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Wednesday 11 March 2020
Former FEMA Employee Pleads Guilty to FelonyRead the Press Release
SAN JUAN, P.R. – Jovanda R. Paterson, a.k.a. “Jo/Jojo,” a former FEMA Emergency Management Specialist pleaded guilty pursuant to a Plea Agreement before United States District Court Judge Francisco A. Besosa to a felony violation of Title 18, United States Code, Section 208(a), announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Department of Homeland Security (DHS), Office of Inspector General (OIG), conducted the investigation with support from the Federal Bureau of Investigation.
Following the passage of Hurricane María in September 2017, Patterson was assigned to assist with FEMA restoration efforts in Puerto Rico. While employed by FEMA, Patterson negotiated prospective employment with Cobra Acquisitions LLC (Cobra) and its affiliates, which were engaged in restoration efforts on the Puerto Rico electric power grid. While negotiating prospective employment with Cobra, Patterson participated as a FEMA employee in a May 8, 2018 Past Performance Evaluation for Cobra Logistics LLC as a part of a vendor bid process. Patterson later accepted employment with a Cobra affiliate in June 2018.
Pursuant to the terms of the Plea Agreement, Patterson admitted that while she was negotiating employment with COBRA and its affiliates from March to July 2018, Patterson participated as a FEMA employee in a May 8, 2018 Past Performance Evaluation for Cobra Logistics LLC as a part of a vendor bid process. The defendant willfully engaged in conduct and participated personally and substantially as a Government employee through recommendation and the rendering of advice in a proceeding in which she knew COBRA and its affiliates Cobra Energy LLC and Cobra Logistics Holding LLC had a financial interest, and that at that time, she was negotiating and had an arrangement concerning prospective employment with COBRA and its affiliates.
Patterson was charged in a 15-count indictment along with defendants Ahsha Nateef Tribble - Federal Emergency Management Agency (FEMA), Region II, Deputy Regional Administrator, assigned to work in Puerto Rico as part of FEMA’s response to Hurricane María; and Donald Keith Ellison - President of Cobra Acquisitions, LLC until June 2019. The indictment alleges that Tribble and Ellison engaged in a bribery conspiracy, honest services fraud scheme, and major disaster fraud scheme in relation to the electric power grid restoration efforts in Puerto Rico following Hurricane María. Trial as to Tribble and Ellison is scheduled for January 2021.
The case is being prosecuted by Assistant United States Attorney Myriam Y. Fernández-González and Assistant United States Attorney Seth A. Erbe. Patterson may be sentenced to a term of imprisonment not to exceed five (5) years, a fine not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00), and not more than three (3) years of supervised release. The sentencing hearing is scheduled for June 11, 2020.
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Former Air Force Academy Cadet Sentenced to Federal Prison for Raping Fellow CadetRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Alvaro Pablo Velarde, age 20, of Lima, Peru, was sentenced to five years in prison for two counts of aggravated sexual abuse and one count of abusive sexual contact for raping a fellow cadet at the U.S. Air Force Academy. U.S. District Court Judge Christine M. Arguello announced the sentence yesterday afternoon to a full courtroom, which included the victim. The defendant was in custody before the hearing and was remanded at the conclusion.
According to court documents and facts presented by prosecutors at trial, Velarde raped a female cadet in her dorm room at the Air Force Academy in Colorado Springs on October 23, 2018. During the attack, he ignored multiple pleas from the victim to stop. Afterward, the victim experienced severe pain and sought medical attention. A sexual assault examination revealed physical injuries sustained during the rape, and a doctor at the Air Force Academy later diagnosed her with a concussion.
Velarde was disenrolled from the Air Force Academy before the trial. The victim still attends the Air Force Academy.
“Our service members deserve every protection our country can provide,” said U.S. Attorney Jason Dunn. “In this instance, one of our own was violently raped by a cadet who was a guest from a foreign country. This violent assault has done tremendous damage – both to the victim, as well as to the Air Force Academy itself. I am proud that our prosecutors ensured this criminal was brought to justice. I am also proud of the victim, who bravely stepped forward and made sure her story was told. We owe her a debt of gratitude for what she has done for justice, as well as for the service she will provide in defense of our nation.”
This case was investigated by the Air Force Office of Special Investigations. This matter was handled by Assistant U.S. Attorneys Peter McNeilly and Emily Treaster.
Case No. 18-cr-00525
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Florida Doctor Pleads Guilty to False Statement Relating to Prescribing OpioidsRead the Press Release
Tampa, Florida – Richard De La Cruz (55, Jacksonville) has pleaded guilty to making false statements relating to health care matters in connection with writing opioid prescriptions. De La Cruz faces a maximum penalty of five years in federal prison.
According to the plea agreement, De La Cruz was a Florida-licensed physician who worked for MD2U, a now-shuttered, Kentucky-based company that provided a network of in-home primary care for patients. MD2U commonly used nurse practitioners, instead of physicians, to conduct in-person examinations and evaluations of patients in the Tampa Bay area, including those who were prescribed opioids.
In mid-2014, the Florida Board of Medicine (“FBOM”) determined that De La Cruz and MD2U’s practice of prescribing controlled substances without an in-person evaluation by a physician violated Florida medical standards and regulations. Contrary to the FBOM ruling, De La Cruz continued to write opiate prescriptions to MD2U patients without personally meeting with and evaluating the patients. De La Cruz concealed this in claims later submitted to Medicare for payment of the opiate prescriptions.
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Middle District of Florida Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to focus on opioid-related health care fraud, using data to identify and prosecute individuals who contribute to the prescription opioid epidemic. It is being prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Greg Pizzo.
Federal Jury Convicts San Diego Man for 2017 Armed Robbery SpreeRead the Press Release
NEWS RELEASE SUMMARY – March 11, 2020
SAN DIEGO – Today, a federal jury found Juan Marquis Holiday, a San Diego resident, guilty of robbing and attempting to rob ten local businesses by displaying a firearm during the robberies and, on five occasions, discharging a firearm. The jury returned their verdict after hearing the testimony of 37 witnesses, including the individuals who were in those businesses at the time of the robberies and attempted robberies.
“When someone uses a firearm and repeatedly terrorizes community members, bringing that person to justice is a top priority,” said U.S. Attorney Robert Brewer. “We are gratified to have secured a conviction that not only holds the defendant accountable for his violent crimes, but brings a measure of greater security to our communities. I’d like to thank Assistant U.S. Attorneys Shital Thakkar and Matthew Brehm and our law enforcement partners for their outstanding work on this case.”
During trial before District Judge Anthony J. Battaglia, dozens of witnesses explained to the jury various aspects of the defendant’s crime spree. Those witnesses included: victims from the local businesses, first responders, evidence technicians, DNA and ballistics experts from the San Diego Police Department and the San Diego Sherriff’s Department, and other federal agents. More than twelve victims described being threatened with a firearm during the robberies, which occurred in January and April of 2017. Some of those victims also described how the defendant fired shots past their heads, and physically assaulted them, including with the use of his pistol.
Holiday’s co-defendant, Don Wayne Jones III, pled guilty in 2018 and was sentenced to 30 years and 1 day in custody.
“The FBI has federal jurisdiction under the Hobbs Act to investigate violent criminal acts affecting interstate commerce,” said Omer Meisel, Acting Special Agent-in-Charge for the San Diego Division of the FBI. “In this case, our Agents worked closely with our local partners at the San Diego Police Department and San Diego Sheriff’s Department to bring justice for the victims of this violent crime and bring safety to our community.”
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, labor trafficking and alien smuggling. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Case Number 17cr1370-AJB
Juan Marquis Holiday Age: 27 San Diego, CA
SUMMARY OF CHARGES
Interference with Commerce by Threats or Violence – Title 18, U.S.C., Section 1951(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Attempted Interference with Commerce by Threats or Violence – Title 18, U.S.C., Section 1951(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Brandishing a Firearm During and in Relation to a Crime of Violence –
Title 18, U.S.C., Section 924(c)
Maximum penalty: life imprisonment; a mandatory minimum seven years in prison; and $250,000 fine
Discharging a Firearm During and in Relation to a Crime of Violence –
Title 18, U.S.C., Section 924(c)
Maximum penalty: life imprisonment; a mandatory minimum ten years in prison; and $250,000 fine
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego Sherriff’s Department
La Mesa Police Department
VICTIM BUSINESSES
Robbery No.
Date
Victim
Address
1
1/5/2017
Arco Gas Station
3724 Del Sol Blvd, San Diego, CA
2
1/11/2017
Parry Liquor
4707 Federal Blvd., San Diego, CA
3
1/11/2017
Par Liquor
5055 Federal Blvd., San Diego, CA
4
1/11/2017
Greene Cat Liquor
5102 Imperial Avenue, San Diego, CA
5
4/6/2017
Market at the Ranch
10299 Scripps Trail, San Diego, CA
6
4/19/2017
7-Eleven
9365 Jamacha Blvd., Spring Valley, CA
7
4/20/2017
Eastridge Liquor
7705 University Ave. La Mesa, CA
8
4/20/2017
Apollo Market
2327 Reo Drive, San Diego, CA
9
4/20/2017
G&M Market
8903 Jamacha Rd., Spring Valley, CA
10
4/22/2017
Victoria’s Mexican Grill
1912 Coronado Ave., San Diego, CA
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal Court Permanently Shuts Down Ohio Tax Return PreparerRead the Press Release
A federal court permanently enjoined Mary E. Shade, d/b/a MS Tax, of Piqua, Ohio, from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. Mary E. Shade consented to the relief.
The complaint against Shade, which was filed in the U.S. District Court for the Southern District of Ohio, alleges that Shade routinely understates her customers’ tax liabilities by fabricating itemized deductions, creating false Schedules C with inflated or fraudulent business losses, and reporting false credits in order to offset their income to generate tax refunds. For example, the government alleges that Shade prepared a return on which she falsely reported that a customer made gifts to charity in the amount of $14,964. The complaint alleges that, over the course of the years 2012 through 2019, Shade filed over 5,500 tax returns, and that by repeatedly understating her customers’ tax liabilities, Shade has caused the United States to lose substantial tax revenue.
“Fraudulent tax return preparers abuse our nation’s tax laws and take advantage of those customers who pay them to file a correct tax return,” said Richard Zuckerman, Principal Deputy Assistant Attorney General for the Tax Division. “We are committed to working with our IRS partners to root out these perpetrators.”
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
FCI Gilmer inmate admits to drug possessionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stephen Robinson, incarcerated at Federal Correction Institution Gilmer, has admitted to trying to get a controlled substance, U.S. Attorney Bill Powell announced.
Robinson, age 49, pled guilty today to a one-count information, charging him with “Attempt to Obtain a Prohibited Object (Narcotic).” Robinson admitted to trying to get suboxone while incarcerated in October 2018 in Gilmer County.
Robinson was sentenced to 12 months incarceration, to be served after his current sentence.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Federal Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.Ex-CEO of Irvine Financial Services Firm Sentenced to over 10 Years in Prison for Stealing $3.5 Million from Mostly Elderly InvestorsRead the Press Release
LOS ANGELES – The former CEO of an Irvine-based financial services and insurance company has been sentenced to 121 months in federal prison for defrauding elderly victims who thought their money was being invested in a certificate of deposit at a major bank – but, instead, was actually used to fund his lavish lifestyle.
