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Wednesday 29 January 2020
Philadelphia City Councilman Kenyatta Johnson and His Wife Indicted in Wide-Ranging Fraud and Bribery Case Also Involving Former Universal Companies ExecutivesRead the Press Release
PHILADELPHIA— First Assistant United States Attorney Jennifer Arbittier Williams announced this morning that former Universal Community Homes Chief Executive Officer and Board President Abdur Rahim Islam, 62, of Philadelphia, PA; former Chief Financial Officer and Secretary of Universal’s Board Shahied Dawan, 68, of Philadelphia, PA; Philadelphia City Councilman Kenyatta Johnson, 46, and his spouse, political consultant Dawn Chavous, 40, both of Philadelphia, PA; were charged today in a twenty-two-count indictment alleging a wide-ranging racketeering conspiracy and related crimes including bribery, honest services fraud, multiple counts of wire fraud, and tax offenses.
The charges were announced at a press conference held by First Assistant U.S. Attorney Williams, FBI Assistant Special Agent-in-Charge Christian Zajac, and IRS Criminal Investigations Special Agent-in-Charge Guy Ficco.
According to the Indictment, the charges stem from criminal schemes orchestrated by Islam and Dawan through Universal Companies which included thousands of dollars in bribe payments to public officials and the misappropriation of hundreds of thousands of dollars from Universal. The Indictment, summarized briefly below, describes the various schemes.
“As alleged in the Indictment, Universal Companies, including its real estate and education arms, constituted a RICO enterprise, hijacked by the defendants Islam and Dawan to engage in a pattern of criminal activity that spanned two states and several years. In pursuing their criminal objectives, Islam and Dawan bribed public officials, including Johnson, with Universal’s funds, and hid those bribes as consulting fees paid through Chavous’ consulting firm,” said First Assistant U.S. Attorney Williams. “These charges are based on a pattern of activity which violates multiple federal and state laws including mail fraud, honest services mail fraud, honest services wire fraud, wire fraud, obstruction of justice, bribery, and use of an interstate facility in aid of racketeering.”
“What we have here is four people pretending their motives were purely civic-minded, when, in fact, they were unlawfully conspiring to enrich themselves,” said Christian D. Zajac, Assistant Special Agent in Charge of the FBI’s Philadelphia Division. “As alleged in the indictment, Abdur Rahim Islam and Shahied Dawan stole nearly half a million dollars from Universal — money for themselves, and to use as bribes to further their financial pursuits. Councilman Kenyatta Johnson accepted their payoffs and based his official actions on those bribes, with Dawn Chavous providing him cover. The FBI is committed to fighting public corruption at every level, and we would ask anyone with knowledge of wrongdoing by public officials to call the FBI, or share the information online at tips.fbi.gov.”
“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “We, along with our law enforcement partners and the Department of Justice, are committed to aggressively investigating individuals who engage in corruption, tax fraud, or other types of white-collar crimes.”
Bribery and Honest Services Fraud in Philadelphia
Islam and Dawan are charged with engaging in a corrupt scheme in which Philadelphia City Councilman Kenyatta Johnson and his spouse, Dawn Chavous, received payments in excess of $66,000 in exchange for Johnson using his public office to take official actions to benefit Islam, Dawan, and Universal, including but not limited to: introducing and voting upon spot zoning legislation related to the Royal Theater, a property formerly held by Universal, and blocking reversion to the City of Philadelphia of another property held by Universal after it failed to develop the property pursuant to its agreement with the City of Philadelphia;
Bribery and Honest Services Fraud in Milwaukee
Islam and Dawan are also charged with engaging in a corrupt scheme in which Michael Bonds, the former president of the Milwaukee Public Schools (MPS) Board of Directors, received approximately $18,000 in exchange for Bonds using his official position to take a series of official actions advantageous to Islam, Dawan, and Universal, including but not limited to: advocating for and voting in favor of Universal’s expansion of charter school operations in Milwaukee, motioning the MPS Board to lease MPS property to Islam, Dawan, and Universal, motioning the MPS Board to approve more favorable lease terms to the benefit of Islam, Dawan, and Universal, and voting in favor of the more favorable lease terms;
Theft and Embezzlement at Universal
Also according to the Indictment, between 2010 and 2016, Islam drew significant sums of money from Universal in the form of bonuses and travel or expense reimbursements, in addition to his annual salary. Although Universal’s Board of Directors was charged with reviewing and approving Universal’s financials and major initiatives on a quarterly or annual basis, defendants Islam and Dawan used their positions as CEO and CFO, respectively, to pay themselves bonuses without the approval or knowledge of the Board. Islam and Dawan paid themselves annual five-figure bonuses even while Universal was hemorrhaging money due to the failed charter school expansion in Milwaukee.
The Indictment also alleges that Islam and Dawan used Universal’s funds to pay Islam excessive, inflated, or outright fraudulent reimbursements for “travel” or other purported “business expenses.” Islam would pad his “expenses” related to the operation of Universal, including its charter schools, with a variety of personal expenses that should not have been reimbursed. For example, Islam submitted his personal car insurance, political contributions, personal vacations, and gym memberships as “business expenses,” which were reimbursed by Universal and also not included as income on his IRS Forms 1040. Islam’s “reimbursements” were reviewed and approved by Dawan outside the standard procedures for Universal and without proper and detailed supporting documentation. Islam and Dawan also authorized Islam to receive large sums of “pocket money” or per diem from Universal. In total, Islam and Dawan stole approximately $463,000.
If convicted as charged, the defendant face the following statutory maximum sentences:
- Islam: 303 years’ imprisonment; 3 years supervised release, a $4,350,000 fine, and a $2,100 special assessment;
- Dawan: 285 years’ imprisonment; 3 years supervised release, a $3,750,000 fine, and a $1,500 special assessment;
- Johnson: 40 years’ imprisonment; 3 years supervised release, a $500,000 fine, and a $200 special assessment;
- Chavous: 40 years’ imprisonment; 3 years supervised release, a $500,000 fine, and a $200 special assessment.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigations Division conducted this investigation. The FBI and IRS received assistance from the Department of Education Office of Inspector General. Assistant United States Attorneys Eric L. Gibson and Mark B. Dubnoff are prosecuting the case. Trial Attorney Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section in the Department of Justice provided assistance.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peoria-area Man Sentenced to 35 Years in Prison for Sexually Exploiting Minor Girls While a Sex OffenderRead the Press Release
PEORIA, Ill. – Senior U.S. District Judge Joe Billy McDade today sentenced Charles A. Hewitt, 48, of Creve Coeur, Ill., to a total of 35 years in prison. The sentence consists of 25 years for the enticement and exploitation of minor girls to engage in sexual acts and an additional, consecutive 10 years for being a sex offender at the time of the crimes. Hewitt was also ordered to pay $3000 in restitution to each of the three victims charged in the indictment. Judge McDade ordered that Hewitt remain on supervised release for a period of 10 years following the completion of his prison term.
On Sept. 25, 2019, Hewitt pleaded guilty to the crimes. Hewitt admitted that he created a false identity on Skout or MeetMe.com beginning in 2017. Hewitt used a false name, age, and profile pictures, appearing to others as a 15-year-old male named “John” to solicit naked photographs and sexual acts from minor female victims. The investigation revealed that Hewitt enticed sexually explicit images from three minor female victims living within the Central District of Illinois, knowing they were minors. Hewitt also met and sexually assaulted two of the minor victims, and threatened to find and kill the horses of a third minor victim if she did not agree to send more sexually explicit images or have sexual intercourse with him. At the time of the crimes, Hewitt was required to register as a sex offender under Illinois law after pleading guilty to aggravated criminal sexual abuse in Woodford county, Ill., in 2014.
Hewitt has remained in the custody of the U.S. Marshals Service since his arrest in September 2018.
The U.S. Secret Service and the Peoria County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Katherine Legge represented the government in the case prosecution.
The case was brought as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Owner of Wildwood Crest Pizza Restaurant Admits Filing False Income Tax ReturnsRead the Press Release
CAMDEN, N.J. – The owner of a Wildwood Crest, New Jersey, pizzeria today admitted five counts of filing a false income tax return, U.S. Attorney Craig Carpenito announced.
Giuseppe D’Arancio, 60, of Cape May Court House, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with five counts of filing a false income tax return for tax years 2012 through 2016.
According to the documents filed in this case and statements made in court:
D’Arancio and another individual owned and operated a pizzeria and kept two sets of accounting books. For tax years 2012 through 2016, D’Arancio knowingly filed false tax returns which underreported the pizzeria’s taxable income by approximately $1.2 million. As a result, D’Arancio failed to pay more than $425,000 in income taxes.
Each of the five counts of filing a false tax return carries a maximum potential penalty of three years in prison, and a fine of the greater of $100,000, twice the gross profits to D’Arancio or twice the gross losses to the victim of his offense. Sentencing is scheduled for May 4, 2020.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Jerome A. Ballarotto Esq., Trenton
Operators of Millbury Plumbing Business Convicted of Running Large Scale Commercial Marijuana Cultivation and Distribution OperationRead the Press Release
BOSTON – The operators of a family-owned plumbing business in Millbury were convicted by a federal jury yesterday of drug and money laundering charges arising from their operation of a large-scale marijuana grow operation.
Thomas Laverty, 39, of Clinton and Charles Laverty, 63, of Millbury, were each convicted following a five-day trial of conspiring to cultivate more than 100 marijuana plants; conspiracy to launder money; and cultivating marijuana and possessing marijuana with intent to distribute. The defendants are scheduled to be sentenced on May 19, 2020.
Earlier this month, Andrea Laverty, 63, of Millbury, pleaded guilty to conspiring to cultivate marijuana and conspiring to launder money. She is scheduled to be sentenced on April 9, 2020.
Charles, Thomas and Andrea Laverty used their business, Chuck Laverty & Son Inc., as a front for a large-scale, commercial marijuana cultivation and distribution operation. The defendants utilized Laverty & Son vehicles, bank accounts and locations to facilitate marijuana manufacturing, storage and distribution. Every week, numerous Laverty & Son workers harvested 20 marijuana plants from the commercial warehouse. Workers then brought the harvested crop to the residence of Charles and Andrea Laverty to be dried, with a goal of producing 8 – 10 pounds of dried marijuana per week. The dried marijuana was sold by Charles Laverty in large quantities for approximately $2,400 per pound.
