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12 June 2020
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.
U.S. Attorney, FBI Announce $100,000 Reward in Cold CaseRead the Press Release
KANSAS CITY, KAN. – The FBI is offering a $100,000 reward for information leading to the arrest and conviction of anyone responsible for the death of Alonzo Brooks. Brooks’ body was found in a creek in La Cygne, Kan., on May 1, 2004.
U.S. Attorney Stephen McAllister and FBI Special Agent in Charge Timothy Langan announced the reward during a press conference here today. McAllister and the FBI reopened the investigation over a year ago. They have reviewed evidence going back 16 years, re-interviewed many witnesses who attended a party at a farmhouse where Brooks was last seen alive, interviewed new witnesses and collected all available physical and forensic evidence.
“We are investigating whether Alonzo was murdered,” McAllister said. “His death certainly was suspicious, and someone, likely multiple people, know(s) what happened that night in April 2004. It is past time for the truth to come out. The code of silence must be broken. Alonzo’s family deserves to know the truth, and it is time for justice to be served.”
“There are many unanswered questions that surround Alonzo’s death,” Langan said. “Someone knows something and we are hopeful that with the passage of time and this significant reward this renewed effort will produce results and provide closure for the Brooks family.”
The FBI is investigating Brooks’ death as a potential racially-motivated crime. Brooks, who was 23 years old at the time he died, was one of only three African-American men at the party he attended with approximately 100 people at a farmhouse on the outskirts of La Cygne. Brooks, who lived in Gardner, Kan., rode to the party with friends, but they left before him, and Brooks eventually had no ride home.
When Brooks failed to come home the next day, his family and friends contacted the Linn County Sheriff’s Department.
From the beginning, there were rumors that Brooks had been the victim of foul play. Some said Brooks may have flirted with a girl, some said drunken white men wanted to fight an African-American male, and some said racist whites simply resented Brooks’ presence.
After the party, two troubling facts were indisputable: Alonzo could not be found; and no one who attended the party would admit to knowing what happened to him.
According to reports at the time, the Sheriff’s Department and other law enforcement agencies searched areas around the farmhouse, including parts of nearby Middle Creek, but did not find Alonzo.
After Alonzo had been missing for almost a month, a group of his family and friends organized a search. They began on the road near the farmhouse and walked the two branches of Middle Creek. In just under an hour, they found Alonzo’s body, partially on top of a pile of brush and branches in the creek.
Because Alonzo died in 2004 and because of the lapse of time between his disappearance and discovery of his body, forensic analysis of the physical evidence at the time was limited. The official autopsy performed in 2004 did not determine a cause of death.
“I have stood under the trees on the bank of Middle Creek where Alonzo’s body was found,” McAllister said. “It is a quiet place of profound sadness to one who knows its history, but no answers are there. I am convinced, however, that there are people who know the answers, people who have been keeping terrible secrets all these years and bearing a horrible burden. We are asking one or more of them to come forward now and to lay down that burden at last, so that we can ease a family’s suffering, and serve the cause of justice.”
This reward is being offered for information that leads to the arrest, prosecution and conviction of the individual or individuals that may be responsible for Alonzo’s death. Anyone with information is encouraged to call the FBI at 816-512-8200 or 816-474-TIPS or submit a tip online at fbi.tips.gov
U.S. Attorney Mike Stuart Welcomes Three New Prosecutors from Across the CountryRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Mike Stuart announced that three new Assistant U.S. Attorneys (AUSAs) have joined his team -- Ryan Blackwell, Courtney Cremeans and Nick Miller. The AUSAs took the Oath of Office before Senior United States District John T. Copenhaver, Jr. today.
“From right here in Almost Heaven West Virginia to the hills of Tennessee to the surf and sun of southern California, we are building and restocking the U.S. Attorney’s Office for the Southern District of West Virginia with a remarkable team of talent from across the nation,” U.S. Attorney Mike Stuart said. “These new prosecutors have hit the ground running. We are excited that each of them has joined our team.”
Blackwell is a graduate of the Cumberland School of Law and East Tennessee State University. Before joining the U.S. Attorney’s Office, he was a prosecutor in the Third Judicial District Attorney’s Office in Hawkins County, Tennessee.
Cremeans is a graduate of New York Law School and West Virginia University. She was previously an Assistant Prosecuting Attorney in the Cabell County Prosecuting Attorney’s Office.
Miller is a graduate of the University of San Francisco School of Law and its undergraduate school. For the past nine years, he was a Deputy District Attorney in the Orange County District Attorney’s Office in California.
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U.S. Attorney Charges Middletown Man with Sexual Exploitation of MinorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), announced today the arrest of JONATHAN WEISS, a/k/a “Ian_Jameson.” WEISS is charged with communicating with three different underage victims online and directing them to take sexually explicit images and send them to WEISS. WEISS was arrested this morning and presented today before U.S. Magistrate Judge Judith C. McCarthy in Manhattan federal court and detained.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Jonathan Weiss’s alleged crimes are abhorrent and predatory. Using a common social media app, Weiss allegedly sexually exploited three 13-year-olds. We will continue to work with our partners at Homeland Security Investigations to vigorously investigate and prosecute defendants who prey on children.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Jonathan Weiss allegedly posed as a minor and directed his teenage victims to take and send sexually explicit photographs to him through Snapchat. It is horrific for anyone to prey on our most vulnerable. HSI New York’s Child Exploitation Investigation Unit is resolute in the pursuit of alleged predators lurking within our communities, and we will continue to work with our partners in the U.S. Attorney’s Office for the Southern District of New York to protect our community from predators seeking to pull them into their dark, evil world.”
According to the Complaint[1] filed yesterday in White Plains federal court and unsealed today:
In September 2019, WEISS, a/k/a “Ian_Jameson,” communicated online via Snapchat with a 13-year-old minor (“Victim-1”) and directed Victim-1 to take and send sexually explicit photographs of Victim-1 to WEISS. WEISS engaged in the same type of activity with another 13-year-old minor (“Victim-2”) in August 2019 and a third 13-year-old minor (“Victim-3”) in May 2020.
During his communications with his victims, WEISS utilized the Snapchat screen name “Ian_Jameson” and posed as a minor. WEISS allegedly told Victim-1 that if she did not send more nude pictures to WEISS, he would send the pictures she had already sent to others. In response to the threats to send her pictures to others, Victim-1 “blocked” “Ian_Jameson” on Snapchat. Shortly thereafter, people began telling her that they had received her nude images.
There may be more victims of this alleged conduct. If you have information to report, contact Homeland Security Investigations through its toll-free Tip Line at 1-866-DHS-2423 or by completing its online tip form. Both are staffed around-the-clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing-impaired users can call TTY 802-872-6196.
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WEISS, 29, of Middletown, New York, is charged with three counts of sexual exploitation of a minor, each carrying a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the efforts of Homeland Security Investigations, the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office in Orange Park, Florida, and the Longview Police Department in Longview, Texas, in connection with this investigation. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charges 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 description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Men Sentenced for Trafficking Multiple Kilograms of Cocaine for Mexico-Based OrganizationRead the Press Release
RALEIGH, N.C. – Two men with ties to a Mexican Drug Trafficking Organization, one residing in Graham, North Carolina and the other in Brownsville, Texas were sentenced today for their involvement in a Conspiracy to Distribute Cocaine and Marijuana.
Ramon Avila Davila, 35, and Irwin Abraham Baca, 31 were named in a three-count Superseding Indictment filed on April 9, 2019. Count 1 charged each defendant with Conspiracy to Distribute and Possession with Intent to Distribute 5 Kilograms or More of Cocaine and a Quantity of Marijuana. Count 2 charged Davila with Distribution of 500 Grams or More of Cocaine and a Quantity of Marijuana, Aiding, Abetting, and count 3 charged him with Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
On September 16, 2019, Baca pled guilty to Count One, and on December 11, 2019, Davila pled guilty to all three counts. Today, Baca was sentenced to 60 months in federal prison. Davila received a sentence of 160 months.
Davila and Baca were part of a drug trafficking organization based in Mexico. Davila resided in Graham, North Carolina, and distributed cocaine, methamphetamine, and marijuana in Eastern North Carolina. Baca regularly transported drugs and currency for the drug trafficking organization, and he also attempted to collect money for Davila.
On March 8, 2017, Baca was stopped for a traffic violation on Interstate 10 between San Antonio and Houston, Texas. Agents searched the vehicle and found four kilograms of cocaine. Following his arrest, Baca stated he had transported unspecified quantities of cocaine to North Carolina five times in the past.
On August 16, 2017, Baca was stopped in Houston after he exited a bus. Officers subsequently searched Baca’s bag and found $84,005 in U.S. currency. Upon questioning, Baca said the money did not belong to him, and that he had been paid $3,000 for transporting the money.
