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Monday 6 January 2020
Two Men Sentenced to Prison for Illegal Firearm PurchasesRead the Press Release
NORFOLK, Va. – An Alexandria man and a Virginia Beach man were sentenced to prison today for illegally buying and possessing firearms, and for possessing firearms while involved in drug-trafficking crimes.
According to court documents, Ernest Dwayne Riley, 32, and Kaleb Raine Reiter, 22, were prohibited persons who purchased guns at different times from Julio Pino, a former U.S. Navy sailor who was sentenced in March 2019 for trafficking at least 60 firearms.
Riley was sentenced to more than four years in prison, while Reiter was sentenced to 10 years.
At the time Riley bought a gun from Pino, he had been convicted in Maryland of a misdemeanor punishable by 10 years in prison. He also purchased multiple hollow-point rounds of ammunition from Pino. Several months later, Riley attempted to purchase a gun at a federally licensed gun store and lied on the form about his prohibited status. While processing Riley’s gun application, the gun store clerk discovered Riley’s conviction and turned him down.
Riley was arrested in July 2019 during a traffic stop. His $60,000 Range Rover had a “Ghost Tag”—a license plate that does not come back on file when it is entered into DMV and police databases. Riley also provided the arresting officer with a fraudulent vehicle registration. The officer recovered from Riley’s SUV yet another handgun—this one loaded with an extended magazine—THC oil, and prescription pills inside a pill bottle with the label torn off.
Evidence recovered from Riley’s phone and subpoenaed from his financial accounts showed that for the last few years, he was making hundreds of thousands of dollars trafficking marijuana and THC oil from California into Hampton Roads—the same brand of THC oil recovered from his vehicle.
And at the time Reiter purchased a gun from Pino, he was drug user, including heroin, Xanax, and marijuana. Police later recovered that gun lying next to several MDA baggies while searching Reiter’s van during his arrest—he was wanted for assaulting and attempting to abduct someone driving next to him while both were stopped at a major Virginia Beach intersection in the middle of the day and, hours later, pointing that gun at his ex-girlfriend and her mother.
A year later, Reiter directed a teenage girl to steal a handgun from her stepfather. He then traded cocaine to the girl in exchange for the stolen gun.
Two months after that, Reiter brandished a third gun, pointing it at the victim of a vehicle accident he was involved in. A police officer later arrested him while in possession of that gun, Xanax, and a digital scale after receiving complaints that he had passed out in a booth at a local restaurant.
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. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-124.
Two Indiana Men Sentenced to 10 years for Armed Robbery of Swan Serv-U PharmacyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced on January 6, 2020, that Antonio Jamerson (age: 21) was sentenced to 124 months’ imprisonment and Elix Powell (age: 21) was sentenced to 120 months’ imprisonment for their involvement in the armed robbery of the Swan Serv-U Pharmacy.
The investigation revealed that Jamerson and Powell traveled from Indianapolis, Indiana, to Milwaukee, Wisconsin, arriving during the early morning hours of December 28, 2016. At approximately 9:15 a.m., the defendants, armed with a firearm, robbed the Swan Serv-U Pharmacy, in Wauwatosa, Wisconsin. At the sentencing, Judge J.P. Stadtmueller emphasized the extremely violent nature of the robbery, including the fact that the defendants physically restrained multiple victims.
“The United States Attorney’s Office will continue to prosecute and seek substantial prison sentences for anyone who uses a firearm to terrorize our communities,” said United States Attorney Krueger. “The lengthy sentences imposed here resulted from an outstanding collaborative law enforcement effort by the FBI’s Milwaukee Area Violent Crime Task Force, the Wauwatosa Police Department, and the Milwaukee County District Attorney’s Office.”
The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent criminals who commit armed robbery of businesses involved in interstate commerce. The U.S. Attorney’s Office and the District Attorney’s Office collaborate together to ensure that violent offenders are effectively prosecuted, making our communities safer for all.
This case was prosecuted under the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
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://go.usa.gov/xpBrs
This case was prosecuted by Assistant United States Attorney Laura S. Kwaterski.
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Public Information Officer Kenneth Gales 414-297-1700
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Three Visalia Residents Plead Guilty to Conspiracy and Production of False Identification DocumentsRead the Press Release
FRESNO, Calif. — Elfego Alcala, 47, Tamilene Cisneros, 49, and Aida Corona, 38, of Visalia, pleaded guilty today to conspiracy and production of false identification documents, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Feb. 2018 and Aug. 8, 2018, the defendants conspired to produce and sell false identification documents. On March 12, 2018, they engaged in a transaction in which they manufactured and sold three false Lawful Permanent Resident (LPR or “green card”) and three false Social Security cards that appeared to be issued by and under the authority of the United States.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
Co-conspirator Maria Elena Soriano Salinas, 58, previously pleaded guilty to the same offenses and to being a deported alien found in the United States. On Nov. 4, 2019, she was sentenced to 27 months in prison.
Alcala, Cisneros, and Corona are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 27. They each face a maximum statutory penalty of 15 years in prison and a $25,000 fine. The actual sentence, however, will 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.
Three Fort Dodge Men Plead Guilty to Gun and Meth ChargesRead the Press Release
Three Fort Dodge men who conspired to distribute methamphetamine and illegally possessed stolen guns pled guilty in federal court in Sioux City.
Marcus Swan, 29, pled guilty December 31, 2019, Lucas Osborne, 30, pled guilty August 20, 2019, and Kenneth Petersen, 41, pled guilty on September 10, 2019. Each pled guilty to one count of conspiracy to distribute methamphetamine and one count of possession of stolen firearms.
At their respective plea hearings, each admitted to distributing at least 100 grams of pure methamphetamine in the Fort Dodge, area from October 2018 through February 2019. Evidence also showed that together they possessed five guns that had been stolen during a burglary in Kossuth County, Iowa. Swan and Petersen were also prohibited from possessing guns based on their prior felony convictions. Osborne was an unlawful user of methamphetamine and prohibited from possessing guns.
Sentencings before United States District Court Chief Judge Leonard T. Strand for Osborne and Petersen have been set for January 28, 2020. Sentencing for Swan will be set after a presentence report is prepared. Each remain in custody of the United States Marshal and will remain in custody pending sentencing. Each face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 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, Kossuth County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3017. Follow us on Twitter @USAO_NDIA.
Three Defendants Plead Guilty to Conspiring to Fraudulently Sell Imported Jewelry from the Philippines as Native American-MadeRead the Press Release
Three members of an international conspiracy to import knock-off jewelry from the Philippines and misrepresent it as Native-American have pleaded guilty for their roles in the fraudulent scheme, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Michael Bailey of the District of Arizona.
On Jan. 6, all three defendants pleaded guilty before U.S. Magistrate Judge John Z. Boyle of the District of Arizona. Laura Marye Wesley, a.k.a. Laura Lott, 32, pleaded guilty to one count of conspiracy to commit misrepresentation of Indian-produced goods, wire fraud, mail fraud, and entry of goods by means of false statements and smuggling goods, for her role in the manufacture, importation, and sale of knock-off jewelry as Native American-made. Wesley is scheduled to be sentenced on March 30, 2020.
Christian Coxon, 46, pleaded guilty to one count of conspiracy to misrepresent Indian-produced goods and to commit wire fraud, for his role in ordering and misrepresenting imported, knock-off jewelry as Native American-made at his retail store Turquoise River Trading Company, located in San Antonio, Texas. Coxon is scheduled to be sentenced on March 23, 2020.
Waleed Sarrar, a.k.a. Willie Sarrar, 44, pleaded guilty to one count of conspiracy to misrepresent Indian-produced goods and to commit wire fraud, for his role in ordering and misrepresenting imported, knock-off jewelry as Native American-made at his retail store Scottsdale Jewels, located in Scottsdale, Arizona. Sarrar is scheduled to be sentenced on March 30, 2020.
