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11 March 2020
Jacksonville Woman Pleads Guilty to Submitting False Claims for FEMA Benefits Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – Bernita Willette Carswell (36, Jacksonville) pleaded guilty to disaster assistance fraud involving FEMA benefits. She faces up to 30 years in federal prison and payment of restitution to the United States in the amount of $15,024.80. Carswell was arrested on January 15, 2020.
According to court documents, on September 13, 2017, Carswell made an application online for disaster assistance to FEMA. In the application, she claimed that her primary residence in Jacksonville suffered storm damage, that she was displaced from her primary residence, and that she was forced to move to a rental property in Jacksonville. In support of her application for benefits, she submitted a lease agreement for the rental property in Jacksonville.
In reliance on the statements made by Carswell in her application and the lease agreement, FEMA paid Carswell rental assistance totaling $15,024.80.
Investigation by the Department of Homeland Security-Office of Inspector General determined that Carswell’s statements to FEMA were false. Her residence in Jacksonville was not damaged, she lived there through and after Hurricane Irma, and the lease agreement she had submitted to FEMA was fraudulent.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security-Office of Inspector General with assistance from Homeland Security Investigations Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Jackson Man Sentenced to over 26 Years for Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Jackson, TN –Cedric Townsend, 38, has been sentenced to 320 months imprisonment for Conspiracy to Distribute 50 grams or more of Actual Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
This is the latest sentencing in a case involving multiple defendants, including Pedro Fuentes, Jr., Ruben Gomez, Anthony French, Amanda Day and Connie Stephens for federal charges of conspiracy to distribute methamphetamine.
According to information presented in court, on October 6, 2018, Townsend was stopped by Dyersburg Police officers for a traffic violation. Townsend’s driver’s license was suspended and he failed a field sobriety test. A search of his vehicle revealed two baggies of methamphetamine/ice, weighing 17.9 grams. On January 3, 2019, agents conducted a controlled drug purchase of methamphetamine/ice from Townsend utilizing a confidential source (CS), weighing 5.06 grams at 96% purity. On January 25, 2019, agents conducted a controlled drug purchase from a co-defendant, Connie Stephens by a CS for 13.5 grams of methamphetamine/ice at 99% purity. Townsend was present and distributed 42 grams to Stephens. Townsend was later arrested as he left Stephens’ residence and found to be in possession of 285 grams of methamphetamine at 96% purity and a .45 caliber Hi-Point pistol. Townsend gave a statement of admission to law enforcement officers admitting to distributing 8.16 kilograms of methamphetamine/ice during the conspiracy.
During the sentencing hearing, the government presented proof that Townsend attempted to escape custody from the agents after his arrest. He was apprehended a short time later in Fowlkes, South of Dyersburg, TN.
On March 10, 2020, U.S. District Court Chief Judge Thomas Anderson sentenced Townsend to 320 months in federal prison followed by 5 years supervised release. Co-Defendant Connie Stephens was previously sentenced on February 24, 2020 to 168 months in federal prison, followed by 5 years of supervised release: https://www.justice.gov/usao-wdtn/pr/ripleywoman-sentenced-14-years-federal-prison-conspiracy-distribute-over-50-grams
U.S. Attorney D. Michael Dunavant said, "Armed drug dealers pose a significant public safety risk to our communities, and must be punished and incapacitated in a meaningful way. Individuals who distribute harmful drugs into our rural communities can no longer hide. We are proud to work with our law enforcement partners to use significant federal laws and sentencing to remove this dangerous offender from the streets, and we will continue to do so to reduce the threat of addiction, injury, violence, and death across West Tennessee."
This case was investigated by the Federal Bureau of Investigation Safe Streets Task Force, Dyersburg Police Department, Tennessee Bureau of Investigation and the United States Postal Service.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
Houston, Texas Pastor Pleads Guilty to His Role in a Multimillion-Dollar Investment SchemeRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Kirbyjon H. Caldwell, senior pastor of Windsor Village United Methodist Church in Houston, Texas, entered a guilty plea to conspiracy to commit wire fraud in connection to his role in a multimillion-dollar investment scheme. His codefendant, Gregory A. Smith, a Shreveport investment advisor, pled guilty on July 23, 2019, to the same charge.
“These defendants used their positions as religious leaders and investment advisors to defraud Louisiana residents – many of whom are elderly and retired,” stated U.S. Attorney Joseph. “In doing so, the defendants abused the trust and respect of their victims for the sole purpose of stealing their money. This type of deceit can be devastating for victims, especially when life savings are lost. My office will continue to vigorously prosecute those who use confidence schemes to prey upon the elderly and people of faith.”
According to information presented in court, Caldwell and Smith conspired to use their influence and status to persuade multiple victims to “invest” approximately $3.5 million with them. The victims’ investments were purportedly in historical Chinese bonds, which are bonds issued by the former Republic of China prior to losing power to the Communist government in 1949. These bonds are not recognized by China’s current government and, accordingly, have no investment value.
Smith began approaching existing clients and acquaintances in the spring of 2013 about what he described as an opportunity to invest in historical Chinese bonds. His usual sales pitch to investors was that Caldwell was (1) putting the bond deal together on behalf of investors, (2) had the bonds in his possession or was obtaining them, and (3) was brokering a deal to sell the bonds. Smith also promised that by investing money with him and Caldwell, the victims would obtain a partial ownership of the bonds and would quickly receive exponential returns on their investments. The victims were not told of the true nature of the bonds nor were they informed that no previous investor had ever obtained the promised return on an investment. The victims were encouraged to cash out any other investments they might have if they could not otherwise afford to participate.
After Smith made the fraudulent pitch, the victims were instructed to wire funds to various bank accounts under Caldwell’s control. In 2013 and 2014, approximately $3.5 million was “invested.” The funds were divided between Caldwell, Smith, and others. Caldwell used the approximately $900,000 that he received to pay down personal loans, mortgages, and credit cards, and maintain his lifestyle. Smith received $1.08 million. He used this money to pay down loans, purchase two luxury sport utility vehicles, place a down payment on a vacation property, and maintain his lifestyle. After time passed and investors began to question why they had not received the promised returns, Caldwell and Smith offered excuses, defended the legitimacy of the deals, and assured victim-investors that they would receive the promised returns.
Under the terms of his plea agreement, Caldwell faces between five and seven years in prison, a fine of up to $250,000, and up to three years of supervised release. Caldwell, who has already made partial restitution to the victims, has agreed to pay the remaining balance, $1,951,478.00, before sentencing.
Chief U.S. District Judge S. Maurice Hicks Jr. presided at the hearing and set Caldwell’s sentencing for July 22, 2020. Smith’s sentencing is scheduled for May 4, 2020.
The FBI conducted the investigation. Assistant U.S. Attorneys Seth D. Reeg and C. Mignonne Griffing are prosecuting the case.
This case was included in the Justice Department’s largest-ever nationwide elder fraud sweep in 2019, which included hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. A list of Elder Fraud cases by the Department of Justice is provided on this interactive map.
The recently launched National Elder Fraud Hotline provides services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and will provide resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Holbrook Man Sentenced to Federal Prison for Heroin and Cocaine Base DistributionRead the Press Release
BOSTON – A Holbrook resident was sentenced yesterday for distribution of heroin and cocaine base.
Allah Mallory a/k/a “Parod,” 43, was sentenced by U.S. District Court Judge Rya W. Zobel to 18.5 months in prison, to be followed by three years of supervised release. Judge Zobel ordered that the sentence run concurrently with a state prison sentence of 16 to 18 years, imposed in September 2019 in Plymouth Superior Court, for gun and drug charges.
In November 2019, a federal jury found that on July 9, 2018, Mallory distributed heroin and cocaine base to a cooperating witness in Brockton.
The case was part of Operation Landshark, a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, each who have prior convictions for acts of violence, firearm offenses and/or drug trafficking. It is alleged that many of the Operation Landshark targets are in the top 30 criminal offenders responsible for violent acts and firearms in Brockton.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Boston Police Commissioner William G. Gross; and Brockton Police Chief Emanuel Gomes, made the announcement. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service.
Operation Landshark was 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. Attorney General Jeff Sessions 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.
Haywood County Man Sentenced to over 13 Years in Federal Prison for Conspiracy to Commit Multiple Armed Business RobberiesRead the Press Release
Jackson, TN – After a three-day jury trial in August 2019, Johnny Lee Nixon, Jr., 23, was found guilty of Conspiracy to Commit multiple business robberies, Hobbs Act business robbery, possession of a firearm during a robbery, and receiving firearms while under indictment. Nixon has now been sentenced to 160 months in federal prison. U.S. Attorney Dunavant announced the sentencing today.
According to information presented in court, during a period of 5 days in 2016, two masked men armed with pistols robbed three businesses in the Brownsville, Haywood County area: the F&D Quick Stop, the Discount Tobacco and More, and the Bells Express Truck Stop. Also during this time, there were two different shootings where 9mm shell casings and .22 LR shell casings were recovered by the Brownsville Police Department.
On April 25, 2016 after the Bells Express Truck Stop robbery, deputies with the Haywood County Sheriff's Department collected clothing on a nearby road that was worn by the armed masked men observed in the surveillance footage. Deputies forwarded those items of evidence to the Tennessee Bureau of Investigation for DNA analysis, which in 2018 linked Lacey Jeter and Johnny Lee Nixon, Jr. to the clothing.
On April 26, 2016, Officers with the Brownsville Police Department observed a vehicle that matched the description of the vehicle seen leaving the scene of the Bells Express Truck Stop robbery and initiated a traffic stop. After a brief chase, the vehicle crashed in rural Haywood County. The occupants of the vehicle ran into nearby woods leaving behind two pistols similar to the ones described in the recent robberies. Officers with the Brownsville Police Department collected the firearms from the scene and submitted them to the Tennessee Bureau of Investigation for comparison to the shell casings recovered from the recent shootings. TBI Agents were able to confirm that the shell casings recovered after the shootings were fired from one of the firearms recovered near the scene of the crash. Johnny Lee Nixon, Jr. was indicted by a federal grand jury in January of 2019.
During the three-day trial, evidence was presented showing Johnny Lee Nixon, Jr. and co-conspirators used the proceeds from the robberies to illegally purchase the firearms used in the shootings and ultimately at least one robbery, and also participated in the conspiracy to commit the robberies and were present during the robbery of the Bells Express Truck Stop and possessed a firearm during the robbery.
On February 27, 2020, U.S. District Court Senior Judge J. Daniel Breen sentenced Nixon to 160 months in federal prison followed by 5 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Violent crime affects and endangers all communities in West Tennessee, both urban and rural. Robberies of businesses with a firearm are especially dangerous and violent due to the high risk of death and serious bodily injury to innocent victims. Business robberies also have a substantially negative impact on the local economy and commerce, which victimizes the entire community. As a result of this sentence, Nixon will have plenty of time in federal prison to suffer the consequences of his criminal conduct, and the citizens of Haywood County will be safer for it."
Haywood County Sheriff Billy Garrett, Jr., said: "Special thanks to the hard working people of our U.S. Attorney’s Office for helping our office keep the law-abiding citizens of Haywood county safe. I appreciate the teamwork and look forward to working with you again."
"The City of Brownsville is grateful for the support of the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco and Firearms, the Haywood County Sherriff’s Office and the Brownsville Police Department in the prosecution and conviction of Johnny Nixon. Nixon was a danger to society with his lengthy criminal history of robberies, domestic assaults and weapons violations. Working together, Brownsville is a much safe place," said Brownsville Police Chief Barry Diebold.
This case was investigated by the Brownsville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Haywood County Sheriff’s Department and the Tennessee Bureau of Investigation (TBI).
Assistant U.S. Attorneys Hillary Parham and Matt Wilson prosecuted this case on behalf of the government.
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Hartford Man Sentenced to 71 Months in Federal Prison for Illegally Possessing Loaded GunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY PENA, 26, of Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 71 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded firearm.
According to court documents and statements made in court, on June 24, 2018, Hartford Police responded to the area of 862 Albany Avenue where they found Pena in the driver’s seat of a parked vehicle. A search of the vehicle revealed a loaded Glock 21 .45 caliber firearm with an extended magazine containing 20 rounds, and a backpack that contained a magazine with 10 rounds, a quantity of marijuana, and $1,420 in cash. The firearm had been reported stolen in North Carolina in 2012.
