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Monday 2 March 2020
Baltimore Felon Pleads Guilty to Federal Charge for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – Linwood Davis, age 25, of Baltimore, Maryland, pleaded guilty today to a federal charge for being a felon in possession of a firearm. Davis was charged federally last year for his alleged participation in a drug distribution conspiracy operating in Northwest Baltimore near the intersection of Liberty Heights Avenue and Garrison Boulevard, and for illegally possessing a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Gang members settling disputes with gunfire are plaguing our streets with violence and murder. The cycle of retributive violence has to stop,” said U.S. Attorney Robert K. Hur. “We in federal law enforcement are determined to make our streets safer, working with our local and state partners. We’re committed to identifying and prosecuting armed criminals to remove them from our communities. To those who would do as this defendant did, I say, please put down the gun. You will save a life—maybe even your own.”
According to his guilty plea, in February 19, 2019, Davis was shot in Baltimore. Shortly after his release from the hospital, Davis posted on social media that he would seek vengeance against those who shot him. On March 21, 2019, Davis again posted on social media that he was looking for revenge for the death of his “brother.” Later that day, DEA investigators conducing a court-authorized wiretap on Davis’ phone overheard Davis telling an associate to bring him the “whatchamacallit,” and DEA agents began surveilling Davis. That night Davis left a residence on Mount Holly Street in Baltimore and got into a minivan. Investigators followed the van to the 1600 block of West North Avenue in Baltimore, where the vehicle abruptly stopped and the passenger-side door opened. Agents went up to the van, which was being driven by a livery driver.
In the back of the minivan were Davis and two co-conspirators. Agents searched the co-conspirators and recovered two loaded firearms from each co-conspirator. Davis admitted that he knew the co-conspirators had four guns and that he therefore jointly possessed the firearms with the co-conspirators. Davis had a previous felony conviction and was prohibited from possessing firearms and ammunition.
Davis faces a maximum sentence of 10 years in federal prison for being a felon in possession of a firearm. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge George L. Russell, III has scheduled sentencing for May 28, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Michael Goldsticker, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Baldwin County Man Sentenced in Firearms CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Harvey Lyn Tillman, 38, of Perdido, Alabama, was sentenced on February 26, 2020, for being a felon in possession of firearms. He entered a guilty plea to the charge in November of 2019.
United States District Court Judge Jeffery U. Beaverstock imposed a sentence of 37 months imprisonment, to be followed by a supervised release term of three years. During that period of supervision, Tillman will undergo testing and treatment for drug abuse. Tillman was also ordered to pay $100 in special assessments, but no fine was imposed.
The case was investigated by the Baldwin County Sheriff’s Office, the Escambia County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Attorney Sentenced to 46 Months for Enticement and Coercion to Engage in ProstitutionRead the Press Release
Assistant U.S. Attorneys Jaclyn Stahl (619) 546-8456 and Fred Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – March 2, 2020
SAN DIEGO – United States District Judge Anthony J. Battaglia sentenced local attorney William David Turley to 46 months in custody for enticing a female to engage in prostitution. Judge Battaglia also ordered Turley to pay $50,000 in restitution to a minor victim involved in the case.
According to his plea agreement, on or about April 30, 2018, Turley began communicating with an adult female victim whom he met on the website sugardaddymeet.com. On or about May 3, 2018, Turley persuaded, induced, and enticed the victim to take a flight from a city in California to Las Vegas, Nevada to meet with him. Turley paid for the victim’s flight and other travel expenses. At the time the victim boarded the flight in California, she understood that she was traveling to Las Vegas to engage in sexual acts with Turley in exchange for monetary compensation. In Las Vegas, Turley provided the victim with between $1,500 and $1,800 in cash in exchange for sexual intercourse.
The plea agreement also states that on or about May 12, 2018, Turley began communicating with the minor female victim via sugardaddymeet.com. In conversations with the minor victim, they discussed that she was 18 years old. But he was aware that she was a high school student, that she could not meet on weekends because she was grounded, and that her parents had taken her cellphone away due to poor performance in school. Turley met with the minor victim on or about May 15, 2018, at a public library near her high school.
According to the plea agreement, on or about May 16, 2018, Turley again met the minor victim at the library after school and drove her to a store where Turley purchased the minor victim a cellphone. Turley then drove the minor victim a short distance, parked the car, and engaged in a sex act with the minor. The victim told Turley she wanted to stop and needed to get home. Turley gave the minor victim $300.
U.S. Attorney Robert Brewer praised the FBI, the San Diego Human Trafficking Task Force and prosecutors Jaclyn Stahl and Fred Sheppard for ensuring that Turley’s victims had a voice and saw justice done. “We are committed to enforcing the laws of the United States and will prosecute individuals who break the law regardless of their wealth, job title, or status,” Brewer said.
“Human trafficking and sex crimes involving our children cannot be tolerated,” said FBI Special Agent in Charge Scott Brunner. “The FBI will continue to work tirelessly to reveal these horrible crimes and bring safety and closure for the victims and our communities.”
DEFENDANT Case No. 18-CR-4574-AJB
William David Turley Age: 61 San Diego, CA
SUMMARY OF CHARGES
Enticing and Coercing a Female to Engage in Prostitution, in violation of 18 U.S.C. § 2422(a).
Maximum Penalty: Twenty years in prison, $250,000 fine.
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Human Trafficking Task Force
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that David Neal Halvorson, 50, of Gulf Shores, Alabama, was sentenced in federal court. In February of 2018, Halvorson pled guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking felony.
United States District Court Judge Kristi K. Dubose imposed a total sentence of 126 months imprisonment, consisting of 66 months on the drug charge to run consecutive to 60 months on the gun charge. The judge ordered that Halvorson would receive credit for 46 months he has already served on a related state charge. Halvorson will serve a supervised release term of seven years when he is released from prison, during which time he will undergo testing and treatment for drug and alcohol abuse. The judge did not impose a fine, but she ordered that he pay $200 in special mandatory assessments.
The case was investigated by the Baldwin County Drug Task Force, the Baldwin County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
11 Members of Money Laundering Ring ChargedRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Patrick Freaney, Deputy Special Agent in Charge of the New York Field Office of the United States Secret Service (“Secret Service”), Troy Miller, Director of New York Field Operations for United States Customs and Border Protection (“CBP”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of JACOB SAGIAO, MARYLYNN PENEUETA, BRITT JACKSON, JOSHUA FITTEN, DONTAE COTTRELL, ARINZE OBIKA, HERMAN BASS, DAVID URO, and PRINCE UKO for money laundering and wire fraud schemes. Eight of the defendants were presented before United States Magistrate Judges in three federal judicial districts on February 27 and 28. UKO will be presented before a United States Magistrate Judge in the Northern District of Georgia later today. Two other defendants, VICTOR AHAIWE and NDUKWE ANYAOGU, remain at large.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants conspired to launder the proceeds of online fraud schemes that deceived victims into sending the defendants more than $5 million. Thanks to the Secret Service and CBP, nine of the defendants are in custody, and all 11 face serious federal charges.”
Secret Service Deputy Special Agent in Charge Patrick Freaney said: “The U.S. Secret Service is dedicated to the pursuit and investigation of those responsible for committing cyber-enabled fraud. The success of this investigation is the result of a collaborative effort between the New York Field Office of the Secret Service and the U.S. Attorney’s Office of the Southern District of New York. Additionally, I would like to recognize the efforts of the Atlanta Field Office and Los Angeles Field Office of the Secret Service for their invaluable assistance that have made this investigation a success.”
CBP Director of New York Field Operations Troy Miller said: “This case exemplifies the collaborative law enforcement efforts to combat transnational criminal organizations. U.S. Customs and Border Protection is proud to have collaborated with our fellow law enforcement partners during this investigation leading to today’s arrests.”
FBI Assistant Director William F. Sweeney Jr. said: “The threat of cyber-enabled fraud has long been publicized, and many people assume they know enough to avoid being victimized by this type of crime. The truth is, however, fraudsters are often very skilled at targeting their victims and masking their behavior in a way that often goes undetected until it’s too late. Today’s charges are yet another reminder to the public to exercise due diligence in both personal and professional online settings as we work together to defeat cybercrime worldwide.”
According to the allegations in the two Complaints charging the defendants:
From at least in or about July 2018 up to and including at least in or about November 2019, SAGIAO, PENEUETA, JACKSON, FITTEN, COTTRELL, OBIKA, BASS, URO, AHAIWE, ANYAOGU, and UKO received and laundered the proceeds of three business email compromise schemes, in which the corporate and organizational victims were fraudulently induced to send nearly $5 million to bank accounts controlled by SAGIAO, OBIKA, and others.
From at least in or about June 2019 up to and including the present, JACKSON participated in and received proceeds from an online romance fraud scheme, in which the victim was fraudulently induced to send over $130,000 to JACKSON and others.
In or about October 2018, ANYAOGU participated in and received proceeds from an email compromise scheme, in which a foreign law firm was fraudulently induced to transfer approximately $380,000, intended for another person, to a bank account ANYAOGU controlled.
In or about February 2020, UKO made the false statements to federal law enforcement officers that he had never exchanged text messages with a co-conspirator and that certain transactions were for a textile business rather than to launder the proceeds of criminal activity.
* * *
SAGIAO, PENEUETA, JACKSON, FITTEN, COTTRELL, OBIKA, BASS, URO, AHAIWE, and ANYAOGU are charged with: (1) conspiracy to commit bank fraud, and (2) conspiracy to commit money laundering. AHAIWE is also charged with aggravated identity theft, and JACKSON and ANYAOGU are also charged with wire fraud. UKO is charged with conspiracy to commit money laundering and making false statements in a matter within the jurisdiction of the executive branch of the Government of the United States. Conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, carries a maximum term of 30 years in prison. Conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h), carries a maximum term of 20 years in prison. Aggravated identity theft, in violation of 18 U.S.C. § 1028A, carries a mandatory consecutive term of two years in prison. Wire fraud, in violation of 18 U.S.C. § 1343, carries a maximum term of 20 years in prison. Making a false statement in a matter within the jurisdiction of the executive branch of the Government of the United States, in violation of 18 U.S.C. § 1001, carries maximum term of five years in prison. The maximum potential sentences and the mandatory minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Secret Service, and, in particular, the Secret Service’s Electronic Crimes Task Force, CBP, the FBI, and special agents of the United States Attorney’s Office for the Southern District of New York. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jun Xiang and Kevin Mead are in charge of the prosecution.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Hometown
Charges
JACOB SAGIAO
47
Oxnard, CA
Bank fraud conspiracy; money laundering conspiracy
MARYLYNN PENEUETA
46
Oxnard, CA
Bank fraud conspiracy; money laundering conspiracy
BRITT JACKSON
43
Columbus, GA
Bank fraud conspiracy; money laundering conspiracy; wire fraud
JOSHUA FITTEN
25
Hacienda Heights, CA
Bank fraud conspiracy; money laundering conspiracy
DONTAE COTTRELL
36
Whittier, CA
Bank fraud conspiracy; money laundering conspiracy
ARINZE OBIKA
33
Queens, NY
Bank fraud conspiracy; money laundering conspiracy
NDUKWE ANYAOGU
43
Marietta, GA
Bank fraud conspiracy; money laundering conspiracy; wire fraud
HERMAN BASS
37
Hawthorne, CA
Bank fraud conspiracy; money laundering conspiracy
DAVID URO
28
Brooklyn, NY
Bank fraud conspiracy; money laundering conspiracy
VICTOR AHAIWE
54
Rancho Cucamonga, CA
Bank fraud conspiracy; money laundering conspiracy; aggravated identity theft
PRINCE UKO
46
Jonesboro, GA
Money laundering conspiracy; false statements
As the introductory phrase signifies, the entirety of the text of the Complaints and the descriptions of the Complaints set forth herein constitute only allegations and every fact described should be treated as an allegation.
