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12 June 2020
New Bedford Man Sentenced for Trafficking Crack CocaineRead the Press Release
PROVIDENCE – A New Bedford man who admitted to participating in the delivery of more than an ounce of crack cocaine in Rhode Island in February 2018 was sentenced on Thursday to 42 months in federal prison.
Chanel Williams, 41, previously admitted to the court that, following Facebook communications with an individual in Pawtucket seeking crack cocaine, he and another New Bedford man traveled to Pawtucket on February 13, 2018, to deliver the drugs. Williams admitted to the court that he remained inside the vehicle he drove to Pawtucket while Jordan Fernandes, 30, went inside a residence to deliver the drugs.
The delivery was electronically monitored by members of the FBI’s Safe Streets Violent Gang Task Force and Providence Police.
Williams pleaded guilty on December 4, 2019, to possession with intent to distribute and distribute cocaine base. At sentencing on Thursday, U.S. District Court Judge William E. Smith sentenced Williams to 42 months in federal prison to be followed by five years supervised release.
Williams’ sentence is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Providence Police Colonel Hugh T. Clements, Jr.
Jordan Fernandes, who pleaded guilty on February 3, 2020, to two counts of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base, three counts of possession with intent to distribute and distribution of 28 grams or more of cocaine base, and one count of possession with intent to distribute cocaine base, is awaiting sentencing.
The cases are being prosecuted by Assistant U.S. Attorneys Helen H. Lee and Terrence P. Donnelly.
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Moss Point Man Sentenced to 10 Years in Prison Under Project EJECT for Illegally Possessing a Sawed-Off Shotgun as a FelonRead the Press Release
Gulfport, Miss – Paul Leon Heathcoe, 53, was sentenced yesterday by U.S. District Judge Sul Ozerden to 120 months in prison for being a felon in possession of a sawed-off shotgun, announced S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorm with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On July 21, 2018, a woman arrived at the emergency room of a hospital in Jackson County and informed law enforcement that Heathcoe had assaulted her and was in possession of a sawed-off shotgun. The victim required staples to her head and told law enforcement Heathcoe kept her with threats to her children and sexually assaulted her in addition to breaking a golf club over her head.
Heathcoe is a convicted felon and therefore prohibited from legally possessing a firearm. As a result, Jackson County Sheriff’s Office deputies obtained an arrest warrant for Heathcoe and a search warrant for his residence. Upon executing the search warrant, deputies discovered a shotgun with a barrel measuring a little over 12 inches and an overall length of approximately 19 inches. Both the stock and the barrel had been cut off. Law enforcement also found a modified holster that Heathcoe used to wear the shotgun around the house, according to the victim.
At sentencing, Judge Ozerden found U.S. Sentencing Guideline enhancements for kidnapping, sexual assault and aggravated assault. Heathcoe’s guideline range exceeded 120 months, but the statutory cap for the charge was 10 years. Heathcoe was also sentenced to 3 years of post-release supervision and a $4000 fine.
The Jackson County Sheriff’s Office and the Bureau of Alcohol Tobacco and Firearms investigated the case. The case is being prosecuted by Assistant United States Attorney Annette Williams.
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.
Monona Man Sentenced to 12 Years for Child Pornography Charges & Secretly Recording MinorsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Scott T. Blood, 49, Monona, Wisconsin, was sentenced yesterday by U.S. District Judge James Peterson to 12 years in prison for receiving and possessing child pornography. This prison term will be followed by a 20-year term of supervised release. Blood pleaded guilty to these charges on March 11, 2020.
On July 30, 2019, law enforcement agents executed a search warrant at the Blood’s home in Monona. Numerous electronic devices were seized from the home, which were later analyzed. On the defendant’s phone, agents found hundreds of Kik messages between the defendant and other people. Some of the conversations were with adults with whom he discussed his sexual interest in minors. Others were with minors from whom he obtained child pornography.
Agents also found numerous sexually explicit images of other minors that were filmed with a camera that Blood hid in a smoke detector. Based on these surreptitious recordings, Judge Peterson indicated that the 12-year sentence was warranted because the secret recordings were such a grotesque invasion of the victims’ privacy.
The charges against Blood were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Monona Police Department, and Mount Horeb Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Mexican National Pleads Guilty to Drug Conspiracy and Guns OffensesRead the Press Release
FRESNO, Calif. — Javier Ochoa-Anaya, 49, residing in Denair, pleaded guilty today to conspiracy to distribute methamphetamine and possessing firearms in furtherance of drug trafficking offenses, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, Ochoa received a shipment of 54 kilograms of methamphetamine on Sept. 3, 2019. Ochoa enlisted the aid of co-defendant Victoria Rodriguez, to assist him in weighing and packaging the methamphetamine. On Sept. 5, 2019, agents seized the methamphetamine during a search of Ochoa’s vehicle. In addition, agents seized a cooler stored with the methamphetamine that contained 1 kilogram of cocaine, five loaded firearms, a bullet proof vest, several high capacity magazines, a substance used to dilute the drugs, and a digital scale.
This case is the product of an investigation by the Drug Enforcement Administration and the Sheriff’s Special Investigations Unit, composed of agents from the Stanislaus County Sheriff’s Department, the California Highway Patrol, the Stanislaus County District Attorney’s Office, Stanislaus County Probation, and Ceres Police Department. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.
Ochoa is scheduled to be sentenced on Sept. 4. He faces a maximum statutory penalty of life in prison and a $10 million fine for the drug offense and a mandatory five-year consecutive term on the firearms charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Victoria Rodriguez pleaded guilty to conspiring to distribute methamphetamine and is scheduled for sentencing on June 19, 2020.
Man from Las Cruces, New Mexico sentenced to 8 months in prison for impersonating U.S. MarshalRead the Press Release
ALBUQUERQUE, N.M. – Aaron Tyler Stroud, 39, of Las Cruces, New Mexico was sentenced in federal court in Las Cruces on June 10 to eight months and 12 days in prison for false personation of an officer or employee of the United States.
According to public court documents, Stroud committed the offense in Doña Ana County on Sept. 29, 2019. He approached an officer from the Las Cruces Police Department who was responding to a report of domestic violence. Stroud claimed to be an officer of the U.S. Marshal Service. He was wearing a shirt with “U.S. Marshal” printed on it. Stroud also carried a radio, a false badge, and a holstered firearm. He said he routinely patrolled the area. Stroud had previously intervened in the domestic dispute by pretending to be a deputy Marshal and pointing his gun at the man and woman involved in the dispute.
Stroud will receive credit for time already served in custody. He also must serve a two-year term of supervised release following his imprisonment.
The United States Marshal Service and Las Cruces Police Department investigated this case. Assistant U.S. Attorney Joni Autrey Stahl prosecuted the case.
Man Convicted in State Court of Pimping and Drug Offenses Sentenced to a Consecutive 21 Months’ Imprisonment in Federal Prison for a Firearms OffenseRead the Press Release
A man from Minnesota was sentenced June 10, 2020 to more than two years in federal prison.
Ahmed Hassan, age 26, from Pelican Rapids, Minnesota received the prison term after pleading guilty to possession of a firearm by a drug user.
Evidence at his change of plea and sentencing hearings revealed between December 2018 and April 2019, Hassan was an unlawful user of methamphetamine and knowingly possessed two guns and ammunition on two separate occasions. Hassan came to the attention of law enforcement during their investigation of the defendant’s other felony criminal activity, which included pimping and controlled substance violations. He was convicted in state court for those charges and sentenced to state prison. Upon his release from state prison, he must serve his federal firearms sentence.
Hassan was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hassan was sentenced to 21 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. The federal sentence was imposed consecutive to the state sentence, so defendant must complete his state prison term first.
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.
Hassan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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 our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4038.
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Man Arrested for Threatening to Burn Down African American ChurchRead the Press Release
NORFOLK, Va. – A North Carolina man was arrested today on a charge related to his alleged threat to burn down an African American church in Virginia Beach.
John Malcolm Bareswill, 63, who lives in Catawba, North Carolina, and works in Virginia Beach, is scheduled to make his initial appearance in federal court today in Norfolk at 2 p.m.
According to court documents, Bareswill allegedly called a Virginia Beach church with a predominantly African American congregation, made racially derogatory remarks, and threatened to set the church on fire. The threatening call was placed on June 7, several days after one of the church’s leaders took part in a public prayer vigil and peaceful demonstration for George Floyd.
“Our office takes seriously any threat to the lives and well-being of our fellow citizens,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Threats meant to silence or intimidate people because of their race or religion, like the one allegedly made here, have our highest priority. “No one should be made to fear for their safety or the safety of their church for speaking out, and we will seek justice for victims of those who allegedly violate that right.”
According to the affidavit in support of the criminal complaint, on June 7, a church member informed the Virginia Beach Police Department that between approximately 10:00 a.m. and 11:30 a.m, a male caller had called the church’s land line telephone. According to witnesses, the call was placed on speakerphone and overheard by two adult members of the church and also several children. The caller stated words to the effect of “you [racial slur] need to shut up”, and threatened to set fire to the church.
“The FBI’s highest priority is protecting the communities we serve,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Division. “We take all threats of violence seriously and will respond quickly to intervene, working with our law enforcement partners to keep Hampton Roads safe. As always, we encourage the public to remain vigilant and report threats or suspicious activities immediately to the FBI by calling 1-800-CALL-FBI or online at https://www.fbi.gov/tips.”
Bareswill is charged with making a telephonic threat to use fire to kill, injure, or intimidate any individual, or unlawfully to damage or destroy a building. If convicted, Bareswill faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Division, Tony Zucaro, Jr., Acting Chief of the Virginia Beach Police Department, and David Hutcheson, Chief of the Virginia Beach Fire Department, made the announcement. Assistant U.S. Attorney Andrew Bosse is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-mj-230.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Man Arrested for Sextortion Scheme Involving Minor ChildrenRead the Press Release
ALEXANDRIA, Va. – A Warrenton man was arrested today for his alleged role in a sextortion scheme involving minor children.
According to court documents, Filippo Parlagreco, 35, allegedly sought and obtained via a social media application sexually explicit images of an 11-year-old minor, threatened to disseminate the images if the minor did not produce more, and then shared sexually explicit images of the minor with others via encrypted messaging applications. As alleged in the complaint, law enforcement identified the minor victim after another minor victim notified the police that the defendant had posted photos of her undressed on a social media application without her consent, and demanded additional images from her as a condition of taking the photos down.
Parlagreco is charged with sexual exploitation of children. If convicted, he faces a mandatory minimum of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties.
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.
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. Special Assistant U.S. Attorney Gwendelynn Bills is prosecuting the case.
This case is being 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-mj-155.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Lorain man indicted for robbery of credit unionRead the Press Release
Justin. E. Herdman, U.S. Attorney for the Northern District of Ohio, announced today that a federal grand jury in Cleveland has returned a one-count indictment charging Travone D. Edwards, age 26, of Lorain with one count of interference with commerce by means of robbery.
According to the criminal complaint filed in this matter, on February 28, 2020, a lone suspect, later identified as Edwards, entered the GenFed Financial Credit Union (GFCU) located on Oberlin Ave in Lorain, Ohio. Edwards gave a note to the bank teller demanding that the teller “Put all 50’s and 100’s in the bag, don’t say anything, make a scene, or call the police or I will shoot”. The teller complied, and Edwards fled the scene. Edwards was later identified during the ensuing investigation and was arrested on April 17, 2020, by the FBI and the U.S. Marshals Service Violent Fugitive Task Force on multiple outstanding warrants.
The investigation preceding the indictment was conducted by the FBI with the help of Lorain Police Department, and the matter is being prosecuted by Assistant United States Attorney Scott C. Zarzycki.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
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 Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 8 was:
Richard Morris Little Nest, 29, a transient, on charges of possession of an unregistered firearm. If convicted of the most serious crime, Little Nest faces a maximum 10 years in prison, a $10,000 fine and three years of supervised release. Little Nest was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-44.
Christopher Michael Emter, 41, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Emter faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Emter was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-43.
Appearing on June 9 was:
Anthony Dwayne Boldt, 43, of Glendive, on charges of production of child pornography, possession of child porn and attempted witness tampering. If convicted of the most serious crime, Boldt faces a minimum mandatory 15 years to 30 years in prison, a $250,000 fine plus a $5,000 special assessment and five years to life of supervised release. Boldt was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-35.
