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Monday 16 March 2020
Quapaw Man Convicted of Sexually Abusing a Child Under 12Read the Press Release
A federal judge found a Quapaw man guilty Monday of sexually abusing a child under 12 years of age in Indian Country, announced U.S. Attorney Trent Shores.
Wilkie Bill Burtrum, 60, was convicted of aggravated sexual abuse of a minor under 12 in Indian Country and with abusive sexual contact with a child under 12 in Indian Country.
“Wilkie Burtrum was a very real danger to children. Today he was convicted of child sex abuse for the second time in his life. He previously spent 14 years in prison for sexually abusing two children, and my office will be asking that he now spend the rest of his life in prison,” said U.S. Attorney Trent Shores. “No child should ever suffer at the hands of a pedophile nor endure abuse in silence. Along with the Quapaw Tribal Marshals Service and Miami Police Department, the U.S. Attorney’s Office commends this young victim for his courage to come forward to report these horrific crimes.”
Burtrum abused the victim between August 2018 and October 2019. The prosecution contended that the defendant paid extra attention to the victim and offered him special privileges in order to gain the child’s trust. During the time the defendant and victim were together, Burtrum purposefully touched the victim sexually both over his pants and under his clothing. The child eventually confided in a relative then his father. The father immediately reported the crimes to authorities.
During the trial, the prosecution introduced into evidence a 1993 sexual abuse conviction, establishing a pattern of behavior by the defendant. In that case, Burtrum served 14 years in prison for four counts of aggravated sexual abuse in Indian Country with children under 12. An additional victim testified Monday about abuse he suffered at the hands of Burtrum approximately five years ago. He recently came forward to report the crime.
U.S. District Judge Gregory K. Frizzell presided over the trial and set sentencing for June 25, 2020.
The Quapaw Tribal Marshals Service and Miami Police Department conducted the investigation. Assistant U.S. Attorneys Shannon Cozzoni and Scott Proctor are prosecuting the case.
Operation X-Nation: Princeton Man Enters Guilty Plea to Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – A Princeton man pled guilty today for his participation in a drug trafficking operation in Mercer County, announced United States Attorney Mike Stuart. David Simmons, 51, of Princeton, pled guilty to conspiracy to distribute a quantity of oxymorphone and oxycodone. Simmons was charged as a result of a long-term, multi-state, investigation known as Operation X-Nation.
“Operation X-Nation demonstrates our continued efforts to hold prescription pill traffickers accountable,” said United States Attorney Mike Stuart. “Although we have made tremendous progress in that regard, we are not ‘taking our eye off the ball’.”
Simmons admitted that between August 2017, and August 31, 2019, he participated in a drug trafficking organization (DTO) operating in Mercer County, West Virginia. During this time period, Simmons worked with other members of the DTO to acquire and distribute prescription pills in and around Mercer County, within the Southern District of West Virginia. In or about the month of August, 2019, Simmons had telephone calls intercepted by law enforcement. During these calls, Simmons was discussing the distribution of oxymorphone and oxycodone with other members of the DTO. During this time period, Simmons admitted that he was responsible for conspiring to distribute approximately 210 oxymorphone pills and approximately 257 oxycodone pills. Simmons also admitted it was the plan to re-distribute the pills in and around Mercer County.
Simmons faces up to 20 years in federal prison and $1 million fine when he is sentenced on July 6, 2020.
Stuart commended the cooperative investigative efforts of the Drug Enforcement Administration (DEA), and the Southern Regional Drug and Violent Crime Task Force, which is composed of officers from the West Virginia State Police, the Mercer County Sheriff’s Department, the Princeton Police Department, and the Bluefield Police Department. Each agency provided additional and essential support throughout this investigation.
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.
This case was brought under the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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Omaha Man Convicted for Possession of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Cecil Gunnels, Jr., 36, of Omaha, Nebraska, was sentenced on March 13, 2020 in Omaha by United States District Judge Robert F. Rossiter, Jr. for possession of child pornography. Gunnels was sentenced to 97 months in prison to run concurrent to a 15- to 18-year prison sentence on a State attempted sexual assault on a child in the 1st degree. There is no parole in the federal system. After his release from prison, Gunnels will serve a five-year term of supervised release and will be required to register as a sex offender.
Gunnels was investigated by the Douglas County Sheriff’s Office and the Papillion Police Department after an allegation was made regarding Gunnels sexually assaulting a minor. That investigation lead to the search of his residence and the seizure of electronic devices, which were found to contain child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
NDTX Round-Up: March 6-12Read the Press Release
GUILTY PLEA – ROMELIO RIVERON
On March 10, Romelio Riveron, 50, pled guilty to conspiracy to launder money and monetary instruments. Riveron purchased stolen jewelry, gold, and diamonds from individuals who were involved in four major robberies in Bedford, Texas, The Village, Oklahoma, Charlotte, North Carolina, and Houston, Texas. Riveron traveled to different locations around the United States to launder the stolen jewelry, gold, and diamonds. In sum, Riveron and his co-conspirators caused total losses of $2,561,112.41. Riveron faces 20 years in federal custody. This case was investigated by the FBI and prosecuted by AUSA Ryan Raybould.
GULITY PLEA – JUAN JESUS CERVANTES-DEL TORO
On March 10, Juan Jesus Cervantes-Del Toro, 47, pled guilty to possession with the intent to distribute methamphetamine. Cervantes-Del Toro met a confidential informant at a Dallas area auto body shop and sold the informant one kilogram of methamphetamine. During his arrest, law enforcement found numerous baggies containing methamphetamine and cocaine. Cervantes-Del Toro faces 20 years in federal custody. This case was investigated by Texas Department of Public Safety and prosecuted by AUSA Linda Requenez.
SENTENCING – JOEL VILLEGAS-PATIN0
On March 11, Joel Villegas-Patio, 62, was sentenced to 188 months in federal custody for possession with intent to distribute a controlled substance. Law enforcement used confidential sources to purchase heroin from Villegas-Patino on multiple occasions. When a search warrant was executed on his residence, Villegas-Patino had 4,893 grams of heroin in his possession. In the two month period that proceeded his arrest, Villegas-Patino had received a total of eight kilograms of heroin from his supply in Mexico. This case was investigated by Drug Enforcement Agency and prosecuted by AUSA John Kull.
GUILTY PLEA – CHRISTOPER PAUL STOUT
On March 12, Christopher Paul Stout, 41, plead guilty to possession with intent to distribute methamphetamine. Stout sold 14 grams of methamphetamine to a confidential source at his place of residence in Dallas. Shortly thereafter, Stout again sold 500 pills of clandestinely produced oxycodone. He faces up to 20 years in federal custody. This case was investigated Drug Enforcement Agency and prosecuted by AUSA Rachel Jones.
Maryland man sentenced for bank robberyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven L. Silverman, of Thurmont, Maryland, was sentenced today to 46 months incarceration for bank robbery, U.S. Attorney Bill Powell announced.
Silverman, age 50, pled guilty to one count of “Bank Robbery” in November 2019. Silverman admitted to robbing the City National Bank of Berkeley Springs of $1,730 on June 4, 2019.
Silverman was also ordered to pay $1,730 to the bank in restitution.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Morgan County Sheriff’s Office and the Berkeley Springs Police Department investigated.
Chief U.S District Judge Gina M. Groh presided.
Married Couple Indicted on Federal ChargesRead the Press Release
Montgomery, Alabama – On Friday, March 13, 2020, Richard Herbert Smith and Mellissa Stacy Ann Smith, of Wetumpka, Alabama, were arrested and made their initial appearance in court after being indicted by a federal grand jury. Mellissa Smith is listed as the owner of the Island Delight Caribbean Restaurant in Montgomery.
The indictment charges Richard Smith with conspiracy to distribute a controlled substance, possession of cocaine with intent to distribute, possessing a firearm in relation to a drug trafficking crime, and money laundering. Mellissa Smith was indicted on one count of money laundering.
If convicted of all charges, Richard Smith faces a maximum sentence of 25 years in prison, whereas Mellissa Smith is facing up to 20 years.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt. Mellissa Smith was released after her court appearance on Friday. Richard Smith is being held in the custody of the United States Marshal Service pending a detention hearing this week.
This case was investigated by the Drug Enforcement Administration (DEA) and the Montgomery Police Department, with assistance from the Prattville Police Department and the Alabama National Guard Counterdrug program. Assistant United States Attorney Curtis Ivy is prosecuting the case.
Man from Oklahoma faces federal bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Randy Matthew Peraza, 47, of Oklahoma City, Oklahoma appeared in federal court in Roswell, New Mexico today for an initial appearance on a criminal complaint charging him with bank robbery.
According to the criminal complaint, Peraza allegedly robbed a bank in Roswell on Mar. 13. He allegedly went inside the bank, announced the robbery, and demanded money. A teller handed over cash. Peraza allegedly left the bank, walked across the street, and sat in the grass where police arrested him a short time later. There were no injuries.
Peraza is currently in custody awaiting a detention hearing. He faces up to 20 years in prison if convicted. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
The FBI investigated this case with the Roswell Police Department. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.
Lexington Man Sentenced to 108 Months for Trafficking ValerylfentanylRead the Press Release
LEXINGTON, Ky. – A Lexington, Kentucky man, Michael Deshawn Glover, 33, was sentenced to 108 months on Thursday, by U.S. District Judge Karen K. Caldwell, for possession with intent to distribute 10 grams or more of a substance containing valerylfentanyl.
Glover previously admitted that on July 25, 2018, he came into contact with officers, and due to an outstanding warrant, he was arrested. Upon the intake process at the detention facility, officers discovered that Glover was concealing 58 grams of valerylfentanyl in his underwear. Glover admitted that he planned to sell the substance to other persons throughout the Eastern District of Kentucky.
Glover pleaded guilty in June 2019.
Under federal law, Glover must serve 85 percent of his prison sentence. Upon his release, Glover 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; Brett R. Pritts, Acting Special Agent in Charge for the Drug Enforcement Administration, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was conducted by DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Letcher County Man Convicted of Methamphetamine Trafficking Conspiracy and Firearm OffensesRead the Press Release
PIKEVILLE, Ky. - A Mayking, Kentucky, man was convicted Friday, by a federal jury sitting in Pikeville, of conspiracy to distribute methamphetamine and firearm offenses.
After 45 minutes of deliberation, following a two-day trial, the jury convicted 64-year-old Danny Collins of trafficking more than 500 grams of methamphetamine, possession of firearm in furtherance of drug trafficking, and being a convicted felon in possession of a firearm.
According to testimony at trial, beginning in November 2017 until March 2018, Collins traveled to Louisville, on multiple occasions, to purchase pound-level quantities of methamphetamine from a source of supply. Collins would then return to Letcher County and resell the methamphetamine.
Evidence presented at trial also revealed that Collins possessed a firearm in furtherance of his drug trafficking. Collins had previously been convicted of a serious drug felony and was not permitted by law to possess a firearm.
Collins was indicted in June 2019.
Collins’ co-defendants pled guilty in February and will be sentenced as follows:
- Samantha Collins, 38, of Mayking, Ky., will be sentenced on June 1, 2020.
- Michael Slone, 43, of Red Fox, Ky., will be sentenced on June 1, 2020.
- Kevin Quillen, 44, of Kite, Ky., will be sentenced on June 17, 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF, Louisville Field Division; and Commissioner Rodney Brewer, Kentucky State Police, jointly announced the verdict.
The investigation was conducted by ATF, Kentucky State Police, and Letcher County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorney Jenna Reed.
