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16 July 2020
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.
Hammond Man Sentenced to 110 Months in PrisonRead the Press Release
HAMMOND-Sonny Richards, 26, of Hammond, Indiana, was sentenced by District Court Judge James T. Moody to 110 months in prison and 2 years of supervised release following his guilty plea to distribution of cocaine and to possessing a firearm as a previously convicted felon, announced U.S. Attorney Kirsch.
According to documents in the case, in July 2019, Mr. Richards distributed cocaine on two separate occasions in Hammond, Indiana. From August through September 2019 in Hammond, Richards also possessed three separate firearms, one of which was previously reported stolen, and all three of which were recovered by the ATF. In November 2019, law enforcement executed a search warrant on Richards’ Hammond residence and recovered cocaine, marijuana, another firearm, and ammunition. Richards has prior felony convictions for dealing marijuana, possession of methamphetamine, and possession of marijuana.
This case is the result of the investigative efforts of the ATF/HIDTA Task Force and the Hammond Police Department. The case was prosecuted by Northern District of Indiana Assistant U.S. Attorney Kevin F. Wolff.
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Fresno Escapee Sentenced to 8 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Samuel Delacruz, 38, of Fresno, was sentenced today to eight years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2017, Delacruz was serving the remainder of his federal sentence for a 2013 conviction at Turning Point Fresno Residential Reentry Center. On Oct. 15, 2017, he failed to return to the center as required following a day pass. A U.S. Marshals Service warrant was issued, but his whereabouts remained unknown for over five months. On March 22, 2018, when a sheriff’s deputy attempted to pull Delacruz over for a traffic violation, Delacruz attempted to flee in the car and then on foot. While he ran, he tossed a firearm into an area where children were playing. That firearm was loaded with 18 live rounds of ammunition. Fortunately, the gun was located and turned over to law enforcement.
Delacruz, an active Fresno Bulldog street gang member, has a previous felony conviction for being a felon in possession of a firearm and is prohibited from possessing a firearm or ammunition. On Dec. 2, 2019, Delacruz pleaded guilty to the offense.
This case was the product of an investigation by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno County Sheriff’s Office. Assistant U.S. Attorneys Jessica A. Massey and Kimberly A. Sanchez prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fort Worth Company Owner Pleads Guilty to Lying to Defense DepartmentRead the Press Release
A Fort Worth man has been sentenced to more than four-and-a-half years in federal prison for lying to the U.S. Department of Defense about the metal used inside his company’s aircraft parts, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Richard Ross Hyde, the 64-year-old owner of Vista Manufacturing Company, pleaded guilty in August 2019 to making a false claim against the United States. He was sentenced Thursday to 55 months in federal prison by U.S. District Judge Mark Pittman.
In his plea papers, Mr. Hyde admits that he invoiced the Navy for aircraft components which DOD later discovered were constructed from a different metal than the one his company said it would use.
On Aug. 18, 2014, Vista Manufacturing submitted a bid to the government to provide critical parts for a Naval Air Warfare Center aircraft, Mr. Hyde told the court. In the $12,897.50 bid, the company included a diagram noting measurements, specifications, and descriptions of the materials required for production – notably, aluminum alloy 2024.
Six days later, the government accepted Vista’s bid, and Mr. Hyde began seeking out manufacturers for the 22 wiper back retainers included in the bid.
He found a company that offered to manufacture the parts with a different aluminum alloy, 6061, for $8,492. Despite the fact that Vista’s contract with the Navy required them to use aluminum alloy 2024, Mr. Hyde admits he accepted the offer, and allowed the part to be manufactured with aluminum alloy 6061.
Mr. Hyde admits that on Jan. 21, 2015, he had the completed parts – made with the 6061 alloy – delivered to a Defense Logistics Agency distribution facility. He invoiced the DOD’s Defense Financing and Accounting Services for $12,897.50 and received the full payment on Feb. 4, 2015.
A subsequent examination of the parts he delivered revealed that the metal used to manufacture the wiper back retainers did not match the diagram on Vista’s bid; testing revealed that Mr. Hyde’s company had substituted the 6061 alloy for the 2024 alloy – rendering his bid false.
The U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; the Defense Logistics Agency; the Federal Bureau of Investigation; the Army Criminal Investigative Division’s Major Procurement Fraud Unit; the Air Force Office of Special Investigations; the Naval Criminal Investigative Service; and the Defense Contract Management Agency conducted the investigation. Assistant U.S. Attorney John Bradford prosecuted the case.
Former Office Manager for the Rapid City Rush Hockey Team Pleads Guilty to Wire Fraud and Tax EvasionRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman pleaded guilty to two counts of Wire Fraud and one count of Tax Evasion in federal district court.
Jennifer Durham, age 42, was charged on June 30, 2020. Durham appeared before U.S. Magistrate Judge Veronica L. Duffy on July 16, 2020, and pleaded guilty to the felony charges. The maximum penalty on each of the wire fraud counts is 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. The maximum penalty on each the tax evasion count is 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Between February 2010 and June 2019, Durham, while employed as the office manager for Rapid City Professional Hockey, LLC (RCPH), stole $700,000.00 from RCPH. Durham used the stolen money for her own personal expenses and also transferred money to bank accounts she controlled. In order to cover up her theft, Durham made false entries into the RCPH accounting records to give the illusion the money she was stealing was spent on legitimate business expenses.
During the same time period, Durham also willfully attempted to evade or defeat taxes imposed under the Internal Revenue Code. Durham accomplished this by underreporting her income from tax years 2010 through 2018 by a total of $688,867.67, resulting in a tax loss of $186,277.00.
As part of the plea agreement, Durham agreed to pay restitution to RCPH totaling $700,000.00, and to pay the IRS $186,277.00.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Durham was released pending sentencing, to be scheduled at a later date.
Former Gym Owner Sentenced to 30 Years for Drug TraffickingRead the Press Release
NEWPORT NEWS, Va. – The former owner of 9Round Gym in Peninsula Town Center was sentenced today to 30 years in prison for leading a large-scale drug trafficking organization on the Virginia Peninsula.
According to court documents, from 2013 to 2017, Alex Jermaine Burnett, 39, supervised a number of individuals in the distribution of cocaine, heroin, MDMA, marijuana and cocaine base or “crack.” This organization was receiving kilogram quantities of the narcotics and then distributing them throughout the Hampton Roads area, Newport News and James City County. During the course of the drug trafficking activities, Burnett began to receive information from former law enforcement officer, Deangelo Freeman. The law enforcement sensitive information alerted Burnett and his organization to the ongoing FBI investigation and compromised an undercover confidential informant.
Freeman previously pleaded guilty to conspiracy to distribute cocaine and faces a mandatory minimum sentence of five years in prison and a maximum of 40 years in prison when sentenced on July 31.
Alex Burnett’s sentencing follows the 14 year sentence imposed on his father, Robert Burnett, 67, of Carrollton.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Brim Reaper. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to the federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principle mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Eric M. Hurt and Special Assistant Rebecca Dunnan of the Department of Justice Organized Crime and Gang Section 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. 4:17-cr-111.
