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15 July 2020
California Woman Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California woman was sentenced today in connection with paying $9,000 to have an individual take online classes for her son, in order to earn credits to facilitate his graduation from Georgetown University.
Karen Littlefair, 57, of Newport Beach, Calif., was sentenced by U.S. District Court Judge Allison D. Burroughs to five weeks in prison, two years of supervised release which includes 300 hours of community service, and a fine of $209,000. In January 2020, Littlefair pleaded guilty to one count of conspiracy to commit wire fraud.
Littlefair agreed with William “Rick” Singer and others to pay approximately $9,000 to have an employee of Singer’s for-profit college counseling business, The Edge College & Career Network (“The Key”), take online classes in place of Littlefair’s son and submit those fraudulently earned credits to Georgetown to facilitate his graduation. The Key employee allegedly completed four classes for Littlefair’s son at Georgetown and elsewhere, and in exchange, Littlefair paid Singer’s company approximately $9,000. Littlefair’s son graduated from Georgetown, using the credits earned by the Key employee, in May 2018.
Singer previously pleaded guilty and is cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the court documents are allegations. The remaining defendants are presumed not guilty unless and until proven guilty beyond a reasonable doubt in a court of law.
California Business Man Sentenced to Prison for $25 Million FraudRead the Press Release
ALEXANDRIA, Va. – A California man was sentenced today to over 12 years in prison for orchestrating an investment fraud and money laundering conspiracy that caused losses of $25 million.
“Andrew B. Powers stole $25 million from nearly 60 people,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Powers is a con man of the worst sort. His fraud was long-running, well-organized, and relentless. He was motivated by greed and the desire to appear successful, when in fact, he intentionally stole from and deceived his victims for his own self benefit.”
According to court documents, Andrew B. Powers, 45, of Oak Park, and formerly a resident of Virginia, started CommuniClique, a company that he soon claimed had developed an application that allowed businesses to communicate electronically and seamlessly within their businesses, between businesses, and with clients. Powers falsely claimed yearly revenues of $2 million by 2009 and $180 million by 2019. He also falsely claimed to have a number of large corporate clients. In fact, CommuniClique had no revenues and no large corporate clients. In August 2018, after the Virginia State Corporation Commission had prohibited him from soliciting more investments in Virginia, Powers moved his fraud scheme to California. By 2019 he had defrauded investors of approximately $25 million. When he was indicted in July 2019, Powers was using investors’ money to rent a mansion in Palisades, California, overlooking the Pacific Ocean for approximately $35,000 per month.
“Powers created a fake company, cheated investors of tens of millions of dollars, and used it to fund a lavish lifestyle for himself,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “The FBI is committed to rooting out fraud in all its forms, including investment fraud and money laundering schemes like the one Powers perpetrated, which can destroy companies, wipe out the life savings of families, and cost investors millions of dollars.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr. Assistant U.S. Attorneys Jack Hanly and Kimberly Shartar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-213.
Butler Felon Sentenced to Nearly 6 Years in Prison for Drug and Gun CrimesRead the Press Release
PITTSBURGH - A resident of Butler, Pennsylvania, has been sentenced in federal court to 70 months’ imprisonment, followed by four years’ supervised release, on his conviction of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brandon Morris a/k/a Bopp, age 35, of Butler, Pennsylvania.
According to information presented to the court, in June 2016, Pennsylvania State Police arranged for a confidential informant (CI) to buy crack and heroin from Mark Carter. Carter arranged for Brandon Morris to meet the CI. In exchange for $2,000 in pre-recorded funds, Morris gave the CI 3 bricks of heroin and ½ of an ounce of crack.
On June 28, 2016, troopers executed a search warrant on Morris’ residence located on E. Brady Street in Butler, PA. Carter was also staying at the residence. Troopers recovered a plastic bag containing 39.57g of raw heroin, a plastic bag containing 119.36g of crack cocaine, individual packets of heroin, $7,612.00, including pre-recorded funds, a 12-gauge shotgun and ammunition (3 shells), and various items of drug paraphernalia. Due to a prior felony conviction, Morris is prohibited under federal law from possessing a firearm or ammunition.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Morris.
Boise Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE - Kimber Jac Marston, 44, of Boise, pleaded guilty to possession with intent to distribute more than fifty grams of methamphetamine, U.S. Attorney Bart M. Davis announced today. Marston was indicted by a federal grand jury in Boise on March 12, 2019. Sentencing is set for October 6, 2020, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
According to court records, while on parole for a state drug conviction, Marston’s residence was searched by probation and parole officers with the Idaho Department of Correction. During the search, Marston was found in possession of 323.25 grams of methamphetamine that he admitted he intended to distribute to others. Also in Marston’s possession was a digital scale and plastic packaging materials commonly used to weigh and package methamphetamine for distribution.
Marston faces a statutory mandatory minimum sentence of at least ten years and a maximum sentence of life in federal prison, a $10,000,000 fine, and at least five years of supervised release.
This case was investigated by the Boise Police Department and Idaho Department of Correction.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office, with funds provided by the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA). The HIDTA program is a national drug-prohibition enforcement program run by the United States Office of National Drug Control Policy. The Oregon-Idaho HIDTA is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations. Idaho uses HIDTA funds to investigate and prosecute drug trafficking organizations that operate in and around Ada, Canyon, and Bannock counties.
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Bethlehem-Area Chiropractor Pleads Guilty to Health Care FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Nicholas Bufanio, 53, of Hellertown, PA pleaded guilty to one count of health care fraud before United States District Court Judge Joseph F. Leeson, Jr.
Bufanio is a doctor of chiropractic medicine, who has operated Community Chiropractic, Inc. in Bethlehem, PA, since at least 2011. The defendant submitted fraudulent claims to health insurers of approximately $236,000 for chiropractic services he did not render. He routinely submitted claims for patients who failed to appear for scheduled appointments, falsely asserting that he saw the patients and provided chiropractic care. He also submitted fraudulent claims for days when he was not even in the office.
Additionally, from November 2017 until approximately December 2018, Bufanio was convalescing at home. Although he did not see patients during this time, the defendant submitted bogus claims to health insurers pretending that he was keeping normal office hours and rendering chiropractic treatment.
“Physicians and other medical professionals who fraudulently bill insurance companies are thieves – they steal from both the companies and the honest subscribers,” said U.S. Attorney McSwain. “Dr. Bufanio was arrogant enough to think that he could get paid for doing nothing. My Office will continue to use every tool at its disposal to investigate, prosecute, and punish this type of fraud.”
“Through our criminal enforcement program, the U.S. Department of Labor, Employee Benefits Security Administration (EBSA), will vigorously pursue those who violate the criminal laws protecting private–sector employee benefit plans,” said EBSA Philadelphia Regional Director Michael Schloss.
The case was investigated by U.S. Department of Labor-Employee Benefits Security Administration, and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Ashburnham Man Pleads Guilty to Firearms OffensesRead the Press Release
BOSTON – An Ashburnham man pleaded guilty yesterday in federal court in Worcester to selling firearms on three occasions in 2019 in Fitchburg.
Terrick Bishoff, 39, pleaded guilty to one count each of unlawful possession or transfer of a machine gun, dealing in firearms without a license and possession of a machinegun without a serial number. U.S. District Court Judge Timothy J. Hillman scheduled sentencing for Oct. 27, 2020. Bishoff was arrested on Sept. 24, 2019 and indicted in October 2019.
On three separate occasions in 2019, Bishoff sold firearms to an individual he did not know in Fitchburg. On May 10, 2019, Bishoff sold a Glock-style pistol without a serial number and 54 rounds of 9mm ammunition in exchange for $580. Bishoff told the buyer that the firearm was “untraceable” and that it had been custom made for a silencer. On May 15, 2019, Bishoff again met with the buyer and sold him a machinegun without a serial number and a 25 round magazine. In return, the individual paid Bishoff $2,500. On June 24, 2019, Bishoff sold the buyer a Glock-style firearm without a serial number, and a magazine, in exchange for $800. Bishoff told the buyer he was getting what he could before authorities started cracking down on firearms without serial numbers.
The charge of unlawful possession or transfer of a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of possession of a machinegun without a serial number provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Joseph Bennett made the announcement. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Kristen Noto of Lelling’s Worcester Branch Office are prosecuting the case.
Anchorage Woman Charged with Filing False Income Tax Returns on Behalf of Other IndividualsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Sanh Sunni Thampithak, a/k/a “Allysia” or “Ally”, 54, of Anchorage, has been charged with fraud and false statements for preparing fraudulent income tax returns on behalf of other individuals.
The criminal complaint alleges that Thampithak had been filing fraudulent tax returns, as an informal tax preparer, for tax years 2015-2017. Specifically, it is alleged that Thampithak did taxes for the Lao community and others in Anchorage, charging them $100-$300 per return, but would obtain unwarranted refunds for her clients by inflating certain Schedule A deductions and expenses, unbeknownst to her clients. It is alleged that Thampithak consistently fabricated the figures in order to generate refunds for her clients, which, in turn, grew her business as a tax preparer.
Thampithak became the subject of a federal investigation after her IP addresses were linked to questionable Forms 1040 that had been referred to IRS Criminal Investigation (IRS-CI). During the course of the investigation, Thampithak knowingly prepared a fraudulent return for an IRS-CI undercover agent, and then lied to investigators to conceal the criminal conduct. Her alleged scheme entailed the filing of at least 13 fraudulent returns that reported approximately $250,000 in false claims, resulting in her clients receiving refunds up to 1,575 percent more than what they were due.
Thampithak routinely misrepresented herself to her clients as a legitimate tax preparer. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
If convicted, Thampithak faces a maximum sentence of up to three years in federal prison, and a fine of up to a $100,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
IRS Criminal Investigation (IRS-CI) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander of the U.S. Attorney’s Office for the District of Alaska.
The charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Alleged Dealer of Ghost Guns and Machinegun Conversion Devices ArraignedRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was arraigned in federal court here today on charges of dealing in firearms without a license and transferring a machinegun.
According to court documents, Davud Sungur, 20, has never had federal firearms license. Sungur allegedly sold weapons on multiple occasions to undercover detectives with the Fairfax County Police Department’s Organized Crime & Intelligence Bureau, who had learned he was selling firearms. Over the course of four separate transactions, Sungur sold detectives ammunition, magazines, and numerous firearms – some of which were “ghost guns” lacking serial numbers that Sungur claimed to have made himself – in exchange for cash.
According to court documents, on two of these occasions, Sungur allegedly also sold detectives devices he claimed to have made using a 3D printer that, after installation, would enable semi-automatic firearms to fire fully-automatically. The ATF tested the machine gun conversion devices and confirmed that they rendered a semi-automatic firearm capable of firing multiple rounds automatically with a single function of the trigger. Homeland Security Investigations executed a search warrant at Sungur’s residence immediately following his arrest and recovered additional evidence, including a MAC-11 subcompact machine pistol and a 3D printer.
Sungur is charged with dealing firearms without a license, and unlawful transfer of a machinegun. A jury trial is scheduled for November 9. If convicted, he faces a maximum penalty of 15 years in prison. 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; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement. Assistant U.S. Attorney John C. Blanchard is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-162.
Air National Guard Members Sentenced for Smuggling Firearms Parts and AccessoriesRead the Press Release
ALBANY, NEW YORK – Three members of the United States Air Force Air National Guard have been sentenced for smuggling firearms parts and accessories into the United States.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent Robert Shearer, Air Force Office of Special Investigations; John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Kevin D. Ronca, age 41, of Amsterdam, New York, was sentenced on October 31, 219 to 3 years of probation, to include 3 months of home detention, and a $5,000 fine. Ronca was a Master Sergeant in the Air National Guard, assigned to the 109th Aircraft Maintenance Squadron at Stratton Air National Guard Base in Scotia, New York. As part of his plea to conspiracy to import firearms, Ronca admitted that he conspired with another Air National Guard Member, Joseph R. Paludi, to smuggle two firearm silencers Ronca had purchased abroad back to Stratton Air Base aboard a military aircraft. The silencers were discovered upon arrival in Scotia.
