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27 May 2020
Registered Sex Offender Sentenced to Prison for Possessing Child PornographyRead the Press Release
COLUMBUS, Ga. – A registered sex offender caught downloading child pornography, some involving very young children, during a 2018 investigation was sentenced to 136 months in prison, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. Donald McFall, 33, of Columbus, was sentenced today by U.S. District Judge Clay Land to 136 months in prison and 20 years supervised release after pleading guilty to one count possession of child pornography. McFall was convicted for sexual abuse in the 2nd degree in the Circuit Court of Russell County, Alabama in 2015. McFall was also convicted in 2016 for felony failure to register as a sex offender in Muscogee County Superior Court. McFall will be required to continue registering as a sex offender once he is released from prison under the Sex Offender Registration Act. Failing to register as required by federal law will result in prosecution, with penalties including imprisonment and fines. There is no parole in the federal system.
A detective with the Georgia Internet Crimes Against Children (ICAC) Task Force was conducting an investigation in January 2018 into the trading and downloading of child pornography on peer-to-peer file sharing networks. Using a peer-to-program configured for law enforcement, 20 files of child pornography were downloaded from an IP address linked to a residence in Columbus, Georgia. This IP address was traced to McFall, a registered sex offender. Law enforcement executed a search warrant at the residence in March 2018 and arrested McFall after child pornography was discovered on his phone. McFall admitted to having more than 600 images of child pornography on his computer and cell phone, including pornography involving prepubescent children.
“For those who engage in the evil world of producing and consuming child sexual material online: Law enforcement agents are looking for you, they will find you and we will prosecute you to the fullest extent allowed by the law,” said U.S. Attorney Charlie Peeler. “There is a strong network of law enforcement agencies working 24 hours a day across our state, at every level, to track down criminals exploiting children. I want to commend the FBI, the Georgia ICAC Task Force and the GBI for their non-stop commitment to protecting our children and capturing child predators, and the Columbus Police Department for their excellent work capturing this sexual offender identified by the task force.”
"McFall clearly has not learned from his prior conviction that anyone who chooses to do harm to our most vulnerable citizens is a priority for FBI investigators and all of our partners in law enforcement," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "Now he will pay a further price and will not be able to threaten any more children during his federal incarceration."
“There is a statistical correlation between those that seek out, collect and view child sexual abuse images and those that are actively molesting children. The fact that Donald McFall was a registered sex offender and previously convicted of sexual abuse proves this point,” said Debbie Garner, GBI Special Agent in Charge and Commander of the Georgia ICAC Task Force. “We will continue to try to find and rescue child victims of sexual abuse that we would not have otherwise known about by working these child sexual abuse imagery investigations.”
This case was investigated by the FBI, the Georgia ICAC Task Force, the GBI and the Columbus Police Department. Assistant U.S. Attorney Crawford Seals prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Raleigh Real Estate Developer Arrested on Fraud and Money Laundering ChargesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment charging a Sanford man with Fraud and Money Laundering. The charges were unsealed yesterday.
According to the indictment, Joshua Matthew Houchins, 36, operated a number of real estate development companies in Raleigh between 2014 and 2018, including Rossshire Development LLC, Greenstone Ventures LLC, and Modern South Development LLC. The indictment charges that Houchins used these entities to carry out a fraud upon his real estate development investors.
According to the indictment, Houchins solicited investment monies by telling victims that their money would be “put to work” on a specific property, and further represented that the investments would be secured by deeds of trust filed with the county register of deeds that was the subject of the investment. In fact, Houchins did not put all of the investor funds to work on the property on which the investor was solicited to invest, and instead, regularly used investor funds on other properties, or on personal expenses. Likewise, the investor promissory notes were not secured by a deed of trust as promised. In some instances, Houchins did not even own the property that was the subject of the investment, and as such, could not truthfully grant a deed of trust to the investor.
The indictment alleges that after Houchins diverted investor money away from the property on which the funds were supposed to be spent, Houchins failed to develop and sell the properties, as he represented he would. Houchins then defaulted on the notes by failing to pay investors their promised returns. The investors were unable to foreclose upon the investment properties because Houchins had not secured the promissory notes with a deed of trust filed, thereby resulting in losses to the investors.
Houchins is charged with nine counts of Wire Fraud, each of which carry a punishment of up to 20 years in prison. Houchins is also charged with three counts of Conducting Monetary Transactions in Criminally Derived Property, each of which carry a punishment of up to 10 years in prison.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation and the North Carolina Secretary of State are investigating the case and Assistant U.S. Attorney William M. Gilmore is prosecuting the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Previously Convicted Fraudster Charged with New Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Henry Williams, 54, of Rochester, NY, was arrested and charged by criminal complaint with wire fraud, bank fraud, and aggravated identity theft. The charges carry a minimum penalty of two years in prison, a maximum penalty of 30 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant is currently on supervised release following a 2016 conviction for bank fraud in the Western District of New York. According to the complaint, Williams engaged in a new scheme to defraud his employer and others. The defendant worked at the front desk of a Holiday Inn Hotel, and while so employed used the hotel’s Point of Sale machine fraudulently to load and attempt to load hundreds of thousands of dollars onto credit/debit cards that he controlled. Williams impersonated various hotel managers while making phone calls to the hotel’s card payment processor in furtherance of his scheme. The defendant also attempted to cover his tracks and conceal his involvement in the fraud by impersonating a hotel employee and making false complaints of criminal activity by another hotel employee.
In total, Williams attempted to defraud the hotel and hotel’s banks out of approximately $850,000. The defendant also made fraudulent and unauthorized charges in the approximate amount of $780 by using information regarding a customer’s credit/debit card that he had stolen from the hotel.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and is being detained.
The criminal complaint is the result of an investigation by Special Agents of the Federal Bureau of Investigation, acting under the direction of Special Agent-in-Charge Gary Loeffert, and U.S. Probation Officers, acting under the direction of Chief Probation Officer Anthony SanGiacomo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #New York City Man Charged with Hacking, Credit Card Trafficking, and Money Laundering ConspiraciesRead the Press Release
BOSTON – A New York City man was charged yesterday with conspiracies to engage in computer hacking, trafficking in stolen payment card numbers, and money laundering.
Vitalii Antonenko, 28, was indicted on one count of conspiracy to gain unauthorized access to computer networks and to traffic in unauthorized access devices, and one count of money laundering conspiracy. In March 2019, Antonenko was arrested and detained on money laundering charges at New York’s John F. Kennedy International Airport after he arrived there from Ukraine carrying computers and other digital media that held hundreds of thousands of stolen payment card numbers.
As alleged in the indictment, Antonenko and co-conspirators scoured the internet for computer networks with security vulnerabilities that were likely to contain credit and debit card account numbers, expiration dates, and card verification values (Payment Card Data) and other personally identifiable information (PII). They used a hacking technique known as a “SQL injection attack” to access those networks without authorization, extracted Payment Card Data and other PII, and transferred it for sale on online criminal marketplaces. Once a co-conspirator sold the data, Antonenko and others used Bitcoin as well as traditional bank and cash transactions to launder the proceeds in order to disguise their nature, location, source, ownership, and control.
The charge of conspiracy to gain unauthorized access and to traffic in access devices provides for a sentence of up to five years in prison, three years of supervised release, a $250,000 fine, restitution and forfeiture. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a $500,000 fine, restitution and forfeiture. 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 and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service Boston Field Office and made the announcement today. Assistant U.S. Attorney Seth B. Kosto of Lelling’s Cybercrime Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Bedford Member of the Latin Kings Charged with Being a Felon in PossessionRead the Press Release
BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation was charged yesterday with being a felon in possession of a firearm as a result of a federal investigation into a shooting on April 19, 2020, in New Bedford.
Alexander Pizarro, a/k/a “King Tego,” 28, was charged yesterday in a criminal complaint with one count of being a felon in possession of a firearm. Pizarro, who is currently in custody in Rhode Island, will make his initial appearance in federal court at a later date.
According to the charging documents, on April 19, 2020, police responded to a report of seven shots fired near a residence on Clark Street in New Bedford. During the response, police located a tan and black Taurus 9mm firearm in an alleyway near the residence. Based on information received from a 911 caller, police were directed to an apartment and located Pizarro, who was known to be a member of the Latin Kings. After searching his cell phone, investigators located a photograph of Pizarro in the apartment holding what appears to be the same firearm that was recovered from Clark Street. This photograph was allegedly taken approximately two hours before the shots-fired incident. Through ballistics comparison, the seized firearm was matched to the recovered shell casings from the shooting that evening.
Due to multiple prior convictions, Pizarro is prohibited from possessing firearms. According to court documents, Pizarro was known to investigators to be a member of the New Bedford Chapter of the Latin Kings, and had recently posted multiple pictures holding firearms to his SnapChat account. At the time of the shooting incident, Pizarro was on probation for a 2017 firearms case in Rhode Island.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Multi-State Operation Leads to Cheraw Man’s Arrest on Federal Criminal Complaint for Online Coercion of Minor, Transferring Obscene Material to MinorRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Nathan Branham, 39, of Cheraw, South Carolina, was arrested on a federal criminal complaint and charged with online coercion and enticement of a minor and transferring obscene material to a minor.
Branham had a detention hearing before United States Magistrate Judge Kaymani D. West on Tuesday and had his initial appearance before United States Magistrate Judge Thomas E. Rogers on May 20. At this time, he remains in custody.
The complaint states that Branham contacted a 13-year-old minor in Kentucky through the online social media application Uplive, a live-streaming platform that allows viewers to broadcast and view real-time videos via their smartphones. Using the screen name Mystic, Branham learned the minor’s age, told the minor he was sixteen years old, and convinced the minor to contact him using the Google Duo video chat application.
According to the complaint, the minor immediately noticed Branham was an adult male. Although Branham stated that he had a genetic condition that made him look older, the minor ended the call. At that point Branham claimed he could find the minor’s address and threatened the minor into engaging in another call with him. On that call, Branham told the minor to expose herself or he was going to “find out your address and have a little talk to you.” After the minor complied, Branham also exposed himself. The minor reported the matter to her parents. The parents contacted Branham, who also used the Facebook username Shuja Jahan, at which point Branham claimed to be a police officer.
According to testimony during court proceedings, Branham – who has convictions for indecent exposure, assault and battery of a high and aggravated nature, and being a felon in possession of a firearm – engaged in similar interactions with minors on more than thirty occasions.
The case was initiated by the Kentucky Attorney General’s Office through the Internet Crimes Against Children (ICAC) task force program, a national network of 61 coordinated task forces representing over 4,500 federal, state, and local law enforcement and prosecutorial agencies. This case is being investigated by the United States Secret Service with the assistance of the South Carolina Attorney General’s Office ICAC task force. The complaint was brought in South Carolina federal court within a week of the first report to the Kentucky Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney Derek A. Shoemake of the Florence office.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
U.S. Attorney McCoy stated that all charges in this case are merely allegations and that the defendant is presumed innocent until and unless proven guilty.
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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.
dsc_press_release_branham_complaint.pdf
Man from Laguna Pueblo pleads guilty to assault by strangulation in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Patrick Valencia, 50, of Laguna Pueblo, New Mexico pleaded guilty in federal court in Albuquerque on May 26 to assault of an intimate partner by strangulation or suffocation in Indian Country.
A grand jury previously returned an indictment against Valencia on July 9, 2019. According to the indictment and other court records, Valencia allegedly committed this offense in Cibola County on Aug. 5, 2018. Valencia became upset and assaulted the victim by knocking her to the ground, putting his hands around her neck and strangling her. She was later treated for her injuries at the hospital.
Valencia is currently in custody pending sentencing. He has agreed to serve two years in prison under the terms of his plea agreement.
The office of the Bureau of Indian Affairs, Office of Justice Services investigated this case with assistance from the Pueblo of Laguna Police Department. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
Man from Albuquerque sentenced to 25 months in federal prison for bank fraud, identity theft and harboring a fugitiveRead the Press Release
ALBUQUERQUE, N.M. – Ernie Thomas Ortiz, 46, of Albuquerque, New Mexico was sentenced in federal court in Albuquerque on May 19 to 25 months in prison for bank fraud, aggravated identity theft and harboring a fugitive.
Ortiz pleaded guilty to these offenses on Jan. 10. According to Ortiz’s plea agreement, he bought a truck from an auto dealership in Sandoval County, New Mexico on March 27, 2019. Ortiz impersonated another person in the transaction by using the victim’s name and personal identifying information without permission. Ortiz gave the dealership a check he knew would be used to withdraw funds from the victim’s bank account.
Ortiz also harbored a fugitive in Bernalillo County on April 13, 2019. According to Ortiz’s plea agreement and other public court records, he provided transportation to Jeyden Barnhill to help Barnhill avoid capture by the police. Ortiz provided transportation to Barnhill knowing Barnhill was wanted by the police for robbery. In a separate case, Barnhill pleaded guilty to federal robbery and firearms charges on March 24. Barnhill is facing 20 years in prison under the terms of his plea agreement.
Ortiz must also serve a three-year term of supervised release after completing his sentence.
The FBI investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Paul J. Mysliwiec prosecuted the case.
Madison Man Sentenced for Possessing Heroin for DistributionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Britton, 30, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 37 months in federal prison for possessing heroin with intent to distribute.
This is Britton’s second sentence in federal court. At the time of this offense, he was serving a term of federal supervision as a result of his 2015 conviction for distributing heroin. Judge Peterson revoked the defendant’s supervision and imposed an additional term of imprisonment of one year and one day, to be served consecutively to the 37-month term.
The total amount of heroin attributable to Britton was approximately 37.51 grams. Three additional counts of distribution of heroin were dismissed pursuant to the defendant’s plea.
In sentencing the defendant, Judge Peterson noted that Britton was “damaging the community” by selling heroin and that his conduct took advantage of others’ addictions. Judge Peterson explained that the sentence was meant to provide incremental punishment based on the defendant’s prior conviction and subsequent failure on supervision.
The charge against Britton was the result of an investigation conducted by the Drug Enforcement Administration. Assistant U.S. Attorney Taylor L. Kraus handled the prosecution.
