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22 May 2020
U.S. Attorney Announces Nearly $1M in DOJ Grants Related to COVID-19Read the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger today announced that various jurisdictions across the Eastern District of Virginia have recently been awarded over $972,500 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grants, to the City of Leesburg, Town of Stafford, James City County, City of Chesapeake, Henrico County, and Chesterfield County, are available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“Those on the front lines of the public safety response to the coronavirus have our support, gratitude, and utmost respect,” said Terwilliger. “The Department of Justice provides this funding with significant flexibility, so that state and local departments can use it in the ways that best benefit their officers and their community.”
The grants come on the heels of a separate DOJ grants of over $11 million to the Virginia Department of Criminal Justice Services, the City of Petersburg, the City of Alexandria, the County of Hanover, and the City of Suffolk announced earlier this month.
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The Coronavirus Emergency Supplemental Funding (CESF) Program allows States, U.S. Territories, the District of Columbia, units of local government, and federally recognized tribal governments to support a broad range of activities to prevent, prepare for, and respond to the coronavirus. Funded projects or initiatives may include, but are not limited to, overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses (particularly related to the distribution of resources to the most impacted areas), and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Three men indicted in the Northern District on charges of child pornographyRead the Press Release
The U.S. Attorney’s Office for the Northern District of Ohio announced today that a federal grand jury indicted three men in the Northern District this week on child pornography charges. These are separate cases and are not related.
Matthew Barlow, age 38, of Akron was indicted on two counts of transportation of visual depictions of minors engaged in sexually explicit conduct, one count of sexual exploitation of children, and one count of possession of child pornography. According to the criminal complaint filed in this case, from February 2016 through April 2020, Barlow used an email account to receive and possess approximately 1,483 images of child pornography, which contained visual depictions of real minors engaged in sexually explicit conduct. Furthermore, the affidavit states that some of the images may have depicted a minor that had previously lived with Barlow. Barlow is a registered sex offender in the State of Ohio.
The case was investigated by SA Benjamin Shaw, Homeland Security Investigations (HSI), Cleveland Office. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.
Andrew Allen Meek, age 48, of Leetonia was charged on a two-count indictment with receipt and distribution of visual depictions of minors engaged in sexually explicit conduct, and possession of child pornography. According to the complaint filed in the matter, on February 25, 2020, federal agents executed a search warrant at the defendant’s address in Leetonia and seized various digital items. During an investigation of these items, numerous depictions of child pornography were discovered.
The case was investigated by the Youngstown office of the Federal Bureau of Investigation, the Ohio Bureau of Criminal Investigation, and the Mahoning Valley Violent Crimes Task Force. This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
David M. Schade, age 33, of Cleveland was charged on a three-count indictment with sexual exploitation of a minor, receiving visual depictions of a minor engaged in sexually explicit conduct, and possession of child pornography.
According to the criminal complaint filed in the matter, from March through April 2020, the defendant used the social media platform Snapchat to coerce a minor into engaging in sexually explicit conduct for the purpose of producing and transmitting child pornography. During a federal search warrant of the defendant’s residence, investigators discovered numerous devices containing images of child pornography.
The case was investigated by Investigator David Frattare of the Ohio Internet Crimes Against Children Task Force and the Department of Homeland Investigations, Cleveland Office. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
Three Jackson Men Arrested and Charged with Federal CrimesRead the Press Release
Jackson, Miss. – Three men have been charged with federal criminal violations in an indictment and arrested for conspiracy, wire fraud, mail fraud, bank fraud, money laundering, aggravated identity theft, and fictitious obligations, announced United States Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Homeland Security Investigations, New Orleans Field Office.
“Fraud schemes, like the ones perpetrated and executed by these defendants, inflict considerable loss on citizens, companies, and the financial system,” said U.S. Attorney Mike Hurst. “Many of these schemes target the elderly and often steal the victims’ entire life savings. These arrests affirm the Department of Justice’s commitment to prosecuting those who prey on our most vulnerable citizens.”
“This remains a dynamic, coordinated investigation involving the efforts of multiple Homeland Security Investigations field offices,” said Jere T. Miles, Special Agent in Charge of HSI New Orleans. “These arrests demonstrate that no matter how and where crimes are committed, nothing and no one is beyond the reach of the law. Criminals who use the internet to defraud victims in our community won’t be able to hide.”
An original indictment returned by a federal grand jury on March 19, 2019, charged the defendants James Haynes, 65, Jarvis Haynes, 29, and Neman Zahid, 32, of Jackson, Miss., with defrauding multiple victims as part of an international tech support and telemarketing fraud scheme.
According to the indictment, ten named defendants engaged in a conspiracy to commit wire fraud, mail fraud, and bank fraud, to make money and profit by defrauding individual victims and financial institutions through telemarketing. Members of the telemarketing ring would contact victims by telephone and electronic mail, claiming to offer those victims technical support and assistance to free their personal computers from malicious software or viruses that may have affected their computers. The fraud ring participants persuaded the victims to grant remote access to their computers, and the actors would pretend to be fixing the malware, while they searched for the victims’ bank account information and online access passwords. They also convinced victims to wire or send money, as well as to open and create new accounts for the defendants to receive and transfer funds. Often the ring targeted elderly victims, in particular. On occasions when victims would complain or seek repayment of the money they had sent to the fraud ring, ring members counterfeited checks based on the victims’ bank information, and sent the fictitious obligations back to the victims to deceive them.
According to the indictment and testimony in court, between January 2015 and December 2018, James T. Haynes, Jarvis K. Haynes, and Neman Zahid, in conjunction with seven other defendants, are alleged to have established corporations and limited liability companies in Mississippi and elsewhere, to have opened bank accounts for those corporations, and aided and facilitated in telemarketing scams across the United States as well as overseas. Each of the three men arraigned this week had opened bank accounts in those company names to receive and transfer money defrauded from victims. They also each withdrew and sent money from the corporate shell accounts, to themselves and overseas to fellow conspirators and ring members.
On May 20, 2020, the three men appeared for arraignment on the indictment before United States Magistrate Judge F. Keith Ball in Jackson. The Court released James Haynes and Jarvis Haynes on bond, subject to conditions including that each refrain from further violations of state or federal law while awaiting trial. Neman Zahid was remanded to the custody of the U.S. Marshals to await trial.
Each of the three men faces enhanced maximum penalties of 30 years for the conspiracy count, 30 years for each count of mail fraud and wire fraud; 40 years for each bank fraud count; 20 years for each money laundering count; a mandatory consecutive sentence of two years for each count of aggravated identity theft; and 25 years for each count of fictitious obligations. Each count also can merit a fine of up to $250,000. Federal law enhances the maximum penalties up to ten additional years under the SCAM Act (the Senior Citizens Against Marketing Scams Act of 1994), at Title 18, United States Code, Section 2326, for targeting persons over the age of 55 during listed fraud offenses in connection with telemarketing or e-mail marketing.
Trial is scheduled for June 29, 2020, at the Thad Cochran U.S. Courthouse in Jackson, Miss., before Chief U.S. District Judge Daniel P. Jordan.
U.S. Attorney Hurst commended the work of the Special Agents with HSI’s Jackson Division who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Statesville Man Is Sentenced to Prison for CyberstalkingRead the Press Release
CHARLOTTE, N.C. – Late yesterday, U.S. District Judge Kenneth D. Bell sentenced Charles Timothy Browne, 57, of Statesville, N.C., to 43 months in prison and three years of supervised release, for cyberstalking a woman residing in Maryland, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A Strong, Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney Murray in making today’s announcement.
According to information in filed court documents and the sentencing hearing, in December 2017, and January 2018, Browne sent a Maryland woman approximately 731 harassing and intimidating texts including, “I like my new gun,” “Now your gonna feel some pain,” and “Lock your door.” Court records show that Browne also texted a mutual friend that he was going to shoot the woman in the face. Browne’s repeated texting caused the Maryland woman substantial emotional distress and to fear that he would kill or seriously injure her.
On February 3, 3030, Browne pleaded guilty to cyberstalking. At yesterday’s sentencing hearing, Judge Bell enhanced Browne’s sentence because, at the time he sent the harassing and intimidating texts to the Maryland woman, a judge-issued protective order was in effect that prohibited him from abusing, threatening to abuse, harassing and/or contacting her. Between 2004 and 2017, Browne had been subject to six protective orders.
In making today’s announcement, U.S. Attorney Murray commended the FBI for their investigation of this case.
Assistant United States Attorney Kimlani M. Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
St. Petersburg Man Charged with Attempted Online Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the arrest and filing of a criminal complaint charging Eric James Templeton (31, St. Petersburg) with attempted online enticement of a minor to engage in sexual activity. If convicted, Templeton faces a mandatory minimum penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release.
According to the
complaint , from May 19 through May 21, 2020, Templeton engaged in chats, through an online site and through text messaging, with an individual he believed to be the mother of a five-year-old female child. On multiple occasions during those conversations, Templeton indicated to the “mother,” actually an undercover Homeland Security Investigations Special Agent, his desire to engage in sexual activity with the minor “child.” On May 21, 2020, Templeton asked to meet the “mother,” and her five-year-old “child” for that purpose. Templeton arrived at the agreed upon time and location and was subsequently arrested. A search of Templeton’s person uncovered a bottle of personal lubricant and two lollipops.A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Erin Claire Favorit.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Software Engineer Charged in Washington with Covid-Relief FraudRead the Press Release
WASHINGTON – A software engineer was charged in a complaint unsealed today for allegedly filing fraudulent bank loan applications seeking more than $1 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Baoke Zhang, 35, of Issaquah, Washington, was charged in a federal criminal complaint filed in the Western District of Washington with wire fraud and bank fraud.
“The defendant allegedly submitted false documents in a brazen scheme to acquire over 1.5 million dollars in loan funds made available for legitimate businesses adversely affected by COVID-19,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to identify and bring to justice those who commit fraud on CARES Act programs.”
“This defendant tried more than once to defraud the Paycheck Protection Program (PPP) – a program designed to keep people working,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.”
“SBA OIG applauds due diligence by SBA’s lending partners to maintain the integrity of the lending programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General (SBA OIG) Western Region. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office in partnership with our law enforcement counterparts. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”
“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” stated J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration. I appreciate the assistance of the Small Business Administration Office of Inspector General, the Department of Justice, and other law enforcements partners in this effort.”
“This is an example of someone who was attempting to take advantage of a program to help Americans during one the most difficult times in recent memory,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office. “We are proud to partner with SBA and TIGTA in ensuring funds provided for programs such as PPP, make it to the people who need it the most.”
Zhang allegedly sought over a million dollars in forgivable loans guaranteed by the SBA from multiple banks by claiming fictitious payroll expenses associated with fictitious information technology companies that he created. Zhang allegedly provided fraudulent documents to two different lenders in support of applications for loans guaranteed by the SBA for COVID-19 relief through the PPP. In total, Zhang sought forgivable loans in the amount of $1,525,000.
Allegedly, Zhang provided lenders with fraudulent IRS documentation purporting to show federal tax withholdings for a sole proprietorship in his name for 25 employees. As part of an effort to show that this business had been operating for several quarters, Zhang allegedly submitted to two lenders documentation purporting to show that, on April 3, 2017, the IRS had assigned an Employer Identification Number (EIN) to his sole proprietorship. In fact, the IRS assigned the EIN on April 3, 2020, only a week before Zhang submitted his application to the lender. Zhang allegedly also provided fraudulent IRS documentation purporting to show federal tax withholdings for 20 employees for a limited liability company he created.
Zhang allegedly provided falsified documentation purporting to show that an EIN for the second company had been assigned in 2018. In fact, the IRS assigned the EIN on April 21, 2020, just two days before Zhang submitted an application for the company to the lender. Zhang also allegedly provided the lender with a bank statement purporting to show that the company had disbursed payroll payments in December 2019. In fact, Zhang opened that account in April 2020.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Amanda Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner for the Western District of Washington are prosecuting the case.
The Justice Department acknowledges and thanks the TIGTA, the SBA OIG and the FBI for their efforts investigating this mater.
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.
Software Engineer Charged in Washington with COVID-Relief FraudRead the Press Release
A software engineer was charged in a complaint unsealed today for allegedly filing fraudulent bank loan applications seeking more than $1 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Baoke Zhang, 35, of Issaquah, Washington, was charged in a federal criminal complaint filed in the Western District of Washington with wire fraud and bank fraud.
“The defendant allegedly submitted false documents in a brazen scheme to acquire over 1.5 million dollars in loan funds made available for legitimate businesses adversely affected by COVID-19,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to identify and bring to justice those who commit fraud on CARES Act programs.”