Appearing on June 10 was:
Chad Henry Swoboda, 36, of Billings, on charges of felon in possession, and false statement during a firearms transaction. If convicted of the most serious crime, Swoboda faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Swoboda was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-47.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 9 was:
Rhonda Lee Mueller, 60, of Bozeman, on charges of conspiracy to distribute fentanyl and possession with intent to distribute fentanyl. If convicted of the most serious crime, Mueller faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. The U.S. Postal Service, Missouri River Drug Task Force and FBI investigated the case. Pacer case reference. 20-08.
Appearing in Great Falls before U.S. Magistrate Judge John Johnston and pleading not guilty on June 9 was:
Joshua Patrick Vanatta, 30, of Bainville, on charges of possession of ammunition by a felon, possession of an unregistered firearm and possession of a firearm without a serial number. 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. 20-39.
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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Hudson Man Indicted for Production, Receipt, and Possession of Child PornographyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Charles Poole (47, Hudson) with one count of production of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography. If convicted on all counts, Poole faces a maximum penalty of life in federal prison. The indictment also notifies Poole that the United States intends to forfeit two cellphones possessed by Poole and alleged to have been used in the commission of these offenses.
According to the
indictment , between October 2019 and January 2020, the National Center for Missing and Exploited Children (NCMEC) reported several CyberTips involving the receipt and distribution of child pornography over Facebook, between user “charlie.poole.14” and another unidentified user. Using IP addresses provided by Facebook, as well as account information for “charlie.poole.14,” law enforcement identified the user as Poole.On April 29, 2020, law enforcement officers executed a search warrant at Poole’s residence and discovered hundreds of images of child pornography on his devices, including an image he had produced. Law enforcement determined that the image depicted an approximately 12-year-old girl known to Poole.
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 Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Candace Garcia Rich.
This 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.
Hartford Man Admits Distributing PCPRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JORGE OQUENDO, also known as “G,” 35, of Hartford, pleaded guilty today in New Haven federal court to one count of possession with intent to distribute phencyclidine (PCP).
According to court documents and statements made in court, in May 2019, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department received information that Oquendo was distributing a large quantity of packaged and liquid PCP from his Wilson Street residence. Investigators subsequently made a controlled purchase of PCP from Oquendo at his residence. On May 22, 2019, investigators attempted to arrest Oquendo after he drove to a parking lot on Prospect Avenue in West Hartford. When multiple law enforcement vehicles closed in on Oquendo, he quickly accelerated, struck and damaged one police vehicle, drove across the parking lot, and then smashed his car into a second law enforcement vehicle that was blocking the exit to Prospect Avenue. A task force officer who occupied the second police vehicle was injured in the crash and briefly lost consciousness. Oquendo was apprehended and placed under arrest shortly thereafter.
At the time his arrest. Oquendo possessed a clear plastic bag containing smaller zip lock bags, each containing a black leaf substance soaked in PCP. A subsequent search of Oquendo’s residence revealed approximately 50 grams of black leaves soaked in PCP, more than seven grams of liquid PCP, items used to process and package narcotics for street sale, and approximately $14,000 in cash.
Oquendo is scheduled to be sentenced by U.S. District Judge Janet C. Hall on September 9, 2020, at which time he faces a maximum term of imprisonment of 20 years.
Oquendo has been detained since his federal arrest on May 31, 2019.
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 is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Guilty Pleas in A Multitude of Meth, Heroin and Illegal Gun Cases in AthensRead the Press Release
ATHENS, Ga. – Seven defendants charged in various illegal firearm and high-volume drug cases admitted their guilt during change of plea hearings this week in Athens federal court.
The following defendants entered guilty pleas in separate cases on illegal gun charges before U.S. District Judge C. Ashley Royal on Wednesday: Anthony Holloway, 28, of Athens, pleaded guilty to possession of a firearm by a convicted felon; Curioki Hyche, 32, of Athens, pleaded guilty to possession of a firearm by a convicted felon; and Emilio Flentall, 31, of Athens, pleaded guilty to possession of a stolen firearm. All three defendants face a statutory penalty of ten years in prison. Sentencing is scheduled for August 19, 2020. The following defendants entered guilty pleas on drug charges before Judge Royal on Wednesday: Justin Clouse, 38, of Watkinsville, Georgia, pleaded guilty to intent to distribute methamphetamine in excess of 50 grams and faces a minimum ten years to a maximum life term in prison; Maquilia Jones, 20, of Athens, pleaded guilty to distribution of crack cocaine and faces a minimum five years to a maximum forty years in prison; and Mechelle Morris, 45, of Oglethorpe County, Georgia, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and faces a minimum ten years to a maximum life term in prison. All three defendants will be sentenced on August 19, 2020. Rickshun Willingham, 33, of Athens, pleaded guilty to conspiracy to possess with intent to distribute heroin in excess of 100 grams, cocaine base in excess of 280 grams and methamphetamine in excess of 50 grams. Willingham faces a minimum ten years to life in prison. A sentencing date has not been scheduled. There is no parole in the federal system.
“Our office is committed to working with our law enforcement partners to crack down on high-level drug cases and remove weapons from the hands of convicted felons. It is a priority of this office to decrease the illegal drug trade and violent crime across our district,” said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. “I want to thank our local, state and federal law enforcement partners for their commitment to making our communities safer for all residents.”
This gun cases are part of Project Safe Neighborhoods (PSN), 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.
The gun cases are also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
All three gun cases were investigated by the Athens-Clarke County Police Department. The North East Georgia Regional Drug Task Force also participated in the investigation of Hollway and Flentall. Assistant U.S. Attorney Kimberly Easterling is prosecuting the gun cases for the Government. The Willingham and Jones cases were investigated by the FBI, Oconee County Sheriff’s Office, Athens-Clarke County Police Department, Georgia State Patrol and Oconee County Sheriff’s Office. The Morris case was investigated by the DEA, Oglethorpe County Sheriff’s Office, Tazewell Police Department, Tennessee, City of Middlesboro, Kentucky Police Department and the collaboration of District Attorney’s Office in Tazewell, Tennessee. The Clouse case was investigated by the DEA. Assistant U.S. Attorney Tamara Jarrett is prosecuting the drug cases for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Guilty Pleas and SentencesRead the Press Release
SAN JUAN, Puerto Rico – Last week, several defendants pled guilty and others were sentenced in the District Court of Puerto Rico, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
- On June 2, 2020, Magistrate Judge Marcos E. López held a hearing during which defendant Xavier Rivera-Natal plead guilty to possessing a fully loaded machinegun at his home in Toa Alta, Puerto Rico. On March 27, 2019, pursuant to a locally issued search warrant, PRPD found the machinegun and four additional fully loaded ammunition magazines (total of 16 rounds in machinegun, 48 rounds in the magazines). Defendant also had one black and beige imitation rifle. Defendant has been in federal custody since the day of the offense. The case was investigated by local and federal agents from Puerto Rico Police Department (PRPD) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Sean P. Murphy was in charge of the prosecution of the case.
- On June 2, 2020, U.S. District Court Judge Pedro A. Delgado-Hernández sentenced Alba Nydia Valentín-Rivera to a term of imprisonment of time already served (approximately 20 months and nine days) and a five-year term of supervised release for possessing a controlled substance with intent to distribute, specifically a quantity of heroin weighing at least 20 grams but less than 40 grams, in Mayagüez, Puerto Rico. On September 24, 2018, PRPD agents went to El Carmen Public Housing Project to arrest a separate individual, but instead found Valentín-Rivera and co-defendant, Gilberto Antonio Martínez-Pagán, in an apartment owned by Valentín-Rivera. PRPD agents recovered large quantities of heroin, marijuana, cocaine base (also known as crack), cocaine, a digital scale, drug ledgers, drug packaging and distribution paraphernalia, approximately $2,300 cash, two machinegun conversion devices, a semiautomatic Glock pistol, and over 300 rounds of firearm ammunition in various calibers, from the apartment. Co-defendant Martínez-Pagán also plead guilty and is pending sentence, currently set for August 18, 2020. Valentín-Rivera has been in federal custody since the day of the offense. The case was investigated by local and federal agents from PRPD and ATF. Assistant U.S. Attorney Sean P. Murphy was in charge of the prosecution of the case.
- On June 3, 2020, District Court Judge Aida Delgado-Colón sentenced Luis Alberto Germosen-Crisotomo to time served (roughly five months) of imprisonment, and three years of supervised release for the fraudulent use of a counterfeit Dominican Republic passport and U.S. visa issued under the name of another individual. Shortly before his sentencing hearing, Germosen had pled guilty to one count of Fraudulent Use of Visas, Permits and Other Documents. The case was investigated by U.S. Customs & Border Protection (CBP) and Special Assistant U.S. Attorney Normary Figueroa was in charge of the prosecution of the case.
- On June 4, 2020, Héctor Luis Mares-Valles pled guilty before U.S. District Court Chief Judge Gustavo A. Gelpí to one count of possession of a firearm and ammunition by a known convicted felon. Mares-Valles could be sentenced to a term of imprisonment of not more than 10 years. Mares-Valles was arrested pursuant to a state search warrant where they found inside a residence a Glock pistol, and a total of 103 rounds of ammunition. This case was investigated by ATF. Assistant U.S. Attorney Pedro R. Casablanca was in charge of the prosecution of the case.
- On June 5, 2020, Carlos Zalduondo-Díaz plead guilty to possessing a machinegun while being a prohibited person (felon). The charges stem from a confidential tip that alerted Aibonito PRPD officers of shots fired from a Toyota vehicle and provided them with the vehicle’s description. The information was quickly transferred to other agents who were able to detain the vehicle and seize the firearm. Defendant faces a maximum sentence of ten years of imprisonment. The case was investigated by ATF and PRPD. Assistant U.S. Attorney Jeanette Collazo-Ortiz was in charge of the prosecution of the case. Prosecution was made possible by the citizen who alerted law enforcement and because of the prompt response of the PRPD agents.
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Grand Prairie Man Sentenced to 57 Months for $2.8 Million Tax Preparation SchemeRead the Press Release
A Grand Prairie man was sentenced 57 months in federal prison for his role in a more than $2.8 million tax return preparation scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Oma Michel Ungu, 61, pleaded guilty in January to one count of conspiring and aiding in the preparation of a false tax return. He was sentenced Tuesday morning by U.S. District Judge Terry R. Means.
“When our tax laws are ignored, especially by those trained as professionals, everyone loses,” said U.S. Attorney Nealy Cox. “We are committed to protecting the integrity of our tax system by giving taxpayers confidence that everyone plays by the same rules. Tax return preparers who exploit their clients and the tax system to file fraudulent returns will be prosecuted and held accountable for their criminal conduct.”
“Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said Kevin Caramucci, Assistant Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
According to plea papers, between 2013 and 2016, Mr. Ungu admitted that Super Professional Tax Services, which he owned and operated, prepared and filed false tax returns on behalf of its clients. Mr. Ungu admitted he personally prepared a tax return in 2015 that claimed that one of his clients had significant unreimbursed business expenses which provided the client a with substantial reduction in his taxable income. Mr. Ungu knew the client was not entitled to claim a deduction for unreimbursed business expenses.
A former employee of Mr. Ungu, Robert Poteet previously pleaded guilty to aiding and assisting in the preparation and presentation of false and fraudulent tax returns in January 2019 and was sentenced to 18 months in federal prison.
The defendants are jointly and severally liable for more than $2.8 million in restitution.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Douglas A. Allen is prosecuting this case.
Grand Island Man Convicted for Receipt of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Steven G. Peterson, 41, formerly of Grand Island, Nebraska, was sentenced On June 11, 2020, in Lincoln, Nebraska, by Chief United States District Judge John M. Gerrard for receipt of child pornography. Peterson was sentenced to 90 months in prison and 5 years of supervised release with special conditions, to be concurrent with the undischarged term imposed in Count I of the Superseding Indictment. He will also be required to register as a sex offender and pay $4,000.00 in restitution. There is no parole in the federal system.
On April 24, 2018, a search and seizure warrant was executed at Peterson’s residence in Grand Island, Nebraska for any electronic devices that may contain child pornography. Numerous devices were seized from his residence. A forensic examination of the devices were performed and three of the devices belonging to Peterson were found to contain child exploitive materials. More than 591 image files and 6 videos containing child pornography were discovered on his laptop computer. The files on the laptop included content portraying the sexual abuse and exploitation of infants or toddlers.
Approximately 328 child exploitive materials were located on Peterson’s tablet device. The materials on the tablet included videos portraying sadistic sexually explicit acts involving teenagers as well as photographs of children as young as three engaged in sexually explicit conduct. Approximately 53 images and 6 videos displaying child pornography were located on his phone. The content on the phone included materials portraying children as young as infants engaged in sexually explicit conduct. The user information for these three devices indicated that they were in the possession and control of Peterson.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Grand Island Police Department.
