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Monday 13 January 2020
Convicted Sex Offender Sentenced for Distribution of Child Pornography to AnotherRead the Press Release
Chattanooga, Tenn. – On January 10, 2020, Matthew John Jurado, 52, currently of Tracy, California, was sentenced by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Mr. Jurado was sentenced to 120 months in prison, followed by five years’ supervised release.
As part of the written plea agreement, Jurado agreed to plead guilty to count two of the indictment by a Federal Grand Jury, where he was charged with causing another person to possess child pornography in violation of 18 U.S.C. § 2252(a)(4)(B) and 2(b). Jurado is a registered sex offender with a prior conviction for child pornography.
In February 2019, the defendant distributed numerous images of child pornography throughout the world from a coffee shop located in Tracy, California. The defendant’s activities and identity were discovered by a member of the Chattanooga Crimes Against Children Task Force, when the defendant distributed child pornography to an undercover Task Force officer. Furthermore, members of the Task Force arrested a second individual who had traveled to Chattanooga with the intent to engage in sex with a minor. Law enforcement agents seized the cell phone belonging to that individual, and found that it contained child pornography that had been sent by the defendant.
“Information sharing among local and federal agencies across the country can bring dangerous criminals to justice. Every child deserves to grow up without the fear, humiliation, and trauma of being the victim of sexual exploitation. If you engage in production of child pornography or dissemination of child pornography in the Eastern District of Tennessee, you will be caught and serve significant time in prison. The U.S. Attorney’s Office will continue to aggressively pursue the predators in this world who seek to abuse the most innocent among us,” said J. Douglas Overbey.
“Those who prey on children, whether they live in Tennessee or around the world, will be found, will be investigated and will be prosecuted. The FBI along with our local, state, and federal partners remain committed to protect our community and hold those accountable whose desire is to harm, abuse, and victimize our most precious resource, our children,” said FBI’s Special Agent in Charge Joe Carrico.
The criminal indictment and plea agreement are the result of an ongoing investigation by the Chattanooga Crimes Against Children Task Force, which consists of agents from the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HIS), the Hamilton County Sheriff’s Department, and the Chattanooga Police Department. This investigation was led by Special Agent Samuel Moore with the Federal Bureau of Investigation.
Assistant United States Attorney James T. Brooks represented the United States.
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Convicted Felon Sentenced to Federal Prison for Shooting into HomeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Lamont Guinyard (30, Gulfport) to four years and three months in federal prison for possessing a firearm as a convicted felon. Guinyard had pleaded guilty on April 8, 2019.
According to testimony and evidence presented at today’s sentencing hearing, in October 2018, Guinyard fired a gun into an occupied residence. Several individuals were inside the home at the time. One bullet entered, and was recovered from, a young child’s room. The child was not harmed.
At the time, Guinyard had multiple prior felony convictions and is, therefore, prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
This case was 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.
Clinton Woman Pleads Guilty to Social Security Fraud and False StatementsRead the Press Release
Bangor Maine: A Clinton woman pleaded guilty on Friday in federal court in Bangor to Social Security fraud and making false statements, U.S. Attorney Halsey B. Frank announced.
According to court records, from about August 2006 through March 2019, Katherine Prosper, 61, a recipient of Supplemental Security Income (“SSI”), concealed the presence of her husband in her household in order to maintain her eligibility to receive benefit payments. SSI benefits are paid to people with limited income who are blind, disabled, or elderly. Prosper’s husband had sufficient income to render her ineligible for the benefits she received during that period. In multiple reviews of her eligibility for benefits, Prosper falsely represented to the Social Security Administration (“SSA”) that she was living alone and not receiving help or money from any other person during this time. At an interview with law enforcement agents, Prosper admitted to concealing her living situation from SSA because she knew it would make her ineligible to receive SSI.
Prosper faces up to five years in prison and a fine of up to $250,000 on both charges, and up to three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by SSA’s Office of the Inspector General and the U.S. Postal Inspection Service.
Canadian National Pleads Guilty to Drug Charge After Maritime Arrest in International Waters off Oregon CoastRead the Press Release
PORTLAND, Ore.—John Philip Stirling, 65, a Canadian citizen, pleaded guilty in federal court today to one count of possession with intent to distribute methamphetamine under the Maritime Drug Law Enforcement Act (MDLEA).
According to court documents, on April 9, 2019, while on a routine patrol, the U.S. Coast Guard Cutter Alert detected a sailing vessel traveling north 225 nautical miles from Newport, Oregon. The vessel, named Mandalay, had a home port of Seattle, Washington and visible U.S. registration numbers. When Coast Guard personnel attempted to communicate with Stirling, he went below deck and would only respond via VHF radio. Once Coast Guard personnel determined the Mandalay was a vessel within the jurisdiction of the U.S., they boarded and found Stirling to be the vessel’s sole occupant.
Stirling stated he did not have vessel documentation and refused to produce identification. Upon further questioning, Sterling’s speech began to deteriorate and he displayed signs of a possible drug overdose. Coast Guard personnel administered medical aid to Stirling and evacuated him by helicopter to Astoria, Oregon. He was later transported by ambulance to Adventist Health Portland for additional treatment.
Coast Guard personnel conducted a search of the Mandalay and discovered 28 seven-gallon jugs containing liquid methamphetamine.
Under the MDLEA, Stirling faces a maximum sentence of life in prison, a $10 million fine and five years of supervised release. Pursuant to the plea agreement, the government will recommend Stirling be sentenced to 87 months in prison. He will be sentenced on April 20, 2020 before U.S. District Court Judge Michael W. Mosman.
As part of the plea agreement, Stirling has agreed to forfeit the Mandalay.
This case was investigated by the U.S. Coast Guard Investigative Service (CGIS) and Homeland Security Investigations (HSI).
Brooke County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – James Joseph Michaels, of Wellsburg, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Michaels, age 52, pled guilty to one count of “Unlawful Possession of a Firearm.” Michaels, prohibited from possessing a firearm due to a prior conviction, admitted to having a .22 caliber revolver in March 2019 in Brooke County.Michaels faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Bridgeport Man Sentenced to 2 Years in Federal Prison for Distributing OxycodoneRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JORDAN RODOFSKY, 57, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by three years of supervised release, for distributing oxycodone.
According to court documents and statements made in court, between May and September 2018, law enforcement made controlled purchases of various quantities of oxycodone from Rodofsky. During one transaction, on August 7, 2018, investigators purchased 96 30mg oxycodone pills from Rodofsky for $3,400.
Rodofsky was arrested on September 11, 2018. On June 12, 2019, he pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone.
Rodofsky, who is released on a $150,000 bond, was ordered to report to prison on March 12, 2020.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and was prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Bloomington Man Sentenced to 16 1/2 Years in Prison for Role in McLean County Crack Cocaine Trafficking ConspiracyRead the Press Release
PEORIA, Ill. – U.S. District Judge James E. Shadid has sentenced Raymone Stephens, 31, of Bloomington, Ill., to 16 years and 8 months in prison for his role in a crack cocaine trafficking conspiracy in 2018. Stephens, sentenced on Jan 9, 2020, has been in the custody of the U.S. Marshals since his arrest in November 2018, and will be transferred to the federal Bureau of Prisons to serve his sentence.
On Sept. 4, 2019, Stephens pleaded guilty to participating in the conspiracy and to eight counts of related possession and distribution of crack cocaine in the Bloomington-Normal area. A co-defendant, Khalil Hood, 29, has also pleaded guilty to the conspiracy and to one count of possession with intent to distribute crack cocaine. Hood is scheduled to be sentenced on Jan. 31, 2020. Three additional defendants were convicted on state charges in McLean County. As a result of the investigation, officers recovered more than 300 grams of cocaine, four handguns, a pistol-grip shotgun, and a bulletproof vest.
These convictions were secured by a multi-month investigation in the summer and fall of 2018 by the Bloomington Police Department and the Federal Drug Enforcement Administration. Assistant U.S. Attorney Adam W. Ghrist represented the government in the federal prosecution. The McLean County State’s Attorney’s Office and the United States Attorney’s Office worked together throughout the investigation and prosecution to secure both state and federal convictions.
Bloomfield Man Involved in 2009 Kidnapping and Murder Sentenced to Life in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GERUND MICKENS, also known as “Breeze,” 44, of Bloomfield, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to life in prison for his role in the kidnapping, robbery and the execution-style murder of Charles Teasley, 35, of West Hartford, in January 2009.