“This defendant tried more than once to defraud the Paycheck Protection Program (PPP) – a program designed to keep people working,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.”
“SBA OIG applauds due diligence by SBA’s lending partners to maintain the integrity of the lending programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General (SBA OIG) Western Region. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office in partnership with our law enforcement counterparts. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”
“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” stated J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration. I appreciate the assistance of the Small Business Administration Office of Inspector General, the Department of Justice, and other law enforcements partners in this effort.”
“This is an example of someone who was attempting to take advantage of a program to help Americans during one the most difficult times in recent memory,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office. “We are proud to partner with SBA and TIGTA in ensuring funds provided for programs such as PPP, make it to the people who need it the most.”
Zhang allegedly sought over a million dollars in forgivable loans guaranteed by the SBA from multiple banks by claiming fictitious payroll expenses associated with fictitious information technology companies that he created. Zhang allegedly provided fraudulent documents to two different lenders in support of applications for loans guaranteed by the SBA for COVID-19 relief through the PPP. In total, Zhang sought forgivable loans in the amount of $1,525,000.
Allegedly, Zhang provided lenders with fraudulent IRS documentation purporting to show federal tax withholdings for a sole proprietorship in his name for 25 employees. As part of an effort to show that this business had been operating for several quarters, Zhang allegedly submitted to two lenders documentation purporting to show that, on April 3, 2017, the IRS had assigned an Employer Identification Number (EIN) to his sole proprietorship. In fact, the IRS assigned the EIN on April 3, 2020, only a week before Zhang submitted his application to the lender. Zhang allegedly also provided fraudulent IRS documentation purporting to show federal tax withholdings for 20 employees for a limited liability company he created.
Zhang allegedly provided falsified documentation purporting to show that an EIN for the second company had been assigned in 2018. In fact, the IRS assigned the EIN on April 21, 2020, just two days before Zhang submitted an application for the company to the lender. Zhang also allegedly provided the lender with a bank statement purporting to show that the company had disbursed payroll payments in December 2019. In fact, Zhang opened that account in April 2020.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Amanda Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner for the Western District of Washington are prosecuting the case.
The Justice Department acknowledges and thanks the TIGTA, the SBA OIG and the FBI for their efforts investigating this matter.
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.
Rocky Mount Man Sentenced for Drug DistributionRead the Press Release
RALEIGH, N.C. – A Rocky Mount man was sentenced today to 132 months in prison for possession with intent to distribute heroin and cocaine base (crack).
According to court documents, Matthew Darnell Pittman, 29, possessed with intent to distribute heroin and cocaine base (crack) in July 2017. Pittman, who has been convicted of multiple prior drug distribution offenses, also possessed a firearm. Pittman was found to be a Career Offender and was given credit for thirty months he had already served in the state on related charges.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. Law enforcement agents from the Tar River Regional Drug Task Force, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as the Rocky Mount Police Department, and Nash County Sheriff’s Office investigated the case, and Assistant U.S. Attorney Lucy Brown prosecuted the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-102-D.
Roanoke Rapids Man Sentenced to More Than 21 Years for Firearm CrimeRead the Press Release
RALEIGH, N.C. – A Roanoke Rapids man was sentenced today to 262 months imprisonment for being a felon in possession of a firearm during a March 23, 2018 shooting incident.
According to court documents, Brian Lee Dunlow, 46, was named in a Superseding Indictment filed on October 9, 2019 charging him with being a felon in possession of a firearm (2 counts), possession of a stolen firearm, and possession of a firearm in violation of a domestic violence protective order. Dunlow pled guilty to the first count of Possession of a Firearm by a Felon on January 24, 2020.
On March 23, 2018 officers with the Nash County Sheriff’s Office responded to a home in Spring Hope, NC in response to a shots fired call. Dunlow came home unexpectedly and found his girlfriend moving out, with the assistance of four men from her church who had volunteered to help pack and load a moving truck. Dunlow became upset, pulled a gun and pointed it at the face of one of the men from the church. Dunlow fired a shot at close range but missed. The man, a former corrections officer who was licensed to carry, drew his own gun and returned fire, wounding Dunlow.
Several weeks later, on May 5, 2018, officers from the Roanoke Rapids Police Department responded to a call from the home of Dunlow’s mother, where Dunlow was living at the time, while recovering from the injuries he suffered during the March 23, 2018 shooting. Officers learned that Dunlow had stolen a firearm from his mother’s bedroom and held his mother and his wife hostage for approximately four hours. During the incident, Dunlow threatened his wife and struck her in the face and head with a cane, and caused a cut on his mother’s arm. Dunlow fled in his mother’s car, but was apprehended soon after, with a loaded revolver in the car.
Due to an extensive criminal history that includes qualifying predicate convictions, Dunlow was determined to be an armed career criminal and thereby subject to an enhanced sentence under the provisions of 18 U.S.C. § 924(e).
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the plea and sentenced Dunlow. The Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Nash County Sheriff’s Office, and the Roanoke Rapids Police Department are investigating the case and Assistant U.S. Attorneys Charity Wilson and Bryan Stephany are prosecuting the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:18-CR-48-D1.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Richmond Man Sentenced to 200 Months for Conspiracy to Distribute Methamphetamine and CocaineRead the Press Release
LEXINGTON, Ky.- A Richmond, Ky., man, Richard Duerson, was sentenced in federal court on Friday to 200 months in prison, by Chief U.S. District Judge Danny C. Reeves, after previously being convicted of conspiring to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine.
According to the evidence at trial, on March 2, 2019, officers with the Richmond Police Department obtained and executed a search warrant on Duerson’s apartment in Richmond. During the search, in Duerson’s bedroom, officers located quantities of cocaine and over 50 grams of methamphetamine, including 661 pills containing methamphetamine, as well as approximately $10,000 in cash wrapped in a sock in the bedroom closet.
After Duerson’s arrest, officers investigated several recorded phone calls he made to Jennifer McFarland, his co-defendant, from the Madison County Detention Center, discussing the removal of various items from his apartment. On March 8, 2019, officers obtained a second search warrant, for McFarland’s Richmond residence. During this search, officers located approximately 303 grams of methamphetamine, 679 grams of cocaine, several firearms, and multiple items used for mixing and preparing narcotics for sale.
McFarland was sentenced in March 2020 and received 151 months in prison.
Under federal law, Duerson must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge, DEA Louisville Field Division; Sheriff Mike Coyle, Madison County Sheriff’s Department; and James Ebert, Chief of Police, Richmond Police Department, jointly made the announcement.
The investigation was investigated by the DEA, Madison County Sheriff’s Department, Richmond Police Department, and the Madison County High Intensity Drug Trafficking Area (HIDTA) Task Force. The United States was represented by Assistant United States Attorney Francisco Villalobos II.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Previously convicted felon from the Navajo Nation arraigned on federal charge of illegally possessing firearmRead the Press Release
ALBUQUERQUE, N.M. – Carlton Craig Sandoval, 38, of Window Rock, A.Z., appeared in federal court in Albuquerque on May 20 for an arraignment on an indictment charging him with being a felon in possession of a firearm and ammunition in Indian Country.
A federal grand jury returned an indictment on May 12 charging Sandoval with this offense. According to the indictment and other public court records, Sandoval allegedly committed this offense in McKinley County on Jan. 1. That day, police encountered Sandoval after responding to a 911 call from Navajo, New Mexico reporting a fight outside a group of homes. Officers found Sandoval at the scene sitting in the driver’s seat of a vehicle where he allegedly refused to comply with an officer’s questions. Sandoval allegedly grew agitated and refused to comply with officer requests while also making suspicious movements in the vehicle. When another officer arrived at the scene and approached the passenger side of Sandoval’s vehicle, the officer observed an open beer can and a brown rifle with a scope on the front passenger seat. Sandoval was prohibited from possessing firearms at this time based on previous felony convictions.
The FBI arrested Sandoval on March 16, 2020 in Gallup, New Mexico. He faces up to ten years in prison if convicted of the charged offense. An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The Albuquerque office of the Federal Bureau of Investigation investigated this case with assistance from the Window Rock Police Department. Assistant U.S. Attorney Alexander Flores is prosecuting the case.
President’s Commission on Law Enforcement and the Administration of Justice Holds Hearing on Rural and Tribal JusticeRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice began its hearing on rural and tribal justice over three days via teleconference. Each teleconference featured expert witnesses who provided testimony and, subsequently, answered questions from the commissioners.
On Tuesday, May 19, the commission received testimony from Ronald Parsons, U.S. Attorney for the District of South Dakota; Andover (Kansas) Police Chief Michael Keller; Apex (North Carolina) Police Chief John Letteney, and; Ziebach County (South Dakota) State Attorney Cheryl Laurenz-Bogue.
Testimony and discussions focused on challenges law enforcement face in rural areas. All panelists spoke of the urgent need for resources in rural counties across the country. There is a lack of recruits, funding, technology, and training. In addition, across rural America, substance abuse, specifically methamphetamine, is having a significant impact on communities and leading to an increase in crime.
On Wednesday, May 20, the commission heard testimony from Cochise County (Ariz.) Sheriff Mark Dannels; Bryan Schroeder, U.S. Attorney for the District of Alaska; Laramie County (Wyoming) Sheriff Danny Glick, and; Carleton County (Minn.) Sheriff Kelly Lake.
Testimony and discussion focused on geographic issues for rural communities. The panelists spoke of the hardship long distance and challenging terrain presents to rural law enforcement. There are too few law enforcement officers given the size of the jurisdiction they are tasked with policing. For instance, the transport times from jails to courts or for an officer to respond to an emergency call can take hours. Similarly, law enforcement need proper equipment and vehicles for some of the more challenging landscapes – especially in Alaska where there are often few roads.
On Thursday, May 21, the commission heard testimony from Trent Shores, U.S. Attorney for the Northern District of Oklahoma; Saint Regis Mohawk Tribal (New York) Police Chief Matthew Rourke; Redding Rancheria Tribal Court Chief Judge Richard Blake, and; Sycuan Tribe (Calif.) Police Chief Bill Denke.
Testimony and discussion focused on the criminal justice system in Indian Country. The panelists testified to the need for more law enforcement partnerships, more law enforcement officers on the ground, and, if the officers or agents are non-tribal, the need for law enforcement to have an awareness and appreciation for tribal culture.
The commission will conclude its hearing on rural and tribal justice next week.
For more information on the Commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice. Audio recordings and transcripts of the hearings will be posted online once available.
Pennsylvania Man Sentenced to 37 Months in Prison and over $3 Million in Restitution for Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Branden Coluccio, 32, of Doylestown, Pennsylvania, has been sentenced to 37 months in prison for conspiracy to commit health care fraud. As part of his sentence, he was also ordered to pay restitution in the amount of $3,070,157, forfeiture in the amount of $110,000, and an additional $15,000 fine. United States District Judge Wendy Beetlestone presided over the sentencing hearing in Philadelphia via video teleconference. This scheme involved Liberation Way, a drug and alcohol rehabilitation organization that had treatment centers in Yardley, Bala Cynwyd, and Fort Washington, Pennsylvania.
The investigation exposed an array of health care fraud schemes committed by individuals associated with Liberation Way, including an over-billing scheme connected with the facility’s medical director, as well as an elaborate kick-back scheme involving thousands of medically-unnecessary urine tests which were sent to Florida-based laboratories for analysis. Coluccio, a co-founder of Liberation Way, participated in yet another scheme by fraudulently purchasing premium insurance policies for prospective patients on their behalf, which then allowed Liberation Way to bill insurance companies for expensive “treatment” purportedly provided to these patients. Liberation Way represented that the patients were buying and paying for these policies, when in reality Liberation Way was paying the premiums, which is illegal.
“As made clear by today’s sentencing, my Office will not tolerate health care fraud in any form,” said U.S. Attorney McSwain. “Those who think that they can exploit our health care system and take advantage of at-risk patients are criminals and will face the consequences. Coluccio will rightly spend years in prison and pay millions of dollars as the result of his criminal conduct.”
“Coluccio schemed to defraud health care programs by manipulating vulnerable patients,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Instead he will spend years behind bars and restitute millions in stolen money. We will continue to work with our law enforcement partners to protect vital health and human service programs and the individuals they serve.”
“Coluccio used vulnerable patients as pawns in his scheme to defraud insurance plans of millions of dollars,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “He’s now being held to account for his criminal deceptions at Liberation Way, sentenced to several years behind bars. If you steal from our country’s essential healthcare system, know that the FBI, alongside our state and federal partners, is committed to shutting you down and bringing you to justice.”