Collins will appear for sentencing on a date set by the Court. He faces a maximum of life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Jury Finds Los Angeles Businessman Guilty in $1 Billion Biodiesel Tax Fraud SchemeRead the Press Release
A federal jury in Salt Lake City, Utah, convicted California businessman Lev Aslan Dermen, also known as Levon Termendzhyan, of criminal charges today relating to a $1 billion renewable fuel tax credit fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney John W. Huber for the District of Utah, Don Fort Chief of Internal Revenue Service (IRS) - Criminal Investigation, Acting Special Agent-in-Charge Lance Ehrig for the Denver Area Office of Environmental Protection Agency (EPA) - Criminal Investigation Division, and Special Agent-in-Charge Michael Mentavlos for the Denver Area Office of Defense Criminal Investigative Service.
“Today’s guilty verdict brings Lev Dermen and his coconspirators to justice. They created and implemented this massive biofuel scheme to fund their greed at the expense of all taxpayers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The conviction should serve as clear notice that we will vigorously prosecute those criminals who engage in any form of tax fraud.”
“These guilty verdicts show that no amount of bank accounts, shell companies, burner phones, or transfers of millions of dollars to foreign countries will stop the Department of Justice, the U.S. Attorney’s Office, and our law enforcement partners from tracking down money stolen from the government and holding criminals responsible for their wrongdoing,” said U.S. Attorney John W. Huber for the District of Utah. “I also want to thank the investigators, prosecutors, and support professionals who have dedicated so much time to this important case.”
“The biofuel tax credit program was established by the government to promote a clean fuel alternative to traditional fuel options. Mr. Dermen used his company Noil Energy Group to conspire with the Kingston family to corrupt the biofuel tax credit program in an effort to steal over $1 Billion from tax payers and launder the proceeds of this fraud,” said Don Fort, Chief of IRS Criminal Investigation. “This trial was the culmination of years of investigative effort that traced money through a variety of countries and states through a complicated fraud scheme to eventually put money in the pockets of Mr. Dermen. The complicated nature of the scheme shows the determination with which the defendants had to defraud the American public for the sole purpose of lining their own pockets.”
“The defendants claimed both EPA Renewable Fuel Standard (RFS) program credits and IRS tax credits for biodiesel fuel that did not exist, defrauding taxpayers out of hundreds of millions of dollars,” said Lance Ehrig, EPA Acting Special Agent in Charge. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RFS program and the American taxpayer.”
“The Defense Criminal Investigative Service (DCIS) will investigate all allegations of financial crimes impacting the Department of Defense," stated Michael Mentavlos, Special Agent in Charge, DCIS Southwest Field Office. "DCIS, along with our investigative partners, will diligently pursue all appropriate criminal, civil and administrative actions against individuals who violate the taxpayer's trust for illicit financial gain.”
According to evidence presented at a seven-week trial, Dermen was the owner and operator of Noil Energy Group, a California-based fuel company; SBK Holdings USA, a Beverly Hills real estate investment company; and Viscon International, a Nevada fuel additive corporation. From 2010 to 2016, Dermen conspired with the owners and operators of Washakie Renewable Energy (Washakie), a Utah-based biodiesel company, including its Chief Executive Officer Jacob Kingston, his brother, Chief Financial Officer Isaiah Kingston, and others, including their mother, Rachel Kingston, and Jacob Kingston’s wife, Sally, to fraudulently claim more than $1 billion in renewable fuel tax credits from the IRS.
The IRS administers refundable federal tax credits designed to increase the amount of renewable fuel used and produced in the United States. As part of their scheme, Dermen and Jacob Kingston shipped millions of gallons of biodiesel within the U.S. and from the U.S. to foreign countries and back again to create the appearance that qualifying renewable fuel was being produced and sold. They also doctored production and transportation records to substantiate Washakie’s fraudulent claims for more than $1 billion in IRS renewable fuel tax credits and credits related to the EPA renewable fuel standard. To further create the appearance they were buying and selling qualifying fuel, the coconspirators cycled more than $3 billion through multiple bank accounts.
As a result of the fraudulent claims, the IRS paid more than $511 million to Washakie and the Kingstons that was distributed between them and Dermen. Jacob and Isaiah Kingston sent more than $21 million in fraudulent proceeds to SBK Holdings USA, Inc., Dermen’s California-based company, and sent $11 million to an associate of Dermen’s at his request. Jacob Kingston used $1.8 million of the fraud proceeds to buy Dermen a 2010 Bugatti Veyron, and they exchanged gifts including a chrome Lamborghini and a gold Ferrari.
Dermen and Jacob Kingston also laundered $3 million through Dermen’s company, Noil Energy Group, to purchase a mansion in Sandy, Utah for Jacob Kingston and his wife Sally. Dermen also laundered $3.5 million through his California company, SBK Holdings USA, Inc., to purchase a mansion in Huntington Beach, California.
Throughout the scheme, Dermen assured Jacob Kingston that he and the Kingstons would be immune from criminal prosecution because they would be protected by Dermen’s “umbrella” of corrupt law enforcement personnel. Jacob and Isaiah Kingston transferred over $134 million in fraudulent proceeds to companies in Turkey and Luxembourg at Dermen’s direction, in purported payment for protection.
The jury found Dermen guilty of conspiracy to commit mail fraud, conspiracy to commit money laundering, and money laundering concealment money laundering, and expenditure money laundering.
The Kingstons, who are all members of the Davis County Cooperative Society, also known as the “Order,” each pleaded guilty on July 19, 2019 for their role in this scheme. Jacob Kingston pleaded guilty to crimes relating to the $1 billion biofuel fraud, including conspiracy to commit mail fraud, aiding and assisting in the filing of false claims with the IRS, conspiracy to commit money laundering, and conspiracy to obstruct justice. In his plea agreement, he admitted to laundering fraudulent proceeds through Order-related entities and transferring millions in fraudulent proceeds to Order-related entities. Jacob Kingston admitted to conspiring to obstruct justice for attempting to bribe government officials, tamper with witnesses, and destroy evidence based on his agreeing with his family to hide evidence and replace computer hard drives once they learned of an impending search warrant. Under the terms of his plea agreement, Jacob Kingston faces a maximum of thirty years in prison. He also faces a period of supervised release and other monetary penalties. Sentencing has not yet been scheduled.
Isaiah Kingston pleaded guilty to his role in the scheme, including to conspiracy to commit mail fraud, aiding and assisting in filing false claims with the IRS, conspiracy to commit money laundering, and conspiracy to obstruct justice. Under the terms of his plea agreement, he faces a maximum of 20 years in prison. Rachel Kingston pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, money laundering, and obstruction of justice. In her plea agreement, she admitted to creating false invoices, backdating documents, and concealing records in advance of a federal search warrant. She faces a maximum of 15 years in prison. Sally Kingston pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering; she faces a maximum of 15 years in prison. They each also face a period of supervised release. As part of their plea agreements, the Kingstons will be ordered to pay $511 million in restitution to the United States and to forfeit the proceeds of their crimes.
Jacob and Isaiah Kingston both testified at Dermen’s trial.
U.S. District Judge Jill N. Parrish will set Dermen’s sentencing at a later date. At sentencing, he faces a maximum sentence of 20 years in prison for conspiracy to commit mail fraud, conspiracy to commit money laundering, and concealment money laundering, and 10 years in prison for expenditure money laundering. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber commended special agents of IRS-Criminal Investigation, EPA Criminal Investigation Division, and Department of Defense DCIS who conducted the investigation. They also thanked Trial Attorneys Richard M. Rolwing, Leslie A. Goemaat, and Arthur J. Ewenczyk and Senior Litigation Counsel John E. Sullivan of the Tax Division, who are prosecuting the case.
They also thanked the U.S. Department of Justice Criminal Division’s Office of International Affairs, as well as law enforcement partners in the Grand Duchy of Luxembourg and the Republic of Malta for their assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Jury Finds Los Angeles Businessman Guilty in $1 Billion Biodiesel Tax Fraud SchemeRead the Press Release
SALT LAKE CITY – A federal jury in Salt Lake City convicted California businessman Lev Aslan Dermen, also known as Levon Termendzhyan, of criminal charges Monday afternoon relating to a $1 billion renewable fuel tax credit fraud scheme.
The convictions were announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney John W. Huber for the District of Utah, Don Fort Chief of Internal Revenue Service (IRS) - Criminal Investigation, Acting Special Agent-in-Charge Lance Ehrig of the Denver Area Office of Environmental Protection Agency (EPA) - Criminal Investigation Division, and Special Agent-in-Charge Michael Mentavlos of the Denver Area Office of Defense Criminal Investigative Service.
“Today’s guilty verdict brings Lev Dermen and his coconspirators to justice. They created and implemented this massive biofuel scheme to fund their greed at the expense of all taxpayers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The conviction should serve as clear notice that we will vigorously prosecute those criminals who engage in any form of tax fraud.”
“These guilty verdicts show that no amount of bank accounts, shell companies, burner phones, or transfers of millions of dollars to foreign countries will stop the Department of Justice, the U.S. Attorney’s Office, and our law enforcement partners from tracking down money stolen from the government and holding criminals responsible for their wrongdoing,” said U.S. Attorney John W. Huber for the District of Utah. “I also want to thank the investigators, prosecutors, and support professionals who have dedicated so much time to this important case.”
“The defendants claimed both EPA Renewable Fuel Standard (RFS) program credits and IRS tax credits for biodiesel fuel that did not exist, defrauding taxpayers out of hundreds of millions of dollars,” said Lance Ehrig, EPA Acting Special Agent in Charge. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RFS program and the American taxpayer.”
“The biofuel tax credit program was established by the government to promote a clean fuel alternative to traditional fuel options. Mr. Dermen used his company Noil Energy Group to conspire with the Kingston family to corrupt the biofuel tax credit program in an effort to steal over $1 Billion from tax payers and launder the proceeds of this fraud,” said Don Fort, Chief of IRS Criminal Investigation. “This trial was the culmination of years of investigative effort that traced money through a variety of countries and states through a complicated fraud scheme to eventually put money in the pockets of Mr. Dermen. The complicated nature of the scheme shows the determination with which the defendants had to defraud the American public for the sole purpose of lining their own pockets.”
“The Defense Criminal Investigative Service (DCIS) will investigate all allegations of financial crimes impacting the Department of Defense," stated Michael Mentavlos, Special Agent in Charge, DCIS Southwest Field Office. "DCIS, along with our investigative partners, will diligently pursue all appropriate criminal, civil and administrative actions against individuals who violate the taxpayer's trust for illicit financial gain.”
According to evidence presented at a seven-week trial, Dermen was the owner and operator of Noil Energy Group, a California-based fuel company; SBK Holdings USA, a Beverly Hills real estate investment company; and Viscon International, a Nevada fuel additive corporation. From 2010 to 2016, Dermen conspired with the owners and operators of Washakie Renewable Energy (Washakie), a Utah-based biodiesel company, including its Chief Executive Officer Jacob Kingston, his brother, Chief Financial Officer Isaiah Kingston, and others, including their mother, Rachel Kingston, and Jacob Kingston’s wife, Sally, to fraudulently claim more than $1 billion in renewable fuel tax credits from the IRS.
The IRS administers refundable federal tax credits designed to increase the amount of renewable fuel used and produced in the United States. As part of their scheme, Dermen and Jacob Kingston shipped millions of gallons of biodiesel within the U.S. and from the U.S. to foreign countries and back again to create the appearance that qualifying renewable fuel was being produced and sold. They also doctored production and transportation records to substantiate Washakie’s fraudulent claims for more than $1 billion in IRS renewable fuel tax credits and credits related to the EPA renewable fuel standard. To further create the appearance they were buying and selling qualifying fuel, the coconspirators cycled more than $3 billion through multiple bank accounts.