On December 18, 2017, agents seized 22 pounds of marijuana from Davila on its way to a confidential informant (CI). The CI indicated his source of supply was Davila, and he had received marijuana from Davila for the prior two years. Agents subsequently used the CI to make a controlled purchase of marijuana and cocaine from Davila.
On February 20, 2018, Davila was seen leaving his residence in Graham. Shortly thereafter, Davila was stopped for speeding. A search of his vehicle found 8 pounds of marijuana.
Following his arrest, investigators searched three residences associated with Davila. In a residence on Deep Creek Church Road in Burlington, North Carolina, officers found 457.1 grams of methamphetamine behind a void in the wall and a kilogram press with cocaine residue. Davila admitted that he had recently pressed five kilograms of cocaine. Officers then searched a Graham Street address in Burlington attributable to Davila and found 43 pounds of marijuana in the attic. Lastly, a search of his residence in Graham produced $14,670 in U.S. currency, a small amount of marijuana, and a .40 caliber handgun in the master bedroom.
In March 2018, Baca continued to contact the CI in an attempt to collect money owed to Davila for the marijuana and cocaine purchased on February 16, 2018. Agents subsequently determined Baca was staying at a local hotel in Laurinburg, North Carolina, and began surveillance there.
On March 22, 2018, officers searched Baca’s room and found cocaine. Agents then searched another residence in Maxton, North Carolina and seized approximately eight kilograms of cocaine that had been hidden in hollowed-out batteries, as well as more than $193,000 in currency.
Based on the above, between 2017 and 2018, Baca was accountable for almost 30 kilograms of cocaine and 2.5 kilograms of marijuana. Davila was accountable for more than 14 kilograms of cocaine, 457.1 grams of methamphetamine, and 41.5 kilograms of marijuana. Davila was a manager of criminal activity that involved five or more participants and he maintained premises for his controlled substance activities and imported drugs into the United States. Lastly, Davila possessed a firearm in furtherance of his drug trafficking crimes.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Drug Enforcement Administration (DEA), the Robeson County Sheriff’s Office, the Houston Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigated this case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00112-BO.
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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.
Two Individuals Charged with Trying to Steal Cash from Chicago ATMRead the Press Release
CHICAGO — A man and a woman have been charged in federal court with attempting to steal cash from an automated-teller machine on the South Side of Chicago last week.
In the early morning hours of June 2, 2020, PARIS MICKLE and TAHKISHA HODGE, along with other unidentified individuals, forcibly removed the ATM from its enclosure in the drive-through area of a PNC Bank branch in the 8700 block of South Cottage Grove Avenue in Chicago’s Chatham neighborhood, according to a criminal complaint filed in U.S. District Court in Chicago. The pair then unsuccessfully attempted to break into the machine, with Mickle using a blowtorch and Hodge at one point driving a vehicle with a rear chain connected to the ATM, the complaint states. Chicago Police officers arrived at the scene and arrested Mickle and Hodge after brief chases, the complaint states.
The complaint charges Mickle, 29, of Madison, Wisc., and Hodge, 35, of Chicago, with one count of conspiracy to commit bank theft. An initial federal court appearance for Hodge was held on June 10, 2020, before U.S. Magistrate Judge M. David Weisman, while an initial federal court appearance for Mickle has not yet been scheduled.
The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges. The government is represented by Assistant U.S. Attorney Prashant Kolluri.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. sentencing guidelines.
Two Former EarthWater Executives Plead Guilty for Investment Fraud Scheme Targeting Elderly VictimsRead the Press Release
Two former executives of EarthWater Limited (EarthWater), a Dallas-based company, have pleaded guilty to fraud and money laundering charges for their role in a multi-million dollar high-yield investment fraud scheme that targeted elderly victims.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group in Washington, D.C., made the announcement.
John Mervyn Price, 64, of Dallas, Texas, pleaded guilty today to one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud, 10 counts of wire fraud, and one count of money laundering, before U.S. Magistrate Judge Renee H. Toliver of the Northern District of Texas. Price will be sentenced on Oct. 7, 2020, before U.S. District Court Judge Ed Kinkeade.
Cengiz Jan Comu, 59, of Dallas, Texas, pleaded guilty on March 10, 2020, to one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud, 10 counts of wire fraud, and two counts of money laundering, before U.S. Magistrate Judge Toliver. Comu’s sentencing is currently scheduled for July 8, 2020, before Judge Kinkeade.
As part of his guilty plea, Price, who had been EarthWater’s chief operating officer, admitted that, beginning in or about 2013 and continuing through on or about Sept. 30, 2016, he and Comu, who had been EarthWater’s chief executive officer, managed and supervised a scheme to defraud individuals by convincing them to invest in EarthWater under the false pretense that their investment would increase substantially in value in the immediate future. Price further admitted that, in truth and in fact, he and his co-conspirators knew that the proceeds of EarthWater stock sales were not invested in EarthWater as described to investors, but paid out to Price and his co-conspirators to be used for their personal benefit. Price also admitted that Comu lied to investors about being a successful Wall Street veteran and that Comu had, in fact, defrauded EarthWater investors by misusing investor funds for Comu’s personal benefit.
Price also admitted that he and Comu partnered with two stock promoters, Richard Laurence Kadish, 59, of Miami, Florida, and Richard Lawrence Green, 69, of Deerfield Beach, Florida, to sell EarthWater stock and that whenever Kadish, Green or a salesperson that Kadish or Green recruited, made a sale of EarthWater stock to a victim, Comu and Price paid Kadish and Green a commission of approximately 50 percent of the victim’s funds. Price further admitted that, starting in or about 2016, through in or about January 2019, Price also worked directly with another stock promoter, Russell Filippo, 69, of Oklahoma City, Oklahoma, to sell Price’s personal shares of EarthWater stock for approximately 30 percent commission. Price told Filippo that Comu lied about being a successful Wall Street veteran and that Comu had, in fact, defrauded EarthWater investors by misusing investor funds for Comu’s personal benefit. In addition, Price admitted he and Comu had engaged in monetary transactions in excess of $10,000 in funds obtained by defrauding investors through a company called Regus Advisors, Inc.
As part of his guilty plea, Comu similarly admitted that he conspired to obtain EarthWater investor funds through a scheme to defraud in which he made materially false and fraudulent misrepresentations to investors that the majority of their funds would be used to support EarthWater’s operations, when, in fact, the funds were used to pay undisclosed, excessive commissions to those selling EarthWater stock on Comu’s behalf. Comu further admitted that he knowingly engaged in monetary transactions in amounts greater than $10,000 involving investor funds obtained as part of the fraudulent scheme.
In addition to Price and Comu, Kadish, Green, Filippo, and six other defendants have been charged in the Northern District of Texas for their roles in the EarthWater fraud, including Harley E. “Buddy” Barnes, III, 61, of Plano, Texas; Daniel Thomas Broyles Sr., 63, formerly of Malibu, California; Suzanne Aileen Gagnier, 66, of Huntington Beach, California; Joe Edward Duchinsky, 65, of Alhambra, California; Joseph Lucien Duplain, 79, of Murrieta, California; and Donald Andrew Rothman, 72, of Coral Springs, Florida. All of these defendants, except for Kadish and Rothman, were charged by a federal grand jury in a superseding indictment unsealed on Nov. 8, 2019. Kadish was charged by a federal grand jury in an indictment filed on March 5, 2019, and Rothman was charged in an information filed on Sept. 6, 2019. Kadish, Green and Rothman have pleaded guilty and are scheduled to be sentenced on Nov. 18, 2020, before Judge Kinkeade. The remaining defendants are awaiting trial, which is currently set for Jan. 19, 2021, before Judge Kinkeade.
Barnes and Beth Ellen DeGroot, 59, of Plano, Texas, were separately charged by a federal grand jury in the Northern District of Texas with conspiracy to commit wire fraud and bank fraud and obstruction of justice relating to the ongoing investigation into EarthWater, in a superseding indictment returned on March 5, 2020. Barnes and DeGroot are awaiting trial, which is currently set for Oct. 5, 2020, before Judge Kinkeade.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service. Trial Attorneys Christopher Fenton and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
The Department of Justice files Statement of Interest in Support of Equal Treatment for Washington State Church based on recent Supreme Court RulingRead the Press Release
WASHINGTON - The Department of Justice today filed a statement of interest in a Washington State federal court supporting the First Amendment religious freedom claims of a Pierce County church, explaining how a recent Supreme Court decision, South Bay United Pentecostal Church v. Newsom (May 29, 2020), supports the church’s claim.