According to evidence presented during trial, on January 12, 2009, Hartford Police responded to Colebrook Street in response to a 911 call concerning a dead body being found in the back seat of a vehicle parked on the street. Upon arrival, Charles Teasley was found dead in the back seat of his own vehicle, a 1999 Acura TL. He had suffered multiple gunshot wounds to his head and face, and his hands were zip-tied behind his back.
The investigation revealed that Mickens, Harold Cook, Terrell Hunter and Jesus Ashanti were involved in committing armed robberies of persons they believed to be drug dealers operating in the greater Hartford area. On January 9, 2009, an individual advised Cook that he had arranged to conduct a cocaine transaction with Teasley. The individual provided the particulars of the planned transaction to Cook so that Teasley could be kidnapped and robbed of drugs and money. After Teasley arrived at the arranged location, Cook, Mickens, Hunter and Ashanti kidnapped Teasley by using zip-ties to bind his hands and forcing him back into the rear seat of his own vehicle. In the vehicle, they threatened Teasley at gunpoint, assaulted him and forced him to make a telephone call directing his girlfriend to bring to Cook, Mickens, Hunter and Ashanti a safe that Teasley had kept at his and his girlfriend’s West Hartford residence. They drove to the residence and acquired the safe. Cook, Mickens and Hunter then drove Teasley to the Colebrook Street area of Hartford, and Ashanti followed them in a separate car. On the way, Hunter and Cook shot Teasley in the head causing his death. After arriving on Colebrook Street, Cook, Mickens and Hunter left the Acura and Teasley’s body, and then fled the area in the car driven by Ashanti.
Cook, Mickens and Hunter have been detained since their arrests on April 4, 2017. On August 21, 2018, a jury found them guilty of one count of kidnapping resulting in death, one count of using a firearm during a kidnapping and causing a death, and one count of using a firearm during a Hobbs Act robbery and causing a death.
Cook and Hunter each awaits sentencing and faces a mandatory term of life imprisonment without parole.
On July 16, 2018, Ashanti pleaded guilty to one count of kidnapping resulting in death, one count of using a firearm during a kidnapping and causing a death, and one count of using a firearm during a robbery and causing a death. He also awaits sentencing.
This investigation has been conducted by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, Hartford Police Department and the Cold Case Homicide Unit of the Office of the Chief State’s Attorney. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by U.S. Attorney Durham, Assistant U.S. Attorneys Jocelyn C. Kaoutzanis and Peter D. Markle, and Assistant State’s Attorney Andrew Reed Durham, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Birmingham Man Sentenced to 14 ½ Years in Prison on Gun and Drug ChargesRead the Press Release
BIRMINGHAM, Ala. –A federal judge on Thursday sentenced a Birmingham man on gun and drug charges, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
U.S. District Judge Annemarie Axon sentenced Edwin “Fats” Pettaway, 48, to 174 months in prison, and five years of supervision following his release from prison.
Pettaway was charged with possession with intent to distribute 8 ounces of crack cocaine and with possession of a loaded 9mm pistol in furtherance of a drug felony. A federal jury convicted Pettaway in July 2019. According to court testimony, law enforcement had not seen this amount of crack in one place at one time in years. Pettaway was found in possession of a 5.56 caliber Bushmaster semi-automatic rifle loaded with 30 rounds of ammunition and 29 hydrocodone pills.
“There is zero tolerance in the Northern District for those in possession of firearms while dealing deadly narcotics,” Town said. “Pettaway has now been given bed space in federal prison with no sanctuary of parole.”
The DEA investigated the case, which Assistant U.S. Attorney Bill Simpson and John Camp prosecuted.
Berkeley County woman sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shannon L. Keiffer, of Martinsburg, West Virginia, was sentenced today to five years probation for a drug charge, U.S. Attorney Bill Powell announced.
Keiffer, age 34, pled guilty to one count of “Distribution of Heroin” in April 2019. Keiffer admitted to selling heroin in July 2018 in Berkeley County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shavon Craig, of Kearneysville, West Virginia, was sentenced today to 24 months incarceration for his role in a cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Craig, age 35, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base” in September 2019. Craig admitted to distributing cocaine base in Berkeley County in December 2018.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Ronald Monroe, of Martinsburg, West Virginia, was sentenced today to 120 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Monroe, age 39, pled guilty to one count of “Unlawful Possession of Firearm” in October 2019. Monroe, having been previously convicted of a felony, admitted to having a 9mm pistol and a .380 caliber pistol in August 2017 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Alan Himelright, of Inwood, West Virginia, was sentenced today to 121 months incarceration for distributing child pornography, U.S. Attorney Bill Powell announced.
Himelright, age 36, pled guilty to one count of “Distribution of Child Pornography” in September 2019. Himelright admitted to distributing child pornography in October 2018 in Berkeley County.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police and the Jefferson County Sheriff’s Office investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Chief U.S. District Judge Gina M. Groh presided.
Baltimore Man Convicted After Five-Day Trial on Federal Charges Related to the Attempted Armed Robbery of a Food Service Company Where an Employee Was ShotRead the Press Release
Baltimore, Maryland – A federal jury convicted Alex Smith, a/k/a Skeet, age 34, of Halethorpe, Maryland, on federal charges of conspiracy to commit a commercial robbery, attempted robbery, and using, carrying, and discharging a firearm during and in relation to a crime of violence, related to the attempted armed robbery of a food service business in Baltimore on December 5, 2018, during which an employee of the business was shot. The jury returned its verdict late on Friday, January 10, 2020. Co-defendant Cornell Slater, a/k/a Chopper, age 34, of Odenton, Maryland, pleaded guilty on the eve of trial to the federal charges of using, carrying, and discharging a firearm during and in relation to a crime of violence; committing a commercial robbery, and to being a felon in possession of a firearm.
The conviction and guilty plea were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Tim Altomare of the Anne Arundel County Police Department.
According to Slater’s guilty plea and the evidence presented at Smith’s five-day trial, on December 5, 2018, Smith and Slater committed an attempted armed robbery of a food service business, which was Slater’s former employer. At approximately 3:22 a.m., Slater picked Smith up at his residence and the two traveled to the business. At 4:30 a.m., four employees arrived for the morning shift to open the store. Surveillance cameras show Smith and Slater waking across a parking lot in the direction of the employee entrance. As employees entered the store, Smith and Slater trailed them through the open door, posing as employees.
As detailed in the plea agreement and described during trial testimony, upon entering the building Slater confronted two victims outside of the manager’s office, pulling out a gun and shooting one of the victims in the face. Slater then forced the other employee toward the direction of the cash room, where the safe was stored. In the meantime, Smith entered the employee breakroom and confronted two other victims, brandishing a firearm while he ordered the victims to hand over their cell phones and get on the floor. Once Slater and the victim reached the cash room, the victim quickly entered the room and shut the door behind him, knowing that the door would lock automatically.
Knowing that they had been locked out of the cash room, Smith and Slater fled to Slater’s vehicle and drove off.
Further, Slater admitted that on November 14, 2018, he fired two shots at a woman, striking her in the side. The woman’s temporary license plate had been stolen from her vehicle on October 26, 2018. While driving in her neighborhood in the 2500 block of Springhill Avenue in Baltimore on November 14, 2018, the victim saw her stolen license plate on Slater’s car and pulled beside the vehicle to see who had stolen the plate. Slater confronted the victim for following him and shot her. The victim was able to describe Slater and his girlfriend, who had also been in the car at the time of the shooting.
Both of the shootings were forensically linked by the shell casings recovered at each shooting scene. Using information gleaned from both investigations, law enforcement officers were able to locate Slater and subsequently arrest him on December 18, 2018, outside of his residence in Odenton, MD. At the time of his arrest, Slater’s vehicle was displaying another temporary license plate that he been stolen approximately two weeks earlier. During a search of Slater’s residence, law enforcement recovered the 9mm pistol used in the two shootings from under Slater’s bed, as well as 10 rounds of 9mm ammunition. Slater had a previous felony conviction and was prohibited from possessing a firearm or ammunition.
Smith faces a maximum of 20 years in federal prison for a commercial robbery; and a mandatory minimum of 10 years and a maximum of life in federal prison for aiding and abetting the discharge of a firearm during and in relation to a crime of violence. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Richard D. Bennett has not yet scheduled a sentencing date for Smith.
Slater and the government have agreed that, if the Court accepts the plea agreement, Slater will be sentenced to 30 years in federal prison. Judge Bennett has scheduled sentencing for Slater on April 8, 2020 at 3:00 p.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the ATF the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and James G. Warwick, who are prosecuting the case.
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Armed Methamphetamine Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Crystal Marie Dacus, 38, of Foley, Alabama, was sentenced in federal court for her involvement in a conspiracy to distribute methamphetamine and possessing a firearm in furtherance of the drug trafficking felony. Dacus had entered a guilty plea to the charges, and United States District Court Judge Kristi K. Dubose imposed a sentence totaling 84 months imprisonment.
