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Friday 21 February 2020
Former Velda City Treasurer Pleads Guilty to Stealing Approximately $400,000 in City Funds, and Stealing Approximately $150,000 from a CharityRead the Press Release
St. Louis, MO –Venita Sedodo, 32, of St. Charles, Missouri, pleaded guilty to two counts of wire fraud related to her former position as Treasurer of Velda City, Missouri, and two counts of mail fraud related to her former position as Trust Secretary for the Travelers Protective Association of America, Scholarship Trust for the Hearing Impaired. Sedodo appeared today in front of United States District Judge Stephen R. Clark who set her sentencing hearing for May 28, 2020.
According to the court documents, Sedodo served as the Treasurer for Velda City, Missouri. From November, 2015 through October, 2018, Sedodo schemed to steal approximately $400,000 from the city. During that time, Sedodo issued approximately 90 unauthorized Velda City checks to herself, which she deposited into several of her personal bank accounts. Sedodo spent the stolen funds on personal items and services such as clothing, automobile payments, as well as making numerous cash withdrawals. Sedodo also issued unauthorized Velda City checks directly to a number of businesses to pay for personal items and services. Further, Sedodo made numerous unauthorized ACH wire transmissions of funds from Velda City bank accounts to pay for personal items and services at businesses such as BMW, Neiman Marcus, Saks Fifth Avenue, and Commerce Bank to pay off charges on her personal credit cards. Altogether, Sedodo’s fraud scheme netted her approximately $400,000 in funds stolen from Velda City.
Sedodo was also employed as the Trust Secretary for the Travelers Protective Association of America, Scholarship Trust for the Hearing Impaired (“TPA Scholarship Trust”). This is a charitable organization which provides financial aid to individuals with deafness or hearing deficiencies. From June, 2014, through January, 2019, Sedodo submitted false and fraudulent grant applications for her family members and friends to the charity’s Board of Trustees. These grant applications falsely claimed that the individual applicants suffered from deafness or hearing impairment, and Sedodo created and submitted along with the applications false audiograms and audiological evaluations. Sedodo did not advise the Board of Trustees that the individual applicants were her family members and friends. Once the Board of Trustees unwittingly approved the grant applications, Sedodo processed and issued checks to the individual applicants, who then cashed the checks and split the proceeds with Sedodo. None of the grant funds were used for legitimate health care or treatment related to deafness or hearing impairment, but were used by Sedodo and her family and friends for their own personal use and expenses. Sedodo obtained approximately $156,100 from TPA Scholarship Trust through her fraudulent scheme.
"Venita Sedodo abused her position as Velda City treasurer to embezzle tax funds, resulting in bounced paychecks for hard-working co-workers and vendors who depend on Velda City for their livelihood," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "In addition, Sedodo exploited her treasurer’s job at a charity to embezzle money intended for the deaf or hard of hearing. She is now being held accountable for her financial self-dealings.”
Sedodo faces a maximum penalty of 20 years in prison and a $250,000 fine for each count. Restitution is also mandatory.
In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Former Police Officer Charged with Transferring Firearms to Convicted FelonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, announced that JOSEPH RYAN, 56, of Trumbull, was arrested today on a federal criminal complaint charging him with knowingly providing firearms to a convicted felon.
As alleged in the complaint, on April 27, 2018, Ansonia Police executed a state search warrant at an address in Ansonia in order to locate and seize 12 firearms that were registered to a pistol permit holder at the residence. Investigators could only locate five firearms during the search. The five firearms were then transported to the Ansonia Police Department for safekeeping. On April 3, 2019, Ryan, who at the time was a police officer with the Greenwich Police Department, went to the Ansonia Police Department and took custody of the five firearms that had been seized.
It is further alleged that, in August and September 2019, members of ATF and the New Haven Police Department made controlled purchases of four firearms from Malique Martin. Three of the four firearms purchased were among the firearms that Ryan took into his custody from the Ansonia Police Department on April 3, 2019. The investigation revealed that Ryan transferred firearms to an individual who he knew was a convicted felon, and who helped facilitate heroin transactions between Ryan and Ryan’s heroin supplier. Some of the firearms were then transferred to Martin.
The charge of knowingly providing a firearm to a convicted felon carries a maximum term of imprisonment of 10 years. U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Ryan appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $100,000 bond.
Martin, 24, of Ansonia, was arrested on October 2, 2019. On January 16, 2020, he pleaded guilty to one count of dealing firearms without a license and one count of possession of a firearm with an obliterated serial number. He is awaiting sentencing.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New Haven Police Department and Ansonia Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
This prosecution 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 neighborhoods safer for everyone.
Former JBLM soldier sentenced to 15 years in prison for production of child pornographyRead the Press Release
Tacoma, Washington – A former U.S. Army Chief Warrant Officer at Joint Base Lewis-McChord was sentenced today in U.S. District Court in Tacoma to 15 years in prison for production of child pornography, announced U.S. Attorney Brian T. Moran. JOHN F. RINDT, 50, was previously sentenced to ten years in prison by a military tribunal for the same conduct. U.S. District Judge Robert J. Bryan ordered the 15-year sentence to run concurrent to the military prison term.
According to records filed in the case, in 2012, while living in Lacey, Washington, RINDT made a video of himself molesting a sleeping child who was under the age of 12. As part of his sentence, RINDT is required to pay $9,900 in restitution for counseling for the young child.
Following his release from prison, RINDT will be on lifetime supervised release and will be required to register as a sex offender.
The case was investigated by the FBI and U.S. Army Criminal Investigation Division (CID).
The case was prosecuted by Assistant United States Attorney Grady Leupold.
Former Employee of the Coca-Cola Company Sentenced for EmbezzlementRead the Press Release
ATLANTA - Anne Gronek-Gibbs, a former sales director for the Coca-Cola Company, has been sentenced for embezzling over $750,000 from the company. The defendant ordered luxury goods, tickets, gift cards, first class travel, and luxury hotel accommodations for personal trips, all paid for by the company.
"The defendant abused the trust her employer placed in her and stole to finance a lavish lifestyle," said U.S. Attorney Byung J. "BJay" Pak. "Gronek-Gibbs believed her invoice-changing scheme would cover her theft. Instead, she is headed to prison."
"Gronek-Gibbs violated the trust of the company that hired her and elevated her to a position of leadership," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "Because of her self-interest and greed she has not only thrown away a lucrative career, but will spend time in prison for her crime."
According to U.S. Attorney Pak, the charges and other information presented in court: Anne Gronek-Gibbs was a sales director who used her position to obtain personal goods and services from suppliers of the Coca-Cola Company and have the company pay for those goods and services. She ordered luxury goods, tickets, and gift cards and also booked first class travel, and had Coca-Cola pay for luxury hotel accommodations for personal trips. Gronek-Gibbs modified electronic versions of quotes, purchase orders, and invoices from vendors that she then submitted to Coca-Cola for payment. Ultimately, she purchased hundreds of thousands of dollars’ worth of gift cards, jewelry, handbags, and purses using this system and, all told, embezzled over $750,000.
Anne Gronek-Gibbs, 42, of Atlanta, Georgia, was sentenced by U.S. District Judge Boulee to one year in prison and 25 months of home detention, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $753,551. Gronek-Gibbs was convicted on these charges on November 19, 2019, after she pleaded guilty.
The Federal Bureau of Investigation investigated this case, with assistance from the Atlanta Police Department Major Fraud Unit.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Employee Sentenced to Federal Prison on Theft from the Woman’s Coalition of St. CroixRead the Press Release
St. Croix, USVI – Kira Lee Encarnacion, 41, of St. Croix, was sentenced yesterday in U.S District Court to 13 months imprisonment, on one count of Federal Program Theft, United States Attorney Gretchen C.F. Shappert announced.
After finding that Encarnacion abused a position of trust, Chief Judge Wilma A. Lewis sentenced Encarnacion to a prison term of 13 months to be followed by three years of supervised release. Additionally, Encarnacion was ordered to pay the outstanding restitution balance of $83,510 and a special assessment of $100.
According to court documents, from November 2014 through May 2015, Encarnacion was employed as a bookkeeper with the Women’s Coalition of St. Croix (WCSC). As the bookkeeper, Encarnacion’s duties included issuing legitimate payments to vendors in support of the organization’s functions using an accounting software program. However, during this period, she fraudulently caused 39 WCSC checks to be issued to herself, totaling $85,510. Encarnacion disguised the checks in the accounting software program as payments to legitimate vendors of WCSC. The defendant then deposited the checks into her personal bank account and used the funds for personal matters.
WCSC receives in excess of $10,000 a year in federal grants and benefits, which gave rise to the federal prosecution.
The case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Former DEA Agent and His Wife Indicted for Alleged Roles in Scheme to Divert Drug Proceeds from Undercover Money Laundering InvestigationsRead the Press Release
A 19-count indictment in Tampa, Florida, was unsealed today against a former Drug Enforcement Administration (DEA) special agent and his wife for their alleged roles to divert drug proceeds from undercover money laundering investigations into bank accounts they, along with family members and criminal associates, controlled.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General Miami Field Office, Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Field Office and Special Agent in Charge Mary E. Hammond of IRS-Criminal Investigation (CI) and Acting Special Agent in Charge Kevin Sibley of U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) Tampa made the announcement.
The FBI arrested Jose I. Irizarry, 46, and Nathalia Gomez-Irizarry (Gomez), 36, this morning at their residence near San Juan, Puerto Rico. Irizarry and Gomez made their first appearance in U.S. District Court in San Juan today and were released on bond. Their next court appearance is scheduled for Feb. 26.
The indictment alleges that while working as an agent for the DEA in Miami and Cartagena, Colombia, Irizarry engaged in an illegal scheme to divert drug proceeds from undercover money laundering investigations into bank accounts controlled by himself and Gomez, their family members, and their criminal associates. To carry out the plot, Irizarry and his criminal associates are alleged to have opened a bank account with a stolen identity and then utilized the account to secretly send and receive drug proceeds from active DEA investigations.