In May 2012, Pena was convicted in state court of robbery in the first degree and conspiracy to commit robbery in the first degree. In May 2014, he was convicted of failure to appear in the first degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Pena has been detained since June 24, 2018. On July 17, 2019, he pleaded guilty to one count of unlawful possession of a firearm by a felon.
This matter was investigated by the FBI’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
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 neighborhoods safer for everyone.
Guatemalan National Pleads Guilty and is Sentenced on Illegal Reentry ChargeRead the Press Release
BOSTON - A Guatemalan national, previously convicted of kidnapping and murder in the 1990’s in California, pleaded guilty today and was sentenced in federal court in Boston with illegal reentry.
Ingrid Corzo-Armas, a/k/a Ingrid Sanchez, 49, who formally resided in Lynn, pleaded guilty today to one count of illegal reentry. Corzo-Armas was arrested by Immigration and Customs Enforcement on Feb. 17, 2020, and has remained in the custody since that time. Following her plea today, U.S. District Court Judge F. Dennis Saylor, sentenced Corzo-Armas to time-served (one month) to be followed by three years of supervised release. Upon completion of her sentence, Corzo-Armas will be placed into removal proceedings and deported to Guatemala.
In 1993, Corzo-Armas was convicted in California of kidnapping and murder and sentenced to prison. While serving her sentence in a California prison she was encountered by immigration officials, placed into removal proceedings, and after a hearing in Immigration Court, was ordered removed. Corzo-Armas completed her sentence, and on June 15, 1999, she was deported to Guatemala. Sometime after her removal, Corzo-Armas illegally reentered the United States, and was living in Lynn under the alias, Ingrid Sanchez. On Feb. 17, 2020, immigration officials encountered Corzo-Armas in Lynn and, through the use of fingerprints, established her true identity. Corzo-Armas was later interviewed, confirmed her true identity, admitted to her prior removal, and that she had illegally reentered the United States.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge, Homeland Security Investigations in Boston; and Todd Lyons, Acting Field Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine, of Lelling’s Major Crimes Unit is prosecuting the case.
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Green Bay Man Convicted of Two Counts of Arson Following Jury TrialRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that March 10, 2020, a jury seated in the federal district court in Green Bay, found William A. Julius (age: 57) of Green Bay and Menominee, Wisconsin, guilty of two counts of arson.
The evidence presented at trial proved that Julius set fire to a porch at 332 South Madison Street in downtown Green Bay just before 1:00 a.m. on August 20, 2017. Residents of the apartments located in the upper portion of the building were accounted for and an investigation by the fire department began. While the fire marshal continued his investigation into the first fire, Julius returned and lit another blaze in front of the main entrance, causing significant fire and smoke damage to the businesses located on the first floor. Julius was arrested shortly thereafter hiding under a vehicle a few blocks away.
Julius faces a mandatory five year prison term and could be imprisoned for up to 20 years. He also faces a fine of up to $250,000. He will be sentenced before Senior U.S. District Judge William C. Griesbach on June 11, 2020.
This case was investigated by the Green Bay Fire Department, the Green Bay Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by United States Attorney Krueger and Assistant United States Attorney Daniel R. Humble.
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Grand jury indicts former Cincinnati City Council president on charges of honest services wire fraud, bribery, attempted extortionRead the Press Release
CINCINNATI – A federal grand jury in Cincinnati has returned an indictment charging the former Cincinnati City Council president pro tem with honest services wire fraud, bribery and attempted extortion.
Tamaya Dennard, 40, was arrested and charged by criminal complaint on Feb. 25.
Dennard was elected to Cincinnati City Council in November 2017 and resigned on March 2, 2020.
According to court documents, between August and December 2019, Dennard engaged in acts and attempted acts of bribery and extortion, attempting to exchange her votes for money.
Dennard allegedly requested between $10,000 and $15,000 from an individual to pay for her personal expenses.
At the direction of and in coordination with the FBI, the individual and Dennard exchanged a total of $15,000, in increments of $10,000 and $5,000, for upcoming votes on a matter scheduled to be heard by Council.
Dennard is charged by indictment with three counts of honest services wire fraud (up to 20 years in prison), two counts of bribery concerning programs receiving federal funds (up to 10 years in prison) and two counts of attempted extortion under color of right (up to 20 years in prison).
David M. DeVillers, United States Attorney for the Southern District of Ohio; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the indictment. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew Singer are representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Grand Jury Indicts Georgetown Man, Urbana Woman on Child Sex Crimes ChargesRead the Press Release
URBANA, Ill. – A federal grand jury has indicted Ian J. Dukes, 37, of Georgetown, Ill., and Julie P. Snyder, 43, of the 400 block of W. University Ave., Urbana, Ill., on charges of child sexual exploitation. Specifically, the indictment charges Dukes and Snyder with attempted enticement of a minor, under age 18, to engage in sexual activity in July 2019. The indictment charges Dukes with additional counts of attempted sexual exploitation of the same minor, enticement of a second minor, sex trafficking of children, and receiving child pornography of a second minor.
Dukes was arrested on Feb. 11, 2020, and charged by criminal complaint. He appeared in federal court in Urbana and was ordered detained in the custody of the U.S. Marshals Service.
Snyder was arrested on March 6, following the grand jury’s indictment, on March 4. Snyder appeared in federal court on March 9, and the indictment was unsealed. Snyder waived a detention hearing and was ordered detained in the custody of the U.S Marshals Service. An initial trial date of April 27, 2020, was scheduled.
If convicted, for enticement of a minor, the penalty is 10 years to life in prison; for attempted sexual exploitation of a child, the penalty is 15 to 30 years in prison; for sex trafficking of children, the penalty is 15 years to life in prison; and, for receiving child pornography, the penalty is five to 20 years in prison.
The government is represented by Assistant U.S. Attorney Elly M. Peirson in the prosecution. The charges are the result of investigation by the Federal Bureau of Investigation, Illinois State Police, and the Urbana Police Department, in coordination with the Illinois Internet Crimes Against Children Task Force.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
This case is prosecuted as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Georgia man pleads guilty to using restricted pesticide to bait and kill coyotesRead the Press Release
ATLANTA - Terry Foster has been sentenced to pay a $1,000 fine for one count of violating the Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”) by lacing deer carcasses with a restricted, highly poisonous pesticide in order to bait and kill coyotes.
“Foster’s conduct threatened Georgia’s wildlife and environment for his own personal benefit,” said U.S. Attorney Byung J. “BJay” Pak. “But for the speedy response by federal and state law enforcement, Foster’s actions could have had much graver consequences.”
“The defendant knowingly misused an acutely toxic pesticide to poison wildlife,” said acting Special Agent in Charge Charles Carfagno of EPA’s Criminal Investigation Division in Atlanta. “This case shows that EPA and its law enforcement partners are committed to enforcing pesticide laws to protect public health and the environment.”
“Georgia is fortunate to have a robust and unique set of natural resources that Georgians enjoy every day from the mountains to the coast. This case and outcome are a testament to the universal commitment by all federal, state, and local parties involved to protect our natural resources. DNR is proud to have strong, working relationships with these partners, which help to serve as a constant deterrent to those who wish to act outside the rule of law,” said Mark Williams, Commissioner of the Georgia Department of Natural Resources.
According to U.S. Attorney Pak, the charges and other information presented in court: In December 2018, a private citizen contacted the Georgia Department of Natural Resources (“GA-DNR”) about a possible wildlife poisoning on a property in Cherokee County. Upon arriving, GA-DNR found two deer carcasses, which had been cut open and laced with a blue, granular substance, and several dead (and dying) animals lying nearby, including an opossum and two red tailed hawks. GA-DNR then immediately requested the assistance of the United States Fish and Wildlife Service (“USFWS”) to collect and analyze the dead animals. GA-DNR subsequently learned that Foster hunted on the property where the dead animals were found, and obtained a state search warrant for his truck, from which they recovered several hunting knives, a bucket containing the blue poison, blood swaths, and deer hair. Foster was also interviewed by law enforcement, and admitted that he had recently been on the property where the deer carcasses were found, wanted nothing more than to kill coyotes, and knew the blue substance lining the deer carcasses was a poison used to bait the coyotes.
USFWS thereafter completed a toxicology analysis and DNA-matching of the animals and items recovered from Foster's truck. According to the DNA analysis, the deer hair found in Foster’s truck matched one of the deer found on the property, and the blood swabs as well as DNA from one of the knives recovered from Foster’s truck matched the other deer. The toxicology analysis confirmed that the blue substance found in the two deer carcasses, one of the red-tail hawks, and Foster’s truck was a poison, methomyl, a common fly bait that is sold under the trade name “Golden Malrin.”The EPA-approved labels for Golden Malrin Fly Killer state that it is “for use around the outside of food processing areas.” In particular, the labeling warns that: “It is illegal to use this product with the intention to kill raccoons, skunks, opossums, coyotes, wolves, dogs, cats, or any other non-target species.”
Foster admitted during his guilty plea that he had laced the deer carcasses with Golden Malrin for the purpose of killing coyotes. As a result, an opossum and two red-tailed hawks died after ingesting methomyl-laced deer.
Terry Foster, 54, of Blairsville, Georgia, was sentenced by U.S. Magistrate Judge Christopher C. Bly to pay a $1,000 fine. Foster pleaded guilty to the FIFRA violation on February 20, 2020, and was sentenced that same day.
The Georgia Department of Natural Resources, U.S. Fish and Wildlife Service Office of Law Enforcement, and U.S. Environmental Protection Agency investigated this case.
Assistant U.S. Attorney Alex R. Sistla 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.
Geneseo Man Pleads Guilty to String of Bank Robberies in Iowa and IllinoisRead the Press Release
DAVENPORT, IA—On March 10, 2020, Christopher Lee Schultz, age 41, of Geneseo, Illinois, pleaded guilty in the United States District Court for the Southern District of Iowa for five bank robberies in Iowa and Illinois, announced United States Attorney Marc Krickbaum.
Schultz’s guilty plea related to the January 18, 2019, robbery of the American Bank and Trust at 2340 41st Street, Moline, Illinois; the February 16, 2019, robbery of the DuTrac Community Credit Union at 3100 West Kimberly Road, Davenport, Iowa; the March 8, 2019, robbery of the Chase Bank at 151 19th Avenue, Moline, Illinois; the March 23, 2019, robbery of the IH Mississippi Valley Credit Union at 2839 AAA Court, Bettendorf, Iowa; and the April 18, 2019, robbery of the US Bank at 3120 Middle Road, Bettendorf, Iowa.
Schultz acknowledged wearing a mask and displaying what appeared to be a handgun during each of the robberies. Schultz further admitted taking over $26,000 during the course of the five robberies.
On March 5, 2020, Benjamin David Watkins pleaded guilty to aiding and abetting Schultz in the robbery of US Bank on April 18, 2019.
Both Schultz and Watkins are scheduled to be sentenced in Davenport on July 9, 2020.
This case was investigated by the Federal Bureau of Investigation, Davenport Police Department, Bettendorf Police Department, Moline Police Department, Rock Island Police Department, and Rock Island County Sheriff’s Office. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa and Central District of Illinois.
Gangster Disciple “Chief Enforcer” for the State of Tennessee Sentenced to 25 Years for RICO ConspiracyRead the Press Release
Memphis, TN - Demarcus Deon Crawford, 36, a/k/a/ "Trip," has been sentenced to 300 months in federal prison for conspiracy to participate in a racketeering enterprise. U.S. Attorney D. Michael Dunavant announced the sentence today.
This sentencing is the latest reckoning in a large RICO conspiracy case, "Operation .38 Special", which was originally indicted in May, 2016, charging a total of 16 members of the Gangster Disciples criminal enterprise with racketeering. https://www.justice.gov/usao-wdtn/pr/16-alleged-gangster-disciples-members-indicted-federal-racketeering-charges.
According to the superseding indictment, the Gangster Disciples is a highly-organized national gang active in more than 35 states. The scope of the Gangster Disciples’ crimes is wide-ranging and consistent throughout its national operation. The gang protects its power through threats, intimidation, and violence, including murder, attempted murder, assault, and obstruction of justice. The Gangster Disciples promotes its enterprise through member-only activities and provides support to members charged with or incarcerated for gang-related offenses.
