextortion, using those conversations and images to coerce Victim 1 into sending additional explicit pictures, videos, and engage in sexual video chats.
The defendant began communicating with Victim 1, who was 13 years old, on Facebook in late April 2018. After initially refusing to send Lynch nude photos, Victim 1 eventually sent both photos and videos because the defendant threatened to send messages to her family and friends. Lynch continued to coerce Victim 1 into sending photos and videos through the use of threats for approximately three weeks.
The defendant is being detained in Florida and will be returned to the Western District of New York at a later date for arraignment.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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38 Indicted in Massive Methamphetamine Case Crossing Multiple Pennsylvania CountiesRead the Press Release
JOHNSTOWN - Thirty-eight residents of Centre, Clearfield, Clinton and Erie Counties in Pennsylvania have been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, money laundering, and unlawful possession of firearms, United States Attorney Scott W. Brady announced today. The defendants were arrested Tuesday by federal, state and local law enforcement.
"Methamphetamine presents a clear and present danger to the safety and well-being of our western Pennsylvania communities," said U.S. Attorney Brady. "This indictment represents the largest drug investigation and prosecution in the history of Clearfield County, and we have successfully dismantled an organization bringing kilo quantities of meth from Atlanta for distribution throughout northcentral PA. I want to thank DA Sayers for his partnership, and for his leadership in dismantling drug organizations that would come to Clearfield and poison our friends and neighbors."
"DEA Pittsburgh is proud of the partnership with the Pennsylvania State Police and ATF," said Paris Pratt, Assistant Special Agent in Charge of the Drug Enforcement Administration. "Even during this COVID-19 pandemic, we’ve worked diligently on this crystal methamphetamine case in Clearfield and Erie counties."
"This was a great team effort between the Pennsylvania State Police, the Drug Enforcement Administration, the United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives," said Major Stephen K. Eberle of the Pennsylvania State Police. "For the past eighteen months Troopers and agents involved with this investigation worked tirelessly to identify and dismantle a large and well organized network responsible for the distribution of methamphetamine throughout central and northwestern Pennsylvania. The Pennsylvania State Police and its law enforcement partners remain committed to combating this type of illegal drug trade plaguing our communities."
"Today is a great day for Clearfield County thanks to the hard work of US Attorney Brady, his staff, the DEA, the ATF and the Pennsylvania State Police," Clearfield County District Attorney Ryan P. Sayers said. "This is hopefully the first of many operations and partnerships to combat the drugs that are plaguing the county."
The ten-count Indictment, returned on May 19 and unsealed today, named:
John Christopher Bisbee, 40, of Erie, Pennsylvania;
Ronald Bean, 55, of Winburne, Pennsylvania;
Kierston Bell, 32, of Clearfield, Pennsylvania;
Jonathan Bierly, 48, of Loganton, Pennsylvania;
Alexis Brolin, Jr., 51, of Allport, Pennsylvania;
Tammie Brolin, 52, of Allport, Pennsylvania;
Toby Lee Coker, 35, SCI Albion;
John Cyphert, 59, of Centre Hall, Pennsylvania;
Timothy Ferguson, 32, of Philipsburg, Pennsylvania;
Nicole Gaines, 40, of Clearfield, Pennsylvania;
Amber Gallaher, 28, of Woodland, Pennsylvania;
Brian Gidney, 46, of Mineral Spring, Pennsylvania;
Davin Gower, 26, of Morrisdale, Pennsylvania;
Mark Hackett, 32, of Woodland, Pennsylvania;
Shane Hoover, 28, of Morrisdale, Pennsylvania;
David Klanish, 49, of Philipsburg, Pennsylvania;
Andrew Knepp, 42, of Clearfield, Pennsylvania;
Michael Lamb, 45, of Morrisdale, Pennsylvania;
Chad Lawhead, 47, of Clearfield, Pennsylvania;
Brittany Luzier, 26, of Clearfield, Pennsylvania;
Logan Mactavish, 37, of Clearfield, Pennsylvania;
Evarie Magee, 36, of Erie, Pennsylvania;
Keegan McChesney, 22, of Osceola Mills, Pennsylvania;
John McKinney, 51, of Hyde, Pennsylvania;
Robert Morgret, 56, of Avis, Pennsylvania;
Jared Nyman, 22, of Lock Haven, Pennsylvania;
Robert Nyman, 58, of Mill Hall, Pennsylvania;
Timothy Perry, 37, of Erie, Pennsylvania;
Jennifer Quick, 46, of Morrisdale, Pennsylvania;
Joshua Quigley, 41, of Woodland, Pennsylvania;
Dennis James Rauch, 35, of Clearfield, Pennsylvania;
Joanna Shylock, 32, of PO Box 5, Houtzdale, Pennsylvania;
David Richard Smith, 43, of Sandy Ridge, Pennsylvania;
Jeffrey Swanson, 50, of Houtzdale, Pennsylvania;
Jessica Szymecki, 36, of Erie, Pennsylvania;
Cassandra Wallace, 35, of Woodland, Pennsylvania;
Miranda Williams, 46, of Phillipsburg, Pennsylvania; and
Shawn Workman, 41, of Brownsville, Pennsylvania.
John Christopher Bisbee and Alexis Brolin, Jr. are charged at Count One with participating in a continuing criminal enterprise as principal administrator that involves 1,000 grams or more of methamphetamine or 10 kilograms or more of a mixture and substance containing a detectable amount of methamphetamine, from July 2019 to June 2020. The statute calls for a mandatory sentence of life in prison.
The Indictment charges all defendants, with the exception of Evarie Magee, with Count Two, conspiring to distribute and possess with intent to distribute methamphetamine or a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, from July 2019 to June 2020, in the Western District of Pennsylvania. The statue calls for a mandatory minimum sentence of 10 years in prison.
John Christopher Bisbee, Alexis Brolin, Jr., Jonathan Bierley and Evarie Magee are charged at Count Three with conspiracy to commit money laundering from July 2019 to June 2020. The statute calls for a maximum sentence of 20 years in prison.
Alexis Brolin, Jr. is charged at Count Four, unlawful possession of a firearm or ammunition by a convicted felon in and around and between July 2019 and April 4, 2020. He is also charged at Count Five, Possession of a firearm in furtherance of a drug trafficking crime in and around and between July 2019 and April 4, 2020. The statutes call for a maximum sentence of 10 years in prison for the felon in possession charge and a minimum sentence of five years in prison for possession in furtherance of a drug crime charge.
Dennis James Rauch is charged at Counts Six and Seven with unlawful possession of a firearm or ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime, in and around March 2020. He is also charged with Count Ten with Possession with intent to distribute and/or distribution of methamphetamine or a mixture and substance containing a detectable amount of methamphetamine on March 14, 2020. The statutes call for a maximum sentence of ten years of incarceration and a minimum sentence of five years of incarceration, respectively.
Toby Lee Coker is charged at Count Eight with possession with intent to distribute and/or distribution of methamphetamine or a mixture and substance containing a detectable amount of methamphetamine on February 20, 2020. The statute calls for a maximum sentence of 30 years of incarceration.
Mark Hackett is charged at Count Nine with possession with intent to distribute and/or distribution of methamphetamine or a mixture and substance containing a detectable amount of methamphetamine on December 18, 2019. That statute calls for a mandatory minimum sentence of five years of incarceration.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police led the investigation leading to the Indictment in this case. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Thursday 11 June 2020
York Man Sentenced to Four Years’ Imprisonment for Firearm OffenseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 9, 2020, U.S. District Court Judge Matthew W. Brann sentenced Robert Carl Eaton, III, age 26, of York, Pennsylvania, to 48 months’ imprisonment for unlawful possession of a firearm.