Saturday 29 February 2020
Washington Man Charged with Prohibited Person in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Bridgeport, Washington, man has been indicted by a federal grand jury for Prohibited Person in Possession of a Firearm.
Johnathan Bravo Barrera, age 25, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on February 21, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and a $250,000 fine, three years of supervised release, $100 to the Federal Crime Victims Fund, and restitution.
The Indictment alleges that on October 23, 2019, in Corson County, Bravo while knowingly being an unlawful user of and addicted to marijuana knowingly possessed two firearms, which had been shipped and transported in interstate commerce and foreign commerce.
The charge is merely an accusation and Bravo is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by Northern Plains Safe Trails Drug Enforcement Task Force and the Corson County Sheriff’s Office. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Bravo was released on bond. A trial date has not been set.
Rosebud Woman Indicted for Assault of and Threatening a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer and Influencing a Federal Officer by Threat.
Jamie E. Oliver, a/k/a Jamie E. Decory, age 34, was indicted on February 11, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 26, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 6, 2019, Oliver did forcibly assault, oppose, impede, intimidate, and interfere with and threaten to murder a law enforcement officer who was employed by the Rosebud Sioux Tribe.
The charges are merely accusations and Oliver is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Oliver was released on bond pending trial. A trial date has not been set.
Rapid City Woman Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on February 24, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Terri Paulhamus, age 39, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Paulhamus was indicted by a federal grand jury on August 14, 2018. She pled guilty on December 5, 2019.
The conviction stemmed from a conspiracy that occurred between 2016 and 2017, in which Paulhamus, knowingly and intentionally, conspired and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine on the Rosebud Sioux Indian Reservation.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Paulhamus was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of an Unregistered Firearm was sentenced by Jeffrey L. Viken, U.S. District Judge.
Warren Hotchkiss, age 39, was sentenced on February 25, 2020, to time served, 2 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Hotchkiss unlawfully possessing a short-barrel Weatherby, model PA 08 TR, 12 gauge pump action shotgun in March 2019 at Rapid City, which was found after law enforcement executed a search warrant on Hotchkiss’ residence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Rapid City Man Sentenced for Fourth Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 24, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Bradley Makes Room For Them, age 35, was sentenced to 33 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Makes Room For Them was indicted by a federal grand jury on October 17, 2019. He pled guilty on December 17, 2019.
Makes Room For Them was convicted of Aggravated Sexual Abuse in September 2003. As a result of this conviction, he is required to register under the Sex Offender Registration and Notification Act. Makes Room For Them was convicted of Failure to Register as a Sex Offender in 2014, 2016, and 2018. In September 2019, Makes Room For Them was released from prison and began a period of supervised release, but failed to update his sex offender registration. An arrest warrant was subsequently issued and on September 29, 2019, Makes Room For Them was arrested in Rapid City.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Makes Room For Them was immediately turned over to the custody of the U.S. Marshals Service.
Pukwana Woman Sentenced for Theft of Mail by Postal Service EmployeeRead the Press Release
United States Attorney Ron Parsons announced that a Pukwana, South Dakota, woman convicted of Theft of Mail by Postal Service Employee was sentenced on February 24, 2020, by U.S. District Judge Karen E. Schreier.
Kayla Ottmo, age 36, was sentenced to 2 years of probation, $315 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ottmo was indicted by a federal grand jury on July 9, 2019. She pled guilty on November 26, 2019.
The conviction stemmed from incidents between on or about September 2018, and November 2, 2018, when Ottmo stole letters, packages, bags, and mail that were not addressed to her. These items had been placed in the custody and control of the U.S. Postal Service and were intended to be conveyed by mail. Ottmo stole the contents of the letters, packages, bags, and mail, namely gift cards and other items of value, and converted them to her own use. At the time, Ottmo was employed by the U.S. Postal Service in Pukwana as a rural carrier associate.
This case was investigated by the Office of Inspector General, U.S. Postal Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Pine Ridge Woman Acquitted of Second Degree MurderRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, woman was acquitted of Second Degree Murder as a result of a federal jury trial in Rapid City, South Dakota, on February 21, 2020.
Doreen Brown, age 44, was indicted by a federal grand jury on July 9, 2019.
The charges related to the stabbing death of Brown’s boyfriend at Pine Ridge on June 27, 2019.
The investigation was conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. The U.S. Attorney's Office prosecuted the case.
Pine Ridge Man Sentenced for BurglaryRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Third Degree Burglary was sentenced by Jeffrey L. Viken, U.S. District Judge.
Nicholas Otter Robe, age 20, was sentenced on February 25, 2020, to 5 years of probation, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and $40,700 in restitution.
Otter Robe was indicted by a federal grand jury in August 2018. The charge related to Otter Robe causing extensive damage to a Chevrolet Impala and Chevrolet Suburban on June 2, 2018, at the Pine Ridge School. Otter Robe then broke a window to gain entrance to the school and entered various offices and multiple classrooms, leaving a path of destruction to federal and school property in his wake. Otter Robe caused in excess of $40,700 damage to the vehicles and federal and/or Pine Ridge School property.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Mount Vernon Man Sentenced for Distribution and Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Mount Vernon, South Dakota, man convicted of Distribution and Receipt of Child Pornography was sentenced on February 24, 2020, by U.S. District Judge Karen E. Schreier.
Richard Charles Tellinghuisen, age 29, was sentenced to 121 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Tellinghuisen was indicted by a federal grand jury on July 9, 2019. He pled guilty on November 26, 2019.
The conviction stemmed from incidents on or about September 11, 2017, and September 12, 2017, when Tellinghuisen entered a chat room on the internet hosted by KIK where he chatted with an undercover agent. Tellinghuisen distributed several videos containing child pornography to the undercover agent.
Tellinghuisen knew the files contained child pornography and he admitted to knowingly distributing files containing child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
This case was investigated by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Tellinghuisen was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Charged with Abusive Sexual Contact with a ChildRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact of a Child and Sexual Contact.
Joseph Dallas Spotted Horse, age 61, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on February 21, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, $100 to the Federal Crime Victims Fund, and restitution.
The Indictment alleges that in August of 2015, Spotted Horse knowingly engaged in sexual contact with a child who had not attained the age of 12 years. The Indictment further alleges that Spotted Horse engaged in sexual contact with an individual who at the time was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating an unwillingness to engage in the abusive sexual contact.
The charges are merely accusations and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Pierre Man Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Fort Pierre, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on February 25, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Frank Loring Miller, Jr., age 61, was sentenced to 57 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Miller was indicted by a federal grand jury on July 16, 2019. He pled guilty on December 12, 2019.
The conviction stemmed from a conspiracy that occurred between February 1, 2019, and July 16, 2019, in which Miller, knowingly and intentionally, conspired and agreed with others to knowingly and intentionally distribute and possess with intent to distribute methamphetamine in and around the Pierre and Ft. Pierre communities. As part of the conspiracy, Miller and his co-defendants traveled to Denver, Colorado to pick up methamphetamine. On June 23, 2019, law enforcement conducted a traffic stop of Miller’s vehicle wherein 236 grams of methamphetamine, a scale, pipes and other items of distribution were found.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Pierre Police Department, and the South Dakota Highway Patrol. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Miller will self-report on March 10th to the custody of the U.S. Marshals Service.
Former Watertown Woman Charged with Theft of Government FundsRead the Press Release
United States Attorney Ron Parsons announced that a former Watertown, South Dakota, woman has been indicted by a federal grand jury for Theft of Government Funds, False Statement, Concealment of Information from SSI Program, and Misuse by a Representative Payee.
Marilyn Ruth Holley, age 40, was indicted on January 7, 2020. She appeared before U.S. Magistrate Judge William D. Gerdes on February 25, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The first count of the Indictment alleges that between November 19, 2015, and April 1, 2019, Holley willfully and knowingly embezzled, stole, and purloined money from Title XVI program benefits payments made to a minor child from whom Holley was a representative payee. Title XVI is administered by the Social Security Administration.
The second count of the Indictment also alleges that on or about April 5, 2016, Holley knowingly made false statements and representations in a Social Security Administration non-medical review, that is she falsely reported that a minor child was living in her home, when he was not.
The third count of the Indictment alleges that between November 19, 2015, and April 1, 2019, Holley failed to disclose that a minor child had ceased to live in her home, in order to continue to receive and spend SSI benefits payments made by the Social Security Administration to her.
Finally, the fourth count of the Indictment alleges that between November 19, 2015, and April 1, 2019, Holley knowingly and willfully converted the minor child’s benefits to her own use.
The charges are merely accusations and Holley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Social Security Administration, Cooperative Disability Investigation Unit. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Holley was released on bond pending trial. A trial date has not been set.
Friday 28 February 2020
Woman Sentenced for Cocaine Conspiracy and Multiple Fraud SchemesRead the Press Release
ALEXANDRIA, Va. – A Nigerian woman was sentenced today to 10 years in prison and ordered to pay over $377,000 in restitution for leading a conspiracy to import more than five kilograms of cocaine into the United States, as well as to her role in a separate bank fraud scheme, and to making false statements relating to fraudulent claims submitted to Medicaid for reimbursement.
“Temitope Ayoni Olaiya, aka “Tammy”, engaged in multiple schemes carried out against the United States, implicating our healthcare system, financial system, our borders, and drug enforcement regime,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Despite coming to this country legally more than a decade ago and living on a green card, Olaiya chose to flout the law in pursuit of a diverse portfolio of criminal activities.”
According to court documents, Olaiya, 41, who resided in Hyattsville, Maryland, and is a legal permanent resident, recruited men from the greater Washington, D.C. area to act as drug couriers; i.e., to travel to foreign countries to obtain drugs to bring back into the United States. Olaiya opened bank accounts in the couriers’ names, assisted them in obtaining passports and visas, and booked their travel arrangements. The couriers that Olaiya recruited traveled primarily to São Paulo, Brazil, where they picked up kilogram quantities of cocaine hidden in the lining of soft-sided briefcases or attaché cases. Altogether, law enforcement seized nearly seven kilograms of cocaine at three different United States airports from three separate couriers recruited by Olaiya.
In addition to the cocaine importation scheme, Olaiya also submitted falsified and fraudulent claims to the D.C. Department of Health Care Finance (DHCF), a health care benefit program funded by Medicaid. Olaiya worked as a personal care aide for various home health agencies in the Washington D.C. area, and in order to receive payment for services rendered, Olaiya was required to submit timesheets signed by her clients documenting the services rendered. Instead of submitting time sheets for time actually worked providing health care services, Olaiya recruited Medicaid recipients to act as her “patients” and to sign her falsified timesheets in return for a small amount of money as a kickback. On multiple occasions, Olaiya billed DHCF for home health services she claimed to have provided while she was out of the country.