Las Vegas Felon Sentenced in Federal "Lie and Buy" Prosecution for Illegally Acquiring 11 FirearmsRead the Press Release
LAS VEGAS, Nev. — Albert Raul Franco was sentenced today by U.S. District Judge Andrew P. Gordon to three years in prison for illegally acquiring 11 firearms through a straw purchaser who made false statements on federal firearms transaction documents during the purchases, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Far too often, guns bought by straw purchasers end up in the hands of violent offenders and are recovered at crime scenes,” said U.S. Attorney Trutanich. “Together with the ATF, we will hold accountable individuals who lie on federal forms to buy guns illegally. Today’s sentence demonstrates our commitment to reducing gun violence, enforcing federal firearms laws through the Project Guardian initiative, and pursuing ‘Lie and Buy’ cases to make Nevada safer.”
Franco, 35, of Las Vegas, pleaded guilty in August 2019, to seven counts of illegal acquisition of a firearm. In addition to the prison term, Franco was sentenced to three years of supervised release.
According to court documents and admissions made in his plea agreement, on five separate occasions between July 28, 2017, and October 26, 2017, Franco directed co-defendant Tiffany Henderson to make false statements on the Firearms Transaction Record during the purchase of 11 handguns at different Federal Firearms Licensee businesses. On the Firearms Transaction Record, Henderson represented that she was the actual buyer of the firearms, when in fact these purchases were made on Franco’s behalf.
Franco, an admitted gang member and convicted felon, is prohibited from owning and possessing a firearm because of his prior convictions for multiple firearms and drug-related offenses and a conviction for assaulting a police officer. Franco’s pretrial release in this case was revoked after he failed to report an encounter with law enforcement during which he fled and was found to possess cocaine.
Co-defendant Henderson previously pleaded guilty to five counts of illegal acquisition of a firearm and aiding and abetting. She is scheduled to be sentenced on June 23, 2020.
The charges resulted from an investigation by the ATF. Assistant U.S. Attorney Simon Kung is prosecuting the case.
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 U.S. 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 ATF 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.
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Las Vegas Couple Indicted in $13 Million Fraud Upon North Carolina Medicaid Program and Scheme to Launder Proceeds into Private JetRead the Press Release
RALEIGH, N.C. – On May 19, 2020 a federal grand jury returned a Superseding Indictment charging a Las Vegas couple with numerous charges, including (1) Conspiracy to Commit Health Care Fraud and Wire Fraud, (2) Health Care Fraud, (3) Wire Fraud, (4) False Statements Relating to Health Care Matters, (4) Aggravated Identity Theft, (5) Conspiracy to Commit Money Laundering, and (6) Conducting Transactions in Criminally Derived Property with Fraud and Money Laundering. The charges were unsealed today, following the arrest of all defendants.
“This case represents one of the most brazen and egregious cases of home health Medicaid fraud ever seen in this district,” commented U.S. Attorney Robert J. Higdon, Jr. “The indictment alleges a $13 million fraud that funded a gluttonous, social media-marketed lifestyle - one filled with private jets, penthouses and luxury resorts. Most reprehensible is the fact that this crime is alleged to have been carried out on the backs of our most vulnerable: the poor, the deceased, the elderly, and the disabled. Even in the face of a global pandemic, this office will continue its work to ensure that defendants like these will be held to fully account for their actions.”
"Stealing taxpayer money from a health care program designed to care for the poor and disabled just to bankroll a private jet and other luxury products – as alleged in this case – is reprehensible,” said Special Agent in Charge Derrick L. Jackson of the HHS Office of Inspector General. “Our hardworking investigators and law enforcement partners are committed to making sure such greed-fueled fraud is uprooted and those who commit it are held accountable for their actions.”
Special Agent in Charge Matthew D. Line, of the IRS, Criminal Investigation stated, “We are pleased with today’s indictment of Latisha and Timothy Harron as a result of the collaborative efforts of our law enforcement partners. The egregious acts allegedly carried out by the Harron’s in this case will not be tolerated. IRS-CI will continue to use our financial expertise to expose and bring to justice those who line their pockets by committing fraud against the healthcare system.”
According to the indictment, Latisha Harron, also known as Latisha Reese Holt, 44, of Las Vegas, Nevada, and Timothy Mark Harron, 50, of Las Vegas, Nevada, worked together to carry out a massive fraud upon the North Carolina Medicaid Program (“NC Medicaid”) by billing the government for fictitious home health services. They then worked together to launder the proceeds of the fraud into, among other things, a private jet, luxury jewelry and clothing, and properties in Ahoskie and Rich Square, North Carolina.
According to the indictment, by 2010, Latisha Harron had created, and was operating, Agape Healthcare Systems, Inc. (“Agape”) an alleged Medicaid home health provider, in Roanoke Rapids, North Carolina. The indictment alleges that to enroll Agape as a Medicaid provider, Latisha Harron fraudulently concealed her prior felony conviction for Identity Theft. The indictment then alleges that in 2012, Latisha Harron moved out of North Carolina to Maryland. Despite that move, Harron continued to bill NC Medicaid as though Agape was providing home health services to North Carolina recipients.
The indictment further alleges that in May of 2017, Latisha Harron moved to Las Vegas, Nevada to live with Timothy Mark Harron, and that the two were married in 2018. The indictment alleges that Timothy Mark Harron was also a previously convicted felon, and that this fact was concealed from the NC Medicaid on enrollment documents. The indictment then details how Latisha Harron and Timothy Mark Harron (“the Harrons”) worked together to expand the Agape fraud upon NC Medicaid, by fraudulently billing the program for more than $10 Million, just in the period between 2017 and 2019.
The indictment alleges that the Harrons carried out the fraud by exploiting an eligibility tool that was entrusted only to NC Medicaid providers. Specifically, the Harrons searched publicly available sources, such as obituary postings on the internet by North Carolina funeral homes, to locate recently deceased North Carolinians. The Harrons would extract from the obituary postings certain personal information for the deceased, including their name, date of birth, and date of death. Then, utilizing the extracted information, the Harrons would then query the NC Medicaid eligibility tool to determine whether the deceased individual had a Medicaid Identification Number. If the deceased North Carolinian had a valid Medicaid Identification Number and was otherwise eligible for Medicaid coverage during their life, the Harrons would use that individual’s identity to “back-bill” NC Medicaid, through Agape, for up to one year of fictitious home health services that were allegedly rendered prior to the death of the individual. NC Medicaid then disbursed millions to Agape, all of which flowed into accounts controlled by the Harrons.
The indictment alleges that the Harrons carried out the fraud via the internet from locations around the globe, including their corporate office building in Las Vegas, their penthouse condominium in Las Vegas, a corporate office in North Carolina, and from various hotels and luxury resorts in and outside of the United States.
The indictment further charges the Harrons in a scheme to launder the proceeds of the Agape fraud into various luxury items. These expenses included a $900,000 wire for the purchase of a British Aerospace Bae 125-800A private jet, hundreds of thousands of dollars in Tiffany & Co. and Brioni clothing and jewelry, thousands of dollars on Eastern North Carolina business properties, and thousands of dollars in gym equipment. The indictment also includes a forfeiture notice, seeking forfeiture of, among other things, a 2017 Aston Martin DB 11 sports vehicle and a wine collection.
The Harrons are charged with (1) Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349, which carries a maximum punishment of up to 20 years in prison, (2) Health Care Fraud, in violation of Title 18, United States Code, Section 1347, which carries a maximum punishment of 10 years in prison, (3) 54 counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343, each of which carry a maximum punishment of 20 years in prison, (4) 6 counts of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, each of which carry a maximum punishment of not less than, nor more than, 2 years in prison consecutive to other sentences, (5) Conspiracy to Commit Money Laundering, in violation of Title 18, United States Code, Section 1956(h), which carries a maximum punishment of 10 years in prison, and (6) 11 counts of Conducting Transactions in Criminally Derived Property with Fraud and Money Laundering, in violation of Title 18, United States Code, Section 1957, which carries a maximum punishment of 10 years in prison. Latisha Harron is also charged with Making False Statements Relating to Health Care Matters, in violation of Title 18, United States Code, Section 1035, which carries a maximum punishment of five years in prison.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation, the United States Department of Health and Human Services Office of the Inspector General, the Internal Revenue Service Criminal Investigation, and Investigators with the North Carolina Attorney General’s Office Medicaid Investigations Division, are all investigating the case. The North Carolina Medicaid Investigations Division receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,160,252 for Federal fiscal year (FY) 2020. The remaining 25 percent, totaling $2,053,414 for FY 2020, is funded by the State of North Carolina.
Assistant U.S. Attorney William M. Gilmore is the prosecutor on this case. Assistant U.S. Attorney John Harris represents the United States with respect to forfeiture aspects of the case.
Should you feel that you or a family member are a victim of this case, please contact the United States Department of Health and Human Services Office of the Inspector General at (305) 968-6960.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
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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.
La Crosse Man Sentenced on Methamphetamine ChargeRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Eric Sobek, 47, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to seven years in federal prison, to be followed by five years of supervised release, for possessing methamphetamine with intent to distribute. Sobek pleaded guilty to this charge on February 19, 2020.
On September 17, 2019, officers from the La Crosse Police Department arrested Sobek outside of a hotel in Onalaska, Wisconsin. When officers searched Sobek’s car, they found a safe that contained 233 grams of methamphetamine; a .226 Sig Sauer pellet gun designed to resemble a firearm; a high-capacity 9 mm magazine; and a crossbow with three bolts. Officers also searched Sobek’s backpack and hotel room, where they found an additional 23 grams of methamphetamine. In total, officers seized 256 grams of methamphetamine.
During sentencing, Judge Conley highlighted Sobek’s extensive criminal record, as well as his history of domestic violence.
The charge against Sobek was the result of an investigation conducted by the La Crosse Police Department and the Onalaska Police Department. Assistant U.S. Attorney Chadwick M. Elgersma handled the prosecution of the case.
KC Man Sentenced After Stealing Firearms from Police VehicleRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who stole several firearms and other items from a police vehicle has been sentenced in federal court for possessing stolen firearms.
Carvon Brown, 20, was sentenced by U.S. District Judge Greg Kays on Tuesday, May 26, to six years in federal prison without parole.
On Sept. 6, 2019, Brown pleaded guilty to possessing a stolen firearm. Brown admitted that he and co-defendant Leronte Swinton, 31, of Kansas City, Missouri, stole three firearms, two Tasers, two handheld radios, two Kevlar vests, and a case of shotgun shells from an unmarked police car that was parked in a Kansas City police officer’s driveway. At some point overnight on Nov. 9, 2018, Brown and Swinton ransacked the police vehicle. During the course of the investigation into this theft, numerous other thefts were identified that also were committed by Brown and Swinton.
Law enforcement officers tracked the Ford Fusion driven by Swinton, with Brown as a passenger, on Dec. 1, 2018, as Brown and Swinton committed numerous theft from autos in both Leavenworth County and Wyandotte County, Kansas. Numerous items were stolen from vehicles, including a Smith & Wesson .380-caliber handgun, a jump starter kit, a computer tablet, and an FNH 9mm semi-automatic handgun. Kansas City, Kansas, police officers attempted to stop them but they fled at a high rate of speed. A short pursuit took place but was terminated as the vehicle fled back toward Missouri. Kansas City, Missouri, police officers located the vehicle and also attempted to stop them. Once again, Brown and Swinton fled and a brief vehicle pursuit was initiated. Due to the weather conditions and the reckless manner in which Swinton was driving, the pursuit was again terminated.
Because they stopped for gas, investigators were able to identify them from surveillance videos and obtained a search warrant for their residence. On Dec. 3, 2018, officers executed the search warrant and arrested Brown and Swinton. Officers also seized several stolen firearms and other items found during the search.
Swinton also pleaded guilty and was sentenced on Jan. 30, 2020, to two years and six months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Judge Sentences Former Subcontractor at Bettis Lab to Prison for Stealing $250,000Read the Press Release
PITTSBURGH, PA - A former Department of Energy subcontractor has been sentenced in federal court to 18 months in prison and three years of supervised release on his conviction of theft of government funds, United States Attorney Scott W. Brady announced today.
United States District Judge William S. Stickman imposed the sentence on Robert Lazur, 31, of West Mifflin, Pennsylvania.
According to information presented to the court, Lazur was employed at BWXT Technical Services Group, Inc., which was performing on a subcontract at the Bettis Atomic Power Laboratory in West Mifflin, PA. The contract was funded by the United States Department of Energy. From approximately January 2016 until December 2017, Lazur used company credit cards and open purchase orders to make hundreds of fraudulent purchases, which were disguised as legitimate contract expenses. He sold most of the fraudulently obtained items on eBay, so he could convert them to cash. Other items, however, he kept for himself or gave to friends. The total loss was approximately $250,000.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Department of Energy and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Lazur.
International Gun-Trafficker Pleads Guilty to Role in Straw Purchase SchemeRead the Press Release
NORFOLK, Va. – A New Jersey resident and citizen of the Dominican Republic pleaded guilty today to helping arrange the straw purchase of multiple handguns.
“Straw purchasers are often literally arming criminals,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to aggressively pursue these cases, seek to obtain felony convictions, and work with local federally licensed firearms dealers and our partners at the ATF to stop the flow of illegally purchased firearms from hitting the street.”
According to information before the court, Greilin Eurinio Santana-Munoz, 31, a carnival worker and convicted felon, used several straw purchasers to obtain at least 25 handguns from federally licensed gun stores in Virginia and Georgia, which he then shipped out of the country to the Dominican Republic. He had an associate straw purchase 10 handguns from Virginia gun stores in Chantilly, Manassas, and Virginia Beach. He was arrested in Georgia after ATF agents watched another straw purchaser buy four handguns at yet another gun store and deliver them to him while he was waiting outside the store in his vehicle.
Santana-Munoz pleaded guilty to aiding and abetting a co-conspirator causing a federally licensed gun store to maintain false records. He faces a maximum of five years in prison when sentenced on Sept. 18, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
“The intent of straw purchasing firearms is clear - to provide weapons to individuals who cannot possess them legally, generally for the commission of crimes,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “This defendant’s plea concludes a multi-state and international investigation into his illegal activities, and we are grateful to the U.S. Attorney and our law enforcement partners for this successful outcome.”
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-029.
