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17 July 2020
Citizen of the UK sentenced to 42 months in prison for illicit sexual contact with a teen-agerRead the Press Release
Seattle — A citizen of the United Kingdom, who most recently resided in Nevada, was sentencing today in U.S. District Court in Seattle to 42 months in prison for Engaging in Illicit Sexual Conduct in a Foreign Place. JOSEPH LAWSON SCOTT, 35, cultivated a friendship with a woman he met in an online gaming community, and groomed her teen-age daughter for sexual abuse. In April 2018, SCOTT visited the family in Canada and sexually assaulted the girl. At the sentencing hearing, U.S. District Judge James L. Robart called the crime “abhorrent” and “deeply troubling.”
According to records filed in the case, SCOTT was arrested in Nevada where he worked as a bail bondsman in November 2019. He was indicted for four counts of Engaging in Illicit Sexual Conduct in a Foreign Place. SCOTT pleaded guilty to one count of the indictment in January 2020.
SCOTT will likely be deported following his prison term. However, should he be allowed to remain in the United States, the Court ordered 10 years of supervised release to follow his incarceration.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by Homeland Security Investigations (HSI) and the Royal Canadian Mounted Police (RCMP).
The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Central Falls Man Indicted in Pawtucket ShootingRead the Press Release
PROVIDENCE – A Central Falls man arrested in connection with a shooting in Pawtucket in April 2020, which was caught on video and left a parked car riddled with bullets, was indicted by a federal grand jury today for allegedly being a felon in possession of ammunition.
It is alleged that Jayquan Parker, 25, fired at least 22 rounds into a parked vehicle and nearby garage and drove off. Based on information developed by Pawtucket Police and gleaned from surveillance videos recorded in the surrounding area of the shooting, Pawtucket Police identified Parker as the alleged shooter. He was located and arrested by the Fugitive Task Force and Pawtucket Police on April 19, and arraigned on multiple state charges.
According to court documents, prior to the shooting, Parker had been convicted and sentenced in Rhode Island state court on felony charges on multiple occasions. As a result, in addition to state charges filed against Parker in connection with the April 7 shooting, the Government filed a federal criminal complaint charging Parker with being a felon in possession of ammunition.
Today, a federal grand jury returned a one-count indictment charging Parker with being a felon in possession of ammunition, announced United States Attorney Aaron L. Weisman, Pawtucket Police Chief Tina Goncalves, United States Marshal Wing Chau, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case in U.S. District Court is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The Rhode Island Violent Fugitive Task Force is run by the U.S Marshals Service along with the Rhode Island State Police. The Task Force is comprised of members from the U.S. Marshals Service, the Rhode Island State Police, and the Warwick, Cranston, Coventry, East Providence, Middletown, Pawtucket, Portsmouth and Providence Police Departments who work full time to track down and apprehend the most violent and dangerous fugitives both within the United States and Internationally.
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Cedar Rapids Meth User and Domestic Abuser Sentenced to Prison for Unlawfully Possessing a GunRead the Press Release
A Cedar Rapids man who unlawfully possessed a gun was sentenced today to federal prison.
Bradley James Cable, age 34, from Cedar Rapids, Iowa, received the prison sentence after a November 15, 2019 guilty plea to possession of a firearm by a drug user and a person previously convicted of a misdemeanor crime of domestic violence.
Information disclosed at sentencing and in his plea agreement showed that
on April 11, 2019, Cedar Rapids police officers searched a home where Cable was residing. Officers located two shotguns, shotgun ammunition, methamphetamine residue, drug paraphernalia, and digital scales. Cable’s fingerprints were found on a glass bong, two shotgun cartridges, and one of the shotguns, which was also reported stolen. Cable admitted to handling the firearm at the residence and admitted he used methamphetamine recreationally. In 2004, Cable was convicted of domestic abuse assault, which prohibited him from possessing a firearm.
Cable was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cable was sentenced to ten months’ imprisonment, five months of which can be served as home confinement, and fined $3,000. Cable 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 Cedar Rapids 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-88.
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California Man Sentenced to Prison for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - United States Attorney Marc Krickbaum announced on July 16, 2020, James William Chvala, age 56, of California, was sentenced by United States District Court Chief Judge John A. Jarvey to 60 months in prison to be followed by four years of supervised release for possession with intent to distribute methamphetamine.
The sentencing was the result of a traffic stop on June 26, 2019, in Council Bluffs by the Council Bluffs Police Department. An investigation revealed Chvala had approximately one pound of methamphetamine hidden in his vehicle and had obtained the methamphetamine from a source in California and was transporting it for distribution in Illinois. It was learned that Chvala had made multiple trips from California to deliver methamphetamine in Illinois. Chvala pleaded guilty to possession with intent to distribute methamphetamine on January 24, 2020.
The investigation was conducted by the Council Bluffs Police Department and Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Buffalo Woman Sentenced for Allowing Her Former Boyfriend to Write Fraudulent Prescriptions for AdderallRead 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 Phousavath Luangrath, 30, of Buffalo, NY, who was convicted of misprision of a felony, was sentenced to serve one year probation by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay restitution in the amount of $572.20.
Assistant U.S. Attorneys Joshua A. Violanti and Timothy C. Lynch, who handled the case, stated that between February 2 and December 21, 2017, the defendant allowed co-defendant James T. Keefe, with whom she was involved in an intimate relationship, to write fraudulent prescriptions for controlled substances using her information. Keefe was a New York State licensed physician and a DEA Registrant. Keefe wrote the fraudulent prescriptions so that he could receive Adderall for personal use. The prescriptions were issued not for a legitimate purpose and were outside the usual course of professional practice. Luangrath was issued 10 prescriptions in her own name by Keefe for Schedule II controlled substances.
Keefe was previously convicted of conspiring to possess with intent to distribute, and to distribute, oxycodone, hydrocodone, and amphetamine, and is awaiting sentencing.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
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Brevard, N.C. Woman Is Sentenced to Prison for Selling Fake Title Insurance PoliciesRead the Press Release
ASHEVILLE, N.C. – U. S. District Judge Martin Reidinger sentenced Ginger Lynn Cunningham, 39, formerly of Hendersonville and currently residing in Brevard, to 14 months in prison yesterday, for selling fake title insurance policies, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Cunningham was ordered to serve three years under court supervision and to pay $412,344 as restitution.
According to information contained in filed court documents and presented in court during Cunningham’s sentencing hearing, Cunningham owned and operated Blue Ridge Title Company, an independent title insurance agency located in Buncombe County. Beginning in February 2015, Cunningham became an authorized independent agent for Commonwealth Land Title Insurance Company (Commonwealth). As an authorized agent, Cunningham’s title agency sold title insurance policies underwritten by Commonwealth and collected premium payments during real estate closings. Under the agreement with Commonwealth, Cunningham’s Blue Ridge Title Company would keep 80% of the premium payments, and the remaining 20% would be sent to Commonwealth. On or about March 21, 2016, Commonwealth terminated their agreement with Blue Ridge Title Company, because Cunningham failed to submit premium payments as required to Commonwealth. At the time of termination, Blue Ridge Title Company owed Commonwealth in excess of $25,000 in premium payments.
According to court documents, from March 2016 until October 2017, Cunningham continued to represent herself and Blue Ridge Title Company to be an independent agent of Commonwealth, despite knowing that she no longer had any relationship with Commonwealth, and continued to sell fictitious title insurance policies and collect premium payments. The buyers of these bogus title insurance policies did not know that they were not underwritten by any insurance provider, and thus had no value. Court records show that Cunningham further deceived her customers by drafting official looking, but fictitious, policy documents that bore the name of Commonwealth Land Title Insurance Company and fabricated policy numbers. Cunningham kept 100% of the premium payments associated with these worthless policy sales. As court records show, during the relevant time period, Cunningham sold at least 973 counterfeit title insurance policies and received at least $412,344 in premiums for the bogus policies. On October 28, 2019, Cunningham pleaded guilty wire fraud.
In making today’s announcement U.S. Attorney Murray commended the U.S. Department of Housing and Urban Development, Office of Inspector General, the Federal Housing Finance Agency, Office of Inspector General, and the North Carolina Department of Insurance for their investigation of this case.
Assistant United States Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, prosecuted the case for the United States.
Blair County Man Charged with Unlawful Possession of Multiple DrugsRead the Press Release
PITTSBURGH – A resident of Blair County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on July 8, named Jesse Daniel Ginter, 39, of Williamsburg, PA 16693, as the sole defendant.
According to the Indictment, on or about March 12, 2018, Ginter unlawfully possessed with intent to distribute furanyl fentanyl, methoxyacetyl fentanyl, cyclopropyl fentanyl, U-47700, AMB-Fubinaca, carfentanil, fentanyl, marijuana, cocaine, and methamphetamine. The indictment also seeks the forfeiture of multiple firearms,
For Ginter’s offense, the law provides for a maximum total sentence of 20 years imprisonment, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service; U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations; Federal Bureau of Investigation; and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment- Indictment
Armed Career Criminal Charged with Illegal Possession of A Firearm, CocaineRead the Press Release
United States Attorney Erica H. MacDonald today announced a three count federal indictment charging KEEGAN JAMAAL ROLENC, 28, with being a felon in possession of a firearm, possession with intent to distribute cocaine, and carrying a firearm during and in relation to a drug trafficking crime. ROLENC made his initial appearance before Magistrate Judge Katherine M. Menendez in U.S. District Court. ROLENC was ordered to remain in custody pending a formal detention hearing, which is scheduled for Wednesday, July 22, at 2:00 p.m.
According to the allegations in the indictment, on or about February 2, 2020, ROLENC was found to be in possession of a Beretta model BU9 Nano 9mm semi-automatic pistol and a distributable amount of cocaine. Because ROLENC has prior felony convictions for third-degree controlled substance possession, drive-by shooting, second-degree assault, fifth-degree drug possession and third-degree assault, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
Defendant Information:
KEEGAN JAMAAL ROLENC, 28
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm (Armed Career Criminal), 1 count
- Possession with intent to distribute cocaine, 1 count
- Carrying a firearm during and in relation to a drug trafficking crime, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
16 July 2020
West L.A. Man Charged with Fraudulently Obtaining about $9 Million in COVID-Relief Loans, Some of Which He Gambled Away in Las VegasRead the Press Release
LOS ANGELES – A resident of the Beverly Grove neighborhood of Los Angeles was ordered held without bond this afternoon after being arrested on federal charges alleging he fraudulently obtained millions of dollars in Paycheck Protection Program (PPP) loans, some of which he used on gambling excursions to Las Vegas and transferred to his stock trading accounts.