The indictment further alleges that Irizarry and Gomez used drug proceeds to purchase jewelry, a home and multiple luxury vehicles for themselves and their family. As alleged, Irizarry was in personal bankruptcy proceedings for nearly the duration of this criminal conduct and failed to disclose any of his illicit income to the U.S. Bankruptcy Court.
Irizarry is charged with conspiracy to launder monetary instruments, honest services wire fraud, bank fraud, conspiracy to commit bank fraud, conspiracy to commit identity theft and aggravated identity theft. Gomez is charged with conspiracy to launder monetary instruments.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section is prosecuting the case.
The Justice Department’s Office of Inspector General, FBI, DEA, IRS-CI, and HSI investigated the case. The U.S. Marshals Service, U.S. Customs and Border Protection, the Criminal Division’s Office of International Affairs, the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office, the U.S. Attorney’s Office for the Middle District of Florida and District of Puerto Rico, the Colombian Attorney General’s Office (Fiscalia General de la Nacion) and the South Florida Money Laundering Strike Force at the Miami-Dade State Attorney’s Office provided valuable assistance.
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.
Florida Man Sentenced to 10 Years for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Dameon Kerk Allen (43, St. Petersburg) to 10 years in federal prison for attempting to entice a child to engage in sexual activity. The court also ordered Allen to forfeit the electronic devices he had used in the commission of the offense.
A federal jury had found Allen guilty on November 14, 2019.
According to evidence presented at trial, Allen communicated online and via text messages with someone he believed to be a 14-year-old child. In reality, he was talking to an undercover agent. In the conversations, Allen proposed and planned to meet up with the child to have sex, discussing in graphic detail the sex acts he would engage in when they met.
This case was investigated by the Federal Bureau of Investigation and the St. Petersburg Police Department. It was being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Colin McDonell.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Man Charged with Organic Fraud SchemeRead the Press Release
United States Attorney Ron Parsons announced that a Bradenton, Florida, man has been indicted by a federal grand jury for one count of Conspiracy to Commit Wire Fraud, twelve counts of Wire Fraud, and twenty-nine counts of Money Laundering.
Kent Duane Anderson, age 49, was indicted on February 4, 2020. He appeared before U.S. Magistrate Judge Danita Wollmann on February 14, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison, and/or a $250,000 fine, 3 years of supervised release, and up to $4,200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between 2012 and 2017, Anderson, aided by others, operated a group of inter-related business entities he formed in South Dakota that claimed to sell organic commodities. Operating as Green Leaf Trading, and other businesses with the Green Leaf name, Anderson purchased thousands of tons of small grain and seed products from non-organic suppliers and re-sold those products to wholesale distributors, brokers, and other buyers at marked-up prices, and falsely represented the products were organic. The Indictment alleges one count of conspiracy to commit wire fraud, 12 counts of wire fraud, 12 counts of using the proceeds of the wire fraud to promote the unlawful activity, and 17 counts of purchases made from criminally derived proceeds.
“Falsely labeling products as organic violates federal law,” said U.S. Attorney Parsons. “It cheats American consumers and unfairly punishes true organic farmers and producers who follow the rules. We will prosecute this kind of fraud wherever it is found.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding the National Organic Program,” said Anthony Mohatt, Special Agent-in-Charge, USDA-Office of Inspector General. “It should also serve as a warning to all that participate in the organic supply chain, that fraud will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer funded programs.”
“Honest and law abiding citizens are fed up with those who use deceit and fraud to line their pockets,” said Karl Stiften, Special Agent-in-Charge of IRS Criminal Investigation. “We are committed to 'following the money trail.' We will continue to pursue the evidence wherever it leads, leaving no financial stone unturned.”
The charges are merely accusations and Anderson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of Agriculture, the Federal Bureau of Investigation, and the Internal Revenue Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Anderson was released on bond pending trial. A trial date has not been set.
Five South Minneapolis Gang Members Sentenced to Prison for Violent Drug Trafficking ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of five individuals connected with the 10z/20z south Minneapolis street gangs. ALKWAN KWAME LAWSON-HOLIDAY, 30, LE’KEITH ALI DU’JUAN RAYFORD, 28, KENNETH LAMONT THOMPSON, 34, MAURICE JERRY JOHNSON, 29, and LENARDO ALEXZANDER WOODARD, 32, were convicted and sentenced for crimes related to violent gang activity, including trafficking crack cocaine and illegal possession of firearms. The sentencing proceedings were held before Judge Joan N. Ericksen in United States District Court in Minneapolis, Minnesota.
United States Attorney Erica H. MacDonald stated, “Violent groups who use guns to carry out their drug trafficking operations bring death and destruction to our communities. This type of criminal activity is unacceptable and will not be tolerated. All five of these individuals have faced justice and must account for the serious crimes they have committed.”
According to the defendants’ guilty pleas and documents filed in court, the defendants maintained active membership in or association with the 10z/20z south Minneapolis street gangs, with the purpose of making money for the gang through criminal acts, including distribution of crack cocaine, heroin, and marijuana. As part of their drug distribution schemes, members of the gangs possessed, carried and used firearms in order to protect their drug distribution network from rival gangs, and to protect drug distributors from being robbed of narcotics or money.
According to the defendants’ guilty pleas and documents filed in court, RAYFORD, THOMPSON, JOHNSON, and WOODARD were involved in a conspiracy to possess firearms in furtherance of their drug trafficking crimes. Their criminal activities included, among other things, multiple crack cocaine and heroin sales, as well as repeated possession of illegal firearms.
This case was the result of an investigation conducted by the FBI Safe Streets Task Force, which is comprised of federal and local law enforcement agencies, including, but not limited to, the FBI, the Minneapolis Police Department, the Minnesota Bureau of Criminal Apprehension, and the St. Paul Police Department. The Minnesota Department of Corrections also provided assistance in this case. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat 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.
Assistant U.S. Attorney Thomas Calhoun-Lopez prosecuted the case.
Defendant Information:
ALKWAN KWAME LAWSON-HOLIDAY, a/k/a “Lucky,” a/k/a “Kweezy,” 30
Brooklyn Park, Minn.
Convicted:
- Distributing a controlled substance, 1 count
Sentenced:
- 57 months in prison
- Three years of supervised release
LE’KEITH ALI DU’JUAN RAYFORD, a/k/a “Fatty,” 28
Minneapolis, Minn.
Convicted:
- Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count
Sentenced:
- 78 months in prison
- Three years of supervised release
KENNETH LAMONT THOMPSON, a/k/a “Kenny OG,” a/k/a “KG,” 34
Minneapolis, Minn.
Convicted:
- Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count
Sentenced:
- 100 months in prison
- Three years of supervised release
MAURICE JERRY JOHNSON, a/k/a “Reese,” a/k/a “Loco,” 29
Minneapolis, Minn.
Convicted:
- Use of a firearm during and in relation to a drug trafficking crime, 1 count
Sentenced:
- 60 months in prison
- Three years of supervised release
LENARDO ALEXZANDER WOODARD, a/k/a “Naughty,” 32
Brooklyn Park, Minn.
Convicted:
- Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count
Sentenced:
- 51 months in prison
- Three years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Grand Jury Indicts Four Associated with Jalisco New Generation Cartel (CJNG)Read the Press Release
Danville, VIRGINIA – A federal grand jury sitting in U.S. District Court in Roanoke has indicted four individuals associated with Jalisco New Generation Cartel (CJNG) on federal money laundering charges. United States Attorney Thomas T. Cullen and Jesse Fong, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field Division, announced the charges today.
The grand jury returned an indictment yesterday charging Alejandro Escarcega-Avila, 40, Francisco Alvarez-Rosales, Meliton Alvarez-Rosales, and Noe Salvador Becerra-Gonzalez. All four defendants are citizens of Mexico living locally in Axton, Virginia.
All four defendants are charged with one count of conspiracy to commit money laundering. In addition, Escarcega-Avila is charged with one count of illegal reentry of a previously removed alien and one count of illegal possession of a firearm by an illegal alien.
According to the indictment, beginning no later than 2018 and continuing to in or about January 2020, the defendants conspired to conduct financial transactions affecting interstate commerce, specifically the transfer, delivery and exchange of United States Currency, which involved the proceeds from the distribution and manufacturing of controlled substances.
As part of the conspiracy, members and affiliates of CJNG transported cocaine, heroin, marijuana, and other substances, into the United States from Mexico. CJNG recruited individuals from Mexico to reside in Axton, Virginia to facilitate the distribution of these controlled substances from CJNG throughout the Mid-Atlantic region of the United States.
The defendants, and their co-conspirators, received large amounts of United States Currency that was payment for the distribution of these controlled substances, and transmitted that currency to members and affiliates of CJNG in Mexico.
This investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force (OCDETF) Program. 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.
The investigation of the case was conducted by the Drug Enforcement Administration, Department of Homeland Security-Homeland Security Investigations, the Virginia State Police, and the Henry County Sheriff’s Office Assistant United States Attorneys Erin Harrigan and Sean Welsh are prosecuting the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Eagle Butte Man Indicted on Wildlife and Larceny ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for a Lacey Act Violation and Larceny.
Dugan Traversie, age 39, was indicted on February 12, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 18, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that sometime between October 28, 2019, and November 4, 2019, Traversie harvested a white-tailed deer outside of the tribal hunting season, in violation of the Cheyenne River Sioux Tribe hunting laws and regulations. After Traversie shot the deer, he left and returned the next day to remove the head and left the carcass behind. The white-tailed deer had a value of more than $1,000.
The charges are merely accusations and Traversie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Service, and the Cheyenne River Sioux Tribe, Game, Fish and Parks Department. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Traversie was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Indicted for Methamphetamine TraffickingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Daniel Gray Eagle, age 38, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $10,000,000 fine, up to lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on January 1, 2016, and continuing through December 10, 2019, in the District of South Dakota and elsewhere, Gray Eagle, knowingly and intentionally, combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Gray Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Gray Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Kip Blue Coat, age 28, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 14, 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 26, 2019, in Eagle Butte, Blue Coat unlawfully assaulted an individual and said assault resulted in serious bodily injury.