According to United States Attorney David J. Freed, Eaton pleaded guilty to a felony indictment admitting that he possessed a Smith and Wesson 9mm loaded firearm as a convicted felon on October 24, 2017, in York County. Eaton was ordered to pay a $400 fine and serve three years of supervised release after his four-year prison term.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York County Drug Task Force. Assistant United States Attorney James T. Clancy prosecuted the case.
This case was 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.
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Webb City Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Webb City, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Newton County, Missouri.
Aaron S. Sutten, 35, was sentenced by U.S. District Judge M. Douglas Harpool to 13 years and four months in federal prison without parole.
On Oct. 16, 2019, Sutten pleaded guilty to participating in a conspiracy to distribute methamphetamine in Newton County from May 19 to Aug. 11, 2018.
Sutten was arrested on Aug. 11, 2018, when he met with co-defendant Shawna M. Smith, 28, of Joplin, at a local hotel. Officers contacted Sutten and Smith in the parking lot. They searched Sutten’s car and found approximately 83.66 grams of methamphetamine and 3.63 grams of black tar heroin concealed in a backpack sitting on the bench seat. They searched Smith’s car and found approximately 23.38 grams of methamphetamine and a digital scale within a purse.
Officers searched Smith’s hotel room, which was occupied by co-defendant Kiley R. McDonald, 30, of Joplin. Officers found a large plastic bag containing approximately 146.39 grams of methamphetamine on the bed with McDonald. They also found three mobile phones, drug paraphernalia, and a wireless camera RF detector (commonly used by drug traffickers to check suspected informants for covert surveillance equipment).
Sutten is the third and final defendant to be sentenced in this case. McDonald was sentenced on Feb. 11, 2020, to eight years in federal prison without parole. Smith was sentenced on March 11, 2020, to three years in federal prison without parole.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Byron H. Black. It was investigated by the Oklahoma Highway Patrol, the Missouri State Highway Patrol, the FBI, and the Joplin, Mo., Police Department.
Waterbury Felon Admits Possessing Handgun While on Federal Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DESI WILLIAMS, 39, of Waterbury, pleaded guilty today to possession of a firearm as a convicted felon, and while he was on supervised release following a prior federal conviction for the same offense.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in the afternoon of January 28, 2019, Waterbury Police officers attempted to stop a car Williams was driving at the intersection of Brass Mill Drive and Union Street for motor vehicle violations. When an officer approached the car on foot, Williams accelerated and fled from the scene. During a subsequent pursuit, Williams rammed three police vehicles before crashing his car into a utility pole on Walnut Street. Williams ran from the car, jumped over a fence and was eventually apprehended on Ives Street. A search of Williams’s car revealed a loaded Smith & Wesson .22 caliber revolver.
In 2016, Williams was convicted in federal court of possession of a firearm by a convicted felon, and he was on federal supervised release in January 2019. Prior to 2016, Williams was convicted in state court of felony robbery, burglary and failure to appear offenses.
When he is sentenced, Williams faces a maximum term of imprisonment of 10 years, and additional penalties for violating the conditions of his supervised release. A sentencing date is not scheduled.
Williams has been detained since January 28, 2019.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterbury Police Department. This case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Washington State Man Charged with Smashing Police Car WindowRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware announced today that a criminal complaint was issued on Saturday, June 6, 2020, charging Adrian Wood, 21, of Washington State, with engaging in a civil disorder that obstructed, impeded, or interfered with a law enforcement officer’s lawful duties. If convicted, Wood faces a statutory maximum punishment of up to five years in prison.
The criminal complaint alleges that, beginning in the afternoon of May 30, 2020, protesters gathered in downtown Wilmington in recognition of George Floyd’s death in Minneapolis, Minnesota. Protest participants marched in and around Wilmington, including onto Interstate Highway I-95 where they blocked traffic moving in both directions. Later in the evening, a number of persons damaged and looted commercial businesses on Market Street, including restaurants, bars, retail stores, and at least one sporting goods store. Defendant Wood was observed throwing a brick through the back window of a Wilmington Police Department (WPD) marked police car that was being operated by a WPD officer at the time of the incident. Woods ultimately surrendered to police.
U.S. Attorney Weiss commented on the issuance of the criminal complaint, “In recent days, protestors throughout Delaware have lawfully exercised their First Amendment rights in sympathy with those seeking criminal justice reform. But peaceful protest does not extend to the lawless destruction of private or public property. Thankfully, the defendant’s violent actions did not result in physical harm to the WPD officer driving the police car attacked by the defendant. I commend WPD’s collaboration with the FBI and their efforts to quickly identify and bring the defendant to justice.
“We appreciate the continued partnership and support of the U.S. Attorney’s Office and the Federal Bureau of Investigation,” said Wilmington Police Chief Robert J. Tracy. “I am glad that none of our officers were injured, and that our collaborative, investigative efforts have been successful in holding this individual responsible for his actions.”
“The cornerstone of America is built on the rights of its citizens to peacefully assemble and have their voices heard,” said FBI Special Agent in Charge Jennifer Boone. “But we cannot allow violence committed by those who try to take advantage of peaceful demonstrations to pursue their own agendas to stand. Together with our partners, we will not let anyone use violence to silence a community and we encourage anyone with information or evidence of violence to submit a tip at fbi.gov/violence.”
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Vancouver Man Charged with Securities Fraud and Conspiracy for Impersonating President of Penny Stock CompanyRead the Press Release
BOSTON – A resident of Vancouver, Canada, was charged yesterday in connection with a pump-and-dump scheme involving a penny stock company for which he impersonated the company’s president—an otherwise fictitious individual—and established a website containing false and misleading statements about the company’s purported business.
Shane Schmidt, 52, was charged in a criminal complaint unsealed today with one count of securities fraud and one count of conspiracy to commit securities fraud. Schmidt is believed to currently be in Canada.
According to the complaint, beginning in or about December 2018, Schmidt purported to be “John Scott,” the sole director and officer of the company Sandy Steele Unlimited, Inc. (“SSTU”). Acting as John Scott, Schmidt provided fraudulent information to the stock quotation service OTC Markets, including fake documents purporting to reflect John Scott’s authorized takeover of SSTU and a fake passport for John Scott, bearing Schmidt’s picture. Schmidt also established a website for SSTU that described SSTU’s purported heated garment business, but which used false and misleading pictures of products for sale by other manufacturers from other websites. Schmidt allegedly took these steps in order to enable SSTU’s stock to trade via OTC Markets, to generate interest in the stock, and to share in the proceeds of stock sales, which he later did. At or about the same time as a boiler room campaign promoted the stock in the fall of 2019, SSTU’s stock price increased dramatically as investors purchased it, before later precipitously falling.
The securities fraud charge provides for a sentence up to 20 years in prison, three years of supervised release and a fine of $5 million. The conspiracy to commit securities fraud charge provides for a sentence up to five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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 Office made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Files Action to Forfeit Waltham Home Used to Facilitate Illegal ExportsRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action against a Waltham home that was the former residence and business location of a couple previously indicted in connection with a scheme to smuggle goods out of the United States and to supply services to Syria. The United States also seized the U.S. website of the Syrian-based company Electronic Katranji Trading (“EKT”), ekt2.com, on probable cause that it was used to facilitate the illegal export of merchandise from the United States.