Paludi, age 34, of Schenectady, New York, was sentenced on November 7, 2019 to 2 years of probation and a $4,000 fine for his role in the conspiracy to import firearms. Paludi was a Technical Sergeant in the Air National Guard, assigned to the 109th Aircraft Maintenance Squadron at Stratton Air Base.
As part of the ensuing investigation, agents discovered that another member of the squadron, Timothy R. Schmitt, age 28, of Galway, New York, also smuggled a silencer and a threaded blackout barrel into the United States aboard a military aircraft. Schmitt, also a Technical Sergeant, pled guilty on October 3, 2019 to possession of an unregistered firearm. He was sentenced today to 2 years of probation and a $5,000 fine.
The case was investigated by the United States Air Force Office of Special Investigations, ATF and HSI, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Acting U.S. Attorney Announces Consent Decree Resolving Claims That Owner of Manhattan Condominium Discriminated Against Tenant on the Basis of DisabilityRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that the United States has entered into a consent decree to settle a federal civil rights lawsuit brought by the United States against 111 EAST 88TH STREET PARTNERS (“111 PARTNERS”), for violating the Fair Housing Act. Specifically, the lawsuit alleges that 111 PARTNERS discriminated against a disabled, rent-controlled tenant (the “Tenant”) by refusing to permit the Tenant to live with an assistance animal to accommodate the Tenant’s disability, as a reasonable accommodation to defendant’s policies, and by interfering with the Tenant’s exercise of his rights under the Fair Housing Act.
Acting U.S. Attorney Audrey Strauss said: “This is yet another lawsuit brought to enforce the rights of tenants with disabilities to live with an assistance animal. With this resolution, we again emphasize that condominiums, cooperatives, landlords, and property managers are required by federal law to provide reasonable accommodations to people with disabilities.”
The Fair Housing Act makes it unlawful to discriminate in the terms and conditions of the sale or rental of, or to otherwise make unavailable or deny, a dwelling based on the prospective buyer or renter’s disability. The law also mandates that reasonable accommodations in rules, policies, practices, and services be provided when necessary to afford equal housing opportunities to persons with disabilities.
According to the allegations in the Amended Complaint filed in federal court:
111 Partners is the owner of certain units in a 61-unit condominium located in New York, New York, and the landlord of the rent-controlled apartment that the Tenant occupies in the building. The Tenant, now 58 years old, has resided in that apartment his entire life and has a long history of depression. In 2006, the Tenant adopted a dog to help alleviate his depression and requested a reasonable accommodation to defendant’s “no pets” policy to allow him to reside with his dog in the apartment. Defendant not only denied the request, but also initiated eviction proceedings against him. While those proceedings were underway, in spring 2015, the Tenant was diagnosed with End Stage Renal Disease, and his depression worsened. The Tenant promptly sought another reasonable accommodation to 111 Partners’ “no pets” policy to allow him to keep his dog in the apartment given the substantial emotional assistance the dog provided and the Tenant’s changed circumstances. 111 Partners constructively denied the request by requiring the onerous disclosure of detailed medical records and other information, despite the Tenant’s already well-substantiated request and defendant’s familiarity with his condition. In June 2017, after his dog died and during the pendency of this litigation, the Tenant again requested a reasonable accommodation to 111 Partners’ “no pets” policy to permit him to adopt another dog for emotional support, and once again, 111 Partners constructively denied the request – requiring extensive documentation despite the fact that the Tenant had continued to provide documents, expert opinions, medical records, and sworn testimony in support of his request.
Under the consent decree approved by U.S. District Court Judge Paul G. Gardephe on July 14, 2020, 111 PARTNERS must:
- Adopt a reasonable accommodation policy regarding requests for assistance animals;
- Comply with certain notice, training, and recordkeeping requirements to ensure that its employees are knowledgeable about and comply with the requirements of the Fair Housing Act;
- Allow the United States to monitor compliance with the consent decree;
- Dismiss all pending state court litigation against the Tenant, including the eviction proceedings commenced in 2006 regarding his request to keep an emotional support animal and termination proceedings commenced in 2019 regarding apartment conditions, and waive all claims to attorney’s fees and costs;
- Grant the Tenant a reasonable accommodation for the remainder of his tenancy, such that he can adopt and reside with a dog for as long as the Tenant lives in the apartment, without submitting any further reasonable accommodation requests.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Brandon Waterman is in charge of the case.
2 More Defendants Charged Federally for Their Roles in Arsons During May 30th Violent Protests in RochesterRead 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 two more defendants have been charged federally in two separate criminal complaints arising from May 30, 2020, violent protests held in the City of Rochester. SHAKELL SANKS, 26, and JAVON HARDY, 24, both of Rochester, NY, have been charged with arson and each face a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Cassie M. Kocher, who is handling the prosecutions of both SANKS and HARDY, stated that on May 30, 2020, Rochester Police Department (RPD) officers were assigned to assist with crowd control during protests scheduled at the Public Safety Building (PSB) on Exchange Boulevard. During the late-afternoon/early evening, those protests, being held in response to the death of George Floyd in Minneapolis, Minnesota, turned violent and resulted in vandalism, damaged property, looting, and fires.
At approximately 6:00 p.m. on May 30th in downtown Rochester, defendant SANKS, assisted others in attempting to light fabric on fire. The fabric was stuffed into the gas tank of a parked car belonging to the City of Rochester Family Crisis Intervention Team (FACIT). At approximately 6:20 p.m., the FACIT car began to smoke and shortly thereafter became engulfed in flames. The car was a total loss. Defendant SANKS was eventually identified as one of several individuals involved in starting the fire and was arrested. Today, SANKS made his initial appearance in federal court. Another individual, Mackenzie Drechsler, 19, of Ontario, NY, was previously charged by criminal complaint for her role in the arson of the FACIT car.
That same day, at approximately 6:28 p.m., a 32-foot by 8-foot mobile office/construction trailer, also located in downtown Rochester and rented by the Michels Corporation of Wisconsin, was also set on fire and rendered a total loss. The mobile office contained work equipment, tools, a printer, camera, and wi-fi device. As alleged in the criminal complaint filed against him, Facebook Live video footage posted by various users shows defendant HARDY carrying a milk jug at the back door of the trailer. HARDY is then seen walking down the trailer steps and heard yelling, “Let that (expletive) burn,” and “If it’s not on fire, I didn’t do my job.” A second individual, Marquis Frasier, 27, of Rochester, was also previously charged with arson for allegedly using a Molotov Cocktail to help start the same trailer on fire.
A total of 11 defendants have now been charged federally for their roles in violent protests in Rochester and Buffalo in May and June, 2020. In Rochester, in addition to SANKS, HARDY, Drechsler, and Frasier, Dyshika McFadden, 26, and Miguel Ramos, 19, both of Rochester, were previously charged with conspiracy to commit arson and arson, for their alleged role in burning a Rochester Police Department patrol car during the May 30, 2020, protests. In Buffalo, Keyondre Robinson,18, of Buffalo, was previously charged with assault of a federal officer, for his alleged role in throwing a bottle that struck a Deputy United States Marshal in the face during violent protests outside of the Robert H. Jackson Federal Courthouse in Buffalo on May 30, 2020; Courtland Renford, 20, of Buffalo, has been indicted and charged with arson in connection with his alleged attempt to burn down Buffalo City Hall during the May 30, protests; and Deyanna Davis, 30, Semaj Pigram, 25, and Walter Stewart, 28, all of Buffalo, were each previously indicted and charged with being felons-in-possession of a firearm, after the SUV in which they were traveling struck and seriously injured a Buffalo Police Officer and a New York State Trooper in connection with civil unrest in Buffalo, on June 1, 2020. After striking the officers, a chase ensued, and once the three were arrested, a loaded firearm and spent shell casings were discovered inside the SUV.
“The arsons, assaults, and weapons violations alleged to have been committed by these defendants are not part of any sort of righteous crusade; they are—plain and simple—criminal acts,” stated U.S. Attorney Kennedy. “This sort of behavior, combined with the recent and marked increase in violent crime and shootings across both our Nation and our District, suggests that some among us believe that violence, chaos, and lawlessness represent an appropriate path forward. They, however, are wrong. These charges reinforce the message that as Americans, we favor unity over entropy and that our greatest strength—that our very identity comes from our shared humanity and from the values and ideals we choose to uphold. Only by uniting, coming together as one, and rejecting this sort of divisive and damaging conduct can we ever hope to achieve the full promise of those values and ideals—expressed so eloquently in our Declaration of Independence—of a people who are all ‘created equal, [and] endowed by [our] Creator with certain unalienable rights, [including] life, liberty, and the pursuit of happiness.’”
The most recent complaints are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Eric Laughton; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team; and the Rochester Fire Department, under the direction of Fire Chief Willie Jackson.
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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14 July 2020
Woman Indicted and Arrested for Bank FraudRead the Press Release
SAN JUAN, P.R. - On July 10, FBI agents arrested Ana Luisa Martín-Alfaro who is facing 34 counts of bank fraud, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow. The Federal Bureau of Investigation was in charge of the investigation of the case.
The indictment alleges that, starting in or around the year 2013, defendant Martín-Alfaro did knowingly and with intent to defraud, devise a scheme and artifice to obtain monies under the custody and control of Banco Popular, Santander Bank, FirstBank Puerto Rico, TD Bank, Oriental Bank, and USAA Federal Savings Bank, all financial institutions whose deposits were insured by the Federal Deposit Insurance Corporation, by means of materially false and fraudulent pretenses, representations and promises, and by omission of material facts. Martin-Alfaro materially misrepresented the purpose of payments and required monies be paid by various clients through their financial institutions to corporate accounts she controlled.
Martín-Alfaro promoted herself as someone who could assist individuals, entities, or non-profit organizations to navigate the process of securing federal grants to build assisted-living facilities and low-income housing in Puerto Rico. She falsely represented to potential clients that she was certified by federal government agencies to receive filing fees and disbursements required to complete grant applications and she would deposit these payments in accounts belonging to organizations under her custody and control, such as “Federal Funds Organization, Inc.,” “International Federal Faith Based Consultants” and “Educational Service Corp.,” “Federal Consulting Service Corp.,” and “Community Helpers, Inc.”
The defendant falsely represented to potential clients the fact that these organizations were not associated with her. She also made the following material omissions to potential clients who were unaware that: these organizations were created by her; that she had sole custody and control of the bank accounts belonging to these organizations; and that she would use these funds for transactions unrelated to the grant writing process.
Defendant Martín-Alfaro falsely represented that funds were deposited in federal government accounts, that the accounts that she had access to were audited by the federal government, and that the funds were to be used exclusively for the grant application process. Instead, Martín-Alfaro used funds from clients to support her personal lifestyle. She withdrew cash, and spent it on retail, food, travel, entertainment, and auto expenses. She also used funds from clients to promote and perpetuate the scheme to defraud by paying for office expenses, utilities, and a limited amount for project expenses to deceive her clients into believing that the grant application process would be ultimately successful.