“Branden Coluccio conspired with others in a health care fraud scheme by unlawfully purchasing premium insurance policies for prospective patients. The scheme allowed Liberation Way, an organization with several drug and alcohol rehabilitation centers, to bill insurance companies for expensive treatment allegedly provided to patients. We will continue to work with our law enforcement officers to protect the integrity of health care benefits,” stated Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“The defendant took advantage of people struggling with addiction to profit off the opioid epidemic ravaging Pennsylvania,” said Pennsylvania Attorney General Josh Shapiro. “Our office is fighting this scourge on all fronts. My thanks to our partners in the U.S. Attorney’s Office, the FBI, and other agencies in Pennsylvania and Florida for their diligence and dedication to this investigation and the punishments we’ve secured for these bad actors.”
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, the Office of Personnel Management, and the Department of Labor, in conjunction with the Pennsylvania Attorney General’s Office. It is being prosecuted by Assistant United States Attorney Nancy Beam Winter and Special Assistant United States Attorneys Robert Labar and Kristy Christ.
Passenger at Cyril E. King Airport Charged with Smuggling Marijuana to St. ThomasRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that an Information has been filed against Raquel Rivera for attempting to smuggle marijuana into St. Thomas. Rivera is scheduled to be arraigned on June 3, 2020 in St. Thomas.
According to public documents filed in the case, Rivera was stopped on April 22, 2020 at the Cyril E. King airport after arriving in St. Thomas from Miami, FL. Customs and Border Protection (CBP) officers then searched bags she was carrying and found in two separate pieces of luggage marijuana totaling over five kilograms.
This case is being investigated by the Department of Homeland Security-Homeland Security Investigations and CBP. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
An Information is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Officials of Waste Recycling Company Charged with Conspiring to Commit Environmental CrimesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced the filing of three Informations and plea agreements yesterday charging Thomas Drake, 80, Jasper, Georgia; James Moss, 61, Ladysmith, Wisconsin; and Bonnie Dennee, 66, Phillips, Wisconsin, with conspiracy to store and transport hazardous waste without the required permits and manifests, in violation of the Resource Conservation and Recovery Act (RCRA). The Information filed against Moss also charged him with conspiracy to evade the payment of employment taxes and income taxes to the Internal Revenue Service.
As part of their plea agreements with the United States, Drake, Moss, and Dennee agreed to waive their right to be charged by indictment by a grand jury. In these circumstances, federal charges are entered by way of an Information filed with the Court.
According to the Informations, 5R Processors Ltd. (5R) based in Ladysmith, Wisconsin was a corporation involved in recycling electronic equipment, appliances, and other assets. 5R operated numerous facilities and warehouses in Ladysmith, Glen Flora, Catawba and West Bend, Wisconsin, and in Morristown, Tennessee. Drake founded 5R in Wisconsin in 1988 and served as the Chief Executive Officer and Chairman of the Board of Directors. Drake was responsible for overseeing all aspects of 5R’s operations, including compliance with OSHA and federal and state environmental laws. Moss joined 5R in 2007, and became its President in 2010. As President of 5R, Moss was responsible for managing all plant operations. Dennee started with 5R in 1997. She worked in various positions at 5R, including director of environmental, health, safety & certifications, and executive vice-president.
According to the Informations, 5R used a de-manufacturing technique whereby electronic equipment was taken apart manually and the parts sorted into commodities which then could be resold. 5R took in computer monitors and televisions that contained cathode ray tubes (CRTs), which were broken down and the glass separated between “clean glass” (which was sold as a commodity) and “funnel glass” that had lead in it. Until 2011, 5R shipped the leaded CRT glass to vendors that were allowed to handle it, and 5R was charged for the disposal.
The Informations allege that from 2011 to 2016, the defendants and others conspired to (1) knowingly store hazardous waste (i.e broken and crushed CRT glass that contained lead) at unpermitted facilities in Catawba and Glen Flora, Wisconsin, and Morristown, Tennessee; (2) knowingly transport the hazardous waste without a required manifest; and (3) conceal the above violations from state regulators in Wisconsin and Tennessee, as well as auditors with a nationwide recycling certification program known as R2.
According to the Informations, the defendants attempted to conceal their illegal storage and transport of the crushed leaded glass by various means, including:
- changing the date labels on the containers;
- hiding the containers by putting them inside semi-trailers and locking the trailer doors;
- moving the containers to the back of the warehouse and stacking other pallets in front of them, making it impossible for regulators to see the boxes or inspect them;
- storing the containers at a warehouse in Glen Flora, and not disclosing the existence of this warehouse, or its contents, to state regulators or R2 auditors;
- storing the containers at 5R’s plant in Morristown, Tennessee in two warehouse spaces that did not have electricity or power, and which were referred to by 5R employees as the “dark side” and the “dark-dark side;” and
- providing the state regulators with inaccurate inventory and shipping records for the leaded glass.
The defendants agreed to plead guilty to this conspiracy charge. If convicted, the maximum penalty for this charge is five years in prison, restitution, and a $250,000 fine. In addition, Moss agreed to plead guilty to a conspiracy to defraud the IRS in the collection of employment taxes and income taxes for 5R and two other related companies, Wisconsin Logistic Solutions (WLS) and Pure Extractions. The Information alleges that Moss and others failed to truthfully account for and pay over to the Internal Revenue Service all of the federal income taxes withheld from employees and FICA taxes due and owing to the United States for 5R, WLS and Pure Extractions, totaling $858,101.29. The maximum penalty for this charge is also five years in prison, restitution, and a $250,000 fine.
The charges against Drake, Moss, and Dennee are the result of an investigation conducted by the Wisconsin Department of Natural Resources, Bureau of Law Enforcement; the U.S. Environmental Protection Agency, Criminal Investigation Division; and IRS Criminal Investigation. James Cha with EPA Regional Criminal Enforcement Counsel and Assistant U.S. Attorney Daniel J. Graber are handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Naval petty officer indicted for possession, distribution of child pornographyRead the Press Release
BRUNSWICK, GA: A U.S. Navy petty officer stationed at Submarine Base Kings Bay has been indicted on child pornography charges by a U.S. District Court grand jury meeting in virtual session due to the COVID-19 pandemic.
Anthony Gabriel Ortiz, 21, of Kings Bay, appeared in U.S. District Court on Friday before Magistrate Judge Benjamin W. Cheesbro, where he was denied bond and detained pending trial on charges of Distribution of Child Pornography and Possession of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry a penalty of up to 30 years in federal prison plus substantial financial penalties, followed by a period of supervised release and registration as a sex offender. There is no parole in the federal system.
“As our world becomes increasingly connected through cyberspace, there will always be those who would attempt to use these connections for illegal or exploitative purposes,” said U.S. Attorney Christine. “We are grateful for the vigilance of our law enforcement partners in this country and beyond in preventing and interdicting those who would target our most vulnerable citizens.”
Ortiz is a petty officer third class in the U.S. Navy assigned to Submarine Base Kings Bay. Investigators with the Royal Canadian Mounted Police found images of child pornography shared via a messaging application and referred them to the Homeland Security Investigations (HSI) Cyber Crimes Center, and HSI alerted the Naval Criminal Investigative Service (NCIS). Ortiz was later taken into custody.
“It is disheartening to see the victimization of children,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “HSI will continue to prioritize working with its partners to bring these perpetrators to justice and protect the children of this community.”
“NCIS is committed to working with our law enforcement partners to pursue the creators and distributors of child pornography, in hopes of preventing the victimization of young children, many of whom who are scarred for life by the predatory actions of these perpetrators,” said Thomas Cannizzo, Special Agent in Charge of the NCIS Southeast Field Office. “NCIS is dedicated to combating child sexual crimes that endanger Department of the Navy families and children everywhere.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Childhood, and was investigated by Homeland Security Investigations and the Naval Criminal Investigative Service. The case is being prosecuted for the United States by Assistant U.S. Attorneys Jennifer Kirkland and Project Safe Childhood Coordinator Tara M. Lyons.
Mission Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Prohibited Person in Possession of a Firearm and Possession of an Unregistered Firearm.
Wayne Kills Enemy, III, age 29, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 21, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 4, 2019, at Mission, Kills Enemy, being an unlawful user of and addicted to a controlled substance, and having previously been convicted of a misdemeanor crime of domestic violence, knowingly possessed a firearm. The Indictment further alleges that at the same location and date, Kills Enemy knowingly possessed a weapon made from a shotgun, with a barrel of less than eighteen inches in length, which was not registered to him in the National Firearms Registration and Transfer Record.
The charges are merely accusations and Kills Enemy is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Kills Enemy was released on bond pending trial. A trial date has not been set.
Member of the Pueblo of Laguna charged with assault with intent to commit murder and kidnapping in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Duane A. Day, 30, of New Laguna, New Mexico appeared in federal court in Albuquerque on May 20 for arraignment on an indictment charging him with assault with intent to commit murder and kidnapping in Indian Country.
A grand jury indicted Day for the offenses on May 12. According to the indictment, Day committed the crimes on March 24 at a residence in New Laguna, Cibola County, New Mexico. Day allegedly strangled the victim twice, causing her to lose consciousness the second time. Day allegedly threatened the victim’s life during the assault. When the victim attempted to flee and screamed for help, Day threatened her with a metal garden hoe, directed her to move around as he wished, and would not let her leave or call for help. The victim eventually sent a text message to a family member when Day was not looking and asked the family member to call for help. Police arrived a short time later and arrested Day. The victim received treatment for her injuries on the scene and at University of New Mexico Hospital.
The Pueblo of Laguna Public Safety Department arrested Day. He is currently in federal custody pending trial. Day faces up to 20 years in prison if convicted of assault and up to life in prison if convicted of kidnapping. An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The Albuquerque office of the FBI investigated this case with assistance from the Bureau of Indian Affairs. Assistant U.S. Attorney Alexander Flores is prosecuting the case.
Marijuana Distributor Charged with Sex Trafficking of a ChildRead the Press Release
An Oklahoma marijuana distributor made an initial appearance in federal court today for allegedly soliciting a woman to molest her 11-year-old child in exchange for help with living expenses, announced U.S. Attorney Trent Shores.
Thomas James Heiner, 55, of Langley, was charged by Criminal Complaint with sex trafficking of a child.
“The allegations in this Complaint are utterly reprehensible,” said U.S Attorney Trent Shores. “One of our most important missions at the United States Attorney’s Office is seeking justice for child victims who have been sexually exploited by adults. It is my intention to bring the full force of the law against this defendant. Moreover, we will argue for his detention while he awaits trial because we believe he poses a significant threat to children in our community and others. This child sex trafficking investigation and arrest are great examples of the important work being done by the FBI, Tulsa Police Department, and Homeland Security Investigations. When these law enforcement entities team up, Tulsans are most certainly safer and criminals are held accountable.”
During a routine traffic stop on May 16, 2020, a woman reported to the officer that on multiple occasions a man known as “Sasquatch” offered her cash payments, assistance on car payments, and a place to live if she would allow him to molest her daughter while the two adults had sex. According to court documents, “Sasquatch” told the woman that he had previously done the same with an ex-girlfriend and her daughter. The woman reported that the man lived in Langley, Oklahoma, and formerly in Utah. Later, authorities learned the suspect’s name was Thomas Heiner.
On May 17, Heiner allegedly called the woman again and asked her and her minor daughter to meet in a Tulsa hotel room to engage in sex acts. On May 19, at the direction of the FBI, the woman took part in several telephone calls with Heiner, which were observed and recorded by FBI and Tulsa Police Department personnel. According the court documents, Heiner discussed in detail how the two could groom the young girl and coerce her to take part in sex acts with them. Heiner is also alleged to have described how he previously molested a 7-year-old child on at least two occasions.
"The arrest of Thomas James Heiner demonstrates our ongoing commitment to apprehending those who prey on innocent children," said Melissa Godbold, Special Agent in Charge of the FBI Oklahoma City Division. "The alleged actions of Mr. Heiner are not only a violation of the law, but can cause irreparable harm to the mental and physical well-being of young victims. This kind of behavior cannot be tolerated."
“In law enforcement, we deal with reprehensible acts that decent, law abiding human beings could not possibly fathom,” said Tulsa Chief of Police Wendell Franklin. “This is another case which destroys the innocence of a child and touches the heart of every justice official involved in the investigation. Tulsa Police Department extends our heart to child victims who have endured abuse. May the work performed by our agency and our federal partners—the FBI, Homeland Security Investigations, and U.S. Attorney’s Office—be feared by any criminal looking to exploit our innocent children.”