Felon Who Fled from Police Sentenced to 60 Months in Prison for Possessing a FirearmRead the Press Release
St. Louis, Missouri – Leneko Waller, 26, of St. Louis, Missouri was sentenced to 60 months in prison for being a felon in possession of a firearm. He appeared in federal court today before U.S. District Judge Ronnie L. White.
According to the plea agreement, on October 5, 2019, officers with St. Louis Metropolitan Police Department received a radio call regarding an SUV chasing a white sedan in the area. Officers observed the white sedan driving erratically at Mullanphy and N. 16th. Officers then observed a white SUV chasing the sedan. The SUV pulled into the BP gas station at 2005 N. Florissant. Officers shined a light into the SUV and saw Waller driving the vehicle with no other passengers. The SUV then left the lot at a high rate of speed, made traffic violations, and was observed to be fishtailing. The SUV traveled through multiple stop signs and drove on the wrong side of the road, forcing other vehicles to pull to the side of the road to avoid being struck. Approximately five minutes later, a radio call reported a white SUV had crashed at 10th Street and St. Louis Ave. and the driver had fled to the Days Inn at 2810 N. 9th Street wearing a black t-shirt and beige pants. As officers arrived at the Days Inn, they observed Waller in the parking lot matching the description of the 911 call and as the same person officers saw driving the SUV. Officers arrested Waller for fleeing and determined he was in possession of the key fob for the SUV. Officers located a firearm, a Springfield .40 caliber pistol with an extended magazine containing 19 rounds, beneath the driver’s seat in the vehicle. In the backseat of the vehicle was an insurance card and MO driver’s license issued to Waller.
As part of Waller’s plea agreement, he has agreed to pay the City of St. Louis $15,000 in damages he caused to St. Louis City property during his flight from law enforcement.
This case was investigated by the St. Louis Metropolitan Police Department.
Felon Charged with Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Lawrence man was charged yesterday with being a felon in possession of a firearm and ammunition.
Stephen Skeirik, 36, was charged by criminal complaint with being a felon in possession of a firearm and ammunition. Skeirik is currently serving a state sentence and is scheduled to appear in federal court in Boston on July 23, 2020.
According to charging documents, on Feb. 27, 2020, police observed Skeirik and another individual engage in a suspected drug transaction. When detectives approached Skeirik, he ran and threw a loaded Rugar .380 caliber pistol into a neighboring yard. During a search of his home detectives located another loaded firearm – a Rugar 9mm pistol loaded with seven rounds of ammunition, drug paraphernalia, police badges and clothing and handcuffs.
Due to previous convictions punishable by more than one year in prison, Skeirik is prohibited from possessing firearms and ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Massachusetts Parole Board, Lawrence Police Department and the Essex County District Attorney’s Office. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case 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/projectguardian.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Felon Charged with Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Lawrence man was charged yesterday with being a felon in possession of a firearm and ammunition.
Nathaniel Toribio, 22, charged by criminal complaint with being a felon in possession of a firearm and ammunition, made an initial appearance yesterday in federal court in Boston. He was detained pending a detention hearing scheduled for July 20, 2020.
As alleged in court documents, on Nov. 24, 2019, state parole officers were in Lawrence in an attempt to locate Toribio, who had removed his GPS monitoring device and absconded from parole supervision. Upon locating Toribio, the officers discovered an un-holstered, loaded firearm inside Toribio’s waistband. The firearm was identified as a Ruger Security-9 9mm pistol with 10 rounds of ammunition in the magazine. Toribio was arrested and charged in state court.
Due to previous convictions punishable by more than one year in prison, Toribio is prohibited from possessing firearms and ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Massachusetts Parole Board, Lawrence Police Department and the Essex County District Attorney’s Office. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case 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/projectguardian.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Judge Sentences Boone, N.C. Man to 20 Years for Transporting and Possessing Child PornographyRead the Press Release
CHARLOTTE, N.C. – Today, U. S. District Judge Kenneth D. Bell sentenced Thomas Arthur Rittenhouse, 76, of Boone, N.C. to 20 years in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Rittenhouse was ordered to a lifetime of supervised release and to register as a sex offender.
According to filed court documents, evidence presented at Rittenhouse’s trial, and today’s sentencing hearing, between 2014 and 2017, Rittenhouse used peer-to-peer computer networks to obtain dozens of videos depicting children being sexually abused. Rittenhouse also made the child abuse videos available for download by other users of the peer-to-peer network. Evidence presented at trial established that Rittenhouse specifically used search terms associated with child abuse material to seek out such videos and images, and then shared those images with others. A forensic analysis of the devices that belonged to Rittenhouse revealed that he possessed more than 60 videos and 74 images depicting the sexual abuse of children, including adult men sexually abusing prepubescent children. According to court records, the defendant also told law enforcement that he had downloaded and deleted more than 1,000 child pornography files in the previous fifteen years.
In December 2019, a federal jury convicted Rittenhouse of two counts of transportation of child pornography, and one count of possession of child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray commended the Boone Police Department and the North Carolina State Bureau of Investigation for their investigation of this case, and thanked Homeland Security Investigations and the Federal Bureau of Investigation for their assistance.
Assistant United States Attorney Alfredo DeLaRosa prosecuted the case for the United States.
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 U.S. 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.projectsafechildhood.gov.
Essentra Fze Admits to North Korean Sanctions and Fraud Violations, Agrees to Pay FineRead the Press Release
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 Department of Justice 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.
Elmira Man Charged with Multiple Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Brian Thomas, 59 of Elmira, NY, was arrested and charged by criminal complaint with receipt, possession, and distribution of child pornography. Due to Thomas’ previous criminal history involving child sexual exploitation crimes, the charges carry an enhanced minimum penalty of 15 years in prison, an enhanced maximum penalty of 40 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, on March 29, 2020, the defendant distributed to an undercover FBI Task Force Officer child pornography depicting the sexual abuse of several prepubescent children online. After using IP information to trace the child pornography, investigators located Thomas and executed a search warrant at his residence. They seized digital storage devices, including a computer and thumb drive. A preliminary forensic examination found evidence that Thomas received and possessed child pornography on both devices.
The defendant is currently a registered sex offender, following prior New York State convictions for child sexual abuse, child pornography, and child exploitation crimes.
Thomas was most recently released from state prison in 2014, following a three year prison term.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson, and is being held pending a detention hearing scheduled for July 23, 2020.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, Corning Office, under the direction of Special Agent-in-Charge Stephen Belongia, and the Elmira Police Department, under the direction of Chief Joseph Kane.
Anyone with information regarding this defendant is asked to contact the Corning FBI Office at 1-607-962-9761.
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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Drug trafficker sentenced to 35 yearsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Michael L. Jones, 38, Kokomo, Ind. was sentenced to 35 years in federal prison and 5 years of supervised release by U.S. District Court Judge James R. Sweeney II.
“Holding Mr. Jones accountable for his drug trafficking dealings, will hopefully help restore some peace and tranquility in the Kokomo neighborhoods he was infecting,” said Minkler. “My message to those who choose to sell illegal drugs and spread the addictions that follow, is that if you don’t choose a different path then you will be held accountable and experience the wrath of federal prosecution.”
