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21 July 2020
Malden Man Indicted for CARES Act Pandemic Unemployment Fraud and Identity FraudRead the Press Release
BOSTON – A Malden man was charged today with identity fraud and with submitting fraudulent applications for Pandemic Unemployment Assistance (PUA). The federal PUA program provides unemployment-related benefits to individuals who have been impacted by COVID-19.
Wagner Sozi, 32, was indicted on two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim to the United States. Sozi was initially charged by criminal complaint and arrested on June 25, 2020. He was released on conditions following a detention hearing before U.S. Magistrate Court Judge David H. Hennessy on June 30, 2020.
Charging documents allege that Sozi engaged in a scheme to use stolen identity information to open accounts, make purchases, rent cars and apply for PUA benefits. Sozi allegedly obtained this stolen identity information from various sources, including from a Cambridge realty company that collected the personal identifying information of people who sought to rent local apartments. Sozi lived with an individual who had worked for this realty company, and agents found various files belonging to the company in Sozi’s apartment. Numerous identity theft victims tied to Sozi had been clients of this realty company, including at least one person in whose name a fraudulent PUA claim was filed.
Court documents reflect that Sozi, along with a female accomplice, opened credit accounts at an office supply retailer under various fake identities and then used these accounts to purchase Visa gift cards, resulting in a loss to the retail chain of more than $100,000. Sozi allegedly used another stolen identity to purchase a Rolex for more than $15,000. It is further alleged that he also possessed a Maine driver’s license, bearing his photograph and the name of an identity theft victim, which was used to open a bank account and to make large purchases at an Apple Store.
Following his arrest on June 25, 2020, agents seized documents from Sozi’s apartment, including a PUA debit card in another individual’s name. Further investigation revealed that the PUA claim associated with the seized debit card listed Sozi’s address as the mailing address and that another fraudulent PUA claim had been submitted under Sozi’s own name but with another person’s Social Security number.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. The false claim charge provides for a sentence of up to three years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit, the Massachusetts State Police and the Malden, Medford and Braintree Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes 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.
Large-Scale Drug Trafficker Sentenced to 15 Years in Federal Prison for Drug and Gun Crimes as Well as Illegal Reentry into the United States After DeportationRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Carlos Eduardo Lopez-Romero, age 25, a Mexican national in the United States illegally, was sentenced to serve 180 months (15 years) in federal prison, followed by 5 years on supervised release, for methamphetamine and heroin trafficking, possession of a firearm while trafficking drugs, and unlawful reentry after a prior deportation. The Denver office of the Federal Bureau of Investigation (FBI) joined in today’s announcement.
According to the stipulated facts contained in Lopez-Romero’s plea agreement, the defendant and at least two other individuals frequently dealt large quantities of methamphetamine and heroin in Denver and Lakewood, Colorado. From November 2018 to February 2019, the defendant sold approximately five pounds of methamphetamine and one pound of heroin to a FBI confidential human source over the course of six transactions. A search of a storage unit which belonged to the defendant resulted in the seizure of an additional six pounds of methamphetamine, three pounds of heroin, two semiautomatic pistols, and ammunition.
The defendant is a native and citizen of Mexico, born in Tepic, Nayarit, Mexico. The defendant was removed from the United States on November 18, 2013, through San Isidro, California. Shortly after his removal, he knowingly reentered the United States near Tijuana, Mexico/San Diego, California, without receiving the consent of the proper legal authority to reapply for admission to the United States.
“Lopez-Romero came to the United States illegally just so he could become a drug trafficker to American citizens,” said U.S. Attorney Jason Dunn. “But the FBI caught on, and now he will spend 15 years in federal prison and face deportation after he pays his debt to society.”
“The FBI will continue to work closely with our federal, state, and local law enforcement partners to combat illegal drug trafficking throughout Colorado,” said FBI Denver Special Agent in Charge Michael Schneider. “Today’s lengthy sentence of Lopez-Romero should serve as a reminder to those who prey on our communities – this criminal activity will not be tolerated and those who participate will be brought to justice.”
Lopez-Romero was remanded into custody at the conclusion of his sentencing hearing. This prosecution was part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-0097. The defendant was prosecuted by Assistant U.S. Attorney Peter McNeilly.
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.
Jamaican National Sentenced to More Than Three Years in Federal Prison for Illegal Reentry and AbscondingRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Conrad Paul Golding (49, Orlando) to three years and one month in federal prison for illegally reentering the United States after being deported. Golding had pleaded guilty on April 15, 2019.
According to court documents, after having pleading guilty to the above offense, Golding was placed on house arrest and given a bond that was co-signed by family members. Golding’s sentencing hearing was scheduled for June 17, 2019, but he removed his electronic monitoring equipment and fled from law enforcement. A bench warrant was issued and Golding was arrested in New Jersey on January 31, 2020.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It was prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, U.S. Immigration and Customs Enforcement.
Hephzibah man sentenced to 22 years in federal prison for producing child pornographyRead the Press Release
AUGUSTA, GA: A Hephzibah man arrested at an Augusta motel when a 14-year-old boy signaled that he was in danger has been sentenced to federal prison for production of child pornography.
Richard Hunt Moore Jr., 49, of Hephzibah, Ga., was sentenced by U.S. District Court Chief Judge J. Randal Hall to 264 months in prison and ordered to pay restitution of $1 million, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Moore will be required to serve 20 years on supervised release.
There is no parole in the federal system.
“This monstrous predation came to an end when a child in danger reached out to a motel worker, and that alert staff member quickly notified authorities,” said U.S. Attorney Christine. “The act of seeing something and saying something allowed law enforcement to do something by shutting down Moore and his fellow predators before another child could be harmed.”
According to court documents and testimony, the investigation began when Moore was found with a minor at a motel in Augusta. After questioning Moore, Columbia County Sheriff’s Office investigators and the FBI discovered child pornography on electronic devices in Moore’s possession. Those images led to other defendants in the case, and to their indictment on federal charges.
Moore pled guilty to one count of Production of Child Pornography, as did Charles Casey Garner, 40, of Brooklet, Ga., and Carl Scott Ruger, 40, of Guyton, Ga. Garner previously was sentenced to 15 years in prison, ordered to pay $1 million in restitution, and to serve 15 years of supervised release after completion of his prison term, which is to run concurrently with any sentence for state charges he faces in Effingham County. Ruger is awaiting sentencing.
A fourth target in the investigation committed suicide in Illinois before questioning. Moore faces prosecution for additional charges in state court.
“Predators like Moore have no place in a civilized society. Their victims are re-victimized every time their images are shared or viewed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI remains committed to protecting our young citizens and is thankful for the law enforcement partnerships that make it possible to stop people like Moore from victimizing any more children.”
“This case sends a message not just to those who look to prey on our children, but also reiterates ‘If You See Something, Say Something.’ In this case, an observant worker helped save a child from unimaginable evil,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “I am pleased by the results in this case as well as the great work that HSI and its partners are doing to protect our youth.”
The cases were investigated by HSI and the FBI, along with the Columbia County Sheriff’s Office and the Effingham County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Tara Lyons and Marcela C. Mateo.
Grand Rapids Man Sentenced to 42 Years for Stealing Guns, Witness Retaliation, Arson, and Drug CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. District Judge Janet T. Neff sentenced Charles Edward Skipp of Grand Rapids to 42 years in prison, announced U.S. Attorney Andrew Birge. Skipp pleaded guilty to 10 felony offenses in February 2020, which included being a felon in possession of firearms, stealing firearms from a licensed firearm dealer, retaliating against a witness, discharging a firearm during and in relation to a crime of violence, knowing transfer of firearms for use in a crime of violence, aiding and abetting retaliating against an informant, aiding and abetting arson in the commission of a federal felony, attempted possession with intent to distribute heroin, discharging a firearm during and in relation to a drug trafficking crime, and knowing transfer of a firearm for use in a drug trafficking crime. When imposing the 42 year sentence, Judge Neff referred to Skipp as a “one man crime spree.”
Skipp stole 89 guns from Family Farm & Home in Cedar Springs in 2017. He attempted to cover his tracks by intimidating and retaliating against a witness to the theft, which included shooting at the witnesses’ house and later setting it on fire. Skipp also used one of the stolen guns to rob and shoot a drug dealer. Many of the stolen firearms remain unaccounted for and law enforcement is still attempting to locate them. Before his latest crimes, Skipp had prior convictions for carrying a concealed weapon, reckless discharge of a firearm causing injury, armed robbery, being a felon in possession of a firearm, and domestic assault.
“This sentence represents good news for the community, which is much safer with Mr. Skipp in prison. And the 42-year sentence sends an unmistakable message to anyone else who might embark on a way of life in which one dangerous crime begets another and so on: Your spree will end with you in prison for decades; so don’t even start,” commented U.S. Attorney Birge.
“We often underestimate the enormous impact one lawless person can have in our community,” stated James Deir, Special Agent in Charge for ATF’s Detroit Field Division. “We all deserve to feel safe working and living in our community. Through hard work with our law enforcement partners in the Grand Rapids area, we have removed this violent criminal from our streets, so that we all can feel safer going about our daily lives.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives worked with the Grand Rapids Police and Kent County Sheriff’s Departments to investigate this case as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. As part of this initiative, the U.S. Attorney’s Office, county prosecutors’ offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Glendive man admits making child pornography videosRead the Press Release
BILLINGS – A Glendive man today admitted producing and possessing videos containing images of minors engaged in sexually explicit conduct, U.S. Attorney Kurt Alme said.
Anthony Dwayne Boldt, 44, pleaded guilty to production of child pornography and to possession of child pornography. Boldt faces a minimum mandatory 15 years to 30 years in prison, a $250,000 fine and from five years to life of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Boldt was detained pending further proceedings.
In court documents filed in the case, the prosecution said law enforcement received information in January that Boldt may have been filming sexual activity with a juvenile girl. Law enforcement also received digital storage cards that came from Boldt's residence. The cards contained files confirming the reported activity.
Law enforcement served a search warrant on Boldt's residence and seized multiple items of electronic media. A forensic analysis of the media found videos of the defendant and the victim engaging in sexually explicit conduct in addition to other victims, including prepubescent children, engaging in similar conduct. In an interview with law enforcement, the victim confirmed that she was person depicted with Boldt in many of the videos and that Boldt had sexually assaulted her since about 2014.
Assistant U.S. Attorney Zeno Baucus is prosecuting the case, which was investigated by the FBI.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Gas Station and Tobacco Store Owner Pleads Guilty to Cigarette TraffickingRead the Press Release
RICHMOND, Va. – A Lorton man pleaded guilty yesterday to participating in a conspiracy to traffic millions of dollars in contraband cigarettes.