Greenfield Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Ira Weeks, 40, of Greenfield, pleaded guilty in federal court to participating in a conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Weeks conspired with others to distribute and possess with the intent to distribute fentanyl. Weeks obtained the fentanyl from a source of supply in Methuen, Massachusetts. As part of the investigation, in December 2017 the Drug Enforcement Administration (“DEA”) intercepted phone communications between Weeks and his co-conspirator wife in which the couple ordered quantities of fentanyl from their Methuen drug source. DEA subsequently surveilled Weeks in Methuen meeting with the drug source on approximately four occasions. The DEA and the New Hampshire State Police arranged to conduct motor vehicle stops on Week’s vehicle after observing him meet with his drug source. These stops resulted in the seizure of over 175 grams of fentanyl.
Weeks is scheduled to be sentenced on August 27, 2020.
“Interstate drug trafficking endangers the people of New Hampshire by threatening their health and safety” said U.S. Attorney Murray. “We continue to work closely with the DEA, New Hampshire State Police, and law enforcement partners across New England to stop the flow of fentanyl and other illegal drugs into the Granite State. Those who choose to participate in the drug trade will be identified and prosecuted in federal court.”
This matter was investigated by the DEA with assistance from the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Superior Residents Charged with Methamphetamine Conspiracy & Distribution
Christina Nord, 35, and Steven Ranta, 42, both of Superior, Wisconsin, are charged with conspiring to distribute and to possess with intent to distribute 50 grams or more of methamphetamine. The indictment alleges that the conspiracy operated between December 2 and December 31, 2019.
The indictment also charges Nord with seven counts of distributing methamphetamine and Ranta with five counts of distributing methamphetamine during December 2019. Finally, the indictment charges that on December 31, 2019, Nord and Ranta possessed 50 grams or more of methamphetamine with intent to distribute.
If convicted, Nord and Ranta face a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the conspiracy charge and the possession with intent to distribute charge alleging 50 grams or more of methamphetamine, and a maximum penalty of 20 years on the distribution charges.
The charges against them are the result of an investigation by the Superior Police Department. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
Eau Claire Man Charged with Crimes Involving Methamphetamine & Heroin
Marnell Davis, 34, Eau Claire, Wisconsin, is charged with distributing 50 grams or more of methamphetamine, with possessing 50 grams or more of methamphetamine with intent to distribute, and with possessing heroin with intent to distribute. The indictment alleges that he distributed 50 grams or more of methamphetamine on March 27, 2020, and that he possessed heroin and 50 grams or more of methamphetamine with intent to distribute on April 7, 2020.
If convicted, Davis faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the two charges alleging 50 grams or more of methamphetamine, and a maximum penalty of 20 years on the heroin charge.
The charges against him are the result of an investigation by West Central Drug Task Force; Chippewa, Dunn, and Eau Claire County Sheriffs’ Departments; Chippewa Falls, Eau Claire, and Menomonie Police Departments; Wisconsin Department of Justice Division of Criminal Investigation; and the Drug Enforcement Administration. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
La Crosse Man Charged with Possessing Methamphetamine with Intent to Distribute
James Dean, 36, La Crosse, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he possessed the methamphetamine on February 5, 2020.
If convicted, Dean faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department. Assistant U.S. Attorney Aaron D. Wegner is handling the prosecution.
Two Charged with Methamphetamine Crimes
Alexander Cappard, 26, Apple Valley, Minnesota, and Alisha Heiman, 30, Eau Claire, Wisconsin, are charged with distributing 50 grams or more of methamphetamine, and with possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that they distributed and possessed 50 grams or more of methamphetamine on March 16, 2020.
If convicted, Cappard and Heiman face a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on each charge. The charges against them are the result of an investigation by the West Central Drug Task Force. Assistant U.S. Attorney Aaron D. Wegner is handling the prosecution.
Madison Man Charged with Drug Crimes Involving Heroin & Cocaine
Emmanuel O. Stephen, 30, Madison, Wisconsin, is charged with possessing 100 grams or more of heroin with intent to distribute, and with possessing cocaine with intent to distribute. The indictment alleges that he possessed the heroin and cocaine on December 6, 2019.
If convicted, Stephen faces a mandatory minimum penalty of five years and a maximum of 40 years on the charge alleging 100 grams or more of heroin. He faces a maximum penalty of 20 years on the cocaine charge.
The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Madison Police Department, Drug Enforcement Administration, and the Dane County Narcotics Task Force. Assistant U.S. Attorney Diane Schlipper is handling the prosecution.
Madison Man Charged with Drug & Gun Crimes
Phillip Thomas, 30, Madison, Wisconsin, is charged with distributing crack cocaine and methamphetamine on March 31 and April 1, 2020, with possessing heroin with intent to distribute on April 3, 2020, and with being a felon in possession of a firearm and ammunition. The indictment alleges that he possessed a shotgun and ammunition on April 3, 2020.
If convicted, Thomas faces a maximum penalty of 20 years in federal prison on each of the three drug charges, and 10 years on the gun charge. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Drug Enforcement Administration, Sun Prairie Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor L. Kraus is handling the prosecution.
Madison Man Charged with Drug & Gun Crimes
Hamin Williams, 37, Madison, Wisconsin, is charged with being a felon in possession of a firearm and with possessing fentanyl and oxycodone with the intent to distribute. The indictment alleges that on April 24, 2020, he possessed a loaded .32 caliber pistol and fentanyl and oxycodone.
If convicted, Williams faces a maximum penalty of 10 years in federal prison on the felon in possession of a firearm charge, and 20 years in federal prison on the drug charge.
The charges against him are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Man Charged with Being a Felon in Possession of Firearm
Thomas R. Olsem, 52, Luck, Wisconsin, is charged with being a felon in possession of firearms. The indictment alleges that on March 8, 2020, Olsem possessed a .22 caliber pen gun and a loaded .380 caliber handgun.
If convicted, Olsem faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Polk County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
The indictments charging Thomas, Williams, and Olsem have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Man Charged with Producing Child Pornography
Gerardo Junior Torres, 23, Chicago, Illinois, is charged with two counts of producing child pornography. The indictment alleges that on January 15 and January 21, 2020, he intentionally used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
If convicted, Torres faces a mandatory minimum penalty of 15 years and a maximum penalty of 30 years in federal prison on each charge. The charges against him are the result of an investigation by the Taylor County Sheriff’s Office, Ladysmith Police Department, and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Man Charged with Escape
Theodore Thurman, 25, Rockford, Illinois, is charged with escape. The indictment alleges that on January 27, 2020, Thurman failed to remain within the extended limits of his confinement and return within the time prescribed to the Rock Valley Community Programs Center in Janesville, Wisconsin.
If convicted, Thurman faces a maximum penalty of five years in federal prison. The charge against him is the result of an investigation by the U.S. Marshals Fugitive Task Force. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Government Contractor to Pay $1 Million to Settle Claims of Fraudulently Representing Work by a Small Disadvantaged Business on Peoria Airport ConstructionRead the Press Release
WASHINGTON – Williams Brothers Construction Inc. (WBCI) of Peoria Heights, Illinois, has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by misrepresenting its use of a small disadvantaged business to obtain a federally-funded construction contract, the Department of Justice announced today.
“The Disadvantaged Business Enterprise (DBE) Program of the Department of Transportation creates important opportunities for small businesses to participate in construction projects paid for with federal funds,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those who misrepresent their compliance with program requirements to obtain taxpayer funds to which they are not entitled, and thereby undermine the program’s goal of supporting small businesses.”
The settlement resolves claims arising from WBCI’s construction of a new terminal building at the Peoria International Airport using Federal Aviation Administration (FAA) grant funds. The FAA grant required the use of disadvantaged business enterprises for part of the construction. The United States contends that WBCI knowingly made false representations regarding its plans to use a disadvantaged small firm on the project and then falsified documents to make it appear that an eligible business did window, glazing, and curtain wall work. Instead, WBCI allegedly used that business only as a pass-through and had the work done by an ineligible company.
“The U.S. Attorney’s Office will continue to protect taxpayer dollars,” said U.S. Attorney John C. Milhiser for the Central District of Illinois. “In cases such as this, we work alongside the Civil Division at the Department of Justice and with the Department of Transportation’s Office of Inspector General to ensure that funds designated to support disadvantaged small businesses are used for their intended purpose and benefit.”
“The settlement reached today is a step on the way to closing the chapter on this egregious fraud scheme involving a federally funded construction project at Peoria International Airport,” said Andrea M. Kropf, Regional Special Agent-in-Charge of the Department of Transportation Office of Inspector General (DOT OIG). “While the damage to the integrity of DOT’s DBE program in this instance cannot be undone, it only serves to strengthen our resolve in pursuing those whose actions prevent the legitimate participation of disadvantaged businesses in federal contracting on transportation projects.”
The settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Central District of Illinois, and DOT OIG. To learn more about the Civil Division, please visit https://www.justice.gov/civil. To learn more about the U.S. Attorney’s Office for Central District of Illinois, please visit https://www.justice.gov/usao-cdil.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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
Government Contractor to Pay $1 Million to Settle Claims of Fraudulently Representing Work by a Small Disadvantaged Business on Peoria Airport ConstructionRead the Press Release
Williams Brothers Construction Inc. (WBCI) of Peoria Heights, Illinois, has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by misrepresenting its use of a small disadvantaged business to obtain a federally-funded construction contract, the Department of Justice announced today.
“The Disadvantaged Business Enterprise (DBE) Program of the Department of Transportation creates important opportunities for small businesses to participate in construction projects paid for with federal funds,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those who misrepresent their compliance with program requirements to obtain taxpayer funds to which they are not entitled, and thereby undermine the program’s goal of supporting small businesses.”
The settlement resolves claims arising from WBCI’s construction of a new terminal building at the Peoria International Airport using Federal Aviation Administration (FAA) grant funds. The FAA grant required the use of disadvantaged business enterprises for part of the construction. The United States contends that WBCI knowingly made false representations regarding its plans to use a disadvantaged small firm on the project and then falsified documents to make it appear that an eligible business did window, glazing, and curtain wall work. Instead, WBCI allegedly used that business only as a pass-through and had the work done by an ineligible company.
“The U.S. Attorney’s Office will continue to protect taxpayer dollars,” said U.S. Attorney John C. Milhiser for the Central District of Illinois. “In cases such as this, we work alongside the Civil Division at the Department of Justice and with the Department of Transportation’s Office of Inspector General to ensure that funds designated to support disadvantaged small businesses are used for their intended purpose and benefit.”
“The settlement reached today is a step on the way to closing the chapter on this egregious fraud scheme involving a federally funded construction project at Peoria International Airport,” said Andrea M. Kropf, Regional Special Agent-in-Charge of the Department of Transportation Office of Inspector General (DOT OIG). “While the damage to the integrity of DOT’s DBE program in this instance cannot be undone, it only serves to strengthen our resolve in pursuing those whose actions prevent the legitimate participation of disadvantaged businesses in federal contracting on transportation projects.”
The settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Central District of Illinois, and DOT OIG. To learn more about the Civil Division, please visit https://www.justice.gov/civil. To learn more about the U.S. Attorney’s Office for Central District of Illinois, please visit https://www.justice.gov/usao-cdil.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Four Defendants Plead Guilty to Racketeering Conspiracy in Nationwide Prescription Drug Diversion CaseRead the Press Release
SAN FRANCISCO – Mihran Stepanyan, Artur Stepanyan, Yan German, and Khachig Geuydjian pleaded guilty today to crimes stemming from their respective roles in a wide-ranging racketeering conspiracy involving diversion of prescription drugs, money laundering, bank fraud, identity theft, and additional crimes, announced United States Attorney David L. Anderson; Federal Bureau of Investigation Special Agent in Charge John F. Bennett; and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Kareem Carter. The pleas were accepted by the Hon. Charles R. Breyer, United States District Judge, and leaves one remaining defendant to stand trial for allegations made in a Second Superseding Indictment filed in February of 2016 against 38 defendants.
“Patients needing prescription drugs shouldn’t have to worry that their medications came out of a back alley,” said U.S. Attorney Anderson. “The defendants and their co-conspirators were able to make massive profits by diverting street drugs back into mainstream channels while creating false paperwork to conceal their true source. Thanks to the FBI, IRS, and federal prosecutors in San Francisco, the defendants now face the prospect of lengthy prison sentences for their criminal conduct.”
“The American public was victimized twice by this scheme,” said FBI San Francisco Special Agent in Charge John F. Bennett. “The majority of the profits were subsidized both by American taxpayers and by those paying private insurance premiums.” “Additionally, patients were put at risk by the movement of these black market drugs, as the defendants disregarded general safety protocols and guidelines, to include expiration dates and pharmaceutical lot numbers.”
“Today’s guilty pleas bring us one step closer to closing the chapter on this criminal enterprise,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “The crimes committed by these defendants ranged from picking up drugs at a pizza shop to a half-million-dollar tax check fraud scheme. In total, more than $199 million in diverted prescription drug proceeds were laundered through bank accounts established with false identities and shell companies. IRS-CI is committed to following the money so we can financially disrupt and dismantle criminal organizations like these.”
All four defendants pleading guilty today—Mihran Stepanyan (M. Stepanyan), his cousin Artur Stepanyan (A. Stepanyan), German, and Geuydjian—have acknowledged that they were members of a nationwide conspiracy referred to in court documents as the Karapedyan-Stepanyan Enterprise (Enterprise). One key aspect of the criminal activity was a multi-million dollar prescription drug diversion scheme. According to the plea agreements filed today, members and associates of the Enterprise procured prescription drugs from unlicensed sources, usually street dealers, and resold the drugs to unknowing customers. The Stepanyans also admitted that they are not licensed to sell drugs, that they procured millions of dollars of drugs through street suppliers and other unlicensed sources, and that the drugs they procured eventually were resold as legitimate products.
The Stepanyans’ plea agreements include an overview of the complexity and sophistication of the Enterprise’s operations. Members of the Enterprise conducted the affairs of the organization through a pattern of racketeering and committed crimes throughout California as well as in Minnesota, Ohio, and Puerto Rico. Further, the Stepanyans’ plea agreements describe how members and associates of the Enterprise procured and distributed a wide variety of drugs from unlicensed sources for distribution throughout the country. The drugs included medications used to treat HIV infection, Type-2 diabetes, dementia, and high blood pressure, among other conditions. Members and associates of the Enterprise also created false and fraudulent paperwork, referred to as pedigrees, to make it appear that those drugs had been purchased from legitimate sources. In addition, they created sham companies and used multiple bank accounts to receive and distribute the proceeds from their fraudulent transactions. The plea agreements also describe how the Stepanyans, along with other members and associates of the Enterprise, intentionally used the identities of real people to carry out their unlawful objectives. The plea agreements of Geuydjian and German provide further details of the Enterprise’s operations. Specifically, Geuydjian’s plea agreement describes how he negotiated fraudulent personal and tax checks for the benefit of the Enterprise, and German’s plea agreement describes how he supplied drugs for distribution by the Enterprise and managed aspects of the Enterprise’s money laundering operations.
