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17 July 2020
Summerville Man, Fourth Defendant to be Imprisoned for String of Armed Robberies, Sentenced to 12 YearsRead the Press Release
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Julius Hamilton Washington, 29, of Summerville, was sentenced to 12 years in federal prison after pleading guilty to his role in a series of armed robberies that culminated in a high speed chase and shots fired at South Carolina Highway Patrol Troopers.
Evidence presented to the court showed that Washington was one of four individuals indicted in 2018 for robbing multiple businesses and business employees at gunpoint. The four defendants conspired to commit multiple armed robberies of businesses, including a Dollar General Store in Awendaw, a Verizon Store in Summerville, and a Verizon Store in Waxhaw, North Carolina. The string of robberies ended shortly after the four robbed the Verizon Store in Waxhaw on February 10, 2017. Like in other robberies, the four held the store employee at gunpoint while they stole cell phones and electronic devices from the store’s safe. Immediately after the robbery, the defendants were tracked from North Carolina into South Carolina, where South Carolina Highway Patrol Troopers located their car and attempted to stop them. The defendants did not stop, and instead fled at high speeds and fired shots at the pursuing Troopers. No Troopers were hit by the shots, and the pursing Troopers were eventually able to push the defendants’ car into a median where it crashed, and all four defendants fled.
Investigators were eventually able to identify each defendant and determine their involvement in the crimes. Washington is the fourth and final defendant to be sentenced. Co-defendant D’Angelo Antonio Coakley, 30, of Mount Pleasant, was sentenced to 24 years; co-defendant Malik Juwan Gadist, 23, of Mount Pleasant, was sentenced to 10 years imprisonment; and co-defendant Paul Anthony Walker, 24, of Goose Creek was sentenced to 10 years imprisonment.
United States District Judge David C. Norton sentenced Washington to 144 months, to be followed by a five-year term of court-ordered supervision. The sentencing hearing was conducted virtually, under the federal CARES Act, so that the parties did not appear in the Courtroom.
The case was investigated by the Federal Bureau of Investigation, Charleston County Sheriff’s Office, Dorchester County Sheriff’s Office, Richland County Sheriff’s Department, South Carolina Highway Patrol, South Carolina Law Enforcement Division, and the Waxhaw, North Carolina, Police Department. Assistant United States Attorney Nathan Williams prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Statement by Department of Justice Spokesperson Kerri Kupec on the Execution of Dustin Lee HonkenRead the Press Release
Department of Justice Spokesperson Kerri Kupec has issued the following statement:
“Today, Dustin Lee Honken was executed at USP Terre Haute in accordance with the death sentence imposed by a federal district court in 2004. Honken was pronounced dead at 4:36 p.m. EDT by the Vigo County Coroner.
In 1993, Honken, a meth kingpin, kidnapped, fatally shot, and buried Lori Duncan, a single, working mother, Duncan’s two young daughters — 10-year-old Kandi and 6-year-old Amber — and Greg Nicholson, a government informant who testified against Honken on federal drug trafficking charges. Honken also murdered Terry DeGeus, who Honken thought might also testify against him, by beating him with a bat and shooting him. On October 14, 2004, a jury in the U.S. District Court for the Northern District of Iowa found Honken guilty of numerous federal offenses, including five counts of continuing criminal enterprise murder, and he was sentenced to death.
Nearly three decades after Honken coldly ended the lives of five people, including two young girls, all in an effort to protect himself and his criminal enterprise, he has finally faced justice. The death penalty has been upheld by the federal courts, supported on a bipartisan basis by Presidents and members of Congress, and approved by Attorneys General under both Democratic and Republican administrations as the appropriate sentence for the most egregious federal crimes. Today that just punishment has been carried out.”
State Contractor Charged in $2 million Unemployment Fraud SchemeRead the Press Release
A Detroit woman was charged in a criminal complaint for her alleged role in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service, Richard Sheehan, Acting Postal Inspector in Charge of the Detroit Division, Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Special Agent in Charge Sarah Kull, Internal Revenue Service-Criminal Investigation and Jeffrey Frost, Special Fraud Advisor, Michigan Dept. of Labor and Economic Opportunity, Unemployment Insurance Agency.
Charged is Brandi Hawkins, 39.
According to the complaint, Brandi Hawkins was a contract employee for the State of Michigan Unemployment Insurance Agency. Her duties included reviewing, processing and verifying the legitimacy of unemployment insurance claims.
Beginning in April, 2020, it is alleged that Hawkins used her insider access to fraudulently release payment on hundreds of fraudulent claims. Hawkins actions resulted in the fraudulent disbursement of over $2,000,000 of federal and state funds intended for unemployment assistance during the pandemic. Over $200,000 in cash was seized from her residence during a search warrant. Hawkins is alleged to have used proceeds from her crimes to purchase high-end handbags and other luxury goods.
”Brandi Hawkins is charged with exploiting the current pandemic to defraud the State of Michigan and United States for her own personal gain. These are serious allegations, and my office is committed to prosecuting any person who attempts to use the Covid-19 crisis to defraud the people of Michigan,” stated US Attorney Matthew Schneider.
“The U.S. Secret Service is currently focused on criminals attempting to exploit the American people during these unprecedented times of record unemployment due to the pandemic. It is especially egregious when someone in a position of trust, working for an agency created to assist the residents of the State of Michigan, takes advantage of those during their time of need. We will continue to work with our federal and state partners to bring these perpetrators to justice”, said Douglas Zloto, Special Agent in Charge, U.S. Secret Service - Detroit Field Office.
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“Brandi Hawkins’ alleged actions are incredibly selfish and without regard for her fellow Michiganders in dire need of financial assistance,” said Sarah Kull, IRS Criminal Investigation Special Agent in Charge, Detroit Field Office. “IRS-CI will not hesitate to thoroughly investigate any COVID19 related fraud and bring those offenders to justice.”
Richard Sheehan, Acting Postal Inspector in Charge of the Detroit Division said, “This investigation was an excellent example of a partnership between federal law enforcement agencies, working together to bring down this fraud conspiracy. I fully commend the hard work and countless hours put forth by all of the agencies involved, which resulted in bringing Brandi Hawkins to justice.”
“We appreciate U.S. Attorney Schneider‘s quick action to bring this case to justice. The Unemployment Insurance Agency will continue to work closely with state and federal partners to identify unemployment fraud that can be quickly turned over to law enforcement for prosecution,” stated Jeffrey Frost, Special Fraud Advisor, Michigan Dept. of Labor and Economic Opportunity, Unemployment Insurance Agency.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
South Bend Man Sentenced to 100 Months in PrisonRead the Press Release
SOUTH BEND – Marc Gutierrez, age 32, of South Bend, Indiana was sentenced today by United States District Court Judge Damon R. Leichty upon his guilty plea to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Mr. Gutierrez was sentenced to 100 months in prison followed by 2 years of supervised release.
According to documents filed in this case, in July 2019 a search warrant was obtained to search the residence in South Bend where Mr. Gutierrez was living. Mr. Gutierrez was located at another address in South Bend and when interviewed admitted to being a former Latin King, having felony convictions in Illinois and Texas and distributing large amounts of methamphetamine over the prior months. He further admitted the location of the firearms, two 9mm and one rifle, found at his residence along with handling and shooting them.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive Project Disarm Task Force and the Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorney Joel R. Gabrielse.
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Providence Man Indicted for Trafficking Crystal Meth, Crack CocaineRead the Press Release
PROVIDENCE – A Providence man arrested on federal drug trafficking charges by members of the FBI Safe Street Task Force while he was on state probation, having been previously convicted in Rhode Island state court and incarcerated on unrelated drug trafficking charges, was indicted by a federal grand jury today on charges of trafficking crystal methamphetamine (meth) and crack cocaine.
Casimiro Pereira, 28, was arrested during an investigation into his alleged drug trafficking activities during which time it is alleged that on at least five occasions, while under law enforcement surveillance, Pereira delivered varying amounts of crystal meth and crack cocaine in exchange for cash.
It is alleged that on July 25 and on August 15, 2019, Pereira sold approximately 20 grams of crystal meth for $360, and that on at least three occasions between October 1, 2019, and January 28, 2020, he allegedly delivered between approximately 1.45 and 7 grams of crack cocaine for between $100 and $300. Each alleged transaction was monitored by members of the FBI Safe Streets Task Force and the drugs quickly seized by members of law enforcement.
On January 31, 2020, a federal court-authorized search of Pereira’s residence resulted in the seizure of approximately 136 grams of crystal meth and 8 grams of crack cocaine, and various items used in the preparation, packaging, and distribution of crystal meth and crack cocaine.
A federal grand jury today returned a seven-count indictment charging Pereira with possession with intent to distribute 50 grams or more of methamphetamine, two counts of distribution of 5 grams or more of methamphetamine, three counts of distribution of cocaine base, and one count of possession of cocaine base with the intent to distribute.
Pereira’s indictment is announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Christine D. Lowell and Sandra R. Hebert.
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Previously convicted sex offender from Roswell, New Mexico faces federal charges in New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Anthony Gilbert Thompson, 31, of Roswell, New Mexico, appeared in federal court in Albuquerque on July 13 for an initial appearance on a criminal complaint charging him with failure to register as a sex offender.
According to the criminal complaint, Thompson was previously convicted in 2009 of possession of child pornography and again in 2012 for the same offense. Thompson was allegedly finishing his second term of imprisonment in a residential reentry center in Las Vegas, Nevada, when he escaped the facility on Feb 6. He was later found and arrested in Roswell, New Mexico, by deputies of the U.S. Marshals on June 18. Thompson allegedly had not notified authorities in Nevada or in New Mexico that he would be residing or working in New Mexico, in violation of the Sex Offender Registration and Notification Act.
Thompson is currently in custody pending trial after a detention hearing on July 15. He faces up to 10 years in prison. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
The United States Marshal Service, FBI, and Roswell Police Department investigated this case. Assistant U.S. Attorney Matilda McCarthy Villalobos is prosecuting the case.
Presidential Task Force on Missing and Murdered American Indians and Alaska Natives Announces Virtual ConsultationsRead the Press Release
WASHINGTON – The Presidential Task Force on Missing and Murdered American Indians and Alaska Natives announced 12 Tribal consultations to occur virtually across the United States in the coming months.
American Indians and Alaska Natives experience disproportionately high rates of violence. President Trump has called the crisis of missing and murdered Native Americans “sobering and heartbreaking.”
The Presidential Task Force on Missing and Murdered American Indians and Alaska Natives, also known as Operation Lady Justice, announces the upcoming series of Tribal consultations under Executive Order 13898. The Executive Order requires the Task Force to “conduct appropriate consultations with Tribal governments on the scope and nature of the issues regarding missing and murdered American Indians and Alaska Natives.” While the Task Force had plans in place for a robust schedule of consultations and listening sessions in various locations in Indian country and elsewhere beginning in March, postponement of those sessions was required by the current public health crisis. Therefore, the Task Force has established a series of Tribal consultations to be held virtually. The sessions are regional, based on Bureau of Indian Affairs regions. The schedule, link to register, Dear Tribal Leader letter and framing paper are available on the Operation Lady Justice website, which can be found at OperationLadyJustice.usdoj.gov.