According to court documents, Daniel K. Appiah, 65, owned and operated two companies that sold cigarettes between 2007 and 2020: a gas station and convenience store in Fredericksburg; and a tobacco store in Woodbridge. During the operation of his companies, Appiah received for each of them a “Certificate of Registration for the Collection of Virginia Sales and Use Tax,” which exempted Appiah from paying the Virginia sales and use tax when making business purchases. He thereafter opened business memberships at various wholesale clubs and with wholesale cigarette distributors in Virginia, and subsequently used those business memberships to make tax-free purchases of more than $7.2 million worth of Virginia-stamped cigarettes between 2015 and 2018. Appiah then sold and distributed more than $5.1 million worth of those cigarettes to cigarette traffickers whom he knew intended to smuggle those Virginia-stamped cigarettes out of the Commonwealth for re-sale as contraband cigarettes on the black market.
Appiah pleaded guilty to conspiracy to traffic in contraband cigarettes. He faces a maximum penalty of five years in prison when sentenced on November 6. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Kevin Elliker is prosecuting 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. 3:20-cr-068.
Gang Leader Sentenced to 45 years for Racketeering Conspiracy and MurderRead the Press Release
NORFOLK, Va. – A former leader of the Nine Trey Gangsters (NTG) was sentenced today to 45 years in prison for his role in a racketeering conspiracy that included the murder of 23-year-old Delante Eley.
According to court documents, Rashaun Antonio Taylor, aka “Diablo,” was a local leader of the Nine Trey Gangsters (NTG), a gang affiliated with the United Blood Nation. On March 11, 2014, after a series of incidents between Delante Eley and members of Taylor’s gang, Taylor followed Eley to his grandparents’ home, where Taylor shot and killed Eley. Two days later, Taylor and other NTG members were stopped by police while armed with a high powered Romanian-made semi-automatic rifle. Portsmouth Police detectives executed a search warrant on Taylor’s house and recovered gang paraphernalia and his cell phone. The FBI analyzed Taylor’s phone, which had been turned off for the two hours surrounding the murder, and found that nearly two hundred calls placed between the time of the murder and the traffic stop had been deleted. A confidential informant later videotaped a gang meeting led by Taylor, and several days later Taylor was overheard by the FBI and Portsmouth Police via a wire transmitter admitting to the murder.
“Taylor murdered Delante Eley in cold blood and nearly killed two others,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Taylor was the leader of approximately 40 gang members, and for years proudly proclaimed his gang affiliation. Violence was something he encouraged and personally dispatched. He bragged about this murder as his “first body,” and regularly robbed people and sold drugs as his sources of income. Threats of violence against fellow gang members, non-gang members, and even a probation officer were common for Taylor, who has spent a lifetime putting others, and this community, in fear. This significant sentence will prevent Taylor from taking another life, and will serve the purposes of general deterrence by putting others, especially those interested in gangs or currently in gangs, on notice of the consequences for taking human life and glorifying murder as a way to gain status and respect.”
On February 20, 2020, after a week-long trial, a jury convicted Taylor of racketeering conspiracy that included murder, the use of a firearm resulting in death, distribution of heroin, and being a felon in possession of a firearm.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Billy Club. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Angela Greene, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys John F. Butler, Andrew Bosse, and Joseph E. DePadilla 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. 2:19-cr-036.
Former deputy director of Signal Network Enterprise Center at Fort Gordon sentenced to federal prisonRead the Press Release
AUGUSTA, Ga: A former official at Fort Gordon has been sentenced to federal prison for lying to investigators about his disclosure of confidential information used to award competitive bids.
Vaughn Moffett, 63, of Sharpsburg, Ga., was sentenced to 20 months in prison and fined $15,000 by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to False Statement or Representation Made to a Department or Agency of the United States, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his sentence, Moffett will serve three years of supervised release. There is no parole in the federal system.
“Vaughn Moffett used insider information to steer business toward a specific, corrupt vendor,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Moffett and the other defendants disgraced their oaths to their country, and accordingly are being held accountable for their greed.”
According to information provided in court documents and proceedings, Moffett, as deputy director of the U.S. Army Signal Network Enterprise Center (NEC) at Fort Gordon, used his access to contract bid and proposal information to assist the Communications Research, Engineering and Consultants (CREC) Group with winning a contract for upgrading the Army’s communications infrastructure at Fort Gordon in 2014. When investigators later questioned Moffett, he falsely and fraudulently denied knowing how CREC was awarded the contract.
Moffett, who retired from the Army as a major in 1996, began federal service as a civilian employee in 2005.
Other defendants in the investigation each are serving federal sentences of 60 months in prison after entering guilty pleas in the investigation of bribery, bid-rigging and Small Business Administration fraud:
- Calvin Devear Lawyer, a retired U.S. Army colonel, owned the CREC Group, which had fraudulently received Small Business Administration (SBA) status as a small, disadvantaged business;
- Anthony R. Williams, while serving as a colonel in the U.S. Army, admitted he accepted bribes to steer federal procurement contracts to the CREC Group;
- Dwayne Oswald Fulton, then an employee of a defense contractor, joined Lawyer in securing small, disadvantaged status for the CREC Group.
- Anthony Roper, a former active duty U.S. Army colonel at Fort Gordon, was a co-conspirator with Lawyer. His wife, Audra Roper, was sentenced to probation for her role in the scheme.
The cases were investigated by the United States Army Criminal Investigation Command (CID), the Defense Criminal Investigative Service (DCIS), the Small Business Administration’s (SBA) Office of Inspector General, and the United States Attorney’s Office.
“Today’s sentencing is a strong reminder that there is a price to pay for anyone who tries to defraud the government or lie to federal investigators,” said Frank Robey, director of the U.S. Army Criminal Investigation Commands Major Procurement Fraud Unit (MPFU). “It will not be tolerated, and we will work tirelessly with our legal and law enforcement partners to bring to justice anyone who violates the law.”
“Our office and its law enforcement partners will aggressively investigate false statements made in attempt to receive funds from SBA’s programs,” said SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch. “It is unconscionable to fraudulently attempt to gain access to SBA funds for personal gain and profit. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“Government officials who use their positions for personal gain and undermine the public trust need to be held to the highest standards of justice,” said Special Agent in Charge Cynthia A. Bruce, DCIS Southeast Field Office. “The sentencing of Vaughn Moffett sends a strong message to those who seek to undermine the Department of Defense procurement process.”
Assistant U.S. Attorney Tara Lyons prosecuted the case on behalf of the United States.
Former Old Dominion University Student Pleads Guilty to Swatting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Vienna man pleaded guilty today to charges related to his role in a conspiracy that conducted multiple swatting events targeting journalists, a Virginia university, a historic Virginia church, and a former cabinet official.
According to court documents, John William Kirby Kelley, 19, conspired with John Cameron Denton, a former leader of the Atomwaffen Division in Texas, and others to conduct “swatting” calls. Swatting is a harassment tactic that involves deceiving dispatchers into believing that a person or persons are in imminent danger of death or bodily harm and causing the dispatchers to send police and emergency services to an unwitting third party’s address.
Kelley managed the online chatroom where conspirators chose targets and orchestrated the swatting calls. Many of the conspirators held white supremacist views and targeted individuals because they were motivated by racial animus. Kelley communicated with these white supremacists and used racial epithets.
Kelley is a former student at Old Dominion University. In early November 2018, he asked conspirators to swat Old Dominion University, which conspirators did ultimately swat on Nov. 29 and Dec. 4, 2018. In response to the bomb threat on Nov. 29, 2018, university officials issued a shelter in place order and law enforcement were forced to search and clear every building on campus.
During the course of the conspiracy, members placed at least 134 swatting calls to jurisdictions across the country. In addition to the swatting calls against Old Dominion University, conspirators conducted two additional swatting calls in the Eastern District of Virginia, including a call to a former Cabinet official living in Northern Virginia in January 2019 and the Alfred Street Baptist Church in November 2018.
Kelley pleaded guilty to conspiracy to commit an offense against the United States, interstate threats to injure. He faces a maximum penalty of five years in prison when sentenced on November 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after Senior U.S. District Judge Liam O'Grady accepted the plea. Assistant U.S. Attorney Carina A. Cuellar is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-154.
Former Local Militia Commander Sentenced to Eight Months’ Imprisonment for Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Militia Commander, Paul Nicholas, III, age 49, of Harrisburg, Pennsylvania, was sentenced to eight months’ imprisonment followed by three years of supervised release on July 21, 2020, for firearms offenses.
According to U.S. Attorney David. J. Freed, on February 3, 2018, Nicholas, a previously convicted felon, unlawfully possessed two AR-15 style rifles and a .45 caliber pistol in Enola, plus a Winchester .30 -.30 caliber rifle at his Harrisburg residence. At the time of his arrest, Nicholas was the commanding officer of the 41st Battalion of the Light Foot Militia in Central Pennsylvania.
Nicholas plead guilty to the charge in August 2018. Thereafter, Nicholas’ sentencing was placed on hold while an appeal in another similar unlawful firearms possession case was decided by the U.S. Court of Appeals for the Third Circuit. That appeal was resolved in January 2020.
Judge Rambo ordered Nicholas to begin serving his sentence on August 17, 2020.
The case was investigated by the Harrisburg Office of the FBI and was prosecuted by Assistant US Attorney Kim Douglas Daniel.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
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Former Jackson Police Officer Charged with Enticement of a Minor and Obstruction of an InvestigationRead the Press Release
Jackson, Miss. – Mark Coleman, 57, a former Jackson Police Officer, was indicted by a Federal Grand Jury on July 14, 2020, and charged with one count of enticement of a minor and one count of destroying, concealing and impeding the investigation, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
Coleman will appear for arraignment before United States Magistrate Judge Keith Ball on Wednesday, July 22, 2020 at 2:30 p.m.
According to Count 1 of the indictment, Coleman is alleged to have used a cellular telephone to attempt to persuade, induce, entice or coerce a minor under the age of 18 to engage in sexual activity in violation of Mississippi’s sexual battery statute. According to Count 2 of the indictment, Coleman is alleged to have deleted text messages and images of a minor female from his cellphone and disconnected service to a cellphone he had purchased for the minor female victim, in an attempt to impede, obstruct or influence the investigation.
If convicted, Coleman faces a maximum penalty of life in prison for enticement of a minor and a maximum penalty of 10 years in prison for destroying, concealing and impeding the investigation.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Glenda Haynes.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Former Georgia attorney sentenced to two years in federal prison for theft of client fundsRead the Press Release
ATLANTA - Carla B. Gaines, an attorney formerly licensed in Georgia, has been sentenced to federal prison for stealing client money and lying about the theft.
