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Thursday 30 January 2020
Philadelphia Tax Preparer Sentenced to Prison for False ReturnsRead the Press Release
A former Philadelphia tax return preparer was sentenced to 24 months in prison today for aiding in the preparation of a false client tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
According to court documents and statements made in court, Abdoulaye Coumbassa owned and operated Abbi Tax Services and Accounting (Abbi Tax). From at least 2012 to 2015, Coumbassa prepared and filed fraudulent tax returns and related forms and schedules on behalf of his clients. By reporting fictitious businesses with false business losses, Coumbassa sought inflated refunds for his clients from the Internal Revenue Service (IRS). At times, Coumbassa included the fake business losses without the client’s knowledge. In total, Coumbassa caused a tax loss of $2.1 million to the IRS.
In addition to the term of imprisonment, U.S. District Judge R. Barclay Surrick ordered Coumbassa to serve one year of supervised release and to pay approximately $250,000 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McSwain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Bea Witzleben, and Trial Attorney Sarah Ranney of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Penn Hills Man Pleads to Drug and Firearms Offenses in Project Safe Neighborhoods CaseRead the Press Release
PITTSBURGH – A former Allegheny County resident pleaded guilty in federal court today to violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Antwon Shamar Bonner, age 21, formerly of Penn Hills, pleaded guilty to possessing with intent to distribute a quantity of heroin, a Schedule I controlled substance, and to possessing firearms in furtherance of that drug trafficking crime, before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that on July 12, 2019, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives served a search warrant at the Defendant’s residence in Penn Hills, Allegheny County. There, agents located approximately 36 "bricks" (constituting approximately 1,800 individual dosage units) containing mixtures of both heroin and fentanyl, which are scheduled controlled substances under federal law. In connection with his guilty plea, the Defendant admitted to possessing those narcotics with the intent to distribute them. In addition to those narcotics, agents seized approximately $2,000 in U.S. currency, four loaded and operational firearms, one of which had an obliterated serial number, assorted ammunition, and high-capacity firearms magazines. In connection with his plea, the Defendant admitted that he possessed those firearms in furtherance of the drug trafficking crime charged in the Indictment.
Judge Horan scheduled sentencing for April 23, 2020 at 1:00 p.m. The Court directed that Mr. Bonner remain in the custody of the United States Marshall, where he has been held following his arrest by ATF agents on July 12, 2019. The law provides for a total sentence of not less than five (5) years and up to life in prison, a fine not to exceed $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Mr. Bonner.
This case was brought as 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.
Owner of Greensboro Mental Health Services Provider Sentenced to Prison, Ordered to Pay $179,547 for Not Filing Tax Returns for Three YearsRead the Press Release
GREENSBORO, N.C. - A Guilford County businessman was sentenced to six months in federal prison on January 28, 2020, for failing to file a federal tax return, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Willie Lee Cole, Jr., owned and operated “Chris’s Rehablative [sic] Services,” a mental health services provider in Greensboro, North Carolina. From 2013 through 2015, Cole did not file personal tax returns even though he earned hundreds of thousands of dollars in income during that time.
In addition to the term of imprisonment, U.S. Magistrate Judge L. Patrick Auld ordered Cole to serve a one-year term of supervised release and pay $179,547 in restitution to the United States.
U.S. Attorney Martin commended special agents of IRS - Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Operators of Veterinary Clinic Charged with Federal Tax ViolationsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Karin Breitlauch, age 56, of Saylorsburg, Pennsylvania and Linda Breitlauch, age 62, of Stroudsburg, Pennsylvania, were indicted on January 28, 2020, by a federal grand jury on criminal tax charges.
According to United States Attorney David J. Freed, the indictment alleges that Karin Breitlauch, a veterinarian and owner of Creature Comfort Veterinary Services and Linda Breitlauch, the Comptroller for the veterinary practice, withheld federal taxes from their employees’ paychecks but failed to turn the withholdings over to the Internal Revenue Service for tax quarters in 2014-2016.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Ohio man sentenced for his role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Diego L. Hansard, of Canal Winchester, Ohio, was sentenced today to 121 months incarceration for his role in a cocaine and heroin distribution operation that spanned two states, U.S. Attorney Bill Powell announced.
Hansard, also known as “Rico,” age 33, pled guilty to one count of “Maintaining a Drug-involved Premises” in November 2019. Hansard admitted to maintaining a place at 4335 Jacob Street, Wheeling, West Virginia, to distribute cocaine, cocaine base, and heroin from April 2018 to September 2018 in Ohio County.
Assistant U.S. Attorneys Stephen L. Vogrin and Danae DeMasi-Lemon prosecuted the case on behalf of the government. The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. District Judge John Preston Bailey presided.
Ocala Convicted Felon Pleads Guilty to Federal Firearm OffenseRead the Press Release
Ocala, Florida – Kwasi Francis (29, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Francis had been indicted on July 10, 2019.
According to court documents, on May 7, 2019, local law enforcement arrested Francis on unrelated criminal charges. While he was being processed at the Marion County Jail, booking staff discovered that Francis had concealed a loaded 9mm firearm between the multiple pairs of pants that he was wearing. Francis, who has prior felony convictions for burglary and heroin distribution, is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Ocala Police Department, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
New Orleans Man Pleads Guilty to Firearms and Drug ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that TERRENCE ROLLINS, age 40, of New Orleans, pleaded guilty on January 28, 2020 to a Superseding Indictment charging him with possession with intent to distribute heroin, cocaine base, and cocaine hydrochloride, and possession of the aforementioned drugs in furtherance of drug trafficking crimes. United States District Court Judge Greg G. Guidry will sentence ROLLINS on May 5, 2020.
According to court documents, members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the New Orleans Police executed a search warrant at ROLLINS Washington Avenue residence after receiving information from concerned citizens that illegal narcotics were being sold at the residence by ROLLINS. In August 2018, law enforcement executed the search warrant and located numerous controlled substances that included crack cocaine, powder cocaine and approximately 24.4 grams of heroin inside of the residence. Additional items of drug paraphernalia were also located inside of the residence. In addition to narcotics, seven firearms including handguns and high-powered rifles, and various types of ammunition were also located.
For the drug violations, ROLLINS faces a maximum sentence of 20 years of imprisonment, a fine of up to $1,000,000.00, a period of supervised release of at least 3 years, and a mandatory special assessment of $100.00. For the firearms violation, ROLLINS faces a mandatory minimum sentence of 5 years of imprisonment and a maximum sentence of life imprisonment. Following this sentence, ROLLINS will be placed on supervised release for a period of up to 5 years, and will be fined up to $250,000.00. A mandatory special assessment fee of $100.00 will be imposed.
ROLLINS’s case has been designated as a Project Safe Neighborhoods (PSN) case. 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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Multi-Kilogram Heroin and Cocaine Dealer Sentenced to PrisonRead the Press Release
NEWPORT NEWS, Va. – A Hampton woman was sentenced today to 10 years in prison for conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.
According to court documents, Kimberly Massenburg, 45, served as a go-between for a kilogram weight dealer of heroin and a kilogram weight dealer of cocaine. The two dealers would exchange tens of thousands of dollars’ worth of cocaine and heroin through Massenburg at a time. In October 2018, Massenburg was arrested in Hampton after she was found in possession of a kilogram of cocaine. After being released on bond, Massenburg kept in contact with both dealers and organized a meeting between them so that they could continue to exchange drugs directly with one another.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Cookout. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Steve R. Drew, Chief of Newport News Police; Colonel Gary T. Settle, Virginia State Police Superintendent; and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys Kevin P. Hudson, Amy E. Cross, and Peter G. Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-047.
Mount Holly Woman Is Sentenced to More Than Four Years in Prison for $1 Million Car Loan SchemeRead the Press Release
CHARLOTTE, N.C. – Kimberlie L. Flemings, 51, of Mount Holly, N.C., was sentenced today to 57 months in prison and two years of supervised release, for her role in a $1 million fraudulent car loan scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad Jr. also ordered Flemings to pay more than $600,000 in restitution.
In October 2018, a federal jury convicted Flemings of conspiracy to commit wire and bank fraud, wire fraud affecting financial institutions, and multiple counts of financial institution fraud.
Two of Flemings’s co-conspirators, Stanley Reginald Barron, and Brian Lyles, previously were sentenced to 18 months and 15 months in prison, respectively, for their involvement in the scheme.
According to today’s sentencing hearing, filed court documents, and evidence presented at Flemings’s trial, from at least 2012 to 2015, Flemings, Barron, Lyles, and others submitted dozens of fraudulent automobile and personal loan applications in their own names, as well as the names of more than 30 other individuals, to at least 19 banks and credit unions. As part of the scheme, loan applications were submitted in the name of a deceased individual and a disabled, elderly veteran. To facilitate the fraud, the co-conspirators created fake automobile dealerships that purported to be the sellers of vehicles purchased with the fraudulent loans. The co-conspirators also set up bank accounts, websites, and addresses associated with these fake automobile dealerships, and created fictitious purchase orders, which were submitted to the financial institutions as part of the loan application. As a result of the fraudulent applications, the co-conspirators obtained more than $1 million in fraudulent loan proceeds.
Flemings, Barron and Lyles generally deposited the fraudulently obtained checks from the financial institutions into accounts Barron controlled. After keeping a portion of the proceeds, Barron distributed the rest to Flemings, Lyles, and others. According to court records, the majority of the loans defaulted, causing losses to the defrauded financial institutions. To cover up the fraud, the co-conspirators made false statements to the banks and credit unions that attempted to collect on the debts, including that borrowers had been the victims of identity theft and that they had not authorized the loans.
In announcing Fleming’s sentence, Judge Conrad highlighted Flemings’ “many acts of fraudulent conduct” over the course of several years and emphasized the need to further the sentencing goals of general and specific deterrence and to protect the public from future crimes.
In making today’s announcement U.S. Attorney Murray thanked the United States Postal Inspection Service (USPIS) and the Office of Inspector General of the Federal Housing Finance Agency for their investigation of the case, and recognized the North Carolina Division of Motor Vehicles for their assistance.
Assistant U.S. Attorneys Daniel Ryan and Taylor J. Philips of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Moss Point Man Pleads Guilty to Possession with Intent to Distribute Heroin and MethamphetamineRead the Press Release
Gulfport, Miss. – Raphael Donzell Johnson, Jr., 40, of Moss Point, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute heroin and methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
Johnson will be sentenced by Judge Guirola on April 29, 2020 at 10:30 a.m. He faces a maximum penalty of 20 years in prison and up to $1,000,000 in fines.
In May 2019, an individual made two purchases of heroin and methamphetamine from Johnson. In June, agents executed a search warrant on his Moss Point residence where they found over 400 grams of heroin, methamphetamine and two firearms.
The Mississippi Bureau of Narcotics and the Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Montana Native Women’s Coalition Board executive director charged in theft of grant fundingRead the Press Release
BILLINGS --The executive director of the Montana Native Women’s Coalition, along with two board officials, were charged today in a scheme to steal federal grant money to make unapproved trips to Las Vegas and to receive other unauthorized benefits, U.S. Attorney Kurt Alme said.
Appearing before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty to a superseding indictment was Sheryl Lynn Lawrence, 43, of Colstrip, Meredith McConnell, 50, of Busby, and Barbara Mary Daychief, 43, of Browning. All defendants were released pending further proceedings.
Lawrence, who was the executive director of the Coalition, was charged as a new co-defendant in the superseding indictment. Lawrence is charged with four counts, including theft from a program receiving federal funding, wire fraud, false claims act and misprision of a felony.
McConnell, who was the Coalition’s chairwoman and executive director for Healing Hearts, and Daychief, who was the Coalition’s treasurer and a board member, were charged in the initial indictment.
McConnell is charged with four counts, including theft from a program receiving federal funding, wire fraud, false claims act and misprision of a felony.
Daychief is charged with six counts, including theft from a program receiving federal funding, wire fraud, three counts of false claim act and misprision of a felony.