Judge Dubose imposed a sentence of 60 months on the firearms charge and ordered that it run consecutive to the sentence on the drug charge, which she set at 24 months. The total term of imprison was 84 months, which will be followed by a period of five years under supervised release when she is discharged from prison. During that term, she will undergo drug testing and treatment. The judge ordered that Dacus will pay a special assessment of $200, but she did not impose a fine.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Appeals Court Upholds Former Congresswoman Corrine Brown’s ConvictionsRead the Press Release
Tampa, Florida – The United States Court of Appeals for the Eleventh Circuit in Atlanta has affirmed the convictions of former United States Congresswoman Corrine Brown for various fraud and tax offenses. The Court also upheld the district court’s order that Brown forfeit more than $600,000 in proceeds she obtained from her crimes.
In 2017, a jury in Jacksonville found Brown guilty of 14 separate fraud crimes related to her One Door for Education charitable organization, as well as 4 income tax crimes. Brown’s co-conspirators (Elias “Ronnie” Simmons, her long-time Chief of Staff and Carla Wiley, the president of the fraudulent charity) pleaded guilty to their roles in the scheme. The district court sentenced Brown to serve 60 months in prison and to forfeit and pay restitution of $664,292.39. Brown appealed her convictions and the forfeiture order to the United States Court of Appeals for the Eleventh Circuit. The Court heard oral argument in February 2019.
In a lengthy opinion, the Court of Appeals affirmed all of Brown’s convictions and the forfeiture order. Brown had challenged her convictions based on the district court’s dismissal of a juror who, during deliberations, had said that the Holy Spirit told him that Brown was not guilty on all counts. In upholding Brown’s convictions, the Court of Appeals held that the district court had not clearly erred in finding that the juror, “despite his best intentions,” “was not capable of rendering a verdict rooted in the evidence presented at trial.” And the Court of Appeals concluded, therefore, that “the district court certainly did not abuse its discretion in dismissing [the juror] from the jury.” The Court added, “Though here, the juror’s perceived divine revelation might have worked in the criminal defendant’s favor had the district court not learned of it mid-deliberations, a contrary holding would allow criminal defendants to be convicted based on a divine revelation divorced from the evidence, rather than the evidence presented at trial—a troubling result, to say the least.” One judge on the panel, the Honorable William Pryor, dissented from the Court’s opinion.
The appeal was handled by Assistant United States Attorney David Rhodes. The underlying case—including an eight-day trial—was prosecuted by Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican, and Eric G. Olshan, then of the Criminal Division’s Public Integrity Section and now an Assistant U.S. Attorney in the Western District of Pennsylvania. The FBI and IRS-Criminal Investigation investigated the case.
Friday 10 January 2020
Wilson Pair Sentenced for Methamphetamine Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, United States District Judge James C. Dever III sentenced DENNIS RAY TAYLOR, 40 of Wilson, North Carolina, to 144 months imprisonment and 5 years supervised release for conspiracy to distribute five grams or more of methamphetamine and possession with intent to distribute five grams or more of methamphetamine, aiding and abetting. BRITTNEY KAYLA NORVELL, also known as “BRITTNEY MINSHEW,” 28, of Wilson, North Carolina was sentenced on August 29, 2019 to 60 months imprisonment, followed by 5 years of supervised release.
TAYLOR and NORVELL were named in an indictment filed on January 9, 2019, charging both with conspiracy to distribute five grams or more of methamphetamine and possession with intent to distribute five grams or more of methamphetamine, aiding and abetting. On June 14, 2019, NORVELL pled guilty to those charges and TAYLOR later pled guilty on July 10, 2019.
According to the investigation, the Wilson Police Department was dispatched to a hotel in Wilson, North Carolina in reference to a drug complaint. Upon arriving, officers encountered TAYLOR and NORVELL inside their hotel room. A search of the room uncovered 49.11 grams of crystal methamphetamine, a knife with methamphetamine residue, sandwich bags, digital scales and currency. The investigation revealed that TAYLOR and NORVELL had received more methamphetamine earlier and intended on selling the rest.
The prosecution of TAYLOR and NORVELL was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF) targeting drug traffickers in Wilson, North Carolina. This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Wilson Police Department and Drug Enforcement Administration (DEA) conducted investigation of this enforcement operation. Assistant United States Attorney Dena King represented the government.
West Seneca Man, Previously Convicted of Sexually Abusing A Child, Sentenced to 10 Years in Prison for Possession of Child PornographyRead 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 Justin Wheeler, 27, of West Seneca, NY, who was convicted of possession of child pornography involving a prepubescent minor by a person having a prior conviction for aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor, was sentenced to serve 121 months in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that defendant was on parole for a 2013 conviction for attempted rape in the first degree, a conviction which stemmed from his sexual abuse of a 12-year-old girl, when, on October 31, 2017, New York State Parole conducted a search of the defendant’s bedroom pursuant to Wheeler’s New York State court ordered search conditions. During the search, parole officers seized a Samsung cellular telephone from the defendant’s bedroom. A search warrant was executed on that phone, and it was found to contain 90 images and 269 videos of child pornography. Some of the images and videos included prepubescent minors and depictions of violence.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Webster County Man Pleads Guilty to Illegal Possession of FirearmRead the Press Release
A man who illegally possessed a gun pled guilty January 9, 2020, in federal court in Sioux City.
Michael Wayne Holton, 32, from Mason City, Iowa, was convicted of possession of a firearm by a felon. Holton was previously convicted of contraband in a correctional facility and domestic abuse assault, both in the Iowa District Court for Cerro Gordo County.
At the plea hearing, Holton pled guilty to being a felon in possession of a firearm. Evidence in this case revealed that Holton admitted that on June 22, 2019, he grabbed the gun, a Taurus 9mm, from another person while outside of Kingz Lounge in Fort Dodge, Iowa and shot the gun multiple times near a crowd of people.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Holton remains in custody of the United States Marshal pending sentencing. Holton faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Mikala Steenholdt and was investigated by the Fort Dodge Police Department, Webster County Sheriff’s Office, and Iowa Department of Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3050.
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Warr Acres Doctor Pleads Guilty to Drug and Identity-Theft ChargesRead the Press Release
OKLAHOMA CITY – DAVID QUY, 62, an Oklahoma City resident who practiced medicine in Warr Acres, has pleaded guilty to obtaining prescription opioids by fraud and also to identity theft, announced U.S. Attorney Timothy J. Downing.
According to an indictment returned by a federal grand jury on September 17, 2019, Quy practiced as a Doctor of Osteopathy at Family Medicine Center, 5500 N.W. Expressway, in Warr Acres from as early as 2014 until May 2019. He was charged with writing prescriptions for certain of his employees and then directing those employees to fill the prescriptions and bring the pills back to him. On May 14, 2019, the Oklahoma Bureau of Narcotics and Dangerous Drugs issued an emergency suspension of Quy’s license to prescribe controlled substances.
Quy pleaded guilty today before U.S. District Judge Charles B. Goodwin to two counts: obtaining a controlled substance by fraud and using another person’s identity without lawful authority to commit the offense of dispensing controlled substances illegally. The first count charges that on March 20, 2019, he obtained 40 tablets of the opioid Oxycodone by authorizing a prescription in the name of one of his employees and causing that employee to fill the prescription and return the tablets to him. The second count charges him with using the employee’s identity on April 4, 2019, to obtain additional Oxycodone for his own use.
At sentencing, Quy faces on the first count up to four years in prison, one year of supervised release, and a fine of up to $250,000. On the second count, he could be imprisoned up to five years, serve an additional three years on supervised release, and be subject to a $250,000 fine. Quy has agreed in a plea agreement to pay a fine of $50,000. He has also agreed to surrender any license related to the provision of health care and not to apply for any health-care license for two years after sentencing. Sentencing will take place in approximately ninety days.
This case is the result of an investigation by the Oklahoma Bureau of Narcotics and Dangerous Drugs, with assistance from the Drug Enforcement Administration. Assistant U.S. Attorney Scott E. Williams is prosecuting the case.
Reference is made to public filings for more information.
Vincennes residents charged with illegal purchase of firearmRead the Press Release
TERRE HAUTE – United States Attorney Josh J. Minkler announced today that Dakota S. Lovellette, 19, and Nicholas P. Apple, 22, both of Vincennes, Ind., were indicted by a grand jury for charges of conspiring to make a false statement and making a false statement in connection with the acquisition of a firearm.