Confirmed Dates and Times
August 17th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Eastern Region – Virtual Consultation via WebEx.
August 19th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Midwest Region – Virtual Consultation via WebEx.
August 21st, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Southern Plains and Eastern Oklahoma Regions – Virtual Consultation via WebEx.
August 25th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Great Plains and Rocky Mountain Regions – Virtual Consultation via WebEx.
August 27th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Southwest Region – Virtual Consultation via WebEx.
August 31st, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Northwest Region – Virtual Consultation via WebEx.
September 2nd, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Western and Navajo Regions – Virtual Consultation via WebEx.
September 4th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Pacific Region First session – Virtual Consultation via WebEx.
September 8th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Pacific Region Second Session – Virtual Consultation via WebEx.
September 10th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Alaska Region First Session – Virtual Consultation via WebEx.
September 14th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Alaska Region Second Session – Virtual Consultation via WebEx.
September 17th, 1:30 p.m. – 5:00 p.m. Eastern
- Final session for any leader who could not make their scheduled Regional Session via WebEx.
The members of the Task Force are:
- Katharine (Katie) Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs, designee for the Attorney General;
- Tara Sweeney, Assistant Secretary for Indian Affairs, designee for the Secretary of the Interior;
- Terry Wade, Executive Assistant Director, Criminal, Cyber, Response, and Services Branch, Federal Bureau of Investigation;
- Laura Rogers, Acting Director, Office on Violence Against Women;
- Charles (Charlie) Addington, Deputy Bureau Director, Bureau of Indian Affairs, Office of Justice Services;
- Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee; and
- Jean (Jeannie) Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans, Department of Health and Human Services.
Marcia Good of the Department of Justice serves as the Executive Director of the Task Force. The Task Force will present a progress report to the President by Nov. 26, 2020, and a final report detailing its activities and accomplishments by Nov. 26, 2021.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the Department of Justice at www.Justice.gov/Celebrating150Years. 2020 also marks 171st anniversary of the Department of the Interior. Learn more about the history of DOI at www.doi.gov/history/.
Peshawbestown Resident Found Guilty of Drug Distribution, Assault, Contempt, and, Along with A Cohort, Conspiracy to Tamper with A WitnessRead the Press Release
GRAND RAPIDS, MICHIGAN — A federal jury found Melvin James Harris, 46, of Peshawbestown, Michigan, and Vanessa Louis Hunter, 45, of Rockford, Illinois, guilty of conspiring to tamper with a witness in a federal trial. A third member of the conspiracy, Corey John Raphael, pled guilty to conspiracy to witness tamper earlier this year. The jury also convicted Harris of distributing cocaine, assaulting a federal officer, contempt of court, and witness tampering. Harris faces up to life in federal prison, and Hunter faces up to 20 years.
The evidence at trial showed that on August 14, 2019, Harris sold cocaine to an individual who was assisting police with narcotics investigations. Harris chose the location for the sale – a spot within the Grand Traverse Band of Ottawa and Chippewa Indians’ community, commonly known as Peshawbestown. Four days later, Harris assaulted a federal officer who was attempting arrest him.
In September 2019, Harris was charged in federal court with distributing cocaine and assaulting an officer. After he learned the identity of the person who had assisted police with the narcotics investigation, Harris conspired with Hunter, Raphael, and others to tamper with that witness, in an effort to discourage the witness from testifying against him. Harris ultimately succeeded in contacting the witness through intermediaries and asked the witness not to go to court. Harris also disseminated the witness’s name and other personal information in violation of a court order. He used the jail’s phone system to do so, and he directed his co-conspirators and associates to further disseminate the information through Facebook and other means. Additional charges against Harris, Hunter, and Raphael soon followed.
"This verdict sends a clear message to those who would try to subvert our justice system by violating court orders and intimidating witnesses," said U.S. Attorney Andrew Birge.
This case was jointly investigated by the Traverse Narcotics Team, Drug Enforcement Administration, Grand Traverse Band Tribal Police Department, Leelanau County Sheriff’s Office, and Michigan State Police.
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Oxford Man Indicted by Federal Grand Jury on Gun and Drug ChargesRead the Press Release
GREENVILLE, N.C. – A federal grand jury returned an indictment today charging an Oxford man with illegally possessing a firearm and crack distribution.
According to the indictment, Connell Clayton Lester, 55, is charged with possessing a firearm while subject to a domestic violence protective order, possessing a firearm by a convicted felon, and possession with intent to distribute and distribution of cocaine base (crack).
According to the indictment, on March 5, 2020, Lester, a convicted felon, possessed a Hi-Point 9mm handgun while subject to a domestic violence protective order from New York. It is alleged that the order restrained Lester from harassing, stalking, assaulting, or threatening an intimate partner and prohibited him from possessing a firearm. Additionally, the indictment alleges that Lester possessed with the intent to distribute crack cocaine and distributed crack cocaine. If convicted, he faces up to twenty years imprisonment for the drug charge and ten years for the firearm count.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Franklin County Sheriff’s Office are investigating the case and Assistant U.S. Attorney Robert J. Dodson is prosecuting the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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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.
Opium Smuggler Sentenced to 42 Months' ImprisonmentRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Andrew Birge announced that Abdolnasser Mahmoudikanesbi, formerly of Gatineau, Quebec, was sentenced today to serve 42 months’ imprisonment by Chief U.S. District Judge Robert J. Jonker. Mahmoudikanesbi pled guilty in February 2020 to possession with intent to distribute opium. Upon release, Mahmoudikanesbi will be supervised for 3 years.
On December 7, 2019, Mahmoudikanesbi crossed into the United States at Sault Ste. Marie, where he encountered Customs and Border Protection (CBP). Mahmoudikanesbi told CBP that he was transporting towels, but an x-ray of his rental truck revealed items in the cargo area that were inconsistent with towels. Inside the vehicle, investigators discovered approximately 100 kilograms of unrefined opium paste.
Homeland Security Investigations (HSI), working with Canadian authorities, then took over the investigation. HSI determined the opium had come from Pakistan via an international shipping container with a false bottom. After the shipping container made it to the Port of Montreal, Mahmoudikanesbi and an associate cut the false bottom out of the container and moved the drugs to a rented warehouse in Montreal. Mahmoudikanesbi then had the opium put on a rental truck, which he drove across Ontario and into the United States.
“Trafficking illegal narcotics across international borders is a quintessential federal concern and federal law enforcement remains ever vigilant at our borders, whether at the southwest border or the bridge at Sault Ste. Marie,” commented U.S. Attorney Birge.
“HSI’s core mission is to prosecute cross border criminal activity and bring to bear its unique investigative authorities and international resources,” said Vance Callender, special agent in charge of HSI Detroit. “This case in particular and by its very nature, stretches across the globe and impacts several countries. Global criminal networks attempt to exploit international borders for profit daily. These types of investigations are some of the most complex known to law enforcement.”
“CBP officers are constantly on the lookout for smugglers and criminals attempting to cross our borders,” said Port Director Patrick Wilson. “Mr. Mahmoudikanesbi’s sentencing today demonstrates the important relationships we have with our federal law enforcement partners in seeking justice.”
The case was investigated by HSI, CBP, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorneys Theodore J. Greeley and Kristin M. Pinkston represented the United States.
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Operation Cookout: Eight Plead Guilty to Heroin and Fentanyl Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Eight individuals pleaded guilty this week for their respective roles in a conspiracy to distribute and possess with intent to distribute large amounts of heroin, fentanyl, cocaine, and cocaine base in Hampton Roads.
In August 2019, over 120 law enforcement officers from 30 law enforcement agencies in Virginia, North Carolina and Texas executed a major operation that resulted in 35 defendants being arrested for their respective roles in the conspiracy, along with the seizure of 24 firearms, 30 kilograms of fentanyl, 30 kilograms of heroin, 5 kilograms of cocaine, and over $700,000 in cash.
To date, 46 defendants have been charged in this case. Of those, 38 have admitted their criminal conduct and pleaded guilty. Eight defendants are currently scheduled for trial.
Below is a list of the defendants who pleaded guilty this week:
Name, Age
Hometown
Charges
David Brandon Porter, 30
Hampton
Conspiracy to distribute and PWID 280 grams + cocaine base and 500 grams + cocaine
Russell Patrick Johnson, 50
Suffolk
Conspiracy to distribute and PWID 1 kg + heroin, 400 grams + fentanyl, and 500 grams + cocaine
April Loredo, 29
Newport News
Use of a communication facility in furtherance of drug trafficking
Iban Barreto Hernandez, 25
Riverside, California
Conspiracy to distribute and PWID 5 kg + cocaine and 1 kg + heroin
Carmen Suhey Miranda, 42
Newport News
Conspiracy to distribute and PWID 100 grams + heroin and cocaine
Felix Omar Rodriguez-Roig, 40
Newport News
Conspiracy to distribute and PWID 100 grams + heroin and cocaine
Lupe Camberos, 37
Portland, Oregon
Use of a communication facility in furtherance of drug trafficking
Kerry Christian, 54
Hampton
Conspiracy to distribute and PWID 500 grams + cocaine
According to the 88-count indictment, which was returned by a federal grand jury in February, the 46 defendants were involved in an alleged large-scale drug trafficking conspiracy that began in March 2016. The co-conspirators participated in various criminal acts throughout the alleged conspiracy, including armed drug distribution, while assuming and carrying out different roles such as a supplier, packager, transporter, financier, distributor, and facilitator throughout the life of the alleged drug trafficking ring.
The indictment alleges that the defendants and unindicted co-conspirators would purchase and receive narcotics from suppliers in Mexico, California, and New York, and would arrange for heroin, fentanyl, cocaine, and cocaine base to be transported to and within the Eastern District of Virginia using hidden traps in privately owned vehicles, couriers, and semi-trailers, trucks, and recreational vehicles.
It was further part of the conspiracy that the defendants and co-conspirators would utilize various locations throughout Hampton Roads to possess and prepare for distribution heroin, fentanyl, cocaine, and cocaine base, and to meet and discuss previous and future narcotics transactions. These various locations include houses and parking lots of businesses located in Newport News, Hampton, Suffolk, Carrolton, Yorktown, Lawrenceville, South Hill, and Richmond.
According to the indictment, throughout the life of the drug trafficking ring, the co-conspirators used at least 94 different telecommunication devices such as pre-paid cell phones, Facebook, and encrypted communications apps like FaceTime and WhatsApp to conduct the day-to-day operations, including negotiating prices, and arranging locations for purchasing and selling the drugs. Some of co-conspirators changed devices on a regular basis in an effort to thwart law enforcement surveillance. Typically, the cell phone numbers that were used were in pre-paid cell phones that did not need a subscriber’s name.
The 88-count indictment alleges various offenses, including conspiracy to distribute and possess with intent to distribute cocaine, heroin, cocaine base, and fentanyl; conspiracy to launder money; felon in possession of a firearm; maintaining a drug-involved premises; use of a communication facility in furtherance of drug trafficking; interstate travel in aid of racketeering enterprises; and illegal re-entry by a previously deported or removed alien.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Cookout. 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.