The charge is merely an accusation and Blue Coat is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Blue Coat was released on bond pending trial. A trial date has not been set.
Dubuque Methamphetamine Dealer Sentenced to Federal Prison for over a DecadeRead the Press Release
A Dubuque man who possessed over 94 grams of pure methamphetamine was sentenced on February 19, 2020, to over ten years in federal prison.
Deshone Dodson, age 36, from Dubuque, Iowa, received the prison term after an October 10, 2019 guilty plea to possession with intent to distribute a controlled substance.
In a plea agreement, Dodson admitted he possessed over 94 grams of pure methamphetamine he intended to distribute. Dodson was a passenger in a vehicle that law enforcement stopped for not having working headlights at night. During the traffic stop, officers smelled the odor of marijuana coming from the vehicle. They subsequently found a black grocery bag concealed in the trunk behind the carpeted inlay on the driver’s side. Inside this bag were four individually wrapped clear plastic bags of methamphetamine. Dodson admitted to owning the bags of meth and that he planned to distribute it to others.
Dodson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dodson was sentenced to 130 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Dodson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Dubuque Drug Task Force and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1017.
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Delaware Man Sentenced to 210 Months’ Imprisonment for Child Sexual ExploitationRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Hayes, age 72, of Wilmington, Delaware, was sentenced on February 19, 2020, by U.S. District Court Judge Robert D. Mariani to 210 months’ imprisonment for transportation of minors to engage in criminal sexual activity.
According to United States Attorney David J. Freed, Hayes repeatedly transported two minors from Pennsylvania to Florida, Tennessee and Delaware, to engage in sexual activity for an approximate 10-year period.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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DEA Announces Launch of Operation Crystal ShieldRead the Press Release
Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Uttam Dhillon announced Thursday that the DEA will direct enforcement resources to methamphetamine “transportation hubs” — areas where methamphetamine is often trafficked in bulk and then distributed across the country. While continuing to focus on stopping drugs being smuggled across the border, DEA’s Operation Crystal Shield will ramp up enforcement to block their further distribution into America’s neighborhoods.
DEA has identified eight major methamphetamine transportation hubs where these efforts will be concentrated: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, and St. Louis. Together, these DEA Field Divisions accounted for more than 75 percent of methamphetamine seized in the U.S. in 2019.
“While meth is not a new drug, it has seen a troubling resurgence over the past few years,” said Attorney General William P. Barr. “Manufactured mostly in Mexican labs and smuggled into the United States across the southwest border, meth is a drug that is both cheap and potent, creating a deadly combination. Just as the Trump Administration has acted swiftly to stem the tide of opioid fatalities, it will use every weapon in its arsenal – such as the DEA’s Operation Crystal Shield - to stop dangerous methamphetamine from reaching American neighborhoods and harming American families.”
“Methamphetamine is the most abused illicit drug in our state. It flows over our country’s southern border with Mexico and into hubs like Phoenix, Dallas, and Houston, where it is then trafficked to Oklahoma and other interior states,” said U.S. Attorney Trent Shores. “The special agents of the Drug Enforcement Administration do work that is critical to the general welfare of Americans. Working with federal prosecutors in my office, DEA identifies, investigates, and dismantles drug trafficking organizations that bring this deadly drug into Oklahoma. The U.S. Attorney’s Office will be an active participant in Operation Crystal Shield, along with our partners in the Dallas-based and local DEA offices.”
Operation Crystal Shield builds on existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels that are responsible for the overwhelming majority of methamphetamine trafficked into and within the United States. From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds. During the same time frame, the number of DEA arrests related to methamphetamine rose nearly twenty percent.
“For decades, methamphetamine has been a leading cause of violence and addiction – a drug threat that has never gone away,” said Acting Administrator Dhillon. “With a 22 percent increase in methamphetamine-related overdose deaths, now is the time to act, and DEA is leading the way with a surge of interdiction efforts and resources, targeting regional transportation hubs throughout the United States. By reducing the supply of meth, we reduce the violence, addiction, and death it spreads.”
“Seizures of methamphetamine in the Dallas Field Division, which includes North Texas and Oklahoma, have increased over 430% from 2018 to 2019. This staggering number reflects both the threat we face and the resolve of the DEA to keep methamphetamine out of our neighborhoods. With our nationwide, concerted effort through Operation Crystal Shield, we will be partnering with other DEA offices across the globe to identify those transportation networks and command structures to ensure their greed is met with swift justice,” said DEA Dallas Field Division Special Agent in Charge Eduardo A. Chávez.
Virtually all methamphetamine in the United States comes through major ports of entry along the Southwest Border and is transported by tractor trailers and personal vehicles along the nation’s highways to major transfer centers around the country. It is often found in poly-drug loads, alongside cocaine, heroin, and fentanyl.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
DEA Methamphetamine B-Roll links:
Meth: https://vimeo.com/383988359
DEA Raid: https://vimeo.com/39127106
Cooke County Felon Convicted of Firearms ViolationsRead the Press Release
PLANO, Texas – A 38-year-old Gainesville, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
William Randall Brannan was found guilty of being a felon in possession of a firearm and two counts of possession of a firearm in furtherance of a drug trafficking crime today following a week-long trial before U.S. District Judge Sean D. Jordan.
According to information presented in court, in January 2019, Brannan, while delivering methamphetamine, discharged a firearm in a Gainesville residence, and again outside the home, while attempting to intimidate others into returning methamphetamine which he believed had been stolen from him. On Feb. 28, 2019, Brannan was located in Arlington, Texas and fled as law enforcement officers attempted to arrest him. He then led police on a high-speed chase before crashing the vehicle. The gun used in the Gainesville shooting was found in the vehicle. Further investigation revealed Brannan was a convicted felon and prohibited from owning or possessing firearms or ammunition. Brannan was indicted by a federal grand jury on March 14, 2019.
“Brannan has a long criminal history, and continues to mix drugs, guns, and violence,” said U.S. Attorney Joseph D. Brown. “This conviction should keep him off the streets for a long time.”
Under federal statutes, Brannan faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case was investigated by the Cooke County Sheriff’s Office, the Arlington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Matthew Johnson and Chris Eason.
Convicted Bank Robber Sentenced to 11+ Years in Prison for Six Bucks County RobberiesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Marshall Brooks, 54, was sentenced to 135 months’ imprisonment by Senior United States District Judge Jan E. Dubois for two armed bank robberies and four armed robberies of stores, all located in lower Bucks County, Pennsylvania.
In July 2019, the defendant pleaded guilty to all six counts charged in the Indictment, including two counts of armed bank robbery and four counts of robbery which interferes with interstate commerce. The charges were the result of the defendant using actual and threatened force, violence, and fear of injury to rob two banks in December 2018, and four businesses in December 2018 and February 2019, in Bensalem, Bristol, Trevose, and Feasterville. During his crime spree, he held a weapon directly against employees’ and customers’ bodies and held them hostage while he stole money and goods from the businesses. He committed this string of offenses just one month after being released from state prison after serving a 15-year sentence for yet another bank robbery.
“When Brooks was released from his 15-year prison sentence, he had a choice: he could become a law-abiding citizen or he could revert to his criminal ways,” said U.S. Attorney McSwain. “Unfortunately for the victims he terrorized during his crime spree, he took the latter path – the one that will lead him straight back to prison. The streets of lower Bucks County are far safer now that Brooks will be spending the next decade behind bars.”
“After serving out his prison time for a prior bank robbery, Marshall Brooks went right back to his old ways,” said Tara McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Imagine being physically manhandled by a stranger aiming a gun at you, demanding money. It isn’t something terrified armed robbery victims soon forget. Brooks is a clear danger to the public, and today’s sentence ensures he’ll remain behind bars for quite some time. The FBI’s BucksMont Safe Streets Task Force is committed to making our neighborhoods safer by diligently combating violent crime in our communities.”
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.
The case was investigated by the Federal Bureau of Investigation, Bensalem Police Department, Bristol Borough Police Department, and Lower Southampton Police Department, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Columbus man sentenced for role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Martenez Strong-Edmondson, Jr., of Columbus, Ohio, was sentenced today to 46 months incarceration for his role in a cocaine and heroin distribution operation that spanned two states, U.S. Attorney Bill Powell announced.
Strong-Edmondson, also known as “Bo,” age 21, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base and Cocaine within 1,000 feet of a Protected Location” in October 2019. He admitted to distributing cocaine and cocaine base near Pulaski Playground in September 2018 in Ohio County.
The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. District Judge John Preston Bailey presided.
Colorado Tax Evader Indicted for Not Reporting to Serve Five Year Prison SentenceRead the Press Release
A federal grand jury in Denver, Colorado, returned an indictment yesterday charging Lawrence Martin Birk with failing to surrender to serve his sentence, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Birk was convicted by a jury in July 2019 of tax evasion. According to court documents and evidence presented at trial, Birk founded a sole proprietorship, Tarryall River Log Homes LLC, which sold and built log homes. Although the company was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, Birk hired a tax firm to prepare eight years’ worth of delinquent tax returns, but concealed from the firm $400,000 of retirement distributions. Even after filing returns, Birk still did not pay what the returns acknowledged he owed in taxes. Instead, he sent the IRS threatening correspondence and sought to impede its efforts to seize money from his bank accounts. He did not file returns or make any tax payments for 2006 through 2018.
Based on this conduct, on Oct. 30, 2019, U.S. District Judge Robert E. Blackburn sentenced Birk to 60 months in prison, to serve three years of supervised release, and to pay restitution to the IRS in the amount of $1,858,826.
According to today’s indictment, although Birk was ordered to report to prison in November 2019 to serve his sentence, he fled and remained a fugitive until his recent arrest. If convicted, Birk faces up to five years’ imprisonment for his failure to appear, in addition to the 60 month term of imprisonment previously imposed.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman commended the IRS special agents and United States Marshall Service who conducted the investigation, as well as Department of Justice Trial Attorneys Elizabeth C. Hadden and Christopher Magnani, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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.