Getaway Driver in McDonald's Robbery Sentenced to Three Years in PrisonRead 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 Juwan Baldwin, 27, of Rochester, NY, who was convicted of one count of Hobbs Act Robbery, was sentenced to serve 36 months in prison by U.S. District Judge Elizabeth A. Wolford for his role in the December 28, 2018, robbery of a local McDonald’s restaurant.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that in the early morning hours of December 28, 2018, the defendant drove co-defendants Malik Lott and Lavon Wims to the McDonald’s restaurant at 1701 East Avenue in Rochester, knowing that Lott and Wims were going to rob the restaurant. Baldwin stayed in the car while Lott and Wims entered the restaurant where Wims held a knife to the throat of a McDonald’s employee. Wims then dragged the employee to the cash register and then to the safe, demanding money. At the same time, Lott displayed what appeared to be a handgun to another McDonald’s employee. Wims and Lott left McDonald’s with the stolen cash and were picked up by Baldwin, who drove them home.
Lavon Wims and Malik Lott were previously convicted and sentenced.The sentencing is the result of an investigation by the Federal Bureau of Investigation’s Violent Crimes Task Force, under the direction of Acting Special Agent-in-Charge Robert Guyton; the New York State Police, under the direction of Major Eric Laughton; and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
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Four Mexican Nationals Charged with Transporting More Than 2,100 Kilograms of Marijuana Aboard Panga Boat to Goleta BeachRead the Press Release
LOS ANGELES – Four Mexican nationals today were named in a federal grand jury indictment charging them with possessing and intending to distribute more than 2,100 kilograms (4,700 pounds) of marijuana, which they allegedly transported on a fishing boat that landed on a Santa Barbara County beach.
The indictment returned this afternoon charges four men, all of Sinaloa, Mexico, with one count of possession with intent to distribute at least 1,000 kilograms of marijuana, a crime that carries a statutory maximum sentence of life imprisonment and mandatory minimum sentence of 10 years in federal prison:
- Alejo Garcia-Moreno, 54;
- Benito Garcia-Moreno, 59, Alejo Garcia-Moreno’s brother;
- Mario Sainz-Aranzubia, 44, a cousin of Alejo and Benito Garcia-Moreno; and
- Benny Zazueta-Sainz, 28, Sainz-Aranzubia’s nephew.
According to an affidavit filed with a criminal complaint in this matter, on the evening of March 11, a law enforcement airplane observed an open-bowed fishing vessel known as a “panga boat,” loaded with suspected narcotics and traveling toward Goleta. The four defendants later were identified as being the boat’s crewmembers.
The panga boat landed at Hollister Ranch Beach in Goleta at approximately 1:15 a.m. on March 12, the affidavit states. In addition to the crew members on the panga boat that officers aboard the airplane previously observed, law enforcement saw 14 additional individuals on the beach, as well as two other people on a hill who appeared to be conducting counter-surveillance of law enforcement activity, according to the affidavit. Once the boat landed, the 14 non-crew members on the beach offloaded bales of marijuana from the boat and moved the bales to multiple vehicles waiting nearby, according to court documents.
Law enforcement entered Hollister Ranch Beach around 3 a.m. and the suspected narcotics traffickers scattered and fled. Officers pursued the suspects and arrested a total of 21 people, including the four defendants named in today’s indictment. The other 17 people were released.
Following the arrests, law enforcement recovered a total over 200 bales of marijuana from the panga boat, the Hollister Ranch Beach area, and the van, according to statements made in court. In total, the four defendants are charged with possessing with intent to distribute 2,138.5 kilograms (4,714.6 pounds) of marijuana, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, the Santa Barbara County Sheriff’s Office, California State Parks, California Highway Patrol, and the United States Coast Guard investigated this matter.
This case is being prosecuted by Assistant United States Attorney Jamari Buxton of the Public Corruption and Civil Rights Section.
Former London and Miami Art Dealer Arrested for Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging INIGO PHILBRICK, an art dealer specializing in post-war and contemporary fine art, with galleries in London, United Kingdom, and Miami, Florida, with engaging in a multi-year scheme to defraud various individuals and entities in order to finance his art business. In total, PHILBRICK allegedly fraudulently obtained more than $20 million as a result of the scheme.
Federal law enforcement agents took PHILBRICK into custody yesterday in Vanuatu, after Vanuatu authorities expelled PHILBRICK from Vanuatu at the request of the U.S. Embassy in Papua New Guinea in light of the charges in the Complaint. PHILBRICK was then transported to Guam, where he is expected to be presented in federal court on June 15, 2020.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Inigo Philbrick was a serial swindler who misled art collectors, investors, and lenders out of more than $20 million. You can’t sell more than 100 percent ownership in a single piece of art, which Philbrick allegedly did, among other scams. When his schemes began to unravel, Philbrick allegedly fled the country. Now he is in U.S. custody and facing justice.”
FBI Assistant Director William F. Sweeney Jr. said: “Mr. Philbrick allegedly sought out high-dollar art investors, sold pieces he didn’t own, and played games with millions of dollars in other people’s money. The game ended when investors began wondering where their money went. Hats off to the FBI NY Joint Major Theft Task Force/Art Crime Team who worked diligently to track down Mr. Philbrick and bring him back to the U.S., where, if convicted, he might have to trade in his jet-set life for a drab federal prison cell.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
From approximately 2016 through 2019, to finance his art business, PHILBRICK engaged in a scheme to defraud multiple individuals and entities in the art market located in the New York metropolitan area and abroad. PHILBRICK made material misrepresentations and omissions to art collectors, investors, and lenders to access valuable art and obtain sales proceeds, funding, and loans (the “Fraud Scheme”). PHILBRICK knowingly misrepresented the ownership of certain artworks, for example, by selling a total of more than 100 percent ownership in an artwork to multiple individuals and entities without their knowledge; and by selling artworks and/or using artworks as collateral on loans without the knowledge of co-owners, and without disclosing the ownership interests of third parties to buyers and lenders. PHILBRICK furnished fraudulent contracts and records to investors to artificially inflate the artworks’ value and conceal his scheme, including a contract that listed a stolen identity as the seller.
PHILBRICK obtained millions of dollars in loans and sale proceeds in connection with the Fraud Scheme. Artworks about which PHILBRICK made these fraudulent misrepresentations in furtherance of the Fraud Scheme include, among others, a 1982 painting by the artist Jean-Michel Basquiat titled “Humidity,” a 2010 untitled painting by the artist Christopher Wool, and an untitled 2012 painting by the artist Rudolf Stingel depicting the artist Pablo Picasso.
By in or about the fall of 2019, PHILBRICK’s Fraud Scheme began to come to light as various investors and lenders learned about the fraudulent records PHILBRICK had provided and the material misrepresentations and omissions he had made. By in or about mid-October, a lender officially notified PHILBRICK that he was in default of approximately a $14 million loan, and by November 2019, various investors had filed civil lawsuits in multiple jurisdictions regarding PHILBRICK’s Fraud Scheme in connection with various artworks. At around the same time, PHILBRICK’s art galleries in Miami and London closed, and PHILBRICK stopped responding to legal process. Flight records show that PHILBRICK departed the United States shortly before public reporting began about the lawsuits. Based on information provided by Vanuatu, PHILBRICK has been residing in Vanuatu since in or about late October 2019.
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PHILBRICK, 33, a U.S. citizen previously residing in London, United Kingdom, and a fugitive since October 2019, was charged in the Complaint with one count of wire fraud and one count of aggravated identity theft. The wire fraud charge carries a maximum prison term of 20 years. The aggravated identity theft charge carries a mandatory sentence of two years in prison.
The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Berman praised the investigative work of the FBI NY Joint Major Theft Task Force/Art Crime Team. In addition, Mr. Berman thanked authorities in Vanuatu, including the Vanuatu Police Force, Vanuatu Immigration Services, and the Ministry of Foreign Affairs, International Cooperation, and External Trade of the Republic of Vanuatu, as well as the United States Justice Department’s Office of International Affairs of the Department’s Criminal Division, the U.S. State Department, the U.S. Embassy in Papua New Guinea, the Regional Security Office Port Moresby, the FBI’s Legal Attaché in Canberra, Australia, the FBI’s Guam Resident Agency, and the U.S. Marshals Service in Guam for their assistance.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.
To report information related to this case, please contact the FBI's Art Crime Team at [email protected].
The allegations in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Felon Who Brought Gun to Madison House Party Sentenced to 96 MonthsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ronald Rice, 36, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 71 months in prison for unlawful possession of a firearm, and an additional 24 months in prison for violation of supervised release conditions.
On January 10, 2020, Rice pleaded guilty to a one-count information that charged him with unlawful possession of a .40 caliber Glock firearm as a felon. On May 19, 2019, Rice brought the gun to an after-party in Madison. At the time, Rice was on federal supervised release following his prison sentence for dealing drugs. Pursuant to a written plea agreement, Rice agreed to a joint sentencing recommendation of 71 months for the gun charge and 24 months for violating conditions of his supervised release, for a total sentence of 95 months in prison.
At today’s sentencing, Rice apologized for his conduct and noted that it was a dumb thing for him to do, bringing a gun to the May 19, 2019 party, and he was just hanging around the wrong people. Judge Peterson agreed with Rice that it was a dumb thing to do, especially given the fact that Rice had just been released from federal prison 46 days earlier after serving a 72-month sentence for drug dealing. Judge Peterson told Rice that he hoped Rice recognizes that being on supervised release is a tool to help an inmate get back on his feet, “but if you violate the rules and cause problems you will be revoked and go back to prison. “ Finally, Judge Peterson noted that, “People should understand that gun crimes, such as this one, pose an acute danger to the community, and if you unlawfully possess a firearm you will face a stiff penalty.”
The charges against Rice are the result of an investigation conducted by the Madison Police Department. The prosecution of this case was handled by Assistant U.S. Attorney Daniel Graber.
The case was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Federal Grand Jury Indicts Orange County Man in Investment Fraud Scheme Centering on Bogus Claims of COVID-19 CureRead the Press Release
LOS ANGELES – A federal grand jury this afternoon indicted a Huntington Beach man on fraud charges that allege he solicited people around the nation to invest in a companies that would market pills he claimed would prevent coronavirus infections and produce an injectable cure for those already suffering from COVID-19.
Keith Lawrence Middlebrook, 52, was named in an indictment that charges him with 11 counts of wire fraud stemming from solicitations he allegedly made to potential investors in Nevada, New York, Texas and Colorado.
“Through text messages, videos, and statements sent to potential investors and posted on the internet, including on Instagram and YouTube, defendant Middlebrook falsely claimed to have developed a cure for the COVID-19 virus, which he called ‘QC20,’ and a treatment that prevented a person from being infected by the COVID-19 virus, which he called ‘QP20,’” according to the indictment.
The FBI arrested Middlebrook in this case on March 25 after Middlebrook delivered pills – purportedly the treatment that prevents coronavirus infection – to an undercover agent who was posing as an investor. Two of the charges in the indictment relate to communications with the undercover agent.
The indictment alleges that Middlebrook claimed to have personally developed a “patent-pending” cure and a treatment to prevent coronavirus infection, even though “[g]overnmental and non-governmental health organizations both within the United States and abroad confirmed that there was no vaccine or specific antiviral medicine then known to prevent or treat COVID-19,” according to the indictment.
Middlebrook fraudulently solicited investments in companies he called Quantum Prevention CV Inc. (also called QP20) and Quantum Cure CV 2020 Inc. (also known as QC20) with a series of false promises. Those fraudulent claims included miraculous results from the prevention product and the cure, risk-free and 100 percent guaranteed “enormous returns” on investments,” and that Earvin “Magic” Johnson was a director and/or officer of QC20, the indictment alleges.
“To bolster these claims, defendant Middlebrook falsely represented that an unnamed party in Dubai had offered to purchase the companies for $10 billion, and this offer would secure the victim-investors’ investments in QP20 and/or QC20; and that he had secured funding from seven investors who had each already invested between $750,000 and $1,000,000,” the indictment alleges.
Following his arrest at the March 25 meeting in El Segundo, Middlebrook remained in custody until May 6, when he was freed on a $150,000 bond. His arraignment on the indictment has not yet been scheduled.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each of the 11 counts of wire fraud alleged in the indictment carries a statutory maximum penalty of 20 years in federal prison.
The investigation in this matter is being conducted by the FBI.
This case is being prosecuted by Assistant United States Attorneys Valerie Makarewicz and James Hughes of the Major Frauds Section.
Members of the public are urged to report suspected fraud schemes related to the coronavirus and COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721 or completing an online complaint form.