Separate and apart from the cocaine importation and the home health services scheme, Olaiya also used her African goods business in Maryland to carry out a bank fraud. Olaiya used accounts with payment platforms Square and Stripe to make fraudulent charges on stolen credit card numbers. Between June and December 2017, Olaiya submitted, or caused to be submitted, $381,500 in fraudulent credit card charges to the Stripe account. Thereafter, Olaiya switched over to Square, and in the course of about two months, racked up more than $100,000 in fraudulent charges. When Square informed Olaiya that the true account holder had challenged the transaction, Olaiya created handwritten, falsified invoices documenting items purportedly purchased by the account holder, and provided the fake invoices to Square.
This case was prosecuted as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Girl From Ipanema. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after sentencing by U.S. District Judge Liam O'Grady. Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-294 and 1:19-cr-323.
Waukesha Bar Owner Found Guilty of Arson of Commercial Building and Related ChargesRead the Press Release
United States Attorney Matthew D. Krueger announced that on February 27, 2020, a jury found Brian Whitton of Waukesha, Wisconsin, guilty of arson of a commercial business, mail fraud, use of fire to commit another felony offense, and making a false statement to federal law enforcement agent. After a four-day trial before the Honorable William C. Griesbach, Whitton was found guilty of intentionally setting fire to his business, a bar called “The Stage Off Main,” on March 25, 2017. The bar was located at 854 Martin Street in Waukesha, Wisconsin.
At the time of the fire, the building housed both Whitton’s bar and an occupied rental unit. Whitton was also convicted of executing a mail fraud scheme premised upon his submission of a fraudulent, sworn proof of loss claim to his insurance carrier, United States Liability Insurance Company, LLC, in which falsely claimed that the fire was the result of an accident. Finally, the jury found Whitton guilty of lying to an agent of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) during the course of the investigation.
The United States Attorney commented, “Arson is an extremely dangerous crime that puts the lives of the public and first responders in danger. This conviction is a testament to the strong partnership between ATF, the Waukesha Police and Fire Departments, and the United States Attorney’s Office. Together with our law enforcement partners, the United States Attorney’s Office is committed to utilizing all available resources to bring dangerous arsonists like Brian Whitton to justice.”
Whitton is scheduled to be sentenced on May 8, 2020. He faces a mandatory minimum sentence of 5 years’ imprisonment for the arson conviction, to be followed by a consecutive, mandatory minimum sentence of 10 years’ imprisonment for the use of fire to commit another felony conviction. The maximum penalty for the mail fraud conviction is 20 years in prison, a $250,000 fine, and a term of supervised release. Whitton also faces up to 5 years’ imprisonment, a $250,000 fine, and a term of supervised release for the false statement conviction.
The successful prosecution of Whitton was the direct result of a lengthy investigation conducted by ATF, the Waukesha Police Department and the Waukesha Fire Department. The case was prosecuted by Assistant United States Attorneys Kelly B. Watzka and Timothy W. Funnell.
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Waterbury Resident Admits Violating Sex Offender Registration LawRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KURTIS GASKINS, 46, of Waterbury, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to violating the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, in 1992, Gaskins was convicted in Massachusetts of sexual assault offenses. Gaskins failed to register as a sex offender in Connecticut when he moved to Connecticut in November 2018, and failed to update his sex offender registration in Massachusetts.
On October 9, 2019, the U.S Marshals Service located and arrested Gaskins in Waterbury.
Judge Arterton scheduled sentencing for May 18, 2020, at which time Gaskins faces a maximum term of imprisonment of 10 years. Gaskins is released on a $10,000 bond pending sentencing.
This matter is being investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Waterbury Man Who Stole Social Security Benefits is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ZIMER KALICI, 56, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to two years of probation, the first three months of which Kalici must serve in home confinement, for theft of Social Security benefits.
According to court documents and statements made in court, individuals are not eligible for Social Security benefits when they permanently relocate to live outside of the U.S., and eligibility for Social Security benefits terminates upon death. An investigation by the Social Security Administration Office of Inspector General (“SSA OIG”) revealed that Kalici’s father, a Social Security benefits recipient, relocated from the U.S. to Macedonia in 2009, and died in January 2010. Kalici did not report his father’s death to the Social Security Administration and, between 2009 and 2018, deposited approximately $52,417.84 worth of Social Security checks intended for his father into his own personal bank account.
In November 2018, during an interview with SSA OIG investigators, Kalici stated that his father was still alive and had left the U.S. for Macedonia in May 2018. Kalici subsequently provided SSA OIG with a false funeral internment certificate that represented his father had died on November 26, 2018.
Judge Meyer ordered Kalici to pay full restitution.
On September 23, 2019, Kalici pleaded guilty to one count of theft of public money.
Kalici also must perform 250 hours of community service while on probation.
This case was investigated by the Social Security Administration Office of Inspector General and was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
Ware Man Sentenced to 15 Years in Prison for Sex Trafficking and Sexual Exploitation of a MinorRead the Press Release
BOSTON – A Ware man was sentenced today in federal court in Springfield on sex trafficking and sexual exploitation charges.
Walter Brown, 74, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and five years of supervised release. In October 2019, Brown pleaded guilty to one count of conspiracy to commit sexual exploitation of a child, two counts of sexual exploitation of a child, one count of conspiracy to commit sex trafficking and two counts of sex trafficking. Brown was arrested on July 14, 2017 and has been detained since that time.
On Oct 11, 2019, co-defendant Claire Poole was sentenced to 125 months in prison after pleading guilty to conspiracy to commit sex trafficking and two counts of sex trafficking.
Poole moved to the Springfield area in early 2017 and later helped Brown have sex with a teenage girl. Brown induced the girl to provide pornographic videos and to have sex with him on two occasions by paying her money. Poole acted as a go-between, first by conveying Brown’s initial offer to the girl and then by relaying Brown’s messages to the victim, which included negotiations about what Brown would pay. Poole also provided a cell phone to produce the pornographic videos, and Poole transported the minor to Brown’s house in Ware for sex on two occasions.
United States Andrew E. Lelling; Hampden County District Attorney Anthony D. Gulluni; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Ware Police Chief Shawn Crevier; Monson Police Chief Stephen Kozloski; and Amherst Police Chief Scott Livingstone made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
Utility Workers Union of America, Local 369, Reruns Election Under Department of Labor SupervisionRead the Press Release
BOSTON – Utility Workers Union of America, Local 369 has rerun its 2017 election of officers under the supervision of the Department of Labor as part as a settlement resolving allegations that Local 369 failed to guarantee its members the right to vote.
The allegations of election violations were filed in April 2018, by the U.S. Attorney’s Office on behalf of the Department of Labor. The Labor-Management Reporting and Disclosure Act, which regulates labor unions, imposes certain requirements on unions in conducting their officers’ elections, including that every member has the right to vote and requiring that the union employ adequate safeguards to ensure a fair election. The Secretary alleged that Local 369 did not employ adequate safeguards and denied some members the right to vote in its 2017 officers’ election.
Local 369 and the United States Department of Labor reached a settlement agreement in September 2019. As a result of the settlement agreement, Local 369 reran one of the races from the 2017 election under the supervision of the Department of Labor. On Jan. 16, 2020, the Secretary of Labor certified the results of the election to the court as required by the settlement agreement. Last week, the court entered a final judgment in the matter, recognizing the certified results.
“The government takes these violations seriously and will hold unions accountable for ensuring that all members’ voices are heard during elections,” said United States Attorney Andrew E. Lelling.
U.S. Attorney Lelling made the announcement today. Assistant U.S. Attorneys Alexandra Brazier and Evan Panich of Lelling’s Affirmative Litigation Unit handled the matter.
U.S. Accountant Pleads Guilty in Panama Papers InvestigationRead the Press Release
A Massachusetts-based accountant who was charged along with three others in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (Mossack Fonseca), a Panamanian-based global law firm, and its related entities, pleaded guilty today to wire and tax fraud, money laundering, aggravated identity theft and other charges.
Richard Gaffey, aka “Dick Gaffey,” 75, of Medfield, Massachusetts, pleaded guilty to one count of conspiracy to commit tax evasion and to defraud the United States, one count of wire fraud, one count of money laundering conspiracy, four counts of willful failure to file Reports of Foreign Bank and Financial Accounts (Financial Crimes Enforcement Network Reports 114), and one count of aggravated identity theft.
“This defendant worked with the Mossack Fonseca law firm and exploited his role as an accountant to create fraudulent shell companies and defraud the United States of millions of dollars over decades,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s guilty plea reflects the Department’s commitment to prosecute financial professionals and other gatekeepers to the U.S. financial system who abuse the public’s trust.”
“Richard Gaffey went to extraordinary lengths to circumvent U.S. tax laws in order to maintain Harald Joachim von der Goltz’s wealth and hide it from the IRS,” said U.S. Attorney Geoffrey S. Berman of the Southern District of New York. “Using the specialized criminal services of global law firm Mossack Fonseca, Gaffey assisted others in violating U.S. tax laws for decades.”
According to the allegations contained in the indictments , other filings in this case, and statements during court proceedings, including Gaffey’s guilty plea hearing, since at least 2000 through 2018, Gaffey conspired with others to defraud the United States by concealing his clients’ assets and investments, and the income generated by those assets and investments, from the IRS through fraudulent, deceitful, and dishonest means.
During all relevant times, while acting as an accountant, Gaffey assisted U.S. taxpayers who were required to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. Gaffey helped those U.S. taxpayers evade their tax reporting obligations in a variety of ways, including by hiding the beneficial ownership of his clients’ offshore shell companies and by setting up bank accounts for those shell companies. These shell companies and bank accounts made and held investments totaling tens of millions of dollars. For one U.S. taxpayer, Gaffey advised the taxpayer how to covertly repatriate approximately $3 million to the United States by reporting to the IRS a fictitious company sale to thereby evade paying the full U.S. tax amount. Gaffey was assisted in this scheme through the use of Mossack Fonseca law firm, including Ramses Owens, a Panamanian lawyer who previously worked at the Mossack Fonseca.
Gaffey was the U.S. accountant for co-defendant Harald Joachim von der Goltz. From 2000 until 2017, von der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income. In furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, Gaffey falsely claimed that von der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike von der Goltz – was not a U.S. taxpayer. In support of this fraudulent scheme, Gaffey submitted the name, date of birth, government passport number, address, and other means of identification of von der Goltz’s elderly mother to a U.S. bank in Manhattan.
Gaffey is scheduled to be sentenced by Judge Berman on June 29, 2020. Von der Goltz, who pleaded guilty on Feb. 18, 2020, is scheduled to be sentenced by Judge Berman on June 24, 2020.
An indictment is merely an allegation and any charged defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant Attorney General Benczkowski praised the outstanding investigative work of IRS-Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and thanked the Justice Department’s Tax Division and the FBI for their significant assistance in the investigation. Assistant Attorney General Benczkowski also thanked the Criminal Division’s Office of International Affairs as well as law enforcement partners in France, the United Kingdom and Germany for their assistance in the case.
The Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), working in partnership with the Southern District of New York’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit are handling this case. MLARS Trial Attorneys Michael Parker and Parker Tobin, along with Assistant U.S. Attorneys Eun Young Choi and Thane Rehn, are in charge of 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.
U.s. Attorney Klaassen Supports Goals of the Northern ArapahoRead the Press Release
U.S. Attorney Mark A. Klaassen issued a statement today on the Northern Arapaho Tribe’s Resolution Declaring a State of Emergency of Methamphetamine Usage on the Wind River Reservation.
“Methamphetamine distribution and abuse has been a problem in Wyoming and on the Wind River Reservation for a long time, and I understand the frustration, the concern, and the sense of urgency on this issue,” said U.S. Attorney Klaassen. “Here in Wyoming, methamphetamine is by far our most significant drug issue. The production and trafficking of ever-purer forms of the drug from Mexico have lowered prices and made this addictive substance even more prevalent in our communities – with devastating consequences. We are not alone in this fight, as many western states have seen a re-emergence of methamphetamine as a drug of particular concern.”
Northern Arapaho Tribal leaders and elders announced yesterday a resolution and formation of a tribal task force to combat the distribution and abuse of methamphetamine on the Reservation. Members of the Tribe’s Business Council, elders, judges, social services and law enforcement all described the ravages caused by methamphetamine abuse on the Reservation community and voiced their joint support for the tribal task force.
“The reality is there are no quick and easy answers, and the methamphetamine problem will not be solved through law enforcement alone,” said U.S. Attorney Klaassen. “So many factors contribute to drug abuse and the demand it creates for these substances. We must address the problem from all sides and understand the root causes. All of us must work to create strong families, communities, schools and other social structures that provide positive environments – places that encourage drug resistance and provide paths to economic opportunity. We also need effective social services, mental health, and addiction recovery programs to help those who seek a path out of addiction toward a more productive life. I appreciate that the tribal resolution recognizes the need for this multi-faceted approach.”
The U.S. Attorney’s office is responsible for prosecuting drug trafficking across the State of Wyoming and on the Wind River Reservation, in conjunction with federal, state and tribal law enforcement. Working with a multi-agency and multi-jurisdictional investigative task force that is responsible for the investigation of drug traffickers, both on and off the Reservation, the U.S. Attorney’s office aggressively prosecutes all drug crime with the overarching goal of shutting down and disrupting the supply, distribution, use and abuse of controlled substances, including methamphetamine.
Recent successful felony prosecutions involving the Wind River Indian Reservation have resulted in the prosecution of ten drug-trafficking defendants. These prosecutions include defendants operating off-reservation who supplied persons on the Reservation involved in distributing user quantities of methamphetamine to addicted persons residing on tribal lands.
“We have had some recent success, but there is always more that can be done,” said U.S. Attorney Klaassen. “My office is committed to doing our part and working with the Tribes to improve our collective efforts to combat drug crime, particularly methamphetamine, on the Wind River Indian Reservation and across the state. We look forward to working with the Northern Arapaho Task Force as an opportunity to re-evaluate our efforts and make sure we are dedicating the federal resources necessary and taking the right approach to the fight against methamphetamine.”
Two defendants who sold significant amounts of heroin in tribal community plead guiltyRead the Press Release
Seattle – A couple who resided on the Upper Skagit Indian Reservation pleaded guilty today and yesterday to conspiracy to distribute heroin, announced U.S. Attorney Brian T. Moran. RYAN ERIC FLETCHER, 30, pleaded guilty on February 27, 2020, and Upper Skagit member LINNETTE TORRES, 29, pleaded guilty today in U.S. District Court in Seattle. Both face up to twenty years in prison when sentenced by U.S. District Judge Robert S. Lasnik on May 15, 2020.
“The FBI and Upper Skagit Police Department worked closely and collaboratively on this case to remove a chronic source of heroin from the Upper Skagit community,” said U.S. Attorney Brian T. Moran. “I am committed to working with our Tribal partners to combat the scourge of drug addiction in our communities.”
According to records filed in the case, FLETCHER was known to law enforcement in the Upper Skagit and had been ordered excluded from the reservation. Nevertheless, he violated that exclusion order and with TORRES conspired to sell heroin in the community. Last summer a person working with law enforcement purchased heroin from both FLETCHER and TORRES. On August 21, 2019, law enforcement served a court-authorized search warrant on the couple’s home and on a storage unit they controlled. In the home, they found heroin, a loaded Glock pistol, a rifle, and various types of ammunition. In the storage unit, they found an AR-15 style firearm, another Glock, and a variety of pills, as well as other drug dealing paraphernalia.
The case was investigated by the FBI and the Upper Skagit Police Department.
The case is being prosecuted by Assistant United States Attorneys Chantelle Dial and J. Tate London.
Two RGV woman convicted in meth conspiracyRead the Press Release
McALLEN, Texas – Two local women have admitted to conspiring with each other to import approximately 50 kilograms of 99% pure meth from Mexico, announced U.S. Attorney Ryan K. Patrick.
Helen Garza, 43, Rio Grande City, and Herminia Cantu-Garcia, 43, Roma pleaded guilty today and Feb. 26, respectively.
The woman planned to import the narcotics Dec. 4, 2019. On that date, Garza drove a car from Mexico and attempted to enter the United States through the Roma Port of Entry. Authorities inspected the vehicle and found hidden compartments within its tires. Upon further examination, they ultimately found multiple bundles containing 50 kilograms of meth with a value of approximately $170,000.
Garza admitted she knew there were drugs in the car.
Further investigation revealed Cantu-Garcia had coordinated the drug trafficking with Garza and other individuals.
U.S. District Judge Randy Crane accepted the pleas and has set sentencing for May 4 and 12 for Cantu-Garcia and Garza, respectively. At that time, both women face up to life in federal prison and a possible $10 million fine.
They both have been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Border Patrol and Customs and Border Protection. Assistant U.S. Attorney Kristina Pekkala is prosecuting the case.
Two Plead Guilty to Running a Large Cross-Country Drug Trafficking OrganizationRead the Press Release
PITTSBURGH – Two defendants accused of running a large-scale cross-country drug trafficking organization have pleaded guilty to federal narcotics and firearm charges, United States Attorney Scott W. Brady announced today.
Don Juan Mendoza, 42, formerly of Atlanta, GA, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 5 kilograms or more of cocaine, possession with the intent to distribute 5 kilogram or more of cocaine, possession of a firearm by a convicted felon and possession of a firearm in furtherance of a drug trafficking crime. Pedro Blanco, 38, a former resident of Jacksonville, FL, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 5 kilograms or more of cocaine, possession with the intent to distribute 5 kilogram or more of cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
Both defendants pleaded guilty before Chief United States District Judge Mark R. Hornak. In all, both defendants accepted responsibility for between 50 kilograms and 150 kilograms of cocaine. Judge Hornak scheduled Blanco’s sentencing for June 16, 2020. Mendoza’s sentencing is scheduled for June 17, 2020. Both defendants have been detained since their initial appearances and will remain detained pending sentencing.
According to information presented to the court, from April 2017 to November 5, 2017, both defendants conspired with others to import large quantities of cocaine and marijuana into Western Pennsylvania. Today, both defendants admitted that they personally sourced the cocaine and marijuana from out of state sources, including Los Angeles on at least one occasion. Mendoza and Blanco would arrange for the narcotics to be driven to 146 Harvest Drive, the home of co-defendant Jamie Lightfoot, Jr., from out of state in a Mercedes Sprinter ‘Sno Cold’ Van, with a picture of Don Juan Mendoza’s wife covering the outside, and eventually a large RV. On different occasions, Blanco would actually travel in the van or the RV. Once the drugs came into Western Pennsylvania, other co-conspirators would use the Harvest Drive residence and other locations to break down, repackage, and distribute the drugs. The drugs would then be distributed to co-conspirators in almost every region of Western Pennsylvania.
Later on November 5, 2017, an FBI and Pennsylvania State Police Task Force executed a search warrant at 146 Harvest Drive after the RV arrived at the location with Blanco inside the RV. The search netted 52 kilograms of cocaine and heroin, 85 pounds of marijuana, illegal steroids, three firearms, and nearly one million dollars in cash. Mendoza arrived at the scene in another vehicle and was also taken into custody at the time.
Later on November 19, 2017, FBI executed a search warrant at Don Juan Mendoza’s home in Atlanta, GA and recovered hundreds of thousands of dollars in cash, a hydraulic kilogram press, and other drug paraphernalia and drug packaging material. As part of his plea, Mendoza agreed to forfeit all of these items.
The law provides for a maximum sentence of not less more than 20 years in prison and/or a fine of not more than $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Timothy M. Lanni and Shaun Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Two New York Men, Members of Counterfeiting Ring, Sentenced to Years in Prison for Trafficking Fake Super Bowl and Other Game and Concert TicketsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Damon Daniels, 49, of Bronx, New York, was sentenced today to 24 months’ imprisonment and three years’ supervised release by the United States District Court Judge R. Barclay Surrick for his participation in a conspiracy to produce and sell counterfeit tickets to sporting events and concerts. One of his co-defendants, Rahiem Watts, 31, also of Bronx, New York, was sentenced last week to 41 months’ imprisonment and three years’ supervised release, also by Judge Surrick for his role in the same scheme.
Daniels pleaded guilty in September 2019 to charges including conspiracy to commit wire fraud, wire fraud, and conspiracy to traffic in counterfeit goods, and Watts pleaded guilty to similar charges in November 2019. The charges stem from both defendants’ participation in a scheme with others to create counterfeit tickets to sporting events and concerts held in Philadelphia and throughout the country. The counterfeit tickets bore the authentic trademarks of the respective organization or agency that was registered with the United States Patent and Trademark Office.
Specifically, Daniels and Watts printed counterfeit tickets for events, sold the counterfeit tickets at various venues, and also distributed the counterfeit tickets to other sellers nationwide for resale to victims. The defendants and their associates advertised the fake tickets on websites like Craigslist, tricking unsuspecting fans into paying hundreds of dollars with nothing to show for it.
High-profile games for which the group created counterfeit tickets include Super Bowl LI (51) in Houston, Texas between the Patriots and the Falcons; the September 2017 Eagles v. Giants NFL game in Philadelphia; and the March 2017 NCAA Men’s Basketball ACC Conference Championship game between Duke and Notre Dame at Barclays Center in Brooklyn, New York.
High-profile concerts for which the group created counterfeit tickets include the September 2016 Adele show at Wells Fargo Center in Philadelphia, and the June 2017 U2 “The Joshua Tree Tour” at Lincoln Financial Field, also in Philadelphia.
“Big games and concerts obviously draw the interest of fans, but unfortunately, they also draw the interest of scammers,” said U.S. Attorney McSwain. “These criminals try to use these events to make a quick buck at the expense of unsuspecting fans. In order to protect against fraud, I encourage event-goers to purchase tickets through authorized vendors and to be skeptical when it comes to ticket deals that seem too good to be true.”
“Watts and Daniels peddled their fake tickets for real profit and burned a lot of innocent people in the process,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Victims lost not only their money, but their shot to attend some very special events. Know that the FBI will keep cracking down on counterfeiters trying to sell the public a false bill of goods.”