“Gaines stole over $300,000 in client money and then repeatedly lied about it, including twice under oath,” said U.S. Attorney Byung J. “BJay” Pak. “We hope that this prison sentence brings a measure of justice to the defendant’s victims, who were abused and had their trust violated.”
“Gaines compounded her deceit by lying under oath and is another example of the FBI's commitment to holding accountable anyone who violates their sworn oath to uphold the Constitution of the United States,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Her actions not only violated her clients’ trust, but also insulted every lawyer who honors and respects the oath they took.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Carla B. Gaines was an attorney, licensed in Georgia, until she was disbarred on November 18, 2019. From August 2014 through March 2016, she stole $337,400 that she had received from Clayton County, Georgia, government, to hold in escrow for payment to a Georgia business, Kelete, Inc., which owned a gas station and convenience store in College Park, Ga. After the theft, Gaines lied to Clayton County and Kelete to lull them into believing that she still had the money and payment was on the way.
In 2014, Clayton County entered into an agreement with Kelete for Kelete to sell a right of way or easement through Kelete’s property to the County, for $712,400. Gaines was retained to serve as the escrow agent for this real estate transaction. Clayton County transferred $712,400 to Gaines for her to hold in escrow and complete the transaction.
In November 2015, Clayton County and Kelete closed the real estate deal. Gaines paid $375,000 to Kelete and its bank at the time of closing. Under the settlement agreement, Gaines was required to hold the remaining $337,400 in escrow until Kelete removed certain trade fixtures and improvements on the property. In March 2016, Kelete completed the removal and requested the remaining payment of $337,400. But Gaines never paid, despite repeated demands. Instead of holding the $337,400 in escrow as required, Gaines had diverted the funds to pay for personal and law firm expenses.
Beginning in March 2016, when payment was demanded, Gaines repeatedly made false representations to Clayton County and Kelete about whether she had the money and whether payment was on the way. For example, Gaines falsely claimed that the wire was “pending,” that the wire was “stuck,” that she had a check ready for Kelete, that she was “awaiting a call from the bank,” that “the bank was holding the wire,” that she had “straightened out the issue,” and that the “wire should be processed Monday.” These representations were false. No wires were stuck, pending, held, or on their way; and no check was ready. Gaines had far less than $337,400 in her bank accounts at the time she made these misrepresentations.
Kelete sued Gaines to recover the $337,400 it was owed. As part of that civil proceeding, Gaines lied in two depositions, in March 2017 and June 2018. Gaines testified that she had paid a portion of Kelete’s funds to another client, a pastor, in error. Gaines also testified that she had called the pastor and informed him of the mistake, and that he had promised to pay the money back to Gaines. Those representations were false.
Gaines, 61, of Mableton, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay $330,900 in restitution. She was convicted after pleading guilty to theft from a local government that receives federal funding.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Man Sentenced to Prison for Making Threats Against the American Family Association in TupeloRead the Press Release
A Florida man has been sentenced to serve time in federal prison for making threats against individuals at the American Family Association in Tupelo, Mississippi. On Monday, July 20, 2020, U.S. District Judge Sheri Polster Chappell in the Middle District of Florida sentenced 21-year old Chase Davis of Pompano Beach, Florida to 6 months incarceration for his May 22, 2019, threat to “to kill every single person” associated with the American Family Association. Judge Chappell ordered Davis to report to prison today, July 21, 2020 to begin serving his sentence. Once he has served the required term in prison, Davis will be under court supervision for three years. Davis was also ordered to pay $1,440 in restitution for costs the American Family Association incurred to protect its employees after the threat.
Davis was indicted for his criminal threats by a grand jury in the Northern District of Mississippi during the Summer of 2019. He pled guilty to those charges before a District Court in Florida pursuant to a rule that allows a defendant to plead guilty to charges in the District where they reside upon agreement by the parties and the Court. As a part of the sentence imposed on Tuesday, the Court also ordered Davis to participate in drug and mental health treatment and perform 400 hours of community service in lieu of a fine.
U.S. Attorney William C. Lamar praised the sentence and said, “It is important to protect free speech, but when it crosses the line and becomes threats to harm others on the basis of race, religious beliefs, political affiliations or other protected reasons, we will use Federal laws to hold those individuals accountable for their actions.”
Five indicted in Toledo City Council bribery and extortion schemeRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury sitting in Cleveland, Ohio, has returned a 13-count indictment charging four sitting Toledo City Council members and one local attorney for their participation in a bribery and extortion scheme that encouraged soliciting and accepting cash, checks, money orders, or other things of value from local business owners in exchange for their votes on City Council.
“Today’s indictment is the next step in the process of ensuring accountability and maintaining the public’s trust in its elected officials in the city of Toledo,” said U.S. Attorney Justin Herdman. “Let this indictment serve as a reminder to all who seek to exploit their elected positions for personal enrichment – the public deserves better and we, the Department of Justice, will work day in and day out to ensure that the public’s interests are protected.”
"Elected officials are elected by the people, to serve the people, not to serve their own financial self-interest,” said FBI Special Agent in Charge Eric B. Smith. “The FBI will continue efforts to root out public corruption so citizens can have faith and trust in their public officials.”
Tyrone Riley, age 64, of Toledo, was indicted on one count of Hobbs Act conspiracy and five counts of Hobbs Act extortion under color of official right.
Yvonne Harper, age 71, of Toledo, was indicted on one count of Hobbs Act conspiracy, two counts of Hobbs Act extortion under color of official right and one count of conspiracy to commit extortion.
Garrick “Gary” Johnson, age 66, of Toledo, was indicted on one count of Hobbs Act conspiracy and two counts of Hobbs Act extortion under color of official right.
Larry Sykes, age 71, of Toledo, was indicted on one count of Hobbs Act conspiracy and two counts of Hobbs Act extortion under color of official right.
Keith Mitchell, age 69, of Toledo, was indicted on one count of Hobbs Act conspiracy and two counts of Hobbs Act extortion under color of official right.
According to the criminal complaint, in early 2018, the FBI began to investigate four Toledo City Council members and one attorney for soliciting monetary payments or other things of value from local business owners in exchange for their votes on City Council. In addition, Councilwoman Harper was investigated for an extortion attempt on a local business.
Read more on this case here: “Five charged in Toledo City Council bribery and extortion scheme”.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by the Cleveland Division of the FBI and is being prosecuted by Assistant U.S. Attorney Michael Freeman.
Federal Grand Jury Indicts Austin Man for Possession of an Improvised Explosive DeviceRead the Press Release
In Austin today, the federal grand jury indicted 35-year-old Joshua Colin Honigberg for possessing an improvised explosive device, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The indictment charges Honigberg with one count of unlawful possession of a destructive device. According to court records, FBI agents and Austin Police officers executed a search warrant on May 29, 2020, at the defendant’s residence. During the search, authorities recovered an explosive bomb capable of causing property damage and personal injuries and/or death to nearby persons upon detonation.
Upon conviction, Honigberg faces up to ten years in federal prison.
The FBI, together with the Austin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), investigated this case. Assistant U.S. Attorney Grant Sparks is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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.
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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.
Fayetteville Man Sentenced to More Than 6 Years for Ammunition ChargeRead the Press Release
NEW BERN, N.C. – Chancelor Johnson, III of Fayetteville man was sentenced today to 80 months in prison for unlawfully possessing ammunition.
According to court documents, on July 13, 2018, officers with the Fayetteville Police Department responded to 6338 Paddington Court in reference to a shooting. There, they observed a man suffering from a gunshot wound. According to the victim, Johnson, broke a window to the victim’s residence, and thereafter he observed Johnson pacing in his front yard. When the victim asked him to leave, Johnson pulled out a gun and attempted to shoot him. The gun misfired. Johnson ejected the round and pulled the trigger again—this time striking the victim in the pelvic area. Johnson then fled the scene. Multiple individuals advised law enforcement that the defendant threatened to shoot and kill the victim prior to the shooting. A short time after the shooting, law enforcement apprehended Johnson and found him to be in possession of a 9mm bullet—the same caliber bullet found on the victim’s property. Johnson is a convicted felon and prohibited from possessing ammunition.
This case is also 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 United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its 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 more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Fayetteville Police Department investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
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-00213-FL.
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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.
Erie Man Facing Charges Related to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Gregory Samuel Mancini, 31, as the sole defendant.
According to the Indictment presented to the court, from January 2015 to January 2020, Mancini received and possessed computer images depicting prepubescent minors engaging in sexually explicit conduct. In addition, Mancini travelled to Georgia from Erie, Pennsylvania for the purpose of engaging in illicit sexual conduct with another person.
The law provides for a maximum total sentence of 70 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Homeland Security Investigations conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Duquesne Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH, PA - A resident of Duquesne, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms law, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Mitchell Johnson, age 26, as the sole defendant.
According to the Indictment, Johnson was found to be in possession of a firearm after having previously been convicted of a felony.
The law provides for a maximum total sentence of 10 years in prison, a fine of not more than $250,000, 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.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican Man Sentenced to 37 Months for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jose Gonzalez-Reyes, age 53, a citizen of the Dominican Republic, was sentenced today to 37 months in prison for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Gonzalez-Reyes admitted as part of his guilty plea that he is a citizen of the Dominican Republic, and that he was removed from the United States to the Dominican Republic on June 5, 2002 and again on July 27, 2011.
On March 21, 2018, he was found by an ICE Officer in the Albany County Jail. A check of fingerprint records resulted in the discovery of the prior removals. Gonzalez-Reyes was an inmate at the Albany County Jail after his arrest for selling controlled substances in the city of Albany during the summer of 2017. Gonzalez-Reyes was convicted in Albany County Court of Criminal Sale of a Controlled Substance, Third Degree, and sentenced on November 2, 2018 to 30 months in state prison .
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Dentist and Nurse Practitioner Sentenced to Prison for Conspiracy to Commit Health Care FraudRead the Press Release
Hattiesburg, Miss. – Gregory Parker, 51, of Laurel, Mississippi and Brantley Paul Nichols, D.M.D., 42, of Oxford, Mississippi were sentenced today by Senior U.S. District Judge Keith Starrett for conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi, and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service’s (“DCIS”) Southeast Field Office.
Gregory Parker was sentenced to 18 months in federal prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $566,979.69.
Brantley Paul Nichols was sentenced to 12 months and one day in federal prison followed by three years of supervised release with 6 months of electronic monitoring. He was also ordered to pay a $75,000 fine along with restitution in the amount of $696,026.