Federal Embezzlement Charges Filed Against Former Southern University Band DirectorRead the Press Release
United States Attorney Brandon J. Fremin announced today the filing of charges against Nathan Haymer, age 42, of Houston, Texas, for federal program theft, in violation of Title 18, United States Code, Section 666.
As alleged in the Bill of Information, Haymer served as Director of Bands at Southern University A&M College (“Southern University”) and, in that role, was responsible for leading Southern University’s marching band, which performed at Southern University athletic events and a wide variety of other events both within Louisiana and across the United States. Haymer’s duties included making purchases and paying expenses during the band’s trips.
According to the Bill, from November 2016 through March of 2018, Haymer intentionally misapplied more than $30,000 that Southern University had provided to him to be used for official band expenses. Specifically, according to the Bill, on more than a dozen occasions, Haymer submitted false documents, such as fictitious and forged invoices from purported vendors, knowing that he had not incurred the expenses reflected on the documents.
U.S. Attorney Fremin commends Southern University for their cooperation in the investigation, appreciates the work of the Louisiana Legislative Auditor in preparing the underlying audit, and he applauds the efforts of the Federal Bureau of Investigation and Louisiana State Police to bring these charges. This case is being prosecuted by Assistant United States Attorney Alan Stevens.
A bill of information is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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.
Fairfield Man Convicted Twice in Six Years for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A Fairfield man pleaded guilty Thursday to being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
Antonio Tawan Bankhead, 32, was convicted of the same crime in Sacramento federal court in 2015. He violated his federal probation in that case when he committed this new offense.
According to court documents, on the evening of Oct. 11, 2019, police responded to the area of Laurel Creek Park for a report of a potential robbery involving three individuals, one of whom had a gun. As police arrived, Bankhead ignored commands to stop and began to walk away. As more police arrived and tried to cut off his path, Bankhead changed direction and started to sprint. After a pursuit by officers and a K9, Bankhead was caught in the bushes of a house across from the park, and a gun and phone he had been carrying were found on a baseball field, which was fenced in and closed to the public. The gun, a Glock Model 19 9 mm pistol, had a 30-round extended magazine, and was loaded with 30 live 9 mm rounds and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses.
This case is the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.
Bankhead is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Aug. 27. Bankhead faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Bankhead also faces an additional maximum of two years for violating his federal probation from his 2015 conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Fifteen Defendants Plead Guilty to Racketeering Conspiracy in International Cyber Fraud SchemeRead the Press Release
WASHINGTON – Fifteen defendants have pleaded guilty to-date for their roles in a transnational and multi-million dollar scheme to defraud American victims through online auction fraud.
Four of the guilty pleas took place in the past 24 days before U.S. Magistrate Judge Matthew A. Stinnett of the U.S. District Court for the Eastern District of Kentucky.
Bogdan-Stefan Popescu, 30, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to plea documents, Popescu operated a car wash in Bucharest, Romania, where he managed coconspirators in the RICO enterprise. From at least December of 2013, Popescu oversaw an operation whereby he knowingly negotiated fraudulently obtained Bitcoin. He did so in many ways. For example, he would sometimes receive cryptocurrency from coconspirators who obtained the funds through online fraud scams, transfer the cryptocurrency to other conspirators such as codefendant Vlad-Călin Nistor. He would then direct that Nistor exchange the cryptocurrency for fiat currency, and deposit the fiat currency into bank accounts held in the names of various employees and family members. According to court documents, in addition to providing money laundering services, Popescu also coordinated the dissemination of tools used to defraud American-based victims, such as the language and photographs for fake advertisements as well as usernames and passwords for IP address anonymizing services. Popescu also assisted members of the RICO conspiracy by connecting them with other members who could provide call center services—that is, who would impersonate eBay customer service representatives over the phone.
Liviu-Sorin Nedelcu, 34, of Romania, pleaded guilty on June 11, 2020, to one count of RICO conspiracy. According to court documents, Nedelcu worked in conjunction with others to post advertisements for goods online. To maintain the appearance of legitimacy, Nedelcu created fictitious entities through which he purported to sell vehicles. Once Nedelcu and his coconspirators convinced victims to purchase falsely advertised goods, they sent the victims invoices for payment that appeared to be from legitimate sellers, such as eBay Motors. Upon receiving payment, Nedelcu and his coconspirators engaged in a sophisticated money laundering scheme to convert the victim payment into Bitcoin.
Vlad-Călin Nistor, 33, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to plea documents, Nistor was the founder and owner of the Romania-based Bitcoin exchange Coinflux Services SRL. He exchanged cryptocurrency into local fiat currency on behalf of the Romania-based members of the conspiracy, knowing that the Bitcoin represented the proceeds of illegal activity. According to plea documents for example, Nistor exchanged over $1.8 million worth of Bitcoin for co-defendant Bogdan Popescu.
Beniamin-Filip Ologeanu, 30, of Romania, pleaded guilty on May 19, 2020, to one count of RICO conspiracy. According to court documents, Ologeanu worked in conjunction with others in the conspiracy to post advertisements for goods to auction websites, including eBay, and sales websites, including craigslist. Once Ologeanu or his coconspirators convinced victims to purchase and provide payment for falsely advertised items, Ologeanu reached out to U.S.-based conspirators to convert the victim payment into other forms of payment and transfer part of it to Ologeanu in Bitcoin. Ologeanu also purchased fraud proceeds from other coconspirators, typically in the form of prepaid debit cards, to be laundered by U.S.-based coconspirators.
“Today’s modern cybercriminals rely on increasingly sophisticated techniques to defraud victims, often masquerading as legitimate businesses,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These guilty pleas demonstrate that the United States will hold accountable foreign and domestic criminal enterprises and their enablers, including crooked bitcoin exchanges that swindle the American public.”
“The guilty pleas announced today are a direct result of the extraordinary cooperation and partnership among law enforcement agencies at the local, state, federal, and international levels,” said U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky. “These partnerships helped dismantle a sophisticated organized crime group who preyed upon victims across the United States. I commend the exceptional work conducted by our law enforcement partners and trial team members who worked diligently to hold these defendants accountable.”
“Through the use of digital currencies and trans-border organizational strategies, this criminal syndicate believed they were beyond the reach of law enforcement,” said Assistant Director Michael D’Ambrosio, U.S. Secret Service, Office of Investigations. “However, as this successful investigation clearly illustrates, with sustained, international cooperation, we can effectively hold cyber criminals accountable for their actions, no matter where they reside. I commend the hard work and perseverance of all those who joined together in this investigation and prosecution. This includes our partners in Europe, as well as those closer to home.”
“Today’s guilty pleas serve as a reminder that IRS-CI special agents will uncover illegal activity here and abroad, pierce the perceived veil of anonymity provided by cryptocurrencies, and bring those responsible for unlawful acts to justice,” said Special Agent in Charge Jonathan Larsen of the IRS-Criminal Investigations (IRS-CI) New York Field Office. “We will continue to push the agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure the United States financial system is protected.”
“These are scam artists who hide behind a wall of technology which allows them to prey upon innocent victims throughout the United States,” said Kentucky State Police Commissioner Rodney Brewer. “The dismantling of this criminal enterprise was made possible because of the incredible level of cooperation between the law enforcement community here in Kentucky.”
According to court documents, the defendants participated in a criminal conspiracy that engaged in a large-scale scheme of online auction fraud. Specifically, Romania-based members of the conspiracy posted false advertisements to popular online auction and sales websites—such as Craigslist and eBay—for high-cost goods (typically vehicles) that did not actually exist. Members of the conspiracy would convince American victims to send money for the advertised goods by crafting persuasive narratives, for example, by impersonating a military member who needed to sell the advertised item before deployment.
According to court documents, members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, often using the stolen identities of Americans to do so. They also delivered invoices to the victims bearing trademarks of reputable companies in order to make the transaction appear legitimate. Members of the conspiracy also set up call centers, impersonating customer support, to address questions and alleviate concerns over the advertisements.
Once victims were convinced to send payment, the conspiracy participants engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based money launderers.
The 15 defendants who have pleaded guilty in this case have yet to be sentenced. Two other defendants in the case are scheduled for trial starting on Sept. 14, 2020, before the Honorable Robert E. Wier of the U.S. District Court for the Eastern District of Kentucky. Three others are fugitives.
In addition to pleading guilty in this case, on Jan. 13, 2020, Adrian Mitan pleaded guilty in a related money laundering conspiracy, arising from online schemes, including a credit card phishing and brute-force attack scheme, designed to steal money from Americans. According to court documents, Mitan phished for payment card information of U.S. customers, hacked into the electronic systems of American businesses, and then conducted a brute-force attack on their point-of-sale systems for the purpose of stealing the remaining payment card information. Mitan then directed American money launderers to create clone payment cards with the stolen information, which were used to extract money from the customers’ accounts. These fraudulent proceeds were then returned to Mitan in the form of Bitcoin.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation, and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Criminal Division’s Money Laundering and Asset Recovery Section provided significant support and the Criminal Division’s Office of International Affairs provided significant support in securing and coordinating the arrests and extraditions from Romania of more than a dozen defendants.
This case is being prosecuted by Senior Trial Attorney Timothy C. Flowers and Senior Counsel Frank H. Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases. Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.
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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Edwards Man Sentenced to over Three Years in Prison Under Project EJECT for Trafficking MethamphetamineRead the Press Release
Jackson, Miss – Daniel Chad Parrette, 48, of Edwards, was sentenced today by Chief U.S. District Judge Daniel P. Jordan to 43 months in prison, followed by three years of supervised release, for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Interim Director Steve Maxwell with the Mississippi Bureau of Narcotics (“MBN”). Parrette was also ordered to pay a $1,500 fine.
On March 30, 2018, MBN agents received information that Parrette was attempting to sell methamphetamine. Based upon this information, as well as the agents’ observations, agents made a traffic stop on Parrette’s truck and confronted Parrette. Agents searched Parrette’s truck and found four individually wrapped bags of methamphetamine. In a subsequent interview, Parrette told agents that he wanted to sell the methamphetamine.
On April 3, 2019, Parrette was charged in a federal indictment with possession with intent to distribute a substance containing methamphetamine. He pled guilty before Judge Jordan on November 21, 2019.
The case was investigated by the Mississippi Bureau of Narcotics and prosecuted by Assistant United States Attorney Bert Carraway.
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.
Defense Contractor SAIC Pays $5.98 Million to Settle False Claims Act InvestigationRead the Press Release
NEWS RELEASE SUMMARY – June 15, 2020
SAN DIEGO – Science Applications International Corporation (SAIC), a major defense contractor headquartered in Reston, Virginia, has paid $5,982,865 to resolve allegations that it violated the federal False Claims Act. The settlement arises out of a contract for SAIC to provide information technology support to the U.S. Army.
The United States Attorney’s Office for the Southern District of California and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), with assistance from the Air Force Office of Special Investigations, began its investigation after SAIC self-disclosed certain time charging and contract administration irregularities associated with a U.S. Army contract. The contract in question was awarded to SAIC by U.S. Army Aviation and Missile Command Expedited Professional & Engineering Support Services (AMCOM EXPRESS). Specifically, SAIC was awarded a particular task order (the contract) for “Soldier Protection Lab Systems Engineering, Development, and Modeling Support.” Portions of the contract were performed in San Diego County, in part, for the benefit and training of Marines at Camp Pendleton.
The United States contended that SAIC employees misused administrative leave by working on contract requirements for a certain project before funding was available and then later clearing those charges by adding extra billing hours that were not worked to a separate project. The United States also contended that SAIC employees were provided charge codes for their hours to be recorded to projects with available funding, while they continued to work on tasks that were not funded. Once the new funding arrived, the employees working on a project that provided the original funding would then charge their hours to the new project. The United States contended that SAIC knowingly submitted to the government false claims for payment for the mischarging on these projects.
“As always, we are committed to doing our part in preserving the integrity of the government contracting process and protecting the tax payer,” said Robert Brewer, Jr., United States Attorney for the Southern District of California. He further noted that, “while it is encouraging to see a Fortune 500 corporation accept responsibility for its wrongdoing, we remain vigilant in our efforts to stem the tide of fraud, waste, and abuse that impacts our military.” On behalf of the Department of Justice, U.S. Attorney Brewer expressed gratitude to Assistant U.S. Attorneys Joseph Purcell and Paul Starita and the team of dedicated federal agents whose diligent work on this case led to the instant settlement. The U.S. Army Criminal Investigation Command’s MPFU was the lead investigative agency working with the Affirmative Civil Enforcement Section of the United States Attorney’s Office to bring this matter to a swift resolution. “We commend SAIC for coming forward with the contract discrepancies and working with law enforcement on this settlement,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s MPFU. “The MPFU and our law enforcement partners, remain diligent in our efforts to ensure that those who disregard the law will be held accountable for their actions.”