On Oct. 17, 2017, law enforcement officers executed two search warrants: one at Laverty and Son’s business warehouse in Clinton, which was attached to Thomas Laverty’s residence, where agents found a commercial-style marijuana grow operation; and another at the residence of Charles and Andrea Laverty in Millbury, where agents found a large quantity of marijuana being dried and processed, as well as another marijuana grow operation.
On the drug conspiracy charge, Thomas Laverty faces a sentence of up to life in prison, between eight years and life of supervised release and a fine of $8 million, and Charles and Andrea Laverty face up to 40 years in prison, between four years and life of supervised release and a fine of $5 million. On the money laundering charge, each defendant faces a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Thomas Laverty also faces a charge of theft of government funds in connection with allegations that he received Supplemental Nutrition Assistance Program (“SNAP”) benefits while concealing the money he earned from the family’s drug business. On this charge, Thomas faces a sentence of up to five years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Bill Abely and Phil Cheng of Lelling’s Criminal Division are prosecuting the case.
Omaha Woman Sentenced for Conspiracy to Distribute HeroinRead the Press Release
United States Attorney Joe Kelly announced that Makayla Morrissey, 33, of Omaha, Nebraska, was sentenced on January 29, 2020, to 15 months in prison by United States District Judge Robert F. Rossiter, Jr. for conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. There is no parole in the federal system. Following her release from prison, Morrissey will serve three years of supervised release. She will also forfeit $11,470.00 in U.S. currency.
Law enforcement officers did two controlled buys and executed searches on Morrissey’s residence and recovered more than 100 grams of heroin and $11,470 in U.S. currency. The defendant was involved with other individuals in buying and selling heroin.
This case was investigated by the Omaha Police Department.
Ohio man sentenced to nearly twelve years for illegally possessing a firearm and violating previously imposed federal supervisionRead the Press Release
Deshaun A. Jones, 40, was sentenced for being a felon in possession of a stolen firearm and ammunition. Judge John R. Adams sentenced Jones to 120 months of incarceration and three years of supervised release. The Judge also imposed a 21-month term of incarceration to be served consecutively because Jones violated the terms of his current supervision when he was convicted of this crime.
After a three-day jury trial in December of 2019, Jones was found guilty of being a Felon in Possession of a Firearm. The criminal charges arose from Deshaun A. Jones possessing a firearm, which he discharged into an occupied residence in an Akron, Ohio neighborhood on the night of October 1, 2018. Neighbors complained to police after hearing gunshots and noticing Jones screaming in the street. A review of Jones’ criminal record revealed he was prohibited from possessing a firearm because of prior felony convictions.
Jones possessed the firearm and ammunition knowing he had previously been convicted of crimes punishable by imprisonment for more than one year. Those crimes included a 1999 state conviction for Possession of Cocaine, a 2005 state conviction for Assault, a 2006 state conviction for Trafficking in Cocaine, a 2006 state Conviction for Trafficking in Heroin, and a 2009 federal conviction for Felon in Possession of a Firearm.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Akron Police Department. The matter was prosecuted by Assistant U.S. Attorneys Christopher J. Joyce and Ranya Elzein.
Ohio man sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Tyler Estep, of Galloway, Ohio, was sentenced today to three years probation for drug distribution, United States Attorney Bill Powell announced.
Estep, age 32, pled guilty to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances” in February 2019. Estep admitted to conspiring with others to distribute methamphetamine, heroin, cocaine, and cocaine base in Wetzel County, West Virginia, as well as Ohio and Georgia from July 2015 to April 2018.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
North Carolina Man Charged with Child Exploitation CrimesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brendon Rothrock, age 21, of Kannapolis, North Carolina, formerly of Lewisburg, Pennsylvania, was indicted on January 28, 2020, by a federal grand jury on child exploitation charges.
According to United States Attorney David J. Freed, the indictment alleges that Rothrock aided and abetted the use of a minor to produce child pornography between January and February 2018, and received images of child pornography in February 2018. The indictment also seeks forfeiture of all electronic equipment used to take and transmit those images.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments and Criminal Informations 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 production of child pornography is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for receipt of child pornography is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Jersey Man Pleads Guilty in Federal Court to Holly Hill ArsonRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Marvin Leroy Smith-Capers, Jr., 37, of Newark, New Jersey, pleaded guilty in federal court to arson. United States District Court Judge Mary Geiger Lewis presided over the hearing and will sentence Smith-Capers at a later date.
According to facts presented to the court, on January 8, 2018, just after midnight, Smith-Capers set fire to Joy’s Touch of Class in downtown Holly Hill after spending much of the previous two hours stealing merchandise from the store. The flames spread to two adjacent businesses, Goldstein’s and the Super 10, causing damage to all three in excess of $1 million.
Holly Hill police officers first noticed suspicious activity when the white GMC Yukon driven by Smith-Capers recklessly pulled into the road opposite their direction of travel. They followed the Yukon, which then accelerated down Railroad Street, ultimately losing control. At the accident scene, officers discovered the overturned Yukon, an ejected and unresponsive Smith-Capers, and merchandise scattered about. This merchandise was traced back to Joy’s.
Smith-Capers was also linked to the scene of the fire through the ankle monitor he was wearing as part of a previous probationary sentence. GPS data tracked Smith-Capers as he moved back and forth between the store and his vehicle as he loaded the Yukon with stolen merchandise.
Smith-Capers faces a minimum term of five years in federal prison, and a maximum of 20 years. He is also subject to a maximum $250,000 fine, and he will be responsible for restitution to the store owners.
The Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Holly Hill Police and Fire Departments, the Orangeburg County Fire District, and South Carolina Law Enforcement Division investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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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.
New Haven Narcotics Distributor Sentenced to 46 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEFFREY BRAZIER, 50, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 46 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
Investigators identified Brazier as a significant distributor of both heroin and crack cocaine.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging Brazier and 24 others with federal narcotics offenses related to the distribution of crack cocaine, cocaine and heroin.
Brazier has been detained since his arrest on July 10, 2019. On November 12, 2019, he pleaded guilty to conspiracy to distribute, and to possess with intent to distribute cocaine base (“crack”) and heroin.
Brazier’s criminal history spans more than 30 years and includes convictions for narcotics distribution and assault offenses. At the time of his arrest in this case, he was on parole out of New York for a drug-related offense.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Elena L. Coronado.
Natick Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Natick man was sentenced yesterday in federal court in Boston for possessing child pornography.
Joshua Bemis, 28, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six years in prison and five years of supervised release. In October 2019, Bemis pleaded guilty to one count of possession of child pornography and one count of receipt of child pornography. Bemis was arrested and charged in November 2018.
Federal authorities received information from law enforcement in the United Kingdom regarding an individual – whose IP address was traced to Bemis’ Natick residence – who had posted child pornography on a photo sharing website. Law enforcement subsequently executed a search warrant and seized a laptop computer and separate hard drive, both of which contained numerous videos of children, including some that depict the rape of children as young as seven-years-old.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Natick Police Chief James G. Hicks made the announcement today. Assistant U.S. Attorney David G. Tobin prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Morgantown Pharmacist sentenced to 10 years for drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Scott D. Tingler, a Morgantown, West Virginia pharmacist, was sentenced today to 121 months incarceration for illegally distributing oxycodone, U.S. Attorney Bill Powell announced.
Tingler, age 41, pled guilty to one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice” and one count of “False Tax Return” in May 2019. Tingler admitted to conspiring with others to distribute more than 7,400 grams of oxycodone in Monongalia County and elsewhere from August 2014 to August 2018. Tingler also admitted to filing a false tax return in April 2015, grossly understating his taxable income.
“Too many lives have already been lost in this great state to opioids. We must hold those who are sworn to help the sick and injured accountable when they choose to break their oath and the law. I’ve said it before, but a white coat will not protect you from prosecution if you are illegally peddling pills or other drugs,” said Powell.
Tingler was ordered to pay $507,942.42 in restitution to the IRS and former employees. A money judgment was also made in the amount of $1,845,000.
As a part of the plea agreement, Tingler agreed to relinquish his pharmacy license and not seek to reinstate the same, and agreed to not seek employment in any position that would require or permit him to handle or dispense controlled substances during any period of incarceration or supervised release.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Internal Revenue Service Criminal Investigative Division, the Drug Enforcement Administration Tactical Diversion Squad, the Morgantown Police Department, the Harrison County Sheriff’s Office and West Virginia State Police BCI investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican National Sentenced for Transporting Illegal AliensRead the Press Release
BEAUMONT, Texas – A 46-year-old Mexican national illegally in the United States has been sentenced to federal prison for immigration violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Joel Sanchez-Guzman pleaded guilty on June 4, 2019, to transporting illegal aliens and illegally reentering the United States after having been deported. Sanchez-Guzman was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark. He was also ordered to submit to forfeiture of $1,300.
According to information presented in court, on Jan. 25, 2019, Sanchez-Guzman was stopped for a traffic violation by Nacogdoches Police on U.S. 59. During the traffic stop, Sanchez-Guzman told law enforcement officers that he had received approximately $900 to transport six adult male passengers from Houston, Texas to Atlanta, Georgia. . Sanchez-Guzman was released at the time pending further investigation.
On Feb. 16, 2019, Sanchez-Guzman was again stopped by Nacogdoches Police on U.S. 59 for a traffic violation and at the time was transporting eight individuals he knew to be illegally in the United States. Sanchez-Guzman was arrested for this offense as well as for the January incident. He was indicted by a federal grand jury on Mar. 6, 2019, and charged with smuggling illegal aliens and reentry as a previously deported alien.
This case was investigated by Homeland Security Investigations/Immigration and Customs Enforcement HSI/ICE and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Mexican Man Who Possessed a Fraudulent Social Security Card Sentenced to PrisonRead the Press Release
A Mexican man who possessed false identification documents was sentenced today to five months in federal prison.
Ivan Ruiz-Nino, age 39, a citizen of Mexico illegally present in the United States and living in West Liberty, Iowa, received the prison term after a September 19, 2019, guilty plea to one count of unlawful possession of identification documents.
In a plea agreement, Ruiz-Nino admitted that in February 2019, he possessed and used a fraudulent social security card and a fraudulent permanent resident card, also known as a “green card,” when completing paperwork to obtain employment in Stanwood, Iowa. The account numbers on the identification documents were assigned to other people.
Ruiz-Nino was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ruiz-Nino was sentenced to five months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Ruiz-Nino is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-77.