As a result of the fraudulent claims, the IRS paid more than $511 million to Washakie and the Kingstons that was distributed between them and Dermen. Jacob and Isaiah Kingston sent more than $21 million in fraudulent proceeds to SBK Holdings USA, Inc., Dermen’s California-based company, and sent $11 million to an associate of Dermen’s at his request. Jacob Kingston used $1.8 million of the fraud proceeds to buy Dermen a 2010 Bugatti Veyron, and they exchanged gifts including a chrome Lamborghini and a gold Ferrari.
Dermen and Jacob Kingston also laundered $3 million through Dermen’s company, Noil Energy Group, to purchase a mansion in Sandy, Utah for Jacob Kingston and his wife Sally. Dermen also laundered $3.5 million through his California company, SBK Holdings USA, Inc., to purchase a mansion in Huntington Beach, California.
Throughout the scheme, Dermen assured Jacob Kingston that he and the Kingstons would be immune from criminal prosecution because they would be protected by Dermen’s “umbrella” of corrupt law enforcement personnel. Jacob and Isaiah Kingston transferred over $134 million in fraudulent proceeds to companies in Turkey and Luxembourg at Dermen’s direction, in purported payment for protection.
The jury found Dermen guilty of conspiracy to commit mail fraud, conspiracy to commit money laundering, and money laundering concealment money laundering, and expenditure money laundering.
The Kingstons, who are members of the Davis County Cooperative Society, also known as the “Order,” each pleaded guilty on July 19, 2019 for their role in this scheme. Jacob Kingston pleaded guilty to crimes relating to the $1 billion biofuel fraud, including conspiracy to commit mail fraud, aiding and assisting in the filing of false claims with the IRS, conspiracy to commit money laundering, and conspiracy to obstruct justice.
In his plea agreement, he admitted to laundering fraudulent proceeds through Order-related entities and transferring millions in fraudulent proceeds to Order-related entities. Jacob Kingston admitted to conspiring to obstruct justice for attempting to bribe government officials, tamper with witnesses, and destroy evidence based on his agreeing with his family to hide evidence and replace computer hard drives once they learned of an impending search warrant. Under the terms of his plea agreement, Jacob Kingston faces a maximum of thirty years in prison. He also faces a period of supervised release and other monetary penalties. Sentencing has not yet been scheduled.
Isaiah Kingston pleaded guilty to his role in the scheme, including to conspiracy to commit mail fraud, aiding and assisting in filing false claims with the IRS, conspiracy to commit money laundering, and conspiracy to obstruct justice. Under the terms of his plea agreement, he faces a maximum of 20 years in prison. Rachel Kingston pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, money laundering, and obstruction of justice. In her plea agreement, she admitted to creating false invoices, backdating documents, and concealing records in advance of a federal search warrant. She faces a maximum of 15 years in prison. Sally Kingston pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering; she faces a maximum of 15 years in prison. They each also face a period of supervised release. As part of their plea agreements, the Kingstons will be ordered to pay $511 million in restitution to the United States and to forfeit the proceeds of their crimes.
Jacob and Isaiah Kingston both testified at Dermen’s trial.
U.S. District Judge Jill N. Parrish will set Dermen’s sentencing at a later date. At sentencing, he faces a maximum sentence of 20 years in prison for conspiracy to commit mail fraud, conspiracy to commit money laundering and concealment money laundering, and 10 years in prison for expenditure money laundering. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber commended special agents of IRS-Criminal Investigation, EPA Criminal Investigation Division, and Department of Defense DCIS who conducted the investigation. They also thanked Trial Attorneys Richard M. Rolwing, Leslie A. Goemaat, and Arthur J. Ewenczyk and Senior Litigation Counsel John E. Sullivan of the Tax Division, who are prosecuting the case.
They also thanked the U.S. Department of Justice Criminal Division’s Office of International Affairs, as well as law enforcement partners in the Grand Duchy of Luxembourg and the Republic of Malta for their assistance in the case.
Jefferson County woman sentenced for her role in a heroin, cocaine, and fentanyl distribution operation in Berkeley and Jefferson CountiesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Amy Little, of Harpers Ferry, West Virginia, was sentenced today to five years probation for her role in a heroin, cocaine, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Little, also known as “Amy Jackson,” age 45, pled guilty today to one count of “Unlawful Use of Communication facility” in May 2019. Little admitted to using a phone to arrange a purchase of heroin in September 2018 in Berkeley County.These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for heroin and fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Enrico Fionn Hernandez, of Harpers Ferry, West Virginia, was sentenced today to five years probation for having heroin and fentanyl, U.S. Attorney Bill Powell announced.
Hernandez, also known as “Rico,” age 46, pled guilty to one count of “Possession with Intent to Distribute Heroin and Fentanyl” in November 2019. Hernandez admitted to having heroin and fentanyl to distribute tin June 2017 in Jefferson County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Chief U.S. District Judge Gina M, Groh presided.
Individual Indicted and Arrested for Bank Fraud and Money LaunderingRead the Press Release
SAN JUAN, P.R. - On March 13, FBI agents arrested Wilson Nieves-Santiago who is facing 27 counts of bank fraud and two counts of money laundering, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow.
The indictment alleges that defendant Nieves-Santiago, starting in or around the year 2015, became a caretaker of C.B.R., and elderly female, and her late husband, M.L.R., in Dorado, Puerto Rico, and Philadelphia, Pennsylvania. As part of his responsibilities, Nieves-Santiago would drive C.B.R., run errands, assist her in cleaning, paying bills, and depositing checks. The defendant had online access to C.B.R.’s bank accounts and credit cards, and would pay the victim’s expenses with them.
On or about April 29, 2015, Nieves-Santiago opened a joint bank account with C.B.R. at PNC Bank. This particular account was managed and controlled solely by the defendant. The indictment charges that Nieves-Santiago began diverting monies belonging to C.B.R. to the joint bank account in February of 2018. The defendant was entitled to salary of $2,170 every two weeks, paid from a trust account. As part of the scheme, Nieves-Santiago would sometimes transfer funds, or endorse checks for an additional $2,170 from C.B.R.’s account without her authorization, in an effort to conceal the payment and make it appear as if it were part of the defendant’s regular salary. Nieves-Santiago electronically transferred large sums of money from C.B.R.’s account into the PNC Bank account he controlled without the victim’s authorization.
Counts one through 24 include the checks that Nieves-Santiago deposited into the account he solely controlled, for a total of $170,867.63. Counts 25 and 26 are the money laundering charges that include two electronic transfers deposited into the same account for a total of $86,000.
Defendant Nieves-Santiago is facing a bank fraud and money laundering forfeiture allegation that includes $261,007.63; a two-door 2018 ford Mustang Coupe; and a white 2018 Hyundai Accent coupe.
“The egregious behavior of those who exploit our banking system or its clients for personal and criminal gain will not be tolerated,” said United States Attorney Muldrow. “We will continue to aggressively pursue criminals who victimize and financially exploit our senior citizens.”
“Bank fraud and money laundering come in many different forms. Here it came in the form of a cruel violation of the trust two elderly persons put in the defendant. The FBI is appalled by this behavior and is committed to continue in pursuit of these criminal actors in collaboration with the United States Attorney’s Office and our local state and federal law enforcement partners.” - said Rafael A. Riviere Vázquez, Special Agent in Charge of the FBI San Juan Field Office.
If convicted, Nieves-Santiago could face a maximum penalty of 30 years of imprisonment and a fine of $1,000,000 for the bank fraud charges, and a maximum penalty of up to 10 years of imprisonment for the money laundering charges. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
The prosecution of this case is assigned to Assistant U.S. Attorney Edward G. Veronda.
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Illinois Man Pleads Guilty to Federal Crime for Removing Evidence from Opioid Overdose Death SceneRead the Press Release
A man who removed drug paraphernalia evidence from an opioid overdose death scene in Dubuque pled guilty March 13, 2020, in federal court in Cedar Rapids.
Mateusz D. Syryjczyk, age 29, from Rockford, Illinois, was convicted of one count of misprision of a felony.
At the plea hearing, Syryjczyk admitted that, in May 2019, he knew that the crime of distribution of controlled substances resulting in serious bodily injury had occurred. He also admitted that he failed to notify authorities that the crime had been committed and that he took affirmative steps to conceal the crime. Evidence at a prior hearing showed that Syryjczyk and his girlfriend, Jacqueline Birch, and another individual drove to a residence in Dubuque, Iowa during the late evening of May 26, 2019. Birch and the other individual went into the residence, and returned a short time later with purported heroin they had purchased inside the residence. The three then drove to a hotel in Dubuque, where they all used the purported heroin. The other individual began to overdose in the room. Birch and Syryjczyk did not immediately call 911, but, over the course of multiple hours, Birch would occasionally perform CPR on the individual to restore some breathing function, though the person never regained consciousness. Eventually, Birch and Syryjczyk decided they needed to call 911, and Syryjczyk took the remaining drug paraphernalia from the room to prevent law enforcement from finding it. Syryjczyk also made false statements to the responding police officers about the cause of the individual’s condition. That individual was pronounced dead at the scene. An autopsy later determined the cause of death was use of heroin, fentanyl, and valeryl fentanyl.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Syryjczyk is free on bond pending sentencing. Syryjczyk faces a possible maximum sentence of 3 years’ imprisonment, a $250,000 fine, and 1 year of supervised release following any imprisonment.
The case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19‑CR‑1042‑CJW-‑MAR.
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Four Charged with Fentanyl Trafficking and Gun SalesRead the Press Release
BOSTON – Four individuals were arrested today on charges that they distributed large quantities of fentanyl throughout southeastern Massachusetts.
Filomeno Monteiro, 30, of Brockton; Christina Collins, 18, of Brockton; Eric Marques, 29, of Brockton; and Chayia Chan, 28, of Lynn, were charged in three separate drug trafficking and firearm indictments.
Specifically, Monteiro and Collins were charged with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl as well as three counts of distribution of fentanyl. Monteiro was also charged with being a felon in possession of a firearm. Marques and Chan were each charged with distribution of 40 grams of more of fentanyl.
The charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl provides for a mandatory minimum sentence of five years and a maximum term of 40 years in prison, a minimum of four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a penalty of up to 20 years in prison, up to three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a penalty of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz, made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting these cases.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Federal Court Permanently Bars Former Liberty Tax Service Owners from Tax Preparation BusinessRead the Press Release
A federal court in Tampa, Florida has permanently barred Steven Doletzky, formerly doing business as Liberty Tax Service, from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced today.
The court also ordered Doletzky to disgorge $175,000 of ill-gotten gains that the United States alleges he received from filing federal tax returns that claimed improper tax refunds, understated customers’ federal tax liabilities, or otherwise included false or fraudulent claims.
Doletzky was sued along with two co-defendants, Michael Garno and Michael Bass. According to the complaint, employees at stores owned by Doletzky, Garno, and Bass prepared federal income tax returns that claimed fraudulent claims for tax credits, including for education credits and the Earned Income Tax Credit (“EITC”). For example, the complaint alleges that from 2013 to 2015, Liberty Tax Service stores owned by Doletzky or his co-defendants prepared and filed federal income tax returns that claimed over 500 false claims for education credits. The court previously entered orders of permanent injunction and disgorgement against Garno and Bass. Doletzky, Garno, and Bass agreed to entry of the permanent injunctions and disgorgement judgments without admitting to factual allegations in the complaint.