The Gangster Disciples were organized into different positions, including board members, and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group. The State of Tennessee was divided into specific area codes that defined the separate divisions or "sets" of the Gangster Disciples. The Knoxville set was known by its area code "865," Chattanooga by its area code "423," Nashville by its area code "615," Columbia by its area code "931," Jackson by its area code "731," and Memphis by its area code "901." Crawford was the Gangster Disciples’ "Chief Enforcer" for the State of Tennessee, meaning he was responsible for Gangster Disciple criminal activity in all of those regions.
The RICO count of the superseding indictment that Crawford pled guilty to states that: members and associates of the Gangster Disciples are subject to a strict code of discipline and are routinely fined, beaten, or even murdered for failing to follow the gang’s rules; that as Chief Enforcer, Crawford was responsible for enforcing the gang’s rules and for the administration of punishment to members who violated gang rules and for ensuring that people who claimed to be members of the Gangster Disciples were in fact members in good standing; and that Chief Enforcers often maintained close physical and verbal communication with the Governor of the State and traveled with the Governor around his zone of responsibility. During the change of plea hearing on June 7, 2019, Crawford admitted that he ordered the shooting of rival gang members for retaliation and to maintain his position within the Gangster Disciples, and that he participated directly and indirectly in the activities of the gang, including acts of attempted murder and narcotics trafficking.
On March 9, 2020, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Crawford to 300 months in federal prison followed by 5 years of supervised release. There is no parole in the federal system.
United States Attorney D. Michael Dunavant said: "This case demonstrates our ability and resolve to aggressively prosecute and hold accountable those who engage in organized criminal enterprises and gang conspiracies in furtherance of racketeering. This office is proud to work with our federal, state and local law enforcement partners to disrupt the Gangster Disciples gang and punish their leaders and members for the violence and lawlessness that they perpetrate across West Tennessee. Crawford will now take a long ‘trip’ to the federal penitentiary for his violent gang leadership and activity."
This prosecution was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations, and to diminish the violence and other criminal activity associated with the drug trade. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, money laundering, and violent organizations.
This case was investigated by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Tennessee Bureau of Investigation (TBI), Jackson Police Department Gang Enforcement Team, Memphis Police Department, Shelby County Sheriff’s Office, 28th Judicial District West Tennessee Drug Task Force, 26th, 25th, and 30th Judicial District Attorney’s General Offices, Sheriff’s Offices for Tipton, DeSoto, Madison and Fayette Counties, Police Departments of Bartlett, Germantown and Columbia, TN.
Assistant U.S. Attorneys Beth C. Boswell and Annie Christoff of the Western District of Tennessee and Trial Attorney Shauna Hale of the Criminal Division Organized Crime and Gang Section prosecuted this case on behalf of the government.
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Fort Wayne Man Sentenced to 60 Years in PrisonRead the Press Release
FORT WAYNE – Shawn Bacon, 39, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady to 720 months in prison, followed by a term of supervised release of 10 years announced U.S. Attorney Kirsch.
According to the documents in this case, in August of 2019, Mr. Bacon was convicted after a four day jury trial of two counts of possessing with intent to distribute controlled substances to include more than 500 grams of methamphetamine and more than 400 grams of fentanyl and more than 500 grams of a mixture or substance containing a detectable amount of methamphetamine, being a convicted felon in possession of a firearm, maintaining a drug involved premises, possessing a destructive device and a short barreled rifle not registered to him in the National Firearms Registration and Transfer Record, possessing body armor after having been convicted of a crime of violence, and possessing in furtherance of and carrying during and in relation to the drug trafficking offenses, firearms to include destructive devices, more particularly explosive bombs and a short barreled rifle.
The charges in this case stemmed from the execution of a search warrant at Bacon’s Fort Wayne home in December 2017. The execution of that search warrant resulted in the seizure of 22 firearms from Bacon’s residence and his vehicle. Bacon had at least four prior felony convictions at the time of the search warrant. Some of the firearms recovered were stolen. Bacon was also found in possession of many high capacity magazines, body armor, and various rounds of ammunition in this residence. Bacon was also in possession of unregistered pipe bombs as well as a short barreled rifle. The search warrant also yielded large distribution quantities of methamphetamine, cocaine, heroin, fentanyl and marijuana. At the time of Bacon’s arrest, agents also photographed Bacon’s Aryan Brotherhood tattoos. The drug charges were based on illegal drugs found in the defendant’s home and car.
United States Attorney Kirsch said, “Today’s sentence of 60 years, sends a strong message that my Office and our law enforcement partners will not tolerate the type of criminal activity presented in this case. In Fort Wayne and throughout the District we have an excellent working relationship with federal, state and local agencies that are dedicated to arresting and prosecuting the worst of the worst.”
“The long sentences these violent criminals receive is reassuring to the communities they terrorized that law enforcement is on their side,” commented ATF Assistant Special Agent in Charge Brendan Iber of the Chicago Field Division. “ATF will continue to pursue these serial criminals in collaboration with our local partners and appreciate the diligence the U.S. Attorney’s Office dedicated to bringing this defendant to justice.”
This case is the result of the investigative efforts of the Bureau of Alcohol Tobacco Firearms and Explosives Fort Wayne Resident Office Agents, ATF Explosives Technology Branch, ATF Forensic Chemistry Laboratory, with the assistance of the Fort Wayne Police Department, Fort Wayne Police Department Vice and Narcotics Division, and the Indiana State Police. The case was prosecuted by Assistant U.S. Attorney Lesley J. Miller Lowery.
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Former Registered Nurse Receives 30 Months for Distribution of Opioids, Health Care Fraud, Aggravated Identity Theft, and Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK – Sarah Brown, age 42, of Akra, Greene County, New York, was sentenced today to 30 months in prison for unlawfully distributing opioids, for impersonating patients of a co-conspirator and defrauding insurance companies as part of the opioids distribution scheme, and for attempting to obstruct the investigation into her criminal activities.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of her September 4, 2019 guilty plea, Brown, a former registered nurse, admitted that between 2015 and 2017, she worked with a co-conspirator, Dr. Myra Mabry, to obtain prescriptions for oxycodone, morphine, and hydromorphone, for no legitimate medical purpose, by impersonating Mabry’s patients at pharmacies, knowing that health care benefit programs would pay the cost of the drugs.
Brown also admitted that she attempted to obstruct a federal investigation by testifying falsely before a federal grand jury that she was blackmailing Mabry into providing the prescriptions. As Brown admitted in her guilty plea, that was a lie, because Mabry was not the subject of an extortionate scheme, and was a willing member of the conspiracy to distribute opioids for no legitimate medical purpose. Brown admitted that Mabry agreed to pay Brown for the false testimony in the hope of minimizing Mabry’s criminal exposure and keeping her medical license.
United States District Judge Mae A. D’Agostino also sentenced Brown to 3 years of supervised release, to be served following her release from prison.
Mabry, age 50, of Catskill, New York, pled guilty to conspiring to distribute controlled substances, health care fraud, aggravated identity theft, and obstruction of justice. She was sentenced to 54 months in prison earlier this month.
This case was investigated by the DEA, with assistance from the New York Bureau of Narcotic Enforcement, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Former Newport News Airport Director Convicted of Multiple ChargesRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Maryland man late yesterday on twenty-three charges of intentional misapplication of funds, money laundering, false declaration, perjury, and obstruction of justice.
According to court records and evidence presented at trial, Kenneth R. Spirito, 47, was the Executive Director of the Newport News / Williamsburg International Airport from 2009-2017. In 2014, Spirito led and organized an effort for a start-up airline, People Express Airlines, Inc. (PEX) to obtain a $5 million loan from TowneBank that was guaranteed by the Peninsula Airport Commission (PAC), operators of the airport. Spirito intentionally misapplied various state and federally regulated funds to provide the cash collateral for the TowneBank loan.
When PEX suspended operations in September 2014, the PAC had to make payment on the loan default. Spirito subsequently provided false information to the Federal Aviation Administration regarding the source of the loan payments. In 2019, Spirito provided false testimony in a civil deposition regarding his role in the decision to do the loan guarantee and the funds he used as collateral.
Spirito faces maximum penalties ranging from ten to twenty years in prison across each count of conviction when sentenced on June 10, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Colonel Gary T. Settle, Superintendent of Virginia State Police, and Jamie Mazzone, Regional Special Agent in Charge of the Department of Transportation Office of Inspector General, made the announcement after U.S. District Judge Raymond A. Jackson accepted the verdict. Assistant U.S. Attorneys Lisa R. McKeel and Brian J. Samuels are prosecuting 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. 4:19-cr-43.
Former MTA Supervisor Pleads Guilty to Obstructing Investigation into Bid Rigging and FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Douglas Shoemaker, the Special Agent in Charge of the New York Regional Investigations Office of the United States Department of Transportation Office of Inspector General (“DOT-OIG”), and Carolyn Pokorny, Metropolitan Transportation Authority Inspector General for the State of New York (“MTA-OIG”), announced that PARESH PATEL, a former MTA manager, pled guilty today before U.S. Magistrate Judge Ona T. Wang to obstructing a federal investigation into bid rigging and fraud in connection with contracts awarded by the MTA for Superstorm Sandy-related subway repairs. PATEL, who set up a private company that participated in a bid for a project that he would oversee at the MTA, took numerous steps upon learning that his conduct was being investigated, including deleting an email account, asking others to destroy evidence, and encouraging others to lie to authorities to obstruct the investigation. PATEL previously surrendered to federal authorities on February 18, 2020.
U.S. Attorney Geoffrey S. Berman said: “In the wake of Superstorm Sandy, Paresh Patel set up a company so that he and his family could profit from the work that was being done to repair our subways. When Patel learned he was under investigation, he destroyed evidence and asked others to lie to federal and local investigators. Efforts to obstruct investigations into corruption at the MTA undermine the public’s faith in the nation’s largest public transportation system and threaten the ability of our Government to ensure that justice is done.”
DOT-OIG Special Agent in Charge Douglas Shoemaker said: “The devastation caused by Hurricane Sandy is only exacerbated by the unscrupulous actions of Mr. Patel, who was entrusted with aiding in the restoration of the New York region’s transit infrastructure. Working with our law enforcement and prosecutorial partners, we will continue to protect the taxpayers’ investment in our nation’s infrastructure and pursue those who participate in fraud schemes that undermine DOT-funded programs and projects, and the public trust.”
MTA Inspector General Carolyn Pokorny said: “It is simply unacceptable for an MTA employee to obstruct any investigation - let alone a criminal investigation. We are proud that our initial probe has resulted in derailing this scheme to defraud riders, taxpayers, and other stakeholders of our great transportation system, and thankful to our law enforcement partners who worked with us to leave no doubt that obstructing a federal investigation is a crime.”
According to the allegations made in the Information to which the defendant pled guilty, as well as the defendant’s admissions in court:
In order to manage necessary subway rehabilitation work following Superstorm Sandy in 2013, the MTA awarded construction management contracts for managers to oversee post-Sandy subway projects. To prevent self-dealing and the appearance of corruption, the MTA maintains rules relating to conflicts of interest. The rules provide that MTA employees are barred from participating in the selection, award, or administration of a contract if the employee, his or her family member, or an organization that employs the employee or one of the employee’s family members has a financial interest in any of the companies that propose or bid on, or are awarded, such a contract.
PATEL was a program manager at the MTA and was responsible for awarding contracts and exercising oversight of Superstorm Sandy-related subway repairs. In June 2014, PATEL and another MTA employee set up an engineering consulting firm named Satkirti Consulting Engineering LLC (“Satkirti”). Because MTA rules prohibited them from having an interest in such a company, PATEL and the other employee registered Satkirti in the names of their children, and then transferred the ownership to a friend of PATEL who played no substantive role in the management of Satkirti. In February 2015, Satkirti was awarded a contract as a subcontractor on the Joralemon Tube subway rehabilitation project, which project PATEL would oversee in his role at the MTA. Although the technical employees of Satkirti who sought and carried out the subcontract were PATEL’s friend, who had no background or qualifications in engineering, and a second individual who PATEL recruited from a pizzeria owned by PATEL, PATEL directed the operations of Satkirti and its employees while concealing his involvement with the company. Among other things, PATEL created a company email account for Satkirti, and instructed Satkirti’s employees about what to write in emails. On many occasions, PATEL instructed Satkirti’s employees not to mention PATEL’s name and reminded them that PATEL was not supposed to be involved in the operation of Satkirti.