Between 2012 and 2015, while Parker was a nurse practitioner, he conspired with Hope Thomley, owner of Total Care Marketing and Advantage Pharmacy in Hattiesburg, Mississippi, and others to sign numerous blank prescriptions for very expensive compounded creams that Parker knew were not medically necessary. Some of the prescriptions were for patients Parker never examined, including some of Thomley’s family members. As part of the conspiracy, Parker agreed with Thomley that he would be given a kickback for prescribing dietary supplements that were compounded by Advantage Pharmacy. Parker admitted that he would not have written the prescriptions unless he was being reimbursed. Parker’s fraudulent prescriptions cost health care benefit programs, including Tricare, $566,979.69.
Like Parker, beginning in October 2014 and continuing through January 2016, Nichols conspired with others to sign numerous blank prescriptions for expensive compounded medications for patients he did not examine. Nichols admitted to knowing the prescriptions would be submitted to Advantage Pharmacy and Tricare, and other health care benefit programs would ultimately be billed for the prescriptions that were not medically necessary. In total, Tricare reimbursed Advantage Pharmacy approximately $696,000 for the prescriptions that were signed by Nichols.
Hope E. Thomley, 52, previously pled guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion. She will be sentenced by Judge Starrett on July 23, 2020.
The IRS-CI, DCIS, FBI, and the Mississippi Bureau of Narcotics investigated the case. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section of the U.S. Department of Justice and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Convicted Sex Offender Sentenced for Possessing Child PornRead the Press Release
TOPEKA, KAN. – A convicted sex offender was sentenced today to eight years in federal prison for possessing child pornography, U.S. Attorney Stephen McAllister said today.
Bryan S. Duncan, 35, Manhattan, Kan., pleaded guilty to one count of possession of child pornography. In his plea, he admitted that undercover investigators downloaded child pornography from his account via a peer-to-peer file-sharing program. When investigators served a search warrant at Duncan’s home in Manhattan they found electronic devices containing 450 video files.
Duncan had a previous child pornography conviction from 2005.
McAllister commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Convicted Murderer Sentenced on Federal Charges of Re-Entering the United States Illegally and Possessing Counterfeit DocumentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Everardo Donoteo-Reyes, 29, of Mexico, who was convicted of possession of a counterfeit social security card and alien registration card, and illegal re-entry after deportation, was sentenced to serve 30 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in September 2016, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), administratively arrested the defendant in Gretna, Louisiana, and in October 2016, he was ordered removed from the United States. Upon his departure, Donoteo-Reyes was advised that he could not re-enter the United States without the permission of the United States Attorney General, or his Successor, the Secretary of Homeland Security.
On March 1, 2017, United States Border Patrol encountered the defendant in the United States and administratively arrested him in Laredo, Texas. Two days later, on March 3, 2017, Donoteo-Reyes pleaded guilty to entering the United States unlawfully and was sentenced to 15 days confinement. On March 15, 2017, the defendant was physically removed from the United States to Mexico. Donoteo-Reyes was once again advised that he could not re-enter the United States without permission.
On May 24, 2018, the defendant was arrested by the Wayne County Sheriff’s Office on New York State criminal charges. The sheriff’s office sent Donoteo-Reyes’s fingerprints to Immigration and Customs Enforcement (ICE). An immigration records check determined that the defendant had no valid immigration status and was again illegally present in the United States. During the course of an investigation into the defendant’s missing girlfriend and her son, the Wayne County Sheriff's Office located fraudulent documents belonging Donoteo-Reyes, including a counterfeit alien registration card bearing defendant’s photograph, as well as a fraudulent social security card.
Donoteo-Reyes was subsequently indicted for the murder of his girlfriend and her toddler son. He pleaded guilty to 1st Degree Manslaughter and was sentenced to serve 20 years in prison on November 7, 2019. Donoteo-Reyes will serve his federal prison sentence once his state sentence is complete.
“Having been twice previously deported, the defendant unlawfully returned to the United States and murdered a young mother and her 14-month old son,” stated U.S. Attorney Kennedy. “Sadly, no amount of punishment for this defendant will undo those harms. Nevertheless, this federal prosecution does provide some measure of additional punishment for the defendant and, with it, some additional protection for our community.”
Today’s sentencing is the result of an investigation by agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Wayne County Sheriff’s Department, under the Direction of Sheriff Barry Virts.
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Convicted Money Launderer Pleads Guilty to Defrauding Bank While He Was Serving Term of Supervised ReleaseRead the Press Release
WASHINGTON – Deallto McQuil Key Davis, 25, of Maryland, pled guilty today to conspiring to defraud Wells Fargo Bank out of hundreds of thousands of dollars, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the Federal Bureau of Investigation’s (FBI) Washington Field Office Criminal Division.
Davis pled guilty to one count of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 371, in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum sentence of five years in prison. Under federal sentencing guidelines, Davis faces a likely recommended sentence of 24 to 30 months in prison. The plea agreement calls for Davis to pay $144,117 in restitution and the same amount in a forfeiture money judgment.
In 2015, Davis was convicted of conspiracy to commit money laundering in federal court in Virginia. He was sentenced to six months in prison and three years of supervised release for that offense.
From January 2018 through April 2018, while he was on supervised release, Davis conspired with others to defraud Wells Fargo Bank. The conspiracy involved Davis traveling to Wells Fargo ATMs in the District of Columbia, Maryland, and Virginia, depositing worthless checks into accounts belonging to other account holders, and causing the ATMs to malfunction. The checks Davis deposited were ultimately dishonored by the issuing banks, but in some cases, any hold that Wells Fargo placed on the deposited checks expired before Wells Fargo discovered the fraud. In total, Davis used Wells Fargo ATMs to conduct 24 fraudulent check deposits totaling approximately $390,000 into various Wells Fargo accounts. Participants in the conspiracy accessed approximately $144,000 from the accounts before Wells Fargo discovered the fraud.
The Honorable Trevor N. McFadden accepted Davis’ guilty plea and scheduled his sentencing for October 8, 2020.
In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those from the FBI’s Washington Field Office who investigated the case. They also expressed appreciation to Paralegal Specialists Mariela Andrade and Amanda Rohde. Finally, they commended the work of former Assistant U.S. Attorney Anthony Saler, and Assistant U.S. Attorneys Kondi Kleinman and David Kent, for prosecuting the case.
Convicted Felon Sentenced for Selling Stolen Firearms in WythevilleRead the Press Release
ABINGDON, VIRGINIA – John Benjamin Webb was sentenced today in U.S. District Court in Abingdon to 42 months in federal prison on charges he illegally possessed and later sold stolen firearms. United States Attorney Thomas T. Cullen made the announcement today following Webb’s sentencing hearing.
Webb, 44, of Pipestem, West Virginia, previously pleaded guilty to possession of stolen firearms, the illegal transfer of stolen firearms, and the illegal possession of a firearm by a previously convicted felon.
According to court documents, Webb admitted to breaking into the home of a neighbor and stealing two shotguns, two rifles, and cash. Webb then took the stolen guns to Wytheville, Virginia where he sold them at a pawnshop. At the time Webb sold the firearms, he previously had been convicted of several felony offenses.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, West Virginia State Police, Mercer County West Virginia Sheriff’s Office, and Virginia State Police. Assistant United States Lena Busscher prosecuted the case for the United States.
Convicted Felon Removed from the United States by ICE Following the Dismissal of Multiple Lawsuits Attempting to Stay in the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Rohan Brown, 40, of Kingston, Jamaica, was removed from the United States and returned to Jamaica by Immigration and Customs Enforcement, Emergency Removal Operations, (ICE-ERO) after multiple failed litigation attempts to remain in the United States.
Assistant U.S. Attorney Adam A. Khalil, who litigated the case for the United States Attorney’s Office, stated that in 2007, Brown, who was present in the United States illegally, was convicted following a jury trial in Queens County Court of multiple felonies, including: Criminal Sale of a Controlled Substance, Criminal Possession of a Loaded Firearm, Criminal Possession of an Assault Weapon, and Criminal Sale of a Firearm. Brown sold cocaine and eight firearms to an undercover police officer. The firearms included revolvers, pistols, an assault rifle, and a machine gun. The defendant was sentenced to serve more than 14 years in prison. After being released from state prison in 2018, Brown was arrested, taken into custody by ICE, and held in detention pending his removal from the United States.
Brown attempted to evade removal to Jamaica by claiming that he was an American citizen, born in the U.S. Virgin Islands. He filed multiple federal lawsuits seeking release into the United States. One of those lawsuits was brought by the New York Civil Liberties Union on Brown’s behalf.
In support of his claim to American citizenship, Brown produced a fraudulent birth certificate and driver’s license from the U.S. Virgin Islands. He also claimed that he lacked any living family members who could support his claims to American citizenship, and argued in his lawsuits that ICE could not prove his Jamaican citizenship, and therefore could not deport him. During the investigation into these claims, ICE obtained a letter from the Registrar for the U.S. Virgin Islands Department of Health, Bureau of Statistics, which certified that not only did no record of birth exist for someone named Rohan Brown, but the city of birth on the birth certificate was misspelled, and the person listed as registrar never held such a position.
With assistance from ICE and the U.S. Department of State’s Diplomatic Security Service (DSS), the United States Attorney’s Office was able to identify Brown’s brother and sister, both living, who had visited him while he was in prison. DSS was able to retrieve information pertaining to these siblings. Using this information, DSS and ICE located Brown’s mother in Jamaica, and identified his father, which ultimately led to ICE obtaining Brown’s actual birth certificate in Kingston, Jamaica.
As a result of this evidence, Brown’s lawsuits were dismissed, blocking his release into the United States. Brown was removed to his native country of Jamaica on June 25, 2020.
“This marks the end of the defendant’s long and protracted effort to remain in the United States,” stated U.S. Attorney Kennedy. “While in this country illegally, Rohan Brown committed serious crimes for which he was justly convicted and punished. Thanks to the diligent investigative efforts of our partners at ICE and DSS, the defendant’s dishonest and fraudulent attempt to remain in our country as a convicted drug dealer and armed felon was exposed, and his effort failed.”
“The prosecution and ultimate removal of Mr. Brown is the culmination of an extensive collaborative effort by ICE Enforcement and Removal Operations, the U.S. Attorney’s Office, and the U.S.
Department of State’s Diplomatic Security Service,” said Thomas Feeley, ICE ERO Field Office Director for Buffalo. “I want to applaud the skilled deportation officers and talented prosecutors whose determination ensured Mr. Brown’s removal, despite multiple attempts to block his rightful repatriation to Jamaica.”Brown’s removal is the result of an investigation by Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Director of Field Operations Thomas Feeley, and the U.S. Department of State’s Diplomatic Security Service, under the direction of Resident Agent-in-Charge Kenneth M. Haynes.
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Convicted Felon Pleads Guilty to Possession of a Stolen FirearmRead the Press Release
Memphis, TN – Reginald McFarland, 38, has pleaded guilty to being a convicted felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the guilty plea today.