The High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 28 HIDTAs, which include approximately 18 percent of all counties in the United States and 66 percent of the U.S. population.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington D.C., Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Colonel Gary T. Settle, Superintendent of Virginia State Police, Steve R. Drew, Chief of Newport News Police, Terry L. Sult, Chief of Hampton Police Division, Col. K.L. Wright, Chief of Chesapeake Police, and Hampton Commonwealth's Attorney Anton A. Bell, made the announcement. Assistant U.S. Attorneys Kevin P. Hudson and Peter G. Osyf, and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
The following law enforcement agencies provided significant assistance during the investigation and arrest operation: U.S. Marshals, Newport News Sheriff’s Office, Chesapeake Sheriff’s Office, York-Poquoson Sheriff’s Office, Tennessee Highway Patrol, Amarillo Police, and Brunswick County Sheriff’s Office. Approximately 30 law enforcement agencies assisted in the arrest operation in Virginia, North Carolina and Texas.
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. 4:19-cr-47.
Omaha Man Sentenced for Lincoln Jewelry Store RobberyRead the Press Release
United States Attorney Joe Kelly announced that Chief U.S. District Judge John M. Gerrard sentenced Joshua Z. Dortch, 29, today to 14 ½ years in federal prison to be followed by 5 years of supervised release. Dortch previously pleaded guilty to interference with commerce by robbery and brandishing a firearm during that robbery.
On March 23, 2018, at approximately 1:14 p.m., two armed men with gloves and masks entered the Sartor Hamann Jewelry Store located at 2900 Pine Lake Road, Lincoln, Nebraska, and demanded people in the store to not move and to be quiet. One of the men smashed a watch case and the robbers left the store with 25 Rolex watches. One of the watches was equipped with a GPS tracker. Officers were able to locate Dortch and his co-defendant, Anwar Hunt, the watches and other evidence tying them to the robbery within a short time.
Hunt was sentenced previously to 13 ½ years’ imprisonment.
The Lincoln Police Department and the FBI Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives, are responsible for the investigation of the robbery.
Obion County Man Sentenced to Federal Prison for Firearms OffenseRead the Press Release
Jackson, TN – Edwin Joseph Hogg Jr., 55, has been sentenced to 14 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to the information presented in court, on January 23, 2019, law enforcement conducted a traffic stop on the defendant’s vehicle for a stop sign violation. Officers observed a Ruger 10-22 semi-automatic rifle in plain view and were aware of Hogg as being a convicted felon.
During the search of Hogg’s person and vehicle, officers seized the firearm and approximately 1.3 grams of methamphetamine from his left coat pocket. Also, further investigation through the National Crime Information Center (NCIC) confirmed that on September 5, 2008, Hogg was convicted of manufacturing methamphetamine, and on December 5, 2016 he was convicted of unlawful possession of a firearm by a convicted felon in Obion County.
Hogg was arrested and later charged in federal court with one count of being a convicted felon-in-possession of a firearm. He pled guilty on January 10, 2020.
On June 19, 2020, United States District Court Chief Judge S. Thomas Anderson sentenced Hogg to 14 months imprisonment followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Clearly, Hogg did not learn a lesson from his prior state convictions. Now, he will be rightly punished for his recidivism and incapacitated in federal prison, where there is no sentence discount or sanctuary of parole. We thank and commend the Obion County Sheriff’s Office for their outstanding work in this important case."
This case was investigated by the Obion County Sheriff’s Office.
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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NDTX Round-Up: July 6-12Read the Press Release
SENTENCING – BRIAN MODESTER
On July 6, Brian Modester, 36, was sentenced to 3 years in federal prison for possession of a firearm in furtherance of drug trafficking. Dallas Police conducted a traffic stop of a vehicle in which Modester was riding as a passenger. Police searched the vehicle and discovered Modester with $12,348 in drug proceeds. Officers also searched the residence that Modester had left and recovered a loaded firearm, multiple bags of marijuana, and drug paraphernalia. This case was investigated by the Homeland Security Investigations. Assistant U.S. Attorney Phelesa Guy is prosecuting this case.
GUILTY PLEA – LARRY DONELL BOOKER
On July 7, Larry Donell Booker, 60, pled guilty to conspiracy to possess with intent to distribute Hydrocodone. Booker met a confidential government source to arrange a transaction of Hydrocodone. Two days later, Booker sold the government source 1,000 pills of suspected Hydrodone in exchange for cash. Booker faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Myria Boehm is prosecuting this case.
GUILTY PLEA – NOLBERTO VASQUEZ
On July 7, Nolberto Vasquez, 30, pled guilty to conspiracy to commit bank fraud. Vasquez executed a scheme to fraudulently obtain credit cards and lines of credit from financial institutions using victims' personal identifying information to open credit cards at retain stores which would then be used to make unauthorized purchases. Vasquez faces up to 30 years in federal prison for his crimes. This case was investigated by the United States Secrete Service. Assistant U.S. Attorney Damien Diggs is prosecuting this case.
GUILTY PLEA – TEMIOPE AMINAT FOLORUNSHO
On July 7, Temitope Aminat Folorunsho, 33, pled guilty to conspiracy to commit wire fraud, two counts of wire fraud, conspiracy to commit money laundering, two counts of laundering monetary instruments, and two counts of use of a false passport. Folorunsho and her co-conspirators used email phishing scams, social engineering, and spoofing email addresses in order to cause victims to wire and electronically transfer funds to fraudulently opened bank accounts. Prior to Folorunsho’s guilty plea, other co-defendants pled guilty as well, with the most recent being Opeyemi Abidemi Adeoso in June 2020 who pled guility to 33 counts. This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and Department of State’s Diplomatic Security Service. Assistant U.S. Attorney Tiffany Eggers is prosecuting this case.
SENTENCING – ARMANDO SILVA
On July 9, Armando Silva, 26, was sentenced to 105 months in federal prison for possession with the intent to distribute methamphetamine. As Samson Park Police approached Silva’s vehicle during a traffic offense, officers noticed a marijuana odor emitting from the car. Officers conducted a search of vehicle and recovered a handgun, Xanax pills, and over one-ounce of methamphetamine. This case was investigated by the Homeland Security Investigations. Assistant U.S. Attorney Levi Thomas is prosecuting this case.
Montana Pharmacy Settles Controlled Substances Act Violations for $125,000Read the Press Release
HELENA—A pharmacy in Ennis, Montana settled potential violations of the Controlled Substances Act by agreeing to several substantive changes to its practices and paying a fine of $125,000, U.S. Attorney Kurt Alme said.
The Ennis Pharmacy and Yesterday’s Soda Fountain, Inc., entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Montana on July 7, 2020. The terms of the settlement include that Ennis Pharmacy shall check the criminal history of any potential employee handling controlled substances, and only a registered pharmacist may order Schedule II controlled substances for the pharmacy. In addition, Ennis Pharmacy will make 11 monthly payments for a total fine of $125,000.
“Opioid abuse causes tremendous harm in our communities. It is critical that all pharmacies and other providers follow the rules to be sure that controlled substances are not misused,” said U.S. Attorney Kurt Alme. “We take very seriously any violations of the Controlled Substances Act, particularly those which could lead to diversion of opioids.”
The settlement agreement recites that in April, 2019, Drug Enforcement Administration investigators conducted a routine inspection of Ennis Pharmacy. During that inspection and subsequent investigation, they discovered numerous potential civil violations of the Controlled Substances Act, including:
- Failing to report at least seven thefts or losses of controlled substances to DEA,
- Failing to take a proper inventory of its stock of controlled substances,
- Allowing pharmacy staff to use the owner’s credentials to order controlled substances, and
- Allowing staff to make manual adjustments to inventory records without proper explanation.
This civil settlement agreement is not an admission of any liability by Ennis Pharmacy, nor a concession by the United States that its potential claims were not well-founded.
Assistant U.S. Attorney Michael A. Kakuk and former Assistant U.S. Attorney Megan Dishong represented the United States in this matter, which was investigated by the Drug Enforcement Administration.
Monroe County Man Guilty of Possessing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Brownlee, age 42, of Long Pond, Pennsylvania, pleaded guilty on July 16, 2020, before U.S. District Court Judge Malachy E. Mannion, to possessing child pornography
According to United States Attorney David J. Freed, Brownlee admitted that he used a laptop computer to possess and access images of child pornography. Between August 2017 and April 10, 2018, in Monroe County. Brownlee possessed the child pornography while serving a term of supervised release for a previous conviction for receipt and distribution of child pornography.
Judge Mannion ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Federal Bureau of Investigation and the U.S. Probation Office. Assistant United States Attorney Francis P. Sempa is prosecuting the 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty under federal law for the offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years’ imprisonment because of Brownlee’s prior conviction for a child pornography crime. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Million Dollar Drug Money Launderer Sentenced to 18 Years in Federal PrisonRead the Press Release
KANSAS CITY, KAN. – A Missouri man who admitted to conspiring to launder more than $1 million in drug proceeds was sentenced Thursday to 216 months in federal prison, U.S. Attorney Stephen McAllister said.
Juan Duarte-Tello, 47, Kansas City, Mo., pleaded guilty to one count of conspiracy to possess and distribute methamphetamine and one count of conspiracy to commit money laundering. In his plea, Duarte-Tello admitted he personally handled more than a $1 million in drug trafficking proceeds for a drug trafficking organization that was distributing methamphetamine in the greater Kansas City metropolitan area. During the conspiracy, investigators had Duarte-Tello under electronic surveillance. He arranged for cash derived from drug trafficking to be funneled into bank accounts in California.
McAllister commended the Drug Enforcement Administration, Federal Bureau of Investigation, Department of Homeland Security-Homeland Security Investigations, and the Jackson County Missouri Drug Task Force, and Assistant U.S. Attorney Tris Hunt for their work on the case.
Milla Gangsta Bloods Gang Member and Another Man Charged with Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Nathaniel Myers, a/k/a Stretch, 26, and Robert Fletcher, 29, both of Buffalo, NY, were charged by criminal complaint with conspiracy to distribute cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, in early June 2020, investigators learned that defendant Fletcher would be receiving a package of narcotics. On June 4, 2020, the DEA set up surveillance of Fletcher’s vehicle in the area of 827 Clinton Street in Buffalo. Investigators observed the defendant going in and out or opening the door and looking out the front unit of 827 Clinton Street during the morning. At approximately 11:00 a.m., a UPS vehicle pulled up and placed a brown package from San Diego, CA next to the side door of the front unit. Minutes later, Fletcher picked up the package and took it inside. A short time later, Fletcher left carrying a white plastic bag and got into his car. A Buffalo Police Patrol Unit attempted to conduct a motor vehicle stop but the defendant sped away and engaged at a high-speed for approximately a mile before eventually pulling over on the eastbound side of Route 33 near the Best Street exit. At the entrance of Route 33 where Fletcher entered, a DEA Special Agent recovered a plastic bag that contained suspected marijuana. The defendant was charged with various motor vehicle offenses.
A K-9 search of Fletcher’s vehicle gave a positive alert for narcotics near the rear seat of the vehicle. During a search of the vehicle, investigators recovered telephones and a Walmart to Walmart money transfer from the defendant to a family member of the individual responsible for sending the cocaine to Fletcher. After tracing the route that Fletcher traveled while eluding police officers, investigators found a white plastic bag containing suspected cocaine near where the suspected marijuana was previously recovered.