Andrew Marnell, 40, was arrested this morning by federal authorities. Marnell made his initial court appearance this afternoon in United States District Court in Los Angeles, where he was ordered detained pending a hearing on Tuesday.
A criminal complaint unsealed in court this afternoon charges Marnell with one count of bank fraud and alleges he obtained more than $8 million in PPP loans through applications to insured financial institutions, and others, on behalf of different companies. During today’s court hearing, prosecutors said they now believe Marnell received approximately $9 million in fraudulent loans – a number that could rise as the investigation continues.
The affidavit in support of the complaint alleges that Marnell submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ business operations and payroll expenses. The affidavit also alleges that Marnell, often using aliases, submitted fake and altered documents, including bogus federal tax filings and employee payroll records.
The complaint further alleges that Marnell then transferred millions of dollars from the fraudulently obtained loan proceeds to his brokerage accounts to make risky stock market bets. The affidavit also outlines how Marnell spent hundreds of thousands of dollars in fraudulently obtained loan proceeds at the Bellagio Hotel & Casino and other gambling establishments as recently as last weekend.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized more than $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The bank fraud count alleged in the complaint against Marnell carries a statutory maximum sentence of 30 years in federal prison.
This case is being investigated by the Federal Housing Finance Agency – Office of Inspector General, the FBI, the Federal Deposit Insurance Corporation – Office of Inspector General, IRS Criminal Investigation, the Treasury Inspector General for Tax Administration, and the Small Business Administration Office of Inspector General. The California Department of Justice – Bureau of Gambling Control provided assistance in the investigation.
This case is being prosecuted by Assistant United States Attorney Kerry Quinn of the Major Frauds Section and DOJ Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Weakley County Man Sentenced to 23 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN – Keith Norris, 32, has been sentenced to 280 months in federal prison for conspiracy to distribute methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, in 2018, the Weakly County Sheriff’s Department (WCSD) in Dresden, Tennessee, began an investigation into an ongoing drug trafficking organization led by Keith Norris. The investigation included search warrants, traffic stops, statements of cooperators, and phone records. Weakley County investigators received information about Norris distributing methamphetamine to five other co-defendants. During a search of Norris’s residence on April 26, 2018, investigators recovered methamphetamine and over $1,300 in currency.
On June 14, 2018, investigators again executed a search warrant on Norris’s residence. Norris was seen attempting to destroy the drug evidence; however, 4.5 ounces of methamphetamine was recovered during the search. Norris was arrested, claimed ownership of all the narcotics recovered, and allowed agents to search his cell phone. Based on his statement, Norris was held accountable for distributing 296 ounces of actual methamphetamine, which equates to over 4.5 kilograms of actual methamphetamine.
On July 13, 2020, U.S. District Court Chief Judge Thomas Anderson sentenced Norris to 280 months in federal prison followed by 5 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Drug distribution conspiracies are NOT victimless crimes. Methamphetamine causes significant human pain, loss, and destruction in countless ways, including addiction, injuries, and deaths. Individuals who distribute harmful drugs into our rural communities can no longer hide, and those who choose to engage in such lawlessness will pay the price with a long prison sentence."
This is the second sentencing in a case involving multiple defendants, including Keith Norris, Robert Thomas, Charles Settles, Justin Tyler Bynum and Solomon Clay on charges of conspiracy to distribute actual methamphetamine. On August 6, 2019, Robert Thomas was sentenced to 108 months in federal prison followed by 5 years supervised release for his role in the conspiracy. https://www.justice.gov/usao-wdtn/pr/martin-tennessee-man-sentenced-108months-imprisonment-conspiracy-distribute
This case was investigated by the Weakly County Sheriff’s Department and Martin Police Department.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Waukesha bar owner sentenced to 15 years for Arson and related chargesRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 16, 2020, Brian Whitton (age: 42) of Waukesha, Wisconsin, was sentenced to 15 years in federal prison. Whitton was found guilty following a jury trial last February of arson of a commercial building, two counts of mail fraud, arson to commit another felony offense, and making a false statement to law enforcement agents in violation of Title 18, United States Code, Sections 844(i), 844(h), 1001, and 1341.
The jury found that Whitton intentionally set fire to his business, a bar called “The Stage Off Main” located at 854 Martin Street in Waukesha, Wisconsin, on March 25, 2017. The evidence at trial revealed that the fire originated in the basement of the building and included surveillance video that captured Whitton quickly exiting the basement, emptying the cash registers, and leaving the bar approximately 18 seconds before smoke started to fill the first floor of the building.
The fire was set around 3:00 a.m. when the upper apartment unit in the building was occupied by Whitton’s two tenants and their guest. Fortunately, no citizens or first responders were injured as a result of the fire but the building sustained damage. Whitton, who was experiencing financial difficulty at the time, submitted a fraudulent proof of loss claim to his insurance carrier, United States Liability Insurance Company, LLC (“USLI”), in which he falsely claimed that the fire was the result of an accident. Whitton also repeatedly lied about his activities immediately preceding the fire to investigators.
Senior District Judge William C. Griesbach characterized arson as a “horrendous crime” and noted, “This is behavior that no people of civilized society can tolerate.” Whitton will also be required to spend 3 years on supervised release following his prison sentence and was ordered to pay $161,833.07 in restitution to USLI.
United States Attorney Krueger stated, “This substantial prison sentence should serve as a warning to anyone who thinks arson is acceptable in any circumstance. The United States Attorney’s Office commends the dedicated work of our law enforcement partners in holding Whitton accountable.”
The case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Waukesha Police Department and the Waukesha Fire Department. The case was prosecuted by Assistant United States Attorneys Kelly B. Watzka and Timothy W. Funnell.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Waterloo Gang Affiliate Sentenced for Weapon OffenseRead the Press Release
A man who hid a loaded firearm in the HVAC ductwork of a relative’s home in Waterloo, Iowa, was sentenced today to federal prison.
Keyion Smith-Allen, age 20, from Cedar Rapids, Iowa, received the prison term after a February 21, 2020 guilty plea to possession of a firearm by a drug user.
In a plea agreement, Smith-Allen admitted he was in possession of a semi-automatic .45 caliber handgun which was found in the basement of a relative’s residence in Waterloo. He further admitted he had purchased the handgun in Cedar Rapids, Iowa, and transported it to Waterloo. He admitted to using both ecstasy and marijuana at the time he possessed the handgun. Testimony at sentencing showed that Smith-Allen is an associate of multiple hybrid Waterloo gangs falling under a larger group referred to as “400.”
Smith-Allen was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Smith-Allen was sentenced to 10 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.
Smith-Allen was released on the bond previously set and was immediately remanded to the custody of the United States Marshals following the sentencing hearing.
The case was prosecuted by Assistant United States Attorney Liz Dupuich 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. 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 20-CR-2002-CJW.
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Violent felon facing federal firearm chargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Jeremy Bullock, 43, Indianapolis, Ind. was charged with a previously convicted felon in possession of a firearm and possession of an unregistered firearm.
"This is exactly the type of crime and arrest that Project Safe Neighborhoods (PSN) is designed for." said Minkler. "Making neighborhoods safer by focusing law enforcement resources on the most violent in society. Mr. Bullock has a history of violent behavior which has continued by his actions of terrorizing his neighbors by firing gunshots in the neighborhood in which he lives. This is another great example of the exceptional work by the special agents and officers assigned to the CGIC (Crime Gun Intelligence Center)."
Since January 2020, the Indianapolis Metropolitan Police Department had received several calls about gunshots being fired in and around the area of 3134 East Sumner Avenue, Indianapolis. Officers and special agents from the Crime Gun Intelligence Center began an investigation.
On July 1, 2020, with the assistance of the IMPD SWAT Team, officers and special agents from CGIC executed a search warrant at 3134 East Sumner Avenue, Indianapolis. Two
individuals were located after they exited the residence. One of the persons was Jeremy Bullock. Mr. Bullock has numerous prior felony convictions, to include murder, carjacking, burglary, resisting law enforcement, and possession of a firearm by a serious violent felon.
While searching the residence, investigators located a handgun, sawed off shotgun, a semi-automatic rifle, ammunition, suspected marijuana, and narcotic paraphernalia.
This case was the result of an investigation by the Alcohol, Tobacco, Firearms, and Explosives, and the Indianapolis Metropolitan Police Department.
According to Assistant United States Attorney Michelle Brady who is prosecuting this case for the government, Bullock faces up to life imprisonment, 5 years of supervised release, and a maximum fine of $250,000.
A charge is not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its public safety challenges. This demonstrates the office’s firm commitment to target, investigate, and prosecute defendants committing violent crimes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2, 2.3.
Upshur County man admits to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Thomas Arthur Cicalese, of Buckhannon, West Virginia, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Cicalese, age 69, pled guilty to one count of “Possession with Intent to Distribute 50 grams or more of Methamphetamine.” Cicalese admitted to distributing 50 grams or more of methamphetamine in March 2019 in Upshur County.Cicalese faces not less than ten years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Uniontown Medical Group Office Manager Pleads Guilty in a Nearly $1M Embezzlement SchemeRead the Press Release
PITTSBURGH, PA - A resident of Fayette County, PA, pleaded guilty in federal court to charges of Wire Fraud and False Income Tax Returns, United States Attorney Scott W. Brady announced today.
Cynthia L. Demniak, 60, of Leckrone, PA, pleaded guilty to 11 counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Demniak, in her position as office manager for Grandview Medical Management located in Uniontown, PA, between 2013 and 2018 embezzled approximately $926,940 from her employer, which she used for personal expenses and to satisfy a gambling addiction. The court was also advised that for tax years 2013 through 2018, Demniak materially underreported the embezzled income from Grandview Medical Center on her federal income tax returns, totaling nearly $270,426 in restitution owed to the IRS.
Judge Fischer scheduled sentencing for November 19, 2020. The law provides for a total sentence of 118 years in prison, a fine of $2,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation and United States Postal Inspection Service are conducted the investigation that led to the prosecution of Cynthia L. Demniak.