The statement of interest explains that Washington’s preferable treatment of secular gatherings such as restaurants, taverns, and outdoor protests compared to the restrictions imposed on indoor and outdoor religious services triggers heightened scrutiny under the Constitution.
The statement of interest is part of Attorney General William P. Barr's April 27, 2020 initiative directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
“The protections enshrined in the United States Constitution and the Bill of Rights are enduring, and we must be vigilant in making sure that governments do not unlawfully infringe upon the rights that they protect. First among these rights is the First Amendment’s guarantee that no government in this country may prohibit the free exercise of religion,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Constitution’s protections are especially critical during times of crisis. The United States must remain committed at all times to the right of all people to worship and pray and follow the dictates of their conscience in a manner that respects others and the public health and safety. By doing so, our nation honors the legacy of countless patriots who worked, struggled, fought, suffered, and died to protect our freedom. The Department of Justice will continue its efforts to secure the Constitutional rights of all people in this nation.”
“The department will continue to be vigilant in protecting religious liberty when states and localities exceed constitutional limits,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, who, with Assistant Attorney General Dreiband, is overseeing the Justice Department’s effort to monitor state and local polices relating to the COVID-19 pandemic.
“At a time of uncertainty and anguish in our community, the ability to gather to express one’s faith and seek comfort is a fundamental right,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “Just as we have seen peaceful protestors gathered together and exercising their First Amendment rights, so too must we protect the right of religious institutions such as churches, mosques and temples to gather together and express their faith.”
Two weeks ago, the U.S. Supreme Court issued a ruling regarding California’s reopening plan in South Bay United Pentecostal Church v. Newsom (May 29, 2020). By a 5-4 vote, the Supreme Court declined to temporarily block California’s rules. In their opinions explaining the result, however, each Justice who wrote agreed that even during the COVID-19 pandemic the Constitution requires states to treat houses of worship equally with comparable secular businesses. Chief Justice Roberts concluded that, on the facts of the California case, California “exempts or treats more leniently only dissimilar activities, such as operating grocery stores, banks, and laundromats, in which people neither congregate in large groups nor remain in close proximity for extended periods.” He also noted that the “precise question of when restrictions on particular social activities should be lifted during the pandemic is dynamic and fact-intensive matter subject to reasonable disagreement,” which, when within constitutional bounds is entrusted to the “politically accountable officials of the states.” Justices Kavanaugh, Thomas and Gorsuch would have “grant[ed] the Church’s requested [relief] because California’s latest safety guidelines discriminate against places of worship and in favor of comparable secular businesses.”
In its statement of interest filed today in Haborview Fellowship v. Inslee, the United States explains that the State of Washington “exempts or treats more leniently” precisely the types of activities that Chief Justice Roberts said are appropriate comparators for religious gatherings—specifically, activities that involve people “congregat[ing] in large groups [ ]or remain[ing] in close proximity for extended period,” such as restaurants, taverns, and protests. Because those activities are permitted with social distancing and hygiene measures, the church must be treated the same unless the state can persuasively show that there are material differences between gathering for an extended period in a restaurant or tavern and a house of worship, or between an outdoor protest and an outdoor worship service.
Washington currently permits various restaurants and taverns to operate at 50% of capacity with no total cap on number of patrons, so long as they observe 6-foot social distancing and various hygiene measures. Places of worship, however, are limited to a hard cap of 50 people or 25% of capacity, whichever is less. Outdoor worship services are limited to 100 people. As detailed in the statement of interest, Governor Inslee has placed no limit on total numbers for outdoor protests, only requesting that participants “be safe for themselves and the people around them” by “wearing a mask and . . . distancing as much as you can.”
statement_of_interest.pdfThe Department of Justice Files Statement of Interest in Support of Equal Treatment of Washington State Church Based on Recent Supreme Court RulingRead the Press Release
The Department of Justice today filed a statement of interest in a Washington State federal court supporting the First Amendment religious freedom claims of a Pierce County church, explaining how a recent Supreme Court decision, South Bay United Pentecostal Church v. Newsom (May 29, 2020), supports the church’s claim.
The statement of interest explains that Washington’s preferable treatment of secular gatherings such as restaurants, taverns, and outdoor protests compared to the restrictions imposed on indoor and outdoor religious services triggers heightened scrutiny under the Constitution.
The statement of interest is part of Attorney General William P. Barr's April 27, 2020 initiative directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
“The protections enshrined in the United States Constitution and the Bill of Rights are enduring, and we must be vigilant in making sure that governments do not unlawfully infringe upon the rights that they protect. First among these rights is the First Amendment’s guarantee that no government in this country may prohibit the free exercise of religion,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Constitution’s protections are especially critical during times of crisis. The United States must remain committed at all times to the right of all people to worship and pray and follow the dictates of their conscience in a manner that respects others and the public health and safety. By doing so, our nation honors the legacy of countless patriots who worked, struggled, fought, suffered, and died to protect our freedom. The Department of Justice will continue its efforts to secure the Constitutional rights of all people in this nation.”
“The department will continue to be vigilant in protecting religious liberty when states and localities exceed constitutional limits,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, who, with Assistant Attorney General Dreiband, is overseeing the Justice Department’s effort to monitor state and local polices relating to the COVID-19 pandemic.
“At a time of uncertainty and anguish in our community, the ability to gather to express one’s faith and seek comfort is a fundamental right,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “Just as we have seen peaceful protestors gathered together and exercising their First Amendment rights, so too must we protect the right of religious institutions such as churches, mosques and temples to gather together and express their faith.”
Two weeks ago, the U.S. Supreme Court issued a ruling regarding California’s reopening plan in South Bay United Pentecostal Church v. Newsom (May 29, 2020). By a 5-4 vote, the Supreme Court declined to temporarily block California’s rules. In their opinions explaining the result, however, each Justice who wrote agreed that even during the COVID-19 pandemic the Constitution requires states to treat houses of worship equally with comparable secular businesses. Chief Justice Roberts concluded that, on the facts of the California case, California “exempts or treats more leniently only dissimilar activities, such as operating grocery stores, banks, and laundromats, in which people neither congregate in large groups nor remain in close proximity for extended periods.” He also noted that the “precise question of when restrictions on particular social activities should be lifted during the pandemic is dynamic and fact-intensive matter subject to reasonable disagreement,” which, when within constitutional bounds is entrusted to the “politically accountable officials of the states.” Justices Kavanaugh, Thomas and Gorsuch would have “grant[ed] the Church’s requested [relief] because California’s latest safety guidelines discriminate against places of worship and in favor of comparable secular businesses.”
In its statement of interest filed today in Haborview Fellowship v. Inslee, the United States explains that the State of Washington “exempts or treats more leniently” precisely the types of activities that Chief Justice Roberts said are appropriate comparators for religious gatherings—specifically, activities that involve people “congregat[ing] in large groups [ ]or remain[ing] in close proximity for extended period,” such as restaurants, taverns, and protests. Because those activities are permitted with social distancing and hygiene measures, the church must be treated the same unless the state can persuasively show that there are material differences between gathering for an extended period in a restaurant or tavern and a house of worship, or between an outdoor protest and an outdoor worship service.
Washington currently permits various restaurants and taverns to operate at 50% of capacity with no total cap on number of patrons, so long as they observe 6-foot social distancing and various hygiene measures. Places of worship, however, are limited to a hard cap of 50 people or 25% of capacity, whichever is less. Outdoor worship services are limited to 100 people. As detailed in the statement of interest, Governor Inslee has placed no limit on total numbers for outdoor protests, only requesting that participants “be safe for themselves and the people around them” by “wearing a mask and . . . distancing as much as you can.”
Tacoma, Washington, woman arrested for allegedly setting five police vehicles on fire during Seattle protestRead the Press Release
Seattle - A 25-year-old Tacoma, Washington, resident was arrested this morning on five federal counts of arson for burning five Seattle P0lice vehicles parked in the area of Sixth and Pine in downtown Seattle on Saturday, May 30, 2020, announced U.S. Attorney Brian T. Moran. MARGARET AISLINN CHANNON was taken into custody without incident at her Tacoma residence today. She will appear on the criminal complaint in U.S. District Court in Seattle at 1:00 p.m. tomorrow, June 12, 2020.
“This defendant was captured by multiple cameras using an accelerant, lit like a blowtorch, to start fires in five vehicles -- putting the public at risk and creating the very real possibility of a structure fire amidst the throng of people protesting downtown,” said U.S. Attorney Moran. “I commend the painstaking work of law enforcement using a variety of images to identify the defendant and locate her so she can be held accountable.”