From late of 2017 to May 1, 2018, Drug Enforcement Administration (DEA) Indianapolis District Office, Internal Revenue Service Criminal Investigation, and the Kokomo Police Department conducted an extensive investigation that resulted in the federal arrest of 15 Kokomo, Indiana residents including Jones.
During the investigation, agents seized approximately 17 pounds of methamphetamine, 2 pounds of cocaine, 2 ounces of heroin, 122 grams of fentanyl, $37,000 in drug proceeds and 24 firearms.
In November 2019, Mr. Jones was one of four defendants found guilty after a three week jury trial. Jones was convicted of the following federal offenses: Conspiracy to possess with intent to distribute and to distribute controlled substances, distribution of 50 grams or more of methamphetamine, possession with intent to distribute 5 grams or more of methamphetamine and heroin, felon in possession of a firearm, and laundering of monetary instruments.
This case was the result of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and the Kokomo Police Department.
DEA Assistant Special Agent in Charge, Michael Gannon said, “The 35 year sentence for Mr. Jones was justice for the fine citizens of Kokomo. Mr. Jones was one of the most violent drug traffickers in the city of Kokomo and had an extensive criminal history. He used violence, fear and intimidation as a platform to feed his illegal activities. This long prison sentence allows the citizens of Kokomo to sleep better and puts all drug dealers on notice that DEA and their state, local and federal counterparts will utilize all resources available to hold violent offenders accountable. DEA thanks the Kokomo Police Department and the United States Attorney’s Office for their outstanding work.”
“The laundering of illegal drug proceeds is essential to finance these illegal organizations,” said Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation Chicago Field Office. “This 35-year sentence of Mr. Jones sends a strong message to the community that IRS Criminal Investigation will put in the work required to follow the money and bring these criminals to justice. IRS-CI is proud to have contributed our financial expertise to this investigation which has had a direct impact on the safety of the Kokomo community.”
“The Kokomo Police Department appreciates the hard work of our partners at the DEA and United States Attorney’s Office.” said Kokomo Police Department Captain Tonda Cockrell. “The dismantling of the Drug Trafficking Organization of Reggie Balentine, Michael Jones, and Pierre Riley had a significant effect on the Kokomo community. The sentences handed down by the federal courts has sent a clear message as to the impact of this criminal activity.”
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 organizations that distribute methamphetamine and or heroin. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.1, 3.3.
Drug Dealer Who Sold Fentanyl to Overdose Victim Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDGARDO RIVERA, also known as “Eggy,” 28, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 138 months of imprisonment, followed by four years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, on July 17, 2017, the Southington Police Department and emergency medical personnel responded to a Southington residence on a report of an unresponsive male. At the residence, medical personnel pronounced a male victim deceased of a suspected drug overdose. Investigators collected bags, which were later found to contain fentanyl, from the scene.
The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be “acute fentanyl toxicity.”
The investigation revealed that the victim purchased fentanyl from Rivera the day before the victim died from ingesting the drug.
In May and June 2018, law enforcement conducted controlled purchases of fentanyl and heroin from Rivera.
Rivera has been detained since October 5, 2018, when he was arrested on a criminal complaint. At the time of his arrest, he was found in possession of approximately 300 grams of controlled substances containing heroin and fentanyl, a loaded 9mm pistol, and more than $14,000 in cash.
On May 23, 2019, Rivera pleaded guilty to one count of possession with intent to distribute, and distribution of, 40 grams or more of fentanyl, and one count of possession of a firearm in furtherance of a narcotics trafficking offense.
U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their prison term and are not eligible for parole.
This investigation was conducted by the Drug Enforcement Administration’s New Haven Task Force, U.S. Marshals Service and Southington Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Denver Developer Sentenced for Arson in Conjunction with Grove Street FireRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Michael Marte, age 55, of Denver, was sentenced today to serve 120 months (10 years) in federal prison followed by 3 years of supervised release for arson in connection with the fire at 1920 and 1930 Grove Street. He was also ordered to pay $2,894,443 in restitution to the victims of his crime. Marte appeared at the hearing in custody. He was remanded at the conclusion of the sentencing hearing. The Denver Division of the ATF and the Denver Fire Department joined in the announcement.
According to the stipulated facts contained in Marte’s plea agreement, starting in approximately May of 2017, the defendant was hired by an Australian real estate developer to oversee a substantial construction project in West Denver. The developer had purchased two residential lots for redevelopment on Grove Street. The project consisted of scrapping two single home residences and replacing them with two separate multi-unit buildings on each lot. Each building contained seven townhomes. Marte was paid an annual salary of $200,000 to supervise the construction. The project continued into early 2018, when both buildings were in the final phase, complete with roofing, siding, doors and windows. Interior finishing touches were still needed.
On May 10, 2018, the victim developer travelled to Denver from Australia for purposes of meeting with the defendant and inspecting the progress of the project. However, around 2:00 a.m. on May 10, 2018, while the developer was still on a plane to Denver, both buildings became engulfed in a fire which caused total destruction of both units. The loss was estimated at $4 million. The Denver Fire Department characterized the fire as a “three-alarm blaze” meaning it required approximately half of Denver’s Fire Department to extinguish it. They fought the fire for approximately 8 hours.
Denver Fire Investigators and ATF agents quickly suspected arson. One key piece of evidence was surveillance from a video doorbell camera, which was provided by a nearby resident. It showed a vehicle identical to the defendant’s driving into the area shortly before the blaze began. It also showed large billows of smoke and flames rising from the buildings. Another surveillance video showed a man of Marte’s description quickly walking away after the fire started. Investigators found clothes that had fire accelerant on them that were matched to the defendant through DNA.
The investigation also uncovered that during the construction the defendant purchased a $4 million insurance policy on the property with himself names as the beneficiary. Shortly after the fire he quickly attempted to obtain the insurance money. Those attempts failed.
“Mr. Marte thought he could steal $4,000,000 by igniting a fire that destroyed someone else’s property and put lives at risk,” said U.S. Attorney Jason Dunn. “But arson is a serious crime that has serious criminal consequences, as Mr. Marte has now discovered the hard way.”
“The collaborative effort between ATF, the Denver Fire Department and the United States Attorney’s Office lead to today’s sentence for Mr. Marte,” said Acting Denver ATF Special Agent in Charge Bradley Engelbert. “ATF will always work to bring violent criminals to justice and are proud of our partnerships across law enforcement and fire services. We are thankful that no firefighters were injured by Mr. Marte’s actions.”
“This very important accomplishment would not be possible without the hard work and dedication of numerous people,” said Fire Chief Todd Bower. “I would personally like to thank the members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Department of Justice who all have worked in a collaborative partnership with the Fire Investigators from the Denver Fire Department to secure this conviction.”
The sentence was pronounced by U.S. District Court Judge William J. Martinez. Marte was charged by indictment on January 6, 2018, and pleaded guilty on November 25, 2019. This case was investigated by the Denver Division of the ATF and the Denver Fire Department. The defendant was prosecuted by Assistant U.S. Attorney Tim Neff.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 18-cr-00573.