Citizen of Mexico Sentenced to 22 Months in Prison for Illegally Reentering U.S. a Second TimeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDRES JACOME RODRIGUEZ, 42, a citizen of Mexico last residing in Danbury, was sentenced today U.S. District Judge Jeffrey A. Meyer in New Haven to 22 months of imprisonment, followed by three years of supervised release, for illegally reentering the U.S. after being deported, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, Jacome Rodriguez has used multiple names, dates of birth and two false social security numbers while residing in the U.S. over the course of approximately 20 years. During that time, he sustained multiple convictions in four separate states.
On October 3, 2017, Jacome Rodriguez was deported to Mexico following a larceny conviction in Danbury superior court. On October 9, 2017, Jacome Rodriguez was apprehended by U.S. Border Patrol in Brownsville, Texas. He was subsequently prosecuted and convicted in the Southern District of Texas for unlawful presence of a removed alien, and was sentenced to 163 days of imprisonment, time served, and three years of supervised release. He was again deported to Mexico on March 21, 2018.
On January 29, 2019, Jacome Rodriguez was arrested by the Danbury Police and charged with assault in the third degree, disorderly conduct, risk of injury to a child, cruelty to animals and possession of a controlled substance. He has been detained since his arrest.
On July 16, 2019, a federal grand jury in New Haven returned an indictment charging Jacome Rodriguez with illegal reentry by a removed alien. On November 8, 2019, he pleaded guilty to the offense.
The violation of supervised release matter was transferred from the Southern District of Texas to the District of Connecticut for further prosecution, and Jacome Rodriguez admitted to the violation during today’s court proceeding.
Judge Meyer sentenced Jacome Rodriguez to 18 months of imprisonment for illegally reentering the U.S., and a consecutive four months of imprisonment for violating the conditions of his supervised release.
The state charges against Jacome Rodriguez are pending.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chinese National Arraigned on Arms Export Control Act and Money Laundering ChargesRead the Press Release
WASHINGTON - On February 18, 2020, Cho Yan Nathan Man (Man) was arraigned on an indictment filed June 26, 2019, charging him with four counts of Unlawful Exports and Attempted Unlawful Exports of Defense Articles to Hong Kong, in violation of the Arms Export Control Act (AECA), 22 U.S.C. § 2778; and the International Trafficking in Arms Regulations (ITAR), 22 C.F.R. §§ 120-130 (Counts One through Four); and four counts of International Money Laundering, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and (c)(7)(b)(v)(I) (Counts Five through Eight). The indictment, initially filed under seal, was unsealed at Man’s initial appearance and arraignment. Man was arrested in Switzerland on or about June 13, 2019, and extradited from Switzerland to the United States on or about February 14, 2020. The court has ordered Man detained pending trial.
The indictment alleges that, from in or around October 2018 to in or around January 2019, Man knowingly attempted to export, and/or caused the export of, the following items that have been determined to be United States Munitions List (USML) defense articles: (1) a pair of enhanced night vision goggles, which combines night vision and thermal imaging and which was manufactured by a U.S. company; (2) a Glare Mout Plus, which is a non-lethal visual disruption laser (also known as a dazzler) used to hail and warn individuals approaching a restricted or controlled area; (3) a target pointer illuminator aiming light, which is a laser that attaches to a rifle and is used for aiming that weapon; and (4) a four-prong muzzle adapter for a rifle that was manufactured by a U.S. company. The indictment further alleges that Man engaged in international money laundering in connection with each transaction by causing or attempting to cause a transfer or transmission of funds for the purchase of these items from Hong Kong to the sellers in the United States.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted on any of the AECA charges, Man faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000 or twice the pecuniary gain or loss of the offense, and three years of supervised release. If convicted of any of the money laundering charges, Man faces a maximum sentence of 20 years in prison; a fine of up to $500,000 or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater; and three years of supervised release.
This investigation is being conducted jointly by the Chicago Field Office of the Department of Homeland Security, Homeland Security Investigations, and the Chicago Resident Agency of the Defense Criminal Investigative Service. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice.
Child Sex Offender Sentenced for Fifth Failure to Register ConvictionRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to three years in prison and 15 years of supervised release for failing to register as a sex offender after traveling across state lines.
According to court documents, Alexander Morris, aka Alexander Luna, 42, was previously convicted of engaging in felony sexual conduct with a minor in 2002 and again in 2004, requiring him to register as a sex offender in any jurisdiction where he resides. He was subsequently convicted of failing to register as a sex offender in the state of Maryland on four occasions between 2005 and 2009. In 2011, Morris disappeared from his residence in Maryland and traveled to Woodbridge, where he had been living under a different name and without registering as a sex offender until law enforcement located and arrested him in September 2019.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nick Proffitt, U.S. Marshal for the Eastern District of Virginia, made the announcement after sentencing by Senior Judge T.S. Ellis, III. Special Assistant U.S. Attorney William G. Clayman 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. 1:20-cr-308.
Chicago Man Arrested on Child Pornography Charge for Allegedly Enticing Underage Girl to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — A Chicago man has been arrested on a federal child pornography charge for allegedly enticing an underage girl to produce sexually explicit videos of herself.
HUGH B. FOWLER enticed the 16-year-old girl to produce the videos and send them to him last year, according to a criminal complaint and affidavit filed in federal court in Chicago. Fowler communicated with the victim via an online messaging application, the complaint states.
The complaint charges Fowler, 62, with one count of production of child pornography. Fowler was arrested on Wednesday. U.S. Magistrate Judge Gabriel A. Fuentes scheduled a detention hearing for Feb. 25, 2020, at 3:00 p.m.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Charlie Beck, interim Superintendent of the Chicago Police Department. The case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, specifically members from the Chicago Police Department and Cook County Sheriff’s Office, as well as officers from CPD’s 19th District. The government is represented by Assistant U.S. Attorney Erin E. Kelly.
According to the complaint, Fowler sent the victim detailed instructions for how he wanted the sexually explicit videos to look. Fowler told the victim to display her private parts and to write Fowler’s first name or his initial on her body, the complaint states. “I would like music if possible,” Fowler wrote to the victim, according to the complaint. “It’s better if the video is longer than short,” Fowler allegedly told the victim.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Production of child pornography is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Catherine Verdon Pleads Not Guilty to False Statement ChargesRead the Press Release
The United States Attorney for the District of Vermont announced that Catherine Verdon, 45, of Middletown Springs, pleaded not guilty yesterday in United States District Court in Burlington to an indictment charging her with making false statements to obtain federal and state program benefit payments. U.S. Magistrate Judge John M. Conroy released Verdon on conditions pending trial, which has not been scheduled.
On January 29, a federal grand jury in Rutland returned a four-count indictment against Verdon. Two of the counts charged Verdon with making false statements to the Social Security Administration in connection with her applications for Supplemental Security Income benefits, a need-based assistance program for aged, blind and disabled individuals. According to the indictment, Verdon falsely claimed that she and her husband were separated and that he did not live in the household. Such falsehoods would have affected her eligibility to receive any SSI benefits.
The indictment further charges Verdon with making false statements to Vermont officials in connection with her application for benefits under Vermont assistance programs that are funded, in part, by the U.S. Departments of Agriculture and Health and Human Services. Such programs include Medicaid; 3Squares, a food stamp-type program; a fuel assistance program; and Reach Up, a family assistance program. The indictment alleges that Verdon falsely claimed in her state applications that she and her husband were separated; that he did not live in the household; and that he did not provide financial assistance to the family.
The U.S. Attorney emphasizes that the charges in the indictment are merely accusations and that Verdon is presumed innocent unless and until she is proven guilty.
If convicted, Verdon faces up to five years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Offices of the Inspector General of both the Social Security Administration and the Department of Health and Human Services.
Verdon is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
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.
Carmel man indicted for using PayPal and eBay to gain $2,000,000 by fraudRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Tuong Quoc Ho, 32, Carmel, Ind., was indicted by a federal grand jury for an elaborate scheme to defraud businesses, consumers, suppliers, financial institutions, credit card holders, credit card companies, and identity theft victims for personal monetary gain. The indictment contains 28 federal offenses including wire fraud, aggravated identity theft, credit card fraud, money laundering, and other federal offenses.
“Fraud cannot and will not be tolerated at any cost, especially when it involves identity theft,” said Minkler. “This can devastate people’s credit, which often times takes them years to repair. This office is committed to prosecuting such crimes to the fullest extent of the law. Today Mr. Ho’s streak of fraud and identity theft comes to an end.”
According to court documents, Ho and others overseas allegedly obtained personal information from the internet of hundreds of persons located throughout the United States and worldwide. He then allegedly used this information to fraudulently open PayPal and eBay accounts. He would then link his personal bank accounts to these PayPal accounts to receive and transfer money. There were over 500 PayPal accounts linked to Ho’s personal bank accounts.
The indictment further alleges that Ho and others used the eBay accounts to advertise and sell a variety of items that were purchased with stolen credit card information from thousands of individuals.
The indictment further alleges that Ho used the personal information he obtained of others to generate and submit to PayPal fraudulent documents in the names of those other persons, including identification documents (driver’s licenses, passports, social security cards), proof of address documents (utility bills, bank statements), and proof of sales documents (invoices, receipts). This was intended to mislead PayPal about the identity of the person who opened and maintain the accounts, as well as the true source of the items being sold on eBay.
Finally, the indictment alleges that proceeds from eBay sales totaling over $2 million, flowed through to the PayPal accounts. Ho then wired money to family and friends in Vietnam, and used the money for personal expenses, including the purchase of his home in Carmel.
This case is the result of an investigation by the Carmel Police Department, Federal Bureau of Investigation, and the United States Postal Inspection Service.