According to information that the defendants admitted to as part of their pleas, from January 2016 through February 2019, they conspired with each other, and others, to design jewelry in the Native-American Indian-style and manufacture the jewelry in the Philippines with Filipino labor. The defendants also conspired to import the jewelry from the Philippines to Arizona without indelible markings as required by law, and display, advertise, and sell the jewelry to customers based on false representations that the jewelry items were made by Indians in the United States. To perpetrate the fraud scheme, the defendants and their conspirators communicated by phone, text, and email, including across state and country borders; used private commercial shipping services such as FedEx to import jewelry from the Philippines to the United States; paid for the jewelry inventory through credit cards, including via web-based credit card processors, and by check; and charged the credit cards of customers who purchased the imported Indian-style jewelry.
As part of her plea, Wesley agreed that she owned and operated LMN Jewelers, a jewelry business that specialized in the sale of Native-American-style jewelry, and co-owned and co-operated Last Chance Jewelers, a similar jewelry business. She also admitted to removing “Made in the Philippines” stickers from bags of imported jewelry, smuggling jewelry into the U.S. from the Philippines through the U.S. Postal Service to avoid inspection by federal authorities at the port of entry, wiring money to the Philippines to cover the costs of the jewelry-making business there, working with Filipino factory workers who were manufacturing the knock-offs, and delivering the knock-off Native-American-style jewelry to retail jewelry stores in Arizona, Colorado, California, Texas, Minnesota, Utah, and elsewhere.
The defendants face a maximum penalty of up to five years in prison and fines up to $250,000. Their sentencing dates have not yet been set.
The Indian Arts and Crafts Act (IACA) prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian and Indian tribe. The law is designed to prevent products from being marketed as “Indian made,” when the products are not, in fact, made by Indians. It covers all Indian and Indian-style traditional and contemporary arts and crafts produced after 1935, and broadly applies to the marketing of arts and crafts by any person in the United States. The IACA provides critical economic benefits for Native American cultural development by recognizing that forgery and fraudulent arts and crafts diminish the livelihood of Native American artists and craftspeople by lowering both market prices and standards.
This case was investigated by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service and the Phoenix Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the U.S. Department of the Interior Indian Arts and Crafts Board and Office of Law Enforcement and Security, the Arizona Game and Fish Department, the U.S. Forest Service Law Enforcement and Investigations, and the Texas Game Wardens. Trial Attorney Mona Sahaf of the Criminal Division, Human Rights and Special Prosecutions Section, and Assistant U.S. Attorneys Peter Sexton and Mark Wenker are prosecuting the case.
Ten Drug Dealers from Mill Creek Section of West Philadelphia Sentenced for Years’ Long Distribution Conspiracy and Violent Turf WarRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that several defendants were sentenced by the Honorable Juan R. Sanchez for their involvement in a years’ long drug distribution conspiracy and related crimes, the last of whom, Bryant Calloway, was sentenced today to lifetime imprisonment.
From about 2010 until about May 7, 2015, a group of individuals sold crack cocaine at all times of day and night on a public playground located at the intersection of 52nd and Westminster Streets, in West Philadelphia, and on its surrounding streets known collectively as “the Grounds.” “The Grounds” drug distribution group relied on a number of street level sellers who were supplied by Frederick Porter. Porter, in turn, purchased cocaine and crack cocaine from Robert Mack, the ultimate supplier for “the Grounds” group. Meanwhile, mere blocks away, a rival drug distribution group also sold crack cocaine, at all times of day and night, out of another neighborhood public playground, called “the Pit,” located near to the intersection of 51st and Funston Streets, also in West Philadelphia. “The Pit” group was led by Sean Gilliam, who supplied the street level drug dealers.
Both groups were investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) after a series of shootings, over drug turf, that occurred between the rival groups in 2013. The shootings began on August 5, 2013, when Bryant Calloway, a member of “the Pit” drug group, shot and killed Brian Littles, a seller for “the Grounds” group, in an effort to expand “the Pit’s” drug territory. In retaliation for Littles’ murder, Calloway was shot several times by James Wilson, a member of “the Grounds.” Then, in response to Calloway being shot, Sean Wilson, a member of “the Pit,” went to “the Grounds” area and shot an innocent bystander that he believed, wrongly, was responsible for Calloway’s shooting. The ATF investigation resulted in the defendants being charged for their involvement in drug distribution, firearms offenses, shootings, and murder. All charged defendants, from each group, were convicted by either guilty plea or jury verdict and have now been sentenced.
The defendants associated with “the Grounds” are:
- Robert Mack, a/k/a “Tweet,” age 53, sentenced to 17 years’ imprisonment;
- Kenneth Riley, a/k/a “Kenny,” age 26, sentenced to 10 years’ imprisonment;
- James Wilson, a/k/a “J.T.,” age 28, sentenced to 15 years’ imprisonment;
- Mark Samuel, age 28, sentenced to 6 ½ years’ imprisonment; and
- Xavier Towel, a/k/a “Zay,” age 26, sentenced to 20 months’ imprisonment.
The defendants associated with “the Pit” are:
- Bryant Calloway, a/k/a “Bigs,” age 32, sentenced to lifetime imprisonment;
- Sean Gilliam, a/k/a “Shizzy Ones,” age 42, sentenced to 12 years’ imprisonment;
- Sean Wilson, a/k/a “Lil Shizz,” age 26, sentenced to 15 years’ imprisonment;
- Tonie Henderson, a/k/a “Tone,” age 29, sentenced to 12 ½ years’ imprisonment; and
- Tyree Johnson, a/k/a “Riq,” age 43, sentenced to 9 years’ imprisonment.
“These two violent drug gangs wreaked havoc in this West Philadelphia neighborhood, terrorizing the people living there,” said U.S. Attorney McSwain. “When we see concentrated violence like this, it is often the case that a small group of people is causing the destruction. These perpetrators need to be arrested, charged and aggressively prosecuted in order to protect those who are trying to live peacefully and to deter others from similar lawlessness. All of these criminals will now be serving lengthy sentences in federal prison – which is where they belong.”
“A key component of ATF’s mission is to combat and reduce violent crime. The sentence that was handed down today is another victory in the battle against violent crime for ATF, our law enforcement partners, and more importantly, the citizens of Philadelphia,” said ATF Special Agent in Charge Donald Robinson. “This sentence is a perfect example of the collaborative effort between the ATF, the United States Attorney’s Office and the Philadelphia Police Department to target violent offenders that are responsible for drug trafficking and related gun violence in our communities.”
“The investigation, arrests, and successful prosecution of the members of these two dangerous rival groups serve as evidence of the merits of sustained collaboration between law enforcement agencies. We expect the attendant sentencings to have an appreciable impact on the safety and quality of life for the residents of the Mill Creek community,” said Acting Philadelphia Police Commissioner Christine Coulter.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and Seth Schlessinger.
Stroudsburg Man Sentenced to 20 Years’ Imprisonment for Sex Trafficking and Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sirvonn Taylor, age 37, of Stroudsburg, Pennsylvania, was sentenced to 20 years’ imprisonment on January 3, 2020, by U.S. District Court Judge Malachy E. Mannion, for heading-up a conspiracy that forced or coerced women to engage in prostitution in northeastern Pennsylvania, and that distributed more than a kilogram of heroin in Pennsylvania and Maine.
According to United States Attorney David J. Freed, Taylor, who used the gang name “Black,” previously pleaded guilty to conspiring with others to commit sex trafficking by force, fraud, and coercion and to distribute more than a kilogram of heroin (which is approximately equivalent to more than 40,000 retail bags) between 2010 and 2015.
Taylor’s conviction and sentence resulted from an investigation into the activities of a street gang known as the Black P-Stones. Male gang members were “beaten-in” to the gang and female members were “sexed-in” to the gang. Members of the Black P-Stones obtained heroin and other drugs, including “molly,” in New York and distributed the drugs in Stroudsburg and locations in the state of Maine. Couriers were used to transport heroin from New York to Maine.