Martín-Alfaro is facing a forfeiture allegation of $779,135.00. If convicted, Martín-Alfaro could face a maximum penalty of 30 years of imprisonment and a fine of $1,000,000. Assistant U.S. Attorney Edward G. Veronda is in charge of the prosecution of the case.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Winchester Woman Sentenced to 65 Months for Drug TraffickingRead the Press Release
CONCORD - Alysha DeJesus, 25, of Winchester, was sentenced to 65 months in federal prison for attempted possession of controlled substances with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning around December of 2017, a drug organization in Lawrence, Massachusetts maintained a series of telephone numbers to receive orders and distribute controlled substances, primarily fentanyl and crack cocaine. On June 19, 2019, law enforcement executed search warrants at locations used by the organization and seized a telephone that was used for the drug distribution. Law enforcement officers then initiated an operation in which they communicated with the customers of the organization to effectuate their arrests after the customers placed orders for illegal drugs.
On June 24, 2019, DeJesus sent a text message to order 150 grams of fentanyl and 2 ounces of cocaine for $4,500. After receiving the text, undercover agents instructed DeJesus to a particular location in Nashua to receive the drugs. The agents told her to leave the money in the cup holder of the car and walk away. DeJesus exited the vehicle with a male subject, who she described to the agents as “her man.” The agents then stopped DeJesus who had in her possession the telephone with whom the agents had been texting. Agents located the currency for the drugs wrapped in a towel in the center console of the vehicle. After her arrest, DeJesus admitted traveling to Nashua to purchase drugs for $4,500
DeJesus previously pleaded guilty on February 19, 2020.
“The distribution of illegal drugs damages public health and safety throughout New Hampshire,” said U.S. Attorney Murray. “The harm caused by this activity focuses the attention of law enforcement agencies on the dealers. In order to prevent the sale of dangerous drugs, we will continue to work aggressively with our law enforcement partners to identify, prosecute, and incarcerate the drug dealers who endanger lives in the Granite State.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “DEA will continue to use every resource available to identify traffickers, like Ms. DeJesus who distribute this poison to the citizens of New Hampshire. Today’s sentence not only holds Ms. DeJesus accountable for her crimes but serves as a warning to those who are fueling the opioid epidemic.”
This matter was investigated by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Massachusetts State Police, Methuen Police Department, Andover, Massachusetts Police Department, Essex County Sheriff’s Office, New Hampshire State Police, Manchester Police Department, Nashua Police Department, Salem Police Department, Rockingham County Sheriff’s Office, Hudson Police Department, and the Goffstown Police Department. The case was prosecuted by Assistant U.S. Attorney Seth Aframe.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Weston Man Agrees to Plead Guilty to Wire Fraud in International Student Recruitment SchemeRead the Press Release
BOSTON – A Weston man has agreed to plead guilty in connection with a scheme to defraud private high schools and international students of millions of dollars in tuition and other fees.
Keenam “Kason” Park, 59, of Weston, has agreed to plead guilty to one count of wire fraud. A plea hearing has not yet been scheduled by the Court. According to the terms of the plea agreement, the government will recommend a sentence of 51 months in prison, two years of supervised release, a fine and restitution/forfeiture of at least $5,192,330.
According to the charging documents, Park caused EduBoston to collect tuition and other payments from students’ families for the 2019-2020 academic year but failed to remit tuition payments to partnering schools. Instead, Park used the funds on unrelated expenses, including personal expenses. Park also caused EduBoston to collect advance tuition and other payments for the 2020-2021 academic year, which Park failed to return to the students’ families after EduBoston went out of business around September 2019. As a result, EduBoston owes over $5 million to partnering schools.
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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Leslie A. Wright of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.
Virginia Man Sentenced for Conspiracy to Distribute Marijuana and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Jervonne Harris, age 41, of Hampton, Virginia, was sentenced today to serve 35 months in prison for conspiring to distribute marijuana and money laundering, announced United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his previous guilty plea, Harris admitted that between May 2017 and August 2017 he received bulk quantities of marijuana from a source of supply on the Akwesasne Mohawk Reservation in New York State. Harris sold the marijuana he received to customers in Virginia, and sent the proceeds from those sales back to his source of supply by courier and wire transfer. As part of his guilty plea, Harris admitted to distributing about 57 kilograms of marijuana.
In addition to his term of imprisonment, the court also sentenced Harris to six years of supervised release and ordered him to pay a money judgment in the amount of $250,800.
This case was investigated by Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department and Agents of the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorney Thomas Sutcliffe.
United States Attorney's Office District of Arizona June 2020 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
126 individuals were charged in June with illegal reentry
A. 114 of those 126 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 114 individuals with non-immigration criminal records:
1. 22 had violent crime convictions, including:
0 individuals had homicide convictions
5 individuals had sex offense convictions
4 individuals had domestic violence convictions2. 9 had property crime convictions
3. 25 had DUI convictions
4. 76 had drug crime convictions
B. 64 of those 126 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
26 individuals were charged in June with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in June with illegal entry on the CCI calendar
Criminal conviction information based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in late March of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2020-062_June Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.United States Attorney Mike Stuart Issues Statement Regarding Violence Against Law EnforcementRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement regarding violence against law enforcement.
“Sadly, our law enforcement officers and police have become the target of terrible attacks. Two nights ago in McAllen, Texas, two police officers were fatally shot while responding to a domestic disturbance. Yesterday, in Bothell, Washington, two police officers were shot, one fatally, after a brief traffic pursuit.
The daily assault on law enforcement and the police has to stop. This is not ‘open season’ to attack and condemn the good people of law enforcement. It is absolutely outrageous what is happening across the nation. I cannot imagine the stress and anxiety of being a police officer today. Can you imagine the stress and anxiety not only on the officers but the moms, dads, husbands, wives and children of these public heroes who worry every moment that their loved one may not come home from simply doing their duty and doing their job? This ‘attack our cops’ mentality must end. It must end now. Our law enforcement officers deserve our respect and admiration not our condemnation.
This U.S. Attorney ‘Backs the Blue.’ I make no apologies for it. God Bless and protect each of these Guardians of Justice as they serve nobly each day to protect each of us.”
Follow us on Twitter: SDWVNews and USAttyStuart
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U.S. Attorney reminds taxpayers to be careful as tax-day approachesRead the Press Release
ATLANTA - With the extended tax deadline of July 15 for individual taxpayers quickly approaching, the U.S. Attorney’s Office urges caution. It is important to be aware of tax scams and to be compliant in filing and paying federal taxes timely. Tax cheats are becoming more sophisticated in their schemes and are finding new ways to cheat the system as well as gaining access to your personal and tax information.
“Criminals continue to victimize taxpayers with sophisticated tax fraud schemes,” said U.S. Attorney Byung J. “BJay” Pak. “Be honest, truthful, and timely in your tax filings, and beware of others who look to take advantage of you and the tax system.”
“Those taxpayers who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't. As we approach the end of the tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today,” said James E. Dorsey, Special Agent in Charge of the Atlanta Field Office. “The convictions and sentencings outlined below emphasize that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”
The U.S. Attorney’s Office for the Northern District of Georgia, along with agents of IRS-Criminal Investigation and other law enforcement partners, actively investigates and prosecutes tax fraud and combats criminals willing to steal identities and commit tax fraud on the unsuspecting public. Over the past year, multiple tax investigations were charged and resolved. The following are highlights of some of those cases:
- Larry Scott. Scott was sentenced to two years in prison for failing to disclose to the City of Atlanta that while he served as its Director of Contract Compliance, he also served as the business manager for a consulting firm seeking contracts in the Atlanta-metropolitan area. Scott also failed to report on his taxes the majority of the income earned from the consulting firm.
- Thomas Holmes. Former tax preparation business owner Thomas Holmes pled guilty and was sentenced to three years, one month imprisonment for preparing and filing hundreds of fraudulent federal tax returns between 2011 and 2019. In total, Holmes defrauded the federal government out of more than $2.6 million. When preparing returns for clients, Holmes listed false Schedule C business losses and false Schedule A itemized deductions, causing taxpayers to claim millions of dollars in refunds that they were not entitled to. When the IRS issued those refunds, Holmes frequently kept a portion of the fraudulent refunds for himself and paid the balance to his clients. During the investigation, the IRS revoked Holmes’ e-filing privileges, but Holmes continued to file fraudulent returns through the mail.
- Allan and Stacy Spagnardi. Both Spagnardis were sentenced to four years, three months in prison after using their chiropractic clinic to commit healthcare fraud and for defrauding the Internal Revenue Service. Despite earning well over $1 million in personal income in 2014 and 2015, the Spagnardis failed to file federal income tax returns or pay federal income taxes for those tax years and instead took steps to hide their true income from IRS. After the Spagnardis were indicted, they continued to take steps to hide their income from the IRS, including by filing a false federal income tax return in early 2018.
- Vladimir Pierre a/k/a Jimmy Valentine. Pierre pleaded guilty to theft of government funds and aggravated identity theft. He admitted that between approximately January 2015 and April 2018, he filed over 150 fraudulent returns, a significant number of which involved the use of stolen identities, seeking more than $1 million in refunds. Pierre also admitted that as a result of his scheme he caused more than $340,000 in losses to the federal government. Pierre was sentenced four years, nine months in prison.
- Angela McBride. McBride pled guilty to filing a fraudulent, retaliatory lien against former IRS Commissioner John Koskinen. She was sentenced to one year in prison, with six months to be served in home confinement. After McBride filed a frivolous income tax return for 2013, the IRS notified McBride that she would be subject to a $5,000 penalty unless she filed a corrected tax return. Instead of filing a corrected return, McBride filed a lien with the DeKalb County clerk of court purporting to assign the $5,000 penalty issued against her to then-IRS Commissioner John Koskinen.
- Xiao-Jiang Li. On May 8, 2020, Li pleaded guilty to filing a false tax return, for failing to report foreign income earned in China as a Thousand Talents Program participant and researcher. From 2012 to 2018, Li worked at Chinese universities conducting research, earning at least $500,000 in foreign income that he never reported on his federal income tax returns. Li was sentenced to one year of probation and ordered to pay restitution in the amount of $35,089. He was also ordered to file lawful income tax returns for the years 2012 through 2018 within the first two months of his probation and fully cooperate with the Examination Division, Internal Revenue Service, in making a complete and accurate determination of all taxes, penalties, and interest that he owes.
- Don Terry and Jeffrey Smith. Terry and Smith pleaded guilty to Conspiracy to File False Claims against the United States. Terry and Smith were charged for their role in a tax fraud scheme in which numerous fraudulent and false individual and corporate income tax returns were submitted to IRS falsely claiming refunds. The refund checks were deposited into a bank account controlled by one of the co-conspirators for disbursement among the participants. Terry and Smith both entered a guilty plea to the conspiracy charge on January 27, 2020.
- Barbara Moore. Moore pleaded guilty on June 3, 2020 to a one count Indictment that charged her with Filing a False Claim Against the United States. Moore, who was a tax preparer at the time, submitted a fraudulent corporate income tax return that falsely listed a tax credit used to support the false claim for a tax refund of $104,046.
- Timothy Cobb. Cobb pled guilty to fraud and filing a false tax return. Cobb stole money from investors and then failed to report the stolen income on his federal income tax returns.
- Jo Ann Macrina. Former City of Atlanta Commissioner of the Department of Watershed Management Macrina has been charged with conspiratorial bribery, bribery, and tax evasion in connection with money and other items of value that she accepted from City of Atlanta and DeKalb County contractor Lohrasb “Jeff” Jafari. It is alleged that between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments. She did not report any of these funds on her 2016 income tax return.