“These charges are the result of a complex international investigation conducted jointly by FBI Indianapolis’ Cyber Intrusion Program and the Carmel Police Department working in partnership to put an end to Mr. Ho’s illegal activity that targeted hundreds of victims,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “Identity theft wreaks havoc on the lives of legitimate consumers and can cause them to spend countless hours trying to clear their names. This arrest highlights the FBI's commitment to work with our law enforcement partners to continue an aggressive fight against individuals who carry out these schemes.”
“This case began in October of 2018,” said Carmel Police Department Major Charlie Harting. “Dedicated detectives and special agents from the Carmel Police Department and the FBI collaborated together to put the pieces of the investigative puzzle together that touched points on the other side of the world. The hard work of the detectives, special agents, and U.S. Attorney’s office is a great example of local and federal partnership working together for the good of our community and the country.”
“Postal Inspectors investigate any fraud in which the U.S. Mail is used, even if the scheme originally started over the phone or through the Internet.” said Inspector-in-Charge Ed Gallashaw, USPIS Indianapolis. “ Being the law enforcement and security arm of the U.S. Postal Service, the Postal Inspection Service works with federal, state, and local law enforcement partners to enforce fraud statutes to the maximum extent possible against those who seek to separate postal customers from their money. The indictment secured in this investigation is a perfect demonstration of how that team work helps us protect our customers and safeguard our communities.”
According to Assistant United States Attorneys MaryAnn T. Mindrum and James M. Warden, who are prosecuting this case for the government, defendant faces up to 20 years’ imprisonment, 3 years of supervised release, and a maximum fine of $250,000.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to prioritize the investigation and prosecution of complex, large scale fraud schemes that warrant federal resources and expertise, particularly those that are perpetrated by career fraudsters involving the use of bogus access devices and identity fraud. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.5 and 5.1.
Blythe man admits firing on helicopter during federal law enforcement operationRead the Press Release
AUGUSTA, GA: A Blythe man has pled guilty to federal charges that he shot a helicopter being used in support of a law enforcement operation.
Terry Kielisch, 56, pled guilty in U.S. District Court to two counts of Assaulting a Person Assisting an Officer of the United States, and one count of Use of a Firearm During and in Relation to a Crime of Violence, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The charges carries a maximum sentence of life in prison. There is no parole in the federal system.
“This defendant’s dangerous actions callously threatened the lives of two law-enforcement officers, damaged public property and threatened the safety of all residents near the scene of this incident,” said U.S. Attorney Christine. “We are fortunate that no one was injured in this senseless attack.”
According to court documents and testimony, Kielisch used a .308 caliber rifle to fire two shots at a Georgia State Patrol helicopter piloted by a GSP trooper, with a Richmond County Sheriff’s Office investigator as a passenger, on March 12, 2019. The aircraft was providing support for Operation Gunsmoke, a sweep of defendants accused of drug trafficking and illegal firearms possession in Georgia and South Carolina, coordinated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Kielisch was not a target in the operation, and told investigators he fired at the helicopter because he didn’t like it flying near his home. The helicopter, which was struck near fuel lines, received an estimated $60,000 in damage, but neither the pilot nor the passenger were injured and the craft landed safely.
“An individual who will thoughtlessly endanger our law enforcement community will not be tolerated,” said Henry Countryman, Acting Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF, along with our law enforcement partners, is committed to combating violent crime to protect our communities.”
“The Georgia State Patrol is grateful the crew and those on the ground weren’t injured as a result of Kielisch’s careless actions,” said Lt. Stephanie L. Stallings, Public Information Director for the Georgia State Patrol. “We are equally grateful to U.S. Attorney Christine for the swift resolution in this case.”
“Protecting our courageous and dedicated law enforcement officers is the sheriff’s greatest responsibility,” said Richmond County Sheriff Richard Roundtree. “We are appreciative to the U.S. Attorney’s Office for their prompt attention to these dangerous unprovoked actions.”
The case was investigated by the ATF, the Georgia State Patrol and the Richmond County Sheriff’s Office, and is being prosecuted for the United States by Assistant U.S. Attorney Hank Syms Jr.
Birmingham Man Sentenced to 41 Months in Prison in Complex Financial Fraud SchemeRead the Press Release
BIRMINGHAM, Ala. –A federal judge today sentenced a Birmingham man with a wire fraud scheme, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Patrick Davis.
U.S. District Judge Annemarie Axon sentenced Michael Charles Vines, to 41months in prison for wire fraud. Vines pled guilty to that charge in September 2019.
“The defendant exploited his position of trust with conduct that was deliberate and deceptive,” Town said. “Abuse of trust and misuse of funds is unacceptable and those who consider engaging in these types schemes should know that it can lead to federal prison.”
“The investigation conducted by the U.S. Secret Service revealed Michael Charles Vines defrauded The Country Club of Birmingham of over $630,000,” said Patrick Davis, Special Agent in Charge, Birmingham Field Office. “Mr. Vines was a tenured employee. He not only violated the trust of his employer, but also that of the members of The Country Club of Birmingham.”
According to court documents, beginning in May 2002 through June 2018, Vines worked as the accounts receivable clerk for The Country Club of Birmingham. In 2008, Vines was promoted to management information systems and accounts receivable clerk. As accounts receivable clerk, Vines managed the cash and checks received from members and outside vendors or visitors. He was responsible for preparing the receivable portion of the monthly bank account. In 2015, all responsibility for the monthly bank account reconciliation process was transferred to Vines. Between 2007 and 2018, Vines engaged in a scheme to steal cash and other proceeds from the County Club of Birmingham. Vines concealed the scheme by making false and fraudulent entries into the financial management system and making false and fraudulent representations in person and in emails to the Country Club of Birmingham management and the outside auditor. Vines’ scheme resulted in him stealing over $630,000 from The Country Club of Birmingham.
The U.S. Secret Service investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
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.
Billings meth trafficker sentenced to prisonRead the Press Release
BILLINGS—A Billings man convicted at a bench trial of methamphetamine distribution crimes was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
U.S. District Judge Susan P. Watters in July found Darrell Franklin Holliday, 48, guilty of possession with intent to distribute meth and two counts of distribution of meth as charged in an indictment. Judge Watters presided at sentencing.
During the bench trial, prosecutors presented evidence that Holliday was distributing meth in the Billings area in August and September 2017. Investigators conducted two controlled buys of methamphetamine from Holliday during this period. In a recorded statement to officers, Holliday admitted he used meth daily when he had the chance. Holliday also made incriminating statements in recorded jail calls.
Assistant U.S. Attorneys Zeno Baucus and Karla Painter prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Bergen County Man Sentenced to Six Years in Prison for Using Personal Information Stolen from U.S. Service Members to File Phony Tax ReturnsRead the Press Release
TRENTON, N.J. – A Fort Lee, New Jersey, man was sentenced today to 72 months in prison for generating phony tax refunds using personal identifying information stolen from current and former members of the U.S. army, U.S. Attorney Craig Carpenito announced.
Shope Oluwo, 35, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an indictment charging him with one count each of conspiracy to commit wire fraud, access device fraud, and aggravated identity theft. Chief Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From January through February 2016, Oluwo conspired with others, including Dermot Sutherland, 30, of Philadelphia, to obtain personal identifying information that was stolen from current or former members of the U.S. Army. Oluwo used that stolen information to create fake military identification cards and fraudulent W-2 forms bearing the victims’ names.
Oluwo provided the phony cards and W-2 forms to Sutherland, who posed as the victims and filed phony returns with a tax preparation company. Afterwards, Sutherland received debit cards from the tax preparation company that contained the ill-gotten refunds.
In addition to the prison term, Judge Wolfson sentenced Oluwo to three years of supervised release and ordered to pay $11,170 in restitution.
Sutherland previously pleaded guilty to his role and was sentenced in February 2019 to three years of probation.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Patrick Brackley Esq., New York
Belarus Man Indicted for Mailing Ricin and Threats to Pelican Bay State PrisonRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Vladislav Victorvic Timoshchuk with attempted transfer of a toxin for use as a weapon, mailing threatening communications, and mailing an injurious article, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
According to the indictment, Timoshchuk, 34, of Belarus, is alleged to have sent two envelopes containing ricin to Pelican Bay State Prison. One of the envelopes was addressed to the Warden and contained ricin and a note, which read: “WARNING! TOXIC! THIS LETTER IS LACED WITH DEADLY RICIN POWDER.” The other envelope was addressed to inmate A.C. and contained ricin and a note, which read in part: “Release inmate A.C.”
The indictment further alleges that Timoshchuk had previously been incarcerated in California state prison facilities, after which he was deported from the United States to Belarus. In 2016 and into 2018, Pelican Bay State Prison intercepted letters postmarked from Belarus to members of a prison gang, including to inmate A.C. In that same timeframe, in 2017, the Anaheim Police Department investigated a school shooting threat, which demanded the release of inmate A.C. from Pelican Bay State Prison in order to avoid the “execution” of a student every day until that release occurred. Later, in 2019, the Bureau of Prisons intercepted a Christmas card sent from Belarus to inmate Theodore Kaczynski, the Unabomber, in which Timoshchuk claimed responsibility for the threats to Anaheim schools and discussed a plan to mail ricin to the United States.
The indictment, filed on February 20, 2020, charges Timoshchuk with two counts of attempted transfer of a toxin for use as a weapon, in violation of 18 U.S.C. § 175(a); two counts of interstate and foreign communication of a threat, in violation of 18 U.S.C. § 875(c); and two counts of mailing an injuries article, in violation of 18 U.S.C. § 1716(j)(1). Timoschuk is not charged for threats other than the two mailings to Pelican Bay.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of life for each attempted transfer of a toxin for use as a weapon; a maximum of five years for each interstate and foreign communication of a threat; and a maximum sentence of one year for each mailing of an injurious article. Each charge also carries a potential term of supervised release, a fine of $250,000, and restitution as ordered by the court. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office. The prosecution is the result of an investigation by the FBI with the assistance of state and local law enforcement partners and the U.S. Postal Service.
Beggs Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Gerome William Davis, age 22, of Beggs, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about December 2, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce a firearm, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation as part of the Project Safe Neighborhoods (“PSN”) effort in the Eastern District of Oklahoma to reduce violent crime. PSN is an initiative led and coordinated by the United States Attorney’s Office.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney David Youll represented the United States.
