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26 June 2020
McKees Rocks Man Sentenced to 10 Years in Prison for Drug Trafficking CrimesRead the Press Release
PITTSBURGH, PA – Shawn Frank was sentenced to 120 months in prison for fentanyl, heroin, and cocaine trafficking crimes, United States Attorney Scott W. Brady announced today.
On June 25, 2020, Frank, 42, of McKees Rocks, was sentenced by United States District Judge David S. Cercone. Judge Cercone also sentenced Frank to serve six years of supervised release following his prison sentence.
Frank pled guilty earlier this year to distributing quantities of fentanyl and heroin in 2016 and conspiring to distribute cocaine in 2018. He was on state parole between 2016 and 2018 following a five to ten year prison sentence that was imposed in 2011 for possession with intent to deliver heroin. Prior to Frank’s federal convictions this year, he had been convicted of drug trafficking, most often involving cocaine or heroin, seven times in seven prior state prosecutions during the preceding 20 years.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the United States Postal Inspection Service, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, and the Pittsburgh Police Department conducted the investigation leading to the convictions and sentence in this case.
Mariah Ferry sentenced to 30 years in federal prison for kidnapping and brutal beating of two victims suspected of stealing drugs and moneyRead the Press Release
ALBUQUERQUE, N.M. – Mariah Ferry, 22, of Albuquerque was sentenced today in federal court in Santa Fe, New Mexico to 30 years in prison on charges related to the kidnappings and brutal assaults of two victims suspected of stealing drugs and money from the home of co-defendant, Chase Smothermon, 32, of Albuquerque.
Ferry pleaded guilty on Feb. 13 to kidnapping and conspiracy to kidnap, resulting in the death of J.S. According to Ferry’s plea agreement and other public court records, Smothermon, Ferry, and a third co-defendant, Jose Torrez, 48, of Albuquerque, and other co-conspirators took part in a scheme to retaliate against two victims who they believed stole marijuana from Smothermon’s home where he resided with Ferry. On Aug. 8, 2017, Torrez alerted Smothermon that J.S. was present at Torrez’s home. Smothermon went to Torrez’s home to retaliate against J.S. and try to get his drugs and money back. Ferry drove Smothermon to Torrez’s home where Smothermon and co-conspirators brutally beat J.S. with a baseball bat and the butt of a gun.
Smothermon and co-conspirators then put J.S. in the trunk of Ferry’s car and bound J.S.’s hands, ankles, and mouth with tape. Ferry drove Smothermon and J.S. to another co-conspirator’s home where J.S. died shortly thereafter. Ferry and Smothermon then mutilated J.S.’s body in a shed. Later the same day, Smothermon contacted M.T. under a ruse that Smothermon wanted to buy marijuana from M.T. When M.T. arrived at Smothermon’s home, Smothermon, Ferry and others bound, gagged and assaulted M.T. for hours. After several hours, two other co-conspirators escorted a bound and badly beaten M.T. out of Smothermon’s home and drove him to another location where M.T. was held overnight before M.T. was released. On Aug. 9, 2017, Ferry drove Smothermon and another co-conspirator to a rural area in New Mexico where they buried J.S.’s body in a shallow grave.
Smothermon pleaded guilty on Jan. 24 to kidnapping and conspiracy to kidnap, resulting in the death of J.S. Torrez pleaded guilty on Feb. 13 to conspiracy to kidnap, resulting in the death of J.S. Smothermon and Torrez are in custody awaiting sentencing. They face up to life in prison for each offense. However, under the terms of their plea agreements, should the sentencing court accept their plea agreements, Smothermon will receive a sentence between 40 to 60 years and Torrez will receive a sentence of 14 years.
The DEA and FBI investigated this case with assistance from the Albuquerque Police Department and Second Judicial District Attorney’s Office. The Narcotics section of the U.S. Attorney’s Office is prosecuting the case.
Maple Heights man charged with damaging by means of fire a parking lot attendant booth during May 30 demonstrationsRead the Press Release
Justin Herdman, United States Attorney for the Northern District of Ohio, announced today that Timothy James Goodner, age 19, of Maple Heights, has been charged with maliciously damaging or destroying by means of fire or explosion any building or property. According to the criminal complaint, Goodner was involved in an act of arson concerning the Shaia’s Parking Lot attendant booth on 1242 West 3rd Street on Saturday, May 30th, 2020.
“Today’s arrest demonstrates the continued resolve of federal law enforcement to identify, arrest, and prosecute those individuals responsible for the widespread damage in our downtown on May 30,” said U.S. Attorney Justin Herdman. “This defendant is alleged to have committed arson during the riot that followed an otherwise peaceful, Constitutionally-protected assembly of our neighbors. Let this arrest serve as a reminder to all those who were engaged in similar crimes on that day - we are going to find you, we are going to arrest you, and we are going to hold you accountable.”
According to the criminal complaint, Goodner and other persons gathered around an attendant booth in the West 3rd Street parking lot during the demonstrations on May 30th. Images and videos released from that day show a suspect setting fire to cardboard boxes and paper towels and then placing them inside the attendant booth. Goodner is then observed contributing to the fire by placing boxes and other combustible products inside the both to help accelerate the burning.
Afterwards, the Cleveland Division of Police released images and video of suspects committing various criminal acts from the demonstrations to the media. Goodner was identified via these images from numerous anonymous tips by his clothing and a visible tattoo.
Goodner was arrested and booked into the Cuyahoga County Jail on June 22, 2020 by the Ohio State Highway Patrol on an active warrant obtained by the Cleveland Police Department for aggravated arson.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
This case is being investigated by the Cleveland Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cleveland Division of Police. This case is being prosecuted by Assistant U.S. Attorney John Hanley. The U.S. Attorney’s Office for the Northern District of Ohio would like to acknowledge and thank the Cleveland FBI, Cuyahoga County Prosecutor’s Office and the Ohio State Highway Patrol for their assistance with this matter.
Man from Alto, New Mexico pleads guilty to federal kidnapping chargeRead the Press Release
ALBUQUERQUE, N.M. – Joshua Neil Bowen, 28, of Alto, New Mexico pleaded guilty on June 25 in federal court in Las Cruces, New Mexico to kidnapping.
According to Bowen’s plea agreement and other public court documents, he and four co-defendants abducted the victim from a travel center in Mescalero, New Mexico on April 4, 2019. Bowen and Roberto Cervantes, 25, of Chaparral, New Mexico each had a firearm at the time. Cervantes hit the victim in the face several times. They also tied and bound the victim in an attempted robbery.
Bowen and his co-defendants took the victim to Chaparral where the co-defendants tried to withdraw money from the victim’s bank account with a debit card. From there, some of the co-defendants traveled to El Paso, Texas, where Bowen took the victim to a bank. Bowen ordered the victim to pretend to be Bowen’s grandfather and change the PIN for the victim’s ATM card. After changing the PIN, Bowen transported the victim back to New Mexico. Some of the co-defendants obtained money from the victim’s bank account.
Bowen and his co-defendants checked into a hotel in Las Cruces on April 5, 2019, where they prevented the victim from leaving. Bowen and Brittany Priddy, 30, of Ruidoso, New Mexico left the hotel on April 7, 2019, and traveled to a residence. On April 8, 2019, the victim managed to call his son and tell him where he was. An officer from the Las Cruces Police Department responded and rescued the victim.
Priddy pleaded guilty on April 28. Derek Welborn, 30, of Ruidoso Downs, New Mexico pleaded guilty on April 30. Cervantes and Alison Comstock, 28, of Carrizozo, New Mexico pleaded guilty on May 19. All of the defendants are in custody awaiting sentencing.
The FBI investigated this case with the New Mexico State Police, Ruidoso Downs Police Department, Las Cruces Police Department and Dona Ana Sheriff’s Office. Assistant U.S. Attorneys Marisa A. Ong and Tilli M. Villalobos is prosecuting the case.
Man Sentenced to Prison for Gun Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to over one year in prison for his role in a conspiracy to straw purchase 31 firearms.
“Emmanuel Ndjongo illegally straw-purchased 31 firearms,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Only two of those firearms have been recovered, and the whereabouts of the remaining 29 firearms are unknown. Ndjongo’s conduct is the quintessential definition of firearms trafficking, and is precisely the type of criminal conduct we are pursuing with Project Guardian-DMV. It should be abundantly clear now to all: If you straw purchase firearms in the Eastern District of Virginia, you will be subject to felony prosecution. I want to commend the tremendous work of our investigative partners at ATF for their outstanding efforts on this important case.”
According to court documents, Ndjongo, 22, of Bowie, Maryland, and his then-girlfriend, Alexus Jordon, 23, of Alexandria, conspired to straw purchase 31 firearms from Federal Firearm Licensees (FFLs) in Virginia. Jordon purchased six of the firearms at FFLs in Virginia. Ndjongo used Jordon’s name to order the remaining firearms online from an FFL located in North Carolina, and had these firearms shipped to various FFLs in Virginia.
“Straw purchasing is a favored practice among criminals to illegally move firearms from a seemingly legitimate purchaser to individuals who use these weapons in the commission of violent crimes. Today’s sentencing affirms that there will consequences when lawbreakers engage in this behavior,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “ATF and our law enforcement partners will aggressively pursue those who engage in criminal straw purchasing and we applaud U.S. Attorney Terwilliger for his continued efforts to curb firearm violence in the Eastern District of Virginia.”
Once the firearms arrived in Virginia, Jordon picked up the firearms and gave them to Ndjongo, who sought to sell the firearms to other individuals. Local law enforcement in Washington, D.C. and Prince George’s County, Maryland have recovered two of the firearms unlawfully purchased during this conspiracy, both of which had altered or destroyed serial numbers.
Jordon was previously sentenced for her role in this straw purchasing conspiracy.
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 T.S. Ellis, III. Assistant U.S. Attorneys Nicholas U. Murphy II and Philip Alito 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-343.
Man Sentenced to Prison for Child Exploitation CrimesRead the Press Release
ALEXANDRIA, Va. – A man with citizenship in Lebanon and the United States was sentenced today to 10 years in prison for child exploitation offenses.
According to court documents, George A. Nader, 61, admitted that he arranged to transport a 14-year-old boy from Europe to Dulles International Airport for purposes of illegal sexual conduct in early 2000. Nader had met the boy in Prague, Czech Republic, and later brought him to his residence in Washington, D.C. Nader also admitted that, in September 2012, he possessed or accessed with intent to view video images of child sexual abuse while he was in New York.
Nader had previously been convicted of transporting child pornography into the Eastern District of Virginia in 1991.
In addition to his prison sentence, Nader was ordered to pay a fine of $25,000, and $150,000 in restitution to a minor victim.
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 Leonie M. Brinkema. Assistant U.S. Attorney Jay V. Prabhu prosecuted the case. Additional assistance was provided by Special Assistant U.S. Attorney Melissa L. Chong, Assistant U.S. Attorney Daniel Young, and former Assistant U.S. Attorney Laura Fong.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state, and federal partners.