Mehmet Fatih Biyikoglu, a.k.a. “John B.,” 53, of Palm Desert, was sentenced late Tuesday afternoon by United States District Judge R. Gary Klausner, who also ordered him to pay $3,561,300 in restitution.
Biyikoglu, who pleaded guilty in July 2019 to one count of wire fraud, was the co-founder and chief executive officer of Five Star Financial Services of America. From 2014 through 2016, he solicited more than $4 million from investors, many of whom were elderly, retired or financially unsophisticated. Biyikoglu falsely told investors that their money would be placed in a Chase Bank certificate of deposit (CD), where it would earn 9 to 13 percent interest with little risk to the investors’ principle.
In reality, the Chase Bank CD did not exist and Biyikoglu stole the investors’ money. Biyikoglu used the pilfered funds to finance his own lavish lifestyle, including the purchase of a Rolls Royce and other luxury automobiles. By comparison, Five Star investors lost nearly everything, including one 70-year-old victim who lost nearly all of his $1.6 million investment.
To cover up his scheme, Biyikoglu created fraudulent account statements – which included the Chase Bank logo – to deceive investors into believing their money was held in a segregated account at Chase Bank and was earning interest as promised.
During the course of the scheme, 11 investors transferred just over $4 million into Five Star. These victims suffered losses of approximately $3.45 million. Another victim lost just over $100,000 to Biyikoglu.
“Biyikoglu’s conduct is reprehensible,” prosecutors wrote in their sentencing memorandum. “He targeted elderly and retired investors who would be seeking a safe vehicle for their retirement savings, knowing full well that those victims depended on those assets to support themselves during their remaining years. He has left many of his victims with nothing, forcing them to live on fixed incomes.”
In January 2019, eight months after his arrest in this case and while he was free on bond, Biyikoglu removed his location-monitoring ankle bracelet and attempted to flee to Mexico. He was arrested at the U.S.-Mexico border, carrying $1,300 in cash, 8,700 pesos and a significant amount of luggage.
Two co-conspirators charged in this case have pleaded guilty and are serving prison sentences imposed last year by U.S. District Judge Andrew J. Guilford. Anna Marie Holt, 60, of Fountain Valley, Five Star’s former president and chief operating officer, is serving a three-year federal prison sentence for conspiracy to commit wire fraud and subscribing to a false tax return.
Ida Shaghoian, 39, of Palm Desert, a sales agent with Five Star and Biyikoglu’s ex-wife, is serving a four-year prison sentence for wire fraud and subscribing to a false tax return. When she pleaded guilty, Shaghoian admitted participating in the Five Star scam, as well as running another fraud scheme that diverted investors’ retirement savings into a risky real estate venture called Island Sea LLC. Shaghoian also admitted that she defrauded an 86-year-old man out of $100,000 after meeting him at a restaurant and later leading him to believe she had become his girlfriend.
This matter was investigated by the FBI and IRS Criminal Investigation. The California Department of Insurance provided substantial assistance.
This case was prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana Branch Office.
Easton-Area Attorney Pleads Guilty to Defrauding Estate Out of Hundreds of Thousands of DollarsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Angelo Perrucci, Jr., of Bangor, PA, has pleaded guilty to five counts of wire fraud before United States District Court Judge Joseph F. Leeson, Jr. The charges arise out of Perrucci’s scheme to defraud the estate of a client and its heirs by taking funds from the estate for his own personal use.
The defendant is an attorney licensed to practice law in New Jersey and Pennsylvania. In 2015, he was contacted by his former neighbor to provide end-of-life legal services for her ill father. Following the father’s death in early 2016, Perrucci filed a motion in court seeking to be appointed as the administrator of the estate. The court granted the motion, and the defendant opened a bank account in the name of the estate. Within two weeks of opening the estate account, Perrucci withdrew more than $36,000 for his own personal use. He continued this fraud for over three years. Between March 2016 and May 2019, Perrucci fraudulently issued more than 80 checks to himself, stealing more than $300,000 and depleting the estate account.
“Attorneys take an oath to act in accordance with the law – not to use it as a way to manipulate innocent and vulnerable people for personal profit and gain,” said U.S. Attorney McSwain. “Perrucci was entrusted with a sensitive and important task – the care of an estate – and he used that trust to commit fraud and steal from the beneficiaries. This is truly despicable behavior that deserves the full condemnation of the legal community and society as a whole. My Office will continue to target and aggressively prosecute predators like this defendant.”
“The Postal Inspection Service has long investigated those among us who use the mail to commit fraud,” said John Walker, the Assistant Inspector in Charge of the Philadelphia Division of the Postal Inspection Service. “This defendant, a lawyer, used his position of trust and authority in an area of the law many of us don’t fully understand and are not in a position to effectively police to steal money from his clients. Thanks to the hard work of the Inspectors in my office and the attorneys of the United States Attorney’s Office, Mr. Perrucci is being held accountable for his deceitful practices.”
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion.
Dubuque Felon Sentenced to More Than Eight Years in Federal PrisonRead the Press Release
A man who illegally possessed a gun while a felon was sentenced today to more than eight years in federal prison.
Devon Norman, age 33, from Dubuque, Iowa, received the prison term after a guilty plea to illegally possessing a firearm as a felon. Statements at sentencing showed that Norman pointed a gun at an individual in a car and threatened to blow that individual’s head off. After making that threat, Norman physically forced his then-girlfriend back into a Dubuque residence while still possessing the gun.
Norman was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Norman was sentenced to 100 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1026-LTS.
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Dominican National Sentenced for False Identity CrimeRead the Press Release
Boston – A Dominican national residing in Boston was sentenced to 15 months in prison in federal court in Boston today after being convicted of false representation of a Social Security number.
Altagracia Baez Guerrero, 27, pleaded guilty last month to false representation of a Social Security number before U.S. District Court Judge Richard G. Stearns who sentenced Baez Guerrero to 15 months in federal prison to be followed by one year of supervised release.
On March 14, 2016, Baez Guerrero falsely represented that a Social Security number was hers in an application for a learner’s permit at the Massachusetts Registry of Motor Vehicles. The victim whose identity was stolen told law enforcement that she had never visited, lived in, or worked in Massachusetts. The victim learned in 2018 that W-2s in her identity were issued for income earned at two different Massachusetts businesses the previous year. Based on information provided by one of the businesses, the victim learned that the imposter had provided a home address in Dorchester, which was the same address that the defendant used when applying for the learner’s permit.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit prosecuted the case.Defendant Sentenced to 87 Months for Assault on a Federal OfficerRead the Press Release
TUCSON, Ariz. – On March 6, 2020, United States District Court Judge James A. Soto sentenced Wilmer Martin Flores, 43, of Honduras, to 87 months in prison. A jury had previously found Flores guilty of Assault on a Federal Officer.
On June 20, 2016, Flores assaulted a United States Bureau of Prisons Corrections Officer during the performance of her official duties. In the process, the victim suffered serious bodily injury. At the time of the assault, Flores was serving a 235-month sentence for Sex Trafficking and Kidnapping.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Nathaniel J. Walters and Jesse Figueroa of the District of Arizona.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cártel Jalisco Nueva GeneraciónRead the Press Release
The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs.
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said DEA Acting Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CNJG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
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.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cártel Jalisco Nueva GeneraciónRead the Press Release
WASHINGTON – The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted in more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs. In the DEA's Chicago Division, which includes Illinois, Wisconsin and Indiana, approximately 50 arrests at the federal and state level have been made against CJNG members and associates pursuant to Project Python enforcement actions.
“With today’s announcement, the Attorney General has made clear the Department’s focus on dismantling transnational criminal organizations,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We will continue to investigate and hold accountable members of drug cartels who seek to traffic narcotics in our communities.”
“DEA classifies the CJNC as one of the five most dangerous criminal organizations in the world,” said Robert J. Bell, DEA Chicago Division Special Agent-in-Charge. “CJNG has used extreme violence, extortion and bribes to steadily expand trafficking networks. CJNG is one of the two most prolific transnational criminal organizations responsible for trafficking huge quantities of illegal drugs to the Chicago Division. Project Python is a coherent effort to focus national efforts on the plague CJNG spreads. DEA will continue aggressively working with its federal, state and local partners to make Illinois, Indiana and Wisconsin inhospitable places for the CJNG.”
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Department of Justice's Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said Acting DEA Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CJNG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cartel Jalisco Nueva GeneracionRead the Press Release
CHARLOTTE, N.C. – The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs.
In 2020, within Western North Carolina, six defendants have been prosecuted to date, in connection with the initiative:
- Jose Velasquez, 35, a Mexican national residing in Charlotte, N.C., has been charged with drug trafficking conspiracy; international money laundering; possession with intent to distribute heroin; possession with intent to distribute methamphetamine; and possession with intent to distribute cocaine.
- Johnny Michael Boone, Jr., 33, of Bessemer City, N.C., has been charged with possession with intent to distribute methamphetamine.
- Jose Rigoberto Rodriquez-Rangel, 21, of Durham, N.C., has pleaded guilty to drug trafficking conspiracy; money laundering conspiracy; and possession with intent to distribute heroin. He is currently awaiting sentencing.
- Jose Dolorez Martinez-Martines, 32, a Mexican national residing in Durham, N.C., has pleaded guilty to drug trafficking conspiracy, money laundering conspiracy; and possession with intent to distribute heroin. He is currently awaiting sentencing.
- Oscar Bello-Lopez, 33, a Mexican national residing in Charlotte, has been sentenced to 188 months in prison and five years of supervised release, for drug trafficking conspiracy; money laundering conspiracy; possession with intent to distribute heroin; possession of a firearm by a felon; illegal reentry by a felon.
- Otequise Lenard Miller, 34, of Concord, N.C., has been sentenced to 240 months in prison and five years of supervised release for drug trafficking conspiracy resulting in death; money laundering conspiracy; distribution and possession with intent to distribute methamphetamine.
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said Acting Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
“This ruthless Mexican cartel has evolved into a powerful drug syndicate that floods urban and rural communities in the Western District and throughout our nation with enormous quantities of powerful narcotics. My office and our law enforcement partners remain committed to bringing members of this drug trafficking organization to justice, and disrupting CJNG’s drug trafficking networks in Western North Carolina,” said U.S. Attorney Andrew Murray.
“This DEA-led multilateral and interagency operation resulted in a well-planned and coordinated assault against CJNG, which is one of the most prolific producers of methamphetamine in the world. CJNG is responsible for an enormous quantity of dangerous drugs destined for the U.S. and much of the violence in Mexico today. This strategic strike against this Mexico-based cartel is just the beginning of an all-out assault against this ruthless organization,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CNJG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
In Western North Carolina, U.S. Attorney Murray thanked the DEA in Charlotte, ICE’s Homeland Security Investigations, the Gastonia Police Department, the Gaston County Police Department, and the Charlotte-Mecklenburg Police Department for their investigation of the cases, which are being prosecuted by Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte.