Armed Career Criminal Sentenced to More Than 19 Years in Prison for Firearm and Narcotics ChargesRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Jarquel Jenkins (28, Fort Myers) to 19 years and 7 months in federal prison for distributing a controlled substance, possession with the intent to distribute a controlled substance, and possessing a firearm as a convicted felon.
Jenkins had pleaded guilty on November 27, 2019.
According to court documents, on three separate occasions in January and February 2019, Jenkins sold controlled substances (heroin and cocaine) to confidential informants. In February 2019, following a controlled purchase of narcotics from Jenkins, law enforcement officers attempted to arrest Jenkins who fled from a parked vehicle. During the execution of a search warrant of the vehicle, officers seized various quantities of heroin, methamphetamine, and cocaine, as well as a loaded firearm from the vehicle’s cup holder. As a previously convicted felon, Jenkins is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Trent Reichling.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Argentinian Man Pleads Guilty to Child Sexual Exploitation and Distribution of Child Pornography over the DarkwebRead the Press Release
LAS VEGAS, Nev. – Andres Rafael Viola, 36, an Argentine citizen who resides in Las Vegas, pleaded guilty to sexual exploitation of children and possession of child pornography, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Frank Burrola for Homeland Security Investigations (HSI).
According to court documents, in May 2019, Yahoo, Inc. reported to the National Center for Missing and Exploited Children that one of its users received 14 images of child pornography from Viola, who was using the darkweb Tor network to distribute child pornography.
On June 7, 2019, federal law enforcement arrested Viola at his Las Vegas residence. Law enforcement determined that Viola had supervisory control over the child victim. A forensic examination of electronic devices that were seized from Viola’s home revealed nearly 350 child pornography images and video, including Viola’s sexual exploitation of the victim and a curated collection of child pornography from other victims. Evidence showed that Viola had used the darkweb to distribute, trade, and share the child pornography he created of the child victim.
For the hands-on offenses related to the child victim, Viola pleaded guilty in Nevada state court to one count of Sexual Assault of a Child under the Age of 14.
This case was the product of an investigation by HSI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Elham Roohani is prosecuting the case.
Viola is scheduled to be sentenced by U.S. District Judge Richard F. Boulware II on May 28, 2020. As part of his guilty plea, Viola has agreed to 35 years of imprisonment and he may face deportation from the United States. The statutory mandatory minimum sentence for sexual exploitation of children is 15 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Alabama Man Sentenced to 60 Months for Multi-State Bank Robbery SpreeRead the Press Release
LEXINGTON, Ky. – An Alabama man, Maxwell Hayslip, 27, was sentenced to 60 months in federal prison and ordered to pay a $20,000 fine on Friday by Chief United States District Judge Danny C. Reeves, after previously admitting to robbing five banks by intimidation in Kentucky, Tennessee, and Georgia.
As part of his guilty plea, Hayslip and admitted that, between August 7 and November 13, 2018, he robbed banks in Lexington, Kentucky; Murfreesboro, Tennessee; Nashville, Tennessee; Bowling Green, Kentucky; and Carrollton, Georgia. Hayslip admitted that he wrongfully obtained over $14,000 over the course of his robbery spree, and he agreed to pay that total amount back in restitution. According to his plea agreement, he was captured by law enforcement in Alabama, soon after the Lexington robbery.
In addition to the prison sentence, Hayslip must pay $14,258 in restitution and a $20,000 fine imposed by the court. Under federal law, Hayslip must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for life.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Lawrence Weathers, Chief of the Lexington Police Department; Michael Bowen, Chief of the Murfreesboro Police Department; Steve Anderson, Chief of the Metropolitan Nashville Police Department; Doug Hawkins, Chief of the Bowling Green Police Department; and Joel Richards, Chief of the Carrollton Police Department, jointly announced the sentencing.
Local law enforcement agencies in each respective jurisdiction investigated Hayslip, and the federal investigation was directed by the Federal Bureau of Investigation. The United States was represented by Special Assistant U.S. Attorney James T. Chapman.
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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4Xon Gang Member Sentenced for Illegal Firearm PossessionRead the Press Release
RICHMOND, Va. – A Richmond gang member was sentenced today to five years in prison for possession of a firearm as a convicted felon.
According to court documents, in August 2019, Richmond Police Department (RPD) officers observed Terrell Clarke-Conley, 22, as the passenger in a vehicle on a traffic stop at the intersection of Westwood Avenue and Chamberlayne Avenue in Richmond. The officers identified Clarke-Conley as a wanted fugitive, and after being stopped, Clarke-Conley attempted to flee when officers asked him to step out of the vehicle. Following a brief struggle, RPD officers recovered a Glock, Model 19X, 9mm caliber, semi-automatic pistol, loaded with 19 rounds in a high-capacity magazine, in Clarke-Conley’s possession. At the time of his possession of the firearm, Clarke-Conley had previously been convicted of a felony.
During the sentencing, the Court determined that Clarke-Conley was a 4Xon gang member, a gang located in the Highland Park area of Richmond. In imposing a five-level upward sentencing variance, the Court focused on several other incidents involving Clarke-Conley’s firearm possession and his involvement in the 4Xon gang.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; and William C. Smith, Chief of Richmond Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Erik S. Siebert 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. 3:19-cr-129.
Thursday 20 February 2020
‘SCO’ Gang Leader and 2 Associates Plead Guilty to Multiple ChargesRead the Press Release
PITTSBURGH, PA – Three former residents of Southwestern Pennsylvania pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Howard McFadden, 30, formerly of Turtle Creek, PA, Donald Singleton, 48, formerly of Penn Hills, PA, and Chadlin Leavy, 31, of Pittsburgh, PA pleaded guilty this week to multiple counts related to their involvement in conspiracies to distribute controlled substances in Southwestern Pennsylvania.
In connection with the guilty pleas, the Court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around Braddock Borough and identified several members and associates of a neighborhood-based street gang, self-titled "SCO" that were responsible for distributing controlled substances in Western Pennsylvania, including SCO’s leader, Howard McFadden.
In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. Through the course of this investigation, the Court was informed that intercepted communications confirmed McFadden’s involvement in drug-trafficking as well as other members, associates and/or suppliers of McFadden – and SCO, including Singleton and Leavy.
As to McFadden, the Court was informed, that McFadden used younger SCO members and associates as runners and couriers to facilitate drug transactions with his drug customers. He also used a number of houses, throughout Braddock, including houses that he owned via his house-flipping business, H&M Home Solutions, as stash house locations. The Court was informed that on one occasion, McFadden and another member of the conspiracy were observed sitting in McFadden’s vehicle, parked on Seddon Avenue, placing a clear plastic baggie containing suspected narcotics on a scale located on the center armrest of McFadden’s vehicle.
In conjunction with his guilty plea McFadden also admitted that he unlawfully possessed a Glock 30, .45 caliber automatic pistol, which law enforcement seized at the time of McFadden’s arrest. On June 12, 2019, law enforcement seized from McFadden a Jeep Grand Cherokee, the Glock pistol, high-end jewelry and a total of $23,578. In conjunction with the change of plea, McFadden admitted to conspiring to distribute 1,128 grams of heroin, 2,546 grams of cocaine and 371.15 grams of cocaine base.
As to Singleton, the Court was informed that he was one of McFadden’s close associates and regularly talked with McFadden over the phone to discuss their drug-trafficking operations. Singleton, who maintained his own smaller customer base, admitted that in addition to providing McFadden with drug-trafficking advice and the names of individuals who could supply McFadden with controlled substances that he also let McFadden use an apartment in Penn Hills at the Wellington Square Apartment complex to process cocaine into cocaine base, more commonly known as crack. On June 12, 2019, law enforcement seized numerous items from this apartment indicative of drug-trafficking. In conjunction with the change of plea, Singleton admitted to conspiring to distribute 80 grams of heroin, 2,000 grams of cocaine and 84 grams of cocaine base.
As to Leavy, the Court was informed that Leavy was a heroin, cocaine and marijuana source of supply for McFadden, among others. The Court was informed that law enforcement stopped Leavy while he was en route to meet with his marijuana source of supply, Jared Eck, to purchase 25- 30 lbs of marijuana from Eck for $30,000. Law enforcement found the $30,000 in the vehicle and seized it. Additionally, the Court was advised that on June 12, 2019, law enforcement seized from Leavy’s residence a 2008 Mercedes Benz S550, $42,882, four firearms and related magazines and ammunition, and high-end jewelry. In conjunction with the change of plea, Leavy admitted to conspiring to distribute 585 grams of heroin, 1,526 grams of cocaine and 53 kilograms of marijuana.
Judge Schwab scheduled sentencing as to Leavy for May 21, 2020, at 9:00 AM, as to Singleton for July 15, 2020, at 10:00 AM, and as to McFadden for July 28, 2020, at 11:00 AM.
As to McFadden, the law provides for maximum sentence of not less than 15 years and not more than life in prison, a fine of not more than $20,000,000, or both. As to Leavy and Singleton, the law provides for a maximum sentence of not less than five and not more than 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Leavy remains on bond pending sentencing in this matter.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
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.
Yonkers Man Charged with Bronx KidnappingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging OWEN DRAIN, a/k/a “Whiteboy,” a/k/a “Tommy,” with the November 19, 2019, gunpoint kidnapping of a victim in the Bronx. The case has been assigned to United States District Judge Victor Marrero. DRAIN was arrested this afternoon, and will be presented today before United States Magistrate Judge Barbara C. Moses.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendant kidnapped a victim in a car at gunpoint. Thanks to the outstanding work of the FBI and the NYPD, the defendant is now charged in federal court for this extremely serious crime.”
Police Commissioner Dermot Shea said: “This arrest and indictment reflects the hard work that members of the NYPD engage in each day to hold responsible the small number of individuals committing much of the violence in New York City. I commend the efforts of the NYPD investigators and our law enforcement partners involved in this investigation.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
As alleged, on November 19, 2019, OWEN DRAIN kidnapped a victim at gunpoint and zip tied the victim during the course of the kidnapping.