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.
Darien Center Man Sentenced for Receiving Child Pornography from Young GirlsRead 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 Alexander Seegar, 30, of Darien Center, NY, who was convicted of receipt of child pornography, was sentenced to serve 96 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that Seegar, posing as a 16 or 17-year-old boy, was sexting 10-12 year old female students at a school in Niagara County. The defendant used the Instagram profile “davidlissachi” to communicate with the girls and asked them for sexually explicit photos. Seegar also communicated with other minors between the ages of 10 and 15 and asked them to send him sexually explicit photos in exchange for pictures of male genitalia. The defendant was found in possession of numerous photos containing child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in Charge Stephen Belongia, and the Lewiston Police Department, under the direction of Chief Frank Previte.
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Convicted Felon Pleads Guilty to Illegal Possession of a Firearm During a Domestic Violence IncidentRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Jeremy Rubin, 32, of Lafayette, Louisiana, pled guilty today before U.S. District Judge Robert R. Summerhays, to possession of a firearm and ammunition by a convicted felon.
On August 19, 2018, Lafayette Police Department officers responded to a domestic disturbance call. When they arrived on the scene, officers made contact with Rubin’s girlfriend who explained that Rubin had threatened her, then directed her into a bedroom, placed a handgun to her head and stated that she did not deserve to live. Rubin denied having a firearm, but the victim advised the officers that Rubin had secured the firearm inside a case in his vehicle. A search warrant was granted for the vehicle and a Hi-Point C9 9mm firearm and six bullets were recovered from a case bearing Rubin’s name. A check through NCIC revealed that the firearm had been reported stolen.
Rubin has a prior 2008 felony robbery conviction. As a result of his prior felony conviction, Rubin is prohibited by federal law from possessing firearms or ammunition.
At sentencing, Rubin faces up to 10 years in prison, three years of supervised release, and a $250,000 fine, as well as forfeiture of the firearm and ammunition related to this offense.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative. PSN is a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. PSN plays a major role in the Department of Justice’s violent crime reduction strategy. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Clearfield County Tax Preparer Pleads Guilty in Federal CourtRead the Press Release
PITTSBURGH - A Clearfield County woman waived indictment and pleaded guilty in federal court to a charge of aiding and assisting in the preparation or filing of a false income tax return, United States Attorney Scott W. Brady announced today.
Kathy Billotte, age 59, of Frenchville, Pennsylvania, pleaded guilty before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Billotte was a tax return preparer and operated a tax return preparation business known as "K B Tax Services" in Clearfield County. She falsified annual income tax returns prepared for at least 15 individuals during the period 2013 through 2017, ensuring the individuals received tax refunds to which they were not entitled. Specifically related to the offense to which she pleaded guilty, Billotte prepared and filed on February 26, 2016, a 2015 federal income tax return for a taxpayer identified as "T.G." on which she falsely and fraudulently reported that he/she operated a private business and incurred business expenses, as well as inflated unreimbursed business expenses and charitable donations. The total tax loss to the Internal Revenue Service or all 15 clients was $196,105.
Judge Schwab scheduled sentencing for November 18, 2020, at 11:30 a.m. The law provides for a total sentence of not more than three years in prison, a fine not to exceed $250,000, 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. Billotte was released on bond pending sentencing in the case.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Billotte.
Charleroi Man Indicted on Charges Relating to the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH - A resident of Charleroi, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of production and attempted production of material depicting the sexual exploitation of a minor, receipt of material depicting the sexual exploitation of a minor, and attempted coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney Scott W. Brady announced today.
The five-count Indictment, returned on June 3, 2020, named Joey Leroy Barton, age 49, of Charleroi, Pennsylvania, as the sole defendant.
According to the Indictment, from February 18, 2019 until on or about November 10, 2019, Barton coerced and induced a child victim to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct and, on March 28, 2019 and on April 10, 2019, Barton received digital images depicting the sexual exploitation of the minor.
The law provides for a maximum total sentence of not more than life in prison, a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Department of Homeland Security-Homeland Security Investigations, the Roseville (Minnesota) Police Department, and the North Strabane Police Department conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
California Man Charged with COVID-Relief FraudRead the Press Release
A California man was arrested today and charged with fraudulently seeking over $8.5 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Nicola T. Hanna of the Central District of California.
Andrew Marnell, 40, of Los Angeles, California, was charged by criminal complaint, unsealed today upon his arrest, in the Central District of California with one count of bank fraud.
The complaint alleges that Marnell obtained approximately $8.5 million in PPP loans through applications to insured financial institutions, and others, on behalf of different companies. The complaint alleges that Marnell caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective business operations and payroll expenses. The complaint also alleges that, in further support of the fraudulent loan applications, Marnell submitted fake and altered documents, including fake federal tax filings and employee payroll records. The complaint also alleges that these loan applications were made by using false and fraudulent identifications that were aliases of Marnell.
The complaint further alleges that Marnell then transferred the fraudulently-obtained loan proceeds to his brokerage account to make risky stock-market bets and similarly spent hundreds of thousands of dollars in fraudulently-obtained loan proceeds at a Las Vegas casino.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is 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 2020, Congress authorized over $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 one 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.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the FBI, 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 also provided assistance in the investigation. Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kerry Quinn of the Central District of California are prosecuting the case.
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.
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.
Boulder County Woman Sentenced to Federal Prison for Stealing More Than $429,000 from Federal GovernmentRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Kathleen McCalib, age 52, of Boulder, was sentenced to serve 8 months in federal prison, followed by 3 years on supervised release for theft of government funds. McCalib was also ordered to pay $429,000 in restitution to her victims. She appeared at the sentencing hearing free on bond, and was ordered to report to a facility designated by the U.S. Bureau of Prisons. The Offices of the Inspector General for both the Social Security Administration and the Office of Personnel Management joined in today’s announcement.
According to the stipulated facts contained in the plea agreement, McCalib’s father died in late 2006. At the time he died, he was receiving both Social Security retirement benefits and a civil service retirement pension from his time as a federal employee. The federal government was not informed of his death, so these payments continued to be deposited each month into a joint account that McCalib held with her father. For about the next twelve years, McCalib continued to spend these funds, frequently forged her deceased father’s signature on checks, including large checks to herself that she wrote, and then endorsed on the back with her own signature. She occasionally paid a home mortgage from the account. By the time law enforcement caught up with her, McCalib had taken and spent $429,454.46 in federal government money to which she was not entitled.
“Ms. McCalib stole from taxpayers by cashing electronic checks issued to her deceased father,” said U.S. Attorney Jason Dunn. “Now she will have the opportunity to repay that theft with not only her money, but with her time in a federal prison.”
“The theft of Government funds is a Federal crime that directly impacts the American taxpayer,” said Norbert E. Vint, Deputy Inspector General, performing the duties of the Inspector General, Office of Personnel Management. “This sentencing is an important step toward restoring the financial integrity of the retirement program and the trust fund.”