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Manchester Man Sentenced to 90 Months for Drug Trafficking and Firearm OffensesRead the Press Release
CONCORD - Brandon Andrade, 29, of Manchester, was sentenced to 90 months in federal prison for drug trafficking and possessing a firearm in furtherance of drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in December of 2018, the Manchester Police Department began an investigation after receiving information from a confidential source that Andrade was dealing in large quantities of cocaine, heroin and fentanyl throughout Manchester.
On January 2, 2019, a cooperating individual bought approximately three grams of crack cocaine and approximately ten grams of fentanyl from Andrade. During the drug transaction, Andrade was armed with a handgun.
During a vehicle stop, Manchester police officers took Andrade into custody. An officer searched Andrade and found approximately 23.17 grams of fentanyl, .136 grams of cocaine base, and $1903. Shortly after the arrest, Manchester police officers executed a search warrant on Andrade’s residence and seized a Ruger.380 pistol, 25.64 grams of cocaine base, and approximately 250.8 grams of fentanyl.
Andrade previously pleaded guilty on September 30, 2019. In addition to his prison sentence, Andrade forfeited the firearm, ammunition, and over $2,000 to the United States.
“Drugs and guns are a potentially deadly combination,” said U.S. Attorney Murray. “Armed drug dealers are a serious threat to public safety. To protect communities in the Granite State, we will not hesitate to seek lengthy prison sentences for drug traffickers who use or possess guns.”
“Gun and drug crimes are a scourge on our communities and hold good citizens hostage in their homes. Everyone deserves a community where they feel safe,” said Special Agent in Kelly D. Brady. “ATF is committed to working with our law enforcement partners to make sure they have it. We will continue to use our resources to take armed drug dealers off our streets and put them behind bars where they belong.”
“Getting a known drug dealer like Brandon Andrade off the street is a great accomplishment,” says Manchester Police Chief Carlo Capano, “The Manchester Special Enforcement Division worked long hours to investigate this individual and this positive result is a testament to the hard work this agency does every day as we work diligently to keep our city safe.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Joachim Barth and Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
This case also is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Local man gets significant prison time for multiple child pornography chargesRead the Press Release
BROWNSVILLE, Texas – A 26 year-old man has been ordered to federal prison following his convictions of receipt, possession and distribution of child pornography, announced U.S. Attorney Ryan K. Patrick.
Pedro Angel Garcia, Brownsville, pleaded guilty May 22, 2019.
Today, U.S. District Judge Rolando Olvera Jr. sentenced Garcia to 78 months for the distribution conviction. He also received 78 months for the receipt and possession counts, respectively. The sentences will all run concurrently. Garcia will then serve 35 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Garcia will also be ordered to register as a sex offender.
In October 2017, authorities learned of a Facebook user who appeared to be sending child exploitative material via the social media platform. The investigation led them to an IP address and telephone number and eventually to Garcia’s residence in Brownsville.
Law enforcement executed a search warrant and seized his personal computer. Forensic analysis resulted in the discovery of approximately 29 images and one video of child pornography in Garcia’s possession.
Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations-Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Lawrence + Memorial Hospital Agrees to Comply with ADA Regarding Deaf and Hard of Hearing PatientsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the government has reached a settlement agreement under the Americans with Disabilities Act of 1990 (“ADA”) with Lawrence + Memorial Hospital (“L+M”) in New London, an affiliate of Yale New Haven Health Services Corporation, regarding L+M’s provision of effective communication to its deaf and hard of hearing patients.
This matter was initiated upon receipt of a complaint filed with the U.S. Attorney’s Office for the District of Connecticut by Disability Rights Connecticut. Disability Rights Connecticut filed the complaint on behalf of an individual (“the complainant”) who is profoundly deaf and uses American Sign Language as her primary means of communication. The complainant alleges that she was referred to the hospital for an appointment and, when she arrived at the hospital at the scheduled time, there was no interpreter present despite the hospital having provided her with an interpreter at a past appointment. At the time of appointment, the complainant requested an interpreter. The hospital did not provide an interpreter for the complainant at any time during her appointment. Because she was not provided with a qualified interpreter, the complainant alleges she was not able to effectively communicate with the hospital’s staff, including the healthcare providers providing her care.
Title III of the ADA requires places of public accommodation to provide appropriate auxiliary aids and services, such as qualified interpreters, where necessary to ensure effective communication with individuals with disabilities. Places of public accommodation are prohibited from requiring an individual with a disability to bring another individual to interpret for him or her. Similarly, places of public accommodation may not charge a surcharge to individuals with disabilities for measures, including auxiliary aids and services, like interpreters, that are required to provide the individual with a disability with nondiscriminatory treatment under the ADA. As a hospital, L+M is a public accommodation under Title III of the ADA and its facility is a place of public accommodation.
The settlement agreement resolves the complaint received by the government that L+M violated Title III of the ADA by failing to provide effective communication to the complainant. The terms of the settlement agreement require L+M to assess patients and/or companions to determine if auxiliary aids or services are required for effective communication. Whenever it is necessary to ensure effective communication for those individuals, L+M will provide appropriate auxiliary aids and services, including qualified interpreters, free of charge to patients or companions who are deaf or hard of hearing. L+M will also record the need for auxiliary aids and services for patients or companions in the patient’s medical record so that hospital personnel can provide the auxiliary aids and services at the patient’s subsequent visits. The hospital will notify the public regarding its policy on the availability of auxiliary aids and services by posting signs in the hospital facility, putting notice on its website, and including information in its patient handbook. L+M will also develop and implement a grievance resolution procedure regarding effective communication and provide training regarding the provision of auxiliary aids and services to all L+M hospital personnel who have direct contact with patients or companions.
In addition, L+M will compensate the complainant in the amount of $8,500.
The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“This matter demonstrates the commitment of this office to ensuring that deaf and hard of hearing individuals are able to effectively communicate with their healthcare providers,” stated U.S. Attorney Durham. “From the beginning of this investigation, Lawrence + Memorial has demonstrated a commitment to addressing the Americans with Disabilities Act issues raised in this matter and we are pleased to have reached this comprehensive settlement agreement with the hospital.”
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Lancaster Man Sentenced for FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Dillon, 55, of Lancaster, NY, who was convicted of conspiracy to commit wire fraud, was sentenced to serve 52 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $5,245,862.
Assistant U.S. Attorneys Douglas A. Penrose and MaryEllen Kresse, who handled the case, stated that between May 2010 and November 2013, Dillon conspired with others fraudulently to obtain money and property from investors. As part of the scheme, Dillon and co-conspirator Gilbert Lynagh formed two companies – i2i Capital LLC and i2i Settlement Partners LLC – which were incorporated in Delaware but listed a business address in Lancaster, NY.
Thereafter, Dillon, Lynagh, and other members of the conspiracy caused 27 victims to invest over $5,000,000 in i2i Capital and/or i2i Settlement Partners. False and fraudulent representations were made to victims regarding the nature of the investment and the associated risks, duration, and rates of return. Victim funds were wire transferred from the victim’s bank accounts to bank accounts controlled by Dillon and Lynagh at Alliance Bank in Oneida, NY.
The majority of victim funds were utilized by Dillon, Lynagh, and other members of the conspiracy in a manner that was not authorized by the victims, including for personal use. None of the victims received the promised return on their investments, and none saw the return of their original investment funds as promised by Dillon, Lynagh, and other members of the conspiracy. As a result, at least five investors suffered substantial financial hardship by losing retirement or other savings or investment funds.
Gilbert Lynagh was convicted for his role in the conspiracy in July 2016. Another co-conspirator, Leonard Smith, was convicted for his role in the scheme in August 2019 and is awaiting sentencing.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gary Loeffert.
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Kenner Woman Pleads Guilty to Failure to Pay FICA TaxesRead the Press Release
NEW ORLEANS - United States Attorney Peter G. Strasser announced today that defendant MARTHA BUEZO MARTINEZ (“MARTINEZ”), age 49, of Kenner, LA, pled guilty to failing to account for and pay over employment taxes to the Internal Revenue Service, in violation of Title 26, United States Code, Section 7202.
According to court documents, MARTINEZ was the President, Director, and sole officer of Infinity Construction Resources, Inc. From on or about March 2013 (1st quarter of 2013) to December 2017 (4th quarter of 2017), MARTINEZ, through Infinity, failed to pay over to the United States Internal Revenue Service approximately $272,096 in FICA taxes.
The court set sentencing in this matter for April 28, 2020. For Court 2, MARTINEZ faces a maximum term of imprisonment of five (5) years, up to a $250,000 fine, up to three years supervised release following any term of imprisonment, and a $100 special assessment fee.
This matter was handled by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Juvenile Carjacker Sentenced to 84 Months in PrisonRead the Press Release
St. Louis, MO – Timothy Blassingame, 19, of Belleville, IL, was sentenced to 84 months in prison for armed carjacking. Blassingame appeared today before U.S. District Judge Ronnie L. White.
According to court documents, on May 31, 2018, at approximately 4:30 p.m., victim R.W. was sitting in his 2003 Trailblazer at the BP station at 1401 Chouteau Avenue in the City of St. Louis. Timothy Blassingame and another male, Andre King, approached R.W. King pointed a revolver at R.W. and ordered R.W. out of the vehicle. Blassingame and King took R.W.’s cell phone and drove off in the Trailblazer.
Later that evening, East St. Louis Illinois police observed the stolen Trailblazer and attempted to stop it. Blassingame and King led police on a high-speed pursuit from East St. Louis, Illinois into St. Louis, Missouri. They also rammed a police car during the pursuit, which ended after the Trailblazer crashed near Jennings Station Road in North St. Louis County. Both Blassingame and King attempted then flee on foot but were eventually apprehended by police. Blassingame was 17 years old at the time he committed these crimes.
Blassingame pleaded guilty in July to one count of carjacking and another count of brandishing a firearm in furtherance of a crime of violence. This prosecution and 84-month sentence were part of a coordinated effort by the United States Attorneys’ Offices for the Eastern District of Missouri and Southern District of Illinois. More specifically, Blassingame’s sentence was ordered to be served consecutively to any sentence imposed in the Southern District of Illinois. Those proceedings, which charge Blassingame and King with interstate transportation of a stolen vehicle and armed robbery, remain on going.
“To the young people in our community, know that you have a choice when it comes to guns: Pick one up or put it down. We want you to put it down,” said United States Attorney Jeff Jensen after today’s sentencing. “In the last two years, this office has doubled the number of federal prosecutions of individuals who have chosen to pick-up firearms and commit violent acts with them. This specifically includes increased prosecution of juveniles.”