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DRAIN, 35, of Yonkers, New York, is charged with kidnapping, which carries a maximum sentence of life imprisonment. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD and FBI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Ni Qian and Michael D. Longyear are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Wilkinsburg Felon Admits Illegally Possessing Fentanyl, Heroin and a GunRead the Press Release
PITTSBURGH -A former resident of Wilkinsburg, PA pleaded guilty yesterday in federal court to charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
Jordan Thompson, 23, pleaded guilty to three counts before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on February 7, 2019, Thompson possessed with intent to distribute fentanyl and heroin. The court was further informed that Thompson unlawfully possessed a Glock .40 caliber firearm in furtherance of the drug trafficking offense, after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include one conviction for possession with intent to deliver a controlled substance, two convictions for receiving stolen property, and convictions for carrying a firearm without a license and being a person not to possess a firearm. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Chief Judge Hornak scheduled sentencing for June 16, 2020, at 11:00 am. The law provides for a total sentence of up to life in prison, a fine of $2,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Thompson remains detained pending sentencing.
Assistant United States Attorney Christy Criswell Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Monroeville Police Department conducted the investigation that led to the prosecution of the defendant. The case was brought as part of Project Safe Neighborhoods. 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.
Wetzel County man sentenced for firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Martin Anderson, of New Martinsville, West Virginia, was sentenced today to 18 months incarceration for a firearms violation, U.S. Attorney Bill Powell announced.
Anderson, age 31, pled guilty to one count of “Unlawful Possession of a Firearm” in October 2019. Anderson, a person prohibited from having firearms, is accused of possessing a .223 caliber rifle and two .22 caliber rifles in Wetzel County in June 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Western District of Louisiana U.S. Attorney's Office Collects More Than $44 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2019Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. – United States Attorney David C. Joseph announced today that the U.S. Attorney’s Office for the Western District of Louisiana collected over $44 million in civil and criminal actions in Fiscal Year (FY) 2019. Of this amount, $24,561,613.58 was collected in civil actions, and $3,554,319.45 was collected in criminal actions handled solely by the Western District.
The office also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $16,094,499.63 in cases pursued jointly by these offices. Collections included $16,088,679.32 in civil actions and $5,820.31 in criminal actions.
The Financial Litigation Unit (FLU) of the U.S. Attorney’s Office collected $1,210,112.31 through garnishment actions filed by the FLU and $456,477.07 through the Treasury Offset Program, which allows for the offset of funds payable by the United States to certain delinquent debts owed to the United States.
Overall, the Justice Department collected a total of just over $9.3 billion in civil and criminal actions in the fiscal year ending September 30, 2019.
“The $44 million collected by our office is a credit to the outstanding work performed by our attorneys and staff, each of whom are deeply committed to finding and collecting monies owed to the United States and crime victims,” Joseph stated. “We look forward to continuing our work to recover any and all money owed to taxpayers and to those whose lives have been impacted by crime.
FY 2019 Collections Highlights
Evangeline Enterprises LLC of Carencro, Louisiana, a racehorse training-center operator, agreed to pay $300,000 in October 2018 in civil penalties to settle Clean Water Act claims filed by the U.S. Environmental Protection Agency (EPA) and the Louisiana Department of Environmental Quality (LDEQ). The settlement resolved claims by EPA and LDEQ that Evangeline illegally discharged process wastewater, contaminated with horse manure, urine, and other biological materials, from its facility into the Vermilion River and its tributary Francois Coulee, in violation of the Clean Water Act and the Louisiana Environmental Quality Act.
Press Release: https://www.justice.gov/usao-wdla/pr/carencro-race-horse-training-center-owner-will-pay-civil-penalties-and-perform
In January 2019, Sunoco Pipeline L.P. agreed to pay the United States $5 million in federal civil penalties, resulting from a joint federal-state Clean Water Act (CWA) enforcement action filed in the Western District of Louisiana, to resolve alleged CWA violations stemming from three crude oil spills in 2013, 2014, and 2015 in Texas, Louisiana and Oklahoma.
Press Release: https://www.justice.gov/usao-wdla/pr/sunoco-pipeline-lp-pay-more-54m-and-take-oil-spill-prevention-steps-settle-claims
In May 2019, Morrison & Dickson Company, LLC, the largest privately owned wholesale pharmaceutical distributor in the United States and the fourth largest in the country, entered into a settlement agreement with the United States in which Morris & Dickson agreed to pay $22 million in civil penalties to resolve claims that it violated the Controlled Substances Act. The claims against Morris & Dickson arose from a Drug Enforcement Administration Office of Diversion Control investigation into Morris & Dickson’s failure to report suspicious orders of hydrocodone and oxycodone. DEA Diversion agents identified more than 12,000 allegedly suspicious retail pharmacy orders that should have been reported since January 2014.
Press Release: https://www.justice.gov/usao-wdla/pr/us-attorney-david-c-joseph-announces-settlement-louisiana-drug-distributor-resolving
In September 2019, Biomedical Research Foundation of Northwest Louisiana and its related companies, and the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College agreed to pay $531,241.74 in damages to resolve claims that they violated the False Claims Act and other laws while operating University Health Hospital in Shreveport. The Biomedical Research Foundation of Northwest Louisiana and LSU were alleged to have sought and obtained payment from Medicare for procedures that required reporting to a qualified registry. The procedures that they failed to report involved implantable automatic defibrillators, which are electronic devices designed to detect and treat life-threatening tachyarrhythmias. This settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act.
Press Release: https://www.justice.gov/usao-wdla/pr/qui-tam-lawsuit-and-federal-investigation-results-half-million-dollar-settlement
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws and representing the federal government in civil litigation. The Western District of Louisiana U.S. Attorney’s Office covers 42 of Louisiana’s 64 parishes and includes the cities of Shreveport, Lafayette, Alexandria, Lake Charles, and Monroe. The office is composed of approximately 40 Assistant U.S. Attorneys and approximately 41 staff members at offices in Shreveport and Lafayette.
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West Sacramento Man Indicted for Transporting 85 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Simeon Hernandez-Ortiz, 24, of West Sacramento, charging him with possessing methamphetamine with the intent to distribute it, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 6, Hernandez-Ortiz was stopped by a law enforcement officer while traveling north on I-5 in Stanislaus County. Based upon the officer’s subsequent investigation, the vehicle was searched and the officer found 85 pounds of methamphetamine concealed in the trunk.
This case is the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol, Stanislaus Investigative Unit. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.
If convicted, Hernandez faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Utah Man Convicted on Hate Crime Charges After Attacking Three Men with a Metal PoleRead the Press Release
After a five-day trial, a federal jury in Salt Lake City, Utah, found defendant Alan Covington guilty on three hate crime charges stemming from an incident in which the defendant attacked three men with a metal pole because he believed the men were Mexican.
The verdicts were announced by Eric Dreiband, Assistant Attorney General for the Civil Rights Division; John W. Huber, United States Attorney for the District of Utah; and Paul H. Haertel, Special Agent in Charge of the Salt Lake City Field Office of the Federal Bureau of Investigation.
Evidence presented at trial established that on Nov. 27, 2018, Covington entered a tire store, shouted at employees that he wanted to “kill Mexicans,” and then struck an employee in the head with a metal pole. The father of the victim rushed to help his son, who had been knocked to the ground with a serious head injury. While the father cradled his son’s head, Covington used the metal pole to strike the father in the back. When a third man tried to intervene to chase off the defendant, Covington swung the metal pole in an attempt to injure him. Covington was apprehended by police near the tire store, with a metal pole and a hatchet in his possession.
A sentencing date has not yet been set by U.S. District Judge Howard C. Nielson Jr. Covington faces a maximum sentence of life in in prison and a $250,000 fine.
The case was investigated by the Salt Lake City Field Office of the FBI, with the cooperation of the Salt Lake City Police Department. The case is being prosecuted by Assistant U.S. Attorney J. Drew Yeates of the United States Attorney’s Office and Special Litigation Counsel Rose E. Gibson of the Civil Rights Division.
Utah Man Convicted on Hate Crime Charges After Attacking Three Men with A Metal PoleRead the Press Release
SALT LAKE CITY– After a five-day trial, a federal jury in Salt Lake City, Utah, found defendant Alan Covington guilty on three hate crime charges stemming an incident in which the defendant attacked three men with a metal pole because he believed the men were Mexican.
The verdicts were announced this afternoon by Eric Dreiband, Assistant Attorney General for the Civil Rights Division; John W. Huber, United States Attorney for the District of Utah; and Paul H. Haertel, Special Agent in Charge of the Salt Lake City Field Office of the Federal Bureau of Investigation.
“In America, we have the right to wake each day and pursue work and family activities without the fear of a violent assault because of our ethnicity or perceived national origin. When an offender violates this basic civil right, we will hold him accountable,” U.S. Attorney John W. Huber said today. “Today, a jury of his peers held Mr. Covington responsible for violating the civil rights of the victims in this case, who were physically injured and traumatized.”
"Hate has no place in our society, and as the victims in this case testified, the brutal assault against them has completely altered their lives forever," said Paul H. Haertel, Special Agent in Charge of the FBI's Salt Lake City Field Office. "Hate crimes are the highest priority of the FBI's Civil Rights program. They devastate not only the victims but an entire community, and we will aggressively investigate those whose biases motivate their crimes."
Evidence presented at trial established that on November 27, 2018, Covington entered a tire store, shouted at employees that he wanted to “kill Mexicans,” and then struck an employee in the head with a metal pole. The father of the victim rushed to help his son, who had been knocked to the ground with a serious head injury. While the father cradled his son’s head, Covington used the metal pole to strike the father in the back. When a third man tried to intervene to chase off the defendant, Covington swung the metal pole in an attempt to injure him. Covington was apprehended by police near the tire store, with a metal pole and a hatchet in his possession.