In the spring of 2016, MTA-OIG launched an investigation, later joined by the DOT-OIG and the U.S. Attorney’s Office, into the contract that was awarded to Satkirti. MTA-OIG served subpoenas and conducted interviews with individuals involved in Satkirti, many of whom made false statements about their and PATEL’s involvement in the company. After MTA-OIG began serving subpoenas, PATEL told one of Satkirti’s employees to delete from his personal email account all emails with PATEL. On November 16, 2016, after federal investigators began serving grand jury subpoenas, PATEL deleted the Satkirti company email account, which contained records of Satkirti’s business and evidence that would have connected PATEL to Satkirti. Over the course of the MTA-OIG and federal investigation, at the request of PATEL, several individuals questioned by investigators also concealed and lied about PATEL’s involvement in Satkirti.
* * *
PARESH PATEL, 59, of Paramus, New Jersey, pled guilty to one count of obstruction of justice, which carries a maximum sentence of 20 years in prison.
PATEL will be sentenced by U.S. District Judge Kimba M. Wood on a date to be determined.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the special agents from the DOT-OIG and investigators at the MTA-OIG.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Nicolas Roos and Ryan B. Finkel are in charge of the prosecution.
Former Inmate of Chesapeake City Jail Pleads Guilty to Bribing DeputyRead the Press Release
NORFOLK, Va. – A former inmate of the Chesapeake City Jail pleaded guilty today to conspiring to bribe a Chesapeake Sheriff’s Deputy to smuggle contraband – including cocaine and heroin – into the Chesapeake City Jail.
According to court documents, Jermarrieo Stigger, 34, paid Jenis Leroy Plummer to use his official position as Chesapeake Sheriff’s Deputy to smuggle heroin, cocaine, cell phones, e-cigarettes and other contraband into the Chesapeake City Jail. From July 2017 through December 2018, Stigger knowingly and intentionally conspired with Plummer to engage in this scheme.
On numerous occasions throughout the conspiracy, Stigger arranged for Plummer to meet his girlfriend at various locations in Hampton Roads to pick up the contraband. At these meetings, Stigger’s girlfriend gave Plummer the illicit contraband in blue latex gloves. Plummer then smuggled the contraband into the jail and delivered the items to the inmate. In exchange for using his official position, Stigger’s girlfriend paid Plummer with cash, via CashApp, and via PayPal.
Stigger pleaded guilty to one count of conspiracy to commit extortion under color of official right, and he faces a maximum penalty of 20 years in prison when sentenced on June 18, 2020. Deputy Plummer previously pleaded guilty to the same charge. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorneys Joseph E. DePadilla and Melissa E. O’Boyle are prosecuting 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. 2:19-cr-183.
Former FEMA Employee Pleads Guilty to FelonyRead the Press Release
SAN JUAN, P.R. – Jovanda R. Paterson, a.k.a. “Jo/Jojo,” a former FEMA Emergency Management Specialist pleaded guilty pursuant to a Plea Agreement before United States District Court Judge Francisco A. Besosa to a felony violation of Title 18, United States Code, Section 208(a), announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Department of Homeland Security (DHS), Office of Inspector General (OIG), conducted the investigation with support from the Federal Bureau of Investigation.
Following the passage of Hurricane María in September 2017, Patterson was assigned to assist with FEMA restoration efforts in Puerto Rico. While employed by FEMA, Patterson negotiated prospective employment with Cobra Acquisitions LLC (Cobra) and its affiliates, which were engaged in restoration efforts on the Puerto Rico electric power grid. While negotiating prospective employment with Cobra, Patterson participated as a FEMA employee in a May 8, 2018 Past Performance Evaluation for Cobra Logistics LLC as a part of a vendor bid process. Patterson later accepted employment with a Cobra affiliate in June 2018.
Pursuant to the terms of the Plea Agreement, Patterson admitted that while she was negotiating employment with COBRA and its affiliates from March to July 2018, Patterson participated as a FEMA employee in a May 8, 2018 Past Performance Evaluation for Cobra Logistics LLC as a part of a vendor bid process. The defendant willfully engaged in conduct and participated personally and substantially as a Government employee through recommendation and the rendering of advice in a proceeding in which she knew COBRA and its affiliates Cobra Energy LLC and Cobra Logistics Holding LLC had a financial interest, and that at that time, she was negotiating and had an arrangement concerning prospective employment with COBRA and its affiliates.
Patterson was charged in a 15-count indictment along with defendants Ahsha Nateef Tribble - Federal Emergency Management Agency (FEMA), Region II, Deputy Regional Administrator, assigned to work in Puerto Rico as part of FEMA’s response to Hurricane María; and Donald Keith Ellison - President of Cobra Acquisitions, LLC until June 2019. The indictment alleges that Tribble and Ellison engaged in a bribery conspiracy, honest services fraud scheme, and major disaster fraud scheme in relation to the electric power grid restoration efforts in Puerto Rico following Hurricane María. Trial as to Tribble and Ellison is scheduled for January 2021.
The case is being prosecuted by Assistant United States Attorney Myriam Y. Fernández-González and Assistant United States Attorney Seth A. Erbe. Patterson may be sentenced to a term of imprisonment not to exceed five (5) years, a fine not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00), and not more than three (3) years of supervised release. The sentencing hearing is scheduled for June 11, 2020.
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Former Air Force Academy Cadet Sentenced to Federal Prison for Raping Fellow CadetRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Alvaro Pablo Velarde, age 20, of Lima, Peru, was sentenced to five years in prison for two counts of aggravated sexual abuse and one count of abusive sexual contact for raping a fellow cadet at the U.S. Air Force Academy. U.S. District Court Judge Christine M. Arguello announced the sentence yesterday afternoon to a full courtroom, which included the victim. The defendant was in custody before the hearing and was remanded at the conclusion.
According to court documents and facts presented by prosecutors at trial, Velarde raped a female cadet in her dorm room at the Air Force Academy in Colorado Springs on October 23, 2018. During the attack, he ignored multiple pleas from the victim to stop. Afterward, the victim experienced severe pain and sought medical attention. A sexual assault examination revealed physical injuries sustained during the rape, and a doctor at the Air Force Academy later diagnosed her with a concussion.
Velarde was disenrolled from the Air Force Academy before the trial. The victim still attends the Air Force Academy.
“Our service members deserve every protection our country can provide,” said U.S. Attorney Jason Dunn. “In this instance, one of our own was violently raped by a cadet who was a guest from a foreign country. This violent assault has done tremendous damage – both to the victim, as well as to the Air Force Academy itself. I am proud that our prosecutors ensured this criminal was brought to justice. I am also proud of the victim, who bravely stepped forward and made sure her story was told. We owe her a debt of gratitude for what she has done for justice, as well as for the service she will provide in defense of our nation.”
This case was investigated by the Air Force Office of Special Investigations. This matter was handled by Assistant U.S. Attorneys Peter McNeilly and Emily Treaster.
Case No. 18-cr-00525
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Florida Doctor Pleads Guilty to False Statement Relating to Prescribing OpioidsRead the Press Release
Tampa, Florida – Richard De La Cruz (55, Jacksonville) has pleaded guilty to making false statements relating to health care matters in connection with writing opioid prescriptions. De La Cruz faces a maximum penalty of five years in federal prison.
According to the plea agreement, De La Cruz was a Florida-licensed physician who worked for MD2U, a now-shuttered, Kentucky-based company that provided a network of in-home primary care for patients. MD2U commonly used nurse practitioners, instead of physicians, to conduct in-person examinations and evaluations of patients in the Tampa Bay area, including those who were prescribed opioids.
In mid-2014, the Florida Board of Medicine (“FBOM”) determined that De La Cruz and MD2U’s practice of prescribing controlled substances without an in-person evaluation by a physician violated Florida medical standards and regulations. Contrary to the FBOM ruling, De La Cruz continued to write opiate prescriptions to MD2U patients without personally meeting with and evaluating the patients. De La Cruz concealed this in claims later submitted to Medicare for payment of the opiate prescriptions.
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Middle District of Florida Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to focus on opioid-related health care fraud, using data to identify and prosecute individuals who contribute to the prescription opioid epidemic. It is being prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Greg Pizzo.
Federal Jury Convicts San Diego Man for 2017 Armed Robbery SpreeRead the Press Release
NEWS RELEASE SUMMARY – March 11, 2020
SAN DIEGO – Today, a federal jury found Juan Marquis Holiday, a San Diego resident, guilty of robbing and attempting to rob ten local businesses by displaying a firearm during the robberies and, on five occasions, discharging a firearm. The jury returned their verdict after hearing the testimony of 37 witnesses, including the individuals who were in those businesses at the time of the robberies and attempted robberies.
“When someone uses a firearm and repeatedly terrorizes community members, bringing that person to justice is a top priority,” said U.S. Attorney Robert Brewer. “We are gratified to have secured a conviction that not only holds the defendant accountable for his violent crimes, but brings a measure of greater security to our communities. I’d like to thank Assistant U.S. Attorneys Shital Thakkar and Matthew Brehm and our law enforcement partners for their outstanding work on this case.”
During trial before District Judge Anthony J. Battaglia, dozens of witnesses explained to the jury various aspects of the defendant’s crime spree. Those witnesses included: victims from the local businesses, first responders, evidence technicians, DNA and ballistics experts from the San Diego Police Department and the San Diego Sherriff’s Department, and other federal agents. More than twelve victims described being threatened with a firearm during the robberies, which occurred in January and April of 2017. Some of those victims also described how the defendant fired shots past their heads, and physically assaulted them, including with the use of his pistol.
Holiday’s co-defendant, Don Wayne Jones III, pled guilty in 2018 and was sentenced to 30 years and 1 day in custody.
“The FBI has federal jurisdiction under the Hobbs Act to investigate violent criminal acts affecting interstate commerce,” said Omer Meisel, Acting Special Agent-in-Charge for the San Diego Division of the FBI. “In this case, our Agents worked closely with our local partners at the San Diego Police Department and San Diego Sheriff’s Department to bring justice for the victims of this violent crime and bring safety to our community.”
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, labor trafficking and alien smuggling. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Case Number 17cr1370-AJB
Juan Marquis Holiday Age: 27 San Diego, CA
SUMMARY OF CHARGES
Interference with Commerce by Threats or Violence – Title 18, U.S.C., Section 1951(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Attempted Interference with Commerce by Threats or Violence – Title 18, U.S.C., Section 1951(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Brandishing a Firearm During and in Relation to a Crime of Violence –
Title 18, U.S.C., Section 924(c)
Maximum penalty: life imprisonment; a mandatory minimum seven years in prison; and $250,000 fine
Discharging a Firearm During and in Relation to a Crime of Violence –
Title 18, U.S.C., Section 924(c)
Maximum penalty: life imprisonment; a mandatory minimum ten years in prison; and $250,000 fine
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego Sherriff’s Department
La Mesa Police Department
VICTIM BUSINESSES
Robbery No.
Date
Victim
Address
1
1/5/2017
Arco Gas Station
3724 Del Sol Blvd, San Diego, CA
2
1/11/2017
Parry Liquor
4707 Federal Blvd., San Diego, CA
3
1/11/2017
Par Liquor
5055 Federal Blvd., San Diego, CA
4
1/11/2017
Greene Cat Liquor
5102 Imperial Avenue, San Diego, CA
5
4/6/2017
Market at the Ranch
10299 Scripps Trail, San Diego, CA
6
4/19/2017
7-Eleven
9365 Jamacha Blvd., Spring Valley, CA
7
4/20/2017
Eastridge Liquor
7705 University Ave. La Mesa, CA
8
4/20/2017
Apollo Market
2327 Reo Drive, San Diego, CA
9
4/20/2017
G&M Market
8903 Jamacha Rd., Spring Valley, CA
10
4/22/2017
Victoria’s Mexican Grill
1912 Coronado Ave., San Diego, CA
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal Court Permanently Shuts Down Ohio Tax Return PreparerRead the Press Release
A federal court permanently enjoined Mary E. Shade, d/b/a MS Tax, of Piqua, Ohio, from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. Mary E. Shade consented to the relief.
