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21 May 2020
Man from To’Hajiilee charged with aggravated assault for beating man with baseball bat in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Luke Avery Platero, 29, appeared in federal court today on a criminal complaint charging him with assault resulting in serious bodily injury in Indian Country.
According to the complaint, Platero committed the offense on May 10 in Cibola County, New Mexico. Platero allegedly threw a rock at the victim hitting the victim in the head. Platero allegedly then struck the victim in the head, arms, and legs with a baseball bat causing a concussion and internal and external bleeding. The victim was rushed to the hospital by ambulance following the assault and needed emergency surgery for his injuries. Both Platero and the victim are members of the Navajo Nation.
Platero is currently out of custody awaiting trial. He faces up to ten years in prison if convicted of the charged offense. Complaints are only allegations. A defendant is presumed innocent unless and until proven guilty.
The Albuquerque office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Frederick Mendenhall is prosecuting the case.
Man from Farmington, New Mexico pleads guilty to firearm possession in federal courtRead the Press Release
ALBUQUERQUE, N.M. – Rafael Almeida, 42, of Farmington, New Mexico, pleaded guilty in federal court in Albuquerque on May 20 to possessing a firearm during a drug trafficking crime.
In Almeida’s plea agreement, he admitted committing this offense in Farmington, New Mexico on Nov. 5, 2019. Almeida possessed bags of methamphetamine while riding in a truck to a hotel. Almeida kept the drugs within reach between the passenger seat and center console. The drugs were individually packaged and Almeida intended to sell them. Almeida kept a loaded pistol on top of the drugs for his protection while trafficking these drugs.
Almeida is currently in custody awaiting sentencing. He faces from five years to life in prison for this offense.
The FBI investigated this case with the New Mexico Region II Narcotics Task Force, including members of the Farmington Police Department and San Juan County Sheriff’s Office. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Man Sentenced in Seizure of 80 Kilograms of Cocaine and $2 MillionRead the Press Release
RALEIGH, N.C. – A California man was sentenced today to 96 months in prison for possession with intent to distribute five (5) kilograms or more of cocaine, aiding and abetting.
According to court documents, Andrew Richard Rodarte, 73, was observed driving a semi-truck to a home under investigation in Littleton, North Carolina. Rodarte was observed meeting with individuals at that home that unloaded duffle bags from the semi-truck. After leaving the home, Rodarte drove to a nearby truck stop. Law enforcement executed a search warrant at the home where they located Luis Enrrique Arroyo-Jimenez and seized duffle bags containing a total of 80 kilograms of cocaine. Officers located Rodarte at a truck stop in Halifax County and searched Rodarte’s semi-truck where they found $2,055,141 in United States currency located in a hidden compartment.
On September 24, 2019, Rodarte pled guilty to possession with intent to distribute five (5) kilograms or more of cocaine, aiding and abetting. On November 7, 2019, Arroyo-Jimenez pled guilty to possession with intent to distribute five (5) kilograms or more of cocaine, aiding and abetting, and will be sentenced in June 2020.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. The Drug Enforcement Administration (DEA) and the Halifax County Sheriff’s Office investigated the case and Assistant U.S. Attorney Dena King 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. 4:19-CR-48-D.
Maine Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD - Michael Mowry, 43, of Acton, Maine pleaded guilty in federal court to possessing methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in May of 2018, a New Hampshire State Police trooper pulled over a vehicle on I-95 in Portsmouth, New Hampshire for multiple traffic violations. Mowry was a passenger in the vehicle. The trooper developed suspicions about drug activity and called for a narcotics detection dog. The dog alerted to the odor of narcotics. After the trooper advised the driver of the detection of narcotics, Mowry admitted to the trooper that there was methamphetamine in a backpack in the rear seat. The backpack contained 755 grams of methamphetamine.
Mowry is scheduled to be sentenced on August 27, 2020.
“Interstate drug trafficking threatens the health and safety of citizens throughout New England,” said U.S. Attorney Murray. “Those who sell methamphetamine and other dangerous drugs are putting our friends and neighbors in jeopardy. In order to protect our community, we will continue to work closely with our law enforcement partners to identify and prosecute those who participate in the drug trade.”
This matter was investigated by the Drug Enforcement Administration and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Macy Man Sentenced to 36 Months for AssaultRead the Press Release
United States Attorney Joe Kelly announced that Lorenzo Cook, 36, of Macy, Nebraska, was sentenced on May 21, 2020 in federal court in Omaha for Assault Resulting in Serious Bodily Injury. United States Judge Brian C. Buescher sentenced Cook to 36 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Cook will be on supervised release for 1 year.
In June 2019, officers with the Omaha Nation Law Enforcement Services responded to a call regarding a fight taking place outdoors in Macy, Nebraska. Upon arrival, officers located an unconscious male with injuries to his face and head. The male was taken to the hospital for treatment. A witness reported seeing Lorenzo Cook stomping on the victim’s face and head. Federal agents later learned the assault had been captured on surveillance video. The video recording showed Cook punch the victim once in the face, causing the victim to immediately fall to the ground, unconscious. Cook then continued to punch, kick, and stomp the victim in the head and face while the victim was unconscious.
This case was investigated by Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
Louisiana Man Sentenced for Business Email Compromise SchemeRead the Press Release
BOSTON – A Louisiana man was sentenced today in connection with an international business email compromise scheme that defrauded companies of almost $900,000.
Larry Brown Jr., 37, of Lafayette, La., was sentenced during a videoconference to time-served (approximately 10 months in prison), three years of supervised release and ordered to pay restitution and forfeiture of $10,425. In April 2020, Brown pleaded guilty before U.S. District Court Judge Denise J. Casper to conspiracy to commit wire fraud. In April 2019, Brown was charged with co-defendant Paul M. Iwuanyanwu, 39, of Medfield.
Brown and, allegedly, Iwuanyanwu worked with others who breached the email systems of companies and installed unauthorized computer programs that diverted company emails to accounts controlled by the conspirators. As a result, emails sent by or to the companies were first routed through the email accounts where conspirators could view the messages. Conspirators also had the ability to send and respond to emails as if they were representatives of the companies.
It is alleged that conspirators used this unauthorized access to companies’ email accounts to cause the companies to redirect payments intended for legitimate business operations to bank accounts controlled by Brown and Iwuanyanwu.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom, of Lelling’s Securities & Financial Fraud Unit and Carol Head, of Lelling’s Asset Recovery Unit, are prosecuting the case.
The details contained in the indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lexington Man Pleads Guilty to Escaping Federal CustodyRead the Press Release
LEXINGTON, Ky. - A Lexington man, Billy J. Earls, 35, pleaded guilty in federal court on Thursday, before U.S. District Judge Karen K. Caldwell, to escaping federal custody.
In his guilty plea agreement, Earls admitted that he absconded from a residential confinement center, where he had been sentenced to serve 18 months for a supervised release violation. Earls was confined to Dismas Charities, a residential center located in Fayette County, to serve the remainder of his federal sentence. On February 11, 2020, the U.S. Marshals Service was notified that Earls had left the center, without permission. He was found, three days later, by law enforcement in Campbell County, Kentucky.
Earls was indicted in March 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Norman E. Arflack, U.S. Marshal for the Eastern District of Kentucky, jointly announced the guilty plea.
The investigation was conducted by the U.S. Marshals Service. The United States was represented by Assistant U.S. Attorney Emily K. Greenfield.
Earls is scheduled to be sentenced on July 21, 2020. He faces up to five years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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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La Crosse Man Sentenced to More Than 9 Years for Methamphetamine CrimeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jack Taylor, 35, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James Peterson to 114 months in federal prison for possessing methamphetamine with intent to distribute. Taylor pleaded guilty to this charge on January 9, 2020.
On July 24, 2019, La Crosse police officers executed a search warrant at Taylor’s residence in La Crosse. Inside the residence, officers found over 100 grams of methamphetamine, a drug ledger, and a digital scale. At the time officers executed the search warrant, Taylor was on bond from a felony drug trafficking case in La Crosse County and two separate drug trafficking cases in Houston County, Minnesota. In addition, Taylor was on supervision in Houston County from a felony conviction for fleeing a peace officer in a motor vehicle.
In imposing the sentence, Judge Peterson noted that Taylor has a disturbing criminal history, including multiple violent felony convictions, and was involved in selling a large amount of methamphetamine to the La Crosse community. Judge Peterson also expressed his displeasure that Taylor continued to sell methamphetamine even after an arrest in La Crosse in January 2019 for methamphetamine trafficking. In total, Taylor’s criminal history includes 14 prior felony convictions.
The charge against Taylor was a result of an investigation conducted by the La Crosse Police Department, La Crosse County Sheriff’s Office, and Winona (Minnesota) Police Department. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Jefferson County Man Indicted for Soliciting Murder-For-HireRead the Press Release
BEAUMONT, Texas – A 46-year-old Port Arthur, Texas man has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Santos Orellana-Hernandez was indicted by a federal grand jury on May 20, 2020 and charged with the use of interstate commerce facilities in the commission of murder-for-hire.
According to the indictment, from January 17, 2020 until March 18, 2020, in the Eastern District of Texas and elsewhere, Orellana-Hernandez used a telephone to solicit the murder of two persons in violation of the laws of the United States.
If convicted, Orellana-Hernandez faces up to 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Inland Empire Man Arrested on Wire Fraud Charge that He Engineered $10 Million Ponzi Scheme Targeting Elderly and Retired VictimsRead the Press Release
RIVERSIDE, California – A Riverside County man was arrested this morning on a federal criminal complaint alleging he swindled dozens of his clients, many of them elderly retirees, in a long-running Ponzi scheme that took in more than $10 million in victim-investor money.
Paul Horton Smith Sr., 56, of Moreno Valley, was taken into custody today by the FBI and is expected to make his initial appearance this afternoon in United States District Court in Los Angeles.
The complaint charges Smith with one count of wire fraud, a crime that carries a statutory maximum sentence of 20 years in federal prison.
According to the affidavit filed with the complaint, from at least 2013 until the present, Smith offered 75 clients an investment he called “Northstar,” which he said was a private annuity contract that was a safe alternative to the stock market and provided a generous annual rate of return of between 5 percent and 6 percent. Instead, Smith used his victim investors’ money as lulling payments to earlier investors.
Smith, who advertised himself on his website as a chartered senior financial planner, is the owner of several businesses in the Riverside area, including Planning Services, Inc. and Northstar Communications LLC.
He also conducted free seminars via Planning Services at various locations around the Riverside area where he discussed estate planning, trust creation to protect assets, and other financial matters. Smith solicited some of his victims at this seminar, the affidavit states.
One victim, a 70-year-old woman who had known Smith from their mutual church association in the 1990s, sold a home in Arizona in August 2016 and wrote a $175,000 check to Northstar for investment. Instead of investing the victim’s money, Smith transferred her funds to other investors and he used her money to pay off the other investors’ tax bills with the IRS and the Franchise Tax Board, according to the affidavit.
In November 2019, another victim, an 86-year-old woman who had known Smith for many years, invested approximately $169,126 in Northstar from the sale of a rental property. The following day, Smith took $134,863 of the victim’s money to pay off another victim investor.
A review of bank records show that these victims have transferred more than $10 million to Smith’s business entities since 2013 and there is evidence that this scheme goes back to the early 2000s, according to the affidavit.
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 FBI investigated this matter. The Securities and Exchange Commission provided substantial assistance.
This case is being prosecuted by Assistant United States Attorney Benjamin J. Weir of the Riverside Branch Office.