Investigators then placed a “sham” package in a white plastic bag near the location where the suspected cocaine was recovered, and set up surveillance. At approximately 7:50 p.m., after being released from state custody, Fletcher's vehicle arrived in the area of the “sham” package and stopped. A vehicle traveling behind Fletcher’s vehicle also stopped. An individual exited that vehicle, picked up the “sham” package and walked towards Fletcher’s vehicle.During the investigation, investigators learned that Fletcher conspired with defendant Myers to receive and distribute narcotics, including cocaine. Myers had been in prison since 2018 for federal narcotics-related offenses. Myers was previously identified as a leader of the LRGP Gang, but he is now believed to be a member of the Milla Gangsta Bloods. Records from the Niagara County Jail where Myers has been held reveal that Fletcher has provided money to Myers while incarcerated.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Managing Partner of Investment Advisory Firm Charged for over $100 Million Ponzi-Like Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of an Information charging DAVID HU, a managing partner and the chief investment officer of the New York-based investment advisory firm International Investment Group (“IIG”), with investment adviser fraud, securities fraud, and wire fraud offenses. As alleged, over a period of more than 10 years, HU perpetrated an over $100 million scheme to defraud investors in IIG’s funds, including by creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner. HU was arrested today and was presented and arraigned before Magistrate Judge Robert W. Lehrburger. The case has been assigned to U.S. District Judge Alvin K. Hellerstein.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, David Hu directed a multimillion-dollar, years-long scheme to defraud investors. Putting profit ahead of his fiduciary duties, Hu allegedly mismarked millions of dollars of loan assets to cover up millions in losses. Hu also created fake entities and loans, and falsified paperwork to deceive auditors and avoid detection. Now David Hu stands charged with federal crimes and faces time in federal prison.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, for nearly a decade, David Hu misled investors about the value of their investments, including the creation and sale of fictitious fund portfolios to raise capital to prop up his schemes. His alleged actions serve as an example of the lengths some will go to in these all-too-common fraud cases. The FBI is committed to investigating those who prey upon trusting individuals for their own personal gain.”
In a separate civil action, the U.S. Securities and Exchange Commission (“SEC”) today filed civil charges against HU.
As alleged in the Information and based on statements made in Manhattan federal court in this case:[1]
Background of IIG
HU and a co-conspirator (“CC-1”) founded IIG in 1994. HU was a managing partner and the chief investment officer of IIG. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (“TOF”), (2) the IIG Global Trade Finance Fund, Ltd. (“GTFF”), and (3) the IIG Structured Trade Finance Fund, Ltd. (“STFF”). IIG also advised the Venezuela Recovery Fund (“VRF”), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the “IIG Funds”). In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management.
IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. IIG’s principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. IIG’s purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on “soft commodities,” such as coffee, agriculture, fishing, and other food products. IIG’s trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.
Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.
IIG purported to value the trade finance loans in the IIG Funds on a regular basis. IIG and, in turn, HU, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.
The Scheme
From approximately 2007 to 2019, HU conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner.
The scheme HU participated in involved, among other things:
- Mismarking Defaulted Loans. HU and CC-1 caused IIG to mismark the value of multiple loans that had, in reality, defaulted (the “Defaulted Loans”). Instead of acknowledging the defaulted status of these loans, HU and CC-1 instead caused IIG to mark the Defaulted Loans at par plus accrued interest, even though HU and CC-1 knew that the borrowers’ default significantly impaired the true value of these loans. HU and CC-1 certified these false valuations and caused them to be reported to investors.
- Mismarking Distressed Loans. HU and CC-1 caused IIG to mismark multiple loans that were distressed (the “Distressed Loans”). These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments. Even though HU and CC-1 knew that the non-performing status of the loans significantly impaired their true value, they nevertheless caused IIG to continue to mark the loans at par plus accrued interest.
- Creating Fictitious Loans. With respect to TOF, in order to hide the losses resulting from the Defaulted Loans, including from auditors reviewing TOF’s financials, HU and CC-1 removed the Defaulted Loans from the TOF portfolio, replacing them with tens of millions of dollars in fictitious loans to purported borrowers in foreign countries (the “Fake Loans”). HU and CC-1 also created or directed the creation of documents to keep in IIG’s files as purported documentation of the Fake Loans. To pass auditor scrutiny, HU and CC-1 also directed purported borrowers – sham foreign entities that were controlled by IIG’s business associates and that did not engage in actual business – to provide confirmations of the Fake Loans to auditors, including by arranging for TOF to pay a monthly fee to one purported borrower in exchange for providing false confirmations. In reality, these purported borrowers did not receive a loan from TOF, and were not expected to make any payments to TOF.
- Using a CLO Trust to Create Liquidity through Investments in Fraudulent Loans. In or about 2014, HU and CC-1 obtained approximately $220 million in bank financing to create a collateralized loan obligation trust (the “CLO Trust”), for which IIG served as an investment adviser. HU and CC-1 then engaged in various deceptive acts, using the CLO Trust, to hide TOF’s losses and generate liquidity for TOF, which was facing investor redemption requests and demands for repayment of loans that IIG had taken from international development banks. For example, in its capacity as investment adviser for the CLO Trust, IIG, through the efforts of HU and CC-1, caused the newly-created CLO Trust to purchase loans from the TOF portfolio, including Defaulted Loans, Distressed Loans, and Fake Loans, which generated liquidity for TOF. After the CLO Trust purchased loans in the TOF portfolio, IIG, through the efforts of HU and CC-1, generated additional liquidity by causing the CLO Trust to issue securitized debt instruments based on these loans, payable in various tranches to investors in the CLO Trust.
- Using the CLO Trust and Panamanian Shell Entities to Cover Up Losses. IIG, through the efforts of HU and CC-1, also caused the CLO Trust to create new fraudulent trade finance loans, and used those new fraudulent loans to cover up TOF’s losses. Specifically, HU caused the creation of shell entities domiciled in Panama (“Panamanian Shell Entities”) that were controlled by an IIG nominee. Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities. HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities. Finally, under the guise of the fake loan transactions with the Panamanian Shell Entities, the CLO Trust disbursed funds that HU and CC-1 diverted to TOF in order to pay off TOF’s various debts and obligations.
- Generating Liquidity By Selling Fraudulent Loans to Newly Created Funds Backed by a New Investor. In or about 2017, HU and CC-1 targeted a foreign institutional investor (“Institutional Investor-1”) to raise money for two new private IIG managed funds: GTFF and STFF. Institutional Investor-1 provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF. HU and CC-1 caused GTFF and STFF to purchase at least approximately $100 million in fake, distressed, defaulted or otherwise fraudulent loans.
- Inducing a Retail Mutual Fund to Invest in a Fictitious $6 Million Loan. In or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the “Retail Fund”). As an investment adviser to the Retail Fund, IIG made investment recommendations, including recommendations that the Retail Fund invest in trade finance loans originated by IIG. In or about February 2017, a borrower (the “Argentine Borrower”) had failed to pay the principal on an approximately $6 million loan (“Loan-1”) in which the Retail Fund had invested and which was nearing its maturity date. In or about March 2017, HU caused approximately $6 million to be transferred into an account associated with the Argentine Borrower from the account of a different borrower (“Borrower-1”), and further directed the funds from Borrower-1’s account to pay off the debt owed by the Argentine Borrower to the Retail Fund. To replace the funds from Borrower-1’s account that were used to make it appear as though the Argentine Borrower had repaid its debt to the Retail Fund, HU fraudulently induced the Retail Fund to invest in a new, fake $6 million loan to the Argentine Borrower (the “New Loan”). HU then directed that the proceeds from the fraudulently induced New Loan be transferred into Borrower-1’s account, effectively reimbursing the account for the earlier $6 million transfer to the Retail Fund. To further conceal the fraudulent nature of the New Loan, HU caused the creation of forged documents to make it appear as though the New Loan was a legitimate loan to the Argentine Borrower.
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DAVID HU, 62, of West Orange, New Jersey, is charged with one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Drew Skinner and Negar Tekeei are in charge of the prosecution.
The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Information, and the description of the Information set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
- Mismarking Defaulted Loans. HU and CC-1 caused IIG to mismark the value of multiple loans that had, in reality, defaulted (the “Defaulted Loans”). Instead of acknowledging the defaulted status of these loans, HU and CC-1 instead caused IIG to mark the Defaulted Loans at par plus accrued interest, even though HU and CC-1 knew that the borrowers’ default significantly impaired the true value of these loans. HU and CC-1 certified these false valuations and caused them to be reported to investors.
Man Pleads Guilty for Role in Illegally Straw Purchasing FirearmsRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today to aiding and abetting the straw purchase of firearms.
According to court documents, D’Lanta Boone, 29, of Temple Hills, aided and abetted the straw purchase of seven firearms by providing his then-girlfriend with money and explicitly directing her as to which firearms to illegally purchase on his behalf. Police in Washington, D.C. recovered one of the illegally purchased firearms from a felon, and police in Prince George’s County recovered another of the illegally purchased firearms.
Boone faces a maximum penalty of five years in prison when sentenced on December 18. 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 Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy, II 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-153.
Lansing, Illinois Resident Ordered to Pay $323,986.54 in RestitutionRead the Press Release
HAMMOND- Ruby Toosevich a/k/a Ruby Marie Lewis, 55, of Lansing, Illinois, was sentenced before District Court Judge James T. Moody following her plea of guilty to bank fraud, announced U.S. Attorney Thomas L. Kirsch II.
Toosevich was ordered to pay $323,986.54 in restitution and sentenced to 27 months in prison.
According to documents filed in this case, between December 2012 and December 2013, Ruby Toosevich executed a scheme to defraud the medical practice where she worked by using her employer’s bank account to pay her own expenses. Toosevich created fraudulent invoices disguised as legitimate business expenses to obtain checks from her employer’s bank account totaling more than a half million dollars. She then used the checks to pay or attempt to pay for a mortgage, home remodeling and repairs, private school tuition, federal taxes, jewelry, a luxury car lease, and other expenses. After discovering Toosevich’s scheme, the medical practice stopped payment on some of the checks, resulting in a loss of approximately $335,676.
“Ms. Toosevich cheated her employer for the financial gain of herself, her friends and family,” said U.S. Attorney Kirsch. “These type of crimes will be investigated and prosecuted by my Office and our investigative partners.”
This case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Munster Police Department. The case was prosecuted by Assistant United States Attorney Jacqueline L. Jacobs.
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Kalamazoo Methamphetamine Dealers Plead Guilty to Drug Trafficking and Gun CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN — Two Kalamazoo men face up to life in prison following their guilty pleas to multiple drug and firearms offenses, announced U.S. Attorney Andrew Birge. Trevon Gates (age 21) and Deonte Gates (age 19) were scheduled for trial on July 14, 2020 and instead pled guilty to their charges, which included conspiring to distribute methamphetamine and possessing firearms in furtherance of the methamphetamine conspiracy.
The Gates brothers partnered to sell methamphetamine in Kalamazoo, Holland, Plainwell, and Otsego during 2018 and 2019. The execution of a search warrant at the defendants’ home uncovered guns, money, methamphetamine, and drug packaging material. The investigation revealed that the brothers were constantly armed and even coerced at least one other person to deliver methamphetamine on their behalf or face harm.