The Waltham home, located at 10 Juniper Hill Road, is the former residence of Anni Beurklian, a/k/a Anni Ajaka (“Beurklian”), a naturalized U.S. citizen from Lebanon and her husband, Antoine Ajaka, a/k/a Tony Ajaka (“Ajaka”), a lawful permanent resident from Lebanon. The couple operated Top Tech US Inc. (“Top Tech”), a U.S. company, from the Waltham home. Beurklian, Ajaka and Top Tech were indicted in March 2018 on conspiracy to violate U.S. export laws and regulations, conspiracy to defraud the United States, smuggling U.S. goods out of the United States, illegally providing services to persons located in Syria, mail fraud, conspiracy to obstruct justice and obstruction of justice.
While engaged in plea negotiations with the U.S. government, Beurklian and Ajaka fled the United States in 2018 to avoid prosecution, and are believed to be in Syria or Lebanon.
As alleged in the complaint, from 2014 and continuing until the couple fled the United States, Beurklian and Ajaka operated an export business, Top Tech, from the Waltham home. The couple used the home to procure goods, including electronics, computer equipment and electrical switches, from U.S. companies and exported those goods to various countries, including Lebanon, Egypt and China, in violation of U.S. law.
One of their customers was Amir Katranji (“Kantranji”), a citizen of Syria who operates and manages EKT. In 2007, EKT and its founder, Mohammad Katranji, Amir Katranji’s father, were added to the Department of Commerce’s Entity List because the U.S. government had determined that EKT and Mohammad Katranji were involved in activities related to the acquisition, attempted acquisition, and/or development of improvised explosive devices, which were being used against U.S. and Coalition troops in Iraq and Afghanistan.
Ajaka and Beurklian allegedly did business with Katranji and supplied U.S. origin goods to EKT and its subsidiary companies using Top Tech and the Waltham home. Ajaka and Beurklian were aware that Katranji operated a business in Syria and that they were providing services to Katranji and his Syrian company, EKT. It is alleged that pursuant to instructions Katranji provided, Beurklian would, contrary to law, export electronics, computer equipment and electrical switches from the Waltham home, misidentifying the purchaser or end user and falsely understating the value of the goods, thus avoiding the triggering of reporting and/or licensing obligations for exports under U.S. customs laws.
In a related action, the U.S. Attorney’s Office has obtained a seizure warrant for the website domain, ekt2.com, and related email domain @ekt2.com. EKT used the domain to facilitate the shipment of goods in violation of U.S. export laws. A banner on the website now informs the public that the website has been seized by ICE – Homeland Security Investigations.
Katranji, who operates and manages EKT, is also named as a defendant in the criminal indictment with Ajaka and Beurklian.
The civil forfeiture action and website seizure are pursuant to Title 19 of the United States Code, which provides that property used to facilitate the exporting or sending of merchandise from the United States contrary to law shall be seized and forfeited to the United States.
In July of 2018, the U.S. Department of the Treasury designated EKT, Katranji, Beurklian and Ajaka as Weapons of Mass Destruction Proliferators pursuant to Executive Order 13382. Accordingly, it is illegal for any U.S. person to do business with them. These designations and sanctions were imposed against EKT, Katranji, Beurklian, and Ajaka in coordination with similar actions by the French government based upon evidence that EKT was involved in the development of chemical weapons used by the Syrian Government.
United States Attorney Andrew Lelling; Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigation, Boston Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The criminal case was investigated by HSI, FBI, Department of Commerce, Office of Export Enforcement, Boston Field Office and Defense Criminal Investigative Service, Northeast Field Office. The civil forfeiture action and seizure warrant are being prosecuted by Assistant U.S. Attorney Carol E. Head of Lelling’s Asset Recovery Unit. The criminal case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann, Chief of Lelling’s National Security Unit.
The details contained in the civil forfeiture complaint are allegations.
U.S. Attorney, FBI Announce $100,000 Reward in Cold CaseRead the Press Release
KANSAS CITY, KAN. – The FBI is offering a $100,000 reward for information leading to the arrest and conviction of anyone responsible for the death of Alonzo Brooks. Brooks’ body was found in a creek in La Cygne, Kan., on May 1, 2004.
U.S. Attorney Stephen McAllister and FBI Special Agent in Charge Timothy Langan announced the reward during a press conference here today. McAllister and the FBI reopened the investigation over a year ago. They have reviewed evidence going back 16 years, re-interviewed many witnesses who attended a party at a farmhouse where Brooks was last seen alive, interviewed new witnesses and collected all available physical and forensic evidence.
“We are investigating whether Alonzo was murdered,” McAllister said. “His death certainly was suspicious, and someone, likely multiple people, know(s) what happened that night in April 2004. It is past time for the truth to come out. The code of silence must be broken. Alonzo’s family deserves to know the truth, and it is time for justice to be served.”
“There are many unanswered questions that surround Alonzo’s death,” Langan said. “Someone knows something and we are hopeful that with the passage of time and this significant reward this renewed effort will produce results and provide closure for the Brooks family.”
The FBI is investigating Brooks’ death as a potential racially-motivated crime. Brooks, who was 23 years old at the time he died, was one of only three African-American men at the party he attended with approximately 100 people at a farmhouse on the outskirts of La Cygne. Brooks, who lived in Gardner, Kan., rode to the party with friends, but they left before him, and Brooks eventually had no ride home.
When Brooks failed to come home the next day, his family and friends contacted the Linn County Sheriff’s Department.
From the beginning, there were rumors that Brooks had been the victim of foul play. Some said Brooks may have flirted with a girl, some said drunken white men wanted to fight an African-American male, and some said racist whites simply resented Brooks’ presence.
After the party, two troubling facts were indisputable: Alonzo could not be found; and no one who attended the party would admit to knowing what happened to him.
According to reports at the time, the Sheriff’s Department and other law enforcement agencies searched areas around the farmhouse, including parts of nearby Middle Creek, but did not find Alonzo.
After Alonzo had been missing for almost a month, a group of his family and friends organized a search. They began on the road near the farmhouse and walked the two branches of Middle Creek. In just under an hour, they found Alonzo’s body, partially on top of a pile of brush and branches in the creek.
Because Alonzo died in 2004 and because of the lapse of time between his disappearance and discovery of his body, forensic analysis of the physical evidence at the time was limited. The official autopsy performed in 2004 did not determine a cause of death.
“I have stood under the trees on the bank of Middle Creek where Alonzo’s body was found,” McAllister said. “It is a quiet place of profound sadness to one who knows its history, but no answers are there. I am convinced, however, that there are people who know the answers, people who have been keeping terrible secrets all these years and bearing a horrible burden. We are asking one or more of them to come forward now and to lay down that burden at last, so that we can ease a family’s suffering, and serve the cause of justice.”
This reward is being offered for information that leads to the arrest, prosecution and conviction of the individual or individuals that may be responsible for Alonzo’s death. Anyone with information is encouraged to call the FBI at 816-512-8200 or 816-474-TIPS or submit a tip online at fbi.tips.gov
U.S. Attorney Mike Stuart Welcomes Three New Prosecutors from Across the CountryRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Mike Stuart announced that three new Assistant U.S. Attorneys (AUSAs) have joined his team -- Ryan Blackwell, Courtney Cremeans and Nick Miller. The AUSAs took the Oath of Office before Senior United States District John T. Copenhaver, Jr. today.