Illegal possession of firearms sends Columbia Falls man to prisonRead the Press Release
MISSOULA—A Columbia Falls man who was on state probation was sentenced today to two years in prison and three years of supervised release for illegally possessing firearms and ammunition, U.S. Attorney Kurt Alme said.
George Harrison Burger, 50, pleaded guilty in February to prohibited person in possession of firearms.
U.S. District Judge Donald W. Molloy presided.
In court records filed in the case, the prosecution said that in December 2018, officers from the Flathead County Sheriff's Office and Montana Probation and Parole conducted a probation search of Burger's residence as a condition of his probation. Law enforcement recovered nine firearms and multiple rounds of ammunition. Burger had prior convictions that prohibited him from possessing firearms.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Flathead County Sheriff's Office and Montana Probation and Parole.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Gang Member Pleads Guilty to Distributing Crack Cocaine in Public Housing DevelopmentRead the Press Release
BOSTON – A man identified as a member of the Heath Street Gang pleaded guilty today to charges of distributing crack cocaine in a public housing development.
Michael Pridgen, 36, pleaded guilty during a videoconference hearing to two counts of distribution and possession with intent to distribute crack cocaine, one count of possession with intent to distribute crack cocaine and fentanyl, and one count of distribution and possession with intent to distribute crack cocaine in a public housing development. U.S. District Court Judge Richard G. Stearns will schedule sentencing at a later date. Pridgen has been detained since his arrest on Sept. 10, 2019.
Pridgen distributed crack cocaine in and around the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development, in Boston on June 5, 2019 and July 2, 2019. In the June 5, 2019, incident, Pridgen stored the crack cocaine and a digital scale in an electrical box affixed to the wall in the stairwell of the public housing complex. Both transactions occurred in common stairwells in the complex. At the time of his arrest on Sept. 10, 2019, Pridgen was found on a bench in a courtyard at the Mildred C. Hailey Apartments, in possession of a distributable-quantity of crack cocaine and fentanyl. Although Pridgen has been identified by law enforcement as a member of the Heath Street Gang, he was living in Westborough at the time of these incidents.
The charge of distributing or possessing with intent to distribute a controlled substance provides for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. The charge of distributing or possessing with intent to distribute controlled substances in a public housing development provides for a mandatory minimum sentence of one year and up to 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of up to $2 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Frankfort Man Indicted for Assaulting and Threatening to Kill FBI AgentsRead the Press Release
LEXINGTON, Ky.- A Frankfort, Ky., man was indicted on Thursday for assaulting and threatening to kill special agents with the Federal Bureau of Investigation.
A federal grand jury in Lexington returned an indictment charging 29 year-old Phillip E. Morris with one count of knowingly and intentionally assaulting, impeding or resisting FBI special agents, in the performance of their official duties. The indictment also alleges that Morris knowingly and intentionally threatened to murder FBI special agents, with the intent to impede, intimidate, or interfere with them while they were engaged in the performance of their official duties.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Louisville Field Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by the FBI. The indictment was presented to the grand jury by Assistant U.S. Attorney Roger West.
A date for Morris’s to appear in court has not yet been scheduled. He faces a maximum sentence of 20 years in prison, and a maximum fine of $250,000. However, any sentence following a conviction would be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Four Oaks Man Sentenced in Seizure of 1 Kilogram of Heroin in Nash CountyRead the Press Release
RALEIGH, N.C. – A Four Oaks, NC man was sentenced today to 48 months in prison for possession with intent to distribute one (1) kilogram or more of heroin, aiding and abetting.
According to court documents, Luis Octavio Gonzalez-Gonzalez, 32, was the driver of a car stopped in Nash County for traffic violations. Officers immediately observed marijuana in the car and Gonzalez-Gonzalez and his two passengers gave conflicting stories about where they had traveled. Upon a search of the trunk of the vehicle, officers located over 1,400 grams of heroin.
On September 24, 2019, Gonzalez-Gonzalez pled guilty to possession with intent to distribute one (1) kilogram or more of heroin, aiding and abetting.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. The Drug Enforcement Administration (DEA), the Nash County Sheriff’s Office, and the North Carolina State Crime Laboratory investigated the case and Assistant U.S. Attorney Dena King 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. 4:19-CR-48-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Philadelphia Judge of Elections Convicted of Conspiring to Violate Civil Rights and BriberyRead the Press Release
A former Judge of Elections has been convicted for his role in accepting bribes to cast fraudulent ballots and certifying false voting results during the 2014, 2015, and 2016 primary elections in Philadelphia.
Domenick J. Demuro, 73, of Philadelphia, Pennsylvania, pleaded guilty during a sealed proceeding on March 16, 2020, before U.S. District Judge Paul S. Diamond to conspiring to deprive persons of civil rights, and using interstate facilities in aid of bribery. The court unsealed the matter today. Sentencing is scheduled for June 30, 2020.
During his guilty plea hearing, Demuro admitted that while serving as an elected municipal Judge of Elections, he accepted bribes in the form of money and other things of value in exchange for adding ballots to increase the vote totals for certain candidates on the voting machines in his jurisdiction and for certifying tallies of all the ballots, including the fraudulent ballots. Demuro further admitted that a local political consultant gave him directions and paid him money to add votes for candidates supported by the consultant, including candidates for judicial office whose campaigns actually hired the consultant, and other candidates for various federal, state and local elective offices preferred by that consultant for a variety of reasons. Demuro also admitted that the votes he added in exchange for payments by the political consultant increased the number of votes fraudulently recorded and tallied for the consultant’s clients and preferred candidates, thereby diluting the ballots cast by actual voters.
“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.”
“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 William M. McSwain of the Eastern District of Pennsylvania. “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.”
“Domenick Demuro put a thumb on the scale for certain candidates, in exchange for bribes,” said Special Agent in Charge Michael J. Driscoll 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.”
The FBI and the Pennsylvania State Police investigated the matter. Richard C. Pilger, Director of the Election Crimes Branch in the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Eric L. Gibson of the Eastern District of Pennsylvania are handling the prosecution.
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.
Former Medical Practice Office Manager Pleads Guilty to Stealing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kristy Brucz, 34, of Buffalo, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to obtaining a controlled substance by fraud. The charge carries a maximum penalty of four years in prison and a fine of $250,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between 2015 and March 28, 2018, the defendant was an employee and office manager for a Williamsville physician. In that position, Brucz was given access to the physician’s prescription pad and a New York State issued controlled substance electronic prescribing hard token (prescribing token) and its related passwords, which allowed the defendant to issue prescriptions, and submit them to pharmacies, on the physician’s behalf.
Between 2015 and March 2018, Brucz, without the physician’s authorization, issued, or caused to be issued, 166 fraudulent prescriptions using the physician’s name, the physician’s prescription pad, and prescribing token. The prescriptions were issued in either Brucz’s name, the names of associates, or fictitious individuals. The defendant then filled the prescriptions, totaling approximately 11,885 dosage units, from various local pharmacies, and diverted them for her personal use. The controlled substances included hydrocodone and oxycodone.
The defendant’s scheme was discovered in March of 2018, as Brucz attempted to fill a prescription at Rite Aid Pharmacy. The pharmacist questioned the legitimacy of the prescription and contacted the physician for whom defendant worked. That inquiry ultimately led to the discovery of defendant’s fraud and led to her being fired from her position.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for August 19, 2020, at 1:00 p.m. before Judge Wolford.
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Final Four Defendants Sentenced in Twenty-Four Member Crystal Methamphetamine ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today the final sentences have been imposed in the prosecution of a 24-member drug trafficking operation. Darrell Lee-Lamont Summers II, Daryl Kevin Cannon, Timothy Roy Mason, and Tremain Lamar Braxton were sentenced this week following their convictions for conspiring to distribute methamphetamine and related crimes after a ten-day trial in November before the Honorable Robert J. Jonker, Chief United States District Judge. The remaining 20 defendants were sentenced between May 2019 and February 2020 for crimes committed as a part of the conspiracy.
The evidence at trial demonstrated that the leaders of the conspiracy, including Summers, Cannon, Raymond Demetrius Stovall, and Richard Lee James, Jr., brought or sent, in total, hundreds of thousands of dollars to suppliers in California and Arizona, including Kentrell Terome Dunn, who subsequently shipped hundreds of pounds of methamphetamine back to Michigan through the mail to them and others in the organization. The cash deliveries and shipments took place between 2016 and 2018. The organization largely distributed the methamphetamine in southwest Michigan, including in greater Kalamazoo. Law enforcement intercepted three packages during the investigation, which in total contained approximately 14 pounds of crystal methamphetamine, between 96% and 99% pure. At the time of the interceptions, those 14 pounds alone were worth more than $40,000 on the southwest border from which they shipped and nearly $100,000 wholesale in Michigan.
The Court imposed the following sentences on the conspirators:
Defendant
Age
City
Sentence
David Richard Uminn
36
Kalamazoo
262 months
Darrell Lee-Lamont Summers II
29
Benton Harbor
240 months
Daryl Kevin Cannon
27
Benton Harbor
240 months
Raymond Demetrius Stovall
30
Benton Harbor
225 months
Kentrell Terome Dunn
34
Phoenix, Arizona
210 months
Richard Lee James, Jr.
28
Benton Harbor
210 months
Robert Bruce Armstrong
66
Kalamazoo
180 months
Timothy Roy Mason
40
Benton Harbor and Erie, Pennsylvania
180 months
Tremain Lamar Braxton
31
Benton Harbor
180 months
Scotty Deandre-Marcus Campbell
27
Benton Harbor
168 month
Michael John Marcon
33
Kalamazoo
156 months
Andrew Peter Bagley
31
Kalamazoo
156 months
Eshawn Jamier Whiteside
22
Kalamazoo
145 months
Ronald Eugene Goodloe, Jr.
31
Benton Harbor
130 months
Robert Duane Kniss
46
Kalamazoo
120 months
Gerry Lionel Winston, Jr.
36
Kalamazoo
120 months
Aaron Earl Rimpson
29
Kalamazoo
120 months
Ronnie Deval Smith, Jr.
26
Kalamazoo
120 months
Kandy Kay Kirby
48
Kalamazoo
90 months
Richard Farmer, Sr.
45
Atlanta, Georgia
60 months
DeMichael Mishaun Horn
20
Benton Harbor
60 months
Michael Dewayne Horn
21
Benton Harbor
42 months
Ericka George
32
Kalamazoo
24 months
Daisy Laverne Dyer
44
Benton Harbor
18 months
"These substantial sentences, ranging from years to decades, should serve as a stark warning to others who might aspire to become drug dealers, or to provide assistance to them," said U.S. Attorney Birge. "Crystal methamphetamine is a dangerous drug, and these sentences underscore the serious consequences for those who get involved in its distribution."
"A coordinated effort from multiple law enforcement agencies successfully removed two dozen violent and dangerous drug dealers from southwest Michigan, but the work of protecting these communities continues," said Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Division. "The FBI’s resolve to identify criminals who are trafficking these substances and bringing them to justice has not faltered and we will continue to work hand-in-hand with the DEA, SWET, and KVET to achieve this goal."