Jensen continued, “If you choose to take other people’s property and endanger the citizens of this district by using a firearm, federal prosecution, a lengthy prison sentence far away from the Saint Louis area, and intense court supervision afterwards awaits.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Saint Louis Metropolitan Police Department; Saint Louis County Police Department; North County Police Cooperative; Illinois State Police; and East Saint Louis Police Department investigated this case which was prosecuted in cooperation with the United States Attorney’s Office for the Southern District of Illinois.
Justice Department Settles Lawsuit Against the South Dakota Department of Social Services Alleging Intentional Race Discrimination Against Native American Job Applicants at the Pine Ridge ReservationRead the Press Release
The Justice Department announced today that it has reached a settlement with the South Dakota Department of Social Services (Department of Social Services or DSS), a state agency that assists South Dakotans seeking public benefits, resolving allegations that DSS intentionally discriminated against Native American job applicants at its Pine Ridge Indian Reservation Office. Under the terms of the settlement agreement, subject to court approval, the Department of Social Services will pay $350,000 in back pay and other monetary relief to approximately 60 Native American job applicants. The Department of Social Services also must comply with reporting requirements regarding its hiring of Specialists at the Pine Ridge Office.
“The Civil Rights Division is committed to enforcing the nation’s anti-discrimination laws on behalf of all Americans, including Native Americans, to make sure they are—as the Reverend Dr. Martin Luther King challenged 56 years ago—judged by the ‘content of their character’ and not the ‘color of their skin,’” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement helps move our nation towards Dr. King’s dream of making opportunity available to all unfettered by unlawful discrimination. It provides monetary relief for Native American applicants, ensures equal opportunity to compete for jobs, and establishes a reporting and oversight process to guard against racial discrimination in the future.”
The amended complaint, filed in November 2016 in the U.S. District Court for the District of South Dakota, alleged that in failing to select qualified Native American applicants for several positions at DSS’s Pine Ridge Office, DSS engaged in a pattern or practice of discrimination that violated Title VII of the Civil Rights Act of 1964, as amended. Title VII is a federal statute that prohibits employment discrimination on the basis of race, sex, color, national origin, and religion.
According to the amended complaint, in October 2010, Cedric Goodman, a Native American job candidate, applied for a Specialist position at DSS’s Pine Ridge Office. DSS determined that Goodman was qualified for the position and offered him an interview. After interviewing Goodman and other qualified Native American candidates, DSS removed the job posting and hired no one. The next business day, however, DSS re-posted the position and ultimately selected a white applicant with qualifications inferior to Goodman’s. In addition to the intentional discrimination claim involving Goodman, the United States also alleged that denying Goodman’s application was part of an intentional pattern or practice of race discrimination by DSS, where the Pine Ridge Office repeatedly removed job postings and used subjective, arbitrary hiring practices to disfavor qualified Native American applicants for Specialist positions.
Goodman originally filed a charge of race discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Minneapolis Area Office, in its Chicago District, investigated the matter and found reasonable cause to believe that DSS discriminated against Goodman and a class of similarly situated Native American applicants. After unsuccessful conciliation efforts, the EEOC referred the matter to Department of Justice’s Civil Rights Division.
The Civil Rights Division brought this lawsuit as part of a joint effort to enhance collaboration between the Justice Department and the EEOC in the vigorous enforcement of Title VII. Additional information about the Division, including copies of the amended complaint and the settlement agreement can be found online on its website at www.usdoj.gov/crt.
This lawsuit was handled by Trial Attorneys Jeff Morrison, Alisa Philo, Jen Swedish, and Shayna Bloom in the Employment Litigation Section of the Department of Justice’s Civil Rights Division.
Jury in Las Cruces, N.M. convicts man from Roswell, N.M. of federal child pornography chargesRead the Press Release
ALBUQUERQUE, N.M. – A federal jury in Las Cruces, New Mexico returned a verdict on January 28 convicting Dain Justin Adams, 38, of Roswell, New Mexico, of child pornography charges including distribution, receipt, and possession of sexually explicit material.
A grand jury previously returned a fourth superseding indictment on Dec. 17, 2019, charging Adams with two counts of distribution and one count each of possession, receipt, and conspiracy to produce visual depictions of minors engaged in sexually explicit conduct. The indictment also charged Adams with one count of traveling across state lines with the intent to commit aggravated sexual abuse. The conduct charged in the indictment covered the period from July 3, 2012, to June 27, 2018. The jury returned a guilty verdict convicting Adams of each count except for traveling across state lines with the intent to commit aggravated sexual abuse.
According to public court records and trial testimony, law enforcement officers identified an internet protocol address at a residence in Roswell that was being used to access child pornography. Officers traced this IP address to Adams’s home. Law enforcement executed a search warrant at the location on June 27, 2018, and found child pornography on electronic devices, including computers. The evidence at trial connected Adams to this child pornography.
A co-defendant in the case, Jade Tiffany Laurezo, 35, Maigao Iloilo, Philippines previously pleaded guilty on Oct. 31, 2019, to production of a visual depiction of a minor engaged in sexually explicit conduct. Laurezo testified at trial about chat messages she exchanged with Adams discussing their plans to acquire children as sex slaves and sexually abuse these children together.
Adams in currently in custody awaiting sentencing. He faces 15 to 30 years in prison for conspiracy to produce, 10 to 20 years in prison for possession, and five to 20 years in prison for distribution of visual depictions of minors engaged in sexually explicit conduct. Laurezo is also scheduled to be sentenced at a later date.
The Roswell office of the FBI investigated this case with assistance from the FBI’s Las Cruces office, Homeland Security Investigations, the Chaves County Sheriff’s Department, the Las Cruces Police Department, and the Regional Computer Forensics Lab in Albuquerque. Assistant U.S. Attorneys Marisa A. Ong and Dustin C. Segovia of the Las Cruces Branch Office are prosecuting the case.
Jury convicts Shelby woman of firearms crimes in gun purchase for juvenileRead the Press Release
GREAT FALLS – A jury on Tuesday convicted a Shelby woman of firearms crimes for lying while buying a handgun and then giving it to a juvenile, U.S. Attorney Kurt Alme said.
The jury found Susan Kaytlin Scott, 52, of Shelby, guilty of false statement during a firearms transaction and of transfer of a handgun to a juvenile, as charged in an indictment. Scott faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the false statement count and a maximum one year in prison, a $100,000 fine and one year of supervised release on the transfer to a juvenile count.
U.S. District Judge Brian M. Morris set sentencing for June 4 and continued Scott’s release.
“Federal firearms laws are in place to protect us from dangerous use. Lying to buy a handgun and then giving it unsupervised to a youth who points the loaded firearm at people is a serious offense. I want to thank Assistant U.S. Attorney Paulette Stewart, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department and the Toole County Sheriff’s Office for investigating and prosecuting the case.” U.S. Attorney Alme said.
In evidence presented at trial, the prosecution said Scott bought a Taurus 9mm handgun for a 17-year-old boy on Nov. 21, 2018 at Scheels in Great Falls. In required background paperwork, Scott answered that she was the actual transferee/buyer of the firearm. However, Scott bought the handgun for the boy as an early birthday present. The boy and his friend were present during the purchase, and Scott used the boy’s debit card for the purchase. Following the sale, the boy kept the handgun, and ammunition, at another residence.
A juvenile witness told investigators that the boy kept the handgun in a holster in his bedroom and had a magazine loaded in the pistol but not a round in the chamber. The boy and three friends would take out the handgun, point it at things in the room or at each other. The witness also reported that the boy pointed the handgun at Scott during an argument.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the ATF, Great Falls Police Department and Toole County Sheriff’s Office.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Judge in Del Rio Sentences Two San Antonio Sisters to Federal Prison for Attempting to Smuggle Methamphetamine into the U.S. from MexicoRead the Press Release
In Del Rio yesterday afternoon, a federal judge sentenced 21–year-old Mary Ann Lara and her sister, 24-year-old Melissa Janet Lara, both of San Antonio, to 24 years in federal prison followed by five years of supervised release for their scheme to smuggle methamphetamine into the U.S. from Mexico, announced U.S. Attorney John F. Bash, Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison terms, U.S. District Judge Alia Moses ordered that Mary Ann pay a $6,000 fine; Melissa, a $4,500 fine.
On July 17, 2019, a federal jury convicted the sisters of importation of methamphetamine; conspiracy to possess with intent to distribute methamphetamine; and, possession with intent to distribute methamphetamine. Jurors also convicted Mary Ann of conspiracy to import methamphetamine. Evidence presented during trial revealed that on April 1, 2018, the defendants were attempting to enter the U.S. at the Eagle Pass Port of Entry. Customs agents sent the sisters to secondary inspection where investigators discovered approximately 38 kilograms of methamphetamine in non-factory compartments attached to the vehicle’s wheels.
“The sentence imposed on the Lara sisters sends a clear message that there are serious consequences to trafficking controlled substances,” said HSI San Antonio Special Agent in Charge Folden. “HSI along with our law enforcement partners, will continue to seek out and bring to justice those involved in the illicit drug trade.”
HSI, along with U.S. Customs and Border Protection, investigated this case. Assistant U.S. Attorney Amy Marie Hail prosecuted this case on behalf of 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.Indictment Charges Members of Inland Empire Drug Trafficking Ring with Transporting Kilograms of Cocaine by Mail and TrucksRead the Press Release
LOS ANGELES – Authorities this morning arrested 16 defendants linked to an Inland Empire-based drug trafficking ring that used the U.S. Postal Service and private vehicles to ship large quantities of cocaine and other narcotics to buyers across the country.
A 17-count indictment charges a total of 24 defendants with conspiracy to distribute controlled substances. The indictment also charges some of the defendants with distribution of controlled substances, possession with intent to distribute controlled substances, and being felons in possession of ammunition.
Over the course of the three-year investigation, authorities across the United States seized a total of approximately 77 kilograms of cocaine, nine kilograms of heroin, 150 pounds of methamphetamine, 989 fentanyl pills, 19 firearms, and $1,894,869 in suspected drug proceeds.
Thirteen of the defendants arrested today are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. An additional three defendants were arrested in Ohio and South Carolina.
Between October 2016 and May 2018, members of the conspiracy mailed large quantities of narcotics from post offices throughout Riverside and San Bernardino counties to recipients nationwide – including New York, Ohio, Michigan, and South Carolina – in exchange for large cash payments, often in excess of $100,000, according to the indictment.