“From right here in Almost Heaven West Virginia to the hills of Tennessee to the surf and sun of southern California, we are building and restocking the U.S. Attorney’s Office for the Southern District of West Virginia with a remarkable team of talent from across the nation,” U.S. Attorney Mike Stuart said. “These new prosecutors have hit the ground running. We are excited that each of them has joined our team.”
Blackwell is a graduate of the Cumberland School of Law and East Tennessee State University. Before joining the U.S. Attorney’s Office, he was a prosecutor in the Third Judicial District Attorney’s Office in Hawkins County, Tennessee.
Cremeans is a graduate of New York Law School and West Virginia University. She was previously an Assistant Prosecuting Attorney in the Cabell County Prosecuting Attorney’s Office.
Miller is a graduate of the University of San Francisco School of Law and its undergraduate school. For the past nine years, he was a Deputy District Attorney in the Orange County District Attorney’s Office in California.
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U.S. Attorney Charges Middletown Man with Sexual Exploitation of MinorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), announced today the arrest of JONATHAN WEISS, a/k/a “Ian_Jameson.” WEISS is charged with communicating with three different underage victims online and directing them to take sexually explicit images and send them to WEISS. WEISS was arrested this morning and presented today before U.S. Magistrate Judge Judith C. McCarthy in Manhattan federal court and detained.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Jonathan Weiss’s alleged crimes are abhorrent and predatory. Using a common social media app, Weiss allegedly sexually exploited three 13-year-olds. We will continue to work with our partners at Homeland Security Investigations to vigorously investigate and prosecute defendants who prey on children.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Jonathan Weiss allegedly posed as a minor and directed his teenage victims to take and send sexually explicit photographs to him through Snapchat. It is horrific for anyone to prey on our most vulnerable. HSI New York’s Child Exploitation Investigation Unit is resolute in the pursuit of alleged predators lurking within our communities, and we will continue to work with our partners in the U.S. Attorney’s Office for the Southern District of New York to protect our community from predators seeking to pull them into their dark, evil world.”
According to the Complaint[1] filed yesterday in White Plains federal court and unsealed today:
In September 2019, WEISS, a/k/a “Ian_Jameson,” communicated online via Snapchat with a 13-year-old minor (“Victim-1”) and directed Victim-1 to take and send sexually explicit photographs of Victim-1 to WEISS. WEISS engaged in the same type of activity with another 13-year-old minor (“Victim-2”) in August 2019 and a third 13-year-old minor (“Victim-3”) in May 2020.
During his communications with his victims, WEISS utilized the Snapchat screen name “Ian_Jameson” and posed as a minor. WEISS allegedly told Victim-1 that if she did not send more nude pictures to WEISS, he would send the pictures she had already sent to others. In response to the threats to send her pictures to others, Victim-1 “blocked” “Ian_Jameson” on Snapchat. Shortly thereafter, people began telling her that they had received her nude images.
There may be more victims of this alleged conduct. If you have information to report, contact Homeland Security Investigations through its toll-free Tip Line at 1-866-DHS-2423 or by completing its online tip form. Both are staffed around-the-clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing-impaired users can call TTY 802-872-6196.
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WEISS, 29, of Middletown, New York, is charged with three counts of sexual exploitation of a minor, each carrying a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the efforts of Homeland Security Investigations, the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office in Orange Park, Florida, and the Longview Police Department in Longview, Texas, in connection with this investigation. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charges in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Men Sentenced for Trafficking Multiple Kilograms of Cocaine for Mexico-Based OrganizationRead the Press Release
RALEIGH, N.C. – Two men with ties to a Mexican Drug Trafficking Organization, one residing in Graham, North Carolina and the other in Brownsville, Texas were sentenced today for their involvement in a Conspiracy to Distribute Cocaine and Marijuana.
Ramon Avila Davila, 35, and Irwin Abraham Baca, 31 were named in a three-count Superseding Indictment filed on April 9, 2019. Count 1 charged each defendant with Conspiracy to Distribute and Possession with Intent to Distribute 5 Kilograms or More of Cocaine and a Quantity of Marijuana. Count 2 charged Davila with Distribution of 500 Grams or More of Cocaine and a Quantity of Marijuana, Aiding, Abetting, and count 3 charged him with Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
On September 16, 2019, Baca pled guilty to Count One, and on December 11, 2019, Davila pled guilty to all three counts. Today, Baca was sentenced to 60 months in federal prison. Davila received a sentence of 160 months.
Davila and Baca were part of a drug trafficking organization based in Mexico. Davila resided in Graham, North Carolina, and distributed cocaine, methamphetamine, and marijuana in Eastern North Carolina. Baca regularly transported drugs and currency for the drug trafficking organization, and he also attempted to collect money for Davila.
On March 8, 2017, Baca was stopped for a traffic violation on Interstate 10 between San Antonio and Houston, Texas. Agents searched the vehicle and found four kilograms of cocaine. Following his arrest, Baca stated he had transported unspecified quantities of cocaine to North Carolina five times in the past.
On August 16, 2017, Baca was stopped in Houston after he exited a bus. Officers subsequently searched Baca’s bag and found $84,005 in U.S. currency. Upon questioning, Baca said the money did not belong to him, and that he had been paid $3,000 for transporting the money.
On December 18, 2017, agents seized 22 pounds of marijuana from Davila on its way to a confidential informant (CI). The CI indicated his source of supply was Davila, and he had received marijuana from Davila for the prior two years. Agents subsequently used the CI to make a controlled purchase of marijuana and cocaine from Davila.
On February 20, 2018, Davila was seen leaving his residence in Graham. Shortly thereafter, Davila was stopped for speeding. A search of his vehicle found 8 pounds of marijuana.
Following his arrest, investigators searched three residences associated with Davila. In a residence on Deep Creek Church Road in Burlington, North Carolina, officers found 457.1 grams of methamphetamine behind a void in the wall and a kilogram press with cocaine residue. Davila admitted that he had recently pressed five kilograms of cocaine. Officers then searched a Graham Street address in Burlington attributable to Davila and found 43 pounds of marijuana in the attic. Lastly, a search of his residence in Graham produced $14,670 in U.S. currency, a small amount of marijuana, and a .40 caliber handgun in the master bedroom.
In March 2018, Baca continued to contact the CI in an attempt to collect money owed to Davila for the marijuana and cocaine purchased on February 16, 2018. Agents subsequently determined Baca was staying at a local hotel in Laurinburg, North Carolina, and began surveillance there.
On March 22, 2018, officers searched Baca’s room and found cocaine. Agents then searched another residence in Maxton, North Carolina and seized approximately eight kilograms of cocaine that had been hidden in hollowed-out batteries, as well as more than $193,000 in currency.
Based on the above, between 2017 and 2018, Baca was accountable for almost 30 kilograms of cocaine and 2.5 kilograms of marijuana. Davila was accountable for more than 14 kilograms of cocaine, 457.1 grams of methamphetamine, and 41.5 kilograms of marijuana. Davila was a manager of criminal activity that involved five or more participants and he maintained premises for his controlled substance activities and imported drugs into the United States. Lastly, Davila possessed a firearm in furtherance of his drug trafficking crimes.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Drug Enforcement Administration (DEA), the Robeson County Sheriff’s Office, the Houston Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigated this case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
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.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00112-BO.
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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.
Two Individuals Charged with Trying to Steal Cash from Chicago ATMRead the Press Release
CHICAGO — A man and a woman have been charged in federal court with attempting to steal cash from an automated-teller machine on the South Side of Chicago last week.