“No one should view selling methamphetamine or other addictive drugs on the street as a way to raise one’s station in life,” commented U.S. Attorney Birge. “Taking advantage of addicts is shameful, destroys families and brings communities down. People who not only sell methamphetamine but also use guns to further their efforts pose an enhanced threat to safety in their communities. Our office is committed to investigating and prosecuting those individuals to the full extent of the law.”
Chief Karianne Thomas of the Kalamazoo Department of Public Safety agreed: “The illegal use and distribution of methamphetamine continues to be a scourge in our community and is responsible for driving a large amount of crime. This investigation showed that these two individuals had an extensive involvement in methamphetamine distribution in not just Kalamazoo, but throughout southwest Michigan. Their propensity to employ many different firearms to further their drug trafficking network made them particularly dangerous to the community. This is another excellent example of the outstanding partnership and cooperation between the Kalamazoo Department of Public Safety and our state and federal law enforcement partners to include the Michigan State Police, U.S. Attorney’s Office for the Western District of Michigan, U.S. Drug Enforcement Administration (DEA) and the Bureau of Alcohol Tobacco and Firearms (ATF).”
Michigan State Police Lieutenant Andrew Foster of the West Michigan Enforcement Team commented, “We appreciate the work done by the U.S. Attorney’s Office with this investigation. This case brought to justice individuals responsible for trafficking large quantities of crystal methamphetamine into west Michigan. It is just another great example of the partnership WEMET has with our federal law enforcement and local agencies throughout west Michigan.”
Trevon Gates is subject to a mandatory minimum term of 15 years in prison, while Deontae Gates is subject to a mandatory minimum term of 10 years in prison. Both brothers will be sentenced later this year.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kalamazoo Department of Public Safety, Kalamazoo Valley Enforcement Team, the Holland Police Department, and the West Michigan Enforcement Team.
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Jamaican Native Convicted of Fraud Pleads Guilty to Failure to Report for SentencingRead 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 Daciann Brown, 30, a Jamaican native residing in Rochester, NY, pleaded guilty to failure to appear for sentencing before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in May 2018, the defendant pleaded guilty to wire fraud, false claims, and fraud related to identification documents. Brown purported to be a tax preparer and filed 66 false tax returns on behalf of 44 taxpayers with the IRS. Thirteen of those taxpayers did not know the defendant was filing returns using their personal information. Brown was scheduled to be sentenced on August 28, 2018. However, the defendant failed to appear on that date, and an arrest warrant was issued. On June 3, 2020, Brown was arrested by the U.S. Marshal Service.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, and the U.S. Marshal Service, under the direction of Marshal Charles Salina.
Sentencing on both the failure to appear and fraud charges will scheduled at a later date before Chief Judge Geraci.
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Internal Revenue Service Wrapped up the ‘Dirty Dozen’ List of Tax Scams for 2020; IRS Criminal Investigation and U.S. Attorney Office Urge Taxpayers to Watch Out for These Tax ScamsRead the Press Release
The Internal Revenue Service wrapped up its annual ‘Dirty Dozen’ list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Southern District of Iowa urge taxpayers to be vigilant to these tax scams.
This year, the Dirty Dozen focuses on scams that target taxpayers. The criminals behind these bogus schemes view everyone as potentially easy prey.
“Fraud schemes harm everyone, especially those which defraud the IRS and members of our community,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “As we stand ready to investigate anyone who would put a taxpayer at risk for a quick profit, we urge everyone to watch out for these tax scams all the time.”
Tax scams tend to rise during tax season or during times of crisis. “This years’ list of tax scams should serve as a stark reminder to everyone to be vigilant to these threats during the current pandemic and its aftermath,” said U.S. Attorney Marc Krickbaum for the Southern District of Iowa. “Please safeguard your personal and financial information, and don’t engage potential scammers online or on the phone.”
Taxpayers are encouraged to review the ‘Dirty Dozen’ list in a special section on IRS.gov and be on the lookout for these scams throughout the year.
For official information year round, taxpayers can visit IRS.gov
Internal Revenue Service Wrapped up the ‘Dirty Dozen’ List of Tax Scams for 2020; IRS Criminal Investigation and U.S. Attorney Office Urge Taxpayers to Watch Out for These Tax ScamsRead the Press Release
The Internal Revenue Service wrapped up its annual ‘Dirty Dozen’ list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic
Impact Payments. The Internal Revenue Service Criminal Investigation division and the U.S.
Attorney’s Office for the Southern District of Illinois urge taxpayers to be vigilant to these tax scams.This year, the Dirty Dozen focuses on scams that target taxpayers. The criminals behind these bogus schemes view everyone as potentially easy prey.
“Fraud schemes harm everyone, especially those which defraud the IRS and members of our community,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the
St. Louis Field Office. “As we stand ready to investigate anyone who would put a taxpayer at risk for a quick profit, we urge everyone to watch out for these tax scams all the time.”Tax scams tend to rise during tax season or during times of crisis. “This years’ list of tax scams should serve as a stark reminder to everyone to be vigilant to these threats during the current pandemic and its aftermath,” said U.S. Attorney Steven D. Weinhoeft for the Southern District of
Illinois. “Please safeguard your personal and financial information, and refrain from engaging potential scammers online or on the phone.”Taxpayers are encouraged to review the ‘Dirty Dozen’ list in a special section on
IRS.gov and be on the lookout for these scams throughout the year.For official information year round, taxpayers can visit IRS.gov
Howard University Graduate Pleads Guilty to Defrauding Financial Aid OfficeRead the Press Release
WASHINGTON – Brian Johnson, 35, of Washington, D.C., pled guilty today for his role in defrauding Howard University out of more than $100,000, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Washington Field Office’s Criminal Division.
Johnson pled guilty to one count of conspiracy to commit wire 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, Johnson faces a likely recommended sentence of 10 to 16 months in prison. The plea agreement calls for Johnson to pay $107,697.75 in restitution and $53,849 in a forfeiture money judgment.
According to the statement of offense filed with the Court, Johnson earned a Bachelor of Science degree and a Master of Business Administration from Howard University. From 2011 through 2016, he worked in the school’s Financial Aid Office. He served as the Associate Director of Financial Aid from 2014 through August 2016. In the fall of 2016, a co-conspirator, who worked at Howard from 2011 through 2017 in the Financial Aid Office and then the Bursar’s Office, proposed a scheme to Johnson in which the co-conspirator would cause fraudulently-obtained money to be sent from Howard University to Johnson, with Johnson then kicking back half of the proceeds to the co-conspirator. As part of the scheme, the co-conspirator applied fraudulent financial aid awards onto Johnson’s student profile even though he was no longer a student or employed at the school. As a result, the co-conspirator caused the University to issue $107,697.75 to Johnson’s bank account between November 2016 and May 2017. Johnson admitted sharing half of the fraud proceeds with the co‑conspirator in the form of cash or electronic payments.
Chief Judge Beryl A. Howell accepted Johnson’s guilty plea and scheduled his sentencing for September 25, 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 are involved in this ongoing investigation. They also expressed appreciation for the work of Paralegal Specialist Mariela Andrade and former Paralegal Specialist Brittany Phillips. Finally, they commended the work of Assistant U.S. Attorney Kondi J. Kleinman.
Hartford Felon Pleads Guilty to Possessing Sawed-Off ShotgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KEVIN BARCO, 36, of Hartford, pleaded guilty today before U.S. District Judge Stefan R. Underhill to possession of a firearm by a convicted felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, on October 6, 2018, Hartford Police encountered Barco sitting in a car that was parked on Albany Avenue. A subsequent search of the car revealed a Harrington and Richardson, Model 176, 10 gauge shotgun with a sawed-off barrel. Eight shotgun shells were also found in the car.
Barco’s criminal history includes state convictions for felony weapon, robbery, larceny and escape offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Underhill scheduled sentencing for October 9, 2020, at which time Barco faces a maximum term of imprisonment of 10 years. Barco is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller
This prosecution 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 neighborhoods safer for everyone.
Harrison County Couple Sentenced for Illegal Possession of FirearmsRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on July 16, 2020, Walter Greenwood Stokes, 34 years of age, and his wife, Brittany Leah Lynne Stokes, 34 years of age, were sentenced to prison for possession of firearms while prohibited. Walter Stokes was sentenced to 70 months in prison followed by three years of supervised release, while Brittany Stokes was sentenced to a year and a day in prison followed by three years of supervised release. A third defendant, Laura Edith Chedester of Omaha, Nebraska, is awaiting sentencing on August 20, 2020.
The Stokes were convicted by jury on March 3, 2020. Walter Stokes was found guilty of being a felon in possession of a firearm and Brittany Stokes was found guilty of being a drug user in possession of a firearm and of falsifying a government document in the acquisition of a firearm.
The jury heard evidence that Woodbine Police Department along with the Logan Police Department served a search warrant on the Stokes’ residence located in Woodbine, Iowa. The search by law enforcement recovered 25 firearms, and over 14,000 rounds of ammunition. Five loaded semi-automatic assault type rifles were located in the master bedroom of the home. Evidence showed that Walter Stokes had built several of the assault weapons from parts obtained by Brittany Stokes. Evidence was also heard by the jury about an extensive history of drug use by the couple and that Walter Stokes had felony convictions dating back to 2003.
The investigation was conducted by the Woodbine Iowa Police Department, Logan Iowa Police Department, Council Bluffs Police Department, Harrison County Sheriff’s Office, Pottawattamie County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Fremont Man Sentenced to More Than 16 Years in Prison for Conspiring to Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that James Maynard, age 28, of Fremont, Nebraska, was sentenced on July 16, 2020, in federal court in Omaha, Nebraska, for conspiracy to possess with intent to distribute methamphetamine. Chief United States District Court Judge John M. Gerrard sentenced Maynard to 200 months’ imprisonment. After completing his term of imprisonment, Maynard will be required to serve a 5-year term of supervised release. There is no parole in the federal system.
On July 11, 2018, Dodge County Deputy Sheriffs stopped Maynard driving a vehicle on a Dodge County highway after observing him commit a number of traffic violations. During the stop, deputies noticed drug paraphernalia inside Maynard’s vehicle and asked him to step outside. In response, Maynard drove away leading deputies on a chase where speeds exceeded 100 mph. During the chase, Maynard threw out several evidentiary items including approximately 300 grams of actual methamphetamine. Maynard eventually crashed his vehicle and was arrested after a foot chase. During a post arrest interview, Maynard admitted selling methamphetamine for the past several months.
This case was investigated by the Dodge County Sheriff’s Office.
Franklin, N.C. Man Is Sentenced to More Than 12 Years for Armed Bank Robbery in AshevilleRead the Press Release
ASHEVILLE, N.C. – Chief U.S. District Judge Martin Reidinger sentenced William Keith Leonhart, 41, of Franklin, N.C., to 154 months in prison followed by five years of supervised release for robbing at gunpoint an Asheville bank, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and yesterday’s sentencing hearing, on August 5, 2019, the Asheville Police Department received a call regarding an armed robbery of the First Citizens Bank located at 1201 Tunnel Road in Asheville. Court records show that Leonhart had entered the bank, approached a teller and brandished a firearm. While pointing his firearm at the teller, Leonhart gave the teller a threatening demand note. The teller handed Leonhart approximately $500 out of her cash drawer and Leonhart fled the scene in a stolen vehicle. The next day, law enforcement identified Leonhart driving a second stolen vehicle in Black Mountain, N.C. Following a vehicle chase, Leonhart was arrested, and law enforcement recovered from inside the vehicle the firearm Leonhart had used during the robbery. According to court records, Leonhart had previously robbed the same bank in 2013, and had received a sentence of 66-89 months in prison.