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Manhattan District Attorney’s Office, the New York City Police Department, and the Duluth, Georgia Police Department. It is being prosecuted by Assistant United States Attorneys Joan E. Burnes and Anita Eve.
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Wilmington has returned indictments charging OMAR LABRA-TREJO, age 50, of Mexico, and JOSE GUILLERMO LEIVA-GALVAN, age 34, of Honduras, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry, LABRA-TREJO, previously deported twice and found in Warren County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
LEIVA-GALVAN, previously deported and found in New Hanover County, is alleged to have been previously removed subsequent to an aggravated felony conviction (felony larceny). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
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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.
Twice Deported Mexican Resident Charged with Assaulting Departation OfficersRead 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 Luis Estrada-Alvarez, 31, a citizen and native of Mexico, was arrested and charged by criminal complaint with illegal re-entry after deportation and forcibly assaulting and resisting Deportation Officers causing bodily injury. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, on February 19, 2020, Deportation Officers with Enforcement and Removal Operations attempted to arrest the defendant following a traffic stop in front of the North Rose Fire Hall on North Huron Street in Rochester. Officers had been surveilling Estrada-Alvarez after receiving information that the defendant was back in the United States despite two previous deportations.
As Estrada-Alvarez exited the vehicle, he immediately attempted to run. In evading arrest, the defendant forcefully pulled his arms away from the officers and thrust his head backwards in an attempt to head-butt one of them. Estrada-Alvarez refused to stop fighting, and eventually had to be taken to the ground and handcuffed. Thereafter, he was transported to the Buffalo Federal Detention Facility in Batavia, NY.
In the course of this encounter, Estrada-Alvarez caused bodily injury to two of the Deportation Officers. One of the Officers suffered injuries to his left arm and right knee, while the other suffered injuries to his right shoulder, elbow, and wrist.
The complaint is the result of an investigation by the Department of Homeland Security—Enforcement and Removal Operations, under the direction of Thomas E. Feeley, Director, Buffalo Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Three Men Plead Guilty to Fraud in Hurricane Michael Repair ScamRead the Press Release
PANAMA CITY, FLORIDA – Three Tampa Bay-area men entered guilty pleas yesterday to defrauding
elderly Northwest Florida homeowners whose homes suffered damage from Hurricane Michael. The
Florida men – Edward Newton, 45, of Lutz, Christopher Mayes, 29, of Tarpon Springs, and Christian
Pantazonis, 31, of Largo – pled guilty to charges of fraudulently contracting to make home repairs
in the Panama City area but instead, stole approximately $319,000 in down payments. The guilty pleas were announced by Lawrence Keefe, United States Attorney for the Northern District of FloridaThe Indictment charged that a Tampa Bay-area company owned by Newton hired Mayes and Pantazonis in November 2018 to go door to door in Bay County soliciting home repair contracts. They promised that
the repair work would begin immediately, telling homeowners they required a down payment to obtain building materials and permits or to “place the homeowner at the front of the line” for repairs. As
part of the fraud, they occasionally sent workers to complete small projects, such as removing damaged drywall or replacing shingles, in order to lead the homeowners to believe the major repairs
were underway. When homeowners began to complain about the lack of work, Newton told them in writing or by phone that he would return the money he collected for the work never performed.
However, on May 25, 2019, he sent each homeowner a letter stating that he did not intend to complete any of the contracted work and would not return any money.“To anyone who endured the devastation of Hurricane Michael, it is almost inconceivable that anyone
could stoop so low as to prey on the storm’s victims in such a craven way,” U.S. Attorney Keefe
said. “These men took advantage of trusting people in their time of greatest need, and I am pleased
that our office has brought these thieves to justice.”Each defendant pled guilty to wire fraud and conspiracy to commit wire fraud and faces a maximum of
20 years’ imprisonment and a $250,000 fine. Sentencing hearings are scheduled for July 2, 2020, at
1:00pm at the United States Courthouse in Tallahassee.The case resulted from an investigation by a partnership of law enforcement agencies and
prosecutors at all levels of government, including the Federal Bureau of Investigation, the Panama
City Police Department and the Bay County Sheriff’s Office. Assistant United States Attorney Aine
Ahmed is prosecuting the case.The prosecution is part of the Office’s wider efforts to combat crimes against seniors. The
initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution
of these cases and enhance its overall support of older or vulnerable victims.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern District
of Florida, visit http://www.justice.gov/usao/fln/index.html.The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the
history of our agency at www.Justice.gov/Celebrating150Years.Three Maryland Men Sentenced to at Least 10 Years in Federal Prison for Conspiracy to Distribute Fentanyl in Baltimore Trafficked from Sinaloa and Tijuana Drug CartelsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow has sentenced Nevone McCrimmon, age 48, of Edgewood, Maryland to 14 years in federal prison; and sentenced co-defendants William Elijah, age 52; and Terrance Mobley, age 51, both of Baltimore, Maryland, each to 10 years in federal prison, all followed by five years of supervised release, for the federal charge of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; Baltimore City Sheriff John Anderson; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore.
“Fentanyl is one of the most lethal threats facing Maryland right now. As little as two milligrams of fentanyl can be a lethal dose, and the 20 kilograms of fentanyl seized in this case to date is enough to kill 10 million people—more than one and a half times the population of Maryland,” said Maryland U.S. Attorney Robert K. Hur. “We are working with our partners to attack the sources of supply, as well as the street dealers who are committing the most violence in our neighborhoods.”
“Fentanyl exacts a deadly toll in our community and in communities across the country,” said HSI Baltimore Special Agent in Charge John Eisert. “This problem crosses state and international borders and requires partnership between law enforcement agencies. We’re grateful for our allies in this battle against the opioid scourge.”
According to their plea agreements and other court documents, beginning in about May 2017 through October 2018, Nevone McCrimmon was the leader of the McCrimmon drug-trafficking organization (DTO), and William Elijah and Terrance Mobley were associates of McCrimmon, assisting with the day-to-day operations of the McCrimmon DTO, including the collection of money for and the distribution heroin and fentanyl to the DTO’s customers. The McCrimmon DTO obtained its heroin and fentanyl from Mexican drug cartels. The DTO would order kilograms of heroin and fentanyl from members and associates of the Jesus Prieto DTO, located in Miami. Florida.
As detailed in their plea agreements, members of the Prieto DTO would travel to the mid-Atlantic area to collect large sums of cash from the McCrimmon DTO, which would then be conveyed directly to members of various Mexican drug-trafficking cartels. The cartels would then facilitate the transportation of heroin and fentanyl to co-conspirators in California. The narcotics would then be transported from California to Baltimore for delivery to the McCrimmon DTO.
In August 2018, federal law enforcement agents intercepted a shipment of 20 kilograms of fentanyl in Ventura, California, that was intended for delivery to the McCrimmon DTO in Maryland. Law enforcement transported the fentanyl to Maryland and conducted a “controlled delivery” to a member of the McCrimmon DTO.
During the investigation, law enforcement seized more than 20 kilograms of fentanyl and over $500,000 in cash.
According to the U.S. Drug Enforcement Administration’s National Drug Threat Assessment, Mexican DTOs pose the greatest crime threat to the United States. The cartels use drug trafficking and other criminal activities, such a money laundering, bribery, and gun trafficking, to obtain power, influence, and money, while protecting its activities through a pattern of violence and corruption. To combat this threat, the Department of Justice has formed a Transnational Organized Crime Task Force to coordinate and optimize the Department’s efforts to dismantle the cartels and other priority targets.
United States Attorney Robert K. Hur commended the DEA, the Baltimore Police Department, the Baltimore City Sheriff’s Office, the Baltimore County Police Department; and HSI-Baltimore for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys John W. Sippel, Jr., LaRai Everett, and Lauren Perry, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Springfield Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to sex trafficking.
William Coleman, 48, pleaded guilty to one count of conspiracy to commit sex trafficking and nine counts of sex trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 9, 2020. Coleman has been in custody since his arrest on Dec. 23, 2018.
Coleman ran a prostitution business in the Springfield area, the greater Hartford, Conn., area, and other parts of Connecticut, from 2016 to 2018. Coleman used violence and the drug addictions of eight female victims to coerce them into engaging in commercial sex acts with paying customers. The victims were typically required to turn over all of their earnings to Coleman, and their daily lives were tightly controlled by him. Most of the women were not allowed to keep any of the money they earned, and they were only to obtain their drugs – in most cases, heroin – from Coleman. Victims who did not engage in prostitution for Coleman, or who did not follow his rules, were subjected to physical assaults, sexual violence and the withholding of drugs. Coleman used websites to post prostitution advertisements for the victims working for him.
The maximum sentence for sex trafficking and conspiracy to commit sex trafficking is life in prison, up to life of supervised release and a $250,000 fine. The charge of sex trafficking provides for a mandatory minimum sentence of 15 years and up to life in prison, up to life of supervised release and a $250,000 fine. According to the terms of the plea agreement, Coleman will be sentenced to 186 months in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Hampden County District Attorney Anthony D. Gulluni; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Springfield Police Commissioner Cheryl Clapprood; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
Southern Maryland Man Convicted After One-Week Trial on Federal Fentanyl Distribution Conspiracy Charges, Including Distribution of Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Rodney Mondell Coby, a/k/a “Cuz,” age 31, of Waldorf, Maryland, on the federal charges of distribution of fentanyl resulting in death, conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of firearms and ammunition.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Charles County Sheriff Troy D. Berry.
U.S. Attorney Robert K. Hur stated, “Rodney Coby knew that the fentanyl he was distributing was killing people, but he continued anyway. Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution—especially when they use guns to ply their trade. We will continue to work with our law enforcement partners to stop the tragic deaths resulting from opioid overdoses.”
“Coby was dealing fentanyl, a dangerous drug that is killing far too many people in the DMV,” said DEA Special Agent in Charge Jesse Fong. “Cases like this are a great example of the work we are doing, side-by-side with our local law enforcement partners and federal prosecutors, to send a resounding message that drug dealers who callously profit by distributing deadly drugs in our neighborhoods will be held accountable.”
According to the evidence presented at his seven-day trial, Coby and his co-defendant, Steven Jerome, distributed fentanyl to an individual on September 6, 2017, resulting in the death of the victim. According to Steven Jerome’s plea agreement, after meeting with Coby for the drug transaction, Jerome and the individual used the fentanyl that Coby distributed. The individual immediately showed signs of overdosing. Because there was an unrelated warrant for Jerome’s arrest, however, Jerome did not call first responders or otherwise seek help for the individual. Instead, Jerome drove the individual from Waldorf to the St. Clement Shores neighborhood of St. Mary’s County, and walked to his mother’s house. Jerome’s mother then called first responders, who were unable to resuscitate the individual.
Further, the evidence introduced at trial also proved that Coby distributed fentanyl on November 29, 2017, resulting in the death of a second victim.