If convicted of the most serious crime, the defendants face a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.
The indictment accuses the three defendants of stealing from the Lame Deer-based coalition from about August 2017 until March 2018. The Coalition’s purpose is to help Native American victims of domestic and sexual violence. In addition, the Coalition brings together Native American leaders and state representatives who administer state and federal funds for domestic violence and programming to improve resources for Native women and tribal programs.
The Coalition receives funding from the U.S. Department of Justice’s Office on Violence Against Women, which provides grants for victim services. From October 2017 to September 2018, the OVAW awarded the Coalition $318,008 in federal funds.
In March 2017, the Coalition’s previous executive director, Toni Louise Plummer-Alvernaz, pleaded guilty to fraud for stealing from the Coalition. Plummer-Alvernaz was sentenced to one year and one day in federal prison and ordered to pay $246,024 restitution.
Two months later, the First Nations Development Institute held a two-day training for the Coalition in Billings, where it taught board members, including McConnell and Daychief, about conflicts of interest, whistleblower policies, code of ethics and financial oversight. The Coalition also received a special condition about reporting fraud in its September 2017 award package.
The indictment alleges Lawrence, McConnell and Daychief committed travel fraud, received travel payments on non-approved trips, including to Las Vegas, received and authorized double-payment for “days in service,” authorized unapproved construction projects and took other benefits they were not entitled to receive.
Assistant U.S. Attorneys Ryan Weldon and Bryan Dake are prosecuting the case, which was investigated by the Department of Justice’s Office of the Inspector General.
Pacer case reference. 19-90. The progress of the case may be monitored through the U.S. District Court calendar and the PACER system. To establish a PACER account, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Mexican National Sentenced to 600 Months for Sex Crimes Against a ChildRead the Press Release
A Mexican national was sentenced Thursday to 600 months in federal prison for the sexual exploitation of a child and for possession of child pornography, announced U.S. Attorney Trent Shores.
Upon release from prison, Rogelio Hernandez Rodriguez, 30, will be placed on supervised release for life and required to register as a sex offender. When handing down the sentence, U.S. District Judge Gregory K. Frizzell noted that the law is insistent that such acts are severely punished.
“Rogelio Hernandez was a wolf in sheep’s clothing. He will now spend the next 50 years in prison for his crimes against a child victim,” said U.S. Attorney Trent Shores. “Investigators, attorneys, and victim advocates are committed to providing justice and healing resources for this young child. Our Project Safe Childhood initiative gets child predators off the streets, and it will continue full speed ahead.”
A federal jury convicted Hernandez on Oct. 24, 2019, of exploiting the minor victim and inducing the victim to engage in sexually explicit conduct for the purpose of producing child pornography. Rodriguez was further found guilty of knowingly possessing child pornography. The 524 sexually graphic images and videos depicted the sexual abuse of the prepubescent victim and were stored on hard drives and multiple SD cards.
"Rogelio Hernandez willfully preyed upon a child victim and exploited their innocence," said Melissa Godbold, Special Agent in Charge of the FBI's Oklahoma City Field Office. "The FBI and our law enforcement partners will continue to aggressively investigate child predators who sexually exploit and abuse young victims."
"The safety of children is priority for our officers here at the Wagoner Police Department. No child should have to endure sexual abuse. Our office initially investigated Hernandez's crimes, and we are thankful for today’s sentence," said Lt. Detective Benjamin Blair of the Wagoner Police Department.
Hernandez remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Wagoner Police Department and FBI investigated the case. Assistant U.S. Attorneys Reagan V. Reininger, Dennis A. Fries and Shannon Cozzoni prosecuted the case.
Melrose Felon Sentenced to 57 Months for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Victor Williams, 41, Melrose, Wisconsin, was sentenced on Tuesday, January 28, by U.S. District Judge William M. Conley to 57 months in federal prison for being a felon in possession of a firearm. Williams pleaded guilty to this offense on November 13, 2019.
On July 2, 2019, agents executed a search warrant at Williams’ residence outside of Melrose. In the defendant’s room, officers found a 9 mm Ruger handgun and some Remington ammunition. The defendant was later interviewed and said the firearm was his and that he had it for protection. Williams had previously been convicted of multiple drug felonies.
In sentencing the defendant, Judge Conley stated that having a loaded firearm as part of the drug trade created a dangerous situation, and expressed hope that the sentence would be a wake-up call for the defendant.
The charge against Williams was the result of an investigation conducted by the Tomah Police Department, West Central Metropolitan Enforcement Group, Jackson and Monroe County Sheriffs’ Offices, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative, the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Medical Clinic Worker Pleads Guilty to Aggravated Identity Theft and Wire FraudRead the Press Release
Ocala, FL – Stacey Lavette Hendricks (49, Leesburg) today pleaded guilty to aggravated identity theft and wire fraud. She faces a maximum penalty of 20 years in federal prison for the wire fraud offense, to be followed by a mandatory consecutive term of 2 years’ imprisonment for the identity theft offense. A sentencing date has not yet been set.
According to the plea agreement, Hendricks worked administrative jobs at several Florida medical clinics. She used these jobs to gain access to patient medical records to obtain patients’ birthdates and Social Security numbers. She then sold the stolen identities to others for cash, or used them herself to defraud businesses. In May 2019, Hendricks unwittingly sold stolen patient identities to an undercover law enforcement officer. When agents searched her home and car, they located 113 distinct sets of identities that had been stolen from clinic patients.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
Man Sentenced to 17 Years for Gun Crimes Under Project GuardianRead the Press Release
A firearms trafficker was sentenced to 17 years in federal prison after authorities tracked him down following an armed robbery, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The woman who acted as his getaway driver him was sentenced this week to five years in federal prison.
Jesse Bell, 26, pleaded guilty in July to being a felon in possession of a firearm, interference with commerce by robbery, and brandishing a firearm during a crime of violence.
Cierra Washington, 27, pleaded guilty in September to interference with commerce by robbery.
In plea papers, Mr. Bell – a formerly convicted felon – admitted that he and a coconspirator robbed a Valero gas station at gunpoint in June.
A store clerk, who was struck in the head with a pistol during the altercation, slipped a tracking device into the cash he handed over to Mr. Bell. Law enforcement used it to locate the car in which they fled, which led police on a high speed chase until hitting a curb.
Inside the truck, officers found a bag filled with the cash and tracker from the robbery as well as two firearms and an identification card belonging to Mr. Bell.
Police apprehended Ms. Washington, who was pregnant at the time of the robbery, immediately after she jumped out of the driver’s seat. They apprehended Mr. Bell weeks later.
At Mr. Bell’s sentencing hearing, the prosecutor revealed that despite the probation against convicted felons possessing firearms, he sold an undercover agent several firearms over the course of a few months.
“This case clearly demonstrates violent offenders shouldn’t be allowed to carry firearms – much less sell them,” said U.S. Attorney Nealy Cox. “The Northern District of Texas, working hand-in-hand with ATF, is committed to prosecuting gun crimes under Project Guardian, the Attorney General’s gun violence reduction initiative.”
“ATF has made firearms trafficking and keeping illegal firearms out of the hands of violent offenders its top priority in the Dallas metroplex. This demonstrates the level of violence that several individuals can cause within our communities. Dallas is safer with them behind bars,” stated ATF Special Agent in Charge Jeffrey C. Boshek II.
The case was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation with assistance from the Mesquite Police Department. Assistant U.S. Attorney Cara Foos Pierce is prosecuting the case.
Man Pleads Guilty to Selling Drugs on Dark WebRead the Press Release
RICHMOND, Va. – A former Richmond man pleaded guilty today to distribution of drugs similar to fentanyl.
According to court documents, Mark Faulkner, 36, was identified as part of a multi-agency federal investigation into illegal drug sales on “dark web” market places. Marketplaces on the dark web, like AlphaBay, Dream, and Hansa, function as a place where a wide variety of illegal goods and services, including narcotics, firearms, child pornography, stolen credit card numbers, and counterfeit identity documents, can be bought and sold with greater anonymity than on the traditional Internet.
In 2017, investigators with HSI and USPIS conducted online undercover operations targeting the importation and distribution of drugs on these dark web marketplaces. In addition to making covert online purchases of drugs, investigators also operated a cash-for-Bitcoin exchange business, through which they received Bitcoin from drug vendors in return for bulk cash that investigators shipped back to the drug vendors as part of the investigative process.
Faulkner used the vendor name CHANG1927 to advertise Adderall and fentanyl products on multiple dark markets. Investigators identified Faulkner through Bitcoin exchange transactions and three purchases of drugs that were advertised as fentanyl. Forensic testing later determined that the substance was actually cyclopropyl fentanyl, an analogue of fentanyl. Controlled substance analogues have chemical structures that are substantially similar, and have similar effects on the central nervous system as the controlled substances.
Faulkner pleaded guilty to distribution of a controlled substance analogue and faces a maximum penalty of 20 years in prison when sentenced on April 29. 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; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Brian R. Hood is 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. 3:19-cr-177.
Madison High School Teacher Charged with Attempting to Produce Child PornographyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, and Wisconsin Attorney General Josh Kaul announced today the unsealing of an indictment charging David M. Kruchten, 37, Cottage Grove, Wisconsin, with attempting to produce child pornography. The indictment was returned yesterday by a federal grand jury, sitting in Madison, and was unsealed after Kruchten was arrested earlier today.
The indictment charges Kruchten with seven counts of attempting to use a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. The indictment alleges that he attempted to produce the child pornography in Wisconsin using hidden recording devices on October 27, 2019, and on January 20, 2019.
Kruchten, a teacher at Madison East High School, was arrested this morning at his home. He will make an initial appearance in U.S. District Court in Madison today.
“My office is committed to vigorously investigating those who target children and prosecuting them to the fullest extent of the law,” said U.S. Attorney Blader.
“This indictment alleges criminal conduct that is an unconscionable betrayal of trust,” said Attorney General Kaul. “Thank you to everyone whose hard work resulted in today’s arrest. We will continue working to ensure that there is full accountability for the crimes alleged in this case.”
If convicted, Kruchten faces a mandatory minimum penalty of 15 years and a maximum penalty of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, the Minneapolis Police Department, and the Cottage Grove Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Longtime Fugitive Sentenced for Methamphetamine ChargeRead the Press Release
United States Attorney Joe Kelly announced that on January 30, 2020, Mario Trejo Flores, 45, of Lincoln, was sentenced to 11 years and three months in prison by Senior United States District Judge Richard G. Kopf for possession with intent to distribute methamphetamine and 10 years in prison for failure to appear. Those sentences will be served concurrently (at the same time). There is no parole in the federal system. Following the prison terms, Trejo Flores will serve four years on supervised release. However, he is likely to be deported to Mexico upon completion of his prison sentence. Trejo Flores was also ordered to forfeit $611.00 to the United States of America and pay $200 in special assessments (court costs).
On November 7, 2010, Lincoln narcotics officers conducting surveillance on the residence of a known drug dealer saw Trejo Flores leave that location in a pickup truck. Trejo Flores was stopped for a traffic infraction. Upon contact with officers, he refused to obey officers’ commands and show his hands. After a scuffle with officers, Trejo Flores was searched, and officers found a small amount of methamphetamine in a cigarette pack and a box-cutter knife in his pockets. Officers found approximately 10 grams of pure methamphetamine, multiple baggies, a digital scale, suspected drug transaction records and $611 in cash in the pickup.
Trejo Flores pled guilty to possession with intent to distribute five grams or more of methamphetamine in September of 2011. He was scheduled for sentencing on December 16, 2011, but he failed to appear. In May of 2012, an additional charge of failure to appear was filed. Trejo Flores remained a fugitive for almost eight years until his arrest on October 9, 2019.
This case was investigated by the Lincoln/Lancaster County Drug Task Force and the United States Marshals Service.