“Fraudulent tax return preparers too often seek to take advantage of their customers and the U.S. Treasury, which undermines our tax system,” said Principal Deputy Assistant Attorney General for the Tax Division Richard Zuckerman. “The Justice Department will pursue those who would abuse our nation’s tax laws.”
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on their website about things taxpayers should remember when searching for a tax preparer and has a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Dentist Pleads Guilty to Oxycodone DiversionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Christopher Kania, 40, Portage, Wisconsin, pleaded guilty on Thursday, March 12, in U.S. District Court in Madison to obtaining oxycodone by use of misrepresentation, fraud, and deception.
This charge carries a maximum penalty of four years in federal prison. Chief U.S. District Judge James D. Peterson scheduled Kania’s sentencing for May 26, 2020.
During the plea hearing, Kania admitted that on August 22, 2017, while working as a dentist in Mauston, Wisconsin, he wrote a prescription to his dental hygienist for oxycodone pills and asked her to fill the prescription and return the pills to him for his own use. His hygienist, who cooperated with the investigation, complied with his request, filled the prescription, and provided Kania with all of the oxycodone. Kania compensated her for the insurance co-pay.
“Professionals who divert opioids fuel deadly addictions and undermine the public’s confidence in the medical community,” said U.S. Attorney Blader. “My office will continue to work with our law enforcement partners to prosecute opioid diversion cases to the fullest extent of the law.”
“Dentists and their employees are trusted to handle pharmaceutical medications responsibly. When these practitioners divert potent pain medications for illegitimate purposes, they sabotage the public’s trust and safety within our communities. The DEA, partnered with local law enforcement and the U.S. Attorney’s Office, will continue to investigate and prosecute unscrupulous medical professionals,” remarked Milwaukee Drug Enforcement Administration Assistant Special Agent in Charge Paul E. Maxwell.
The charge against Kania was the result of an investigation conducted by the Drug Enforcement Administration-Madison Office. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Corsica Man Indicted for Fraud and Money Laundering in Multi-Million-Dollar Cattle Ponzi SchemeRead the Press Release
United States Attorney Ron Parsons announced that a Corsica, South Dakota, man has been indicted by a federal grand jury for nine counts of Wire Fraud, six counts of Mail Fraud, and seventeen counts of Money Laundering.
Robert Blom, age 58, was indicted on March 3, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 16, 2020, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison, and/or a $250,000 fine for wire fraud and $500,000 fine for money laundering, 3 years of supervised release, and up to $3,200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about January 2014 and continuing through February 2019, Blom devised a scheme to defraud investors.
Blom operated a custom cattle-feeding business in the Corsica area. As part of his business, Blom solicited investors for groups of cattle. He purchased groups of cattle from various livestock companies and the cattle were raised on feedlots owned or used by him. Blom raised the cattle to maturity and then sold them to processing plants. After the groups of cattle were sold, Blom paid the profits to the investors in the groups.
It is alleged, however, that Blom sold the same groups of cattle to multiple different investors. Each invoice should have been used for just one group of investors, but Blom knew that he did not have and could not purchase as many head of cattle as he represented to investors. Sometimes Blom altered the cattle purchase invoices in an effort to conceal that he sold the same group of cattle to multiple different investors.
Also as part of the scheme and artifice, Blom falsely and fraudulently represented to investors that he would use their money to purchase groups of cattle and to care for those cattle. Instead, he routinely used money from new investors to pay back old investors.
On multiple occasions, Blom mailed invoices and other investment-related documents to investors and several investors mailed their investment payments to him. Also on multiple occasions, Blom received payments from investors, often by check and Blom also paid old investors, often by check.
The estimated loss amount at this time is approximately $20 million.
The charges are merely accusations and Blom is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the U.S. Attorney’s Office. Assistance has also been provided by the South Dakota Division of Criminal Investigation, South Dakota Attorney General’s Office, Douglas County States Attorney, Douglas County Sheriff, South Dakota Brand Board, North Dakota Brand Board, and the Montana Brand Board. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Blom was released on bond pending trial. A trial date has not been set.
Colorado Resident and Insurance Company Agree to Pay $500,000 for Costs Incurred in Responding to Escaped Camp FireRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Grange Insurance Association and Dale Owens of Craig, Colorado, have paid the United States $500,000 to resolve their liability for a wildland fire in June of 2017 near Rangely, Colorado.
On June 11, 2017, Mr. Owens created a campfire to roast hotdogs for his family on federal land administered by the Bureau of Land Management near Rangely. The United States alleges that Mr. Owens did not build a fire ring around the entirety of the fire and that he stepped away from the fire to gather additional firewood. While he was away, there was a shift in the wind, and the fire escaped the fire ring. Mr. Owens was able to get his family to safety and to call 911. He also stayed on the scene and attempted to extinguish the fire. Despite the efforts of Mr. Owens and of first responders, the fire—which later became known as the Dead Dog Fire—was not immediately contained and became an uncontrolled wildfire. The Bureau of Land Management and United States Forest Service incurred significant fire suppression costs in fighting the Dead Dog Fire.
Mr. Owens had a home insurance policy in place with Grange Insurance Association at the time of the Dead Dog Fire. Both Mr. Owens and Grange Insurance have been fully cooperative with the United States, allowing the parties to reach a full resolution of Mr. Owens’ liability for the Dead Dog Fire without litigation.
“Wildfires are a constant danger in Colorado, and taxpayers often foot the bill for putting them out. The Dead Dog Fire is an example of how not following best practices around campfires can lead to a wildfire,” said U.S. Attorney Jason Dunn. “The United States appreciates that this fire was reported immediately, which allowed federal resources to be deployed quickly to combat it. We also appreciate that this matter was resolved cooperatively and enables the United States to be reimbursed for many of the costs incurred in fighting the fire.”
“We strive to educate the public and prevent any human-caused fires. In this case, the BLM appreciates that Mr. Owens stayed on scene and cooperated with fire investigators providing important information that was used for the case. Part of being an educated and responsible public land user is knowing what to do in a situation like the Dead Dog Fire,” said BLM Colorado State Director Jamie Connell. “We would also like to thank the United States Attorney's Office for their assistance in settling this case.”
The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
Charleston Woman Pleads Guilty to Federal Meth and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Charleston woman caught with multiple pounds of methamphetamine and a firearm last year pled guilty to drug and gun charges today in federal court, announced United States Attorney Mike Stuart. Krista Lynn Morris, 34, pled guilty to possession with intent to distribute 500 grams or more of methamphetamine and unlawful possession of a firearm by a drug user.
“Morris was peddling significant quantities of meth,” said United States Attorney Mike Stuart. “Our law enforcement partners are working tirelessly to identify and investigate meth traffickers like Morris and, as a result, we are prosecuting scores of meth dealers.”
On April 2, 2019, agents contacted Morris in Teays Valley after learning that she was suspected of selling methamphetamine. Agents seized approximately an ounce of methamphetamine from Morris and learned that she had rented a hotel room at the Holiday Inn in South Charleston. Agents subsequently conducted a search of the room and seized approximately eight pounds of methamphetamine which Morris possessed. Morris admitted to agents that she was involved in distributing methamphetamine to multiple customers.
On August 28, 2019, agents arrested Morris and conducted a search of her residence in Charleston. During the search, agents recovered a Smith & Wesson .380 caliber pistol which Morris admitted she possessed. Morris also admitted that she was a methamphetamine user and thus, she was prohibited from possessing a firearm under federal law.
Morris faces 10 years to life in prison when sentenced on June 15, 2020.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ona Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
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Berkeley County woman sentenced to more than 12 years for role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brandy Netz, of Martinsburg, West Virginia, was sentenced today to 151 months incarceration for her role in a cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Netz, age 35, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride” in September 2019. Netz admitted to working with someone to distribute cocaine in Berkeley County in January 2019.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for heroin and fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA –Trey Cardale Campbell, of Martinsburg, West Virginia, was sentenced today to 180 months incarceration for drug distribution, U.S. Attorney Bill Powell announced.
After a December 2019 trial, the jury found Campbell, age 27, guilty of one count of “Possession with Intent to Distribute Furanyl Fentanyl, Heroin, and Fentanyl.” Campbell distributed heroin, furanyl fentanyl and fentanyl in May 2017 in Berkeley County.The jury found Campbell not guilty of one count of “Distribution of Heroin.”
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County couple sentenced for fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jimmie and Thanikwa Thompson, of Martinsburg, West Virginia, were sentenced today for to wire fraud, U.S. Attorney Bill Powell announced.
Jimmie, age 27, was sentenced to 37 months incarceration. Thanikwa, age 25, was sentenced to 37 months incarceration. Each pled guilty to one count of “Conspiracy to Commit Wire Fraud” in December 2019. The Thompsons secured a renter’s insurance policy from Allstate Insurance Company for $85,000 in February 2018. Later that month, the Thompsons purchased a space heater from a retailer and positioned it against an inflatable air mattress in their apartment on Winchester Avenue in Martinsburg. The couple then left the apartment with their dog to allow the space heater time to catch the apartment on fire. They then filed a fraudulent claim with Allstate to recover $50,000 of losses from the fire, and to secure a hotel room for several months of temporary housing.
The Thompsons were ordered to pay $54,891.28 in restitution.
Assistant U.S. Attorneys Lara Omps-Botteicher and Jarod J. Douglas prosecuted the cases on behalf of the government. The West Virginia State Fire Marshal and Allstate Insurance Company investigated.
Chief U.S. District Judge Gina M. Groh presided.
Arsonists Sentenced to 12 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Raymy Escoto (24, Bradenton) and Phillip Uscanga (25, Bradenton) each to 12 years in federal prison for arson. Escoto and Uscanga had pleaded guilty on September 25, 2019.
According to court documents, Escoto and Uscanga were part of an ongoing criminal enterprise in Manatee County through which they and others conspired to control a geographic territory around 11th Street East in Oneco; specifically with a heavily-armed trap house that doubled as a gang headquarters and prostitute and narcotics market.
On January 1, 2016, Uscanga and a co-conspirator drove a red Mustang by the home of Julio Tellez, and the co-conspirator shot at the home but did not hit anyone. Another co-conspirator, Jordan Rodriguez, followed in another vehicle, stopped, shot again at the home, and killed Tellez. Rodriguez also shot another man in the head, but that individual survived. Shortly thereafter, Uscanga and Escoto set fire to the red Mustang. They considered the car as evidence of the shooting and sought to destroy it.
Rodriguez was sentenced to three terms of life imprisonment for his role in this case.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the State Attorney’s Office (Twelfth Judicial Circuit). It was prosecuted by Assistant United States Attorneys Natalie Hirt Adams and Christopher F. Murray.
Armed Career Criminal Sentenced to 262 Months in Prison for Illegal Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of NORRIS DESHON ANDREWS, 34, to 262 months in prison for illegally possessing a firearm. ANDREWS, who was convicted by a federal jury on October 4, 2019, was sentenced earlier today before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.
As proven at trial, on May 15, 2018, police officers responded to a report of shots fired in the area of 25th and Girard Avenue North in Minneapolis. Witnesses described the shooter’s vehicle as an older model blue Chevrolet Tahoe. Officers recovered 13 discharged bullet casings from the scene. At trial, an eyewitness identified ANDREWS as the shooter.
As proven at trial, a little over an hour later, two individuals were shot and wounded in a parking lot near Plymouth Avenue North. Surveillance footage from a nearby security camera showed the shooter, who was later identified as ANDREWS, driving up to the scene in a blue Tahoe. ANDREWS and another individual got out of the vehicle and had a verbal altercation with several individuals standing on the sidewalk before ANDREWS pulled out a semi-automatic pistol and fired four shots, hitting two victims. ANDREWS then got back in the blue Tahoe and fired two more shots as he fled the scene. Hours later, officers located ANDREWS and took him into custody.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Samantha H. Bates prosecuted the case.