According to the criminal complaint, investigators from the FBI, ATF, and Seattle Police Department reviewed various videos taken of the Saturday arsons, as well as videos taken at a protest Friday evening. CHANNON appears in videos from both days, and tattoos that she has on her hands and arms are clearly visible. Some of the tattoos link CHANNON to a missing person report in Texas in 2019. Ultimately, investigators uncovered CHANNON’s various social media accounts which helped confirm her identity. Investigators determined she had listed addresses first in Seattle and later in Tacoma.
Law enforcement executed a search warrant at CHANNON’s Tacoma residence and confirmed the distinctive tattoos. They also seized clothing and accessories that appear in some of the videos from the arsons.
“The number one mission of the FBI is to protect the American people and uphold the Constitution of the United States. The First Amendment guarantees Americans the right to express their opinions and peacefully protest. What it does not provide is the right to invoke violence under the guise of free speech,” said FBI Special Agent in Charge Raymond Duda of the Seattle Field Office. “In cooperation with our partners, we will work tirelessly to identify, investigate, and prevent individuals who are inciting violence, and coordinate with the United States Attorney's Office to address any federal violations.”
“ATF is the Federal agency primarily responsible for administering and enforcing the criminal and regulatory provisions of the Federal laws pertaining to arson. Arson is a crime of violence,” said ATF Acting Special Agent in Charge Jonathan Blais. “While we stand by every American’s Constitutional right to protest, when someone turns to violence, we will work tirelessly to investigate their crimes. We are working shoulder-to-shoulder with our local, state and federal partners to bring those responsible for actions such as this to justice.”
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Arson is punishable by up to ten years in prison.
The case is being investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Statement of the Department of Justice before the Senate Judiciary CommitteeRead the Press Release
William Hughes
Associate Deputy Attorney General
Craig Carpenito
United States Attorney for the District Of New Jersey
U.S. Department of Justice Joint Statement before the
United States Senate Committee on the Judiciary Washington, D.C.
For a Hearing Entitled
“Covid-19 Fraud: Law Enforcement’s Response to those Exploiting the Pandemic.”
June 9, 2020
Statement of U.S. Attorney Matthew Schneider Regarding Recent Calls to “Defund the Police”Read the Press Release
“All across America, people have rightfully expressed outrage over the senseless murder of George Floyd by marching in protests and demanding change. Some are calling for defunding our police departments. Change is needed, but completely dismantling our law enforcement and criminal justice system will not solve the problems we face, and slashing Michigan law enforcement funds would only harm our communities.
Our problems will only be solved through a spirit of cooperation. Project Ceasefire, for example, is a great illustration of how our community and law enforcement work together to make our streets safer. We need to continue on that track. If Michiganders — especially young people — want to make effective change in police practices, they should strongly consider a career in law enforcement or public service. We want to work alongside you towards a solution.”
Starr County Man Sentenced to Federal Prison, Titus County Man Guilty in East Texas Drug Trafficking OperationRead the Press Release
TEXARKANA, Texas – A 31-year-old Starr County, Texas, man has been sentenced to federal prison for drug trafficking, and a 27-year-old Titus County, Texas, man has pleaded guilty to drug trafficking in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Armando Moreno Jr. pleaded guilty on Feb. 27, 2020, to conspiring to distribute controlled substances and was sentenced to 108 months in in federal prison by U.S. District Judge Robert W. Schroeder III on June 10, 2020. He was also ordered to forfeit $350,000.00 in drug proceeds.
According to information presented in court, Moreno was stopped for a traffic violation on Oct. 29, 2019, in George West, Texas, in Live Oak County. A search of the vehicle revealed almost $350,000.00 in U.S. currency hidden in a secret compartment built into the vehicle. Moreno, traveling with his wife and two children, admitted to conspiring with his co-defendant, Jose Armando Rosales-Bernal and others to distribute cocaine. Moreno described how he had trafficked at least 15 kilograms of cocaine from Mexico to his co-conspirators in Dallas, and that the money hidden in his car was drug proceeds destined for Mexico.
Gerardo Cabrera Ramirez pleaded guilty to conspiring to distribute controlled substances before U.S. Magistrate Judge Caroline M. Craven on June 11, 2020. Ramirez agreed to forfeit $7,500.00 in drug proceeds.
According to information presented in court, Ramirez conspired with Rodolfo Javier Falcon, Eleazar Martinez Reyes, and others to distribute cocaine and methamphetamine. Ramirez admitted that he is personally responsible for distributing more than 500 grams of methamphetamine, which he had obtained from Falcon and Reyes. Specifically, on Sep. 11, 2018, and on Jan. 1, 2019, Ramirez led police on a foot chase and a dangerous vehicle pursuit when officers attempted to stop him while trafficking methamphetamine. Ramirez also admitted that his flight from police in a vehicle recklessly created a substantial risk of death or serious bodily injury to others.
Under federal statutes, Ramirez faces a minimum of 10 years and up to life in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
Operation Dirty Bird is a long-term drug trafficking and money-laundering investigation that has already led to the seizure of more than $500,000.00 in U.S. Currency, almost 40 kilograms of cocaine, more than a quarter kilogram of methamphetamine, nine firearms, and multiple vehicles.
Rosales-Bernal, Julio Villarreal, Falcon, Claudia Claribel Gardea, Jose Geraldo Ornelas-Pineda, Dalia Janes Campos Rosales, and Reyes were previously charged and arrested as a result of this investigation. Ornelas-Pineda has pleaded guilty and has been sentenced. Gardea has pleaded guilty and is awaiting sentencing. Rosales-Bernal, Villarreal, Falcon, Campos Rosales, and Reyes have pleaded not guilty and are awaiting trial. This case is pending in the Texarkana Division of the Eastern District of Texas.
If convicted, Rosales-Bernal, Villarreal, Falcon, Campos Rosales, and Reyes, face a minimum of 10 or 15 years and as much as life in federal prison.
This case is being investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division. In addition, the following agencies have played critical roles in this investigation: the Dallas office of Homeland Security Investigations; the Mesquite, Texas, Police Department SWAT team; the Texas National Guard; the Texas Department of Public Safety, Highway Patrol Division and Aircraft Division; the George West, Texas, Police Department; the 23rd Judicial Drug Task Force in Dickson, Tennessee; and the Mount Pleasant, Texas, Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
St. Charles Man Sentenced to 120 Months in Prison for Possessing with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking OffenseRead the Press Release
St. Louis, Missouri –United States District Judge Catherine D. Perry sentenced Steven Carson, 32, of St. Charles, to 120 months in prison for possessing with the intent to distribute methamphetamine and possession of a firearm in furtherance of that crime.
According to the plea agreement, on July 17, 2019, St. Louis Metropolitan Police Department officers observed a vehicle near Union Boulevard and Bircher Avenue matching the description of a truck that had been reported stolen. As officers attempted to further investigate, the truck sped onto the on-ramp of I-70 East and entered Illinois. A police helicopter successfully tracked the truck as it re-entered St. Louis. The truck then became stuck in a traffic jam near McCree Avenue and South Kingshighway Boulevard, at which point Officers were able to deploy spike strips and disable the truck as it attempted to plow through two nearby passenger vehicles. Carson exited the truck’s driver seat and was detained after a brief foot chase. Carson was arrested in possession of 5.8 grams of methamphetamine and a stolen semiautomatic firearm loaded with an extended ammunition magazine.
This case was diligently investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Jay Redd handled this case for the U.S. Attorney’s Office.
South Bend, Indiana Man Sentenced for Felon in Possession of a FirearmsRead the Press Release
SOUTH BEND - Darnell Williams, age 42, of South Bend, Indiana was sentenced by United States District Court Judge Jon E. DeGuilio for being a felon in possession of one or more firearms, announced U.S. Attorney Kirsch.
Mr. Williams was sentenced to 44 months in prison followed by 2 years of supervised release.
According to documents in this case, Mr. Williams had been involved in selling controlled substances in January and February of 2016. His home was searched by narcotics agents on February 2, 2016 and they located several firearms in his home. Prior to possessing the firearms, Mr. Williams had been convicted of several felony drug offenses.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Gary Police Department. This case was prosecuted by Assistant U.S. Attorney Frank E. Schaffer.
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South Bend, Indiana Man SentencedRead the Press Release
SOUTH BEND - Harry Kinds, age 37, of South Bend, Indiana was sentenced by United States District Court Judge Jon E. DeGuilio for conspiracy to distribute more than 50 grams of methamphetamine, announced U.S. Attorney Kirsch.
Mr. Kinds was sentenced to 130 months in prison followed by 4 years of supervised release.