The complaint against Shade, which was filed in the U.S. District Court for the Southern District of Ohio, alleges that Shade routinely understates her customers’ tax liabilities by fabricating itemized deductions, creating false Schedules C with inflated or fraudulent business losses, and reporting false credits in order to offset their income to generate tax refunds. For example, the government alleges that Shade prepared a return on which she falsely reported that a customer made gifts to charity in the amount of $14,964. The complaint alleges that, over the course of the years 2012 through 2019, Shade filed over 5,500 tax returns, and that by repeatedly understating her customers’ tax liabilities, Shade has caused the United States to lose substantial tax revenue.
“Fraudulent tax return preparers abuse our nation’s tax laws and take advantage of those customers who pay them to file a correct tax return,” said Richard Zuckerman, Principal Deputy Assistant Attorney General for the Tax Division. “We are committed to working with our IRS partners to root out these perpetrators.”
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
FCI Gilmer inmate admits to drug possessionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stephen Robinson, incarcerated at Federal Correction Institution Gilmer, has admitted to trying to get a controlled substance, U.S. Attorney Bill Powell announced.
Robinson, age 49, pled guilty today to a one-count information, charging him with “Attempt to Obtain a Prohibited Object (Narcotic).” Robinson admitted to trying to get suboxone while incarcerated in October 2018 in Gilmer County.
Robinson was sentenced to 12 months incarceration, to be served after his current sentence.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Federal Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.Ex-CEO of Irvine Financial Services Firm Sentenced to over 10 Years in Prison for Stealing $3.5 Million from Mostly Elderly InvestorsRead the Press Release
LOS ANGELES – The former CEO of an Irvine-based financial services and insurance company has been sentenced to 121 months in federal prison for defrauding elderly victims who thought their money was being invested in a certificate of deposit at a major bank – but, instead, was actually used to fund his lavish lifestyle.
Mehmet Fatih Biyikoglu, a.k.a. “John B.,” 53, of Palm Desert, was sentenced late Tuesday afternoon by United States District Judge R. Gary Klausner, who also ordered him to pay $3,561,300 in restitution.
Biyikoglu, who pleaded guilty in July 2019 to one count of wire fraud, was the co-founder and chief executive officer of Five Star Financial Services of America. From 2014 through 2016, he solicited more than $4 million from investors, many of whom were elderly, retired or financially unsophisticated. Biyikoglu falsely told investors that their money would be placed in a Chase Bank certificate of deposit (CD), where it would earn 9 to 13 percent interest with little risk to the investors’ principle.
In reality, the Chase Bank CD did not exist and Biyikoglu stole the investors’ money. Biyikoglu used the pilfered funds to finance his own lavish lifestyle, including the purchase of a Rolls Royce and other luxury automobiles. By comparison, Five Star investors lost nearly everything, including one 70-year-old victim who lost nearly all of his $1.6 million investment.
To cover up his scheme, Biyikoglu created fraudulent account statements – which included the Chase Bank logo – to deceive investors into believing their money was held in a segregated account at Chase Bank and was earning interest as promised.
During the course of the scheme, 11 investors transferred just over $4 million into Five Star. These victims suffered losses of approximately $3.45 million. Another victim lost just over $100,000 to Biyikoglu.
“Biyikoglu’s conduct is reprehensible,” prosecutors wrote in their sentencing memorandum. “He targeted elderly and retired investors who would be seeking a safe vehicle for their retirement savings, knowing full well that those victims depended on those assets to support themselves during their remaining years. He has left many of his victims with nothing, forcing them to live on fixed incomes.”
In January 2019, eight months after his arrest in this case and while he was free on bond, Biyikoglu removed his location-monitoring ankle bracelet and attempted to flee to Mexico. He was arrested at the U.S.-Mexico border, carrying $1,300 in cash, 8,700 pesos and a significant amount of luggage.
Two co-conspirators charged in this case have pleaded guilty and are serving prison sentences imposed last year by U.S. District Judge Andrew J. Guilford. Anna Marie Holt, 60, of Fountain Valley, Five Star’s former president and chief operating officer, is serving a three-year federal prison sentence for conspiracy to commit wire fraud and subscribing to a false tax return.
Ida Shaghoian, 39, of Palm Desert, a sales agent with Five Star and Biyikoglu’s ex-wife, is serving a four-year prison sentence for wire fraud and subscribing to a false tax return. When she pleaded guilty, Shaghoian admitted participating in the Five Star scam, as well as running another fraud scheme that diverted investors’ retirement savings into a risky real estate venture called Island Sea LLC. Shaghoian also admitted that she defrauded an 86-year-old man out of $100,000 after meeting him at a restaurant and later leading him to believe she had become his girlfriend.
This matter was investigated by the FBI and IRS Criminal Investigation. The California Department of Insurance provided substantial assistance.
This case was prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana Branch Office.
Easton-Area Attorney Pleads Guilty to Defrauding Estate Out of Hundreds of Thousands of DollarsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Angelo Perrucci, Jr., of Bangor, PA, has pleaded guilty to five counts of wire fraud before United States District Court Judge Joseph F. Leeson, Jr. The charges arise out of Perrucci’s scheme to defraud the estate of a client and its heirs by taking funds from the estate for his own personal use.
The defendant is an attorney licensed to practice law in New Jersey and Pennsylvania. In 2015, he was contacted by his former neighbor to provide end-of-life legal services for her ill father. Following the father’s death in early 2016, Perrucci filed a motion in court seeking to be appointed as the administrator of the estate. The court granted the motion, and the defendant opened a bank account in the name of the estate. Within two weeks of opening the estate account, Perrucci withdrew more than $36,000 for his own personal use. He continued this fraud for over three years. Between March 2016 and May 2019, Perrucci fraudulently issued more than 80 checks to himself, stealing more than $300,000 and depleting the estate account.
“Attorneys take an oath to act in accordance with the law – not to use it as a way to manipulate innocent and vulnerable people for personal profit and gain,” said U.S. Attorney McSwain. “Perrucci was entrusted with a sensitive and important task – the care of an estate – and he used that trust to commit fraud and steal from the beneficiaries. This is truly despicable behavior that deserves the full condemnation of the legal community and society as a whole. My Office will continue to target and aggressively prosecute predators like this defendant.”
“The Postal Inspection Service has long investigated those among us who use the mail to commit fraud,” said John Walker, the Assistant Inspector in Charge of the Philadelphia Division of the Postal Inspection Service. “This defendant, a lawyer, used his position of trust and authority in an area of the law many of us don’t fully understand and are not in a position to effectively police to steal money from his clients. Thanks to the hard work of the Inspectors in my office and the attorneys of the United States Attorney’s Office, Mr. Perrucci is being held accountable for his deceitful practices.”
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion.
Dubuque Felon Sentenced to More Than Eight Years in Federal PrisonRead the Press Release
A man who illegally possessed a gun while a felon was sentenced today to more than eight years in federal prison.
Devon Norman, age 33, from Dubuque, Iowa, received the prison term after a guilty plea to illegally possessing a firearm as a felon. Statements at sentencing showed that Norman pointed a gun at an individual in a car and threatened to blow that individual’s head off. After making that threat, Norman physically forced his then-girlfriend back into a Dubuque residence while still possessing the gun.
Norman was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Norman was sentenced to 100 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1026-LTS.
Follow us on Twitter @USAO_NDIA.
Dominican National Sentenced for False Identity CrimeRead the Press Release
Boston – A Dominican national residing in Boston was sentenced to 15 months in prison in federal court in Boston today after being convicted of false representation of a Social Security number.
Altagracia Baez Guerrero, 27, pleaded guilty last month to false representation of a Social Security number before U.S. District Court Judge Richard G. Stearns who sentenced Baez Guerrero to 15 months in federal prison to be followed by one year of supervised release.
On March 14, 2016, Baez Guerrero falsely represented that a Social Security number was hers in an application for a learner’s permit at the Massachusetts Registry of Motor Vehicles. The victim whose identity was stolen told law enforcement that she had never visited, lived in, or worked in Massachusetts. The victim learned in 2018 that W-2s in her identity were issued for income earned at two different Massachusetts businesses the previous year. Based on information provided by one of the businesses, the victim learned that the imposter had provided a home address in Dorchester, which was the same address that the defendant used when applying for the learner’s permit.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit prosecuted the case.Defendant Sentenced to 87 Months for Assault on a Federal OfficerRead the Press Release
TUCSON, Ariz. – On March 6, 2020, United States District Court Judge James A. Soto sentenced Wilmer Martin Flores, 43, of Honduras, to 87 months in prison. A jury had previously found Flores guilty of Assault on a Federal Officer.
On June 20, 2016, Flores assaulted a United States Bureau of Prisons Corrections Officer during the performance of her official duties. In the process, the victim suffered serious bodily injury. At the time of the assault, Flores was serving a 235-month sentence for Sex Trafficking and Kidnapping.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Nathaniel J. Walters and Jesse Figueroa of the District of Arizona.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cártel Jalisco Nueva GeneraciónRead the Press Release
The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs.
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said DEA Acting Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CNJG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cártel Jalisco Nueva GeneraciónRead the Press Release
WASHINGTON – The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted in more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs. In the DEA's Chicago Division, which includes Illinois, Wisconsin and Indiana, approximately 50 arrests at the federal and state level have been made against CJNG members and associates pursuant to Project Python enforcement actions.
“With today’s announcement, the Attorney General has made clear the Department’s focus on dismantling transnational criminal organizations,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We will continue to investigate and hold accountable members of drug cartels who seek to traffic narcotics in our communities.”
“DEA classifies the CJNC as one of the five most dangerous criminal organizations in the world,” said Robert J. Bell, DEA Chicago Division Special Agent-in-Charge. “CJNG has used extreme violence, extortion and bribes to steadily expand trafficking networks. CJNG is one of the two most prolific transnational criminal organizations responsible for trafficking huge quantities of illegal drugs to the Chicago Division. Project Python is a coherent effort to focus national efforts on the plague CJNG spreads. DEA will continue aggressively working with its federal, state and local partners to make Illinois, Indiana and Wisconsin inhospitable places for the CJNG.”
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Department of Justice's Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said Acting DEA Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CJNG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cartel Jalisco Nueva GeneracionRead the Press Release
CHARLOTTE, N.C. – The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs.
In 2020, within Western North Carolina, six defendants have been prosecuted to date, in connection with the initiative:
- Jose Velasquez, 35, a Mexican national residing in Charlotte, N.C., has been charged with drug trafficking conspiracy; international money laundering; possession with intent to distribute heroin; possession with intent to distribute methamphetamine; and possession with intent to distribute cocaine.
- Johnny Michael Boone, Jr., 33, of Bessemer City, N.C., has been charged with possession with intent to distribute methamphetamine.
- Jose Rigoberto Rodriquez-Rangel, 21, of Durham, N.C., has pleaded guilty to drug trafficking conspiracy; money laundering conspiracy; and possession with intent to distribute heroin. He is currently awaiting sentencing.
- Jose Dolorez Martinez-Martines, 32, a Mexican national residing in Durham, N.C., has pleaded guilty to drug trafficking conspiracy, money laundering conspiracy; and possession with intent to distribute heroin. He is currently awaiting sentencing.
- Oscar Bello-Lopez, 33, a Mexican national residing in Charlotte, has been sentenced to 188 months in prison and five years of supervised release, for drug trafficking conspiracy; money laundering conspiracy; possession with intent to distribute heroin; possession of a firearm by a felon; illegal reentry by a felon.
- Otequise Lenard Miller, 34, of Concord, N.C., has been sentenced to 240 months in prison and five years of supervised release for drug trafficking conspiracy resulting in death; money laundering conspiracy; distribution and possession with intent to distribute methamphetamine.