The United States Attorney’s Offices for the Eastern District of New York, the District of Columbia, and the Northern District of California provided valuable assistance to the investigation, as did the Czech National Police, the Pacific Grove Police Department in California, and the FBI’s San Francisco and New York Field Offices.
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-201.
Man Sentenced to Federal Prison for Stealing Trade Secrets and Online Extortion of Pensacola CompanyRead the Press Release
PENSACOLA, FLORIDA – Timothy J. Smith, 43, of Mobile, Alabama, was sentenced to 18 months’ imprisonment late Wednesday afternoon in the United States District Court in Pensacola on charges of theft of trade secrets and interstate extortionate communications. Lawrence Keefe, United States
Attorney for the Northern District of Florida, announced the sentencing today.During the trial, a jury received evidence that Smith was a software engineer in Mobile, Alabama.
StrikeLines, the victim in the case, is a Pensacola based company that uses commercial side scan sonar equipment to locate fishing reefs in the Gulf of Mexico and sells the coordinates using an interactive map on their website. StrikeLines also provides public coordinates for free to those interested in finding valuable spots to fish in the Gulf.The evidence showed that between April and November 2018, Smith obtained private information valued at hundreds of thousands of dollars from the local company by using sophisticated cyber techniques in order to gain the trade secrets and decrypt information of the company from its website. After hearing how Smith stole private sonar coordinates of reefs, the jury received testimony and exhibits showing how Smith then tried to extort the two owners of StrikeLines for more valuable information. During this entire time, the victims did not know Smith’s identity or why he was trying to harm them. Federal and state law enforcement were able to trace all the criminal acts back to Smith in Mobile where he committed the cyber theft against the Pensacola company.
At sentencing, United States District Judge M. Casey Rodgers announced that she thought Smith’s acts were based upon “spite” and “arrogance.” In addition to his term of imprisonment, Judge
Rodgers sentenced Smith to a one-year term of supervision once released from custody. Smith was also ordered to forfeit all the electronic devices he utilized to commit his crimes.“The U.S. Attorney’s Office takes very seriously cyber crimes of all kinds, ranging from protecting our national security to the secrets of private companies,” said U.S. Attorney Keefe. “In our increasingly online society, cyber security is vital to all of us as we conduct Internet transactions and conversations so that we can be confident our identities and personal information are protected. Our office is pleased that the jury held the defendant to account for victimizing a small local business.”
“This is the first time we’ve investigated a case like this and it most likely won’t be the last,” said FDLE Pensacola Special Agent in Charge Jack Massey. “I applaud our FDLE agents and the
U.S. Attorney’s Office for always working to stay at the forefront of technology and one step ahead of the bad guys.”This case resulted from an investigation by the Florida Department of Law Enforcement, the Federal
Bureau of Investigation, and the Escambia County Sheriff’s Office. Assistant United States Attorney
David L. Goldberg prosecuted the case."Trade secrets are the cornerstone of American innovation and a driver of the nation's economy," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "When a corporation invests in developing new products and processes, the theft of those developments is a clear threat to that company's future. The FBI will continue to work vigorously alongside our partners at FDLE and the U.S. Attorney's Office to combat intellectual property theft and bring those responsible to justice."
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Madison Man Charged with ExtortionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today a federal criminal complaint charging Devonere Johnson, 28, with extortion in connection with threats made to Madison businesses this week. Johnson, who was arrested on state charges earlier this week, will make an initial appearance in U.S. District Court in Madison on a date and time to be determined.
The complaint charges Johnson with attempting to obtain money and property by consent induced by the threatened use of force, violence, and fear.
The complaint alleges that on June 22, Johnson threated that the windows of a business would be destroyed unless a person associated with the business made a payment to Johnson’s Venmo account. The second count of the complaint alleges that on June 22, Johnson threatened to shut down and destroy a second business unless Johnson and his associates were provided free food and beverages.
“Those who attempt to take advantage of recent events to extort local businesses under the guise of community activism will be vigorously prosecuted,” said U.S. Attorney Blader. “All citizens have a right to feel safe within their communities. Extortion is not activism, it is a crime and it will not be tolerated.”
If convicted, Johnson faces a maximum penalty of 20 years in federal prison on each count. The charges against Johnson are the result of an investigation by the Federal Bureau of Investigation and the Madison Police Department.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Macy Couple Sentenced for Abuse of Foster ChildRead the Press Release
United States Attorney Joe Kelly announced that Charles Neil Parker, 39, and Krista Parker, 36, were sentenced today in federal court in Omaha for multiple counts of intentional child abuse. United States District Judge Robert F. Rossiter, Jr. sentenced Charles Neil Parker and Krista Parker each to 72 months’ imprisonment. There is no parole in the federal prison system. After their releases from prison, Charles Neil Parker and Krista Parker will each serve an 18-month term of supervised release.
In September 2018, officers responded to a residence in Macy, Nebraska, after receiving a report that a party guest at the residence had observed a child locked in the basement. Officers located the then-nine-year-old victim in a locked utility room in the basement. The door to the room was secured with an eye-hook latch on the outside and had a contact alarm that sounded when the door was opened. Officers observed that the room had a concrete floor, no windows, and no ventilation. The victim had two urine-soaked blankets on the floor to sleep on. The floor and walls were also soiled with urine and feces. The officers observed two toys, an empty chip bag, and an empty soda bottle. The wall contained stick figure drawings and tally marks. The door had scratch marks dug into it on the inside.
Krista Parker was located intoxicated and asleep in another room of the house. During an interview the next day, Krista Parker first stated that the victim must have wandered into the room and gotten locked in by mistake, but later admitted to locking the victim in the room because she wanted to “have one night of fun” after a stressful week at work. Krista Parker had sent her biological children to their grandmother’s house for the night. Charles Neil Parker could not be located on the night of the report, but during a subsequent interview admitted that the Parkers locked the victim in the room sometimes due to his behavior.
The victim, who suffers from cognitive delays and is believed to be on the autism spectrum, reported that he always slept and ate in the room and was unable to leave the room to use the bathroom. The victim was identified as a foster child placed in the Parkers’ care by the Omaha Tribe Children and Family Services. At the time, Krista Parker was employed with Children and Family Services as a case aid.
Judge Rossiter described the Parkers’ treatment of the victim as “horrible” and “unforgiveable.”
United States Attorney Joe Kelly stated, “Today justice was done for one of the most vulnerable victims—a child placed with a couple who saw an opportunity to make money while continuing to exploit a child who was unable to cry out for help.”
FBI Special Agent in Charge Kristi Johnson says the FBI agents who investigate violent crime in Indian Country are passionate about the tribal communities they serve. “Once the Omaha Nation Law Enforcement Services responded to the 911 call and arrested Krista Parker on local charges, the FBI immediately started investigating. Their work resulted in federal charges and today’s federal sentences against Parker and her husband.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
Local Man Arrested for Lying About Marion Cross Burning, Interfering with Fair Housing Based on RaceRead the Press Release
ABINGDON, VIRGINIA – James Brown, of Marion, Virginia, was arrested this afternoon and charged with lying to federal agents about his involvement in the burning of a cross on the front lawn of an African-American woman’s home and criminal interference with fair housing based upon the victim’s race. United States Attorney Thomas T. Cullen and Neil L. Mathison, Acting Special Agent in Charge of the FBI’s Richmond Division made the announcement.
“The frightening act at the center of today’s complaint—a racially motivated cross burning—interfered with the victim’s federally protected right to fair housing,” U.S. Attorney Cullen stated today. “Acts of violence, threats, and other forms of intimidation prompted by racial animus are serious federal crimes, and we will continue to work closely with the FBI to hold offenders accountable.”
“The FBI is committed to protecting all citizens, and will aggressively investigate acts of intimidation or violence against anyone based on race or ethnicity,” Acting Special Agent in Charge Mathison said today. “We thank the Marion County Police Department, the Smyth County Sheriff's Office and the United States Attorney's Office's Western District of Virginia for their swift and direct attention to this incident.”
Brown, 40, was arrested today on a federal criminal complaint charging him with lying to federal agents and criminal interference with fair housing based upon the victim’s race.
According to court documents, on June 14, 2020, at approximately 12:55 a.m., the Marion Police Department received a report of a burning cross in the front yard of an African-American family, one of whom had organized a civil rights protest the day before. In the following days, working with the FBI, investigators learned of the involvement of Brown. When questioned by investigators if he had anything to do with the cross-burning incident, Brown allegedly lied. Witnesses interviewed during the investigation stated that Brown admitted to the cross burning and used racial epithets when referring to the African American family.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Marion Police Department, and the Smyth County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Lexington Man Sentenced to 87 Months for Possession of a Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky. — Clint Dion Davis, 39, of Lexington, was sentenced today, to 87 months in federal prison, by United States District Judge Danny C. Reeves, for possession of a firearm by a convicted felon.
According to his plea agreement, in April 2019, officers with the Lexington Police Department, initiated a traffic stop on a vehicle occupied by Davis. Davis admitted to the officers that he was in possession of a firearm. Officers located a Sig Sauer .40 caliber pistol on his person. Davis has previously been convicted of a felony offense and was prohibited from possessing a firearm.
Under federal law, Moberly must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years. Davis will also be required to pay a $15,000.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.
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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Jeffersonville Man Sentenced to 78 Months for Firearm Offenses and Drug TraffickingRead the Press Release
LEXINGTON, Ky. - A Jeffersonville, Kentucky, man, Ryan Keith Herndon, 30, was sentenced on Friday to 78 months in federal prison, by U.S. District Judge Karen Caldwell, for selling a firearm to a convicted felon, possessing a firearm as a convicted felon, and distributing a mixture of heroin, valeryl fentanyl, fentanyl, and methamphetamine.
According to his plea agreement, Herndon admitted that on May 9 and 10 he sold two firearms to a Confidential Informant (CI), who Herndon knew to be a convicted felon at the time of the transactions. Herndon further admitted that he was also a convicted felon and prohibited from owning a firearm. Herndon also admitted to arranging the purchase of and providing various narcotics mixtures to another CI, on May 21 and 22, 2019.
Under federal law, Herndon must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years, upon his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division, and Chief Terry Landrum, Mt. Sterling Police Department, jointly made the announcement.
The investigation was directed by ATF, with the assistance of the Gateway Area AHIDTA Task Force. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Jackson County Man Sentenced to 5 Years in Federal Prison for Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
Gulfport, Mississippi – Nicholas Brown, Jr., 25, of Jackson County, Mississippi was sentenced today by U.S. District Judge Sul Ozerden, to 60 months in federal prison, followed by 5 years of supervised release, for possession of a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Brown was also ordered to pay a $5,000 fine.
On December 21, 2018, Brown was arrested on multiple, unrelated warrants. During an investigation, multiple firearms, cash and marijuana were recovered in the residence where Brown was living. Brown admitted that his fingerprints would be found on all of the firearms and that vacuum sealed bags found in the residence were from marijuana that he purchased and repackaged for sale. The investigation also revealed text messages that indicated Brown was involved in the distribution of controlled substances and photos of Brown with controlled substances and firearms.