Leader of prescription fraud ring sentenced to over 3 years in federal prisonRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Brandon Fuller, 27, of Chicago, was sentenced to 40 months in federal prison, by U.S. District Judge James R. Sweeney II, after having pleaded guilty to charges of conspiracy to acquire controlled substances by misrepresentation, conspiracy to commit identification document fraud, and aggravated identity theft.
“Addressing the opioid epidemic is a top priority for the Department of Justice and the U.S. Attorney’s Office,” said Minkler. “We intend to prosecute fully, those individuals who are fraudulently obtaining prescription drugs, and selling them. Too many lives and families are affected and destroyed daily due to opioid drug abuse.”
Brandon Fuller was the leader of a conspiracy to obtain controlled substances – including oxycodone and promethazine – through fraudulent prescriptions and counterfeit driver’s licenses. At his direction, fellow Chicago residents and co-defendants James Trotter, 30, Dazhona Hodge, 24, and Jessica Chevere, 31, obtained and used numerous doctors’ names, DEA registration numbers, and medical license numbers without authorization in order to create fraudulent prescriptions. In addition, the defendants obtained and used counterfeit identifications, including driver’s licenses, together with the fraudulent prescriptions, to obtain controlled substances from pharmacies located in various states. In 2018 and 2019, Fuller and his co-defendants traveled throughout Indiana, including in the Indianapolis area, as well as to other states, to fill fraudulent prescriptions for oxycodone and other controlled substances, together with counterfeit driver’s licenses.
Upon the execution of multiple search warrants, federal agents seized and searched laptops, phones, and electronic accounts from the Fuller, Trotter, and Hodge. The electronic devices contained templates for fraudulent prescriptions, pictures of fraudulent prescriptions, templates for counterfeit driver’s licenses, pictures of counterfeit driver’s licenses, and other evidence showing the production of both fraudulent prescriptions and counterfeit IDs. Fuller’s laptop alone contained information regarding over 150 fraudulent prescriptions for controlled substances between February 2018 and March 2019.
This case was investigated by the Drug Enforcement Administration, with assistance from the Indianapolis Metropolitan Police Department, Indiana State Police, Federal Bureau of Investigation, and the Marion County Prosecutor’s Office.
“The sentencing of Mr. Fuller was just and necessary for the citizens of Indiana,” said DEA Indianapolis District Office Assistant Special Agent in Charge, Michael Gannon. During this high level investigation, Mr. Fuller was identified as a ring leader who manufactured and produced fraudulent prescriptions to multiple states, to include, Indiana, Illinois, Michigan, and Wisconsin. Throughout the course of this investigation, agents identified numerous physicians that Mr. Fuller victimized so he and his associates could illegally obtain Oxycodone, Adderall, and Promethazine with Codeine from pharmacies throughout the United States. In addition, Mr. Fuller conducted these illegal activities while he was on house arrest for previously manufacturing fraudulent prescriptions.”
“Drug trafficking rings like Mr. Fuller’s have been a major concern to law enforcement because they utilize any means necessary to take advantage of physicians and pharmacies in order to obtain controlled substances. DEA will continue to utilize all available resources to investigate and arrest offenders like Mr. Fuller and his associates who prey on people with substance abuse issues. DEA commends the outstanding work that was done by the United States Attorney’s Office, Southern District of Indiana, and our federal, state and local counterparts,” said Gannon.
According to Assistant United States Attorney Cindy J. Cho, who prosecuted this case for the government, Fuller will serve three years of supervised release following his prison sentence. His co-defendants have all filed plea agreements in this case.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to working with our law enforcement partners to target and prosecute or pursue civil remedies against those doctors, pharmacies, and medical providers who are furthering the opioid epidemic by illegally diverting opioids for their own profit, as well as those individuals who divert such drugs through robbery. The office is also committed to investigating and prosecuting those individuals engaged in fraudulent activity involving the use of bogus devices and identity fraud. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 3.6 and 4.5.
Laurel meth trafficker sentenced to 10 years in prisonRead the Press Release
BILLINGS—A Laurel man was sentenced today to 10 years in prison and five years of supervised release for conviction on drug trafficking crimes after law enforcement officers found methamphetamine in a motel room he had occupied, U.S. Attorney Kurt Alme said.
William Anthony Rogers, 30, pleaded guilty in September to conspiracy to possess with intent to distribute meth and to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court records that Billings Police officers were dispatched to the Boothill Inn in Billings on July 16, 2018 because two men were passed out in a motel room after check out and could not be awakened. One of the men woke up as officers entered the room and grabbed a meth pipe on a night stand. The second man, identified as Rogers, then woke up. Although officers saw pills and paraphernalia in plain view, they released both men pending arrest warrants because the jail was too full to accept new inmates.
After the men left, the officers looked around the room, found a silver briefcase, opened it and saw what appeared to be a large amount of meth. Officers called the Billings drug task force, which got a search warrant for the room. During the search, officers found about six ounces of meth in the briefcase and a 9mm handgun in a separate locked case. Surveillance video from the motel showed Rogers carrying the briefcase that contained the meth.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI task force.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Last defendant convicted in Stanford International Bank $7 billion investment fraud schemeRead the Press Release
HOUSTON – The former chief of Antigua’s Financial Services Regulatory Commission (FSRC) has pleaded guilty for his role in connection with the Stanford International Bank (SIB) Ponzi scheme.
Leroy King, 74, of Dickerson Bay, Antigua, was the last remaining defendant in the SIB scheme. Today, he pleaded guilty to one count of conspiracy to obstruct justice and one count of obstruction of justice for his role in obstructing the Securities and Exchange Commission (SEC) investigation into SIB. He was extradited to the United States in November 2019.
King is a dual citizen of the United States and Antigua. Beginning in approximately 2002, he served as the administrator and CEO of the FSRC, an agency of the Antiguan government. As part of his duties, he was responsible for Antigua’s regulatory oversight of Stanford International Bank Limited’s (SIBL) investment portfolio, including review of SIBL financial reports and responses to foreign regulators’ requests, such as the SEC, for information and documents about SIBL’s operations.
In or about 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG) and made official inquiries with the FSRC regarding the value and content of SIBL’s purported investments. From 2005 through February 2009, Stanford, James Davis, King and others conspired to obstruct the SEC’s investigation of SFG, SIBL and their related entities. From at least 2003 through February 2009, Stanford made regular secret corrupt payments of thousands of dollars in cash and gifts to King in order to obtain his assistance in hiding the truth about SFG and SIBL from the SEC and other regulatory agencies.
Over the course of the conspiracy, Stanford’s cash payments to King totaled approximately $520,963.87. Stanford also provided King tickets to Super Bowl XXXVIII in Houston, Texas (2004) and Super Bowl XL in Detroit, Michigan (2006). Stanford also provided King with repeated flights on private jets Stanford or SFG entities owned.
King later denied the SEC’s request for help and wrote that the FSRC “had no authority to act in the manner requested and would itself be in breach of law if it were to accede to your request.” In reality, the FSRC did have this authority and failed to exercise such because of the payments and other benefits Stanford gave to King.
A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from three to 20 years in federal prison.
U.S. District Judge David Hittner accepted the plea today and set sentencing for April 24. At that time, King faces up to five years in federal prison and a $250,000 maximum fine on each count.
The FBI, IRS - Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney John Pearson and Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section are prosecuting the case.
The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Last Defendant Convicted in Stanford International Bank $7 Billion Investment Fraud SchemeRead the Press Release
The former chief of Antigua’s Financial Services Regulatory Commission (FSRC) has pleaded guilty for his role in connection with the Stanford International Bank (SIB) Ponzi scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement.
Leroy King, 74, of Dickerson Bay, Antigua, was the last remaining defendant in the SIB scheme. Today, he pleaded guilty to one count of conspiracy to obstruct justice and one count of obstruction of justice for his role in obstructing the Securities and Exchange Commission (SEC) investigation into SIB. He was extradited to the United States in November 2019.
King is a dual citizen of the United States and Antigua. Beginning in approximately 2002, he served as the administrator and CEO of the FSRC, an agency of the Antiguan government. As part of his duties, he was responsible for Antigua’s regulatory oversight of Stanford International Bank Limited’s (SIBL) investment portfolio, including the review of SIBL financial reports and the response to requests by foreign regulators, including the SEC, for information and documents about SIBL’s operations.
In or about 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG) and made official inquiries with the FSRC regarding the value and content of SIBL’s purported investments. From 2005 through February 2009, Stanford, James Davis, King and others conspired to obstruct the SEC’s investigation of SFG, SIBL and their related entities. From at least 2003 through February 2009, Stanford made regular secret corrupt payments of thousands of dollars in cash and gifts to King in order to obtain his assistance in hiding the truth about SFG and SIBL from the SEC and other regulatory agencies.
Over the course of the conspiracy, Stanford’s cash payments to King totaled approximately $520,963.87. Stanford also provided King tickets to both Super Bowl XXXVIII in Houston, Texas (2004) and Super Bowl XL in Detroit, Michigan (2006). Stanford also provided King with repeated flights on private jets Stanford or SFG entities owned.
King later denied the SEC’s request for help, and he wrote that the FSRC “had no authority to act in the manner requested and would itself be in breach of law if it were to accede to your request.” In reality, the FSRC did have this authority and failed to exercise such because of the payments and other benefits Stanford gave to King.
A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from three to 20 years in federal prison.
U.S. District Judge David Hittner of the Southern District of Texas accepted the plea today and set sentencing for April 24.
The FBI’s Houston Field Office, IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case. Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas are prosecuting the case.
The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Jury Finds Florida Man Guilty of Obstructing the IRSRead the Press Release
A federal jury convicted a Florida man today of corruptly obstructing the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Maria Chapa Lopez for the Middle District of Florida.
According to evidence presented at trial, since 1999 Dennis J. Nagle has refused to voluntarily pay federal income taxes. As a result, by 2014, he had an outstanding tax balance of more than $400,000. When the Internal Revenue Service (IRS) attempted to collect Nagle’s unpaid taxes by filing liens and levying his paychecks and pension, Nagle obstructed the IRS collection efforts. Nagle submitted false forms to his employer claiming he was exempt from federal tax withholding, attempted to pay off his tax debts with checks written on a closed bank account, and threatened to file criminal complaints against IRS collection officers. In total, Nagle sent the IRS at least 15 worthless payments, purportedly totaling more than $1.9 million dollars.
U.S. District Judge Paul G. Byron ordered Nagle to be remanded to the custody of the Bureau of Prisons until his sentencing, which is scheduled for April 22, 2020. At sentencing, Nagle faces a statutory maximum penalty of three years in federal prison. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Karen Gable and Trial Attorney Lauren Archer of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Jury Convicts San Antonio Man on Federal Child Pornography ChargesRead the Press Release
In San Antonio this afternoon, a federal jury convicted 53–year-old Elton Vallare of San Antonio of distribution, receipt and possession of child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Jurors convicted Vallare of two counts of distribution of child pornography, one count of receipt of child pornography and two counts of possession of child pornography. On June 14, 2017, FBI agents arrested Vallare following the execution of a search warrant at his residence. During the search warrant, investigators recovered two laptop computers and various computer related equipment. A forensics review of the seized items revealed the presence of numerous video and image files depicting child pornography which the defendant downloaded and distributed via the internet.
Vallare faces between five years and 20 years in federal prison for each distribution and receipt charge. He also faces up to 20 years in federal prison for each possession charge. Vallare remains in federal custody. Sentencing has yet to be scheduled.
The FBI’s San Antonio Child Exploitation Task Force investigated this case. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.Jury Convicts Illegal Alien for Shooting Gun in Fairview Heights ParkRead the Press Release
A federal jury in East Saint Louis returned a guilty verdict this morning in a case involving an
illegal alien. Gustavo Alvarez-Gomez, 23, a native of El Salvador, was convicted of unlawfully
possessing a firearm after a three-day trial.Evidence presented during the trial established that on Feb. 25, 2019, Alvarez-Gomez and a
companion, Jordy Sanchez-Andrade, drove from St. Louis, Missouri, to Pleasant Ridge Park in
Fairview Heights, Illinois, so they could smoke marijuana and shoot a handgun. Both men entered the
wooded hiking trails and fired off shots from a 9mm pistol. A concerned citizen called the police,
and the Fairview Heights Police Department quickly responded.Both men were found and arrested in the wooded area of the park. The pistol was recovered nearby.