In the early morning hours of June 2, 2020, PARIS MICKLE and TAHKISHA HODGE, along with other unidentified individuals, forcibly removed the ATM from its enclosure in the drive-through area of a PNC Bank branch in the 8700 block of South Cottage Grove Avenue in Chicago’s Chatham neighborhood, according to a criminal complaint filed in U.S. District Court in Chicago. The pair then unsuccessfully attempted to break into the machine, with Mickle using a blowtorch and Hodge at one point driving a vehicle with a rear chain connected to the ATM, the complaint states. Chicago Police officers arrived at the scene and arrested Mickle and Hodge after brief chases, the complaint states.
The complaint charges Mickle, 29, of Madison, Wisc., and Hodge, 35, of Chicago, with one count of conspiracy to commit bank theft. An initial federal court appearance for Hodge was held on June 10, 2020, before U.S. Magistrate Judge M. David Weisman, while an initial federal court appearance for Mickle has not yet been scheduled.
The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges. The government is represented by Assistant U.S. Attorney Prashant Kolluri.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. sentencing guidelines.
Two Former EarthWater Executives Plead Guilty for Investment Fraud Scheme Targeting Elderly VictimsRead the Press Release
Two former executives of EarthWater Limited (EarthWater), a Dallas-based company, have pleaded guilty to fraud and money laundering charges for their role in a multi-million dollar high-yield investment fraud scheme that targeted elderly victims.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group in Washington, D.C., made the announcement.
John Mervyn Price, 64, of Dallas, Texas, pleaded guilty today to one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud, 10 counts of wire fraud, and one count of money laundering, before U.S. Magistrate Judge Renee H. Toliver of the Northern District of Texas. Price will be sentenced on Oct. 7, 2020, before U.S. District Court Judge Ed Kinkeade.
Cengiz Jan Comu, 59, of Dallas, Texas, pleaded guilty on March 10, 2020, to one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud, 10 counts of wire fraud, and two counts of money laundering, before U.S. Magistrate Judge Toliver. Comu’s sentencing is currently scheduled for July 8, 2020, before Judge Kinkeade.
As part of his guilty plea, Price, who had been EarthWater’s chief operating officer, admitted that, beginning in or about 2013 and continuing through on or about Sept. 30, 2016, he and Comu, who had been EarthWater’s chief executive officer, managed and supervised a scheme to defraud individuals by convincing them to invest in EarthWater under the false pretense that their investment would increase substantially in value in the immediate future. Price further admitted that, in truth and in fact, he and his co-conspirators knew that the proceeds of EarthWater stock sales were not invested in EarthWater as described to investors, but paid out to Price and his co-conspirators to be used for their personal benefit. Price also admitted that Comu lied to investors about being a successful Wall Street veteran and that Comu had, in fact, defrauded EarthWater investors by misusing investor funds for Comu’s personal benefit.
Price also admitted that he and Comu partnered with two stock promoters, Richard Laurence Kadish, 59, of Miami, Florida, and Richard Lawrence Green, 69, of Deerfield Beach, Florida, to sell EarthWater stock and that whenever Kadish, Green or a salesperson that Kadish or Green recruited, made a sale of EarthWater stock to a victim, Comu and Price paid Kadish and Green a commission of approximately 50 percent of the victim’s funds. Price further admitted that, starting in or about 2016, through in or about January 2019, Price also worked directly with another stock promoter, Russell Filippo, 69, of Oklahoma City, Oklahoma, to sell Price’s personal shares of EarthWater stock for approximately 30 percent commission. Price told Filippo that Comu lied about being a successful Wall Street veteran and that Comu had, in fact, defrauded EarthWater investors by misusing investor funds for Comu’s personal benefit. In addition, Price admitted he and Comu had engaged in monetary transactions in excess of $10,000 in funds obtained by defrauding investors through a company called Regus Advisors, Inc.
As part of his guilty plea, Comu similarly admitted that he conspired to obtain EarthWater investor funds through a scheme to defraud in which he made materially false and fraudulent misrepresentations to investors that the majority of their funds would be used to support EarthWater’s operations, when, in fact, the funds were used to pay undisclosed, excessive commissions to those selling EarthWater stock on Comu’s behalf. Comu further admitted that he knowingly engaged in monetary transactions in amounts greater than $10,000 involving investor funds obtained as part of the fraudulent scheme.
In addition to Price and Comu, Kadish, Green, Filippo, and six other defendants have been charged in the Northern District of Texas for their roles in the EarthWater fraud, including Harley E. “Buddy” Barnes, III, 61, of Plano, Texas; Daniel Thomas Broyles Sr., 63, formerly of Malibu, California; Suzanne Aileen Gagnier, 66, of Huntington Beach, California; Joe Edward Duchinsky, 65, of Alhambra, California; Joseph Lucien Duplain, 79, of Murrieta, California; and Donald Andrew Rothman, 72, of Coral Springs, Florida. All of these defendants, except for Kadish and Rothman, were charged by a federal grand jury in a superseding indictment unsealed on Nov. 8, 2019. Kadish was charged by a federal grand jury in an indictment filed on March 5, 2019, and Rothman was charged in an information filed on Sept. 6, 2019. Kadish, Green and Rothman have pleaded guilty and are scheduled to be sentenced on Nov. 18, 2020, before Judge Kinkeade. The remaining defendants are awaiting trial, which is currently set for Jan. 19, 2021, before Judge Kinkeade.
Barnes and Beth Ellen DeGroot, 59, of Plano, Texas, were separately charged by a federal grand jury in the Northern District of Texas with conspiracy to commit wire fraud and bank fraud and obstruction of justice relating to the ongoing investigation into EarthWater, in a superseding indictment returned on March 5, 2020. Barnes and DeGroot are awaiting trial, which is currently set for Oct. 5, 2020, before Judge Kinkeade.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service. Trial Attorneys Christopher Fenton and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
The Department of Justice files Statement of Interest in Support of Equal Treatment for Washington State Church based on recent Supreme Court RulingRead the Press Release
WASHINGTON - The Department of Justice today filed a statement of interest in a Washington State federal court supporting the First Amendment religious freedom claims of a Pierce County church, explaining how a recent Supreme Court decision, South Bay United Pentecostal Church v. Newsom (May 29, 2020), supports the church’s claim.
The statement of interest explains that Washington’s preferable treatment of secular gatherings such as restaurants, taverns, and outdoor protests compared to the restrictions imposed on indoor and outdoor religious services triggers heightened scrutiny under the Constitution.
The statement of interest is part of Attorney General William P. Barr's April 27, 2020 initiative directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
“The protections enshrined in the United States Constitution and the Bill of Rights are enduring, and we must be vigilant in making sure that governments do not unlawfully infringe upon the rights that they protect. First among these rights is the First Amendment’s guarantee that no government in this country may prohibit the free exercise of religion,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Constitution’s protections are especially critical during times of crisis. The United States must remain committed at all times to the right of all people to worship and pray and follow the dictates of their conscience in a manner that respects others and the public health and safety. By doing so, our nation honors the legacy of countless patriots who worked, struggled, fought, suffered, and died to protect our freedom. The Department of Justice will continue its efforts to secure the Constitutional rights of all people in this nation.”
“The department will continue to be vigilant in protecting religious liberty when states and localities exceed constitutional limits,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, who, with Assistant Attorney General Dreiband, is overseeing the Justice Department’s effort to monitor state and local polices relating to the COVID-19 pandemic.