This matter was investigated by Assistant U.S. Attorneys Joseph Purcell and Paul Starita and auditing personnel of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office, in coordination with Special Agents of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Air Force Office of Special Investigations, and auditing personnel of the Defense Contract Audit Agency.
Defendants Sentenced and Ordered to Pay $993,644.46 in RestitutionRead the Press Release
HAMMOND- Jacqueline Jay Podell, 46, and Michael Wilson, 53, both of Winamac, Indiana were sentenced before U.S. District Court Judge Philip Simon, announced U.S. Attorney Kirsch.
On December 13, 2019, defendant Podell entered a guilty plea to conspiring to commit health care fraud. Defendant Wilson entered his guilty plea a month later to the charge of participating in a health care fraud scheme. Defendant Podell was sentenced on June 11, 2020 and received 6 months in prison and 6 months home confinement. Defendant Wilson was sentenced today and received 18 months in prison.
Both defendants have been ordered to pay restitution in the amount of $985,490.27 to Medicare and $8,154.19 to Indiana Medicaid.
According to documents in this case, in June 2018 Michael Wilson and Jacqueline Podell were indicted for their involvement in a multi -year scheme to defraud Medicare and, to a lesser degree, the Indiana Medicaid Program by submitting fraudulent ambulance transport claims for payment. Operating under the name Transport Loving Care, dba Alliance EMS defendants transported 4 patients, none of who actually had a medical need for ambulance transport, to and from dialysis from 2010-2014. Defendants’ scheme resulted in almost 2 million dollars in fraudulent claims to Medicare and tens of thousands of dollars in fraudulent claims to Indiana Medicaid.
“All taxpayers are victims of health care fraud schemes like this one, where money is stolen from the public fisc. These defendants are required to pay back the money they stole and will be going to prison for their crimes,” said United States Attorney Thomas L. Kirsch. “I have directed my Office to work with federal, state and local law enforcement and state administering agencies to find and bring cases like this for the benefit of the honest taxpayer. I wish to commend my partner agencies on a great job and on the resolution to this case.”
“Medicare and Medicaid do not pay health care providers for services that are not medically necessary,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Submitting false or fraudulent claims that mis-represent the medical need for a service is illegal. The OIG will continue to identify, investigate and hold accountable those who choose to defraud federally funded health care program and waste tax payer dollars.”
“Health care fraud is often billed as a victimless crime, but that couldn’t be further from the truth. These schemes often impact many of the most vulnerable in our society who rely on these services,” said Acting Special Agent in Charge Robert Middleton, FBI Indianapolis. “Today’s sentencing reaffirms the FBI’s commitment in bringing those responsible for these acts to justice. The FBI and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by manipulating the system motivated by nothing more than greed.”
This case was investigated by the US Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation and the Indiana Attorney General’s Medicaid Fraud Control Unit. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
DOJ files statement of interest in Seattle Housing Authority lawsuit involving Fair Housing ActRead the Press Release
Seattle—The U.S. Attorney’s Office Western District of Washington and the U.S. Department Justice today filed a statement of interest in Roque v. Seattle Housing Authority (SHA) as part of DOJ’s work to safeguard the civil rights of all Americans, announced U.S. Attorney Brian T. Moran. The suit arises out of the efforts of a resident of Raven Terrace in the Yesler Terrace area of Seattle to obtain parking garage access for his caregiver. The plaintiff, Tony Roque, has quadriplegia and requires caregiver assistance for his daily activities. Mr. Roque filed suit against the Seattle Housing Authority after it refused his request to modify its policies and allow his caregiver parking access in the building’s garage.
“With this filing DOJ is making clear what we believe to be the state of the law – the Fair Housing Act requires modifications to housing complex policies when modifications are necessary to afford a resident with a disability with equal access to the enjoyment of his or her home. That is true even when the accommodation relates to caregiver access, ” said U.S. Attorney Moran. “Safeguarding the rights of people with disabilities is even more important during this period of COVID-19, when the isolation and risks facing many people with disabilities are heightened.”
According to records filed in the case and the government’s statement of interest, Mr. Roque alleges that he needs caregiver assistance for the necessities of daily life – eating, dressing, administering medication, etc. Due to covid-19, the number of caregivers accessing his apartment has been reduced to one. That caregiver had been parking in the garage of Raven Terrace from 2018 until early March 2020 so that she could deliver Mr. Roque’s groceries and medical supplies and transport him to medical appointments, etc. On March 4, 2020, the Housing Authority had the caregiver’s car towed saying that since she was not a resident nor an employee she was not allowed to park in the building. When Mr. Roque requested a parking pass for the caregiver, his request was denied. The Seattle Housing Authority claimed that since the caregiver is not disabled, and the parking space was for the caregiver, it is not required to grant the accommodation.
In its statement of interest, DOJ states that under the FHA, a parking space for a caregiver of a resident with a disability may be a “necessary” accommodation under certain circumstances. Further under the ADA, a reasonable accommodation may not be denied solely because it would provide Mr. Roque with a benefit not available to other residents.
U.S. District Judge Richard A. Jones issued a temporary restraining order on May 4, 2020, prohibiting the Seattle Housing Authority from towing the caregiver’s car. Judge Jones can make the order permanent, depending on the decision made by the Seattle Housing Authority on Mr. Roque’s appeal.
The statement of interest was filed by Assistant United States Attorney Christina Fogg, the Civil Rights Coordinator in the Western District of Washington, and by Trial Attorney Max Lapertosa of the DOJ Civil Rights Division.
statement_of_interest_of_usa_roque_v_seattle_hous_auth.pdfConvicted Felon Indicted for Firearms Business without a License, Possession of Firearms, Distribution of Methamphetamine and Using a Firearm During a Drug Trafficking OffenseRead the Press Release
MEMPHIS, TN – On June 9, 2020, a federal grand jury indicted Bruce Matthews, 27, on several charges, including engaging in a firearms business without a license. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to information presented in court, between November of 2019 and January of 2020, the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a criminal investigation of Matthews for engaging in the business of firearms dealing without a license; possession of a firearm by a convicted felon; possession of a firearm by an unlawful drug user; use or carrying a firearm during and in relation to a drug trafficking offense, and distribution of methamphetamine.
During the course of this investigation, ATF special agents while undercover conducted several controlled purchases of firearms and methamphetamine from Matthews, recording each transaction.
If convicted on counts 1, 2, 3, Matthews faces sentences on each of up to 5 years imprisonment; a $ 250,000 fine and 3 years supervised release. On counts 4, 5, 6, and 7, he faces sentences of each of up to 10 years imprisonment; a fine of $ 250,000 and 3 years supervised release. On count 8, he faces an additional sentence of up to 5 years imprisonment; a $ 250,000 fine and 5 years supervised release. On counts 9 and 10, he faces sentences on each of up to 40 years imprisonment; a $5,000,000 fine and 4 years supervised release.
U.S. Attorney D. Michael Dunavant said: "Under the new Project Guardian initiative announced by Attorney General Barr in Memphis in November, 2019 https://www.justice.gov/usao-wdtn/pr/attorney-general-announces-launch-project-guardian-nationwide-strategic-plan-reduce-gun, we have intensified our focus on removing firearms from the hands of prohibited persons, and removing dangerous offenders from our streets. We have no better partner in this fight against gun crime than the ATF, and under Project Guardian, we will aggressively investigate and prosecute the trigger-pullers, traffickers, straw purchasers, and prohibited persons who violate federal firearms laws in West Tennessee."
This case was being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Wendy K. Cornejo is prosecuting this case on behalf of the government.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Convicted Armed Drug Trafficker Sentenced to 17 Months in Federal Prison for Illegal Re-EntryRead the Press Release
Ocala, Florida – Senior United States Judge John Antoon II today sentenced Jose Manuel DeJesus-Mujica (41, Ocala) to 17 months in federal prison for illegal re-entry into the United States. DeJesus-Mujica had pleaded guilty on February 28, 2020.
According to court documents and the evidence presented at sentencing, DeJesus-Mujica was convicted of trafficking in cocaine with a firearm in Kentucky on February 21, 2003. He was deported from the United States on October 8, 2004. DeJesus-Mujica then illegally re-entered the United States at an unknown date, but no later than 2010, and continued to live in the United States until he was arrested on December 17, 2019.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Chinese National Sentenced to Three Years for Attempting to Send an Export-Controlled Radio to ChinaRead the Press Release
NEWS RELEASE SUMMARY – June 12, 2020
San Diego – Qingshan Li, a national of the People’s Republic of China, was sentenced in U.S. District Court today to three years in federal custody for attempting to send to China an export-controlled radio, which is designated as a defense article due to its certification by the National Security Agency for Top Secret wire and data communications.
At sentencing, Assistant U.S. Attorney Alexandra Foster noted that for weeks preceding his arrest, Li was communicating with a man identified by the Government as “AB.” Li wanted to buy specific U.S. military equipment from AB, including the Harris Falcon III AN/PRC 152A radio (the Radio). Li had previously purchased U.S. military equipment from AB. Li flew into San Diego from China on a tourist visa on June 28, 2019, with a return ticket for July 7, 2019. The next day, Li drove his rental car to AB’s storage unit in San Diego and purchased the Radio, along with other military radios, antennas, additional military equipment and a map of North Island Naval Air Station. Li informed AB that Li planned to take the Radio to Tijuana, Mexico, and ship it to China from Tijuana in light of the lack of export-control rules in Mexico. Li agreed to pay AB 50,000 renminbi (approximately $7,200) for the Radio. Li gave AB a $600 cash down payment toward the purchase price of the Radio at the storage locker, with the promise of paying AB the remaining $6,600 at a later date.
AUSA Foster pointed out that this Radio was not a cheap make-believe radio meant for costume play. It was designated a defense article on the United States Munitions List and subject to ITAR (International Trafficking in Arms Regulations, Title 22, Code of Federal Regulations, Parts 120 et seq.). A license from the Department of State, Directorate of Defense Trade Controls, is required to export the Radio from the United States. AUSA Foster emphasized that the Radio is designated export-controlled for a reason: it is certified by the National Security Agency for Top Secret wire and data communications. Any breach in these communications could mean deadly results for U.S. Navy SEALS and other U.S. Military personnel using this equipment in the field.
The record demonstrates that soon after law enforcement agents stopped Li with the Radio and other military equipment in his bag, they interviewed him. At that time, Li stated that he knew the Radio was export controlled, and he knew that it was illegal for the Radio to be transported to China. Li stated that he purchased the Radio with the intent to ship it to China, knowing he was violating United States law.
At the sentencing, U.S. District Court Judge Cathy Ann Bencivengo noted that there was nothing mistaken about this crime. Li intended to buy this Radio and get it to China. In doing so, he was endangering the lives of U.S. Military servicemembers. Judge Bencivengo noted that Li would be deported after he served his sentence and lose his visa, which would reduce the threat to the United States going forward. Accordingly, Judge Bencivengo sentenced Li to 36 months.
“The exportation of sensitive U.S. defense technology risks the lives of American military personnel and imperils our nation’s overall security,” said U.S. Attorney Robert Brewer. “Mr. Li’s sentence demonstrates this office’s ongoing commitment to holding fully accountable those who cavalierly violate our export control laws.” U.S. Attorney Brewer specifically commended “AUSA Alexandra Foster and the stellar team of federal agents who diligently pursued justice in this case.”
“Our military technology and communication equipment is at the core of maintaining the safety of our US military personnel and the security of our nation," said Omer Meisel, FBI Acting Special Agent in Charge of the San Diego Field Office. “The FBI is committed to working with our military and national security partners, including NCIS, to stop individuals, like the defendant in this case, from engaging in the theft of information and sensitive technology for a foreign government or at the direction of an agent of a foreign government. Our country's national security is the highest priority, and the FBI will do everything in our power to protect it.”
“Mr. Li’s criminal attempt to obtain sensitive military communications technology and provide it to China posed a serious threat to the U.S. military’s warfighting capability,” said NCIS Southwest Field Office Special Agent in Charge Garrett Waugh. “The sentencing should serve as a warning that NCIS and our partner law enforcement agencies will always fully investigate and bring to justice nefarious actors like Mr. Li who seek to diminish the U.S. military’s strategic edge. We credit this investigative success to the outstanding collaboration among NCIS and our partner law enforcement agencies with support from the Naval Special Warfare Command.”