According to the information presented in court, on August 7, 2018, the Shelby County Shelby’s Office Fugitive Apprehension Team (FAT) had an arrest warrant for McFarland, who was residing at the Villa Inn hotel in Memphis. Law enforcement verified that McFarland had a state arrest warrant for criminal attempt: murder first degree.
Upon entering the hotel room, officers observed McFarland standing in the bathroom and noticed a bullet in the toilet bowl. A gun was recovered from the toilet tank. Further investigation from Memphis Police revealed this gun was purchased by D.H., who had reported it stolen from him by McFarland on August 1, 2018. McFarland was previously convicted of a felony drug offense. The state prosecution against McFarland for attempted murder is still pending in the Shelby County Criminal Court.
Sentencing is set for November 4, 2020, before U.S. District Court Judge Mark S. Norris. If convicted, McFarland faces up to 10 years in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Under our PSN initiative, we focus on removing firearms from the hands of prohibited persons, and removing dangerous felons from our streets. This federal conviction will remove this gun-toter from the community while he awaits trial on violent state charges, and will make Memphis and West Tennessee a safer place."
This case was investigated by the Memphis Police Department; the Shelby County Sheriff’s Office and Project Safe Neighborhoods (PSN) Task Force. The Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Justice Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Special Assistant U.S. Attorney Samuel D. Winnig is prosecuting this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Convicted Felon Is Sentenced to More Than Five Years in Prison for Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney handed down a 68-month sentence Monday afternoon to Delmond Dmonta Cunningham for a firearms offense, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Cunningham, 26, of Charlotte, was also ordered to serve three years under court supervision.
U.S. Attorney Murray is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
According to court documents and yesterday’s sentencing hearing, on August 30, 2018, at about 7:30 a.m., CMPD offices responded to a call regarding shots being fired near Villa Heights Elementary School in Charlotte. Court records show that a male, later identified as Cunningham, fired two shots at his ex-girlfriend and a relative, while they were in their vehicle dropping off the victim’s daughter at school. According to court documents, Cunningham followed the victim throughout the school parking lot, and once the victim left the parking lot Cunningham pointed a firearm out of his car window and fired two shots at the victim’s car. After the shots were fired, Cunningham fled the scene. Court records show that Cunningham has a history of domestic violence, and that, at the time of the incident, the victim had obtained a restraining order against him.
Over the course of the investigation, law enforcement determined that two .45 caliber shell casings were found in the school parking lot, which were later matched up with a stolen .45 caliber pistol found in Cunningham’s possession at the time of his arrest. One of the rounds fired penetrated a bedroom of a nearby house. Cunningham has a prior felony conviction and is prohibited from possessing a firearm or ammunition. On April 23, 2019, Cunningham pleaded guilty to possession of ammunition by a convicted felon. At yesterday’s sentencing hearing, Judge Whitney varied upward and imposed on Cunningham a sentence above the statutory guidelines.
At the sentencing hearing, in discussing the nature and circumstances of the offense, Judge Whitney described the defendant’s actions as “extraordinarily reckless” and noted that, luckily, “the round that went into another house did not hurt anyone.” Cunningham is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility.
The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte.
Cincinnati Man Sentenced to 288 Months for Fentanyl and Heroin TraffickingRead the Press Release
COVINGTON, Ky. - A Cincinnati man, Quintin Tyler Brian Davis, 37, was sentenced in federal court on Tuesday, to 288 months in prison, by U.S. District Judge David Bunning, after previous being convicted of conspiracy to distribute 400 grams or more of fentanyl and one kilogram or more of heroin, and possession with the intent to distribute.
According to testimony at trial, Davis conspired with Ronnie Teets and Donald Hoffman to distribute kilograms of fentanyl and heroin, which were received through delivery services, cut the substances with lactose, and distributed them in the Greater Cincinnati area. Agents seized more than $100,000 in currency, a loaded handgun, and several quantities of heroin and fentanyl from locations in Cincinnati and Florence, Kentucky, in August of 2018.
Davis, Teets, and Hoffman were indicted in December 2018. Davis’ co-defendants previously pleaded guilty to conspiracy charges. Teets was sentenced to 192 months in federal prison, in March 2020, and Hoffman was sentenced to 72 months in federal prison, in June 2020.
Under federal law, Davis, Teets, and Hoffman must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the U.S. Probation Office for five years.
“Fentanyl and heroin cause misery and death for many in our communities, and the defendants in this case were distributing a significant amount of these drugs in the Greater Cincinnati and Northern Kentucky region,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Because of the cooperation and coordination of several law enforcement agencies, their drug trafficking business was dismantled and deadly drugs were removed from the community. The sentences imposed should also serve as a warning that, if you are convicted of trafficking in illegal opioids, you face significant time in federal prison.”
U.S. Attorney Duncan; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; Director Christopher Conners, Northern Kentucky Drug Strike Force; and Chief Eliot Isaac, Cincinnati Police Department, jointly announced the sentences.
The investigation was conducted by the DEA, the Northern Kentucky Drug Strike Force, and Cincinnati Police Department. The United States was represented in the case by Assistant U.S. Attorney Tony Bracke.
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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Brooklyn Park Man Charged with Illegally Possessing A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced the unsealing of a federal indictment charging TYAIREON MARTEZ WEST-PORTER, 23, with one count of possession of a firearm by a felon. WEST-PORTER, who was arrested on July 20, 2020, made his initial appearance earlier today before Magistrate Judge Katherine M. Menendez in U.S. District Court in Minneapolis, Minnesota. WEST-PORTER was ordered to remain in custody pending a formal detention hearing, which is scheduled for Thursday, July 23, 2020.
According to allegations in the indictment, on March 6, 2020, WEST-PORTER was found to be in possession of a .40 caliber Glock 22 Gen 4 semi-automatic pistol. Because WEST-PORTER has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Minneapolis Police Department and the FBI. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Justin A. Wesley is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
TYAIREON MARTEZ WEST-PORTER, 23
Brooklyn Park, Minn.
Charges:
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Boylston Business Owner Sentenced to PrisonRead the Press Release
BOSTON – A Boylston man was sentenced today to prison for filing false and fraudulent corporate and individual tax returns.
Robert Fuller, 70, was sentenced by U.S. District Court Judge Timothy S. Hillman to six months in prison, one year of supervised release and ordered to pay restitution of $451,535 to the Internal Revenue Service. In February 2020, Fuller pleaded guilty to a two counts of filing false corporate and personal tax returns.
In 2013, 2014, 2015 and 2016, Fuller, who is the owner of Fuller Motor Home in Boylston, Mass, omitted more than $900,000 in income from his corporate tax returns by cashing checks written to the business and not reporting the cashed checks to his tax preparers. Fuller also failed to report any of this diverted income as income on his personal tax returns as he was required to do.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office prosecuted the case.
Billings man admits strangling partner on Crow Indian ReservationRead the Press Release
BILLINGS – A Billings man today admitted he strangled his partner during an argument at a residence on the Crow Indian Reservation and also was an habitual domestic assault offender, U.S. Attorney Kurt Alme said.
Leslie Charles Hogan, Jr., 37, pleaded guilty to assault of a dating partner by strangulation and to domestic assault by an habitual offender. Hogan faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release on each crime.
U.S. Magistrate Judge Timothy J. Cavan presided. Hogan was released on conditions pending further proceedings.
The prosecution said in court records that on May 17, 2017, the victim and Hogan, who were in a relationship, were in the victim's residence when the couple got into a verbal argument. The fight turned physical. Hogan pushed and shoved the victim then pushed her up against a wall and strangled her until she was almost unconscious. The assault stopped when another person in the residence struck and pushed Hogan to halt the strangulation.
The victim sought immediate medical attention and experienced pain in her neck and throat. The victim returned to the hospital three days later because she was having problems swallowing.
Hogan has two prior convictions for domestic assault.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI.
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Bay Point Man Charged and Detained on Charges of Distributing Child PornographyRead the Press Release
OAKLAND - Sergio Luiz Cruz Esparza was charged with distribution of child pornography in a criminal complaint, announced United States Attorney David L. Anderson and Homeland Security Investigations Special Agent in Charge Tatum King. Cruz Esparza appeared in federal court today in San Francisco for a detention hearing in the matter before the Honorable U.S. Magistrate Judge Sallie Kim, who detained Cruz Esparza pending trial.
According to an affidavit filed in connection with the complaint, Cruz Esparza, 22, of Bay Point, is alleged to have distributed images of child pornography using social media mobile applications. The affidavit alleges that at least one of the images depicted a minor female committing a sexual act on Cruz Esparza. The affidavit also describes that Cruz Esparza transmitted links to an online cloud storage site to other individuals, one of whom was a law enforcement agent acting in an undercover capacity. Those links led to videos depicting sexually explicit conduct by adult males inflicted on minor females as young as 4 years old.
Cruz Esparza is currently detained, and his next scheduled appearance is at 10:30 a.m on July 29, 2020, for a status conference and preliminary hearing before Magistrate Judge Kim.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Cruz Esparza faces maximum penalties of 20 years imprisonment with a minimum imprisonment term of 5 years, a life term of supervised release with a minimum supervised release term of 5 years, and a maximum fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jonathan U. Lee is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Jessica Gonzalez Rodriguez and Kathleen Turner. The prosecution is the result of an investigation by the Department of Homeland Security, Homeland Security Investigations, and the Silicon Valley Internet Crimes Against Children Task Force.
Bank Robber Sentenced to 216 Months' ImprisonmentRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that David Wilson Floyd, formerly of Michigan City, Indiana, was sentenced to serve 216 months’ imprisonment by U.S. District Judge Paul L. Maloney. Floyd pled guilty in March 2020 to armed bank robbery and attempted bank robbery. Upon release, Floyd will be supervised for 3 years.
On September 9, 2019, Floyd entered the New Buffalo Savings Bank, located in Three Oaks, Michigan, wearing a clear plastic mask. Floyd pointed a handgun at the teller and stated “Get your money out.” Floyd stole $11,344 U.S. currency and fled. On September 18, 2019, Floyd drove to the G.W. Jones Exchange Bank, located in Edwardsburg, Michigan, again wearing a mask and carrying a gun. Floyd attempted to open the door to the bank, but, because the bank closed at noon, the doors were locked. Employees of the bank reported the attempt.
The Federal Bureau of Investigation (FBI), working with local Indiana and Michigan authorities, investigated and determined Floyd committed the September 9, 2019, armed bank robbery, the September 18, 2019, attempted bank robbery, as well as six additional robberies of convenience stores and gas stations in northern Indiana and southwestern Michigan between June 2019 and September 2019. Floyd was ordered to pay restitution in the amount of $12,294.