“If you choose to lie on federal firearm forms in order to illegally purchase firearms, you will be prosecuted under federal law,” said Minkler. “The Department of Justice and the U.S. Attorney’s Office is committed to reducing gun violence and enforcing federal laws through its Project Guardian initiative.”
According to the indictment, in February of 2019, Apple asked another individual (Individual A) to purchase a firearm for Lovellette. Lovellette was under the age of 21 and, therefore, unable to purchase the firearm himself. Apple was also unable to purchase a firearm because he is a convicted felon. Apple was previously convicted for obstruction of justice, in Knox County, Ind., on July 18, 2018. Apple traveled to the Rural King located at 2655 North 6th Street, Vincennes, Ind. for the purpose of locating and examining firearms that could be purchased for Lovellette. Later in the day, on February 4, 2019, Lovellette, Apple, and Individual A met in the parking lot of the Rural King to prepare Individual A to purchase a firearm for Lovellette. Lovellette told Individual A to buy him a Taurus revolver and gave Individual A money to purchase the firearm. Lovellette and Apple explained to Individual A where the revolver was located in Rural King’s display case. Individual A entered the Rural King and purchased a .38 caliber Taurus Model 66 revolver as instructed. Individual A prepared a Firearms Transaction Record form under penalty of perjury stating that the individual was the actual purchaser of the firearm. However, Individual A knew that Lovellette was the actual buyer of the firearm. Following the purchase of the firearm, Individual A, Lovellette, and Apple met at a gas station and Individual A transferred the firearm to Lovellette.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, and Vincennes Police Department.
For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
According to Assistant United States Attorney Matthew B. Miller, who is prosecuting the case for the government, Defendants each face up to 10 years in prison, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute individuals committing violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3.
U.S. Attorney’s Office collects $10,176,838.17 in Fiscal Year 2019Read the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that the Southern District of Indiana collected $10,176,838.17 in criminal and civil actions and asset forfeiture in Fiscal Year 2019. Of this amount, $5,115,032.05 was collected in criminal actions, $1,760,111.12 was collected in civil actions, and $3,301,695 was collected in asset forfeiture funds.
Additionally, the Southern District of Indiana worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,422.73 in cases pursued jointly by these offices. Of this amount, $6,405.75 was collected in criminal actions and $1,016.98 was collected in civil actions.
“In addition to prosecuting criminals, defending government agencies, and providing civil enforcement, the U.S. Attorney’s Office is responsible for collecting debts owed to the government and victims of crime,” said Minkler. “The goal of the U.S. Attorney’s Office is to make crime victims whole again.”
The Asset Recovery Unit is comprised of two units: the Financial Litigation Unit (FLU) and the Asset Forfeiture Unit (AFU). The two units joined forces in 2012 to form the Asset Recovery Unit. Both of these sectors are significant to tax payers because they collect debts owed to the United States government and to victims of crime.
The FLU is responsible for collecting civil and criminal debts that are owed to the United States and victims of crime in a timely, aggressive, and effective manner. Cases opened in the FLU remain open years past their initial debt, but that does not stop new cases from being opened. Forfeiture funds are deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Trish Covey Charged with Credit Card FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Trish Covey, 50, of Fairlee, pleaded not guilty today in United States District Court in Burlington to a charge of credit card fraud. U.S. Magistrate Judge John M. Conroy released Covey on conditions pending trial, which has not been scheduled.
On December 18, 2019, a federal grand jury in Rutland returned a one-count indictment charging Covey with access device fraud. According to the indictment, in 2017, while employed at the Car Store, Inc., an automobile dealership in White River Junction, Covey misused the company’s credit card to obtain merchandise having a value in excess of $1000. Although the indictment alleges only an offense that occurred during 2017, court records indicate the fraud may have begun as early as 2008.
The U.S. Attorney emphasizes that the indictment is merely an accusation and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted, Covey faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
The case was investigated by the U.S. Secret Service upon referral from the Vermont Department of Motor Vehicles.
Covey is represented by George Ostler. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Tax Preparer Sent to Prison for False Tax ReturnsRead the Press Release
PHOENIX, Ariz. – On January 7, 2020, Sandra Gamboa, 49, of Phoenix, Ariz., was sentenced by U.S. District Judge Susan R. Bolton to twelve months and one day of imprisonment. Gamboa pleaded guilty to filing false income tax returns.
Gamboa operated SGB Enterprises, a tax preparation business, through which she filed multiple false federal income tax returns with the IRS. For her own tax return, Gamboa listed false information to fraudulently reduce her tax liability. For some of the clients of her tax preparation business, she secretly changed the numbers in the income tax returns before filing them with the IRS, generating falsely-inflated refunds that Gamboa kept for herself. In addition to imprisonment, Ms. Gamboa was ordered to pay $101,287 in restitution to the IRS.
The investigation in this case was conducted by the Internal Revenue Service Criminal Investigation. The prosecution was handled by James R. Knapp, Assistant U.S. Attorney, District of Arizona, Phoenix.
Strangulation sends Lame Deer man to prisonRead the Press Release
BILLINGS—A Lame Deer man who admitted strangling a woman last year on the Northern Cheyenne Reservation was sentenced today to 30 months prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Cameron Lee Russell, Sr., 43, pleaded guilty to strangulation in August.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court records that Russell and the victim argued in a bedroom at a residence on March 13, 2019. When the victim pretended to throw a baby bottle at Russell, he rushed the victim, got on top of her and began to strangle her with both hands. The victim could not breathe or escape. Russell stopped when a child entered the room, but strangled the victim a second time before stopping eventually. The victim sent children to call police.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
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Stockton Man Indicted for Theft of Social Security Benefits and Identity TheftRead the Press Release
SACRAMENTO, Calif. — A two-count indictment was unsealed yesterday that charges William Francis Stevens, 52, of San Joaquin County, with theft of government property and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to the indictment, beginning in January 2017, and continuing through July 2019, Stevens transferred, possessed, and used, without lawful authority, the name, date of birth, and social security number of his brother in connection with stealing government money, including benefits from the Social Security Administration.
This case is the product of an investigation by the Social Security Administration – Office of the Inspector General and the California Department of Health Care Services – Investigations Section. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
On Dec. 12, 2019, a federal grand jury returned the indictment, which was sealed until Stevens’ arrest on Thursday in Stockton.
If convicted, Stevens faces a maximum statutory penalty of 12 years in prison and a $500,000 fine, including a mandatory two-year term of imprisonment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stock Promoter Pleads Guilty to Accepting Kickbacks from CEO of Public CompanyRead the Press Release
Earlier today, in federal court in Brooklyn, Jeffrey Auerbach, a former registered representative for various broker-dealers, pled guilty to conspiracy to commit securities fraud for his role in a scheme to take kickbacks from the former Chief Executive Officer (CEO) of NXT-ID, a publicly listed company on NASDAQ, in exchange for promoting NXT-ID stock to investors and potential investors. Today’s plea proceeding took place before United States District Judge Pamela K. Chen. When sentenced, Auerbach faces up to five years in prison, as well as forfeiture and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Auerbach exploited his position as a former registered representative for broker-dealers to enrich himself to the detriment of investors,” stated United States Attorney Donoghue. “We will continue to investigate and prosecute stock promoters, brokers and others in the securities industry who exploit the trust of investors and distort the public markets.” Mr. Donoghue expressed his appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance.
According to court filings and facts presented during the plea proceeding, between July 2014 and September 2015, Auerbach conspired with others to defraud investors and potential investors in NXT-ID, a company that purported to provide a comprehensive platform of technology products and services that enable the Internet of Things (“IoT”). As part of this scheme, Auerbach allegedly accepted secret payments from the CEO of NXT-ID in exchange for promoting NXT-ID stock to investors, and making payments to a broker to purchase shares of NXT-ID stock in the accounts of the broker’s clients.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Mark Bini and Hiral Mehta are in charge of the prosecution.
The Defendant:
Jeffrey Auerbach
Age: 49
New York, New YorkE.D.N.Y. Docket No. 19-CR-607 (PKC)
St. Croix Man Who Caused a Semi-Automatic Pistol to Be Shipped to the Territory Sentenced to 58 Months in PrisonRead the Press Release
St. Croix, USVI – William Payne, 39, of St. Croix, was sentenced on January 9, 2020, in District Court on one federal count of Possession of a Firearm by a Convicted Felon, United States Attorney Gretchen C.F. Shappert announced.
Chief Judge Wilma A. Lewis sentenced Payne to a prison term of 58 months, to be following by a 3-year term of supervised release, a fine of $2,000, and a special assessment of $100.