According to M. Stepanyan’s plea agreement, he became a member of the Enterprise as early as January 2010. He admitted that he agreed with his co-conspirators to commit multiple criminal acts involving money laundering, mail fraud, wire fraud, bank fraud, identity theft, and multiple acts involving the distribution of drugs from unlicensed sources to conduct the affairs of the Enterprise. In his plea agreement, M. Stepanyan admitted that he controlled several entities, including Red Rock Capital Group, Inc.; Trans Atlantic Capital Group, Inc.; GC National Wholesale, Inc.; and Sky Atlantic Group, Inc., in addition to numerous bank accounts through which approximately $199 million of pharmaceutical money flowed between 2010 and 2014. M. Stepanyan also admitted purchasing approximately $56 million in gold using the illicit proceeds from the unlawful sale of prescription drugs. As a further example of his participation in the Enterprise, M. Stepanyan used an entity called Niva Pharmaceuticals to facilitate transactions related to the criminal conspiracy. Specifically, M. Stepanyan admitted that in January of 2014, he purchased Niva from a co-conspirator who had set up the company. Although Niva was licensed to engage in drug wholesaling in California, it was not and did not engage in wholesale drug distribution. Instead, M. Stepanyan acknowledged, Niva was nothing more than a shell company with offices that generally were empty except for a desk, a computer, and tables for drugs that the Enterprise procured. The plea agreement describes how Enterprise members stored boxes of drugs in Niva’s offices and shipped them throughout the country using fraudulent labels that suggested the drugs were being shipped by or to authentic companies, including a legitimate drug company operating in Puerto Rico.
A. Stepanyan also admitted in his plea agreement that he was a member of the Enterprise beginning in at least January of 2010. Between 2010 and 2015, he directed and participated in a prescription drug diversion scheme whereby he procured drugs from various unlicensed sources and sold them to a co-defendant who, in turn, sold the drugs to pharmacies throughout the United States. Further, A. Stepanyan admitted that the gross receipts for the sale of those diverted prescription drugs was at least $199 million. According to the plea agreement, A. Stepanyan and his cousin, M. Stepanyan, laundered those proceeds through various bank accounts established in false identities, which M. Stepanyan controlled.
German admitted in his plea agreement that he was a member of the Enterprise between 2013 and 2015. He acknowledged that he was responsible for establishing a network of unlicensed street suppliers to provide drugs for the distribution scheme. As described in his plea agreement, German had multiple sources of drugs. Between 2013 and 2014, he obtained boxes full of prescription drugs from one of his co-conspirators in Los Angeles, California. For example, he would pick up drugs from one of his sources at a pizza shop with the help of one of his associates, load the boxes into the trunk of a car, and drive them to a nearby mall or another pre-arranged location where he would deliver them to the Stepanyans. German also admitted that in his role managing money-laundering operations for the Enterprise, he assisted with wire fraud, bank fraud, identity theft, and illegal check cashing schemes. In the plea agreement, German admits that he used his birth name, Henrik Hartyunyan, during some of the underlying illegal conduct he performed on behalf of the Enterprise.
Geuydjian admitted that he was a member of the Enterprise from at least 2012 through approximately 2014. In his plea agreement, he describes himself as a “money launderer for the Enterprise.” Geuydjian acknowledged that he and others in the Enterprise created sham companies and used multiple bank accounts to receive and distribute the proceeds from the fraudulent transactions. Geuydjian liquidated tax fraud and drug diversion proceeds by making deposits to a number of sham corporate entities that he created and allowed other members and associates of the Enterprise to use his businesses to send illicit funds and other merchandise. Furthermore, Geuydjian used the identities of real people to carry out many of the Enterprise’s unlawful objectives. For example, the plea agreement describes how Geuydjian’s co-conspirators acquired and possessed stolen identifying information for dozens of individuals in order to file fraudulent tax returns online. The Enterprise obtained checks issued by the federal government and mailed from the United States Treasury based on fraudulent tax returns. From approximately August 2012 through August 2013, Geuydjian fraudulently liquidated approximately 51 checks totaling more than $538,295 though accounts he held in the names of three companies he controlled. Geuydjian also used photocopies of driver’s licenses, social security cards, or other personal identifying with the identities of real people to open bank accounts or gain access to the victims’ bank accounts, to negotiate checks made out in the victims’ names. Furthermore, Geudjian and his co-conspirators perpetrated a tax check fraud scheme. For example, in March 2014, Geudjian deposited two tax refund checks into fraudulent Wells Fargo bank accounts—one in the amount of $117,887 and another in the amount of $131,205. These checks, which were from legitimate tax return filings, were stolen out of the mail by “runners” employed by members of the conspiracy. Geudjian also liquidated approximately $71,806 that his co-conspirators stole from a victim’s Fidelity 401K retirement account.
On February 11, 2016, a federal grand jury handed down the Second Superseding Indictment charging the four defendants—as well as 34 additional individuals—with various crimes in connection with the activities of the Enterprise. All four defendants pleading guilty today are released on bond pending sentencing. A majority of the defendants in this case have pleaded guilty to various charges, including the following:
Defendant
Charges To Which Defendant Pleaded Guilty
Status of Sentencing
MIHRAN STEPANYAN, 34, Glendale, Calif.
Pleaded guilty today to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing scheduled for September 21, 2020
(statutory maximum of 20 years in prison and $250,000 fine)
ARTUR STEPANYAN, 43, Glendale, Calif.
Pleaded guilty today to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing scheduled for September 21, 2020
(statutory maximum of 20 years in prison and $250,000 fine)
KHACHIG GEUYDJIAN, 79, Chatsworth, Calif.
Pleaded guilty today to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing scheduled for September 21, 2020
(statutory maximum of 20 years in prison and $250,000 fine)
YAN GERMAN
a/k/a Henrik Hartyunyan, 40, Encino, Calif.
Pleaded guilty today to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing scheduled for September 21, 2020
(statutory maximum of 20 years in prison and $250,000 fine)
GEVORK TER-MKRTCHYAN, 58, Encino, Calif.
Pleaded guilty on August 23, 2017, racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentenced on January 30, 2018, to 21 months in prison
ARMAN PETROSYAN, 37, Northridge, Calif.
Pleaded guilty on August 28, 2019, this defendant pled guilty pursuant to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing is scheduled for September 21, 2020
(statutory maximum of 20 years in prison and $250,000 fine)
LANNA KARAPEDYAN, 30, Los Angeles, Calif.
Pleaded guilty on October 22, 2019, to a Superseding Information charging her with aiding and abetting receiving, retaining, and concealing stolen or forged Treasury checks, in violation of 18 U.S.C. §§ 510(b) and 2.
Sentencing is scheduled for September 21, 2020 (statutory maximum of 10 years in prison and $250,000 fine)
MAXWELL STARSKY, 41, Studio City, Calif.
Pleaded guilty on August 29, 2017, racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentenced on March 9, 2018, to 18 months in prison.
SEVAK GHARGHANI, 48, Burbank, Calif.
Pleaded guilty on August 28, 2019, to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing is scheduled for September 21, 2020 (statutory maximum of 20 years in prison and $250,000 fine)
JEAN DUKMAJIAN, 66, Los Angeles, Calif.
Pleaded guilty on October 22, 2019, to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing is scheduled for September 21, 2020 (statutory maximum of 20 years in prison and $250,000 fine)
KARINE DUKMAJIAN, 38, Reseda, Calif.
Pleaded guilty on October 22, 2019, to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349.
Sentencing is scheduled for September 21, 2020 (maximum of 20 years in prison and $1,000,000, per count)
ANGELA DUKMAJIAN, 30, Los Angeles, Calif.
Pleaded guilty on October 22, 2019, to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349.
Sentencing is scheduled for September 21, 2020 (maximum of 20 years in prison and $1,000,000)
ARMAN DANIELIAN, 44, Burbank, Calif.
Pleaded guilty on October 22, 2019, to one count of conspiracy to engage in unlicensed wholesale distribution of prescription drugs, in violation of 21 U.S.C. §§ 331(t), 333(b)(1)(D), and 353(e)(2)(A).
Sentencing is scheduled for September 21, 2020 (maximum of 10 years in prison and $250,000, per count)
ASATOUR MAGZANYAN, 58, Los Angeles, Calif.
Pleaded guilty on March 15, 2019, to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing is scheduled for September 21, 2020 (statutory maximum of 20 years in prison and $250,000 fine)
TIGRAN SARKISYAN, 45, Toluca Lake, Calif.
Pleaded guilty on May 10, 2017, to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentenced on August 1, 2018, to 15 months in prison.
HRIPSIME KHACHTRYAN, 45, Toluca Lake, Calif.
Pleaded guilty on May 10, 2017, to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentenced on August 1, 2018, to 12 months and one day in prison.
LOUI ARTIN, 58, North Hollywood, Calif.
Pleaded guilty on November 15, 2017, to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing is scheduled for September 21, 2020 (statutory maximum of 20 years in prison and $250,000 fine)
ARMAN ZARGARYAN, 37, Granada Hills, Calif.
Pleaded guilty on November 20, 2019, to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentencing is scheduled for September 21, 2020 (statutory maximum of 20 years in prison and $250,000 fine)
DMITRIY KUSTOV, 50, Los Angeles, Calif.
Pleaded guilty on May 10, 2017, to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).
Sentenced on August 29, 2018 to a term of probation.
MICHAEL INMAN, 58, Los Angeles, Calif.
Pleaded guilty on February 8, 2017, to one count of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349.
Sentenced on June 7, 2017, to 34 months in prison.
ARAXIA NAZARYIAN, 29, Van Nuys, Calif.
Pleaded guilty on December 18, 2019, to a Superseding Information charging her with misdemeanor introduction or delivery for introduction of adulterated or misbranded drugs, in violation of 21 U.S.C. §§ 331(a) and 333(a)(1)).
Sentencing is scheduled for September 21, 2020 (maximum statutory sentence is one year in prison and a $1,000 fine)
CHERYL BARNDT, 46, Spicewood, Texas
Pleaded guilty on August 21, 2019, to a Superseding Information charging her with misdemeanor introduction or delivery for introduction of adulterated or misbranded drugs, in violation of 21 U.S.C. §§ 331(a) and 333(a)(1)).
Sentencing is scheduled for September 21, 2020 (maximum statutory sentence is one year in prison and a $1,000 fine)
ERIC FIGUEROA, 35, Los Angeles, Calif.
Pleaded guilty on June 13, 2018, to one count of conspiracy to engage in the unlicensed wholesale distribution of drugs, in violation of 21 U.S.C. §§ 331(t), 333(b)(1)(D), 353(e)(2)(A), and 18 U.S.C. § 371.
Sentenced on February 22, 2019, to three years’ probation, six months of home detention, and 200 hours of community service.
MARC ASHEGHIAN, 59, Sherman Oaks, Calif.
Pleaded guilty on December 11, 2019 to a Superseding Information charging him with aiding and abetting the unlicensed wholesale distribution of drugs, in violation of 21 U.S.C. §§ 331(t), 333(b)(1)(D), 353(e)(2)(A), and 18 U.S.C. § 2.
Sentencing is scheduled for September 21, 2020 (maximum statutory sentence is 10 years in prison and a $250,000 fine)
MICHAEL ASHEGHIAN, 71, Vernon, Calif.
Pleaded guilty on December 11, 2019 to a Superseding Information charging him with aiding and abetting the unlicensed wholesale distribution of drugs, in violation of 21 U.S.C. §§ 331(t), 333(b)(1)(D), 353(e)(2)(A), and 18 U.S.C. § 2.
Sentencing is scheduled for September 21, 2020 (maximum statutory sentence is 10 years in prison and a $250,000 fine)
ARARAT YESAYAN, 39, Glendale, Calif.
Pleaded guilty on February 6, 2017, to one count of conspiracy to commit identity theft, in violation of 18 U.S.C. § 1028(f).
Sentenced on June 9, 2017 to a term of five years of probation.
ILIA NALBANS, 57, Montbello, Calif.
Pleaded guilty on March 15, 2019 to two counts of forging endorsements on Treasury checks and aiding and abetting the same, in violation of 18 U.S.C. §§ 510 and 2.
Sentenced on June 19, 2019, to restitution of $17,215 and a term of two years of supervised release.
For those defendants who have not yet been sentenced, in addition to a term of imprisonment and fine, the court also may order additional periods of supervised release, restitution, and special assessments. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A separate investigation resulted in another indictment filed on May 6, 2015 in the Southern District of Ohio charging M. Stepanyan, A. Stepanyan, and others with various crimes arising from their sale of millions of dollars of illicitly-procured drugs. That matter was transferred to the Northern District of California and consolidated with the instant case.
Assistant United States Attorneys Claudia A. Quiroz, Andrew Dawson, and Chris Kaltsas are prosecuting the case with the assistance of Adrienne DelaPena and Kevin Costello. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the IRS.
Four Defendants Appeared in Federal Court via Video Conference Today in Connection with Federal Gun Crime OffensesRead the Press Release
SHREVEPORT La. – United States Attorney David C. Joseph announced the resolution of several cases today, all of which are separately noted. The cases were brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. PSN plays a major role in the Department of Justice’s violent crime reduction strategy. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
Three-Time Convicted Felon Sentenced to 66 Months for Illegal Possession of a Firearm
Defendant attempted to conceal pistol in child’s car seat
SHREVEPORT, La. – Gary D. Porter, 29, of Shreveport, was sentenced today by U.S. District Judge Donald E. Walter, to 66 months in federal prison and three years of supervised release following his prison term, for possession of a firearm by a convicted felon.