“For over a dozen years, Ms. McCalib failed to report her father’s death, and instead took over $74,000 in Social Security benefits knowing that it was not her money and intending to put it to her own use. The Social Security Administration (SSA) Office of the Inspector General (OIG) will continue to work closely with SSA and other agencies to identify those who misuse benefits after someone dies,” said Gail S. Ennis, Inspector General of Social Security. “I want to thank the Office of Personnel Management OIG for its efforts in investigating this case, and the United States Attorney’s Office’s for bringing this individual to justice.”
McCalib was charged by Information on December 19, 2019. Her guilty plea was entered on January 14, 2020. She was sentenced by U.S. District Court Judge Raymond P. Moore.
This case was jointly investigated by the Inspector General offices of both the Office of Personnel Management and the Social Security Administration. The sentencing was handled by Assistant U.S. Attorney Bryan D. Fields.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-532.
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
Bakersfield Man Pleads Guilty to Destroying Evidence in a Federal InvestigationRead the Press Release
FRESNO, Calif. — Jerome Roberson, 33, of Bakersfield, pleaded guilty today to destroying evidence in a federal investigation, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Dec. 2, 2019, Roberson was facilitating prostitution in the Bakersfield area using his cellphone and by other means. At the time, federal agents were investigating Roberson due to his involvement in the Country Boy Crip gang in Bakersfield. Roberson smashed his cellphone in an effort to conceal evidence when he was confronted by federal agents. On Dec. 17, 2019, Roberson was charged with using a cellular device to facilitate interstate prostitution and obstruction of justice.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
Roberson is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 16. Roberson faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Attorney General William P. Barr Announces the Appointment of Prim F. Escalona as Interim U.S. Attorney for the Northern District of AlabamaRead the Press Release
WASHINGTON – Attorney General William P. Barr announced today the appointment of Prim F. Escalona as Interim U.S. Attorney for the Northern District of Alabama, pursuant to 28 U.S.C. § 546.
As Interim U.S. Attorney, Escalona will serve as the Northern District of Alabama’s chief federal law enforcement officer, supervising an office of approximately 48 Assistant U.S. Attorneys, 38 support staff, and 12 contract support staff. Escalona will be responsible for prosecuting federal criminal offenses and representing the United States in civil litigation in the district.
“I am pleased to appoint Prim F. Escalona as Interim U.S. Attorney for the Northern District of Alabama. Prim is a dedicated public servant with extensive legal experience. Prim’s commitment to preserving the rule of law and dedication to the mission of the Department of Justice will make her an outstanding U.S. Attorney for her home state of Alabama,” said Attorney General William P. Barr.
“Prim is an exceptional lawyer, an excellent manager, and a person of great integrity and the highest ethical standards. Prim has been front and center in our efforts to advance the Department’s legislative agenda with Congress, working on issues ranging from child exploitation to violent crime reduction,” said Stephen E. Boyd, Assistant Attorney General of the Department of Justice’s Office of Legislative Affairs, and a native of Birmingham, Alabama. “Prim played an integral role in the roll out of Project Safe Neighborhoods (PSN), the Department’s successful anti-crime initiative. PSN is based on building strong working relationships between the Department and the local law enforcement community, and I know Prim will enthusiastically bring that perspective to her work in the Northern District. Prim shares the values of the people of Alabama, and police forces across the state can rest assured that they have a strong ally in their U.S. Attorney.”
Escalona has held multiple leadership positions within the Department of Justice. For the past two years, Escalona has served in the Department’s Office of Legislative Affairs as the Principal Deputy Assistant Attorney General, where she managed an expansive legislative portfolio and helped establish and manage a new Department component, the State and Local Law Enforcement Coordination Section. Prior to her time in the Office of Legislative Affairs, Escalona served in the Department of Justice’s Office of Legal Policy as a Deputy Assistant Attorney General, where she developed and reviewed policy initiatives for the Attorney General.
Prior to her tenure at the Department of Justice, Escalona was an associate at Maynard, Cooper & Gale, a visiting assistant professor at the University of Alabama School of Law, a Deputy Solicitor General in the Office of the Attorney General of the State of Alabama, and a law clerk for the U.S. Court of Appeals for the Eleventh Circuit in Montgomery, Alabama. Escalona also served as a legislative assistant for two members of the U.S. Senate.
Escalona received her Juris Doctor degree from the University of Alabama School of Law, where she graduated summa cum laude and Order of the Coif. Escalona was a member of the Bench and Bar Legal Honor Society, and received the Harrison Award and the Dean Thomas W. Christopher Award. Escalona received her Bachelor of Arts degree in Political Science and Sociology from Birmingham-Southern College, where she graduated magna cum laude.
For more information about the U.S. Attorney’s Office for the Northern District of Alabama, please visit https://www.justice.gov/usao-ndal.
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.
Attorney General William P. Barr Announces the Appointment of Prim F. Escalona as Interim U.S. Attorney for the Northern District of AlabamaRead the Press Release
Attorney General William P. Barr announced today the appointment of Prim F. Escalona as Interim U.S. Attorney for the Northern District of Alabama, pursuant to 28 U.S.C. § 546.
As Interim U.S. Attorney, Escalona will serve as the Northern District of Alabama’s chief federal law enforcement officer, supervising an office of approximately 48 Assistant U.S. Attorneys, 38 support staff, and 12 contract support staff. Escalona will be responsible for prosecuting federal criminal offenses and representing the United States in civil litigation in the district.
“I am pleased to appoint Prim F. Escalona as Interim U.S. Attorney for the Northern District of Alabama. Prim is a dedicated public servant with extensive legal experience. Prim’s commitment to preserving the rule of law and dedication to the mission of the Department of Justice will make her an outstanding U.S. Attorney for her home state of Alabama,” said Attorney General William P. Barr.
“Prim is an exceptional lawyer, an excellent manager, and a person of great integrity and the highest ethical standards. Prim has been front and center in our efforts to advance the Department’s legislative agenda with Congress, working on issues ranging from child exploitation to violent crime reduction,” said Stephen E. Boyd, Assistant Attorney General of the Department of Justice’s Office of Legislative Affairs, and a native of Birmingham, Alabama. “Prim played an integral role in the roll out of Project Safe Neighborhoods (PSN), the Department’s successful anti-crime initiative. PSN is based on building strong working relationships between the Department and the local law enforcement community, and I know Prim will enthusiastically bring that perspective to her work in the Northern District. Prim shares the values of the people of Alabama, and police forces across the state can rest assured that they have a strong ally in their U.S. Attorney.”
Escalona has held multiple leadership positions within the Department of Justice. For the past two years, Escalona has served in the Department’s Office of Legislative Affairs as the Principal Deputy Assistant Attorney General, where she managed an expansive legislative portfolio and helped establish and manage a new Department component, the State and Local Law Enforcement Coordination Section. Prior to her time in the Office of Legislative Affairs, Escalona served in the Department of Justice’s Office of Legal Policy as a Deputy Assistant Attorney General, where she developed and reviewed policy initiatives for the Attorney General.