This case was investigated by the FBI, the DEA, the U.S. Postal Inspection Service, the Kalamazoo Valley Enforcement Team, and the Southwest Enforcement Team (a component of the Michigan State Police), who were assisted by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Michigan Department of Corrections, the Portage Police Department, the Kalamazoo Department of Public Safety, the Kalamazoo County Sheriff’s Office, the Berrien County Sheriff’s Office, the St. Joseph County Sheriff’s Office, and TSA Investigations – Detroit Field Office. Assistant U.S. Attorneys Justin M. Presant, Jonathan Roth, Vito S. Solitro, and retired Assistant U.S. Attorney Mark Courtade prosecuted the case.
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Encino Man Sentenced to 9 Years in Prison for Leading Conspiracy to Distribute Opioids via Sham Clinics and Corrupt DoctorsRead the Press Release
LOS ANGELES – A San Fernando Valley man was sentenced today to 108 months in federal prison for leading a conspiracy to distribute powerful prescription opioids via sham medical clinics that hired corrupt doctors who wrote fraudulent prescriptions to black market customers.
Minas Matosyan, a.k.a. “Maserati Mike,” 40, of Encino, was sentenced by United States District Judge Philip S. Gutierrez. Matosyan pleaded guilty in April 2019 to one count of conspiracy to distribute a controlled substance.
Matosyan was arrested in August 2017 pursuant to a federal grand jury indictment charging him and 12 other defendants with scheming to divert at least 2 million controlled prescription pills for sale on the black market. According to his plea agreement, Matosyan and his co-conspirators controlled the sham clinics and hired corrupt doctors who allowed their names to be used on fraudulent prescriptions in exchange for kickbacks. Matosyan also admitted that he and his co-conspirators stole the identities of other doctors and then issued prescriptions in those doctors’ names, either by personally acquiring prescription pads in the doctors’ names or by arranging for other co-conspirators to do so.
As part of the scheme, Matosyan staffed receptionists at the clinics who would falsely verify the phony prescriptions to pharmacists who called to check on their veracity. He also sold narcotic prescriptions to black market customers – either directly or through couriers – and bulk quantities of hydrocodone and oxycodone he had acquired from phony prescriptions filled at pharmacies by other customers.
In May 2016, Matosyan offered a doctor a “very lucrative position” where the doctor would “sit home making $20,000 a month doing nothing,” according to Matosyan’s plea agreement. After the doctor declined the offer, Matosyan stole the doctor’s identity, sending a co-conspirator a text message containing the doctor’s full name, medical license number and national provider identifier number that the co-conspirator used to order prescription pads in the doctor’s name. Over the next two months, Matosyan and his co-conspirators sold fraudulent prescriptions, purportedly issued by the victim doctor, for at least 9,450 pills of oxycodone and 990 pills of hydrocodone.
Matosyan also admitted in the plea agreement that he conspired with others, including a lawyer, Fred Minassian, 53, of Glendale, to obstruct justice, by providing falsifying medical records to police to thwart an investigation into the seizure of a load of Vicodin from one of the conspiracy’s major customers.
This case so far has resulted in 11 convictions. Minassian is scheduled to go on trial on July 7.
The investigation was conducted by the Drug Enforcement Administration; IRS Criminal Investigation; the U.S. Department of Health and Human Services - Office of Inspector General; the Ventura County Sheriff’s Office, Pharmaceutical Crimes Unit; and Homeland Security Investigations. Substantial assistance was provided by the Los Angeles County Sheriff’s Department, the Los Angeles Police Department, the California Department of Justice, and the Orange Police Department.
This matter was prosecuted by Assistant United States Attorney Benjamin R. Barron, Chief of the Santa Ana Branch Office.
Defendant sentenced to prison for stealing aircraft trade secrets now faces charges for lyingRead the Press Release
SAVANNAH, GA: A North Carolina man who took part in a conspiracy to steal design information from aircraft companies faces additional prison time after his indictment for lying to the court while being sentenced and for lying to the FBI.
Craig German, 59, of Kernersville, N.C., was indicted by a grand jury in U.S. District Court on charges of Perjury and False Statements to a Government Agency, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. If found guilty, the charges could add up to five years to German’s current sentence of 70 months in federal prison, handed down in February after his guilty plea on a charge of Conspiracy to Steal Trade Secrets.
“It’s against the law for any person to lie while under oath, but it’s even more disturbing when that person lies after promising to cooperate in an investigation,” said U.S. Attorney Christine.
According to court documents and testimony, German admitted that he and his co-conspirators agreed to steal trade secrets from aircraft companies in order to assist a competitor company in developing their own anti-ice aircraft technology. After pleading guilty, German voluntarily met with the FBI in an effort to cooperate, but falsely denied copying, taking or otherwise transferring numerous trade secret documents. At the sentencing hearing, testimony showed that German had, in fact, copied the trade secret documents onto a removable USB drive. German elected to testify at the hearing and falsely testified that he was directed by a supervisor to copy and move the trade secret files.
“It is alleged that this defendant promised to fully cooperate truthfully, but instead chose to lie about his involvement in a conspiracy to steal trade secrets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “That type of behavior will not deter us from pursuing the truth and seeking justice for our citizens.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Cumberland County Woman Charged in Conspiracy to Collect Federal Student Aid Funds Using Fake TranscriptsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, BRENDA JOYCE HALL, 51, of Godwin, NC, had an initial appearance on an indictment charging her with, among other things, Conspiracy to Commit Student Loan Fraud and Wire Fraud, and Aggravated Identity Theft.
United States Attorney Higdon stated, “This defendant is charged with helping to orchestrate a long-standing fraud upon one of our institutions of higher learning by fabricating high school transcripts. A scheme that is alleged to have resulted in in substantial federal education funding being used by Hall for her own personal interests and gain.”
“Per the indictment, Ms. Hall seems to have viewed Federal student aid as a private slush fund rather that what it is – funding to help students make their dream of a higher education a reality,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Southern Regional Office. “As the law enforcement arm of the U.S. Department of Education, we are committed to fighting student aid fraud and ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions.”
The Indictment alleges that HALL and various others resided at a place referred to as “The Ranch” in Cumberland County, that was owned and operated by a tent revival preacher. According to the Indictment, The Ranch consisted largely of several related families, but outsiders and their children were also invited to, and did, reside there over time. The owner of The Ranch also owned various fish markets in the same area. HALL, who is alleged to have worked at The Ranch and at the fish markets, also operated a non-public home school, known as “Halls of Knowledge”, from The Ranch.
The Indictment further alleges that HALL and others carried out a scheme to fraudulently acquire hundreds of thousands of dollars in Federal Student Aid to fund the operations of the Ranch, the fish markets, and to make other purchases. To carry out the scheme, Hall and others would approach individuals residing on the Ranch and solicit their enrollment in an online course of college-level studies at Wake Tech. The individuals solicited are referred to in the Indictment as the “Student Participants.”
To attend the online course of college level studies at Wake Tech, the Student Participants were required to have successfully completed their high school level of education. But most of the Student Participants never graduated from high school, and none completed their high school education through HALL’s home school, the Halls of Knowledge. Many of the Student Participants had no genuine desire nor intention to attend college courses and graduate from Wake Tech. None had the financial means to attend college without federal student aid.
Nevertheless, the Indictment charges that HALL and others provided various assurances to the Student Participants to get them to agree to be enrolled at Wake Tech. For example, various Student Participants were told: (1) they would receive a high school diploma; (2) would receive a laptop or would get to keep some money; (3) they would not have to actually do the coursework; or (4) they would not be responsible for the student loans.
The Indictment then alleges that HALL fabricated high school transcripts for the Student Participants. The transcripts represented that each of the Student Participants successfully completed four years of high school education through Halls of Knowledge. The transcripts also fraudulently represented, for each year of study, the courses allegedly taken by the Student Participant, and the grade the Student Participant received in each course. HALL directed another resident of The Ranch to notarize these transcripts.
The Indictment alleges that HALL assisted the Student Participants to become enrolled at Wake Tech by, among other things, causing the fake transcripts and other documents to be delivered to Wake Tech. In addition to becoming enrolled in Wake Tech by fraud, Federal Student Aid was also awarded to the Student Participants based on the fraud. As much as $700,000 in federal student aid was awarded based on the fake transcripts.
The Indictment alleges that funds left over after the payment of tuition were supposed to support other educational costs for the students. But the students were not permitted by HALL and the Ranch owner to keep all of the funds. Instead, the Student Participants were directed, in some instances, to cash out the remaining funds and pay them over to The Ranch. The remaining student aid monies were then used to fund the operations of the Ranch, the fish markets, and other ventures.
The Indictment further alleges that after the Student Participants were enrolled at Wake Tech, the Students did not, in fact, attend all of the courses in which they were enrolled. Instead HALL, and others at The Ranch, would fraudulently attend and complete online courses for the Student Participants. This allowed the scheme to go on, undetected, for several years.
For her role in the conduct, HALL is charged with various federal offenses, carrying different maximum penalties. Conspiracy to Commit Student Loan Fraud, and Student Loan Fraud, in violation of Title 18, United States Code, Section 371, and Title 20, United States Code, Section 1097(a), are punishable by up to five years in prison. Conspiracy to Commit Wire Fraud, and Wire Fraud, in violation of Title 18, United States Code, Sections 1349 and 1343, are punishable by up to twenty years in prison. Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1), is punishable by not less than 2, nor more than two, years in prison, consecutive to any other sentence.
An indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
The investigation of this case is being conducted by the United States Department of Education Office of the Inspector General. Assistant United States Attorney William M. Gilmore represents the United States.
Convicted Felon Charged with Federal Firearm and Ammunition OffenseRead the Press Release
Ocala, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Curtis Duncan (30, Ocala) with possessing a firearm and ammunition as a convicted felon. If convicted, Duncan faces a maximum penalty of 10 years in federal prison. The indictment also notifies Duncan that the United States intends to forfeit the firearm and ammunition.
According to the indictment, on March 30, 2020, Duncan was in possession of a firearm and ammunition. With two prior state convictions for armed home invasion robbery and a principal to armed home invasion robbery, Duncan was prohibited from possessing firearms or ammunition under federal law.
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 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 and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Tyrie Boyer.
Cleveland man indicted for attempted plot to kidnap law enforcementRead 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 Christian Stanley Ferguson, age 20, of Cleveland, Ohio with attempted kidnapping. Ferguson was arrested on May 8, 2020, for an attempted plot to ambush and kidnap law enforcement officers responding to a false distress call.
“Christian Ferguson was actively planning to ambush, kidnap, and even kill law enforcement officers in order to carry out his plot of a violent uprising," said U.S. Attorney Justin Herdman. "We must demonstrate that these types of threats to law enforcement or to commit such heinous acts of violence in our community will not be tolerated.”
“The primary mission for law enforcement officers and special agents is to protect the public,” said FBI Cleveland Special Agent in Charge Eric B. Smith. “Christian Ferguson's primary mission was to kill as many law enforcement personnel as he could, an unfathomable concept. Thanks to the public for advising the FBI of the hateful and violent feelings Ferguson held for law enforcement. This information led to the swift disruption of Ferguson's plans and his reckoning with the criminal justice system. Law enforcement reminds the public: see something, say something!”
“We were happy to assist the FBI with this case, especially due to the seriousness of the threats,” said Cuyahoga Falls Police Chief Jack Davis. “The Cuyahoga Falls Police Department members have always enjoyed a great working relationship with the local agents, and this was yet another opportunity for local and federal law enforcement to work together.”
"The National Park Service is deeply appreciative of the work of the FBI and United States Attorney on this case,” said CVNP Chief Ranger Bruce Gagnon. “This indictment is good news for the men and women of law enforcement across the region."