According to documents in this case, Harry Kinds and another person were dealing methamphetamine together. On October 7, 2019, they were dealing at a hotel on the north side of South Bend. A hotel manager noticed their activities and called police. Police eventually arrested Kinds and the other person, and police recovered cash, drug distribution paraphernalia, and about a pound of methamphetamine. Kinds admitted that he had been buying and selling methamphetamine by the pound, and that he had brought approximately one pound of methamphetamine to the hotel for distribution. Kinds has seven felonies and ten misdemeanors convictions.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with the assistance of the St. Joseph County Police Department and the South Bend Police Department. This case was prosecuted by Assistant U.S. Attorney Joel Gabrielse.
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Somerset Felon Sentenced for Firearms OffenseRead the Press Release
JOHNSTOWN, Pa. – A resident of Somerset, Pa., has been sentenced in federal court to 15 months in prison and three years’ supervised release on his conviction of violating federal firearms laws, U.S. Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kelly B. Shaulis, 51, of Somerset, Pa.
According to information presented at trial, Shaulis illegally possessed 12 rifles, shotguns and ammunition on July 5, 2017 and Dec. 21, 2018. On Dec. 19, 2011, Shaulis was convicted in United States District Court for the Western District of PA, of unlawful possession of a firearm by a convicted felon, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Pennsylvania Office of Attorney General.
Six Members of Atlantic City Drug Trafficking Organization IndictedRead the Press Release
CAMDEN, N.J. – A federal grand jury has indicted six members of an Atlantic City drug-trafficking organization for their roles in the distribution of large amounts of heroin in the Atlantic City area, U.S. Attorney Craig Carpenito announced today.
Terryn Kelsey, 30, Jamaal Marshall, 33, Tyjuan Demarest, 40, Tieyesha Tucker, 26, Blaine Dorsey, 55, and Valarie Lamar, 60, all of Atlantic City, were each charged in a one-count indictment returned June 10, 2020, with conspiracy to distribute or possess with the intent to distribute more than 1 kilogram of heroin. These six individuals, along with 16 others, were previously charged by criminal complaint in June of 2019. They will face arraignment in federal court on a date to be determined.
Thirteen other members of this drug trafficking conspiracy have previously pleaded guilty in this case. The charges against three other defendants remain pending on complaint.
According to documents filed in the case and statements made in court:
Kelsey, Marshall, Demarest, Tucker, Dorsey, Lamar and other members of the drug conspiracy trafficked heroin from Patterson, New Jersey, into Atlantic City throughout the course of the investigation. An investigation led by the FBI used physical and video surveillance, confidential informants, consensual recordings, and two court authorized wiretaps to uncover the operations of this drug trafficking organization. The investigation tracked multiple stamps of heroin being distributed by the defendants, including “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between January 1, 2017 and June 21, 2019, these stamps were associated with 48 deaths and 84 non-fatal overdoses in New Jersey.
The charge in the indictment against Kelsey, Marshall, Demarest, Tucker, Dorsey and Lamar carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and up to a $10 million fine.
U.S. Attorney Carpenito credited special agents of the FBI’s Safe Streets South Jersey Violent Incident and Gang Task Force, Atlantic City Resident Agency, and FBI, Newark Division, under the direction of Acting Special Agent in Charge Douglas Korneski; officers of the Atlantic City Police Department, under the direction of Chief White; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Department, under the direction of Sheriff Eric Scheffler; and the Pleasantville Police Department, under the direction of Chief Sean Riggin, with the investigation leading to the charges. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the N.J. State Police for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the indictment and the original complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Serial child predator sentenced to more than two decades in federal prison for attempted sexual coercion of a minorRead the Press Release
SAVANNAH, GA: A sex offender previously convicted in state courts has been has been sentenced to more than 20 years in federal prison after being captured in a nationwide sting while attempting to commit additional crimes against children.
Benjamin Ray, 40, of Honea Path, S.C., was sentenced to 258 months in prison by U.S. District Court Judge William T. Moore Jr. after pleading guilty to Attempted Coercion and Enticement of a Minor to Engage in Sexual Activity for incidents that occurred in Chatham County, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition, Ray must serve 15 years of supervised release after completion of his prison term. There is no parole in the federal system.
“There will be no more opportunities for this criminal to prey on children,” said U.S. Attorney Christine. “Thanks to the outstanding effort of our law enforcement partners, his days of catch and release in the system of another state are over.”
According to information presented during his sentencing hearing, Ray has a more than 20-year history as a child predator, starting at age 17 when he was convicted of molesting an 8-year-old girl. After a brief prison term he was convicted at age 22 of molesting an 11-year-old girl. After release from custody, Ray repeatedly was convicted of failing to register as a sex offender.
Ray was arrested in 2019 as part of Operation Broken Heart, a nationwide operation conducted by the Internet Crimes Against Children task forces, after Ray held a vulgar online conversation with an undercover law enforcement officer whom Ray believed to be a child. During the subsequent investigation, officers found evidence that Ray was committing crimes with a real child and seeking 14-year-old victims.
“This criminal will be spending more than a year in jail for every year of his life that he has been molesting and preying on children,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Unfortunately, even a 21-and-a-half-year sentence will not restore the innocence of all the children who have fallen victim to this predator.”
Operation Broken Heart led to the arrest of nearly 1,700 suspected online child sex offenders, including two in the Southern District of Georgia. The task forces identified 308 offenders who either produced child pornography or committed child sexual abuse, and identified 357 children who suffered recent, ongoing or historical sexual
During the course of the operation, the task forces investigated more than 18,500 complaints of technology-facilitated crimes targeting children and delivered more than 2,150 presentations on internet safety to over 201,000 youth and adults.
The other Southern District defendant in the operation, Steven Andrew Ross, 30, of Savannah, was sentenced in February to 120 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Attempted Sex Trafficking of a Minor.
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) within the Office of Justice Programs (OJP). For more information, visit the ICAC Task Force webpage at www.icactaskforce.org.
The cases in the Southern District of Georgia were investigated by Homeland Security Investigations and the Savannah Police Department, in conjunction with the Internet Crimes Against Children Task Force, and prosecuted for the United States by Assistant U.S. Attorney Tania Groover.
Schuylkill County Man Sentenced to 14 Years’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rhashean Strange, age 35, of Shenandoah, Pennsylvania, was sentenced on June 10, 2020 by U.S. District Court Judge Robert D. Mariani, to 14 years’ imprisonment for his role in a conspiracy to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, Strange previously pleaded guilty to participating in the conspiracy during 2014 and 2015. Strange admitted that he and others in the conspiracy distributed between one and three kilograms of heroin, which is approximately equivalent to between 40,000 and 120,000 retail bags of heroin. The heroin was obtained from suppliers in Paterson, New Jersey, and Hazleton, Pennsylvania.
Strange, who used the street name “Chicago,” was the leader of the drug conspiracy and possessed firearms in connection with the criminal activity.
Judge Mariani also ordered Strange to serve five years on supervised release following his prison sentence, and to forfeit firearms and his share of cash seized during the investigation.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Shenandoah Police. Assistant United States Attorney Francis P. Sempa 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Rochester Felon Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert E. Tillard, 35, of Rochester, NY, who was convicted of being a felon in possession of a firearm, and to possessing marijuana with intent to distribute it, was sentenced to serve 66 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that on February 25, 2017, Rochester Police officers, having observed a traffic violation, stopped the defendant on Flint Street. Upon stopping, Tillard exited the car and ran. As Tillard ran from the police, he threw a 9mm handgun to the ground. Upon apprehending Tillard, the officers also discovered approximately 56 small plastic baggies of marijuana in his pocket.
In 2008, Tillard was convicted of a drug charge in Monroe County Court. As a result, he is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Project Guardian Update: Two Appear in Federal Court on Gun ChargesRead the Press Release
CHARLESTON, W.Va. -- One man was sentenced and another man pled guilty this week to being felons in possession of a firearm, according to United States Attorney Mike Stuart.
Ronald Lucas, 36, of Craigsville, was sentenced to 48 months in prison. He previously admitted that on May 10, 2019, law enforcement officers with the Nicholas County Sheriff’s Department were serving an arrest warrant at his home in Craigsville for a separate offense. Lucas answered the door wearing an empty nylon holster. When the officers asked where the gun was located, he indicated that it was inside the residence on a bed. When an officer went inside the residence to secure it, a loaded 9 millimeter pistol with a filed off serial number was located and seized. The Nicholas County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Andrew Tessman handled the prosecution.