Prior to her tenure at the Department of Justice, Escalona was an associate at Maynard, Cooper & Gale, a visiting assistant professor at the University of Alabama School of Law, a Deputy Solicitor General in the Office of the Attorney General of the State of Alabama, and a law clerk for the U.S. Court of Appeals for the Eleventh Circuit in Montgomery, Alabama. Escalona also served as a legislative assistant for two members of the U.S. Senate.
Escalona received her Juris Doctor degree from the University of Alabama School of Law, where she graduated summa cum laude and Order of the Coif. Escalona was a member of the Bench and Bar Legal Honor Society, and received the Harrison Award and the Dean Thomas W. Christopher Award. Escalona received her Bachelor of Arts degree in Political Science and Sociology from Birmingham-Southern College, where she graduated magna cum laude.
For more information about the U.S. Attorney’s Office for the Northern District of Alabama, please visit https://www.justice.gov/usao-ndal.
Attorney General William Barr Assesses the Threats Posed by the Global Ambitions of the People's Republic of ChinaRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney General William Barr addressed an audience of corporate and academic leaders at the President Gerald R. Ford Museum in Grand Rapids, Michigan, on the threats posed by the People’s Republic of China to American business and academic interests. Following his speech, Deputy Assistant Attorney General Adam Hickey of the National Security Division, and United States Attorneys Andrew B. Birge, Western District of Michigan, and Matthew Schneider, Eastern District of Michigan, discussed the Department’s China Initiative, a program designed to counter those threats and protect American business and ingenuity.
Following Attorney General Barr’s speech and the presentation on the China Initiative, Deputy Assistant Attorney General Hickey and U.S. Attorneys Birge and Schneider took questions from attendees. Also available to the audience were Special Agent in Charge Steven D’Antuono of the Detroit Field Division of the FBI, Special Agent in Charge Dan Clutch of the Department of Commerce-Office of Export Enforcement-Chicago Regional Office, and Deputy Special Agent in Charge Angie Salazar of Immigration and Customs Enforcement-Homeland Security Investigations-Detroit Division.
“Attorney General Barr offered a clear-eyed assessment of the threats we face from the People’s Republic of China and what it will take for our country to respond,” said U.S. Attorney Andrew Birge. “The initiative we discussed after his remarks presented the audience with a similarly stark picture and the law enforcement resources we can make available to help protect our businesses and institutions and, ultimately, our national security.”
“There is no doubt in my mind that the largest economic, military, and geopolitical threat to the United States is the communist government of the People’s Republic of China. It is time that Michigan businesses recognize the China threat with open eyes,” said U.S. Attorney Matthew Schneider. “Our businesses must realize they are dealing with a regime whose goal is often to rob them of their business information, replicate it in China, and then kick businesses out of the marketplace.”
“Michigan, and particularly the Grand Rapids area, has long been synonymous with advanced manufacturing and American ingenuity. That is why it made perfect sense for the Attorney General to come here to deliver his policy speech about the threats American industry faces from the Chinese Communist Party,” said Adam S. Hickey, Deputy Assistant Attorney General of the National Security Division. “This dialogue with Michigan’s corporate and academic leaders was a terrific success, because it provided them with an accurate view of the threat landscape, which should better prepare them to protect themselves.”
A special thanks to Elaine Didier, Director of the Gerald R. Ford Museum and to the corporate and academic institution leaders who attended.
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Atlanta man convicted of armed assault of federal mail carrierRead the Press Release
ATLANTA, Ga. – Michael Terrell has pleaded guilty to forcibly assaulting a federal mail carrier, and brandishing a firearm in furtherance of that crime of violence.
“Terrell’s conduct is especially egregious as he showed no regard for the life of the mail carrier who was simply doing his job,” said U.S. Attorney Byung J. “BJay” Pak. “This kind of senseless attack jeopardizes the safety of both postal employees and the general public.”
“The safety and security of Postal Service employees is core to the mission of the Postal Inspection Service,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “We will continue to work with our law enforcement partners to help protect our communities from the significant threats posed by criminals.”
“Crime, and the people who commit them, are destroying our communities,” said Arthur Peralta, ATF Special Agent in Charge. “Mr. Terrell’s actions show his complete disregard for his community and the safety of those who live there.”
“This assault on a representative the United States Postal Service (USPS) is disturbing and unacceptable. Criminals who would seek to harm public servants and people who seek to use the USPS as a means to traffic drugs must be held accountable to the fullest extent of the law,” said Atlanta Interim Police Chief Rodney Bryant.
According to U.S. Attorney Pak, the charges, and other information presented in court: On March 2, 2019, the DeKalb County Police Department and U.S. Postal Inspectors investigated the armed assault of a mail carrier at a restaurant in Tucker, Georgia. The mail carrier had just delivered a parcel to the cashier at the restaurant when Terrell grabbed the parcel and followed the mail carrier to his postal vehicle.
Terrell then attempted to block the mail carrier’s access to the vehicle, and forced his way inside the vehicle, and took the keys. Terrell began rummaging through the vehicle looking for the missing contents of the parcel, later determined to have been a large quantity of marijuana. Terrell then pulled a firearm on the mail carrier before fleeing the scene.
At the time of the assault, Michael Terrell, 25, of Decatur, Georgia, was under indictment in Fulton County, Georgia, for possession with intent to distribute marijuana and possession of a firearm in furtherance of a felony on December 7, 2018.
Assistant U.S. Attorney Laurel R. Boatright prosecuted the case.
The U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the DeKalb County Police Department, the City of Atlanta Police Department, and the Georgia State Patrol are investigating this case.
This case is bought as a part of the Project Safe Neighborhoods (PSN) initiative. In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Associate of “Born to Kill” Drug Gang Leader Sentenced to Ten Months in Prison for Lying to the FBIRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Hai Nguyen, 37, of New Castle, Delaware, was sentenced to ten months in prison and three years of supervised release by United States District Court Judge J. Curtis Joyner for lying to the FBI during the course of a double homicide investigation.
On the night of August 26, 2014, Tam Le and four associates kidnapped three Philadelphia drug dealers who had failed to pay a substantial drug debt. Le was a member of a gang called “BTK” or “Born to Kill.” Le and his associates transported the three victims to the Schuylkill River, bound them with duct tape, weighed down their bodies, stabbed them, and dumped all three victims into the river. Two victims died in the river while the third somehow managed to crawl out of the river and flag down a passing motorist on Kelly Drive for assistance.
Hai Nguyen was a close friend of Tam Le. Immediately following the murders, Nguyen traveled from Delaware to Le’s house in Philadelphia. Le knew that the Philadelphia Police would be looking to arrest him for the murders, so he asked Nguyen to drive him and his family to New York State. The U.S. Marshals Service eventually hunted down Le and placed him under arrest. He was charged with the murders and convicted at trial. A Philadelphia County jury sentenced him to death.