The cases in Western North Carolina are the result of the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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.
Cedar Grove Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
CHARLESTON, W.Va. – A Cedar Grove man pled guilty to possession of child pornography, announced United States Attorney Mike Stuart. Benjamin Franklin Thomas, 32, pled guilty to one count of possessing child pornography in January 2019.
“Make no mistake, we’re coming after those that sexually exploit children,” said United States Attorney Mike Stuart. “We’ll prosecute them to the fullest extent of the law and seek maximum prison sentences.”
Thomas admitted that that he used his smart phone to search for images of child pornography on the Internet, download the images, and save them to his Google Photos while residing in Cedar Grove in Kanawha County. Images possessed by Thomas included prepubescent minors and images depicting sadistic or masochistic conduct and sexual exploitation of very young children.
Thomas faces up to 20 years in prison when sentenced on June 18, 2020.
The South Charleston Police Department, the Cedar Grove Police Department, the United States Secret Service, and the West Virginia State Police Internet Crimes Against Children Task Force conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Car prowler who preyed on visitors to National Parks sentenced to two years in federal prison to follow state prison termRead the Press Release
Tacoma, Washington – A repeat offender who victimized more than 40 hikers and campers in National Parks across western Washington was sentenced today in U.S. District Court in Tacoma to two years in federal prison to follow a 25 month state prison term. MICHAEL WAYNE PICKERING, 41, of Aberdeen, Washington, prowled at least four dozen cars at more than seven different trailheads and parking lots stretching from Mount Rainier National Park to Third Beach on the Pacific coast, to trailheads in the interior of the Olympic Peninsula’s national park and forest. At the sentencing hearing U.S. District Judge Benjamin H. Settle called the crimes “planned and methodical,” and ordered PICKERING to serve three years of supervised release following prison.
“The victims in this case didn’t just suffer a financial loss, they were emotionally damaged as well,” said U.S. Attorney Brian T. Moran. “Some returned from what was supposed to be a relaxing time in nature, to find themselves stranded with a damaged vehicle, their electronics, clothes and money stolen, marooned in the national forest, with no cell phone service. For some it has forever changed their interest in outdoor activities.”
According to records filed in the case, on March 28, 2019, PICKERING and his girlfriend smashed windows and stole thousands of dollars of equipment from vehicles parked at the Graves Creek Trailhead and Fletcher Canyon Trailhead in Olympic National Park. This was the beginning of a month-long theft spree. PICKERING and his girlfriend used credit and debit cards stolen from the vehicles to make purchases at various stores – the overall financial damage was more than $50,000. PICKERING was only stopped when he was caught shortly after walking out of a store where he used victims’ bank cards, with a window punch (a tool used to break car windows), and three credit cards in a victim’s name in his pocket.
PICKERING did not just take credit and debit cards. He stole expensive electronics, car and house keys, and even diaries, clean clothes, make-up, and toiletries. When law enforcement searched his residence, they found PICKERING had been stockpiling much of the gear he stole or selling it online. He used the stolen debit and credit cards to buy himself luxuries such a flat screen TVs, gaming systems, a drone, and clothes.
Victims wrote to the Court about how the car prowls violated their sense of safety and changed their attitude toward camping. Some of the comments include:
It’s really hard to feel so unsafe in the outdoors, which is where I usually find peace and solace. . .
The crime happened on the last day of a hiking/camping/backpacking trip with friends. I took what otherwise was a great vacation and made it very sour.
We were exhausted and freezing by the time we returned to the trailhead. When we found the truck windows busted out and my luggage stolen it was devastating…We had to drive for nearly an hour with the cold wind and rain coming in through the windows…I have not returned to Washington since this event.
PICKERING has a 15-year history of property crimes in and around Olympic National Park, such as burglary, identity theft, and trespassing.
The case was investigated by rangers from the National Park Service in collaboration with local law enforcement, including Forks Police Department, Mason County Sheriff’s Office, Grays Harbor Sheriff’s Office, and the Washington State Patrol.
The case was prosecuted by Assistant United States Attorney William Dreher.
California Man Sentenced for Possessing Methamphetamine with Intent to DistributeRead the Press Release
TULSA, Okla. –A man who was discovered transporting methamphetamine into Oklahoma in his vehicle’s engine compartment was sentenced Tuesday in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Juan Luis Atayde, 26, of Stockton, California, to 84 months in federal prison for possession of methamphetamine with intent to distribute. Following his release from prison, he will spend four years on supervised release. Atayde pleaded guilty in December 2019.
Atayde admitted that on March 30, 2018, he drove from California to Tulsa with at least 50 grams of methamphetamine concealed in his pickup’s engine area, which he later planned to retrieve and distribute to an individual in Tulsa. Atayde was scheduled to appear in court on June 4, 2018, but instead fled from prosecution. He was later arrested in October 2019 in California on a bench warrant issued by Judge Eagan. At Atayde’s sentencing, the prosecutor noted that the total amount of methamphetamine in the pickup was approximately seven pounds.
“More than a year ago, we brought federal drug trafficking charges against Juan Atayde. Before his trial, he disappeared. But the Drug Enforcement Administration and U.S. Attorney’s Office did not give up,” said U.S. Attorney Trent Shores. “We relentlessly pursued him, found him, and held him accountable in a court of law. Now, he is headed to federal prison.”
The Drug Enforcement Administration and Oklahoma Highway Patrol conducted the investigation. Assistant U.S. Attorneys Joel-lyn A. McCormick and Thomas E. Duncombe prosecuted the case.
Burwell, Nebraska, Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Lyle Rowse, 37, of Burwell, Nebraska, was sentenced today to 55 months in prison by United States District Judge Robert F. Rossiter, Jr. for possession with intent to distribute five grams or more of methamphetamine (actual). There is no parole in the federal system. In addition to his prison term, Rowse will serve four years of supervised release following his release from prison.
On November 4, 2018, Rowse went to the Valley County Jail and dropped off body wash for an inmate. Inside the body wash container was 1.3 grams of methamphetamine. Law enforcement in Burwell went to arrest Rowse for this and located 26 grams of actual methamphetamine in his pocket.
This case was investigated by the Nebraska State Patrol, Valley County Sheriff’s Office, and Burwell Police Department.
Buffalo Man Pleads Guilty to Breaking into A Railroad CarRead 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 Ray Chrostowski, 26, of Buffalo, pleaded guilty before U.S. District Judge John L. Sinatra, Jr., to breaking into and larceny from interstate carrier facilities. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between May and June of 2018, the defendant entered on railroad cars containing interstate shipments of freight in transit on nine separate occasions with co-defendants Paul Krieger and Nicholas Birdwell. Working together, they broke into railcars and removed the property therefrom. On one occasion they broke into a railcar carrying automobiles and removed the tires and rims off of two vehicles. As a result of this conduct, the total loss relating to these vehicles was over $4,718.16. A large quantity of Jefferson bourbon valued at $3,118.80 was stolen.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert and the CSX Police, under the direction of Chief Sean Douris.
Sentencing is scheduled for July 16, 2020, before Judge Sinatra.
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Bothell man charged with money laundering using bitcoinRead the Press Release
Seattle – A Bothell, Washington, man is charged in an eight-count complaint for operating an illegal money exchange business involving bitcoin, announced U.S. Attorney Brian T. Moran. KENNETH WARREN RHULE, 26, made his initial appearance on the criminal complaint in U.S. District Court in Seattle yesterday. RUHLE is charged with conducting an unlicensed money transmitting business, five counts of laundering of monetary instruments, and one count of conspiracy to produce and distribute marijuana.
According to the criminal complaint, RHULE came to the attention of law enforcement in April 2018 as someone operating an unlicensed bitcoin exchange business under the name “Gimacut93.” At various locations–primarily Starbucks coffee shops–in Western Washington, RHULE met repeatedly with undercover agents posing as criminals who needed to launder funds. Through their conversations the undercover agents made it seem they were laundering money related to human trafficking activities. RHULE agreed to exchange bitcoin for cash apparently knowing the cash was the proceeds of criminal activity. In fact, RHULE offered the undercover agents advice on virtual currency and how to hide the source of the funds. RHULE asked the agents no questions as required under the “know your customer” rule.
Even as he was engaged in the operation of the unlicensed financial exchange business, RHULE was operating a marijuana products business that has no license with the State of Washington. The facility, based in Monroe, Washington, manufactures hash oil and other marijuana products using the names HerbinArtisans, Heady.Watr, and KlearKrew. Electronic messages reviewed in the case indicate RHULE was exchanging various marijuana products for cryptocurrency. RHULE claimed that he was manufacturing in the Seattle area but selling some of his product in Florida.
Operating an unlicensed money transmitting business is punishable by up to five years in prison. Laundering monetary instruments is punishable by up to 20 years in prison. Conspiracy to manufacture and distribute the amount of marijuana involved in this case is punishable by a mandatory five years in prison and up to 40 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Marie Dalton.
rhule_complaint.pdfAtlanta man sentenced in multi-state health care fraud conspiracyRead the Press Release
ATLANTA – Matthew Harrell has been sentenced for his role in organizing and managing a health care fraud scheme that stole millions in Medicaid funds in Georgia, Louisiana, and Florida.
“Harrell stole over $2 million dollars from the Medicaid program,” said U.S. Attorney Byung J. “BJay” Pak. “He stole those funds from several states and continued his fraud schemes even after he was released on bond. Our office will continue to prosecute those who believe they can steal from programs designed to help citizens in need.”
“The FBI makes it a priority to work with our federal and state partners to stop people from abusing government funded programs like Medicaid,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Abuse of these programs drives up their cost, hurting every single taxpayer in this country, but most importantly the low-income and elderly citizens who are entitled to the benefits they provide.”
“Harrell’s abhorrent actions are detrimental to the Medicaid program and the vulnerable beneficiaries it serves,” said Derrick Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working closely with State and Federal law enforcement to protect these vital government healthcare programs.”
“This sentence is the result of the dedicated efforts by state and federal investigators and prosecutors from Georgia, Florida, and Louisiana who collaborated to protect the integrity of our government programs and bring down the ringleader of a multi-million dollar fraudulent scheme to steal from the taxpayers,” said Georgia Attorney General Chris Carr. “We’re proud to have worked together to obtain this outcome.”
Florida Attorney General Ashley Moody said, “Exploiting children’s personal information to steal public resources is not only reprehensible, it is illegal. This criminal even directed his employees to conceal his scheme by creating fake documents to support his fraudulent billing—of millions of dollars—to Medicaid. This man will now serve an extended sentence in prison.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Harrell and co-conspirators owned or worked with companies that purportedly provided mental health counseling and treatment to children and adults. These companies included Revive Athletics, Inc., R.A. Florida, Inc., Jode Counseling Treatment and Training Services, LLC, 118 Management and Consulting, Inc. and A Brighter Day, LLC. These companies billed over $3.5 million in Medicaid claims, and received approximately $2.5 million based on fraudulent billing.