Akeem R. Dickerson, 28, of Princeton, pled guilty to being a felon in possession of a firearm after admitting that on August 31, 2019, an officer with the Princeton Police Department pulled him over for not wearing his seatbelt while he was driving. During the traffic stop, the officer smelled marijuana. When asked about the marijuana smell, Dickerson admitted that he did in fact have some marijuana in the car and he also admitted that he had a gun. The officer then searched the car with Dickerson’s consent. The officer found a Springfield, model XDS, .45 caliber semi-automatic handgun. Dickerson admitted that he knew he was not supposed to possess any firearms because he was a convicted felon. Dickerson was prohibited from possessing any firearm under federal law because he was previously convicted in 2012 in McDowell County Circuit Court of the felony offenses of voluntary manslaughter and wanton endangerment with a firearm. Dickerson faces up to 10 years in federal prison and a $250,000.00 fine, to be followed by up to three years of supervised release when he is sentenced on September 14, 2020. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
These cases are 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 these cases with support from the Project Guardian partners listed above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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Pitt County Man Sentenced for Possessing a Firearm as a FelonRead the Press Release
RALEIGH, N.C. – A Greenville man was sentenced today to 42 months in prison for possessing a firearm as a felon.
According to court documents, Donnie Devon Adams, Jr., 36, was found in possession of a loaded 9mm handgun during the execution of a search warrant at his home. Greenville Police Officers obtained the search warrant as part of an investigation into a domestic violence incident where Adams allegedly fired a handgun at his girlfriend inside his home on October 1, 2019. Adams had previously been convicted of Second Degree Murder in 2004 in Pitt County Superior Court.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, and Firearms and the Greenville Police Department investigated the case and Assistant U.S. Attorney John Parris prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-cr-00073-BO-1.
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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
Penn Hills Man Sentenced to 7 Years in Prison for Illegally Possessing Heroin and FirearmsRead the Press Release
PITTSBURGH –A former resident of Allegheny County, PA has been sentenced in federal court to seven years (84 months) of imprisonment on his convictions for federal narcotics and firearms offenses, United States Attorney Scott W. Brady announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Antwon Shamar Bonner, age 21, formerly of Penn Hills, who pleaded guilty in January 2020 to a two-count Indictment charging him with possessing heroin with the intent to distribute it and with possessing firearms in furtherance of that drug trafficking crime.
According to information presented to the Court, on July 12, 2019, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives served a search warrant at Mr. Bonner’s residence in Penn Hills, Allegheny County. There, agents located approximately 36 "bricks" (constituting approximately 1,800 individual dosage units) containing mixtures of both heroin and fentanyl, which are scheduled controlled substances under federal law. In connection with his guilty plea, the defendant admitted to possessing those narcotics with the intent to distribute them. In addition to those narcotics, agents seized approximately $2,000 in U.S. currency, four loaded and operational firearms (one of which had an obliterated serial number), assorted ammunition, and high-capacity firearms magazines. In connection with his January 2020 guilty plea, Mr. Bonner admitted to possessing those firearms in furtherance of drug trafficking.
In imposing the 84-month sentence, Judge Horan noted, amongst many other factors, that the Court considered the seriousness of the offenses and the need to deter Mr. Bonner and others from engaging in criminal conduct involving heroin, fentanyl, and firearms.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Mr. Bonner.
Penn Hills Man Sentenced for Possessing HeroinRead the Press Release
PITTSBURGH, PA - A former resident of Penn Hills, Pennsylvania has been sentenced in federal court to 21 months imprisonment and five years supervised release, with the first three months of supervised release to be served on home detention on his conviction of possession with intent to distribute heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nicholas Ranjan imposed the sentence on Joseph McCoullum, 37. .
According to information presented to the Court, in the Spring of 2018, the Western Pennsylvania Opiate Task Force (WPAOTF) was investigating a series of heroin/fentanyl overdoses in the Etna and Shaler areas of Western Pennsylvania. The defendant, Joseph McCoullum, a/k/a "Steele," was identified as a heroin dealer, distributing controlled substances in Penn Hills and Shaler. Through this investigation, law enforcement identified the residence, located at 298 East Pennview Street, as one of McCoullum’s drug distribution locations.
On May 10, 2018, members of the WPAOTF conducted a search at the residence located at 298 East Pennview Street in Pittsburgh. Mr. McCoullum was located inside the residence and law enforcement located, on his person, four bricks of a mixture of mixture of heroin and fentanyl, and two bundles of a cocaine base, in the form commonly known as crack, all of which was packaged for distribution. Additionally, Mr. McCoullum was in possession of two cell phones – a flip phone and a smart phone.
In rendering the sentence, Judge Ranjan noted that a sentence at the high end of the advisory Guidelines Range, with a term of home detention, was necessary to reflect the seriousness of the offense, involving the distribution of heroin and fentanyl, and to provide deterrence to McCoullum as well as others.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The Western Pennsylvania Opiate Task Force, led by the Federal Bureau of Investigation, with the assistance of the Etna Borough Police Department, the Hampton Township Police Department, and the Shaler Township Police Department, conducted the investigation leading to the prosecution of this case.
Owner of Business Consulting Firm Admits Orchestrating Multimillion-Dollar Bank Fraud and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man who founded and owned a business consulting firm admitted today to orchestrating a multimillion-dollar bank fraud and securities fraud scheme operated through that firm, U.S. Attorney Craig Carpenito announced.
Edward Espinal, 44, of Wayne, New Jersey, the chief executive officer of Cash Flow Partners LLC (Cash Flow) pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud and one count of securities fraud.
“Edward Espinal coordinated a vast fraud scheme that lured people into taking out fraudulent loans that his company helped obtain and, in many cases, put that borrowed money into sham investments he also controlled,” U.S. Attorney Carpenito said. “His complex scam tricked numerous investors out of a substantial amount of money, and now he will have to pay for his crimes.”
“This defendant is the quintessential con artist,” Acting FBI Special Agent in Charge Douglas Korneski said. “He played a shell game with other people’s hard-earned money, making promises he never intended to keep, and walking away with ill-gotten gains while leaving them high and dry. Fraudsters like Edward Espinal keep the FBI in business, and we work diligently to bring his type to justice.”
According to documents filed in this case and statements made in court:
The Bank Fraud Conspiracy
Espinal was the founder and chief executive officer of Cash Flow and controlled the company’s operations. From March 2016 through December 2019, Espinal led and directed a bank fraud conspiracy designed to obtain millions of dollars in loans from banks on the basis of false representations. To attract customers, Cash Flow released internet advertisements and held seminars offering to assist customers with low-paying salaries in obtaining loans. These advertisements included promotional videos featuring Espinal and a former telenovela actor. Customers contacted Cash Flow and were routed to the company’s sales department.
Employees in the sales department then encouraged customers to sign up for various loan programs that Cash Flow provided and to enter into contracts with Cash Flow. Under those contracts, employees would help customers obtain loans from banks. The Cash Flow contracts permitted customers to keep a portion of the loan proceeds and customers agreed to provide the remaining percentage of the proceeds to Cash Flow. Cash Flow agreed to pay off the loans on behalf of its customers.
Cash Flow then used false information and fraudulent documents to obtain loans for its customers for which they otherwise would not have qualified, and posed as the customers in communications with the banks.
The Securities Fraud
From July 2016 through September 2019, Espinal obtained more than $5 million in investments from victim investors on the basis of false and fraudulent pretenses and representations.
Espinal solicited investments from prospective customers using a marketing campaign on Spanish language television channels and the internet, the “Cash Flow TV” YouTube page, and live presentations in Cash Flow’s offices and elsewhere. Espinal also solicited investments from individuals who obtained loans through Cash Flow’s bank fraud conspiracy, encouraging loan customers to invest loan proceeds in Cash Flow’s investment program. Once investors agreed to invest in Cash Flow, Espinal issued “promissory notes” to investors that guaranteed monthly investment returns between 1.25 percent and 4 percent. The promissory notes stated that Cash Flow would return investors’ principal either one year from the date of the promissory note, or 60 days after investors demanded payment. Espinal and other Cash Flow employees signed the promissory notes on behalf of Cash Flow.
Espinal made a number of misrepresentations to investors. He told investors that he would pool their funds with the funds of other investors in investments related to real estate, real estate companies, a gold mine in Ecuador, and construction projects in countries outside of the United States. In reality, Espinal used investor funds to pay returns to earlier investors, to pay for personal expenses for himself, his family, and another Cash Flow employee, to perpetuate the bank fraud scheme, and to market the bank fraud and investment scheme to future victims. Espinal falsely claimed that Cash Flow’s purported real estate fund, Cash Flow Capital, was “licensed” by the Securities and Exchange Commission. He guaranteed monthly returns on investment based on the purported proceeds from the sale of properties in Cash Flow’s investment portfolio. In reality, Espinal did not sell Cash Flow properties, so no profits were derived from the sale of Cash Flow properties.
Two other individuals, Raymundo Torres and Jennie Frias, have previously pleaded guilty to their roles in the Cash Flow bank fraud conspiracy and are awaiting sentencing.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The securities fraud counts carry a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Oct. 13, 2020.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
The U.S. Securities and Exchange Commission (SEC) has filed a civil complaint against Espinal based on the allegations underlying the securities fraud charge.