- Jim C. Beck. On August 14, 2019, suspended Georgia Insurance Commissioner Beck was charged in a superseding indictment with four counts of aiding in the preparation and filing of false federal income tax returns for the years of 2015 thorough 2018. According to the indictment, Beck’s tax returns for those years were fraudulent because they substantially overstated business expenses and substantially understated business profits associated with two of Beck’s businesses, Creative Consultants and GA Christian Coalition.
- Todd and Julie Chrisley. Reality television stars Todd and Julie Chrisley, along with their accountant, Peter Tarantino, were charged for conspiring to defraud the IRS. The Chrisleys are alleged to have taken steps to avoid paying taxes on the millions of dollars they earned while appearing on the television show "Chrisley Knows Best." They were indicted by a federal grand jury on August 13, 2019.
- Luscious Mack. On November 12, 2019, a federal grand jury indicted Lucious Mack, charging him with 17 counts of filing false claims against the United States and four counts of theft of government money. The false claims charges stem from Mack allegedly filing fraudulent 1040 and 1040X Individual Income Tax Returns and fraudulent 1120 and 1120X Corporate Income Tax Returns. All the tax returns fraudulently claimed tax refunds to which Mack was not entitled. In all, Mack falsely claimed refunds totaling $860,483.
- Alfonzo Stevens. In May 2019, Stevens was indicted on one count of obstructing or impeding the IRS in connection with the collection of his outstanding tax liabilities. The indictment alleges that for more than half-a-decade, Stevens has been impeding the IRS’s collection through various methods.
- Bryan McElroy. McElroy was indicted on charges of attempting to file fraudulent, retaliatory liens against federal government officials.
- Leta Simmons. On July 13, 2020, Leta Simmons of Fairburn, Georgia, was charged with preparing fraudulent federal income tax returns. Simmons conducted a tax return preparation business through which she assisted clients with preparing and filing their returns. On behalf of her clients but without their knowledge or consent, Simmons filed multiple tax returns that unlawfully claimed false business losses and false itemized deductions, resulting in greater tax refunds. Many of Simmons’s clients did not even own or operate businesses. The IRS-CI investigation revealed that Simmons had filed multiple fraudulent returns for the tax years 2013-2017, resulting in a loss to the IRS in excess of $350,000.
Members of the public are reminded that the indictments only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
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.- Larry Scott. Scott was sentenced to two years in prison for failing to disclose to the City of Atlanta that while he served as its Director of Contract Compliance, he also served as the business manager for a consulting firm seeking contracts in the Atlanta-metropolitan area. Scott also failed to report on his taxes the majority of the income earned from the consulting firm.
U.S. Attorney Appoints Missing and Murdered Indigenous Persons Coordinator for AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today the appointment of E. Ingrid Cumberlidge to serve as the Missing and Murdered Indigenous Persons (MMIP) Coordinator for the District of Alaska.
As the District of Alaska’s MMIP Coordinator, Ms. Cumberlidge will gather reliable data to identify MMIP cases connected to Alaska; conduct outreach with tribal communities to assist in the creation and implementation of community action plans; coordinate with tribal, local, state, and federal law enforcement in the development of protocols and procedures for responding to and addressing MMIP cases; and promote improved data collection and analyses throughout Alaska. Working in the U.S. Attorney’s Office in Anchorage, Ms. Cumberlidge will serve tribal communities and victims throughout Alaska.
“The U.S. Attorney’s Office remains committed to improving public safety in rural Alaska, and we are fortunate to have Ms. Cumberlidge join our team in this critical role,” said U.S. Attorney Schroder. “For far too long, Alaska Natives have experienced disproportionate rates of violence, which has lasting impacts on families and communities. Ms. Cumberlidge’s expertise will further strengthen our public safety partnerships in rural Alaska, so that we can maximize efforts and develop solutions to address this crisis.”
“The Department of Public Safety is eager to continue our partnership with the DOJ; we are committed to assisting Ms. Cumberlidge with fine-tuning missing persons data and identifying better ways to combat violence against Alaska’s indigenous people through prevention and holding offenders accountable,” said Commissioner Amanda Price, Alaska Department of Public Safety. “Through constructive collaborations between all levels of government, we can break down barriers of distrust, foster positive change, and build a safer Alaska.”
“Working in conjunction with our local, state and federal partners, the FBI is committed to finding ways to better protect the communities we serve,” said Robert Britt, Special Agent in Charge of FBI Anchorage. “It is imperative we work together to make certain all persons responsible for engaging in this type of criminal activity in Alaska are brought to justice. We welcome the appointment of Ms. Cumberlidge and look forward to continued collaboration on the important work of the MMIP initiative.”
Ms. Cumberlidge is an educator and Tribal Leader with over 30 years supporting her native community in Alaska. Prior to joining the U.S. Attorney’s Office, Ms. Cumberlidge served as a Tribal Judge and Chief Judge engaged in various cases including primarily child protection and protective order cases. As a Tribal Court Judicial Trainer and Advisory Council Member on the National Judicial College Tribal Council, University of Nevada, Reno, Ms. Cumberlidge has trained in the Alaskan Interior with Tanana Chief’s Conference, Southwest Alaska, the Aleutians, the Alaska Bar Association, Rural Cap, and Alaska Intertribal Council. She also served as a teacher and principal of the Aleutians East Borough School District, and was a tribal appointed regional delegate to the Gov. Knowles State and Tribal Millennium agreement negotiations and ratification.
On Nov. 22, 2019, Attorney General William Barr launched a national strategy to address missing and murdered Native Americans. As part of this MMIP Initiative, the Department of Justice made an initial investment of $1.5 million to hire MMIP Coordinators to serve with U.S. Attorney’s Offices in 11 states, including Alaska, to develop protocols for a more coordinated law enforcement response to missing cases. The strategy also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts.
Two-Time Bank Robber SentencedRead the Press Release
PROVIDENCE – A Providence man twice convicted for robbing banks in Rhode Island, among other crimes he has been convicted of committing as an adult over the past 33 years, was sentenced today to five years in federal prison.
David L. Evans, 51, was most recently convicted in federal court of robbing a Providence branch of Santander Bank in May 2018. At the time of his guilty plea, Evans admitted that he handed a note to a teller demanding cash, at the same time telling her to empty both drawers and that “you have three seconds to give me the money and I’m not joking, I’m serious.” He then counted “1, 2, 3,” as the teller handed him cash.
According to information presented to the court, the bank teller handed Evans $568 in cash. Evans did nothing to conceal his face and identity during the robbery, which was recorded on bank surveillance video and still photographs. The images were used to confirm his identity. He was arrested on June 6, 2018, by Providence Police Detectives and agents from the FBI.
Evans pleaded guilty on February 6, 2020, to bank robbery. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 60 months in federal prison to be followed by three years of supervised release. Evans was ordered to pay $568 in restitution to Santander Bank.
Evans sentence is announced by United States Attorney Aaron L. Weisman, Providence Police Chief Colonel Hugh T. Clements, Jr., and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
According to court documents, Evans, who has been involved in the justice system for the past 33 years, has spent most of his adult life incarcerated. His convictions include arrests and convictions on, among other crimes, firearm, drugs, assault, domestic assault, breaking and entering, wire fraud, transportation of stolen goods, and second degree robbery charges. Evans was convicted of robbing a bank branch office located inside a Warwick supermarket in March 2010.
The most recent case, prosecuted in U.S. District Court in Providence, was prosecuted by Assistant U.S. Attorneys Stacey P. Veroni and Paul F. Daly, Jr.
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Two Major Methamphetamine Distributors Sentenced to PrisonRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 8, 2020, two individuals were sentenced to prison by United States District Court Senior Judge James E. Gritzner for Conspiracy to Distribute Methamphetamine. Erik M. Barber and Lacey Jo Smalley were sentenced to prison for 18 years and 16 years, respectively. Previously, the Court sentenced the leader of the conspiracy, Jason Paul Rodriguez, to 30 years in prison on March 12, 2020.
Rodriguez organized and led the large-scale drug trafficking operation from 2016 until his arrest in April 2019. Rodriguez and his co-conspirators distributed more than 220 pounds of methamphetamine in Omaha and Western Iowa. Barber, age 43, of Council Bluffs, was a major distributor of methamphetamine for Rodriguez. Smalley, age 36, of Clarinda, was also one of Rodriguez’s primary distributors.
The sentencings were the result of a lengthy investigation by Iowa Division of Narcotics Enforcement originating in Page County regarding distribution of methamphetamine delivered from Council Bluffs, Iowa. The investigation revealed that Rodriguez, Barber, Smalley, and others were distributing large amounts of methamphetamine in numerous locations throughout Southwest Iowa and Omaha.
This matter was investigated by the Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Enforcement Task Force, Council Bluffs Police Department, Clarinda Police Department, Page County Sheriff’s Office, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Tulare County Man Indicted for Falsely Marketing Herbal Mixtures as FDA-Approved Treatment for COVID-19Read the Press Release
FRESNO, Calif. — A Porterville man was arrested today after a federal grand jury returned a five‑count indictment on July 9, charging him with mail fraud and introducing a misbranded drug into interstate commerce with the intent to defraud, U.S. Attorney McGregor W. Scott announced.
According to the indictment, Huu Tieu, 58, is the president and chief executive officer of Golden Sunrise Pharmaceutical Inc. and Golden Sunrise Nutraceutical Inc., both headquartered in Porterville. From at least April 25 to July 9, through his companies, Tieu marketed and sold a package of herbal mixtures dubbed the “Emergency D-Virus Plan of Care,” which he claimed treated COVID-19. In materials posted on the companies’ websites and Facebook pages and in emails to the media, Tieu made a series of false statements about the Emergency D-Virus Plan of Care, including:
- That one of the mixtures in the product, called “ImunStem,” was the first dietary supplement in the United States to be FDA approved as a prescription medicine to treat serious or life-threatening conditions and had specifically been approved to treat COVID‑19. In reality, the FDA has never approved any Golden Sunrise product for any intended use and, on at least two occasions, has told Tieu in writing that ImunStem is not FDA approved; and
- That ImunStem was designated as a Regenerative Medicine Advanced Therapy (RMAT) under the 21st Century Cures Act. In reality, the FDA never granted an RMAT designation to any Golden Sunrise product, denied Tieu’s request for an RMAT designation for ImunStem in 2017, and reiterated that denial to Tieu in writing in 2019.
According to the indictment, Tieu made these misrepresentations for the purpose of soliciting customers, both patients and health care professionals, to acquire Golden Sunrise products so that he could submit reimbursement claims to the patients’ insurers, including Medicare and Medi-Cal. Tieu dispensed his products to customers in the Porterville area and also shipped the products to other parts of California and the United States.
On May 8, an undercover investigator with the Tulare County District Attorney’s Office met with Tieu in person, telling him her mother was 68 and very sick with COVID-19. The investigator asked Tieu if she should take her mother to the hospital. Tieu responded, “No. You cannot go in there,” and instead, encouraged her to use Golden Sunrise products.
“The FDA is actively monitoring the marketplace for fraudulent products claiming to treat COVID-19. Americans expect and deserve treatments that are safe, effective and meet appropriate standards, and the agency will continue to bring to justice those who place profits above the public health during this pandemic,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We commend the efforts of our law enforcement partners in this investigation and today’s announcement should serve as a reminder that we will take appropriate action against those who jeopardize the health of Americans while taking advantage of a crisis.”
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the U.S. Food and Drug Administration, the U.S. Postal Inspection Service, and the California Department of Health Care Services with assistance from the Tulare County District Attorney’s Office and the California Bureau of Medi-Cal Fraud and Elder Abuse. Assistant U.S. Attorneys Vincente Tennerelli and Alexandre Dempsey are prosecuting the case.