According to the indictment, Harrell and co-conspirators fraudulently used the Medicaid provider numbers of mental health service providers, including a psychologist and licensed clinical social workers, located in Georgia and Florida. Harrell’s companies and related entities then used these identities to submit fraudulent Medicaid claims seeking payment for mental health services that were never provided. Harrell and his co-conspirators obtained Medicaid members numbers by stealing them from children’s summer and football camp registrations, from children placed in foster care, and from stolen government a document containing the numbers of 13,000 Louisiana Temporary Assistance for Needy Families (“TANF”) recipients.
Harrell attempted to conceal the fraud scheme by directing employees and contractors to create fraudulent documentation and forge provider signatures to support the fraudulent billing. Harrell initially started the fraudulent billing scheme in Georgia and replicated the scheme in Florida and then Louisiana before his arrest. While on pretrial release in this case, Harrell opened a new company in Louisiana and continued to fraudulently bill Louisiana Medicaid until his bond was revoked and he was detained pending trial.
Harrell, 44, of Atlanta, Georgia was sentenced by U.S. District Court Judge Steve C. Jones to 11 years in federal prison, and three years of supervised release and ordered to pay $2,543,629.98, in restitution. On December 19, 2019, Harrell pleaded guilty to one count of conspiracy to commit healthcare fraud and one count of aggravated identity theft.
Co-defendant Nikki Richardson, 44, of Fairburn, Georgia, was sentenced on January 29, 2020, to three years, and eleven months, three years of supervised release and ordered to pay $1,719,189.00 in restitution. Co-defendant Tomeka Howard, 44, of Decatur, Georgia pleaded guilty to healthcare fraud and aggravated identity charges and was sentenced to three years’ probation, with 18 months of home confinement, and ordered to pay $732,189.00 in restitution.
The case was investigated by the Georgia State Attorney General’s Medicaid Fraud Control Unit, the U.S. Department of Health & Human Services, Office of the Inspector General, the Federal Bureau of Investigation and the Medicaid Fraud Control Units for Florida and Louisiana.
Assistant U.S. Attorney Jeffrey Brown, Deputy Chief of the Complex Frauds Section, prosecuted the case. Georgia Assistant Attorney Generals Elizabeth Grofic and John Van Why also assisted with the prosecution.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Allentown Man Sentenced to 20 Years in Prison for Distribution, Receipt, and Possession of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Ryan Antrim, 29, of Allentown, Pennsylvania was sentenced to 20 years’ imprisonment and a lifetime of supervised release by United States District Court Judge Edward G. Smith, for the distribution, receipt, and possession of child pornography.
Between July and November 2017, the defendant utilized Kik Messenger (Kik), a free proprietary instant messaging software application primarily for mobile devices, as a way to join a Kik group focused on the sexual abuse of children. As a member of this group, Antrim distributed various images and videos, and also received sexually explicit images of young children under the age of twelve years old. On February 15, 2019, Antrim pled guilty to all charges.
“Antrim took part in a repugnant online community that glorified the sexual exploitation of children,” said U.S. Attorney McSwain. “Distributing sexually explicit videos and photos of young children is reprehensible behavior that demands swift justice. My Office will continue to aggressively prosecute these types of crimes in order to deter this repulsive behavior and protect children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
All Five Defendants Convicted in Federal Cream Fraud SchemeRead the Press Release
Chattanooga, Tenn. – All five defendants have been convicted in federal court for their roles in a scheme defrauding both private insurance companies and government insurance programs of over $30 million dollars. The scheme involved sham prescriptions for compounded creams and medications, oftentimes issued without the supposed patient even knowing about them, and were frequently signed by a health care provider who never even met the patient.
Jerry Wayne Wilkerson, 40, Michael Chatfield, 31, Kasey Nicholson, 34, Billy Hindmon, 39, and Jayson Montgomery, 40, were convicted in the United States District Court for the Eastern District of Tennessee at Chattanooga. The Honorable Harry S. Mattice, Jr. presided over the trial and scheduled sentencing for all five individuals for June 8, 2020.
The charges of healthcare fraud, wire fraud, mail fraud, illegal kickbacks, and money laundering in the 178-count indictment centered on a scheme in which the defendants marketed topical creams and other medications through prescription drug coverage plans that paid for the creams and medications. The creams were compounded by a pharmacy, meaning they were supposed to have been uniquely formulated specifically for the needs of an individual patient, thus justifying the exorbitant cost- sometimes more than $15,000 per tube. However, the proof at trial showed there was nothing unique about these creams, and in fact the prescription forms were usually pre-printed documents filled out in mass by the marketers. A health care provider’s signature was oftentimes stamped on the document by employees of the defendants. The defendants all profited from the fraud, including the pocketing of millions of dollars of kickbacks from prescriptions billed to Tricare, which is the government-funded health insurance program for active duty and retired military servicemen and women.
The four-year investigation revealed that the defendants used a network of in-person marketing by convincing friends and family members to sign up for revolving shipments of exorbitantly priced topical creams and medications, some prescribed without seeing a physician or others which were not medically necessary. The majority of the time, these medications were neither needed nor wanted by the named patient but were ordered strictly for monetary gain. On some occasions, orders were placed without the knowledge or approval of the patient, and their insurance would then be billed for these items. The proof at trial showed that Wilkerson collected at least $13 million in commissions from the scheme.
Insurance companies and Tricare paid a total of roughly $35 million for the compounded medications in this case.
“Fraud such as this affects everyone. It increases what we all pay for healthcare and prescription drugs. Scam artists put their own financial interests ahead of the safety of others and ignore instituted laws, which protect the taxpayer and our funded healthcare system,” said U.S. Attorney J. Douglas Overbey. “Worse, much of the fraud in this case was directed at Tricare, the government program which insures our active duty and retired military personnel. The Hamilton County School System, a self-insured system funded by the taxpayers of Hamilton County, was also defrauded of over $950,000. When people steal from the taxpayers, they steal from all of us.”
“A key aspect of the FDA’s mission to protect the public health is creating a regulatory framework that helps ensure that compounded drugs are dispensed only under a valid prescription and to patients who have a legitimate medical need for them,” said H. Peter Kuehl, Acting Special Agent in Charge, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate and bring to justice those who put profits above the health and safety of Americans.”
Assistant United States Attorneys Perry H. Piper and Frank P. Clark represented the United States at trial and were assisted by paralegal Kris Eslinger. The case was investigated by Special Agent Brian Kriplean, Food and Drug Administration, Office of Criminal Investigations, and Special Agents Erik Srock and Marian Schmidt, Department of Defense Office of Inspector General, Defense Criminal Investigative Services.
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Albany Man Pleads Guilty to Armed Bank Robbery and Firearms Charges for Two Capital Region Armed Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Christopher J. Cohn, a/k/a “Wolf,” age 26, of Albany, pled guilty today to a four-count superseding indictment charging armed bank robbery, firearms, and conspiracy crimes in connection with two February 2019 armed bank robberies.
The announcement was made by United States Attorney Grant C. Jaquith; Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Keith M. Corlett, Superintendent of the New York State Police (NYSP); Chief Eric Hawkins of the Albany Police Department (APD); and Chief David Keevern of the Town of North Greenbush Police Department.
As part of his guilty plea, Cohn admitted to participating in two armed robberies. On February 6, 2019, Cohn and another man pulled up to an Albany Trustco Bank branch, where Cohn declared he was about to “go do this,” meaning that he planned to rob the bank. Cohn and his accomplice then entered the bank wearing ski masks. In the bank, Cohn’s accomplice displayed a gun, and both men threatened to kill the bank’s employees, who surrendered approximately $150,000 to the pair.
On the morning of February 26, 2019, Cohn and the same accomplice entered an M&T Bank branch in North Greenbush, each wearing a ski mask and brandishing a gun. In the course of the robbery, Cohn fired multiple shots, including one that grazed a bank employee. Law enforcement tracked Cohn, his accomplice, and their getaway driver to an Albany motel using a GPS device placed in the stolen money by a member of the bank’s staff. Cohn was apprehended by officers with more than $10,000 in cash and wearing red sneakers matching those captured by the bank’s surveillance cameras during the robbery. Cohn’s accomplice was arrested in the motel’s lobby, where officers found him with several bags containing approximately $3,800 in cash along with ski masks matching those worn by the robbers.
Cohn has been in custody since February 26, 2019.
Cohn faces at least 20 years and up to life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for July 8, 2020 before Senior United States District Judge Lawrence E. Kahn.
This case was investigated by the FBI, the NYSP, the Town of North Greenbush Police Department, APD, and the Albany County Sheriff’s Office, with the assistance of the Rensselaer County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers.
Tuesday 10 March 2020
West Hollywood Man Admits to Modern Art Fraud Scheme Using Fake Works for Sale, Collateral for Loans, and Write-Offs on Tax ReturnsRead the Press Release
LOS ANGELES – A West Hollywood man has agreed to plead guilty to federal criminal charges that he sold bogus art he claimed was created by artists such as Jean-Michel Basquiat, Keith Haring, Roy Lichtenstein and Andy Warhol. He also admitted using fake paintings as collateral for loans on which he later defaulted, and using fraudulent pieces for fraudulent write-offs on his income tax returns.
Philip Righter, 43, was charged today in United States District Court with wire fraud, aggravated identity theft and tax fraud. In a plea agreement also filed today, Righter agreed to plead guilty to the three felony offenses.
In total, Righter’s scheme attempted to bilk victims out of well over $6 million, and he caused losses of at least $758,265. Additionally, his fraudulent tax returns cost the United States more than $100,000, according to the plea agreement.
From 2016 until June 2018, Righter executed a scheme to defraud people, businesses and the United States by using counterfeit and fraudulent art that he asserted was genuine. Righter supported these false claims with fraudulent provenance – or chronology-of-origin – documents that he had created.
Before August 2016, Righter generally conducted these fraudulent transactions in his own name. But after the FBI and the Los Angeles Police Department interviewed him about bogus Keith Haring art he attempted to sell to a Miami art gallery, Righter began using the names of other people to execute his scheme, court documents state.
In order to make the fake artwork appear authentic, Righter ordered and used embossing stamps that appeared similar to the authentic stamps used by the estates of Basquiat and Haring authentic art by these artists. Righter admitted he used these stamps on provenance documents that he created and were later used to deceive his victims into believing the artwork was legitimate.
For example, Righter fraudulently used without authorization the name and signature of Gerard Basquiat – father and previous administrator of the artist’s estate – on fraudulent provenance documents, court documents state. Righter also falsely used the identifications of the estates of Basquiat and Haring, falsely used the names of these two artists, and falsely used the name of a legitimate gallery where Basquiat art was previously sold.
In furtherance of the scheme, Righter obtained and attempted to obtain numerous loans by using the fraudulent art and accompanying fraudulent provenance documents. For example, in October 2016, using another person’s name, Righter contacted a victim about a loan in which a purported original drawing by Basquiat would be used as collateral. Righter created a fraudulent certificate of authentication letter that purportedly came from Basquiat’s estate. The victim wired a $24,000 loan, on which Righter later defaulted. After Righter’s default, the victim attempted to auction the piece, but the auction house determined the piece was fraudulent, and the victim lost $24,000.