On November 19, 2018, officers with the Shreveport Police Department responded to the driveway of a residence after receiving a 911 call. As the officers arrived, Porter was backing his car out of the driveway with several young children in the vehicle. Officers made contact with Porter and upon further investigation, located a Ruger, Model Security-9, 9mm pistol loaded with twelve rounds of ammunition hidden underneath one of the children, between the child and the child’s car seat. At the time that Porter possessed the pistol, he knew his previous felony convictions prohibited him, under federal law, from possessing a firearm and ammunition. Porter’s prior felony convictions in Caddo Parish include: possession of marijuana – second offense (2011), possession of cocaine (2012), and possession with intent to distribute marijuana (2014).
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Shreveport Police Department investigated the case. Assistant U.S. Attorney Cadesby Cooper prosecuted the case.
Shreveport Man Pleads Guilty to Illegal Possession of Sawed-Off Shotgun
SHREVEPORT, La. – John Jackson Harkey, 35, of Shreveport, pleaded guilty today before U.S. District Judge Donald E. Walter to possession of a short-barreled shotgun not registered to him in the National Firearms Registration and Transfer Record.
On February 21, 2019, officers with the Shreveport Police Department obtained and executed a search warrant on Harkey’s downtown Shreveport residence. During the search, officers found an operable, short-barreled shotgun, with a barrel length less than 18 inches and an overall length less than 26 inches. Under federal law, shotguns with barrels shorter than 18 inches must be registered. Harkey admitted to possessing the firearm and that he had not registered the short-barrel shotgun with the National Firearms Registration and Transfer Record.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Shreveport Police Department investigated the case. Assistant U.S. Attorney Mike Shannon is prosecuting the case.
Convicted Felon Sentenced to Two Years for Illegally Possessing Firearms During the Filming of a Music Video
SHREVEPORT, La. – Xavier Briggs, 27, of Shreveport, was sentenced today by U.S. District Judge Donald E. Walter, to two years in federal prison and three years of supervised release following his prison term, for felon in possession of firearms.
On April 25, 2019, officers with the Shreveport Police Department responded to AB Palmer Park in Shreveport where a large crowd was filming a music video with numerous firearms. Officers encountered 10 individuals standing around a Chevrolet Malibu and recovered multiple firearms from the scene. A camera being used to shoot the video was also seized and a search warrant was obtained to view its contents. Briggs can be seen in the video recordings in possession of a Jiminez Arms Model JA Nine 9mm pistol loaded with 4 rounds of 9mm ammunition, and a loaded DPMS Model A15, 5.56 mm rifle containing two 30-round magazines, and 41 rounds of 5.56 ammo.
Briggs has a 2011 armed robbery felony conviction in Caddo District Court and was released from prison in December 2018. It is a violation of federal law for a person previously convicted of a felony offense to possess firearms or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Shreveport Convicted Felon Sentenced to 54 Months for Illegal Possession of a Firearm
SHREVEPORT, La. – Christopher John Williams, 30, of Shreveport, was sentenced today by U.S. District Judge Donald E. Walter, to 54 months in federal prison and three years of supervised release following his prison term, for possession of a firearm by a convicted felon.
On January 31, 2019, Williams was arrested on a state offense and held in custody at Caddo Correctional Center. While he was in custody, he called two friends and asked them to get rid of a firearm that was located at his residence. Following the calls, agents made contact with an individual Williams shared his residence with and secured a Springfield XDS .45 caliber pistol. At his guilty plea on November 19, 2019, Williams admitted that the pistol belonged to him and to being a convicted felon. As a convicted felon, he knew it was illegal for him to possess a firearm or ammunition.
Williams has prior felony convictions in Caddo Parish for illegal use of a weapon (2007), second degree battery (2009), accessory after the fact – robbery (2014), domestic abuse battery (2015), and public intimidation (2017).
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI Northwest Louisiana Violent Crimes Task Force, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fort Wayne Man Sentenced to 92 Months in PrisonRead the Press Release
FORT WAYNE – William Watson, age 40, of Fort Wayne, Indiana, was sentenced before U.S. District Court Judge Holly A. Brady following his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Watson was sentenced to 92 months in prison followed by 2 years of supervised release.
According to documents presented in this case, on January 18, 2019, Mr. Watson possessed a firearm after previously being convicted of three prior felony convictions, all in Allen County Superior Court. The three prior state felony offenses were as follows: November 2004 for dealing cocaine or narcotic drug; March 2009 for resisting law enforcement; and December 2015 for residential entry.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
Former Pineville Pastor Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former Pineville, Missouri, pastor was sentenced in federal court today for producing child pornography.
Ryan Daniel Crawford, 33, of Austin, Arkansas, was sentenced by U.S. District Judge M. Douglas Harpool to 25 years in federal prison without parole. The court also ordered Crawford to pay $2,500 in restitution to one of the victims of his molestation, and sentenced Crawford to 20 years on supervised release following incarceration.
On Sept. 16, 2019, Crawford pleaded guilty to one count of producing child pornography. Crawford admitted that he had touched the 9-year-old victim’s genitals with his hands, and that he had photographed her genitals with his cell phone while she was sleeping. Investigators located sexually explicit images of the child victim on Crawford’s cell phone.
Crawford was the assistant pastor at First Baptist Church in Pineville for approximately seven years until his arrest on state charges in 2017. He was indicted by a federal grand jury in 2019 and the state charges were dismissed. Crawford has remained in federal custody since his arrest on the federal indictment.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crime Task Force, and the Pineville, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Member of Venezuelan National Assembly Charged with Narco-Terrorism, Drug Trafficking, and Weapons OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Timothy J. Shea, Acting Administrator U.S. Drug Enforcement Administration (“DEA”), announced today that ADEL EL ZABAYAR was charged in Manhattan federal court with participating in a narco-terrorism conspiracy, a cocaine importation conspiracy, and related weapons offenses involving the use and possession of machineguns and destructive devices, all based on his support of the Venezuelan Cártel de Los Soles and designated Foreign Terrorist Organizations Fuerzas Armadas Revolucionarias de Colombia (“FARC”), Hizballah, and Hamas.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Adel El Zabayar was part of the unholy alliance of government, military, and FARC members using violence and corruption to further their narco-terrorist aims. El Zabayar was allegedly a key part of the apparatus that conspired to export literally tons of cocaine into the U.S. We further allege today, for the first time, that the Cártel de Los Soles sought to recruit terrorists from Hizballah and Hamas to assist in planning and carrying out attacks on the U.S., and that El Zabayar was instrumental as a go-between. Allegedly, El Zabayar obtained from the Middle East a cargo planeload of military-grade weaponry. With today’s charges, El Zabayar joins the rogues’ gallery of defendants we charged two months ago, and he faces the possibility of life in a U.S. prison if and when he is apprehended.”
DEA Acting Administrator Timothy J. Shea said: “Today’s charges against Adel El Zabayar for trading arms for cocaine, and recruiting extremists, further demonstrates the corruption inside the Maduro regime. The actions charged in the complaint show that Maduro’s administration operates with no regard for its own citizens, instead choosing to flood the United States with cocaine and other drugs while enriching itself. As the layers of the Maduro regime are exposed, so is its immoral, unethical, and dangerous actions.”
According to the allegations contained in the Complaint charging EL ZABAYAR and in the related Superseding Indictment charging Maduro Moros and others in the Southern District of New York, which was unsealed on March 26, 2020[1]:
EL ZABAYAR is a member of the Cártel de Los Soles, or “Cartel of the Suns.” The Cartel’s name refers to the sun insignias affixed to the uniforms of high-ranking Venezuelan military officials. For more than two decades, Cartel members, including EL ZABAYAR and Maduro Moros, have abused the Venezuelan people and corrupted the legitimate institutions of Venezuela – including parts of the military, intelligence apparatus, legislature, and the judiciary – to facilitate the importation of tons of cocaine into the United States. The Cartel sought not only to enrich its members and enhance their power, but also to “flood” the United States with cocaine and inflict the drug’s harmful and addictive effects on users in the United States.
The Cártel de Los Soles has worked in coordination with designated Foreign Terrorist Organizations, including the FARC, Hizballah, and Hamas. EL ZABAYAR, in particular, has, among other things, participated in weapons-for-cocaine negotiations with the FARC, obtained anti-tank rocket launchers from the Middle East for the FARC as partial payment for cocaine, and recruited terrorists from Hizballah and Hamas for the purpose of helping to plan and organize attacks against United States interests.
For example, in or about 2014, EL ZABAYAR participated in several meetings with Diosdado Cabello Rondón, the president of Venezuela’s National Constituent Assembly and a member of the Cártel de Los Soles, at a military base in Caracas, Venezuela. During the meetings, Cabello Rondón directed EL ZABAYAR to travel to the Middle East to obtain weapons and recruit members of Hizballah and Hamas to train at clandestine training camps located in Venezuela. Cabello Rondón explained during the meeting, among other things, that the purpose of recruiting members of Hizballah and Hamas to train in Venezuela was to create a large terrorist cell capable of attacking United States interests on behalf of the Cártel de Los Soles. EL ZABAYAR agreed. Several months later, after EL ZABAYAR returned to Venezuela from the Middle East, EL ZABAYAR, Cabello Rondón, and others traveled together to a hangar controlled by Maduro Moros at the Simón Bolívar International Airport in Maiquetía, Venezuela, where EL ZABAYAR received a Lebanese cargo plane full of weapons, including rocket-propelled grenade launchers, AK-103s, and sniper rifles, that EL ZABAYAR had obtained while he was in the Middle East, as Cabello Rondón had directed.
During the course of EL ZABAYAR’s activities on behalf of the Cártel de Los Soles, EL ZABAYAR also acted as a liaison between the Venezuelan government and Syrian president Bashar Hafez al-Assad, fought in Syria on behalf of Assad’s Hizballah-backed forces in or about 2013, and appeared in at least two interviews released by Al Manar, Hizballah’s terrorist-designated propaganda arm, in or about 2013 and 2014.
* * *
The Complaint charges EL ZABAYAR, 56, with: (1) participating in a narco-terrorism conspiracy, which carries a 20-year mandatory minimum sentence and a maximum of life; (2) conspiring to import cocaine into the United States, which carries a 10-year mandatory minimum sentence and a maximum of life; (3) using and carrying machine guns and destructive devices during and in relation to, and possessing machine guns and destructive devices in furtherance of, the narco-terrorism and cocaine importation conspiracies, which carries a 30-year mandatory minimum sentence and a maximum of life; and (4) conspiring to use and carry machine guns and destructive devices during and in relation to, and to possess machine guns and destructive devices in furtherance of, the narco-terrorism and cocaine importation conspiracies, which carries a maximum sentence of life. The potential mandatory minimum and maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA’s Special Operations Division Bilateral Investigations Unit and New York Strike Force.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle, Matthew J. Laroche, Jason A. Richman, and Kyle Wirshba are in charge of the prosecution.
The charges in the Complaint and Superseding Indictment S2 11 Cr. 205 are merely accusations, and EL ZABAYAR and the defendants named in the Superseding Indictment are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Superseding Indictment and the description of those documents set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Macomb County Commissioner of Public Works Anthony Marrocco Indicted for ExtortionRead the Press Release
An Indictment unsealed today charges former Macomb County Department of Public Works (DPW) Commissioner Anthony Marrocco, 71, of Ray Township, Michigan, with conspiracy to commit extortion in a scheme spanning over two decades, from 1994 through 2016, United States Attorney Matthew Schneider announced. The Indictment also charges Marrocco with two counts of extortion and one count of attempted extortion. This new Indictment is another key part of federal law enforcement’s effort to root out corruption in suburban Detroit communities.
According to the Indictment, during the course of the conspiracy, it is alleged that Marrocco directed his DPW underling Dino Bucci and others at DPW to pressure builders and contractors in Macomb County to purchase hundreds of thousands of dollars in tickets to Marrocco’s twice-yearly fundraisers. Marrocco allegedly kept lists of those who purchased these expensive tickets and those who did not. Marrocco would allegedly inflict economic punishment on those who did not purchase tickets by holding up permits for builders, delaying payments owed to DPW vendors, and refusing to award DPW contracts to engineering firms, among other punishments. The indictment further alleges that builders and contractors bought thousands of dollars in tickets because they feared that Marrocco would economically punish them. The indictment alleges that Marrocco used some of the monies he extorted from the victims to pay for personal expenses, including air travel, car rentals, dinners at high-end restaurants, condo association charges, spa visits, wedding and holiday gifts, and yacht club charges.
The indictment of Marrocco is a significant development in federal law enforcement’s years-long effort to aggressively investigate and prosecute corruption in suburban Detroit. Thus far in this effort, some twenty-two public officials and bribe-paying businessmen have been charged and convicted, including two defendants convicted after jury trials.
Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Sarah L. Kull, Special Agent in Charge of the Detroit Field Office of IRS Criminal Investigations.
United States Attorney Schneider said: “For far too long, due to Commissioner Marrocco’s unchecked power over builders and contractors in Macomb County, business owners were forced to pay homage to the Commissioner by purchasing expensive fundraising tickets for the sole benefit of the Commissioner. The two decades of alleged extortion by Mr. Marrocco show an obscene abuse of power and a grave betrayal of the trust of the citizens of Macomb County. The fact that he is now facing four 20-year felonies is well-deserved and a consequence that was long overdue. The investigation is a testament to the unwavering dedication of the agents of the FBI and IRS and my office’s resolve to rid the Eastern District of Michigan of pay-to-play government.”
“Public corruption is the FBI’s number one criminal investigative priority because a lack of faith in elected government undermines our institutions," said Steven M. D'Antuono, Special Agent in Charge of the FBI in Michigan. "The FBI and our law enforcement partners will continue to dedicate resources to this issue until the public’s trust in elected officials is restored, and honest and responsible government is the order of the day in Macomb County and throughout the State of Michigan.
IRS-CI Special Agent in Charge Sarah Kull stated, “Identifying and stopping public corruption remains one of the IRS-CI’s highest priorities. Today’s indictment underscores our commitment to work in a collaborative effort with our law enforcement partners to promote honest and ethical government at all levels and to prosecute those who allegedly violated the public’s trust.”
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys R. Michael Bullotta and Steven Cares.
An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
For each of the four counts of the Indictment, Marrocco faces up to twenty years in prison and a $250,000 fine.