If convicted, Tieu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on the mail fraud counts and three years in prison and a $10,000 fine on the misbranding counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Traverse City Physician Assistant Surrenders DEA Registration and Agrees to Life-Time Ban on Prescribing Controlled SubstancesRead the Press Release
GRAND RAPIDS, MICHIGAN — James J. Berg, P.A., has agreed to resolve allegations that he violated the Controlled Substances Act by writing illegitimate prescriptions for controlled substances, U.S. Attorney Andrew B. Birge announced today. As part of the settlement, Mr. Berg agreed to surrender his U.S. Drug Enforcement Administration (DEA) registration that allowed him to prescribe controlled substances, to never reapply for a DEA registration in the future, and to pay a civil penalty of $50,000.
This settlement resolves allegations that Mr. Berg, the co-owner and operator of Hope Clinic for Muscle & Joint Pain, PLLC (Hope Clinic), a pain management clinic in Traverse City, wrote numerous prescriptions without a legitimate medical purpose and outside of the usual course of professional practice. The United States alleges that Mr. Berg prescribed large quantities of opioids to patients well above national guidelines for treating patients with chronic pain and despite multiple red flags indicating that the prescriptions were not legitimate. These red flags included patients traveling long distances, failing multiple urine drug screen tests, violating Hope Clinic’s pain management agreements, and displaying other conduct indicative of diversion. Mr. Berg also prescribed opioids concurrent with other controlled substances, such as benzodiazepines and muscle relaxers, resulting in a dangerous cocktail.
“For several years, Mr. Berg recklessly prescribed high doses of opioids in a manner that endangered patients and contributed to the ongoing opioid epidemic,” said U.S. Attorney Birge. “This settlement ensures that Mr. Berg will no longer be in a position to prescribe controlled substances and serves as an example of our office’s efforts to work with the DEA and other law enforcement to use all tools necessary to enforce compliance with controlled substance prescribing laws in Traverse City and the rest of Western Michigan.”
“To have a medical professional, who is fully aware of the effects of controlled substances, abusing his privileges is a total betrayal of his profession and the public trust,” said DEA Detroit Field Division Special Agent in Charge Keith Martin. “Teamwork at all levels of law enforcement was instrumental in this investigation.”
This case was investigated by the DEA and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorneys Ryan D. Cobb and Andrew J. Hull represented the United States.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Texas Man Charged with COVID Relief FraudRead the Press Release
A Texas man was taken into custody on allegations he fraudulently obtained more than $1.1 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 Ryan K. Patrick for the Southern District of Texas.
Joshua Thomas Argires, 29, of Houston, Texas, is charged in a criminal complaint, unsealed Monday upon his arrest, with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He made his initial appearance Monday before U.S. Magistrate Judge Peter Bray.
Argires allegedly perpetrated a scheme to file two fraudulent loan applications seeking more than $1.1 million in forgivable loans. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The complaint alleges Argires submitted two fraudulent PPP loan applications to federally insured banks. One of these applications was submitted on behalf of an entity called Texas Barbecue; the other was filed on behalf of a company called Houston Landscaping. Argires allegedly claimed these two companies had numerous employees and hundreds of thousands of dollars in payroll expenses.
According to the complaint, neither Texas Barbecue nor Houston Landscaping has employees or pays wages consistent with the amounts claimed in the PPP loan applications. The complaint further asserts that both of these loans were funded, but that none of the funds were used for payroll or other expenses authorized under the PPP. Rather, the funds received on behalf of Texas Barbecue were invested in a cryptocurrency account, while the funds obtained for Houston Landscaping were held in a bank account and slowly depleted via ATM withdrawals, according to the charges.
The 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 the CARES Act provides 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 federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA OIG and U.S. Postal Inspection Service’s Houston Division conducted the investigation. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James McAlister for the Southern District of Texas 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.
Ten individuals arrested and charged in a conspiracy to sell drugs throughout the Elyria areaRead the Press Release
U.S. Attorney Justin Herdman announced that 10 individuals were arrested and charged in a multi-count indictment today for their involvement in a conspiracy to distribute and possess crack cocaine, cocaine and oxycodone throughout the Elyria, Ohio area.
These 10 individual are Terrence Bowens, 44; Cedric Green, 34; Marcus Harder, 36 of Elyria; James Milton Jr; Lavar Thornton, 42; James Robinson, 46; Randy Glover, 44; Harold Kimbro, 46; Kavis Roberts, 43; and Melanie Grantham, 57, all of Elyria, Ohio.
“Drug dealers and others criminal have long targeted Lorain County as an area to exploit and sell their deadly product,” said U.S. Attorney Justin Herdman. “Since 2018, as part of Operation SOS, we have committed to assisting our state and local partners by federally prosecuting any fentanyl or opioid trafficking offense from Lorain County. Today’s arrests send a strong message – if you deal dope in Lorain County, you will face a federal prosecution.”
“These arrests and charges are a reminder drug traffickers have little regard for human life,” said DEA Special Agent in Charge Keith Martin. “DEA remains committed to working with our law enforcement partners to rid our communities of illicit drugs and to prosecute those who look to profit from criminal activity.”
According to the indictment, from January 2018 to July 2020, the defendants worked together to distribute at least 280 grams of a substance containing crack cocaine, 500 grams of a substance containing cocaine and a mixture and substance containing a detectable amount of oxycodone throughout the Elyria, Ohio area. Allegedly, defendants Bowens and Green would purchase large quantities of cocaine from an individual and would then redistribute it to the other narcotics traffickers in the area.
Court documents state that defendants Bowens and Green used cellular devices to communicate and conduct their operations and used a residence on Foster Avenue in Elyria to store, cook, and distribute crack cocaine and oxycodone. Furthermore, the indictment alleges that Bowens and Green would conduct counter-surveillance of law enforcement in the area and shared information with each other on law enforcement presence.
Terrence Bowens has a previous 1st-degree felony conviction for drug trafficking from 2013 in the Lorain County Common Pleas Court.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation was conducted and aided by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Elyria Police Department, the Lorain County Sheriff’s Department and the Lorain County Prosecutors Office. The case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and Robert F. Corts.
Lorain County is one of 10 communities around the nation that is part of Operation Synthetic Opioid Surge (S.O.S). This initiative ensures that cases involving heroin, fentanyl and any synthetic opioids are prosecuted in federal court.
Stewartstown Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Christopher Brown, 39, of Stewartstown, pleaded guilty in federal court to possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on June 23, 2019, Lancaster Police encountered Brown after he was involved in a motorcycle crash. The police searched the area and found a bag of approximately 30 grams of fentanyl near where Brown had been standing when the police first encountered him. Brown later admitted to the police that he had obtained the drugs earlier that day in Hooksett. Brown said that, when the crash occurred, he had been on his way north to Colebrook to deliver some of the drugs to another individual.
Brown is scheduled to be sentenced on October 16th 2020.
“Fentanyl trafficking causes damage in all ten counties of our state,” said U.S. Attorney Murray. “Accordingly, law enforcement agencies aggressively target drug dealers throughout New Hampshire. We will continue to work closely with all of our law enforcement partners to identify and prosecute those who undermine public safety by selling fentanyl and other deadly drugs in the Granite State.”
This matter was investigated by the Drug Enforcement Administration with assistance from the Lancaster Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Statement by Attorney General William P. Barr on the Execution of Daniel Lewis LeeRead the Press Release
Attorney General William P. Barr has issued the following statement:
“This morning, in the first federal execution in 17 years, Daniel Lewis Lee was executed by lethal injection at USP Terre Haute in accordance with a death sentence imposed by a federal district court in 1999. Lee, a member of a white supremacist organization, brutally murdered William Frederick Mueller and Nancy Ann Mueller, along with her eight-year-old daughter, Sarah Elizabeth Powell. After robbing and shooting them with a stun gun, Lee duct-taped plastic bags around their heads, weighed down each victim with rocks, and drowned the family in the Illinois bayou. On May 4, 1999, a jury in the U.S. District Court for the Eastern District of Arkansas found Lee guilty of numerous offenses, including three counts of murder in aid of racketeering, and he was sentenced to death. Today, Lee finally faced the justice he deserved. The American people have made the considered choice to permit capital punishment for the most egregious federal crimes, and justice was done today in implementing the sentence for Lee’s horrific offenses.”
Statement by Department of Justice Spokesperson Kerri Kupec:
“Today, Daniel Lewis Lee faced the justice he deserved. Although Lee’s execution was originally scheduled to occur on Monday at 4:00 pm, a district court’s last-minute preliminary injunction required the Department of Justice to seek emergency vacatur from the Supreme Court. After receiving the green-light early on Tuesday morning, the Federal Bureau of Prisons began preparing Lee for the execution; however, a last-minute procedural claim by Lee’s attorney resulted in an additional delay. The U.S. Court of Appeals for the Eighth Circuit ultimately rejected his claim, clearing the way for his execution. He was pronounced dead at 8:07 am.
The Attorney General appreciates the hard work, dedication, and professionalism demonstrated by the Federal Bureau of Prisons; the United States Marshals Service; and the law enforcement and legal teams that investigated and prosecuted Lee, and that for many years defended the government’s duty to carry out this lawful sentence.”
Southwest Iowa Man and Woman Sentenced for Distributing MethRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 8, 2020, Robert Matthew Justice, age 41, of Glenwood, was sentenced to 156 months in prison followed by five years of supervised release and his co-defendant, Stacey Madonna Morrison, age 44, of Council Bluffs was sentenced to 61 months in prison followed by three years of supervised release by United States District Court Senior Judge James Gritzner for conspiracy to distribute methamphetamine.
The sentencing was the result of an investigation by Iowa Division of Narcotics Enforcement with the Federal Bureau of Investigation Safe Streets Task Force into methamphetamine trafficking in Western Iowa and the Omaha Metro Area. The investigation revealed that methamphetamine was being brought into Western Iowa by Justice, who then provided it to Morrison and others for distribution in Pottawattamie, Mills, and Fremont Counties.
In March of 2020, Justice and Morrison entered guilty pleas to Conspiracy to Distribute Methamphetamine.
The case was investigated by the Mills County Sheriff’s Office, Fremont County Sheriff’s Office, Southwest Iowa Narcotics Task Force, Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation’s Safe Streets Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Smithfield Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
RALEIGH, N.C. – A North Carolina man was sentenced today to 120 months in prison for possessing child pornography.
According to court documents, Mitch Hamilton Parrish, 44, possessed several images of child pornography when law enforcement agents searched his home in Smithfield, North Carolina. Using digital forensic analysis, agents found child pornography on Parrish’s laptop. The agents also found internet search terms related to child pornography.
This is the second time Parrish has been convicted of possessing child pornography. In 2010, Parrish was convicted in Franklin County Superior Court of three counts of sexual exploitation of a minor relating to possessing child pornography. Parrish is also a registered sex offender.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. Homeland Security Investigations, the North Carolina State Bureau of Investigation, Cary Police Department and Johnston County Sheriff’s Office investigated the case and Assistant U.S. Attorneys John Parris and Melissa Kessler prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00168-D.
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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.
Six Rockford Residents Sentenced on Federal Fraud Charges Related to Supplemental Nutrition Assistance Program (“SNAP”)Read the Press Release
ROCKFORD — Six Rockford residents were sentenced Monday in federal court by U.S. District Judge Matthew F. Kennelly on wire fraud or money laundering charges.
Leeform “John” Xayvandy, Sr., 39, pleaded guilty on Nov. 27, 2019, to one count of wire fraud and one count of money laundering. He was sentenced to three years in prison and ordered to pay approximately $3.18 million in restitution.
Som Xayvandy, 49, pleaded guilty on Nov. 4, 2019, to one count of wire fraud. He was sentenced to 18 months in prison and ordered to pay approximately $2.77 million in restitution.