A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days of the defendant’s initial appearance in federal court. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt.
The FBI, Tulsa Police Department, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies. Assistant U.S. Attorneys Christopher J. Nassar and Edward Snow are prosecuting the case.
Every day, law enforcement and U.S. Attorneys’ Offices across our nation dedicate themselves to finding justice for missing and exploited children. On May 25, our country recognizes National Missing Children’s Day. President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day in memory of 6-year-old Etan Patz, who disappeared while walking to his bus stop in lower Manhattan on May 25, 1979. National Missing Children’s Day honors his memory as well as those children still missing. Etan’s killer was convicted in February 2017 for the 1979 murder, but the case remains active with the National Center for Missing & Exploited Children because his body was never found.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that William Wade, 21, of Lincoln, Nebraska, was sentenced on May 22, 2020, to 120 months in prison by Chief United States District Judge John M. Gerrard for conspiracy to distribute methamphetamine. There is no parole in the federal system. Upon release from prison, Wade will serve five years of supervised release.
After getting out of prison in June of 2018, Wade began distributing dealer amounts of methamphetamine to a number of people in Lincoln over the course of the next year. At least six cooperating witnesses provided details about their having purchased or received methamphetamine from Wade in 2018 and 2019 in varying quantities. On June 25, 2019, a confidential informant working with Lincoln Police investigators bought 51 grams of pure or actual methamphetamine from Wade.
This case was investigated by the Lincoln/Lancaster County Narcotics Drug Task Force.
Lightfoot DTO Leader Pleads Guilty to Federal Narcotics ChargeRead the Press Release
PITTSBURGH, PA – A former resident of New Salem, PA, has pleaded guilty to a federal narcotics charge, United States Attorney Scott W. Brady announced today.
Devon Bell, age 27, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 500 grams or more of cocaine before Chief United States District Court Judge Mark R. Hornak. Judge Hornak scheduled sentencing for September 20, 2020 at 10:00 am. Bell has been detained since his initial appearance in federal court on April 25, 2018 and will continue to remain detained pending sentence.
According to information presented to the court, from January 2015 to November 2017, Devon Bell conspired with Jamie Lightfoot, Jr., Deaubre Lightfoot, and other members of the Lightfoot DTO in order to acquire large quantities of cocaine for distribution in and around Fayette County. Jamie Lightfoot, Jr. and Deaubre Lightfoot would deliver large quantities of cocaine to Bell at multiple locations in Fayette County, including his residence in New Salem, PA. Bell would then use his home and multiple other residences to re-package the cocaine and distribute it to other drug customers and co-conspirators in Fayette County and elsewhere.
The law provides for a mandatory minimum sentence of not less than five years in prison and a maximum of 40 years and/or a fine of not more than $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Shaun Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Lexington Man Sentenced to 21 Months for Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky.- A Lexington man, Damien O. Porter, 21, was sentenced in federal court on Friday to 21 months in prison, by Chief U.S. District Judge Danny C. Reeves, for possessing a firearm as a convicted felon.
On May 12, 2019, officers with the Lexington Police Department responded to a theft call at a local business. While investigating, officers made contact with Damien Porter and located a loaded .9mm handgun Porter attempted to conceal. During his guilty plea, Porter admitted he had previously been convicted of a felony and was prohibited from possessing a firearm.
Under federal law, Porter must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was directed by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is 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. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Lexington Man Sentenced to 120 Months for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. — Dejon Jasper, 27, of Lexington, was sentenced today, to 120 months in federal prison, by United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
In November 2018, officers with the Lexington Police Department, initiated a traffic stop on a vehicle driven by Jasper. During the stop, Jasper was in possession of a stolen Smith and Wesson .40 caliber pistol, 28 grams of fentanyl, and 4 grams of cocaine. During his plea, Jasper admitted to possessing the narcotics for distribution and possessing the firearm in furtherance of his drug trafficking.
Under federal law, Jasper must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; R. Shawn Morrow, Special Agent in Charge of the ATF Louisville Field Division; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.
The ATF and the Lexington Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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L.A. County Man Previously Convicted of Child Sex Abuse Pleads Guilty to Federal Child Pornography Possession ChargeRead the Press Release
LOS ANGELES – A Cudahy man who previously was convicted in state court of child sex abuse offenses has pleaded guilty in federal court to one count of possession of child pornography, the Justice Department announced today.
Jesse Beltran, 35, entered his guilty plea on Wednesday before United States District Judge Philip S. Gutierrez.
According to his plea agreement, Beltran was convicted in 2008 in Los Angeles Superior Court of two counts of committing lewd and lascivious acts on a child younger than 14 years of age. He was sentenced to eight years in California state prison for those offenses.
Beltran was on parole for that conviction in May 2019 when FBI agents executed a search warrant at his home and recovered a smartphone containing 256 images and 14 videos of child pornography.
The victims in the sexually explicit images and videos included prepubescent children, Beltran admitted in his plea agreement.
Judge Gutierrez scheduled an August 10 sentencing hearing, at which time Beltran will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this matter.
This case is being prosecuted by Assistant United States Attorney Jeremiah M. Levine of the General Crimes Section.
Intersection of Domestic Violence and Guns in Utah: Using Federal Toolbox to Target Domestic Violence in UtahRead the Press Release
SALT LAKE CITY – Federal prosecutors and their law enforcement partners, concerned about how domestic violence disproportionately impacts Utah’s homicide rate, are targeting offenders who attempt to buy guns illegally and are prohibited under federal law from possessing them. In some years, more than half of Utah homicides have a connection to domestic violence.
Many of Utah’s domestic violence homicides involve firearms. Studies show that the presence of a gun in a domestic violence situation increases the risk of homicide. Prosecutors are also concerned about the impact of COVID-19 on domestic violence cases in Utah. COVID-19 presents a perfect storm of conditions for victims of domestic violence that requires concern and immediate action. What could be worse for a domestic violence victim than isolation with an abuser coupled with reduced access to shelter, resources, lawyers, advocates, and court proceedings?
In Utah, increased calls for police assistance with domestic violence incidents have been reported along the Wasatch Front during stay-at-home directives. In some areas around the country, police leaders are concerned that reported domestic violence crime is actually under reporting what is happening behind closed doors.
Last November, Attorney General William Barr launched Project Guardian with the goal of stopping violence before it starts. Federal prosecutors and law enforcement officers are using federal firearms laws as a “homicide prevention” tool in Utah. For example, under federal law those who are subject to a protective order or who have been convicted of a domestic violence misdemeanor are prohibited from possessing a gun. Tragedies happen when these restricted persons possess firearms, and in Utah, that tragedy too often involves a domestic violence homicide.
According to FBI statistics, 157,414 individuals with a misdemeanor crime of domestic violence conviction were denied firearms purchases between Nov. 30, 1998 and April 30, 2020. Another 65,032, subject to a protection or restraining order for domestic violence, were denied firearms purchases.
“Project Guardian – launched by Attorney General Barr – will get Utah law enforcement to the next level in fighting gun violence. Our intent is to spot the potential for violence, and address it before the violence occurs. If we can prevent even one domestic violence homicide, we are on our way to making a significant impact in Utah,” U.S. Attorney John W. Huber said today. “It’s the victims who motivate my partners and me to pursue these cases using federal law.”
U.S v Kelly
On April 13, 2020, several Emery County Sheriff’s Deputies responded to a possible domestic violence incident based on a report that Vincent Mac Kelly had destroyed part of the interior of a family member’s home and fired several rounds from a firearm into a trailer and in the front yard of his residence in Huntington, Utah.
According to federal charging documents, as the deputies approached the residence, Kelly ran into the trailer. While officers were trying to speak to him, Kelly opened the door and threw a knife at them. He later threw a revolver and a lemon at the officers. A live round of ammunition was in the revolver he threw at officers along with seven spent cartridge casings.
Kelly, according to the complaint, eventually came to the door and was taken into custody. Officers found five live.357 rounds of ammunition in his pocket. They also found drugs, large knives and speed loaders containing .357 ammunition in his trailer. Speed loaders are used to quickly reload revolvers with all the ammunition at once rather than one cartridge at a time.
The complaint charges Kelly, age 46, with possession of a firearm by a convicted felon and possession of a firearm and ammunition while subject to a protective order. He faces up to 10 years in federal prison for each count if he is convicted of the charges.
U.S. v King
James Albert King, age 71, of Magna, is charged with making a false statement during the acquisition of a firearm and possession of a firearm while subject to a protective order in a complaint filed Tuesday.
On Dec, 6, 2019, King went to Federal Firearms Licensee (FFL) store and selected a semi-automatic pistol (essentially an AR-15). According to a complaint filed in the case, as King filled out an ATF form to buy the gun, he answered “no” to the question asking if he was subject to a court order restraining him from harassing, stalking, or threatening your child or an intimate partner or child of such partner. Based on the information King provided, the FFL submitted the ATF form. A background check indicated that King was prohibited and the purchase should have been denied.
However, an employee at the business missed the denial indicator, and King was allowed to purchase the weapon for $1,037.09. A short time later, the FFL realized the purchase should have been denied. A manager made several calls to King to request he bring the firearm back to the store. In a conversation Dec. 13, 2019, King told the manager that he could not return the firearm because it had been stolen from his vehicle in a Walmart parking lot.
Agents with the Utah Department of Public Safety’s State Bureau of Investigation and FBI special agents took King into custody Thursday night. During the execution of a search warrant, agents recovered the semi-automatic weapon he purchased in December along with two other handguns. He was booked into jail on the federal warrant and two Class A protective order violations. ($25,000 bail set Friday morning by state judge).
Each of the two counts in the complaint, false statement during the acquisition of a firearm, and possession of a firearm while subject to a protective order, carry potential 10-year sentences.
US v Lowery
Shane Curtis Lowery, age 55, of Hurricane, was charged with possession of a firearm and ammunition by a person subject to a domestic violence protective order in a complaint filed in November. On Nov. 2, 2019, Hurricane Police Department officers responded to a report of a family fight. According to the complaint, witnesses told officers that Lowery had been seen leaving the property of his wife. Among other things, all four tires on her rental car had been punctured.
A district court judge in St. George issued a protective order for his wife in June 2019 that prohibits the defendant from being within 500 feet of his wife and her residence. It also prohibits him from trying to commit or threatening to commit any form of violence and prohibits him from possessing firearms or ammunition.
Officers located Lowery later on Nov. 2, 2019, in LaVerkin and placed him under arrest for the protective order violation and domestic violence related charges. Individuals approached the officers and told them Lowery had threatened to harm to his wife. They also told officers he had a firearm in his truck.
With a court-authorized search warrant, Lowery’s truck was searched and a Hi-Point 9mm handgun with a magazine containing eight bullets was located. Two additional magazines for the handgun and an additional box of ammunition were also located in the truck. The LaVerkin Police Department assisted with the case.
A federal grand jury returned an indictment charging Lowery in December 2019.
Lowery pleaded guilty to the charge and was sentenced to 13 months in federal prison and three years of supervised release on May 1, 2020.
US v Tatton
Sentencing is set for July 13, 2020, for David Lynn Tatton, age 50, of Nephi, who pleaded guilty in February to making a false statement during an attempted acquisition of a firearm. Tatton admitted that on Nov. 29, 2019, he made a false statement in an attempt to purchase two shotguns. As a part of the purchase process, Tatton indicated on an ATF form that he was not subject to a court order restraining him from harassing, stalking, or threatening an intimate partner – a statement he knew was false. The Utah State Bureau of Investigation is investigating the case.
US v Shaw
Daniel Wayne Shaw, age 37, of Tooele, is charged with making a false statement in an indictment returned Jan. 22, 2020. According to the indictment, in an attempt to buy a handgun, Shaw made a false statement on an ATF form. He falsely answered “no” to a question asking whether he had been convicted of a misdemeanor count of domestic violence in any court. The answer was untrue, the indictment alleges. A trial is set for June 16, 2020, in federal court in St. George. The trial date may be changed based on the coronavirus outbreak.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 21 was:
Amy Lillian Tamaska, 41, of Desert Hot Springs, CA, on charges of conspiracy to possess with intent to distribute methamphetamine and distribution of meth. If convicted of the most serious crime, Tamaska faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Tamaska was detained pending further proceedings. The FBI Transnational Organized Crime West Task Force investigated the case. Pacer case reference. 19-101.