On June 12, 2019, Brown was charged in a federal criminal indictment. He pled guilty before Judge Ozerden on December 20, 2019, to one count of possession of a firearm in furtherance of a drug trafficking crime
The case was investigated by the ATF and the Gautier Police Department. It was prosecuted by Assistant U.S. Attorney Shundral Cole.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Insurance Broker Arrested, Charged with Defrauding Insurance Companies and Individual Investors Out of $1-Million DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Brian Bartz, 38, of Rochester, NY, was arrested and charged by criminal complaint with wire fraud, attempted wire fraud, and aggravated identity theft. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that over the past five years, the defendant has been employed as an insurance broker by several different life insurance companies including: the Benjamin Hollamby Agency, which sold life insurance policies on behalf of Nationwide Life Insurance Company; the Banker's Conseco Life Insurance Company; Mass Mutual Life Insurance Company; and the Lavoro Group via Mass Mutual, located in Rochester. The general practice of these companies was to offer monetary commissions and/or bonuses to their agents when agents sold life insurance policies.
According to the complaint, Bartz would submit false applications for life insurance policies to the insurance companies on behalf of individuals who were not aware of these applications. The applications included individuals' means of identification without their knowledge or consent. In order to avoid detection, the defendant used various victims' bank accounts to pay the premiums for the unauthorized policies. Between 2015 and 2020, Bartz defrauded or attempted to defraud a number of life insurance companies and dozens of investors out of more than $950,000.
The complaint further states that some of the defendant’s conduct was discovered after his departure from the insurance companies. For instance, after he left the Benjamin Hollamby Agency in February 2018, Nationwide conducted an annual audit, which revealed that a disproportionately large number of life insurance policies sold by Bartz had lapsed due to policy holders failing to pay the required premiums. As a result, Nationwide performed an internal investigation and determined that many of the lapsed policy holders had never given the defendant authorization to apply for a policy on their behalf.
In October 2019, investigators executed a search warrant on the contents of the defendant’s personal email, which he used to effectuate his scheme. That review revealed that, on multiple occasions, Bartz received emails from Nationwide that were addressed to and intended for prospective policy holders but were sent directly to the defendant’s email address. The emails contained a link to a website application that prospective policy holders were supposed to complete, electronically sign, and submit to Nationwide. These emails were sent shortly before Nationwide received completed applications for these individuals. Investigators believe that the defendant completed the applications and submitted them without the victims' knowledge or consent. In total, Bartz fraudulently submitted approximately 150 policy applications on behalf of approximately 120 individuals to Nationwide and, as a result, Nationwide paid out approximately $250,000 in commissions and bonuses that it otherwise would not have paid.
The defendant continued to engage in this scheme of submitting false life insurance policy applications, collecting commissions for the sale of those policies, and using victim bank accounts to pay the policy premiums after he left the Benjamin Hollamby Agency and Nationwide:
• At Banker's Conseco, Bartz allegedly fraudulently submitted approximately 29 policy applications on behalf of approximately 22 individuals, attempting fraudulently to obtain approximately$70,000 in commissions and bonuses. Banker's Conseco discovered the fraudulent scheme in time to avoid making the payments.
• At Mass Mutual, the defendant fraudulently submitted approximately 138 policy applications on behalf of approximately 10 individuals, attempting fraudulently to obtain approximately $110,000 in commissions and bonuses. However, Mass Mutual discovered the fraudulent scheme in time to avoid making the payments.In addition to defrauding insurance companies, Bartz attempted to defraud individual victims through a fraud scheme commonly known as a Ponzi scheme. The defendant targeted individuals that he either already had years-long relationships with as their life insurance agent or who were referred to Bartz as a trusted life insurance/investment agent. While working at the life insurance companies, the defendant began to persuade individuals to make premium payments to him directly instead of to the life insurance company with which they had or believed they had a policy. In addition, Bartz represented himself as an investment advisor and convinced victims to invest their money in investment funds that he controlled, which, in fact, did not exist. To avoid being detected, the defendant used a small portion of incoming new investor monies to make promised payments to earlier investors. Bartz is accused of defrauding individual investors out of approximately $530,000.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Robert Guyton.
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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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 25 was:
Cheyenne Willow Ironshell, 22, of Butte, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Ironshell faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Ironshell was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 20-31.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 25 was:
Joshua Patrick Vanatta, 30, of Bainville, on charges of prohibited person in possession of ammunition and possession of a destructive device. If convicted of the most serious crime, Vanatta faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Vanatta was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-40.
Jalissa Haley Fern Spotted Bear, 31, of Wolf Point, on charges of robbery and assault with intent to commit robbery. If convicted of the most serious crime, Spotted Bear faces a maximum 15 years in prison, a $250,000 fine and three years of supervised release. Spotted Bear was released pending further proceedings. The Fort Peck Department of Law and Justice investigated the case. Pacer case reference. 20-28.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illegal possession of ammunition results in maximum federal prison sentence for previously convicted felonRead the Press Release
BRUNSWICK, GA: A gang member and convicted felon will spend the next decade in federal prison after sentencing in U.S. District Court.
Wilbert Lee Stephens Jr., a/k/a “Lil Bill,” a/k/a “Wild Bill,” 28, of Morrow, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood to 120 months in prison – the maximum for the offense, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Stephens pled guilty to an Information charging him with Possession of Ammunition by a Convicted Felon. After completion of his incarceration, Stephens will be required to serve three years of supervised release. There is no parole in the federal system.
“As a convicted felon with a long history of violent offenses, Wilbert Stephens was prohibited under federal law from possessing firearms or ammunition,” said U.S. Attorney Christine. “His history of sociopathic behavior amply demonstrates that he shouldn’t be anywhere near firearms – or free society.”
According to court documents and testimony, Stephens was pulled over for speeding in excess of 100 mph by a Georgia State Patrol trooper who smelled the odor of marijuana in the vehicle. A subsequent search discovered nearly a pound of marijuana, an Ak-47 rifle on the back seat, and ammunition in Stephens’ pocket.
Stephens, who was on state probation, was arrested and later indicted related to a criminal drug trafficking conspiracy. During the investigation he was determined to be a member of the Gangster Disciples criminal street gang.
“Stephens had a chance to turn his life around while on probation but instead chose to commit further crimes, proving that he has not learned from his prior convictions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “He will now go back to prison where he can no longer be a threat to society.”
This investigation took place under the umbrella of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
The case was investigated by the FBI, the Georgia State Patrol and the Glynn County Police Department, and prosecuted for the United States by Assistant U.S. Attorney Jennifer Kirkland.
Hartford Man Sentenced to Federal Prison for Narcotics Distribution and Firearm Possession OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DYZHAE RICHARDSON, 23, of Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton to 24 months of imprisonment, followed by three years of supervised release, for narcotics distribution and firearm possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in July 2019, after a spate of gun violence in Hartford, the FBI’s Northern Connecticut Gang Task Force, DEA, Hartford Police Department and other law enforcement agencies initiated an investigation targeting gang-related drug distribution and associated violence in north Hartford. During the investigation, investigators made two controlled purchases of heroin/fentanyl from Richardson in August and September 2019. Richardson was on state probation at the time of these drug sales.
Richardson was arrested on September 13, 2019. On that date, a court-authorized search of his residence revealed a loaded Taurus G2C 9mm handgun, additional loose rounds of 9mm ammunition, approximately 100 wax folds of heroin, a quantity of crack cocaine and approximately $2,500 in cash. A search of Richardson’s person also revealed approximately $1,000 in cash.
Richardson’s criminal history includes felony convictions for narcotics and firearm possession offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Richardson has been detained since his arrest. On January 21, 2020, he pleaded guilty to one count of possession with intent to distribute heroin, fentanyl and cocaine base (“crack”), and one count possession of a firearm by a previously convicted felon.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Greensboro Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A Greensboro, North Carolina, business owner was sentenced to 18 months in prison yesterday for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Elizabeth Wood, 40, and her mother Rebecca Adams, 57, operated a temporary staffing businesses in Greensboro under the names A & R Staffing Solutions, Inc., Wood Executive Services Inc., and Adams Staffing Enterprises Inc. Wood and her mother withheld federal and state taxes from employees’ paychecks but did not pay those taxes over to the IRS or the State of North Carolina. In 2015, Wood pleaded guilty to embezzling employee state tax withholdings and was sentenced to prison. After her release, Wood resumed her role at the staffing business where she continued to withhold federal taxes from employees’ paychecks, but again did not pay those taxes over to the IRS. She also did not file with the IRS the required quarterly payroll tax return.
On Feb. 5, 2020, Wood and her mother, Adams, pleaded guilty to failing to pay over employment taxes. Adams is scheduled to be sentenced on July 9, 2020.
In addition to the term of imprisonment, U.S. Senior District Judge N. Carlton Tilley Jr., ordered Wood to serve three years of supervised release and to pay approximately $2,338,766 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Frank Chut, who are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Greensboro Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
A Greensboro, North Carolina, business owner was sentenced to 18 months in prison yesterday for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Elizabeth Wood, 40, and her mother Rebecca Adams, 57, operated a temporary staffing businesses in Greensboro under the names A & R Staffing Solutions, Inc., Wood Executive Services Inc., and Adams Staffing Enterprises Inc. Wood and her mother withheld federal and state taxes from employees’ paychecks but did not pay those taxes over to the IRS or the State of North Carolina. In 2015, Wood pleaded guilty to embezzling employee state tax withholdings and was sentenced to prison. After her release, Wood resumed her role at the staffing business where she continued to withhold federal taxes from employees’ paychecks, but again did not pay those taxes over to the IRS. She also did not file with the IRS the required quarterly payroll tax return.
On Feb. 5, 2020, Wood and her mother, Adams, pleaded guilty to failing to pay over employment taxes. Adams is scheduled to be sentenced on July 9, 2020.
In addition to the term of imprisonment, U.S. Senior District Judge N. Carlton Tilley Jr., ordered Wood to serve three years of supervised release and to pay approximately $2,338,766 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Frank Chut, who are prosecuting the case.
Four face federal charges related to fatal carjacking in Loving, New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Stetson Shane Barnes, 28, of Loving, New Mexico, Donald Alfred Busch, 32, of Carlsbad, New Mexico, Jehra Lynn Hedgecock, 31, of Carlsbad, New Mexico, and Tyson Lee Terrell, 36, of Carlsbad, New Mexico, appeared in federal court in Las Cruces, New Mexico during the course of this week for preliminary and detention hearings on a criminal complaint charging them with conspiracy to commit carjacking. A U.S. magistrate judge ordered them to remain in custody pending trial.
According to public court documents, Barnes, Busch, Hedgecock, and Terrell allegedly went to a home in Loving, New Mexico on May 28, 2019, to steal a motorcycle. Hedgecock allegedly drove the four defendants to the location in her truck and knocked on the front door while Busch and Terrell attempted to jumpstart motorcycles parked at the residence. Barnes, Busch, and Hedgecock allegedly pointed their guns at a man who came outside during the attempted theft.