Vansy “Dee” Xayvandy, 45, pleaded guilty on Jan. 27, 2020, to one count of wire fraud. She was sentenced to 15 months in prison and ordered to pay approximately $2.77 million in restitution.
Christiana “Tina” Xayvandy, 28, pleaded guilty on Nov. 4, 2019, to one count of wire fraud. She was sentenced to 15 months in prison and ordered to pay approximately $2.97 million in restitution.
Feuy Khaikham, 59, pleaded guilty on Nov. 18, 2019, to one count of wire fraud and one count of money laundering. She was sentenced to 15 months in prison and ordered to pay approximately $2.03 million in restitution.
Aung Gyaw, 25, pleaded guilty on Jan. 3, 2020, to one count of wire fraud. He was sentenced to six months of home confinement and ordered to pay approximately $2.97 million in restitution.
The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General in Chicago; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service, Criminal Investigation Division. The Rockford Police Department and Winnebago County Sheriff’s Office assisted in the investigation. The government was represented by Assistant U.S. Attorney Talia Bucci.
The wire fraud charges relate to the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the food stamp program. SNAP is a federal benefit program administered by the U.S. Department of Agriculture in conjunction with state governments. It provides nutrition benefits to supplement the food budgets of eligible individuals and families. Stores authorized to participate in SNAP can accept SNAP benefits only as payment for eligible food items, and it is illegal for stores and individuals to exchange SNAP benefits for cash - a practice commonly referred to as SNAP trafficking.
According to written plea agreements entered by the six defendants, between April 2015 and January 2017, the defendants schemed to defraud the USDA by fraudulently accepting and redeeming SNAP benefits exchanged for discounted amounts of cash, knowing that such exchanges were prohibited under SNAP. As part of the scheme, defendants conducted SNAP trafficking at multiple stores in Rockford, including Pattaya Grocery Foods, formerly located at 108 15th Ave., B&P Foods Market, formerly located at 102 15th Ave.), Platinum Electronics and More, formerly located at 1114 Broadway, and Mr. Clark Groceries, formerly located at 1019 S. Main St.. Proceeds from the SNAP trafficking transactions were deposited into bank accounts controlled by the defendants and then distributed to other members of the scheme through cash payments or check. Som Xayvandy and Khaikham admitted in their plea agreements that they previously owned stores that were permanently disqualified from participating in SNAP in 2014 after USDA Food and Nutrition Services found that SNAP trafficking had been conducted at those stores.
Leeform Xayvandy, Sr., and Khaikham also admitted that they conducted financial transactions affecting interstate commerce involving the proceeds of the wire fraud scheme. Khaikham admitted that she directed a nominee owner of B&P Foods Market to cash checks from the store’s bank account and return the proceeds to Khaikham. Leeform Xayvandy, Sr., admitted that he issued checks from B&P Foods Market’s bank account to two other individuals, and directed those individuals to cash the checks and return the proceeds to him. Leeform Xayvandy, Sr., and Khaikham admitted that they did so in order to conceal the nature, ownership, and control of the wire fraud proceeds involved in those transactions.
A seventh defendant, Bounleung “Tommy” Thamontri, 56, was also charged with wire fraud, food stamp fraud, money laundering, and conspiracy to commit money laundering. Thamontri remains at large.
Shelby County Resident Sentenced for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 13, 2020, Ryan Nicholas Schwery, age 43, of Shelby County, was sentenced by United States District Court Judge Stephanie M. Rose to 78 months in prison, to be followed by six years of supervised release for distributing methamphetamine.
The sentencing was the result of an investigation by the Shelby County Sheriff’s Office and Iowa Division of Narcotics Enforcement into the distribution of methamphetamine in Harlan, Iowa. The Shelby County Sheriff’s Office, using a confidential source, made three separate purchases of methamphetamine from Schwery before serving a search warrant on his living quarters at the Harlan Inn and Suites. During the search, officers located approximately 144 grams of pure methamphetamine, along with drug distribution paraphernalia, and over $1,000 in cash from the sale of methamphetamine. On February 21, 2020, Schwery entered a guilty plea to Possession of Methamphetamine with Intent to Distribute.
This matter was investigated by the Shelby County Sheriff’s Office and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Second Leader of North Philadelphia Drug Gang Sentenced to Twelve Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Brandon Smith, 30, of Philadelphia, Pennsylvania, was sentenced to twelve years in prison, to be followed by five years of supervised release, by United States District Court Judge C. Darnell Jones.
In November 2019, the defendant pleaded guilty to multiple criminal counts, including conspiracy to distribute and attempted possession with intent to distribute controlled substances. The charges arose from his leadership role in a large drug trafficking organization that shipped hundreds of pounds of narcotics -- including methamphetamine, cocaine, heroin, and fentanyl -- from California to Philadelphia via United States mail, from at least early 2016 until November 2017.
To obtain the narcotics, Smith and other members of the organization flew from Philadelphia to Los Angeles to purchase the drugs directly from a source in California, concealing large amounts of cash between clothing packed in their carry-on luggage. After purchasing the drugs, members of the organization shipped the narcotics in boxes addressed to businesses in the Feltonville neighborhood of North Philadelphia, and then coordinated the delivery of the drugs to various locations, so they could then be prepared for distribution.
Another leader of the drug trafficking group and a co-defendant in this case, George Felts, 33, also of Philadelphia, was previously sentenced to sixteen years in prison for similar charges.
“Smith and other members of this drug gang pumped huge quantities of deadly drugs into our community,” said U.S. Attorney McSwain. “The punishment handed down today cannot undo the damage that Smith caused, but his conviction and lengthy sentence have made Philadelphia safer. My Office is committed to aggressively investigating and prosecuting drug trafficking organizations that prey on the community.”
“Today, another defendant was sentenced to more than a decade in jail for his participation in the organized distribution of illegal and dangerous narcotics in Philadelphia neighborhoods,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division of the United States Postal Inspection Service. “I again would like to thank and congratulate the officers from the Philadelphia Police Department, the agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the prosecutors from the United States Attorney’s Office, and the Postal Inspectors from the Philadelphia Division who worked tirelessly on this case to protect the US mail system from criminal misuse and to ensure Mr. Smith faced justice for the harm he has caused to the Philadelphia community.”
The case was investigated by the United States Postal Inspection Service, with the assistance of the Philadelphia Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, and Firearms. It is being prosecuted by Assistant United States Attorney Nancy Beam Winter.
San Antonio Tax Preparer Indicted for False ReturnsRead the Press Release
A federal grand jury in Waco, Texas, returned an indictment today charging a San Antonio tax preparer with aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John F. Bash for the Western District of Texas.
According to the indictment, Telesa Hall operated Precision Efile Tax Services, a tax return preparation business located in San Antonio, Copperas Cove, and Killeen, Texas. From 2014 to 2017, Hall allegedly falsified clients’ tax returns by claiming business losses that her clients did not incur, in order to fraudulently increase their refunds. The indictment further alleges that from 2013 through 2016, Hall falsified her own tax returns by not reporting all of the income she earned from her tax preparation business.
If convicted, Hall faces a maximum sentence of three years in prison on each of the 23 counts in the indictment. She also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Bash commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Francesca Bartolomey and William Guappone of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Rocky Mount Tax Return Preparer Pleads Guilty to Conspiracy and Filing False Tax ReturnsRead the Press Release
RALEIGH, N.C. – A Rocky Mount, NC woman pleaded guilty today to conspiracy to prepare and file false tax returns.
According to court documents, Priscilla Evans, 65 years old, conspired with others to file false tax returns for the 2013 through 2016 tax years for clients of Community Tax Services LLC located in Rocky Mount, North Carolina. Evans and her co-conspirators filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds. According to the IRS, the three-year scam resulted in a loss of more than $2 million in tax dollars. Evans pleaded guilty today to conspiracy to prepare and file false tax returns and faces up to five years imprisonment when she is sentenced during the court’s December 2020 term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. Magistrate Judge Robert Jones accepted the plea. The Internal Revenue Service Criminal Investigations (IRS-CI) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-00077-2FL.
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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.
Richmond Hill man admits attempted child sexual coercionRead the Press Release
SAVANNAH, GA: A Bryan County man admitted in federal court to attempting to persuade a minor to engage in sex.
Michael Wilson, 37, of Richmond Hill, Ga., pled guilty in U.S. District Court to Attempted Coercion of a Minor to Engage in Sexual Activity, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a possible sentence of up to life in prison, along with substantial financial penalties and a minimum of five years of supervised release after completion of the prison sentence.
There is no parole in the federal system.
Previously, Wilson’s wife, Lori Wilson, a/k/a “Loretta Lightningbolt,” 35, also of Richmond Hill, pled guilty in U.S. District Court to Tampering with a Victim or Witness for attempting to persuade a victim to recant the accusations against Michael Wilson and withhold information from investigators. She awaits sentencing.
“The Wilsons represent a vile tag-team of abhorrent behavior that has no place in civilized society,” said U.S. Attorney Christine. “In coordination with our law enforcement partners, we will work relentlessly to protect potential victims from predators and their enablers.”
According to court documents and testimony, Michael Wilson admitted attempting to coerce a minor victim to engage in sexual activity from 2017 through early 2019. Michael Wilson, an active duty member of the military, also is charged with seven violations of the Uniform Code of Military Justice, Article 120(b), Rape and Sexual Assault of a Child. These charges are pending and relate to multiple minor victims.
“No sentence for this man will wipe away the scars left on the child he victimized,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Wilson harmed a defenseless child for life. Our only hope is that his punishment will act as a deterrent to anyone who contemplates preying on our most vulnerable citizens.”
The cases are being investigated by the FBI and by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorneys Katelyn Semales and Jennifer G. Solari.
Retired Cadott Physician to Pay $70,000 to Resolve Controlled Substance Prescribing & Recordkeeping ViolationsRead the Press Release
MADISON, WIS. – United States Attorney Scott C. Blader announced that Clifford T. Bowe, M.D., a retired Cadott, Wisconsin physician, entered into a settlement agreement to pay $70,000 to resolve civil allegations that he violated the Controlled Substances Act (“CSA”) relating to his prescribing of controlled substances, including opioids, outside the usual course of professional practice, among other CSA violations.
Dr. Bowe owned and operated Cadott Medical Center (“CMC”) in Cadott. A majority of his patients went to CMC because they were suffering from opioid use disorder and other addictions. Dr. Bowe had received authorization to treat up to 100 opioid dependent patients for opioid use disorder with medication-assisted treatments, such as the FDA-approved Schedule III drug, buprenorphine (Suboxone). Buprenorphine, a partial opioid agonist, blocks the opiate receptors and reduces an individual’s urges to use opioids. According to the government’s allegations set forth in the settlement agreement, Dr. Bowe not only improperly prescribed buprenorphine along with other potent opioids, but he also counseled patients on how to fill these improper simultaneous prescriptions so as to avoid rejection by pharmacies or insurance payers. Moreover, the government alleged that Dr. Bowe prescribed Schedule II opioids to treat opioid use disorder, which is prohibited by CSA regulations.
According to the settlement agreement, the government alleged that Dr. Bowe also violated the CSA by prescribing emergency Schedule II controlled substances to a family member that failed to meet the regulatory requirements for such prescribing; by providing inaccurate directions for use on controlled substance prescriptions to maneuver-around pharmacies refusing to fill compounded prescriptions or insurance companies denying payment for such prescriptions; and by failing to maintain records regarding the receipt and dispensing of controlled substances, or to maintain an inventory of controlled substances on-hand at CMC. Dr. Bowe denies these allegations.