Lisa Marie Fish, 38, of Worden, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of drug trafficking. If convicted of the most serious crime, Fish faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. If convicted of the firearms crime, Fish faces a minimum mandatory five years to life consecutive to any other sentence. Fish was released pending further proceedings. The FBI Transnational Organized Crime West Task Force investigated the case. Pacer case reference. 19-101.
Appearing on a criminal complaint on May 21 was:
Johnathon Scott Cooper, 33, address unknown, on charges of possession of an unregistered silencer. If convicted of the most crime, Cooper faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Cooper was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-46.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hollywood Film Producer Charged with $1.7 Million COVID-Relief FraudRead the Press Release
A California man has been charged with allegedly filing bank loan applications fraudulently seeking more than $1.7 million dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
William Sadleir, 66, of Beverly Hills, California, was charged in a federal criminal complaint filed in the Central District of California with wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.
“This defendant allegedly used Paycheck Protection Program loans to pay off his personal credit card debts and other personal expenses, rather than using the funds for legitimate business needs,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As the department has made clear, those who defraud the PPP to line their own pockets at the expense of the American people will be brought to justice.”
“This film producer allegedly made a series of misrepresentations to a bank and the Small Business Administration to illegally secure taxpayer money that he then used to fund his nearly empty personal bank account,” said U.S. Attorney Nick Hanna of the Central District of California. “The Paycheck Protection Program was implemented to help small businesses stay afloat during the financial crisis, and we will act swiftly against those who abuse the program for their own personal gain.”
“These funds were designed to be a lifeline to businesses struggling to stay afloat during the current crisis,” said Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office. “The FBI is committed to maintaining the integrity of the PPP and will hold accountable those who cheat the system at the expense of American taxpayers.”
“SBA OIG applauds due diligence by SBA’s lending partners to maintain the integrity of the lending programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General (SBA OIG) Western Region. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office in partnership with our law enforcement counterparts. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“Today’s charges hold the defendant responsible for his alleged actions to swindle money out of a federal program intended to help those in need during a pandemic crisis,” said Special Agent in Charge Wade V. Walters of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “When an individual cheats the Paycheck Protection Program out of money, it deprives hard-working Americans and deserving small businesses. The FDIC OIG is committed to working with our law enforcement partners to investigate financial crimes in order to preserve the integrity of the nation’s banking sector.”
According to court documents unsealed today in U.S. District Court in Los Angeles, Sadleir allegedly obtained over $1.7 million in forgivable loans guaranteed by the SBA by falsely representing that the funds would be used to support payroll expenses for three film production and distribution companies, when, in fact, Sadleir intended to use and did use a significant portion of the funds for personal and non-business-related expenses, including personal credit cards and a car loan. Sadleir allegedly used three entities he controlled to obtain over $1.7 million in PPP loans guaranteed by the SBA for COVID-19 relief.
The applications submitted to the lenders certified that the funds would be used for payroll expenses and other specific business-related expenses, such as utilities or rent payments. According to the complaint, these certifications were false. As soon as Sadleir obtained the funds, he allegedly transferred over half the money to a personal bank account and began using and attempting to use the funds to pay off personal credit card debts totaling more than $80,000 and a car loan totaling approximately $40,000, among other personal expenses.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alex Wyman for the Central District of California are prosecuting the case.
The Justice Department acknowledges and thanks the FBI, the SBA OIG, and the FDIC OIG for their efforts investigating this matter.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Hollywood Executive Arrested on Federal Fraud Charges that Allege He Pocketed Money from COVID-19 Relief ProgramRead the Press Release
LOS ANGELES – The recently ousted head of Aviron Pictures was arrested this morning on federal fraud charges that allege he applied for $1.7 million in loans under the Paycheck Protection Program (PPP), falsely certified that the money would be used to finance the operations of other Aviron entities, and then used some of the relief funds for his personal expenses.
William Sadleir, 66, of Beverly Hills, was taken into custody without incident by special agents with the FBI, the Small Business Administration’s Office of Inspector General (SBA OIG), and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). Sadleir is expected to make his initial court appearance this afternoon in United States District Court in downtown Los Angeles.
Sadleir was arrested pursuant to a criminal complaint that accuses him of fraudulently filing bank loan applications that sought more than $1.7 million dollars in forgivable PPP loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Sadleir allegedly obtained the forgivable loans by falsely representing that the funds would be used to support payroll expenses, when, in fact, Sadleir intended to use and did use a significant portion of the funds for personal and non-business-related expenses
The complaint, which was filed Thursday and unsealed after his arrest today, charges Sadleir with wire fraud, bank fraud, making false statements to a financial institution, and making false statements to the Small Business Administration.
According to the affidavit in support of the complaint, Sadleir last month caused applications for PPP loans to be submitted to JPMorgan Chase on behalf of Aviron Group, LLC; Aviron Licensing, LLC; and Aviron Releasing, LLC dba Regatta. The bank approved the loans, and Sadleir received more than $1.7 million. “[I]mmediately upon receiving the funds a significant amount was diverted to Sadleir’s personal accounts and used for personal expenses,” the complaint alleges.
Sadleir was terminated from Aviron Pictures in late 2019, and people associated with the film production company told investigators that Sadleir currently had no role in Aviron Pictures or the related entities, according to the affidavit, which notes that Aviron Group, Aviron Licensing and Aviron Releasing are not engaged in any ongoing operations.
“This film producer allegedly made a series of misrepresentations to a bank and the Small Business Administration to illegally secure taxpayer money that he then used to fund his nearly empty personal bank account,” said United States Attorney Nick Hanna. “The Paycheck Protection Program was implemented to help small businesses stay afloat during the financial crisis, and we will act swiftly against those who abuse the program for their own personal gain.”
“This defendant allegedly used Paycheck Protection Program loans to pay off his personal credit card debts and other personal expenses, rather than using the funds for legitimate business needs,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As the department has made clear, those who defraud the PPP to line their own pockets at the expense of the American people will be brought to justice.”
“These funds were designed to be a lifeline to businesses struggling to stay afloat during the current crisis,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI is committed to maintaining the integrity of the PPP and will hold accountable those who cheat the system at the expense of American taxpayers.”
Authorities have linked Sadleir to the three PPP loan applications made on behalf of the three Aviron entities. All three applications claimed each company had 33 employees and monthly payroll expenses of well over $200,000. On April 30, JPMorgan Chase approved the loan applications, and the next day money was wired to nearly empty JPMorgan Chase bank accounts associated with the three entities.
Within days, nearly $1 million of the PPP loan money was transferred into Sadleir’s personal account at JPMorgan Chase, the affidavit alleges. Investigators have determined that some of this money was used to pay personal expenses, including payments to Sadleir’s and his wife’s American Express cards. One payment allegedly made with PPP loan proceeds – a $40,000 payment on Sadleir’s car loan – was reversed and JPChase Morgan froze the accounts associated with the alleged scheme.
The CARES Act, which was enacted on March 29, was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. Last month, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
“SBA OIG applauds due diligence by SBA’s lending partners to maintain the integrity of the lending programs,” said Special Agent in Charge Weston King of the SBA OIG Western Region. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office in partnership with our law enforcement counterparts. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“Today’s charges hold the defendant responsible for his alleged actions to swindle money out of a federal program intended to help those in need during a pandemic crisis,” said FDIC OIG Special Agent in Charge Wade V. Walters. “When an individual cheats the Paycheck Protection Program out of money, it deprives hard-working Americans and deserving small businesses. The FDIC OIG is committed to working with our law enforcement partners to investigate financial crimes in order to preserve the integrity of the nation’s banking sector.”
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The four charges alleged in the criminal complaint collectively carry a maximum statutory penalty of 82 years in federal prison.
The case against Sadleir is being investigated by the FBI, the SBA’s Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General.
This case is being prosecuted by Assistant United States Attorney Alex Wyman of the Major Frauds Section and Justice Department Trial Attorney Amanda R. Vaughn of the Criminal Division’s Fraud Section.
Sadleir’s arrest this morning was also pursuant to a separate criminal complaint filed by federal prosecutors in New York. That complaint charges Sadleir with engaging in multiple fraudulent schemes relating to investments in Aviron Pictures and its affiliated entities. The United States Securities and Exchange Commission today announced a civil lawsuit related to the New York criminal case.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Four Metro Denver Men Arrested and Charged Following Smash and Grab Burglary of Arvada Gun StoreRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that four defendants have been charged and arrested in connection with a smash and grab burglary at the Eagles Nest Armory, a gun store in Arvada. The defendants were charged with conspiracy to receive, possess, conceal, store, or sell, a stolen firearm. They appeared before a U.S. Magistrate Judge yesterday afternoon where they were advised of their rights and the charges pending against them. The ATF as well as the Arvada and Denver Police Departments joined in today’s announcement.
According to the affidavit in support of the criminal complaint, on April 28, 2020, Daniel Esquivel, Tristan Molinar, and two other individuals drove to the Eagles Nest Armory, arriving at 3:45 a.m. in a black Mitsubishi SUV to steal firearms. The defendants forced entry through the back door of the store and stole twenty-one firearms in less than five minutes before fleeing the scene. Daniel Esquivel then enlisted the help of Norberto Valdez-Esquivel and Víctor Valdez-Esquivel to sell some of the stolen firearms.
Ultimately, a law enforcement agent working in an undercover capacity was able to purchase three of the stolen firearms from Norberto Valdez-Esquivel, Victor Valdez-Esquivel, and Daniel Esquivel. The stolen weapons were being stored in the back of a box truck outside Norberto Valdez-Esquivel’s Denver residence. Daniel Esquivel, Norberto Valdez-Esquivel, and Víctor Valdez-Esquivel shared in the profits from the sale.
On May 19, 2020, search warrants were executed, and two more firearms that had been stolen from the Eagles Nest were located within the box truck outside Norberto Valdez-Esquivel’s Denver residence. Daniel Esquivel, Tristan Molinar, Norberto Valdez-Esquivel, and Víctor Valdez-Esquivel were then arrested.
If convicted, the defendants face not more than 5 years in federal prison, and up to a $250,000 fine.
This case was investigated by the ATF with substantial support from the Arvada and Denver Police Departments. The defendants are being prosecuted by Assistant U.S. Attorney Thomas Minser.
A criminal complaint is a probable cause charging document. Anyone charged by complaint has a Constitutional right to be indicted by a federal grand jury. The charges contained in the criminal complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
Former Chairman and CEO of Movie Production Company Arrested on Fraud ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging WILLIAM SADLEIR, the former chairman and chief executive officer of Aviron Pictures, LLC, a movie production and distribution company based in Los Angeles, California, with engaging in multiple fraudulent schemes relating to investments made by a New York-based investment fund (the “Fund”) in Aviron Pictures, LLC and its affiliated entities (collectively, “Aviron”).
SADLEIR is expected to be presented later today before U.S. Magistrate Judge Alexander F. MacKinnon in Los Angeles federal court.
United States Attorney Geoffrey S. Berman said: “As alleged, William Sadleir orchestrated a massive fraud, embezzling approximately $14 million of investor funds from his film company to pay for a Beverly Hills estate, among other fraudulent acts. Thanks to the dedicated work of our law enforcement partners at the FBI, Sadleir will be held accountable for his behind-the-scenes misdeeds.”
FBI Assistant Director William F. Sweeney Jr. said: “William Sadlier, the chairman and CEO of Aviron Pictures, is charged today for his alleged role in a nearly $30 million fraud scheme. He allegedly even went so far as to pose as a female employee of the sham New-York based company he created to further his illegal activity. Today’s arrest serves as a reminder of the FBI’s dedication to holding people accountable for egregious financial crimes of this nature.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
The Fund is a publicly traded, closed-end investment fund. Shares in the Fund trade on the New York Stock Exchange. As of in or about December 2019, the Fund had approximately $649.1 million in assets.
WILLIAM SADLEIR was the chairman and chief executive officer of Aviron, and oversaw its operations from in or about 2015 until in or about December 2019. Aviron participated in the distribution of a number of films in the United States, including My All American (2015), Kidnap (2017), The Strangers: Prey at Night (2018), A Private War (2018), Destination Wedding (2018), Serenity (2019), and After (2019).
SADLEIR engaged in two fraudulent schemes relating to an approximately $75 million investment made by the Fund in Aviron.