Righter also sold or attempted to sell numerous pieces of fake modern art. In August 2017, using another person’s name, Righter listed a purported 1983 piece of art by Basquiat with the word “Samo” written on it with an art sale website and he provided fake provenance documents. The website sold the piece for $50,000. In 2018, after the piece was determined to be fraudulent, the website had to refund the purchase price to the buyer.
Righter also admitted that he knowingly and willfully included a false W-2 and a false donation of fraudulent art to a charity on his 2015 federal income tax return, which resulted in him fraudulently receiving a refund of $54,858. Righter then signed and filed a false 2015 amended tax return, which claimed a false casualty and theft loss of $2,575,000 related to artwork he claimed had been stolen. In truth, the artwork was fraudulent and had no value. This bogus amended tax return resulted in false carryback loss refunds for 2012, 2013 and 2014 totaling $52,485, according to court documents.
Once he enters guilty pleas to the three charges, Righter will face a statutory maximum sentence of 25 years in federal prison.
Righter also currently faces charges in the Southern District of Florida for an approximately $1 million attempted art fraud on the Miami gallery. A hearing in that case is scheduled for March 11.
The FBI’s Art Crime Team, the Los Angeles Police Department, and IRS Criminal Investigation investigated this matter.
This case is being prosecuted by Assistant United States Attorneys Mark A. Williams and Erik M. Silber of the Environmental and Community Safety Crimes Section.
West Des Moines Man Sentenced to Eighteen Years Prison for Transportation of Child PornographyRead the Press Release
DES MOINES, IA – On March 9, 2020, United States District Court Judge Stephanie M. Rose sentenced Paul Morales Castillo, age 25, of West Des Moines, to 216 months in prison for Transportation of Child Pornography, announced United States Attorney Marc Krickbaum. Morales Castillo was ordered to serve five years of supervised release to follow his prison term, pay $3,000 in restitution, and comply with sex offender registry requirements upon release.
The investigation began in August 2018 when West Des Moines Police received an investigative lead from the National Center for Missing and Exploited Children that a video of child pornography had been uploaded on Morales Castillo’s Facebook account. Following further investigation, West Des Moines Police executed a search warrant at Morales Castillo’s apartment in August 2018. Police seized Morales Castillo’s iPhone which contained hundreds of videos and images of child pornography. The investigation showed that Morales Castillo sent and received videos of child pornography to other persons via the WhatsApp messaging platform during July and August 2018.
This case was investigated by the West Des Moines Police Department, Iowa Department of Criminal Investigation’s Internet Crimes Against Children Task Force, and the FBI Child Exploitation Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Warsaw, Indiana Man SentencedRead the Press Release
SOUTH BEND – Jonathan Roberts, age 33, of Warsaw, Indiana was sentenced before U.S. District Court Judge Damon R. Leichty for possession of child pornography, announced U.S. Attorney Thomas L. Kirsch II.
Roberts was sentenced to 63 months in prison, 5 years of supervised release and ordered to pay $20,000 in restitution.
According to documents in this case, in August of 2017, Roberts possessed a cellular phone that contained videos and images of minors engaged in sexually explicit conduct. Roberts later admitted that the images on the cellular phone he possessed were in fact child pornography.
The case was investigated by the U.S. Department of Homeland Security Investigations and the Federal Bureau of Investigations. The case was prosecuted by Assistant United States Attorney John Maciejczyk.
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Virginia man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shawn Kendall Murray, of Gainesville, Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Murray, age 37, pled guilty to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Murray admitted to having cocaine hydrochloride in November 2018 in Jefferson County.
Murray faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Upstate New York Businessman Pleads Guilty to Wire Fraud, Pays More Than $700,000 to Resolve False Claims Act LiabilityRead the Press Release
ALBANY, NEW YORK – Daren Arakelian, age 52, of Rensselaer, New York, pled guilty today to wire fraud for a scheme to import Chinese goods into the United States and then causing his company, Great 4 Image, Inc., to deceptively market and sell those goods to federal agencies as U.S.-made. Arakelian has also agreed to pay $702,000, plus interest, to the United States to resolve his civil liability for his submission of false claims for payment to the federal government.
The announcement was made by United States Attorney Grant C. Jaquith; Leigh-Alistair Barzey, Special Agent in Charge, Defense Criminal Investigative Service, Northeast Field Office; Joseph Dattoria, Special Agent in Charge of the General Service Administration, Office of the Inspector General; and Julio Santana, Acting Special Agent in Charge of the Washington Regional Office of the Department of Homeland Security, Office of the Inspector General.
“Daren Arakelian bilked the United States by telling officials that his products were made in America when they were actually made in China,” said United States Attorney Grant C. Jaquith. “We will continue to use the False Claims Act and the wire fraud statute to hold unscrupulous and greedy contractors accountable, and to make sure our nation gets the American made goods it pays for.”
Arakelian owned and operated Great 4 Image, a company that contracted with various federal agencies to produce backpacks, duffle bags, cinch bags, hydration packs, t-shirts and individual suspension trainers. Each of his company’s contracts required Great 4 Image to comply with the Buy American Act and/or the Trade Agreements Act, laws that Congress enacted for the purposes of promoting the United States’ trade interests.
The Buy American Act restricts the federal government’s purchase of goods that are not domestic end products. The Trade Agreements Act establishes additional restrictions on purchases of products made outside the United States, and generally prohibits government contracting officials from purchasing products that are not entirely from, or substantially transformed in, the United States or a designated country. The Trade Agreements Act effectively waives the requirements of the Buy American Act for designated countries. China is not a designated country.
As part of the civil settlement and guilty plea, Arakelian admitted that he devised and implemented a scheme to defraud the federal government by causing Great 4 Image to import goods, including thousands of backpacks and suspension trainers, that were made in China into the United States and then passing them off as compliant with the Buy American Act and the Trade Agreements Act. In carrying out this scheme, Arakelian made various verbal and written statements to federal officials falsely claiming to have domestically manufactured the goods that he knowingly imported from China.
As a result of his conviction, Arakelian faces up to 20 years in prison, and a term of post-release supervision of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Sentencing is scheduled for July 14, 2020 before Chief U.S. District Judge Glenn T. Suddaby.
“The plea and settlement agreements announced today are the direct result of a joint effort by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command, the U.S. General Services Administration, the U.S. Department of Homeland Security and the U.S. Attorney’s Office for the Northern District of New York,” said Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The DCIS will continue to work with its law enforcement partners to protect the U.S. Defense Department’s procurement process and ensure that U.S. Government contractors provide products and services in compliance with all contractual requirements.”
“The General Services Administration’s Office of Inspector General (GSA-OIG) is committed to protecting the integrity of the GSA’s procurement process and ensuring that government contractors comply with all applicable laws and regulations, including the Buy American Act and the Trade Agreements Act,” said Joseph Dattoria, Special Agent in Charge of GSA-OIG. “Today’s resolution is a testament to that commitment and should serve as a wake-up call to other contractors who may consider violating the Buy American Act and the Trade Agreements Act clauses of their contracts. We appreciate the collaborative efforts of the Department of Justice and our other law enforcement partners.”
“The Department of Homeland Security Office of Inspector General (DHS-OIG) will continue to ensure that companies doing business with DHS comply with the Buy American Act and/or the Trade Agreements Act,” said Julio Santana, Acting Special Agent in Charge of the Washington Field Office of DHS-OIG.
The investigation and resolution were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, GSA-OIG, DCIS, DHS-OIG, and the U.S. Army Criminal Investigative Command. The U.S. Department of the Treasury’s Office of Inspector General also provided investigative support. The civil case was handled by Assistant United States Attorney Adam J. Katz. The criminal case is being prosecuted by Assistant United States Attorney Joshua R. Rosenthal.
U.S. Attorney, Law Enforcement Stand with Crimestoppers, Announce New Top 15 most Wanted Fugitives in the Macon RegionRead the Press Release
MACON, Ga. – Federal, state and local law enforcement partners stood with Macon Regional Crimestoppers leadership this morning to announce a new list of the Top 15 Most Wanted fugitives, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. In February 2019, the U.S. Attorney’s Office made a public commitment with Macon Regional Crimestoppers to release a quarterly list throughout 2019 of the Most Wanted violent offenders. Macon Regional Crimestoppers, a community-run organization dedicated to increasing the safety of citizens, has provided rewards up to $1,000 for tips leading to the arrest of the Most Wanted fugitives. 41 of the 45 Top 15 Most Wanted fugitives in 2019 have been arrested. The new list of fugitives are wanted for violent crimes in Baldwin, Bibb, Crawford, Houston, Jones, Monroe and Peach counties, including aggravated assault, armed robbery and possession of a firearm by a convicted felon. All individuals charged with a crime are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of competent jurisdiction.
“Removing dangerous criminals from the streets is a major priority of law enforcement, and we are proud to stand with Macon Regional Crimestoppers to ask citizens to be on the look-out for these wanted fugitives and to report their whereabouts to authorities,” said Charlie Peeler, the U.S. Attorney. “Creating safer communities is a joint effort, and we are fortunate to have the dedicated partnership of law enforcement and citizens.”
“Crimestoppers is excited about our continued partnership with the U.S. Attorney’s Office and all of our Law Enforcement Partners,” said Warren Selby, Jr., Chairman of Macon Regional Crimestoppers. “Gun crimes continue to plague our community. We are committed to keeping our community safe and need the help of our citizens. Please ‘Make the Call.’”
For a complete list of the Top 15 Most Wanted, and more information about Crimestoppers, visit www.crimestop.us. Macon Regional Crimestoppers is a local non-profit serving Bibb, Baldwin, Houston, Jones, Twiggs, Crawford, Monroe, and Peach counties. The organization partners with law enforcement agencies and community groups to provide anonymous rewards for tips that lead to criminal arrests. Citizens can safely and anonymously report tips at 1-877-68CRIME.
The U.S. Attorney’s Office partnership with Macon Regional Crimestoppers is a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The partnership is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
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.
Two Oklahoma City Men Plead Guilty to Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – Yesterday, ROLANDO CIFUENTES-LOPEZ, 36, and ERI LEONARDO CIFUENTES-LOPEZ, 40, both of Oklahoma City, entered guilty pleas to charges of child sex trafficking, announced U.S. Attorney Timothy J. Downing.
According to separate indictments returned, each defendant obtained, solicited, and patronized two minor victims after having had a reasonable opportunity to observe them and knowing and in reckless disregard of the fact that each minor would be caused to engage in a commercial sex act. The indictment against Rolando Cifuentes-Lopez alleged he engaged in this conduct from November 2016 to January 18, 2019. The indictment against Eri Cifuentes-Lopez alleges he engaged in this conduct from January 2018 to January 18, 2019. Eri Cifuentes-Lopez is also charged with illegally re-entering the United States; he was removed from the country on November 2, 2005, and was found in the United States on November 20, 2019, without the consent of the Attorney General or the Secretary of Homeland Security.
According to court documents, FBI and Oklahoma City Police Department investigators determined that Rolando Cifuentes-Lopez owned the trailer where the two minor victims lived and threatened to evict their family if they did not comply with requests for sex. He allegedly had sex on multiple occasions with each of the minors, who were as young as 14, in exchange for cash or reduced rent. Eri Cifuentes-Lopez also allegedly had sex with each of the minors for cash.