UAE Company Admits to North Korean Sanctions Violations and Defrauding the U.S. Goverment, Agrees to Pay $665,000Read the Press Release
WASHINGTON – Essentra FZE Company Limited (“Essentra FZE”), a global supplier of cigarette products that is incorporated in the United Arab Emirates (“UAE”), has agreed to pay a $665,112 fine and enter into a deferred prosecution agreement with the Justice Department for conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and defrauding the United States in connection with evading sanctions on North Korea. Today’s public filing against Essentra FZE is the first ever DOJ corporate enforcement action for violations of these regulations. Essentra FZE has also entered into a settlement agreement with the Treasury Department’s Office of Foreign Assets Control (“OFAC”).
Assistant Attorney General John C. Demers for the Justice Department’s National Security Division, Acting U.S. Attorney Michael R. Sherwin of the District of Columbia, and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.
In entering the deferred prosecution agreement, Essentra FZE admitted and accepted responsibility for its criminal conduct and to pay a fine. Essentra FZE also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.
“The sanctions the United States has imposed on the North Korean regime are of the utmost importance to the national security of our nation, and the enforcement of U.S. sanctions and related financial criminal laws is a major priority of the National Security Division” said Assistant Attorney General for National Security John C. Demers. “Essentra FZE devised a criminal scheme to use a deceitful web of front companies and financial entities to manipulate U.S. banks into processing prohibited U.S. dollar transactions for the benefit of North Korea. The company has now committed to working with our prosecutors to bring those individuals responsible for these acts to justice.”
“Essentra FZE undermined the integrity of our financial system and harmed our national security by deliberately providing North Korea with coveted access to the U.S. economy,” said Acting U.S. Attorney Sherwin. “Foreign companies transacting through the U.S. financial system or overseas branches of U.S. banks must comply with U.S. sanctions or else face punishment.”
"This is an important case as it demonstrates the FBI will not hesitate to hold businesses accountable for violating sanctions involving North Korea," said Alan E. Kohler, Jr, Assistant Director of the FBI's Counterintelligence Division. "We will aggressively go after enterprises using front companies, false documents, or other illegal methods to evade sanctions. We want North Korea and private industry to know that efforts to dodge our laws will never be tolerated as business as usual."
“Today’s agreement shows that attempts to skirt U.S. sanctions, no matter how complicated the trail or how complex the scheme, will be discovered and met with serious consequences,” said Jennifer Boone, Special Agent in Charge of the FBI’s Baltimore Division. “I want to thank the FBI team. This result is a testament to their hard work.”
U.S. sanctions prevented correspondent banks in the United States and overseas branches of U.S. banks from processing wire transfers on behalf of customers located in North Korea. According to admissions and court documents, beginning in at least October 2017 and continuing until at least December 2018, Essentra FZE deceived banks in the U.S. and in the U.A.E. into processing transactions for a North Korean tobacco company. Essentra FZE and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus, as well as falsified shipping records.
Assuming Essentra FZE’s continued compliance with the deferred prosecution agreement, the government has agreed to defer prosecution for a period of three years, after which time, the government would seek to dismiss the charges.
U.S. Attorney Wrigley Announces a Minneapolis, MN, Man was sentenced to 15 Years in Prison for Narcotics Trafficking and Possession of Multiple Firearms by a Prohibited PersonRead the Press Release
Bismarck – United States Attorney Drew Wrigley announced that Richard Thomas Sims, Age 31 of Minneapolis, MN, has been sentenced to serve 15 years in federal prison for Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances and Possession of Firearms by a Prohibited Person. Sims pled guilty to the offenses on December 3, 2019, and was sentenced by United States District Court Judge Daniel Hovland on July 15, 2020. Judge Hovland further sentenced Sims to 3 years of supervised release and ordered him to pay $200.00 Special Assessment. Sims was ordered to forfeit 13 firearms seized during the investigation.
"This defendant was running a drug dealer’s equivalent of a department store, such was the variety of his product offerings," said US Attorney Drew Wrigley, "combined with his illegal arsenal of firearms, the defendant posed a significant risk to public safety and is headed to a cell he very much earned."
From January 2017 through April of 2019, Sims conspired with others to distribute methamphetamine, heroin, and cocaine in the Bismarck, ND area. In addition, during the drug conspiracy, Sims was illegally in possession of several firearms, though his prior felony conviction made it unlawful for him to do so. During a search of Sims residence, drugs, drug paraphernalia, and evidence of a drug distribution operation were found in different areas the residence. A total of 375.5 grams of methamphetamine, 36 grams of pink methamphetamine, 120 grams of marijuana, 108 MDMA pills, 20 grams of cocaine, two LSD blotter papers, and 7.5 OxyContin pills with no prescription and two pistols were found during the search. A search of a rented storage unit also revealed 2,275 grams of methamphetamine with packaging, approximately 27 grams of heroin, two AR-15 rifles, one .223 caliber that was reported stolen to the Stillwater County Sheriff’s Department in Montana, and 13 other firearms.
This case was investigated by the Bismarck Police Department, North Dakota Bureau of Investigation, and Department of Homeland Security Investigations and was prosecuted by Assistant United States Gary Delorme.
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Two Sentenced for Concealing Hundreds of Thousands of Dollars in Corporate Contributions to U.S. Senate CampaignRead the Press Release
FRANKFORT, Ky. – Two men were sentenced today to 21 months in federal prison and 3 years probation with 9 months served in a halfway house, respectively, for orchestrating a multi-year scheme to funnel more than $200,000 in secret, unlawful corporate contributions into a campaign for United States Senate and for causing the concealment of those contributions from the Federal Election Commission (FEC).
Gerald G. Lundergan, 73, of Lexington, Kentucky, was sentenced to 21 months in prison, to be followed by two years of supervised release, and ordered to pay a fine of $150,000. Co-defendant Dale C. Emmons, 67, of Richmond, Kentucky, was sentenced to three years probation, with nine months served in a halfway house, and ordered to pay a fine of $50,000. The defendants were sentenced before the Honorable Gregory F. Van Tatenhove of the U.S. District Court for the Eastern District of Kentucky.
On Sept. 12, 2019, following a five-week trial, a jury convicted Lundergan of one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The jury convicted Emmons of one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements and two counts of causing the falsification of documents with the intent to obstruct and impede.
According to the evidence presented at trial, Lundergan used the funds of S.R. Holding Company Inc. (S.R. Holding), a company he owned, to pay for services provided by consultants and vendors to a campaign for a U.S. Senate seat in the 2014 election cycle. The candidate for this seat was Lundergan’s daughter, Alison Lundergan Grimes. The evidence established that Lundergan caused the issuance of a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls and campaign consulting, between July 2013 and December 2015.
The corporate contributions also included monthly payments from S.R. Holding to Emmons and his company during this period. Emmons provided services to the campaign and sought and received compensation from Lundergan and S.R. Holding. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Those services included recorded telephone calls, technological support services, and other campaign-related expenses.
The evidence established that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments caused the campaign unwittingly to file false reports with the FEC because the reports failed to disclose the source and amount of the corporate contributions.
"This case should underscore the fundamental principle that breaking the law has consequences. The defendants circumvented the campaign finance laws, by knowingly making over $200,000 in unlawful corporate campaign contributions and causing false filings to be submitted to the Federal Election Commission. These are important laws that regulate the integrity of our elections. A jury convicted them, and the Court has now sentenced them for their crimes,” said Robert M. Duncan Jr., U.S. Attorney for the Eastern District of Kentucky. "I commend the FBI for their thorough investigation, and the members of the prosecution team for their dedication to enforcing the law and in presenting this important case."
"Kentuckians place a great deal of trust in the political process. Regardless of the perpetrator’s position or status, when that trust is broken by corrupt individuals, law enforcement has a duty to protect the people's interests. Today's sentence demonstrates that no one is above the law and we will rigorously pursue anyone who tries to undermine the strength of our democracy." said Special Agent in Charge Robert Brown, FBI Louisville Field Office.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, and Special Agent in Charge James Robert Brown Jr. of the FBI’s Louisville Field Office made the announcement.
The FBI investigated the case. Deputy Chief Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith of the Eastern District of Kentucky are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Two Dayton men sentenced to federal prison time for possessing child pornographyRead the Press Release
DAYTON – Two Dayton men have been sentenced this week in federal court to serve more than five years in prison for possessing child pornography.
David Dwayne Weaver, 40, of Dayton, was sentenced in U.S. District Court today to 90 months in prison for possessing more than 1,000 images and more than 1,000 videos of child pornography.
Zachary Marra, 33, of Dayton, was sentenced on July 13 to 60 months in prison for possessing 223 videos and 213 still images of child pornography on his phone.
Weaver and Marra both received child pornography through the Kik messaging app.
FBI agents began investigating Weaver after receiving information that the subject of a child pornography investigation by the Broward County, Florida Sheriff’s Office had traded child pornography files with Weaver via text messages. Multiple tips were also received regarding Weaver’s user of various Google accounts to store and trade child pornography files.
Weaver also used Kik messenger, Telegram messenger, and email to communicate with others about the sexual exploitation and sexual abuse of children. He used the Tumblr social media site to meet a number of his child pornography trading partners and various Dropbox and Google accounts to store his child pornography files.
Court documents detail that Weaver’s pornography collection included toddler-aged victims.
According to court documents, Homeland Security agents received a tip from an online messaging service and interviewed Marra in March 2019. Marra told agents he had traded images with other users of the messaging service, but had deleted the images from his phone. Agents obtained a search warrant for his phone and determined that between June 2018 and March 2019, he had possessed and viewed 223 videos and 213 still images depicting the sexual abuse of prepubescent children. Marra pleaded guilty in December 2019 to one charge of possession of child pornography.
Weaver and Marra’s sentences include an order that each man pay thousands of dollars in restitution to the identified victims in their cases. While the defendants are on supervised release following their prison terms, they must register as a sex offender anywhere that they live, work or go to school.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge over Michigan and Ohio, Homeland Security Investigations (HSI); and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentences imposed by Senior U.S. District Court Judge Walter H. Rice. Assistant Deputy Criminal Chief Laura I. Clemmens is representing the United States in this case.