Hedgecock allegedly drove Terrell and Barnes away from the home in her truck while Busch pushed one of the motorcycles off the property. Multiple rounds of ammunition were allegedly fired from the truck and into the residence as they drove away. One of those rounds struck and killed the same man who Barnes, Busch, and Hedgecock previously confronted at gunpoint.
Hedgecock stopped a short distance away from the home where Barnes and Terrell assisted Busch in loading the stolen motorcycle into the bed of the truck. All four defendants then left the scene together. Police later found Hedgecock’s truck burning in a ravine near Carlsbad, New Mexico. Law enforcement later recovered the stolen motorcycle from a property shared by Barnes and Terrell.
A criminal complaint is only an accusation. All defendants are presumed innocent until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case in conjunction with the New Mexico State Police, Eddy County Sheriff’s Office, and the Loving Police Department. Assistant U.S. Attorneys Maria Armijo and Ry Ellison are prosecuting the case.
Former postal employee sentenced to prison for drug trafficking, mail theftRead the Press Release
COLUMBUS, Ohio – Laquise O. Johnson, 31, of Columbus was sentenced to 36 months in prison for receiving shipments of marijuana and methamphetamine from California at a post office box he rented where he worked and for stealing items from the mail.
According to court documents, Postal Inspectors began investigating reports of drug trafficking between Ohio and California in 2017. They determined that Johnson, a processing clerk, had rented a post office box to facilitate the drug trafficking. They seized one parcel containing 1,438 grams of methamphetamine and seized another parcel with 493 grams of marijuana from Johnson after he retrieved it from the post office box at the Oakland Park post office.
Johnson also admitted that he had stolen mail containing a Bluetooth speaker and art supplies.
Johnson pleaded guilty on June 5, 2019 to one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and one count of theft of mail.
David M. DeVillers, United States Attorney for the Southern District of Ohio; and James Giehl, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division announced the sentence imposed today by Senior U.S. District Court Judge James L Graham. Special Agents with the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, also participated in this investigation. Assistant United States Attorney Jonathan J.C. Grey represented the United States in this case.
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Former U.S. Marine and Registered Sex Offender to Serve 29 Years in Prison for Child Sex OffensesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Joshua Eugene Burton (34, Arnold, Missouri) to 25 years in federal prison for enticing and coercing a minor to engage in sexually explicit activity, and for being a registered sex offender who committed another sex offense involving a minor. Burton is currently serving a 10 year federal prison sentence for related charges stemming from the Eastern District of Missouri. Today, the court ordered that part of Burton’s 25 year sentence run consecutive to his Missouri conviction; thereby effectively ordering Burton to serve at least 29 years in federal prison.
Burton had pleaded guilty on March 3, 2020.
According to court documents, in September and October 2016, Burton portrayed himself as a teenage girl from California and engaged in sexually explicit online conversations with a 14-year-old child ("Victim 1"). During his conversations, Burton persuaded, induced, enticed, and coerced Victim 1 to produce and distribute sexually explicit images and videos of herself. Burton also coerced Victim 1 into performing oral sex on a 16-year-old child ("Victim 2") by threatening to publicly post to the internet the photos and sexually explicit videos Victim 1 had previously sent to Burton, if Victim 1 did not produce the sexually explicit material and send it to him. In order to add more credibility to his threat, Burton specifically referenced the schools that Victim 1 and Victim 2 attended. Victim 1 sent Burton approximately 10 sexually explicit videos depicting Victims 1 and 2, and over 20 sexually explicit photographs to Burton.
The FBI obtained a search warrant for Burton’s residence in Arnold, Missouri. Upon their arrival, Burton refused to open the door and announced that he was armed with a firearm. Burton then barricaded himself inside his bedroom and engaged in a 12-hour armed standoff with law enforcement officers. Eventually, the FBI took Burton into custody. During a search of his residence, agents located and seized multiple electronic devices. A forensic analysis of his devices revealed that Burton had been in possession of child pornography and had deleted evidence of his communications with Victim 1 from his device. Burton pleaded guilty to being a felon in possession of a firearm and possession of child pornography in the Eastern District of Missouri and was sentenced to 10 years in federal prison.
Burton is a former U.S. Marine who was convicted of distribution and possession of child pornography in 2008 during the time he served in the United States Marine Corps. As part of his conviction, Burton was required to register as a sex offender and was dishonorably discharged from the Marine Corps.
“The facts of this case are despicable and heart wrenching,” said Michael McPherson, Special Agent in Charge, FBI-Tampa Field Division. “Mr. Burton threatened and blackmailed his young victim into committing the unthinkable. These investigations are tough to work and I am proud of the dedicated special agents who do the job so that we have a safer community in which to raise our children.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Candace Garcia Rich.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Milwaukee County Register of Deeds Charged with Wire FraudRead the Press Release
United States Attorney Matthew D. Krueger announced that, on June 25, 2020, he issued a one-count information charging John La Fave (age: 70) with wire fraud in violation of Title 18, United States Code, Section 1343, and that La Fave has entered into an agreement to plead guilty to the charge.
According to the information, La Fave, who was the Milwaukee County Register of Deeds, devised and executed a scheme to defraud Milwaukee County and to obtain money by means of materially false and fraudulent pretenses and representations. The scheme concerned La Fave’s dealings with “Individual A,” who worked for “Business A,” a company that provided redacting and document indexing services for Milwaukee County. The essence of the scheme was that La Fave directed Individual A to create fraudulent invoices that made it appear that Business A had done specified work for the Milwaukee County Register of Deeds Office when, as La Fave knew, Business A had not actually performed that work. As alleged, Business A would hold the money “on account” for La Fave to direct to be paid to other, third-party vendors who actually performed the work. Most of those third-party vendors were not authorized to be paid through the Milwaukee County accounts payable process, and some were employees of the Milwaukee County Register of Deeds Office.
United States Attorney Krueger commented, “My office will not hesitate to prosecute public officials who abuse their positions of trust.”
If convicted, La Fave faces a maximum of 20 years of imprisonment, a maximum fine of $250,000, and up to three years of supervised release.
The Federal Bureau of Investigation, the Milwaukee County District Attorney’s Office, and the Office of the Comptroller-Milwaukee County Audit Services Division investigated the case. It will be prosecuted by Assistant United States Attorneys Greg Haanstad and William Lipscomb.
An information is only a charging document, and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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Former Lawyer and CPA Charged with Defrauding Elderly InvestorsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Phillip Roy Wasserman (63, Sarasota) and Kenneth Murry Rossman (62, Bradenton) with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. If convicted on all counts, Wasserman and Rossman each face a maximum penalty of 20 years on each of the six counts charged in the indictment. The indictment also notifies the defendants that the United States is seeking a money judgment of at least $6.3 million, the proceeds of the charged criminal conduct.
According to the
indictment , Wasserman, a former lawyer and licensed insurance agent, and Rossman, a Florida certified public accountant and licensed insurance agent, made false and fraudulent misrepresentations and concealed material information in order to convince elderly victim-investors to put their money into Wasserman’s new insurance venture, “FastLife.” Some victims were persuaded to liquidate traditional investments, such as annuities, and/or to borrow funds against existing life insurance policies to generate cash to invest in the venture. These victims were not told about surrender fees and other costs associated with the liquidations and, Rossman prepared income tax returns for victim-investors in a manner designed to conceal negative personal tax consequences that resulted from the liquidations from both the victim-investors and the Internal Revenue Service. Wasserman paid Rossman a percentage of the victim-investors’ money as compensation for his role in the conspiracy. Wasserman also used victim-investors’ money to make payments to earlier victim-investors in the FastLife venture, as well to as victim-investors in his earlier hedge fund and real estate fund ventures. Wasserman spent a significant amount of the victim-investors’ money to finance a lavish lifestyle that included luxury residences, high-end vehicles, jet skis, jewelry, entertainment, gambling, retail shopping, home improvements, personal insurance, and many other expenses for his personal benefit and the benefit of family members.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Florida Office of Financial Regulation. It will be prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Florida Man Sentenced to 60 Months in Prison Following Federal Drug and Gun ConvictionsRead the Press Release
Montgomery, Alabama – On Thursday, June 25, 2020, Bobby Turner, a 64-year-old man from Navarre, Florida, was sentenced to 60 months in prison after pleading guilty to federal drug and gun charges, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, Turner will be on supervised release for two years. There is no parole in the federal system.
According to court documents, the River Falls Police Department and numerous other law enforcement agencies were conducting a road-safety checkpoint on the evening of March 16, 2018 due to increased beach traffic through the area. Turner was traveling from Florida when he encountered the checkpoint on Alabama Highway 55 North in Covington County. When an officer approached his vehicle to check Turner’s license, registration, and insurance documents, he detected the smell of marijuana. While searching the vehicle, law enforcement found nearly ten pounds of marijuana and two handguns. On April 17, 2019, Turner was indicted by a federal grand jury for possession of marijuana with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. He pleaded guilty to both charges on March 18, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the River Falls Police Department, the Covington County Sheriff’s Office, and the Alabama Law Enforcement Agency (ALEA) investigated this case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorney Kevin Davidson prosecuted the case.
Five convicted for conspiring to transport stolen firearmsRead the Press Release
BRUNSWICK, GA: Five Floridians are each facing substantial federal prison sentences after admitting they brought stolen firearms into south Georgia.
Cleveland Williams Jr., 58; Demetris Williams, 26, Julius Williams, 31, Isaiah Hicks, 65, and Megan Robinson, 27, all of Leesburg, Florida, each pled guilty in U.S. District Court to Conspiracy to Transport Stolen Firearms, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to five years in prison, followed by a period of supervised release.
There is no parole in the federal system.
“Citizens of the Southern District rightfully deserve law enforcement to cooperatively target violent offenders through state, local, and federal partnerships,” said U.S. Attorney Christine. “I commend our state and local agencies and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their tremendous efforts to make our district safer.”
According to evidence presented, on the afternoon of June 16, 2018, the co-conspirators shared an unlawful plan to obtain and possess multiple stolen firearms, including a Bersa Thunder .380-caliber semi-automatic pistol and a Mossberg Model 930 12-guage shotgun. The group then brought the firearms from Lakeland County, Florida, to Wayne, Brantley, and Charlton counties in Georgia.
The case is one of many developed through the Prosecutor-to-Prosecutor Program (P3) established by U.S. Attorney Christine. P3’s mission is to create a mechanism by which state and federal prosecutors share case information to determine if federal prosecution is appropriate due to complex or novel issues.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Jesup Police Department, the Folkston Police Department, the Charlton County Sheriff’s Department and the Georgia State Patrol. The case is being prosecuted for the United States by Assistant United States Attorneys John Harper and Joshua Bearden.
Five Bay Area Residents Indicted for Burglarizing Vacaville Gun Store to Steal Guns During the Height of Recent Civil UnrestRead the Press Release
SACRAMENTO, Calif. — Five individuals were indicted Thursday for the burglary of a Vacaville gun shop, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 1, police responded to reports of suspicious activity at Guns, Fishing and Other Stuff, a two-story gun and outdoor recreation store in Vacaville. Guns, Fishing and Other Stuff is a federally licensed firearms dealer. When officers responded, four vehicles fled the scene. After a high-speed chase on Interstate 80 during which vehicles reached over 100 miles per hour, one vehicle, a rented minivan, was stopped, and its five passengers were arrested after a foot pursuit. In total, the gun store reported that over 70 firearms had been stolen.