In one of the schemes (the “Advertising Scheme”), SADLEIR misappropriated millions of dollars in funds from Aviron that had been invested in Aviron by the Fund. SADLEIR represented to the Fund that this money had been invested by Aviron in pre-paid media credits with the advertising placement company MediaCom Worldwide, LLC (“MediaCom”), which is a subsidiary of the advertising and media agency GroupM Worldwide Inc. (“GroupM Worldwide”). Instead, SADLEIR, using the bank account for a sham entity he had created, illicitly transferred out of Aviron over $25 million of those funds. Specifically, SADLEIR created a sham New York-based company called GroupM Media Services, LLC (the “Sham GroupM LLC”) designed to appear as if it was the legitimate entity, GroupM Worldwide, and a corresponding bank account in the name of that sham entity. SADLEIR then used a significant portion of those illicitly transferred funds for his personal benefit, including to purchase a private residence in Beverly Hills for approximately $14 million. SADLEIR then falsely represented to the Fund that Aviron had purchased an approximately $27 million balance in pre-paid media credits with MediaCom that were available to promote future Aviron films, and pledged a portion of those credits to the Fund as collateral for additional loans, when in fact the claimed credits did not exist due to SADLEIR’s misappropriation. As part of these false representations, SADLEIR also created a fake identity of a purported New York-based female employee of the Sham GroupM LLC named “Amanda Stevens” who corresponded with a representative of the Fund, ensuring the Fund that Aviron had an approximately $27 million balance in pre-paid media credits with the Sham GroupM LLC. In fact, SADLEIR himself posed as Amanda Stevens when engaging in email exchanges with a representative from the Fund.
In the other scheme (the “UCC Scheme”), SADLEIR engineered the illicit and fraudulent sale and refinancing of assets worth an estimated $3 million that secured the Fund’s loans to Aviron. The Fund had secured its investment in Aviron by, among other means, obtaining UCC liens in 2017 and 2018 on certain intellectual property and other assets relating to Aviron’s films. In 2019, SADLEIR used the forged signature of one of the Fund’s portfolio managers on releases to remove the Fund’s UCC liens on certain of these secured assets in order to sell or refinance them without the Fund’s consent, thus depriving the Fund of its collateral on outstanding loans, loans on which Aviron ultimately defaulted.
* * *
SADLEIR, 66, of Beverly Hills, California, was charged in the Complaint with two counts of wire fraud and one count of aggravated identity theft. The wire fraud charges each carry a maximum prison term of 20 years. The aggravated identify theft charge carries a mandatory sentence of two years in prison.
The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Berman praised the investigative work of the FBI. Mr. Berman also thanked the SEC Division of Enforcement, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jared Lenow is in charge of the prosecution.
Today’s charges are just the latest in a string of prosecutions by this Office – unrelated to today’s – of individuals either in the entertainment industry or victimizing individuals or entities in the entertainment industry, or both. The Office successfully prosecuted former radio host Craig Carton, musician Daniel Hernandez (aka “Tekashi 6ix 9ine”), musician and actor Earl Simmons (aka “DMX”), hacker Christian Erazo (for theft of intellectual property from recording artists), and fraudster concert impresario William McFarland. The Office also has pending charges against Behzad Mesri, an Iranian national who had previously hacked computer systems for the Iranian military (for allegedly infiltrating HBO’s systems and stealing proprietary data, including scripts and plot summaries for unaired “Game of Thrones” episodes), and against nine leaders, members, and associates of the Tehran-based Mabna Institute (for a massive hacking campaign that allegedly included among its victims two major U.S. media and entertainment companies).
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Florida Man and South Carolina Man Indicted for String of Interstate ATM ArsonsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the return of an eight-count indictment charging Mawdo Malick Sallah (33, Clearwater, FL) and Kirk Douglas Johnson (34, Anderson, SC) with one count of conspiring to commit arson, three counts of arson, two counts of using a fire or explosive to commit a federal felony, and two counts of bank larceny. If convicted on all counts, Sallah and Johnson each face a maximum penalty of life in federal prison. The indictment also notifies the defendants that the United States intends to forfeit any funds traceable to proceeds of the offenses.
According to court documents, between November 2019 and March 2020, Sallah and Johnson used fires and explosives in an effort to steal cash from four ATMs. Three of the ATMs were located in the Tampa Bay area and the fourth was in Watkinsville, Georgia. The pair was able to retrieve cash from two of the ATMs, taking a total of nearly $70,000.
“ATF is responsible for enforcing the criminal laws pertaining to explosives and arson,” said ATF Special Agent in Charge Daryl McCrary. “These types of violent crimes destroy property and negatively impact communities.”
“This investigation is proof of the strength and tenacity of the FBI and its law enforcement partners in eliminating such brazen acts of violence which threaten the communities we serve,” said Special Agent in Charge of the FBI Tampa Division Michael F. McPherson.
“The Hillsborough County Sheriff's Office will never tolerate someone making our community feel unsafe while doing a simple act such as going to the ATM,” said Hillsborough County Sheriff Chad Chronister. “The actions of these individuals could have led to innocent people being seriously hurt or killed. They were thinking solely of their gain and not the dangerous impact it would have on others. These arrests are an example of the strength of our partnerships. Multiple agencies worked hand-in-hand to ensure these individuals were off the street, and our communities are all safer because of this teamwork.”
“The Pinellas County Sheriff’s Office is pleased with the grand jury’s work to return an indictment against Sallah and Johnson for the ATM explosions,” said Sheriff Bob Gualtieri. “This was made possible due to good investigative work and a coordinated effort between multiple agencies. It is partnerships like these that allow us to work together to protect our communities and put the bad guys where they belong.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Anderson County Sheriff’s Office (South Carolina), the Jefferson City Police Department (Georgia), the Oconee County Sheriff’s Office (Georgia), the Athens Safe Streets Task Force (Georgia), and the Jackson County Sheriff’s Office (Georgia). Assistant United States Attorney Gregory T. Nolan is prosecuting the case.
This case is being brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Federal Grand Jury Conducted in CasperRead the Press Release
A federal grand jury for the District of Wyoming met in Casper from May 19th -22nd for a third session in 2020. Thirty-one cases were presented and forty-one people were indicted on crimes ranging from federal firearms offenses, drug trafficking, child exploitation, illegal re-entry of a previously deported alien, carjacking, sexual assault, assault by strangulation, counterfeiting, tax evasion, escape from custody, and assaulting law enforcement officers.
The District of Wyoming convenes a federal grand jury every two months to consider criminal charges contained in proposed indictments for cases that have been investigated by local, state, tribal, and federal law enforcement. The grand jury may also investigate possible criminal activity through testimony of witnesses and obtaining records. The grand jury is comprised of 23 citizens from all over Wyoming who serve for a term of up to eighteen months.
The proceedings and deliberations of the grand jury are kept secret as provided by law. The United States Attorney’s Office presents evidence to the members of the grand jury who then deliberate to determine if the accused should stand trial for alleged crimes.
Grand jurors do not decide guilt or innocence, but merely evaluate the evidence to determine whether there is probable cause to believe a crime has been committed and that the accused person committed it. If the jury finds the charges should proceed against the accused, it returns what is referred to as a “true bill” approving the proposed indictment. Upon return of an indictment, the accused person is typically arrested, if not already in custody, and brought promptly before a federal judge for arraignment. At this stage, the accused person is advised of the charges and requested to enter a plea of not guilty or guilty. The federal judge will also advise the accused person of his or her rights, and, if necessary, set a trial date.
An indictment is an allegation of violation of federal criminal law, and the accused has the presumption of innocence and the right to a public and speedy trial.
Evans man indicted for possession of child pornographyRead the Press Release
AUGUSTA, GA: An Evans man has been indicted for possessing child pornography during a virtual session of the U.S. District Court grand jury necessitated by precautions due to the COVID-19 pandemic.
Oludare Oluwabusi, 43, of Evans, was indicted on one count of Possession of Child Pornography, a charge that carries a possible sentence of up to 20 years in federal prison, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. There is no parole in the federal system.
During a recent detention hearing, Oluwabusi appeared by video before U.S. District Court Magistrate Judge Brian K. Epps, who agreed to the prosecutor’s motion for Oluwabusi to remain in federal custody after hearing an FBI agent’s graphic description of child pornography found on at least three devices seized from Oluwabusi’s Riverwood Plantation home.
Oluwabusi was taken into custody in April after FBI agents searched his residence based on a cyber tip from the National Center for Missing and Exploited Children.
“Working with our federal, state and local law enforcement partners, we will continue to aggressively pursue those who would take advantage of our most vulnerable citizens – no matter whether that victimization occurs through a cyber connection or face-to-face,” said U.S. Attorney Christine.
“Even though we have had to make many adjustments during the COVID-19 pandemic, our commitment to pursue anyone who violates our laws and harms any of our citizens, particularly children, has not changed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta.
Criminal indictments contain only charges. Defendants are considered innocent unless and until proven guilty.
The FBI is investigating the case, which is being prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Duxbury Man Pleads Guilty to Child Pornography ChargeRead the Press Release
BOSTON – A Duxbury man pleaded guilty today to a child pornography offense.
Louis Ackerman Jr., 46, pleaded guilty during a videoconference hearing to possession of child pornography. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Sept. 21, 2020. Ackerman was arrested and charged in November 2019.
On Nov. 15, 2019, federal agents executed a federal search warrant at Ackerman Jr.’s home and located an iMac computer and two hard drives belonging to him. An onsite forensic review revealed images and videos of child pornography on that computer. From under Ackerman Jr.’s bed, agents also recovered DVDs and printed material, which depicted child pornography. Further review of the computer and other materials seized from the residence revealed approximately 295 videos of child pornography and approximately 322 images of child pornography, including prepubescent minors under the age of 12.
The charging statute provides for a sentence of up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Plymouth County District Attorney Timothy J. Cruz; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; Barnstable Police Chief Matthew Sonnabend; and Duxbury Police Chief Stephen McDonald made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Department of Justice Files Statement of Interest Challenging the Legality of Illinois Governor's Sweeping COVID-19 OrdersRead the Press Release
The Department of Justice today filed a statement of interest in an Illinois federal court in support of a lawsuit filed by Illinois state representative Darren Bailey challenging certain actions of Governor J.B. Pritzker in response to the COVID-19 pandemic.
The Statement of Interest is part of Attorney General William P. Barr’s April 27, 2020 initiative directing Assistant Attorney General Eric Dreiband for the Civil Rights Division, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
In response to the COVID-19 pandemic, the Governor of Illinois has, over the past two months, sought to rely on authority under the Illinois Emergency Management Agency Act to impose sweeping limitations on nearly all aspects of life for citizens of Illinois, significantly impairing in some instances their ability to maintain their economic livelihoods. According to the lawsuit, the Governor’s actions are not authorized by state law, as they extend beyond the 30-day time period imposed by the Illinois legislature for the Governor’s exercise of emergency powers granted under the Act.
Representative Bailey brought his case in Illinois state court and elected only to assert state law claims. On May 15, the presiding state court judge ordered Bailey to file his motion for summary judgment by May 18 and instructed the Governor to respond to it by May 21. A hearing on the motion for summary judgment was scheduled to take place in state court today. Yesterday, however, instead of responding to Bailey’s motion for summary judgment, the Governor removed the case to federal district court.
“The Governor of Illinois owes it to the people of Illinois to allow his state’s courts to adjudicate the question of whether Illinois law authorizes orders he issued to respond to COVID-19,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The United States Constitution and state constitutions established a system of divided and limited governmental power, and they did so to secure the blessings of liberty to all people in our country. Under our system, all public officials, including governors, must comply with the law, especially during times of crisis. The Department of Justice remains committed to defending the rule of law and the American people at all times, especially during this difficult time as we deal with COVID-19 pandemic.”
“However well-intentioned they may be, the executive orders appear to reach far beyond the scope of the 30-day emergency authority granted to the Governor under Illinois law,” said Steven D. Weinhoeft, the U.S. Attorney for the Southern District of Illinois. “Even during times of crisis, executive actions undertaken in the name of public safety must be lawful. And while the people of Illinois must be physically protected from the effects of this public health crisis, including by complying with CDC guidelines their constitutionally guaranteed rights and liberties must be safeguarded as well.”
In its statement of interest, the United States explains that this dispute belongs in Illinois state court, and that Representative Bailey has raised substantial questions as to whether the Governor’s current response to COVID-19 is lawful. Although the complaint does not raise any federal constitutional claims, the statement explains, “It is up to the Illinois courts to rule on Plaintiff’s claims, which, because of the sweeping nature of the Orders, may affect millions of lives and raise significant constitutional concerns in other litigation.” Even in the face of a pandemic, states must comply with their own laws in making these sensitive policy choices in a manner responsive to the people and, in doing so, both respect and serve the goals of our broader federal structure, including the guarantee of due process in the U.S. Constitution.