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Three arrested, charged after 80 kilograms of cocaine seized from used car dealerRead the Press Release
CINCINNATI – Three men face federal drug trafficking charges after law enforcement officers seized almost 80 kilograms of cocaine from the Dayton used car dealership one of them co-owns.
A federal indictment charges Jerry Timothy Vaughn Jr., 40 of Dayton, and David Scott, 41, of Dayton with narcotics conspiracy, distribution of a controlled substance and possession with intent to distribute a controlled substance. It was unsealed after Scott’s arrest on July 1. A Cincinnati man, Shannon Jamar Higgins Sr., 47, pleaded guilty on July 14 to one count of possession with intent to distribute a controlled substance.
According to court documents, DEA agents and Cincinnati police officers investigating cocaine trafficking in Cincinnati determined that Higgins was traveling to Luxury Sports Auto Sales in Dayton to purchase cocaine from Vaughn and Scott, who is the co-owner of the used car dealership.
Investigators executed a federal search warrant at Luxury Sports in January and found approximately 79,970 grams of cocaine in a metal cylinder. They also searched Vaughn’s residences and found cash, more cocaine and a firearm.
Narcotics conspiracy and possession with intent to distribute more than 500 grams of cocaine is punishable by a term of imprisonment of at least five up to forty years. Distribution of a controlled substance is punishable by up to 20 years imprisonment and possession with intent to distribute five kilograms or more of cocaine is punishable by a term of imprisonment of at least ten years up to life.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Cincinnati Police Chief Eliot K. Isaac announced the plea and the indictment. They also acknowledged the assistance provided by the Ohio State Highway Patrol and the Trotwood Police Department. Assistant U.S. Attorney Ashley Brucato and OCDETF Deputy Criminal Chief Christy Muncy are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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If you have media questions, contact Jennifer Thornton at [email protected].
Three Men from Hope Idaho Arrested for Conspiracy to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE - Larry Junior Hillbroom, 36, Morgan Kenney, 34, and Sean Robert Wathen, 48, all of Hope, Idaho, were arrested on July 15, 2020, on federal charges of conspiracy to distribute methamphetamine, U.S. Attorney Bart M. Davis announced today. The charges stem from a June 16, 2020 indictment filed in U.S. District Court by a federal grand jury in Coeur d’Alene.
The indictment alleges that beginning in the summer of 2015 and continuing to February 2016, Hillbroom, Kenney, and Wathen conspired to distribute methamphetamine. The federal methamphetamine conspiracy charge is punishable by up to 20 years in federal prison, a maximum fine of $1 million, and at least three years of supervised release.
Hillbroom, Kenney, and Wathen are scheduled for their initial appearance tomorrow, July 17, 2020, at the federal courthouse in Coeur d’Alene. During the initial appearance, a trial date will be set and the court will address the custody status of each defendant.
This case was investigated by the Drug Enforcement Administration, Bonner County Sheriff's Office, Bureau of Indian Affairs, Coeur d'Alene Police Department, Idaho State Police, U.S. Border Patrol, and U.S. Marshals Service.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. 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. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Alabama U.S. Attorneys Warn of Misleading Information and Fake Documents Regarding Face Mask ExemptionsRead the Press Release
Montgomery, Alabama – The three United States Attorneys in Alabama join together to warn citizens that cards and other documents bearing the Department of Justice seal and claiming that individuals are exempt from face mask requirements are fraudulent.
Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the Americans with Disabilities Act (ADA) due to the COVID-19 pandemic. Many of these notices include the use of the Department of Justice seal and the Civil Rights Division’s ADA Information Line phone number.
As stated in a previous alert, the Department of Justice did not issue and does not endorse them in any way. The public should not rely on the information contained in these postings.
The ADA does not provide a blanket exemption to people with disabilities from complying with legitimate safety requirements necessary for safe operations. The public can visit ADA.gov or call the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY) for more information.
The Department of Justice Announces Takedown of Key MS-13 Criminal LeadershipRead the Press Release
WASHINGTON – Today, President Donald J. Trump and Attorney General William P. Barr announced significant cases related to Joint Task Force Vulcan (JTFV), an initiative launched in August 2019 aimed at disrupting, dismantling, and ultimately, destroying MS-13.
President Trump and Attorney General Barr announced a number of significant cases associated with JTFV, including the first time an MS-13 member has been charged with terrorism related offenses, a coordinated multi-district takedown of the leadership of the Hollywood clique of MS-13, and the Attorney General’s decision to seek the death penalty against an MS-13 defendant.
“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13’s capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”
“Today’s announcements are the result of tremendous teamwork and coordination between prosecutors and law enforcement officers across the United States and Central America,” stated JTFV Director John Durham. “MS-13 is a violent transnational criminal organization, whose criminal activities respect no boundaries. The only way to defeat MS-13 is by targeting the organization as a whole, focusing on the leadership structure, and deploying a whole-of-government approach against a common enemy.”
“The Eastern District of Texas is proud to support Joint Task Force Vulcan, and we are happy to lend one of our finest prosecutors to the effort,” said U.S. Attorney Stephen J. Cox. “Our district is fully committed to the President’s goal of disrupting and dismantling MS-13.”
In an indictment unsealed yesterday, Melgar Diaz was charged in the Eastern District of Virginia with conspiring to provide material support to terrorists; conspiring to kill or maim persons overseas; conspiring to commit acts of terrorism transcending national boundaries; conspiring to finance terrorism; and conspiring to engage in narco-terrorism, in addition to racketeering conspiracy and drug trafficking. This is the first time that an MS-13 member has been charged with terrorism related offenses.
Alexi Saenz was indicted in 2017 in the Eastern District of New York. It is alleged that between 2016 and 2017 he committed seven murders: the Jan. 28, 2016, murder of Michael Johnson; the April 29, 2016, murder of Oscar Acosta; the Sept. 13, 2016, murders of Kayla Cuevas and Nisa Mickens; the Oct. 10, 2016, murder of Javier Castillo; the Oct. 13, 2016, murder of Dewann Stacks; and the Jan. 30, 2017, murder of Esteban Alvarado-Bonilla. Two of the victims were Brentwood high school students killed with a machete and baseball bat. The Attorney General has filed a Notice of Intent to Seek the Death Penalty for Saenz.
In a 24 count indictment unsealed yesterday, the Eastern District of New York, charged eight MS-13 members, including leaders of the East Coast Hollywood Program, with Racketeer Influenced and Corrupt Organization (RICO) and Violent Crimes in Aid of Racketeering (VICAR) charges related to six murders, two attempted murders, kidnapping, narcotics and related firearms offenses.
In a 21-count indictment unsealed yesterday in the District of Nevada, 13 MS-13 members, including leaders of the “Hollywood Locos” clique and “Los Angeles Program,” were charged with various offenses including Continuing Criminal Enterprise (CCE), narcotics distribution and weapons charges.
In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
The JTFV has successfully implemented the whole-of-government approach to law enforcement relating to MS-13; increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras and Guatemala; designated priority MS-13 programs, cliques and leaders, who have the most impact on the U.S., for targeted prosecutions; and coordinated significant MS-13 indictments in United States Attorney’s Offices across the country, such as the Eastern District of New York, the Eastern District of Virginia, and the District of Nevada.
Federal prosecutors from the Department of Justice’s National Security Division and the Criminal Division, as well as 10 United States Attorney’s Offices have been assigned to serve JTFV in full-time capacities: the Eastern District of New York; the Eastern District of Virginia; the District of Nevada; the Southern District of California; the District of Massachusetts; the Northern District of Ohio; the District of New Jersey; the Eastern District of Texas; the District of Utah; and the District of Columbia. In addition, all Department of Justice law enforcement agencies are involved in the effort – the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the Bureau of Prisons. The Department of Homeland Security’s Homeland Security Investigations has also played a critical role in JTFV.
Attorney General Barr would also like to thank Attorney General Raul Melara of El Salvador for the assistance of his office, as well as investigators from El Salvador’s Policia Nacional Civil, Centro Antipandilla Transnacional unit for their assistance.
Statement by Department of Justice Spokesperson Kerri Kupec on the Execution of Wesley Ira PurkeyRead the Press Release
Department of Justice Spokesperson Kerri Kupec has issued the following statement:
“This morning, Wesley Ira Purkey was executed at USP Terre Haute in accordance with the death sentence imposed by a federal district court in 2004. Purkey was pronounced dead at 8:19 a.m. EDT by the Vigo County Coroner.
Purkey violently raped and murdered 16-year-old Jennifer Long, and then dismembered, burned, and dumped the young girl’s body in a septic pond. He also was convicted in state court for using a claw hammer to bludgeon to death 80-year-old Mary Ruth Bales. On November 5, 2003, a jury in the U.S. District Court for the Western District of Missouri found Purkey guilty of kidnapping a child resulting in death, and he was sentenced to death on January 23, 2004.
After many years of litigation following the death of his victims, in which he lived and was afforded every due process of law under our Constitution, Purkey has finally faced justice. The death penalty has been upheld by the federal courts, supported on a bipartisan basis by 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.”
St. Catherines Man Charged with Bulk Cash Smuggling for Attempting to Cross the Border with More Than $200,000Read 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 Mhamood Fadl Salih Khairi, 28, of St. Catherines, Ontario, Canada, was arrested and charged by criminal complaint with bulk cash smuggling. The charge carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that according to the complaint, on July 15, 2020, the defendant attempted to enter Canada at the Lewiston Bridge Port of Entry while driving a commercial tractor trailer bearing Ontario license plates. Khairi told a Customs and Border Protection (CBP) officer that he was returning to Mississauga, Ontario, Canada from the Boston, Massachusetts area with a load of copper wire. When asked how much money he was traveling with, the defendant responded “$300.00 total U.S. and Canadian.” Khairi also indicated on a CBP Customs Declaration form that he was not carrying over $10,000.
Subsequently, a CBP K-9 narcotics dog ran the commercial tractor trailer in its entirety for the presence of illegal narcotics. The K-9 alerted to the presence of narcotics near the rear of the cab of the tractor trailer, at which time the defendant was sent to secondary inspection. During a manual inspection of the vehicle's cab as well as the trailer, CBP officers located a large white and green gift bag. Inside were 10 vacuum sealed bundles of cash, totaling $207,500 in United States currency.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being detained.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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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Sioux Falls Man Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession of Firearms by Prohibited Person was sentenced on July 13, 2020, by U.S. District Judge Karen E. Schreier.