Females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various are hotels/motels to work as prostitutes. Gang members, including Taylor, used threats, force, drugs, and intimidation to coerce females to engage in prostitution.
Judge Mannion also ordered the defendant to serve eight years of supervised release following his prison sentence. Taylor must also comply with sex offender registration and notification requirements.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, state and local police in Maine, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of 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.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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St. Joseph Man Sentenced to Seven Years in Prison for Child Pornography CrimesRead the Press Release
URBANA, Ill. – A St. Joseph, Ill., man, William M. Bell, 40, who was previously an information technology employee of Monticello, Ill., community unit school district 25, was sentenced today to seven years in prison for child pornography crimes. Bell has remained in the custody of the U.S. Marshals Service since his arrest on Feb. 8, 2019.
On April 18, 2019, Bell entered pleas of guilty to using a computer or device in July and August 2018, to send visual depictions of minors engaged in sexually explicit conduct, and in November 2018, possession of images of child pornography.
The case was prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges resulted from an investigation by the Federal Bureau of Investigation, the Champaign County Sheriff’s office, and the Internet Crimes Against Children Task Force of the Illinois Attorney General’s Office.
The case was brought as part of Project Safe Childhood, a nationwide Department of Justice initiative, to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sioux City Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced January 2, 2020, to 15 years in federal prison.
Julio Cesar Salais, 46, from Sioux City, Iowa, received the prison term after an August 6, 2019, guilty plea to conspiracy to distribute methamphetamine and distributing methamphetamine within 1000 feet of a protected location. Salais had already been convicted of conspiracy to distribute methamphetamine in the Northern District of Iowa District Court, in 1996 and 2002, respectively.
At the guilty plea, Salais admitted that from May 2018 through March 2019, he and others conspired to distribute more than 1.5 kilograms of methamphetamine in the Sioux City, Iowa area. Salais further admitted that on two occasions he distributed more than 300 grams of pure methamphetamine to an individual cooperating with law enforcement. These distributions occurred within the protected locations of Irving Elementary School, Sioux City Alternative School and Opportunities School at the Boys and Girls home in Sioux City.
Salais was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Salais was sentenced to 180 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system. Salais is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4024.
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Raytown Man Convicted of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Raytown, Missouri, man was convicted in a bench trial today of illegally possessing a sawed-off shotgun that he sold to an undercover federal agent.
James E. Hawkins, 36, was found guilty by U.S. District Judge Roseann Ketchmark of being a felon in possession of a firearm and of possessing an unregistered firearm.
According to evidence introduced during the bench trial, Hawkins was in possession of a Remington 12-gauge shotgun on Jan. 12, 2018. The sawed-off shotgun had a barrel of less than 18 inches in length, which Hawkins was not registered to possess. Hawkins sold the shotgun to an undercover special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives for $260. Hawkins told the undercover agent that he used a hacksaw to shorten the barrel himself.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition. Hawkins was on probation at the time of the offense following his state felony conviction for being a felon in possession of a firearm.
Under federal statutes, Hawkins is subject to a sentence of up to 10 years in federal prison without parole on each of the two counts. 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 Special Assistant U.S. Attorney Robert Smith and Assistant U.S. Attorney Ashleigh Ragner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Pittsburgh Man Pleads Guilty to Federal Drug ChargeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Timothy Bonner, age 38, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Bonner conspired to distribute 500 grams or more of cocaine, a Schedule II controlled substance and a quantity of marijuana from April 2017 through April 2019.
Judge Horan scheduled sentencing for April 27, 2020 at 10 a.m. The law provides for a total sentence of not less than five years and not more than forty years in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Bonner. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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. In this case, the Lawrence County Drug Task Force and the New Castle Police Department also participated in the investigation.
Owner of Used Car Dealership Admits Conspiracy to Steal Payments from U.S. Department of Defense, Bank Fraud and Money LaunderingRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a conspiracy to defraud the U.S. Department of Defense (DoD), U.S. Attorney Craig Carpenito announced.
Hurriyet Arslan, 49, of Willingboro, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to commit mail, wire and bank fraud, one count of bank fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
Corporation 1 had a contract with the DoD to supply jet fuel to troops operating in southeast Asia. Corporation 1 employed an individual in Fort Lee, New Jersey – identified as “Victim 1” – who was responsible for communicating with the federal government through a government computer system.
Conspirators located overseas designed and deployed on the Internet fraudulent web pages (phishing pages) that resembled the public-facing website of the General Service Administration. From June 2018 through September 2018, the conspirators caused phishing e-mails to be sent to various DoD vendors, including Victim 1, in an attempt to trick the vendors into visiting the phishing pages. These e-mails appeared to be legitimate but were actually fraudulent e-mails that contained electronic links to the phishing pages. Those customers who clicked on the electronic links were directed automatically to the phishing pages, where they saw what appeared to be the GSA’s System for Award Management (SAM) website and were prompted for, and entered, their log-in credentials and personal key.
The conspirators caused Victim 1’s log-in credentials and personal key to be intercepted and transmitted, not to the GSA, but to computers and e-mail accounts that the conspirators controlled.
Arslan was the owner of Deal Automotive Sales in Florence, New Jersey. At the request of an individual in Germany, he opened a shell company based in New Jersey, with a mobile phone number and bank account. Arslan sent the mobile phone SIM card and bank account information to a conspirator in California. For doing this, Arslan received two wire transfers from someone in Turkey. Due to suspicious activity, the bank shut down the bank account, and the conspirator in California asked Arslan for his account information for Deal Automotive, which he provided.
On July 27, 2018, DoD awarded Corporation 1 a $23.5 million contract to provide Aviation JA1 Turbine fuel to troops operating in southeast Asia. The conspirators used Victim 1’s log-in credentials to access Corporation 1’s government account and changed the bank account information to reflect a bank account controlled by Arslan. The conspirator in California contacted the DoD, identifying himself as Victim 1, and confirmed that Corporation 1’s payment method had been changed to the Deal Automotive Sales bank account.
DoD transferred $23.5 into Arslan’s Deal Automotive Sales bank account, which Arslan accessed at a branch in Burlington County and transferred a portion of the money to other accounts he controlled.
The counts of conspiracy and bank fraud to which Arslan pleaded guilty carry a maximum potential penalty of 30 years in prison and a fine equal to the greatest of $1 million or twice the gross profits received or gross loss from the offense. The count of money laundering to carries a maximum penalty of 10 years in prison and a fine of $250,000 or two times the gross profits received from the offense or two times the gross loss sustained by the victims. Sentencing is scheduled for April 13, 2020.
U.S. Attorney Carpenito credited criminal investigators of the United States Attorney’s Office, special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of the General Service Administration, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Lobaugh, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Sara Aliabadi of the U.S. Attorney=s Office Criminal Division in Camden.
Orange County Woman Sentenced to 15 Months in Prison for Stealing Social Security Benefits Intended for the Disabled and ElderlyRead the Press Release
LOS ANGELES – A former Social Security Administration (SSA) employee who stole more than $176,000 in Social Security benefits designated for elderly and disabled people was sentenced today to 15 months in federal prison.
Rowena Isabel Lokeni, 36, of Garden Grove, was sentenced by United States District Judge John F. Walter, who also ordered her to pay $176,015 in restitution to the SSA. Lokeni pleaded guilty last October to one count of wire fraud. She resigned from the SSA shortly after her arrest in this case last September.
The SSA hired Lokeni in 2007, and she worked as a lead customer service representative in the administration’s field office in Fountain Valley. She was responsible for providing direct services to the public, including determining the nature of a visit or call, resolving problems, screening for eligibility, and explaining benefit inquiries. In that capacity, Lokeni had computer access to electronic records of SSA beneficiaries.