This matter was investigated and prosecuted by Assistant U.S. Attorney Alexandra Foster, in coordination with the National Security Division of the Department of Justice, the FBI and NCIS.
DEFENDANT Case Number: 19CR2564-CAB
Qingshan LI Age: 34
SUMMARY OF CHARGE
Unauthorized Solicitation of Access Devices, 18 USC Sec. 371, Conspiracy to Attempt to Export Defense Articles Without a License.
Maximum Penalty: Five years in prison, three years’ supervised release, $250,000 fine, restitution.
AGENCIES
Federal Bureau of Investigation
Naval Criminal Investigative Service
DOJ National Security Division
Charlotte Man Pleads Guilty to Wire Fraud for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Joseph Maurice Deberry, a/k/a Joseph Maurice Dewberry, 56, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer yesterday and pleaded guilty to wire fraud, for orchestrating an investment scheme that defrauded victims of hundreds of thousands of dollars, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, join U.S. Attorney Murray in making today’s announcement.
According to admissions Deberry made in plea documents and yesterday’s plea hearing, from 2016 through June 2019, Deberry fraudulently obtained hundreds of thousands of dollars from more than a dozen investors. As part of the scheme, Deberry induced victims to invest in entities with which he was affiliated, such as Pinnacle Investment Properties, LLC and Place Capital Group LLC, among others. Deberry typically represented to investors that their money would be used to further projects related to the construction of student housing at certain colleges in the Carolinas and other ventures.
To further promote the fraudulent scheme and to induce his victims to part with their money, Deberry lied about his education, employment background, involvement in prior lawsuits and regulatory actions, previous success in student housing projects, and about how he would use the victims’ money. For example, Deberry falsely claimed that he studied at the London School of
Economics when he had never studied there, and falsely claimed that he had a successful career as an investment banker at Goldman Sachs, when he had never worked there.
As Deberry admitted in court yesterday and in related filings, rather than use the victims’ money as he had represented, Deberry used a significant portion of their funds to pay for personal expenses like rent, entertainment and travel. Further, Deberry actively concealed from his victims the fact that he was under a Cease and Desist Order from the state of North Carolina, which prohibited him from offering for sale, soliciting offers to purchase, or selling any securities in North Carolina. Deberry concealed this information from victims by, among other things, telling them that his name was Maurice Dewberry.
Deberry pleaded guilty to wire fraud. The charge carries a maximum prison sentence of 20 years and a $250,000 fine. A sentencing date for Deberry has not been set.
The FBI’s Charlotte Field Office and the USPIS handled the investigation.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Career Criminal Sentenced to over 13 Years in Federal Prison for Possession of FirearmsRead the Press Release
Ocala, Florida –Senior United States District Judge John Antoon II today sentenced Shane Lamar Harris (41, Dunnellon) to 13 years and 4 months in federal prison for possession of a firearm affecting commerce by a convicted felon. Harris had pleaded guilty on January 23, 2020.
According to court documents, City of Ocala police officers stopped Harris in his car for several traffic infractions on January 27, 2018. During a search of the car, the officers recovered small bags of cocaine and marijuana, a loaded pistol under the driver’s seat, and a stolen shotgun in the back of the automobile. A subsequent laboratory analysis conclusively showed Harris’s DNA on the firearms. Harris’s previous convictions, including numerous drug sales, qualified him for a sentencing enhancement as an Armed Career Criminal. As a convicted felon, Harris is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the City of Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives ATF. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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 Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Businessman Sentenced to Prison for $1.4 Million Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A North Carolina man was sentenced today to over six years in prison for his role in orchestrating an investment fraud scheme that caused over $1.4 million in losses to multiple victims.
According to court records and evidence presented at trial, Anthony Eric Mitchell, 52, of Charlotte, was one of the two managing principals of a company called Aura Exchange LLC (AURA). Mitchell and his co-conspirator, Armando Almirall, through AURA, promised their clients that they could help obtain funding for a host of business purposes, such as real estate transactions and television projects. Instead, Mitchell and Almirall spent large portions of their clients’ funds on personal expenses, including trips to casinos, concert tickets, stays at beach resorts, cash withdrawals, and wire transfers overseas on speculative investments.
In order to induce the victims to provide AURA with money, Mitchell and Almirall made numerous fraudulent misrepresentations. The two promised clients that they were guaranteed to receive their initial equity deposits back when, in fact, none of the victims ever received any money from AURA. Mitchell and Almirall claimed that AURA had offices in Zurich, London, and New York when no such offices existed. Mitchell and Almirall also falsely claimed that AURA controlled valuable precious metals, such as nickel wire, that could be “monetized” in order to generate huge profits.
Mitchell and Almirall also maintained a website for AURA that contained a number of misrepresentations, including claims that AURA was an industry leader in a number of fields, that AURA was an international business with access to hundreds of financiers, and that AURA could turn around funding to its clients in as little as 24 hours. AURA never made any money for any of its clients, and in fact, victims of the fraud suffered losses of at least $1.47 million.
In October 2019, Mitchell was convicted on all counts after a five-day jury trial. Mitchell was also ordered to pay full restitution to the victims of the crime.
Mitchell’s business partner and co-conspirator, Armando Almirall, previously pleaded guilty to conspiracy to commit wire fraud and was sentenced to over five years in prison in February 2020.
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 Anthony J. Trenga. Assistant U.S. Attorney Jamar K. Walker and Special Assistant U.S. Attorney Russell L. Carlberg 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-101.
Buffalo Man Pleads Guilty to Assaulting A VA Police OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Darnell Curry, 27, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder to assaulting, resisting, or impeding a federal officer. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that on February 19, 2020, while at the Starbucks inside the Veterans Affairs Medical Center on Bailey Avenue in Buffalo, the defendant engaged in a verbal argument with a female friend employed at Starbucks.
Three Department of Veterans Affairs Police officers approached Curry in response to a complaint about the verbal argument. When the defendant did not hear or acknowledge verbal commands, an officer touched Curry's shoulder. The defendant turned and a scuffle with the officers ensued. During the scuffle, Curry pulled an officer by the vest and into his body. In the process, the defendant struck the officer in the head, leaving a mark on his cheek below his left eye. Physical resistance by the defendant resulted in the officers taking Curry to the ground, handcuffing, and detaining him.
The plea is the result of an investigation by the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri, and the VA Medical Center Police, under the direction of Chief Michael Steinmetz.
Sentencing is scheduled for September 16, 2020, before Judge Schroeder.
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Brandon Man Sentenced for Theft of Government FundsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Robert Miller (54, Brandon) to six months in federal prison, followed by three years of supervised release, for theft of government funds. As part of his sentence, the court also entered a money judgment of $75,984, the proceeds from the offense, and ordered Miller to pay restitution.
Miller had pleaded guilty on January 28, 2020.
According to court documents, Miller’s mother, S.M., was receiving Social Security Retirement Insurance Benefits. On December 9, 2009, S.M. passed away and her death was never reported to the Social Security Administration (SSA). Consequently, the SSA continued to make the benefit payments. From December 2009 through June 2019, Miller accessed the funds meant for S.M. and used them for his own personal expenses. In total, Miller knowingly and willfully stole approximately $75,984 in benefits to which he was not entitled.
This case was investigated by the Social Security Administration – Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Bellevue Store Operator Charged with Fraud and Money LaunderingRead the Press Release
PITTSBURGH - A resident of Venetia, Pennsylvania and Davie, Florida, has been indicted by a federal grand jury in the Western District of Pennsylvania on charges of wire fraud and money laundering, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Thach Duc Le, aka "Tucker" as the sole defendant.
According to the Indictment Le operated a store on Lincoln Avenue in Bellevue called Last Call Entertainment. The indictment alleges that Le engaged in the purchase of a wide variety of goods, mostly over the counter medications and health and beauty aids, from persons that were known to Le to be substance abusers who had shoplifted or otherwise stolen the goods they sold to him at Last Call.
The law provides for a maximum total sentence of up to twenty five years in prison, a fine of $250,000 per count or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Internal Revenue Service, Criminal Investigation, the FBI and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case. Police departments from the City of Pittsburgh, Ross Township and Shaler Township also assisted in the investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Beaumont Family Sentenced for Tax Evasion and Laundering of Gambling ProceedsRead the Press Release
BEAUMONT, Texas – A Beaumont businessman, his wife, and son have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Larry Earnest Tillery, 70, Judy Kay Tillery, 63, and Brian Tillery, 47, all of Beaumont, pleaded guilty on June 25, 2019 to federal charges and were sentenced today by U.S. District Judge Thad Heartfield.
Larry Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and tax evasion. Today he was sentenced to 33 months in federal prison. Tillery was ordered to pay restitution in the amount of $1,000,040.00 and to forfeit approximately $2 million in cash, jewelry, and sports memorabilia that were proceeds of his illegal gambling enterprise. A money judgment of $32,758,541.00 was also ordered by the court.
Judy Tillery pleaded guilty to structuring of financial transactions to evade reporting requirements and was sentenced to serve two years federal probation. Judy Tillery shares the forfeiture judgment with her husband.
Brian Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and was sentenced to two years of federal probation. Brian Tillery was ordered to forfeit approximately $245,477.00 and a residence on Christina Court in Beaumont with an appraised value of approximately $600,000.00 that was determined to be proceeds of the illegal gambling enterprise. Additionally, a money judgment of $700,000.00, which represents the proceeds of the illegal gambling enterprise.
According to information presented in court, Larry Tillery was engaged in the business of accepting illegal wagers on sporting events from 1985 until April - 2017. Tillery owned and operated Daylight Motors, a used car dealership, and Lamar Capital, a holding company for Daylight Motors, and used these two companies as a front to launder illicit proceeds from his illegal gambling enterprise.
Larry Tillery used a website to receive and track wagers from his betting clients, allowing his bettors to place wagers on sporting events, including professional and collegiate basketball, baseball, and football games. Judy assisted her husband in laundering cash proceeds of his illegal gambling activities by depositing cash into her personal bank account at Beaumont Community Credit Union in Beaumont, Texas, and then writing checks to bank accounts controlled by her husband. Judy Tillery structured these cash deposits in amounts under $10,000 in an attempt to evade federal currency transaction reporting requirements.
Brian Tillery, Larry Tillery’s son, aided the bookmaking enterprise by collecting money from sports bettors; making payments to bettors on Larry’s behalf; checking the online wagers on a regular basis to make Larry aware of what bets were placed on which games; accepting illegal gambling funds from Larry and making wire transfers to pay illegal gambling debts for Larry; and mailing packages of currency in excess of $10,000 – derived from illegal gambling activities – via the United States Postal Service at the request of Larry.
Larry Tillery knew that despite the fact he was violating Texas state and federal law, federal tax law nonetheless required him to register as a bookmaker with the Internal Revenue Service and to file monthly excise tax returns to report total wagers he accepted during the month. Larry also knew that he was required to pay gross wagering excise taxes of 2% on wagers he accepted each month, but he failed to report or pay taxes to the IRS based on the wagers he accepted each month. From September through November of 2016, Larry Tillery accepted at least 450 wagers totaling $5,060,150. These wagers are subject to the 2% federal gross wagering excise tax, and Larry evaded gross excise wagering taxes of $29,717 in September 2016, $34,423 in October 2016 and $37,063 in November 2016 for a three month total of $101,203.
Between 2011 and 2016, Larry Tillery accepted at least $52 million in illegal wagers on sporting events. Larry did not report these wagers to the IRS or pay gross excise taxes. The gross wagering taxes that resulted from wagers Larry Tillery accepted between 2011 and 2016 total $1,040,000.
The investigation traced a total of 125 financial transactions in excess of $10,000 derived from illegal gambling that utilized the United States banking system. These financial transactions total $32,383,841 and occurred between 2010 and 2016.
“These sentences imposed today on the Tillery family demonstrate the Department’s commitment to hold criminal enterprises accountable,” said U.S. Attorney Stephen J. Cox. “Illegal gambling activity and tax evasion will not be tolerated in the Eastern District of Texas.”
“Today’s sentencing and forfeiture order are the culmination of a six-year multi-agency criminal investigation into one of the largest illegal sports gambling and money laundering operations in U.S. history,” said Mark Dawson, special agent in charge of Homeland Security Investigation (HSI) Houston. “Working together with our federal partners, we have successfully disrupted the Tillery family criminal enterprise and sent a message that we are united in our efforts to investigate and prosecute financial crimes.”
“Most individuals file truthful and accurate tax returns voluntarily and pay their fair share of taxes," said Gerardo Gomez, Acting Assistant Special Agent in Charge, IRS Criminal Investigation. "IRS Special Agents will continue to investigate individuals like Mr. Tillery, who gain illicit profits and evade their taxes at the expense of law-abiding taxpayers.”