Former Attorney Charged with Conspiracy, Bankruptcy Fraud, and Defrauding Clients of $1.3 MillionRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging James Lee Clark (59, Wilton Manors) with one count of conspiracy to commit bankruptcy fraud, seven counts of bankruptcy fraud, one count of making a falsification of records in a bankruptcy proceeding, and eight counts of wire fraud. If convicted, Clark faces up to 20 years’ imprisonment for the falsification of records count and for each wire fraud count. He faces up to 5 years in federal prison for the conspiracy count, and for each bankruptcy fraud count. The indictment also notifies Clark that the United States is seeking a money judgment of $1.3 million, the proceeds of the charged criminal conduct.
According to the indictment, from January 2010 through February 2017, Clark conspired with his paralegal, Eric Liebman, to defraud mortgage creditors and guarantors, such as Fannie Mae, who were holding mortgage notes on properties that were in foreclosure. The indictment further charges that Clark and Liebman falsely and fraudulently represented to the distressed homeowners facing foreclosure that, in exchange for executing quitclaim or warranty deeds for their properties to an entity controlled by Liebman, they would negotiate with the mortgage creditors to prevent foreclosures. Clark and Liebman convinced the distressed homeowners to pay them rent, or agree to put their houses up for sale. In order to continue to collect ill-gotten rents, or profit from the sale of the properties, Clark allegedly filed fraudulent bankruptcy petitions in the names of the homeowners to prevent the mortgage creditors from lawfully foreclosing and taking title to the property. In some instances, Clark filed multiple fraudulent petitions in the names of distressed homeowners.
Additionally, it is further alleged that, from January 2012 to February 2017, Clark, who was a licensed attorney, defrauded his clients out of approximately $1.3 million. As part of his practice, Clark would act as a trustee for his clients and also hold their money in various bank accounts depending on the purpose of trust. Instead of using the funds for the purpose intended by his clients, Clark would divert the money into his law firm’s bank accounts and pay for personal expenses, such as gambling, travel, and automobiles.
Liebman pleaded guilty to one count of conspiracy to commit bankruptcy fraud on September 24, 2019. His sentencing hearing is scheduled for January 14, 2021.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of United States Trustee for the Middle District of Florida, Tampa Division provided substantial investigative assistance. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
Former Aide to L.A. City Councilmember Agrees to Plead Guilty to RICO Charge Stemming from ‘Pay-to-Play’ Corruption SchemeRead the Press Release
LOS ANGELES – The former special assistant to a member of the Los Angeles City Council has agreed to plead guilty to a federal racketeering charge stemming from a “pay-to-play” bribery scheme where real estate developers and their proxies provided over $1 million in financial benefits, including cash, to the councilmember and others to ensure certain real estate projects received favored treatment.
George Esparza, 33, of Boyle Heights, agreed to plead guilty to one count of conspiring to violate the Racketeer Influenced and Corrupt Organization (RICO) statute.
Esparza was charged with the racketeering offense in a criminal information filed today in United States District Court. In addition to the charging document, federal prosecutors filed a plea agreement in which Esparza committed to entering a guilty plea and agreed to continue cooperating in the ongoing investigation into political corruption in the City of Los Angeles.
In the court documents filed today, Esparza admitted to participating in a criminal enterprise called the Council District A Enterprise (CD-A Enterprise), which was led by his one-time boss, who was chair of the City Council’s Planning and Land Use Management (PLUM) Committee and is described as “Councilmember A.”
“Members and associates of the CD-A Enterprise conspired with one another to facilitate bribery schemes that would provide Councilmember A and other City officials financial benefits and keep Councilmember A in power and maintain the CD-A Enterprise’s political stronghold in the City,” according to the plea agreement.
Esparza admitted that he was a member of the criminal enterprise from early 2013 through November 2018, which is when Esparza began cooperating with federal authorities and after the FBI executed multiple search warrants related to the investigation. According to the plea agreement, during the time of the conspiracy, Esparza and Councilmember A accepted financial benefits and agreed to perform official acts, including:
- filing motions and voting on projects, including matters before the City Council;
- taking, or not taking, action on the PLUM Committee to influence the approval process and project costs;
- negotiating with and exerting pressure on labor unions and other city entities to resolve issues on projects;
- exerting pressure on developers with projects pending before the city; and
- taking official action to enhance the professional reputation and marketability of businesspersons in Los Angeles.
While a member of the criminal enterprise, Esparza participated in several schemes, he admitted in his plea agreement. One scheme centered on a massive downtown project described as “Project E,” which was being developed by a Chinese company run by a Chinese billionaire called “Chairman E” in court papers.
“Chairman E provided defendant Esparza and Councilmember A financial benefits in over a dozen trips to casinos in Las Vegas and Australia,” according to the plea agreement. “Between June 2014 and January 2018, defendant Esparza personally accepted at least approximately $32,000 in gambling chips, plus flights on private jets and commercial airlines, stays at luxurious hotels, expensive meals and alcohol, spa services, event tickets, and escort services from Chairman E.”
The plea agreement also states that, at the urging of another city official described as “Individual 1,” Chairman E agreed to facilitate a $600,000 payment to help Councilmember A confidentially resolve a sexual harassment lawsuit filed against Councilmember A during a 2014 re-election campaign.
In exchange for the $600,000 from Chairman E, Councilmember A routinely assisted with Chairman E’s requests. For example, Councilmember A introduced and secured the passage of a resolution before the City Council that recognized Chairman E’s “achievements and contributions to the economy of CD-A,” the plea agreement states.
Furthermore, Chairman E provided bribes to Esparza and Councilmember A because Councilmember A was poised to significantly benefit plans to redevelop Property E and “transform it into a 77-story skyscraper, making it the tallest building west of the Mississippi River,” according to the plea agreement. This included meeting with Chairman E and his team to discuss tax rebates and other incentives from the City, as well as Councilmember A providing assistance in hiring a consultant to work on Project E. At one point, Esparza told another member of the CD-A staff that Chairman E had “leverage” over Councilmember A because of the financial benefits Chairman E provided. According to court documents, “Chairman E provided over $1 million in bribes to Councilmember A so that Councilmember A would benefit Chairman E’s plans to redevelop his property in CD-A.”
A second bribery scheme described in the plea agreement centers on Project C and a $500,000 cash bribe funded by Developer C to secure Councilmember A’s help in resolving a labor organization’s appeal, which halted the approval process of the real estate development. This bribe, which was facilitated by political fundraiser Justin Jangwoo Kim, was designed to obtain Councilmember A’s influence “to pressure Labor Organization A to withdraw, abandon, or otherwise lose its appeal opposing Project C,” which would allow the project to move forward and would save Developer C $30 million in development costs, the plea agreement states. Esparza admitted that he played a role in negotiating the bribe, as well as having discussions with representatives of Labor Organization A.
In March, Kim agreed to plead guilty to a bribery charge for his role in this scheme. Esparza admitted that he and Kim kept some of the money paid in 2017 as kickbacks for facilitating the bribe, and that he hid $200,000 in cash for Councilmember A. In mid-2017, Esparza asked an employee of Chairman E to conceal the $200,000, as well as other illicit cash, because Esparza feared law enforcement would search his house and discover the money.
In another scheme related to the criminal enterprise, Esparza admitted accepting money from “Businessman A,” who asked Esparza and Councilmember A to use their official positions to make introductions to developers and advocate that they use Businessperson A’s business. For approximately the first six months of 2017, Esparza accepted monthly cash payments of approximately $8,000 to $10,000, with Businessperson A sometimes paying Esparza in the bathroom during meetings in restaurants, according to the plea agreement. Esparza also went on a Businessman A-funded trip to Las Vegas in June 2017 – a trip also attended by then-City Councilman Mitchell Englander, who also has agreed to plead guilty in this investigation related to lying to the FBI about cash and other benefits received from Businessperson A on that trip.
In his plea agreement, Esparza also admitted to lying to special agents with the FBI during interviews in June and July of 2017 by falsely stating, among other things, that he had no knowledge of any city official helping on a project in exchange for money, gifts or campaign contributions.
The court has not scheduled a date for Esparza to enter his guilty plea. Once he does formally enter the guilty plea, he will face a statutory maximum sentence of 20 years in federal prison.
The case against Esparza is part of an ongoing public corruption investigation being conducted by the FBI and the U.S. Attorney’s Office.
The case against Esparza is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorney Veronica Dragalin of the Public Corruption and Civil Rights Section.
Esparza is the fourth person to agree to plead guilty to a federal felony related to this ongoing investigation. Kim is scheduled to enter his guilty plea on June 3, and Englander is set to plead guilty on June 4. Real estate development consultant George Chiang earlier this month agreed to plead guilty to a RICO charge for participating in the pay-to-play scheme and is set to enter his guilty plea on June 26.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Final Defendant Sentenced in Methamphetamine ConspiracyRead the Press Release
LONDON, Ky. - A Somerset, Kentucky, woman, Kathie Huff, was sentenced in federal court on Tuesday, to 68 months in prison, by U.S. District Judge Robert Wier, after previously pleading guilty to conspiring to distribute more than 500 grams or more of methamphetamine. Huff was the final defendant to be sentenced in this case.
In her plea agreement, Huff admitted that between September 2017 and March 2019, she conspired with others to distribute 500 grams or more of methamphetamine in Pulaski, Laurel Wayne, McCreary, and Anderson counties. According to Huff’s plea agreement, she developed an arrangement with a methamphetamine dealer in Louisville, through whom she regularly obtained large quantities of methamphetamine and then returned to Pulaski County to sell it. According to court documents, Huff’s source of methamphetamine supply was David Ameral. Ameral also supplied other members of the conspiracy, including Robert Jerome “Cotty” Beach, who Huff introduced to Ameral. Additionally, as part of the conspiracy, Ameral also supplied methamphetamine to Ignacio Brasfield.
Huff pled guilty in October 2019. Huff’s co-conspirators have received the following sentences: Ameral received 137 months and five years supervised release; Brasfield received 151 months and eight years of supervised release; and Beach received 157 months and five years of supervised release.
Under federal law, Huff and her co-conspirators must serve 85 percent of their prison sentences. Upon her release, Huff’s will be under the supervision of the United States Probation Office for four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge, DEA Louisville Field Division; Commissioner Rodney Brewer, Kentucky State Police; Chief Bryan Taylor, Lawrenceburg Police Department; Chief William Hunt, Somerset Police Department; and Sheriff Greg Speck, Pulaski County Sheriff’s Department, jointly made the announcement.
The investigation was conducted by the DEA, KSP, Louisville Metro Police Department, Pulaski County Sheriff’s Office, the Lake Cumberland Area Drug Task Force, Somerset Police Department, and Lawrenceburg Police Department
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Doon, Iowa, Man Sentenced to Federal Prison for Distributing Child PornographyRead the Press Release
A man who distributed child pornography was sentenced May 26, 2020, to more than 7 years in federal prison.
Diego Felipe Juan, age 46, originally from Guatemala and living in Doon, Iowa, received the prison term after a December 2, 2019, guilty plea to one count of distribution of child pornography.
In a plea agreement, Juan admitted that between November of 2018 and January 18, 2019, using the internet, he knowingly distributed a visual depiction of a minor engaged in sexually explicit conduct to another person. It was revealed at the sentencing hearing that Juan had other videos of child pornography on his cell phone.
Juan was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Juan was sentenced to 87 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Juan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources
The case was prosecuted by Assistant United States Attorneys Ron Timmons and Timothy Duax and investigated by the Iowa Division of Criminal Investigation, the Iowa Internet Crimes Against Children Task Force, the FBI Child Exploitation Task Force, Homeland Security Investigations, and the Lyon County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4032.
Follow us on Twitter @USAO_NDIA.
Couple Sentenced to 13 Years and 11 Years, Respectively, for Conspiracy to Distribute MethamphetamineRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced today that Robert Perkins, 58, of Hall Summit, Louisiana, and Deborah Hawthorne, 60, of Monroe, Louisiana, were sentenced by U.S. District Judge Donald E. Walter, to serve 13 years and 11 years in federal prison, respectively, for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing methamphetamine.
On July 29, 2019, a Ouachita Parish Sheriff’s Office deputy observed a Dodge Charger commit a traffic violation. The deputy learned that the license plate on the vehicle was previously reported stolen and conducted a traffic stop. Robert Perkins, the driver, and Deborah Hawthorne, the passenger, denied consent to search the vehicle. After a K-9 unit alerted on the vehicle, deputies searched it and recovered approximately 960 grams of methamphetamine, three cell phones, and digital scales. Perkins later admitted to the officers that he knew the methamphetamine was inside the vehicle. The text messages on the cell phones recovered from the Charger revealed that Perkins and Hawthorne were working together to distribute the methamphetamine and shared in the proceeds.
The U.S. Drug Enforcement Administration and the Ouachita Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Jessica D. Cassidy 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.
Chinese Man Pleads Guilty to Possession of A Machine GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Rejjie Ni, 24, of Shanghai, China, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession of a machine gun. The charge carries carry a maximum penalty of 10 years in prison, and a $250.000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that on March 18, 2019, the Amherst Police Department responded to the defendant’s apartment following a report that there were a large number of firearms inside the residence. During the execution of a search warrant, officers recovered 33 rifles, two shotguns, and numerous rounds of ammunition, including armor piercing bullets.
One of the rifles recovered was a semi-automatic rifle under Ni’s bed. Subsequent investigation and expert analysis determined that the defendant had converted the semi-automatic rifle into a fully automatic machinegun.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, the Amherst Police Department, under the direction of Chief John Askey, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for October 5, 2020, before Judge Vilardo.
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Charleston Man Sentenced to Prison for EscapeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that a Charleston man was sentenced to federal prison for escape. Lacy Moore, 40, was sentenced to 12 months in federal prison and three years of supervised release for walking away from Dismas Charities Halfway House in St. Albans in January 2019. Moore was serving a revocation sentence at the halfway house in connection with his original 2003 conviction in the Southern District of West Virginia for possession of a firearm during and in relation to a drug trafficking crime.
“If you do the crime, you do the time. That’s the deal. In this case, Mr. Moore will get to be a guest of the federal prison system even longer because he violated the terms of his punishment,” said United States Attorney Mike Stuart. “You cannot escape without penalty.”