At the same time, the FBI began investigating the crime in order to bring the other perpetrators, some of whom lived in New York, to justice. On three occasions, the FBI interviewed Hai Nguyen about traveling to Tam Le’s house following the murders. During those interviews, Nguyen repeatedly lied to the FBI and stated that he did not travel to Le’s house that night. The FBI subsequently obtained cell site data from Hai Nguyen’s phone and proved his lies.
“Lying to the FBI or to any federal investigating agency is always a serious offense, one which we will prosecute vigorously,” said U.S. Attorney McSwain. “But lying in the course of a federal double homicide investigation is a sure way to land in prison. This type of criminal dishonesty is reprehensible and will never be tolerated.”
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. Livermore.
15 July 2020
Winchester Man Charged with COVID-Relief FraudRead the Press Release
BOSTON – A Winchester man was indicted yesterday in connection with allegedly filing fraudulent loan applications seeking more than $13 million in forgivable loans guaranteed by the Small Business Administration (SBA) for COVID-19 relief through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Elijah Majak Buoi, 38, was indicted on four counts of wire fraud and one count of making a false statement to a financial institution. Buoi was arrested and charged by criminal complaint in June 2020.
According to the indictment, Buoi is the president and CEO of an information technology services company, Sosuda Tech, LLC. Between April 2020 and June 2020, Buoi allegedly submitted fraudulent applications for over $13 million in PPP loans through SBA-approved lenders. In these applications, Buoi misrepresented the number of employees and payroll expenses and falsely certified that the United States was the primary residence for his employees. Buoi also allegedly submitted falsified documentation in support of his applications for PPP funds. The indictment further alleges that Buoi ultimately received over $2 million in PPP funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was 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 2020, Congress authorized over $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. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal on the PPP loan 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.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making a false statement to a financial institution provides for a sentence of up to 30 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and the Consumer Protection Bureau, Office of Inspector General; Kevin Kupperbusch, Special Agent in Charge of the Small Business Association, Office of Inspector General, Eastern Regional Office; and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General made the announcement today. Assistant U.S. Attorneys Mackenzie Queenin and Carol Head of Lelling’s Office and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case.
Massachusetts residents with information about attempted fraud involving COVID-19 should contact (add our hotline/email). Information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (BCDF) hotline by phone (1-866-720-5721) or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wichita Man Pleads Guilty to Growing MushroomsRead the Press Release
WICHITA, KAN. – A Wichita man who caught law enforcement’s attention when he was shot pleaded guilty today to growing hallucinogenic mushrooms, U.S. Attorney Stephen McAllister said.
Corey A. Logan, 35, Wichita, Kan., pleaded guilty to one count of manufacturing a controlled substance. In his plea, Logan admitted that in March 2018 police were dispatched to his home in the 1900 block of East Maywood. Logan reported being shot by an unknown assailant. Police found a mushroom growing operation in a bedroom of his home.
Sentencing is set for Oct. 2. He could face a penalty of up to 20 years in federal prison. McAllister commended the Wichita Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Lanny Welch for their work on the case.
West Hollywood Man Sentenced to Five Years in Federal Prison for Modern Art Fraud Scheme Involving Sale of Bogus WorksRead the Press Release
LOS ANGELES – A West Hollywood man pleaded guilty today in federal court in Miami to criminal charges stemming from the sale of bogus artworks he claimed were created by famed modern artists, and he was immediately ordered to serve 60 months in federal prison.
Philip Righter, 43, pleaded guilty to three felony charges in a case filed in Los Angeles and admitted selling works he falsely claimed were created by artists such as Jean-Michel Basquiat, Keith Haring, Roy Lichtenstein and Andy Warhol. Righter also admitted using fake artwork as collateral for loans on which he later defaulted, and using bogus pieces for fraudulent write-offs on his income tax returns.
Righter pleaded guilty to three felony offenses – wire fraud, aggravated identity theft and tax fraud – and was sentenced by United States District Judge Marcia G. Cooke of the Southern District of Florida. In total, Righter’s scheme attempted to bilk victims out of well over $6 million, and he caused losses of at least $758,265. Additionally, his fraudulent tax returns cost the United States more than $100,000, according to a plea agreement in the case.
Judge Cooke also sentenced Righter to 60 months in federal prison in relation to a case filed by federal prosecutors in Miami. Righter pleaded guilty in that case in March and admitted trying to sell Haring and Basquiat forgeries to the owner of a Miami art gallery. The sentences in both cases will run concurrent with each other.
In the Los Angeles case, Righter admitted he executed a scheme to defraud people, businesses and the United States from 2016 until June 2018 by using counterfeit and fraudulent art that he asserted was genuine. Righter supported these false claims with fraudulent provenance – or chronology-of-origin – documents that he had created.
Before August 2016, Righter generally conducted these fraudulent transactions in his own name. But after the FBI and the Los Angeles Police Department interviewed him about bogus Keith Haring art he attempted to sell to the Miami art gallery, Righter began using the names of other people to execute his scheme, court documents state.
To make the fake artwork appear to be genuine, Righter ordered and used embossing stamps that appeared similar to the stamps used by the estates of Basquiat and Haring to authenticate works by these artists.
In furtherance of the scheme, Righter obtained and attempted to obtain numerous loans by using the fraudulent art and accompanying fraudulent provenance documents. For example, in October 2016, using another person’s name, Righter contacted a victim about a loan in which a purported original drawing by Basquiat would be used as collateral. Righter created a fraudulent certificate of authentication letter that purportedly came from Basquiat’s estate. The victim wired a $24,000 loan, on which Righter later defaulted. After Righter’s default, the victim attempted to auction the piece, but the auction house determined the piece was fraudulent, and the victim lost $24,000.
Righter also sold or attempted to sell numerous pieces of fake modern art. In August 2017, using another person’s name, Righter listed a purported 1983 piece of art by Basquiat with the word “Samo” written on it with an art sale website and he provided fake provenance documents. The website sold the piece for $50,000. In 2018, after the piece was determined to be fraudulent, the website had to refund the purchase price to the buyer.
Righter also admitted that he knowingly and willfully included a false W-2 and documentation of a donation of fraudulent art to a charity on his 2015 federal income tax return, which resulted in him fraudulently receiving a refund of $54,858. Righter then signed and filed a false 2015 amended tax return, which claimed a false casualty and theft loss of $2,575,000 related to artwork he claimed had been stolen. In truth, the artwork was fraudulent and had no value. This bogus amended tax return resulted in false carryback loss refunds for 2012, 2013 and 2014 totaling $52,485, according to court documents.
The FBI’s Art Crime Team, the Los Angeles Police Department, and IRS Criminal Investigation investigated this matter.
The Los Angeles case was prosecuted by Assistant United States Attorneys Mark A. Williams and Erik M. Silber of the Environmental and Community Safety Crimes Section.
Venezuelan National Extradited from Trinidad and Tobago Sentenced to 12+ Years in Prison for Smuggling CocaineRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Eduardo Gregorio Azocar, 48, of Venezuela was sentenced to more than 12 years (151 months) in prison and five years of supervised release by United States District Judge Harvey Bartle, III, for the attempted distribution of more than 30 kilograms of cocaine for purpose of unlawful importation to the United States, and the distribution of more than 4 kilograms of cocaine for purpose of unlawful importation to the United States.