According to the criminal complaint filed in this matter, over the course of several weeks, Ferguson engaged in violent and extremist postings made on cross-platform social media communication applications. In these postings, Ferguson discussed his desire to call police to report a false crime was in progress to prompt a response by law enforcement.
Specifically, he expressed an interest in a response by federal law enforcement because he believed they had better quality firearms and body armor to steal. He made statements about tactical options for killing multiple targets and the disposal of their bodies. He reaffirmed his plan to ambush law enforcement, kill them, rob them of their weapons, and start an uprising.
As a result of online conversations in a chatroom controlled by Ferguson, he met on several occasions with individuals to further discuss Ferguson’s plan in order to see it to fruition. Ferguson then engaged in practice drills with an AR-15 rifle and, on one occasion, conducted reconnaissance in a dry run. He ultimately facilitated a hoax distress call within the boundaries of the National Park to gauge response time by Park Rangers. Ferguson believed four federal officers arrived and indicated that if that many officers respond to the actual event, they would likely have to kill them all.
Ferguson was arrested, without incident, on May 8th and is currently in federal custody.
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 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.
This case was investigated by the Cuyahoga Valley National Park Rangers, Cuyahoga Falls Police Department, City of Cuyahoga Falls Prosecutor’s Office, and the Cleveland Division of the FBI and is being prosecuted by Assistant U.S. Attorneys Duncan Brown and Daniel Riedl.
Clearfield Couple Indicted in Project Safe Childhood Case for Producing and Possessing Sexually Explicit Images of MinorsRead the Press Release
JOHNSTOWN, Pa. – A married couple from Clearfield, Pa., have been indicted by a federal grand jury in Pittsburgh on charges of production and possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The five-count Indictment, returned on May 19, named Jackson Curtis Martin, III, 44, and Amanda Michelle Downs, 28, both of Clearfield, Pa.
According to the Indictment presented to the court, from December 2018 to Sept. 1, 2019, Martin and Downs produced images of a minor female engaged in sexually explicit conduct using materials that were shipped or transported in interstate or foreign commerce. Further, from Jan. 8, 2019 to Nov. 24, 2019, Martin and Downs possessed images of minors engaged in sexually explicit conduct, which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
"One of the highest priorities of my office is to protect the safety and well-being of every child in western Pennsylvania, "said U.S. Attorney Brady. "I want to thank Clearfield County District Attorney Ryan Sayers for his partnership. District Attorney Sayers and I are fully committed to investigating and prosecuting all sexual predators, abusers and pornographers who prey upon our children, and we will use all of the tools at our disposal to put such predators in prison."
"I would like to thank the U.S. Attorney for prosecuting these individuals on the charges of child pornography production and possession," said Ryan P. Sayers, Esq., District Attorney of Clearfield County. "This referral was made because the federal mandatory periods of incarceration for child pornography production and possession are more significant than here at the state level, and could potentially result in a life sentence. Simultaneously, I will be moving forward with the charges of rape and statutory sexual assault in Clearfield County. This relationship with U.S. Attorney Brady and his staff is an invaluable asset to the people of Clearfield County."
The law provides for a maximum sentence of not less than 30 years and up to 80 years in prison, a fine of $1,000,000, or both for Martin, and a maximum sentence of not less than 30 years and up to 40 years in prison, a fine of $750,000, or both for Downs. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Clearfield Borough Police Department and the Department of Homeland Security, Homeland Security Investigations, conducted the investigation leading to the Indictment in this case. 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 better 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
City Officials Charged with Accepting BribesRead the Press Release
A Calexico City, California councilman and mayor pro tem, along with a commissioner on the city’s Economic Development and Financial Advisory Commission, were charged in federal court today with accepting cash bribes in exchange for promises of official action by the city.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert S. Brewer Jr., and Acting Special Agent in Charge Omer Meisel of the FBI’s San Diego Field Office made the announcement.
According to a charging document, David Romero 36, and Bruno Suarez Soto, 28, both of Calexico, California, accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto “guaranteed” the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Moreover, both men admitted they had taken bribes from others in the past, according to the charging document.
In addition to being a councilman, Romero serves as Calexico’s mayor pro tem, meaning he was set to become mayor in July 2020. Soto was recently appointed to the city commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the city of Calexico.
The charges allege that during a Dec. 19, 2019, meeting at a restaurant in Calexico with the undercover FBI agent, Romero and Soto agreed to fast-track the agent’s purported application for a cannabis dispensary permit and guaranteed its rapid issuance in exchange for a $35,000 bribe. The defendants also offered to delay permit applications by competitors, court records said.
The charging document further alleges that toward the conclusion of the Dec. 19, 2019 meeting, when the undercover agent asked if Romero and Soto might later ask for more than the $35,000 payment, Romero assured him that they would not. “This is done. Set and sealed,” Romero allegedly said. Romero explained that he and Soto would require the money to be paid up front, however, because they had done similar work for other people, and those people had not paid the agreed-upon fee after the favors had been rendered. Soto later added, “This isn’t our first rodeo.” Romero and Soto agreed to accept payment of the $35,000 from the agent in two installments, however: half up front, and half “when it’s a for sure thing.”
According to court filings, at this meeting the undercover agent asked whether the payment of $35,000 would “get us in front of the line” of applicants. Soto answered, “Hell yeah.” Romero added that he “didn’t want to say it in front of everybody, but it will.”
On Jan. 9, 2020, Romero and Soto attended a second meeting with the undercover agent at a restaurant in El Centro, California. During the meeting, according to court records, Romero reminded the undercover agent how difficult it was to work with the city of Calexico, and how fortunate it was that the agent was working with Romero. Soto later added that in return for the bribe, Romero would cut through “so much [expletive] [red] tape that exists” with the city.
During a discussion of the approval process for the permit application referenced in court records, Romero explained that the people who have to approve the undercover agent’s license were “my best friends at the entire City Hall.” When asked if the “best friends” had already signed off on the plan, Romero responded “[expletive], yeah!” and laughed.
Court filings reveal that at the conclusion of the Jan. 9, 2020 meeting, in the parking lot outside the restaurant, with Romero looking on, the undercover agent handed Soto $17,500 in cash and explained that he divided the first installment of the bribe into two envelopes: one with $8,800 and another with $8,700. The agent asked whether “we’re good,” and Romero responded, “Trust me” and added, “In my line of business, I can’t [expletive] up. Which means he [Soto] can’t [expletive] up.”
According to the charging documents, the defendants allegedly accepted the second installment, $17,500 in cash, during a third meeting on January 30 in a parking lot outside a restaurant in El Centro. Court documents further allege both men also admitted to creating a shell corporation to launder the proceeds of their bribery scheme.
The charging document also alleges that both men lied to the FBI when interviewed by agents at the conclusion of the January 30 meeting. According to court filings, Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
The FBI investigated the case. Trial Attorney Joshua Rothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nicholas Pilchak are prosecuting the case.
A federal charge is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chinese National Arrested for $20 Million Scheme to Fraudulently Obtain Loans Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Kevin Kupperbusch, Eastern Region Special Agent-in-Charge of the Office of the Inspector General of the U.S. Small Business Administration (“SBA”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of MUGE MA, a/k/a “Hummer Mars,” a Chinese national residing in Manhattan, for a fraudulent scheme to obtain over $20 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, MA falsely represented to the SBA and five financial institutions that his companies, New York International Capital LLC (“NYIC”) and Hurley Human Resources LLC (“Hurley”), had hundreds of employees and paid millions of dollars in wages to those employees, when, in fact, MA appears to have been the only employee of his companies. MA’s company NYIC also fraudulently represented that it was representing New York State in procuring COVID-19 test kits and personal protective equipment to respond to the COVID-19 pandemic. MA was arrested this morning and will be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Muge Ma, a/k/a ‘Hummer Mars,’ allegedly attempted to secure over $20 million in Government-guaranteed loans intended for businesses devastated by the coronavirus/COVID-19 pandemic. In furtherance of the scheme, Ma allegedly falsely represented in his applications to banks and the SBA to own two companies with hundreds of employees to whom he paid millions in wages. As alleged, Ma described one of the companies as a ‘patriotic American’ firm, and said of the other company that it would ‘help the country reduce the high unemployment rate caused by the pandemic by helping unemployed American workers and unemployed American fresh graduates find jobs as quickly as possible.’ In truth, Ma appears to be the only employee of either company and had no legitimate claim to the funds for which he applied. Ma’s alleged attempts to secure funds earmarked for legitimate small businesses in dire financial straits are as audacious as they are callous, and now he now faces federal prosecution. Small businesses are facing uncertainty and unprecedented challenges, the least of which should be opportunists attempting to loot the federal funds meant to assist them. This Office, along with our law enforcement partners, will continue to vigilantly protect the integrity of those critical loan programs.”
FBI Assistant Director William F. Sweeney Jr said: “There are many people in desperate need of federal money right now to get them through an unbelievably difficult time. The last thing they need to hear is that a fraudster allegedly tried to steal millions of dollars for his own selfish use. We hope this serves as a demonstration to other criminals plotting a similar scam – we are acting and investigating in real time to stop anyone using this crisis as a means to rip off the federal government and the tax payers who fund that government.”
SBA OIG Eastern Region Special Agent-in-Charge Kevin Kupperbusch said: “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office. SBA OIG and its law enforcement partners are poised to root out fraud in SBA’s programs and bring wrongdoers to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “As many American businesses are struggling to survive during these difficult times, it is alleged that Mr. Ma sought to steal millions of dollars in loans intended to assist legitimate businesses. Make no mistake about it, IRS-CI is committed to investigating and bringing to justice those individuals who defraud coronavirus relief programs.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
The Coronavirus Aid, Relief, and Economic Security (“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 hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL Program, which provides small businesses with low-interest loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19. To qualify for an EIDL loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.
From at least in or about March 2020 through at least on or about May 15, 2020, MA applied to the SBA and at least five banks for a total of over $20 million in Government-guaranteed loans for the his companies NYIC and Hurley (together, the “Ma Companies”) through the SBA’s PPP and EIDL Program. In connection with these loan applications, MA represented, among other things, that he was the sole owner and executive director of the Ma Companies, that the Ma Companies were located on the sixth floor of his luxury condominium building in New York, New York, and that NYIC and Hurley together had hundreds of employees and paid millions of dollars in wages to those employees on a monthly basis. In fact, however, MA appears to have been the only employee of NYIC since at least in or about 2019, and Hurley does not appear to have any employees. In order to support the false representations made by MA in the loan applications about the number of employees at, and the wages paid by, the Ma Companies, MA submitted fraudulent and doctored bank records, tax records, insurance records, payroll records, and/or audited financial statements to five different banks, and also provided links to the Ma Companies’ websites, which describe them as purportedly “global” companies. In the course of these loan applications, MA also misrepresented that he was a United States citizen, when, in fact, he is a Chinese national with lawful permanent resident status in the United States.
Before the discovery of the fraudulent conduct by MA, the SBA approved a $500,000 EIDL Program loan for NYIC and a $150,000 EIDL Program loan for Hurley, and at least a $10,000 loan advance was provided to NYIC. In addition, a bank approved and disbursed over approximately $800,000 in PPP loan funds for Hurley, which were frozen in connection with this investigation. As a result, MA sought to withdraw his loan applications from the banks and return the funds.