“Mr. Floyd did not get much cash, but he did inflict a lot of terror on the employees,” said U.S. Attorney Birge. “And for that he earned the 18 years in prison he received. Crime does not pay in West Michigan.”
“Thanks to the great cooperative work of federal, state, local and Tribal law enforcement agencies, David Floyd is off the street and won’t pose a threat to our communities for years to come,” said Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan.
The case was investigated by the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Kristin M. Pinkston represented the United States.
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Baltimore Police Officer Pleads Guilty to Federal Charge of Possession of Child PornographyRead the Press Release
Baltimore, Maryland - James Robert Wissmann, IV, age 35, of Baltimore, Maryland, a police officer with the Baltimore City Police Department, pleaded guilty today to possession of child pornography. Baltimore Police Department officials suspended Wissmann on July 31, 2019, after a search at his residence.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, starting no later than July 2017, using fake names and fake e-mail addresses, Wissmann created accounts on a mobile application that allows users to join a “room” where they can message, video chat, watch videos and images, and share files, and used those accounts to distribute and receive files of child pornography and to discuss the sexual exploitation of children. The application monitored the activity on its platform and identified Wissmann’s accounts as sharing contraband files, shut down Wissmann’s accounts, and subsequently submitted reports to the National Center for Missing and Exploited Children (“NCMEC”). Each time Wissmann’s accounts were shut down, Wissmann created a new account, using fake names and e-mail addresses, and continued to share child pornography and discuss child exploitation.
In 2018 and 2019, Wissmann created at least seven separate accounts on the application after being banned based on trafficking in child pornography. On October 11, 2018, the application sent five reports to NCMEC relating to child exploitation activity in Wissmann’s account. All five reports contained images that depict naked prepubescent females.
As detailed in his plea agreement, Wissmann took a variety of steps to avoid detection by the online platforms and law enforcement. Those steps included the use of fake names and e-mail addresses when creating accounts; the purchase of a Virtual Private Network account (a service that lets a user access the web privately by routing the connection through a server and hiding the user’s online actions); the use of the Tor anonymity network (used to conceal a user’s location, usage, and identity); regularly deleting, reinstalling, and then deleting various applications; and by using a file-wiping utility to permanently delete files.
On July 31, 2019, investigators executed a search warrant at Wissmann’s residence and seized Wissmann’s laptop computer, removable digital media, and mobile phones, which he used to commit the offense. During a forensic examination of the seized items, investigators found images and videos of child pornography on Wissmann’s laptop, including images depicting prepubescent minors engaging in sexually explicit conduct.
As a result of his guilty plea, Wissmann will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Wissmann and the government have agreed that, if the Court accepts the plea agreement, Wissmann will be sentenced to at least four years in federal prison, followed by at least 10 years of supervised release. U.S. District Judge George L. Russell, III has scheduled sentencing for October 15, 2020 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Alleged Members of La Oficina de Envigado – a Criminal Organization that Provided Enforcement and Collection Services for Medellín Cartel – Arrested for Drug TraffickingRead the Press Release
BOSTON – Two Colombian men and two Massachusetts men have been arrested and charged in connection with organized crime in the Republic of Colombia.
Fabio de Jesus Yepes Sanchez, 54, and Mario Zapata Velez, 39, both of Medellín, were charged in indictments unsealed today with conspiracy to commit extortion, conspiracy to commit money laundering, conspiracy to make extortionate threats, interstate travel in aid of racketeering, collection of credit by extortionate means and conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Yepes and Zapata were arrested by Colombian authorities on Wednesday, July 15, 2020.
Miguel Colindres, 59, and Juan Pablo Ariasgil, 39, both of Lowell, were indicted today on conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Colindres and Ariasgil were previously charged by criminal complaint and arrested on July 15.
According to charging documents, Yepes and Zapata were members of La Oficina de Envigado (La Oficina), a criminal organization based in Medellín, Colombia. La Oficina originated in the 1980s when its members provided enforcement and collection services for the Medellín Cartel, including deceased Medellín Cartel leader Pablo Escobar. Today, La Oficina is allegedly involved in international narcotics trafficking, drug debt collection, money laundering, extortion and murder for hire.
It is alleged that Yepes and Zapata conspired to use threats to extort approximately $750,000 in drug debt from two cocaine traffickers based in Massachusetts. Yepes and Zapata also conspired with Colindres and Ariasgil to possess with intent to distribute and to distribute five kilograms or more of cocaine in Massachusetts. Colindres and Ariasgil also allegedly possessed with intent to distribute 500 grams or more of cocaine.
The operation, dubbed “Operation Týr,” was conducted by a multi-agency task force through 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 charges of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of extortion conspiracy and collection of extensions of credit by extortionate means each provide for a sentence up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of interstate travel in aid of racketeering provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of money laundering and money laundering conspiracy each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the property involved in the transaction, 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The Criminal Division’s Office of International Affairs of the Justice Department, Internal Revenue Service’s Criminal Investigations in Boston and the Government of Colombia provided critical assistance with the investigation.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
2nd Duquesne Man Charged with Illegal Possession of a Firearm as a FelonRead the Press Release
PITTSBURGH, PA - A resident of Duquesne, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms law, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Aaron Pirl, age 22, as the sole defendant.
According to the Indictment, Pirl was found to be in possession of a firearm after having previously been convicted of a felony.
The law provides for a maximum total sentence of 10 years in prison, a fine of not more than $250,000, 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.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
20 July 2020
Woodland Man Indicted for Fentanyl Overdose Death and Fentanyl Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — A Woodland resident has been charged by indictment with distribution of fentanyl resulting in an overdose death and with distributing fentanyl on two separate dates after the overdose death, U.S. Attorney McGregor W. Scott announced.
According to the indictment, Joshua Cabanillas, 20, distributed fentanyl that resulted in the overdose death of a person in Woodland in February 2020. Additionally, Sacramento residents Gregory Tabarez, 22, and Joseph Elijah Cuaron, 20, are charged by complaint with distributing fentanyl alongside Cabanillas.
The complaint alleges that Cabanillas was arrested on May 15, after meeting with Tabarez and Cuaron to distribute an additional 1,000 counterfeit blue “M30” pills containing fentanyl. The counterfeit pills are designed to look like authentic oxycodone hydrochloride 30 mg pills that could be obtained from a pharmacy. Unlike authentic pharmaceuticals, the counterfeit pills are pressed illicitly and actually contain fentanyl.
Today, the United States faces an unprecedented drug epidemic. The Centers for Disease Control estimates that more than 70,000 Americans died of drug overdoses in 2019. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. The Drug Enforcement Administration has reported that fentanyl-containing counterfeit pills continue to be associated with overdose deaths across the country.
This case is the product of an investigation by the Federal Bureau of Investigation; the Woodland Police Department; the Sacramento County Probation Department; the Sacramento County Sheriff's Department; the Sacramento Police Department; the Yolo County Sheriff’s Office, Coroner Section; the Yolo County District Attorney’s Office; the Yolo County Probation Department; Placer County Sheriff’s Office; the California Highway Patrol; the California Department of Corrections and Rehabilitation, Special Service Unit; and the California Department of Corrections and Rehabilitation, Division of Adult Parole Operations. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
Cabanillas, Tabarez and Cuaron are currently in custody. If convicted of the distribution of fentanyl resulting in death, Cabanillas faces a maximum statutory penalty mandatory minimum of 20 years in prison and a maximum of life in prison. If convicted of the conspiracy or distribution charges, Cabanillas, Tabarez and Cuaron face a maximum statutory penalty of 20 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Visiting Stanford University Researcher Charged with VISA FraudRead the Press Release
SAN FRANCISCO – Song Chen has been charged in a criminal complaint with visa fraud in connection with a scheme to lie about her status as an active member of the People’s Republic of China’s military forces while in the United States conducting research at Stanford University, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John L. Bennett. Song made her initial federal court appearance before U.S. Magistrate Judge Sallie Kim this morning to face the charge.
The allegations describing the crime appear in an affidavit supporting the complaint filed on July 17, 2020. According to the affidavit, Song, 38, a Chinese national, entered the United States on December 23, 2018, using a J-1 non-immigrant visa. Song obtained the J-1 visa, a document “for individuals approved to participate in work-and study-based exchange visitor programs,” with an application she submitted in November 2018. In that application, Song stated that she had served in the Chinese military only from September 1, 2000, through June 30, 2011. She further stated that her employer was “Xi Diaoyutai Hospital” located at “No. 30 Fucheng Road, Beijing, 100142.” Song described herself in her visa application as a neurologist who was coming to the U.S. to conduct research at Stanford University related to brain disease.
The affidavit alleges that these were lies, and that Song was a member of the People’s Liberation Army (PLA), the Chinese military, when she entered and while she was in the United States, and that the hospital she listed on her visa as her employer was a cover for her true employer, the PLA. Specifically, the affidavit identifies four research articles that she co-authored. These articles were identified on a resume that Song submitted to Stanford. The versions of the articles available via open sources on the Internet show her as affiliated with institutions subordinate to the PLA Air Force. Specifically, the articles list Song as affiliated with the Air Force General Hospital in Beijing and the Fourth Military Medical University (FMMU), a PLA Air Force university in Xi’an. In addition, as of July 13, 2020, a Chinese health care website listed Song as an attending physician of the Department of Neurology of the PLA Air Force General Hospital, a hospital that shared an address with the “Xi Diaoyutai Hospital” listed on her visa application. The listing allegedly included a photograph of Song wearing what appears to be a military uniform. Further, an article published in 2015 identifies Song as the doctor at the PLA Air Force hospital who performed the autopsy on the former chief physician of the MRI Department at the hospital.
Finally, according to the affidavit, a search of Song’s external hard drive, recovered pursuant to a court-authorized search warrant, found that, on June 21, 2020, Song had deleted a folder titled, in Chinese, “2018 Visiting School Important Information.” The search recovered deleted documents from this folder. The affidavit alleges that one of the recovered documents was a letter from Song to the Chinese Consulate in New York, which explained that she was extending her time in the United States for another year, and wrote that her stated employer, Beijing Xi Diaoyutai Hospital, is a false front, and that, as a result, she had obtained approval for her extension from the PLA Air Force and FMMU. The letter further allegedly explained that, as these Chinese military approval documents were classified, she could not transmit them online.
Song was charged with obtaining a visa by material false statements, in violation of 18 U.S.C. § 1546(a).
The complaint merely alleges that a crime has been committed, and Song, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, she faces a maximum statutory penalty of up to 10 years in prison and a fine of $250,000. In addition, the court may order additional terms of supervised release. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Song’s next appearance is scheduled for Tuesday, July 21, 2020, before Magistrate Judge Kim for further proceedings regarding detention.
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s Special Prosecutions Section and is the result of an investigation by the FBI.