Subsequent investigation by the Department of Homeland Security, Immigrations and Customs
Enforcement (ICE) determined that both men had entered the United States illegally. Federal law
prohibits unlawful aliens from knowingly possessing a gun.U.S. Attorney Steve Weinhoeft said, “Our illegal immigration enforcement efforts prioritize
identifying and aggressively prosecuting those who enter the United States illegally and commit
other crimes.” Weinhoeft continued, “It is beyond reckless to handle firearms while using drugs,
but this crime is so much more offensive because these two individuals chose to do so at three
o’clock in the afternoon, in a public park that was occupied by a mother and her two young
children, ages 1 and 4.”An indictment was returned against the pair in April 2019. Sanchez-Andrade, 22, pleaded guilty.
He is currently in ICE custody awaiting removal proceedings back to his native Honduras.Alvarez-Gomez remains in the custody of the United States Marshals Service pending his May 8
sentencing before Chief United States District Judge Nancy J. Rosenstengel. He could receive up to
ten years imprisonment and a fine of up to $250,000. After his sentence has been served,
Alvarez-Gomez will be referred to immigration authorities for removal proceedings.The investigation of this case was conducted by the Fairview Heights Police Department, Department
of Homeland Security Investigations, Immigrations and Customs Enforcement, and the Bureau of
Alcohol, Tobac o, Firearms and Explosives. The case was tried by Assistant United States Attorney
Alexandria Burns.
Johnson City Man Sentenced to 300 Months for Sexually Exploiting a Child and Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Michael Rushmer, age 48, of Johnson City, New York, was sentenced today to 300 months in prison for sexually exploiting a child, and for distributing and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Rushmer admitted that he created sexually explicit images and videos of a minor (including secretly recording the victim engaged in sexual acts), and that he distributed some of those images and videos to people over the internet. Rushmer further admitted that he possessed hundreds of images and videos depicting child pornography on his electronic devices, some of which included children under the age of 12.
Senior United States District Judge Thomas J. McAvoy also imposed a 10-year term of supervised release, which will start after Rushmer is released from prison, and ordered payment of $9,000 in restitution to victims. As a result of his conviction, Rushmer will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI, the Johnson City Police Department, the Broome County Sheriff’s Department, and the Broome County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Sahar Amandolare.
This case was prosecuted as part of Project Safe Childhood. 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
Jackson Man Sentenced under Project EJECT to 15 Years in Federal Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss – Demarkis Addison, 33, of Jackson, was sentenced today by Senior U.S. District Court Judge Tom S. Lee to 15 years in federal prison under the Armed Career Criminal Act for possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On February 6, 2019, while a United States Marshals Task Force was searching for a wanted man in Jackson, a man fitting the description was observed getting into a car at America’s Best Inn located on Interstate 55. As the Task Force officers approached, the man ran on foot and was seen tossing a handgun. Officers caught the individual, Demarkis Addison, and determined he was a convicted felon at the time he was observed by the Task Force with the handgun. Addison was previously convicted of five separate house burglaries between November 2004 and February 2013.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Jackson Man Pleads Guilty under Project EJECT to Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Albert Thompson, 24, of Jackson, pled guilty today before Senior U.S. District Court Judge Tom S. Lee to possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On January 21, 2019, Jackson Police officers responded to a possible house burglary in the city of Jackson. Upon arrival, officers observed three men matching descriptions provided via 911. Officers pursued the three men on foot. One of the men, Albert Thompson, brandished a handgun towards an officer which caused the officer to draw her service weapon. However, that officer was able to order Thompson to the ground and avoid deadly force. Thompson had been previously convicted of multiple house burglaries in 2012 and served time for those.
On April 16, 2019, Thompson was charged in a federal indictment with possessing a firearm after having been previously convicted of a felony crime.
Thompson will be sentenced by Judge Lee on April 30, 2020, at 9:00 a.m. He faces a statutory penalty of up to 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Iranian Export Company Executive Sentenced for Violating U.S. Sanctions Against IranRead the Press Release
ALBANY, NEW YORK - Mahin Mojtahedzadeh, age 74, and a citizen of Iran, was sentenced today to time served (443 days in jail) for conspiring to unlawfully export gas turbine parts from the United States to Iran.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Jonathan Carson, Special Agent in Charge, the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office.
United States District Judge Mae A. D’Agostino also ordered Mojtahedzadeh to pay a $5,000 fine. Mojtahedzadeh had been in law enforcement custody since November 14, 2018 and will now be placed into immigration custody for the purposes of removal from the United States.
On July 19, 2019, she pled guilty to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations. She admitted that she was the President and Managing Director of ETCO-FZC (“ETCO”), an export company with an office in Dubai in the United Arab Emirates. ETCO is a supplier of spare and replacement turbine parts for power generation companies in the Middle East, including Iran.
Mojtahedzadeh admitted that from 2013 through 2017, she worked with companies in Canada and Germany to violate and evade U.S. sanctions against Iran, by having these companies first acquire more than $3 million dollars’ worth of turbine parts from two distributors in Saratoga County, New York.
When the U.S. parts arrived in Canada and Germany, respectively, these companies and Mojtahedzadeh then arranged for the parts to be re-shipped to ETCO’s customers in Iran. At all times, U.S. law prohibited the export and re-export of U.S.-origin turbine parts to Iran without a license from the U.S. Office of Foreign Assets Control (OFAC), which neither Mojtahedzadeh nor her co-conspirators possessed.
United States Attorney Grant C. Jaquith stated: “This investigation struck a blow to Iranian efforts to obtain U.S. goods needed for Iran’s domestic energy production, and brought to justice three foreign nationals who conspired to circumvent economic sanctions that protect the national security of the United States.”
FBI Special Agent in Charge James N. Hendricks stated: “Anyone looking to evade sanctions and put our nation at risk should be on notice. The FBI, along with our interagency partners, will continue to vigorously investigate these crimes and ensure perpetrators, like Mahin Mojtahedzadeh, are brought to justice.”
Kevin Kelly, HSI Buffalo Special Agent in Charge, stated: “The illegal exportation of sensitive and restricted technology is a detriment to our national security. HSI is committed to enforcing these laws and ensuring that safeguards are maintained. The defendant’s admission of guilt and the sentence they received today is a clear example of the consequences awaiting those who engage in such actions.”
Special Agent in Charge Jonathan Carson, of the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office stated: “We will fully and aggressively enforce our nation’s restrictions on exports to Iran. Controls on exports to Iran help apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide. The Office of Export Enforcement will continue to leverage our unique authorities to pursue violators wherever they are, worldwide. We will continue to work with our law enforcement partners to achieve this goal.”
Two of Mojtahedzadeh’s co-conspirators have previously pled guilty and been sentenced.
Olaf Tepper, a citizen of Germany, pled guilty to conspiring to violate IEEPA. On August 3, 2018, Judge D’Agostino sentenced him to 24 months in prison, and to pay a $5,000 fine. Tepper was the founder and Managing Director of Energy Republic GmbH (“Energy Republic”), based in Cologne, Germany, which re-exported U.S.-origin turbine parts to Iran, as part of a conspiracy with Mojtahedzadeh.
Mojtaba Biria, a citizen of Germany, also pled guilty to conspiring to violate IEEPA. On August 14, 2019, Judge D’Agostino sentenced him to time served (approximately 21 months in jail). Biria was Energy Republic’s Technical Managing Director.
These cases are the result of a joint investigation by FBI, HSI and the Department of Commerce Office of Export Enforcement, and were prosecuted by Assistant U.S. Attorneys Rick Belliss and Michael Barnett, with assistance from Trial Attorney Scott A. Claffee of the Department of Justice’s National Security Division, Counterintelligence & Export Control Section.
Iowa Man Convicted of Child Sex Trafficking, Methamphetamine and Firearms OffensesRead the Press Release
DES MOINES, Iowa – On January 28, 2020, following a six-day trial, a jury found Kendall Andrew Streb, of Hills, Iowa, guilty of three counts of child sex trafficking, two counts of distributing methamphetamine to children, one count of possession with intent to distribute methamphetamine, one count of unlawful user in possession of a firearm and one count of possessing a firearm in furtherance of a drug trafficking crime announced United States Attorney Marc Krickbaum. The case was presided over by United States District Court Judge Stephanie M. Rose. A sentencing hearing will be set at a later date.
During trial, the government presented evidence Streb trafficked three teenagers in Iowa City, Coralville, and Cedar Rapids, from November 2018 through February 2019. Streb solicited the three minors, aged 15 through 17 years old, and paid them in cash and methamphetamine in exchange for sex acts. Streb, at times, transported the teenagers to hotel rooms where he engaged in commercial sex acts with them. The evidence proved Streb knew one or more girls was under 18 years old, and otherwise was in reckless disregard of the fact they were under the age of 18.On March 26, 2019, during a search warrant executed at Streb’s residence and truck, law enforcement located methamphetamine and two handguns. Evidence of drug trafficking was also found during the search, that included methamphetamine packaged for sale, a digital scale, and packaging materials.
“Let’s be clear: if you pay money or provide drugs in exchange for sex with underage girls, you are a sex trafficker. We will prosecute you and send you to federal prison,” said Krickbaum. “The U.S. Attorney’s Office is grateful to the law enforcement officers, particularly those from the Iowa City Police Department, who brought Kendall Streb to justice.”
Sex trafficking of a child is punishable by a minimum of ten years’ imprisonment and up to life imprisonment.
Human trafficking is defined as a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
The case was investigated by the Iowa City Police Department, with assistance from the Johnson County Sheriff’s Office, the Iowa Division of Criminal Investigation and the Coralville Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Investigation into child sex tourism leads to conviction and life sentence for Noblesville manRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of Noblesville, Ind. man, Charles Skaggs, Jr., age 53, to life in federal prison after his conviction at trial during July 2019 for sexual exploitation of a minor, possession of child pornography, and concealment of evidence. Skaggs had a prior conviction out of Clark County, Ind. for sexual misconduct with a minor.
“Today’s sentence sends a strong message to those who seek to exploit our minor children that you will be prosecuted to the fullest extent of the law, particularly those with prior records of child exploitation,” said Minkler. “Protecting our youth from sexual predators will always remain a top priority of this office and this life sentence will ensure that the public is safe from any future victimization from this defendant.”
This case began in 2015 as an investigation by the Federal Bureau of Investigation (“FBI”) of child sex tourism in Ukraine, including Skaggs’ work with orphanages there. In December 2016, Skaggs was searched at the U.S. Customs area of the Minneapolis-St. Paul International Airport during his return trip from Ukraine to Indiana. Law enforcement officers recovered thumb drives that contained child pornography, including child pornography that Skaggs’ produced in Indiana.
Skaggs was arrested by the FBI. Prior to his arrest, Skaggs hid a hard drive in the ceiling of a shared laundry room in his residence. During Skaggs’ pretrial detention at the Henderson County Detention Center, law enforcement officers intercepted a note written by Skaggs, which disclosed the location of the hard drive. The hard drive contained, among other things, images of videos of child pornography, including copies of the same pornography found on the thumb drives seized at the airport.
Skaggs had a bench trial before the Honorable Sarah Evans Barker, United States District Judge, Southern District of Indiana, on July 22, 2019 through July 24, 2019. Skaggs was convicted of all nine counts of sexual exploitation of a minor, two counts of possession of child pornography, and one count of concealment of evidence.
This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI-St. Paul), U.S. Customs and Border Protection (CBP), and the Indiana State Police.