“At a time of uncertainty and anguish in our community, the ability to gather to express one’s faith and seek comfort is a fundamental right,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “Just as we have seen peaceful protestors gathered together and exercising their First Amendment rights, so too must we protect the right of religious institutions such as churches, mosques and temples to gather together and express their faith.”
Two weeks ago, the U.S. Supreme Court issued a ruling regarding California’s reopening plan in South Bay United Pentecostal Church v. Newsom (May 29, 2020). By a 5-4 vote, the Supreme Court declined to temporarily block California’s rules. In their opinions explaining the result, however, each Justice who wrote agreed that even during the COVID-19 pandemic the Constitution requires states to treat houses of worship equally with comparable secular businesses. Chief Justice Roberts concluded that, on the facts of the California case, California “exempts or treats more leniently only dissimilar activities, such as operating grocery stores, banks, and laundromats, in which people neither congregate in large groups nor remain in close proximity for extended periods.” He also noted that the “precise question of when restrictions on particular social activities should be lifted during the pandemic is dynamic and fact-intensive matter subject to reasonable disagreement,” which, when within constitutional bounds is entrusted to the “politically accountable officials of the states.” Justices Kavanaugh, Thomas and Gorsuch would have “grant[ed] the Church’s requested [relief] because California’s latest safety guidelines discriminate against places of worship and in favor of comparable secular businesses.”
In its statement of interest filed today in Haborview Fellowship v. Inslee, the United States explains that the State of Washington “exempts or treats more leniently” precisely the types of activities that Chief Justice Roberts said are appropriate comparators for religious gatherings—specifically, activities that involve people “congregat[ing] in large groups [ ]or remain[ing] in close proximity for extended period,” such as restaurants, taverns, and protests. Because those activities are permitted with social distancing and hygiene measures, the church must be treated the same unless the state can persuasively show that there are material differences between gathering for an extended period in a restaurant or tavern and a house of worship, or between an outdoor protest and an outdoor worship service.
Washington currently permits various restaurants and taverns to operate at 50% of capacity with no total cap on number of patrons, so long as they observe 6-foot social distancing and various hygiene measures. Places of worship, however, are limited to a hard cap of 50 people or 25% of capacity, whichever is less. Outdoor worship services are limited to 100 people. As detailed in the statement of interest, Governor Inslee has placed no limit on total numbers for outdoor protests, only requesting that participants “be safe for themselves and the people around them” by “wearing a mask and . . . distancing as much as you can.”
statement_of_interest.pdfThe Department of Justice Files Statement of Interest in Support of Equal Treatment of Washington State Church Based on Recent Supreme Court RulingRead the Press Release
The Department of Justice today filed a statement of interest in a Washington State federal court supporting the First Amendment religious freedom claims of a Pierce County church, explaining how a recent Supreme Court decision, South Bay United Pentecostal Church v. Newsom (May 29, 2020), supports the church’s claim.
The statement of interest explains that Washington’s preferable treatment of secular gatherings such as restaurants, taverns, and outdoor protests compared to the restrictions imposed on indoor and outdoor religious services triggers heightened scrutiny under the Constitution.
The statement of interest is part of Attorney General William P. Barr's April 27, 2020 initiative directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
“The protections enshrined in the United States Constitution and the Bill of Rights are enduring, and we must be vigilant in making sure that governments do not unlawfully infringe upon the rights that they protect. First among these rights is the First Amendment’s guarantee that no government in this country may prohibit the free exercise of religion,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Constitution’s protections are especially critical during times of crisis. The United States must remain committed at all times to the right of all people to worship and pray and follow the dictates of their conscience in a manner that respects others and the public health and safety. By doing so, our nation honors the legacy of countless patriots who worked, struggled, fought, suffered, and died to protect our freedom. The Department of Justice will continue its efforts to secure the Constitutional rights of all people in this nation.”
“The department will continue to be vigilant in protecting religious liberty when states and localities exceed constitutional limits,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, who, with Assistant Attorney General Dreiband, is overseeing the Justice Department’s effort to monitor state and local polices relating to the COVID-19 pandemic.
“At a time of uncertainty and anguish in our community, the ability to gather to express one’s faith and seek comfort is a fundamental right,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “Just as we have seen peaceful protestors gathered together and exercising their First Amendment rights, so too must we protect the right of religious institutions such as churches, mosques and temples to gather together and express their faith.”
Two weeks ago, the U.S. Supreme Court issued a ruling regarding California’s reopening plan in South Bay United Pentecostal Church v. Newsom (May 29, 2020). By a 5-4 vote, the Supreme Court declined to temporarily block California’s rules. In their opinions explaining the result, however, each Justice who wrote agreed that even during the COVID-19 pandemic the Constitution requires states to treat houses of worship equally with comparable secular businesses. Chief Justice Roberts concluded that, on the facts of the California case, California “exempts or treats more leniently only dissimilar activities, such as operating grocery stores, banks, and laundromats, in which people neither congregate in large groups nor remain in close proximity for extended periods.” He also noted that the “precise question of when restrictions on particular social activities should be lifted during the pandemic is dynamic and fact-intensive matter subject to reasonable disagreement,” which, when within constitutional bounds is entrusted to the “politically accountable officials of the states.” Justices Kavanaugh, Thomas and Gorsuch would have “grant[ed] the Church’s requested [relief] because California’s latest safety guidelines discriminate against places of worship and in favor of comparable secular businesses.”
In its statement of interest filed today in Haborview Fellowship v. Inslee, the United States explains that the State of Washington “exempts or treats more leniently” precisely the types of activities that Chief Justice Roberts said are appropriate comparators for religious gatherings—specifically, activities that involve people “congregat[ing] in large groups [ ]or remain[ing] in close proximity for extended period,” such as restaurants, taverns, and protests. Because those activities are permitted with social distancing and hygiene measures, the church must be treated the same unless the state can persuasively show that there are material differences between gathering for an extended period in a restaurant or tavern and a house of worship, or between an outdoor protest and an outdoor worship service.
Washington currently permits various restaurants and taverns to operate at 50% of capacity with no total cap on number of patrons, so long as they observe 6-foot social distancing and various hygiene measures. Places of worship, however, are limited to a hard cap of 50 people or 25% of capacity, whichever is less. Outdoor worship services are limited to 100 people. As detailed in the statement of interest, Governor Inslee has placed no limit on total numbers for outdoor protests, only requesting that participants “be safe for themselves and the people around them” by “wearing a mask and . . . distancing as much as you can.”
Tacoma, Washington, woman arrested for allegedly setting five police vehicles on fire during Seattle protestRead the Press Release
Seattle - A 25-year-old Tacoma, Washington, resident was arrested this morning on five federal counts of arson for burning five Seattle P0lice vehicles parked in the area of Sixth and Pine in downtown Seattle on Saturday, May 30, 2020, announced U.S. Attorney Brian T. Moran. MARGARET AISLINN CHANNON was taken into custody without incident at her Tacoma residence today. She will appear on the criminal complaint in U.S. District Court in Seattle at 1:00 p.m. tomorrow, June 12, 2020.
“This defendant was captured by multiple cameras using an accelerant, lit like a blowtorch, to start fires in five vehicles -- putting the public at risk and creating the very real possibility of a structure fire amidst the throng of people protesting downtown,” said U.S. Attorney Moran. “I commend the painstaking work of law enforcement using a variety of images to identify the defendant and locate her so she can be held accountable.”