Virginia Fraudster Pleads Guilty in U.S. District Court in Maryland to Federal Charges of Wire Fraud and Investment Adviser Fraud in Connection with a Scheme to Steal More Than $6 MillionRead the Press Release
Greenbelt, Maryland – Michael Barry Carter, age 47, of Potomac Falls, Virginia, pleaded guilty today to federal charges of wire fraud and investment adviser fraud, in connection with a scheme to steal more than $6 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“For over 12 years, Michael Carter perpetrated a brazen scheme that defrauded victim account holders whose investments he was supposed to protect,” said U.S. Attorney Robert K. Hur. “When his fraud was discovered, Carter repaid some victims by taking money from other victim accounts. The U.S. Attorney’s Office will do everything we can to ensure that justice is served by holding accountable financial advisers who defraud investors of their life savings.”
According to his guilty plea, from August 7, 2006 to April 29, 2011, and again from November 16, 2011 to July 29, 2019, Carter was employed by a financial institution and worked primarily out of the financial institution’s Tysons Corner, Virginia location. In 2012, Carter was promoted to financial adviser in the wealth management section of the financial institution and was registered to sell securities and act as an investment adviser in Maryland and Virginia, among other locations. Carter managed and had authority over multiple investment accounts maintained by Victims 1 through 5 with the financial institution, which contained a mix of assets including securities and cash deposits. As a financial adviser, Carter was required to manage the victim accounts in the best interests of his clients, consistent with their investment objectives, and not for his personal benefit.
As detailed in the statement of facts, from at least October 2007 to at least July 2019, Carter made numerous unauthorized transactions from the victim accounts for his personal benefit, defrauding Victims 1 through 5 of at least $5 million. To effect the unauthorized wire transfers, Carter caused the submission of an internal bank authorization form that falsely stated that Carter had received verbal client instructions from each victim authorizing the transfer at a specific date and time. Carter caused the wire transfers to be sent to his personal accounts and used the money to pay for his lifestyle expenses, including Carter’s mortgage, credit card bills, and country club membership fees.
Carter’s fraud was first discovered when Victim 1 and her adult daughter attempted to obtain a bridge loan from the financial institution to cover relocation expenses to an assisted living facility in Florida until the sale of Victim 1’s home in Columbia, Maryland, was completed. When they applied for the loan, Victim 1 and her daughter discovered that an $800,000 loan had already been obtained in Victim 1’s name, without Victim 1’s knowledge or permission. The financial institution determined that the disbursement of the loan proceeds went to Carter’s personal bank account and that Carter used his personal e-mail address in furtherance of the fraud. The financial institution then learned that Carter had transferred approximately $5 million in unauthorized funds associated with clients of the financial institution.
On July 29, 2019, Carter was fired from the financial institution. On August 2, 2019, during a call with employees from the financial institution, Carter admitted that he had defrauded the five victims over a period of years, that he had forged clients’ signatures on bank authorization forms, that he had created false financial statements to disguise his theft, and in some cases had mailed those financial statements. With respect to Victim 1, Carter further admitted that he met with the victim at her home and answered Victim 1’s phone in order to authorize the transactions, unbeknownst to Victim 1. Carter did this in order to overcome the financial institution’s multi-factor verification system required to execute the transactions.
According to the plea agreement, during the course of the scheme Carter made at least 53 unauthorized transfers from his clients’ accounts to his own accounts. In addition, Carter admitted that he embezzled over $50,000 from a non-profit sports organization located in Loudoun County, Virginia. In all, Carter stole at least $6,149,162.77. Prior to his offenses being detected, Carter caused $1,794,052.38 to be returned to the victims. After learning that his fraud had been discovered, in October 2019, Carter also repaid the non-profit organization for its loss. Of the total amount repaid, $1,118,318.52 was repaid through transfers Carter made from other victim accounts.
The net proceeds obtained by Carter was at least $4,355,110.39. As part of his plea agreement, Carter will be required to pay a money judgment in that amount.
Carter faces a maximum sentence of 20 years in federal prison for wire fraud and a maximum sentence of five years in federal prison for investment adviser fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 9, 2020 at 1:00 p.m.
United States Attorney Robert K. Hur commended the FBI for their work in the investigation and recognized the Securities and Exchange Commission, which has filed a related civil proceeding. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Jennifer L. Wine, who are prosecuting the criminal case.
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U.S. Attorney's Office in New Hampshire Launches Public Service Announcements to Combact Drug and Gun CrimeRead the Press Release
CONCORD – U.S. Attorney Scott W. Murray announced the launch of public service announcements primarily aimed at increasing awareness about drug trafficking and related gun crimes.
The opioid crisis has had a dramatic negative impact on New Hampshire. Several of the public service announcements solicit the public’s assistance in fighting back against drug traffickers. One unfortunate side effect of the opioid crisis is the increased number of incidents where individuals from New Hampshire have traded guns in order to obtain drugs. Drug traffickers actively solicit customers to obtain guns for them. Additionally, convicted felons, individuals convicted of domestic violence, and others who are prohibited from possessing guns often offer money or drugs to get New Hampshire residents to buy guns for them. All of this unlawful conduct presents a serious safety risk to the citizens of the Granite State. The U.S. Attorney’s Office has developed a variety of social media public service announcements in order to educate people about the consequences of these illegal activities.
“Drug trafficking and violent crime jeopardize the safety and security of the citizens of New Hampshire,” said U.S. Attorney Murray. “Armed drug dealers are a menace to everyone. Law enforcement officers are working to protect the community each day. With these public service announcements, we are seeking to raise awareness about these crimes and to solicit the public’s assistance in helping us to make the Granite State safer. A fully informed public is a powerful deterrent against the harm caused by drug traffickers.”
The public service announcements released by the U.S. Attorney’s Office include three 60- second videos and three 30-second videos, as well as three 15- second videos and five 6-second videos on various social media platforms. All of these announcements are available for download. These announcements serve several purposes, including:
• Increasing awareness about the dangers and consequences of exchanging guns for drugs;
• Educating and warning people about the criminal consequences of buying a gun for someone you don’t know or someone who cannot legally possess a gun;
• Addressing the opioid crisis in New Hampshire;
• Educating the public about the damage drug cartels are doing to New Hampshire;
• Sending a message to armed drug dealers that they are the number one prosecution priority for the U.S. Attorney.
Additionally, the audio messages and the messages on social media platforms aim to increase awareness of the dangers and consequences of exchanging guns for drugs and the criminal consequences of buying a gun for someone you don’t know or someone who cannot legally possess a gun.
For more information about the campaign and to see the public service announcements, please visit https://www.justice.gov/usao-nh/crimefreenh.
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U.S. Attorney's Office Partners with the FBI and AARP in North Carolina to Host Facebook Live Seminar About Online Romance Scams Targeting Older AdultsRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina, in partnership with the FBI and the AARP in North Carolina, hosted a virtual informational seminar via Facebook Live today, to discuss the rise of online romance
scams targeting older adults and to offer tips on how to avoid becoming a victim of fraud, announced U.S. Attorney Andrew Murray.
Due to the COVID-19 pandemic, older adults are increasingly turning to the internet to obtain information, stay in touch with loved ones, connect with friends on social media, and form new romantic relationships. Scammers are taking advantage of older Americans’ increased online presence to perpetuate romance scams and steal elder victims’ money and identities, and, even worse, turn older adults into unwitting “money mules.” A money mule is a person that uses an existing or new bank account to conduct wire transfers or other types of financial transactions at the request of a scammer. Typically, the funds the money mules receive and engage in transactions with are proceeds of fraudulent schemes and, in many instances, the account holders are not aware they are being exploited as money mules to carry out financial fraud.
During today’s livestream presentation, Assistant U.S. Attorney and Elder Fraud Coordinator for the Western District Maria Vento, and Supervisory Special Agent for the FBI Brian Cyprian provided an overview of romance scams, money mule schemes and identity theft, and shared useful tips on how to spot those types of scams and how to avoid becoming a victim of fraud. Here are some of the tips shared with the audience:
- Be mindful of what information you post and make public online, as scammers can use details shared on social media and dating sites to better understand and target you.
- If someone contacts you and wants to start a romantic relationship with you, research the person’s photo and profile using online searches to see if the image, name, or details have been used elsewhere.
- Go slowly and ask lots of questions.
- Beware if the individual seems too perfect or quickly asks you to leave a dating service or social media site to communicate directly on your own phone or through a third party app.
- Beware if the individual attempts to isolate you from friends and family or requests inappropriate photos or financial information that could later be used to extort you.
- Beware if the individual promises to meet in person, but always comes up with excuses as to why he or she can’t.
- Never send money to anyone you have only communicated with online or by phone.
- If an online prospect claims to be a United States citizen living or working in another country and asks you for help or money, refer him or her to the local U.S. Embassy or Consulate. If you want to send money, consider using a U.S. Department of State Office of Overseas Citizens Services (OCS) Trust.
- Do not use your personal bank account to transfer money or conduct financial transactions at the direction of someone you met online.
- Do not give out personal information via the phone, mail, or internet/email unless you initiated the contact and are certain you are dealing with a trusted organization or individual.
- Verify requests for personal information from any business or financial institution by contacting them using the main contact information on their official website.
- Do not open, respond to, or click on links contained within unsolicited emails.
- Use strong and different passwords to secure banking accounts, credit accounts, etc., and change passwords and check accounts routinely.
- Limit personal information shared publicly on social networking sites. Never post your full name, Social Security number, address, phone number, or account numbers in publicly accessible sites.
- Regularly obtain and check your credit reports from the three credit bureaus to ensure you recognize all accounts.
- Tell someone you trust if you have become a victim.
- If you suspect fraud or have fallen victim to an online scam report the fraud to the authorities and the dating website.
- Keep in mind that if you send money once, you’ll be a target for life.
- Remember, it’s not rude to say, “NO,” if someone approaches you online.
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
To report suspicious activity or if you’ve fallen victim to a scam, please call the Department of Justice’s National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), or online at www.IC3.gov.
For more information about the U.S. Attorney’s Office Elder Justice Initiative, please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative.
A recording of the seminar can be viewed at https://www.facebook.com/AARPNC/videos/vb.86880509778/291438361931498/?type=2&theater.