The lead defendant in this case – Ricardo Alejandro Bazan, a.k.a. “Ricky,” “Chuco” and “Chu,” 41, of Riverside – allegedly directed the drug trafficking ring. The indictment alleges that illicit drug proceeds were sent back to California and were ultimately delivered to Bazan.
Co-defendants Doroteo Mendoza Torrez, a.k.a. “Guerro” and “Guerito,” 57, of Eastvale, and Edulfo Leyva Perez, a.k.a. “Gallo,” 54, of San Jacinto, allegedly arranged for narcotics to be shipped from Mexico and Colombia to Southern California.
Bazan then provided drugs to Noel Granados, a.k.a. “Big Show,” 40, of Moreno Valley, who arranged for the drugs to be shipped to co-conspirators in other states via U.S. mail and private trucks, according to the indictment. Granados allegedly handled the ring’s day-to-day operations, including the logistics of mailing drug parcels, sending drugs via trucks, and receiving drug proceeds sent back to California.
Estevan Ortiz, a.k.a. “Stevie” and “Wonder,” 39, of Hesperia, allegedly built hidden compartments in vehicles for the purpose of concealing narcotics and drug proceeds.
One defendant, Jonathan Darnell Carey, 41, of Dallas, Texas, mailed at least 36 kilograms (79.4 pounds) of cocaine from post offices in San Bernardino County to recipients in Ohio, Michigan, Tennessee, and New York, according to the indictment. Carey also allegedly received a USPS parcel containing between $125,000 and $200,000 in drug proceeds on December 30, 2016 in Victorville, and a second parcel containing approximately $185,185 in drug proceeds on April 4, 2017. In addition to the drug distribution conspiracy count, Carey faces five additional charges of distribution of cocaine.
Bazan also is charged with knowingly distributing to Carey and another co-conspirator approximately 15 kilograms (33.1 pounds) of cocaine on March 31, 2017 in Riverside County, and with arranging the delivery of approximately 19 kilograms (41.9 pounds) of cocaine to another co-defendant on April 7, 2018. The cocaine was to be mailed to other states, the indictment alleges.
If convicted of all counts, the defendants would face a statutory maximum sentence of life in federal prison and mandatory minimum sentences of at least 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Group 50 and the United States Postal Inspection Service. HIDTA Group 50 is comprised of members from the Drug Enforcement Administration, IRS Criminal Investigation, CBP Air and Marine Operations, the Riverside Police Department, the Chino Police Department, the Ontario Police Department, the Riverside County Sheriff’s Department, and the San Bernardino County Sheriff’s Department. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
The case is being prosecuted by Assistant United States Attorney Victoria A. Degtyareva of the Cyber and Intellectual Property Crimes Section.
Indiana Man Charged with Attempted Online Enticement of Child to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Lebanon, Indiana, man was indicted today for attempting to coerce an individual he thought was a 14-year old boy into engaging in sexual activity, U.S. Attorney Craig Carpenito announced.
Randal Wise, 43, is charged by indictment with one count of attempted online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in this case and statements made in court:
On Oct. 25, 2019, Wise sent messages via an online dating application to an individual who told Wise that he was a 14-year-old boy in the eighth grade. Unbeknownst to Wise, the individual was an undercover agent (UC) posing as a minor victim. Wise engaged in sexual conversations with the UC and sent photographs of his genitals to the UC. Wise also asked the UC to send nude photographs and invited the UC to his hotel room. The following day, Wise again contacted the UC via the dating application and made arrangements to meet in person at a residence in Somerset, New Jersey. When Wise arrived at the house, he was arrested by law enforcement agents.
The attempted online enticement of a minor charge carries a mandatory minimum prison sentence of 10 years, a maximum potential penalty of life in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s indictment. He also thanked the Somerset County Prosecutor’s Office, under the direction of Prosecutor Michael Robertson, for its assistance.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Patricia Astorga of the U.S. Attorney’s Office’s Criminal Division.
Hartford Man Pleads Guilty to Illegally Possessing Assault RifleRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN VELEZ, 31, of Hartford, pleaded guilty today in Hartford federal court to possession of a firearm by a convicted felon.
According to court documents and statements made in court, at approximately 10:20 a.m. on November 27, 2018, a car Velez was operating sped away from Hartford Police officers who were attempting to stop the vehicle in Hartford’s South End. Velez parked in a driveway of a residence on Newbury Street and then ran from the car while carrying a duffel bag. After Velez was apprehended, a detective located the duffel bag in Velez’s path of travel. The bag contained a disassembled Ruger AR 556 semi-automatic rifle.
Velez’s criminal history includes multiple convictions for burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Velez is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 20, 2020, at which time he faces a maximum term of imprisonment of 10 years.
Velez is released on a $100,000 bond pending sentencing.
This investigation has been conducted by the Hartford Police Department and the FBI’s Connecticut Violent Crime Task Force. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Guatemalan Man Sentenced for Illegally Reentering the U.S. and Using Fraudulent Social Security CardRead the Press Release
A man who entered the United States illegally from Guatemala and used a fraudulent social security card to obtain employment was sentenced on January 28, 2020, to time served of 168 days.
Ismael Lopez-Lopez, age 26, from Guatemala, received the sentence after an October 3, 2019, guilty plea to one count of illegal re-entry and a December 3, 2019, guilty plea to one count of misuse of a social security number.
At the guilty plea hearings, Lopez-Lopez admitted he had illegally entered the United States from Guatemala in 2016, and subsequently used a fraudulent social security card to obtain employment. On August 9, 2019, defendant was arrested in Sioux County, Iowa, for a traffic offense. Fingerprints were obtained from Lopez-Lopez, and it was determined that he had previously been deported and was in the U.S. illegally. Lopez-Lopez provided law enforcement with the name of his employer in Rock Valley. After an official check of social security records, it was discovered the social security number Lopez-Lopez used in applying for the job was assigned to someone other than Lopez-Lopez.
Lopez-Lopez was sentenced to time served in Sioux City by United States District Court Judge Leonard T. Strand.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 19-CR-04050 and 19-CR-04080.
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Greece Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kwashie Ajavon, 33, of Greece, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession with intent to distribute crack cocaine and being a felon in possession of a firearm and/or ammunition. The charges carry a maximum penalty of 20 years in prison and a $1,000,000.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on August 13, 2019, law enforcement officers executed a search warrant at the defendant’s residence on Estall Road in Greece. During the search, officers recovered three loaded firearms, approximately $1,200 in cash, methamphetamine, marijuana, and drug packaging materials and cutting agents. Officers also searched a vehicle pursuant to a search warrant and recovered a quantity of crack cocaine and a scale.
In 2008, Ajavon was convicted of Criminal Possession of a Weapon in the Second Degree in Monroe County Court and sentenced to 42 months in prison. As a result, he is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
Sentencing is scheduled for April 30, 2020, at 9:15 a.m. before Judge Siragusa.
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Grand Jury Returns Two IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
La Crosse Man Charged with Distributing Methamphetamine
James Vinson, 33, La Crosse, Wisconsin, is charged with distributing 50 grams or more of methamphetamine. The indictment alleges that he distributed the methamphetamine on December 5, 2019.
If convicted, Vinson faces a mandatory minimum penalty of five years and a maximum penalty of 40 years in federal prison. The charge against him is the result of an investigation by the La Crosse County Sheriff’s Office, the West Central Metropolitan Enforcement Group, and the Onalaska and La Crosse Police Departments. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Madison Man Charged with Threatening Federal Probation Officer
Amin W. Williams, 37, Madison, Wisconsin, is charged with threatening to assault a federal law enforcement officer. The indictment alleges that on August 27, 2019, Williams threatened a U.S. Probation Officer with the intent to retaliate against the officer, while the officer was engaged in the performance of his official duties.
If convicted, Williams faces a maximum penalty of six years in federal prison. The charge against him is the result of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Goldsboro Brothers Sentenced for Robbery of CVS in WilmingtonRead 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 brothers JUSTIN and STERLING WHITAKER, 27 and 22, of Goldsboro, North Carolina. JUSTIN WHITAKER received a sentence of 147 months imprisonment, followed by 5 years of supervised release. STERLING WHITAKER was sentenced to 126 months imprisonment, followed by 5 years of supervised release.
The WHITAKERS were named in an Indictment filed on August 7, 2019 charging them with conspiracy to rob the CVS, robbery of the CVS in Wilmington and brandishing a firearm during a crime of violence. On November 1, 2019, JUSTIN and STERLING WHITAKER pled guilty to those charges.
On February 7, 2018, officers with the Wilmington Police Department in Wilmington, North Carolina were notified via 911 dispatch that three armed men had entered the CVS located on Market Street and stolen money from the business. Deputies from the New Hanover County Sheriff’s Office interviewed the clerks. The clerks provided information that the men came in armed with firearms and demanded access to the pharmacy. Despite the clerks telling the men they did not have access to the pharmacy, the men led them at gunpoint to the safe and demanded entry. The men put the clerks in the bathroom, stole their cellular phones, and left the CVS. The clerks gave a description of a car they saw just prior to the robbery that they believed to be involved.
Officers with the Wilmington Police Department saw a car that matched the description given by the clerks and attempted a traffic stop. The car fled, refusing to stop for the officers. The car fled on Market Street at speeds exceeding 100 miles per hour. The car drove in the wrong lane into oncoming traffic, before the driver eventually lost control and crashed. Three occupants of the car ran from the car wreck. JUSTIN WHITAKER was tased and taken into custody immediately. STERLING WHITAKER was apprehened a short time later. The third individual was not apprehended. Law enforcement found three firearms and checks and cash belonging to the CVS in the car.
JUSTIN WHITAKER was taken to the sheriff’s department after his discharge from the hospital. He gave law enforcement a false name and then escaped from the interview room. He was found a short time later.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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 investigation of this case was conducted by the New Hanover County Sheriff’s Department, the Wilmington Police Department and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant United States Attorney Charity Wilson and Bryan Stephany.
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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.
Gang Member Linked to Four Drive-By Shootings Sentenced to 17 Years in Federal PrisonRead the Press Release
A gang member involved in several drive-by shootings in Dallas was sentenced today to 17 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Rafael Rubi, 24, pleaded guilty in September to possession of a firearm and ammunition by a convicted felon, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute a controlled substance.