This case was investigated by Homeland Security Investigations and the Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Bakersfield Truck Driving School Owner Sentenced for Scheme to Fraudulently Issue Commercial Driver’s LicensesRead the Press Release
FRESNO, Calif. — The owner of a Bakersfield truck driving school was sentenced today for his role in a conspiracy to sell California commercial driver’s licenses to unqualified drivers, U.S. Attorney McGregor W. Scott announced.
U.S. District Judge Dale A. Drozd sentenced Paramjit Singh Mangat, 56, of Bakersfield, to 14 months in prison and a $10,000 fine for his conviction on one count of unlawful production of an identification document and aiding and abetting. The court also finalized an order for forfeiture of $100,000 that had been seized as proceeds from the fraud scheme.
According to court documents, Mangat operated driving schools in Bakersfield that ostensibly provided training to those seeking to obtain driver’s licenses, including Akal Truck Driving School and Akal Driving School. When students had difficulty passing DMV examinations, in return for money, Mangat offered to assist them in obtaining fraudulently issued, yet official licenses through Mangat’s contact Javier Jesus Hernandez-Herrera, 56, then a DMV employee.
According to court documents, from approximately June 2012 through Aug. 24, 2016, Mangat conspired with Herrera, then a Licensing Registration Examiner at a DMV office in Bakersfield. In return for monetary payment, Herrera agreed to access the students’ DMV records and alter the records to reflect that the individual had passed DMV written and/or behind-the-wheel examinations, when, in fact, the individual had not passed one or more required DMV tests. Herrera’s alteration of the records resulted in the DMV issuing a California driver’s license and mailing it to that individual.
Herrera pleaded guilty on Nov. 12, 2019, and is scheduled to be sentenced on Aug. 14, 2020. Herrera faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by Homeland Security Investigations and the California DMV, Investigations Division Office of Internal Affairs. Assistant U.S. Attorneys Henry Z. Carbajal III and David L. Gappa are prosecuting the case.
Arizona Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr. sentenced Jorge Villarreal-Rojo today to a term of imprisonment of 72 months. Villarreal-Rojo will serve a 2-year term of supervised release following his release from the Bureau of Prisons. There is no parole in the federal prison system.
Villarreal-Rojo, 21, was convicted of possession with intent to distribute methamphetamine. On August 26, 2019, Villarreal-Rojo was stopped by the Omaha Police Department for a traffic violation. During the traffic stop, officers seized approximately one ounce of marijuana and $11,300. Investigators received consent to search Villarreal-Rojo’s residence in Omaha and recovered approximately 13 pounds of methamphetamine. The methamphetamine was intended for distribution in the Omaha metropolitan area. The money was forfeited to the United States.
The case was primarily investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, the Drug Enforcement Administration, and the Omaha Police Department.
Alexandria Man Pleads Guilty to Possessing a Stolen FirearmRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Malik Dorsey, 21, pled guilty today in federal court before U.S. Magistrate Judge Patrick J. Hanna to possession of a stolen firearm.
On January 28, 2020, deputies with the Lafayette Parish Sheriff's Office conducted a traffic stop of a vehicle driven by Dorsey and discovered a Sig Sauer, Model P365, 9 millimeter, semi-automatic pistol in the center console of the vehicle. Deputies learned that the firearm had previously been reported stolen by Sentry Defense, a federal firearm licensee, in Youngsville, Louisiana. Officers also recovered three 9mm rounds of ammunition.
Following further investigation, agents learned that Dorsey had another firearm at his apartment in Lafayette. On January 28, 2020, officers executed a court authorized search warrant at Dorsey’s residence and found a Glock, Model 27, .40 caliber firearm. Upon inspection of the Glock, officers discovered that the serial number located on the frame differed from the serial number located on the slide and barrel. An NCIC query of both serial numbers revealed that one of the serial numbers was reported stolen from Alexandria, Louisiana. The other serial number yielded negative results.
Dorsey faces up to 10 years in prison, three years of supervised release and a $250,000 fine, as well as forfeiture of the two firearms and ammunition related to this offense. The court set the sentencing date for September 11, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lafayette Parish Sheriff’s Office, and the Youngsville Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative. PSN is a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. PSN plays a major role in the Department of Justice’s violent crime reduction strategy. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Alcoa Woman Sentenced for Fraud ChargesRead the Press Release
KNOXVILLE, Tenn – On June 10, 2020, Marilyn Yvette Cook (also known as Marilyn Yvette Powell), 57, of Alcoa, was sentenced by the Honorable Pamela L. Reeves, Chief U.S. District Judge for the Eastern District of Tennessee at Knoxville. Cook was sentenced to 51 months in prison, followed by five years of supervised release.
On July 31, 2019, following a two-day trial, a jury convicted Cook of presenting a fictitious obligation and submitting a false claim to the United States. At trial, the jury heard testimony that, in October of 2017, Cook attempted to deposit a false “bill of exchange,” with a face value of $1 million, to the Regions Bank branch in Alcoa. In support of the “bill of exchange,” which had the appearance of a bank check, Cook presented fictitious documents purporting to show that she possessed Treasury bonds worth more than $100 billion. The jury also heard testimony that, in January 2017, Cook filed a fraudulent federal tax return through which she sought a tax refund of more than $251,000. In addition, the jury learned that Cook had been convicted in 2006 for multiple counts of defrauding the United States through false tax returns, using personal information of indigent individuals receiving assistance from Cook’s faith-based organization, Sheep Ministries, Inc.
“The sentence imposed by the Court is the maximum under this defendant’s sentencing guidelines, which reflects this office’s and the Court’s view regarding the seriousness of the defendant’s fraudulent conduct,” said U. S. Attorney J. Douglas Overbey. “The prosecution of individuals like this defendant and the lengthy sentence imposed serve to protect our banking institutions and their depositors and deter others from engaging in similar fraudulent conduct in the Eastern District of Tennessee.”
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Cook include the U.S. Department of Treasury, Office of Inspector General, the Internal Revenue Service, U.S. Secret Service, and the Alcoa Police Department.
Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States at trial.
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A Florida Man Alleged to Have Terrorized an Underage Victim Online Indicted on Child Pornography, Enticement, and Cyberstalking ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Andrew Lynch, a/k/a Gregory O’Neil, 30, of Crystal River, Florida, with production and receipt of child pornography, enticement of a minor, and cyberstalking. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life in prison, and a fine of $250,000.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendant used Facebook to engage in sexual conversations and obtain sexually explicit images from Victim 1 who was under the age of 18. Lynch then engaged in sextortion, using those conversations and images to coerce Victim 1 into sending additional explicit pictures, videos, and engage in sexual video chats.
The defendant began communicating with Victim 1, who was 13 years old, on Facebook in late April 2018. After initially refusing to send Lynch nude photos, Victim 1 eventually sent both photos and videos because the defendant threatened to send messages to her family and friends. Lynch continued to coerce Victim 1 into sending photos and videos through the use of threats for approximately three weeks.
The defendant is being detained in Florida and will be returned to the Western District of New York at a later date for arraignment.
The indictment 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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38 Indicted in Massive Methamphetamine Case Crossing Multiple Pennsylvania CountiesRead the Press Release
JOHNSTOWN - Thirty-eight residents of Centre, Clearfield, Clinton and Erie Counties in Pennsylvania have been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, money laundering, and unlawful possession of firearms, United States Attorney Scott W. Brady announced today. The defendants were arrested Tuesday by federal, state and local law enforcement.
"Methamphetamine presents a clear and present danger to the safety and well-being of our western Pennsylvania communities," said U.S. Attorney Brady. "This indictment represents the largest drug investigation and prosecution in the history of Clearfield County, and we have successfully dismantled an organization bringing kilo quantities of meth from Atlanta for distribution throughout northcentral PA. I want to thank DA Sayers for his partnership, and for his leadership in dismantling drug organizations that would come to Clearfield and poison our friends and neighbors."
"DEA Pittsburgh is proud of the partnership with the Pennsylvania State Police and ATF," said Paris Pratt, Assistant Special Agent in Charge of the Drug Enforcement Administration. "Even during this COVID-19 pandemic, we’ve worked diligently on this crystal methamphetamine case in Clearfield and Erie counties."
"This was a great team effort between the Pennsylvania State Police, the Drug Enforcement Administration, the United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives," said Major Stephen K. Eberle of the Pennsylvania State Police. "For the past eighteen months Troopers and agents involved with this investigation worked tirelessly to identify and dismantle a large and well organized network responsible for the distribution of methamphetamine throughout central and northwestern Pennsylvania. The Pennsylvania State Police and its law enforcement partners remain committed to combating this type of illegal drug trade plaguing our communities."
"Today is a great day for Clearfield County thanks to the hard work of US Attorney Brady, his staff, the DEA, the ATF and the Pennsylvania State Police," Clearfield County District Attorney Ryan P. Sayers said. "This is hopefully the first of many operations and partnerships to combat the drugs that are plaguing the county."
The ten-count Indictment, returned on May 19 and unsealed today, named:
John Christopher Bisbee, 40, of Erie, Pennsylvania;
Ronald Bean, 55, of Winburne, Pennsylvania;
Kierston Bell, 32, of Clearfield, Pennsylvania;
Jonathan Bierly, 48, of Loganton, Pennsylvania;
Alexis Brolin, Jr., 51, of Allport, Pennsylvania;
Tammie Brolin, 52, of Allport, Pennsylvania;
Toby Lee Coker, 35, SCI Albion;
John Cyphert, 59, of Centre Hall, Pennsylvania;
Timothy Ferguson, 32, of Philipsburg, Pennsylvania;
Nicole Gaines, 40, of Clearfield, Pennsylvania;
Amber Gallaher, 28, of Woodland, Pennsylvania;
Brian Gidney, 46, of Mineral Spring, Pennsylvania;
Davin Gower, 26, of Morrisdale, Pennsylvania;
Mark Hackett, 32, of Woodland, Pennsylvania;
Shane Hoover, 28, of Morrisdale, Pennsylvania;
David Klanish, 49, of Philipsburg, Pennsylvania;
Andrew Knepp, 42, of Clearfield, Pennsylvania;
Michael Lamb, 45, of Morrisdale, Pennsylvania;
Chad Lawhead, 47, of Clearfield, Pennsylvania;
Brittany Luzier, 26, of Clearfield, Pennsylvania;
Logan Mactavish, 37, of Clearfield, Pennsylvania;
Evarie Magee, 36, of Erie, Pennsylvania;
Keegan McChesney, 22, of Osceola Mills, Pennsylvania;
John McKinney, 51, of Hyde, Pennsylvania;
Robert Morgret, 56, of Avis, Pennsylvania;
Jared Nyman, 22, of Lock Haven, Pennsylvania;
Robert Nyman, 58, of Mill Hall, Pennsylvania;
Timothy Perry, 37, of Erie, Pennsylvania;
Jennifer Quick, 46, of Morrisdale, Pennsylvania;
Joshua Quigley, 41, of Woodland, Pennsylvania;
Dennis James Rauch, 35, of Clearfield, Pennsylvania;
Joanna Shylock, 32, of PO Box 5, Houtzdale, Pennsylvania;
David Richard Smith, 43, of Sandy Ridge, Pennsylvania;
Jeffrey Swanson, 50, of Houtzdale, Pennsylvania;
Jessica Szymecki, 36, of Erie, Pennsylvania;
Cassandra Wallace, 35, of Woodland, Pennsylvania;
Miranda Williams, 46, of Phillipsburg, Pennsylvania; and
Shawn Workman, 41, of Brownsville, Pennsylvania.
John Christopher Bisbee and Alexis Brolin, Jr. are charged at Count One with participating in a continuing criminal enterprise as principal administrator that involves 1,000 grams or more of methamphetamine or 10 kilograms or more of a mixture and substance containing a detectable amount of methamphetamine, from July 2019 to June 2020. The statute calls for a mandatory sentence of life in prison.
The Indictment charges all defendants, with the exception of Evarie Magee, with Count Two, conspiring to distribute and possess with intent to distribute methamphetamine or a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, from July 2019 to June 2020, in the Western District of Pennsylvania. The statue calls for a mandatory minimum sentence of 10 years in prison.
John Christopher Bisbee, Alexis Brolin, Jr., Jonathan Bierley and Evarie Magee are charged at Count Three with conspiracy to commit money laundering from July 2019 to June 2020. The statute calls for a maximum sentence of 20 years in prison.