Brian Christopher Jensen, age 37, was sentenced to three years in federal prison, followed by three years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Jensen was indicted for Possession of Firearms by Prohibited Person by a federal grand jury on January 7, 2020. He pled guilty on April 20, 2020.
On or about the 23rd day of December, 2019, in the District of South Dakota, Jensen, knowing that he was a convicted felon, illegally possessed fourteen guns and more than 800 rounds of ammunition that had been shipped and transported in interstate and foreign commerce.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent 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. For more information about Project Guardian, please see: https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sioux Falls Police Department. Special Assistant U.S. Attorney Tamara P. Nash prosecuted the case.
Jensen was immediately turned over to the custody of the U.S. Marshals Service.
Saratoga County Man Arrested on Child Pornography Possession ChargeRead the Press Release
ALBANY, NEW YORK – Zachary L. Duchesne, age 25, of Stillwater, New York, appeared in court today on a charge of possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
A criminal complaint alleges that in June 2019, Duchesne maintained a Dropbox account that he used to possess images and videos depicting the sexual abuse of children. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of the charge set forth in the complaint, Duchesne faces up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Duchesne appeared today before United States Magistrate Judge Christian F. Hummel, and was ordered detained.
Anyone with information relevant to this investigation may call HSI’s Albany office at (518) 220-2129.
This case is being investigated by HSI, with assistance from the Stillwater Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
San Diego Man Who Smuggled Methamphetamine in Stuffed Animals and Amassed Counterfeit Credit Cards Sentenced to 15 YearsRead the Press Release
Assistant U. S. Attorney Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – July 16, 2020
SAN DIEGO – Daniel Wayne Gorman, a resident of San Diego, was sentenced to 15 years in custody on Monday as a result of mailing over two kilograms of pure methamphetamine to Guam and possessing over 500 counterfeit credit cards.
According to Gorman’s plea agreement, on July 1, 2016, Gorman placed four packages, each containing a stuffed animal filled with methamphetamine, in the mail from the Jamul, CA Post Office. According to court documents, Gorman used an alias “Daniel German” to mail the packages, which were intercepted in Barrigada, Guam. In total the four packages contained 2.077 kilograms of actual methamphetamine.
Gorman was also sentenced on separate charges of credit card fraud. As laid out in the United States’ sentencing memorandum, on March 29, 2018 officers searched Gorman’s residence and found significant evidence of identity theft and credit card fraud, including over 500 counterfeit credit cards, multiple fake Florida driver’s licenses bearing the defendant’s photograph but the personal identifying information of others, white plastic cards, magnetic strip readers, a card embosser, a tipping foil machine, and holograms. Many of the credit cards in Gorman’s possession bore the names of real individuals who were not Gorman.
“We aren’t going to allow the U.S. Mail to become a smuggling service for drug traffickers,” said U.S. Attorney Robert Brewer. “This case is the result of excellent work by Assistant U.S. Attorney Michelle Wasserman and agents from the U.S. Secret Service and U.S. Postal Inspection Service and the San Diego County Sheriff’s Department.”
“Today’s sentencing is a reminder that financial crimes against the American people will not go unpunished,” said James Anderson, Special Agent in Charge of the Secret Service San Diego Field Office. “This case illustrates the strong partnership between the Secret Service, San Diego Police Department, the San Diego Sheriff’s Department, the Drug Enforcement Administration, the U.S. Postal Service and the U.S. Attorney’s Office.”
“For his role in distributing controlled substances, Daniel Gorman misused the U.S. Mail and is now paying a steep price,” said Patricia Armstrong, Inspector in Charge of the U.S. Postal Inspection Service, Los Angeles Division. “By working closely with our law enforcement partners to dismantle operations like this, we can help stop drugs and associated violence from reaching the American public.”
As a result of Gorman’s significant criminal activity, U.S. District Judge John A. Houston sentenced him to 120 months custody as to the methamphetamine trafficking and 60 months, consecutive, as to the possession of counterfeit credit cards, for a total of 180 months or 15 years.
DEFENDANT Case Number 18CR4083-JAH
Daniel Wayne Gorman Age: 33 San Diego, CA
SUMMARY OF CHARGES
Distribution of Methamphetamine – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Life imprisonment and $10 million fine
Possession of Counterfeit Access Devices – Title 18, U.S.C. Section 1029(a)(3)
Maximum penalty: Ten years’ imprisonment and a $250,000 fine
AGENCIES
United States Secret Service
United States Postal Inspection Service
San Diego County Sheriff
Prairie Village Man Pleads Guilty to Multi-Million Dollar Payday Loan Fraud, $8 Million Tax EvasionRead the Press Release
KANSAS CITY, Mo. – A Prairie Village, Kansas, man pleaded guilty in federal court today to engaging in two separate fraud schemes related to millions of dollars in false payday loan debt and to tax evasion totaling more than $8 million.
“This well-dressed thief victimized millions of Americans whose personal information was fraudulently sold to debt collectors,” Garrison said. “Some of those victims, in their fear and confusion, actually paid debts they didn’t owe. And by hiding his income and assets then lying about it to federal agents, he victimized every honest citizen who obeys the law and pays their income taxes. His thievery allowed him to enjoy a luxurious lifestyle for a short time, but he won’t be entitled to such luxuries in federal prison.”
“Today, Mr. Tucker admitted he evaded the payment of taxes assessed against him. Despite receiving millions of dollars, Mr. Tucker used such funds to sustain a lavish lifestyle and not fulfill his civic duty,” said Adam Steiner, Acting Special Agent in Charge of the St. Louis Field Office. “We are determined at the IRS and Department of Justice to halt tax evasion, and the facts outlined in today’s plea are strong indicators that we can and will find this fraudulent activity.”
Joel Jerome Tucker, 51, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of transporting stolen money across state lines, one count of bankruptcy fraud, and one count of tax evasion.
Tucker, working through various companies, serviced payday loan businesses. Tucker’s company names changed over the years; the primary company was eData Solutions, LLC. eData, formally registered on July 29, 2009, did not make loans directly to borrowers; it collected loan application information, referred to as leads, and sold those leads to its approximately 70 payday lender clients. As a loan servicer, eData also provided software for payday lenders.
Tucker and the other owners of eData sold the company to the Wyandotte Indian tribe in 2012. However, despite selling his interest in eData, Tucker maintained a file of 7.8 million leads he had acquired through eData, containing detailed customer information (including names, addresses, bank accounts, Social Security numbers, dates of birth, etc.). eData had collected the detailed customer information from online payday loan applications or inquiries to its payday lender clients; the file did not represent loans that were made. In addition, Tucker obtained and retained data regarding defaulted payday loans eData had acquired from a number of different payday lender clients. Tucker used these files to create falsified debt portfolios.
By pleading guilty today, Tucker admitted that he engaged in a fraudulent debt scheme from 2014 to 2016. This scheme involved marketing, distributing, and selling false debt portfolios. Tucker defrauded third party debt collectors and millions of individuals listed as debtors through the sale of falsified debt portfolios. Tucker sold supposed debts which: 1) he didn’t personally own; 2) were not true debts; 3) had already been sold to other buyers; and 4) contained false lenders, false loan dates, false loan amounts, and false payment status. Tucker received as much as $7.3 million from the sale of false debt portfolios.
As part of his fraud scheme, Tucker transferred the proceeds of the fraud scheme across state lines.
Tucker also admitted that he executed a related bankruptcy fraud scheme in 2015. In his bankruptcy fraud scheme, Tucker also sold fraudulent debt, which entered the United States Bankruptcy Courts nationwide. When the United States Bankruptcy Court investigated these purported debts which were presented as claims in bankruptcy cases, Tucker provided false information and testimony to the Bankruptcy Court in order to conceal his scheme.
For tax years 2014 - 2016, neither Tucker personally nor any of his companies filed federal tax returns with the Internal Revenue Service. Tucker told IRS agents that he had no income and was living on borrowed money, including a lot of borrowed money from his mother. In reality, Tucker used nominee bank accounts to conceal income and assets and spent hundreds of thousands of dollars in personal living expenses such as vehicles, chartered jets, travel and entertainment, and a personal residence. Tucker also submitted a form to the IRS in which he omitted listing as an asset his membership in the Vail Mountain Club, for which he received $275,000 in 2016.
Under the terms of today’s plea agreement, Tucker must pay $8,057,079.95 in restitution to the Internal Revenue Service. Tucker also must forfeit to the government $5,000, which is the amount of stolen proceeds transferred across state lines as referenced in the specific count to which he pleaded guilty.
Under federal statutes, Tucker is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Patrick D. Daly. It was investigated by the FBI, IRS-Criminal Investigation, and the U.S. Bankruptcy Trustee in the Southern District of Texas.
Philadelphia man admits to role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jason Lamonte Bryant, of Philadelphia, Pennsylvania, has admitted to his role in a cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Bryant, age 43, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Hydrochloride, and Cocaine Base.” Bryant admitted to working with others to distribute heroin, fentanyl, cocaine hydrochloride and cocaine base in Berkeley and Jefferson Counties and elsewhere from May 2018 to January 2019.
Bryant is facing up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the cases on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge Robert W. Trumble presided.
Philadelphia Man Sentenced to 28 Years in Prison for Six Armed RobberiesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Phillip Cottman, 40, of Philadelphia, PA, was sentenced to 28 years (336 months) and one day in prison by United States District Judge Berle M. Schiller for a spate of armed robberies over a three year period.
Between July 2015 and April 2018, Cottman committed six armed robberies: three Republic Bank branches (on 18th & Market Streets, 16th & Walnut Streets, and 8th & Chestnut Streets), two Dunkin Donuts shops (on 21st & Market Streets and 15th Street & Washington Avenue), and one 7-Eleven convenience store (on 17th & South Streets), all in Center City Philadelphia.
During all six robberies, the defendant pointed a gun at his victims and demanded money, stealing a few thousand dollars from one bank branch and as little as $60 from one shop. He was charged by criminal complaint and arrested in April 2018; at the time of his arrest, he was carrying a loaded Smith & Wesson SD40 VE handgun, despite being a convicted felon which prohibits him from possessing a firearm. In June 2019, a grand jury returned an Indictment formally charging the defendant with all six robberies, including three counts of armed bank robbery, three counts of Hobbs Act robbery, six counts of using and carrying a firearm during a crime of violence and one count of possession of a firearm by a convicted felon. Cottman pleaded guilty in January 2020.