Using the National Integrated Ballistic Information Network, or NIBIN, federal agents were able to link shell casings found at the scenes of at least four drive-by shootings in Dallas’ Oak Cliff neighborhood to firearms found in Mr. Rubi’s home and car.
In plea papers, Mr. Rubi, a member of the street gang La Familia Homeboy, admitted he was involved in all four drive-by shootings, including one shooting that targeted a driver previously involved in a car accident with Mr. Rubi’s girlfriend and another shooting that targeted the driver’s family members.
In total, approximately 119 cartridge casings were recovered at the scenes of the shootings.
The majority of the casings were later linked to two Glock pistols – one found stashed in a toilet tank in Mr. Rubi’s apartment (along with heroin, methamphetamine, cocaine, and drug paraphernalia), and another recovered from his Ford Mustang during a traffic stop hours after the final shooting.
During that traffic stop, officers observed Mr. Rubi’s passenger making “furtive movements” toward the floorboard, where they later located the loaded Glock pistol. Mr. Rubi admits he handed the Glock to the passenger and asked him to hide it.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Rebekah Ricketts and Gary Tromblay prosecuted the case. U.S. District Judge Ed Kinkeade handed down the sentence.
Gainesville Physician and Ex-Wife Sentenced to Federal Prison for Health Care Fraud Conspiracy, Health Care Fraud, and Money LaunderingRead the Press Release
GAINESVILLE, FLORIDA –Lawrence Keefe, U.S. Attorney for the Northern District of Florida, announced the sentencings of Erik M. Schabert, 48, a physician, and his ex-wife, Mika Kamissa Harris, 49,
both of Gainesville, Florida. A jury found both guilty on health care fraud and money laundering charges involving more than $8 million.While owning and operating Reliant Family Practice in Gainesville, Harris and Schabert attempted to
defraud health care benefit programs of more than $8 million by submitting fraudulent claims.
Between January 2013 and July 2016, Reliant Family Practice received over
$4.4 million from Medicare and Blue Cross Blue Shield for fraudulent claims for chemical peels and
dermabrasions relating to false diagnoses of rosacea and actinic keratosis.Harris was convicted of conspiracy to commit health care or wire fraud, and 48 counts of health
care fraud. Additionally, she was convicted of 41 counts of money laundering as a result of
spending the fraudulently obtained proceeds on such things as paying off her home mortgage, adding
a swimming pool and other home improvements, obtaining plastic surgery, purchasing commercial
property, and funding an annuity for herself. Harris was sentenced to 90 months prison, followed by
3 years supervised release.Schabert was convicted of conspiracy to commit health care or wire fraud, and 24 counts of health
care fraud. Schabert was sentenced to 42 months prison, followed by 3 years supervised release.“Society places a large measure of trust in the hands of licensed physicians, and it is profoundly
disturbing when a respected professional abuses that trust by falsely billing for treatments that
were not medically necessary or which were never actually provided,” U.S. Attorney Keefe said.
“In addition, this doctor’s actions undermined the trust placed in him by his patients.”"Fraudsters like Dr. Schabert should pay a hefty price for violating both the Hippocratic Oath and
his standing as a trusted Medicare provider”, said Special Agent in Charge Omar Pérez Aybar, U.S.
Department of Health and Human Services Office of Inspector General. "Our watchdog agency and
network of partners will continue to aggressively investigate physicians and other health care
providers who bill Medicare for unnecessary services just to boost their own profits.”In addition to receiving sentences of imprisonment and supervised release, Harris and Schabert were
jointly ordered to pay $4,471,572.52 in restitution to Blue Cross Blue Shield. The government has
already forfeited Harris’ residence, the commercial property, and over $260,000 in an annuity
account."Health care fraud costs our country tens of billions of dollars a year, and rooting out these
schemes is central to the well-being of our citizens and the overall economy," said Rachel L.
Rojas, Special Agent in Charge of the FBI Jacksonville Division. "The FBI is committed to
aggressively investigating and bringing to justice those who undermine our health care system."Assistant United States Attorneys Justin M. Keen and Frank T. Williams prosecuted the case, which
was jointly investigated by the Department of Health and Human Services, Office of Inspector
General, the Federal Bureau of Investigation, and the Internal Revenue Service– Criminal
Investigation."Special Agents of the IRS will continue to bring our financial expertise to assist our law
enforcement partners in combatting large-scale healthcare fraud, “stated Ronald A. Loecker,
Assistant Special Agent in Charge for IRS Criminal Investigation, Tampa Field Office.” Fraud of
this magnitude must be countered through robust investigation of these trusted professionals.”The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern District
of Florida, visit http://www.justice.gov/usao/fln/index.html.The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the
history of our agency at www.Justice.gov/Celebrating150Years.Former union official sentenced to 30 months for identity theft and failure to file tax returnsRead the Press Release
HONOLULU, Hawaii – Nathan Y.G. Lum, 62, of Honolulu, Hawaii, was sentenced today in federal court by United States District Judge Derrick K. Watson to 30 months of imprisonment and one year of supervised release, and ordered to pay restitution in the amount of $314,178.27. On March 28, 2019, Lum pleaded guilty to aggravated identity theft in connection with theft of government funds and failure to file a tax return.
US Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, Lum was the former division director of the International Longshore and Warehouse Union Local 142, Longshore Division (ILWU). From 2011 through 2017, Lum willfully failed to file any federal or State of Hawaii tax returns that should have reported his income from the ILWU and other sources. In failing to do so, he failed to pay the IRS and State of Hawaii approximately $280,743.27 that he owed in taxes. In most years, Lum earned over $200,000.00 in gross pay from the ILWU. In addition, Lum failed to report approximately $90,000.00 in payments that he received personally from California-based Relativity Media company in 2012 and 2013 in connection with efforts to secure Hawaii tax credits from the State Legislature while he was an official of the ILWU.
Further, after Lum’s father passed away, between 2013 and 2016, Lum forged his father’s signature on over fifty checks that Lum wrote from his deceased father’s bank account and deposited into Lum’s personal account. In total, Lum obtained approximately $33,435.00 in his father’s Social Security benefits that Lum was not entitled to receive. Lum spent these funds on his personal expenses.
“The sentenced imposed today holds Lum accountable for his flagrant violation of federal law. It sends a message to all in Hawaii that no one in Hawaii, regardless of position or privilege, is above the law. Those who hold positions of trust, such as leaders of Hawaii’s public and private sector unions, are fully accountable for their conduct, and when they intentionally violate federal law, my Office will work with law enforcement to ensure that there are consequences.”
“Nathan Lum earned a significant income based partly on his criminal conduct and position of influence. He knew he had an obligation to file his income tax return, but chose not to,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation continues to pursue greedy individuals who fail to file and pay their fair share of tax.”
The case was investigated by the Internal Revenue Service Criminal Investigation, Department of Labor, Federal Bureau of Investigation, and the Social Security Administration Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Rebecca A. Perlmutter.
Former oil and gas employee charged with using company card for $850K of personal useRead the Press Release
HOUSTON – A criminal information has been filed against a 58-year-old Bryan resident for his suspected role involving wire fraud, announced U.S. Attorney Ryan. K. Patrick.
James Day Burke is expected to make his initial appearance before U.S. Magistrate Judge Dena H. Palermo at 2 p.m. today.
He is charged with one count of wire fraud.
Burke was employed as the bookkeeper at Rustex Inc., an oil and energy company that is headquartered in Bryan.
From approximately May 2010 to approximately August 2018, Burke allegedly made unauthorized charges on company credit cards for personal expenses.
The information alleges Burke defrauded the company out of $855,872.42 as a result of his scheme.
If convicted, he faces a possible sentence of up to 20 years in federal prison and a $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Former Vice President of First Bank & Trust Pleads Guilty to EmbezzlementRead the Press Release
Abingdon, VIRGINIA – The former Vice President of Electronic Banking for First Bank & Trust pled guilty today in U.S. District Court in Abingdon to federal embezzlement charges, United States Attorney Thomas T. Cullen announced.
Lisa Tiller, 39, of Lebanon, Va., waived her right to be indicted and pleaded guilty today to one count of embezzlement by a bank employee.
According to information submitted to the court during today’s guilty plea hearing by Assistant United States Attorney Zachary T. Lee, Tiller was the Vice President of Electronic Bank for First Bank & Trust for approximately 17 years. On or about August 5, 2019, Tiller contacted an E-commerce representative with First Bank & Trust and had the bank account of the Russell County Health Coalition added to her personal online banking profile. Between Aug 5, 2019 and August 16, 2019, Tiller made six transactions, transferring funds totaling $4,750 from the Russell County Health Coalition account to her personal account.
On August 20, 2019, First Bank & Trust began an audit of the transactions and contacted Tiller about the discrepancies. On that date, Tiller's husband deposited funds into Tiller's personal account sufficient to cover the loss and Tiller transferred $4,750 from her personal account to the Russell County Health Coalition account. She also admitted to bank leadership that she had wrongly transferred the funds from the Russell County Health Coalition Account.
On January 14, 2020, when interviewed by an investigator with the Russell County Sheriff’s Office, working as part of a federal financial fraud investigative team, Tiller admitted to the embezzlement of funds from First Bank & Trust.
The investigation of the case was conducted by the Russell County Sheriff’s Office. Assistant United States Attorneys Zachary T. Lee and Whit Pierce are prosecuting the case for the United States.
Former Partner of Manhattan Accounting Firm Sentenced for Two Fraud SchemesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that STEVEN L. HENNING, a certified public accountant (“CPA”) who was a partner at a Manhattan accounting firm, was sentenced today to 51 months in prison for participating in two wire fraud schemes. In the first, he falsely claimed to have entered into multimillion-dollar intellectual property deals and defrauded investors out of $2 million. In the second, he falsely claimed to have entered into client engagements and defrauded an employer out of over $240,000. HENNING was sentenced by United States District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “Over several years, Steven Henning committed brazen frauds, exploiting his stature and career accomplishments to defraud people who trusted and relied on him. Today he has received a significant prison sentence for his crimes.”
At the sentencing hearing, Judge Seibel said that HENNING is a “thief,” he committed “blatant fraud,” and his conduct was “extremely serious.”
According to the allegations in the Information to which HENNING pled guilty, as well as other public information:
HENNING, a CPA at a Manhattan accounting firm, established his own firm called OpportunIP, which he allegedly told victims was a company specializing in assisting other entities in taking intellectual property to the market. HENNING induced victims to invest in OpportunIP by providing them with fraudulent documents showing OpportunIP’s involvement in multimillion-dollar transactions that would reap millions of dollars in future profits. Ultimately, the victims learned that the deals did not exist, the documents were false and forged, and they were victims of an alleged scheme to defraud them out of millions of dollars.