From her work cubicle, between April 2017 and August 2019, Lokeni accessed the SSA computer databases and queried the records of 10 Social Security beneficiaries. Once she accessed the victims’ records, Lokeni fraudulently changed each victim’s direct deposit bank account and routing numbers to instead reflect her personal bank account’s routing and account numbers.
Of the 10 victims whose Social Security benefits were affected by Lokeni’s fraud, eight victims were supposed to be receiving disabled adult children benefits because they were unmarried adults who had a disability that began prior to their 22nd birthday. Many of these victims have severe intellectual disabilities and were staying at adult care facilities. The ninth victim was supposed to be receiving disability insurance benefits, while the 10th victim was supposed to be receiving retirement insurance benefits.
Lokeni has admitted to fraudulently obtaining a total of approximately $176,015 in Social Security payments.
“[Lokeni’s] actions evinced an utter disregard for the responsibility of her position, for the hardworking Americans who pay their fair share to sustain the SSA program benefits, and for the most vulnerable members of society,” the prosecution wrote in a sentencing memorandum.
Social Security Administration – Office of the Inspector General investigated this matter.
This case was prosecuted by Assistant United States Attorney David H. Chao of the Major Frauds Section.
Operation Shutdown Corner Update: Two Defendants Enter Guilty Pleas to Federal Drug CrimesRead the Press Release
BECKLEY, W.Va. – A Beckley woman and a Columbus, Ohio man pled guilty today for their participation in a drug trafficking operation in Raleigh County, announced United States Attorney Mike Stuart. Stephanie McClung, 48, and Jason Johnson, 31, both entered guilty pleas to conspiracy to distribute 50 grams or more of a substance containing methamphetamine. McClung and Johnson were charged as a result of a long-term investigation known as Operation Shutdown Corner.
“Operation Shutdown Corner dismantled a multi-state meth pipeline from California to West Virginia,” said United States Attorney Mike Stuart. “McClung and Johnson were two of the 17 individuals charged as a result of the investigation.”
McClung admitted that between June 2018, and September 17, 2019, she worked with other members of a drug trafficking organization (DTO) operating in Raleigh County, West Virginia to distribute methamphetamine. McClung admitted that during this time period she was supplied with distribution amounts of controlled substances from various members of the DTO. She also admitted to selling the controlled substances, which included methamphetamine and heroin, to individuals that she now understands were working with law enforcement as confidential informants. She further admitted to allowing another member of the DTO to have controlled substances delivered to her address. She admitted to allowing this on at least two separate occasions. On one occasion approximately one pound of methamphetamine was delivered and on a second occasion a quantity of heroin was delivered to her address.
Jason Johnson admitted that between June 2018, and September 17, 2019, he participated in the drug trafficking organization by supplying Stephanie McClung and others with distribution amounts of methamphetamine and heroin. During this time period, Johnson admitted to selling more than 50 grams of a substance containing methamphetamine to McClung knowing it was her plan and purpose to re-distribute those drugs in and around Raleigh County and the Southern District of West Virginia. Johnson admitted to meeting with McClung several times a week to supply her with drugs.
Stuart commended the cooperative investigative efforts of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department, and the West Virginia State Police.
Both McClung and Johnson face a mandatory minimum period of five years and up to forty years in prison and a $5,000,000 fine when they are sentenced on April 20, 2020.
Assistant United States Attorneys Timothy D. Boggess and Andrew J. Tessman are in charge of the prosecutions. The plea hearing was held before United States District Judge Frank W. Volk.
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Operation Free Market Update: Huntington Man Pleads Guilty to Federal Drug Conspiracy and Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty to a federal drug conspiracy and a gun crime, announced United States Attorney Mike Stuart. George Lockhart, 44, pled guilty to an indictment charging him with conspiracy to distribute heroin and fentanyl and being a felon in possession of a firearm.
“Lockhart was a felon conspiring with others to distribute deadly heroin and fentanyl in Huntington,” said United States Attorney Mike Stuart. “This is yet another successful law enforcement operation that dismantled a drug trafficking network.”
Lockhart admitted that between December 2018 and May 2019 he conspired with other individuals to distribute heroin and fentanyl in Huntington, West Virginia. Lockhart admitted other individuals sold drugs for him at his direction. He also admitted to possessing a firearm during a search warrant in May 2019. He was prohibited by federal law to possess a firearm because he had been convicted of Voluntary Manslaughter in January 2011.
Lockhart faces up to thirty years in prison when he is sentenced on April 6, 2020.
Operation Free Market was a long-term drug investigation in the Huntington area. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Ohio man admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA –David Frankenhoff, of Newark, Ohio, has admitted to a drug distribution charge, U.S. Attorney Bill Powell announced.
Frankenhoff, age 51, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute 3,4-Dichloro-N-[2-(dimethylamino) cyclohexyl]-Nmethylbenzamide (“U47700”).” Frankenhoff admitted to working with another to distribute “U47700,” a synthetic opioid, from June 2016 to December 2016 in Ohio County and elsewhere.
Frankenhoff faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The United States Postal Inspection Service investigated.
U.S. Magistrate Judge James P. Mazzone presided.
NASA Contractor Agrees to Pay $375,000 to Settle False Claims Act LiabilityRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces today that United Paradyne Corporation has agreed to pay the United States $375,000 to resolve allegations that it violated the False Claims Act by submitting claims to NASA for assembling and cleaning rocket launch systems that it had failed to perform.
The settlement relates to United Paradyne’s agreement to provide NASA with certain ground support equipment designed to support NASA’s Space Launch System (SLS) rocket and Orion space capsule for NASA’s Artemis program. Specifically, United Paradyne agreed to fabricate five Hydraulic Accumulator Rack Assembly Swing Arm Systems for the mobile launcher. The hydraulic accumulator racks actuate swing arms, also called umbilicals, on the mobile launcher and are responsible for providing the SLS rocket and Orion space capsule with power, communications, coolant, fuel, and stabilization prior to launch. The Crew Access Arm umbilical was designed for astronauts to access the Orion capsule and will be used on NASA’s Artemis II mission, the first SLS and Orion flight with astronauts in 2022.
According to the settlement agreement, United Paradyne submitted claims under NASA-KSC Contract No. NNK14EA09D for payment for delivery of the accumulator racks that failed to conform to the requirements of the contract approved by NASA. More specifically, the United States alleged that United Paradyne delivered five accumulator racks between August 11 and October 19, 2015, and that United Paradyne failed to clean the racks, failed to verify cleanliness, and failed to maintain cleanliness throughout functional testing and final inspection, and falsely certified that it conformed to NASA’s requirements.
“Violating NASA’s contractual requirements raises danger and risks to our space program and its personnel as well as harms the integrity of the federal contracting process,” said U.S. Attorney Maria Chapa Lopez. “The U.S. Attorney’s Office remains committed to enforcing federal law and ensuring a system of fair play for all government contractors.”
“The NASA Office of Inspector General will continue to aggressively investigate all Whistleblower Qui Tam fraud allegations related to NASA operations and the building of the next generation space launch vehicle and related ground support equipment. I congratulate the Department of Justice and the Whistleblower Qui Tam relator in coming to an acceptable resolution in this civil matter with United Paradyne Corporation,” said Special Agent in Charge John Corbett, Central Field Office, NASA OIG.
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by a former employee of United Paradyne, Steven Walker. Mr. Walker sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Mr. Walker will receive $75,000 of the proceeds from the settlement with United Paradyne.
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the NASA Office of Inspector General. Assistant United States Attorney Jeremy R. Bloor led the investigation.