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Acting Special Agent in Charge Douglas Korneski in Newark, with the investigation leading to today’s guilty plea. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio and J. Stephen Ferketic of the U.S. Attorney’s Criminal Division in Newark.
Officer of China’s People’s Liberation Army Arrested at Los Angeles International AirportRead the Press Release
SAN FRANCISCO – Xin Wang, a scientific researcher and officer with the People’s Republic of China’s (PRC) People’s Liberation Army (PLA), was arrested at Los Angeles International Airport (LAX) while attempting to depart the United States for Tianjin, China, and was charged with visa fraud, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to court documents filed today and a complaint which was unsealed on Monday, Wang entered the United States on March 26, 2019, after receiving a multiple entry J1 non-immigrant visa in December of 2018. Wang’s visa application stated that the purpose of his visit was to conduct scientific research at the University of California, San Francisco (UCSF). Wang is alleged to have made fraudulent statements on this visa application. Specifically, in his visa application, Wang stated that he had served as an Associate Professor in Medicine in the PLA, from September 1, 2002 through September 1, 2016.
In reality, when interviewed by officers of Customs and Border Protection (CBP) at LAX on June 7, 2020, Wang provided information that he was, in fact, still currently a “Level 9” technician in the PLA, employed by a military university lab. CBP officers also obtained information that this roughly corresponded with the level of Major, and that Wang had received compensation from the PLA and the China Scholarship Council—in addition to compensation from UCSF—while in the United States. According to court documents, Wang was still employed by the PLA while he was studying in the United States and he made false statements about his military service in his visa application in order to increase the likelihood that he would receive his J1 visa.
Also according to court documents, Wang provided information to CBP that he had been instructed by his supervisor, the director of his military university lab in the PRC, to observe the layout of the UCSF lab and bring back information on how to replicate it in China. CBP received information that Wang had studies from UCSF with him which he was taking to share with his PLA colleagues, and he had sent research to his lab in China via email. Wang similarly told his supervising UCSF professor that he had duplicated some of the work of that professor at the lab in China. Some of the work of the UCSF lab was funded by grants from the United States Department of Health and Human Services, National Institutes of Health (NIH). Wang also wiped his personal phone of WeChat messaging content earlier the morning he arrived at LAX.
Wang is charged with visa fraud, in violation of 18 U.S.C. § 1546(a). If convicted, he faces a maximum statutory penalty of ten years in prison and a fine of $250,000.
Wang made his initial appearance on Monday, June 8, 2020, in the Central District of California before Magistrate Judge Jacqueline Chooljian, and was detained for further proceedings. His next appearance is scheduled for Friday, June 12, 2020, at 10 a.m., before Judge Chooljian, for a detention hearing.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office. The case is being investigated by the FBI.
North Side Man Sentenced to More than 4 Years in Prison for Possessing Heroin and Crack near a Public Housing DevelopmentRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 50 months imprisonment and six years supervised release on his conviction of possession with intent to distribute heroin within 1000 feet of Allegheny Commons, a Pittsburgh Public Housing Authority development, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on William Thomas, 38, formerly of Pittsburgh's North Side.
According to information presented to the Court, on June 9, 2018, at approximately 3:20 am, a City of Pittsburgh police officer noticed a vehicle parked along the side of the road with engine running in the area of Belleau Drive and Belleau Street in North Side Pittsburgh. As the officer approached the vehicle to check on the occupants, the officer smelled marijuana emanating from the vehicle and observed a marijuana cigar in the ashtray of the center console of the vehicle. The two individuals in the vehicle appeared to be unconscious and were initially unresponsive to the officer calling out to them and knocking on the window. After the occupants awakened and exited the vehicle, officers located three unopened, paper-wrapped bricks of heroin on Thomas’ person as well as a quantity of cocaine base, commonly referred to as crack. Officers searched the vehicle and located, in the center console, a stolen Smith and Wesson .40 caliber pistol with a loaded magazine and one bullet in the chamber. Thomas also had $169 as well as a cell phone, which contained drug trafficking communications with several of Thomas’ drug customers, including communications wherein he instructed drug customers to meet him at Belleau Drive.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The Bureau of Alcohol Tobacco Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Thomas.
North Carolina Man Admits Heroin Distribution and Firearms OffensesRead the Press Release
TRENTON, N.J. – A Raleigh, North Carolina, man with ties to Trenton admitted today to distributing heroin and unlawfully possessing a firearm as a convicted felon, U.S. Attorney Craig Carpenito announced.
Dennis Cheston Jr., a/k/a “Beans,” 39, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to a third superseding indictment that charged him with distribution and possession with intent to distribute heroin (Count Five) and unlawful possession of a firearm by a convicted felon (Count Nine).
In October 2018, Cheston and 26 other members identified as having participated in a large drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. Cheston and others also were charged with additional firearms offenses. On Feb. 27, 2020, a grand jury returned a 10-count third superseding indictment charging Cheston and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Of the 26 defendants charged in the original criminal complaint, Cheston is the 23rd defendant to plead guilty. The charges in the third superseding indictment and the criminal complaint are currently pending against the three remaining defendants, and they are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
From October 2017 to October 2018, law enforcement officers conducted an investigation of a large narcotics conspiracy that operated in Trenton and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.”
Telephone and text message communications intercepted pursuant to the wiretap orders also revealed that, on multiple occasions during the investigation, Cheston – a convicted felon who has ties to Trenton – traveled from North Carolina to Trenton and obtained quantities of heroin from Taylor, which Taylor had obtained from Antonio. During one intercepted telephone call between Taylor and Cheston, Cheston advised Taylor that the heroin bearing an ink stamp that read “Top Secret,” was high quality, and that his customers liked it. During the course of these drug transactions and additional intercepted communications between Taylor and Cheston, Cheston also agreed to travel from North Carolina to Trenton and supply Taylor with multiple firearms in exchange for future supplies of heroin. On Sept. 8, 2018, based on the intercepted communications and other evidence obtained during the investigation, law enforcement tracked Cheston’s travel from North Carolina to Trenton, where he was arrested upon his arrival as he exited the Trenton Transit Center. During a subsequent search of Cheston’s backpack, law enforcement recovered a nine-millimeter Smith & Wesson handgun, which Cheston had agreed to provide to Taylor.
The drug distribution count to which Cheston pleaded guilty carries a statutory maximum term of imprisonment of 20 years and a maximum fine of $1 million. The felon-in-possession count to which Cheston pleaded guilty carries a statutory maximum term of imprisonment of 10 years and a maximum fine of $250,000. Cheston’s sentencing is scheduled for Oct. 21, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Acting Special Agent in Charge Douglas Korneski; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s guilty plea. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case.
The government is represented by Attorney-in-Charge J. Brendan Day and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Nineteen Individuals Indicted in $41 Million Illegal Opioid Distribution ConspiracyRead the Press Release
An indictment was unsealed today charging nineteen individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Matthew Schneider announced today.
U.S. Attorney Schneider was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division; Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation and Special Agent in Charge Lamont Pugh, the Department of Health and Human Services, Office of Inspector General (HHS-OIG).
The 44-count indictment charges defendants with an alleged drug conspiracy involving prescription drug controlled substances including Oxycodone, Oxymorphone, Oxycodone-Acetaminophen (Percocet), Hydrocodone, Hydrocodone-Acetaminophen, promethazine with codeine cough syrup, and other drugs.
Charged in the indictment are:
John Henry Rankin, III, 46, Detroit,
Dr. Beth Carter, 56, Southfield,
Dr. Robert Kenewell, 52, Auburn Hills,
Dr. Jason Brunt, 50, Clawson,
Dr. John Swan, 30, St. Clair Shores,
Nurse Practitioner, Jean Pinkard, 63, Farmington Hills
Nurse Practitioner Toni Green, 58, St. Clair Shores,
Fitzgerald Hudson, 60, Southfield,
Virendra Gaidhane, 49, Troy
Pharmacist, Maksudali Saiyad, 65, Troy
Pharmacist Adeniyi Adepoju, 61, Warren,
Pharmacist Ali Sabbagh, 36, Dearborn Heights
Robert King, 38, Taylor,
Jermaine Hamblin, 36, Roseville,
Sonya Mitchell, 50, Southfield,
Lavar Carter, 56, Southfield,
Robert Lee Dower, Jr., 49, Eastpointe
Denise Sailes, 51, Detroit, and
Dewayne Bason, 28, Detroit
The indictment alleges that from September 2017 through June 2020, John Henry Rankin, III, owner of New Vision Rehab and Preferred Rehab clinics would provide monetary remuneration and other illegal benefits to Dr. Beth Carter, Dr. Robert Kenewell, Dr. Jason Brunt, Dr. John Swan, Nurse Practitioner Jean Pinkard and Nurse Practitioner Toni Green to induce them to write prescriptions for “fake” patients, who did not have a legitimate medical need for the drugs. Rankin also allegedly provided monetary remuneration to an unlicensed medical professional, who was not legally authorized to prescribe controlled substances or practice as doctor, who would pose as a doctor and issue pre-signed controlled substance prescriptions in the names of other providers.