“Children are among the most vulnerable in our society and it is our collective responsibility to protect them from predators such as Mr. Skaggs. His life sentence should send a clear message to those who engage in this conduct - you will be investigated, identified, and prosecuted - and you will go to prison,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “The teamwork between our agents and state law enforcement partners ensured there is one less predator victimizing the most innocent of our communities.”
“Sexual predators, like Charles Skaggs, who think they can avoid U.S. laws by traveling abroad for the purpose of sexually exploiting children will find no safe refuge upon their return to the U.S., said Tracy J. Cormier, Special Agent in Charge of HSI St. Paul. “HSI proudly stands with our law enforcement partners and remains steadfastly committed to doing all we can to stop this heinous practice.”
According to Assistant United States Attorneys MaryAnn T. Mindrum and Kyle M. Sawa, who prosecuted this case for the government, Skaggs must also serve 5 years of supervised release following his sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit or harm children and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1 and 4.2.
Hartford Gang Member Sentenced to 12 Years in Federal Prison for Role in Violent Kidnapping and AssaultRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS PITT, also known as “Macho,” 24, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 144 months of imprisonment, followed by five years of supervised release, for a kidnapping and violent assault he committed with four other members of the Almighty Latin Kings Nation (“Latin Kings”).
According to court documents and statements made in court, on January 26, 2018, Anthony Carillo and Josue Franco lured an individual (“the victim”) to a residence on Benton Street in Hartford. When the victim entered the residence, Pitt and Jonathan Otero were waiting. Carillo, Franco, Pitt and Otero then threatened, assaulted and tortured the victim, prevented him from leaving the residence, and demanded a ransom. After the victim was restrained, Pedro Carillo arrived at the residence and participated in the ongoing assault and torture of the victim, which included burning him with cigarettes, pistol-whipping him and throwing a dart into his foot.
The defendants forced the victim to call someone to deliver money in exchange for his release. The victim then called his father. Franco grabbed the phone and told the victim’s father if he did not deliver $500 they were going to kill his son. After the call, Otero put a bullet in the victim’s hand and told him he would use that bullet to shoot him in the head if the victim could not get the ransom money. The victim was then transported to different locations in Hartford in an effort to collect ransom before he was eventually released.
The victim was treated at a hospital for a fractured cheekbone, a facial laceration, a concussion and other injuries.
Pitt has been detained since his arrest on October 4, 2018. On September 25, 2019, he pleaded guilty to one count of assault with a dangerous weapon in aid of racketeering, and one count of using, carrying and brandishing a firearm in furtherance of a crime of violence.
The other four defendants pleaded guilty to related charges and were sentenced last month. On December 10, Otero was sentenced to 154 months of imprisonment; on December 16, Franco was sentenced to 132 months of imprisonment; on December 18, Anthony Carillo was sentenced to 125 months of imprisonment, and on December 19, Pedro Carillo was sentenced to 161 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Major Crimes Division has provided critical assistance to the investigation.
The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Gulfport Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss. – Douglas Gary Mayes, 66, of Gulfport, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr., to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On July 2, 2019, ATF agents went to Mayes’ residence in Gulfport to arrest him on an underlying federal indictment for being a felon in possession of a firearm. Mayes advised agents that he had additional firearms in his home, but would not give consent to search. A federal search warrant was obtained and, after searching the residence, agents found three additional firearms and ammunition. Mayes had a previous conviction in Harrison County, Mississippi for receiving stolen property.
Mayes will be sentenced by Judge Guirola on Wednesday, April 29, 2020, at 10:00 a.m., in Gulfport. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Georgia Pair Sentenced for Methamphetamine Drug and Firearm ChargesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, Chief United States District Judge Terrence W. Boyle sentenced CHRISTIAN TOLEDO, also known as “FLACO,” 24 of Athens, Georgia, to 180 months imprisonment and 5 years supervised release for possession with the intent to distribute fifty grams or more of methamphetamine, aiding and abetting, and possession of a firearm in furtherance of a drug trafficking crime. ARTURTO BAHENA, 28, also of Athens, Georgia was sentenced on December 17, 2019 to 262 months imprisonment, followed by 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute fifty grams or more of methamphetamine, aiding and abetting, and possession with intent to distribute fifty grams or more of methamphetamine, aiding and abetting.
TOLEDO and BAHENA were named in an indictment filed on January 15, 2019, charging both with conspiracy to distribute and possess with the intent to distribute fifty grams or more of methamphetamine and possession with intent to distribute fifty grams or more of methamphetamine, aiding and abetting. TOLEDO was also charged with possession of a firearm in furtherance of a drug trafficking gram. On September 23, 2019, BAHENA pled guilty to his charges.
According to the investigation, the Greenville Police Department and Drug Enforcement Administration utilized a confidential source to order five kilograms of crystal methamphetamine from a supplier in Atlanta, Georgia. After learning that the drugs had arrived in Greenville, North Carolina, officers stopped TOLEDO and BAHENA and located the five kilograms in a backpack in their car. Officers also located two handguns in the car registered to TOLEDO.
The prosecution of TOLEDO and BAHENA was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF) targeting drug traffickers. This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Greenville Regional Drug Task Force and Drug Enforcement Administration (DEA) conducted the investigation of this enforcement operation. Assistant United States Attorney Dena King represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Four-Time Felon, Meth User, and Domestic Abuse Misdemeanant Sentenced to Federal Prison for Gun CrimeRead the Press Release
A Dakota City, Iowa man was sentenced January 30, 2020 to more than six years in federal prison for unlawfully possessing a gun and ammunition.
Christopher Powell, age 39, from Dakota City, Iowa, received the prison term after a June 17, 2019 guilty plea to possession of a firearm and ammunition by a prohibited person.
Information provided by the United States at the court hearings in the case revealed Powell’s crime was discovered when, while he was pheasant hunting, he fired dangerously close to a home, and a school bus that was offloading a young child. An off-duty deputy, waiting to collect his child from the school bus, confronted Powell and discovered he had been using methamphetamine while hunting. A review of Powell’s criminal history revealed he was a four-time felon, including a conviction for Burglary in the Third Degree, and was a domestic abuse misdemeanant. Additional investigation revealed Powell attempted to subvert the law prohibiting felons, drug users, and domestic abusers from lawfully possessing firearms, by directing his wife to purchase his gun.
Powell was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Powell was sentenced to 73 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Powell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the O’Brien County Sheriff’s Office and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4009. Follow us on Twitter @USAO_NDIA.
Former Weyerhaeuser Employee Pleads Guilty to Mail Fraud, Aggravated Identity Theft, and Tax EvasionRead the Press Release
EUGENE, Ore.—Susan Tranberg, 61, of Eugene, Oregon, pleaded guilty today in federal court to mail fraud, aggravated identity theft and tax evasion after defrauding her former employer, the Weyerhaeuser Company, out of more than $4.5 million.
“Susan Tranberg used her intimate knowledge of the Weyerhaeuser Company to perpetrate a lengthy and complex fraud. She went to great lengths to disguise her actions and mislead her colleagues,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “She then took her scheme a step further by evading paying taxes on her fraudulent gains. Her crimes reflect a complete disdain for her employer and utter contempt for her responsibilities as an American taxpayer.”
“Between 2004 and 2019, Susan Tranberg purported herself as a trustworthy and dedicated employee. In reality she was embezzling more than $4 million dollars,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “She cheated both her employer and the American taxpayers by evading taxes on her embezzled income. The IRS is committed to promoting taxpayer confidence by ensuring every taxpayer pays their fair share regardless of the taxable source.”
According to court documents, beginning as early as June 2004 and continuing to January 2019, Tranberg defrauded Weyerhaeuser out of more than $4.5 million by submitting fraudulent invoices for payment to a fake vendor she created. Tranberg had worked for Weyerhaeuser in Springfield, Oregon in various positions for more than 40 years.
At some point in or before June 2004, Tranberg created a fake timber contract between the company and a vendor she named after her mother, who was unware of the scheme. Over the next 10 years, Tranberg would use her positions in the company’s accounting and finance departments, to request cashier’s checks payable to the fake vendor. During this time period, Tranberg requested and received more than $2.6 million.
In June 2014, Weyerhaeuser transitioned to a new payment processing system. To continue her scheme, Tranberg set up a fake vendor account in the new system and attached a letter purportedly from her mother describing the documentation provided to set up the account. This documentation included a Form SSA-1099 Social Security Statement and a forged Form W-9 Request for Taxpayer Identification Number and Certification.
Between June 2014 and January 2019, Tranberg continued her scheme by forging colleagues’ signatures on check requests and using her colleagues’ computer login credentials without authorization to create requests and approve fraudulent payments. All requested cashier’s checks were sent via private or commercial interstate carrier directly to Tranberg. During these final five years, Tranberg requested and received nearly $1.9 million.
Tranberg faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. In addition, a conviction for aggravated identity theft carries a two-year mandatory minimum sentence required to be served consecutive to any other prison sentence imposed.
As part of her plea agreement, Tranberg has agreed to pay $4,581,218 in restitution to Weyerhaeuser and $807,033 in restitution to the IRS.
This case was investigated by IRS-Criminal Investigation (IRS-CI) and prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Former Stockman Bank employee sentenced to prison for stealing from customersRead the Press Release
BILLINGS—A former Stockman Bank commercial loan assistant who admitted stealing money from the accounts of two customers, including a mentally incompetent elderly man, was sentenced today to 57 months in prison and five years of supervised release and ordered to pay $195,949 restitution, U.S. Attorney Kurt Alme said.
Shawn Al Logan, 31, of Shepherd, pleaded guilty in October to theft, embezzlement, misapplication by bank employee, engaging in monetary transactions in criminally derived property and aggravated identity theft.
U.S. District Judge Susan Watters presided and continued Logan’s release pending assignment by the Bureau of Prisons.
In court documents filed in the case, the prosecution said Logan, a commercial loan assistant, fraudulently obtained or attempted to obtain more than $243,000 in customer funds for his personal benefit. Logan worked on customer accounts of an elderly man who was mentally incompetent and interacted with the man’s representative, who had power of attorney. The representative lived in Florida, was authorized to handle the man’s accounts and traveled to Billings a few times a year.
Beginning in September 2017, Logan made unauthorized withdrawals from the man’s account for his own benefit by issuing debit cards in the representative’s name. When the representative confronted Logan about unauthorized debit transactions, Logan made a series of misrepresentations to the representative, all designed to hide what had actually occurred.
Logan also made a series of unauthorized internal transfers from the account of another Stockman bank customer to the elderly man’s account, from which Logan would pay his own creditors and make deposits into his own accounts.
When interviewed by the bank, Logan initially said all of the flagged internal bank transfers and checks were approved by Stockman customers. However, when confronted by evidence concerning one of the checks payable to his American Express account, Logan said he did not want to answer any more questions.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the FBI, the Federal Deposit Insurance Corporation’s Office of Inspector General and the IRS.
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Former Owner of Oil Field Construction Business Pleads Guilty to Tax EvasionRead the Press Release
OKLAHOMA CITY – MICKEY ALVIN YOUNG has pleaded guilty to evading personal federal income taxes for the 2013 tax year, announced U.S. Attorney Timothy J. Downing.
A federal grand jury indicted Young on December 4, 2018, on two counts of tax evasion. According to the indictment, Young operated Mickey Young Construction, a sole proprietorship that built concrete pits to hold millings at oil and gas well drilling sites. Evidence in the case showed that the business had gross receipts of more than $9 million in 2012 and more than $6 million in 2013. Young’s income from his business was to be reported on his personal federal income tax return. He was charged with under-reporting his income in both 2012 and 2013 by treating money that he used for personal purposes as deductible business expenses of Mickey Young Construction.
After a jury was unable to reach a unanimous verdict on either count in July 2019, U.S. District Judge Robin J. Cauthron declared a mistrial and set the case for re-trial.
This morning, Young pleaded guilty to tax evasion for the 2013 tax year. The government will dismiss the charge for 2012 at the time of sentencing, which has been set on April 30, 2020.