The federal case is Bailey v. Pritzker, No. 3:20-cv-474.
Crime Spree Leads to Eight Years in Federal Prison for Waterloo ManRead the Press Release
A Waterloo man who went on a crime spree as a teenager in February 2018, was sentenced today to eight years in federal prison. Griffin Riley Davis, age 20, received the prison term after a December 2, 2019 guilty plea to one count of possession of a firearm by a drug user.
At the guilty plea and sentencing hearings, Davis admitted that on January 21, 2018, when he was 18 years old, he was stopped for speeding in Black Hawk County, Iowa, and officers found an unloaded semiautomatic rifle with a high capacity magazine in his trunk at that time. Then, on February 5, 2018, and February 6, 2018, officers responded to shots fired incidents in Dysart and Waterloo, Iowa, respectively. Each incident involved residential homes in which people, including minors, were present. Officers found spent .40 caliber shell casings at each crime scene. On February 12, 2018, Davis was recorded in a phone call stating he was going to shoot a minor “and fan down everyone in her car.”
On February 20, 2018, officers stopped a car in Waterloo and saw Davis in the backseat. Officers smelled marijuana in the car and later found Davis hiding under a blanket. In the car, officers also found more than 40 grams of marijuana, a digital scale, and a loaded .40 caliber semiautomatic pistol. The pistol was recently stolen from a residence in Grundy County, Iowa. Later ballistics testing confirmed that the .40 caliber firearm was the same firearm that discharged at the residences in Dysart and Waterloo earlier that month.
Davis was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Davis was sentenced to 96 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.
Davis is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorneys Tim Vavricek and Justin Lightfoot, and investigated by the Federal Bureau of Investigation and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2045.
Follow us on Twitter @USAO_NDIA.
Chicago Man Arrested for Allegedly Selling Fentanyl-Laced HeroinRead the Press Release
CHICAGO — A Chicago man has been arrested on a federal complaint charging him with selling fentanyl-laced heroin on the city’s Southwest Side.
CHARLES KINDRED, 33, sold approximately 2.4 grams of the fentanyl-laced heroin during a meeting last month in a retail store parking lot in Chicago’s Ashburn neighborhood, according to a criminal complaint and affidavit filed in federal court. Unbeknownst to Kindred, the buyer was cooperating with law enforcement, who conducted surveillance on the transaction, the complaint states.
The complaint charges Kindred with one count of distribution of a controlled substance. Kindred was arrested Thursday morning and made an initial appearance in federal court Thursday afternoon. A detention hearing is set for May 26, 2020, at 8:45 a.m., before U.S. District Judge Matthew F. Kennelly.
The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. The Oak Lawn Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Shy Jackson.
The federal investigation remains ongoing.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The drug distribution charge is punishable by a maximum sentence of 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
California woman sentenced for meth trafficking in the Flathead ValleyRead the Press Release
MISSOULA—A California woman who admitted bringing methamphetamine to the Flathead Valley for distribution after officers found more than 10 pounds of the drug in her vehicle was sentenced today to six years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Kristal Patricia Leonard, 34, of Huntington Beach, CA, pleaded guilty in February to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
The prosecution said in court documents that on Sept. 19, 2019 near Lolo, during an undercover surveillance operation, Montana Highway Patrol officers searched a vehicle Leonard had been driving and recovered heroin and more than 10 pounds of meth. Ten pounds of meth is the equivalent of 36,240 doses. In addition, the Kalispell Police Department served a search warrant on Leonard's residence and recovered firearms, meth, a digital scale and paraphernalia. A confidential informant told law enforcement that Leonard distributed large amounts of meth in Lake and Flathead counties and would make one to two trips per months to pick up meth for re-distribution in Montana. The informant personally distributed meth for Leonard.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Northwest Drug Task Force and Homeland Security Investigations.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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California Parent Charged and Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – A California man has been charged and will plead guilty to using fraud and bribery to facilitate his child’s acceptance to Georgetown University.
Peter Dameris, 60, of Pacific Palisades, Calif., will plead guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. A plea hearing has not yet been scheduled by the Court.
According to the terms of Dameris’ plea agreement, the government will recommend a sentence of time served, 21 months of home confinement, a fine of $95,000 and restitution. Dameris is the 25th parent to plead guilty in this case.
As set forth in the charging documents, Dameris agreed with William “Rick” Singer to pay an amount, ultimately totaling $300,000, to Singer’s purported charity, the Key Worldwide Foundation (“KWF”), knowing that the money would be used to facilitate Dameris’s son’s purported recruitment to Georgetown University as a tennis player, even though he did not play tennis competitively. Singer previously pleaded guilty and is cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
Bristol Man Charged with Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NEVILLE WALTERS, 32, of Bristol, was arrested today on a criminal complaint charging him with gun and drug offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Walters was presented in court via videoconference. U.S. Magistrate Judge Thomas O. Farrish ordered Walters detained pending a detention hearing that is scheduled for May 26.
As alleged in the criminal complaint, in the early morning hours of April 4, 2020, Bristol Police received reports of gunshots being fired in the area of Davis Drive. Analysis of security video from a nearby residence revealed that the shots were fired from a light-colored Cadillac as it approached the intersection of Davis Drive and Jerome Avenue. Seven .40 caliber shell casings were recovered from the scene. Later that morning, officers responded to a report of a disturbance at Walters’ residence on Prospect Street and observed a beige Cadillac with other features matching the description of the car that was involved in the shooting incident. Walters departed the residence before officers could question him.
It is also alleged that, in the early evening of April 4, Farmington Police were called to local gas station on a report of a burning vehicle. Responding officers stopped Walters and an associate as they walked away from the gas station. Walters was arrested on state charges after officers recovered a loaded .40 caliber handgun and a small amount of marijuana on the ground nearby.
It is further alleged that, after Walters’ state arrest and while he was released on bond, Walters posted on his Instagram page multiple images of him in possession of firearms. On May 12, 2020, Bristol Police executed a state search warrant at Walters’ residence and seized two handguns, a high-capacity magazine, marijuana, items used to process and package drugs for street sale, and other items. Investigators also seized $2,827 from Walters’ person. Walters was arrested on state charges and was again released on bond.
The affidavit alleges that law enforcement received a report that, on approximately May 14, 2020, Walters brandished a firearm during an argument outside of his residence.
It is alleged that Walters’ criminal history includes multiple convictions for felony offenses.
The complaint charges Walters with possession of firearms by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and possession with intent to distribute controlled substances, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bristol Police Department and the Farmington Police Department. The case is being prosecuted by Assistant U.S. Attorney Margaret Donovan.
Arizona Man Pleads Guilty to Transporting Fentanyl Through KC to New YorkRead the Press Release
KANSAS CITY, Mo. – A Nogales, Arizona, man pleaded guilty in federal court today to his role in a conspiracy to transport large amounts of fentanyl through Kansas City, Missouri, en route to New York City aboard passenger busses.
Alejandro Rocha, also known as Alejandro Teran, 21, pleaded guilty before U.S. District Judge Greg Kays to participating in a conspiracy to distribute fentanyl.
By pleading guilty today, Rocha admitted that, on two separate occasions, he attempted to transport more than three kilograms of fentanyl through Kansas City en route to New York City.
Rocha admitted that he gave more than three kilograms of fentanyl to his girlfriend, Esmeralda Castro, 21, of Perris, California, to carry aboard a bus to New York City. Three fentanyl bricks were placed in a false compartment inside a rolling bag. Castro, who has also pleaded guilty, was arrested at a Kansas City bus station on May 8, 2017, after a police service canine alerted to the bag.
Rocha also admitted that he gave another person 3.6 kilograms of fentanyl to carry aboard a bus from Denver, Colorado, to New York City. However, the bag became separated from the courier at some point on the bus trip. The bag arrived unaccompanied at a Kansas City bus station, where it was intercepted by police.
Under federal statutes, Rocha is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
21 May 2020
Wethersfield Man Charged with Trafficking FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in New Haven returned an indictment yesterday charging FABIO VARGAS-GONZALEZ, 44, of Wethersfield, with trafficking fentanyl.
As alleged in court documents, the DEA’s Hartford Task Force developed information that Vargas-Gonzalez was involved in narcotics trafficking activities in the Hartford area. On March 11, 2020, investigators conducted surveillance of Vargas-Gonzalez as he drove a minivan from Connecticut to New Jersey and then back to Connecticut. In Danbury, investigators stopped Vargas-Gonzalez’s minivan for a motor vehicle violation and, after Vargas-Gonzalez consented to a search, found approximately two kilograms of fentanyl hidden in the minivan’s spare tire compartment.
The indictment charges Vargas-Gonzalez with one count of possession with intent to distribute 400 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of 10 years a maximum term of imprisonment of life.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Vargas-Gonzalez, who was originally charged by criminal complaint, is currently released on a $175,000 bond.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Washington Co. Woman Pleads Guilty in Conspiracy to Transport Fentanyl and Heroin from Central PA to Western PA for DistributionRead the Press Release
PITTSBURGH, PA - A resident of Washington County, Pennsylvania, pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Breanna M. Bane, age 27, of Fredericktown, Pennsylvania, pleaded guilty yesterday o one count of conspiring to possess with intent to distribute and distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and heroin before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, Ms. Bane admitted that in and around March 2019, and continuing through May of 2019, she conspired with Harvey G. Hicks, Matthew L. Pearson, and with other persons both known and unknown, to possess with intent to distribute and distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and heroin. The Court was advised that in March, April, and May 2019, agents with the Federal Bureau of Investigation and the Pennsylvania State Police surveilled Ms. Bane and her alleged co-conspirators travel from the Western District of Pennsylvania to areas in and around Harrisburg and Hershey, Pennsylvania, where they met with source(s) of supply of fentanyl and heroin, which they trafficked to the Western District of Pennsylvania for redistribution. The Court was advised that on May 1, 2019, agents followed Ms. Bane and her alleged co-conspirators from Hershey, Pennsylvania, to the Monroeville area, at which time agents recovered approximately 625 "bricks" of heroin and fentanyl (which is more than 31,000 individual dosage units) following a search of vehicles and residences associated with Ms. Bane and her alleged co-conspirators. In connection with the plea, Ms. Bane admitted that these narcotics were intended for further distribution in the Western District of Pennsylvania.
Senior Judge Conti scheduled sentencing for September 9, 2020, at 1:30 p.m. The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police Drug Law Enforcement Division conducted the investigation that led to the prosecution of Ms. Bane.
U.S. Attorney William M. McSwain Announces Charges and Guilty Plea of Former Philadelphia Judge of Elections Who Committed Election FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Domenick J. DeMuro, 73, of Philadelphia, PA, a former Judge of Elections for the 39th Ward, 36th Division in South Philadelphia, has been charged and has pled guilty to a two-count Information charging (1) conspiracy to deprive Philadelphia voters of their civil rights by fraudulently stuffing the ballot boxes for specific Democratic candidates in the 2014, 2015, and 2016 primary elections, and (2) a violation of the Travel Act, which forbids the use of any facility in interstate commerce (here, a cell phone) with the intent to promote certain illegal activity (here, bribery). U.S. Attorney McSwain’s video statement providing additional details about this case is available on the Office website here: https://www.justice.gov/usao-edpa/video/united-states-attorney-william-m-mcswain-announces-guilty-plea-former-philadelphia.
The Judge of Elections is an elective office and a paid position. In that role, DeMuro was responsible for overseeing the entire election process and voter activities of his Division. The Judge of Elections is charged with overseeing the Division’s polling place in accordance with federal and state election laws and is required to attend Election Board Training conducted by the Philadelphia City Commissioners.
The voting machines at each polling station, including DeMuro’s station, generate records in the form of a printed receipt documenting the use of each voting machine. The printed receipt, also known as the “results receipt,” shows the vote totals, and the Judge of Elections and other Election Board Officials at each polling place attest to the accuracy of machine results.
During his guilty plea hearing, DeMuro admitted that an unnamed political consultant gave DeMuro directions and paid him money to illegally add votes for certain Democratic candidates. These candidates were individuals running for judicial office whose campaigns had hired the consultant, as well as other candidates for various federal, state, and local elective offices who were preferred by this consultant for a variety of reasons.
The political consultant would solicit monetary payments from his clients in the form of cash or checks as “consulting fees,” and then use portions of these funds to pay Election Board Officials, including DeMuro, in return for tampering with the election results. After receiving payments ranging from between $300 to $5,000 per election from the consultant, DeMuro would add fraudulent votes on the voting machine – also known as “ringing up” votes – for the consultant’s clients and preferred candidates, thereby diluting and distorting the ballots cast by actual voters. DeMuro would add these fraudulent votes to the totals during Election Day, and then would later falsely certify that the voting machine results were accurate.