MA and individuals purporting to work for NYIC have also fraudulently represented to a COVID-19 test kit manufacturer and a medical equipment supplier that NYIC is representing the New York State Government and the Governor of New York in procuring COVID-19 test kits and personal protective equipment (“PPE”) to respond to the COVID-19 pandemic. Among other incidents, in a recorded call that took place on or about May 18, 2020, MA represented, in substance and in part, that his company NYIC was a registered vendor for New York State, among other state governments, and that NYIC had a big team working on a deal for the State. NYIC is not, however, an authorized vendor of New York State, nor has NYIC been authorized to represent New York State in connection with the procurement of COVID-19 supplies.
* * *
MA, 36 of New York, New York, is charged with one count of bank fraud, one count of wire fraud, and one count of making false statements to a bank, each of which carries a maximum sentence of 30 years in prison, one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison, one count of making false statements, which carries a maximum sentence of five years in prison, and one count of making false statements to the SBA, which carries a maximum sentence of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any businesses or individuals who believe they may have been a victim in this investigation or have information regarding this investigation should call the FBI’s 24/7 Cyber Complaint Center at (855) 292-3937.
Mr. Berman praised the investigative work of the FBI’s Financial Cybercrimes Task Force, SBA-OIG, and IRS-CI, and noted that the investigation remains ongoing. Mr. Berman also thanked the New York City Police Department, the Office of the New York State Comptroller, and the New York State Department of Labor for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
The charges 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Cedar Rapids Teen Sentenced to Five Years in Federal PrisonRead the Press Release
A Cedar Rapids teenager who was arrested for possessing a firearm for the fourth time in little more than two years, and while on state court probation for possessing a firearm as a felon, was sentenced on May 18, 2020 to five years in federal prison.
Untario Devonte McGhee, also known as “Memphis” and “Tario Nolove,” age 19, from Cedar Rapids, Iowa, originally from Memphis, Tennessee, received the prison term after a January 6, 2020, guilty plea to one count of possession of a firearm by a felon.
At the plea and sentencing hearings, the evidence showed that, on April 10, 2019, Cedar Rapids Police Department officers attempted to arrest McGhee on a probation violation warrant and found McGhee in a vehicle in Cedar Rapids. As the officers neared McGhee, he locked the vehicle’s door. The officers saw a firearm in McGhee’s right hand. An officer ordered McGhee to raise his hands, but McGhee lowered his right hand and, when he raised it, it was empty. Officers pulled McGhee from the vehicle and, where his right hand had been, located a loaded and stolen handgun.
At the time, McGhee was on probation in state court after he was convicted of possessing a loaded stolen firearm as a felon in November 2018. McGhee was arrested for carrying firearms illegally in June 2018 and February 2017, as well. McGhee also has prior arrests for possessing marijuana with intent to deliver, disorderly conduct, providing false identification information, and assault.
McGhee was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. McGhee was sentenced to 60 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.
McGhee 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 Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-54.
Follow us on Twitter @USAO_NDIA.
Career Criminal Sentenced for Bank Robbery SpreeRead the Press Release
Kevin Turner was still on parole for his last bank robbery
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced that Kevin Delando Turner, 50, of Benton Harbor, was sentenced today to 180 months’ imprisonment and 3 years’ supervised release by U.S. District Judge Janet T. Neff. Turner pled guilty in February to robbing an Old National Bank branch in Kalamazoo with his nephew Draper Turner. Draper pled guilty, cooperated with the government, and was sentenced in November 2019 to 51 months’ imprisonment.
On March 25, 2019, Kevin recruited and drove Draper to the Old National Bank. On the drive to Kalamazoo, Kevin told Draper how to rob the bank. Kevin waited in his car outside the Old National Bank, while Draper went in, told the teller he had a gun, and obtained $3,150 in cash. A bystander saw Draper run from the bank to Kevin’s car, and gave the Kalamazoo Department of Public Safety a description of the vehicle. An off-duty police lieutenant spotted the car, and noted the license plate number before losing the robbers in traffic.
Police determined the car was registered to Kevin, who was still on parole for a 2009 bank robbery in Kalamazoo. Police found and arrested Kevin in Benton Harbor, in possession of several thousand dollars in cash. Kevin initially denied being near the bank, but when police told him a witness saw the robber getting in his car, Kevin fabricated a story about a carjacker abducting him at gunpoint.
Police separately found and arrested Draper, whose parole officer recognized him from bank surveillance footage. Draper confessed robbing the Old National Bank with his uncle Kevin, and told FBI agents Kevin had bragged about robbing two other banks in Michigan and two in Indiana. Using surveillance footage and cellular phone location techniques, FBI determined Kevin was responsible for four open robbery cases. When Kevin robbed the two other banks in Michigan, he told showed the tellers a device with wires, and led them to believe it was a bomb he would detonate if they did not comply. Kevin received a longer sentence because of his long history of crimes against people and property, his leadership role in the offense, and because he waited until shortly before trial to plead guilty.
Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan stated, "The sentences imposed on these two defendants reflect the serious nature of bank robberies. The FBI is proud of the role it played alongside our law enforcement partners to get two violent offenders off of the streets, making our community a safer place for all."
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Canadian National Sentenced to Federal Prison for Maritime Possession of MethamphetamineRead the Press Release
PORTLAND, Ore.—John Philip Stirling, 66, a Canadian citizen, was sentenced today to 40 months in federal prison and five years’ supervised release for possession with intent to distribute methamphetamine under the Maritime Drug Law Enforcement Act (MDLEA).
According to court documents, on April 9, 2019, while on a routine patrol, the U.S. Coast Guard Cutter Alert detected a sailing vessel traveling north, from Mexico to Canada, 225 nautical miles from Newport, Oregon in international waters. The vessel, named Mandalay, had a home port of Seattle, Washington. When Coast Guard personnel attempted to communicate with Stirling, he would only respond via VHF radio. Once Coast Guard personnel determined the Mandalay was a vessel within the jurisdiction of the U.S., they boarded and found Stirling to be the vessel’s sole occupant.
Stirling stated he did not have vessel documentation and refused to produce identification. Upon further questioning, Stirling’s speech began to deteriorate and he displayed signs of a possible drug overdose. Shortly before Coast Guard personnel boarded the vessel, Stirling consumed a large amount of what he believed to be pure fentanyl, but was later determined to be pentobarbital. Coast Guard personnel administered medical aid to Stirling and evacuated him by helicopter to Astoria, Oregon. He was later transported by ambulance to Adventist Health Portland for additional treatment.
The Mandalay was towed to port and later searched pursuant to a federal warrant. Investigators searched the vessel and discovered 28 jugs containing more than seven gallons of liquid methamphetamine each and a duffel bag containing several plastic-wrapped bricks of pentobarbital. Investigators later learned the drugs had been loaded onto the Mandalay from another vessel in the Sea of Cortez for delivery to Canada.
On January 13, 2020, Stirling pleaded guilty to one count of possession with intent to distribute methamphetamine under the MDLEA.
This case was investigated by the U.S. Coast Guard Investigative Service (CGIS) and Homeland Security Investigations (HSI) with assistance from U.S. Customs and Border Protection (CBP).
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.
California man admits to trafficking crime for meth found hidden in peanut butter, piñataRead the Press Release
GREAT FALLS – A California man admitted to a drug distribution charge today after investigators found almost two pounds of methamphetamine hidden in a peanut butter jar and a piñata that were bound for the Fort Peck Indian Reservation, U.S. Attorney Kurt Alme said.
Don Fred Baldwin, 47, of Merced, CA, pleaded guilty to distribution of meth. Baldwin faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian Morris presided and set sentencing for Sept. 17. Baldwin was detained.
The prosecution said in court documents that Baldwin mailed a package on Nov. 7, 2019 from California to Brockton, located on the Fort Peck Indian Reservation. Law enforcement officers intercepted the package, obtained a search warrant and found meth hidden inside a jar of peanut butter and a piñata. The amount of meth totaled about 776 grams, which is about 1.7 pounds and the equivalent of approximately 6,208 doses. When interviewed, Baldwin told law enforcement that he mailed the meth. Baldwin clarified later that he provided the meth to another person who mailed it to Montana.
Assistant U.S. Attorney Cassady Adams is prosecuting the case, which was investigated by the FBI, Fort Peck Tribal Criminal Investigators and the Merced, CA, Police Department.
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 Couple in College Admissions Case Agrees to Plead GuiltyRead the Press Release
BOSTON – Lori Loughlin and Mossimo Giannulli have agreed to plead guilty to conspiracy charges in connection with securing the fraudulent admission of their two children to the University of Southern California as purported athletic recruits.
Loughlin, 55, and Giannulli, 56, both of Los Angeles, Calif., will plead guilty before U.S. District Court Judge Nathaniel M. Gorton on a date to be specified by the Court. Loughlin will plead guilty to one count of conspiracy to commit wire and mail fraud, while Giannulli will plead guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud.
Under the terms of Loughlin’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of two months in prison, a $150,000 fine and two years of supervised release with 100 hours of community service. Under the terms of Giannulli’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of five months in prison, a $250,000 fine and two years of supervised release with 250 hours of community service.
Loughlin and Giannulli are the 23rd and 24th parents to plead guilty in the college admissions case.
“Under the plea agreements filed today, these defendants will serve prison terms reflecting their respective roles in a conspiracy to corrupt the college admissions process and which are consistent with prior sentences in this case. We will continue to pursue accountability for undermining the integrity of college admissions,” said United States Attorney Andrew E. Lelling.
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 and wire fraud and honest services mail and wire fraud provides for a sentence of up 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.
U.S. Attorney 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. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Calexico City Officials Charged with CorruptionRead the Press Release
Assistant U. S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – May 21, 2020
EL CENTRO – Calexico City Councilman and Mayor Pro Tem David Romero, along with Bruno Suarez-Soto, a commissioner on the city’s Economic Development and Financial Advisory Commission, were charged in federal court today with accepting cash bribes in exchange for promises of official action by the city.
The defendants were arraigned today via video teleconference before U.S. Magistrate Judge Bernard G. Skomal. They were released on $10,000 personal appearance bonds secured by their own signatures. The next court date is July 2, 2020 at 10:30 a.m. before U.S. District Judge Cathy Ann Bencivengo.
According to a charging document, Romero and Soto accepted $35,000 in cash bribes from an undercover FBI agent who they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Soto “guaranteed” the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Moreover, both men admitted they had taken bribes from others in the past, according to the charging document. Referring to this $35,000 payment, it is alleged they told the undercover agent, “This isn’t our first rodeo.”
In addition to being a Councilman, Romero serves as Calexico’s Mayor Pro Tem, meaning he was set to become Mayor in July 2020. Soto was recently appointed to the City commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico.
“Public officials must act with honesty and integrity when doing the public’s business,” said U.S. Attorney Robert Brewer. “If civic leaders won’t uphold these standards, we will. We allege that these defendants traded on their positions of trust, selling the integrity of government in exchange for thousands of dollars. We will vigorously enforce the law whenever a public official puts his own greed ahead of the interests of his constituents.”
“Public corruption remains the FBI's top criminal priority. As such, the FBI in San Diego and Imperial County has a robust public corruption program that is dedicated to uncovering criminal conduct of public officials,” said Acting FBI SAC Omer Meisel. “The investigation of Mr. Romero and Mr. Suarez-Soto serves as another example of the FBI's commitment toward accountability for those serving the public and holding positions of trust.”
The charges allege that during a December 19, 2019 meeting at a restaurant in Calexico with the undercover FBI agent, Romero and Soto agreed to fast-track the agent’s purported application for a cannabis dispensary permit and guaranteed its rapid issuance in exchange for a $35,000 bribe. The defendants also offered to delay permit applications by competitors, court records said.