Defendant Information:
NORRIS DESHON ANDREWS, 34
City of residence unknown
Convicted:
- Felon in possession of a firearm - armed career criminal, 1 count
Sentenced:
- 262 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Armed Career Criminal Sentenced to 15 Years for Illegally Possessing FirearmRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard today sentenced Timothy Tijwan Doctor (42, Jacksonville) to 15 years in federal prison for possessing a firearms as a convicted felon. Due to his extensive felony criminal history, Doctor qualified as an Armed Career Criminal and faced an enhanced penalty.
According to court documents, on August 11, 2018, multiple officers from the Jacksonville Sheriff’s Office responded to a call at a home in Jacksonville. As officers arrived, they observed a crowd in front of the residence, with persons yelling, and what appeared to be a confrontation. As officers separated the individuals in the crowd, Doctor was identified as having a firearm. Officers made contact with Doctor and removed a loaded Ruger .9mm pistol from his waistband. Further investigation determined that Doctor is a multi-time convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Jacksonville Field Office and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
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.
Arizona Man Pleads Guilty to Taney County Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – An Arizona man has pleaded guilty in federal court to distributing large quantities of methamphetamine in Taney County, Missouri.
Darcell M. Mills, 41, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, March 13, to one count of conspiracy to distribute methamphetamine.
On Jan. 14, 2019, law enforcement received information that Mills had arrived in Branson, Missouri, with approximately five pounds of methamphetamine to sell. Officers searched a hotel room and a truck associated with Mills and found 303 grams of methamphetamine in the hotel room and 500 grams of methamphetamine hidden in the truck. Officers followed Mills to a residence in Lampe, Missouri, where he was arrested. After Mills was arrested, he admitted that he brought methamphetamine from Tucson to sell in Branson for $500 per ounce.
Mills also admitted that during a four-month stay in Branson in 2018, he was selling approximately 15.5 pounds of methamphetamine every week and a half. Mills sold approximately 165 pounds of methamphetamine while he was in Missouri. Mills said he left Branson in October 2018, after two loads of methamphetamine were seized by law enforcement.
Under federal statutes, Mills is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Branson, Mo., Police Department, Homeland Security Investigations, the Christian County, Mo., Sheriff’s Department, the Ozark, Mo., Police Department, and the Missouri State Highway Patrol.
Saturday 14 March 2020
U.S. Attorney’s Office Hosts Tribal Officers for Special Law Enforcement Commission TrainingRead the Press Release
The U.S. Attorney’s Office for the Northern District of Oklahoma in coordination with the Bureau of Indian Affairs (BIA) hosted tribal partners this week for Special Law Enforcement Commission training. The course was provided to officers who will be cross commissioned to work with the BIA.
“I am proud to partner with the Bureau of Indian Affairs to host tribal officers for Special Law Enforcement Commission training. Successful completion of this course allows tribal officers to enforce federal law in Indian country,” said U.S. Attorney Trent Shores. “This collaboration is critical to fight violent crime in Indian Country and to help better provide justice to victims and their families.”
Tribal Officers from Chickasaw, Muscogee (Creek), Choctaw, and Sac and Fox Nations attended the training. Assistant U.S. Attorneys taught sessions covering Indian Country jurisdiction, report writing and testifying, court amendment issues and discovery obligations.
On day one of the training, Tribal Liaison Shannon Cozzoni, discussed Indian Country Jurisdiction and elements of federal crimes, including homicide, assault, and assault on federal officers. She further addressed domestic abuse, sex crimes and child abuse. Deputy Criminal Chief Timothy Faerber reviewed key participants and procedural tools available to federal investigators, procedural steps in a federal prosecution, and procedural requirements that protect the rights of the accused.
On day two of the training, Victim Specialist Gayla Stewart provided an overview of the Crime Victims’ Rights Act and how to comply with the law. The law specifically outlines victims’ rights during the prosecution process. The Victim Specialist communicates with a victim about his or her case progression through the federal judicial system, helping to ensure the law is fulfilled and the victim receives needed support.
Also on day two, Criminal Chief Allen Litchfield discussed important legal considerations for comprehensive report writing. He further discussed courtroom testimony and the importance of accurately describing evidence and its relevance to the case. Appellate Chief Leena Alam instructed officers about practical applications of the Fourth Amendment. Her session was designed to help law enforcement officers ensure that they conduct traffic stops, searches, and seizures consistent with the Constitution. Assistant U.S. Attorney Ryan Roberts exposed the officers to the ethical, procedural, and Constitutional requirements concerning the criminal discovery process. Finally, Assistant U.S. Attorney Jeffrey Gallant ended the day with a session on civil liability, litigation, and the Federal Torts Claim Act process, which involves the legal principles concerning civil liability for law enforcement agents.
Tribal officers finished training on day three with a review and qualifying exam.
Five Defendants Convicted of Sex Trafficking, Alien Smuggling and Money LaunderingRead the Press Release
Following two weeks of trial, a federal jury in Brooklyn last night returned guilty verdicts convicting Jose Miguel Melendez-Rojas, Francisco Melendez-Perez, Abel Romero-Melendez, Jose Osvaldo Melendez-Rojas and Rosalio Melendez-Rojas, all members of the Melendez-Rojas Organization, of sex trafficking, sex trafficking conspiracy, sex trafficking of minors, interstate prostitution, alien smuggling and money laundering conspiracy. When sentenced by United States District Judge Allyne R. Ross, the defendants each face a maximum sentence of life imprisonment on the most serious charge. A sixth co-defendant, Fabian Reyes-Rojas, pleaded guilty to sex trafficking conspiracy and sex trafficking on December 27, 2019. Jose Osvaldo Melendez-Rojas and Rosalio Melendez-Rojas were extradited to the United States from Mexico in October 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the verdicts.
Between 2006 and July 2017, the defendants transported women and girls, including minors, to the United States and coerced them to work in prostitution. The defendants used false promises of love, marriage and a better life to lure their victims into romantic and sexual relationships, and then isolated them from their families by bringing them to live with the defendants in Tenancingo, Mexico. Upon arrival in the United States, the defendants resorted to brutal beatings, threats of violence, forced abortions and psychological manipulation to compel their victims to work in prostitution in New York City, Long Island, New Jersey, Connecticut and Delaware. The defendants took the proceeds generated from the victims’ prostitution, and laundered it to conceal its source.
At the trial, a victim identified as “Delia” testified that she was forced into prostitution by Melendez-Perez and his uncle Rosalio Melendez-Rojas when she was only 14 years old. When she refused to work, Melendez-Perez beat her, and when he thought she might be pregnant, he tried to force her to have a miscarriage. During their six to seven-hour working shifts, the victims were typically forced to have sex with 15 to 20 men. The defendants confirmed the number of customers by counting the number of unused condoms returned at the end of the victims’ shifts.
“The crimes committed by the members of the Melendez-Rojas Trafficking Organization were horrific,” stated United States Attorney Donoghue. “It is my hope that today’s verdicts bring some measure of closure to the young women who bravely testified during the trial and who suffered greatly while under the control of the defendants. We will not tolerate the sexual exploitation of women and girls by brutal criminals like these defendants.”
“The atrocities this organization committed against young women, robbing them of their youth and forcing them to work as prostitutes, are disgraceful,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI and our partners work tirelessly to gain the trust of those who are forced into this reprehensible crime, ensuring these victims and their families are given an opportunity once they are rescued from sex traffickers. This conviction does not just point to the outstanding work of the investigative team, it serves as a testament to the will and courage of those victims to tell their stories.”
The investigation, prosecution, bilateral enforcement action and extradition of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the bilateral initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 170 defendants in multiple cases in Georgia, New York, Florida and Texas, in addition to numerous federal and state prosecutions of associated sex traffickers in Mexico. The extraditions in this case are the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 80 defendants for sex trafficking; assisted more than 150 victims, including over 40 minors; reunited 19 victims’ children with their mothers; and secured restitution orders of over $4 million on behalf of trafficking victims.
The government’s case is being prosecuted by Assistant United States Attorneys Tanya Hajjar, Erin Argo and Gillian Kassner.
The Defendants:
JOSE MIGUEL MELENDEZ-ROJAS
Age: 43
MexicoFRANCISCO MELENDEZ-PEREZ (also known as “Paco” and “El Mojarra”)
Age: 25
Queens, New YorkABEL ROMERO-MELENDEZ (also known as “La Borrega” and “Borrego”)
Age: 33
Queens, New YorkJOSE OSVALDO MELENDEZ-ROJAS
Age: 43
MexicoROSALIO MELENDEZ-ROJAS (also known as “Leonel, “Wacho” and “El Guacho”)
Age: 38
MexicoCo-Defendant Who Previously Pleaded Guilty:
FABIAN REYES-ROJAS
Age: 40
MexicoE.D.N.Y. Docket No. 17-CR-434 (ARR)
Columbus Man Sentenced to 144 Months for Receiving Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Christopher Longo, 38, was sentenced today in federal court in Omaha for receipt of child pornography and possession of child pornography. United States District Judge Robert F. Rossiter, Jr. sentenced Longo to 144 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Longo will serve a 10-year term of supervised release and will be required to register as a sex offender.
In May 2018 officers with the Columbus Police Department received a Cyber Tipline Report stating that an IP address associated with a Columbus resident had uploaded child pornography to an online account. Officers executed a search warrant at Longo’s residence in November 2018. Longo initially admitted to downloading child pornography and later, after failing a polygraph examination, admitted to multiple instances of sexual contact with minors. Officers searched a computer and cell phone seized from Longo’s residence and located at least 682 images of child pornography on those devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Columbus Police Department.
Friday 13 March 2020
Wisconsin Man Charged with Making a False Statement in the Attempted Acquisition of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Milwaukee, Wisconsin, man has been indicted by a federal grand jury for two counts of Making a False Statement in the Attempted Acquisition of a Firearm.
William Eugene Baehring, age 67, was indicted on February 4, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 12, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 30, 2019, and January 4, 2020, Baehring twice attempted to purchase firearms from licensed dealers of firearms. Baehring knowingly made false and fictitious written statements in an attempt to deceive the licensed dealers.
The charges are merely accusations and Baehring is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Baehring was released on bond pending trial which has not been set yet.
Watertown Man Sentenced to 160 Months for Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Joseph Williams, age 31, of Watertown, New York, was sentenced on Wednesday to serve 160 months in prison for receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith, Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.
As part of his earlier guilty plea, Williams admitted that he used the Kik Messenger application to trade child pornography with other Kik users in 2016. Execution of search warrants on Williams’ computers in February 2018 revealed that he possessed 4,875 images and 2,052 video files depicting minors engaged in sexually explicit conduct, including depictions of the rape and sodomy of prepubescent children and toddlers. In addition to the large number of files he possessed, other factors taken into account in sentencing included Williams’ admission that he took surreptitious pictures of children in the community and shared them with others on the Internet, and that he possessed a manual on how to find, groom, and sexually abuse children.
Senior United States District Judge Thomas J. McAvoy also imposed a 20-year term of supervised release, which will start after Williams is released from prison, ordered a $300 special assessment, and restitution in the amount of $3,000 per victim for each of 15 children depicted in the images and videos that Williams received, distributed, and possessed. As a result of his conviction, Williams will be required to register as a sex offender upon his release from prison.