Tax evasion carries a potential penalty of five years in prison, three years of supervised release, and a fine of up to $250,000. The parties have agreed, however, that Young should be sentenced to a maximum of eight months in prison. Young’s plea agreement also requires him to pay restitution to the IRS. The parties have agreed that the tax loss to the United States is more than $550,000.
This case is the result of an investigation by the Internal Revenue Service—Criminal Investigations, with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Scott E. Williams and Amanda Green are prosecuting the case.
Reference is made to public filings for more information.
Former Aurora Business Owner Pleads Guilty to Multi-Million Dollar Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – A former Aurora, Missouri, business owner pleaded guilty in federal court today to a series of multi-million dollar fraud schemes.
Russell Grundy, 50, of Hilton Head Island, South Carolina, formerly of Aurora, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to two counts of wire fraud, one count of making a false statement on a loan application, and one count of money laundering.
Grundy was the owner of several companies that focused on advanced technologies, ranging from software development to computer security to addressing the software and hardware technological needs of its clientele. Grundy’s companies included Innovative Objects, LLC, PILR Technology, LLC, Choice Technologies, LLC, Wyerless, LLC, and Audio Input, LLC.
Land O’Lakes/Nutra Blend Fraud Scheme
Grundy (through his company Innovative Objects) was contracted by Land O’Lakes, Inc., and its subsidiary, Nutra Blend, LLC, from January 2004 to Sept. 27, 2015, to create propriety software to inventory, track, and coordinate the disbursement of products. Grundy also contracted with Land O’Lakes and Nutra Blend to provide equipment and technical support for the use, upkeep, and maintenance of the software.
Grundy falsely told Land O’Lakes and Nutra Blend that third party software programs were built into that proprietary software and were essential to the successful operation of the software. Grundy claimed that some of the payments made to Innovative Objects were remitted to third party license holders. In reality, there were no third party licensee fees; instead, Grundy kept those payments for his personal or unrelated expenses.
Land O’Lakes and Nutra Blend paid more than $1.3 million in fraudulent license fees between 2012 and 2015.
Miami Nations Enterprise Fraud Scheme
Grundy engaged Miami Nations Enterprise, a subsidiary company of the Miami Nations Tribe, in negotiations to provide loans and to purchase a controlling interest in all of Grundy’s technology-based companies.
Grundy falsely told Miami Nations Enterprise that his companies had been awarded a $3.5 million contract from Wal-Mart Stores, Inc., to develop and provide information technology services. Grundy presented numerous e-mails, invoices, conditional award letters, and other documents to support his false claims. Miami Nations Enterprise loaned Grundy the money to cover the costs associated with software and hardware purchases and training necessary to obtain the $3.5 million Wal-Mart contract. Grundy admitted today that he instead used those funds for his own personal expenses, including building a new home in Charleston, South Carolina.
On Aug. 24, 2014, Miami Nations Enterprise paid an additional $2 million to purchase a 70 percent interest in Grundy’s companies.
Officials with Miami Nations Enterprise later discovered that neither Grundy nor any of his companies had been awarded any contract with Wal-Mart, and determined that the e-mails, conditional contract award, invoices, and bank deposits Grundy had used to support his claims were fraudulently created.
False Information on Loan Application
Grundy applied for three loans from UMB Bank on Oct. 17, 2014. Grundy specifically admitted that he fraudulently obtained a $5,440,800 loan by providing false information in the loan application.
Grundy falsely claimed that Land O’Lakes had agreed to a 20-year lease for warehouse space that he wanted to build using the loans he sought from the bank. Based on lease agreements provided to UMB Bank officials, Grundy claimed he would receive $18 million in future income.
Grundy admitted that he grossly exaggerated the amount of money to be paid by Land O’Lakes in order to obtain the loans from UMB. Rather than one lease agreement between Grundy and Land O’Lakes to rent the warehouses, there were two lease agreements. One lease agreement was for three years at an amount far less than claimed by Grundy. The second lease agreement was a “month-to-month” lease agreement at an even smaller amount. In reality, the true and accurate leases signed and approved by Land O’Lakes only guaranteed Grundy $540,000 in income.
Under federal statutes, Grundy is subject to a sentence of up to 20 years in federal prison without parole on each of the wire fraud counts, up to 30 years on the false statements count, and up to 10 years on the money laundering count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by the FBI and IRS-Criminal Investigation.
Former Atlanta Regional Commission employee pleads guilty to accepting bribesRead the Press Release
ATLANTA - Marc Hannon-White, a former Atlanta Regional Commission employee, pleaded guilty to accepting bribes in exchange for promising to steer federally subsidized students to particular training providers.
“While working at the Atlanta Regional Commission, Hannon-White was supposed to be administering federally funded workforce development programs,” said U.S. Attorney Byung J. “BJay” Pak. “Instead, he solicited and accepted bribes to unjustly enrich himself.”
“Hannon-White bribed workforce training providers to enrich himself. His actions undermined the integrity of federally funded programs intended to aid those with significant barriers to employment find meaningful jobs and careers. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
“The key to public trust is holding public officials accountable for abusing their power for personal gain at the expense of our taxpayers,” said State of Georgia Inspector General Deb Wallace.
According to U.S. Attorney Pak, the charges and other information presented in court: The Workforce Innovation and Opportunity Act (WIOA), and the Workforce Investment Act (WIA), are federal public laws designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy.
The Atlanta Regional Commission (ARC) administers WIOA and WIA funds by serving as the administrative agency for the Atlanta Regional Workforce Development Board for the Georgia counties of Cherokee, Clayton, Douglas, Fayette, Gwinnett, Henry, and Rockdale. In this role, ARC oversees federally funded workforce development programs for those seven counties.
Between February 2014 and January 2015, Hannon-White worked for the division of ARC that administered, managed, and staffed those federally funded workforce development programs. During this time, Hannon-White used his position to solicit and accept payments from training providers that received federal funds for each qualified student they trained. In all, more than $15,000 in federal funds were at issue. As detailed in the indictment, Hannon-White arranged some of the bribe payments by text, sending his bank account number to one training provider who then caused money to be deposited into the account in exchange for receiving additional students.
On November 5, 2019, a federal grand jury indicted Marc Hannon-White, 52, of Atlanta, Georgia, for conspiracy to commit bribery, conspiracy to commit extortion, and extortion. Hannon-White pleaded guilty to conspiracy to commit bribery, and is scheduled to be sentenced on May 11, 2020, at 10:00 a.m., before U.S. District Court Judge Thomas W. Thrash, Jr.
The U.S. Department of Labor Office of Inspector General investigated this case with the help of the State of Georgia Office of Inspector General.
Assistant U.S. Attorney Bret R. Hobson is prosecuting 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.
Five Plead Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced LARRY WILLIAMS (“LARRY WILLIAMS”), age 46, of New Orleans, LUCINDA THOMAS (“THOMAS”), age 63; MARY WADE (“WADE”), age 55; JUDY WILLIAMS (“JUDY WILLIAMS”), age 59; and DASHONTAE YOUNG (“YOUNG”), age 25; all of Houma, Louisiana, entered a plea of guilty today to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to today’s guilty pleas, on June 6, 2017, THOMAS, WADE, JUDY WILLIAMS, and YOUNG drove from Houma, LA, to meet with Damian Labeaud (“Labeaud”), for the purpose of staging an automobile accident in order to obtain money through fraud. After their meeting, THOMAS, WADE, JUDY WILLIAMS, and YOUNG agreed to allow Labeaud to drive THOMAS’ 2009 Chevrolet Avalanche vehicle. The defendants then drove around the vicinity of Chef Menteur Highway and Downman Road of New Orleans until they located a 2017 Freightliner tractor-trailer operated by an Arkansas trucking company. At approximately 12:30 P.M., Labeaud intentionally collided with the tractor-trailer. Labeaud then exited THOMAS’ vehicle and instructed THOMAS to get behind the wheel of THOMAS’ Avalanche to make it appear that THOMAS was driving the vehicle at the time of the staged accident.
THOMAS, WADE, JUDY WILLIAMS, and YOUNG contacted the NOPD and falsely reported that THOMAS had been the driver of the Avalanche and that the tractor-trailer had struck her vehicle. Labeaud then returned to the scene and also made false statements to the NOPD that he had witnessed the accident and that the driver of the tractor-trailer had been at fault.
According to documents filed in federal court, before and after the staged accident, Labeaud contacted Attorney A and arranged a meeting with THOMAS, WADE, JUDY WILLIAMS, and YOUNG at a fast food restaurant on Chef Menteur Highway. It is further alleged that Attorney A paid Labeaud $7,500.00 on the day of the staged accident. Attorney A then demanded approximately $1,000,000.00 per plaintiff in settlement for THOMAS, WADE, and JUDY WILLIAMS. Attorney A then filed two lawsuits in CDC. Both of the lawsuits filed in CDC by Attorney A were removed to the U.S. District Court for the Eastern District of Louisiana.
Additionally, Attorney A worried about a telephone call made by WADE to Labeaud prior to the staged accident, and contacted THOMAS and WADE to instruct them to “get their stories straight.” During a subsequent meeting, Attorney A gave Labeaud an envelope containing phone records, pleadings, and depositions establishing THOMAS and WADE lied under oath in their September 13, 2018 depositions. Attorney A then met with THOMAS and WADE at an establishment in Thibodaux where Attorney A suggested to THOMAS and WADE a fraudulent scenario to explain a telephone call from WADE to Labeaud prior to the staged accident. THOMAS, WADE, and JUDY WILLIAMS each admitted to providing false testimony in various depositions taken in conjunction with the lawsuits filed by Attorney A. Ultimately, but only after a year of pursuing their fraudulent lawsuits, did THOMAS, WADE, and JUDY WILLIAMS settle their cases for $7,500.00 each.
Also today, LARRY WILLIAMS, admitted he conspired with Labeaud, Mario Solomon (“Solomon”), and Genetta Isreal (“Isreal”) to stage an accident on June 12, 2017, that occurred on Chef Mentuer Highway near the Danziger Bridge in New Orleans. Labeaud and LARRY WILLIAMS planned to stage an automobile accident to obtain money through fraud. During their planning, Labeaud told LARRY WILLIAMS that he had an attorney who would handle everything. LARRY WILLIAMS recruited Isreal and another individual (now deceased) to participate in the fraudulent scheme. LARRY WILLIAMS then borrowed a Chevrolet Trailblazer, and that Labeaud operated the Trailblazer to collide with a 2015 Peterbilt tractor-trailer. After the staged accident, Labeaud fled the scene and LARRY WILLIAMS got behind the wheel to make it appear that he was operating the Trailblazer during the staged accident. Solomon picked up Labeaud after the staged accident. LARRY WILLIAMS told the New Orleans Police Department (“NOPD”) that he was the driver of the Trailblazer and that the tractor-trailer was at fault. After the staged accident, Labeaud introduced LARRY WILLIAMS and Isreal to Attorney A.
LARRY WILLIAMS and Isreal were treated by doctors and healthcare providers at the direction of Attorney A. Attorney A told LARRY WILLIAMS that he would get more money if he had shoulder surgery. On June 12, 2018, Attorney A’s law partner, Attorney B, filed the Larry Williams Lawsuit in Civil District Court (“CDC”) for the Parish of Orleans and on September 14, 2018, Attorney B demanded approximately $60,000.00 in settlement for the aforementioned deceased individual and approximately $56,155.00 in settlement for Isreal. After the suit was filed, LARRY WILLIAMS and Isreal each provided false testimony in depositions taken in conjunction with the lawsuit filed by Attorney B.