Moore previously admitted that he left the halfway house in early 2019 and remained in escape status, with his whereabouts unknown, for most of 2019. United States Marshals apprehended Moore in December 2019.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Kristin F. Scott handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
Follow us on Twitter: SDWVNews and USAttyStuart
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Bronx, New York, Man Sentenced to 46 Months in Prison for Role in Conspiracy to Distribute Heroin and Fentanyl from Drug Mill in the BronxRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 46 months in prison for his role in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.
Daury Contreras Ulerio, 35, a/k/a “Majimbou,” previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, Francisco Mercedes Gil, 31, and Jose Antonio Vazquez Pena, a/k/a “Tono,” 47, also of the Bronx, New York, all have pleaded guilty before Judge Salas to the same charges previously and are awaiting sentencing.
Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge as Ulerio in August 2019. Their cases are pending; the charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New Jersey Division, under the direction of Special Agent in Charge Jason Molina, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
Attorney General William P. Barr Announces the Appointment of Stephen J. Cox as U.S. Attorney for the Eastern District of TexasRead the Press Release
Attorney General William P. Barr announced today the appointment of Stephen J. Cox as U.S. Attorney for the Eastern District of Texas, pursuant to 28 U.S.C. § 546, effective June 1, 2020.
As U.S. Attorney, Cox will serve as the chief federal law enforcement officer in the Eastern District of Texas. He will be in charge of overseeing 55 Assistant U.S. Attorneys and 65 support staff, across six offices. Cox will be responsible for the prosecution of federal criminal offenses in the district, and will represent the United States in all civil litigation in the district.
“I am pleased to appoint Stephen J. Cox as U.S. Attorney of the Eastern District of Texas. Steve has been a consummate professional and dedicated leader throughout his time in the Office of the Associate Attorney General,” said Attorney General William P. Barr. “Steve’s vast experience in areas ranging from regulatory reform to fraud to corporate compliance, and his reputation for fairness, sound judgment, and management, will serve him well in Eastern Texas.”
Before being appointed as U.S. Attorney, Cox served as Deputy Associate Attorney General and Chief of Staff within the Department’s Office of the Associate Attorney General. In his role, Cox spearheaded numerous policy reforms relating to corporate enforcement and regulatory reform, as well as overseeing several Department matters relating to financial fraud and healthcare fraud. He also served as vice chair of the Deputy Attorney General’s working group on corporate enforcement and accountability, and as executive director of the Department’s regulatory reform task force.
Previously, Cox served on the William H. Webster Commission on the FBI, Counterterrorism, Intelligence, and the Events of Fort Hood, and as a senior advisor to the Director of U.S. Immigration and Customs Enforcement. Cox has also spent time in private practice, dealing with white collar investigations, ethics and compliance, and regulatory matters.
Cox has a B.S. degree from the Texas A&M University and J.D. degree from the University of Houston Law Center. He is a member of the Texas and District of Columbia bars.
For more information about the U.S. Attorney’s Office for the Eastern District of Texas, please visit https://www.justice.gov/usao-edtx.
26 May 2020
Wilmington Man Responsible for Distributing Kilograms of Heroin Receives 15 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – A Wilmington man was sentenced on May 23, 2020 to 180 months in prison for conspiracy to distribute and possess with the intent to distribute 1000 grams or more of heroin, possession with intent to distribute 100 grams or more of heroin and a quantity of cocaine and possession of a firearm by a convicted felon.
According to court documents, William Gethers, 49, was involved in the importation and distribution of heroin and cocaine into Wilmington. Between May and September 2019, the New Hanover County Sheriff’s Office Vice Division made several undercover purchases from Gethers. On September 10, 2019, detectives served a search warrant on a “stash house” in Wilmington where Gethers had approximately 39,000 bags of heroin, 9 ounces of cocaine and more than $10,000.00. Additionally, detectives searched his residence on Prices Lane and found an additional $44,000.00 and two handguns. During a follow up investigation, law enforcement seized an additional $148,050.00 that had been hidden in Gethers’ home and in banks accounts. The total amount of drug proceeds seized was more than a quarter of a million dollars. During the course of the investigation, law enforcement uncovered that Gethers was responsible for importation and distribution of more than 5 kilograms of heroin.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Drug Enforcement Administration and the New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case. This case was part of the OCDETF investigation “White Rabbit” focusing on a drug trafficking organizations involved in the importation of Heroin and Methamphetamine into Eastern North Carolina.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-159-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Attorney Drew Wrigley Seeks Reporting of Sexual Harassment in HousingRead the Press Release
BISMARCK - United States Attorney Drew Wrigley is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The COVID-19 pandemic and public health emergency has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit individuals with financial challenges, including by sexual misconduct. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
"While most landlords and housing providers have responded to the hardships of the COVID-19 crisis with understanding, others may attempt to exploit the financially vulnerable," said United States Attorney Drew Wrigley. "Such behavior is as illegal as it is appalling, and the United States Attorney’s office stands ready to investigate complaints of sexual harassment in housing, and we will deploy all available enforcement tools."
The Justice Department’s Sexual Harassment in Housing Initiative is an effort led by the Civil Rights Division, in coordination with United States Attorney’s Offices. The Justice Department has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department of Justice, through the Civil Rights Division and the United States Attorney’s Offices, enforces the Fair Housing Act (FHA), which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
Discrimination based on race, sex, religion, national origin, disability, and other protected classes is unlawful under several federal laws, in addition to the FHA, and may result in criminal or civil liability. Discrimination can arise in many different contexts in addition to housing, including education, employment, health and safety, and places of public accommodation.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected]. Individuals who believe they may have been victims of discrimination may also contact the United States Attorney’s Office for the District of North Dakota by calling Assistant United States Attorneys Tara Vavrosky Iversen or Melissa H. Burkland at 701-297-7400. Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
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United Blood Nation Gang Member Gets 10 Years in Federal Prison After Shooting a Raleigh Resident in the NeckRead the Press Release
RALEIGH, N.C. – A Raleigh United Blood Nation gang member was sentenced today to 120 months in prison for illegally possessing a firearm and shooting a victim.
According to court documents, Destin Devaunta Wilson, 24, was named in a one-count Indictment filed in the Eastern District of North Carolina on July 18, 2019. The Indictment charged Possession of a Firearm by a Convicted Felon on February 18, 2019. On December 4, 2019, the defendant pled guilty to the Indictment.
U.S. Attorney Higdon stated, “This shooting is but another example of the violence and danger that this defendant and the members of the United Blood Nation bring to communities all across the Eastern District. My office is laser focused on breaking the UBN and ending their reign of fear and terror.”
On February 18, 2019, officers with the Raleigh Police Department (RPD), responded to a shooting at 567 Dacian Road in Raleigh. During the investigation, officers interviewed witnesses who reported that an argument ensued between Wilson and two other individuals at the aforementioned residence. As the argument escalated, Wilson pulled out a gun, pointed it at the male with whom he was arguing, and shot him in the neck. Wilson fled from the shooting scene, but was spotted in downtown Raleigh later that evening. Officers arrested WILSON, who was in possession of a .40 caliber pistol and 6 rounds of .40 caliber ammunition.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00281-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Brown Announces Departure from OfficeRead the Press Release
SHERMAN, TX - The United States Attorney’s Office for the Eastern District of Texas announced today the resignation of United States Attorney Joseph D. Brown, effective May 31, 2020.
“It has been the honor of a lifetime to serve as United States Attorney and to work with some of the finest prosecutors and support staff in the country. I am very proud of our accomplishments,” said Brown.
Under Brown’s leadership, the Eastern District played a major national role in carrying out President Trump’s “Initiative to Stop Opioid Abuse” by focusing prosecution resources on the illegal prescribing and dispensing drugs by doctors and pharmacies and cracking down on the international and domestic drug supply chains that have devastated communities, both urban and rural, throughout the United States.
In 2018, the Eastern District of Texas led the nation in the extradition of defendants out of Colombia for drug related crimes. “Our efforts to stop the deadly supply of drugs before they reached U.S. soil also extended into Mexico and other parts of South America,” said Brown. In 2019, Brown’s office led the state of Texas and was fourth in the nation in the number of high-level, sophisticated organized crime cases indicted pursuant to the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) program. By 2020, the number of criminal defendants prosecuted in the Eastern District increased 24% from levels of just two years before, with a 40% increase in violent crime prosecutions and a 100% increase in the number of illegal immigration prosecutions.
Additional drug enforcement efforts included the prosecution of numerous “pill mill” physicians involved in the illegal distribution of opioid prescriptions. Brown successfully prosecuted Dr. Howard Diamond of Sherman for illegally distributing opioids, securing a 20-year prison sentence in 2018.
“We must win the fight against opioid abuse in order to save our country. But in order to be effective, we must be willing to prosecute all facets of the expansive network that feeds these destructive drugs into our communities. Players both big and small must meet equal justice under the law,” said Brown.
Brown secured a Project Safe Neighborhood grant of $100,000 for the Paris Police Department, stood up Violent Crime Task Forces in the Sherman and Beaumont divisions of the District and created an Appellate Section within the United States Attorney’s Office.
Brown’s tenure as United States Attorney also included increased disaster preparedness trainings for law enforcement, public corruption prosecutions, and strengthening relations between, local, state, and federal law enforcement through the Eastern District.
Brown will be pursuing opportunities in the private and public sectors. “I’m excited about the next chapter,” said Brown. There are many exciting opportunities on the horizon and some of those will become apparent in the coming days.”
Brown, 50, was appointed by President Trump to the position of United States Attorney in 2018. He had previously served as Grayson County District Attorney.
“I want to thank President Trump for allowing me the honor of serving as United States Attorney,” said Brown. “The President has led important efforts to fight crime and keep us safe, and I fully support those pro-law enforcement measures. I also want to express my deep gratitude to Senators John Cornyn and Ted Cruz for their support.”
Brown currently resides in Grayson County with his wife Megan and their two daughters.
Two CBL/BFL Members Sentenced for Racketeering Conspiracy and Selling Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shameris Washington, a/k/a GB, and Larry Watkins III, who were convicted of racketeering conspiracy and possession with intent to distribute crack cocaine, were sentenced to serve 135 months and 54 months in prison respectively by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the defendants were members of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operated primarily in the City of Buffalo at the Towne Gardens Housing Complex. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
On two dates in 2015, defendant Washington was in a vehicle that shot at rival gang members, attempting to kill them. Also in 2015, Washington made at least ten sales of crack cocaine and 20 heroin sales. Thereafter, on January 1, 2017, during a New Year’s Party in an apartment at the Towne Gardens, Washington and others punched and kicked an individual and trapped him in an apartment.
In January 2014, defendant Watkins was observed by Buffalo Police Officers throwing a firearm over the fence of a house on Stanton Street. Officers recovered a loaded 38 special revolver and ammunition. On two occasions during the course of the investigation, investigators recovered bags of cocaine and marijuana at residences frequented by Watkins, and in April 2018, Buffalo Police Officers stopped the defendant’s vehicle and located a bag of crack cocaine and a bag of marijuana.
The sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department under the direction of Chief Mark Packard; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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Third Man Arrested with Illegally Possessing Firearms in Hospital Ground Area of St. ThomasRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that fugitive Nijohntea Walker was arrested Friday afternoon by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives. A complaint was previously filed against Walker on April 30, 2020 for Possession of a Firearm within a school zone and Unauthorized Possession of a Firearm within the Territory of the Virgin Islands. Walker remained at large until Friday, May 22, 2020.
According to the affidavit filed in this case, on April 8, 2020 a video from a home surveillance camera located in the Hospital Grounds area of St. Thomas captured Walker climbing over a railing and onto a patio in view of the camera recording the video. Walker was in possession of a pistol which he proceeded to hide at the residence and returned later to retrieve it. The Memorial Moravian Elementary School is located within 1000 feet of the residence where the video surveillance was recorded. Walker does not have a license to carry firearms within the Territory of the Virgin Islands.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorneys Kyle Payne, Juan Albino, and Everard Potter.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
State and Federal Officials Urge Mainers to Report Unemployment FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank, Maine Attorney General Aaron Frey and Maine Commissioner of Labor Laura Fortman warned that scammers are taking advantage of pandemic unemployment assistance programs to file fraudulent claims by using the personal information of other people, including Maine residents. They urged Mainers to notify the Maine Department of Labor if they believe that someone has used their identity to fraudulently apply for or obtain unemployment benefits. The online complaint form is at https://www.maine.gov/unemployment/idtheft/
The U.S. Attorney’s Office, Maine Department of Labor, Maine Attorney General’s Office, Maine State Police, Maine State Treasurer, U.S. Department of Labor Office of Inspector General, U.S. Secret Service, Social Security Administration Office of Inspector General, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the FBI are working together to investigate and stop the fraudulent unemployment claims. In Maine, the U.S. Secret Service and U.S. Department of Labor Office of Inspector General are spearheading the federal investigative effort.
“Although perhaps not surprising, it is outrageous that criminals are capitalizing on the current emergency to file fraudulent unemployment claims using stolen identity information,” said U.S. Attorney Frank. “The U.S. Attorney’s Office is working closely with our state and federal partners to identify and halt this criminal behavior, and to bring to justice those who commit it. We ask anyone who believes they have been the victim of unemployment fraud to report it immediately.”
Maine Attorney General Frey added, “We will work with the Department of Labor to stop public funds from being released due to fraud, and we will coordinate with the U.S. Attorney’s Office on the prosecution of those individuals who apply for or obtain public funds using stolen identities.”
“The U.S. Department of Labor Office of Inspector General is committed to ensuring the integrity of the unemployment insurance program. The CARES Act provides enhanced unemployment benefits during these unprecedented times. The Office of Inspector General will work closely with the U.S. Department of Justice, Maine Department of Labor, and our federal, state, and local law enforcement partners to vigorously pursue those who seek to exploit the unemployment benefits our nation is providing to our fellow citizens in their time of need,” stated Michael Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General.
With the unprecedented increase in unemployment insurance claims over the past two months due to COVID-19, many states, including Maine, are seeing an increase in reports of identity theft in applications for unemployment benefits. Victims often discover that their personal information has been stolen only when they file an application for benefits and learn that claims have already been submitted using their name and personal information.
“The Maine Department of Labor takes its responsibility to uphold the integrity of the unemployment program very seriously,” Commissioner Laura Fortman said. “MDOL will continue to work with our federal and state law enforcement partners to investigate and prevent fraud, while paying benefits to eligible Maine workers as quickly as possible.”