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said Acting Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
“This ruthless Mexican cartel has evolved into a powerful drug syndicate that floods urban and rural communities in the Western District and throughout our nation with enormous quantities of powerful narcotics. My office and our law enforcement partners remain committed to bringing members of this drug trafficking organization to justice, and disrupting CJNG’s drug trafficking networks in Western North Carolina,” said U.S. Attorney Andrew Murray.
“This DEA-led multilateral and interagency operation resulted in a well-planned and coordinated assault against CJNG, which is one of the most prolific producers of methamphetamine in the world. CJNG is responsible for an enormous quantity of dangerous drugs destined for the U.S. and much of the violence in Mexico today. This strategic strike against this Mexico-based cartel is just the beginning of an all-out assault against this ruthless organization,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CNJG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
In Western North Carolina, U.S. Attorney Murray thanked the DEA in Charlotte, ICE’s Homeland Security Investigations, the Gastonia Police Department, the Gaston County Police Department, and the Charlotte-Mecklenburg Police Department for their investigation of the cases, which are being prosecuted by Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte.
The cases in Western North Carolina are the result of the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Cedar Grove Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
CHARLESTON, W.Va. – A Cedar Grove man pled guilty to possession of child pornography, announced United States Attorney Mike Stuart. Benjamin Franklin Thomas, 32, pled guilty to one count of possessing child pornography in January 2019.
“Make no mistake, we’re coming after those that sexually exploit children,” said United States Attorney Mike Stuart. “We’ll prosecute them to the fullest extent of the law and seek maximum prison sentences.”
Thomas admitted that that he used his smart phone to search for images of child pornography on the Internet, download the images, and save them to his Google Photos while residing in Cedar Grove in Kanawha County. Images possessed by Thomas included prepubescent minors and images depicting sadistic or masochistic conduct and sexual exploitation of very young children.
Thomas faces up to 20 years in prison when sentenced on June 18, 2020.
The South Charleston Police Department, the Cedar Grove Police Department, the United States Secret Service, and the West Virginia State Police Internet Crimes Against Children Task Force conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Car prowler who preyed on visitors to National Parks sentenced to two years in federal prison to follow state prison termRead the Press Release
Tacoma, Washington – A repeat offender who victimized more than 40 hikers and campers in National Parks across western Washington was sentenced today in U.S. District Court in Tacoma to two years in federal prison to follow a 25 month state prison term. MICHAEL WAYNE PICKERING, 41, of Aberdeen, Washington, prowled at least four dozen cars at more than seven different trailheads and parking lots stretching from Mount Rainier National Park to Third Beach on the Pacific coast, to trailheads in the interior of the Olympic Peninsula’s national park and forest. At the sentencing hearing U.S. District Judge Benjamin H. Settle called the crimes “planned and methodical,” and ordered PICKERING to serve three years of supervised release following prison.
“The victims in this case didn’t just suffer a financial loss, they were emotionally damaged as well,” said U.S. Attorney Brian T. Moran. “Some returned from what was supposed to be a relaxing time in nature, to find themselves stranded with a damaged vehicle, their electronics, clothes and money stolen, marooned in the national forest, with no cell phone service. For some it has forever changed their interest in outdoor activities.”
According to records filed in the case, on March 28, 2019, PICKERING and his girlfriend smashed windows and stole thousands of dollars of equipment from vehicles parked at the Graves Creek Trailhead and Fletcher Canyon Trailhead in Olympic National Park. This was the beginning of a month-long theft spree. PICKERING and his girlfriend used credit and debit cards stolen from the vehicles to make purchases at various stores – the overall financial damage was more than $50,000. PICKERING was only stopped when he was caught shortly after walking out of a store where he used victims’ bank cards, with a window punch (a tool used to break car windows), and three credit cards in a victim’s name in his pocket.
PICKERING did not just take credit and debit cards. He stole expensive electronics, car and house keys, and even diaries, clean clothes, make-up, and toiletries. When law enforcement searched his residence, they found PICKERING had been stockpiling much of the gear he stole or selling it online. He used the stolen debit and credit cards to buy himself luxuries such a flat screen TVs, gaming systems, a drone, and clothes.
Victims wrote to the Court about how the car prowls violated their sense of safety and changed their attitude toward camping. Some of the comments include:
It’s really hard to feel so unsafe in the outdoors, which is where I usually find peace and solace. . .
The crime happened on the last day of a hiking/camping/backpacking trip with friends. I took what otherwise was a great vacation and made it very sour.
We were exhausted and freezing by the time we returned to the trailhead. When we found the truck windows busted out and my luggage stolen it was devastating…We had to drive for nearly an hour with the cold wind and rain coming in through the windows…I have not returned to Washington since this event.
PICKERING has a 15-year history of property crimes in and around Olympic National Park, such as burglary, identity theft, and trespassing.
The case was investigated by rangers from the National Park Service in collaboration with local law enforcement, including Forks Police Department, Mason County Sheriff’s Office, Grays Harbor Sheriff’s Office, and the Washington State Patrol.
The case was prosecuted by Assistant United States Attorney William Dreher.
California Man Sentenced for Possessing Methamphetamine with Intent to DistributeRead the Press Release
TULSA, Okla. –A man who was discovered transporting methamphetamine into Oklahoma in his vehicle’s engine compartment was sentenced Tuesday in federal court, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Juan Luis Atayde, 26, of Stockton, California, to 84 months in federal prison for possession of methamphetamine with intent to distribute. Following his release from prison, he will spend four years on supervised release. Atayde pleaded guilty in December 2019.
Atayde admitted that on March 30, 2018, he drove from California to Tulsa with at least 50 grams of methamphetamine concealed in his pickup’s engine area, which he later planned to retrieve and distribute to an individual in Tulsa. Atayde was scheduled to appear in court on June 4, 2018, but instead fled from prosecution. He was later arrested in October 2019 in California on a bench warrant issued by Judge Eagan. At Atayde’s sentencing, the prosecutor noted that the total amount of methamphetamine in the pickup was approximately seven pounds.
“More than a year ago, we brought federal drug trafficking charges against Juan Atayde. Before his trial, he disappeared. But the Drug Enforcement Administration and U.S. Attorney’s Office did not give up,” said U.S. Attorney Trent Shores. “We relentlessly pursued him, found him, and held him accountable in a court of law. Now, he is headed to federal prison.”
The Drug Enforcement Administration and Oklahoma Highway Patrol conducted the investigation. Assistant U.S. Attorneys Joel-lyn A. McCormick and Thomas E. Duncombe prosecuted the case.
Burwell, Nebraska, Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Lyle Rowse, 37, of Burwell, Nebraska, was sentenced today to 55 months in prison by United States District Judge Robert F. Rossiter, Jr. for possession with intent to distribute five grams or more of methamphetamine (actual). There is no parole in the federal system. In addition to his prison term, Rowse will serve four years of supervised release following his release from prison.
On November 4, 2018, Rowse went to the Valley County Jail and dropped off body wash for an inmate. Inside the body wash container was 1.3 grams of methamphetamine. Law enforcement in Burwell went to arrest Rowse for this and located 26 grams of actual methamphetamine in his pocket.
This case was investigated by the Nebraska State Patrol, Valley County Sheriff’s Office, and Burwell Police Department.
Buffalo Man Pleads Guilty to Breaking into A Railroad CarRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Ray Chrostowski, 26, of Buffalo, pleaded guilty before U.S. District Judge John L. Sinatra, Jr., to breaking into and larceny from interstate carrier facilities. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between May and June of 2018, the defendant entered on railroad cars containing interstate shipments of freight in transit on nine separate occasions with co-defendants Paul Krieger and Nicholas Birdwell. Working together, they broke into railcars and removed the property therefrom. On one occasion they broke into a railcar carrying automobiles and removed the tires and rims off of two vehicles. As a result of this conduct, the total loss relating to these vehicles was over $4,718.16. A large quantity of Jefferson bourbon valued at $3,118.80 was stolen.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert and the CSX Police, under the direction of Chief Sean Douris.
Sentencing is scheduled for July 16, 2020, before Judge Sinatra.
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Bothell man charged with money laundering using bitcoinRead the Press Release
Seattle – A Bothell, Washington, man is charged in an eight-count complaint for operating an illegal money exchange business involving bitcoin, announced U.S. Attorney Brian T. Moran. KENNETH WARREN RHULE, 26, made his initial appearance on the criminal complaint in U.S. District Court in Seattle yesterday. RUHLE is charged with conducting an unlicensed money transmitting business, five counts of laundering of monetary instruments, and one count of conspiracy to produce and distribute marijuana.
According to the criminal complaint, RHULE came to the attention of law enforcement in April 2018 as someone operating an unlicensed bitcoin exchange business under the name “Gimacut93.” At various locations–primarily Starbucks coffee shops–in Western Washington, RHULE met repeatedly with undercover agents posing as criminals who needed to launder funds. Through their conversations the undercover agents made it seem they were laundering money related to human trafficking activities. RHULE agreed to exchange bitcoin for cash apparently knowing the cash was the proceeds of criminal activity. In fact, RHULE offered the undercover agents advice on virtual currency and how to hide the source of the funds. RHULE asked the agents no questions as required under the “know your customer” rule.
Even as he was engaged in the operation of the unlicensed financial exchange business, RHULE was operating a marijuana products business that has no license with the State of Washington. The facility, based in Monroe, Washington, manufactures hash oil and other marijuana products using the names HerbinArtisans, Heady.Watr, and KlearKrew. Electronic messages reviewed in the case indicate RHULE was exchanging various marijuana products for cryptocurrency. RHULE claimed that he was manufacturing in the Seattle area but selling some of his product in Florida.
Operating an unlicensed money transmitting business is punishable by up to five years in prison. Laundering monetary instruments is punishable by up to 20 years in prison. Conspiracy to manufacture and distribute the amount of marijuana involved in this case is punishable by a mandatory five years in prison and up to 40 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Marie Dalton.
rhule_complaint.pdfAtlanta man sentenced in multi-state health care fraud conspiracyRead the Press Release
ATLANTA – Matthew Harrell has been sentenced for his role in organizing and managing a health care fraud scheme that stole millions in Medicaid funds in Georgia, Louisiana, and Florida.
“Harrell stole over $2 million dollars from the Medicaid program,” said U.S. Attorney Byung J. “BJay” Pak. “He stole those funds from several states and continued his fraud schemes even after he was released on bond. Our office will continue to prosecute those who believe they can steal from programs designed to help citizens in need.”
“The FBI makes it a priority to work with our federal and state partners to stop people from abusing government funded programs like Medicaid,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Abuse of these programs drives up their cost, hurting every single taxpayer in this country, but most importantly the low-income and elderly citizens who are entitled to the benefits they provide.”
“Harrell’s abhorrent actions are detrimental to the Medicaid program and the vulnerable beneficiaries it serves,” said Derrick Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working closely with State and Federal law enforcement to protect these vital government healthcare programs.”
“This sentence is the result of the dedicated efforts by state and federal investigators and prosecutors from Georgia, Florida, and Louisiana who collaborated to protect the integrity of our government programs and bring down the ringleader of a multi-million dollar fraudulent scheme to steal from the taxpayers,” said Georgia Attorney General Chris Carr. “We’re proud to have worked together to obtain this outcome.”
Florida Attorney General Ashley Moody said, “Exploiting children’s personal information to steal public resources is not only reprehensible, it is illegal. This criminal even directed his employees to conceal his scheme by creating fake documents to support his fraudulent billing—of millions of dollars—to Medicaid. This man will now serve an extended sentence in prison.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Harrell and co-conspirators owned or worked with companies that purportedly provided mental health counseling and treatment to children and adults. These companies included Revive Athletics, Inc., R.A. Florida, Inc., Jode Counseling Treatment and Training Services, LLC, 118 Management and Consulting, Inc. and A Brighter Day, LLC. These companies billed over $3.5 million in Medicaid claims, and received approximately $2.5 million based on fraudulent billing.
According to the indictment, Harrell and co-conspirators fraudulently used the Medicaid provider numbers of mental health service providers, including a psychologist and licensed clinical social workers, located in Georgia and Florida. Harrell’s companies and related entities then used these identities to submit fraudulent Medicaid claims seeking payment for mental health services that were never provided. Harrell and his co-conspirators obtained Medicaid members numbers by stealing them from children’s summer and football camp registrations, from children placed in foster care, and from stolen government a document containing the numbers of 13,000 Louisiana Temporary Assistance for Needy Families (“TANF”) recipients.