Payne had previously pled guilty to the Possession of a Firearm by a Convicted Felon count on July 24, 2019, and was ordered detained pending sentencing on October 30, 2019.
According to court documents, on April 28, 2017, Payne and another individual traveled to Southern Oaks Gun & Pawn, a federally licensed firearms dealer, located in Orlando, Florida. Payne was present when the other individual purchased a KEL TEC PLR-16 Semi-Automatic Pistol.
On May 2, 2017, Payne caused the same firearm, two high-capacity magazines, and ammunition to be shipped by Tropical Shipping via seaborne container freight shipment from Ft. Lauderdale, Florida, to St. Croix, Virgin Islands. The firearm, high capacity magazines, and ammunition thus traveled in or affected interstate commerce.
On May 16, 2017, Customs and Border Protection (CBP) officers conducted an inspection of an inbound Tropical Shipping freight container. Upon inspection of a pallet of commercial goods destined for a local St. Croix business, CBP officers located the KEL TEC PLR-16 Semi-Automatic Pistol, the two high-capacity magazines for the firearm, and 206 rounds of 5.56x45mm ammunition hidden amongst a larger shipment of items for commercial use. The box containing the firearm, high-capacity magazines, and ammunition bore a prior shipping label addressed to Payne at a Florida address.
On May 17, 2017, Homeland Security Investigations special agents and other federal special agents conducted a controlled delivery of the firearm, high-capacity magazines, and ammunition. Payne and the owner of the small business arrived at Tropical Shipping to receive the shipment.
Payne was arrested after the pallet containing the KEL TEC PLR-16 Semi-automatic Pistol, high capacity magazines, and ammunition was loaded onto the pickup that was being used to transport the pallet from Tropical Shipping.
Payne was previously convicted of three felony offenses: in 2000, for Grand Theft of a Motor Vehicle; in 2001, for Resisting Officer with Violence, and in 2007, for Delivery of Cocaine, all in the Circuit Court for the Ninth Judicial Circuit, Orange County, Florida.
Customs and Border Protection (CBP), Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA) investigated the case. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Springfield Man Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man pleaded guilty in federal court today to his role in a conspiracy to distribute large amounts of methamphetamine.
Richard G. Wacker, 60, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to participating in a conspiracy to distribute methamphetamine in Greene County, Missouri, from March 30 to Oct. 18, 2017.
By pleading guilty today, Wacker admitted that he traveled to Kansas City on several occasions to purchase a half-pound of methamphetamine. After making two trips with co-defendant Ronald A. Stone, 52, of Springfield, Stone began making the trips to Kansas City without Wacker every two to three days. Stone purchased two pounds on each trip, one pound for himself and one pound for Wacker.
On Aug. 30, 2017, Wacker gave Stone $10,000 to purchase a kilogram of methamphetamine. Stone was arrested later that day while driving through Bolivar, Missouri, on his way back to Springfield. Law enforcement officers seized 6.8 pounds of methamphetamine from Stone, who admitted he had just delivered $30,000 to a contact he met in Peculiar, Missouri.
Two days after Stone’s arrest, Wacker drove from Kansas City to Oklahoma City, where he purchased five kilograms of methamphetamine for $45,000. Wacker admitted that he had traveled to Oklahoma City to purchase five kilograms of methamphetamine on two earlier occasions.
In addition to the drug-trafficking conspiracy, Stone pleaded guilty on May 16, 2019, to illegally possessing firearms and to possessing methamphetamine with the intent to distribute. A few days before Stone’s arrest on Aug. 30, 2017, law enforcement officers had executed a search warrant at his residence and seized methamphetamine, a loaded Taurus .38-caliber revolver, a loaded Vega .45-caliber semi-automatic pistol, and $5,661. Officers had also seized a Hi Point 9mm semi-automatic pistol, ammunition, and methamphetamine from Stone’s residence while executing a search warrant on March 30, 2017.
Wacker also admitted that he distributed pound quantities of methamphetamine to co-defendant Herbert R. Dinger, 64, of Springfield. Dinger pleaded guilty to his role in the drug-trafficking conspiracy on Jan. 7, 2019.
Co-defendant Carol A. Hardy, also known as Carol A. Johnson, 50, has also pleaded guilty to her role in the drug-trafficking conspiracy. She was sentenced on Dec. 14, 2018, to 20 years in federal prison without parole. Law enforcement officers executed a search warrant at Hardy’s residence and found 1.766 kilograms of methamphetamine in a safe on the floor of a bedroom closet.Under federal statutes, Wacker is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
Springfield Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Springfield man was arrested yesterday for being a felon in possession of a firearm.
Luis Velez, 41, was charged in an indictment unsealed today with one count of being a felon in possession of a firearm.
The indictment alleges that on July 5, 2019, Velez, who was previously convicted of a felony, was in possession of a Savage Arms, Model 25 Walking Varminter, .22 caliber rifle, a Hermann Weihrauch, Model ARM 44, .44 caliber revolver, and a Smith & Wesson, Model 625, .45 caliber revolver.
On the felon in possession of a firearm charge, based on his prior criminal record, Velez faces a mandatory minimum sentence of 15 years and up to life in prison, up to five years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Assistant U.S. Attorneys Catherine G. Curley and Neil L. Desroches of Lelling’s Springfield Branch Office are prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springdale Man Sentenced to 11 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Kristopher Still, age 43, of Fayetteville, Arkansas, was sentenced yesterday to 135 months in federal prison followed by 20 years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in October 2018, federal law enforcement became aware that a Northwest Arkansas resident was uploading child pornography from the social media application, Tumblr. In response, a federal search warrant was sought and obtained for the residence. Upon gaining entry, law enforcement encountered Kristopher Still. During a post-Miranda interview, Still admitted to obtaining images and videos of child pornography online.
Still was indicted in June of 2019 and entered a guilty plea in August of 2019.
This case was investigated by the Department of Homeland Security Investigations (HSI) and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Carly Marshall prosecuted the case for the United States.
Somerset Man Sentenced for Illegal Participation in Bank LoanRead the Press Release
BOSTON – A Somerset man was sentenced yesterday in federal court in Springfield for illegally participating in a loan with a financial institution.
Anthony Riccitelli, 60, was sentenced by U.S. District Court Judge Mark G. Mastroianni to four months in prison. In September 2019, Riccitelli pleaded guilty to one count of participation in a loan with a financial institution.
Riccitelli admitted that he loaned $80,000 to Diecast Connections Company, Inc., based in Chicopee, at the same time that he served as a bank officer for Blue Hills Bank. Riccitelli proposed that Blue Hills Bank enter into a $4.2 million loan package with Diecast without disclosing to Blue Hills Bank the $80,000 in private loans he had made to Diecast. Shortly after the closing on the loan, Riccitelli received $80,000 of the loan proceeds, unbeknownst to Blue Hills Bank.
United States Attorney Andrew E. Lelling 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. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
Rochester Man Sentenced for Six Armed RobberiesRead 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 Lavon Wims, 27, of Rochester, NY, who was convicted of six counts of Hobbs Act robbery, in connection with a string of robberies at Rochester area businesses, was sentenced to serve 108 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay restitution totaling $4,013.70.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that Wims admitted his role in a series of armed robberies in the Rochester area during December 2018 and January 2019, including:
• On December 28, 2018, at McDonalds on East Avenue in Rochester, Wims held a knife to the throat of a McDonald’s employee while co-conspirator Malik Lott displayed what appeared to be a handgun. Wims dragged the employee to a cash register and a safe, and removed approximately $2,534 from McDonald’s;
• On December 31, 2018, at the 24-7 Store on West Henrietta Road in Brighton, Wims jumped over the counter and held what appeared to be a handgun to the side of a store employee while demanding cash. Wims left with approximately $100 from the store;
• On January 19, 2019, at the Express Mart on Chestnut Ridge Road in Chili, Wims displayed what appeared to be a handgun to a store employee and walked the employee over to the register, where Wims removed approximately $600;
• On January 23, 2019 at Jordy’s Spirits on Dewey Avenue in Rochester, Wims pointed what appeared to be a handgun at a store employee and demanded money. Lott assisted Wims in removing cash from the register, and they left with approximately $350 from the store;
• On January 27, 2019, at the Speedway Gas Station on Elmwood Avenue in Brighton, Wims pointed what appeared to be a handgun at an employee and told the employee to open the registers. Wims then removed approximately $220 from the store, and left to commit another robbery; and
• About 8 minutes after the Speedway robbery, on January 27, 2019, at the Valero Gas Station on East Henrietta Road in Rochester, Wims pointed what appeared to be a handgun at an employee and told the employee to given him money. The employee opened the register, and Wims took approximately $60 and fled the store.Co-conspirator Malik Lott was previously convicted and sentenced to serve 60 months in prison for his role in robberies at McDonalds and Jordy’s Spirits.