This case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Villages Dermatologist Agrees to Pay More Than $1.7 Million to Settle False Claims Act Liability for Inflated Medicare ClaimsRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces today that Dr. Thi Thien Nguyen Tran and Village Dermatology and Cosmetic Surgery, L.L.C. have agreed to pay the United States $1.744 million to resolve allegations that they violated the False Claims Act by submitting inflated claims to Medicare for wound repairs related to Mohs surgery.
The settlement relates to Dr. Tran’s submission of claims for adjacent tissue transfers performed at Village Dermatology. Dr. Tran and Village Dermatology performed wound repairs that were allegedly billed to Medicare as more complex adjacent tissue transfers, which carry a higher level of reimbursement. According to the settlement agreement, from January 1, 2011, through July 31, 2016, Dr. Tran and Village Dermatology billed for 14,000-level tissue transfers, which should have been billed as lower-level wound repairs. These submissions resulted in inflated claims that were paid by Medicare.
“Protecting federal healthcare programs and the patients who receive their care is among our top priorities,” said U.S. Attorney Maria Chapa Lopez. “The U.S. Attorney’s Office will continue to hold accountable those who inflate claims to Medicare or abuse any of our nation’s healthcare programs.”
“Physicians who seek to profit by systematically overbilling Medicare will instead pay dearly for their illegal behavior,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “We will continue to work closely with our law enforcement partners to thoroughly investigate such schemes.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by Dr. Robert Green and Emily Kennedy. Dr. Green and Ms. Kennedy sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Dr. Green and Ms. Kennedy will receive over $305,000 of the proceeds from the settlement with Dr. Tran and Village Dermatology.
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the U.S. Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Jeremy R. Bloor led the investigation.
The case is captioned United States ex rel. Green and Moore v. Tran, Case No. 5:15-cv-60-OC-41PRL. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
VA Employee Found Guilty of Corruption Charges and Defrauding VA of Nearly $19 Million in A YearRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that yesterday a jury sitting in U.S. District Court in Denver found former Veterans Affairs (VA) employee Joseph Prince, age 60, of Aurora, Colorado guilty of felony health care fraud, conspiracy, payment of illegal kickbacks and gratuities, money laundering charges and conflict of interest. The verdict is the result of an eight-day jury trial before U.S. District Court Judge Raymond P. Moore. Prince’s bond was continued and he was ordered to home incarceration pending his sentencing.
According to the indictment and evidence presented at trial, Prince was a Beneficiary Provider Relationships Specialist with the VA’s Spina Bifida (SB) Health Care Benefits Program, which covers medical needs of children of certain veterans of the Korea and Vietnam wars suffering from SB. Prince worked for a VA call center in Denver, and spoke with health care providers and SB beneficiaries or their families regarding their health care needs and care reimbursement.
Prince defrauded the VA’s Spina Bifida Health Care Benefits Program by signing up the family members of the program’s beneficiaries as home health “contractors” with sham home health entities run by Prince’s associates. Prince knew that the sham home health entities were not authorized providers by the VA. He nonetheless encouraged the family members to submit bills despite the fact that they were not approved providers and to include the bills for services that either were not provided or were not allowed by the VA. He then accepted payments from the associated home health entities for referrals he himself made to those agencies. Prince’s referrals led to payments totaling approximately $20 million from the VA to the Prince-related home health agencies, which were run by associates including his wife, his brother-in-law, his half-sister, and friends.
Ultimately Prince referred approximately 45 SB beneficiaries to the sham home health entities. The total amount of fraudulent claims paid by the SB Health Care Benefits Program to the five Home Health Entities totaled approximately $19 million. Of that amount, Prince received approximately $1.5 million in kickbacks from two home health entities between December 2017 and June 2018.
“To steal from a program that is intended to help our veterans and their children who suffer from serious medical conditions is reprehensible,” said U.S. Attorney Jason Dunn. “Mr. Prince was also harming the American taxpayers and will now pay a significant price for his actions.”
“The crimes perpetrated by Joseph Prince and his associates were especially troubling since Prince was a VA official,” said Gregg Hirstein, Special Agent in Charge, VA Office of Inspector General. “The Department of Veterans Affairs Office of Inspector General is committed to holding accountable those who illegally enrich themselves using VA programs intended to help our nation’s veterans and their dependents, who deserve to be served by a workforce of the highest integrity. I am thankful for the close coordination of the investigative agencies and the United States Attorney’s Office to quickly end this massive fraud.”
“The sizeable amount of false claims Joseph Prince submitted and subsequent kickbacks he received are an affront to government programs intended to help the public,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “It is unacceptable to abuse a position of trust for personal financial gain and for those that do, IRS-Criminal Investigation will seek justice on behalf of the true beneficiaries of government benefits programs.”
“The recent conviction of Joseph Prince is significant and highlights the FBI’s collaboration with the United States Attorney’s Office as we hold this defendant accountable for abusing his position as an official at the Department of Veteran’s Affairs to manipulate government contracts for personal gain,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI will continue to use all available tools to detect illegal conflicts of interest and bribery schemes in government entities.”
Long-time friend of Prince and co-conspirator Roland Vaughn pled guilty to paying an illegal gratuity to a public official on August 1, 2019, and is scheduled to be sentenced by Judge Moore on April 9, 2020. Glenn and Catherine Beach, who were also friends of Mr. Prince, pleaded guilty to paying an illegal gratuity to Prince. The Beaches will be sentenced on April 1, 2020.
Prince will be sentenced on June 11, 2020. Felony Conflict of Interest carries a penalty of not more than five years in prison and a fine of not more than $250,000 or two times the gain or loss from the offense per count. Health care fraud carries a penalty of not more than 10 years in prison and a fine of not more than $250,000 or two times the gain or loss from the offense per count. Conspiracy to Commit an Offense against the United States carries a penalty of not more than five years in prison and a fine of not more than $250,000 or two times the gain or loss from the offense. Soliciting/Receiving an Illegal Gratuity carries a penalty of not more than two years in prison and a fine of not more than $250,000 or two times the gain or loss from the offense per count. Unlawful Monetary Transactions carries a penalty of not more than 10 years in prison and a fine the greater of $250,000 or two times the value of the property involved in the transaction per count. Money Laundering carries a penalty of not more than 20 years in prison and a fine the greater of $500,000 or twice the value of property involved in the transaction per count.
The government will seek forfeiture of specific assets and restitution to the Veterans Health Administration in the amount of approximately $19 million.
This case was investigated by VA’s Office of the Inspector General, the FBI, and IRS-CI.
This case is being prosecuted by Assistant U.S. Attorneys Anna K. Edgar and Hetal J. Doshi.
Upstate Drug Dealer Sentenced to 35 Years in Federal Prison After Offering Cellmate $10,000 to Kill Prosecutor and WitnessRead the Press Release
Spartanburg, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Detric McGowan, aka “Fat,” 47, of Piedmont, has been sentenced to 35 years in federal prison after pleading guilty to participating in a drug conspiracy involving cocaine, heroin, fentanyl, and tramadol; possessing a kilogram or more of heroin with the intent to distribute; conspiring to launder money; obstruction of justice/witness tampering; and obstruction of justice/retaliation.
Evidence presented at the change of plea hearing showed that beginning as early as 2016, law enforcement in Greenwood County began to see a rise in the number of opioid-abuse related cases, drug overdose deaths, and overdose non-fatalities attributed particularly to heroin and fentanyl toxicity. Commonly found at the opioid overdose incidents and routinely seized by local law enforcement were counterfeit 30 milligram-size blue prescription pain pills laced with heroin and/or fentanyl and scored with a “V” on one side and “4812” on the other side.
Based on human intelligence, advanced electronic surveillance, the execution of search warrants, and other investigative techniques, law enforcement determined that McGowan was a member of a drug trafficking organization operating in the Upstate of South Carolina, primarily in Laurens and Greenwood Counties. The organization was responsible for the distribution of in excess of $1 million dollars’ worth of heroin, cocaine, and/or fentanyl in the Upstate and elsewhere. Police seized in excess of 20 kilograms of heroin and approximately $1 million during the investigation. McGowan was indicted along with several co-conspirators in February 2019 and taken into custody.
In July 2019, McGowan began to discuss with a person who was incarcerated with him having his prosecutor and at least one witness killed. This person alerted law enforcement to the threat and an immediate investigation began. The evidence showed McGowan had become frustrated with his legal position and desired to have his prosecutor and a witness killed. McGowan was recorded agreeing to pay the person $10,000 to kill the prosecutor and witness and providing information about how to find the targets. He also provided a telephone number and wrote down the name of the witness, so that upon release the cooperator could carry out the plan. McGowan confessed to the FBI of the plot he had put in motion.
United States District Court Judge Donald C. Coggins, Jr., of Spartanburg, sentenced McGowan to 420 months in federal prison, to be followed by 10 years of court-ordered supervision. There is no parole in the federal system.
The drug case was investigated by agents of the Drug Enforcement Administration (DEA) and the Internal Revenue Service – Criminal Investigations. The threat was investigated by the Federal Bureau of Investigation, the United States Marshals Service, and the 7th Circuit Solicitor’s Office. Assistant United States Attorneys Jim May, Jason Peavy, Sloan Ellis, and Katie Stoughton prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
United States Attorney David C. Joseph Hosts Inaugural "Law Enforcement Forum"Read the Press Release
SHREVEPORT, LAFAYETTE, MONROE, ALEXANDRIA, LAKE CHARLES, La. – This week, United States Attorney David C. Joseph hosted the Western District of Louisiana’s first Department of Justice sponsored Law Enforcement Forum on March 10, 2020, in Shreveport, and March 12, 2020, in Lafayette, focusing on terror threat analyses, legal updates, training in federal criminal law and procedure, and information pertaining to resources and assistance available to Louisiana’s federal, state, and local law enforcement agencies from the United States Attorney’s Office.
Approximately 171 state, local and federal officers representing law enforcement agencies from across Louisiana attended. Speakers and panelists included United States Attorney David C. Joseph, Assistant U.S. Attorneys from the Western District of Louisiana, and law enforcement agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), and U.S. Department of Homeland Security (HSI). The open-forum question and answer session panel of federal law enforcement agents and Assistant U.S. Attorneys was moderated by Alan Alkire, the Law Enforcement Coordinator for the Western District.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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U.S. Pipeline Company to Modify Its National Operations to Implement Safeguards Resulting from Oil SpillRead the Press Release
Federal officials announced a civil settlement with Plains All American Pipeline L.P. and Plains Pipeline L.P. (Plains) arising out of Plains’ violations of the federal pipeline safety laws and liability for the May 19, 2015, discharge of approximately 2,934 barrels of crude oil from Plains’ Line 901 immediately north of Refugio State Beach, located near Santa Barbara, California.
The discharge was caused by Plains’ failure to address external corrosion and have adequate control-room procedures in place, and was further exacerbated by Plains’ failure to respond properly to the release. The crude oil discharge resulted in the oiling of Refugio State Beach, the Pacific Ocean, and other shorelines and beaches, resulted in beach and fishing closures and adversely impacted natural resources such as birds, fish, marine mammals and shoreline and subtidal habitat. The United States worked closely with co-plaintiff the state of California, and both the United States and California are signatories to the complaint and the consent decree.
The complaint seeks injunctive relief, penalties, natural resource damages and assessment costs, and response costs for the United States, on behalf of the U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration; the U.S. Environmental Protection Agency; the U.S. Department of the Interior; the Department of Commerce, National Oceanic and Atmospheric Administration and the U.S. Coast Guard. The United States’ claims are under the federal pipeline safety laws, the Clean Water Act, and the Oil Pollution Act of 1990.