The case is captioned United States ex rel. Steven James Walker v. United Paradyne Corporation, Case No. 6:17-cv-01507-ORL-18-TBS. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Modesto Man Sentenced to over 26 Years in Prison for Multistate Drug TraffickingRead the Press Release
FRESNO, Calif. — Joseph Vasquez Jr., 32, of Modesto, was sentenced today to 26 years and eight months in prison for an operation that distributed methamphetamine from Modesto to Juneau, Alaska, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence produced at trial, Vasquez was part of a drug trafficking organization operating in the Central Valley, Alaska, and Tacoma, Washington between Jan. 1, 2015, and April 11, 2018. As a result of the year-long investigation, 45 pounds of methamphetamine, 4 pounds of heroin and 3 pounds of cocaine were seized. On Oct. 3, 2019, after a three-day trial, a federal jury in Fresno found Vasquez guilty of conspiring to distribute methamphetamine and distribution of methamphetamine.
Five co-defendants charged on April 5, 2018, pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances, including methamphetamine, cocaine, and heroin. Alecia Trapps, 56, of Manteca, is scheduled to be sentenced on March 30, 2020. Jimmy Brantley, 42, of Manteca, was sentenced on Oct. 28, 2019, to 10 years in prison. On Oct. 21, 2019, Carmen Conejo, 53, of Long Beach, was sentenced to five years of probation; Ernest Westley, 62, of Modesto, was sentenced to two years and eight months in prison; and Sheena Taylor, 41, of Modesto, was sentenced to 12.5 years in prison.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, Homeland Security Investigations, the Central Valley Gang Impact Task Force, Modesto Police Department, Manteca Police Department, California Highway Patrol, Stanislaus County District Attorney’s Office, Whatcom County Sheriff’s Department (Washington), Pierce County Sheriff’s Department (Washington), and Juneau Police Department (Alaska). Assistant U.S. Attorneys Melanie L. Alsworth and Laurel J. Montoya are prosecuting the case.
Milford Man Pleads Guilty to Drug Charge Stemming from Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on January 3, 2020, ANTHONY AMATO, 31, of Milford, pleaded guilty before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute fentanyl and heroin.
According to court documents and statements made in court, on August 26, 2019, the Milford Police Department and emergency medical personnel responded to a Milford rooming house on a report of a drug overdose at the location. Inside the residence, a 28-year-old male was pronounced deceased. At the scene, investigators interviewed witnesses and collected evidence related to narcotics use, including needles and wax folds, some of which contained suspected heroin.
The investigation revealed that the overdose victim and Amato, who resided in another room in the rooming house, were together in the afternoon of August 24, 2019. On August 29, 2019, a court-authorized search of Amato’s room revealed multiple ripped wax folds and other narcotics-related evidence. Some of the wax folds were marked with the same stamp as the wax folds found in the victim’s room. Laboratory analysis of the wax folds revealed fentanyl and heroin residue.
Subsequent review of text communications between Amato and the victim revealed that Amato provided the victim with heroin in August 24, 2019.
Amato’s criminal history includes multiple convictions for narcotics-related charges in Connecticut, including a conviction for sale of narcotics for which he is currently on state probation.
Amato has been detained since his federal arrest on September 10, 2019. Judge Underhill scheduled sentencing for March 30, 2020, at which time Amato faces a maximum term of imprisonment of 20 years.
This investigation is being conducted by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
Middletown Man Charged in Federal Court in Connection with Use of Incendiary Device at Newark Planned ParenthoodRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Samuel James Gulick, 18, of Middletown, Delaware was charged today in the United States District Court for the District of Delaware in connection with utilizing an incendiary device to damage the Planned Parenthood facility in Newark, Delaware on January 3, 2020.
Gulick is charged in a three-count complaint with: (1) maliciously damaging a building used in interstate commerce through the use of fire or destructive device; (2) intentionally damaging a facility that provides reproductive health services; and (3) possession of an unregistered destructive device under the National Firearms Act.
According to court documents, at approximately 2:16 a.m. on January 3, 2020, an individual later identified as Gulick drove to the Planned Parenthood facility in Newark, Delaware. Video surveillance captured Gulick standing on the front porch of the building and spray-painting the phrase “Deus Vult” in red letters. Gulick then stepped off the front porch, lit an object and threw it at the front window of the Planned Parenthood facility. The object exploded and Gulick ran away. The fire burned for approximately one minute before self-extinguishing. The explosion damaged the front window and porch of the building. Through video surveillance, law enforcement identified a car operated by Gulick fleeing the scene. Law enforcement also identified Gulick through social media postings attributed to him, including posts containing the phrase “Deus Vult” and several anti-abortion posts. Gulick was arrested by the FBI without incident on January 4, 2020.
If convicted of the most serious offense - maliciously damaging the Planned Parenthood facility - Gulick faces a statutory minimum of five years and a maximum of 20 years in prison and a $250,000 fine. 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.
This case is being investigated by the FBI-Baltimore Division’s Wilmington Resident Agency with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Police Department, University of Delaware Police, Delaware State Police, , Delaware State Fire Marshal’s Office, and New Castle County Police Department. Assistant U.S. Attorney Adrienne C. Dedjinou is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-60M.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Michigan man sentenced for role in cocaine and heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jerel Seahorn, of Detroit, Michigan, was sentenced today to 30 months incarceration for drug distribution, U.S. Attorney Bill Powell announced.
Seahorn, also known as “L,” age 33, pled guilty to one count of “Distribution of Heroin” in August 2019. Seahorn admitted to selling heroin in March 2018 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Manhattan Man Arrested for Mailing Hoax Anthrax ThreatRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Phillip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the arrest of AMEEN KESHAVJEE for allegedly mailing a white powdery substance, along with a note indicating the substance was anthrax, to an employee at a Manhattan bar. KESHAVJEE is charged in a criminal Complaint, unsealed today, with one count of mailing a threatening communication and one count of conveying an anthrax hoax threat. KESHAVJEE was presented today in Manhattan federal court before U.S. Magistrate Judge Debra Freeman.
U.S. Attorney Geoffrey S. Berman said: “Today’s arrest makes clear that we will not tolerate anthrax threats. Thanks to the work of the FBI and the United States Postal Inspection Service, the defendant will have to answer for his alleged threatening actions.”
FBI Assistant Director William F. Sweeney Jr. said: “Even though there was no actual anthrax in the note allegedly mailed by Keshavjee, that doesn’t minimize the consequences of the crime. Hoax threats not only intimidate the victims they are intended for, they require extensive law enforcement resources that could be better used elsewhere. For anyone out there who might be contemplating a hoax of this nature, just remember Keshavjee now faces up to 10 years in prison for his alleged actions.”
USPIS Inspector-in-Charge Phillip R. Bartlett said: “As alleged, Mr. Keshavjee used scare tactics to show his displeasure with employees at the bar. Postal Inspectors remind the public that sending threats through the U.S. mail is illegal. These types of cases are aggressively investigated by Postal Inspectors and those allegedly involved will be arrested and brought to justice for their crimes.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
KESHAVJEE was a patron at a bar in the East Village neighborhood in Manhattan, and sent a series of communications via e-mail to an employee at the bar (“Employee-1”). In approximately February 2019, Employee-1 told KESHAVJEE that if KESHAVJEE continued sending him messages, he would no longer be welcome at the bar. KESHAVJEE stopped coming to the bar, but began sending threatening e-mails in which KESHAVJEE, among other things, indicated that he hoped for Employee-1’s death.
On December 9, 2019, KESHAVJEE mailed an envelope to Employee-1 at the bar. The envelope included a white powdery substance and a note indicating that the substance was anthrax. Upon opening the envelope, Empoyee-1 called 911. Law enforcement responded to the scene, secured the area, and seized the materials mailed by KESHAVJEE. The City of New York Department of Health and Mental Hygiene Public Health Laboratory later concluded that the materials did not contain anthrax.
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KESHAVJEE is charged with one count of mailing a threatening communication and one count of conveying an anthrax hoax threat, each of which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the FBI, the USPIS, and the FBI’s New York Joint Terrorism Task Force, which consists principally of agents from the FBI and detectives from the New York City Police Department.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Sam Adelsberg is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man sentenced for role in fentanyl trafficking operationRead the Press Release
LAREDO, Texas – A 27-year-old resident of Laredo has been sentenced to federal prison for his role in a conspiracy to possess with the intent to distribute nearly eight kilograms of fentanyl, announced U.S. Attorney Ryan K. Patrick.