According to the criminal complaint, investigators from the FBI, ATF, and Seattle Police Department reviewed various videos taken of the Saturday arsons, as well as videos taken at a protest Friday evening. CHANNON appears in videos from both days, and tattoos that she has on her hands and arms are clearly visible. Some of the tattoos link CHANNON to a missing person report in Texas in 2019. Ultimately, investigators uncovered CHANNON’s various social media accounts which helped confirm her identity. Investigators determined she had listed addresses first in Seattle and later in Tacoma.
Law enforcement executed a search warrant at CHANNON’s Tacoma residence and confirmed the distinctive tattoos. They also seized clothing and accessories that appear in some of the videos from the arsons.
“The number one mission of the FBI is to protect the American people and uphold the Constitution of the United States. The First Amendment guarantees Americans the right to express their opinions and peacefully protest. What it does not provide is the right to invoke violence under the guise of free speech,” said FBI Special Agent in Charge Raymond Duda of the Seattle Field Office. “In cooperation with our partners, we will work tirelessly to identify, investigate, and prevent individuals who are inciting violence, and coordinate with the United States Attorney's Office to address any federal violations.”
“ATF is the Federal agency primarily responsible for administering and enforcing the criminal and regulatory provisions of the Federal laws pertaining to arson. Arson is a crime of violence,” said ATF Acting Special Agent in Charge Jonathan Blais. “While we stand by every American’s Constitutional right to protest, when someone turns to violence, we will work tirelessly to investigate their crimes. We are working shoulder-to-shoulder with our local, state and federal partners to bring those responsible for actions such as this to justice.”
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Arson is punishable by up to ten years in prison.
The case is being investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Statement of the Department of Justice before the Senate Judiciary CommitteeRead the Press Release
William Hughes
Associate Deputy Attorney General
Craig Carpenito
United States Attorney for the District Of New Jersey
U.S. Department of Justice Joint Statement before the
United States Senate Committee on the Judiciary Washington, D.C.
For a Hearing Entitled
“Covid-19 Fraud: Law Enforcement’s Response to those Exploiting the Pandemic.”
June 9, 2020
Statement of U.S. Attorney Matthew Schneider Regarding Recent Calls to “Defund the Police”Read the Press Release
“All across America, people have rightfully expressed outrage over the senseless murder of George Floyd by marching in protests and demanding change. Some are calling for defunding our police departments. Change is needed, but completely dismantling our law enforcement and criminal justice system will not solve the problems we face, and slashing Michigan law enforcement funds would only harm our communities.
Our problems will only be solved through a spirit of cooperation. Project Ceasefire, for example, is a great illustration of how our community and law enforcement work together to make our streets safer. We need to continue on that track. If Michiganders — especially young people — want to make effective change in police practices, they should strongly consider a career in law enforcement or public service. We want to work alongside you towards a solution.”
Starr County Man Sentenced to Federal Prison, Titus County Man Guilty in East Texas Drug Trafficking OperationRead the Press Release
TEXARKANA, Texas – A 31-year-old Starr County, Texas, man has been sentenced to federal prison for drug trafficking, and a 27-year-old Titus County, Texas, man has pleaded guilty to drug trafficking in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Armando Moreno Jr. pleaded guilty on Feb. 27, 2020, to conspiring to distribute controlled substances and was sentenced to 108 months in in federal prison by U.S. District Judge Robert W. Schroeder III on June 10, 2020. He was also ordered to forfeit $350,000.00 in drug proceeds.
According to information presented in court, Moreno was stopped for a traffic violation on Oct. 29, 2019, in George West, Texas, in Live Oak County. A search of the vehicle revealed almost $350,000.00 in U.S. currency hidden in a secret compartment built into the vehicle. Moreno, traveling with his wife and two children, admitted to conspiring with his co-defendant, Jose Armando Rosales-Bernal and others to distribute cocaine. Moreno described how he had trafficked at least 15 kilograms of cocaine from Mexico to his co-conspirators in Dallas, and that the money hidden in his car was drug proceeds destined for Mexico.
Gerardo Cabrera Ramirez pleaded guilty to conspiring to distribute controlled substances before U.S. Magistrate Judge Caroline M. Craven on June 11, 2020. Ramirez agreed to forfeit $7,500.00 in drug proceeds.
According to information presented in court, Ramirez conspired with Rodolfo Javier Falcon, Eleazar Martinez Reyes, and others to distribute cocaine and methamphetamine. Ramirez admitted that he is personally responsible for distributing more than 500 grams of methamphetamine, which he had obtained from Falcon and Reyes. Specifically, on Sep. 11, 2018, and on Jan. 1, 2019, Ramirez led police on a foot chase and a dangerous vehicle pursuit when officers attempted to stop him while trafficking methamphetamine. Ramirez also admitted that his flight from police in a vehicle recklessly created a substantial risk of death or serious bodily injury to others.
Under federal statutes, Ramirez faces a minimum of 10 years and up to life in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
Operation Dirty Bird is a long-term drug trafficking and money-laundering investigation that has already led to the seizure of more than $500,000.00 in U.S. Currency, almost 40 kilograms of cocaine, more than a quarter kilogram of methamphetamine, nine firearms, and multiple vehicles.
Rosales-Bernal, Julio Villarreal, Falcon, Claudia Claribel Gardea, Jose Geraldo Ornelas-Pineda, Dalia Janes Campos Rosales, and Reyes were previously charged and arrested as a result of this investigation. Ornelas-Pineda has pleaded guilty and has been sentenced. Gardea has pleaded guilty and is awaiting sentencing. Rosales-Bernal, Villarreal, Falcon, Campos Rosales, and Reyes have pleaded not guilty and are awaiting trial. This case is pending in the Texarkana Division of the Eastern District of Texas.
If convicted, Rosales-Bernal, Villarreal, Falcon, Campos Rosales, and Reyes, face a minimum of 10 or 15 years and as much as life in federal prison.
This case is being investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division. In addition, the following agencies have played critical roles in this investigation: the Dallas office of Homeland Security Investigations; the Mesquite, Texas, Police Department SWAT team; the Texas National Guard; the Texas Department of Public Safety, Highway Patrol Division and Aircraft Division; the George West, Texas, Police Department; the 23rd Judicial Drug Task Force in Dickson, Tennessee; and the Mount Pleasant, Texas, Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
St. Charles Man Sentenced to 120 Months in Prison for Possessing with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking OffenseRead the Press Release
St. Louis, Missouri –United States District Judge Catherine D. Perry sentenced Steven Carson, 32, of St. Charles, to 120 months in prison for possessing with the intent to distribute methamphetamine and possession of a firearm in furtherance of that crime.
According to the plea agreement, on July 17, 2019, St. Louis Metropolitan Police Department officers observed a vehicle near Union Boulevard and Bircher Avenue matching the description of a truck that had been reported stolen. As officers attempted to further investigate, the truck sped onto the on-ramp of I-70 East and entered Illinois. A police helicopter successfully tracked the truck as it re-entered St. Louis. The truck then became stuck in a traffic jam near McCree Avenue and South Kingshighway Boulevard, at which point Officers were able to deploy spike strips and disable the truck as it attempted to plow through two nearby passenger vehicles. Carson exited the truck’s driver seat and was detained after a brief foot chase. Carson was arrested in possession of 5.8 grams of methamphetamine and a stolen semiautomatic firearm loaded with an extended ammunition magazine.