A sentencing date has not been set by U.S. District Judge Howard C. Nielson, Jr. Covington faces a maximum sentence of life in prison after the jury found that an enhancement for “attempt to kill,” associated with count one of the indictment, applied in the case.
The case was investigated by the Salt Lake City Field Office of the FBI, with the cooperation of the Salt Lake City Police Department. The case is being prosecuted by Assistant U.S. Attorney J. Drew Yeates of the United States Attorney’s Office and Special Litigation Counsel Rose E. Gibson of the Civil Rights Division.
Used Car Dealer Indicted for Bank Fraud, Aggravated ID TheftRead the Press Release
PROVIDENCE – A Massachusetts used car dealer was arraigned in U.S. District Court in Providence on Wednesday and ordered detained, charged by way of indictment with allegedly participating in a wide-reaching conspiracy to defraud financial institutions in several states by obtaining car loans secured with stolen personal identifying information and fraudulent documents.
It is alleged that Rolando E. Estrella, 32, of Dracut, Mass., conspired with others to defraud financial institutions in Rhode Island, Massachusetts, and numerous other states across the country.
It is alleged in the indictment that the scam employed by Estrella and others involved the theft and use of individuals’ personal identifying information to open bank accounts with major banks and smaller credit unions. Using that information along with counterfeited documents including automobile titles, Estrella and others applied for used car and truck loans which were then deposited into bank accounts opened in the “sellers’” names, after which the proceeds were quickly withdrawn.
Until recently, Estrella was the operator of Estrella National Auto, LLC, a used car dealership located in Lawrence, Massachusetts.
On December 17, 2019, an arrest warrant was issued for Estrella after a federal grand jury returned a ten-count indictment charging him with conspiracy to commit bank fraud, aggravated identity theft, fraudulent use of a Social Security number, and seven counts of bank fraud. He surrendered to the U.S. Marshals Service in Rhode Island on Wednesday and was arraigned before U.S. District Court Magistrate Judge Patricia A. Sullivan.
The indictment and arraignment of Estrella are announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the U.S. Secret Service Stephen Marks, and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney William J. Ferland.
Estrella’s arrest marks the latest in a series made by the Social Security Office of Inspector General and the United States Secret Service involving members of a fraud ring operating throughout the northeast United States.
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United States Attorney's Office for the District of Columbia and the Attorney General for the District of Columbia Announce Joinder of Trials in Fatal Kennedy Street Row House FireRead the Press Release
WASHINGTON – Superior Court of the District of Columbia Judge Ronna L. Beck granted on Tuesday a motion filed by the U.S. Attorney’s Office for the District of Columbia and the District of Columbia Office of the Attorney General to join their separate prosecutions of defendant James G. Walker, 61, the former owner of a row house at 708 Kennedy Street, N.W. The defendant did not object to joining the cases against him. Walker was previously indicted by a grand jury and arraigned on two counts of second degree murder and two counts of involuntary manslaughter. He was also arraigned on 41 criminal fire and housing code violations.
The joinder of trials was announced by U.S. Attorney Timothy J. Shea; District of Columbia Attorney General Karl A. Racine; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge of the Washington Field Division Ashan M. Benedict; Chief of the Metropolitan Police Department (MPD) Peter Newsham; and Fire and EMS Chief Gregory M. Dean.
“The joinder of these cases for trial provides yet another opportunity for the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia, along with our other local and federal partners, to join forces in the pursuit of justice on behalf of District residents,” said U.S. Attorney Timothy J. Shea for the District of Columbia.
"This prosecution demonstrates how the Office of the Attorney General fights every day for the safety and well-being of our most vulnerable residents," said Attorney General Karl A. Racine. These charges are the result of a comprehensive investigation and close partnership between our two respective offices. We are committed to bringing justice to this tragic case."
According to the indictment and related court documents, on August 18, 2019, Fitsum Kebebe, Yafet Solomen, and others resided at the row house on Kennedy Street owned by Walker. Although Walker used the row house as a boarding house, he did not have a certificate of occupancy for the building. During the morning of August 18, a fire broke out inside the row house. Kebebe and Solomen were in the basement at the time and were unable to exit the row house. They died from smoke inhalation. Following the indictment, Walker was arrested on January 15, 2020.
An indictment and an information are formal accusations of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Walker faces a maximum sentence of 30 years in prison, a fine of up to $250,000, and five years of supervised release. If convicted of the fire and housing code violations, Walker faces a maximum penalty of more than 10 years or fines exceeding $50,000.
In announcing the court’s joinder of the cases, U.S. Attorney Shea, D.C. Attorney General Racine, ATF SAC Benedict, MPD Chief Newsham, and Fire and EMS Chief Dean commended the work of the ATF Arson and Explosives Task Force that investigated the case, including MPD, ATF, and Fire and EMS. Finally, they acknowledged the work of Assistant U.S. Attorney Vinet Bryant and Assistant Attorneys General Keith Ingram and Jeffrey Cargill who are prosecuting the cases now joined for trial.
Two New York Individuals Indicted for Passing Counterfeit CurrencyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daumoniqe Jackson, age 22, and Christopher De Codio, age 24, both of Brooklyn, New York, were indicted on February 19, 2020, by a federal grand jury for passing counterfeit U.S. currency.
According to United States Attorney David J. Freed, the indictment alleges that Jackson and De Codio passed $2,700 of counterfeit United States currency in businesses in Mifflin and Juniata Counties on December 11, 2019.
This case was investigated by the United States Secret Service. Prosecution is assigned to Assistant U.S. Attorney Christian T. Haugsby.
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 passing counterfeit currency is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. 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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Two Men Sentenced to Prison for Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Two men were sentenced to prison for federal gun crimes, announced United States Attorney Mike Stuart.
Djuan Terrell Harris, 32, of Detroit, was sentenced to 41 months in prison. Harris was previously convicted of being a felon in possession of a firearm by a federal jury after a trial before United States District Judge Robert C. Chambers. On May 31, 2019, an officer with the Huntington Police Department located Harris walking towards his vehicle near the 1500 block of Madison Ave in Huntington. Upon investigation, the officer determined that Harris was carrying on his person a loaded Sig Sauer P229 .40 caliber handgun. Harris had been previously convicted of a felony drug offense out of Wayne County, Michigan. The Huntington Police Department, the Violent Crime and Drug Task Force West, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Ryan A. Keefe and Joseph F. Adams handled the prosecution.
Brandon Carter, 34, of Charleston, was sentenced to 30 months in prison for being a felon in possession of a firearm. Carter previously admitted that on January 12, 2019, at approximately 3:38 a.m., an officer with the Charleston Police Department initiated a traffic stop on a scooter operated by Brandon Carter because it was being operated on the sidewalk at Patrick Street near Fourth Avenue. The officer recognized Carter from a shooting incident that occurred on October 7, 2018, near Delaware Avenue. The officer knew that Carter is a prohibited person and Carter admitted to having three prior felonies that prohibit him from possessing firearms. Carter told the officer that he was currently out on bond relative to the incident from October 2018. Carter told the officer, prior to a pat-down, that he was in possession of a Kel-Tec .380 firearm. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Ryan A. Saunders handled the prosecution.
These cases are being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
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Two Gary Men Charged with Federal Murder Charges Stemming from Killing of Pizza Delivery ManRead the Press Release
HAMMOND- Terryante Flournoy, 21, and Ciontay Wright, 20, both of Gary, Indiana, have been indicted for attempted robbery affecting interstate commerce, conspiracy to commit robbery, and murder resulting from the use and carrying of a firearm during and in relation to that attempted robbery, announced U.S. Attorney Kirsch. Flournoy has also been indicted for possessing a firearm as a previously convicted felon.
According to the indictment, on November 24, 2019, in Gary, Indiana, Terryante Flournoy and Cinotay Wright shot and killed David J. Shelton, a pizza delivery man, while in the process of trying to rob him.
U.S. Attorney Thomas L. Kirsch II said, “The murder of David Shelton was a senseless act of violence. Our federal, state and local law enforcement partners will continue to aggressively investigate and prosecute these type of crimes.”
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the FBI/GRIT Task Force along with the Lake County Metro Homicide Unit (Lake County Sheriff and Gary Police Department) and has received substantial assistance from the Lake County, Indiana Prosecutor’s Office. The case is being handled by Assistant U.S. Attorneys David J. Nozick and Caitlin M. Padula.
Two Brothers, Owners of Kennedy Industrial Electronics, Sentenced on Conspiracy ChargesRead the Press Release
Abingdon, VIRGINIA – The two brothers and owners of Kennedy Industrial Electronics, who were convicted of a payroll tax scheme that dated back at least 15 years and for defrauding the United States out of more than $907,000 of disability benefits, in addition to $148,000 in employment taxes, were sentenced last week to 12 months in prison. United States Attorney Thomas T. Cullen announced the sentence today.
In July 2019, Harold and Hollie Kenney each pled guilty to one count of conspiracy to defraud the United States and one count of failing to pay over and collect employment taxes.
According to court documents, the Kennedys conspired with Kennedy Industrial Electronics employees, and their wives, including Danny Hill, Geneva Hill, Gerald Stevens, Teena Charlene Stevens, and Ricky Allen Matney. Danny Hill, Gerald Stevens, and Ricky Matney were each receiving disability benefits from the Social Security Administration [SSA]. To hide the fact that Hill, Stevens, and Matney were fully capable of working and were, in fact, working, the Kennedys wrote checks payable to the wives of Hill and Stevens and a middle name for Matney.
Court documents also revealed that between 2001 and 2015 the defendants conspired to defraud the United States through a scheme in which Harold and Hollie Kennedy, the owners of Kennedy Industrial Electronics, failed to report to the IRS and SSA over $500,000 in wages resulting in more than $900,000 in disability payments being made that should not have been paid.
The investigation of the case was conducted by the Internal Revenue Service - Criminal Investigations, the Social Security Administration Office of the Inspector General, and the Russell County Sheriff’s Office. Assistant United States Attorney Lena Busscher prosecuted the case for the United States.