The sentencing is the result of an investigation by the Federal Bureau of Investigation’s Rochester Area Major Crimes Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
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Rochester Man Sentenced for His Role in Drug ConspiracyRead 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 Ricardo Casado, 31, of Rochester, NY, who was convicted of conspiring to possess with intent to distribute, and distributing quantities of fentanyl and cocaine, was sentenced to serve 21 months in prison, by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that Casado was a member of a drug trafficking organization led by his brother, co-defendant Jose Casado. Between December of 2017 and May 15, 2019, the organization distributed large quantities of fentanyl, cocaine, and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester.
On January 25, 2019, Ricardo Casado sold 80 baggies of fentanyl and 80 baggies of cocaine in exchange for $600, on behalf of the drug trafficking organization.
Charges remain pending against Jose Casado. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Rochester Man Sentenced for Embezzlement SchemeRead 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 James Walton, 48, formerly of Webster, NY, who was convicted of bank fraud, was sentenced to serve 18 months in federal prison by U.S. District Judge Elizabeth A. Wolford. In addition, Walton was ordered to pay restitution totaling approximately $53,768.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Walton worked as an accountant for a local real estate rental business. From 2011 to 2014, while so employed, the defendant stole approximately 100 security deposits by forging tenants’ signatures to refund checks, and depositing the checks into his personal bank account. In total, Walton embezzled approximately $53,768 from his employer and tenants.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Rochester Man Pleads Guilty to Sex OffenseRead 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 Anthony M. Girolamo, 43, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to transferring obscene material to a minor. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Girolamo established a texting relationship with “Liz,” whom he believed to be a 14-year old minor female. In fact, “Liz” was an undercover law enforcement officer. During the course of their text exchanges, the defendant told “Liz” that he wanted to have sex with her, and sent “Liz” images of adult females engaged in sexual acts with adult males.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for April 22, 2020, at 4:00 p.m. before Judge Wolford.
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Repeat Federal Offender Sentenced for Illegally Possessing Firearm under Project EJECTRead the Press Release
Hattiesburg, Miss. – Jonas A. Windham, 37, of Laurel, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to 13 months in prison for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi. Windham was also ordered to pay a $3,000 fine and serve three years of supervised release following his imprisonment.
Windham’s 13-month sentence will be served consecutive to a 14-month sentence he was given for violating his federal probation in a previous case. In 2013, Windham was convicted in the Southern District of Mississippi and sentenced to 78 months in prison for being an unlawful user of a controlled substance in possession of a firearm. He was still on supervised release when he was arrested on June 18, 2019, for possession of two firearms during the execution of a search warrant at his residence. Windham pled guilty before Judge Starrett on October 2, 2019.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Federal Bureau of Investigation and Laurel Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Rapid City Woman Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Court Judge.
Esmeralda Stands, age 38, was sentenced on January 6, 2020, to time served and 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $972.37 in restitution.
The charge related to Stands being in possession of a stolen .45 caliber revolver in January 2019 at Rapid City, which was found after Stands came into contact with a Rapid City police officer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Raleigh Man Sentenced to More Than 6 Years for Illegally Possessing a Firearm and AmmunitionRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DOMINIQUE DASHAWN WATSON, 27, of Raleigh, NC, to 82 months imprisonment, followed by 3 years of supervised release.
WATSON was named in an Indictment filed on September 19, 2018 charging him with Possession of a Firearm and Ammunition by a Convicted Felon on July 12, 2018. On March 28, 2019, WATSON pled guilty to that charge.
According to the investigation, on July 12, 2018, investigators with the Raleigh Police Department conducted a traffic stop of a vehicle occupied by WATSON. WATSON was removed from the vehicle and detained due to the odor of marijuana in the vehicle. During a search of WATSON, investigators seized 16 grams of marijuana from WATSON’S underwear. During a search of the vehicle, investigators located a loaded 9mm semi-automatic handgun in between the center console and carpeting that had been pulled away from the center console. The handgun was loaded with a round of ammunition in the chamber and 21 rounds of assorted 9mm ammunition in a large capacity magazine. Investigators seized a box of 100 rounds of 9mm ammunition from the rear passenger seat and a digital scale with marijuana residue from the center console. Investigation determined that the firearm was reported stolen in Garner, North Carolina. Investigators determined that WATSON was prohibited from possessing firearms and ammunition due to his prior felony convictions.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
Raleigh Man Sentenced for Illegally Possessing FirearmRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced KEENAN JOSHUA BYRD, 23, of Raleigh, NC, to 48 months imprisonment, followed by 3 years of supervised release.
BYRD was named in an Indictment filed on May 22, 2019 charging him with Possession of a Firearm by a Convicted Felon on January 10, 2019. On August 21, 2019, BYRD pled guilty to Possession of a Firearm by a Convicted Felon.
According to the investigation, on January 10, 2019, the Raleigh Police Department (RPD) responded to the parking lot of a restaurant in Raleigh to investigate a report of an individual sleeping in a vehicle. The officer located BYRD sleeping in the driver’s seat of the running vehicle with the front wheels of the vehicle stopped on the curb, almost in contact with the restaurant. The officer also observed a pistol on the front passenger seat. Other officers responded, secured the vehicle and firearm, and woke BYRD up after several attempts. As officers spoke to BYRD, the officers smelled a strong odor of alcohol coming from BYRD’s person. Officers seized a .40 caliber pistol loaded with 1 round of ammunition in the chamber and 7 rounds of ammunition in the magazine. A spent round of ammunition and an open beer were recovered from the floorboard of the driver’s seat. Officers determined that BYRD was a convicted felon.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
Punch It Performance and Tuning Agrees to Stop Selling Illegal Devices That Defeat Emissions Control Systems of Vehicles in the Wake of Clean Air Act Enforcement ActionRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Punch It Performance and Tuning and Michael Paul Schimmack — and other companies and individuals close to Schimmack (Defendants) — resolving alleged violations of the Clean Air Act (CAA) associated with the manufacture and sale of aftermarket products that defeat the emissions control systems of motor vehicles. The complaint also alleged that certain defendants fraudulently transferred assets after learning of the EPA claims in an effort to avoid payment of penalties in the case.
Under the settlement, lodged today with the U.S. District Court for the Middle District of Florida, defendants, who have stopped manufacturing and selling defeat device products, will pay a civil penalty of $850,000. The defendants also agree to stay out of the business of selling the illegal products, to surrender the computer code used in the products and to stop providing technical and warranty support for the defeat devices already sold.
“Companies and individuals who deal in aftermarket defeat devices are threatening the public’s health and violating federal law,” said Assistant Attorney General Jeffrey Bossert Clark. “The Department of Justice is committed to ending this illegal trade, seeking justice for those harmed from this fraudulent activity, and encouraging compliance in the automotive industry through strong enforcement.”
“EPA will vigorously pursue and prosecute companies who attempt to circumvent emission controls that are required to reduce air pollution,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “This case illustrates why stopping the manufacture, sale, and installation of aftermarket defeat devices is an EPA National Compliance Initiative.”
“The Middle District of Florida remains committed to enforcing the Clean Air Act,” said U.S. Attorney Maria Chapa Lopez. “The settlement announced today is a clear statement of our office’s commitment to protect our citizens and the environment.”
The defendants manufactured and/or sold more than 20,000 aftermarket defeat devices. These products were designed for a range of certified motor vehicles and motor vehicle engines including vehicles manufactured by Ford, General Motors, and Fiat Chrysler. The aftermarket products sold by defendants included hardware components and electronic tuning software, known as “tunes,” that hack into and reprogram a motor vehicle’s electronic control module to alter engine performance and enable the removal of filters, catalysts and other critical emissions controls that reduce air pollution.
Under the CAA, it is illegal to manufacture or sell parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine original equipment manufacturer to comply with CAA emission standards. The complaint filed in the case alleges that each act of manufacturing and each sale constitutes a violation of the CAA.
In addition, the complaint asserts that after EPA notified the defendants in 2016 of its intent to take enforcement action, the corporate defendants transferred real estate and large sums of money to one or more of the individual defendants in their personal capacities. The U.S. alleges these were fraudulent transfers under the Federal Debt Collection Procedures Act.
In addition to their civil penalty of $850,000, defendants will also do the following:
- Surrender all intellectual property to EPA, including programming, files, software, source code, design, instructions, or other information that could be used to manufacture tunes;
- Certify that no products have been manufactured or sold since March 2017;
- Certify that no intellectual property has been transferred to any party other than EPA; and
- Refuse to provide technical support or honor warranty claims for products subject to the consent decree.