Jesus Homero Ortiz pleaded guilty Sept. 4, 2019.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Ortiz to prison for 72 months to be immediately followed by three years of supervised release. At the hearing, the court heard testimony that Ortiz transported the fentanyl hidden inside a speaker box he later delivered to the Mall Del Norte in Laredo.
On March 2, 2018, authorities intercepted a delivery Ortiz transported. The delivery consisted of approximately eight kilograms of a highly dangerous synthetic painkiller called fentanyl. It has morphine-like effects, but works at a mere 100th of the dosage. Inadvertent exposure can result in overdose, respiratory failure and even death.
Authorities ultimately learned the fentanyl was on the way to Philadelphia, Pennsylvania.
Ortiz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Man Sentenced to more than 11 Years for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on January 6, 2020, Roman Ceballo Gaspar, age 25, was sentenced in federal court in Omaha, Nebraska, for Conspiracy to Possess and Distribute Methamphetamine. Senior United States District Court Judge Laurie Smith Camp sentenced Avalos to 135 months’ imprisonment. There is no parole in the federal system. Ceballo Gaspar also relinquished any right or claim he had to money seized during the investigation. After completing his term of imprisonment, Ceballo Gaspar will be deported to Mexico as he is not a U.S. citizen.
On April 26, 2018, agents and officers from Homeland Security Investigations and the Omaha Police Department executed a search warrant on Ceballo Gaspar’s Omaha residence. The search revealed approximately one pound of methamphetamine, $18,953 U.S. currency, and other evidentiary items.
Earlier that day, the Lancaster County Sheriff’s Office conducted a traffic stop on a vehicle driven by a co-defendant where twelve pounds of methamphetamine were found hidden inside the vehicle. Ceballo Gaspar admitted to his involvement in distributing methamphetamine in the Omaha metro area, and that he was expecting the delivery of the twelve pounds of methamphetamine from the co-defendant.
This case was investigated by the U.S. Department of Homeland Security Investigations, the Omaha Police Department, and the Lancaster County Sheriff’s Office.
Machesney Park Man Pleads Guilty to Robberies of Bank and Convenience StoreRead the Press Release
ROCKFORD — A Machesney Park man pleaded guilty today before U.S. District Judge John J. Tharp, Jr., to one count of armed robbery, one count of robbery, and one count of using and carrying a firearm during a crime of violence.
DAVID M. BANEY, 34, admitted in a written plea agreement that on Jan. 11, 2018, he walked into Chase Bank, 7997 N. Alpine Rd. in Loves Park, wearing a mask. Baney approached a teller who was behind the teller stations and demanded money from two tellers. During the robbery, Baney carried a gun and pointed it at a bank employee and a bank customer. Baney obtained $24,402 from Chase Bank during the robbery.
Baney also admitted that on the same day he possessed an object that appeared to be a firearm when he entered Kelley’s Market/Mobil gas station, 8200 N. Second St. in Machesney Park, and ordered an employee to give him cash from the registers and safe. The employee handed Baney $170 in cash but could not access the safe, and Baney left the store with the money.
Sentencing is set for April 6, 2020, at 10:00 a.m. Baney faces a maximum sentence of 20 years in prison on each of the robbery charges, and a maximum of life in prison - with a statutory minimum of seven years - for the firearm charge, which must be consecutive to any other sentence imposed. Each charge also carries a fine of up to $250,000, and restitution. The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Gary Caruana, Winnebago County Sheriff; Dan O’Shea, Chief of the Rockford Police Department; and Chuck Lynde, Chief of the Loves Park Police Department. The government is represented by Assistant U.S. Attorney Michael D. Love.
The investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, consisting of law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department, and Freeport Police Department. Officers from the Winnebago County Sheriff’s Department participated in the investigation.
Luzerne County Man Sentenced to 75 Months’ Imprisonment for Heroin Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Bangaroo, age 37, formerly of Kingston, Luzerne County, was sentenced on January 3, 2020, by U.S. District Court Judge Robert D. Mariani, to serve seventy-five months’ imprisonment for possession with intent to distribute heroin and possession of firearms in furtherance of drug trafficking.
According to United States Attorney David J. Freed, Bangaroo was indicted by a grand jury after police made several purchases of heroin from Bangaroo and then obtained a search warrant for Bangaroo’s residence in Kingston, where police seized approximately 20 grams of heroin, two firearms, and ammunition. Twenty grams of heroin is equivalent to approximately 800 individual doses of heroin.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Kingston Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 NCIS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
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Longtime gang member sentenced for drug and gun crimesRead the Press Release
CORPUS CHRISTI, Texas – A 42-year-old veteran member of the Homietos outlaw motorcycle gang has been ordered to federal prison following his convictions for conspiracy to possess with intent to distribute meth and being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick.
Larry Torres, 42, of Corpus Christi, pleaded guilty Sept. 27, 2019.
Today, U.S. District Judge David S. Morales sentenced Torres to serve 121 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard evidence including that Torres sold multiple ounces of meth to undercover agent and was a member of the Homietos outlaw motorcycle gang.
In June 2019, authorities were conducting investigations into drug trafficking organizations that distributed meth throughout the area. This led them to Torres’ residence on Old Brownsville Road in Corpus Christi where he was believed to be involved in the distribution of drugs.
The investigation involved the controlled purchases of more than 160 grams of high potency meth known as “ice.”
A search warrant at the residence resulted in the discovery of a firearm, ammunition, large capacity magazines, cocaine, narcotics packaging materials and other indicia of drug sales. Law enforcement also discovered Homietos gang paraphernalia and clothing.
Per federal law, Torres is prohibited from possessing firearms based on a prior felony conviction for possession of a controlled substance and for being a felon in possession of a firearm in 2009.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Corpus Christi Police Department Gang Unit and Texas Department of Public Safety conducted the joint investigation. Assistant U.S. Attorney David Paxton prosecuted the case, which was brought as part of Project Safe Neighborhoods, a nationwide initiative that brings together federal and local law enforcement officials, prosecutors and community leaders to stop violent crime.
Local man guilty of tax evasionRead the Press Release
VICTORIA, Texas – A Texas man has admitted he knew he had received significantly more income what he claimed on his 2015 U.S. Individual Income Tax Return, announced U.S. Attorney Ryan K. Patrick.
Corey Campbell Boucher pleaded guilty to one count of tax evasion.
As part of his plea, he admitted receiving significant income from illegal sports gambling in addition to his employment income. Boucher received his gambling winnings in cash which he deposited into his Wells Fargo bank accounts. Between 2012 and 2016, Boucher made cash deposits totaling $1,743,346. In 2015 alone, he deposited $493,935 in cash into his bank accounts but admitted he reported total income of only $128,066 on his Form 1040 United States Individual Income Tax Return for that year. His unreported income in 2015 resulted in $165,735 in unpaid taxes.
Senior U.S. District Judge John D. Rainey accepted the plea and set sentencing for April 6, 2020. At that time, Boucher faces up to three years in federal prison and a possible $250,000 fine.
Boucher was permitted to remain on bond pending sentencing.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Legislators Must Not Allow “Warrant-Proof Encryption” to Make America A More Dangerous PlaceRead the Press Release
William Craig Whisman came to a parking lot in Plano with a stuffed toy, intending to have sex with a young girl whose father had offered her up in a website chatroom. Earlier, Whisman had sent two videos to the father in which Whisman simulated the acts he wanted to commit on the young girl. Now, he was there to make his fantasy a reality.