It is alleged that the medical professionals named in the indictment prescribed more than 1,951,148 dosage units of Schedule II controlled substances. The prescribed Oxycodone and Oxymorphone, alone, carried a conservative street value of more than $41 million. Oxycodone and Oxymorphone are two of the most addictive opioids and they have high street value. Patients were recruited into the conspiracy by patient recruiters or “marketers,” to include Robert King and Jermaine Hamblin.
The indictment further alleges that during this conspiracy, prescriptions were presented to Detroit New Hope Pharmacy (owner Virendra Gaidhane, pharmacist Maksudali Saiyad, pharmacy tech Dewayne Bason), Synergy Pharmacy (pharmacy technician Dewayne Bason), Nottingham Pharmacy (owner Virendra Gaidhane), Crownz Medical Pharmacy (pharmacist Adeniyi Adepoju), Franklin Healthmart (pharmacist Ali Sabbagh). Some of the pharmacists would bill insurers, including Medicare, Medicaid, and private insurers, for dispensing the medications, despite the fact that the medications were medically unnecessary. Other times, the pharmacists accepted cash from the recruiters for filling and dispensing medications.
According to the indictment, the pharmacies dispensed more than 58,725 dosage units of Schedule II controlled substances prescribed by the medical professionals listed in the indictment.
“Prescription drugs are supposed to go to people who truly need them, not to fake patients or people selling drugs on the streets,” United States Attorney Matthew Schneider said. “We are focusing on charging doctors, pharmacists, and the networks that add to the opioid crisis, and this case is unfortunately yet another example of the serious problem facing Michigan.”
Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division, stated, “These enforcement actions and others like them around the country, demonstrate our commitment to prosecuting licensed professionals who flood communities with addictive legal drugs for their own personal benefit”
“Today’s indictments are the result of healthcare professionals allegedly contributing to the devastating opioid crisis instead of working toward its solution. The public expects and deserves more from them,” said Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan.
“The opioid epidemic continues to have a harmful impact on many people across this country”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Medical professionals who choose to participate in schemes as alleged in this indictment only exacerbate the problem. The OIG will continue to dedicate and prioritize resources to the investigation of allegations of this nature in an effort to ensure the health and safety of patients and taxpayer dollars.”
This case is being prosecuted by Assistant United States Attorneys Brandy R. McMillion and Mitra Jafary-Hariri. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative created by Attorney General Sessions, that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
The case was investigated by special agents and task force officers of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Department of Health and Human Services, Office of Inspector General.
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.
Montgomery Woman Receives 15-Month Sentence after Stealing Approximately $250,000 from Retired Educators AssociationRead the Press Release
Montgomery, Alabama – On Tuesday, June 9, 2020, a Montgomery, Alabama resident, Vicki Lott Rohan, 56, received a 15-month sentence for committing wire fraud, announced United States Attorney Louis V. Franklin, Sr. and FBI Special Agent in Charge James Jewell. The sentence and conviction were the results of Rohan embezzling, over a seven-year period, approximately $250,000.00 from her then-employer, the Alabama Education Retirees Association (AERA).
According to court documents, the AERA is a lobbying and political action organization based in Montgomery, Alabama. Its mission is to advocate for the interests of retired public educators and it receives funding through dues paid by its members.
For many years, Rohan worked for the AERA as its bookkeeper. In that position, she had access to an organization credit card and the ability to write checks in the name of the association’s director. Rohan used the AERA credit card and checkbook to spend money on personal expenses until the AERA uncovered the activity in 2018. The investigation that followed revealed that Rohan had illegally spent roughly $250,000.00 of the AERA’s money on herself.
At the sentencing hearing, both the former and current directors of the AERA addressed the court. Former director Janice Charlesworth said, “Dues of $35 per retiree may seem like an inconsequential amount to some. For retirees on a fixed income who have not received cost of living increases in their benefits for over ten years, the sacrifices to pay their dues were significant to them. The amount embezzled [amounted to] over a quarter of the annual budget to AERA, and it should not be taken lightly. Retirees put their trust in AERA and Ms. Rohan violated that trust.” The current director Jill Jackson said, “[Rohan] stole from an association who receives dues money from senior citizens living on fixed incomes.” Jackson also noted that Rohan “knew of these people and the condition of their limited finances.”
“The retired educators of Alabama counted on Ms. Rohan and the other employees of the AERA to advocate on their behalf,” stated United States Attorney Franklin. “Ms. Rohan’s actions limited the AERA’s ability to perform its critical mission and risked harming the interests of all of the organization’s dues-paying members. The sentence imposed in this case is a reflection of the simple fact that taking what does not belong to you is a crime and it will be punished.”
“The men and women of the FBI will continue to work tirelessly to bring justice to the victims of fraud and theft,” said FBI Special Agent in Charge James Jewell. “This sentence sends a clear message to those in trustworthy positions, theft will not be tolerated.”
The Federal Bureau of Investigation investigated this case. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour prosecuted the case.
Montgomery County Man Sentenced to 30 Months for Bank Fraud & Aggravated Identity TheftRead the Press Release
LEXINGTON, Ky. - Steven Ray Williams, 58, of Hope, Kentucky, was sentenced to 30 months in federal prison on Thursday, by U.S. District Court Judge Karen K. Caldwell, after previously pleading guilty to bank fraud and aggravated identity theft, involving fraudulent representations to a financial institution.
Beginning in 1999 Williams borrowed a series of loans from the Farm Services Agency (FSA), a division of the U.S. Department of Agriculture. As pledged collateral for the loans, Williams listed farm equipment, cattle and other livestock. In April 2012, Williams failed to make his loan payment to the FSA and declared bankruptcy the following month.
According to the plea agreement, from March 2012 through June 2015, Williams regularly sold off cattle at various stockyards in central Kentucky. Because the cattle had been pledged as collateral, though, Williams sold the cattle in the name of other people. Upon receiving payment for the cattle, in the form of a check, Williams forged the signature of the person it was made out to, and then added his own signature, enabling him to deposit the funds into his own bank account. Because he was in default on his FSA loans, Williams’ actions brought him financial gain and deprived the FSA of any chance at recovering proceeds from the livestock that was collateral.
Williams pleaded guilty in January 2020.
Under federal law, Williams must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Jason M. Williams, Special Agent in Charge for USDA OIG, jointly announced the sentencing.
The investigation was conducted by the U.S. Department of Agriculture. The United States was represented by Assistant U.S. Attorney William Moynahan.
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Montgomery County Man Pleads Guilty to Nearly $2.8 Million Embezzlement Scheme Against Lancaster CompanyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Steven J. Russo, 43, of Pennsburg, PA, pleaded guilty today to wire fraud and filing false tax returns before United States District Court Judge Jeffrey L. Schmehl. The charges arose from Russo’s embezzlement of $2.79 million from his former employer, a company in Lancaster, PA, for which he served as the Director of Information Technology from November 2013 until October 2018.
Russo used his access to his former employer’s lines of credit and credit cards to make unearned payments to companies owned and controlled by him, and to purchase items that he kept for his personal use or sold for his personal gain. He also caused his former employer to issue checks to the companies he owned and controlled, and to make payments via PayPal to an account he controlled. Russo reported his taxable income for 2017 as only $18,579, when in reality his taxable income was nearly $1 million.
“The U.S. Attorney’s Office takes offenses like embezzlement and tax fraud very seriously,” said U.S. Attorney McSwain. “Russo stole millions by abusing his trusted position with his former employer. My Office will continue to work with our law enforcement partners to protect innocent businesses and taxpayers from being victimized by this type of fraud.”
“Not only did Mr. Russo steal millions of dollars from his employer, he also stole from the government and the American people when he decided to shirk his tax obligations,” said IRS-Criminal Investigations Special Agent in Charge Thomas Fattorusso. “His admission of guilt today underscores our commitment to protecting the integrity of the tax system by ensuring that everyone pays their fair share of taxes.”
Russo faces up to twenty-three years in prison, as well as restitution, fines, supervised release, and special assessments.
This case was investigated by IRS-Criminal Investigations, and is being prosecuted by Assistant United States Attorney Bea Witzleben.