EPA has recently begun a National Compliance Initiative on Stopping Aftermarket Defeat Devices for Vehicles and Engines. To read about EPA’s National Compliance Initiative visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The proposed settlement is subject to a 30-day public comment period and final court approval. Information on submitting comments is available at the Department of Justice website.
To learn more about today’s settlement click here.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://echo.epa.gov/report-environmental-violations.
Punch It Performance and Tuning Agrees to Stop Selling Illegal Devices That Defeat Emissions Control Systems of Vehicles in the Wake of Clean Air Act Enforcement ActionRead the Press Release
Orlando, FL – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Punch It Performance and Tuning and Michael Paul Schimmack — and other companies and individuals close to Schimmack (Defendants) — resolving alleged violations of the Clean Air Act (CAA) associated with the manufacture and sale of aftermarket products that defeat the emissions control systems of motor vehicles. The complaint also alleged that certain defendants fraudulently transferred assets after learning of the EPA claims in an effort to avoid payment of penalties in the case.
Under the settlement, lodged today with the U.S. District Court for the Middle District of Florida, defendants, who have stopped manufacturing and selling defeat device products, will pay a civil penalty of $850,000. The defendants also agree to stay out of the business of selling the illegal products, to surrender the computer code used in the products and to stop providing technical and warranty support for the defeat devices already sold.
“Companies and individuals who deal in aftermarket defeat devices are threatening the public’s health and violating federal law,” said Assistant Attorney General Jeffrey Bossert Clark. “The Department of Justice is committed to ending this illegal trade, seeking justice for those harmed from this fraudulent activity, and encouraging compliance in the automotive industry through strong enforcement.”
“EPA will vigorously pursue and prosecute companies who attempt to circumvent emission controls that are required to reduce air pollution,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “This case illustrates why stopping the manufacture, sale, and installation of aftermarket defeat devices is an EPA National Compliance Initiative.”
“The Middle District of Florida remains committed to enforcing the Clean Air Act,” said U.S. Attorney Maria Chapa Lopez. “The settlement announced today is a clear statement of our office’s commitment to protect our citizens and the environment.”
The defendants manufactured and/or sold more than 20,000 aftermarket defeat devices. These products were designed for a range of certified motor vehicles and motor vehicle engines including vehicles manufactured by Ford, General Motors, and Fiat Chrysler. The aftermarket products sold by defendants included hardware components and electronic tuning software, known as “tunes,” that hack into and reprogram a motor vehicle’s electronic control module to alter engine performance and enable the removal of filters, catalysts and other critical emissions controls that reduce air pollution.
Under the CAA, it is illegal to manufacture or sell parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine original equipment manufacturer to comply with CAA emission standards. The complaint filed in the case alleges that each act of manufacturing and each sale constitutes a violation of the CAA.
In addition, the complaint asserts that after EPA notified the defendants in 2016 of its intent to take enforcement action, the corporate defendants transferred real estate and large sums of money to one or more of the individual defendants in their personal capacities. The U.S. alleges these were fraudulent transfers under the Federal Debt Collection Procedures Act.
In addition to their civil penalty of $850,000, defendants will also do the following:
- Surrender all intellectual property to EPA, including programming, files, software, source code, design, instructions, or other information that could be used to manufacture tunes;
- Certify that no products have been manufactured or sold since March 2017;
- Certify that no intellectual property has been transferred to any party other than EPA; and
- Refuse to provide technical support or honor warranty claims for products subject to the consent decree.
EPA has recently begun a National Compliance Initiative on Stopping Aftermarket Defeat Devices for Vehicles and Engines. To read about EPA’s National Compliance Initiative visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The proposed settlement is subject to a 30-day public comment period and final court approval. Information on submitting comments is available at the Department of Justice website.
To learn more about today’s settlement click here.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://echo.epa.gov/report-environmental-violations.
Port Barre Man is Sentenced to 21+ Years for Transporting a Minor Out of State for SexRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Cory Shane Disotell, 48, of Port Barre, Louisiana, was sentenced today by U.S. District Judge Robert R. Summerhays to serve 262 months in federal prison, followed by lifetime supervised release, for transporting a minor with the intent to engage in criminal sexual activity. Disotell is required to register as a sex offender after he is released from prison. As a result of Disotell’s guilty plea on October 11, 2019, Judge Summerhays also ordered forfeiture of the Braztech S41118 .410 caliber shogun which was seized from Disotell at the time of his arrest in Durango, Colorado.
Disotell devised a plan to coerce a 15-year old Port Barre minor to leave school and run away with him. On March 28, 2019, the defendant traveled to the school where the minor was a student and convinced the child to leave with him. He then transported her to Mississippi, and thereafter to Durango, Colorado, where he was apprehended after an extensive nationwide manhunt. At the time of his arrest, the defendant admitted he took the child from Port Barre, Louisiana, to Mississippi, and ultimately to Durango, Colorado, engaging in sexual acts along the way.
The FBI, U.S. Marshal’s Service, Port Barre Police Department, Archuleta County Sheriff’s Office, and Durango, Colorado Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker and Supervisory Assistant U.S. Attorney Myers P. Namie prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Ponchatoula Man Pleads Guilty to Receiving Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that EDD SCAFIDEL, JR., age 59, a resident of Ponchatoula, Louisiana, pleaded guilty on January 9, 2020 before United States District Judge Eldon E. Fallon after previously being charged in a one-count Indictment with receipt of images and videos depicting the sexual exploitation of children, including children as young as approximately one (1) year old, in violation of 18 U.S.C. ' 2252(a)(2).
According to court documents, in about November 2018, a complainant knowledgeable of SCAFIDEL’s actions reported to Special Agents with the Federal Bureau of Investigation that SCAFIDEL possessed electronic storage devices that contained files depicting the sexual exploitation of children. After further investigation, the FBI executed a search warrant at SCAFIDEL’s residence in Ponchatoula, Louisiana on December 4, 2018. During the execution of the search warrant, SCAFIDEL possessed a leather pouch that contained, among other items, two electronic storage devices that contained files depicting the sexual exploitation of children. Subsequent forensic analysis determined that SCAFIDEL used computers and external hard drives to search for, download, and store child pornography. In total, SCAFIDEL downloaded and saved at least 22,334 images depicting the sexual victimization of children, including children less than one year old. Among the files SCAFIDEL searched for, downloaded, and stored were some that portrayed “sadistic or masochistic conduct or other depictions of violence.” Specifically, at least one image portrayed the sexual penetration of a conscious, bound prepubescent female.
If convicted, SCAFIDEL faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of imprisonment of twenty (20) years, followed by up to a lifetime of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing before Judge Fallon has been scheduled for April 16, 2020, at 2:00 pm.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter, with support from the Louisiana State Police. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Pittsburgh-Area Lab Owner Pleads Guilty to Multiple Kickback Conspiracies in Connection with Almost $130 Million in Medicare Claims for Genetic TestingRead the Press Release
PITTSBURGH, Pa. – A resident of Monroeville, Pennsylvania, pleaded guilty in federal court to three conspiracy counts and one substantive count related to the payment and receipt of unlawful kickbacks, United States Attorney Scott W. Brady announced today.
Ravitej Reddy, 52, pleaded guilty before United States District Judge William S. Stickman IV.
During his plea hearing, the defendant admitted that he owned two testing laboratories—Personalized Genetics, LLC, d/b/a Personalized Genomics (PGL), located in Pittsburgh, and Med Health Services Management, LP (MHS), located in Monroeville. Beginning as early as May 2018, and continuing through approximately April 12, 2019, the defendant admitted that he participated in three separate conspiracies related to Medicare billing for two types of genetic testing: cancer genomic testing (CGx) and pharmacogenetic testing (PGx). CGx testing used DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future. CGx testing, however, was not a method of diagnosing whether an individual presently had cancer. PGx testing detected specific genetic variations in genes that impacted the metabolism of certain medications. In other words, PGx testing helped determine, among other things, whether certain medications would be effective if used by a particular patient.
As part of his guilty plea, the defendant admitted that he and a group of co-conspirators—comprising business consultants, marketers, and the operator of a telemedicine entity, among others—acquired thousands of testing samples from Medicare beneficiaries located throughout the United States, as well as the corresponding physician-ordered prescriptions that PGL and MHS needed to bill Medicare for CGx and PGx testing. For their part, the marketers used targeted campaigns to induce beneficiaries to submit CGx and PGx specimens by means of cheek swabs sent to their homes or provided to them at purported "health fairs" held throughout the United States. Marketers, in turn, were paid percentage-based kickbacks depending upon the Medicare reimbursements for beneficiaries whose samples they had obtained and submitted to PGL or MHS.