Two Individuals Indicted in July Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the July 2020 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
BILLY RAY FLYNN, age 65, of Stilwell, Oklahoma a/k/a Billy Ray Abbott
Aggravated Sexual Abuse In Indian Country
IncestThe Indictment alleges that from on or about January 31, 2020, in the Eastern District of Oklahoma, in Indian Country, the defendant, BILLY RAY FLYNN a/k/a Billy Ray Abbott, an Indian, did knowingly cause J.F. to engage in a sexual act as defined in Title 18, United States Code, Section 2246, to wit, penetration, however slight, of the vulva of J.F. by the penis, by the use of force against J.F., in violation of Title 18, United States Code, Sections 1153, 2241(a)(1) and 2246, punishable by not more than life imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that from on or about January 31, 2020, in the Eastern District of Oklahoma, in Indian Country, the defendant, BILLY RAY FLYNN a/k/a Billy Ray Abbott, an Indian, did fornicate with J.F., a person within the degrees of consanguinity within which marriages are by the laws of Oklahoma declared incestuous and void, in violation of Title 18, United States Code, Sections 1153 and 13; Title 21, Oklahoma Statutes, Section 885, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.
Special Assistant United States Attorney Courtney Jordan
DARIN DAWAYNE TATE, age 42, of Broken Bow, Oklahoma
Felon In Possession Of Ammunition
The Indictment alleges that on or about March 4, 2020, in the Eastern District of Oklahoma the defendant, DARIN DAWAYNE TATE, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Idabel Police Department and the Drug Enforcement Administration.
Assistant United States Attorney Ryan Heatherman
Three Alabama U.S. Attorneys Warn of Misleading Information and Fake Documents Regarding Face Mask ExemptionsRead the Press Release
Montgomery, Alabama – The three United States Attorneys in Alabama join together to warn citizens that cards and other documents bearing the Department of Justice seal and claiming that individuals are exempt from face mask requirements are fraudulent.
Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the Americans with Disabilities Act (ADA) due to the COVID-19 pandemic. Many of these notices include the use of the Department of Justice seal and the Civil Rights Division’s ADA Information Line phone number.
As stated in a previous alert, the Department of Justice did not issue and does not endorse them in any way. The public should not rely on the information contained in these postings.
The ADA does not provide a blanket exemption to people with disabilities from complying with legitimate safety requirements necessary for safe operations. The public can visit ADA.gov or call the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY) for more information.
The Department of Justice Will Host a Virtual Press Conference Announcing Criminal Charges in a National Security Cyber MatterRead the Press Release
WASHINGTON -- Assistant Attorney General for National Security John C. Demers, FBI Deputy Director David L. Bowdich, U.S. Attorney William D. Hyslop for the Eastern District of Washington, and Special Agent in Charge Ray P. Duda of the FBI Seattle Field Office will participate in a press conference announcing charges in a national security cyber matter.
Following the press conference, reporters may stay on the line for a background briefing on the indictment with a DOJ prosecutor.
WHEN: Tuesday, July 21, 2020, at 11:30 a.m. EST
WHERE: JUSTICE.GOV/LIVE
POOL CAMERA: CNN will be the POOL camera for the event.
NOTE: Members of the news media who wish to only listen/watch to the press conference are encouraged to view it online at www.justice.gov/live. News media who wish to participate in the questions and answers session in this virtual press conference must RSVP to www.justice.gov/mediarsvp with the email address of the person(s) attending the event. Participant dial-in information will only be provided to members of the news media that properly RSVP.
Any inquiries regarding logistics should be directed to [email protected].Tax Evasion Charge Added in Case of Southern California Man Accused of Health Care FraudRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Matthew Hogan Peters, 36, of Dana Point, California, has been charged by superseding information with healthcare fraud and tax evasion.
Peters, who owned and operated local compounding pharmacies, was previously indicted by a federal grand jury on December 19, 2019, on charges that he submitted dozens of fraudulent patient attestations in support of reimbursement claims to CVS Caremark, a national pharmacy benefit manager.
“Seeking to defraud pharmaceutical insurance providers is a crime that impacts all Americans in the form of increased health care costs. Mr. Peters added to Americans’ shared losses resulting from his crimes by further depriving the U.S. of millions in personal income taxes owed,” said U.S. Attorney Williams. “These charges demonstrate our commitment to stopping health care fraud in any form and preventing anyone from cheating the IRS.”
“When people infect our health care system with fraudulent schemes as Peters has done, everyone pays. The greed and the self-dealing of scams like this one impact not only the insurance companies and federal health programs like Medicare and Medicaid, but all Americans who depend on affordable health care options to take care of their families,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
“Mr. Peters made calculated decisions to divert health care fraud proceeds with the intent of evading his more than $5 million dollar tax liability. His actions hurt all Americans who pay their fair share of taxes,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell.
The new charges, filed today, accuse Peters of willfully evading the payment of approximately $5.49 million in federal income taxes from 2014 through 2017. Peters is accused of diverting millions of dollars in corporate revenue for various personal uses, including funding real estate projects in Belize and purchasing homes in Incline Village, Nevada, and San Carlos and Laguna Beach, California.
Peters owned and operated Professional Center 205 Pharmacy and Portland Professional Pharmacy, compounding pharmacies located in Southeast Portland. The pharmacies filled prescriptions for, among other things, compounded pain creams, a lucrative line of products. Private and federal healthcare insurance programs reimburse compounding pharmacies for such creams at rates far higher than comparable over-the-counter or bulk-manufactured medications.
CVS Caremark administered prescription drug benefits for many patients the pharmacies served. From April 1, 2014, through May 15, 2015, Peters sought reimbursements of more than $3.4 million from CVS Caremark, which in turn paid him nearly $1.69 million. In mid-2015, CVS Caremark audited Professional Center Pharmacy’s claims for reimbursement and identified approximately 185 claims that lacked records proving customers’ receipt of medications.
Facing possible suspension from CVS Caremark’s network, Peters submitted documentation to explain the discrepancies identified in the audit. This documentation included 41 written attestations, each purporting to bear the electronic signature of an individual patient, confirming that the patient received the prescription in question. Peters is alleged to have created each of their electronic signatures himself.
Peters will remain on pre-trial release pending a four-day jury trial scheduled to begin on September 8, 2020.
This case was investigated by the FBI, IRS Criminal Investigation, the Offices of Inspectors General for the United States Postal Service and the Departments of Labor and Health and Human Services, the United States Postal Inspection Service, and the Defense Criminal Investigative Service. It is being prosecuted by Ryan W. Bounds and Seth D. Uram, Assistant U.S. Attorneys, and Elizabeth Ballard Colgrove, Special Assistant U.S. Attorney, for the District of Oregon.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
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.
Statement by Attorney General William P. Barr on the Killing of Judge Salas’ Son and the Shooting of Her HusbandRead the Press Release
Attorney General William P. Barr has issued the following statement:
“On behalf of the entire Justice Department, I send my deepest condolences to Judge Salas and her family on the death of their son and wish her husband a swift and complete recovery. This kind of lawless, evil action carried out against a member of the federal judiciary will not be tolerated, and I have ordered the full resources of the FBI and U.S. Marshals Service to investigate the matter.”
Statement of Acting U.S. Attorney Audrey Strauss on the Resentencing of Sheldon SilverRead the Press Release
“Twice convicted by unanimous juries for abusing his powerful state office to enrich himself, Sheldon Silver will now finally report to prison to begin serving a sentence that can begin to repair the harm his conduct caused to the people of this District and to their trust in local government. I commend the career prosecutors and agents who have seen this case through two trials and two appeals, ensuring that Silver’s crimes did not go unpunished and proving once again that this Office and our law enforcement partners will never stop pursuing corruption, without fear or favor, at all levels of government.”
Statement from U.S. Attorney’s OfficeRead the Press Release
NEWARK, N.J. – The FBI has identified Roy Den Hollander as the primary subject in the attack that occurred at the home of the Honorable Esther Salas on July 19, 2020. Den Hollander is now deceased. The investigation remains ongoing. Individuals who believe they have information relevant to the investigation should contact FBI-Newark at 973-792-3000, press option 2.
Santa Clara Man Charged with Running Bogus Artificial Intelligence Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – A criminal complaint was unsealed today in federal court alleging that Shaukat Shamim fraudulently obtained millions of dollars in venture capital funding for an artificial intelligence company by making false and misleading statements about the company’s technology and its revenue, announced United States Attorney David L. Anderson and Federal Bureau Investigation Special Agent in Charge John L. Bennett. Shamim is charged in the complaint with one count of securities fraud and one count of wire fraud.
“Silicon Valley is a global leader when it comes to ingenuity and entrepreneurship. Fraud is neither ingenuity nor entrepreneurship. We are committed to protecting the Valley’s innovation leaders from fraudulent investment schemes,” said U.S. Attorney David L. Anderson.
“The FBI will not allow deceit, corporate greed, and federal criminal activity to run rampant in Silicon Valley," said FBI Special Agent in Charge John F. Bennett. "This scheme allegedly falsified revenue and faked clients to swindle investors of over $17 million."
According to the complaint, beginning in 2013, Shamim, 49, of Santa Clara, is alleged to have raised over $17 million in funds for his startup company, Youplus. To woo investors, Shamim lied about the number of clients who had purchased Youplus’ software, and about Youplus’ revenue. In particular, Shamim is alleged to have provided investors with a fake bank statement in August of 2019 showing that Youplus had over $600,000 in revenue from 35 different client companies, including Coca-Cola, Kraft, and Netflix, when the true bank statement showed only one client, providing $65,000 in revenue. The complaint also alleges that Shamim used investor funds on personal expenses, including purchases at luxury clothing, eyewear, and duty-free stores.
Shamim also allegedly claimed that Youplus had developed proprietary artificial intelligence software that could interpret video reviews posted by customers of particular products, enabling the companies behind those products to analyze how their brands were trending online. Shamim allegedly pitched Youplus’s software as the “world’s first Video Opinion Search engine,” telling investors that “similar to how Google is indexing the textual web by looking inside and indexing keywords, Youplus is using computer vision, audio, and text analysis to look inside videos” to understand market trends. According to the complaint, though, Youplus had not developed AI that could perform these functions. Instead, a review of the software and the company suggested that Youplus was paying workers through its corporate offices in India to watch videos and record their impressions. In other words, the market analysis Youplus was producing was the result of human intelligence, rather than AI software.
Shamim was served with a summons today in Santa Clara, ordering him to appear in federal court on Tuesday, July 21, 2020, in San Francisco.
A complaint merely alleges that crimes have been committed, and Shamim is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud under 18 U.S.C. § 1343 (wire fraud), Shamim faces a maximum sentence of 20 years’ imprisonment, a fine of $250,000, and restitution if appropriate. If convicted of securities fraud under 15 U.S.C. § 78j(b) and 78ff, and 17 C.F.R. § 240.10b-5, Shamim faces a maximum sentence of 20 years’ imprisonment, a fine of $5,000,000, and restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the Federal Bureau of Investigation. The United States Attorney’s Office and the Federal Bureau of Investigation also thank the San Francisco Regional Office of the Securities and Exchange Commission, which conducted a parallel investigation that was also announced today.