On April 13, 2018, law enforcement recovered five firearms from Coby’s apartment, including a loaded .45-caliber semi-automatic pistol from Coby; a .357-caliber semi-automatic pistol; a 5.7x28mm semi-automatic pistol; a .300-caliber semi-automatic AR type pistol, a 7.62x39 caliber semi-automatic AK type pistol, as well as 159 rounds of various types of ammunition. The .45-caliber semi-automatic pistol was found in a backpack next to 121 individual baggies of fentanyl and a bag of cocaine base. As such, the jury determined that Coby possessed the .45-caliber pistol in furtherance of his drug trafficking. During the execution of a search warrant at Coby’s apartment, law enforcement officers recovered a total of over 200 grams of a heroin/fentanyl mixture, over 40 grams of cocaine base, 12 cell phones, a money counter, four digital scales, over $22,000 in U.S. currency, and jewelry including a Rolex, gold chain, and gold and diamond grills. Moreover, Coby had a previous felony conviction and was prohibited from possessing firearms or ammunition.
Coby faces a mandatory minimum of 20 years and up to life in prison for distribution of fentanyl resulting in death. Coby also faces a maximum sentence of 40 years in prison for the conspiracy and for possession with intent to distribute controlled substances; a maximum of life in prison for possession of a firearm in furtherance of a drug trafficking crime; and a maximum of 10 years in prison for being a felon in possession of firearms and ammunition. U.S. District Judge George J. Hazel has not yet scheduled sentencing for Coby. Coby has been in custody since his arrest on April 13, 2018.
Steven Jerome, age 33, of Leonardtown, Maryland, pleaded guilty before trial to distributing fentanyl. As detailed in his plea agreement, two individuals, including Jerome’s mother, died as a result of his distributing fentanyl to them. Jerome admitted to one of his associates that he worked with Coby to distribute narcotics. Jerome and the government have agreed that, if the Court accepts the plea agreement, Jerome will be sentenced to 150 months in federal prison. Judge Hazel has scheduled sentencing for Jerome on June 15, 2020 at 2:00 p.m.
United States Attorney Robert K. Hur commended the DEA, the St. Mary’s County Sheriff’s Office, and the Charles County Sheriff’s Office for their work in the investigation, and thanked the Prince George’s County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Erin Pulice, who are prosecuting the case.
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Six defendants charged in conspiracy to distribute crack cocaine in Northern New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Jose Mendoza, 32, and Natalie Mendoza, 35, of Medanales, New Mexico, Ryan Rodriguez, 27, of Chamita, New Mexico, Andrea Rodriguez, 28, and Edvardo Carlson, 39, of Espanola, New Mexico, and Bridget Archuleta, 31, of San Juan Pueblo, New Mexico appeared in federal court today for arraignment on an indictment charging them with various drug trafficking offenses involving crack cocaine (cocaine base) in Rio Arriba County, New Mexico from Oct. 2, 2019, to Feb. 25, 2020.
A grand jury returned an indictment against the defendants on Feb. 25. Federal agents arrested them on Feb. 27 with assistance from state and local law enforcement. According to public court records, Jose Mendoza, and his wife, Natalie Mendoza, allegedly were high-level suppliers of cocaine in the Espanola Valley of New Mexico. Natalie Mendoza allegedly kept records of drug sales and collected proceeds from drug transactions. Ryan Rodriguez allegedly acted as a mid-level cocaine distributor. He allegedly received supplies of cocaine from Jose and Natalie Mendoza, converted it to crack cocaine, and distributed it by the ounce to customers, including an undercover agent posing as a lower level drug trafficker.
Ryan Rodriguez’s girlfriend, Bridget Archuleta allegedly participated in drug sales with Rodriguez. Ryan Rodriguez’s sister, Andrea Rodriguez, allegedly delivered drugs to customers on Ryan Rodriguez’s behalf. Edvardo Carlson allegedly conducted drug transactions at Ryan Rodriguez’s direction. The defendants allegedly communicated extensively by telephone and text message about their drug trafficking business. According to court records, Jose Mendoza and Natalie Mendoza also laundered proceeds from their drug trafficking by making large cash payments on auto loans and large cash deposits into accounts at credit unions.
Summary of the Charges
Count 1 of the indictment charges all six defendants with conspiracy to distribute cocaine base. The maximum penalty on conviction varies for each defendant.
Counts 2, 5, 7, 9, and 11 charge certain defendants with use of a telephone to facilitate a drug trafficking offense. The maximum penalty on conviction is up to four years in prison.
Count 3 of the indictment charges certain defendants with distribution of cocaine base. The maximum penalty on conviction is up to 20 years in prison.
Counts 4, 6, 8, and 10 of the indictment charge certain defendants with distribution of 28 grams or more of cocaine base. The maximum penalty on conviction is from five to 40 years in prison.
Count 12 of the indictment charges certain defendants with possession with intent to distribute 280 grams or more of cocaine base. The maximum penalty on conviction is 10 years to life in prison.
Charges Against Defendants
Jose Mendoza is charged in Counts 1, 2, 9, 10, 11, and 12. He was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Natalie Mendoza is charged in Counts 1, 2, 5, 7, 9, 10, and 12. She was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Ryan Rodriguez is charged in all 12 counts of the indictment. He was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Andrea Rodriguez is charged in Counts 1 and 3. She was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Edvardo Carlson is charged in Counts 1, 6, 7, and 8. He was arrested on Feb. 27 and is in custody pending a detention hearing on Mar. 2.
Bridget Archuleta is charged in Counts 1, 4, 11, and 12. She was arrested on Feb. 27 and is in custody pending a detention hearing later today.
An indictment is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This indictment is the product of a joint federal investigation by Homeland Security Investigations and the Drug Enforcement Administration with assistance from the High Intensity Drug Trafficking Area (HIDTA) Region III Narcotics Task Force which includes members of the BIA, New Mexico State Police, the Santa Fe Police Department, the Santa Fe County Sheriff and the Taos Police Department. Assistant U.S. Attorneys Peter Eicker and Matthew Nelson are prosecuting the case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Sitting Kauai County Councilmember and Eleven Others Charged with Participation in a Drug Trafficking OrganizationRead the Press Release
KAUAI, Hawaii – Kenji M. Price, the United States Attorney for the District of Hawaii, Jonathan E. Blais, Special Agent in Charge of the Seattle Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Todd Raybuck, Chief of the Kauai Police Department (“KPD”), and Lucia Cabral-Dearmas, Department of Homeland Security, Homeland Security Investigations, Honolulu Office (“HSI”) announced the unsealing of an Indictment today charging ARTHUR BRUN, and 11 other defendants with conspiring to distribute methamphetamine. The Indictment also charges substantive drug trafficking offenses, an assault on a federal law enforcement officer, witness tampering, evidence tampering, and firearm offenses. As alleged in the Indictment, BRUN participated in these offenses while serving as an elected member of the Kauai County Council.
Eleven of the defendants were arrested yesterday and will be arraigned in federal court later today before the Honorable Rom Trader, United States Magistrate Judge. The twelfth defendant, ORLANDO MANGUCHEI, was already in federal custody serving a sentence for violating the terms of supervised release.
As alleged in the Indictment unsealed yesterday[1]:
From at least June 2019, and continuing to in or about January 2020, ARTHUR BRUN, aka “Ata,” MALUELUE UMU, aka “Malu,” KELVIN KAUWILA KAI, aka “Kauwila,” STEVEN KELIIKULI, KANIU HUIHUI, SHEENA MILLARE, EFREN YANOS, KIRSTEN MAKANOE AYAU, aka “Makanoe,” ORLANDO MANGUCHEI, aka “Ole,” ROBBY SILVA, HAIDEE SUEYASU, and PHRYSTAL BACIO, the defendants, and others known and unknown, conspired to distribute and possess with intent to distribute a mixture and substance containing a detectable amount of methamphetamine.
BRUN ran this drug trafficking conspiracy while, at the same time, serving as an elected member of the Kauai County Council and the Vice Chair of its Public Safety & Human Services Committee. One of BRUN’s suppliers of methamphetamine was UMU, who was a “shot caller,” or leader, of the United Samoan Organization, a gang that operates both inside and outside of the prison system in the State of Hawaii.
On or about October 29, 2019, BRUN assaulted a state law enforcement officer who was acting in cooperation with and under the control of federal officers. BRUN committed this assault during a traffic stop in an effort to conceal methamphetamine that he had in his possession at the time. The officer asked BRUN to get out of his car and gave him other instructions. Instead of complying with the officer’s commands, BRUN placed the vehicle in drive and sped off, injuring the police officer, who had his hand and shoulder in the car as he tried to remove the keys from the ignition. BRUN then led the police on a high speed chase during which he threw a backpack containing approximately one pound of methamphetamine out of the car.
After the assault, BRUN made efforts to conceal the methamphetamine to avoid its use in any official proceeding by attempting to corruptly persuade another person to provide false information to the KPD about the ownership of the backpack.
Multiple defendants possessed or conspired to possess firearms or ammunition. In January 2020, KELIIKULI possessed a Smith and Wesson .38 Special, and six rounds of ammunition, after having been convicted of a felony. Also in January 2020, SILVA possessed various sizes, calibers, and types of ammunition after having been convicted of a felony. In about October 2019, BRUN conspired to supply a firearm and ammunition to MANGUCHEI, despite both men having previously been convicted of a felony.
* * *
Charts containing the name, ages, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
U.S. Attorney Price praised the outstanding investigative work of the ATF, KPD, and HSI. He also thanked the United States Marshals Service Fugitive Task Force, the Federal Bureau of Investigations, the United States Postal Inspection Service, and the Coast Guard Investigative Service for their assistance.
Assistant U.S. Attorneys Sean Van Demark and Micah Smith are handling the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT CHARGE DEFENDANT(S) MAX. PENALTIES 1 Drug trafficking conspiracy
21 U.S.C. § 846 ARTHUR BRUN (48)
MALUELUE UMU (50)
KELVIN KAUWILA KAI (38)
STEVEN KELIIKULI (50)
KANIU HUIHUI (39)
SHEENA MILLARE (37)
EFREN YANOS (57)
KIRSTEN MAKANOE AYAU (36)
ORLANDO MANGUCHEI (48)
ROBBY SILVA (57)
HAIDEE SUEYASU (43)
PHRYSTAL BACIO (37) Life in prison
Mandatory minimum of 10 years in prison 2 Distribution of methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) ARTHUR BRUN
SHEENA MILLARE 20 years in prison 3 Attempted possession of methamphetamine with intent to distribute
21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and 846 ARTHUR BRUN
KANIU HUIHUI 40 years in prison
Mandatory minimum of five years in prison 4 Possession of methamphetamine with intent to distribute
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A) ARTHUR BRUN
MALUELUE UMU Mandatory minimum of 10 years in prison 5 Assault of a Federal Law Enforcement Officer
18 U.S.C. §§ 111(a)(1) and 111(b) ARTHUR BRUN 20 years in prison 6 Obstruction of Justice through Evidence Tampering
18 U.S.C. § 1512(c)(1) ARTHUR BRUN
KELVIN KAUWILA KAI 20 years in prison 7 Distribution of methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) ARTHUR BRUN 20 years in prison 8 Distribution of methamphetamine
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) ARTHUR BRUN 20 years in prison 9 Obstruction of Justice through Witness Tampering
18 U.S.C. § 1512(b)(3) ARTHUR BRUN 20 years in prison 10 Felon in Possession of a Firearm and Ammunition
18 U.S.C. § 922(g)(1) STEVEN KELIIKULI 10 years in prison 11 Possession of methamphetamine with intent to distribute
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B) ROBBY SILVA 40 years in prison
Mandatory minimum of five years in prison 12 Felon in Possession of Ammunition
18 U.S.C. § 922(g)(1) ROBBY SILVA 10 years in prison 13 Conspiracy to Possess Firearm and Ammunition as Felons
18 U.S.C. § 371 ARTHUR BRUN
ORLANDO MANGUCHEI 5 years in prison_________________
[1] As the introductory phrase signifies, the entirety of the text of the Indictment is merely an accusation and that the defendant(s) are presumed innocent until and unless proven guilty.