According to the criminal complaint, inside the minivan were bolt cutters, a power saw, and 13 handguns with price tags from Guns, Fishing and Other Stuff still attached. Donte Marcel Anderson, 31, of Antioch; Desteny Estrella Leilani Salazar, 22, of San Francisco; Donley Thompson, 27, of Pinole; Tracy Whitfield, 31, of Pittsburg; and Adrian Oscar Duran, 23, of San Francisco, were arrested. They are charged with possession of a stolen firearm and burglary of a federally licensed firearms dealer.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Vacaville Police Department, Fairfield Police Department, Antioch Police Department, Vallejo Police Department, and California Department of Justice – Bureau of Firearms. Assistant U.S. Attorneys Justin L. Lee and Brian A. Fogerty are prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for both 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Felon Who Discharged a Shotgun Receives More than Two Years in PrisonRead the Press Release
A man who discharged a shotgun during a dispute was sentenced today to more than two years in federal prison.
Timothy Rabineau, age 45, from Oxford Junction, Iowa, received the prison term after an October 25, 2019 guilty plea to possession of a firearm by a felon.
Evidence during the case showed that Rabineau was involved in a dispute with another individual. That individual drove by Rabineau’s home in Oxford Junction to continue the argument. When the individual drove by, Rabineau got a shotgun from his home and discharged it once in the air as the individual drove by. Rabineau was a felon, having previously been convicted of possession of stolen property in 2001 and third degree burglary in 2001.
Rabineau was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rabineau was sentenced to 28 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.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: [list partners here]. For more information about Project Guardian, please see /media/1122011/dl?inline.
Rabineau is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Jones County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0102.
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Federal, State, and Local Law Enforcement Officials Will Hold News Conference Today at 10:30 A.M. to Announce Charges in Significant Gang InvestigationRead the Press Release
U.S. Attorney John R. Lausch, Jr., Chicago Police Superintendent David Brown, ATF Chicago Special Agent-in-Charge Kristen deTineo, DEA Chicago Special Agent-in-Charge Robert J. Bell, IRS-CI Special Agent-in-Charge Kathy A. Enstrom, and Chicago HIDTA Executive Director Nicholas Roti will hold a news conference today to announce charges in a significant gang investigation.
The news conference will begin at 10:30 a.m. It will be held outdoors at Quincy Plaza, the east courtyard of the Dirksen Federal Building, 219 S. Dearborn Street, Chicago IL 60604. Media members will enter the building on Dearborn, proceed through security, and enter the enclosed courtyard.
Media credentials and masks will be required to access the news conference. Social distancing will be required during the conference
WHO: John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, Kristen deTineo, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration; Kathy A. Enstrom, Special Agent in Charge of the Internal Revenue Service Criminal Investigation; David Brown, Superintendent of the Chicago Police Department, and Nicholas Roti, Executive Director of Chicago HIDTA.
WHAT: The officials will announce charges against multiple defendants in a joint federal, state, and local gang investigation.
WHERE: Quincy Plaza, 219 S. Dearborn Street, Chicago IL 60604
Media credentials and masks will be required to access the news conference.
WHEN: Friday, June 26, 2020, 10:30 A.M.
CONTACT: U.S. Attorney’s Office - Public Information Office
Email: [email protected]
Phone: (312) 371-3191
Federal Inmate Indicted on Charges of Attempting to Make Threats Against Federal AgentsRead the Press Release
BOSTON – An inmate at the Federal Medical Center (FMC) Devens was indicted yesterday in connection with attempting to make threats against federal agents and to cause an explosion at a federal courthouse.
Nathan Danforth, 34, was indicted on one count of making threats to murder federal law enforcement officers and one count of threats to damage or destroy a building using fire or explosive. Danforth will appear in federal court in Worcester at a later date.
According to the charging documents, in July 2019, Danforth allegedly attempted to mail a letter from FMC Devens to a federal court in Florida, threatening to kill the agents who previously investigated him and to cause an explosion at the courthouse. In February 2020, Danforth allegedly sent an email to the Department of Justice Office of Inspector General threatening that the President would die and federal buildings would be “blown up.”
Each charge provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. FMC Devens Special Investigation Section provided valuable assistance to the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ensley Man Sentenced for Carjacking and Firearm ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced an Ensley man today for carjacking and possession of a firearm during a crime of violence that occurred in Birmingham, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Acting Special Agent in Charge Frank Haera.
U.S. District Judge Corey Maze sentenced Darise Cortez Austin, 29, of Ensley, to 144 months in prison for carjacking and possession of a firearm during of a crime of violence. Austin pled guilty in February.
“This sentence is another great example of our office and law enforcement partners working together to remove another violent criminal from our communities,” Town said. “Violent criminals who plague our streets will continue to be targets for federal prosecution where the debt to society is full price. No discounts. No parole.”
ATF Acting Special Agent in Charge, Frank Haera stated, “Removing the criminal element that uses a firearm to facilitate violent crimes such as carjacking is a priority of ATF. This joint collaboration of our local, state and federal partners as part of DOJ’s national strategy “Project Guardian” aided in one less gun on the streets. This focused investigation will have a lasting impact within this community.”
According to the plea agreement, Austin, while armed with a firearm, approached a Birmingham victim outside of the victim’s apartment. While pointing the firearm at the victim, Austin took the victim’s keys, wallet, and a Taurus .357 caliber pistol. Austin then stole the victim’s 2007 Nissan Altima and left the residence. Austin used the victim’s debit card at several different places, then attempted to elude an Alabama State Trooper in Lawrence County, Alabama. While eluding the Alabama State Trooper at 102 mph, Austin wrecked the vehicle and law enforcement detained and arrested him.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
ATF investigated the case along with the Birmingham Police Department, and ALEA. Assistant U.S Attorney Kristy Peoples prosecuted 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.
Edmond Man Pleads Guilty to Smuggling Firearms to the Middle EastRead the Press Release
OKLAHOMA CITY – RANDY LEW WILLIAMS, 57, of Edmond, Oklahoma, entered a guilty plea to illegally shipping firearms to the Middle East and two other firearms violations, announced U.S. Attorney Timothy J. Downing.
On June 1, 2020, an Information was filed that charged Williams with violating the Arms Export Control Act, making a false statement to a firearms dealer, and possession of an unregistered firearm. According to an affidavit filed in support of a criminal complaint filed on March 3, 2020, the Federal Bureau of Investigation (FBI) Legal Attaché in Abu Dhabi, United Arab Emirates (UAE) notified the FBI Oklahoma City Field Office that a FedEx shipment had been seized in Dubai, UAE, on December 19, 2018. The shipment contained multiple Glock pistols and firearms parts, and shipment records indicated the shipment was sent from Williams, at an address in Oklahoma City. Records also indicated the shipment contained tools and that the intended recipient was located in Sulaymaniyah, Iraq. FBI authorities later learned that between January 2018 and October 2018, Williams received approximately $12,761.00 in wire transfers from Sweden. Williams did not have a Federal Firearms License (FFL) from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) or authority from the Department of Defense to export defense articles (i.e., weapons) outside the United States.
Williams was also charged with knowingly making a false and fictitious statement to a firearms dealer in connection to his acquisition of three Glock pistols and two Glock pistol frames and was in possession of a 5.56 caliber rifle that had a barrel of less than 16 inches.
Today, Williams pleaded guilty to all three counts charged in the Information. At sentencing, Williams faces up to twenty years in prison for the Arms Export Control Act violation and up to ten years in prison on each of the other two counts. Sentencing will take place in approximately ninety days.
This case is a result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives Dallas Field Division, and the U.S. Department of Homeland Security Investigations, with assistance from the U.S. Customs and Border Patrol, the U.S. Department of State, the U.S. Postal Inspection Service, the Oklahoma City Police Department, and the Edmond Police Department. Assistant U.S. Attorneys Matt Dillon and Mark Stoneman prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Eastern Iowa Nurse Sentenced to Federal Prison for Stealing Patient’s Pain MedicationRead the Press Release
An intensive care unit nurse who stole fentanyl and morphine, both pain medications, from an unconscious patient by withdrawing the drugs from his IV line while he was in the hospital’s intensive care unit in December 2018 was sentenced today to more than @ years in federal prison.
Kelly Kristin Postel, age 43, from Anamosa, Iowa, received the prison term after a February 4, 2020 guilty plea to two counts of acquiring morphine and fentanyl on multiple occasions from October 2018 through December 2018.
In a plea agreement, Postel admitted that between October 2018 and December 2018, she obtained fentanyl and morphine by getting an excess amount of those pain meds from the hospital pharmacy and administering only the prescribed amount of medication to patients. She then used the rest of the pain medication while she was still working as a registered nurse caring for patients in the hospital. Postel also admitted that, on December 10, 2018, she was caring for patients in the intensive care unit at a Cedar Rapids, Iowa, hospital. On that day she went into an unconscious patient’s room, used a syringe to remove fentanyl and another drug from the patient’s IV line, and then used the substances in the employee restroom at the hospital while she was still on duty. Postel admitted she was impaired in her judgment and in being able to do routine nursing tasks after taking the pain medications, even though she was still caring for patients.
Postel was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Postel was sentenced to 4 months’ imprisonment and fined $5500. She was ordered to pay restitution for the drugs she stole, costs of prosecution and forfeit her nursing license. She must also serve a 1-year term of supervised release after the prison term. There is no parole in the federal system.
“Health care providers who steal drugs from the patients they care for place those patients and the medical system at risk. This office always stands ready to protect those who are unlawfully exploited by others,” said United States Attorney Peter E. Deegan, Jr. “We especially thank the Food and Drug Administration Office of Criminal Investigations and the Iowa Medicaid Fraud Control Unit for their outstanding work investigating this case.”
“Health care professionals who steal needed medications from patients put patients at increased risk of harm and disrupt the legal drug supply chain,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
Postel was released on the conditions previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by the Medicaid Fraud Control Unit of the Iowa Department of Inspections and Appeals and the United States Food and Drug Administration Office of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00132.
Follow us on Twitter @USAO_NDIA.
East Stroudsburg Man Sentenced for Heroin TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Robert D. Mariani sentenced Raheem Marrow, age 48, of East Stroudsburg, Pennsylvania, to 75 months’ imprisonment and a six-year term of supervised release for heroin trafficking.
According to United States Attorney David J. Freed, Marrow pleaded guilty to distributing and possessing with the intent to distribute heroin within 1,000 feet of a protected location. Marrow sold heroin to an informant on four occasions between June 2016 and March 2017 within 1,000 feet of a school or playground. A warranted search of Marrow’s residence yielded heroin, packaging materials, and a .22 caliber handgun. Marrow took responsibility for the heroin and firearm, and admitted to his criminal conduct.