The charging document further alleges that toward the conclusion of the December 19, 2019 meeting, when the undercover agent asked if Romero and Soto might later ask for more than the $35,000 payment, Romero assured him that they would not. “This is done. Set and sealed,” Romero allegedly said. Romero explained that he and Soto would require the money to be paid up front, however, because they had done similar work for other people, and those people had not paid the agreed-upon fee after the favors had been rendered. Soto later added, “This isn’t our first rodeo.” Romero and Soto agreed to accept payment of the $35,000 from the agent in two installments, however: half up front, and half “when it’s a for sure thing.”
According to court filings, at this meeting the undercover agent asked whether the payment of $35,000 would “get us in front of the line” of applicants. Soto answered, “Hell yeah.” Romero added that he “didn’t want to say it in front of everybody, but it will.”
On January 9, 2020, Romero and Soto attended a second meeting with the undercover agent at a restaurant in El Centro, California. During the meeting, according to court records, Romero reminded the undercover agent how difficult it was to work with the City of Calexico, and how fortunate it was that the agent was working with Romero. Soto later added that in return for the bribe, Romero would cut through “so much bullshit [red] tape that exists” with the City.
During a discussion of the approval process for the permit application referenced in court records, Romero explained that the people who have to approve the undercover agent’s license were “my best friends at the entire City Hall.” When asked if the “best friends” had already signed off on the plan, Romero responded “Fuck, yeah!” and laughed.
Court filings reveal that at the conclusion of the January 9, 2020 meeting, in the parking lot outside the restaurant, with Romero looking on, the undercover agent handed Soto $17,500 in cash and explained that he divided the first installment of the bribe into two envelopes: one with $8,800 and another with $8,700. The agent asked whether “we’re good,” and Romero responded, “Trust me” and added, “In my line of business, I can’t fuck up. Which means he [Soto] can’t fuck up.”
According to the charging documents, the defendants accepted the second installment, $17,500 in cash, during a third meeting on January 30 in a parking lot outside a restaurant in El Centro. Court documents further allege both men also admitted to creating a shell corporation to launder the proceeds of their bribery scheme.
The charging document also alleges that both men lied to the FBI when interviewed by agents at the conclusion of the January 30 meeting. According to court filings, Romero falsely denied being part of any agreement with the undercover agent, and denied that anyone had made any “guarantees” to the agent. Similarly, Soto falsely denied making any “guarantees” to the undercover agent and denied receiving any prior payments from the agent.
U.S. Attorney Brewer praised Assistant U.S. Attorney Nicholas Pilchak, DOJ Public Integrity Section trial attorney Joshua Rothstein and FBI agents for working hard to achieve justice in this matter.
The case against Romero and Suarez-Soto is a public corruption investigation being conducted by the FBI and the U.S. Attorney’s Office. Any member of the public who has information related to this or any other public corruption matter in Imperial County or San Diego is encouraged to provide information to the FBI’s email tip line at tips.fbi.gov or to contact their local FBI Field Office. In Imperial County, the FBI can be reached 24 hours a day at 858-320-1800 or 1-877-NO-BRIBE (662-7423).
DEFENDANTS Case Number 20cr1215
Calexico City Councilman David Romero Age: 36 Residence: Calexico, CA
Calexico City Commissioner Bruno Suarez-Soto Age: 28 Residence: Calexico, CA
SUMMARY OF CHARGES
Conspiracy to Commit Federal Program Bribery, in violation of Title 18, United States Code, Sections
371 and 666 (a) (1) (B)
Maximum Penalty: Five years in prison; $250,000 fine.
AGENCY
Federal Bureau of Investigation
Buffalo Woman Pleads Guilty to Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Maylin Santiago, 23, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiring to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Charles J. Volkert, Jr., who is handling the case, stated that beginning in November 2017 and continuing until April 2018, the defendant conspired with others to possess with the intent to distribute over 500 grams of cocaine. In January 2018, the Drug Enforcement Administration conducted a controlled purchase of cocaine from Santiago.
On at least two occasions in March 2018, the defendant conspired with others to obtain, or attempted to obtain, postal packages from Puerto Rico that contained kilograms of cocaine. Investigators seized over four kilograms of cocaine sent from Puerto Rico to be distributed in the Buffalo area.
Santiago was charged along with co-defendant Rosa Merced who was previously convicted and awaiting sentencing on June 3, 2020.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the New York State Police, under the direction of Major James Hall; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for August 26, 2020, at 9:00 a.m. before Judge Skretny.
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Browning man sentenced to prison for raping, sexually abusing two womenRead the Press Release
GREAT FALLS—A Browning man convicted by a jury of raping and sexually abusing two women on the Blackfeet Indian Reservation under the guise of offering each a ride home was sentenced today to 54 months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
A jury in January found Alphonse Bird, 85, guilty of one count of aggravated sexual abuse and one count of sexual abuse.
Chief U.S. District Judge Brian Morris presided.
"American Indian women face far too much violence. The violence must stop, and offenders, regardless of their age, will be held accountable," U. S. Attorney Alme said.
During trial, the prosecution presented evidence that Bird sexually assaulted two women on separate occasions within two months in 2018 on the Blackfeet Indian Reservation. On Sept. 15, 2018, the first victim approached a Blackfeet Law Enforcement officer near the Town Pump in Browning and reported that Bird had just raped her. Bird had picked her up near the Blackfeet Care Center and she thought he was giving her a ride home. Instead, Bird drove toward East Glacier Park, parked the vehicle and raped her. The victim couldn’t get Bird to stop until she got sick. He dropped her off near Advanced Towing and witnesses helped her. The victim promptly reported the assault.
In the second assault, a witness called law enforcement on Nov. 4, 2018 to report an incident she had just observed south of Browning in which a vehicle was parked on the side of the road. The witness pulled up to the passenger side to see if the occupants needed assistance. Bird was in the driver’s seat and the victim was a passenger. The victim attempted to sit up but was unable to do so. Bird drove away. The witness tried to follow but could not keep up and called law enforcement. A law enforcement officer located the vehicle and when she approached, she saw Bird, who had his right arm in a sling and was putting a glove on his left hand. Bird said he was bringing his passenger home and was just turning around.
The victim told the officer that Bird had picked her up and she thought he was going to take her home. The victim was intoxicated and had trouble recounting what happened, but said Bird sexually assaulted her despite her telling him to stop. The victim said Bird kept telling her she was going to be okay.
DNA analysis linked Bird to evidence collected from both of the victims.
Assistant U.S. Attorney Kalah Paisley prosecuted the case, which was investigated by the FBI, the Bureau of Indian Affairs and Blackfeet Law Enforcement.
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Batavia Man Sentenced on Enticement ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Guillermo Torres-Acevedo, 23, of Batavia, NY, who was convicted of enticing a minor to travel to engage in criminal sexual activity, was sentenced to serve 84 months in prison and 10 years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on November 25, 2018, the defendant, then a 22 year old man, had sexual relations with Victim 1, a 14 year old girl. Torres-Acevedo was arrested the following day for, among other charges, rape in violation of New York Penal Law.
Following his arrest, the defendant persuaded Victim 1 to travel with him out of state to continue their relationship. On November 29, 2018, Torres-Acevedo picked up Victim 1 from school in Genesee County, NY, and drove her to Pennsylvania, where they had sexual intercourse. Under Pennsylvania law, that constituted the crime of statutory sexual assault.
The sentencing is the result of an investigation by the Genesee County Sheriff’s Office, under the direction of Sheriff William A. Sheron, Jr.; the New York State Police, under the direction of Major Eric Laughton; the Pennsylvania State Police, under the direction of Commissioner Lieutenant Colonel Robert Evanchick; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.# # # #
Atlanta man charged for misrepresenting to his employer that he had tested positive for COVID-19Read the Press Release
ATLANTA – Santwon Antonio Davis has been charged with defrauding his employer by allegedly faking a positive COVID-19 medical excuse letter, causing the employer to stop business and sanitize the workplace. Davis has since admitted that he did not have COVID-19.
“The defendant caused unnecessary economic loss to his employer and distress to his coworkers and their families,” said U.S. Attorney Byung J. “BJay” Pak. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on Georgia companies and the public with Coronavirus-related fraud schemes.”
“Scammers continue to take advantage of the COVID-19 pandemic through a variety of means,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We receive numerous complaints every day and this case is a reminder that we remain vigilant in detecting, investigating and prosecuting any wrongdoing related to the crisis.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant, who was employed by a Fortune 500 company with a facility located in the Atlanta, Georgia area, falsely claimed to have contracted COVID-19 and submitted a falsified medical record to his employer. In concern for its employees and customers, the corporation closed its facility for cleaning and paid its employees during the shutdown. This caused a loss in excess of $100,000 to the corporation and the unnecessary quarantine of several of the defendant’s coworkers.
Santwon Antonio Davis, 34, of Morrow, Georgia, made his initial appearance before U.S. Magistrate Judge Justin S. Anand. Members of the public are reminded that the complaint only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorneys Russell Phillips and Sarah Klapman are prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Arkansas Woman Held Without Bond After Being Charged with Aiding and Abetting the Attempted Murder of a Deputy US MarshalRead the Press Release
Oxford, Miss. – A United States Magistrate Judge has ordered that an Arkansas woman be held without bond following her arrest last Friday for aiding and abetting the attempted murder of a Deputy U.S. Marshal who was acting in the line of duty.
Xaveriana Cook, 23, appeared in U.S. Magistrate Court on Wednesday, May 20, 2020, for a preliminary and detention hearing on multiple charges stemming from a shoot-out that occurred on South Lamar Boulevard in Oxford on Friday, May 15, 2020, when U.S. Marshals attempted to arrest Cook’s boyfriend, Hunter Carlstrom, on an outstanding murder warrant out of Arkansas. The arrest warrant charged Carlstrom with the May 5, 2020, murder of James Sartorelli, a/k/a “Caveman,” who was killed with a gunshot wound to the head in his Smithville, Arkansas residence.
Testimony revealed that Carlstrom and Cook were together in Cook’s vehicle on Friday when members of the U.S. Marshal’s Gulf Coast Regional Fugitive Task Force conducted a traffic stop on the vehicle in an attempt to arrest Carlstrom on the outstanding murder warrant. During the lunch-hour traffic stop, Carlstrom shot a Deputy U.S. Marshal, who sustained severe internal injuries as a result of the gunshot wound and required emergency surgery. Carlstrom was shot by return fire from law enforcement and died on scene. Cook, who had been driving the vehicle, was taken into custody by law enforcement.
Cook is charged by criminal complaint with transportation of stolen firearms, possession of stolen firearms, and aiding and abetting the attempt to kill an officer of the United States while the officer was engaged in the performance of official duties. Evidence was presented at the hearing that Carlstrom told Cook of his plan to kill Sartorelli and rob him of drugs, guns and cash, and that he used Cook’s vehicle to travel to Sartorelli’s house and commit the murder. Upon returning, Carlstrom told Cook he killed Sartorelli, and Cook observed Carlstrom in possession of firearms, cash and drugs. Testimony established that law enforcement officers in Arkansas located the body of James Sartorelli on May 7, 2020, and an Arkansas County Circuit Court issued a warrant for the arrest of Hunter Carlstrom for that murder on May 11, 2020. However, by that time, Cook and Carlstrom had fled Arkansas, traveling in Cook’s car to Mississippi, where they stayed with acquaintances from May 7, 2020, until May 15, 2020.