As further alleged in the information, after leaving the Manhattan accounting firm, HENNING sought employment with a firm in Chicago, Illinois (the “Chicago Firm”). He induced the Chicago Firm to hire him and provide him with $240,000 in draw payments based on false and fraudulent statements about business he would bring to the Chicago Firm, including by sending the Chicago Firm fraudulent contracts.
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In addition to his prison term, HENNING was ordered to serve three years of supervised release, pay $938,246 in restitution and forfeit $938,246.
Mr. Berman praised the outstanding investigative work of the U. S. Postal Inspection Service and the SEC Office of Inspector General.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Margery B. Feinzig is in charge of the prosecution.
Former Dayton city commissioner sentenced to prisonRead the Press Release
DAYTON – A former Dayton City Commissioner was sentenced in U.S. District Court today to 12 months in prison for accepting a thing of value in connection with a local government.
Joey D. Williams pleaded guilty to the crime in September 2019. As part of his sentence, Williams was also ordered to pay $28,000 in restitution.
Williams served as an elected commissioner of the City of Dayton from 2001 until 2018. In 2015, Williams accepted a construction project at his personal home by an individual for a greatly reduced price in exchange for influencing the awarding of city contracts to that same individual.
The individual’s business was subsequently awarded at least $150,000 in contracts with both the City of Dayton and CityWide Development Corporation, a non-profit organization that functioned as a development and financing arm of the City of Dayton. CityWide routinely awarded thousands of dollars in contracts to private companies for the demolition of homes in Dayton.
Williams accepted more than $35,000 in free benefits from the individual, including cash payments and the construction of a patio at his home.
In an attempt to conceal the fraud, Williams demanded the individual create a fake invoice, falsely reflecting that Williams had personally paid the individual for the home improvement project.
Others charged include RoShawn Winburn, Clayton Luckie, Brian Higgins, Steve Rauch, Joyce Cameron and James Cameron. Luckie was sentenced in November 2019 to four months in prison for mail fraud.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost and Ohio Auditor of State Keith Faber announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorneys Brent G. Tabacchi and Dominick S. Gerace are representing the United States in this case.
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Former Albion Man Sentenced for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Andrew Campbell, 33, formerly of Albion, NY, now living in North Carolina, who was convicted of possession of child pornography, was sentenced to serve 78 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated in July 2018, an individual contacted the Orleans County Sheriff's Office after discovering a disturbing video on a desktop computer that belonged to the defendant. The witness and Campbell lived together on and off and Campbell left the computer at the residence when he was made to vacate the residence by the witness in June 2018. In addition to the desktop computer, Witness 1 also turned over a laptop computer and hard drive.
A forensic analysis of the desktop, laptop, and hard drive revealed more than 65 image files and more than 20 videos containing child pornography. Some of the images depicted the sexual abuse or exploitation of an infant or toddler, and other depictions of violence.
The sentencing is a result of an investigation by the Orleans County Sheriff's Office, under the direction of Sheriff Randy Bower, and the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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Foley Woman Sentenced to 20 Years for Child Pornography OffensesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Krystal Sanspree, 31, of Foley, Alabama, was sentenced today in federal court on a charge of production of child pornography. Sanspree pled guilty to the charge in June of 2019.
According to court documents filed in connection with their guilty pleas, Foley Police Department received a tip that Sanspree’s co-defendant, Corey Steele, was in possession of images of child pornography. During the course of their investigation, Foley Police were able to determine that Sanspree and Steele were involved in a romantic relationship. During the course of their relationship, Steele requested that Sanspree take sexually explicit photos of a child. Sanspree complied, and subsequently sent the images to Steele. One image showed a prepubescent child naked from the waist down. One image showed Sanspree touching the child’s penis. Another image showed Sanspree putting her tongue on the child’s penis. The child was known to Sanspree and was four years old. When interviewed, Sanspree admitted to taking the photos. Steele admitted to requesting the photos and stated that he directed Sanspree to do the specific things portrayed in the photos. Both Steele and Sanspree were in possession of the images at the time of their arrest.
United States District Court Judge Callie V.S. Granade imposed a sentence of 240 months imprisonment. The judge ordered that Sanspree undergo mental health treatment while incarcerated. The judge also ordered Sanspree to serve a fifteen-year term of supervised release beginning upon her discharge from prison. Upon her release from prison, Sanspree will be required to register as a sex offender. Judge Granade ordered that Sanspree pay $10,100 in special assessments. Sanspree’s co-defendant is scheduled to be sentenced on April 15, 2020.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc
The case was investigated by the Foley Police Department and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Kacey Chappelear.
Florida Woman Guilty of Trafficking Drugs Through Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A 41-year-old Ft. Lauderdale, Florida woman has pleaded guilty to federal drug trafficking charges in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Shenita Denise Peterson pleaded guilty to possession with intent to distribute cocaine before U.S. District Judge Michael Truncale on Jan. 28, 2020.
According to information provided in court, on Aug. 23, 2019, Peterson was stopped by Beaumont Police for a traffic violation on Interstate Highway 10 in Beaumont, Texas. A search of the vehicle revealed approximately 45 individual kilograms of cocaine, which were concealed in the door panels of the vehicle. Peterson was indicted by a federal grand jury on Sep. 4, 2019 and charged with drug trafficking violations.
Under federal statutes, Peterson faces up to life in federal prison at sentencing. The maximum penalty prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Beaumont Police Department and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Florida Man Charged for Using A Firearm During and in Relation to A RobberyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the arrest and filing of a complaint charging Michael Nelson Snyder (28, Tampa) with using a firearm during and in relation to the armed robbery of a jewelry store. If convicted, Snyder faces a maximum penalty of life in federal prison.
According to the
complaint , Snyder committed armed robberies of two jewelry stores, a Zales in Hillsborough County on December 31, 2019, and a Helzberg Diamonds in Pasco County on January 19, 2020. During each of the robberies, Snyder stole more than $100,000 in jewelry.On the evening January 27, 2020, during the execution of a search warrant on Snyder’s home and car, federal agents and deputies from the Hillsborough County Sheriff’s Office and the Pasco Sheriff’s Office recovered a firearm and clothing that matched the clothing worn during the robberies. Pursuant to another warrant, law enforcement officers obtained Snyder’s fingerprints, which matched a print recovered following the Zales robbery.
This case is being prosecuted by Assistant United States Attorney Gregory T. Nolan. It is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, and the Hillsborough County Sheriff’s Office.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
Fayetteville Man Sentenced to More Than 23 Years for Drug Dealing, Gun Possession, and Shooting SpreeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that Chief United States District Judge Terrence W. Boyle sentenced ROBERT TYCELL LOCKHART, 30, of Fayetteville, NC, today. LOCKHART was sentenced to 277 months imprisonment followed by a lifetime of supervised release.
LOCKHART had previously been convicted in federal court in the Eastern District of North Carolina on drug and firearm offenses. He was released from the federal Bureau of Prisons in April of 2018 after serving a 70 month sentence.
Almost immediately after he was released—and while he was under federal post-release supervision—LOCKHART began committing new crimes. He tested positive for drug use, and agents determined that he was again selling drugs.
On August 10 and August 14, 2018, agents successfully purchased cocaine base (commonly known as “crack”) from LOCKHART.
On August 15, 2018, agents observed multiple individuals approaching LOCKHART’s vehicle, which was parked at a gas station. LOCKHART walked into the gas station bathroom; agents approached him, and LOCKHART was found in possession of heroin, fentanyl, cocaine, cocaine base (crack), currency, and digital scales. In his vehicle, agents found a loaded handgun.
While on state bond for those charges, LOCKHART continued committing crimes. On October 29, 2018, he fired several shots at the vehicle of a victim, disabling the vehicle.
On November 10, 2018, LOCKHART fired a handgun at a second victim, striking the victim in the leg. LOCKHART’s bullet fractured the victim’s femur. LOCKHART later spoke to the victim’s mother and admitted to the shooting.
On December 2, 2018, LOCKHART fired a handgun at a third victim, striking the victim in the leg, fracturing the fibula. The victim sped away from LOCKHART and called 911. In a Wal-Mart parking lot, police found the victim, who had lost a significant amount of blood. A tourniquet was applied to the victim’s leg. The victim’s pulse stopped, and officers performed CPR until medics arrived. Fortunately, the victim survived. The victim later identified LOCKHART as the shooter.
On November 13, 2019, LOCKHART entered a plea of guilty to distribution of a quantity of cocaine base (crack) (Counts One and Two); possession with intent to distribute quantities of cocaine base (crack), cocaine, and fentanyl (Count Four); and possession of a firearm by a felon (Count Six).
The Court imposed a sentence of 240 months on Counts One, Two, and Four, and a sentence of 120 months on Count Six, concurrent with each other. Because LOCKHART committed the offenses while on federal supervised release, the Court imposed a sentence of 37 months, consecutive, for that violation. When LOCKHART is released from prison, he will be on federal supervised release for the remainder of his life.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayetteville Police Department, and the Cumberland County Sheriff’s Office investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for 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.
Fayetteville Man Sentenced Under the Armed Career Criminal Act for Felon in Possession of A FirearmRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Charlie Foster, age 39, of Fayetteville, Arkansas, was sentenced yesterday to 210 months in federal prison followed by three years of supervised release for one count of being a Felon In Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, On March 5, 2019, Officers with the Springdale Police Department initiated a traffic stop on a black Toyota Avalon in Springdale Arkansas. The driver later identified as Foster appeared to be extremely nervous while speaking with Officers.
After learning that Foster was on parole with a search waiver on file, he was asked to exit the vehicle and a pat down search was conducted. During the search, Officers located a loaded .45 caliber pistol tucked inside Foster's waistband. The firearm had a round in the chamber. Foster was indicted by a federal grand jury in July 2018, and entered a guilty plea in February 2019.
Foster was sentenced under the Armed Career Criminal Act, which provides a sentencing range of fifteen years to life for individuals who have been convicted of federal gun crimes and have at least three prior felony convictions for crimes of violence and/or serious drug offenses.