In enacting the CSA, Congress recognized the importance of preventing the diversion of drugs from legitimate to illegitimate uses. The CSA, in relevant part, deters the illegal distribution, possession, dispensing, and improper use of controlled substances, all of which have contributed significantly to the opioid epidemic over the past two decades. The CSA therefore regulates entities and practitioners that dispense controlled substances by establishing controls over all stages of the chain of distribution of controlled substances in the United States.
“Physicians who prescribe controlled substances, including opioids, outside the usual course of professional practice, abuse their prescription-writing privileges and contribute to the opioid crisis,” said United States Attorney Blader. “Controlled substance prescribing violations, in addition to the critical recordkeeping of controlled substances to ensure the system remains closed, will result in enforcement action in the Western District of Wisconsin.”
“DEA will continue to pursue civil actions against any registrant that violates the Controlled Substances Act by practicing outside of professional medical practice and issuing illegitimate controlled substance prescriptions. The overprescribing of opioids has played a large role in the national opioid addiction crisis that our country currently faces on a daily basis,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
According to public records, on February 15, 2012, the Wisconsin Medical Examining Board reprimanded Dr. Bowe for engaging in any practice or conduct that tended to constitute a danger to the health, welfare, or safety of patients or the public, and thus, unprofessional conduct, including the unjustified prescribing of Schedule II and other controlled substances. The Board ordered Dr. Bowe to attend a Comprehensive Pain Board symposium, which he later completed.
In 2017, DEA obtained an Administrative Inspection Warrant to conduct an inspection relating to Dr. Bowe and CMC. According to the settlement, after DEA informed Dr. Bowe of numerous allegations that he failed to comply with relating to the federal controlled substance requirements, Dr. Bowe voluntarily surrendered his DEA Registration Number. Without a DEA registration number, he could no longer prescribe or dispense controlled substances.
In 2016, the State of Wisconsin also opened cases into Dr. Bowe’s prescribing practices that led to the Wisconsin Medical Examining Board’s March 15, 2017 Order. According to the Board’s Order, to resolve the State’s claims, Bowe neither admitted nor denied engaging in unprofessional conduct, rather, he stated that due to his age and limitation on his ability to care for patients, he agreed to resolve the cases by voluntarily and permanently surrendering his Wisconsin license to practice medicine.
Assistant United States Attorney Leslie Herje represented the government in this matter. The DEA Milwaukee District Office primarily conducted the investigation, along with the United States Attorney’s Office Affirmative Civil Enforcement team. The settlement agreement states CSA allegations only; Dr. Bowe denies the allegations, except that he admits that, in violation of federal law, he pre-signed incomplete patient prescriptions on other than the date of issuance and placed them in patient charts.
Putnam County Man Indicted in Connection with Making Serious Threats of Violence Against Police Officers on SnapchatRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man was indicted today by a federal grand jury sitting in Huntington for making threats of violence against law enforcement officers on social media, announced United States Attorney Mike Stuart. The one count indictment charges Silas Thornton King, 18, of Hurricane, with interstate communications containing a threat to injure the person of another.
The indictment alleges that on June 28, 2020, King posted threats to injure law enforcement on Snapchat, a social media platform. King was previously arrested on a federal criminal complaint which alleged that he posted a Snapchat video of himself as he verbally threatened serious physical violence against officers of the Milton Police Department.
“Today’s indictment of King is a testament to my sincere commitment to do everything in my power to protect and defend those in law enforcement - our Guardians of Justice - who serve bravely, selflessly, and courageously in defense of all our citizens. Threats of physical violence against law enforcement officers are abhorrent and something I will never tolerate,” said United States Attorney Mike Stuart.
"The FBI takes all threats seriously," said FBI Pittsburgh Special Agent in Charge Mike Christman. "We work very closely with our state and local partners when these types of threats come in. We want everyone to know posting anything of a threatening nature on social media will be taken seriously and it will be investigated."
If convicted, King faces up to five years in federal prison.
The investigation was conducted by the Federal Bureau of Investigation (FBI), the West Virginia State Police, the Milton Police Department and the Hurricane Police Department. Assistant United States Attorney Courtney Cremeans is handling the prosecution.
Please note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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. The indictment and related court documents and information can be found on PACER by searching for Case No. 3:20-CR-00111.
Follow us on Twitter: SDWVNews and USAttyStuart
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Possessing Five Firearms Sends Felon to Federal Prison for over Six YearsRead the Press Release
A convicted felon who repeatedly possessed firearms while also using drugs was sentenced today to more than six years in federal prison.
George Raymond Bounds, age 49, from Cedar Rapids, Iowa, received the prison term after a December 23, 2019 guilty plea to one count of possession of a firearm by a felon and one count of possession of a firearm by a felon and a drug user.
Information disclosed during the case shows that Bounds is a three-time felon. He was previously convicted of burglary, kidnapping, and aggravated assault in Arizona in 1996. Between March 2018 and February 2019, Bounds possessed five different firearms on four separate occasions. Bounds repeatedly obtained firearms after officers had seized firearms from him. Testing showed his DNA was on all five firearms. Two of the firearms had altered or obliterated serial numbers.
Bounds was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bounds was sentenced to 80 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Bounds is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-69.
Follow us on Twitter @USAO_NDIA.
Pittsburgh Parolee Sentenced for Drug Trafficking CrimeRead the Press Release
PITTSBURGH, PA – Quintine Scales was sentenced to 30 months in prison for fentanyl and heroin trafficking in September 2019 while on state parole and probation for prior heroin trafficking and gun crimes, United States Attorney Scott W. Brady announced today.
Scales, 35, of Pittsburgh, was sentenced by United States District Judge Arthur J. Schwab. Judge Schwab ordered Scales’s federal prison sentence to be served consecutively to any state parole or probation revocation sentence. Judge Schwab also ordered Scales to serve six years of supervised release following his prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the United States Marshals Service, and the Pennsylvania Office of Attorney General conducted the investigation leading to the conviction and sentence in this case. This case is being prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Ohio man admits to methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Giovanni Geonard Ingersoll, of Akron, Ohio, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Ingersoll, age 28, pled guilty to one count of “Aiding and Abetting Distribution of Methamphetamine.” Ingersoll admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral County.Ingersoll 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 Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge Robert W. Trumble presided.
Ninja Electronics Owner Charged with Conspiring to Sell Stolen Goods, Mail Fraud and Money LaunderingRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit mail fraud and money laundering, United States Attorney Scott W. Brady announced today.
The six-count Indictment named Milton I. Barr, age 33, of Pittsburgh, Pennsylvania.
According to the indictment, Barr was charged in six counts for conspiring with others to sell stolen goods through his business, called Ninja Electronics, which sold used electronics and a wide variety of drug store type health and beauty aids and over the counter medications over the internet. Barr was charged with a criminal conspiracy, a mail fraud scheme for delivering stolen goods through the mail, and money laundering with regard to his handling of the proceeds of the stolen goods.
The law provides for a maximum sentence of up to five years for the conspiracy count, up to 20 years on each wire fraud count and up to 10 years on each money laundering count. The statutes in question each also carry a fine provision of up to $250,000. 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.
The Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case. Police departments from the City of Pittsburgh, Ross Township and Shaler Township also assisted in the overall investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Myrtle Beach Man Sentenced to 12 Years in Federal Prison for Selling Drug that Caused Overdose DeathRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Darell Levon Curry, a/k/a “Rell,” 31, of Myrtle Beach, was sentenced via videoconference to 12 years in federal prison after pleading guilty to possession with intent to distribute fentanyl, cocaine, heroin, and crack cocaine. Evidence presented to the court at Curry’s guilty plea and sentencing showed that in addition to distributing significant quantities of these drugs in and around Horry County from 2016 through 2019, Curry sold a quantity of fentanyl on May 21, 2019, that led to two overdoses, one of which was fatal.
"As this case shows, those who push drugs that kill others will be dealt with swiftly and severely,” said U.S. Attorney McCoy. “This case would not be possible without the work of our joint federal, state, and local task force designed to disrupt and dismantle the flow of deadly opioids into the Myrtle Beach area. With these partners, we will continue to aggressively prosecute those who deal in illegal narcotics, especially those who distribute opioids that cause death and serious injury.”
"This case should be taken as a stern warning, both for those who seek to use heroin and those who supply it laced with fentanyl,” said Jody Norris, Special Agent in Charge of the FBI. “The work of the FBI and our state and local partners will continue in an effort to find those that peddle in this poison.”
Evidence presented to the court in the case further showed that on May 21, 2019, the victims contacted Curry, who was one of their regular drug dealers, to obtain $20 worth of heroin. Curry fronted them a substance he called “China White,” a term that commonly refers to a light-colored type of heroin, with an understanding they would pay for the drugs later. The victims split the small amount of what was purported to be heroin between them, snorted it, and immediately overdosed. Records reflect that the two victims were located by their teenage children who called 911 and attempted to revive them with CPR until paramedics arrived. The paramedics administered Narcan to both victims. One responded and has since fully recovered, but Samuel Erny, of Horry County, died from his overdose. Toxicology results reflect that the drug ingested by the victims was fentanyl rather than heroin. Curry left the site of the overdose before authorities arrived and was arrested several days later on federal charges.
During the sentencing hearing, the court also heard evidence of the impact the overdose death has had on Erny’s family. Erny’s family described him as a hard-working husband who had struggled with addiction for several years. The court noted the great impact that the opioid crisis has had in South Carolina, and it observed that anyone who sells drugs such as heroin should know that they are selling a potentially deadly substance.
The court also found troubling Curry’s escalating and continuing pattern of criminal activity. His past convictions included carrying weapons on school property in 2004, possession of crack cocaine and resisting arrest in 2009, criminal domestic violence in 2010, possession of crack cocaine and marijuana and resisting arrest in 2010, possession with intent to distribute cocaine in 2013, third degree assault and battery in 2013, possession of cocaine in 2014, and third degree assault and battery in 2016. Records reflect Curry had been sentenced to sanctions ranging from fines and probation to four years in prison for these past convictions.
United States District Judge Donald C. Coggins, Jr. sentenced Curry to 145 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
The investigation was led by Task Force Officers of the Federal Bureau of Investigation, along with the Horry County Police Department, the Horry County Sheriff’s Office, the 15th Circuit Drug Enforcement Unit, and the 15th Circuit Solicitor’s Office.
Assistant United States Attorney Everett McMillian of the Florence office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Michigan City Man Sentenced to 115 Months in PrisonRead the Press Release
SOUTH BEND – Jeffrey Cooper, age 32, of Michigan City, Indiana was sentenced today by United States District Court Judge Damon R. Leichty upon his guilty plea to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Mr. Cooper was sentenced to 115 months in prison followed by 3 years of supervised release.
According to documents filed in this case, Cooper led police on a car chase for over a mile that ended when he crashed into a car and then a telephone pole outside the Blue Chip Casino. Cooper ran away but police found a loaded pistol with a high capacity magazine in his crashed car. Cooper’s felony convictions include battery resulting in serious bodily injury, intimidation, and escape.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive with the assistance of the Michigan City Police Department, Long Beach Police Department, LaPorte County Sheriff’s Department, and LaPorte County Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Molly E. Donnelly.
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Mexican National with Convictions for Robbery and Kidnapping Pleads GuiltyRead the Press Release
RICHMOND, Va. – A Mexican national with previous convictions for robbery and kidnapping pleaded guilty today to illegally reentering the United States.