The settlement requires Plains to implement injunctive relief to improve Plains’ nationwide pipeline system and bring it into compliance with the federal pipeline safety laws, in addition to addressing unique threats and modifying operations that caused the Line 901 oil spill; pay $24 million in penalties; pay $22.325 million in natural resource damages, and $10 million for reimbursed natural resource damage assessment costs; and pay $4.26 million for reimbursed Coast Guard clean-up costs. Excluding the value of the required injunctive relief changes to Plains’ national operations, the settlement in conjunction with reimbursed costs is valued in excess of $60 million.
“Today’s settlement shows federal and local governments working in partnership to hold industry fairly accountable,” said Deputy Assistant Attorney General Bruce Gelber for the Justice Department’s Environment and Natural Resources Division. “The agreement will also promote public health and safety, and protect the environment for local communities.”
“This case is a classic example of why the Clean Water Act authorizes penalties for harmful oil discharges,” said EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance Susan Bodine. “With this settlement, EPA, along with its federal and state partners, is holding Plains accountable for the damage they caused to natural resources.”
“We are pleased to join this agreement with industry and our co-trustees to help restore vital habitats, wildlife and recreational areas injured by this oil spill,” said Nicole LeBoeuf, acting director of NOAA's National Ocean Service. “Local communities and economies depend on these ecosystems, and we look forward to working with the public on projects to restore them to health.”
The section of the California coast affected by the Plains 901 Line oil spill Refugio has one of the most diverse and abundant assemblages of marine organisms in the world. A rich array of marine and coastal habitats including the open ocean, rocky shores, sandy beaches and kelp forests, support a diverse array and large numbers of marine fish, marine mammals and seabirds.
The settlement is subject to a 30-day public comment period that begins with the posting of a notice in the Federal Register. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.
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.
U.S. Attorney’s Office to Conduct Election Day MonitoringRead the Press Release
CHICAGO — The U.S. Attorney’s Office will monitor the federal and local primary elections in Chicago and surrounding suburbs on March 17, 2020, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced today.
As part of the monitoring effort, the office will operate a telephone hotline for citizens to report complaints related to the voting process. Assistant U.S. Attorneys and other office personnel will monitor the hotline and respond to complaints, as needed.
The hotline number, staffed on Election Day only, is (312) 469-6157.
“A vital part of our democracy is the integrity of our electoral system,” said U.S. Attorney Lausch. “A citizen who is entitled to vote should not be hindered or prevented from doing so, and we stand ready to ensure the sanctity of the process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations wherever they occur. The Department’s longstanding Election Day Program seeks to ensure public confidence in the voting process.
Federal voting-rights laws protect the rights of voters to mark their own ballot or be assisted by a person of their choice. Actions designed to interrupt or intimidate voters at polling places may constitute a violation. Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. Violations carry penalties ranging from one to ten years in prison, and fines of up to $250,000.
For information as to the location and hours of polling sites, Illinois residents are advised to contact the Illinois State Board of Elections by logging on to www.elections.il.gov or by calling (312) 814-6440.
Two Men Sentenced for Attempted Enticement and Receipt of Child PornographyRead the Press Release
This week in federal court, two men were sentenced for attempting to sexually exploit minors and a third man was sentenced for failing to register as a sex offender, announced U.S. Attorney Trent Shores.
“The sexual predation of children by adults is perverse and sickening. Social media platforms are the primary means of communication by America’s youth, and, in turn, how predators hunt and seek to exploit vulnerable children,” said U.S. Attorney Trent Shores. “The immutable nature of child sex predators underscores the important work by cybercrimes detectives. From outreach and education to investigation and enforcement, our local, state, and federal law enforcement officers are working day and night to protect Oklahoma’s children. I commend their work and assure you we will continue to bring child predators to justice.”
Arthur James Mann, 34, of Bristow, was sentenced to 121 months in federal prison to be followed by 10 years of supervised release. A federal jury convicted Mann of attempted coercion and enticement of a minor on Dec. 17, 2019. Mann communicated with an individual he believed to be 13 years of age but instead was an undercover officer. From July 29 to Aug. 17, 2018, Mann communicated with the “girl” on Facebook, telling her that his name was Andrew Mason and that he was 16 years old. Mann initiated multiple sexual conversations with the “girl” and requested nude photos. Mann further suggested the two meet in order to have sex on Aug. 17, 2018. Mann arrived that night in his pajamas and slippers to meet the 13-year-old girl. Instead, he was met by officers from the Bristow Police Department and taken into custody. The Bristow and Sapulpa Police Departments conducted the investigation. Assistant U.S. Attorneys Edward Snow and Scott Proctor prosecuted the case.
Casey Adam Parker, 40, of Afton, was sentenced to 87 months in federal prison to be followed by seven years of supervised release. Parker pleaded guilty Dec. 11, 2019, to attempted receipt of child pornography. On July 2, 2019, Parker used a social media app to engage with an individual he believed to be a minor. In actuality, he was speaking to a law enforcement officer. Parker knowingly attempted to persuade the “minor” to engage in sexual activity and to send him sexually explicit pictures. Parker was arrested July 2, as part of Operation Independence Day, a month-long operation to apprehend child predators and recover victims of child exploitation and sex trafficking. The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.
Additionally, a third man was sentenced this week for failing to register as a sex offender. Kacey J. Hamilton, 29, of Tulsa, aka Brandon Bickford, was sentenced to 12 months in federal prison to be followed by five years of supervised release. Hamilton pleaded guilty Dec. 11, 2019, to failure to register as a sex offender. Hamilton resided in Oklahoma since August 2018, and knowingly failed to register and update his registration as a sex offender. The Tulsa Police Department and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Victor A.S. Régal prosecuted the case.
Two Hudson County Men Charged with Using Drones to Smuggle Contraband into Fort Dix Federal PrisonRead the Press Release
TRENTON, N.J. – Two Hudson County, New Jersey, men were charged today with conspiring to use drones to smuggle contraband, including marijuana, steroids, syringes, cell phones and cell phone equipment, into the federal correctional facility at Fort Dix, U.S. Attorney Craig Carpenito announced.
Nicolo Denichilo, 38, of Jersey City, New Jersey, and Adrian Goolcharran, a/k/a “Adrian Ajoda,” a/k/a “Adrian Ahoda,” 35, of Union City, New Jersey, were each charged by complaint with one count of conspiring to smuggle contraband and to defraud the United States and one count of smuggling contraband into the federal prison at Fort Dix. Denichilo was arrested March 12, 2020, after federal law enforcement agents learned of a scheduled drone drop at Fort Dix. He had his initial appearance this afternoon before U.S. Magistrate Judge Tonianne Bongiovanni in Trenton federal court and was released on $100,000 unsecured bond. Goolcharran remains at large.
According to the documents filed in this case and statements made in court:
Special agents of the U.S. Department of Justice, Office of Inspector General (DOJ-OIG) obtained evidence of at least seven drone deliveries since July 2018 containing contraband meant for inmates at Fort Dix. Goolcharran used cell phones to coordinate the drops with others, including text messaging aerial shots of locations at Fort Dix to better position the drops and to discuss weather conditions. On the same day as a drone drop in April 2019, local police in the area conducted a vehicle stop on Denichilo and Goolcharran less than five miles from Fort Dix. On March 7, 2020, an individual fitting Goolcharran’s description and another individual were captured by a surveillance camera carrying and flying a drone from a launch spot located in the woods outside of Fort Dix. Law enforcement also obtained evidence of Goolcharran bringing multiple drones to a store for repairs, including a broken drone shortly after the March 7, 2020, drone flight.
On March 12, 2020, law enforcement agents, acting on information obtained by Fort Dix officials, approached Denichilo and another individual at a launch site near Fort Dix, minutes after Fort Dix officials had observed a drone flying over a housing unit at the prison. Both men fled, and Denichilo was apprehended hiding in a ditch near the launch site. Fort Dix officials also found an inmate in the area of the drone drop inside the prison in possession of 34 cell phones, nine chargers, 51 SIM cards and other telephone equipment. Agents also seized an SUV near the launch site outside of the prison that contained the drone in the backseat.
Contraband that has been seized by authorities pursuant to the intercepted drone drops into Fort Dix includes marijuana, steroids, more than 160 cell phones, 150 SIM cards, 74 cell phone batteries and chargers, 35 syringes and two metal saw blades. Denichilo’s fingerprint was obtained from a plastic bag recovered from one of the drone drops at Fort Dix. Goolcharran’s DNA was recovered from electrical tape found on the drone used in a July 2018 drop.
The conspiracy count carries a maximum penalty of five years in prison and maximum fine of $250,000 and the contraband smuggling count carries a maximum penalty of one year in prison and $100,000 fine.
U.S. Attorney Carpenito credited agents of DOJ-OIG, New Jersey area office, under the direction of Special Agent in Charge Guido Modano, and its Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Superintendent Jonathan Jackson; and the U.S. Department of Transportation – Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Douglas Shoemaker, with the investigation leading to the charges.
He also thanked Federal Bureau of Prisons personnel at Fort Dix, under the direction of Warden David Ortiz; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas J. Mahoney; and officers with the Pemberton Borough Police Department, under the direction of Chief Edward Hunter; the Pemberton Township Police Department, under the direction of Chief David Jantas; and Chesterfield Township Police Department, under the direction of Chief Kyle Wilson, for their assistance.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jeffrey Manis of the Office’s Special Prosecutions Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Eagle Butte Women Indicted on Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that two Eagle Butte, South Dakota, women have been indicted by a federal grand jury for Maintaining a Drug Involved Premises Near a Playground.
Lena Marie Flying By, age 52, and Juanita Red Bird, age 26, were indicted on March 9, 2020. They appeared before U.S. Magistrate Judge Mark A. Moreno on March 11 and 13, 2020, and each pled not guilty to their respective Indictments.
The maximum penalty upon conviction is up to 20 years in prison and/or a $500,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictments allege that Flying By, between March 28, 2015, and March 9, 2020, and Red Bird, between October 1, 2018, and October 1, 2019, unlawfully and knowingly used and maintained a residence for the purposes of distributing and using marijuana, within 1,000 feet of a playground in Eagle Butte, South Dakota.
The charges are merely accusations and Flying By and Red Bird are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Flying By and Red Bird were released on bond pending trial. A trial date has not been set.
Two Billings residents charged in sex trafficking, narcotics, firearms investigationRead the Press Release
BILLINGS—Two Billings men accused of crimes stemming from an investigation into sex trafficking, drug distribution and firearms violations were arraigned this week on charges in a multi-count indictment, U.S. Attorney Kurt Alme said.
William Maurice Newkirk, 39, pleaded not guilty today to 15 counts, while co-defendant Djavon Lamont King, 29, pleaded not guilty on Thursday to six counts.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.
U.S. Magistrate Judge Timothy J. Cavan presided. Newkirk and King are detained pending further proceedings.
If convicted of the most serious crime, Newkirk and King face a mandatory minimum 15 years to life in prison, a $250,000 fine and five years to a lifetime of supervised release.
The indictment charges Newkirk with 15 counts, including four counts of sex trafficking by force, fraud and coercion, transportation of a person with intent to engage in prostitution, sex trafficking of a minor and by force, fraud and coercion, sex trafficking of a minor, attempted sex trafficking of a minor, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine, two counts of distribution of cocaine to person under the age of 21, possession of a firearm in furtherance of a drug trafficking offense and two counts of prohibited person in possession of a firearm.
The indictment charges King with six counts, including two counts of sex trafficking by force, fraud and coercion, possession with intent to distribute cocaine, two counts of conspiracy to possess with intent to distribute cocaine and distribution of cocaine to a person under the age of 21.