Harrell attempted to conceal the fraud scheme by directing employees and contractors to create fraudulent documentation and forge provider signatures to support the fraudulent billing. Harrell initially started the fraudulent billing scheme in Georgia and replicated the scheme in Florida and then Louisiana before his arrest. While on pretrial release in this case, Harrell opened a new company in Louisiana and continued to fraudulently bill Louisiana Medicaid until his bond was revoked and he was detained pending trial.
Harrell, 44, of Atlanta, Georgia was sentenced by U.S. District Court Judge Steve C. Jones to 11 years in federal prison, and three years of supervised release and ordered to pay $2,543,629.98, in restitution. On December 19, 2019, Harrell pleaded guilty to one count of conspiracy to commit healthcare fraud and one count of aggravated identity theft.
Co-defendant Nikki Richardson, 44, of Fairburn, Georgia, was sentenced on January 29, 2020, to three years, and eleven months, three years of supervised release and ordered to pay $1,719,189.00 in restitution. Co-defendant Tomeka Howard, 44, of Decatur, Georgia pleaded guilty to healthcare fraud and aggravated identity charges and was sentenced to three years’ probation, with 18 months of home confinement, and ordered to pay $732,189.00 in restitution.
The case was investigated by the Georgia State Attorney General’s Medicaid Fraud Control Unit, the U.S. Department of Health & Human Services, Office of the Inspector General, the Federal Bureau of Investigation and the Medicaid Fraud Control Units for Florida and Louisiana.
Assistant U.S. Attorney Jeffrey Brown, Deputy Chief of the Complex Frauds Section, prosecuted the case. Georgia Assistant Attorney Generals Elizabeth Grofic and John Van Why also assisted with the prosecution.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Allentown Man Sentenced to 20 Years in Prison for Distribution, Receipt, and Possession of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Ryan Antrim, 29, of Allentown, Pennsylvania was sentenced to 20 years’ imprisonment and a lifetime of supervised release by United States District Court Judge Edward G. Smith, for the distribution, receipt, and possession of child pornography.
Between July and November 2017, the defendant utilized Kik Messenger (Kik), a free proprietary instant messaging software application primarily for mobile devices, as a way to join a Kik group focused on the sexual abuse of children. As a member of this group, Antrim distributed various images and videos, and also received sexually explicit images of young children under the age of twelve years old. On February 15, 2019, Antrim pled guilty to all charges.
“Antrim took part in a repugnant online community that glorified the sexual exploitation of children,” said U.S. Attorney McSwain. “Distributing sexually explicit videos and photos of young children is reprehensible behavior that demands swift justice. My Office will continue to aggressively prosecute these types of crimes in order to deter this repulsive behavior and protect children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
All Five Defendants Convicted in Federal Cream Fraud SchemeRead the Press Release
Chattanooga, Tenn. – All five defendants have been convicted in federal court for their roles in a scheme defrauding both private insurance companies and government insurance programs of over $30 million dollars. The scheme involved sham prescriptions for compounded creams and medications, oftentimes issued without the supposed patient even knowing about them, and were frequently signed by a health care provider who never even met the patient.
Jerry Wayne Wilkerson, 40, Michael Chatfield, 31, Kasey Nicholson, 34, Billy Hindmon, 39, and Jayson Montgomery, 40, were convicted in the United States District Court for the Eastern District of Tennessee at Chattanooga. The Honorable Harry S. Mattice, Jr. presided over the trial and scheduled sentencing for all five individuals for June 8, 2020.
The charges of healthcare fraud, wire fraud, mail fraud, illegal kickbacks, and money laundering in the 178-count indictment centered on a scheme in which the defendants marketed topical creams and other medications through prescription drug coverage plans that paid for the creams and medications. The creams were compounded by a pharmacy, meaning they were supposed to have been uniquely formulated specifically for the needs of an individual patient, thus justifying the exorbitant cost- sometimes more than $15,000 per tube. However, the proof at trial showed there was nothing unique about these creams, and in fact the prescription forms were usually pre-printed documents filled out in mass by the marketers. A health care provider’s signature was oftentimes stamped on the document by employees of the defendants. The defendants all profited from the fraud, including the pocketing of millions of dollars of kickbacks from prescriptions billed to Tricare, which is the government-funded health insurance program for active duty and retired military servicemen and women.
The four-year investigation revealed that the defendants used a network of in-person marketing by convincing friends and family members to sign up for revolving shipments of exorbitantly priced topical creams and medications, some prescribed without seeing a physician or others which were not medically necessary. The majority of the time, these medications were neither needed nor wanted by the named patient but were ordered strictly for monetary gain. On some occasions, orders were placed without the knowledge or approval of the patient, and their insurance would then be billed for these items. The proof at trial showed that Wilkerson collected at least $13 million in commissions from the scheme.
Insurance companies and Tricare paid a total of roughly $35 million for the compounded medications in this case.
“Fraud such as this affects everyone. It increases what we all pay for healthcare and prescription drugs. Scam artists put their own financial interests ahead of the safety of others and ignore instituted laws, which protect the taxpayer and our funded healthcare system,” said U.S. Attorney J. Douglas Overbey. “Worse, much of the fraud in this case was directed at Tricare, the government program which insures our active duty and retired military personnel. The Hamilton County School System, a self-insured system funded by the taxpayers of Hamilton County, was also defrauded of over $950,000. When people steal from the taxpayers, they steal from all of us.”
“A key aspect of the FDA’s mission to protect the public health is creating a regulatory framework that helps ensure that compounded drugs are dispensed only under a valid prescription and to patients who have a legitimate medical need for them,” said H. Peter Kuehl, Acting Special Agent in Charge, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate and bring to justice those who put profits above the health and safety of Americans.”
Assistant United States Attorneys Perry H. Piper and Frank P. Clark represented the United States at trial and were assisted by paralegal Kris Eslinger. The case was investigated by Special Agent Brian Kriplean, Food and Drug Administration, Office of Criminal Investigations, and Special Agents Erik Srock and Marian Schmidt, Department of Defense Office of Inspector General, Defense Criminal Investigative Services.
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Albany Man Pleads Guilty to Armed Bank Robbery and Firearms Charges for Two Capital Region Armed Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Christopher J. Cohn, a/k/a “Wolf,” age 26, of Albany, pled guilty today to a four-count superseding indictment charging armed bank robbery, firearms, and conspiracy crimes in connection with two February 2019 armed bank robberies.
The announcement was made by United States Attorney Grant C. Jaquith; Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Keith M. Corlett, Superintendent of the New York State Police (NYSP); Chief Eric Hawkins of the Albany Police Department (APD); and Chief David Keevern of the Town of North Greenbush Police Department.
As part of his guilty plea, Cohn admitted to participating in two armed robberies. On February 6, 2019, Cohn and another man pulled up to an Albany Trustco Bank branch, where Cohn declared he was about to “go do this,” meaning that he planned to rob the bank. Cohn and his accomplice then entered the bank wearing ski masks. In the bank, Cohn’s accomplice displayed a gun, and both men threatened to kill the bank’s employees, who surrendered approximately $150,000 to the pair.
On the morning of February 26, 2019, Cohn and the same accomplice entered an M&T Bank branch in North Greenbush, each wearing a ski mask and brandishing a gun. In the course of the robbery, Cohn fired multiple shots, including one that grazed a bank employee. Law enforcement tracked Cohn, his accomplice, and their getaway driver to an Albany motel using a GPS device placed in the stolen money by a member of the bank’s staff. Cohn was apprehended by officers with more than $10,000 in cash and wearing red sneakers matching those captured by the bank’s surveillance cameras during the robbery. Cohn’s accomplice was arrested in the motel’s lobby, where officers found him with several bags containing approximately $3,800 in cash along with ski masks matching those worn by the robbers.
Cohn has been in custody since February 26, 2019.
Cohn faces at least 20 years and up to life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for July 8, 2020 before Senior United States District Judge Lawrence E. Kahn.
This case was investigated by the FBI, the NYSP, the Town of North Greenbush Police Department, APD, and the Albany County Sheriff’s Office, with the assistance of the Rensselaer County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers.
10 March 2020
West Hollywood Man Admits to Modern Art Fraud Scheme Using Fake Works for Sale, Collateral for Loans, and Write-Offs on Tax ReturnsRead the Press Release
LOS ANGELES – A West Hollywood man has agreed to plead guilty to federal criminal charges that he sold bogus art he claimed was created by artists such as Jean-Michel Basquiat, Keith Haring, Roy Lichtenstein and Andy Warhol. He also admitted using fake paintings as collateral for loans on which he later defaulted, and using fraudulent pieces for fraudulent write-offs on his income tax returns.
Philip Righter, 43, was charged today in United States District Court with wire fraud, aggravated identity theft and tax fraud. In a plea agreement also filed today, Righter agreed to plead guilty to the three felony offenses.
In total, Righter’s scheme attempted to bilk victims out of well over $6 million, and he caused losses of at least $758,265. Additionally, his fraudulent tax returns cost the United States more than $100,000, according to the plea agreement.
From 2016 until June 2018, Righter executed a scheme to defraud people, businesses and the United States by using counterfeit and fraudulent art that he asserted was genuine. Righter supported these false claims with fraudulent provenance – or chronology-of-origin – documents that he had created.
Before August 2016, Righter generally conducted these fraudulent transactions in his own name. But after the FBI and the Los Angeles Police Department interviewed him about bogus Keith Haring art he attempted to sell to a Miami art gallery, Righter began using the names of other people to execute his scheme, court documents state.
In order to make the fake artwork appear authentic, Righter ordered and used embossing stamps that appeared similar to the authentic stamps used by the estates of Basquiat and Haring authentic art by these artists. Righter admitted he used these stamps on provenance documents that he created and were later used to deceive his victims into believing the artwork was legitimate.
For example, Righter fraudulently used without authorization the name and signature of Gerard Basquiat – father and previous administrator of the artist’s estate – on fraudulent provenance documents, court documents state. Righter also falsely used the identifications of the estates of Basquiat and Haring, falsely used the names of these two artists, and falsely used the name of a legitimate gallery where Basquiat art was previously sold.
In furtherance of the scheme, Righter obtained and attempted to obtain numerous loans by using the fraudulent art and accompanying fraudulent provenance documents. For example, in October 2016, using another person’s name, Righter contacted a victim about a loan in which a purported original drawing by Basquiat would be used as collateral. Righter created a fraudulent certificate of authentication letter that purportedly came from Basquiat’s estate. The victim wired a $24,000 loan, on which Righter later defaulted. After Righter’s default, the victim attempted to auction the piece, but the auction house determined the piece was fraudulent, and the victim lost $24,000.
Righter also sold or attempted to sell numerous pieces of fake modern art. In August 2017, using another person’s name, Righter listed a purported 1983 piece of art by Basquiat with the word “Samo” written on it with an art sale website and he provided fake provenance documents. The website sold the piece for $50,000. In 2018, after the piece was determined to be fraudulent, the website had to refund the purchase price to the buyer.
Righter also admitted that he knowingly and willfully included a false W-2 and a false donation of fraudulent art to a charity on his 2015 federal income tax return, which resulted in him fraudulently receiving a refund of $54,858. Righter then signed and filed a false 2015 amended tax return, which claimed a false casualty and theft loss of $2,575,000 related to artwork he claimed had been stolen. In truth, the artwork was fraudulent and had no value. This bogus amended tax return resulted in false carryback loss refunds for 2012, 2013 and 2014 totaling $52,485, according to court documents.
Once he enters guilty pleas to the three charges, Righter will face a statutory maximum sentence of 25 years in federal prison.
Righter also currently faces charges in the Southern District of Florida for an approximately $1 million attempted art fraud on the Miami gallery. A hearing in that case is scheduled for March 11.
The FBI’s Art Crime Team, the Los Angeles Police Department, and IRS Criminal Investigation investigated this matter.
This case is being prosecuted by Assistant United States Attorneys Mark A. Williams and Erik M. Silber of the Environmental and Community Safety Crimes Section.