According to court documents, from 2002 to 2003, Aureliano Escorcia-Martinez, 37, illegally entered the United States on six separate occasions, was apprehended each time on the border by the U.S. Border Patrol, and then voluntarily returned to Mexico. Sometime after his last voluntary return to Mexico, he illegally re-entered the United States for a seventh time and made his way to Virginia and committed serious crimes. For example, in June 2006, Escorcia-Martinez was convicted in the Circuit Court for Henrico County for robbery (sentenced to 15 years) and abduction/kidnapping (sentenced to 10 years). All but two years and five months of the sentences were suspended.
“Over the past 18 years, Mr. Escorcia-Martinez has illegally entered or attempted to enter the United States at least eight times, has been convicted of robbery and kidnapping, and was in custody this time for drunk driving,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This recidivist behavior reflects a blatant disregard for our nation’s laws and borders, and represents a clear threat to public safety. The Department of Justice is committed to prioritizing criminal immigration enforcement, and this case reflects that continuing commitment.”
In December 2009, Escorcia-Martinez was physically removed from the United States. Sometime later, Escorcia-Martinez again illegally reentered the United States for an eighth time.
In March, Escorcia-Martinez was incarcerated in the Henrico County jail for Driving While Intoxicated, and immigration authorities learned of his illegal return. Escorcia-Martinez was then indicted on the instant federal charges.
“This man committed serious crimes in our community — burglary, robbery, and driving under the influence,” said Lyle Boelens, Acting Washington Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). “His repeated egregious disregard for the law, including immigration law, demonstrates he is a threat to the public. ICE is committed to identifying and removing individuals who break our immigration laws and pose a threat to public safety.”
Escorcia-Martinez pleaded guilty to illegal reentry, and faces a maximum penalty of 20 years in prison when sentenced on November 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle Boelens, Acting Washington Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-65.
Massachusetts Man Charged After Getting Caught with Nearly 60 Pounds of MethamphetamineRead 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 Daren Lewis, 39, of Quincy, MA, was arrested and charged by criminal complaint with possessing with intent to distribute 500 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that on July 10, 2020, Homeland Security Investigations (HSI) in Flagstaff, Arizona received an alert regarding a suspicious cargo shipment, originating in California and destined for Tonawanda, NY. The shipment was manifested as personal effects and the phone number provided by the shipper was not a working number.
HSI Buffalo, the Erie County Sheriff's Office, and the Niagara County Drug Task Force began investigating the shipment on July 13, 2020, after its arrival in Tonawanda. On that day, a U.S. Customs and Border Protection (CBP) K-9 showed interest in the vent of the container, but did not make a final positive alert to the presence of controlled substances. However, an Erie County Sheriff's Office K-9 ran to the suspicious shipment container without command and indicated a positive alert to the presence of a narcotic odor near the same vent and area of the container at which the CBP K-9 showed interest.
At approximately 1:45 p.m. on July 13, 2020, the defendant Daren Lewis arrived at an area cargo terminal in a U-Haul rental truck. After going inside the office, the defendant returned to the truck and backed the U-Haul up to the container holding the suspicious shipment. Lewis opened the locks on the container and positioned the doors of the U-Haul truck to obscure the area between the truck and the container before going into the container.
After a short time, he was observed in the cab of the truck and appeared to be using a telephone. After closing the doors on the back of the U-Haul truck and driving away from the cargo terminal, the defendant was stopped on Sheridan Drive in Tonawanda by Erie County Sheriff's Deputies. The defendant and the U-Haul truck were transported to an Erie County Sheriff's Office. A search warrant was executed on the U-Haul. Inside, investigators discovered two cardboard boxes containing shrink wrapped packages. One of the packages was opened and found to contain a bag of a white crystal substance, which field tested positive for methamphetamine. The shipment contained a total of 59.5 pounds of suspected methamphetamine. The estimated street value of the suspected methamphetamine is $2,700,000. Lewis was arrested.
“While we often speak of the potentially deadly consequences of heroin and fentanyl use, methamphetamine can be just as dangerous, just as addictive, and in the end, just as deadly,” stated U.S. Attorney Kennedy. “The coordinated efforts by Homeland Security and our partners in local law enforcement have resulted in one of the largest seizures of methamphetamine ever in the Western District of New York and prevented this massive batch of poison from reaching our streets and wreaking havoc in our community.”
“Drug trafficking organizations clearly have the false perception that they can act with impunity during the current crisis,” said Kevin Kelly, HSI Buffalo Special Agent-in-Charge. “This arrest and significant seizure sends an unequivocal message that we will continue to hold criminals accountable.”
The defendant will make an initial appearance on July 15, 2020, at 10:00 a.m. before U.S. Magistrate Judge Michael J. Roemer.
The criminal complaint is the culmination of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Niagara County Drug Task Force, under the direction of Niagara County Acting Sheriff Michael Filicetti.
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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Maryland man and West Virginia woman admit to firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two people have admitted to participating in a firearms trafficking conspiracy, U.S. Attorney Bill Powell announced.
Brayan Mengou, of Hagerstown, Maryland, pled guilty to one count of “Aiding and Abetting Illegal Transportation or Receipt in State of Residency of Firearms Purchased or Acquired Outside of State of Residency.” Mengou, age 21, worked with others to transport several firearms from Berkeley County to Maryland in October 2019.
Amber Nicole Downing, of Hedgesville, West Virginia, pled guilty to one count of “False Statement During Purchase of Firearms.” Downing, age 35, admitted to purchasing firearms, stating the firearms were for her personal use, when she wasn’t the true purchaser of the firearms.
Mengou faces up to five years of incarceration and a fine of up to $250,000. Downing faces up 10 years of incarceration and a fine of up to $250,000. 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 cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Defense Contractor Facing Federal Indictment for Procurement FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Cory Collin Fitzgerald Sanders, age 39, of Hagerstown, Maryland, on federal charges of wire fraud, false claims, and aggravated identity theft in connection with his companies’ performance on federal contracts. The indictment was returned on July 8, 2020, and was unsealed at his initial appearance yesterday.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Special Agent in Charge John Salazar of the Naval Criminal Investigative Service, Washington Field Office.
According to the indictment, in June 2014 Sanders formed Sandtech LLC, a Maryland limited liability company whose business was the sale of video teleconference equipment to the Department of Defense and other agencies of the federal government. Sanders was the sole owner, agent, and president of Sandtech. As detailed in the indictment, Sanders obtained contracts with federal agencies for Sandtech to provide telecommunications equipment and services. Sanders caused Sandtech to fail to perform on contracts with the U.S. Department of Labor and the Department of the Army, which terminated the Sandtech conracts for cause. Sanders then formed Cycorp Technologies in 2016 to provide the same type of telecommunication services as Sandtech.
The indictment alleges that from February 10, 2015 through June 6, 2018, Sanders engaged in a scheme to defraud the government by allegedly entering into contracts with federal agencies which required Sandtech and Cycorp Technologies to provide new telecommunications equipment which was still under warranty. The indictment alleges that in his communications with federal agency contracting officers Sanders provided false information about the delivery, source, warranty, and/or condition of the electronic equipment provided by his companies, including misrepresentations that the equipment was new and protected by the manufacturer’s warranty, when Sanders knew that the equipment was not new, or was new but not under warranty, or was procured through unauthorized channels.
Further, the indictment alleges that Sanders provided contracting officials with false information and false documents about the credentials, certifications, and qualifications of Cycorp Technologies. Sanders allegedly provided fabricated and forged documents falsely certifying Cycorp Technologies’ status as an “authorized partner” of two large national telecommunications equipment manufacturers, which would have authorized Cycorp Technologies to buy directly from those companies and/or distribute their new and warrantied products. One of the documents included the forged name and signature of an official at one of the manufacturers. In addition, Sanders allegedly submitted invoices on behalf of Sandtech and Cycorp Technologies so that contracting government agencies would pay for deficient or non-existent performance by electronic deposit into business bank accounts.
If convicted, Sanders faces a maximum sentence of 20 years in federal prison for each of nine counts of wire fraud; a maximum of five years in federal prison for each of two counts of false claims; and a mandatory two years in federal prison, consecutive to any other sentence, for aggravated identity theft. 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. At Sanders’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge J. Mark Coulson ordered that Sanders be released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the Department of Labor – OIG, the NCIS, and the other federal law enforcement agencies involved for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew J. Maddox and Joyce K. McDonald, who are prosecuting the case.
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Man Sentenced for Illegally Straw Purchasing Multiple FirearmsRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to one year in prison for aiding and abetting the illegal straw purchase of five firearms.
According to court documents, Manuel Christopher Thomas, 28, and Paul Laurence Chambers, 21, aided and abetted the straw purchase of five firearms from federal firearm licensees in the Eastern District of Virginia by providing Joni Maria Metcalf, 35, money and explicitly directing her as to which firearms to illegally purchase on their behalf. Police in Washington, D.C. recovered one of the illegally purchased firearms from Thomas 11 days after it was straw purchased.
Previously, Chambers, also from Maryland, was sentenced to 9 months in prison for his role in this coordinated scheme to illegally straw purchase firearms.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Liam O'Grady. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Benjamin Kringer prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-019.
Local Methamphetamine Dealer Sentenced to 324 Months' ImprisonmentRead the Press Release
MARQUETTE, MICHIGAN — Jonathan Collins, 41 years old, was sentenced on July 10, 2020, to serve 324 months’ imprisonment by U.S. District Judge Paul L. Maloney. Collins pled guilty in December 2019 to possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Upon his release, Collins will be subject to 5 years of supervision.
Marquette City Police pulled over Collins’s vehicle in November 2018. During that encounter, investigators found approximately 50 grams of methamphetamine in the car and a double-edged dagger concealed in the driver-side support handle. The Upper Peninsula Substance Enforcement Team (UPSET) then took over the investigation and learned that Collins had been making frequent trips to the Grand Rapids area and had brought ounces of crystal methamphetamine back to the Upper Peninsula for redistribution. After being charged by the Marquette County Prosecuting Attorney’s Office and being released on bond, Collins conspired to obtain additional methamphetamine and made threats against a co-conspirator. The U.S. Attorney’s office charged Collins in August 2019.
District Judge Maloney imposed an enhanced sentence in this case based on several factors, including Collins’s obstructing justice by posting a statement online calling a co-conspirator a “snitch” and attaching a copy of the co-conspirator’s statement to police. Judge Maloney concluded a substantial term of incarceration was necessary because of Collins’s actions toward the co-conspirator and the damage crystal methamphetamine is doing to Michigan and the Upper Peninsula more specifically.
“As long as methamphetamine distribution continues to be a problem in the Upper Peninsula, my office will continue to work with our federal and local law enforcement partners to prosecute those who would otherwise go undeterred and keep bringing this terrible drug into our northernmost communities,” said U.S. Attorney Andrew Birge.
The U.S. Attorney’s Office, Marquette County Prosecuting Attorney’s Office, UPSET, and Marquette City Police Department worked together to ensure Collins was brought to justice
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Lexington Man Pleads Guilty to Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky. - A Lexington, Ky., man, Kenneth Mitchell, 27, pleaded guilty in federal court on Tuesday, before Chief U.S. District Judge Danny Reeves, to being a convicted felon in possession of a firearm.
According to Mitchell’s plea agreement, on December 9, 2019, officers responded to a firearm being discharged at an apartment complex in Lexington, where officers located Mitchell and a female victim. Mitchell admitted that prior to police arriving, he had taken the firearm to a nearby fence line to hide it, where law enforcement later recovered it. Mitchell further admitted that he knowingly possessed the firearm and that he was prohibited from possessing it, as a convicted felon.
Mitchell was indicted in February 2020. Mitchell had previously been convicted, in May 2019, of Wanton Endangerment, in Fayette County Circuit Court.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos II.
Mitchell faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
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