“Robbing any type of business – whether it’s a bank, a corner store, or anything in between – is a serious federal offense that can carry stiff penalties, as Cottman can now attest,” said U.S. Attorney McSwain. “Over the course of six robberies during which he threatened innocent people with a gun, the defendant stole a total of about $5,000 and is now going to spend nearly three decades behind bars for his crimes. Committing a violent crime is just not worth it. I want people to know that committing a violent crime in the Eastern District of Pennsylvania carries a tremendous risk of a long prison sentence, which is the point of our new anti-violence public awareness campaign. You can learn more about this campaign on our District website.”
“Phillip Cottman was a serial armed robber,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He was more than comfortable barging into city banks and businesses, terrorizing innocent employees and witnesses at gunpoint, and stealing cash. Had Cottman not been identified and arrested by the FBI/Philadelphia Police Violent Crimes Task Force, he’d still be at it. Philadelphia is safer with him behind bars.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and Philadelphia Police Department FBI Task Force officers, and is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
Ontario Man Sentenced for Attempting to Cross the Border with MarijuanaRead 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 Frank Nereo Fogazzi, 79, of Ontario, Canada, who was convicted of possessing with intent to distribute marijuana, was sentenced to time served by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Charles E. Watkins, Jr., who handled the case, stated that on May 21, 2018, at approximately 10:00 p.m., the defendant attempted to enter the United States from Canada at the Peace Bridge Port of Entry. During primary inspection, Fogazzi, a Canadian Citizen, told the primary Customs and Border Protection Officer that he was coming to the United States to go shopping but could not provide the Officer with an intended shopping destination.
When asked if he was bringing anything into the United States and if he had anything to declare, the defendant said he did not. The officer then asked Fogazzi to unlock the trunk of his vehicle for inspection. The officer opened the trunk and observed an empty black hockey bag laying on top of two other black hockey bags that appeared full. The officer also detected the odor of marijuana emanating from the trunk. The officer then unzipped one of the full hockey bags and observed suspected marijuana inside clear vacuum sealed plastic bags. The defendant was escorted to the security office. Fogazzi’s vehicle was also taken to the secondary area for further inspection during which officers discovered additional suspected marijuana in a second hockey bag as well as in the spare-tire cavity under the hockey bags in the trunk. A total of 96 packages of suspected marijuana, weighing a total of over 104 lbs., were seized.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Ohio Man Pleads Guilty to Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Cleveland, Ohio man has pled guilty to a drug crime, according to United States Attorney Mike Stuart. Troskey Banks, 23, pled guilty to possession with intent to distribute fentanyl and methamphetamine.
“Drug peddlers are not welcome here, as this defendant and his friend discovered and as hundreds of other defendants have discovered,” said United States Attorney Mike Stuart. “I am committed to keeping our communities safe. A big part of keeping communities safe is done through cooperative efforts with law enforcement to rid our streets of the poison and its peddlers.”
Banks admitted that in January 2020, he directed Clay Dempsey to drive to Cleveland, Ohio, to obtain controlled substances for Banks to distribute. Banks told Dempsey to park the van containing the drugs at a location in South Charleston upon his return so Banks could retrieve the drugs. When law enforcement officers searched the van, they recovered a bag of suspected fentanyl weighing approximately 105.2 grams, which field-tested positive for the presence of fentanyl, and a bag of suspected methamphetamine weighing 118.7 grams, which field-tested positive for the presence of methamphetamine.
Banks faces up to 20 years in prison when he is sentenced on November 18, 2020. Dempsey, who pled guilty last month to possession with intent to distribute a quantity of fentanyl, also faces up to 20 years in prison when he is sentenced on October 28, 2020.
The Metropolitan Drug Enforcement Network Team (MDENT) and the South Charleston Police Department conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Monica Coleman is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00035.
Follow us on Twitter: SDWVNews and USAttyStuart
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Notorious Amarillo Crack Cocaine Dealer Sentenced to 15+ YearsRead the Press Release
A notorious Amarillo crack cocaine dealer was sentenced today to 188 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Earnest Tywane Drone, 39, pleaded guilty to two counts of distribution and possession with intent to distribute cocaine base in March following his arrest by the Amarillo Project Safe Neighborhood (PSN) Task Force.
Launched in January 2019, PSN Amarillo Task Force identified a 7.5 square mile block in the San Jacinto and North Heights neighborhoods of Amarillo long plagued by gang activity, drug traffickers, and violent crime as the targeted enforcement area for PSN Amarillo Task Force operations.
Mr. Drone, who lived in the North Heights neighborhood of Amarillo, was widely known in the community as a crack cocaine dealer who used his residence as a distribution point for his drug trafficking operations. In May 2019, Mr. Drone sold crack cocaine to a confidential government source at his residence. Days later, law enforcement executed search warrants at two crack houses, located in the heart of the North Heights neighborhood. During the PSN Task Force raid, Mr. Drone, along with three others, were arrested.
“The Department of Justice will never tolerate drug trafficking,” said U.S. Attorney Erin Nealy Cox. “Today’s sentencing highlights the dedicated work of the Amarillo Project Safe Neighborhood Task Force to bring one of Amarillo’s most ruthless drug dealers to justice.”
Drone’s high-profile prosecution is just the latest success for the PSN Amarillo Task Force. The initiative saw a 13 percent decrease in violent crime inside the targeted San Jacinto/North Heights neighborhood of Amarillo; this trend continued into 2020, dropping an additional 3 percentage points for a total violent crime reduction of 16 percent.
Additionally, PSN Amarillo experienced a 30 percent decrease in robberies and a 46 percent reduction in aggravated robberies in the targeted enforcement area during the first year of operations.
The Amarillo PSN was launched as the second PSN in the Northern District of Texas and other PSN hotspots include Dallas, Fort Worth and Lubbock. More information on PSN Amarillo can be found here.
The Drug Enforcement Administration, Homeland Security Investigations, United States Marshals Service, Randall County Sheriff’s Office, Potter County Sherriff’s Office, and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Sean Taylor and Joshua Frausto are prosecuting the case.
New Jersey Man Charged with Conspiring to Distribute Controlled Substances Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James R. Bell, age 28, of Newark, New Jersey, was indicted on July 14, 2020, by a federal grand jury with drug distribution resulting in death.
According to United States Attorney David J. Freed, the Indictment alleges that Bell conspired with others to knowingly and intentionally distribute and possess with intent to distribute controlled substances, fentanyl and heroin, within the Middle District of Pennsylvania, resulting in the death of a person.
The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, the Monroe County District Attorney’s Office, and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. In this case, the maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature 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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Mineral County man admits to methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Adam Michael, of Burlington, West Virginia, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Michael, age 38, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Fifty Grams or More of Methamphetamine.” Michael admitted to working with tohers to distribute more than 50 grams of methamphetamine from October 2018 to February 2019 in Mineral County and elsewhere.Michael faces not less than ten years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Miami Federal Judge Sentences Los Angeles Art Fraudster to Five Years in PrisonRead the Press Release
Miami – Today, a federal judge in Miami sentenced 43-year-old Philip Righter, of California, to five years in prison for running a scheme in which he tried to dupe prominent art businesses, including one South Florida gallery, into spending millions of dollars on forgeries of works by renowned contemporary artists like Keith Haring and Jean-Michel Basquiat.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Righter’s scheme was this: He would buy art forgeries at online marketplaces and auction sites. Once he had the forgeries, Righter tried to make them appear legitimate by creating letters that falsely certified their authenticity. For example, he created letters that appeared to be from “The Estate of Keith Haring” and the “Authentication Committee of the Estate of Jean-Michel Basquiat.” In fact, they were not. Righter designed and purchased embossers bearing the names of the estate and foundation for Haring and Basquiat. He stamped the forged letters with the custom embossers, trying to enhance the look of legitimacy. Righter forged the signatures of representatives of the estate and foundation on the letters.
Righter also created elaborate backstories to establish the “provenance” of the forged artworks. He forged documents to show links between the artworks, Righter’s family, a Wisconsin art museum, and a prominent New York City gallery. Righter told one prospective buyer that he had donated a number of his artworks to his Ivy League alma mater, which was a lie.
Once Righter had the forged artworks, forged documents, and false stories in place, he offered, directly and through brokers, to sell the forged works to galleries, auction houses, and others. In one instance, after a Miami gallery owner showed interest in some work, Righter (who was in Los Angeles) shipped a number of the forgeries to South Florida, where the FBI ultimately seized them. Righter’s asking price for these forgeries: $1,056,000. He directed the gallery owner to wire the money to Righter’s bank account.
Agents with FBI’s Art Crime Team uncovered Righter’s coast-to-coast scheme, which resulted in the filing of two federal cases against him -- one in the Southern District of Florida (the “Miami case”) and one in the Central District of California (the “Los Angeles case”). The Los Angeles case was transferred to Miami, where the two prosecutions were consolidated for plea and sentencing proceedings.
On March 11, 2020, Righter pled guilty to two counts in the Miami case: mail fraud and aggravated identity theft. (Case No. 19-20370-CR-Cooke). Today, Righter pled guilty in Miami federal court to three counts in the Los Angeles case: wire fraud, aggravated identity theft, and tax fraud. (Case No. 20-20164-CR-Cooke). United States District Court Judge Marcia G. Cooke sentenced Righter to five years’ imprisonment in each case. The sentences will run concurrently. A consolidated restitution hearing is set for September 30, 2020, at 10 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Art Crime Team. Assistant United States Attorney Christopher Browne prosecuted the Miami case.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Memphis Man Sentenced to 13 Years for Two Separate Armed Carjackings in 2018Read the Press Release
MEMPHIS, TN – Devonell Montgomery, 23, has been sentenced to 156 months in federal prison for two separate armed carjacking incidents and for brandishing a firearm during a crime of violence. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to the information presented in court, on September 16, 2018 at 8:00 pm a woman was placing items into her 2008 Pontiac G6 when three men approached demanding her keys and telling her that they had handguns. One of the men pushed her against the vehicle and demanded that she get inside. The woman screamed and ran. The men got into the vehicle and drove away.