Fortunately, the girl was not real. But after law enforcement discovered that Whisman had sent pictures of other children – this time real children he had secretly photographed while standing in line at a local Home Depot – officers ended their ruse and swept in to arrest him
When Whisman saw agents closing in, he turned off his phone. Security measures on the phone prevented officers from accessing its contents. Search warrants and subpoenaes were powerless to provide access because advanced encryption techniques protected Whisman’s secrets. Had real children been abused? Could abused children be hidden somewhere? Were there other child exploiters communicating with him that law enforcement could pursue and prevent from offending? Time was ticking, and officers needed to know the answers quickly to potentially prevent a tragedy.
The answers would not come for months.
Technology companies continue to advance security measures and implement “warrant-proof” encryption of data on communication devices. To be sure, encryption protects important privacy interests of law-abiding citizens. But encryption also provides a safe space for criminals to operate, shielding evidence of illegal activities from authorities. Terrorists, child predators, and other criminals should not be able to hide what they do from law enforcement, especially when investigators have been authorized by a court to search for evidence.
Common sense solutions are needed to protect the privacy of citizens while ensuring that criminals cannot hide their activities. The Fourth Amendment protects us all from unwarranted government intrusion, but the Constitution has always struck a balance between privacy and security by allowing law enforcement, upon a showing of probable cause, to access an individual’s zone of privacy. We ask for no more access to digital devices than what the Constitution already provides.
Today, more and more evidence of crime is digital. Evidence stored in a phone or on a laptop should not be protected more than evidence in a person’s home, which has always been considered the most private of places. By allowing dangerous criminals to cloak their communication behind an impenetrable digital shield, the deployment of warrant-proof technologies is already imposing a great cost on society.
Over a year after William Whisman was arrested, law enforcement finally was able to access his phone when new forensic techniques were implemented. On the phone were thousands of images of child pornography. Even more troubling, investigators found chat logs of conversations Whisman had been having with other men and women about the sexual abuse of children. As prosecutors secured a prison sentence of more than 24 years for Whisman, officers began the job they should have been able to do months before – investigating those individuals, rescuing children, and trying to prevent the evil that happens too often.
The United States must enact legislation to ensure lawful access for law enforcement, consistent with the traditional protections of privacy, to digital evidence of crime.
By Joseph D. Brown
United States Attorney, Eastern District of TexasKern County Man Sentenced to Seven Years in Federal Prison for Armed Bank Robberies in Long Beach, SLO CountyRead the Press Release
LOS ANGELES – A Kern County man was sentenced today to 84 months in federal prison for robbing banks in Long Beach and San Luis Obispo County while he brandished what appeared to be a handgun at the victim tellers.
Dino Tabar Trias, 45, of Bakersfield, was sentenced by United States District Judge R. Gary Klausner. Judge Klausner also ordered Trias to pay $4,001 in restitution to the victim banks. Trias pleaded guilty in September 2019 to one count of armed bank robbery.
Trias admitted in his plea agreement that he robbed a Comerica bank branch in downtown Long Beach on January 22, 2019. During that robbery, he displayed and brandished what appeared to be a handgun and demanded that the teller hand over the bank’s money. The teller, fearing for her life, handed $1,156 in cash to Trias.
On December 7, 2018, Trias robbed a Rabobank in Grover Beach. During the robbery, he showed a teller what appeared to be a gun in his waistband while he demanded the teller give him all of her money. The teller gave Trias $2,350 in cash.
Trias has been in federal custody since February 2019.
This matter was investigated by the FBI, the Long Beach Police Department, the Grover Beach Police Department, and the Bakersfield Police Department.
This case was prosecuted by Assistant United States Attorney Matthew J. Rosenbaum of the General Crimes Section.
Huntington Felon Sentenced to 114 Months in Federal Prison for Illegally Possessing GunsRead the Press Release
HUNTINGTON, W.Va. – A Huntington felon caught with multiple firearms last year was sentenced today to 114 months in federal prison, announced United States Attorney Mike Stuart. Randall Allen Eplion, Jr., 30, previously pled guilty to felon in possession of a firearm.
“Prosecutions like this are vital to public safety,” said United States Attorney Mike Stuart. “Eplion, a felon, was in possession of 21 firearms, including a machine gun. He traded meth for several of them. We continue to work closely with ATF and other law enforcement partners to enforce guns laws aimed at keeping guns out of the hands of felons and other prohibited persons.”
“ATF is committed to working with our law enforcement partners to protect communities from the illegal use of firearms and the often resulting violent crime,” stated ATF Acting Special Agent in Charge Tommy Estevan of the Louisville Field Division. “Taking stolen guns, including a machine gun, out of the hands of a convicted felon will go a long way toward making our neighborhoods safer for everyone.”
Eplion admitted that, on April 5, 2019, officers with the Huntington Police Department executed a search warrant at his residence located at 427 Rear 6th Avenue, Apartment E, in Huntington. During the search, officers found Eplion in possession of a number of firearms including a .45 caliber pistol, a 5.56 mm rifle, and a 12 gauge shotgun. Eplion was prohibited from possessing firearms based on a prior conviction for first degree robbery in Cabell County.
Eplion admitted as part of his plea that he possessed a total of 21 firearms that officers located during the search. Some of the firearms were stolen, including a weapon stolen from a police cruiser. Eplion admitted that he traded methamphetamine for a number of the firearms. Eplion also admitted that the 5.56 mm rifle qualified as a machinegun, the 12 gauge shotgun qualified as a short-barrel shotgun, and that neither of the firearms were registered as required by federal law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Hinds County Man Sentenced under Project EJECT to over Two Years in Federal Prison for Illegal Possession of FirearmRead the Press Release
Jackson, Miss. – Herbert Thomas, 41, of Jackson, was sentenced today before Chief U.S. District Judge Daniel P. Jordan to 30 months confinement, three years of supervised release, and a $1500 fine, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thomas was previously convicted of felonious motor vehicle theft and felony fleeing from a law enforcement officer in Hinds County in 2009. On January 23, 2018, Thomas fled from Jackson Police Department officers, first in his vehicle and then on foot, before ultimately being subdued by law enforcement. Upon a subsequent inventory of his vehicle, a firearm was located. When interviewed, Thomas admitted to both knowingly possessing the firearm as well as to his prior felony conviction.
Thomas pled guilty before Chief Judge Jordan on September 4, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and Jackson Police Department investigated the case. The case was prosecuted by Assistant United States Attorneys Lynn Murray and Andrew W. Eichner.
Hardy County man admits to methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Larry Allen Lyons, of Moorefield, West Virginia, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Lyons, age 55, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Lyons admitted to working with others to distribute more than 500 grams of methamphetamine from March 2018 to May 2018 in Mineral, Grant, and Randolph Counties.Lyons faces not less than ten years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Ravenswood Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Greenbrier County Man Pleads Guilty to Gun CrimeRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man pled guilty to a gun crime, announced United States Attorney Mike Stuart. Jonathan Felts, 30, of Smoot, pled guilty to being a felon in possession of a firearm.
Felts admitted that on August 16, 2018, he was a passenger in a motor vehicle driving on Route 20 in Summers County, West Virginia. The vehicle was stopped because the registration plates were not visible. The deputy sheriff could smell burnt marijuana emanating from the vehicle. The deputy had each occupant exit the vehicle. In Felts’ backpack, deputies located a Springfield Armory XDS, .40 caliber six round magazine, numerous empty baggies used in the distribution of controlled substances, a blue digital scale, and approximately three grams of a white crystal substance.
Upon further search of the vehicle, deputies located a Glock, model 27, .40 caliber pistol under the passenger seat and a Springfield Armory XDS, .40 caliber pistol stuffed underneath the cushion of the back seat.
The Springfield Armory XDS, .40 caliber six round magazine that was located in a lock box contained in Felts’ red back pack fit the Springfield Armory XDS, .40 caliber pistol.
Felts was convicted on September 4, 2014, in the Circuit Court of Greenbrier County of Delivery of a Controlled Substance - Oxymorphone. He was convicted on December 22, 2015, in the Circuit Court of Greenbrier County of Burglary.
Felts faces up to ten years in prison when sentenced on April 20, 2020.