Both men were arrested by Homeland Security Investigations after traffic stops on November 20, 2019, and have been in federal custody since that time.
At sentencing, which will be in approximately 90 days, each defendant faces a mandatory punishment of at least ten years and up to life in prison. If sentenced to less than life, they would be required to comply with terms of supervised release for at least five years and up to life and be required to register as sex offenders. In addition, Eri Cifuentes-Lopez also faces up to twenty years in prison for re-entering the United States illegally. Each defendant could also be fined up to $250,000 on each count and be ordered to pay restitution to trafficking victims.
Two other defendants in this investigation have entered guilty pleas to child sex trafficking. On August 28, 2019, Wilson Leonel Gramajo-Maldonado, 29, of Oklahoma City, pleaded guilty to a superseding information that charged him with obtaining the two minor victims for commercial sex acts between June 2018 and January 18, 2019. On September 5, 2019, Natalie Dawn Halbert pleaded guilty to two counts of child sex trafficking, one for each of the minors. She admitted before U.S. District Judge Charles Goodwin that she maintained the minors between November 2018 and January 18, 2019; provided them with condoms; and caused them to engage in commercial sex acts. Both of these other defendants face a mandatory punishment of at least ten years and up to life in prison. Both are in the custody of the U.S. Marshals Service.
These charges are the result of an investigation by the Federal Bureau of Investigation—Oklahoma City Field Office, the Oklahoma City Police Department, and U.S. Homeland Security Investigations. Assistant U.S. Attorneys K. McKenzie Anderson and Mary E. Walters are prosecuting the case.
Reference is made to public filings for more information.
Troy Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Jake Alexander Cruse, age 33, of Troy, New York, pled guilty today to charges of distributing, transporting and receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Cruse admitted that, between July and October 2018, he used a phone equipped with various Internet-based instant messaging and file-sharing applications to trade child pornography with others. Cruse admitted to creating multiple fake social media accounts for the purposes of making money selling child pornography and trading for additional child pornography files. Cruse’s phone and various online accounts contained approximately 120 video files and 234 image files depicting child pornography.
Sentencing is scheduled for July 15, 2020 before United States District Judge Mae A. D’Agostino.
Cruse faces a minimum term of imprisonment of 5 years, and a maximum term of imprisonment of 20 years. The Court is also required to impose a term of supervised release of between 5 years and life, and Cruse will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
This case was investigated by the FBI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three Men Indicted in Jamestown Cocaine RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Kori Robinson, 22, Islandah Mitchell, 20, both of Jamestown, NY, and Bruce Page, 25, of Buffalo, NY, with conspiring to possess with intent to distribute, and to distribute, cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the indictment and a previously filed complaint, on March 2, 2020, after receiving information that defendants Robinson and Mitchell were traveling to Jamestown with cocaine and crack cocaine in their vehicle, Jamestown Police officers conducted a traffic stop of the vehicle. As an officer approached the vehicle, the vehicle began to drive away. The officer got back into his marked patrol vehicle and initiated another vehicular traffic stop.
An officer observed the front seat passenger, identified as defendant Robinson, moving around and reaching under the front seat, and he appeared to place something in the back seat. The officer gave verbal commands for Robinson to keep his hands up and not to move around. However, Robinson continued to reach and move around.
The Officers called out for each person to exit the vehicle one at a time. Defendant Mitchell was driving, Robinson was the front seat passenger, and defendant Page was in the back seat.
The Officers detected the scent of marijuana coming from inside the vehicle. They then conducted a search of the vehicle, and in the floor area of the back seat, discovered a brown purse. Sticking out from the purse, officers observed narcotics packaging baggies. Inside the purse, officers recovered a clear plastic baggie that contained two separate clear baggies containing suspected crack cocaine and powder cocaine. Officers also recovered a quantity of suspected marijuana; empty packaging materials; a metal spoon with suspected drug residue; and several cellular phones.
On January 27, 2020, the Jamestown Metro Drug Task Force and the Southern Tier Regional Drug Task Force executed a search warrant at Mitchell’s Lafayette Street Apartment in Jamestown. Investigators recovered quantities of suspected cocaine and crack cocaine; $2,000 in cash; two digital scales; credit cards; an iPhone; and a box of ammunition.
The defendants were arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy. Defendant Page is being detained. Defendants Mitchell and Robinson were released on conditions.
The indictment is the result of an investigation by the Jamestown Police Department, under the direction of Chief Harry Snellings, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff’s Office Lieutenant Ronald Lott, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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The National Comprehensive Opioid, Stimulant, and Substance Abuse Program Forum Presents Ways to Combat Addiction CrisisRead the Press Release
The 2020 National Comprehensive Opioid, Stimulant, and Substance Abuse Program (COSSAP) Forum takes place today through Thursday at the Hyatt Regency Crystal City in Arlington, Virginia.
About 1,100 participants, ranging from criminal justice and behavioral health professionals to law enforcement officers, are attending to learn and to share promising and evidence-based strategies, case studies and projects that are turning the tide of America’s addiction epidemic.
“This crisis has claimed too many lives, torn apart too many families and stolen too many futures,” said Principal Deputy Assistant Attorney General Katharine T. Sullivan, Office of Justice Programs. “But thanks to dedicated professionals across the country, we are beginning to see progress in this fight. Overdose deaths are down for the first time in 28 years, which is truly a cause for optimism. The work we are all doing together is making a difference.”
“While the drop in deaths due to overdose is very encouraging, our nation still has a way to go in battling addiction,” said Acting BJA Director Michael Costigan. “I believe the COSSAP Forum will help through the sharing of evidence-based best practices.”
COSSAP, formerly known as the Comprehensive Opioid Abuse Program, is funded by the Department of Justice’s Bureau of Justice Assistance (BJA). Its purpose is to provide financial support to states, units of local government and tribal governments to develop and implement comprehensive efforts to support those impacted by the addiction epidemic. As the overall number of overdose fatalities declined last year, the Trump Administration and Congress are working together to address a surge in deaths related to drugs such as cocaine, methamphetamines and synthetic opioids like fentanyl.
In the last two fiscal years, BJA has awarded approximately $330 million through over 300 grants across almost all states and territories, and many tribes. This program is designed to allow each community to address its unique needs and respond to local or regional emerging threats. These historic investments are enabling law enforcement officers and treatment providers to jointly respond to overdose incidents. They are also helping to expand diversion programs, develop treatment and recovery strategies, and introduce technology-assisted treatment options.
To learn more, visit www.COAPResources.org.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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.
St. Thomas Man Charged with Attempting to Smuggle Machine Gun with an Obliterated Serial Number After Returning from TortolaRead the Press Release
St. Thomas, USVI- Javier Enrique Lima was indicted on February 27, 2020 on multiple federal and local charges related to possessing and transporting a firearm with obliterated serial number. He was also charged with departing a customs facility before being authorized.
According to the indictment and other filed documents, on February 3, 2020, defendant presented himself at Customs and Border Protection (CBP) in the Red Hook ferry terminal after returning from Tortola. A CBP Officer working the x-ray machine noticed a firearm in the backpack Lima brought with him. Lima immediately fled the facility, leaving his backpack. Law enforcement agents made multiple efforts to locate Lima, and were unable to do so. Lima eventually turned himself in to law enforcement on March 9, 2020.
Following a detention hearing this morning before the Honorable Ruth Miller, Lima was released to the custody of his parents for home confinement pending trial on the charges.
Lima faces a maximum sentence of fifteen years in prison.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Donna Rainwater.
Springfield Man Sentenced to 15 Years for Conspiring to Distribute HeroinRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin into Springfield from Bronx, N.Y. and the Dominican Republic.
Alberto Marte, 35, was sentenced to 15 years in prison after pleading guilty to one count of conspiring to distribute and possess with intent to distribute more than one kilogram of heroin; six counts of distribution of heroin; one count of conspiracy to distribute more than one kilogram of fentanyl; and one count of unlawful possession of a firearm. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 29, 2020.
Marte operated a heroin mill at 152 Lebanon Street in Springfield where his co-conspirators packaged kilograms of heroin for retail distribution for a drug trafficking organization based in Springfield. The organization had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area. Marte and 12 others have pleaded guilty to, or have been found guilty of, crimes resulting from their roles in the organization.
A search of Marte’s home and vehicles on Sept. 22, 2016 resulted in the discovery of three kilograms of heroin hidden in an aftermarket compartment in a vehicle and three firearms. On the same date 1.7 kilograms of heroin and evidence of an active heroin mill were also discovered during searches at additional locations.
United States Attorney Andrew E. Lelling; Hampden County District Attorney Anthony D. Gulluni; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Jason Molina, Acting Special Agent in Charge, Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Claprood; Chicopee Police Chief William R. Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Paul Connor made the announcement today.
Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office prosecuted the case.
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Springfield Man Pleads Guilty to Damaging a Postal Vehicle and Stealing MailRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield for theft of United States mail and destruction of government property.
Jose Luis Sanchez, 45, pleaded guilty before U.S. District Court Judge Mark G. Mastroianni who scheduled sentencing for June 11, 2020. Luis Sanchez admitted that on Aug. 16, 2017 he broke into a postal vehicle and stole mail that was inside.
The maximum sentence for stealing mail is up to five years in prison, to be followed by up to three years of supervised release and a fine of up to $250,000. The offense of causing damage to government property is punishable by up to one year in prison to be followed by up to one year of supervised a release and a $100,000 fine.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
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South Florida Resident Convicted for Stealing over $2 million from a Texas School DistrictRead the Press Release
MIAMI−Following a three-day trial, a federal jury found Donald Howard Conkright, 63, of Key West, Florida, guilty for his role in laundering more than $2 million that was stolen from a Texas school district.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Matthew J. DeSarno, Special Agent in Charge, Federal Bureau of Investigation (FBI), Dallas Field Office, made the announcement.
According to the evidence presented at trial, a spoofed email was used to trick a Texas school district into sending approximately $2 million to a bank account that Conkright controlled. The school district had that money earmarked for the construction of a new elementary school.
Once the $2 million hit the bank account, Conkright began to spend and conceal the money. He purchased $70,000 worth of Rolex watches, over $13,000 at Apple stores, and a $128,000 BMW, among other transactions. Conkright also withdrew more than $60,000 in cash from the account, in increments below $10,000. He wired out of the country about $875,000, and sent over $70,000 worth of computers to Nigeria. In addition to laundering the school district’s money, there was evidence presented at trial that Conkright had laundered, and attempted to launder, other victims’ money as part of the same conspiracy between 2017 and 2019.
The jury found Conkright guilty of conspiring to commit money laundering and substantive money laundering. Sentencing is scheduled in Key West, Florida for May 11, 2020.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. Assistant U.S. Attorneys Lindsey Lazopoulos Friedman and Yisel Valdes prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Bend, Indiana Man Convicted by a JuryRead the Press Release
SOUTH BEND - Trent Slone, age 44, of South Bend, Indiana, was convicted of being a felon in possession of a firearm, announced United States Attorney Thomas L. Kirsch II.