Likewise, the operator of a Florida-based telemedicine entity allegedly was paid kickbacks in connection with obtaining CGx and PGx prescriptions from physicians who were contracted by his company to review the beneficiaries’ personal and familial medical histories. As alleged, contract physicians authorized testing for greater than 95% of beneficiaries despite the fact that the doctors did not conduct a proper telemedicine visit, were not treating the Medicare beneficiaries for cancer or symptoms of cancer, did not use the test results in the treatment of the beneficiaries, and generally were not qualified to understand and interpret the test results.
The defendant further admitted that he and his co-conspirators took advantage of PGL’s and MHS’s physical locations within the Medicare coverage area that offered the highest reimbursement rates in the United States. The court was further advised that the co-conspirators used PGL and MHS as the billing laboratory despite the fact that the labs did not possess properly validated equipment to conduct any CGx testing on-site and, as such, were forced to send samples for proper testing by a so-called reference laboratory that was located outside of the lucrative coverage area.
During the plea hearing, the defendant admitted to his participation in three separate kickback conspiracies related to the acquisition of CGx and PGx specimens—an initial conspiracy between May 2018 and April 12, 2019, involving Medicare billings through PGL and two side conspiracies between October 2018 and April 12, 2019, involving Medicare billings through MHS. The defendant further admitted that he engaged in the second and third conspiracies with some, but not all, of the same co-conspirators as the first conspiracy, and he pursued these alleged side deals, in part, as a means to increase his share of the profits relative to the first PGL-based conspiracy. Finally, the defendant pleaded guilty to a substantive charge of paying percentage-based kickbacks to another unrelated marketing entity in connection with the acquisition of PGx and other testing samples between October 2017 and April 2019.
The defendant admitted that he caused PGL and MHS to submit Medicare claims for CGx and PGx testing that regularly exceeded $12,000 per beneficiary. In total, between May 2018 and April 12, 2019, the defendant’s laboratories billed Medicare more than $127 million for CGx and PGx testing, with reimbursements of approximately $60 million.
Pursuant to a written plea agreement, the defendant further agreed to make restitution to the Centers for Medicare and Medicaid Services, a component of the U.S. Department of Health and Human Services, in the amount of $77,328,319.82.
For each of the three conspiracy counts, the defendant faces a maximum sentence of five years in prison, a fine of $250,000, or both. For the substantive kickback charge, he faces a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and U.S. Department of Health and Human Services – Office of Inspector General conducted the investigation of the defendant.
Pittsburgh Man Sentenced for Possessing Images Depicting the Sexual Exploitation of ChildrenRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 10 months’ imprisonment, followed by 7 years’ supervised release, and was ordered to pay $2,000 in restitution to two child victims on his conviction of possession of child pornography, United States Attorney Scott W. Brady announced today.
United States Senior District Judge Joy Flowers Conti imposed the sentence on Ryan Grasha, 25.
According to information presented to the court, on January 31, 2018, Grasha possessed approximately 250 images depicting the sexual exploitation of minors, some of whom were under the age of 12 years. Grasha obtained and distributed the sexually exploitive images over the Internet, using the "Omegle" and "Kik" peer-to-peer networks.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Grasha.
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.justice.gov/psc.
Pine Ridge Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Assault on a Federal Officer was sentenced by U.S. Magistrate Judge Daneta Wollmann.
Jourdan Brown, age 23, was sentenced on December 23, 2019, to 10 months in a federal prison, followed by 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
The charge related to Brown lowering his shoulder and striking the Oglala Sioux Tribe Department of Public Safety officer in the chest, after the officer responded to a theft call at a business in Pine Ridge.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Brown was immediately turned over to the custody of the U.S. Marshals Service.
Owners of Groveland Companies Charged for Defrauding Government Contracting ProgramsRead the Press Release
BOSTON – Three men were charged today in federal court in Boston with conspiracy to defraud the United States and mail fraud in connection with a scheme to obtain government contracts.
Frank Apicella, 63, of Groveland, Mass.; Michael Sforza, 59, of Alpharetta, Ga.; and James Apicella, 37, of Kingston, NH, were charged with one count of conspiracy to defraud the United States and one count of mail fraud.
According to the charging document, beginning in 2011 the defendants used Tactical Office Solutions (TOS), a company run by James Apicella, to bid for and obtain government contract work that was set aside for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Historically Underutilized Business Zone (HUBZone) companies. Although the work was bid by and awarded to TOS based under these set-aside programs, the work was actually mostly performed by FENS, a company owned and operated by Frank Apicella and Michael Sforza that was not eligible for these contracts.
The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, one year of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey K. Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, Northeast Field Office; Luis Hernandez, Special Agent in Charge of the General Services Administration Office of Inspector General, New England Regional Office; and Michael Conner, Resident Agent in Charge of the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, made the announcement today. The U.S. Treasury Inspector General for Tax Administration provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit and Annapurna Balakrishna of Lelling’s Civil Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Operators of U.S. Coin Bullion Sentenced to Prison for More Than $9.3 Million in FraudRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced brothers Salvatore Esposito (47, Orlando) and Joseph Esposito (43, Orlando) to federal prison terms for their roles in defrauding more than 150 victims out of more than $9.3 million in connection with the operation of their business, U.S. Coin Bullion LLC. Salvatore Esposito was sentenced to 7 years and 3 months in federal prison, and Joseph Esposito was sentenced to 5 years and 11 months in federal prison. Both were also ordered to serve 3 years of supervised release and to pay more than $9.3 in restitution.
The Espositos had pleaded guilty on October 2, 2019.
According to court documents, the Espositos operated U.S. Coin Bullion, a local Orlando company formed in 2012. From 2014 to July 2019, the Espositos engaged in a conspiracy to defraud U.S. Coin Bullion’s customers. Instead of using the customers’ funds to purchase precious metals as had been promised, the Espositos caused U.S. Coin Bullion to use customer funds to pay other customers, to pay commissions and other business expenses, and to purchase silver for the company itself.
U.S. Coin Bullion used its customers’ funds to purchase silver on “margin,” or “leverage,” by which it acquired an interest in the silver by paying only a portion of its full price. The company took out loans to purchase the silver on margin and then used more customer funds to pay the interest associated with those loans, as well as storage fees for the silver. And, because it was buying on margin, U.S. Coin Bullion was subject to “margin calls.” If the market price for silver declined, the company might immediately have to deposit more (customer) funds into its accounts to maintain its interest in the silver.
U.S. Coin Bullion never told its customers that their funds were being used in this way. By at least 2016, it was regularly using its customers’ funds to buy millions of dollars worth of silver. When the price for silver fell from more than $35 an ounce (in 2012) to less than $15 an ounce during the conspiracy, the company experienced massive losses and had to spend customer funds due to margin calls.
To cover up U.S. Coin Bullion’s losses, the Espositos provided customers with false account statements making it appear that the company had purchased the silver for the customers (not itself) and that their accounts maintained value despite any drop in the market price of silver. Ultimately, U.S. Coin Bullion’s margin purchases resulted in a loss of nearly all the market value of the silver that its customers believed they had purchased and held.
This case was investigated by the U.S. Secret Service, with assistance from the Florida Attorney General's Office of Citizen Services – Consumer Assistance Program, which has provided invaluable assistance with the victims. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Oneonta Man Sentenced for Social Security FraudRead the Press Release
BINGHAMTON, NEW YORK – Jason L. Wentworth, age 35, of Oneonta, New York, was sentenced on January 2 to five years of probation for stealing Social Security survivors benefits and for making false statements to the Social Security Administration that enabled Wentworth to obtain those benefits.
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA) Office of the Inspector General, New York Field Division.
On August 21, 2019, Wentworth pled guilty to a six-count indictment charging three counts of theft of government property, one count of representative payee fraud, and two counts of making false statements in connection with his theft of Social Security benefits. Following his wife’s death, Wentworth applied for and received survivors benefits on his son’s and his own behalf, and continued to receive and keep those benefits, even after the son’s maternal grandparents took over as his son’s primary caregivers. Wentworth was not entitled to collect benefits on his own behalf once he stopped serving as the primary caregiver for his son.
Senior United States District Judge Thomas J. McAvoy also ordered Wentworth to pay restitution to the government in the amount of $27,525 and restitution to his son in the amount of $25,035. Additionally, Judge McAvoy ordered Wentworth to forfeit $3,822.
This case was investigated by the SSA Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Emily C. Powers.