On September 23, 2018, around 7:00 pm in the Water Tree Apartments, a woman and her 10 year old child were searching for a cellphone charger in her 2005 GMC Envoy when three men approached the vehicle and said "give us everything and you won’t get hurt." Montgomery removed the child from the car and threw her to the ground. Another man put a pistol against the woman's head and threatened her life. The woman got out of the car and the men drove away.
The next day Memphis Police Department Officers recovered the abandoned GMC Envoy in another apartment complex after it had been used in an unrelated shooting. Officers from the Violent Crimes Unit of the Memphis Police Department determined that Montgomery was a suspect in this carjacking. The woman identified Montgomery as the man who threw her child from the car.
A Memphis Police Officer later found the Pontiac G6 at Montgomery's mother's home. The officers also recovered Montgomery's finger print from that vehicle.
On February 14, 2020, Montgomery plead guilty to all three counts as charged. On July 15, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Montgomery to 156 months in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Under our Carjacking Initiative, the U.S. Attorney’s Office is continuing to coordinate with our federal and local law enforcement partners to prioritize and target carjacking cases for aggressive federal prosecution, where there is no sanctuary of parole. There is a heavy price to pay for sowing lawlessness and violence in our communities, and Montgomery will now reap a long prison sentence for his brazen and dangerous behavior that victimized innocent citizens."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Memphis Police Department Violent Crimes Unit.
Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.
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Member of Navajo Nation pleads guilty to federal assault charges in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Dieter D. Douglas, 34, of Shiprock, New Mexico, pleaded guilty in federal court in Albuquerque on July 14 to two counts of assault of an intimate partner by strangling or suffocating. The charges arose in Indian Country and were part of a superseding indictment.
According to his plea agreement, Douglas, an enrolled member of the Navajo Nation, admitted to strangling the victim on two separate occasions, while in San Juan County, New Mexico, within the exterior boundaries of the Navajo Indian Reservation. Douglas first admitted to covering his intimate partner’s mouth with his hand and also placing his hand around her neck to impede her breathing and blood flow during a fight on October 3, 2018. Douglas further admitted that he strangled the same victim again on May 4, 2019, during which time the victim reported losing consciousness.
Douglas is currently in custody pending sentencing. He faces up to ten years of imprisonment for each of the charges to which he has pled guilty.
The FBI and the Navajo Nation Criminal Investigation Office in Shiprock, New Mexico investigated this case. Assistant U.S Attorney Novaline D. Wilson is prosecuting the case.
Maui man sentenced to 10 years in prison for attempted sexual enticement of a 14-year-old girlRead the Press Release
HONOLULU, Hawaii – Nolan Nishida, 37, of Wailuku, Maui, was sentenced today in federal court by Senior U.S. District Judge Susan Oki Mollway to 10 years of imprisonment followed by 10 years of supervised release for attempting to entice a minor to engage in unlawful sexual activity. Nishida is required to pay a $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act of 2015. A federal jury convicted Nishida of this offense on February 13, 2020, after approximately two days of trial.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented at trial, on October 11, 2017, Nishida engaged in a series of online chats with an undercover agent posing as a 14-year-old girl. During their conversations, Nishida arranged to meet the girl in person with the intent to engage in sexual activity. Nishida traveled to the agreed-upon location, and was later arrested.
“My office will continue its ongoing efforts to protect the community from those who seek to endanger our young people by sexually exploiting them. This case is yet another step in the right direction in protecting Hawaii’s keiki,” stated U.S. Attorney Price.
“Every year thousands of children become victims of crime, whether through kidnappings, violent attacks, sexual abuse, or online predators. The men and women of the FBI are committed to protect the youth of our nation. Today’s sentencing reflects the hard work, dedication, and partnership between the United States Attorney’s Office and the FBI to ensure these predators are brought to justice,” stated FBI Special Agent in Charge Eli S. Miranda.
The case was investigated by the FBI, and it was prosecuted by Assistant U.S. Attorneys Margaret Nammar and Morgan Early.
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 U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Massachusetts Man Sentenced to 46 Months for Smuggling Goods from the United States to IranRead the Press Release
CONCORD - Aiden Davidson, a/k/a Hamed Aliabadi, 32, of Brighton, Massachusetts, was sentenced to 46 months in federal prison for smuggling goods from the United States to Iran in violation of the U.S. embargo on trade with Iran, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Davidson is a citizen of Iran and a naturalized citizen and resident of the United States. Davidson was the manager/member and registered agent of a New Hampshire limited liability company, Golden Gate International, LLC (“Golden Gate”). Babazedeh Trading Co., a/k/a “Babazadeh Hydraulic Trading Group” (“Babazadeh”) was an Iranian company that operated an online resale business based in Tehran, Iran. Stare Lojistik Enerji Sanayi Ticaret (“Stare”) was a Turkish freight forwarding company with a location in Igdir, Turkey.
Between December 2016 and February 2017, Davidson and Golden Gate smuggled goods from Savannah, Georgia, to Babazadeh in Iran. The goods included motors, pumps, valves, and other items that were valued at more than $100,000. Documents related to the shipments falsely identified the Ultimate Consignee of the shipments as Stare in Turkey. In causing the unlicensed exportation of these goods, Davidson and Golden Gate willfully evaded national security controls related to transactions with Iran.
Between April 2017 and August 2017, Davidson and Golden Gate again knowingly smuggled goods from Savannah, Georgia, to Babazadeh in Iran. The goods included displacement pumps that were valued at approximately $13,000. Documents related to these shipments falsely identified the Ultimate Consignee of the shipments as Ariyanis Group in Turkey. In causing the unlicensed exportation of these goods, Davidson and Golden Gate willfully evaded national security controls related to transactions with Iran.
All told, between 2014 and 2017, Davidson caused a total of at least ten exports of containers of industrial goods and equipment from the U.S. to Iran. During that period he received approximately $1 million in international wire transfers to Golden Gate’s bank account in New Hampshire. Davidson was arrested in September 2018 prior to boarding a flight from Atlanta to Turkey.
Davidson previously pleaded guilty on March 3, 2020.
“Export controls are important legal restrictions that can prevent certain items from being used to jeopardize our national security,” said U.S. Attorney Murray. “By smuggling these goods from the United States to Iran, the defendant violated federal law. In order to maintain our national security and protect the people of the United States, we will aggressively investigate and prosecute those who seek to evade the law by smuggling goods to Iran.”
“We will fully and aggressively enforce our nation’s restrictions on exports to Iran,” said Special Agent in Charge William Higgins of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office. “The controls on exports to Iran help apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide. The Office of Export Enforcement will continue to work with our Law Enforcement partners to stem illicit trade that threatens U.S. national security and undermines U.S. foreign policy.”
“Homeland Security Investigations remains committed to enforcing export controls on Iran,” said Michael Shea, acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston. “As demonstrated in this investigation of Golden Gate International and of Davidson’s illegal export of restricted materials, we will continue along with our federal and state law enforcement partners to monitor and investigate export violations committed by Iran or any proxies of Iran.”
This matter was investigated by the Department of Commerce's Office of Export Enforcement and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys John Davis and Cam Le.
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Maryland Man Pleads Guilty to Conspiracy to Distribute CocaineRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today to conspiracy to distribute five kilograms or more of cocaine.
According to court documents, between May 2019 and February 2020, Romaine Dixon, 31, of Camp Springs, conspired to distribute cocaine. Dixon and his co-conspirators would travel out of state and ship cocaine back in large crates to the Eastern District of Virginia. Dixon was arrested in his vehicle in February 2020 for possession of approximately 25 kilograms of cocaine and $11,268.00 in cash. One of Dixon’s co-conspirators was also arrested that day in possession of 20 kilograms of cocaine and one and half kilograms of heroin
After the execution of search warrants at Dixon’s residence, law enforcement seized approximately $1,044,451 in cash, jewelry valued at approximately $244,125, one kilogram of cocaine, one kilogram of fentanyl, three firearms, and body armor piercing ammunition among other items. At another location associated with Dixon, law enforcement found kilogram wrappings and an AK-47.
Dixon pleaded guilty to conspiracy to distribute five kilograms of cocaine. He faces a mandatory minimum penalty of 10 years in prison when sentenced on December 4. 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; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea. Assistant U.S. Attorneys Michael P. Ben’Ary and Bibeane Metsch are 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-156.
Man from Ascensión, Mexico pleads guilty to federal marijuana smuggling chargesRead the Press Release
ALBUQUERQUE, N.M. – Inocente Rivera, 20, of Ascensión, Chihuahua, Mexico, pleaded guilty in federal court in Las Cruces, New Mexico, on July 14 to an information charging him with one count of conspiracy to distribute 100 kilograms or more of a mixture and substance containing a detectable amount of marijuana, and one count of possession with intent to distribute 100 kilograms and more of marijuana.
According to his plea agreement, Rivera admitted to committing these offenses in Luna County, New Mexico, on May 12. He tried to enter the United States at the port of entry in Columbus, New Mexico with 305 wrapped bundles of marijuana hidden in the cargo bed of the vehicle he was driving. Rivera intended to distribute the smuggled marijuana in the United States. U.S. Customs and Border Protection officers inspected the vehicle and located the hidden contraband, according to the complaint.
Rivera is currently in custody awaiting sentencing. He faces up to 40 years in prison.
Homeland Security Investigations and U.S. Customs and Border Protection Office of Field Operations investigated this case. Assistant U.S. Attorney Bradley Bartlett is prosecuting the case.
Logan Woman Pleads Guilty to Embezzling More than $200,000 from Credit UnionRead the Press Release
CHARLESTON, W.Va. – A Logan woman pled guilty to misappropriating funds from the Pioneer West Virginia Federal Credit Union, announced United States Attorney Mike Stuart. Dianne Richardson, 69, pled guilty to embezzling $222,000.
“Egregious – Richardson stole $222,000 in cash. For well over five years she was working as a bank teller and a thief,” said United States Attorney Mike Stuart. “We prosecute cases like this to the fullest extent of the law and seek full restitution for victims. Great work by the United States Secret Service and the South Charleston Police Department.”
Richardson, an employee of Pioneer West Virginia Federal Credit Union in South Charleston, admitted that starting in September 2013 through February 2019, while working as a teller, she stole money from the credit union. She admitted she made false entries in the Pioneer records to make the cash totals reconcile when in fact, they did not.