Alexis Brolin, Jr. is charged at Count Four, unlawful possession of a firearm or ammunition by a convicted felon in and around and between July 2019 and April 4, 2020. He is also charged at Count Five, Possession of a firearm in furtherance of a drug trafficking crime in and around and between July 2019 and April 4, 2020. The statutes call for a maximum sentence of 10 years in prison for the felon in possession charge and a minimum sentence of five years in prison for possession in furtherance of a drug crime charge.
Dennis James Rauch is charged at Counts Six and Seven with unlawful possession of a firearm or ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime, in and around March 2020. He is also charged with Count Ten with Possession with intent to distribute and/or distribution of methamphetamine or a mixture and substance containing a detectable amount of methamphetamine on March 14, 2020. The statutes call for a maximum sentence of ten years of incarceration and a minimum sentence of five years of incarceration, respectively.
Toby Lee Coker is charged at Count Eight with possession with intent to distribute and/or distribution of methamphetamine or a mixture and substance containing a detectable amount of methamphetamine on February 20, 2020. The statute calls for a maximum sentence of 30 years of incarceration.
Mark Hackett is charged at Count Nine with possession with intent to distribute and/or distribution of methamphetamine or a mixture and substance containing a detectable amount of methamphetamine on December 18, 2019. That statute calls for a mandatory minimum sentence of five years of incarceration.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police led the investigation leading to the Indictment in this case. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
11 June 2020
York Man Sentenced to Four Years’ Imprisonment for Firearm OffenseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 9, 2020, U.S. District Court Judge Matthew W. Brann sentenced Robert Carl Eaton, III, age 26, of York, Pennsylvania, to 48 months’ imprisonment for unlawful possession of a firearm.
According to United States Attorney David J. Freed, Eaton pleaded guilty to a felony indictment admitting that he possessed a Smith and Wesson 9mm loaded firearm as a convicted felon on October 24, 2017, in York County. Eaton was ordered to pay a $400 fine and serve three years of supervised release after his four-year prison term.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York County Drug Task Force. Assistant United States Attorney James T. Clancy prosecuted the case.
This case was 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.
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Webb City Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Webb City, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Newton County, Missouri.
Aaron S. Sutten, 35, was sentenced by U.S. District Judge M. Douglas Harpool to 13 years and four months in federal prison without parole.
On Oct. 16, 2019, Sutten pleaded guilty to participating in a conspiracy to distribute methamphetamine in Newton County from May 19 to Aug. 11, 2018.
Sutten was arrested on Aug. 11, 2018, when he met with co-defendant Shawna M. Smith, 28, of Joplin, at a local hotel. Officers contacted Sutten and Smith in the parking lot. They searched Sutten’s car and found approximately 83.66 grams of methamphetamine and 3.63 grams of black tar heroin concealed in a backpack sitting on the bench seat. They searched Smith’s car and found approximately 23.38 grams of methamphetamine and a digital scale within a purse.
Officers searched Smith’s hotel room, which was occupied by co-defendant Kiley R. McDonald, 30, of Joplin. Officers found a large plastic bag containing approximately 146.39 grams of methamphetamine on the bed with McDonald. They also found three mobile phones, drug paraphernalia, and a wireless camera RF detector (commonly used by drug traffickers to check suspected informants for covert surveillance equipment).
Sutten is the third and final defendant to be sentenced in this case. McDonald was sentenced on Feb. 11, 2020, to eight years in federal prison without parole. Smith was sentenced on March 11, 2020, to three years in federal prison without parole.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Byron H. Black. It was investigated by the Oklahoma Highway Patrol, the Missouri State Highway Patrol, the FBI, and the Joplin, Mo., Police Department.
Waterbury Felon Admits Possessing Handgun While on Federal Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DESI WILLIAMS, 39, of Waterbury, pleaded guilty today to possession of a firearm as a convicted felon, and while he was on supervised release following a prior federal conviction for the same offense.
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 the afternoon of January 28, 2019, Waterbury Police officers attempted to stop a car Williams was driving at the intersection of Brass Mill Drive and Union Street for motor vehicle violations. When an officer approached the car on foot, Williams accelerated and fled from the scene. During a subsequent pursuit, Williams rammed three police vehicles before crashing his car into a utility pole on Walnut Street. Williams ran from the car, jumped over a fence and was eventually apprehended on Ives Street. A search of Williams’s car revealed a loaded Smith & Wesson .22 caliber revolver.
In 2016, Williams was convicted in federal court of possession of a firearm by a convicted felon, and he was on federal supervised release in January 2019. Prior to 2016, Williams was convicted in state court of felony robbery, burglary and failure to appear offenses.
When he is sentenced, Williams faces a maximum term of imprisonment of 10 years, and additional penalties for violating the conditions of his supervised release. A sentencing date is not scheduled.
Williams has been detained since January 28, 2019.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterbury Police Department. This case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
This prosecution has been brought through 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.
Washington State Man Charged with Smashing Police Car WindowRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware announced today that a criminal complaint was issued on Saturday, June 6, 2020, charging Adrian Wood, 21, of Washington State, with engaging in a civil disorder that obstructed, impeded, or interfered with a law enforcement officer’s lawful duties. If convicted, Wood faces a statutory maximum punishment of up to five years in prison.
The criminal complaint alleges that, beginning in the afternoon of May 30, 2020, protesters gathered in downtown Wilmington in recognition of George Floyd’s death in Minneapolis, Minnesota. Protest participants marched in and around Wilmington, including onto Interstate Highway I-95 where they blocked traffic moving in both directions. Later in the evening, a number of persons damaged and looted commercial businesses on Market Street, including restaurants, bars, retail stores, and at least one sporting goods store. Defendant Wood was observed throwing a brick through the back window of a Wilmington Police Department (WPD) marked police car that was being operated by a WPD officer at the time of the incident. Woods ultimately surrendered to police.
U.S. Attorney Weiss commented on the issuance of the criminal complaint, “In recent days, protestors throughout Delaware have lawfully exercised their First Amendment rights in sympathy with those seeking criminal justice reform. But peaceful protest does not extend to the lawless destruction of private or public property. Thankfully, the defendant’s violent actions did not result in physical harm to the WPD officer driving the police car attacked by the defendant. I commend WPD’s collaboration with the FBI and their efforts to quickly identify and bring the defendant to justice.
“We appreciate the continued partnership and support of the U.S. Attorney’s Office and the Federal Bureau of Investigation,” said Wilmington Police Chief Robert J. Tracy. “I am glad that none of our officers were injured, and that our collaborative, investigative efforts have been successful in holding this individual responsible for his actions.”
“The cornerstone of America is built on the rights of its citizens to peacefully assemble and have their voices heard,” said FBI Special Agent in Charge Jennifer Boone. “But we cannot allow violence committed by those who try to take advantage of peaceful demonstrations to pursue their own agendas to stand. Together with our partners, we will not let anyone use violence to silence a community and we encourage anyone with information or evidence of violence to submit a tip at fbi.gov/violence.”
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Vancouver Man Charged with Securities Fraud and Conspiracy for Impersonating President of Penny Stock CompanyRead the Press Release
BOSTON – A resident of Vancouver, Canada, was charged yesterday in connection with a pump-and-dump scheme involving a penny stock company for which he impersonated the company’s president—an otherwise fictitious individual—and established a website containing false and misleading statements about the company’s purported business.
Shane Schmidt, 52, was charged in a criminal complaint unsealed today with one count of securities fraud and one count of conspiracy to commit securities fraud. Schmidt is believed to currently be in Canada.
According to the complaint, beginning in or about December 2018, Schmidt purported to be “John Scott,” the sole director and officer of the company Sandy Steele Unlimited, Inc. (“SSTU”). Acting as John Scott, Schmidt provided fraudulent information to the stock quotation service OTC Markets, including fake documents purporting to reflect John Scott’s authorized takeover of SSTU and a fake passport for John Scott, bearing Schmidt’s picture. Schmidt also established a website for SSTU that described SSTU’s purported heated garment business, but which used false and misleading pictures of products for sale by other manufacturers from other websites. Schmidt allegedly took these steps in order to enable SSTU’s stock to trade via OTC Markets, to generate interest in the stock, and to share in the proceeds of stock sales, which he later did. At or about the same time as a boiler room campaign promoted the stock in the fall of 2019, SSTU’s stock price increased dramatically as investors purchased it, before later precipitously falling.
The securities fraud charge provides for a sentence up to 20 years in prison, three years of supervised release and a fine of $5 million. The conspiracy to commit securities fraud charge provides for a sentence up to five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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 Office made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Securities and Financial Fraud Unit 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.
United States Files Action to Forfeit Waltham Home Used to Facilitate Illegal ExportsRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action against a Waltham home that was the former residence and business location of a couple previously indicted in connection with a scheme to smuggle goods out of the United States and to supply services to Syria. The United States also seized the U.S. website of the Syrian-based company Electronic Katranji Trading (“EKT”), ekt2.com, on probable cause that it was used to facilitate the illegal export of merchandise from the United States.
The Waltham home, located at 10 Juniper Hill Road, is the former residence of Anni Beurklian, a/k/a Anni Ajaka (“Beurklian”), a naturalized U.S. citizen from Lebanon and her husband, Antoine Ajaka, a/k/a Tony Ajaka (“Ajaka”), a lawful permanent resident from Lebanon. The couple operated Top Tech US Inc. (“Top Tech”), a U.S. company, from the Waltham home. Beurklian, Ajaka and Top Tech were indicted in March 2018 on conspiracy to violate U.S. export laws and regulations, conspiracy to defraud the United States, smuggling U.S. goods out of the United States, illegally providing services to persons located in Syria, mail fraud, conspiracy to obstruct justice and obstruction of justice.
While engaged in plea negotiations with the U.S. government, Beurklian and Ajaka fled the United States in 2018 to avoid prosecution, and are believed to be in Syria or Lebanon.
As alleged in the complaint, from 2014 and continuing until the couple fled the United States, Beurklian and Ajaka operated an export business, Top Tech, from the Waltham home. The couple used the home to procure goods, including electronics, computer equipment and electrical switches, from U.S. companies and exported those goods to various countries, including Lebanon, Egypt and China, in violation of U.S. law.
One of their customers was Amir Katranji (“Kantranji”), a citizen of Syria who operates and manages EKT. In 2007, EKT and its founder, Mohammad Katranji, Amir Katranji’s father, were added to the Department of Commerce’s Entity List because the U.S. government had determined that EKT and Mohammad Katranji were involved in activities related to the acquisition, attempted acquisition, and/or development of improvised explosive devices, which were being used against U.S. and Coalition troops in Iraq and Afghanistan.
Ajaka and Beurklian allegedly did business with Katranji and supplied U.S. origin goods to EKT and its subsidiary companies using Top Tech and the Waltham home. Ajaka and Beurklian were aware that Katranji operated a business in Syria and that they were providing services to Katranji and his Syrian company, EKT. It is alleged that pursuant to instructions Katranji provided, Beurklian would, contrary to law, export electronics, computer equipment and electrical switches from the Waltham home, misidentifying the purchaser or end user and falsely understating the value of the goods, thus avoiding the triggering of reporting and/or licensing obligations for exports under U.S. customs laws.
In a related action, the U.S. Attorney’s Office has obtained a seizure warrant for the website domain, ekt2.com, and related email domain @ekt2.com. EKT used the domain to facilitate the shipment of goods in violation of U.S. export laws. A banner on the website now informs the public that the website has been seized by ICE – Homeland Security Investigations.
Katranji, who operates and manages EKT, is also named as a defendant in the criminal indictment with Ajaka and Beurklian.
The civil forfeiture action and website seizure are pursuant to Title 19 of the United States Code, which provides that property used to facilitate the exporting or sending of merchandise from the United States contrary to law shall be seized and forfeited to the United States.
In July of 2018, the U.S. Department of the Treasury designated EKT, Katranji, Beurklian and Ajaka as Weapons of Mass Destruction Proliferators pursuant to Executive Order 13382. Accordingly, it is illegal for any U.S. person to do business with them. These designations and sanctions were imposed against EKT, Katranji, Beurklian, and Ajaka in coordination with similar actions by the French government based upon evidence that EKT was involved in the development of chemical weapons used by the Syrian Government.
United States Attorney Andrew Lelling; Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigation, Boston Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The criminal case was investigated by HSI, FBI, Department of Commerce, Office of Export Enforcement, Boston Field Office and Defense Criminal Investigative Service, Northeast Field Office. The civil forfeiture action and seizure warrant are being prosecuted by Assistant U.S. Attorney Carol E. Head of Lelling’s Asset Recovery Unit. The criminal case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann, Chief of Lelling’s National Security Unit.
The details contained in the civil forfeiture complaint are allegations.