U.S. District Court Judge Jon E. DeGuilio presided over this two-day trial in South Bend.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance from the Drug Enforcement Administration and the St. Joseph County Drug Investigations Unit. Assistant United States Attorneys for the Northern District of Indiana, Joel Gabrielse and Jerry McKeever, prosecuted the case.
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Six Individuals Indicted in March Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the March 2020 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
PABLO GEOVANNI AGUIRRE-RODRIGUEZ, age 37, of El Salvador
Possession With Intent To Distribute Methamphetamine
Possession Of Firearm In Furtherance Of Drug Trafficking Crime
Illegal Reentry Of Previously Removed Alien
Possession Of A Firearm By A Prohibited PersonThe Indictment alleges that on or about December 19, 2019, in the Eastern District of Oklahoma, the defendant, PABLO GEOVANNI AGUIRRE-RODRIGUEZ, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The Indictment further alleges that on or about December 19, 2019, in the Eastern District of Oklahoma, the defendant, PABLO GEOVANNI AGUIRRE-RODRIGUEZ, did knowingly possess a firearm, to wit: one Tristar 9mm caliber semi-automatic pistol, serial number 13AF00837; in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about December 19, 2019, in the Eastern District of Oklahoma, the defendant, PABLO GEOVANNI AGUIRRE-RODRIGUEZ, an alien, was found in the United States after having been removed therefrom on or about April 10, 2013 at or near Phoenix, Arizona, and not having obtained the express consent of the Secretary of Homeland Security to reapply for admission to the United States; in violation of Title 8, United States Code, Section 1326(a), punishable by not more than 2 years imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about December 19, 2019, in the Eastern District of Oklahoma, the defendant, PABLO GEOVANNI AGUIRRE-RODRIGUEZ, knowing that he was an alien illegally and unlawfully in the United States, did knowingly possess a firearm, to wit: one TriStar 9mm caliber semi-automatic pistol, serial number 13AF00837, and said firearm having been shipped and transported in interstate commerce; in violation of Title 18, United States Code, Sections 922(g)(5)(a) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Wagoner County Sheriff’s Office and the Department of Homeland Security - Homeland Security Investigations.
Assistant United States Attorney Ryan Conway
ROBERT L. LEMONS, age 32, of Idabel, Oklahoma
Felon In Possession Of Firearm & AmmunitionThe Indictment alleges that on or about January 13, 2019, in the Eastern District of Oklahoma, the defendant, ROBERT L. LEMONS, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e)(1), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Idabel Police Department, the McCurtain County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Ben Gifford
JOHN COLE HAEBERLE, age 23, of Tahlequah, Oklahoma
ArsonThe Indictment alleges that on or about February 24, 2020, in the Eastern District of Oklahoma, the defendant, JOHN COLE HAEBERLE, maliciously damaged and destroyed, and attempted to damage and destroy, by means of fire and explosive materials, a building which was used in any activity affecting interstate commerce, to-wit: the Garden Walk Apartments located at 18106 W. 794 Road, APT 40B, Tahlequah, Oklahoma, in violation of Title 18, United States Code, Section 844(i), punishable by not less than 5 years and not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Jarrod Leaman
JOHN LEROY PRUITT III, age 42, of Braggs, Oklahoma
Possession Of Unregistered Firearm (Destructive Device)The Indictment alleges that on or about January 8, 2020, in the Eastern District of Oklahoma, the defendant, JOHN LEROY PRUITT III, did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record, in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, a fine up to $10,000,000.00, or both.
The charges arose from an investigation by the Muskogee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Dean Burris
BRENT ALLEN HAIRE, age 42, of Muskogee, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of Firearms In Furtherance Of Drug Trafficking Crime
Felon In Possession Of FirearmsThe Indictment alleges that on or about February 24, 2020, in the Eastern District of Oklahoma, the defendant, BRENT ALLEN HAIRE, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The Indictment further alleges that on or about February 24, 2020, in the Eastern District of Oklahoma, the defendant, BRENT ALLEN HAIRE, did knowingly possess firearms in the furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about February 24, 2020, in the Eastern District of Oklahoma, the defendant, BRENT ALLEN HAIRE, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, firearms which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration.
Assistant United States Attorney Ryan Conway
HURLEY DEWAYNE PITTS, age 46, of Tahlequah, Oklahoma
Felon In Possession Of Firearm & Ammunition
Influencing Federal Official By Threatening Family MemberThe Superseding Indictment alleges that on or about January 18, 2020, within the Eastern District of Oklahoma, the defendant, HURLEY DEWAYNE PITTS, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both. However, should the court determine that the defendant is an armed career criminal - imprisonment of not less than 15 years, a fine up to $250,000.00, or both.
The Superseding Indictment further alleges that on or about February 22, 2020, within the Eastern District of Oklahoma, the defendant, HURLEY DEWAYNE PITTS, did threaten to assault, kidnap, and murder the immediate family members of T.C., a Task Force Officer for the Federal Bureau of Investigation, with intent to impede, intimidate, and interfere with T.C. while he was engaged in the performance of his official duties, and to retaliate against T.C. on account of the performance of his official duties, in violation of Title 18, United States Code, Sections 115(a)(1)(A) and 115(b)(4), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Tahlequah Police Department and the Federal Bureau of Investigation.
Assistant United States Attorney Clay Compton
Roanoke Rapids Man Sentenced to 77 Months Imprisonment on Drug and Firearm ChargesRead the Press Release
GREENVILLE — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge Malcolm J. Howard, sentenced JERMAINE HALE, 30, of Roanoke Rapids to 77 months’ imprisonment, followed by 5 years of supervised release. HALE was named in a three-count Indictment on March 17, 2017, charging him with being a felon in possession of a firearm and ammunition; possession with intent to distribute cocaine, crack cocaine, and marijuana; and possession of a firearm in furtherance of a drug trafficking crime. On December 2, 2019, he pled guilty to possession with intent to distribute the drugs, as well as possessing a firearm in furtherance of drug trafficking.
According to the investigation, on November 10, 2016, Halifax County Sheriff’s Office narcotics agents were investigating drug complaints in Lincoln Heights Community of Roanoke Rapids, North Carolina. They noticed a car that abruptly pulled into a driveway as they drove in its direction, as if the driver was attempting to evade law enforcement. The agents circled back to conduct surveillance. The driver again started to pull out of the driveway only to pull back into the driveway when the agents revealed themselves. The agents approached and saw the driver, later identified as HALE, appear to place something under his seat. As they came up to HALE, they noticed a strong odor of marijuana from his person. HALE attempted to walk away, and plastic baggies began falling from his pants leg. Agents attempted to detain him, but he resisted and began to reach toward his waistband. One of the agents then deployed a taser and subdued him.
Agents searched HALE’s clothing and concealed inside his pants found a plastic bag containing 13 grams of crack cocaine, 17 grams of powder cocaine, and 29 grams of marijuana. They searched HALE’s car and found a Sig Sauer .45 caliber handgun loaded with 7 rounds sitting underneath the driver’s seat.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Halifax County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
Rhode Island Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Rhode Island man pleaded guilty today in federal court in Boston to five counts of bank robbery.
Charles Lamont Wheeler, 47, pleaded guilty to a Superseding Information charging him, and a co-defendant, Dong Lee, with five counts of bank robbery. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 13, 2020. Lee is scheduled to plead guilty on March 11, 2020.
Between Sept. 8, 2018 and Sept. 14, 2018 five banks in the Greater Boston area were robbed. Based on the similarity of the robberies, and the descriptions of the robbers provided by bank tellers, it was determined that the same two individuals were responsible for these robberies. On Sept. 14, 2018, Lee and Wheeler robbed a branch of the Crescent Credit Union in Brockton and were both arrested following a high-speed car chase in Attleboro.
Following an interview and review of banks’ surveillance tapes, it was determined that Wheeler and Lee, were responsible for the robberies of the Santander Bank in Andover on Sept. 8, 2018; Berkshire Bank in Boston on Sept. 8, 2018; Rockland Trust in Braintree on Sept. 12, 2018; Abington Savings Bank in Avon on Sept. 14, 2018; and Crescent Credit Union in Brockton on Sept.14, 2018.
Each charge of bank robbery provides for a sentence of up to 20 years’ in prison, three years of supervised release, a fine of up to $250,000 and restitution in the amount of $11,250.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Commissioner William G. Gross of the Boston Police Department; Chief Emanuel Gomes of the Brockton Police Department; Chief Jeffrey J. Bukunt of the Avon Police Department; Chief Mark W. Dubois of the Braintree Police Department; and Chief Patrick Keefe of the Andover Police Department made the announcement today. The case is being prosecuted by Assistant United States Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit.
Pittsburgh Man Purchased and Resold Heroin and Fentanyl as Part of DS-44 Gang CaseRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Deandre Gordon, 24, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Gordon is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Deandre Gordon purchased distribution-level quantities of heroin and fentanyl from his co-conspirator, Jarrell Dawson, and re-sold the drugs to other people.
Judge Stickman scheduled sentencing for August 4, 2020, at 10:30 am. The law provides for a total sentence of not more than 20 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Gordon remains detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult
Probation, AlleghenyCounty Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement TaskForce Program (OCDETF). The OCDETF program supplies critical federal fundingandcoordination thatallows federaland state agencies to work together to successfully identify,investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Philadelphia Man Sentenced to 20 Years in Prison for Trafficking Counterfeit Drugs That He Purchased on Dark Web with BitcoinRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Michael Gordon, 32, of Philadelphia, PA, was sentenced today by United States District Court Judge Paul S. Diamond to serve 20 years’ imprisonment, followed by three years’ supervised release, for conspiracy to traffic in counterfeit goods and conspiracy to commit money laundering. The Court further ordered the defendant to pay over $2.7 million in restitution and to forfeit over $300,000.
From approximately December 2017 until October 2018, Gordon was involved in a sophisticated scheme to obtain counterfeit Xanax on the dark web in order to sell the counterfeit pills for a profit. He took numerous steps to conceal his illegal activity: for example, he coordinated the mailing of packages in covert ways, having them addressed to fictitious recipients and mailed to a variety of locations Gordon himself controlled in an attempt to thwart any investigative efforts. Additionally, he paid for the counterfeit pills using Bitcoin, re-sold the counterfeit pills for a profit, and then laundered the proceeds of his illicit drug business in order to conceal the true nature of the funds obtained from the scheme. Before he was stopped by law enforcement, the defendant illegally obtained hundreds of thousands of these highly addictive pills and re-distributed them. He pleaded guilty to the charges in June 2019.
“Simply put, Gordon placed the well-being of others at risk in order to satisfy his own greed,” said U.S Attorney McSwain. “Xanax can be highly addictive under normal circumstances, but the counterfeit version of Xanax can be even more addictive and potentially deadly. Gordon did not think twice about this danger, as he was focused solely on how to profit from the misery of others. He is now in prison, where he belongs.”
“Abuse of benzodiazepines, such as Xanax, is a critical issue for a greater Philadelphia-area that is already experiencing an opioid abuse epidemic. Add in the trafficking of counterfeit prescription drugs made of unknown substances from China and, now, we have significantly increased the risk to vulnerable consumers,” said William S. Walker, acting Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners will continue to work tirelessly to investigate and remove dangerous narcotic traffickers from our communities.”