THOMAS, WADE, JUDY WILLIAMS, LARRY WILLIAMS, and YOUNG face a maximum sentence of five (5) years. Upon release from prison, THOMAS, WADE, JUDY WILLIAMS, LARRY WILLIAMS, and YOUNG also face a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to each defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. Sentencing in this matter is scheduled for May 21, 2020, before U.S. District Judge Eldon Fallon.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; Assistant U.S. Attorney Shirin Hakimzadeh; Assistant U.S. Attorney Maria Carboni, and Trial Attorney Jared Hasten of the U.S. Department of Justice’s Fraud Section, Health Care Fraud Unit.
First Annual Mississippi Human Trafficking Summit Held in JacksonRead the Press Release
Jackson, Miss. – The U.S. Attorney’s Offices for the Southern and Northern Districts of Mississippi and the Mississippi Department of Public Safety presented the first annual Mississippi Human Trafficking Summit today at the Jackson, Mississippi, Convention Center. More than 400 participants, including local, state tribal, and federal law enforcement officers, prosecutors, victim service providers, nonprofits, policy makers and social workers, attended and participating in the Summit.
“Human trafficking is here in Mississippi, and sadly, it is significantly and adversely impacting the lives of many Mississippians,” said U.S. Attorney Hurst. “Our intent with the Mississippi Human Trafficking Council and with this summit is to train and raise awareness among the public, our nonprofits, and our law enforcement in order to prevent future trafficking, rescue and protect victims, and swiftly prosecute these evildoers. The Department of Justice and the U.S. Attorney’s Offices in Mississippi have made combatting this horrific and reprehensible crime one of our highest priorities in order to keep the public safe.”
“Today has been such a powerful and important day in the fight against human trafficking here in Mississippi,” said U.S. Attorney Lamar. “We have seen a large, diverse and committed group of people come together to hear about the work that has been done so far, to celebrate the successes and milestones of those engaged in the fight, and to make plans for combatting human trafficking crimes in our Stare in the future. With the continued and combined efforts of those present and others who are willing to work together, we can make a difference in the lives of victims and combat these heinous crimes that strike at the heart of basic human dignity.”
The Mississippi Human Trafficking Council was formed in September 2019, and is chaired by an Assistant U.S. Attorney from Northern District of Mississippi, an Assistant U.S. Attorney from Southern District of Mississippi, and the Mississippi Human Trafficking Coordinator, who works for the Mississippi Bureau of Investigation at the Mississippi Department of Public Safety. The mission of the Council is to use a victim-centered, collaborative, and multi-disciplinary model to prevent trafficking, protect victims, and prosecute criminals in all forms of domestic and international human trafficking, to include commercial sex trafficking and labor trafficking for the protection of both adult and minor victims.
Today’s Summit began with opening remarks from Mississippi Governor Tate Reeves, Lieutenant Governor Delbert Hosemann, Mississippi Attorney General Lynn Fitch, Colonel Chris Gillard, Assistant Commissioner of the Mississippi Department of Public Safety, Mississippi Band of Choctaw Indians Tribal Chief Cyrus Ben, U.S. Attorney Chad Lamar of the Northern District of Mississippi, and U.S. Attorney Mike Hurst of the Southern District of Mississippi.
Summit attendees also heard from:
- Bill Woolf, Human Trafficking Programs Director at the Office of Justice Programs within the U.S. Department of Justice;
- Alexandra Perron with A21’s Freedom Center in Charlotte, North Carolina, regarding the upcoming Mississippi Human Trafficking Council Billboard Campaign;
- Council Co-Chairs Kathlyn Van Buskirk - Assistant US Attorney, Southern District of MS, Susan Bradley - Deputy Criminal Chief US Attorney, Northern District of MS, and Ashlee Lucas - Statewide Human Trafficking Coordinator, MS Bureau of Investigation
- Council Subcommittee Chairs:
- Outreach and Public Awareness - Chair: Mandy Davis, Chief of Staff, MSDPS
- Strategic Planning and Trafficking Protocol - Chair: Dr. Tamara Hurst, School of Social Work, University of Southern Mississippi
- Policy and Legislation - Co-Chairs: Angela Cockerham, MS House of Representatives; Lora Hunter, General Counsel, MS Department of Public Safety
- Training - Chair: Paula Broome, MS Attorney General’s Office
- Victim Service - Co-Chairs: Hollie Jeffery, Children’s Advocacy Centers of Mississippi; Heather Wagner, Mississippi State Department of Health, Office Against Interpersonal Violence
- A Human Trafficking Survivor
- U.S. Department of Justice Grantees Relating to Human Trafficking:
- Heather Wagner - Grant - Victim Services
- Ashlee Lucas - Grant - Law Enforcement
- Those Involved in Mississippi Initiatives Addressing Human Trafficking:
- Heather Collins - Statewide Human Trafficking Analyst, Mississippi Bureau of Investigation
- Guy Collins - Master Sergeant, Mississippi Bureau of Investigation, Human Trafficking Special Victim’s Unit
- Nick Brown - Hinds County Sheriff’s Office, FBI Task Force Officer
- Mike Hurst - US Attorney, Southern District of Mississippi
- Chad Lamar - US Attorney, Northern District of Mississippi
- Leslie Williams Fisher, Trial Attorney, U.S. Department of Justice, Criminal Division Child Exploitation & Obscenity Section
The Department of Justice continues to fight human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs. Information on the Department of Justice’s efforts to combat human trafficking can be found here. An update on human trafficking prosecution statistics can be found here.
Information about the Mississippi Human Trafficking Council can be found here.
Federal Jury Convicts Wyoming Man of Distribution of Fentanyl Resulting in DeathRead the Press Release
Anthony Michael Assfy Faces a Mandatory Minimum of Twenty Years in Prison
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Anthony Michael Assfy, 29, of Wyoming, Michigan, was convicted of six federal drug trafficking charges after a three day jury trial. The convictions were for distribution of fentanyl resulting in death, possession with intent to distribute fentanyl and crack cocaine, distribution of heroin and crack cocaine (three counts), and possession with intent to distribute heroin and crack cocaine.
The evidence at trial demonstrated that on August 29, 2018, Assfy sold fentanyl to a Solon Township resident who used the fentanyl, believing it to be heroin, and died. Upon arriving at the overdose scene, detectives from the Kent Area Narcotics Enforcement Team (KANET) found evidence that indicated Assfy was the decedent’s dealer. Law enforcement posed as the decedent to set up a purchase of narcotics from Assfy on August 30, 2018. Assfy arrived at the Grand Rapids deal site and was arrested by law enforcement. In addition to the fentanyl that Assfy intended to deliver to the decedent, law enforcement discovered another 36 grams of fentanyl and nearly 4 grams of crack cocaine concealed on Assfy’s person upon booking him into the Kent County Jail.
After posting bond on his state charges, Assfy continued to deal heroin and crack cocaine until November 2018. He was charged for distributing heroin and crack cocaine to a law enforcement agent on three occasions during this timeframe. On November 13, 2018, law enforcement executed a search warrant on a residence that Assfy used as a deal location. Law enforcement seized another 19 grams of heroin and some crack cocaine, for which Assfy was charged.
"Fentanyl is a powerful synthetic opioid that is 80 – 100 times more potent than morphine and is cheap to produce," said U.S. Attorney Birge. "We are increasingly seeing fentanyl mixed together with heroin or fentanyl being passed off as heroin in our West Michigan communities. Due to fentanyl’s potency, ingestion is often deadly. My office is committed to prosecuting drug dealers that cause deaths to the fullest extent of the law." Anthony Assfy’s sentencing hearing is currently scheduled for June 8, 2020 before Chief Judge Robert J. Jonker. He faces a mandatory minimum term of 20 years and a maximum of life in prison.
This case was investigated by KANET, the Kent County Sheriff’s Department, the
Kentwood Police Department, and the Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorneys Vito S. Solitro and Joel S. Fauson.
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Erie Man Failed to Register as a Sex Offender as Required by LawRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of failure to register under SORNA, United States Attorney Scott W. Brady announced today.
David John Banak, 47, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that Banak traveled to Erie, Pennsylvania after absconding from court supervision in Iowa. After arriving in Erie, Banak failed to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).
Judge Baxter scheduled sentencing for May 28, 2020 at 1:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshal’s Service conducted the investigation that led to the prosecution of Banak.
Elizabeth City Man Sentenced to Imprisonment for Possessing Gun After Spree of Breaking and EnteringsRead the Press Release
RALEIGH — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge Terrence W. Boyle, sentenced TYRESE ANTRON COFIELD, 37, of Elizabeth City to 78 months’ imprisonment, followed by 3 years of supervised release. COFIELD was named in a single-count Indictment on May 9, 2019, charging him with possession of a firearm by a felon. On November 26, 2019, he pled guilty to a single-count Criminal Information charging the same offense.
According to the investigation, in early October 2018, the Elizabeth City Police Department was investigating a string of home and vehicle break-ins that had occurred over the previous several weeks. Detectives reviewed GPS monitoring data from defendant Tyrese COFIELD, who was subject to post-release electronic monitoring from previous breaking and entering (B&E) convictions in state court. COFIELD’s GPS data placed him at the location of numerous break-ins, including 13 open investigations of residential B&E, and seven additional vehicular B&E investigations. The GPS data showed that COFIELD often returned to his residence after visiting the locations of these break-ins.
On October 4, 2018, law enforcement executed a search warrant for COFIELD’s Elizabeth City residence. In COFIELD’s bedroom, they found numerous items that had been reported stolen, including IDs and bank cards belonging to B&E victims. Also in COFIELD’s room, officers found a Taurus 9mm handgun, loaded with one round. Having already sustained over 40 state felony convictions for property, drug, and firearm crimes, COFIELD was prohibited from possessing a firearm.
This case is part of the Project Safe Neighborhoods (PSN Project Safe Neighborhoods (PSN) program. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
The Elizabeth City Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Dominican National Pleads Guilty in Fraudulent Credit Card, ID Document SchemeRead the Press Release
PROVIDENCE – A Dominican national arrested by Pawtucket Police in June 2018, when he and a fellow Dominican national were found to be in possession of stolen data from 18,000 credit cards along with a large array of equipment and materials used to produce fraudulent identification documents and credit cards, pleaded guilty today in U.S. District Court.
Juan Jose Rodriguez-Castro, 36, and a fellow Dominican national, Wilberd Armando Reyes-Castro, 26, were arrested by Pawtucket Police on June 6, 2018, when officers responded to a 911 emergency call for an armed home invasion in progress at a Pawtucket residence.
According to information presented to the court, upon arrival at the residence, Pawtucket Police detained three individuals as they fled out a rear door. It is alleged that jewelry and a watch belonging to individuals inside the apartment were located on the individuals detained by the officers. Officers then entered the apartment to search for a firearm purportedly used in the robbery.
Inside the apartment, officers encountered Rodriguez-Castro and Reyes-Castro, and observed in the dining room a laptop computer, color printers, a laminating machine, a home-made ATM-style card reader, and American Express signature stickers similar to those used on the backs of credit cards.
A further court-authorized search of the residence resulted in the seizure of seven laptops containing credit card numbers of approximately 18,000 individuals. Also seized was equipment used to steal credit and debit card information at gas pumps, a mobile credit card reader, the inside of an ATM, a photo ID card printer, numerous flip phones, a laminating machine, color printers, numerous flash drives, credit card readers and scanners, blank checks, boxes of identification holograms used to make driver’s licenses from the states of Wyoming, Georgia, Indiana, New Jersey, Louisiana, North Carolina, South Carolina, Kentucky, Mississippi, Ohio, Pennsylvania, Florida, Tennessee and Connecticut, three Dominican passports in the names of other individuals, numerous blank credit cards with chips, and numerous other items commonly used in the creation of fraudulent identification documents and access devices.
Juan Jose Rodriguez-Castro’s guilty plea to conspiracy to commit bank fraud and possession of unauthorized access devices is announced by United States Attorney Aaron L. Weisman, Pawtucket Police Chief Tina Goncalves, and Craig A. Marech, Resident Agent in Charge of the Providence Office of the United States Secret Service.
Rodriguez-Castro is scheduled to be sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on April 10, 2020.