Azocar, who resided in Venezuela, used the Caribbean country of Trinidad and Tobago to facilitate his distribution of kilogram quantities of cocaine. In the summer of 2015, the Drug Enforcement Administration (DEA) and Trinidadian law enforcement received information that Azocar had 50 kilograms of cocaine that he wanted to sell to a U.S. buyer. On August 26, 2015, Trinidadian law enforcement agents watched the defendant access a locked storage container in Trinidad to inspect his cocaine. On August 27, 2015, an undercover detective in the United States made a series of telephone calls to Azocar. Posing as a Philadelphia-area resident, the undercover detective said he was interested in buying kilogram quantities of cocaine and negotiated the purchase price with the defendant. Before those negotiations were completed, Trinidadian law enforcement agents searched the storage container and seized a total of 30.4 kilograms of cocaine.
The undercover detective also introduced a confidential source to Azocar. The confidential source traveled from the United States to the island of Trinidad on multiple dates, meeting with Azocar in person in Trinidad. On October 4, 2015, at Azocar’s direction, an associate of Azocar sold to the confidential source 4.1 kilograms of cocaine which was destined for the United States. On October 26, 2015, the confidential source met Azocar in a Trinidadian hotel and paid him $22,500 for the previously negotiated cocaine sale. In a recorded conversation, the defendant told the confidential source: “I’ve been looking for a contact just like you and I found you. I am really happy.” In that same conversation, the confidential source and Azocar discussed the cost of moving the cocaine from Trinidad to Philadelphia, the price of a kilogram of cocaine in Philadelphia, and the price of a kilogram of heroin in Philadelphia.
Azocar was indicted in the Eastern District of Pennsylvania and arrested in Trinidad on June 16, 2016. He fought extradition for years in Trinidadian courts, but was eventually extradited to Philadelphia, PA, on July 23, 2019 to face justice. The defendant pleaded guilty in February 2020.
“Drug trafficking preys on individuals in addiction and makes our entire city less safe,” said U.S. Attorney McSwain. “Narcotics don’t just magically appear on Philadelphia streets -- they are smuggled in by people like Azocar, seeking to profit off the suffering of our people and communities. My Office is committed to working with our law enforcement partners at all levels, and in other jurisdictions and nations, to investigate and convict those who are poisoning our neighborhoods with deadly drugs and put them behind bars, where they belong.”
“Azocar mistakenly thought that he could elude the reach of United States law by remaining outside the US as he sold multi-kilogram quantities of cocaine destined for Philadelphia. As a result of the coordinated efforts of DEA and prosecutors in the US and Trinidad, Azocar was arrested in Trinidad and extradited to Philadelphia to face US justice,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA is most appreciative of the cooperation and support provided by Trinidadian police and prosecutors. DEA has offices around the world and will continue to work tirelessly to extradite significant drug-traffickers like Azocar who pose the greatest threat to our country.”
The case was investigated by the Drug Enforcement Adminstration, and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
Two Rivers Man Indicted on Drug and Gun ChargesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 14, 2020, a federal grand jury indictment was issued against Jonathon A. Erickson, a/k/a “Jonathon A. Jimenez” (age: 29) of Manitowoc, Wisconsin.
The indictment alleges that Erickson possessed an assortment of illegal narcotics, including MDMA, Oxycodone, Clonazepam, Alprazolam, and Marijuana with the intent to distribute them in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(C). If convicted of that charge, Erickson faces up to 20 years of imprisonment. He is additionally charged with being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking crime, contrary to Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A). He faces up to 10 years of imprisonment for possessing a firearm as a felon, and a mandatory 5 years of imprisonment up to a lifetime of imprisonment for possessing the firearm in furtherance of drug distribution.
This case was investigated by the City of Manitowoc Police Department and the Manitowoc County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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 New Defendants Charged in Violent Kidnapping of Chinese National Whose Remains Were Found Buried in the Mojave DesertRead the Press Release
LOS ANGELES – Two men from the San Gabriel Valley were charged today in federal court for allegedly participating in the kidnapping of Ruochen “Tony” Liao, a Chinese national who was violently abducted from a mall parking lot in San Gabriel two years ago, and whose parents were extorted for $2 million in ransom before Liao died from his injuries.
Anthony Valladares, 28, of Pasadena, and Alexis Ivan Romero Velez, 24, most recently a resident of Azusa, were taken into custody Tuesday during the execution of search warrants by FBI agents and members of the San Gabriel Valley Safe Street Task Force. Federal prosecutors this morning filed a criminal complaint in United States District Court that charges both Valladares and Romero with one count of kidnapping.
Previously in this investigation, two Chinese nationals were charged in a four-count indictment alleging they kidnapped Mr. Liao and attempted to collect $2 million in ransom from Mr. Liao’s family in exchange for the victim’s life. Guangyao Yang, 26, and Peicheng Shen, 34, whose last known U.S. residences were in West Covina, were charged with conspiracy to kidnap, kidnapping, attempted extortion in violation of the Hobbs Act, and threat by foreign communication. Yang and Shen are currently in custody in China on charges filed there related to the kidnapping.
During the investigation, the FBI learned that Valladares and Romero worked with Yang and Shen to conduct the kidnapping, during which Liao was repeatedly beaten and tased into submission, according to the affidavit in support of the complaint. Valladares was the “muscle” hired to intimidate, beat and subdue Liao during the kidnapping, and Romero was the driver of the vehicle used in the kidnapping, according to the affidavit.
Valladares and Romero were arrested Tuesday after making statements about their roles in the kidnapping to investigators. According to the affidavit, Valladares admitted that he was hired to assist in the kidnapping, agreed to accept $1,000 for the job, and restrained Liao during the kidnapping. Romero admitted, according to the affidavit, that he was recruited by Valladares and was the driver during the kidnapping.
After Liao was kidnapped on July 16, 2018, his parents in China received ransom demands and “proof-of-life” photos suggesting that Liao had been badly beaten, blindfolded, and tied up with duct tape. Liao’s parents were told to deposit the ransom payment into Chinese bank accounts within three hours, according to court documents.
Investigators believe Liao was held captive in a closet at a residence in Corona. During his captivity, investigators believe Liao was frequently beaten and ultimately died the night of July 17. During the early morning of July 18, investigators believe Yang and Shen drove to the desert near the town of Mojave to bury Liao’s body.
On July 26, 2019, the FBI laboratory used DNA testing to identify Liao’s remains, which were recovered following a search by the FBI’s Evidence Response Team.
Valladares and Romero are expected to make an initial appearance in U.S. District Court in Los Angeles this afternoon.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The kidnapping charge carries a statutory maximum penalty of life in federal prison.
The investigation into the kidnapping is being conducted by the Federal Bureau of Investigation, with significant assistance by members of the FBI’s Safe Street Task Force, which includes the Pasadena Police Department.
This case is being prosecuted by Assistant United States Attorneys Julia Choe of the Cyber and Intellectual Property Crimes Section and Frances Lewis of the Public Corruption and Civil Rights Section.