“DeMuro fraudulently stuffed the ballot box by literally standing in a voting booth and voting over and over, as fast as he could, while he thought the coast was clear. This is utterly reprehensible conduct. The charges announced today do not erase what he did, but they do ensure that he is held to account for those actions,” said U.S. Attorney McSwain. “Voting is the cornerstone of our democracy. If even one vote is fraudulently rung up, the integrity of that election is compromised. I want the public to know that this investigation is active and ongoing, and my Office is taking every possible step that we can to ensure the integrity of the upcoming primary and general elections in the nine counties of the Eastern District of Pennsylvania.”
“This defendant abused his office by engaging in election fraud for profit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s conviction makes it clear that the Department of Justice will do all in its power to protect the integrity of elections and maintain public confidence in all levels of elected government.”
“Domenick DeMuro put a thumb on the scale for certain candidates, in exchange for bribes,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “As public trust in the electoral process is vital, the FBI’s message today is clear: election interference of any kind, by hostile foreign actors or dishonest local officials, won’t be tolerated. This is an active, ongoing investigation and we're asking anyone with information on election fraud to contact the FBI.”
“The citizenry of the City of Philadelphia, as well as this Commonwealth and these United States, needs to be confident in the integrity of our elections,” said Captain Leo Hannon, Director of the Pennsylvania State Police, Special Investigations Division. As this investigation clearly illustrates, the Pennsylvania State Police will relentlessly pursue any breach of the sacred trust bestowed upon our public officials. Our agency is proud to partner with the Federal Bureau of Investigation, the United States Attorney’s Office, and the United States Department of Justice as a whole to root out corruption at any level of our government. Matters of public corruption and public integrity have been, and shall remain, a top priority of the Pennsylvania State Police.”
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorney Eric L. Gibson and Richard C. Pilger, U.S. Department of Justice, Director of Elections Crimes Branch, Criminal Division, Public Integrity Section.
U.S. Attorney J. Douglas Overbey Announces $57,554 Award to Address Covid-19 Pandemic in TennesseeRead the Press Release
Knoxville, Tenn. – U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee today announced that Hamilton County received $57,554 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. Other jurisdictions can determine if they are eligible for funds and may apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“As this country continues to fight COVID-19, our office remains committed to deterring, investigating, and prosecuting those who seek to take advantage of the COVID-19 pandemic. This funding will help many of the communities struggling in these trying times and provide some much-needed relief to our district,” said U.S. Attorney Overbey.
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude using these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
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.
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Two Southern California Men Sentenced to over 13 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Stephen Mark Cox, age 57, of Beverly Hills, California, was sentenced on May 14, 2020 to 120 months in federal prison followed by five years of supervised release on one count of Possession with Intent to Distribute more than 5 Kilograms of Cocaine and Scott Samuel Green, age 40, of Los Angeles, California, was sentenced on May 20, 2020 to 46 months in federal prison followed by three years of supervised release on one count of Conspiracy to Possess with Intent to Distribute Cocaine. The Honorable Judge P. K. Holmes III presided over the sentencing hearings in the United States District Court in Fort Smith.
On April 17, 2019, an Arkansas State Trooper was on duty and working on Interstate 40 in Crawford County, Arkansas. The Trooper observed a white SUV commit a traffic offense and initiated a traffic stop. The Trooper made contact with Green (the driver) and Cox (the passenger) and proceeded to interview them. After the interview and receiving consent to search the vehicle, the Trooper searched the vehicle and located approximately 17 kilograms of suspected cocaine. The suspected cocaine field tested positive for cocaine.
Cox and Green were indicted by a federal grand jury in May 2019 and entered guilty pleas in December 2019.
This case was investigated by the Arkansas State Police and the Drug Enforcement Administration. Assistant United States Attorneys Candace Taylor and Aaron Jennen prosecuted the case for the Western District of Arkansas.
Toledo man indicted for distribution of child pornography and exploitation of a minorRead the Press Release
The U.S. Attorney’s Office for the Northern District of Ohio announced today that a federal grand jury returned a two-count indictment charging Thomas Daniel Johnson, age 34, of Toledo with sexual exploitation of a minor and receipt and distribution of child pornography.
According to the criminal complaint filed in the matter, the defendant was believed to have been engaged in the distribution of online child pornography and was attempting to facilitate sexual encounters with a minor who occasionally stayed at his residence. On November 22, 2019, federal investigators and members of the Child Exploitation and Human Trafficking Taskforce executed a search warrant at the defendant’s residence. During the search, law enforcement seized several electronic devices that were later discovered to contain large amounts of child pornography.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigation was conducted by the FBI and the Toledo Police Department, as part of a state-federal task force on child exploitation. This case is being prosecuted by Assistant United States Attorney Tracey B. Tangeman.
Three Wheeling residents and a Columbus man admit to their roles in a drug distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Four people have admitted to drug distribution in the Wheeling area, U.S. Attorney Bill Powell announced.
Kayla Lallathin, also known as “Cat,” of Wheeling, pled guilty to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances” and one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location.” Lallathin, age 29, admitted to conspiring with others to sell crack cocaine, methamphetamine, heroin, and fentanyl from September 2018 to June 2019 in Ohio County. She also admitted to selling methamphetamine near Luau Manor in Ohio County in March 2019.
Duane Green, also known as “Rick,” of Columbus, Ohio, pled guilty today to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location.” Green, age 34, admitted to selling methamphetamine near Luau Manor in Ohio County in April 2019.
Charles Cesar Ansley, Jr., also known as “Mike,” of Wheeling, pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location.” Ansley, age 40, admitted to selling methamphetamine near Luau Manor in Ohio County in March 2019.
Audie Fry, also known as “Ott,” of Wheeling, pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location.” Fry, age 63, admitted to selling methamphetamine near Luau Manor in Ohio County in April 2019.
Lallathin faces up to 20 years incarceration and a fine of up to $1,000,000 for the conspiracy charge. Lallathin, Green, Cesar, and Fry each face at least one and up to 40 years incarceration and a fine of up to $2,000,000 for the aiding and a abetting charge. 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 cases 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.
Texas Woman Pleads Guilty to Narcotics and Money Laundering Conspiracy Charges for Opioid Pill Mill that Shipped Drugs InterstateRead the Press Release
LOS ANGELES – A Texas woman who helped lead an interstate narcotics trafficking ring pleaded guilty today to federal criminal charges arising out of an opioid buy-back scheme in which a doctor at a Los Angeles clinic prescribed opioids to putative patients that the clinic bought back and sold on the black market in California and Texas.
Angela Gillespie-Shelton, a.k.a. “Boss Lady” and “Angotti”, 54, of Houston, pleaded guilty to one count of conspiracy to distribute controlled substances and one count of conspiracy to engage in money laundering.
According to her plea agreement, from October 2012 to January 2015, Gillespie-Shelton and her co-conspirators ran Southfork Medical Clinic, located in the Harvard Heights neighborhood of Los Angeles. At the time, Gillespie-Shelton primarily was based in Texas, but she frequently traveled to California.
At the clinic, Gillespie-Shelton’s co-conspirator – Dr. Madhu Garg, 69, of Glendora – saw “patients” and regularly prescribed them narcotics. The drugs included oxycodone and hydrocodone (commonly sold under the brand names Vicodin, Norco and Lortab), alprazolam (best known by the brand name Xanax), carisoprodol (a muscle relaxant sold under the brand name Soma) and promethazine with codeine (a cough syrup sold on the street as “purple drank” and “sizzurp”). After the “patients” filled the prescriptions, Gillespie-Shelton and her co-conspirators bought the drugs from their “patients” and shipped them to Texas, where they were sold on the black market. Gillespie-Shelton’s co-conspirators also stole a physician’s identity to issue falsified prescriptions to obtain additional narcotics.
In Texas, Gillespie-Shelton used two pharmacies that she controlled as a front to sell the drugs shipped from Southfork on the black market. Under Gillespie-Shelton’s control, the pharmacies in Texas also filled false or fraudulent prescriptions and received kickbacks from the fake prescriptions.
Gillespie-Shelton also laundered more than $1 million from the diversion schemes through numerous accounts. She used some of the money to further the narcotics trafficking conspiracy, which included paying rent for the Southfork Clinic and a stash house in Los Angeles, as well as paying Garg more than $200,000 for writing the illegal prescriptions.
Garg pleaded guilty in February 2016 to illegally distributing oxycodone and money laundering, and she served an 18-month prison sentence.
United States District Judge John A. Kronstadt has scheduled an October 1 sentencing hearing, at which time Gillespie-Shelton will face a statutory maximum sentence of 40 years in federal prison.
The case against Gillespie-Shelton was investigated by the Drug Enforcement Administration, IRS Criminal Investigation, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the California Department of Justice, and the Texas Department of Public Safety. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force.
The prosecution of Gillespie-Shelton is being handled by Assistant United States Attorney Chelsea Norell of the International Narcotics, Money Laundering, and Racketeering Section.
Ten Indicted following Greater Pittsburgh Safe Streets Task Force Investigation into Drug Trafficking in Pittsburgh and BeyondRead the Press Release
PITTSBURGH, PA – Ten residents of Allegheny County, Pennsylvania, have been charged in three separate, but related, Indictments with violations of the federal narcotics and firearms laws, following a months-long investigation into narcotics trafficking in the City of Pittsburgh and greater Allegheny County region, United States Attorney Scott W. Brady announced today. The Indictments, returned on May 19, are related to the narcotics trafficking activities of several associates of a neighborhood street gang known as "11 Hunnit" operating in the Hill District neighborhood of Pittsburgh and beyond.
The first Indictment charges the following individuals with conspiring to distribute and to possess with intent to distribute 28 grams or more of cocaine base (in the form commonly known as "crack") in the Western District of Pennsylvania, from in and around January 2020, and continuing thereafter until in and around May 2020:
• Phillip Robinson (aka "Pape"), age 30, of Pittsburgh, PA;
• Joseph Clancy, age 46, of Pittsburgh, PA;
• Tyree Campbell, age 29, of Pittsburgh, PA;
• Tracy Bullock, age 51, of McKees Rocks, PA; and
• Sanzio Williams, age 31, of Pitcairn, PA.
The second Indictment charges the following individuals with conspiring to distribute and to possess with intent to distribute a quantity of heroin in the Western District of Pennsylvania from in and around February 2020, and continuing thereafter until March 2020:
• Andre Moore-Coleman (aka "Drizz"), age 31, of Pittsburgh, PA;
• James Bryant Jr., age 52, of McKees Rocks, PA.
This Indictment additionally charges James Bryant Jr. with possession of a firearm and ammunition by a convicted felon on May 13, 2020.
The third Indictment charges the following individuals with conspiring to distribute and to possess with intent to distribute 28 grams or more of crack cocaine in the Western District of Pennsylvania, from in and around December 2019, and continuing thereafter until January 2020:
• Ronald Lewis III, age 32, of Turtle Creek, PA;
• Victor Simmons, age 24, of Pittsburgh, PA;
• Derek Calloway, age 26, of Pittsburgh, PA.
This Indictment additionally charges Ronald Lewis, III and Derek Calloway with one count each of possession of a firearm and ammunition by a convicted felon on May 13, 2020.
With respect to Defendants Robinson, Clancy, Campbell, Bullock, Williams, Lewis III, Simmons, and Calloway, each of whom is charged with conspiring to distribute and possess with intent to distribute 28 grams or more of crack cocaine, the law provides for a maximum total sentence of not less than five years and up to 40 years of imprisonment, a fine up to $5,000,000, or both. With respect to Defendants Moore-Coleman and Bryant Jr., both of whom are charged with conspiring to distribute and possess with intent to distribute a quantity of heroin, the law provides for a maximum sentence of not more than 20 years imprisonment, a fine not to exceed $1,000,000 or both. With respect to the firearms/ammunition charges for Defendants Brant and Calloway, the law provides for a maximum today sentenced of not more than 10 years and a fine of not to exceed 250,000 or both. For Defendant Lewis III, the law provides for a sentence of not less than 15 years’ to life imprisonment, and a fine of not to exceed 250,000 or both. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Pittsburgh Bureau of Police (Bureau of Narcotics Investigations) led the multi-agency investigation that also included the Allegheny County Sheriff’s Office and the Pennsylvania Office of the Attorney General.
This Greater Pittsburgh Safe Streets Task Force investigation was funded by the federal Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.