The case was investigated by the U.S. Federal Bureau of Investigation (FBI) and the Stroud Regional Police Department, and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Department of Justice Applauds Congressional Passage of Reauthorization of the Antitrust Criminal Penalty Enhancement and Reform ActRead the Press Release
On June 25, the U.S. House of Representatives and Senate passed identical bills, H.R. 7036 and S. 3377, to repeal the sunset provision of the Antitrust Criminal Penalty Enhancement and Reform Act (ACPERA).
“We applaud both Houses of Congress for their bipartisan action and recognition of ACPERA’s importance in the fight to safeguard our free markets and protect American consumers from collusion,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division wholeheartedly agrees with Congress’s findings that ‘[c]onspiracies among competitors to fix prices, rig bids, and allocate markets are categorically and irredeemably anticompetitive and contravene the competition policy of the United States.’”
“The Division is firmly committed to the Leniency Program, which has been our most important prosecutorial tool for the last 26 years, particularly when it comes to international cartels,” said Antitrust Division Deputy Assistant Attorney General for Criminal Enforcement Richard A. Powers. “Because of yesterday’s reauthorization, ACPERA’s incentives to self-report, seek leniency, and cooperate with our investigations will continue to assist the Division’s mission of deterring, detecting, and prosecuting cartel offenses.”
Congress enacted ACPERA in 2004 in part to provide greater incentives for corporations to self-report and cooperate pursuant to the Antitrust Division’s Corporate Leniency Policy. Since 2004, ACPERA’s provisions have substantially strengthened the Antitrust Division’s ability to detect and prosecute anticompetitive cartel activity through the Leniency Program.
From Fiscal Year 2010 to 2019, the Antitrust Division’s criminal prosecutions have resulted in over $9 billion in criminal fines and penalties, along with jail terms for more than 250 individuals. Since the fall of 2019 alone, the Division obtained three criminal fines and penalties at or above the Sherman Act’s $100 million statutory maximum, and prosecuted antitrust violations affecting generic drugs, cancer patients, grocery store staples, financial markets.
If the legislation is signed by the President, ACPERA will continue to mitigate a successful leniency applicant’s civil damages exposure from treble damages to actual damages if the company provides civil plaintiffs with timely and satisfactory cooperation. While treble damages liability can be an important deterrent for engaging in anti-competitive behavior, civil exposure also can deter self-reporting of criminal wrongdoing. Therefore, the Department supports the reauthorization of ACPERA and the repeal of its sunset provision.
Denison, Iowa Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on June 25, 2020, to more than 10 years in federal prison.
Juan Lopez-Zuniga, 50, from Denison, Iowa, was convicted by a jury on February 7, 2020, after a 3 day trial in federal court, of conspiracy to distribute methamphetamine. The verdict was returned following about 3 hours of jury deliberations.
The evidence at trial showed that Lopez-Zuniga was involved in a conspiracy that distributed more than 500 grams of methamphetamine from October 2015 through September 2016, from the Denison, Iowa, area. Evidence showed that Lopez-Zuniga conducted runs from Denison, Iowa, to Worthington, Minnesota, delivering half-pound quantities of methamphetamine to a co-conspirator for further re-distribution in Iowa, Minnesota and South Dakota. Lopez-Zuniga would then return to Denison with the proceeds of drug sales.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Lopez-Zuniga was sentenced to 127 months’ imprisonment. He must also serve a 5 year term of supervised release following the imprisonment. There is no parole in the federal system. Lopez-Zuniga is being held in the custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration; Iowa Department of Narcotics Enforcement; Minnesota Bureau of Criminal Apprehension; South Dakota Division of Criminal Investigation; Buffalo Ridge Task Force (Worthington/ Nobles County, Minnesota); and the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4009. Follow us on Twitter @USAO_NDIA.
Convicted Felon in Possession of Firearm Sentenced to Federal PrisonRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Deonte Turner, 28, Fitchburg, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 37 months in prison for unlawfully possessing a loaded firearm as a felon. Turner pleaded guilty to this charge on December 27, 2019.
Turner was arrested in possession of a loaded Glock .45 caliber handgun on August 19, 2019. Turner was outside of a local hotel with a drug dealer, whom police were looking to arrest. Turner’s gun was in his duffle bag. In 2014, Turner was convicted of felony armed robbery. In 2017, he was convicted of felony bail jumping. Finally, in 2018, he was convicted of felony possession of THC (2nd + offense).
Based on Turner’s criminal history and his offense conduct, the federal sentencing guidelines recommended a range of imprisonment of 37 to 46 months. All of Turner’s felony convictions were in Dane County, and the longest sentence he has previously served was 10 months. As a result, Turner requested a sentence of 12 months and 1 day.
Judge Peterson rejected Turner’s request, recognizing that Madison and surrounding communities are experiencing an uptick in gun violence and that possession of a loaded firearm presents “a very real danger.” Judge Peterson also stated that a loaded gun is “like a bomb waiting to go off.”
The charge against Turner was the result of an investigation conducted by the Dane County Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Convicted Felon Sentenced to 63 Months in Prison for Possessing Stolen FirearmRead the Press Release
St. Louis, Missouri – Altonio Steeples, 37, of St. Louis, Missouri, was sentenced to 63 months in prison for being a felon in possession of a firearm. He appeared in federal court today before U.S. District Judge Stephen R. Clark.
According to the plea agreement, on June 23, 2019, St. Louis Metropolitan Police Department Officers responded to a reported disturbance in the 5800 block of Lotus. When Officers arrived, they observed Steeples and an unidentified male standing outside of a Nissan sedan. Upon seeing the marked police vehicle, Steeples and the unidentified male left the Nissan engine running, ran to a nearby porch and began knocking on the door. As Officers exited their patrol car to approach the two men on the porch, both men ran from Officers down a gangway.
While Steeples was running, a chasing Officer observed him reach into his waistband and remove a firearm. The Officer commanded Steeples to drop the firearm. Steeples then threw the firearm down in the gangway and continued to run. The Officer eventually took Steeples into custody and recovered the loaded Springfield Armory .45 caliber semiautomatic firearm Steeples had thrown while fleeing. The Springfield Armory firearm had been reported stolen, and Steeples was serving a term of supervised release for a prior federal felony conviction at the time of arrest.
The St. Louis Metropolitan Police Department investigated this case.
Collin County Man Indicted for Theft of Covid Economic Impact PaymentsRead the Press Release
SHERMAN, Texas – A 50-year-old Plano, Texas man has been indicted and charged with federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
James Mwanza was indicted by a federal grand jury on June 18, 2020 and charged with wire fraud, theft of government money, and aggravated identity theft. Mwanza went before U.S. Magistrate Judge Christine A. Nowak today for an initial appearance.
According to information presented in court, from at least January 2020 through April 2020, Mwanza, claiming to be a tax preparer, allegedly prepared and filed fraudulent income tax returns with the IRS. To do so, he unlawfully obtained the personal identification information of other individuals, including names, birth dates, and Social Security numbers. Mwanza used Electronic Filing Numbers assigned to other tax preparation firms who were not affiliated with him, to file the returns and claim false tax refunds. The filing of the false returns also triggered payment of Economic Impact Payments (EIPs) provided for under the CARES Act.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for Economic Impact Payments (EIPs).
Under the CARES Act, qualifying individuals may receive up to $1,200 in EIPs per adult, up to $2,400 for married couples filing jointly, and $500 per child under 17 years old. Individuals with income exceeding $99,000 or joint filers whose income exceeds $198,000 do not qualify for any payment.
“Fraudsters engaged in identity theft to steal taxpayer refunds have now turned their attention to stealing Economic Impact Payments,” said U.S. Attorney Stephen J. Cox. “The Eastern District of Texas is working with our law enforcement partners to utilize all available tools to ensure that government payments get to the taxpayers who need this economic relief.”
“The Treasury Inspector General for Tax Administration remains committed to investigating and pursuing attempts to corruptly interfere with Federal tax administration, including tax preparer misconduct involving the theft of tax refunds and Economic Impact Payments,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the hard work of our law enforcement partners in this investigation.”
“IRS Criminal Investigation has seen a variety of Economic Impact Payment scams and other financial schemes looking to take advantage of unsuspecting taxpayers,” said IRS Criminal Investigation Special Agent in Charge Tamera Cantu of the Dallas Field Office. “IRS Criminal Investigation is dedicated to working with our law enforcement partners and the U.S. Attorney’s Office to combat fraud schemes that harm innocent taxpayers.”
If convicted, Mwanza faces up to 20 years in federal prison. A grand jury indictment is not evidence of guilt.
This case is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) and the Internal Revenue Service-Criminal Investigations and prosecuted by Assistant U.S. Attorney Frank Coan.
Chinese Citizen Convicted of Economic Espionage, Theft of Trade Secrets, and ConspiracyRead the Press Release
Hao Zhang, 41, of China, was found guilty of economic espionage, theft of trade secrets, and conspiring to commit both offenses today, announced the Department of Justice. The ruling was handed down by the Honorable Edward J. Davila, U.S. District Judge, following a four-day bench trial.
Evidence submitted during the course of the trial demonstrated that from 2010 to 2015, Zhang conspired to and did steal trade secrets from two companies: Avago, a designer, developer, and global supplier of a broad range of analog, digital, mixed signal and optoelectronics components and subsystems with a focus in semiconductor design and processing, headquartered in San Jose, California, and Singapore; and Skyworks, an innovator of high performance analog semiconductors headquartered in Woburn, Massachusetts. Judge Davila found that Zhang intended to steal the trade secrets for the benefit of the People’s Republic of China
“The defendant plotted with Tianjin University to take trade secrets from two U.S. companies, including his own employer, to China for the benefit of the Chinese Government,” said Assistant Attorney General for National Security John C. Demers. “Today’s guilty verdict on all counts is an important step in holding accountable an individual who robbed his U.S. employer of trade secrets and sought to replicate the company’s technology and replace its market share. The Department of Justice’s commitment to prosecuting these cases should serve as a cautionary tale to anyone considering doing the same.”
“A free nation is naturally innovative. No nation is more innovative than the United States. Countries without freedom cannot match our innovation, and inevitably must resort to theft. Theft is not innovation. By combatting theft, we protect innovation and freedom,” said U.S. Attorney David L. Anderson for the Northern District of California.
“Economic Espionage is a pervasive threat throughout the United States, particularly to the San Francisco Bay Area and Silicon Valley which is the center of innovation and technology,” said FBI Special Agent in Charge John F. Bennett. “While this case exemplifies how easily a few motivated employees can conspire to misappropriate intellectual property for the benefit of the People’s Republic of China, Zhang’s conviction should serve as a warning to our adversaries that the FBI and our partners remain committed to aggressively investigating and prosecuting these crimes.”