An investigating agent testified at Cook’s detention hearing that Cook admitted Carlstrom had told her on multiple occasions that he would not go back to prison and that he would have a shoot-out with the cops if he and Cook were ever stopped by law enforcement. On May 15, 2020, after the attempt to arrest Carlstrom and the ensuing shoot-out, law enforcement officers searched the scene and found a stolen Glock, 9mm handgun. In addition, officers searched the residence where Carlstrom and Cook had been staying for the previous week, and located two firearms that had been stolen from James Sartorelli’s house.
After hearing approximately three hours of testimony on Wednesday afternoon, U.S. Magistrate Judge Roy Percy found that Cook presented a risk of flight and ordered that Cook be held in jail without a bond pending trial. The case is being prosecuted by AUSA Clyde McGee and AUSA Clay Dabbs.
The public is reminded that all charges are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Arizona Man Sentenced to Eleven Years in Prison for Fentanyl Worth over $6 MillionRead the Press Release
LITTLE ROCK—An Arizona man was sentenced today to 132 months in federal prison for his involvement in a fentanyl conspiracy that took him through Russellville, Arkansas. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced that Herbierto Felix Ruiz, 48, was sentenced for conspiracy to possess fentanyl with intent to distribute.
On September 28, 2017, Arkansas State Police conducted a traffic stop in Russellville when a silver Hyundai Santa Fe crossed the center line on Interstate 40. Ruiz was the front seat passenger, and his name was on the car’s rental agreement. Ruiz had rented the car two days earlier in California. When the driver of the car and Ruiz gave conflicting stories to the officer, the officer asked to search their vehicle, and Ruiz consented to the search.
The officer found six packages wrapped in duct tape and hidden in the vehicle’s spare tire. The spare tire was a 15-inch tire, but the vehicle required 17-inch tires. The packages turned out to be over 15 pounds of fentanyl, which had a street value of over $6 million.
In November 2017, a grand jury charged Ruiz with conspiracy to possess with intent to distribute fentanyl. Then, in February 2018, an auto salvage business contacted law enforcement to report they had located a suspicious package in a vehicle they had purchased at auction from a car rental company. The vehicle was the same Hyundai Santa Fe from Ruiz’ previous traffic stop, and it contained an additional five kilograms of fentanyl that had not been found in the initial search.
On April 3, 2018, a grand jury charged Ruiz, and others, in a Superseding Indictment to increase the amount of fentanyl involved in the offense. Ruiz pleaded guilty on October 10, 2019. Today, United States Chief District Court Judge D. Price Marshall, Jr., sentenced Ruiz to eleven years in prison, followed by five years of supervised release. There is no parole in the federal system. Chief District Court Judge Marshall stated at the sentencing hearing that part of the basis for his sentencing decision was due to the danger involved with fentanyl.
"Fentanyl is an incredibly dangerous drug, and our office remains focused on removing it from our streets,” stated U.S. Attorney Hiland. “Today’s lengthy sentence is an example of the continued pressure we will apply to drug traffickers, especially those who bring this deadly substance into our communities.”
Fentanyl is the greatest and most significant synthetic opioid threat to the United States, including here in Arkansas, where as little as two milligrams is a lethal dose. This conviction and lengthy sentence should send a message to all drug traffickers that DEA will continue to work with all of our law enforcement partners to aggressively pursue those who ruthlessly traffic fentanyl and other dangerous drugs,” said DEA Assistant Special Agent in Charge Justin King.
The U.S. Attorney’s Office has placed significant focus on fentanyl in the Eastern District of Arkansas, especially highlighted by three separate takedown operations in October 2019. Those operations resulted in criminal charges against 49 people and seizure of over 1,600 grams of fentanyl. A single dose of fentanyl can be as small as one-sixteenth of a gram.
The Ruiz investigation was conducted by the Drug Enforcement Administration, Arkansas State Police, and the Fifth Judicial Drug Task Force.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Alaska’s U.S. Attorney and U.S. Marshal Issue Statements in Support of Dept. of Public Safety’s Plan to Enhance 911 Services in Rural AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder and U.S. Marshal Rob Heun today issued the following statements in support of the Alaska Department of Public Safety’s (DPS) initiative to enhance 911 services in rural Alaska:
“The primary duty of Alaska’s law enforcement community is to protect all of us in the Great Land,” said U.S. Attorney Schroder. “In most urban areas of Alaska, if a 911 call is dropped, dispatchers will still have the caller’s location and can send help. Currently, the same cannot be said for rural Alaska; however, under this initiative, DPS will soon have location information in rural areas covered by cell phones. For callers off the road system, knowing their location plays a pivotal role in dispatching first responders.”
“The enhanced 911 services will not only save lives for those who live in rural communities, but also for Alaskans and visitors who take part in recreational activities off the road system,” said U.S. Attorney Schroder. “DPS’s initiative strengthens the Rural Alaska Anti-Violence Enforcement Network’s (RAAVEN) ongoing efforts to reduce violent crime and address public safety needs in rural Alaska. I support and commend Commissioner Amanda Price’s efforts to provide better public safety services to all Alaskans.”
“As active partners with the Alaska State Troopers in rural Alaska, the U.S. Marshals Service appreciates the enhanced 911 services. These services will play a major role in law enforcement, contribute to increased officer safety and the protection to all of Alaska’s citizens and visitors,” said U.S. Marshal Heun.
On May 13, 2020, DPS announced plans to enhance 911 communication services to improve law enforcement services to all Alaskans. The initiative will improve 911 services across 80 percent of Alaska.
Akron man indicted for possession with intent to distribute THC vape cartridges and illegal fireman possessionRead the Press Release
The U.S. Attorney’s Office for the Northern District of Ohio announced today that a federal grand jury in Cleveland returned a three-count indictment charging Justin Michl, age 23, of Akron with intent to distribute Tetrahydrocannabinol (THC), possession of firearms in furtherance of a federal drug trafficking offense and money laundering.
According to the criminal complaint filed in this matter, On July 12, 2019, federal agents executed a search warrant at the defendant’s residence in Akron and recovered over 3,500 THC vape cartridges. These cartridges contained a liquid that, according to the Drug Enforcement Administration (DEA), may contain extraordinarily high THC levels ranging from 40% to 80%. This form of marijuana can be up to four times stronger in THC content than high-grade marijuana, which normally measures around 20% THC levels.
In addition to the THC cartridges, agents recovered four firearms, ammunition, and $85,627 in United States currency. Agents also discovered that Michl purchased an all-terrain vehicle with drug trafficking proceeds in February of 2019.
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 FDA – Office of Criminal Investigations in conjunction with the Ohio Attorney General’s Organized Crime Commission Major Crimes Task Force which consists of the Cuyahoga County Sheriff’s Department, Cuyahoga County Prosecutor’s Office, U.S. Food and Drug Administration, U.S. Postal Inspection Service and the Department of Homeland Security, Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Aaron Howell.
20 May 2020
West Valley City, Midvale Receive Emergency DOJ Funding to Support Law Enforcement, First RespondersRead the Press Release
SALT LAKE CITY – Two Utah more cities are receiving U.S. Department of Justice funding to support a broad range of activities as they respond to the coronavirus. The funding is coming from DOJ’s Bureau of Justice Assistance through the Coronavirus Emergency Funding Program.
West Valley City will receive $333,508 and Midvale is getting $46,274. West Jordan and Murray received grants last week.
“The Department of Justice is providing communities with funding to use for critical public safety needs they have for police officers and medical personnel as they work on the front lines to keep us safe through this challenging crisis,” U.S. Attorney John W. Huber said today. “These aren’t one-size-fits all grants. Each city has flexibility to use these dollars to support the challenges they are facing in their communities.”
The Emergency Supplemental Funding Program allows states, local governments, and federally recognized tribal governments to apply for critical funds to use as they respond to the coronavirus. Those receiving grants have considerable latitude in the use of the funds. The grant funding can support things like law enforcement overtime, equipment, hiring, supplies such as gloves, masks, and sanitizer for police officers and medical personnel, training, travel expenses, and addressing the needs of inmates in state, local, and tribal prisons, jails, and detention centers.
Funding for other Utah cities and counties is pending. Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency supplemental funding.
West Plains School Employee Charged with Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An employee of the West Plains, Missouri, R-7 School District was charged in federal court today with soliciting children to send him sexually explicit photos and videos through Snapchat and Instagram.
Cody Ashton Ary, 29, of West Plains, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Missouri, with one count of producing child pornography. Ary is employed with the West Plains R-7 School District as a paraprofessional and commonly assists with special need students.
According to an affidavit filed in support of the federal criminal complaint, Instagram initiated a CyberTip with the National Center for Missing and Exploited Children on Dec. 3, 2019, after Ary allegedly uploaded a sexually explicit video of an 8-to-10-year-old boy to his account. Investigators found a total of 92 chat conversations between Ary and other Instagram users. According to the affidavit, Ary used the screen name “15anime_boy” and identified himself as a 15-year-old male to other users. He allegedly solicited sexually explicit videos and images from other users who identified to be minor males. Ary allegedly received dozens of images and videos of child pornography through his Instagram account. Ary asked the child victims to send him videos and images of them stripping, the affidavit says, in exchange for Ary providing Internet links to folders that contained child pornography.
Law enforcement officers executed a search warrant at Ary’s residence today, where he was arrested.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the West Plains, Mo., Police Department, the Southwest Missouri Cyber Crime Task Force, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Waterloo Man Sentenced to a Year in Prison After Escape from Halfway HouseRead the Press Release
A Waterloo man who escaped from a Waterloo halfway house and spent over two weeks on the lam was sentenced to a year in federal prison on May 19, 2020. Lonnel Porter, age 36, from Waterloo, Iowa, received the prison term after a bench trial and a January 16, 2020 verdict finding him guilty of escape from custody.
The evidence at trial and prior court proceedings showed that, in 2009, Porter was convicted in federal court of possessing a firearm as a felon after an incident wherein he displayed an assault-rifle during a neighborhood dispute. At that time, Porter had prior convictions for burglary, domestic assault causing injury, and false imprisonment. Porter was sentenced to nearly nine years in prison and three years of supervised release. In 2012, while an inmate in federal prison, Porter was sentenced to an additional two years of prison after assaulting a correctional officer and causing injury to the officer. When Porter was released from prison in 2019, he was required to spend time at a local halfway house, the Waterloo Residential Reentry Center (WRRC), with work-release privileges. On September 16, 2019, about six weeks after he arrived at the WRRC, Porter signed out for his job, left the WRRC, and never returned. When Porter’s probation officer called Porter on the telephone and instructed him to return to the WRRC, Porter refused to do so and would not reveal his location. On October 2, 2019, the United States Marshal’s Service arrested Porter, and Porter was returned to prison for 14 months for violating the terms of his supervised release.
Porter was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Porter was sentenced to 12 months and one day of imprisonment. This sentence is in addition to his prior 14 month term. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Porter 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 Attorney Tim Vavricek and was investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2069.
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U.S. Attorney Scott W. Brady Requests Public to Report Sexually Predatory Housing Practices Amid COVID-19 PandemicRead the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice is investigating reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the U.S. Attorney’s Office for the Western District of Pennsylvania stands ready to investigate such allegations and pursue enforcement actions where appropriate.
"While many landlords are responding to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis, others are responding to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual misconduct," stated U.S. Attorney Brady. "Such behavior is despicable, illegal, and will not be tolerated. Tenants should never have to choose between housing and sexual harassment."