The indictment alleges that from about 2018 through 2019, the defendants became involved in commercial sex in Billings and the distribution of illegal narcotics. The indictment also alleges that Newkirk illegally possessed firearms during this time.
Assistant U.S. Attorneys Zeno Baucus and Bryan Dake are prosecuting the case, which was investigated by the FBI.
Pacer case reference. 20-25.
If the above case are of interest to your media organization and the community it serves, we encourage you to monitor its progress through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Three Muncie Police Officers indicted for using excessive force and attempting to cover it upRead the Press Release
INDIANAPOLIS – A federal grand jury in Indianapolis, Indiana, returned a 12-count indictment against two officers – Joseph Chase Winkle, 34, and Jeremy Gibson, 30 – and one sergeant, Joseph Krejsa, 50, of the Muncie Police Department for their roles in using excessive force against arrestees and attempting to cover up the misconduct. Today’s indictment was announced by Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, and FBI Indianapolis Acting Special Agent in Charge Robert Middleton.
“No one is above the law,” Minkler said. “The civil rights violations alleged by the grand jury’s indictment are very serious. Unfortunately, misconduct by a few can shake the public’s confidence in the many men and women in law enforcement who proudly and professionally protect the public day in and day out. Today’s indictment should make clear the commitment of this Office and the Department of Justice to reassure the public and hold accountable those who violate the civil rights of others even though they wear a uniform.”
“Today’s indictment sends a strong message that those who violate their oath to protect and serve the public will be held accountable for their actions,” said Acting Special Agent in Charge Robert Middleton, FBI Indianapolis. “The FBI is committed to preserving public trust,
especially in those who have sworn to uphold the law. To this end, the FBI will vigorously pursue civil rights violations.”
The indictment charges Winkle with nine felony offenses, Gibson with one felony offense, and Krejsa with two felony offenses. Winkle is charged with depriving four arrestees of their rights to be free from excessive force (resulting in bodily injury and/or involving the use of a dangerous weapon), in violation of 18 U.S.C. § 242, and writing false reports about his use of force against those four arrestees and two additional arrestees, in violation of 18 U.S.C. § 1519. According to the indictment, Winkle’s actions resulted in one of these arrestees suffering serious injuries and another arrestee being knocked unconscious.
Gibson is charged with one count of violating 18 U.S.C. § 242 for depriving an arrestee of his right to be free from excessive force by stomping on and delivering knee strikes to the arrestee’s head, which resulted in bodily injury and involved the use of a dangerous weapon.
Krejsa is charged with two counts of violating 18 U.S.C. § 1519 for writing false reports related to two of Winkle’s excessive force incidents. According to the indictment, on one occasion, Krejsa minimized the level of force used by Winkle during one arrest, and, on another occasion, falsely represented that a different Muncie Police Department sergeant cleared Winkle of his use of force when it was actually Krejsa who conducted that review.
The maximum penalties for the charged crimes are 10 years of imprisonment for each of the deprivation-of-rights offenses and 20 years of imprisonment for each of the false report offenses.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The Federal Bureau of Investigation conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Civil Rights Division and Assistant United States Attorney Nicholas J. Linder are prosecuting the case.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to identify, investigate, and prosecute criminal civil rights violations, including those perpetrated by law enforcement officers. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 7.1.
Three Muncie Police Officers Indicted for Using Excessive Force and Attempting to Cover It UpRead the Press Release
A federal grand jury in Indianapolis, Indiana, returned a 12-count indictment against two officers – Joseph Chase Winkle, 34, and Jeremy Gibson, 30 – and one sergeant, Joseph Krejsa, 50, of the Muncie Police Department for their roles in using excessive force against arrestees and attempting to cover up the misconduct. Wednesday’s indictment was announced today by Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Josh Minkler for the Southern District of Indiana, and FBI Indianapolis Acting Special Agent in Charge Alex Middleton.
The indictment charges Winkle with nine felony offenses, Gibson with one felony offense, and Krejsa with two felony offenses. Winkle is charged with depriving four arrestees of their rights to be free from excessive force (resulting in bodily injury and/or involving the use of a dangerous weapon), in violation of 18 U.S.C. § 242, and writing false reports about his use of force against those four arrestees and two additional arrestees, in violation of 18 U.S.C. § 1519. According to the indictment, Winkle’s actions resulted in one of these arrestees suffering serious injuries and in another arrestee being knocked unconscious.
Gibson is charged with one count of violating 18 U.S.C. § 242 for depriving an arrestee of his right to be free from excessive force by stomping on and delivering knee strikes to the arrestee’s head, which resulted in bodily injury and involved the use of a dangerous weapon.
Krejsa is charged with two counts of violating 18 U.S.C. § 1519 for writing false reports related to two of Winkle’s excessive force incidents. According to the indictment, on one occasion, Krejsa minimized the level of force used by Winkle during one arrest, and, on another occasion, falsely represented that a different Muncie Police Department sergeant cleared Winkle of his use of force when it was actually Krejsa who conducted that review.
The maximum penalties for the charged crimes are 10 years of imprisonment for each of the deprivation-of-rights offenses and 20 years of imprisonment for each of the false report offenses.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The Federal Bureau of Investigation conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Civil Rights Division and Assistant United States Attorney Nicholas J. Linder are prosecuting the case.
Thompson Man Faces at Least 20 Years in Prison for Kidnapping and Sexually Assaulting Massachusetts GirlRead the Press Release
John Durham, United States Attorney for the District of Connecticut, announced that JOSHUA BESAW, 36, of Thompson, Connecticut, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to kidnapping and sexually assaulting a 12-year-old girl last year.
According to court documents and statements made in court, on May 31, 2019, Besaw encountered a 12-year-old girl (“minor victim”) at a park in Webster, Massachusetts, and tricked the minor victim into entering his vehicle. Besaw, who identified himself as “Chuck,” then drove the minor victim to a wooded area in Thompson, Connecticut, where he sexually assaulted her. After the assault, Besaw drove the minor victim back to Massachusetts, where he released her in a neighborhood that was unfamiliar to her and refused to return her cellphone. The minor victim then borrowed a phone from a stranger to contact her parents who picked her up and brought her to the police station to report the incident. Later that day, a sexual assault examination of the victim was conducted at a medical facility.
Besaw was identified as a suspect after an extensive investigation led by Webster Police with support from the Connecticut State Police, which included analysis of surveillance video collected from numerous residences and businesses in Connecticut and Massachusetts.
On July 10, 2019, investigators conducting surveillance of Besaw collected cigarette butts that Besaw had discarded. The DNA evidence collected from the discarded cigarette butts matched DNA evidence collected from the minor victim on May 31, 2019.
Besaw was arrested on July 17, 2019.
Judge Shea scheduled sentencing for June 15, 2020, at which time Besaw faces a mandatory minimum term of imprisonment of 20 years and a maximum term of imprisonment of life. Besaw has been detained since his arrest.
This matter has been investigated by the Webster Police Department, Connecticut State Police and Federal Bureau of Investigation, with the assistance of the Massachusetts State Police Crime Laboratory. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Statement from U.S. Attorney D. Michael Dunavant, Western District of Tennessee, on the Justice Department’s Ongoing Response to COVID-19Read the Press Release
Memphis, TN –"The Department of Justice is comprised of about 40 components that have a broad array of national security, law enforcement, and criminal justice system responsibilities. Therefore, a significant portion of the Department’s mission relates to the safety of human life and the protection of property.
The U.S. Attorney’s Office for the Western District of Tennessee is closely monitoring the situation surrounding the coronavirus disease of 2019 (COVID-19), and is implementing the Contingency Plan and Guidance of the Department of Justice, White House Task Force, Centers for Disease Control and Prevention (CDC), Office of Management and Budget, and Office of Personnel Management to mitigate risks to individual employees and the general public. However, citizens can be assured that the essential federal law enforcement, criminal prosecution, and national security functions of this office will continue as usual in order to preserve and protect public safety in West Tennessee."
Earlier today, the United States District Court for the Western District of Tennessee issued the following notice and order:
Due to exigent circumstances resulting from the COVID-19 pandemic, all jury trials and jury selections in the U.S. District Court for the Western District of Tennessee scheduled for now through March 27 are continued until further notice. Courthouses otherwise remain open for business. Please see Administrative Order 20-11 for further details.
https://www.tnwd.uscourts.gov/pdf/adminorders/20-11.pdf
St. Petersburg Man Pleads Guilty to Distribution of Fentanyl Resulting in DeathRead the Press Release
Tampa, FL – John Sibley (33, St. Petersburg) has pleaded guilty to distribution of fentanyl resulting in death. He faces a minimum mandatory penalty of 20 years, and up to life, in federal prison.
According to the plea agreement, on June 16, 2019, Pinellas County Sheriff’s Office detectives and the Treasure Island Police Department’s Marine Unit found the victim’s body floating in the water in the area of 5000 92nd Street North, in St. Petersburg. Evidence of drug use was nearby. The immediate cause of death was determined to be drowning, but a medical examination revealed the presence of fentanyl and cocaine in the victim’s body and that, but for the victim ingesting fentanyl, he would not have drowned. Further investigation identified Sibley as the supplier of the fentanyl.
Four days later, an undercover detective from the Pinellas County Sheriff’s Office and a confidential source were involved in obtaining a quantity of fentanyl from Sibley. The phone Sibley used to arrange the deal was the same one that had been used to set up the fatal deal for fentanyl on June 16, 2019.
This case was investigated by the United States Drug Enforcement Administration, the St. Petersburg Police Department, and the Pinellas County Sheriff’s Office, with assistance from the Treasure Island Police Marine Unit, as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It was prosecuted by Assistant United States Attorney Dan Baeza.
St. Petersburg Man Pleads Guilty to Armed RobberyRead the Press Release
Tampa, Florida, Kieran Donnell Floyd (20, St. Petersburg) has pleaded guilty to robbery and brandishing a firearm during that robbery. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on August 18, 2019, Floyd entered a Shell gas station in St. Petersburg and pulled a firearm out of his shorts as he approached the cashier. Floyd pointed the firearm at the cashier and demanded money. The employee complied and handed Floyd $250 from the cash register.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Charlie D. Connally.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — 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.
St. Louis Woman Sentenced for Aiding in the Robbery of the Richmond Heights Post OfficeRead the Press Release
St. Louis, MO –Arielle Steed, 27, of St. Louis, MO, was sentenced to 24 months in prison for aiding and abetting the robbery of a United States Postal employee. Steed appeared in federal court today before United States District Judge Catherine D. Perry.
According to court documents, in early December 2018, Steed and co-defendant Dywane Upchurch planned to rob the U.S. Post Office in Richmond Heights located on Big Bend Boulevard. Steed was a teller at the post office and was in a relationship with Upchurch.
On December 6, 2018, after the post office closed to the public, Steed retrieved all the cash from the registers, sorted it, and placed it in a stack on the counter. At this time, there was only one other employee present at the post office. Upchurch, dressed in all black and wearing a surgical mask, entered the rear door of the post office. He was armed with a nine-millimeter semi-automatic pistol. Once inside, Upchurch brandished the firearm and forced Steed and the other employee into a restroom. Upchurch then went to the counter and stole approximately $8,800 in cash.
Upchurch pled on October 4, 2019 to felon in possession of a firearm and assaulting a U.S. Postal employee while committing a robbery. He was sentenced to 60 months in prison on January 16, 2020.
The U.S. Postal Inspection Service and the Richmond Heights Police Department investigated this case. Assistant U.S. Attorney John Ware handled the case.