In October 2019, Leonhart pleaded guilty to one count of bank robbery and one count of possession of a firearm in furtherance of a crime of violence. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray thanked the Asheville Police Department, the Black Mountain Police Department, and the Federal Bureau of Investigation for their investigation of this case. He also thanked District Attorney Todd Williams for his office’s coordination over the course of the prosecution of this case.
Special Assistant United States Attorney (SAUSA) Alexis Solheim prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 30th Prosecutorial District, and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 30th Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 30th Prosecutorial District.
Former Waterloo Teacher Sentenced to Eight Months’ Imprisonment for FraudRead the Press Release
A former Waterloo teacher was sentenced today to 8 months in federal prison. Defendant is to serve 4 months in BOP facility and 4 months in home confinement.
Anthony Dehl, age 59, from Waterloo, Iowa, received the prison term after a guilty plea to wire fraud.
In a plea agreement, Dehl admitted that from 2014 to 2019, he defrauded the Waterloo Education Association (WEA) out of $54,254.07. He withdrew most of the money at a local casino. At the time of the fraud, Dehl was the treasurer of the WEA and concealed his scheme by submitting false treasurer reports and other yearly reports to the organization.
Dehl was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dehl was sentenced to 8 months’ imprisonment and fined $4,000. Dehl was ordered to make $54,254.07 in restitution to the WEA and defendant paid his restitution in full. Defendant must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Dehl was released on the bond previously set and is to surrender to the United States Marshal on August 3, 2020.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and investigated by FBI and the Iowa State Auditor’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02004.
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Former USPS Employee Charged with Stealing Cash and Gift Cards from MailRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, today announced that ELIZABETH URBANI, 42, of West Haven, has been charged by federal criminal complaint with theft of mail by a U.S. Postal Service (USPS) employee.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Urbani appeared today before U.S. Magistrate Judge Robert M. Spector via videoconference.
As alleged in the criminal complaint, Urbani has been employed by the U.S. Postal Service since approximately 2015, and most recently was a mail carrier assigned to the New Haven Post Office. Beginning in December 2019, some USPS customers along Urbani’s mail route submitted complaints that their mail was missing or had been stolen. Subsequent investigation revealed that, in January and February 2020, Urbani opened approximately 125 pieces of mail and stole cash and gift cards contained within several of those mail pieces.
The charge of theft of mail by an employee carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Urbani, who resigned from the USPS, is released on a $50,000 bond.
This investigation is being conducted by the U.S. Postal Service Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
Individuals who believe they are a victim of mail theft may file a complaint by calling 888-USPS-OIG or by visiting this link.
Former Head of Community Preparatory Academy Admits Stealing over $3 Million and Spending $220,000 on Disney ExpensesRead the Press Release
LOS ANGELES – Federal prosecutors today filed criminal theft and tax fraud charges against the former executive director of a charter school outfit who stole more than $3.1 million that should have been spent on school operations, but instead financed a lifestyle that included extravagant spending on Disney cruises and theme park admissions.
Janis Bucknor, 52, a resident of Baldwin Hills, who ran the for-profit Community Preparatory Academy (CPA) charter school and controlled several related entities, agreed to plead guilty to two felony offenses in a plea agreement also filed today in United States District Court. CPA operated two schools, one in Carson and one in South Los Angeles.
The case charges Bucknor with one count of theft, embezzlement and intentional misapplication of funds from an organization receiving federal funds, and one count of tax evasion for the tax year 2016. The court has yet to schedule any hearings in this matter.
Over the course of approximately 5½ years – from early 2014 through November 2019 – Bucknor stole a total of $3,168,346 from CPA, according to the most recent estimate of losses in the case. The amount of stolen funds is nearly one-third of all federal and state funding that went to CPA during the time.
In her plea agreement, Bucknor admitted using the stolen funds to pay for, among other things, personal travel, restaurants, Amazon and Etsy purchases, and private school tuition for her children. She also admitted spending about $220,614 on Disney cruise line vacations, theme park admissions and other Disney-related expenses.
The scheme began to unravel in February 2018, when “LAUSD-Charter School Division’s routine audit of CPA revealed that defendant used the CPA accounts for personal expenses, including unauthorized payments directly from some of the CPA accounts to Disney, Louis Vuitton, Girl Scouts, Ticketmaster, Uber, Baby Teeth Children’s Dentistry, Williams Sonoma, National American Miss pageants, and Forest Lawn Mortuaries, all of which were for defendant’s own personal and unauthorized use and benefit,” according to the plea agreement.
In relation to the tax evasion offense, Bucknor agreed to plead guilty to her 2016 taxes, but she admitted failing to pay the Internal Revenue Service $299,639 in taxes when she failed to report $1,322,254 in income for the tax years 2015 through 2018.
When she pleads guilty, Bucknor will face a statutory maximum sentence of 15 years in federal prison.
As part of the plea agreement, Bucknor has agreed to forfeit to the government her interest in three residential properties in South Los Angeles that were paid for with funds stolen from the charter school.
This case was investigated by the Los Angeles Unified School District’s Office of the Inspector General, the U.S. Department of Education Office of Inspector General, IRS Criminal Investigation, the United States Secret Service, and the United States Postal Inspection Service.
The criminal case is being prosecuted by Assistant United States Attorneys Katherine A. Rykken and Alexander C.K. Wyman of the Major Frauds Section. Assistant United States Attorneys Jonathan Galatzan and Katharine Schonbachler are handling the asset forfeiture part of the matter.
Five-Time Convicted Felon Sentenced for Assaulting, Resisting, and Impeding a Federal Wildlife OfficerRead the Press Release
United States Attorney Joe Kelly announced that Michael Ellis, 51, of Omaha, was sentenced today in federal court in Omaha to 12 months’ imprisonment, the maximum possible sentence, for Assaulting, Resisting, Opposing, Impeding, Intimidating, and Interfering with a federal officer by United States Magistrate Judge Susan M. Bazis. There is no parole in the federal system. After his release from imprisonment, Ellis will serve a 1-year term of supervised release.
On August 10, 2019, a Federal Wildlife Officer was in uniform and driving a marked United States Fish and Wildlife Services vehicle while patrolling the Boyer Chute National Wildlife Refuge. The officer observed Ellis’s vehicle driving on a portion of County Road P51 on the Wildlife Refuge that had been closed due to flooding. The officer stopped Ellis’s vehicle. The officer walked up to the driver’s side and spoke with Ellis, who was the driver. The officer observed open containers of beer in the cup holders of the center console. The officer asked Ellis to turn off his vehicle and requested his identification. Ellis did neither and instead took off his seat belt. Ellis eventually provided the officer with his Nebraska Identification card. The officer told Ellis he was trespassing and Ellis stated that the road closed sign did not say “no trespassing.” A records check indicated that Ellis did not have a valid driver’s license. The officer asked Ellis if he had any weapons in the vehicle and Ellis stated he had knives. The officer requested a Washington County Sheriff’s Deputy to come to the scene and Ellis stated “man, I’m taking off…” and “I ain’t going to [expletive] jail again, dude.” The officer ordered Ellis out of the vehicle and Ellis refused to comply. The officer then attempted to remove Ellis from the vehicle and Ellis pulled away from the officer and pulled his arms away from the officer while the officer tried to handcuff Ellis. Ellis kept reaching toward his waist as he was struggling with the officer. During this, Ellis stated, “you ain’t putting them damn [handcuffs] on me.” The officer was able to handcuff one of Ellis’s wrists, but due to Ellis pulling away was unable to handcuff Ellis’s second wrist. The officer then pinned Ellis against Ellis’s vehicle while waiting for a Washington County Sheriff’s Deputy to arrive. During this time, Ellis stated to the officer, “You don’t understand man, you’re [expletive] with one of the North Omaha boys,” that he has “done all kinds of dirty work,” and “you’re done.” Upon the second officer arriving, Ellis’ second wrist was able to be handcuffed. During a search of Ellis, multiple knives were found in a case on Ellis’s belt, from Ellis’s waistband, and in Ellis’s pockets.
Ellis is a five-time convicted felon with an extensive criminal history dating back 30 years that includes assaultive behavior and carrying knives. Magistrate Judge Bazis when imposing this maximum possible sentence noted that Ellis’s behavior on August 10 put both himself and the officer in danger. Magistrate Judge Bazis also noted the dangers faced by Federal Wildlife Service Officers who work in remote areas with little to no backup readily available to them if they need help in situations like these. In this case Washington County Sheriff deputies had to leave their normal patrol areas to assist and one off-duty officer was eating dinner and left his personal residence to come to the scene to assist.
This case was investigated by United States Fish and Wildlife Service and Washington County Sheriff’s Office.
Five People from Kyle Arrested for Conspiracy to Distribute Methamphetamine in South DakotaRead the Press Release
United States Attorney Ron Parsons announced that five Kyle, South Dakota, men and women have been arrested by a complaint for Conspiracy to Distribute a Controlled Substance.
Robert O’Rourke, age 39; Lynette O’Rourke, age 37; Sunny O’Rourke, age 43; Guadalupe “Lupe” Garcia, age 38; and Shaina Phelps, age 42, were charged by complaint on June 16, 2020. They all appeared before U.S. Magistrate Judge Daneta Wollmann on June 24, 2020, and pleaded not guilty to the charge. The maximum penalty upon conviction is up to life imprisonment and/or a $10,000,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to the O’Rourkes, Garcia, and Phelps conspiring together to distribute 500 grams or more of methamphetamine in South Dakota. The charge is merely an accusation and the five defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Garcia was released on bond, while the O’Rourkes and Phelps were detained pending trial. A trial date has been set for September 1, 2020.
Felon Sentenced to Federal Prison for Possessing AmmunitionRead the Press Release
A convicted felon who unlawfully possessed ammunition was sentenced today to more than two years’ in federal prison.
Mopreme Vychon Todd-Harris, age 21, from Hiawatha, Iowa, received the prison sentence after a February 7, 2020 guilty plea to being a felon in possession of ammunition. In 2017, Todd-Harris was convicted of burglary 3rd degree, a felony conviction. The conviction prohibited him from legally possessing a firearm or ammunition.
Information disclosed at sentencing and in his plea agreement showed that on July 21, 2019, Waterloo police officers observed Todd-Harris, who officers knew to have an outstanding warrant for his arrest, in public with a group of other people. Officers approached Todd-Harris and saw a gun in his right hand. The gun was loaded with live rounds of ammunition, though the gun was later determined to be an antique. The warrant for Todd-Harris’s arrest was because he had previously escaped from the Waterloo Residential Correctional Facility.
Todd-Harris was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Todd-Harris was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and Special Assistant United States Attorney Alexander Geocaris and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2061.