West Des Moines Man Sentenced to Eighteen Years Prison for Transportation of Child PornographyRead the Press Release
DES MOINES, IA – On March 9, 2020, United States District Court Judge Stephanie M. Rose sentenced Paul Morales Castillo, age 25, of West Des Moines, to 216 months in prison for Transportation of Child Pornography, announced United States Attorney Marc Krickbaum. Morales Castillo was ordered to serve five years of supervised release to follow his prison term, pay $3,000 in restitution, and comply with sex offender registry requirements upon release.
The investigation began in August 2018 when West Des Moines Police received an investigative lead from the National Center for Missing and Exploited Children that a video of child pornography had been uploaded on Morales Castillo’s Facebook account. Following further investigation, West Des Moines Police executed a search warrant at Morales Castillo’s apartment in August 2018. Police seized Morales Castillo’s iPhone which contained hundreds of videos and images of child pornography. The investigation showed that Morales Castillo sent and received videos of child pornography to other persons via the WhatsApp messaging platform during July and August 2018.
This case was investigated by the West Des Moines Police Department, Iowa Department of Criminal Investigation’s Internet Crimes Against Children Task Force, and the FBI Child Exploitation Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Warsaw, Indiana Man SentencedRead the Press Release
SOUTH BEND – Jonathan Roberts, age 33, of Warsaw, Indiana was sentenced before U.S. District Court Judge Damon R. Leichty for possession of child pornography, announced U.S. Attorney Thomas L. Kirsch II.
Roberts was sentenced to 63 months in prison, 5 years of supervised release and ordered to pay $20,000 in restitution.
According to documents in this case, in August of 2017, Roberts possessed a cellular phone that contained videos and images of minors engaged in sexually explicit conduct. Roberts later admitted that the images on the cellular phone he possessed were in fact child pornography.
The case was investigated by the U.S. Department of Homeland Security Investigations and the Federal Bureau of Investigations. The case was prosecuted by Assistant United States Attorney John Maciejczyk.
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Virginia man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shawn Kendall Murray, of Gainesville, Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Murray, age 37, pled guilty to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Murray admitted to having cocaine hydrochloride in November 2018 in Jefferson County.
Murray faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Upstate New York Businessman Pleads Guilty to Wire Fraud, Pays More Than $700,000 to Resolve False Claims Act LiabilityRead the Press Release
ALBANY, NEW YORK – Daren Arakelian, age 52, of Rensselaer, New York, pled guilty today to wire fraud for a scheme to import Chinese goods into the United States and then causing his company, Great 4 Image, Inc., to deceptively market and sell those goods to federal agencies as U.S.-made. Arakelian has also agreed to pay $702,000, plus interest, to the United States to resolve his civil liability for his submission of false claims for payment to the federal government.
The announcement was made by United States Attorney Grant C. Jaquith; Leigh-Alistair Barzey, Special Agent in Charge, Defense Criminal Investigative Service, Northeast Field Office; Joseph Dattoria, Special Agent in Charge of the General Service Administration, Office of the Inspector General; and Julio Santana, Acting Special Agent in Charge of the Washington Regional Office of the Department of Homeland Security, Office of the Inspector General.
“Daren Arakelian bilked the United States by telling officials that his products were made in America when they were actually made in China,” said United States Attorney Grant C. Jaquith. “We will continue to use the False Claims Act and the wire fraud statute to hold unscrupulous and greedy contractors accountable, and to make sure our nation gets the American made goods it pays for.”
Arakelian owned and operated Great 4 Image, a company that contracted with various federal agencies to produce backpacks, duffle bags, cinch bags, hydration packs, t-shirts and individual suspension trainers. Each of his company’s contracts required Great 4 Image to comply with the Buy American Act and/or the Trade Agreements Act, laws that Congress enacted for the purposes of promoting the United States’ trade interests.
The Buy American Act restricts the federal government’s purchase of goods that are not domestic end products. The Trade Agreements Act establishes additional restrictions on purchases of products made outside the United States, and generally prohibits government contracting officials from purchasing products that are not entirely from, or substantially transformed in, the United States or a designated country. The Trade Agreements Act effectively waives the requirements of the Buy American Act for designated countries. China is not a designated country.
As part of the civil settlement and guilty plea, Arakelian admitted that he devised and implemented a scheme to defraud the federal government by causing Great 4 Image to import goods, including thousands of backpacks and suspension trainers, that were made in China into the United States and then passing them off as compliant with the Buy American Act and the Trade Agreements Act. In carrying out this scheme, Arakelian made various verbal and written statements to federal officials falsely claiming to have domestically manufactured the goods that he knowingly imported from China.
As a result of his conviction, Arakelian faces up to 20 years in prison, and a term of post-release supervision of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Sentencing is scheduled for July 14, 2020 before Chief U.S. District Judge Glenn T. Suddaby.
“The plea and settlement agreements announced today are the direct result of a joint effort by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command, the U.S. General Services Administration, the U.S. Department of Homeland Security and the U.S. Attorney’s Office for the Northern District of New York,” said Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The DCIS will continue to work with its law enforcement partners to protect the U.S. Defense Department’s procurement process and ensure that U.S. Government contractors provide products and services in compliance with all contractual requirements.”
“The General Services Administration’s Office of Inspector General (GSA-OIG) is committed to protecting the integrity of the GSA’s procurement process and ensuring that government contractors comply with all applicable laws and regulations, including the Buy American Act and the Trade Agreements Act,” said Joseph Dattoria, Special Agent in Charge of GSA-OIG. “Today’s resolution is a testament to that commitment and should serve as a wake-up call to other contractors who may consider violating the Buy American Act and the Trade Agreements Act clauses of their contracts. We appreciate the collaborative efforts of the Department of Justice and our other law enforcement partners.”
“The Department of Homeland Security Office of Inspector General (DHS-OIG) will continue to ensure that companies doing business with DHS comply with the Buy American Act and/or the Trade Agreements Act,” said Julio Santana, Acting Special Agent in Charge of the Washington Field Office of DHS-OIG.
The investigation and resolution were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, GSA-OIG, DCIS, DHS-OIG, and the U.S. Army Criminal Investigative Command. The U.S. Department of the Treasury’s Office of Inspector General also provided investigative support. The civil case was handled by Assistant United States Attorney Adam J. Katz. The criminal case is being prosecuted by Assistant United States Attorney Joshua R. Rosenthal.
U.S. Attorney, Law Enforcement Stand with Crimestoppers, Announce New Top 15 most Wanted Fugitives in the Macon RegionRead the Press Release
MACON, Ga. – Federal, state and local law enforcement partners stood with Macon Regional Crimestoppers leadership this morning to announce a new list of the Top 15 Most Wanted fugitives, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. In February 2019, the U.S. Attorney’s Office made a public commitment with Macon Regional Crimestoppers to release a quarterly list throughout 2019 of the Most Wanted violent offenders. Macon Regional Crimestoppers, a community-run organization dedicated to increasing the safety of citizens, has provided rewards up to $1,000 for tips leading to the arrest of the Most Wanted fugitives. 41 of the 45 Top 15 Most Wanted fugitives in 2019 have been arrested. The new list of fugitives are wanted for violent crimes in Baldwin, Bibb, Crawford, Houston, Jones, Monroe and Peach counties, including aggravated assault, armed robbery and possession of a firearm by a convicted felon. All individuals charged with a crime are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of competent jurisdiction.
“Removing dangerous criminals from the streets is a major priority of law enforcement, and we are proud to stand with Macon Regional Crimestoppers to ask citizens to be on the look-out for these wanted fugitives and to report their whereabouts to authorities,” said Charlie Peeler, the U.S. Attorney. “Creating safer communities is a joint effort, and we are fortunate to have the dedicated partnership of law enforcement and citizens.”
“Crimestoppers is excited about our continued partnership with the U.S. Attorney’s Office and all of our Law Enforcement Partners,” said Warren Selby, Jr., Chairman of Macon Regional Crimestoppers. “Gun crimes continue to plague our community. We are committed to keeping our community safe and need the help of our citizens. Please ‘Make the Call.’”
For a complete list of the Top 15 Most Wanted, and more information about Crimestoppers, visit www.crimestop.us. Macon Regional Crimestoppers is a local non-profit serving Bibb, Baldwin, Houston, Jones, Twiggs, Crawford, Monroe, and Peach counties. The organization partners with law enforcement agencies and community groups to provide anonymous rewards for tips that lead to criminal arrests. Citizens can safely and anonymously report tips at 1-877-68CRIME.
The U.S. Attorney’s Office partnership with Macon Regional Crimestoppers is a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The partnership is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Two Oklahoma City Men Plead Guilty to Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – Yesterday, ROLANDO CIFUENTES-LOPEZ, 36, and ERI LEONARDO CIFUENTES-LOPEZ, 40, both of Oklahoma City, entered guilty pleas to charges of child sex trafficking, announced U.S. Attorney Timothy J. Downing.
According to separate indictments returned, each defendant obtained, solicited, and patronized two minor victims after having had a reasonable opportunity to observe them and knowing and in reckless disregard of the fact that each minor would be caused to engage in a commercial sex act. The indictment against Rolando Cifuentes-Lopez alleged he engaged in this conduct from November 2016 to January 18, 2019. The indictment against Eri Cifuentes-Lopez alleges he engaged in this conduct from January 2018 to January 18, 2019. Eri Cifuentes-Lopez is also charged with illegally re-entering the United States; he was removed from the country on November 2, 2005, and was found in the United States on November 20, 2019, without the consent of the Attorney General or the Secretary of Homeland Security.
According to court documents, FBI and Oklahoma City Police Department investigators determined that Rolando Cifuentes-Lopez owned the trailer where the two minor victims lived and threatened to evict their family if they did not comply with requests for sex. He allegedly had sex on multiple occasions with each of the minors, who were as young as 14, in exchange for cash or reduced rent. Eri Cifuentes-Lopez also allegedly had sex with each of the minors for cash.
Both men were arrested by Homeland Security Investigations after traffic stops on November 20, 2019, and have been in federal custody since that time.
At sentencing, which will be in approximately 90 days, each defendant faces a mandatory punishment of at least ten years and up to life in prison. If sentenced to less than life, they would be required to comply with terms of supervised release for at least five years and up to life and be required to register as sex offenders. In addition, Eri Cifuentes-Lopez also faces up to twenty years in prison for re-entering the United States illegally. Each defendant could also be fined up to $250,000 on each count and be ordered to pay restitution to trafficking victims.
Two other defendants in this investigation have entered guilty pleas to child sex trafficking. On August 28, 2019, Wilson Leonel Gramajo-Maldonado, 29, of Oklahoma City, pleaded guilty to a superseding information that charged him with obtaining the two minor victims for commercial sex acts between June 2018 and January 18, 2019. On September 5, 2019, Natalie Dawn Halbert pleaded guilty to two counts of child sex trafficking, one for each of the minors. She admitted before U.S. District Judge Charles Goodwin that she maintained the minors between November 2018 and January 18, 2019; provided them with condoms; and caused them to engage in commercial sex acts. Both of these other defendants face a mandatory punishment of at least ten years and up to life in prison. Both are in the custody of the U.S. Marshals Service.
These charges are the result of an investigation by the Federal Bureau of Investigation—Oklahoma City Field Office, the Oklahoma City Police Department, and U.S. Homeland Security Investigations. Assistant U.S. Attorneys K. McKenzie Anderson and Mary E. Walters are prosecuting the case.
Reference is made to public filings for more information.
Troy Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Jake Alexander Cruse, age 33, of Troy, New York, pled guilty today to charges of distributing, transporting and receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Cruse admitted that, between July and October 2018, he used a phone equipped with various Internet-based instant messaging and file-sharing applications to trade child pornography with others. Cruse admitted to creating multiple fake social media accounts for the purposes of making money selling child pornography and trading for additional child pornography files. Cruse’s phone and various online accounts contained approximately 120 video files and 234 image files depicting child pornography.
Sentencing is scheduled for July 15, 2020 before United States District Judge Mae A. D’Agostino.
Cruse faces a minimum term of imprisonment of 5 years, and a maximum term of imprisonment of 20 years. The Court is also required to impose a term of supervised release of between 5 years and life, and Cruse will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
This case was investigated by the FBI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.