This case was prosecuted as a part of the Department of Justice=s Project Safe Neighborhoods Initiative, which is aimed at reducing gun and gang violence, deterring illegal possession of firearms and improving the safety of residents in the Western District of Arkansas. Participants in the initiative include federal, state and local law enforcement agencies.
This case was investigated by the Springdale Police Department and the Bureau of Alcohol, Fire, Tobacco, and Explosives (ATF). Assistant United States Attorney David Harris prosecuted the case for the United States.
Expiring Ban on Fentanyl Analogues Is an Emergency Requiring Immediate Congressional ActionRead the Press Release
Fentanyl is a synthetic opioid 50 times stronger than heroin and 100 times more potent than
morphine. While it can help alleviate severe pain when properly prescribed by a physician, fentanyl
is also highly addictive and oftentimes deadly. We increasingly find it manufactured illegally in
China and Mexico, trafficked by the cartels into the United States, and sold on the streets at
great societal costs.According to the Center for Disease Control and Prevention, more than 70,000 people died from drug
overdoses in 2017, making it a leading cause of injury-related death in the United States.
Sixty-eight percent of those deaths involved a prescription or illicit opioid; in roughly half of
those cases, the fatal opioid was fentanyl. We see those same trends continuing here in the
Southern District of Illinois. Last month, the Madison County coroner reported that most of the
drug overdose deaths his office reviewed in 2019 involved fentanyl. The stories of local families
directly impacted by those deaths are heartbreaking.Efforts to curb illicit fentanyl trafficking have been challenged by the proliferation of numerous
chemical variations. These variations – known as fentanyl “analogues” – produce the same powerful
opioid effects as fentanyl but remain chemically distinct. Because federal law identifies and
regulates dangerous drugs according to their chemical properties, the ever-changing permutations of
these fentanyl analogues pose a significant problem. If a particular chemical compound is not
listed on the schedule of controlled substances, law enforcement is powerless to take action
against it.Thankfully, for the past two years, this challenge has been alleviated through federal regulation.
On February 6, 2018, in recognition of the unprecedented escalation in opioid-related overdoses as
well as the White House directive to declare the opioid crisis a national public health emergency,
the Drug Enforcement Administration (DEA) used its emergency regulatory authority to place all
nonscheduled fentanyl-like substances on the list of banned substances. Today, anyone who
possesses, imports, distributes, or manufactures any illicit, fentanyl-like substance is subject to
criminal prosecution.But that all can change next week. The DEA’s regulatory prohibition on fentanyl analogues is set to
expire on February 6, 2020. “We need immediate legislative action so law enforcement can continue
to regulate fentanyl,” said U.S. Attorney Steve Weinhoeft. “Fentanyl is a serial killer drug. The
DEA continues to intercept variations of it being illicitly imported into the United States and
distributed by criminal networks, causing overdose deaths across the country, including here in
Southern Illinois. I urge extend the ban on fentanyl analogues so law enforcement will have the tools we need to keep our communities safe.”Ex-Postal Service employee indicted on theft chargesRead the Press Release
HOUSTON – A 33-year-old resident of Houston has been charged with five counts of theft of public money and five counts of issuing postal money orders without receiving payment, announced U.S. Attorney Ryan K. Patrick.
Tranese Nicole Mitchell is set to appear before U.S. District Judge Dena H. Palermo this afternoon.
A federal grand jury returned the 10-count indictment Dec. 10.
Mitchell was employed as a lead sales and service clerk at the U.S. Postal Service (USPS) in Houston, according to the charges. During that time, the indictment alleges she committed the theft and improper issuance of money orders from approximately June 2018 through December 2018.
Each count of theft of public money carries a possible sentence of up to 10 years in federal prison, issuing postal money orders without receiving payment carries a possible sentence of up to five years, upon conviction. Each conviction also carries a possible $250,000 maximum fine.
USPS - Office of Inspector General conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Elizabeth City Man Sentenced to 10 Years Imprisonment on Child Pornography ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, Chief United States District Judge Terrence W. Boyle, sentenced ALAN SIGFRED ANDERSEN, 57, of Elizabeth City, NC to 120 months’ imprisonment, followed by a lifetime term of supervised release. ANDERSEN pled guilty on November 13, 2019 to one count of possession of child pornography.
In October 2017, an investigation into a file sharing network identified ANDERSEN’s IP address as advertising known child pornography files. The investigation also revealed that files containing child pornography were directly downloaded from ANDERSEN’s IP address. Following the identification of ANDERSON’s residence, law enforcement obtained a search warrant for his home. On February 28, 2018, Special Agents with Homeland Security Investigations (HSI) and the Pasquotank County Sheriff’s Office executed the search warrant and numerous devices were seized from ANDERSON’s house.
ANDERSEN agreed to speak with investigators and, during the interview, admitted to downloading and storing child pornography. A forensic review of the seized devices revealed multiple devices containing more than 16,000 images and videos of child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
Homeland Security Investigations, the Cary Police Department, and Pasquotank County Sheriff’s Office conducted the investigation of this case. Assistant United States Attorney Bryan M. Stephany 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.
Eight Individuals Indicted for Fraudulently Facilitating Hundreds of Foreign Nationals in Illegally Remaining in the U.S. in Immigration Fraud Scheme Have Been SentencedRead the Press Release
Eight individuals from around the country who were charged with conspiracy to commit visa fraud and harboring aliens for profit, have been sentenced, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Vance Callender of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.
Sentenced were:
Barath Kakireddy, 30, of Lake Mary, FL, sentenced to 18 months;
Suresh Kandala, 32, of Culpeper, VA, sentenced to 18 months;
Phanideep Karnati, 36, of Louisville, KY, sentenced to 6 months;
Prem Rampeesa, 27, of Charlotte, NC, sentenced to 12 months and one day;
Santosh Sama, 29, of Fremont, CA, sentenced to 24 months;
Avinash Thakkallapally, 29, of Harrisburg, PA, sentenced to 15 months
Aswanth Nune, 27, of Atlanta, GA, sentenced to 12 months and one day;
Naveen Prathipati, 27, of Dallas, TX, sentenced to 12 months and one day
According to court records, from approximately February 2017 through January 2019, the defendants, a group of foreign citizens, conspired with each other and others to fraudulently facilitate hundreds of foreign nationals in illegally remaining and working in the United States by actively recruiting them to enroll into a metro Detroit private university that, unbeknownst to the conspirators, was operated by HSI special agents as part of an undercover operation. As part of the scheme, the defendants/recruiters assisted foreign citizen “students” in fraudulently obtaining immigration documents from the school and facilitated the creation of false student records, including transcripts, for the purpose of deceiving immigration authorities. The illegal documents obtained as a result of the conspirators’ actions were based on false claims, false statements, and fraud since the purported foreign students had no intention of attending school, nor attended a single class, and were not bona fide students. All participants in the scheme knew that the school had no instructors or actual classes. The defendants intended to help shield and hide their customers/”students” from United States immigration authorities for money and collectively profited in excess of a quarter of a million dollars as a result of their scheme.
“As this case shows, the well-intended international student visa program can be exploited and abused,” stated United States Attorney Matthew Schneider. “These foreign “students” weren’t students at all – they were scam artists trying to stay in our country illegally, and they all fully knew there were no classes to attend.”
“Today’s sentencing of the final criminal defendant in HSI’s University of Farmington investigation makes it unequivocally clear that every individual who participated in this scheme knew it was an illegal pay-to-stay scam,” said Vance Callender, HSI Detroit special agent in charge. “Building off lessons learned from the September 11 attacks, HSI is dedicated to protecting the homeland in part by ensuring the integrity of the Student Visa Program so it can continue to benefit everyone. Unscrupulous schools whose sole motive is profit and not education do exist and this investigation not only exposed these types of criminals, but has helped create a feeling of omnipresence by law enforcement that will make others think twice before exploiting the program.”
Since 2015, the case was investigated by special agents from the Detroit HSI field office.
The case was prosecuted by Assistant U.S. Attorneys Ronald Waterstreet, Timothy McDonald and Brandon Helms with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
East Bay Resident Sentenced to Eight Years in PrisonRead the Press Release
OAKLAND – Kevin Marshall Stevenson was sentenced on January 28, 2020, to eight years in prison for brandishing a firearm in furtherance of an armed bank robbery, announced United States Attorney David L. Anderson and John Bennett, Special Agent in Charge of the FBI’s San Francisco Field Division. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Stevenson, 35, pleaded guilty to the charge on October 1, 2019. According to his plea agreement, Stevenson admitted that on January 19, 2018, he entered the East West Bank in Oakland, California, intending to rob it, and carrying an unloaded firearm. Stevenson pointed the firearm at multiple bank employees and demanded that they provide him money from the bank registers and the vault. Bank employees were forced to give Stevenson $302,462 in cash before he fled the scene.
Stevenson was apprehended by BART and Oakland police officers as he entered the Lake Merritt BART station. Both the stolen money and the firearm were recovered.
On May 3, 2018, a federal grand jury indicted Stevenson, charging him with one count of armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d); one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1); and one count of brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(ii). Stevenson pleaded guilty to brandishing the firearm during and in relation to a crime of violence, namely, armed bank robbery, and the remaining counts were dismissed.
In addition to the prison term, Judge White sentenced the defendant to a five-year period of supervised release to begin at the conclusion of his prison term. Stevenson has been in custody since his arrest and will begin serving his prison term immediately.
Assistant U.S. Attorney Samantha Schott is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the FBI, BART Police Department, and Oakland Police Department.
Detroit Man Pleads Guilty to Sex TraffickingRead the Press Release
A Detroit man pleaded guilty today to conspiring with others to force and coerce at least 6 women to engage in prostitution in the Detroit area, announced U.S. Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation, Detroit Division.
Pleading guilty was Jhamall K. McGaughy, 37.
According to court records, McGaughy admitted that he recruited women whom he knew struggled with drug addictions and used that addiction for his profit. McGaughy gave drugs to them at first, including heroin and crack cocaine, but then required them to work as prostitutes in order to get money to buy more drugs from him. McGaughy knew that the women would suffer from excruciating withdrawal symptoms, known as being “dope-sick,” if they did not receive regular doses of drugs, and he manipulated the supply of drugs to keep them on the edge of dope-sickness to coerce them into acts of prostitution. McGaughy also used force against some of the women if they tried to purchase drugs from other suppliers.
Under the terms of McGaughy’s plea agreement, he is looking at a minimum of 10 years in federal prison when he is sentenced on May 5, 2020.
The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorneys Thomas Franzinger and Dan Hurley.