According evidence presented during the bench trial, Zhang stole trade secrets relating the performance of wireless devices. Specifically, Surface Acoustic Wave (SAW) and Bulk Acoustic Wave (BAW) filters are used in wireless devices to eliminate interference and improve other aspects of device performance. Film Bulk Acoustic Resonators (FBAR) are one type of BAW filter. The most common and most profitable application of FBAR technology is as a radio frequency (RF) filter for mobile phones and other wireless devices. Technological advances in FBARs have played a substantial role in creating smaller, more efficient wireless devices for both consumer and military applications. Avago, one of the victims of Zhang’s theft, was the leading company in the United States manufacturing and selling FBARs. Zhang’s other victim, Skyworks, was developing its own BAW technology.
Evidence at trial further showed that in October 2006, Zhang and his co-conspirators started a business in China to compete with Avago and Skyworks. One of Zhang’s co-conspirators, Wei Pang, started working at Avago at the same time. Zhang and Pang illicitly shared trade secrets with each other and with co-conspirators in China while they worked for the U.S. companies. Zhang and Pang then connected their venture to Tianjin University (TJU) in China, an instrumentality of the Chinese government. By 2009, they left their work in the United States to relocate to China, following a plan laid out by TJU officials to form another company, Novana, in the Cayman Islands. Along the way, Zhang obtained patents in his own name using trade secret information he knew was stolen from Avago. Zhang also worked with stolen trade secrets in a lab he founded at TJU while developing his new FBAR business. The FBAR processes that Zhang and his co-conspirators stole took Avago over twenty years of research and development to build. Additional evidence during the bench trial demonstrated that Zhang engaged in economic espionage to help TJU and Zhang’s Chinese company unfairly compete in the multi-billion dollar global market for cell phone RF filters.
Zhang was charged in a superseding indictment returned by a federal grand jury on April 1, 2015.
Zhang is currently released on a $500,000 secured bond.
Zhang’s sentencing hearing is scheduled for Aug. 31, 2020, before Judge Davila in San San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1831 is 15 years in custody and a fine of $250,000, plus restitution if appropriate. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1832 is 10 years in custody and a fine of $250,000, plus restitution if appropriate. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Michelle J. Kane and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rebecca Shelton, Susan Kreider, and Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Chinese Citizen Convicted of Economic Espionage, Theft of Trade Secrets, and ConspiracyRead the Press Release
SAN JOSE – Hao Zhang, 41, of China, was found guilty of economic espionage, theft of trade secrets, and conspiring to commit both offenses today, announced the Department of Justice. The ruling was handed down by the Honorable Edward J. Davila, U.S. District Judge, following a four-day bench trial.
Evidence submitted during the course of the trial demonstrated that from 2010 to 2015, Zhang conspired to and did steal trade secrets from two companies: Avago, a designer, developer, and global supplier of a broad range of analog, digital, mixed signal and optoelectronics components and subsystems with a focus in semiconductor design and processing, headquartered in San Jose, California, and Singapore; and Skyworks, an innovator of high performance analog semiconductors headquartered in Woburn, Massachusetts. Judge Davila found that Zhang intended to steal the trade secrets for the benefit of the People’s Republic of China
“A free nation is naturally innovative. No nation is more innovative than the United States. Countries without freedom cannot match our innovation, and inevitably must resort to theft. Theft is not innovation. By combatting theft, we protect innovation and freedom,” said U.S. Attorney David L. Anderson for the Northern District of California.
“The defendant plotted with Tianjin University to take trade secrets from two U.S. companies, including his own employer, to China for the benefit of the Chinese Government,” said Assistant Attorney General for National Security John C. Demers. “Today’s guilty verdict on all counts is an important step in holding accountable an individual who robbed his U.S. employer of trade secrets and sought to replicate the company’s technology and replace its market share. The Department of Justice’s commitment to prosecuting these cases should serve as a cautionary tale to anyone considering doing the same.”
“Economic Espionage is a pervasive threat throughout the United States, particularly to the San Francisco Bay Area and Silicon Valley which is the center of innovation and technology,” said FBI Special Agent in Charge John F. Bennett. “While this case exemplifies how easily a few motivated employees can conspire to misappropriate intellectual property for the benefit of the People’s Republic of China, Zhang’s conviction should serve as a warning to our adversaries that the FBI and our partners remain committed to aggressively investigating and prosecuting these crimes.”
According evidence presented during the bench trial, Zhang stole trade secrets relating the performance of wireless devices. Specifically, Surface Acoustic Wave (SAW) and Bulk Acoustic Wave (BAW) filters are used in wireless devices to eliminate interference and improve other aspects of device performance. Film Bulk Acoustic Resonators (FBAR) are one type of BAW filter. The most common and most profitable application of FBAR technology is as a radio frequency (RF) filter for mobile phones and other wireless devices. Technological advances in FBARs have played a substantial role in creating smaller, more efficient wireless devices for both consumer and military applications. Avago, one of the victims of Zhang’s theft, was the leading company in the United States manufacturing and selling FBARs. Zhang’s other victim, Skyworks, was developing its own BAW technology.
Evidence at trial further showed that in October 2006, Zhang and his co-conspirators started a business in China to compete with Avago and Skyworks. One of Zhang’s co-conspirators, Wei Pang, started working at Avago at the same time. Zhang and Pang illicitly shared trade secrets with each other and with co-conspirators in China while they worked for the U.S. companies. Zhang and Pang then connected their venture to Tianjin University (TJU) in China, an instrumentality of the Chinese government. By 2009, they left their work in the United States to relocate to China, following a plan laid out by TJU officials to form another company, Novana, in the Cayman Islands. Along the way, Zhang obtained patents in his own name using trade secret information he knew was stolen from Avago. Zhang also worked with stolen trade secrets in a lab he founded at TJU while developing his new FBAR business.
The FBAR processes that Zhang and his co-conspirators stole took Avago over twenty years of research and development to build. Additional evidence during the bench trial demonstrated that Zhang engaged in economic espionage to help TJU and Zhang’s Chinese company unfairly compete in the multi-billion dollar global market for cell phone RF filters.
Zhang was charged in a superseding indictment returned by a federal grand jury on April 1, 2015.
Zhang is currently released on a $500,000 secured bond.
Zhang’s sentencing hearing is scheduled for Aug. 31, 2020, before Judge Davila in San San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1831 is 15 years in custody and a fine of $250,000, plus restitution if appropriate. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1832 is 10 years in custody and a fine of $250,000, plus restitution if appropriate. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Michelle J. Kane and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rebecca Shelton, Susan Kreider, and Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Chinese Businesswoman Sentenced to 37 Months in Federal Prison for Conspiracy to Commit Visa FraudRead the Press Release
CHICAGO — A Chinese businesswoman was sentenced today to 37 months in federal prison for conspiracy to commit visa fraud.
WEIYUN HUANG, also known as “Kelly Huang,” 30, of Beijing, China, provided false verifications of employment for foreign nationals seeking to stay in the United States on F-1 or H-1B visas. Huang previously pleaded guilty to one count of conspiracy to commit visa fraud. U.S. District Court Judge Thomas M. Durkin on Friday imposed the prison sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and James M. Gibbons, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The government is represented by Assistant U.S. Attorney Shoba Pillay.
An F-1 visa permitted a foreign national to study in the United States at a university or other academic institution. An F-1 visa-holder could extend the visa by participating in a program that required the student to obtain temporary employment in their area of study. An H-1B visa permitted U.S.-based employers to temporarily employ foreign nationals in specialty occupations. Foreign nationals with an H-1B visa were permitted to stay in the U.S. for three years, with the possibility of extending their stay to six years.
Huang admitted in a plea agreement that she founded two companies – FINDREAM LLC and SINOCONTECH LLC – for the purported purpose of employing foreign nationals in the United States. Huang advertised fraudulent visa-related employment with Findream on websites. In reality, in exchange for a fee, Huang and the companies provided false offer letters and verification of employment letters as purported evidence of employment, knowing the customers did not work at Findream or Sinocontech. Huang also completed, signed, and certified immigration forms detailing the customers’ purported work at the companies. For customers who sought proof of payroll, the customer had to provide the payroll funds to Huang, and Huang then caused direct deposits, falsely purporting to be payroll payments, from Findream’s bank accounts to be deposited in the customers’ bank accounts, and issued Form 1099-MISC tax forms documenting the purported salary.
The fraud scheme allowed at least approximately 2,693 customers to list Findream or Sinocontech as their employer in order to stay in the U.S. on the visas, Huang further admitted in a plea agreement. Huang and her two companies received at least approximately $1.5 million from customers for whom they agreed to falsely certify employment.
“Immediately upon graduating from a United States-based university, defendant manufactured a scheme to defraud the United States for her own financial benefit and in direct violation of the United States immigration and criminal laws,” Assistant U.S. Attorney Shoba Pillay argued in the government’s sentencing memorandum. “Defendant took her deep understanding of the United States visa system to exploit that system for her own benefit, while creating a significant risk to the United States.”
Findream, which was incorporated in California, and Sinocontech, which was incorporated in Delaware, previously pleaded guilty to conspiracy to commit visa fraud.
Huang plea agreementCanadian woman sentenced to prison for illegally exporting American industrial pipeline & oil refinement equipmet from United States to IranRead the Press Release
COLUMBUS, Ohio – Angelica O. Preti, 45, of Ontario, Canada, was sentenced in U.S. District Court here today to 18 months in prison for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally exporting gas turbine engine parts from the United States to Iran.
According to court documents, Preti worked as the export operations manager at a Canadian forwarding and customs brokerage service provider that had significant business in the United States, including in the Southern District of Ohio.
Preti helped facilitate the shipment of U.S.-origin gas turbine engine parts and valve assemblies and connectors used for industrial pipelines in the gas and petrochemical (oil refinement) industry to Iran in deliberate violation of a U.S. embargo and trade sanctions. Iran has been subject to United States embargo sanctions since 1979.
“Preti made a calculated decision to harm the United States by supplying enemies abroad,” U.S. Attorney David M. DeVillers said. “Preti also attempted to cover up her crimes by directing the filing of false electronic export information, and attesting that the final destination of goods was not Iran. Preti also employed a number of additional methods to obscure the fact that Iran was the end-user for the shipments.”
“The U.S. is engaged in a maximum-pressure campaign to curb Iran’s malign influence in the Middle East, and we will not tolerate illegal exports to Iran that seek to undermine that effort” said Commerce Department Special Agent in Charge Nasir Khan. “We will work with our law enforcement partners and the Department of Justice to vigorously investigate and pursue prosecution of violators.”
In addition to the charged conduct, during her time as export operations manager at UE Canada Inc., the company was involved with 47 shipments exported from the United States. Of these shipments, 23 were ultimately traced as destined to Iran.
Preti is the second person charged as a result of the investigation into illegal shipment of industrial equipment of Iran. Behrooz Behroozian, who owned and operated Comtech International in Dublin, Ohio, was sentenced in October 2019 to serve 20 months in prison for his crimes.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General of the Department of Justice’s National Security Division; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by Senior U.S. District Court Judge James L Graham. Assistant United States Attorneys Douglas W. Squires and S. Courter Shimeall, as well as Senior Trial Attorney William Mackie with the Department of Justice’s National Security Division Counterintelligence and Export Control Section are representing the United States in this case.