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Federal Jury Finds Former Detroit Man Guilty of Drug OffensesRead the Press Release
CHARLESTON, W.Va. – A Charleston man, formerly of Detroit, Michigan, was found guilty on all counts - three felony drug offenses - by a jury of his peers today, announced United States Attorney Mike Stuart. Ralph Weathington, Jr., 28, was found guilty of distribution of methamphetamine, distribution of fentanyl, and possession with the intent to distribute cocaine, fentanyl, and more than 50 grams of methamphetamine.
“Guilty on each and every count. Another former Detroit drug dealer is headed to prison. Weathington was dealing a smorgasbord of dangerous and deadly drugs - drugs that have wreaked havoc, chaos and death on our communities,” said United States Attorney Mike Stuart. “We are pleased that as a result of today’s verdict, the people of the city of Charleston and the people of West Virginia are significantly safer. I applaud the work of the investigators and my entire team for a job well done.”
Evidence presented to the jury established that on January 22, 2018, the defendant met with a confidential informant working with the Kanawha County Sheriff’s Office and the Drug Enforcement Administration (DEA) in Charleston and sold the informant approximately two ounces of methamphetamine. Later, on January 30, 2018, the defendant again met with a confidential informant on the West Side of Charleston and sold the informant approximately 3.5 grams of fentanyl. Finally, on May 22, 2019, the defendant was present at an apartment in Charleston when officers with the United States Marshals Service and the Kanawha County Sheriff’s Office discovered him holding a gray article of clothing that appeared to be wrapped around another object. The defendant was standing next to an open window as he held this object, and he threw it out the window when ordered by an officer to show his hands. An officer with the Charleston Police Department observed several objects falling from the window to the ground, and moved to secure the evidence which was found to be approximately 111 grams of methamphetamine, 18 grams of fentanyl, 27 grams of cocaine, United States currency, a silver weight used to calibrate a digital scale, a small shoebox and a gray sweatshirt. An officer with the Metropolitan Drug Enforcement Network Team (MDENT) arrived on scene and collected the drug-related evidence. Then, with the assistance of other officers, the apartment was searched and 18 additional grams of fentanyl were located along with a semi-automatic pistol, two digital scales and additional United States currency.
Weathington faces up to life in prison when sentenced on October 15, 2020.
The Drug Enforcement Agency (DEA), the Kanawha County Sheriff’s Office, the Charleston Police Department, the United States Marshals Service, and the Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., presided over the trial. Assistant United States Attorneys Jeremy B. Wolfe and Monica D. Coleman handled the prosecution.
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District Man Sentenced to Five Years in Prison for Involuntary ManslaughterRead the Press Release
WASHINGTON – Edward Banks, 47 of Washington, D.C. was sentenced today to five years of incarceration for involuntary manslaughter. The announcement was made by the Acting United States Attorney, Michael R. Sherwin and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On February 24, 2020, Banks pled guilty in the Superior Court of the District of Columbia on one count of Involuntary Manslaughter. He was sentenced by the Honorable Juliet McKenna on July 17, 2020. Following his prison term, he will serve five years of supervised release.
On August 18, 2019, the defendant entered a homeless shelter located at 2700 Martin Luther King Avenue, SE. At a certain point, the defendant was walking down a hallway in the shelter when he came upon the decedent, Mr. Abraham Weldemichael, who was standing outside the bathroom door. The defendant became angry at the decedent and took an aggressive posture. The defendant then punched Mr. Weldemichael in the face once and fled the scene. Mr. Weldemichael collapsed to the ground and did not move. Mr. Weldemichael’s unconscious body was on the ground for approximately six minutes until he was eventually discovered by security staff. Medical personnel arrived at the scene and Mr. Weldemichael was transported to George Washington Hospital. Upon arrival, he was admitted in critical condition and it was determined that he was suffering from swelling and bleeding in the brain. He eventually succumbed to his injuries and was pronounced dead on August 21, 2019 at 2:32 am.
In announcing the sentence, Acting U.S. Attorney Sherwin commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant United States Attorney Shehzad Akhtar, Paralegal Specialists Lashone Samuels; Victim Witness Specialist Jennifer Allen and Investigative Analyst Zachary McMenamin.
Department of Justice and Department of Homeland Security Announce Plan to Restart MPP HearingsRead the Press Release
The U.S. Department of Homeland Security (DHS) and the U.S. Department of Justice (DOJ) remain committed to resuming removal hearings for aliens subject to the Migrant Protection Protocols (MPP) as expeditiously as possible. To lend greater certainty in a fluid COVID-19 environment, DHS has maintained close contact with the Department of State (DOS) and the Government of Mexico (GOM) and worked with DOJ to identify public health criteria to determine when hearings may resume swiftly and safely.
The criteria below outline the factors that DHS and DOJ will use to determine when to resume MPP hearings. Once the criteria are met, the Departments will provide public notification at least fifteen calendar days prior to resumption of the hearings with location-specific details. In order to resume MPP hearings in a responsible manner that will minimize risk to public health and the spread of disease, DHS plans to adhere to recommended federal guidance and protocols, including in particular the Centers for Disease Control and Prevention’s (CDC) social-distancing and sanitization standards. DHS is working to secure the equipment and resources necessary to support this safe resumption of MPP hearings. The use and application of these criteria are subject to continuing evaluation:
Criteria to Restart MPP Hearings
- When California, Arizona, and Texas progress to Stage 3 of their reopening plans.[1]
- When DOS[2] and CDC[3] lower their global health advisories to Level 2, and/or a comparable change in health advisories, regarding Mexico in particular.
- When GOM’s “stoplight” system categorizes all Mexican border states (i.e., Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora, and Baja California) as “yellow.”[4]
Once the threshold criteria above are satisfied, DHS and DOJ will take the following steps to ensure that MPP hearings can safely resume:
Safeguards to Protect DHS Employees and Aliens in MPP
- DHS will develop detailed, location-specific plans to safely resume MPP hearings consistent with CDC guidelines. These plans at a minimum will address, but are not limited to, intake processes for aliens and visitors, transportation requirements, facility size, overnight hold capacity, and cleaning schedules.
- All agencies will apply CDC social-distancing guidelines, as appropriate, at each stage of the court hearing process and consistent with local operational realities.[5] Once a facility’s capacity is reached, the remaining aliens will have their hearings rescheduled for a future date.
- For the entirety of the hearing process, all DHS and DOJ personnel and aliens will be required to wear face masks that are consistent with CDC guidance and subject to any applicable policies of either Department. This requirement will apply to the immigration hearing facilities (IHFs) in Laredo and Brownsville. All visitors will also be required to wear face masks while they are in the facilities.[6]
- All DHS personnel participating in the processing of MPP aliens, aliens arriving to attend MPP hearings, and visitors entering the IHFs, will have their temperatures checked prior to entering any DHS facility. Aliens displaying a fever of over 100.4 degrees Fahrenheit will have their court hearing rescheduled. At the IHFs in Laredo and Brownsville, any visitor displaying a fever of over 100.4 degrees Fahrenheit will not be able to enter the facility.[7] DHS personnel displaying a fever of over 100.4 degrees Fahrenheit will be managed according to agency-specific protocols.
- All congregate settings will be cleaned and disinfected regularly according to CDC guidelines for similar facilities.[8]
- Every reasonable effort will be made to avoid holding migrants overnight in DHS custody.
DHS continues to work closely with DOJ, DOS, and GOM to explore every available option to resume removal hearings for aliens subject to MPP as soon as possible, with as much flexibility as existing statutes, regulations, and guidelines allow.
Individuals should continue to check on case status in English and Spanish by calling the Automated Case Information Hotline at 1-800-898-7180 or visiting the EOIR Automated Case Information portal.
[1] California: https://covid19.ca.gov/roadmap/#top; Arizona: https://azgovernor.gov/governor/reopening-guidance;
Texas: https://gov.texas.gov/uploads/files/press/EO-GA-26_expanded_opening_COVID-19.pdf
[2] https://travel.state.gov/content/travel/en/traveladvisories/ea/travel-advisory-alert-global-level-4-health-advisory-issue.html
[3] https://wwwnc.cdc.gov/travel/notices/warning/coronavirus-global
[4] https://coronavirus.gob.mx/semaforo/
[5] https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/social-distancing.html
[6] For DOJ/ Executive Office for Immigration Review (EOIR) requirements, see /media/1071956/dl?inline
[7] DOJ will have its own requirements for EOIR courthouses.
[8] https://www.cdc.gov/coronavirus/2019-ncov/community/cleaning-disinfecting-decision-tool.html
Davenport Man Sentenced to Federal Prison for ArsonRead the Press Release
DAVENPORT, IA – On Friday, July 10, 2020, Vincent Taggart Reid III, age 29, of Davenport, was sentenced by United States District Court Chief Judge John A. Jarvey to 110 months in prison after he pleaded guilty to Arson/Attempted Arson, announced United States Attorney Marc Krickbaum. Reid was ordered to serve a period of supervised release of three years to follow his prison term, pay a $100 special assessment to the Crime Victims’ Fund, and pay restitution to the victim for damage caused to her property.
Reid pleaded guilty on February 10, 2020. On March 30, 2019, Davenport Police Officers were called to a Davenport duplex because an individual was trying to set the upstairs unit on fire. Prior to officers being called, Reid had been kicked out of the duplex by the victim. Despite being ordered to leave, Reid kicked down the door and followed the victim upstairs into her unit, and threatened to burn down the building and destroy her property. Reid began to damage property belonging to the victim. While the victim recorded him, Reid attempted to light multiple couch pillows on fire before grabbing a lit candle and intentionally kicking it under the couch. Shortly before officers arrived in the area, Reid shot a gun into the air and then took off from officers in a car at high speeds. Reid was eventually located by officers at a home associated with him. After further investigation, Reid was arrested and taken into custody.
This matter was investigated by the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
DHS employee charged with fraudRead the Press Release
HOUSTON – A 46-year-old Laredo man has been charged with using the personal information of deceased individuals in online loan scam, announced U.S. Attorney Ryan K. Patrick.
David Allen Parker made his initial appearance today, at which time the indictment was unsealed. He will remain in custody pending a hearing set for July 24.
The charges allege that from approximately 2018 through July 2019, Parker devised a scheme to defraud online lending institutions. Parker allegedly applied for lines of credit in excess of $33,000 using stolen personal identifying information belonging to deceased individuals. Parker submitted the loan applications containing misappropriated personal identifying information through the internet to lending institutions in New York, according to the charges.
If convicted of wire fraud, Parker faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The FBI - Dallas, Abilene and San Antonio Divisions, DHS - Office of Inspector General and the Abilene Police Department conducted the investigation.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Council Bluffs Residents Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA -- United States Attorney Marc Krickbaum announced on Wednesday, July 15, 2020, Harley Bressman, age 46, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 210 months in prison for conspiracy to distribute methamphetamine. Bressman was ordered to serve 10 years of supervised release to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund.
Sabrina Spahn, age 48, of Council Bluffs, was sentenced to 77 months in prison for her role in the methamphetamine conspiracy. She was ordered to serve five years of supervised release to follow her prison term and pay a $100 special assessment to the Crime Victims’ Fund.
The charges were the result of an ongoing investigation involving Bressman distributing a large quantity of methamphetamine in the Council Bluffs area. An undercover investigation led law enforcement to execute a search warrant at Bressman and Spahn’s residence in Council Bluffs, where over four pounds of methamphetamine was located as well as seven pounds of methamphetamine discovered at a related location.