Launched in 2017, DOJ’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
The Department of Justice enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
U.S. Attorney Brady encourages anyone who has experienced sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, to contact the U.S. Attorney’s Office for the Western District of Pennsylvania by calling (412) 644-3500 or emailing [email protected].
U.S. Attorney J. Douglas Overbey Announces $36,437 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 the City of Oak Ridge received $36,437 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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U.S. Attorney Brady Announces $51K Grant to Address COVID-19 Pandemic in Penn HillsRead the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady today announced that the Municipality of Penn Hills, Pennsylvania, received $51,535 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. In addition, the Pennsylvania Commission on Crime and Delinquency has been awarded $17.6 million in grants that can be distributed to eligible governmental agencies throughout Pennsylvania, including western Pennsylvania. 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, which are not due until May 29, 2020.
From the moment these grants became available, U.S. Attorney Brady has dedicated staff to ensure that all eligible agencies in western Pennsylvania have the opportunity to apply and receive funds promptly. Since then, the Office has worked with eligible applicants to assist them in the grant process.
"The men and women on the front line of this pandemic deserve our deepest appreciation for answering the call to serve regardless of the danger," U.S. Attorney Brady said. "I am hopeful this $51,535 from the Justice Department will help Penn Hills police officers in their public safety duties while also ensuring their own health and safety. I also encourage all of our local law enforcement agencies to apply for these critical grants."
"This funding is crucial to Penn Hills Police Department’s preparedness and response to corona virus," said Scott Andrejchak, Penn Hills Borough Manager. "Penn Hills is thankful to our partners at the U.S. Attorney’s office for working with us to secure these funds."
The public safety funds being made available through DOJ’s Coronavirus Emergency Supplemental Funding program can be used for the most pressing needs of our state and local partners, including new hiring and overtime pay, training, critical personal protective equipment and supplies, and the medical needs of prisoners.
Agencies that were 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.
Two “SCO” Gang Members Sentenced to PrisonRead the Press Release
PITTSBURGH, PA - Two Western Pennsylvania residents have been sentenced in federal court on convictions of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence of four years imprisonment, and six years supervised release, on Keenan Williams, age 22, formerly of Duquesne, PA; and the sentence of six years imprisonment and four years supervised release on Reginald Brown, age 29, formerly of East Pittsburgh, PA.
According to information presented to the Court, the FBI Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Williams and Brown, and other individuals were identified as members and/or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh Region.
In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. Williams and Brown, along with 30 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
As to Williams, the Court was informed that intercepted communications confirmed that he served as a drug runner for members of the conspiracy, namely, his half-brother, Richard Coto-Wheat, distributing controlled substances in the North Versailles and Braddock neighborhoods.
As to Brown, the Court was informed that intercepted communications confirmed that he was conspiring with others to possess with intent to distribute and distribute cocaine base, commonly known as crack. Brown, who admitted that he was a member of SCO, also admitted to obtaining items used in processing cocaine into crack for McFadden, SCO’s leader. Moreover, law enforcement seized the following items from the kitchen of Brown’s residence: a Ruger 9mm pistol, with a loaded magazine and a chambered round, and $5,490.00 in United States currency as well as numerous other items indicative of drug-trafficking. As a part of the judgment in this case, Brown was required to forfeit these items to the government.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Moore. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
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.
Two Mint Hill Residents Plead Guilty to Federal Charges for Stealing More Than $400,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – Gerald Maxwell Harrison, 53, and Elizabeth Robin Williams, 55, both of Mint Hill, N.C., have pleaded guilty to federal charges for conspiring with each other and other individuals to steal more than $400,000 from an elderly victim who suffered from dementia, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, John A Strong, Special Agent in Charge for the FBI in North Carolina, and Chief Tim W. Ledford of the Mint Hill Police Department join U.S. Attorney Murray in making today’s announcement.
According to Harrison and Williams’ plea agreements, court documents filed in the case, and court proceedings, from January 2015 through September 2019, Harrison, Williams, and their co-conspirator, Donna Graves, engaged in a scheme to defraud a victim identified in court documents as “K.T.” The victim was an elderly widow who lived alone and suffered from dementia and other physical and mental challenges.
According to court records, beginning in February 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Court records show that Harrison, Williams, and Graves isolated the victim from her friends and family, and induced the victim to give them power and control over her financial and personal affairs. Once they gained access and control, Williams, Harrison, and Graves engaged in numerous illegal and unauthorized financial transactions that substantially depleted the victim’s money and property. Specifically, the co-conspirators emptied the victim’s bank accounts and used the money to pay for personal expenses, they fraudulently “maxed out” at least one credit card in the victim’s name, they fraudulently transferred or attempted to transfer the victim’s assets to themselves, they pawned the victim’s jewelry, and they stole the victim’s federal benefits. Additionally, Williams unlawfully used the victim’s money to set up other businesses in her name, including a business selling handbags online and a business selling weight loss-related services. As a result of the fraudulent scheme, the co-conspirators defrauded the victim of more than $400,000.
Harrison pleaded guilty today to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. His co-defendant, Williams, pleaded guilty to the same charges on May 14, 2020. The wire fraud conspiracy charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The interstate transportation of stolen property charge carries a maximum prison term of 10 years and a $250,000 fine. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine.
The charges in the indictment for the alleged conduct of the third co-defendant, Donna Gravers, are still pending and they are considered allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray commended the FBI, USPIS, and the Mint Hill Police Department for their investigation of this case.
Assistant United States Attorneys Kenneth M. Smith and Caryn D. Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative
Tulsa Man Faces Child Pornography ChargesRead the Press Release
A Tulsa man made an initial appearance today in federal court for child pornography charges stemming from a Carter County Sheriff’s Office investigation, announced U.S. Attorney Trent Shores.
Kevin Edward Swarthout, 47, is charged with possession of child pornography and distribution of child pornography.
“There are no more serious criminal allegations than those involving the sexual exploitation of children. The possession and distribution of child pornography is not only criminal, it is abhorrent,” said U.S. Attorney Trent Shores. “This investigation is a reminder that even during these uncertain times, state, local, county, and federal law enforcement officials are working to protect our children from child predators.”
On Dec. 25, 2019, the Carter County Sheriff’s Department conducted an online investigation through a file sharing network. They received 21 files of child pornography from a specific IP address during the course of their investigation. On Feb. 18, 2020, officers received the subscriber’s information for the IP address. The subscriber was located at a physical address in Tulsa.
On May 12, 2020, the Tulsa Police Department Cyber Crimes Unit, Oklahoma State Bureau of Investigation, and Homeland Security Investigations executed a search warrant of the premises. Swarthout was present during the search. Detectives and agents located multiple digital devices allegedly belonging to Swarthout, including a Samsung tablet and SD cards. According to the Criminal Complaint, investigators discovered 100 images and videos of child pornography on the tablet, many depicting adults engaging in sexual intercourse with prepubescent children. They also found an additional 124 images of child pornography on a micro SD card. Investigators are continuing to search other SD cards discovered.
The National Center for Missing and Exploited Children will analyze the images found by investigators in order to identify known and unknown child sexual assault victims.
The Complaint also alleges that during the search, Swarthout stated that he lived at the residence, paid half the utilities including the cable bill, and had previous convictions for child pornography. 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 Carter County Sheriff’s Department, Tulsa Police Department, Oklahoma State Bureau of Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies. Assistant U.S. Attorney Christopher J. Nassar is 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.
Toledo couple indicted for fraudulent medical care schemeRead the Press Release
A federal grand jury in Toledo, Ohio returned a four-count indictment today charging Sherry-Ann Jenkins, age 55, and Dr. Oliver H. Jenkins, age 57, both formerly of Ottawa Hills, Ohio, on one count each of conspiracy, mail fraud, wire fraud, and health care fraud in connection with their development and operation of the Toledo Clinic Cognitive Center from approximately 2013 through 2016.
According to the indictment filed for this case, from November 2013 to March 2016, Dr. Sherry-Ann Jenkins and Dr. Oliver Jenkins operated a business known as the Toledo Clinic Cognitive Center to diagnose and treat patients with cognitive disorders, particularly those suspected of suffering from dementia and Alzheimer ’s disease. The Center would later become a formal part of the Toledo Clinic. Dr. Oliver Jenkins was to serve as the Cognitive Center’s Medical Director, and Dr. Sherry-Ann Jenkins would serve as the Center’s Director, responsible for overseeing the day-to-day operations. Dr. Sherry-Ann Jenkins had no clinical education, training, or certification. Defendant Sherry-Ann Jenkins had no medical background, affiliation, or licenses to provide medical care of any type.
Immediately following the opening of the Cognitive Center in 2014, Dr. Sherry-Ann Jenkins began performing as a fully qualified and licensed physician or psychologist. She began assessing, diagnosing, and treating patients for perceived cognitive disorders. She would often order PET scans, which she was unqualified to do, for her patients, and then used the scan results to diagnose a patient with a cognitive disorder. She would then bill these patients for her time as a physician using Dr. Oliver Jenkins National Provider Identifier (NPI) number. Dr. Oliver Jenkins never saw these patients for cognitive care.
The defendants never disclosed that Dr. Sherry-Ann Jenkins was neither trained nor licensed to provide any type of medical care or that Dr. Oliver Jenkins, who was licensed to provide medical care, was rarely present.
Dr. Sherry-Ann Jenkins billed patients and federal health care benefits programs, Medicare and Medicaid, for services for which she was not eligible to bill, were unnecessary, or never performed, and made it appear that Dr. Oliver Jenkins was the rendering provider.
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, each 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 preceding the indictment was conducted by the Federal Bureau of Investigation in Toledo, Ohio, the United States Department of Health and Human Services, Office of Inspector General in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Brian McDonough.
Three Deer Hunters Charged with Lacey Act Violations on Fort RileyRead the Press Release
TOPEKA, KAN. – Three men are charged in federal court on Fort Riley with illegally hunting whitetail deer in off-limit areas located on Fort Riley where explosives are discharged during training exercises, U.S. Attorney Stephen McAllister said.
The misdemeanor charges allege the men violated the federal Lacey Act while hunting white-tail deer on the grounds of the Army base over the past few years. An investigator’s affidavit alleges the hunters disregarded the posted “off-limits” area, entering before daylight and leaving after dark.
Charged in the case are:
Gregory J. Frikken, 55, Wamego, Kan., one count of criminal trespass, two counts of conspiracy to commit criminal trespass, four counts of Lacey Act violations, one count of conspiracy to commit Lacey Act violations.
James C. Nunley, 32, Wamego, Kan., five counts of Lacey Act violations, one count of criminal trespass and one count of conspiracy to commit criminal trespass.
Michael J. Smith, 55, Watertown, N.Y., one count of criminal trespass, one count of conspiracy to commit criminal trespass, three counts of Lacey Act violations, one count of conspiracy to violate the Lacey Act.
Investigators recovered evidence including deer mounts, antlers, phone data and equipment allegedly used to harvest eight whitetail deer, three of which are considered trophy class.
If convicted, the defendants could face up to one year in jail, maximum $10,000 fine and a mandatory $25 special assessment fee for each Lacey Act Violation which also could include, civil forfeiture and a loss of their federal hunting privileges.
Investigating agencies included the Directorate of Emergency Services, Fort Riley Conservation Law Enforcement Officers, the Kansas Department of Wildlife, Parks and Tourism and the New York State Environmental Conservation Office. Special Assistant U.S. Attorney Robin A. Graham is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.