Richardson faces up to 30 years in prison when she is sentenced on October 15, 2020. She also is responsible for paying restitution for the monies she embezzled.
The United States Secret Service and the South Charleston Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Chris R. Arthur is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-CR-00025.
Follow us on Twitter: SDWVNews and USAttyStuart
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Little Rock Woman Charged with COVID Relief FraudRead the Press Release
LITTLE ROCK - A Little Rock woman was arrested this afternoon based on allegations she fraudulently obtained nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today the indictment of Ganell Tubbs, 41.
The indictment alleges that Tubbs purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.
On April 30, 2020, according to the indictment, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but the indictment states that two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, according to the indictment, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, Northface, Nike, and others.
Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the representations she made in the loan application, which the indictment alleges are not true, The Little Piglet Soap Company received a PPP loan for $414,375.
“These loans are meant to help small business owners who have suffered economically due to COVID-19 shutdowns,” stated U.S. Attorney Hiland. “Hardworking Arkansans are at their best when they are free to keep their businesses open during this challenging time, and we will be diligent in investigating and prosecuting those who take advantage of these critical funds.”
The indictment, which was returned by a grand jury on July 7, 2020, charges Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity.
“Numerous businesses across Arkansas are struggling to remain open during this COVID-19 pandemic, so our office has zero tolerance for anyone who fraudulently misuses federal funds intended to help companies weather this tough time,” said FBI SAC Upchurch. “Alongside our federal and state partners, we will remain vigilant against fraudsters and ensure that PPP funds are used as intended.”
Tubbs appeared this afternoon before United States Magistrate Judge Thomas Ray and was released on bond. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey are prosecuting the case.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Kentucky Man Sentenced for Role in Concealing Hundreds of Thousands of Dollars in Corporate Contributions to U.S. Senate CampaignRead the Press Release
A Kentucky man was sentenced today to 21 months in prison followed by two years of supervised release for his role in orchestrating a multi-year scheme to funnel more than $200,000 in secret, unlawful corporate contributions into a campaign for United States Senate and for causing the concealment of those contributions from the Federal Election Commission (FEC).
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, and Special Agent in Charge James Robert Brown Jr. of the FBI’s Louisville Field Office made the announcement.
Gerald G. Lundergan, 73, of Lexington, Kentucky, was sentenced before U.S. District Judge Gregory F. Van Tatenhove of the U.S. District Court for the Eastern District of Kentucky.
On Sept. 12, 2019, following a five-week trial, a jury convicted Lundergan of one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction.
According to the evidence presented at trial, Lundergan used the funds of S.R. Holding Company Inc. (S.R. Holding), a company he owned, to pay for services provided by consultants and vendors to a campaign for a U.S. Senate seat in the 2014 election cycle. The candidate for this seat was Lundergan’s daughter, Alison Lundergan Grimes. The evidence established that Lundergan caused the issuance of a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls and campaign consulting, between July 2013 and December 2015.
The corporate contributions also included monthly payments from S.R. Holding to co-conspirator Dale C. Emmons and his company during this period. Emmons provided services to the campaign and sought and received compensation from Lundergan and S.R. Holding. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Those services included recorded telephone calls, technological support services, and other campaign-related expenses.
The evidence established that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments caused the campaign unwittingly to file false reports with the FEC because the reports failed to disclose the source and amount of the corporate contributions.
The FBI investigated the case. Deputy Chief Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith of the Eastern District of Kentucky are prosecuting the case.
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.
Jury Finds Madison Man Guilty of Drug & Gun CrimesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Danny D. Turner, 38, Madison, Wisconsin, was found guilty yesterday of drug and gun crimes. Turner was convicted of four counts of distributing crack cocaine, one count of distributing heroin, possessing crack cocaine for distribution, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. The jury reached its verdict after six hours of deliberations following three days of testimony in federal court in Madison.
The evidence presented at trial showed that in January and February 2020, Turner sold crack cocaine and heroin to an undercover law enforcement officer, and when he was arrested on February 27, 2020, he possessed crack cocaine packaged for distribution and carried a loaded 9mm handgun.
In 2008, Turner was convicted in U.S. District Court for the Western District of Wisconsin of distributing crack cocaine. Due to this prior felony conviction, Turner is not permitted to possess a firearm. In addition, Turner has prior state court convictions for delivery of cocaine and possessing cocaine with intent to distribute.
Chief U.S. District Judge James D. Peterson scheduled Turner’s sentencing for October 1, 2020, at 9:30 a.m. Turner faces a maximum penalty of 20 years in federal prison on each drug charge and 10 years on the felon in possession of a firearm charge. The charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years; federal law requires that any sentence imposed for this charge be served consecutive to any sentence imposed on any other criminal charge.
The charges against Turner were the result of an investigation by the Dane County Narcotics Task Force. U.S. Attorney Blader and Assistant U.S. Attorney David J. Reinhard handled the prosecution.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Jamestown Man Arrested While on Parole Pleads Guilty to Crack Cocaine ChargeRead 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 Earl Stone Jr., a/k/a Ooh Wop, 28, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute crack cocaine. The charge carries a maximum penalty of 20 years in prison and $1,000,000 fine.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that the defendant was arrested, with another absconding parolee, Shaquelle Coleman, on January 23, 2019, for violating terms of parole. Stone and Coleman were located in the upstairs bedroom of a residence on West 7th Street in Jamestown. Stone had what appeared to be floor insulation from the attic of the residence all over his clothing. During a search of the residence, suspected crack cocaine was located in the attic on top of floor insulation consistent with the insulation on the defendant's clothing. A digital scale with white residue and three cellular telephones were also seized. A review of the three cellular telephones recovered several text messages coordinating the sale of narcotics.
Charges remain pending against Shaquelle Coleman. 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.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson; the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci; and the New York State Police, under the direction Major James Hall.
Sentencing is scheduled for October 14, 2020, at 12:30 p.m. before Judge Arcara.
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Hot Springs Man Sentenced for a Violation of the Bald and Golden Eagle Protection ActRead the Press Release
United States Attorney Ron Parsons announced that a Hot Springs, South Dakota, man convicted of a violation of the Bald and Golden Eagle Protection Act was sentenced on July 10, 2020, by U.S. Magistrate Judge Daneta L. Wollmann.
Larry Belitz, age 77, was sentenced to 1 year of probation, and was ordered to pay $19,900 in restitution to the U.S. Forest Service, a fine of $10,000, and a $25 special assessment to the Federal Crime Victims Fund.
The conviction stems from Belitz, who without being permitted to do so, knowingly possessed and sold parts of bald and golden eagles on Native American items he sold between February 2013 and February 2015.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
High School Football Coach Sentenced to 270 Months in Federal Prison for Sexual Exploitation of 14- and 15-Year Old GirlsRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Charles Jay Eglet, age 31, of Spokane, Washington, was sentenced today after having pleaded guilty on February 12, 2020, to Production of Child Pornography and Online Enticement of A Minor To Engage in Illicit Sexual Activity. Senior United States District Judge Wm. Fremming Nielsen sentenced Eglet to a 270-month term of imprisonment, to be followed by a lifetime of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Eglet used Snapchat and other social media platforms to reach out to multiple 14- and 15-year old girls for the purpose of soliciting child pornography from them or coercing them into having sex with him. Eglet often deceived his victims into believing that he was close to their ages, when he was actually in his late twenties. He would then meet with them in person to engage in illicit sexual acts. On multiple occasions, Eglet successfully met up with a 14-year-old girl, and then a 15-year-old girl, to engage in illicit sexual conduct with them. One victim he met for the first time in person at the Northern Quest Casino when she was there with her family for a concert; another victim he met for the first time in the parking lot of a church on Spokane’s South Hill. Eglet’s victims were typically in high school or about to start high school. One victim was scheduled to begin high school in 2018 where Eglet was employed as an assistant football coach.
United States Attorney Hyslop said, “The sentence imposed today sends a stern message to those who sexually exploit children. Your exploitation of children will not be tolerated. If you have a problem, seek help. But know that if you abuse, exploit, and take advantage of children, you will be going to prison. Your criminal conduct will not go unnoticed and you will be prosecuted. Here, Eglet was an Assistant Coach; he was in a position of special trust with young people. He took advantage of them. He’s now going to jail. We hope there can be some healing for his victims, but time will tell on that.”
“The United States Attorney’s Office for the Eastern District of Washington is resolute in its commitment to bring to justice those who sexually exploit children. I commend the dedicated work of the Federal Bureau of Investigation, Homeland Security Investigations, the Washington State Patrol, the Spokane Police Department, and the Kalispel Tribal Police Department, who jointly investigated this case. I also commend the families of the victims in this case, who reported Eglet’s conduct to the authorities. I hope this significant sentence brings them some measure of peace.” Hyslop stated.
Hyslop concluded by saying, “The United States Attorney’s Office for the Eastern District of Washington encourages all minors and their parents to ensure that minors only communicate online with people who they know IRL (“in real life”). Snapchat, in particular, automatically deletes communications, which can make it difficult for minors and their parents to report abusive online conduct. Parents must help educate their children about these dangers and they must monitor their children’s online conduct. Moms and Dads are the first line of defense for their children. That may not stop all predators, but hopefully it will help prevent some victimization of some minor children.”
FBI Assistant Special Agent in Charge Mark Nichols said, “The exploitation of children requires decisive action. Thanks to close collaboration with our partners, we were able to put a stop to the defendant’s activities. This man, who was entrusted to mentor young people, was in actuality a predator of vulnerable girls. Today’s sentence ensures he won't be able to victimize children for years to come.”
“Homeland Security Investigations special agents won’t ever relent when it comes to protecting children and prosecuting predators whose behavior has no place in our society,” said Eben Roberts, Acting Special Agent in Charge, Homeland Security Investigations, Seattle. “Child sex abuse is one of the most serious crimes HSI investigates due to the lasting psychological and physical damage it can inflict on victims. We prioritize investigating monsters like this who exploit children.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation, Homeland Security Investigations, the Spokane Police Department, the Washington State Patrol, and the Kalispel Tribal Police Department. This case was prosecuted by David M. Herzog, an Assistant United States Attorney for the Eastern District of Washington.