Santa Rosa Doctors Indicted for Tax FraudRead the Press Release
SAN FRANCISCO - A federal grand jury returned a superseding indictment against Robert Rowen and Teresa Su, charging them with conspiracy to defraud the United States, announced United States Attorney David L. Anderson and Internal Revenue Service (IRS) Special Agent in Charge Kareem Carter. In addition, each defendant also was charged with a separate count of tax evasion.
According to the indictment, Rowen and Su, ages 69 and 66, respectively, of Sebastopol, Calif., are a married couple who practiced medicine from their clinic in Santa Rosa. The medical doctors allegedly conspired to evade payment of Rowen’s federal income tax liabilities by concealing Rowen’s ability to pay his 1992 through 1997 and 2003 through 2008 federal income tax liabilities. Specifically, Rowen and Su allegedly placed his assets out of the reach of the United States Government, placed assets in the names of other persons or entities, deposited Rowen’s revenue into nominee bank accounts, used cash to conduct personal and professional business, converted his revenue into gold and silver coins, and provided false information to the IRS.
The indictment provides a description of various methods the couple allegedly used to conceal Rowen’s income. For example, the indictment describes how the couple instructed patients to make their checks for medical services payable to gold dealers who, in turn, purchased gold and silver coins. In addition, the indictment alleges Rowen formed a company named Lotus Management LLC to receive revenue from a different company. Rowen then deposited the funds into a bank account opened in the name of Lotus Management LLC, and used the proceeds to purchase gold and silver coins. Further, the couple allegedly used cash to pay the rent for the medical practice as well as to pay the balance on credit cards used to cover various business and personal expenses.
In sum, the indictment alleges that between January 3, 2007, and April 11, 2014, Rowen, both individually and through nominees, converted over $3,900,000 of his revenue to gold and silver coins. Count one of the superseding indictment charges Rowen and Su with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371, and counts two and three of the superseding indictment charges the defendants each with one count of tax evasion, in violation of 26 U.S.C. § 7201.
A superseding indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the conspiracy count, the defendants face a maximum sentence of five years imprisonment, and a fine of $250,000, plus restitution. If convicted of tax evasion, the defendant faces a maximum sentence of three years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rowen and Su made a federal court appearance on the superseding indictment on February 26, 2020. The defendants currently are released on a $200,000 bond. The matter was assigned to the Honorable Charles R. Breyer, U.S. District Judge who scheduled the trial in the case to begin on February 22, 2021.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the IRS.
Sanofi Agrees to Pay $11.85 Million to Resolve Allegations That it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Sanofi-Aventis U.S., LLC (“Sanofi”), has agreed to pay $11.85 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation, The Assistance Fund (“TAF”).
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
Sanofi sells Lemtrada, a multiple sclerosis drug that costs nearly $100,000 per patient per year. Medicare co-pays for Lemtrada can be many thousands of dollars per year. The cost of the drug often presents significant barriers to access for Medicare patients.
The government alleged that TAF, an entity claiming 501(c)(3) status for tax purposes, operates funds, including a fund for MS patients, that pay the co-pays of certain patients, including Medicare patients, who were prescribed Lemtrada. TAF allegedly raised its maximum per-patient grant allocation to $20,000 specifically to accommodate Lemtrada patients. During the relevant time period, TAF’s MS fund frequently ran out of funding and was closed to new patients. If any patients applied for co-pay assistance at a time when the MS fund was out of funding and closed to new patients, TAF did not maintain a wait list of such patients. As a consequence, whenever TAF’s MS fund opened to new patients, the fund provided grants to the patients who applied immediately after the opening and did not provide grants to patients who had sought to apply earlier but at a time when the fund was closed.
The United States further alleged that Sanofi made payments to TAF not with a charitable purpose but rather with the intention of using TAF as a conduit to pay the financial obligations, including Medicare co-pay obligations, of patients taking Lemtrada, and that Sanofi’s payment through TAF of Medicare co-pays for Lemtrada violated the Anti-Kickback Statute. To effectuate its scheme, Sanofi worked with its third-party reimbursement hub to identify Medicare patients for whom physicians had prescribed Lemtrada, but who had not yet received infusions of the drug because they lacked sufficient funds to afford the co-pays for Lemtrada. Sanofi made nine payments to TAF during 2015 and 2016. At the times Sanofi made eight of these nine payments, TAF’s MS fund had run out of funding, and was closed to new patients. In conjunction with its payments to TAF, and knowing that TAF’s MS fund did not maintain wait lists and would fund the first patients who applied for assistance after the fund received new funding, Sanofi instructed its hub quickly to refer as many Lemtrada patients as possible to the TAF MS fund. As a result, when TAF’s MS fund opened with funding from Sanofi, Lemtrada patients received a disproportionately large share of the Medicare co-pay grants TAF issued and patients taking MS drugs other than Lemtrada received a disproportionately small share of the Medicare co-pay grants TAF issued.
“According to the allegations in today’s settlement agreement, Sanofi used a supposed charity as a conduit to funnel money to patients taking Sanofi’s very expensive drug, all at the expense of the Medicare program,” said United States Attorney Andrew E. Lelling. “This office will continue to pursue drug companies for violations of the anti-kickback laws. We commend Sanofi for swiftly resolving the government’s allegations.”
“Sanofi sought to undermine the Medicare program through its use of kickbacks disguised as routine charitable donations aimed at helping patients battling multiple sclerosis and who were struggling with costly copays,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “They rigged the system so those taking its drug Lemtrada gained an unfair advantage over patients using other medications, and with today’s settlement, they are finally being held accountable for their actions.”
Sanofi has also entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Sanofi implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, and compliance-related certifications from company executives and Board members.
A limited liability partnership formed by a former employee of Sanofi’s predecessor, Genzyme Corporation, brought these allegations through a whistleblower lawsuit. Under the qui tam provisions of the False Claims Act, private individuals, known as relators, can sue on behalf of the government for false claims and share in any recovery. In connection with today’s announced settlement, the partnership will receive approximately $2.7 million of the recovery.
U.S. Attorney Lelling, HHS-OIG Chief Counsel Demske and FBI SAC Joseph Bonavolonta made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Evan Panich of Lelling’s Office, with assistance from Kelley Hauser, Trial Attorney with Department of Justice’s Civil Division.
Romanian Man Pleads Guilty to Access-Device Fraud and Aggravated Identity TheftRead the Press Release
BIRMINGHAM, Ala. – A Romanian man pled guilty on Wednesday to multiple counts of access device fraud and aggravated identity theft, announced U.S. Attorney Jay E. Town and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations Assistant Special Agent in Charge James G. Hernandez.
A nine-count indictment filed in U.S. District Court charges Alexandru Stoica, 35, with three counts of illegally possessing and using fraudulent access devices and six counts of aggravated identity theft in Limestone County in October 2019.
According to the plea agreement, Stoica knowingly used and attempted to use unauthorized access devices – gift cards – encoded with bank account numbers each issued to other persons, for the purpose of withdrawing money from the bank accounts.
“Stoica and the criminal element with whom he works specifically target our communities here in the Northern District of Alabama because of a perceived weakness in ATM security. That perception was proven wrong with his guilty plea,” Town said. “He will now have plenty of time to reconsider that strategy.”
“The hardworking people of this community can rest easier now that this fraudster is no longer able to steal their money,” said James Hernandez, Assistant Special Agent in Charge for Alabama. “Catching and prosecuting criminals that attack the integrity of the United States’ financial system is one of HSI’s top priorities.”
The maximum penalty for fraudulent use of a counterfeit access device is 10 years in prison and a fine of $250,000 or twice the gross gain, whichever is greater. The maximum penalty for both using and attempting to use a counterfeit access device is 15 years in prison and a fine of $250,000 or twice the gross gain or loss and a possible fine of $250,000 or twice the gross gain or loss, whichever is greater., whichever is greater. Aggravated identity theft carries a mandatory two-year prison sentence per count. At least one count must run consecutively to the other sentences and the remaining counts can run either concurrently or consecutively to each other.
Immigration and Custom Enforcement’s Homeland Security Investigations investigated the case, which Assistant U.S. Attorney Michael R. Pillsbury is prosecuting.
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.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Shawn Hawley, age 39, was sentenced on February 24, 2020, to 18 months in federal prison, followed by 18 months of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Hawley, a previously convicted felon who is prohibited from possessing firearms, being in possession of an Izhmash, model Saiga-12, 12 gauge shotgun, which was found after Hawley came into contact with law enforcement in November 2018 at Rapid City.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Hawley was immediately remanded to the custody of the U.S. Marshals Service.
Raleigh Blood Gang Member Sentenced for Illegally Possessing a FirearmRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced TAVEYON JAMOND WILLIAMS, 21, of Raleigh, NC, to 70 months’ imprisonment, followed by 3 years of supervised release.
WILLIAMS was named in an Indictment filed on June 7, 2019 charging him with one count of Felon in Possession of a Firearm on February 6, 2019. On October 9, 2019, WILLIAMS pled guilty.
On February 6, 2019, officers with the Raleigh Police Department (RPD), were on proactive patrol around Jones Street and North Tarboro Street in Raleigh, when they encountered WILLIAMS. The officers recognized WILLIAMS, a convicted felon, from previous encounters with him and were aware of multiple outstanding warrants for WILLIAMS’ arrest. As officers approached WILLIAMS to serve the outstanding warrants, WILLIAMS fled on foot. With the assistance of a police K-9 and witness identification, officers determined WILLIAMS ran into a nearby apartment.
Officers made contact with the occupants of the apartment WILLIAMS was witnessed entering. WILLIAMS was arrested at the residence without further incident. Officers conducted a search of the residence and recovered WILLIAMS’ Smith & Wesson, M&P Shield, 9mm pistol loaded with eight rounds of ammunition.
Project Safe Neighborhoods (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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
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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.
Prince George’s County Man Sentenced to 22 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Rody L. Bowden, age 41, of Prince George’s County, Maryland, to 22 years in federal prison, followed by lifetime supervised release, on the charge of sex trafficking of a minor. Bowden was a registered sex offender at the time of the offense and will be required to continue to register as a sex offender upon his release from prison.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI).
“This is an egregious case because the defendant was already a twice-convicted sex offender and his victim was a 14-year old child,” said U.S. Attorney Robert K. Hur. “Rody Bowden will now serve 22 years in federal prison, where there are no suspended sentences and no parole – ever. This sentence sends a powerful message that the sex trafficking of children will not be tolerated in Maryland.”
“This man—already a two-time sex offender—exploited and trafficked a child,” said John Eisert, HSI Baltimore special agent in charge. “HSI is committed to finding and investigating predators like him so they can no longer harm our communities’ most vulnerable members—its children.”