Wilberd Armando Reyes-Castro pleaded guilty on December 9, 2019, to aggravated identity theft. He is scheduled to be sentenced on March 12, 2020.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
The matter was investigated by the Pawtucket Police Department and the United States Secret Service, with the assistance of Homeland Security Investigations.
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Dominican National Charged with Selling Fentanyl that Led to Victim’s Fatal OverdoseRead the Press Release
BOSTON – A Dominican national was indicted yesterday in federal court in Boston with distributing fentanyl resulting in death.
Bernardito Carvajal, 27, a Dominican national most recently residing in Haverhill, was indicted on one count of distribution of fentanyl and cocaine resulting in death and one count of distribution of fentanyl. On July 31, 2019, Carvajal was arrested and charged by criminal complaint with one count of possession with intent to distribute fentanyl. He has been in custody since that time.
On or about June 12, 2018, Carvajal sold fentanyl and cocaine in Lawrence to a 26-year-old victim, who died of an overdose after using the drugs. Carvajal continued to sell fentanyl after the fatal overdose, including another sale on July 31, 2019.
“The opioid epidemic has inflicted an unprecedented toll of addiction, suffering, and death on our communities,” said United States Attorney Andrew E. Lelling. “And no one knows this better than the dealers victimizing those struggling with addiction. We will aggressively prosecute every single case where we can link a drug dealer to an overdose death.”
“The state of Massachusetts is faced with a fentanyl crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing this lethal drug and for contributing to loss of life for those battling this addiction need to be held responsible for their actions. In response to the ongoing opioid epidemic, DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
The charge of distributing fentanyl resulting in death provides for a mandatory minimum sentence of 20 years and up to life in prison, a minimum of five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case arose from “Devil’s Highway,” a 10-week coordinated enforcement operation in the Merrimack Valley. The enforcement operation was a coordinated effort by federal, state and local partners to focus on drug distribution activity in the City of Lawrence and between Lawrence and New Hampshire.
U.S. Attorney Lelling, DEA SAC Boyle and Andover Police Chief Patrick Keefe made the announcement. Assistant U.S. Attorneys Elysa Wan and Stephen Hassink of Lelling’s Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Detroit Heroin Dealer Convicted by Federal Jury on Multiple ChargesRead the Press Release
CHARLESTON, W.Va. – A federal jury found a Detroit, Michigan man guilty of conspiracy to distribute heroin, using and carrying a firearm during the heroin conspiracy, and tampering with a witness, announced United States Attorney Mike Stuart. Curtis Watson, also known as “LOW,” conspired with other drug traffickers from Detroit, Michigan and Charleston, West Virginia, to distribute in excess of 700 grams of heroin in the Southern District of West Virginia.
“I commend the work of law enforcement and my prosecution team for securing the conviction of this dangerous Detroit drug dealer,” said United States Attorney Mike Stuart. “Watson peddled a significant amount of heroin throughout southern West Virginia for which he is now being held accountable.”
Watson supplied a residence in the Hernshaw area with a substantial amount of heroin, which would then be sold to drug addicts and dealers. Shortly after the conspiracy began, Watson was losing money and he enlisted other Detroit drug traffickers to travel to West Virginia and sell more heroin. Watson would provide these Detroit drug dealers with firearms to protect the heroin. Upwards of $40,000 was being made in a given day at this residence. One witness described the house similar to a fast-food restaurant. Another witness described selling drugs out of the house from sun up to sunset.
Watson’s conspiracy ended on November 17, 2017, when the Kanawha County Sheriff’s Department responded to the Hernshaw residence because of the drug trafficking activity. Prior to law enforcement arriving, Watson dropped off more heroin and a Hi-Point firearm, and left the area.
After a federal grand jury indicted Watson on November 27, 2018, his first jury trial was scheduled on August 12, 2019. On the day the trial was set to begin, a cooperating witness was threatened by Watson because the witness was coopering with the government. When Watson saw the witness at the federal courthouse, he yelled at the witness, “I got you! I got you!” After the encounter with Watson, the witness became concerned for their safety and was afraid to testify. Subsequently, the federal grand jury returned a superseding indictment against Watson on September 18, 2019, adding a charge for tampering with a witness.
Watson faces mandatory five years and up to life in prison on the firearm offense which, by law, must be served consecutive to the other offenses. He faces mandatory five years and up to forty years on the conspiracy to distribute heroin in excess of 100 grams. Lastly, he faces up to twenty years on the tampering with a witness offense. At a minimum, Watson faces a mandatory minimum of ten years to life in federal prison when he is sentenced in June 2020.
The Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, the Drug Enforcement Administration (DEA), the U.S. 119 Drug and Violent Crime Task Force, the West Virginia State Police, and the Kanawha County Sheriff’s Department conducted the investigation. United States District Judge Irene C. Berger presided over the trial. Assistant United States Attorneys Ryan A. Saunders and Nowles H. Heinrich handled the prosecution.
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Department of Justice, EPA and the State of California Clean Air Act Settlement with Kohler Co. will Reduce Emissions by 3,600 TonsRead the Press Release
Today, the Department of Justice, Environmental Protection Agency (EPA) and the state of California announced a settlement with Kohler Co. (Kohler) resolving alleged violations of the Clean Air Act and California law. Under the terms of the settlement, Kohler will retire unlawfully generated hydrocarbon (HC) and oxides of nitrogen (NOx) emission credits. Retirement of these credits will result in approximately 3,600 tons of HC and NOx emissions reductions. In addition, the company will pay a $20 million civil penalty.
The violations pertain to Kohler’s manufacture and sale of millions of small, nonroad, nonhandheld spark-ignition (small SI) engines that did not conform to the certification applications Kohler was required to submit to the EPA and the California Air Resources Board (CARB). More than 144,000 of the engines were also equipped with a fueling strategy designed to cheat emissions testing standards (commonly referred to as a “defeat device”). Small SI engines are used in lawn mowers, ride-on mowers, commercial landscaping equipment, and generators.
“Today’s settlement holds Kohler accountable for flouting federal law, and evens the playing field for others in the regulated community who invest in compliance programs designed to prevent illegal and harmful emissions to the air,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “This settlement is the result of the Justice Department’s and the EPA’s aggressive investigation of actors who thwart the emissions testing regime, and recognizes that Kohler self-reported some violations and cooperated with the government’s investigation.”
“We applaud the significant results of the work done by the partnership of the DOJ, EPA and CARB in this case,” said U.S. Attorney David L. Anderson of the Northern District of California. “With this successful state and federal cooperation, we can now breathe a sigh of relief that our air quality is being protected. Once again, the results have proved that we all are safer, and we are all better off, when we work together.”
“Today’s settlement will reduce air pollutants by 3,600 tons and require Kohler to implement procedures to help ensure future compliance with environmental regulations,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “The settlement also sends a clear message that EPA will investigate and hold responsible those who seek to illegally circumvent engine emission requirements.”
“One of EPA’s top priorities is preventing vehicle and engine manufacturers from selling products that circumvent emissions requirements,” said EPA Pacific Southwest Regional Administrator Mike Stoker. “Today’s precedent setting settlement sends an unequivocal message to all types of engine manufacturers—from manufacturers of heavy-duty highway engines to manufacturers of small nonroad engines like those at issue in this settlement—that EPA will vigorously investigate and bring companies into compliance to reduce pollution and protect public health.”
“Kohler voluntarily disclosed some of the violations, mitigated the emissions, and agreed to new procedures to ensure future compliance,” said CARB Executive Officer Richard W. Corey. “In addition, Kohler will be funding an innovative program to supply free ultra-clean solar-powered generators to low-income Californians who live in areas that are subject to more frequent utility power outages. The solar-powered generators are capable of running refrigerators or lights, helping ease the impacts of power outages to those affected.”
In December 2015, Kohler self-disclosed to EPA and the CARB that it had been using the wrong test cycle to test many of its small SI engines. EPA and CARB’s subsequent investigation revealed that millions of additional small SI engines were noncompliant.
Examples of additional noncompliance that was discovered include:
- Not fully complying with the test procedures Kohler certified to;
- Failing to comply with the applicable emission limits;
- Failing to age emission-related components for deterioration factor testing;
- Failing to disclose auxiliary emission control devices and adjustable parameters equipped on the engines;
- Making changes to production engines without amending the certification application covering those engines; and
- Failing to comply with the applicable production line testing requirements.
The defeat device Kohler developed and deployed on at least 144,000 electronic fuel-injected small SI engines significantly reduced NOx emissions during certification testing when compared to real-world operation (i.e., ran rich during certification testing but lean during in-use operation). The fueling strategy in the calibration was not disclosed in Kohler’s certification applications and Kohler was aware that the fueling strategy was designed to reduce NOx emissions during certification testing even though the certification results were not representative of real-world operation.
In addition to paying a $20 million civil penalty and retiring HC and NOx emission credits, Kohler has already taken the following steps to prevent future violations. The company has established an independent environmental regulatory compliance team, conducts annual compliance training for engine division employees, and maintains an employee code of conduct and an ethics helpline for employees to report noncompliance. Kohler will convene semiannual meetings with all engine division managers and regulatory personnel to discuss compliance with applicable regulatory requirements and the settlement. Kohler must also conduct annual audits and implement an emissions testing validation plan that includes third-party observation and emissions verification testing. Kohler estimates the compliance measures will cost approximately $3.7 million.
In a separate settlement agreement resolving California-only claims, Kohler will pay an additional $200,000 civil penalty and will fund a program that will supply $1.8 million worth of solar-battery generators to low-income residents in California that live in areas subject to public safety power shutoffs to mitigate wildfire risk.
The proposed settlements, lodged in the U.S. District Court for the Northern District of California, are subject to final court approval. The settlement among the United States, California and Kohler is also subject to a 30-day public comment period. Information on submitting comments is available at https://www.justice.gov/enrd/consent-decrees.
To learn more about this settlement, visit https://www.epa.gov/enforcement/kohler-co-clean-air-act-civil-settlement-information-sheet.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://www.epa.gov/enforcement/report-environmental-violation-general-information.
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.
Department of Justice to Hold Workshop on Section 230 of the Communications Decency ActRead the Press Release
The Department of Justice will hold a public workshop in Washington, D.C. on Feb. 19, 2020, titled “Section 230 – Nurturing Innovation or Fostering Unaccountability?,” to discuss Section 230 of the Communications Decency Act of 1996, its expansive interpretation by the courts, its impact on the American people and business community, and whether improvements to the law should be made.
Drafted nearly 25 years ago in the early years of the internet to protect online businesses in their incipiency, Section 230 limited certain liabilities for interactive computer service providers for third-party content on their platforms. Courts have interpreted the scope of Section 230 broadly, leaving a wide array of online activity immune from lawsuits. Now that the industry has matured, valid questions have been raised regarding the broad scope of Section 230 and whether the immunity is still required in its current form.
Proponents claim that Section 230 immunity led to the flourishing of the internet and the creation of the online ecosystem we see today. Opponents, on the other hand, believe that the broad interpretation of Section 230 has prevented solutions to a variety of problems that continue to proliferate to the detriment of victims, law enforcement, and civil discourse. The Justice Department intends to examine these issues and identify and discuss potential solutions.
The workshop is free and open to the public, and will be held in the FBI Auditorium, 935 Pennsylvania Ave NW, Washington, D.C. 20535, from 9 a.m. Eastern Time to 12:45 p.m. Eastern Time. If you are interested in attending, please register at https://www.justice.gov/ag/webform/section-230-workshop-registration by Feb. 9, 2020. As seating is limited, invitations to attend will be sent to registered participants on a first-come, first-served basis. Members of the press should also email [email protected].
Following the public workshop, the Justice Department will invite stakeholders with diverse perspectives for private listening sessions and roundtables to seek additional input and discuss the problems, benefits, and potential improvements to Section 230. The department will publish readouts on the various perspectives and debate from those meetings.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the department by sending an email to [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
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.