This case was diligently investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Jay Redd handled this case for the U.S. Attorney’s Office.
South Bend, Indiana Man Sentenced for Felon in Possession of a FirearmsRead the Press Release
SOUTH BEND - Darnell Williams, age 42, of South Bend, Indiana was sentenced by United States District Court Judge Jon E. DeGuilio for being a felon in possession of one or more firearms, announced U.S. Attorney Kirsch.
Mr. Williams was sentenced to 44 months in prison followed by 2 years of supervised release.
According to documents in this case, Mr. Williams had been involved in selling controlled substances in January and February of 2016. His home was searched by narcotics agents on February 2, 2016 and they located several firearms in his home. Prior to possessing the firearms, Mr. Williams had been convicted of several felony drug offenses.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Gary Police Department. This case was prosecuted by Assistant U.S. Attorney Frank E. Schaffer.
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South Bend, Indiana Man SentencedRead the Press Release
SOUTH BEND - Harry Kinds, age 37, of South Bend, Indiana was sentenced by United States District Court Judge Jon E. DeGuilio for conspiracy to distribute more than 50 grams of methamphetamine, announced U.S. Attorney Kirsch.
Mr. Kinds was sentenced to 130 months in prison followed by 4 years of supervised release.
According to documents in this case, Harry Kinds and another person were dealing methamphetamine together. On October 7, 2019, they were dealing at a hotel on the north side of South Bend. A hotel manager noticed their activities and called police. Police eventually arrested Kinds and the other person, and police recovered cash, drug distribution paraphernalia, and about a pound of methamphetamine. Kinds admitted that he had been buying and selling methamphetamine by the pound, and that he had brought approximately one pound of methamphetamine to the hotel for distribution. Kinds has seven felonies and ten misdemeanors convictions.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with the assistance of the St. Joseph County Police Department and the South Bend Police Department. This case was prosecuted by Assistant U.S. Attorney Joel Gabrielse.
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Somerset Felon Sentenced for Firearms OffenseRead the Press Release
JOHNSTOWN, Pa. – A resident of Somerset, Pa., has been sentenced in federal court to 15 months in prison and three years’ supervised release on his conviction of violating federal firearms laws, U.S. Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kelly B. Shaulis, 51, of Somerset, Pa.
According to information presented at trial, Shaulis illegally possessed 12 rifles, shotguns and ammunition on July 5, 2017 and Dec. 21, 2018. On Dec. 19, 2011, Shaulis was convicted in United States District Court for the Western District of PA, of unlawful possession of a firearm by a convicted felon, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Pennsylvania Office of Attorney General.
Six Members of Atlantic City Drug Trafficking Organization IndictedRead the Press Release
CAMDEN, N.J. – A federal grand jury has indicted six members of an Atlantic City drug-trafficking organization for their roles in the distribution of large amounts of heroin in the Atlantic City area, U.S. Attorney Craig Carpenito announced today.
Terryn Kelsey, 30, Jamaal Marshall, 33, Tyjuan Demarest, 40, Tieyesha Tucker, 26, Blaine Dorsey, 55, and Valarie Lamar, 60, all of Atlantic City, were each charged in a one-count indictment returned June 10, 2020, with conspiracy to distribute or possess with the intent to distribute more than 1 kilogram of heroin. These six individuals, along with 16 others, were previously charged by criminal complaint in June of 2019. They will face arraignment in federal court on a date to be determined.
Thirteen other members of this drug trafficking conspiracy have previously pleaded guilty in this case. The charges against three other defendants remain pending on complaint.
According to documents filed in the case and statements made in court:
Kelsey, Marshall, Demarest, Tucker, Dorsey, Lamar and other members of the drug conspiracy trafficked heroin from Patterson, New Jersey, into Atlantic City throughout the course of the investigation. An investigation led by the FBI used physical and video surveillance, confidential informants, consensual recordings, and two court authorized wiretaps to uncover the operations of this drug trafficking organization. The investigation tracked multiple stamps of heroin being distributed by the defendants, including “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between January 1, 2017 and June 21, 2019, these stamps were associated with 48 deaths and 84 non-fatal overdoses in New Jersey.
The charge in the indictment against Kelsey, Marshall, Demarest, Tucker, Dorsey and Lamar carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and up to a $10 million fine.
U.S. Attorney Carpenito credited special agents of the FBI’s Safe Streets South Jersey Violent Incident and Gang Task Force, Atlantic City Resident Agency, and FBI, Newark Division, under the direction of Acting Special Agent in Charge Douglas Korneski; officers of the Atlantic City Police Department, under the direction of Chief White; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Department, under the direction of Sheriff Eric Scheffler; and the Pleasantville Police Department, under the direction of Chief Sean Riggin, with the investigation leading to the charges. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the N.J. State Police for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the indictment and the original complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Serial child predator sentenced to more than two decades in federal prison for attempted sexual coercion of a minorRead the Press Release
SAVANNAH, GA: A sex offender previously convicted in state courts has been has been sentenced to more than 20 years in federal prison after being captured in a nationwide sting while attempting to commit additional crimes against children.
Benjamin Ray, 40, of Honea Path, S.C., was sentenced to 258 months in prison by U.S. District Court Judge William T. Moore Jr. after pleading guilty to Attempted Coercion and Enticement of a Minor to Engage in Sexual Activity for incidents that occurred in Chatham County, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition, Ray must serve 15 years of supervised release after completion of his prison term. There is no parole in the federal system.
“There will be no more opportunities for this criminal to prey on children,” said U.S. Attorney Christine. “Thanks to the outstanding effort of our law enforcement partners, his days of catch and release in the system of another state are over.”
According to information presented during his sentencing hearing, Ray has a more than 20-year history as a child predator, starting at age 17 when he was convicted of molesting an 8-year-old girl. After a brief prison term he was convicted at age 22 of molesting an 11-year-old girl. After release from custody, Ray repeatedly was convicted of failing to register as a sex offender.
Ray was arrested in 2019 as part of Operation Broken Heart, a nationwide operation conducted by the Internet Crimes Against Children task forces, after Ray held a vulgar online conversation with an undercover law enforcement officer whom Ray believed to be a child. During the subsequent investigation, officers found evidence that Ray was committing crimes with a real child and seeking 14-year-old victims.
“This criminal will be spending more than a year in jail for every year of his life that he has been molesting and preying on children,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Unfortunately, even a 21-and-a-half-year sentence will not restore the innocence of all the children who have fallen victim to this predator.”
Operation Broken Heart led to the arrest of nearly 1,700 suspected online child sex offenders, including two in the Southern District of Georgia. The task forces identified 308 offenders who either produced child pornography or committed child sexual abuse, and identified 357 children who suffered recent, ongoing or historical sexual
During the course of the operation, the task forces investigated more than 18,500 complaints of technology-facilitated crimes targeting children and delivered more than 2,150 presentations on internet safety to over 201,000 youth and adults.
The other Southern District defendant in the operation, Steven Andrew Ross, 30, of Savannah, was sentenced in February to 120 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Attempted Sex Trafficking of a Minor.
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) within the Office of Justice Programs (OJP). For more information, visit the ICAC Task Force webpage at www.icactaskforce.org.
The cases in the Southern District of Georgia were investigated by Homeland Security Investigations and the Savannah Police Department, in conjunction with the Internet Crimes Against Children Task Force, and prosecuted for the United States by Assistant U.S. Attorney Tania Groover.