In addition to creating a state-federal task force to detect and prevent fraud, MDOL has taken the following additional steps:
• Coordinating with financial institutions to identify suspicious accounts;
• Reviewing system changes needed to increase fraud detection; and
• Blocking web addresses linked to fraud here in Maine and in other states.
If you believe that someone else has used your information to file a fraudulent unemployment application, please notify the Maine Department of Labor immediately at https://www.maine.gov/unemployment/idtheft/. Suspected fraud can also be reported to the National Center for Disaster Fraud Hotline at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form or (866) 720-5721.
If you think someone is using your personal information to open accounts, file taxes or make purchases, visit https://www.identitytheft.gov to report and recover from identity theft. Additional identity theft resources can be found at https://www.maine.gov/ag/privacy/identity_theft.shtml or https://www.ftc.gov/faq/consumer-protection/report-identity-theft.
St. Louis Carjacker Sentenced to 186 Months in Prison for Six CarjackingsRead the Press Release
St. Louis, Missouri – Deandre Moore, 26, of St. Louis, was sentenced to 186 months in prison for six armed carjackings. Moore appeared today before U.S. District Judge Rodney W. Sippel.
According to court documents, Moore and co-defendant Deron Mitchell committed six carjackings – one on September 6, 2018; two on November 4, 2018; and three on November 5, 2018. Both were caught with firearms while occupying a stolen car which contained personal property taken in other carjackings. Moore and Mitchell were arrested on November 6, 2018, and confessed to the carjackings.
Moore pleaded guilty in February to six counts of carjacking and two counts of brandishing a firearm in furtherance of a crime of violence. Co-defendant Mitchell, who was 17 years of age at the time of the carjackings, pleaded guilty in February to six counts of carjacking and two counts of brandishing a firearm in furtherance of a crime of violence. His sentencing date is pending.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, St. Louis Metropolitan Police Department and the Maplewood Police Department investigated this case. Assistant United States Attorney Paul D’Agrosa handled this case for the United States Attorney’s Office.
Springfield Woman Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, woman pleaded guilty in federal court today to her role in a conspiracy that distributed at least 4.5 kilograms of pure methamphetamine in Laclede County, Missouri.
Deidra C. Mathews, 44, pleaded guilty before U.S. District Judge M. Douglas Harpool to participating in a conspiracy to distribute methamphetamine in Laclede County from Nov. 28, 2018, to May 21, 2019. She remains in federal custody pending a sentencing hearing.
By pleading guilty today, Mathews admitted she distributed approximately nine pounds of methamphetamine between February and April 2019. She received one pound of methamphetamine each week from a co-conspirator, for which she paid $4,500. The overall conspiracy involved the distribution of at least 4.5 kilograms of pure methamphetamine.
Mathews was arrested on April 22, 2019, when a Laclede County sheriff’s deputy stopped a vehicle in which she was a passenger. Co-defendant Rondell D. Hodges, 36, of Lebanon, Missouri, was driving a Chevrolet Malibu with expired license plates on Highway OO near Lebanon. Hodges was unable to produce proof of insurance or a driver’s license. Both Mathews and Hodges had warrants for their arrest. Mathews attempted to run from the deputy, but was apprehended after a short foot chase. Deputies found multiple bags of methamphetamine, totaling 501.46 grams, that had been thrown from the vehicle.
Hodges has also pleaded guilty and awaits sentencing.
Under federal statutes, Mathews and Hodges each are 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. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Jessica R. Keller and Assistant U.S. Attorney Byron Black. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Lake Area Narcotics Enforcement Group, the Laclede County, Mo., Sheriff’s Department, and the Lebanon, Mo., Police Department.
Springfield Man Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man pleaded guilty in federal court today to his role in a conspiracy that distributed at least 15 kilograms of methamphetamine in a three-county area.
Jason L. Thomas, 42, pleaded guilty before U.S. District Judge M. Douglas Harpool to participating in a conspiracy to distribute methamphetamine.
By pleading guilty today, Thomas admitted that he participated in a conspiracy to distribute methamphetamine in Cass, Greene, and Miller counties from May 14, 2017, to June 20, 2018. Thomas received methamphetamine to distribute from co-conspirator Christina E. Gauger, 39, of Springfield.
According to today’s plea agreement, Gauger was obtaining at least one pound of methamphetamine for distribution every week of the conspiracy. Investigators seized approximately 2.5 kilograms of methamphetamine during the investigation.
Thomas is the fifth defendant to plead guilty in this case. Gauger, Robin L. Self, 37, and Jordan H. Williamson, 31, both of Springfield, have pleaded guilty and await sentencing. Jacob B. Piatchek, 26, of Springfield, pleaded guilty and was sentenced to four years in federal prison without parole.
Under federal statutes, Thomas 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 Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Byron Black. It was investigated by the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Cass County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
San Antonio Man Sentenced to Federal Prison on Child Pornography ChargesRead the Press Release
In San Antonio today, a federal judge sentenced 43-year-old Jason Lee Sarabia to 285 months in federal prison for receiving and possessing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, U.S. District Judge Royce C. Lamberth ordered that Sarabia be placed on supervised release for a period of 20 years after completing his prison term.
On February 26, 2020, jurors convicted Sarabia on two counts of receipt of child pornography and two counts of possession of child pornography.
Evidence presented at trial revealed that the FBI downloaded thousands of child pornography files from Sarabia between August and November of 2017. On November 30, 2017, FBI agents executed a search warrant at the defendant’s residence and seized two cell phones. A forensic search of the seized phones revealed a file sharing application and the presence of more than 1,000 images depicting prepubescent minors engaged in sexually explicit activity.
“I am grateful for the incredible work of the San Antonio FBI Child Exploitation and Human Trafficking Task Force on this case. People who acquire and distribute child pornography create the incentive for others to abuse children in horrific ways. We will prosecute them aggressively,” stated U.S. Attorney Bash.
“While life has changed a great deal for all of us during the past several weeks, one disturbing and horrifying constant is that children in our community, and around the world, continue to suffer every day at the hands of sexual predators. The FBI’s San Antonio Child Exploitation & Human Trafficking Task Force is committed to protecting children from sexual exploitation by holding both producers and consumers of child pornography accountable,” stated FBI Special Agent in Charge Combs. “I am extremely proud of the Task Force and the FBI’s Computer Analysis Recovery Team, which overcame extraordinary investigative challenges to recover critical evidence in this investigation. Their hard work and dedication not only resulted in a successful prosecution, but the identification of additional victims.”
Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
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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.
Safety Manager of Charter Bus Company Sentenced for Bribing Federal Safety InspectorRead the Press Release
BOSTON – The safety manager of a charter bus company operating in Massachusetts was sentenced today for bribing a federal safety investigator in order to influence the safety review of the passenger buses.
Yat Kuen Chan, a/k/a “Andy,” 41, of Quincy, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to two years of probation with the first eight months to be served in home detention. In October 2019, Chan and co-defendant Le Wen Wu pleaded guilty to one count conspiracy to pay an unlawful gratuity and to bribe a public official, one count of unlawful gratuities to a public official and one count of bribery of a public official. Chan was charged in September 2018. Wu is scheduled to be sentenced on Sept. 14, 2020.
L&W Travel Inc. was a passenger bus charter company purportedly located on Cambridge Street in Boston. Chan acted as the safety manager and Wu was the owner, president, treasurer, secretary, vice president and director of L&W. In January 2018, L&W applied to register as a charter bus company with the Federal Motor Carrier Safety Administration (FMCSA), which establishes and enforces safe operating requirements for motor carriers, including mandatory safety audits within the first year of operation.
On multiple occasions in July and August 2018, during a safety audit of L&W, Chan and Wu gave a total of $2,800 in cash to an FMCSA safety investigator to influence the investigator’s compliance review and safety audit of L&W. For example, on Aug. 1, 2018 Chan gave the investigator $600 so that the investigator would not place an L&W bus immediately out of service based on two significant safety violations – inadequate brakes and a defective emergency exit door – but rather, would allow L&W to fix the brakes in Massachusetts and drive the bus to New Jersey for repair of the door.
United States Attorney Andrew E. Lelling; Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Kristina Barclay of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
Roanoke Rapids Man Sentenced for Illegal Gun PossessionRead the Press Release
RALEIGH, N.C. – A Roanoke Rapids man was sentenced today to 41 months in prison for being a felon in possession of a firearm.
According to court documents, Tishawn Jermaine Edwards, 31, was caught with a firearm after leading police on a dangerous high-speed chase in Roanoke Rapids. Edwards has multiple prior felony convictions.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Roanoke Rapids Police Department investigated the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:18-CR-41-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Registered Sex Offender Indicted for Federal Child Exploitation OffensesRead the Press Release
Memphis, TN – A federal grand jury has indicted a registered sex offender, Rodney Allen Patterson, 54, for new federal child exploitation charges. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.
According to information presented in court, Patterson has lived in both Benton and Carroll Counties in West Tennessee. The indictment alleges that in February 2020, Patterson was found to be in possession of a cell phone that contained images and videos of child pornography. Further investigation resulted in identification of the children depicted, and Patterson's role in producing the images and videos, which were made between December 2019 and February 2020. The children were all under twelve years of age, and at least one was younger than ten.
Patterson was indicted for multiple counts of Production and Possession of Child Pornography, for which the mandatory minimum sentence for each count is 15 years, and up to 30 years in federal prison. Because Patterson was required to register as a sex offender due to a prior state conviction at the time the images were produced, he also faces a ten-year sentence consecutive to any sentence imposed on the underlying charges. Patterson is also facing state criminal charges in Benton County.
Benton County Sheriff Ken Christopher said that investigating crimes against children is a top priority for his Department, and urged that anyone who knows about crimes of this nature should come forward and report because "the safety and welfare of our children is our duty and obligation, in partnership with the citizens of Benton County." Pursuant to Tennessee State law, any person who has knowledge of any sexual abuse against a minor child has a mandatory statutory duty to immediately report the same to law enforcement or the Tennessee Department of Children’s Services. https://www.tn.gov/dcs/program-areas/child-safety/reporting/hotline-faq.html.
FBI Memphis - Jackson Resident Agency and the Benton County Sheriff's Department continue to investigate, and search for any other children who may have been victimized. Please contact Benton County Sheriff Ken Christopher at 731-584-4633 or the FBI at 901-747-4300 to make a report.
U.S. Attorney D. Michael Dunavant said: "The U.S. Attorney’s office and our law enforcement partners are still open, and remain proactive and vigilant in our investigations. Let this indictment serve notice to those who exploit, abuse, and victimize minor children: You cannot hide, we will track you down, and you will be held accountable for such disturbing and predatory criminal conduct."
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit https://www.justice.gov/psc.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Debra K. Ireland is prosecuting this case on behalf of the government.
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Recidivist Drug Trafficker Arrested in South Burlington, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Marcus Watkins, 35, of Hinesburg, Vermont, was arrested yesterday and charged with possession with intent to distribute cocaine base, a Schedule II controlled substance. Watkins appeared today by telephone before the Honorable John M. Conroy, United States Magistrate Judge, and was ordered detained pending trial.
According to court records, the Burlington Police Department learned that defendant Watkins was potentially in possession of controlled substances. Burlington Police coordinated with the Drug Enforcement Administration and the Colchester Police Department to conduct a traffic stop of Watkins’ vehicle for a motor vehicle violation in South Burlington. A search of the vehicle revealed a corner of a small plastic bag containing suspected cocaine base, and two Ziploc bags containing suspected marijuana. When advised that he would be arrested for possession of cocaine, Watkins stated he would not go back to jail, and attempted to walk away from the officers. When the officers attempted to arrest him, Watkins resisted. A search of Watkins incident to arrest resulted in the seizure of approximately $8,610 from the left front pocket of Watkins’ pants. When Watkins exited the police cruiser at the Burlington Police Department, another knotted corner of a plastic bag fell from his person onto the floor. Watkins reacted by trying to step on the bag and grind it into the floor. Officers then looked into the rear of the police cruiser, and noted numerous knotted bag corners on the seat and floor of the police cruiser where Watkins had been seated. Some of the baggies had been ripped open, leaving loose pieces of cocaine base scattered around the back seat of the vehicle. Additional cocaine base was recovered from Watkins’ underwear at the Burlington Police Department. After booking, Watkins was transported to the Northwest Correctional Facility for lodging. During an entry search, corrections officers discovered Watkins possessed an additional quantity of cocaine base. In total, Watkins possessed approximately 12 grams of cocaine base.
Watkins has a lengthy criminal record that includes four prior felony drug convictions. Watkins was last released from the Federal Bureau of Prisons on September 12, 2019, after having served a 36-month sentence for possession with intent to distribute heroin. At the time of his most recent arrest, Watkins was serving a term of federal supervised release.
If convicted, Watkins faces a maximum of twenty years of imprisonment. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaint are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina E. Nolan commended the investigative efforts of the Burlington Police Department, the Colchester Police Department, and the Drug Enforcement Administration.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Defendant Watkins is represented by the Office of the Federal Public Defender.
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
Philadelphia Man Sentenced to 33 Months in Prison for Role in Drug ConspiracyRead the Press Release
TRENTON, N.J. – A Philadelphia man was sentenced today to 33 months in prison for his role in a drug distribution conspiracy connected to the seizure of fentanyl and heroin at a New Jersey rest stop last year, U.S. Attorney Craig Carpenito announced.
Denny Diaz, 30, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute fentanyl and heroin. Judge Sheridan imposed the sentence today.
According to the documents filed in the case and statements made in court:
Diaz’s co-defendant, Luis Aponte, 49, of Riverside, California, drove a tractor-trailer truck to a rest stop in Bloomsbury, New Jersey, on March 1, 2019. The next day, he met Diaz in a car and gave Diaz approximately six kilograms of fentanyl. Both men were arrested shortly thereafter. Law enforcement officers searched Aponte’s truck at the rest stop and found an additional two kilograms of fentanyl and 11 kilograms of heroin inside.
In addition to the prison term, Judge Sheridan sentenced Diaz to three years of supervised release. Aponte previously pleaded guilty to his role in the conspiracy. He is scheduled to be sentenced July 6, 2020.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan, New York Division; New York City Police Commissioner Dermot F. Shea; and New York State Police Superintendent Keith M. Corlett with the investigation leading to today’s sentencing. This case is being investigated by the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department and New York State Police.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.