This case was investigated by Homeland Security Investigations Philadelphia’s Cyber Crimes Investigations Task Force (C2iTF) – a multi-agency initiative targeting cyber-enabled criminal activity. The Task Force is comprised of investigators and analysts from the Liberty Mid-Atlantic High Drug Trafficking Area Initiative, the U.S. Postal Inspection Service, the Drug Enforcement Administration, the U.S. Postal Service - Office of the Inspector General, the Pennsylvania State Police, the Pennsylvania National Guard, and the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Nancy Beam Winter.
Payroll Tax Executive Sentenced for His Role in a $9 Million SchemeRead the Press Release
St. Louis - David L. Downey, 51, of Indianapolis, Indiana, was sentenced to 72 months in prison for federal charges stemming from his scheme to defraud which caused losses of $9.4 million to clients of his payroll service business and the Internal Revenue Service. Downey appeared today in front of United States District Judge Catherine D. Perry.
Downey ran a payroll services business in Indianapolis under the name Time Payroll from 2013 to 2017. He had clients in Indiana, Illinois, Kentucky and Missouri. He had earlier admitted that he deflected money from his clients’ accounts to his Charles Schwab brokerage accounts and failed to pay substantial amounts of those client funds to the IRS for the clients’ employment taxes. Over the course of the scheme, he misapplied some $20 million into his day-trading accounts at Charles Schwab and returned only $11 million of those funds to the IRS for employment taxes. The government has stated that Downey effectively ran a Ponzi scheme with his client’s money and funded exotic travel to destinations such as St. Bart’s with the stolen funds. He admitted to a loss to the clients and to the IRS of $9,428,160.
The court ordered Downey to pay restitution to his clients in the amount of $8,780,118.
“David Downey’s sentence proves employment tax fraud will be vigorously investigated and prosecuted to the fullest extent,” said Karl Stiften, IRS Criminal Investigation Special Agent in Charge. “David Downy not only stole from the U.S. Government, he also stole from the businesses who trusted him to pay over their employment taxes.”
Court records show that, after closing his business in late 2017, Downey cashed out his remaining brokerage and bank accounts and headed to California. There he attempted to get a U.S. passport using his brother’s name and a recently-issued California driver’s license showing his brother’s name and Downey’s picture. Special Agents from the IRS Criminal Investigation unit in St. Louis tracked Downey to California and, on November 16, 2018, arrested him at the Kimpton Shorebreak Hotel in Huntington Beach. Downey was in possession of $955,956 in cash at the time of his arrest. He had also used $53,990 in cash to purchase a 2018 Jeep Cherokee in California. The vehicle was bought in his brother’s name. The cash and the vehicle were seized by the IRS Special Agents. The court ordered the cash and the car to be forfeited for the benefit of his clients.
One of Downey’s clients was Health Facilities Rehab Services (HFRS) located in Sikeston, Missouri. HFRS initially lost $851,174 to Downey and, after suing him, was eventually paid $650,000 of that loss. HFRS will be entitled to restitution for the remainder of their loss.
The 72-month sentence includes a sentence for the passport fraud scenario in which Downey tried to obtain a passport in his brother’s name in San Diego in the fall of 2018.
This case was prosecuted by the James Crowe, Jr., of the U.S. Attorney’s Office in St. Louis and was investigated by Special Agents of Internal Revenue Service Criminal Investigation office in St. Louis.
Owner of Detroit-Area Health Care Clinic Sentenced to Prison for a Drug Diversion SchemeRead the Press Release
The owner of a Detroit-area physical therapy clinic was sentenced to 11 years in prison today for his role in a drug diversion scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Malik Fuqua, 49, of Southfield, Michigan, was sentenced by U.S. District Judge David Lawson of the Eastern District of Michigan, who also ordered Fuqua to forfeit $716,824.23. In November 2019, Fuqua pleaded guilty to one count of conspiracy to distribute controlled substances.
As part of his guilty plea, Fuqua admitted that, as the owner and operator of a physical therapy clinic, he conspired with Shirley Douglas, 70, of West Bloomfield, Michigan, and other co-conspirators to distribute medically unnecessary controlled substances, including oxycodone, oxymorphone, alprazolam, hydrocodone and promethazine hydrochloride, through the selling of appointments with physicians at their clinics.
The total drug amount attributable to Fuqua is in excess of 500,000 controlled substance pills.
This case was investigated by the DEA and HHS-OIG. Trial Attorneys Malisa Dubal and Patrick Suter of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Ohio County woman admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Terri Lea Blankenship, of Wheeling, West Virginia, has admitted to drug distribution, U.S. Attorney Bill Powell announced.
Blankenship, age 54, pled guilty to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances.” Blankenship admitted to working with others to distribute cocaine base or “crack,” heroin, methamphetamine, and fentanyl in Ohio County and elsewhere from September 2018 to June 2019.
Blankenship faces to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Newark Man Convicted for Role in Conspiracy to Distribute Heroin and Crack CocaineRead the Press Release
NEWARK, N.J. – A Newark man was convicted today for his role in a conspiracy to distribute heroin and crack cocaine, U.S. Attorney Craig Carpenito announced.
Cory Canzater, a/k/a, “Big C,” 47, of Newark, was found guilty of one count of conspiracy to distribute and possess with intent to distribute controlled dangerous substances, one count of distribution and possession with intent to distribute heroin and one count of distribution and possession with intent to distribute crack cocaine. Canzater was convicted following a one-week trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated 30 minutes before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
From May 2017 through June 2017, Canzater engaged in a heroin and crack cocaine distribution conspiracy that operated in and around Newark, led by Ahmad Johnson, a/k/a “OC,” 40, of Newark. Other members of the conspiracy included Maurice McPhatter, a/k/a “Ree,” Willie McPhatter, a/k/a “Roc,” Keith Henderson, and Sacha Negron, all of Newark.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Canzater was a member of a conspiracy led by Johnson, who was responsible for obtaining wholesale amounts of drugs, including heroin and cocaine, and processing and packaging the drugs for sale in and around Newark.
Johnson pleaded guilty to a drug conspiracy and was sentenced on April 15, 2019, to 180 months in prison. Maurice McPhatter, Willie McPhatter, Henderson, and Negron have all pleaded guilty to drug conspiracy charges and are awaiting sentencing.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life years in prison, and a $10 million fine. Sentencing is scheduled for July 22, 2020.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to the guilty verdicts. He also thanked the Fairfield Police Department; Bloomfield Police Department; Irvington Police Department; Roselle Police Department; Linden Police Department; Rockaway Township Police Department; and the Irvington Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Patricia Astorga of the Opioids Unit and Ari B. Fontecchio of the Economic Crimes unit.
NDTX Round-Up for March 10Read the Press Release
GUILTY PLEA – DARIFAH DAVIS
On March 3, Darifah Davis, 36, pled guilty to theft of government funds. For nearly three years, Davis filed for and was awarded disability insurance benefits. She falsely claimed to not be working during this time, and as a result, received over $51,000 in Disability Insurance Benefits that were not due to her. She faces up to a year in federal custody. This case was investigated by Social Security Administration and is prosecuted by AUSA Danielle Jones.
GUILTY PLEA – CHARLES AUBREY HURT
On March 3, Charles Aubrey Hurt, 63, pled guilty to felon in possession of a firearm. He was previously imprisoned for 3 years for possession of methamphetamine and 7 years for unauthorized use of a motor vehicle. He admits to distributing over 500 grams of methamphetamine in late 2019. Law enforcement searched his residence and found methamphetamine, heroin, and a firearm. Hurt agreed to the forfeiture of 7 firearms that were in his possession. He faces up to 10 years in federal custody. This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Texas Department of Public Safety and is prosecuted by AUSA George Leal.
SENTENCING - CARLOS HUMBERTO MATAMOROS VASQUEZ
On March 2, Carlos Humberto Matamoros Vasquez, 24, was sentenced to 5 years in federal custody for conspiracy to possess with the intent to distribute marijuana. Vasquez admitted to distributing marijuana from Bubba’s Beer, Smoke, Wine and Glasswerks. Law enforcement seized 33 pounds of marijuana and over $468,000 from the residence that he shared with his coconspirator. This case was investigated by Drug Enforcement Administration and the Mesquite Police Department and is prosecuted by AUSA George Leal.
GUILTY PLEA – ALEXANDER WALDVOGEL
On March 5, Alexander Waldvogel, 39, pled guilty to conspiracy to possess with intent to distribute a controlled substance. Waldvogel’s coconspirators purchased a marijuana dispensary in California and illegally shipped marijuana to Texas further illegal distribution. Waldvogel received marijuana shipments for further distribution. During one stage of the criminal operation, Waldvogel possessed approximately 108 kilograms of marijuana or marijuana derived products in his apartment. Waldvogel faces up to 5 years in federal custody for the offense. This case was investigated by the Federal Bureau of Investigations Los Angeles County Sheriff’s Office and prosecuted by AUSA Chad Meacham.
SENTENCING – JOSHUA BLAKE BROWNING
On March 5, Joshua Blake Browning, 38, was sentenced to 3 months for escaping from custody and possessing contraband in prison. Browning escaped a federal prison camp where he was serving time for the possession of a firearm in furtherance of a drug trafficking crime. Additionally, while serving his time in prison, Browning illegally possessed a mobile device. The case was investigated by the United States Marshall Service and is prosecuted by AUSA Suzanna Etessam.
SENTENCING – KYLE DANIEL PEARCY
On March 2, Kyle Daniel Pearcy, 26, was sentenced to 10 months in federal custody for aiming a laser pointer at an aircraft. Pearcy knowingly aimed a laser pointer at a helicopter operated by the Dallas Police Department after midnight in August 2019. He aimed the laser pointer five times for short bursts totaling 13 seconds, causing crew members to squint their eyes to protect their vision. The case record labeled this case as a “knuckleheaded act of stupidity.” This case was investigated by the Federal Bureau of Investigations and is prosecuted by AUSA John de la Garza.
Minot, ND, Man Indicted for Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
Bismarck – United States Attorney Drew H. Wrigley announced that on March 9, 2020, Jordan Devon Bailey, appeared in Federal Court at an initial appearance and arraignment hearing. The United States District Court for the District of North Dakota unsealed an Indictment revealing that a federal grand jury indicted Bailey on the charges of Possession of a Firearm and Ammunition and an Illegal Firearm by a Convicted Felon. Specifically, the Grand Jury alleges that on December 31, 2019, North Dakota Probation and Parole conducted a search of Bailey’s residence and garage after receiving information that Bailey was in possession of a firearm. A loaded .40 caliber pistol and a short-barrel shotgun were located in his garage. Bailey is a convicted felon for the offenses of Unlawful Possession of a Firearm-Felon in North Dakota and Burglary and Possession of a Firearm by a Prohibited Person in Nevada and is prohibited from possessing firearms or ammunition. An Indictment is an accusation and notice of charges, and the defendant is presumed innocent until proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, and Firearms; Ward County Narcotics Task Force; and North Dakota Probation and Parole.
Special Assistant United States Attorney Jeremy A. Ensrud is prosecuting the case.