According to Bowden’s plea agreement, in late 2016 and early 2017, Bowden engaged in commercial sex acts with a 14-year-old ninth-grade student, including in Anne Arundel County motel rooms. On January 4, 2017, Bowden recorded a video of the victim engaged in oral sex with him. The next day, Bowden created an account on a streaming pornographic website and uploaded the video to his account, where it could be viewed by all of Bowden’s followers on the site. On September 4, 2017, Bowden e-mailed a copy of the video to another account that he controlled.
Bowden was previously required to register as a sex offender, stemming from two convictions for third-degree sex offenses in Prince George’s County and Charles County. Bowden has been detained since his arrest.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended HSI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
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Poca Man Pleads Guilty to Role in $4 Million Warranty Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – A Poca, West Virginia man entered a guilty plea to mail fraud for his role in a scheme to defraud Toyota of more than $4 million, announced United States Attorney Mike Stuart. Stanley Clark, 67, faces up to 20 years of incarceration when he is scheduled to be sentenced on May 28, 2020. He will also be required to pay restitution to Toyota.
“This was one heck of a scheme and it worked until the fraud was caught. Of course, that’s always the story with fraud schemes. Clark was involved in perpetrating this warranty fraud scheme for two years,” said United States Attorney Mike Stuart. “Thanks to the outstanding work of a number of law enforcement agencies, the scheme was thwarted and Clark is facing significant time in prison for his crime. Great work by the entire team to expose a costly fraud to a great company and consumers.”
Clark was employed as a transfer agent for a company contracted by Toyota to administer an extended warranty extension program where Toyota had offered to repurchase certain trucks for 150% of their value, so long as those trucks were owned by individual Toyota customers. Clark admitted he was a participant in a fraudulent scheme whereby a Kentucky used car dealership, Big Blue Motor Sales, bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced the car company to repurchase the trucks at 150% of value.
Clark admitted that the execution of the scheme relied on him to coordinate fraudulent truck repurchase meetings, work with a notary to forge the false owners’ signatures on truck repurchase documentation, and mail the fraudulent repurchase documentation that induced Toyota to repurchase the trucks. Clark received a cash payment from Big Blue Motor Sales for every fraudulent transaction. The scheme participants ran 350 trucks through the scheme between 2013 and 2015, causing approximately $4.3 million in losses to Toyota.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police, and the West Virginia Office of the Insurance Commissioner conducted the investigation. Former Assistant United States Attorney Stefan Hasselblad and Assistant United States Attorneys Andrew J. Tessman and Steven I. Loew are handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Pierre Man Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on February 24, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Joel Boe, age 38, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Boe was indicted by a federal grand jury on September 10, 2019. He pled guilty on December 5, 2019.
The conviction stemmed from a conspiracy that occurred between June 2017 and September 2019, in which Boe, knowingly and intentionally, conspired and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine in and around the Pierre and Ft. Pierre communities.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Boe was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Tax Preparer Convicted at Trial on All CountsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain and Principal Deputy Assistant Attorney General Richard E. Zuckerman, announced that Nvahbulai “Kosh” Quisiah, 44, of Philadelphia, PA was convicted today after a jury trial on charges of preparing false tax returns, aggravated identity theft and related crimes.
As the owner and operator of a Philadelphia-based tax preparation business on Woodland Avenue, First Premier Tax Service also d/b/a Kosh & Associates, the defendant prepared tax returns for clients that fraudulently inflated itemized deductions, claimed fictitious Schedule C businesses, and claimed false dependents for tax years 2009 through 2016. This resulted in inflated tax refunds for his clients to which the clients were not entitled. Quisiah also bought and sold the personal identifying information of children in order to falsely claim the children as dependents on tax returns.
“Today’s verdict serves as a reminder to tax preparers (and tax payers) as we find ourselves in the middle of tax season: don’t try to defraud the federal government,” said U.S. Attorney McSwain. “When tax preparers fraudulently inflate tax refunds, every honest American tax payer loses. My Office will continue to work with our federal partners here and in Washington D.C. to investigate and prosecute these crimes.”
“The Justice Department and the IRS will continue to vigorously investigate and prosecute corrupt tax return preparers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “Preparing false tax returns for clients, and using minors’ identities to do so, will not be tolerated.”
“When people like Mr. Quisiah cheat the tax system, they victimize the hard-working taxpayers of America”, said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. “Today’s verdict hopefully shows other potential criminals that the Special Agents of IRS-CI are working every day to protect the integrity of the tax system.”
The defendant faces a mandatory minimum sentence of two years’ imprisonment for aggravated identity theft, and up to a maximum of 89 years’ imprisonment for the other convictions of conspiracy, wire fraud, and preparing false tax returns.
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Anthony Wzorek and Department of Justice Tax Division Attorney Ann M. Cherry.
Philadelphia Return Preparer Convicted of Tax FraudRead the Press Release
A federal jury in Philadelphia, Pennsylvania, found Nvahbulai Quisiah guilty today of conspiracy to defraud the United States, preparing false client tax returns, wire fraud, and identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
According to the evidence presented at trial, Quisiah owned and operated First Premier Tax Service, a tax return preparation business in Philadelphia. From 2010 through 2017, Quisiah falsified clients tax returns by claiming false dependents, itemized deductions, and business losses to fraudulently increase the refunds paid by the Internal Revenue Service (IRS).
“The Justice Department and the IRS will continue to vigorously investigate and prosecute corrupt tax return preparers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “Preparing false tax returns for clients, and using minors’ identities to do so, will not be tolerated.”
“Today’s verdict serves as a reminder to tax preparers (and tax payers) as we find ourselves in the middle of tax season: don’t try to defraud the federal government,” said U.S. Attorney McSwain for the Eastern District of Pennsylvania. “When tax preparers fraudulently inflate tax refunds, every honest American tax payer loses. My Office will continue to work with our federal partners here and in Washington D.C. to investigate and prosecute these crimes.”
U.S. District Judge Nitza I. Quinones Alejandro scheduled sentencing for June 10, 2020. At sentencing, Quisiah faces 20 years in prison for each wire fraud count, a maximum of five years in prison for conspiracy, three years in prison for aiding and assisting in preparing tax returns, and a mandatory minimum sentence of two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McSwain thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ann M. Cherry of the Tax Division and Assistant U.S. Attorney Anthony Wzorek, who prosecuted the case.
Philadelphia Man Charged with Drug OffensesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rashaun Flemming, age 31, of Philadelphia, Pennsylvania, was indicted on February 27, 2020, by a federal grand jury on drug trafficking charges.
According to United States Attorney David J. Freed, the indictment charges Flemming with four counts of possession with intent to distribute cocaine base between October 7, 2019 and November 21, 2019, in Lycoming County.
This case was investigated by the Lycoming County Narcotics Enforcement Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for possession with the intent to distribute cocaine base is 30 years’ imprisonment and a fine. A sentence for each of these offenses also includes a period of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant
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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Owner of Fraudulent Mortgage Elimination Company Sentenced to 11 Years in Prison for $38 Million Fraud ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JACQUELINE GRAHAM was sentenced today to 132 months in prison in connection with a $38 million fraudulent mortgage debt elimination scheme. GRAHAM previously was convicted in June 2019 after a two-week trial before U.S. District Judge Nelson S. Román, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Jacqueline Graham brazenly defrauded vulnerable homeowners during the housing crisis by falsely promising that, for substantial fees, she could make millions of dollars of their mortgage debt disappear. In reality, she pilfered her victims’ money, leaving them far worse off, and some ended up losing their homes. Now Graham will spend 11 years in federal prison for preying upon her many victims.”
According to the Indictment in the case, the evidence presented at trial, and statements made in public court filings and proceedings, including GRAHAM’s sentencing hearing:
From at least 2011 to at least 2012, JACQUELINE GRAHAM partnered with Bruce Lewis and John Ruzza in operating the Valhalla, New York-based Terra Foundation, which held itself out as a business that would investigate and eliminate mortgage loans in exchange for fees, soliciting clients who were having difficulties making their mortgage payments. In fact, however, Terra engaged in a wide-ranging scheme to defraud clients, county clerks’ offices, and banks.
The fraudulent scheme, which was created by GRAHAM and Lewis, involved Terra performing “audits” of clients’ mortgages, sending pseudo-legal paperwork to the banks and/or lenders holding the mortgages, and ultimately filing purported mortgage discharges with the relevant county clerks’ offices. As a result, anyone doing a title search for one of Terra’s clients would see that the client’s mortgage had been satisfied. The mortgages had not, however, been discharged, and the mortgages were eventually reinstated, after the clients paid their fees.
In order to effectuate the scheme, GRAHAM, Lewis, and Ruzza involved others, including Rocco Cermele, the director of operations, Paula Guadagno, who filed discharges on behalf of Terra, and Anthony Vigna, a lawyer and CPA who worked in Terra’s offices. Vigna was formerly an Assistant Corporation Counsel for the City of Yonkers, and a college accounting and law professor, including stints on the faculties of Mercy College, Iona College, SUNY Maritime College, College of Mount St. Vincent, and Westchester Community College.
In total, GRAHAM and her co-conspirators filed over 60 fraudulent discharges in Westchester and Putnam Counties in New York, and in Connecticut. The fraudulent discharges claimed to discharge mortgages with a total loan principal of nearly $38 million.
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In addition to her prison term, GRAHAM, 54, formerly of Antioch, California, and Levittown, Pennsylvania, was sentenced to five years of supervised release and ordered to pay restitution to her victims in the amount of $694,450 and forfeiture of $138,941.86.
Lewis, 67, formerly of Alaska and Washington State, previously was sentenced by Judge Román to seven years in prison, three years of supervised release, and forfeiture of $149,408.
Vigna, 61, of Thornwood, New York, previously was sentenced by Judge Román to one year and one day in prison, three years of supervised release, and $250,500 of restitution.
Ruzza, 49, formerly of Mahopac, New York, previously pled guilty before U.S. District Judge Cathy Seibel to one count of participating in a conspiracy to commit mail fraud, wire fraud, and bank fraud relating to the Terra scheme, as well as one count of participating in a conspiracy to commit wire fraud, two counts of bank fraud, two counts of wire fraud, and one count of obstruction of justice.
Cermele, 57, of Yonkers, New York, and Guadagno, 62, of Verplanck, New York, previously pled guilty to their participation in the scheme.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Berman also thanked the Westchester County District Attorney’s Office and the Department of Housing and Urban Development for their assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys David Felton, Michael Maimin, and James McMahon are in charge of the prosecutions.
Northumberland County Man Charged with Violating Toxic Substance Control ActRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dennis Morgan, age 73, of Northumberland County, Pennsylvania, was indicted on February 27, 2020 by a federal grand jury on three violations of the Toxic Substances Control Act.
According to United States Attorney David J. Freed, the indictment alleges that Morgan, of Northumberland County, failed to provide a lead hazard pamphlet or warning and failed to retain records as required by the Code of Federal Regulations in violation of the Toxic Substances Control Act.
The investigation was conducted by the Environmental Protection Agency. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for each violation under federal law is 1 years of imprisonment, 1 years of supervised release, and a fine of $100,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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