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Brevard County Man Sentenced to Eighteen Years in Federal Prison for Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Gregory Clive Burke (57, Mims) to 18 years in federal prison for enticement of a minor to engage in sexual activity. Burke, a registered sex offender who was on state probation after a previous conviction for possession of child pornography, was indicted by a grand jury on December 20, 2018. He had pleaded guilty on November 21, 2019.
According to court documents and evidence presented at the sentencing hearing, Burke initially came to the attention of law enforcement when his state probation officer found that he was in possession of a cellphone with internet access, which was a violation of the terms of his probation. A forensic review of Burke’s cellphone revealed that he was posing as a 10-year-old girl, “Emma Dixon,” and had posted a profile on Snapchat and YouTube. In addition, the forensic review revealed that “Emma Dixon” was communicating with several 12 to 13-year-old boys and girls online.
One of the children that Burke had been communicating with was a 12-year-old boy who lived in another state. During the communications, the child sent Burke images and videos of himself, including videos of his genitalia, and videos depicting him masturbating.
“This investigation is another example of the FBI’s efforts in safeguarding children from sexual predators,” said Michael McPherson, Special Agent in Charge of the FBI-Tampa Field Office. “We share this commitment with our federal, state and local law enforcement partners so that together we can identify and rescue victims and ensure their abusers are brought to justice.”
Sheriff Wayne Ivey stated, "I applaud this partnership and the agencies involved who are devoted to protecting children from these very dangerous sexual predators. Through their outstanding efforts, an individual who actively participated in the exploitation of our children has been removed from our communities.”
This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shawn P. Napier and Ilianys Rivera Miranda.
Boise Man Sentenced to 78 Months in Federal Prison for Possession of Child PornographyRead the Press Release
BOISE – Jonathan Schmidt, 41, of Boise, was sentenced in U.S. District Court to 78 months in federal prison for possession of child pornography, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Schmidt to pay a $2,000 fine and serve 20 years of supervised release following his prison sentence. Schmidt pleaded guilty to the charge on February 21, 2020.
According to court records, between January 22 and January 26, 2019, a detective with the Idaho Internet Crimes Against Children (ICAC) Task Force downloaded several files depicting computer-generated child pornography that were made available by Schmidt’s computer via a peer-to-peer network. A federal magistrate judge issued a search warrant for Schmidt’s Boise residence. ICAC Task Force members executed the search warrant and seized a hard drive and several CDs from Schmidt’s residence. A forensic examination of these items revealed approximately 120 videos and 11 images depicting child pornography and over 500 images depicting computer-generated child pornography. Schmidt admitted to detectives that he had been viewing child pornography on and off for a couple of years and that he had child pornography on his devices. Schmidt admitted to using a peer-to-peer network to download files of child pornography and to knowing that files he downloaded from the network would be available for other users on the network to download.
Chief Judge Nye also ordered Schmidt to pay $3,000 in restitution to a victim in the images he possessed and to pay a $5,100 special assessment. As a result of his conviction, Schmidt will be required to register as a sex offender.
This case was investigated by the Idaho Internet Crimes Against Children Task Force, with assistance from the Federal Bureau of Investigation, United States Postal Inspection Service, and Boise Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Boise Man Sentenced to 6 Years for Distributing MethamphetamineRead the Press Release
BOISE - Benjamin Michael Elgethun, 34, of Boise, was sentenced in U.S. District Court to 72 months in prison for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Elgethun to serve five years of supervised release following his prison sentence. Elgethun pleaded guilty to the charge on January 29, 2020.
According to court records, Elgethun was a methamphetamine dealer in the Boise area between March and June 2019. Law enforcement used a confidential informant to purchase methamphetamine from Elgethun on multiple occasions. A federal grand jury indicted Elgethun on June 13, 2019. A search warrant was later executed on Elgethun’s residence where officers found more drugs and a stolen firearm. Elgethun has a lengthy criminal history including a prior conviction for aggravated battery and trafficking in cocaine. At the time he committed this federal offense, Elgethun was on parole.
This case was investigated by the Meridian Police Department, Ada County Sheriff’s Office, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This indictment was the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
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Baxley pharmacist sentenced to four years in federal prison for conspiracy involving healthcare fraud, opioidsRead the Press Release
BRUNSWICK, GA: A pharmacist who owned and operated Fulghum Pharmacy in Baxley, Ga. was sentenced today to 48 months in federal prison after pleading guilty to a conspiracy that involved health care fraud and illegal distribution of opioids.
Ray Ashley Dixon, R.Ph., 42, of Baxley, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to conspiracy, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition, Dixon will be on supervised release for three years following completion of his prison term.
There is no parole in the federal system.
“Pharmacists are entrusted with significant responsibility in our healthcare system,” said U.S. Attorney Christine. “Illegally distributing drugs is a major violation of that trust, and pharmacists who do so will find, like Ray Dixon, that there is no tolerance for such crimes in the Southern District.”
According to court documents and information presented during the sentencing hearing, Dixon distributed opioids, including oxycodone and hydrocodone, to several individuals without a legitimate prescription issued by a physician in the usual course of professional practice. Upon inspection by agents from the Drug Enforcement Administration, Fulghum Pharmacy could not account for more than 10,000 units controlled substances. Dixon, through his pharmacy, also was a major source of opioids for patients of notorious convicted pill-mill operator Dr. Frank Bynes, Jr., distributing in excess of 110,000 units of opioids and other controlled substances during a 15-month period.
In addition to his drug distribution, Dixon created fake prescriptions for expensive medications and then billed insurance programs, including Medicare Part D plans and Medicaid, for those medications, despite the fact that the medications were neither prescribed nor dispensed. According to information presented during the sentencing hearing, Ray Dixon’s fraud amounted to more than $1.8 million over four years, which he will be required to pay back as restitution. Ray Dixon also agreed to forfeit cash, vehicles, and investment accounts as part of his agreement with the government.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “This pharmacist spun a web of deception by illegally distributing prescriptions opioids and other controlled substances. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. This sentencing will discourage other negligent healthcare providers from engaging in unlawful criminal behavior.”
“Creating fake prescriptions for expensive medications and then fraudulently billing them to Medicare and Medicaid is an appalling act,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Today’s sentencing should act as a fair warning to anyone who might be contemplating similarly illegal conduct.”
“A primary means of addressing opioid-addiction in this country is to ensure that only those with legitimate medical needs receive such drugs in the first place,” said Georgia Attorney General Chris Carr. “Mr. Dixon ignored his important gatekeeping function and did so for his own benefit. We commend U.S. Attorney Christine’s Office and believe that the sentence Mr. Dixon received sends a strong message that this will not be tolerated.”
“Like so many other communities, Appling County has been overcome with the struggles associated with drug abuse,” said Appling County Sheriff Mark Melton. “Specifically, the illicit pill market has hit us hard, causing many of our citizens to follow a path of destruction in which they will never return. In the law enforcement arena, we expect to deal with these problems from the corrupt drug cartels and their networks. However, we never expect it to come from our professional providers such as Mr. Dixon, who became greedy and took advantage of the system and caused many to be affected and destroyed by his unacceptable behavior.”
Patients can be the first line of defense in stopping health care fraud. If you receive an Explanation of Benefits (EOB) with medications or services that you did not receive, please contact the healthcare fraud hotline maintained by the Department of Health and Human Services at 1-800-HHS-TIPS or oig.hhs.gov/fraud/report-fraud/.
Ray Dixon was investigated by a team comprised of federal, state, and local law enforcement. U.S. Attorney Christine lauded the cooperation by the investigative team, which was comprised of the Drug Enforcement Administration, the Department of Health and Human Services Office of Inspector General, the Georgia Attorney General’s Medicaid Fraud Control Unit, and the Appling County Sheriff’s Office.
Assistant U.S. Attorneys Jonathan A. Porter and J. Thomas Clarkson prosecuted Dixon, with significant assistance by Assistant U.S. Attorney Xavier A. Cunningham on asset recovery issues and Georgia Assistant Attorney General Jim Mooney on Medicaid fraud issues.
Authorities warn of fraudulent images and false information regarding face mask usageRead the Press Release
HOUSTON – The Department of Justice (DOJ) has not issued any notice or other public information regarding the use of face masks and the Americans with Disabilities Act (ADA), announced U.S. Attorney Ryan K. Patrick.
Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the ADA due to the COVID-19 pandemic. Many of these notices include use of the DOJ seal and ADA phone number.
However, DOJ did not issue and does not endorse them in any way. The public should not rely on the information contained in these postings.
The ADA does not provide a blanket exemption that relieves people with disabilities from complying with legitimate health and safety rules.
DOJ previously issued an alert regarding the fraudulent flyers. The public can visit ADA.gov or call the ADA Information Line at 800.514.0301 (voice) and 800.514.0383 (TTY) for more information.
Aurora Man Arrested on Federal Civil Disorder Charge for Allegedly Throwing an Explosive Device at A Naperville Police VehicleRead the Press Release
CHICAGO — An Aurora man was arrested today on a federal civil disorder charge for allegedly throwing an explosive or incendiary device at a Naperville Police Department vehicle during a protest earlier this month.
CHRISTIAN REA threw the explosive device in the proximity of the police vehicle, and the officers that were standing near the vehicle, which subsequently detonated causing an explosion, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Panic ensued in the crowd of protesters, with people running in all directions, the complaint states.
The complaint charges Rea, 19, with one count of civil unrest. Federal authorities arrested Rea Thursday morning. An initial federal court appearance was held on June 25, 2020, before U.S. Magistrate Judge Beth Jantz.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the Naperville Police Department, the Aurora Police Department, and the FBI Joint Terrorism Task Force. The government is represented by Assistant U.S. Attorney Barry Jonas.
“Federal law enforcement will use all tools available to hold accountable individuals who interfere with law enforcement officers performing their duties during a civil disorder,” said U.S. Attorney Lausch. “We will continue to work with our federal, state, and local partners to apprehend and charge individuals engaging in violent crime.”
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of 5 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Atlantic County Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, tax preparer was arrested today for allegedly using false information to increase her clients’ tax refunds and filing her own false tax returns, U.S. Attorney Craig Carpenito announced.
Michele Griffin, 40, of Galloway, New Jersey, is charged by indictment with 19 counts of aiding and assisting in the preparation and filing of false tax returns. Griffin is also charged with three counts of filing her own false tax returns. Griffin will be arraigned today by video conference before U.S. Magistrate Judge Joel Schneider.
According to the indictment:
Griffin allegedly prepared multiple fraudulent tax returns on behalf of her clients by falsifying their education expenses, dependent care expenses, business income, dependent information, and unemployment income. As a result, her clients’ returns requested higher tax credits and higher refunds than the clients were entitled to receive. Griffin received substantial income by preparing tax returns for others that she failed to report on her own tax returns. Griffin also included false education expenses on her own tax returns, which led her to request higher education credits and a higher refund than she was entitled to receive.
Griffin allegedly prepared 19 false tax returns on behalf of six clients for tax years 2013 through 2016 and filed three false tax returns for herself for tax years 2013 through 2015.
Each count carries a maximum penalty of three years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.