The investigation was conducted by the Council Bluffs Police Department, Southwest Iowa Narcotics Task Force, Middle Iowa Narcotics Enforcement, Iowa Division of Narcotics Enforcement, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Men Sentenced to Prison for Conspiracy to Distribute CocaineRead the Press Release
COUNCIL BLUFFS, IA - United States Attorney Marc Krickbaum announced on Monday, July 13, 2020, Douglas Schlott, age 35, of Council Bluffs, was sentenced by United States District Court Judge Stephanie M. Rose to a total of 71 months in prison to be followed by a five year term of supervised release for Conspiracy to Distribute Cocaine and Possessing a Firearm in Furtherance of Drug Trafficking.
Also sentenced by Judge Rose as part of the cocaine conspiracy was Tyler Alwan, age 21, of Council Bluffs. Alwan pleaded guilty to Conspiracy to Distribute Cocaine and was sentenced to 16 months in prison to be followed by four years of supervised release.
The charges were the result of an investigation initiated by a concerned citizen who provided information to the Council Bluffs Police Department that drugs were being distributed in a parking lot. An undercover investigation of this information led local law enforcement to execute a search warrant at Douglas Schlott’s residence in Council Bluffs where police located cocaine, drug paraphernalia, and a firearm.
This investigation was conducted by the Council Bluffs Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced to over 15 Years in Prison for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on Monday, July 13, 2020, Brent Rawson, age 55, of Council Bluffs, was sentenced by United States District Court Judge Stephanie M. Rose to 188 months in prison for receipt of child pornography. Rawson was ordered to serve eight years of supervised release to follow his prison term and pay $100 special assessment to the Crime Victims’ Fund.
The charges were the result of an investigation initiated from two internet service providers who submitted tips to the National Center for Missing and Exploited Children that a user of their service uploaded suspected images of child pornography. An investigation of this information led law enforcement to execute a search warrant at Rawson’s Council Bluffs residence. Law enforcement located a laptop, cell phone, and two hard drives, which were taken as evidence and analyzed. The forensic analysis revealed Rawson possessed and received numerous images and videos of child pornography.
This investigation was conducted by the Douglas County Sheriff Office and the Omaha Federal Bureau of Investigations Child Exploitation and Human Trafficking Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced for Drug and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA - United States Attorney Marc Krickbaum announced on Thursday, July 16, 2020, Matthew Carson, age 37, of Council Bluffs, was sentenced by United States District Court Chief Judge John A. Jarvey to a total of 10 years in prison for Possession with Intent to Distribute Methamphetamine and Carrying a Firearm During a Drug Trafficking Crime. He was ordered to serve five years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
The charges stemmed from two traffic stops of Carson by Council Bluffs Police Officers. On August 8, 2019, Carson drove without a valid driver’s license and was found in possession of 24 grams of methamphetamine. On September 25, 2019, Carson was found in possession of 20 grams of methamphetamine and a loaded firearm.
This investigation was conducted by the Council Bluffs Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA -- United States Attorney Marc Krickbaum announced on Wednesday, July 15, 2020, Michael Sutton, age 47, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 147 months in prison for conspiracy to distribute methamphetamine. Sutton was ordered to serve 10 years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.
The charge was the result of an investigation involving Sutton distributing a large quantity of methamphetamine in the Council Bluffs area. Local law enforcement executed a search warrant at Sutton’s residence in Council Bluffs where 724 grams of methamphetamine was found.
The investigation was conducted by the Council Bluffs Police Department, Southwest Iowa Narcotics Task Force, Iowa Division of Narcotics Enforcement, and the Omaha Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern
District of Iowa.Council Bluffs Man Sentenced for Conspiracy to Distribute FentanylRead the Press Release
COUNCIL BLUFFS, IA -- United States Attorney Marc Krickbaum announced on Wednesday, July 15, 2020, Larry Schneckloth, age 47, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 110 months in prison for Conspiracy to Distribute Fentanyl. Schneckloth was ordered to serve five years of supervised release to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund.
The charge was the result of an investigation regarding Scheckloth distributing controlled substances in the Council Bluffs area. Schneckloth sold fentanyl pills on two occasions in Sarpy County, Nebraska, and he was also linked to fentanyl pills located during an investigation at a hotel in Omaha, Nebraska. Law enforcement, through their investigation, attributed over 3000 fentanyl pills to Schneckloth. On December 7, 2019, Council Bluffs Police officers were dispatched to a motel in Council Bluffs where Schneckloth was arrested for a warrant and was found in possession of 95 grams of methamphetamine.
This investigation was conducted by the Council Bluffs Police Department, Southwest Iowa Narcotics Task Force, Iowa Division of Narcotics Enforcement, Omaha Police Department, and Sarpy County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Sentenced to 48 Months in Prison for Possessing Firearms and Possessing with the Intent to Distribute CocaineRead the Press Release
St. Louis, Missouri – Matthew Orasco, 40, of St. Louis, Missouri, was sentenced to 48 months in prison for the offenses of possessing with intent to distribute cocaine and felon in possession of a firearm. Orasco appeared in federal court today before U.S. District Judge John A. Ross.
According to court documents, on August 23, 2019, FBI agents executed a search warrant at Orasco’s St. Louis County residence in connection with an investigation of distribution of controlled substances and unlawful possession of firearms at the residence.
Pursuant to the search warrant, the FBI seized evidence of crimes from the residence, including distribution amounts of cocaine and other controlled substances, nine firearms, high capacity ammunition magazines, and more than 500 rounds of ammunition compatible with the seized firearms. The FBI also seized approximately $45,000 in U.S. currency, three cars, and two motorcycles from the residence. As part of the plea agreement, Orasco agreed to forfeit the money, cars, and motorcycles seized by the FBI, as those items either facilitated Orasco’s illegal activity, constituted proceeds of his illegal activity, or were acquired with such proceeds.
Prior to August 23, 2019, Orasco had been convicted of at least one felony crime and knew he had been so convicted at the time he possessed the firearms.
The Federal Bureau of Investigation investigated this case with the assistance of the St. Louis County Police Department. Assistant U.S. Attorney Jay Redd handled this case for the U.S. Attorney’s Office.
Commonwealth Edison Agrees to Pay $200 Million to Resolve Federal Criminal Investigation into Bribery SchemeRead the Press Release
CHICAGO — Commonwealth Edison Company (“ComEd”), the largest electric utility in Illinois, has agreed to pay $200 million to resolve a federal criminal investigation into a years-long bribery scheme, the U.S. Attorney’s Office in Chicago announced today.
The criminal investigation of ComEd is being resolved with a deferred prosecution agreement under which ComEd admitted it arranged jobs, vendor subcontracts, and monetary payments associated with those jobs and subcontracts, for various associates of a high-level elected official for the state of Illinois, to influence and reward the official’s efforts to assist ComEd with respect to legislation concerning ComEd and its business. The U.S. Attorney’s Office today filed a one-count criminal information in U.S. District Court in Chicago charging ComEd with bribery. Under the agreement, the government will defer prosecution on the charge for three years and then seek to dismiss it if ComEd abides by certain conditions, including continuing to cooperate with ongoing investigations of individuals or other entities related to the conduct described in the bribery charge.
The deferred prosecution agreement, which is subject to approval by the U.S. District Court, requires ComEd to pay a $200 million fine. A court date for the approval hearing has not yet been scheduled.
The bribery charge and deferred prosecution agreement were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer.
In addition to the monetary penalty and obligation to continue cooperating with government investigations, ComEd’s obligations under the deferred prosecution agreement include enhancing its compliance program and providing annual reports to the government regarding remediation and implementation of its compliance measures. If ComEd fails to completely perform or fulfill each of its obligations under the agreement during the three-year term, the U.S. Attorney’s Office can initiate prosecution of the charged offense.
ComEd’s admissions regarding the charged conduct are contained in a Statement of Facts attached to the deferred prosecution agreement. ComEd admitted that its efforts to influence and reward the high-level elected official – identified in the Statement of Facts as “Public Official A” – began in or around 2011 and continued through in or around 2019. During that time, the Illinois General Assembly considered bills and passed legislation that had a substantial impact on ComEd’s operations and profitability, including legislation that affected the regulatory process used to determine the electricity rates ComEd charged its customers. Public Official A controlled what measures were called for a vote in the Illinois House of Representatives and exerted substantial influence over fellow lawmakers concerning legislation affecting ComEd. The company admitted that it arranged for jobs and vendor subcontracts for Public Official A’s political allies and workers even in instances where those people performed little or no work that they were purportedly hired by ComEd to perform.
In addition to the jobs and contracts, ComEd further admitted that it undertook other efforts to influence and reward Public Official A, including by appointing an individual to ComEd’s Board of Directors at the request of Public Official A; retaining a particular law firm at the request of Public Official A; and accepting into the company’s internship program a certain amount of students who resided in the Chicago ward where Public Official A was associated.
To date, ComEd has provided substantial cooperation with the federal investigations. Per the terms of the agreement, the company will continue to provide such cooperation until all investigations and prosecutions arising out of the charged conduct are concluded.
Commerce City Resident Sentenced for Marijuana CultivationRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Zhiming Wang, age 26, a Chinese national and a lawful permanent residence of the U.S., was sentenced today to serve 14 months in federal prison, followed by 3 years on supervised release for maintaining a drug involved premises related to the cultivation of marijuana. The defendant lived in Commerce City, Colorado. The Denver Division of the DEA joined in today’s announcement.
According to the stipulated facts contained in Wang’s plea agreement, on January 31, 2019, agents with the DEA and partner law enforcement agencies, uncovered a marijuana grow with 809 marijuana plants in various stages of maturity after executing a search warrant at his Commerce City residence. Additionally, agents found approximately one-half pound of finished marijuana product in the residence.
It was determined that the defendant established the marijuana grow for the purpose of selling it for profit. Further investigation revealed that Mr. Wang resided at the Commerce City residence since November 2016. Electric power for the residence was subscribed to the defendant since November 1, 2016. Power usage records indicate that, during the time period from September 2017 to November 2018, the residence used between 2,505 kWh and 16,059 kWh per month, which was far in excess of the normal usage of between 500 kWh to 1,500 kWh for a residence. The power use revealed that the defendant was cultivating marijuana during a substantial number of months between September 2017 and November 2018.
“The cultivation of marijuana is a violation of federal law,” said U.S. Attorney Jason Dunn. “Mr. Wang grew marijuana in a residential neighborhood without concern for the consequences. He was caught and is now paying the price.”
“The case against Mr. Wang is yet another in a long list of examples of criminals using the Colorado state marijuana laws to hide their activities for profit,” said Special Agent in Charge Deanne L. Reuter. “DEA will continue to investigate and prosecute criminals and organizations who exploit conflicts between the law and take advantage of our communities.”
The prosecution of Mr. Wang is part of a significant operation into the production and distribution of black market marijuana, first announced on May 24, 2019. (https://www.justice.gov/usao-co/pr/forty-two-individuals-arrested-one-largest-black-market-marijuana-takedowns-colorado)
He appeared at the sentencing hearing free on bond, and was ordered to report to a facility designated by the Bureau of Prisons by August 21, 2020.
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-195. Mr. Wang was prosecuted by Assistant U.S. Attorney Aaron M. Teitelbaum.
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.