The Summers County Sheriff’s Department, the Summers County Prosecutor’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Georgia man and five Mexican nationals plead guilty to methamphetamine trafficking conspiracyRead the Press Release
ATLANTA – The last of six defendants who operated a clandestine methamphetamine laboratory in north Fulton County has pleaded guilty to conspiracy to possess methamphetamine with intent to distribute, concluding a months-long investigation that led to the seizure of more than a quarter-ton of methamphetamine from several residences in the Atlanta suburbs.
“Mexican cartels push methamphetamine and other drugs in our district without any regard for the lives that they ruin along the way,” said U.S. Attorney Byung J. “BJay” Pak. “In close coordination with our federal, state, and local partners, we are committed to stopping the flow of drugs across the border, and their distribution in our community. The discovery and dismantling of a methamphetamine lab of this magnitude is a great win in that battle.”
Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division stated, “Drug Trafficking knows no boundaries and is driven by greed and power. These guilty pleas should serve as a reminder to drug traffickers that DEA and its law enforcement partners will expend the necessary resources to dismantle, disrupt and destroy those who distribute poison throughout our communities. Many thanks to the collaboration of law enforcement agencies and the U.S. Attorney’s Office who made this investigation a success.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: a Mexico-based drug-trafficking and money-laundering organization led locally by Fredrico Pacheco-Romero and Carlos Martinez utilized homes in Milton and Ellenwood, Georgia to convert large quantities of liquid methamphetamine into crystal methamphetamine. Agents learned in early February 2019 that a shipment of liquid methamphetamine was destined for the Atlanta area.
On February 9, 2019, DEA agents obtained warrants to search a half-dozen properties utilized by the organization and the defendants. Those searches revealed an active methamphetamine conversion laboratory, approximately 400 pounds of liquid methamphetamine, approximately 125 pounds of crystalized or partially crystalized methamphetamine, hundreds of thousands of dollars in cash, and multiple cell phones, drug ledgers, and firearms.
Each of the six defendants pleaded guilty to participating in a drug-trafficking conspiracy. The defendants will appear before U.S. District Judge Leigh Martin May for sentencing as follows:
- Sentencing for Victor Manuel Sanchez, 21, of Mexico is scheduled for January 27, 2020, at 2:00 p.m.
- Sentencing for Jorge Mendoza-Perez, 50, of Mexico is scheduled for February 3, 2020, at 2:00 p.m.
- Sentencing for Fredrico Pacheco-Romero, 27, of Mexico is scheduled for February 24, 2020, at 10:00 a.m.
- Sentencing for Carlos Martinez, 24, of Morrow, Georgia is scheduled for February 25, 2020, at 10:00 a.m.
- Sentencing for Eduardo Lopez, 26, of Mexico is scheduled for March 2, 2020, at 10:00 a.m.
- Sentencing for Santana Cardenas, 41, of Mexico is scheduled for March 25, 2020, at 9:30 a.m.
This case is being investigated by the Drug Enforcement Administration, with assistance from the Gwinnett County District Attorney’s Office, the Cartersville Police Department, the Forsyth County Sheriff’s Office, and SWAT teams from the Clayton County Sheriff’s Office, the Henry County Police Department, and the DeKalb County Police Department.
Assistant U.S. Attorneys Theodore S. Hertzberg and Tyler A. Mann are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.- Sentencing for Victor Manuel Sanchez, 21, of Mexico is scheduled for January 27, 2020, at 2:00 p.m.
Georgia Woman Sentenced to almost 20 Years in Prison for Aiding Armed Robberies during Violent RampageRead the Press Release
Jackson, Miss.– Sharae Threadgill, 21, of Georgia, was sentenced today by U.S. District Judge Daniel P. Jordan III to 238 months in federal prison, followed by five years of supervised release, for aiding and abetting two business robberies and the use of firearms to facilitate the robberies, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michele Sutphin with the Federal Bureau of Investigation. Threadgill was also ordered to pay a $1500 fine.
On March 25, 2019, Threadgill aided another person in robberies of a Jimmy John’s restaurant in Meridian and of a McDonald’s in Brandon. Threadgill drove the vehicle used during both robberies and provided a firearm used in both robberies. She was subsequently arrested by Warren County Sheriff deputies in Vicksburg.
On April 16, 2019, Threadgill was charged federally with aiding and abetting two business robberies and the use of firearms to facilitate the robberies. She pleaded guilty before Judge Jordan on October 4, 2019.
The Federal Bureau of Investigation and the Warren County Sheriff’s Office investigated the case. It was prosecuted by Assistant United States Attorney Lynn Murray.
Former RI Attorney Pleads Guilty to Fraud, Pension Theft ChargesRead the Press Release
PROVIDENCE, RI – A former Providence attorney pleaded guilty in federal court to charges that he fraudulently collected more than a quarter of a million dollars in pension funds in the name of a former client for nearly twelve years after the man’s death.
Oleg Nikolyszyn, 65, admitted that from December 2003 through September 2015, he collected monthly pension payments totaling $234,586 in the name of a former City of Providence employee and a member of the Laborers’ International Union of North America (LIUNA).
According to information presented to the Court, in May 2000, the former City of Providence employee hired Nikolyszyn as his attorney and executed a power of attorney that authorized Nikolyszyn to take certain acts on his behalf. Those actions included receiving pension benefits owed him and signing and depositing checks payable to him.
Appearing on Friday before U.S. District Court Judge William E. Smith, Nikolyszyn admitted that he continued to receive monthly pension payments in his client’s name for nearly twelve years following the client’s death on November 12, 2003. Nikolyszyn admitted to depositing the funds into a bank account in the name of both himself and his former client, and then converting the funds to his and his family’s personal use by transferring them into bank accounts he shared with his family.
Nikolyszyn admitting to collecting $173,597 in payments from the City of Providence Employee’s Retirement System and $60,989 from the LIUNA Pension Fund in the name of his former client.
Nikolyszyn’s guilty plea to two counts of mail fraud and one count of theft from an employee benefit pension fund is announced by United States Attorney Aaron L. Weisman; Michael C. Mikulka, Special Agent in Charge of the New York Region for the U.S. Department of Labor, Office of Investigations - Labor Racketeering and Fraud; Carol S. Hamilton, Acting Regional Director for the U.S. Department of Labor, Employee Benefits Security Administration; Superintendent of the Rhode Island State Police Colonel James M. Manni; and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
Nikolyszyn is scheduled to be sentenced on April 24, 2020.
Mail fraud is punishable by statutory penalties of up to twenty years imprisonment; a fine of $250,000 or not more than twice the gross gain or twice the gross loss resulting from the offense; and a term of supervised release of three years. Theft from an employee benefit pension fund is punishable by up to five years imprisonment; a fine of $250,000 or not more than twice the gross gain or twice the gross loss resulting from the offense; and a term of supervised release of three years.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
United States Attorney Aaron L. Weisman acknowledges and thanks the Rhode Island Supreme Court Office of Disciplinary Counsel and the Rhode Island Department of the Attorney General for their assistance in the investigation of this matter.
Oleg Nikolyszyn was suspended from the practice of law in Rhode Island by the Rhode Island Supreme Court on December 1, 2016, following an investigation by the Office of Disciplinary Counsel.
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Former Palmdale Physician Sentenced to 2 Years in Federal Prison for Defrauding Medicare and Illegally Prescribing Opioid DrugsRead the Press Release
LOS ANGELES – A former doctor was sentenced today to 24 months in federal prison for engaging in a multi-faceted Medicare fraud scheme, and also for illegal prescribing thousands of opioid painkillers and muscle relaxants.
Kain Kumar, 56, of Encino, was sentenced by United States District Judge Philip S. Gutierrez. Kumar was also ordered to pay financial penalties totaling more than $1 million, consisting of $509,365 in restitution, $494,900 in asset forfeiture, and a $72,000 fine.
Kumar pleaded guilty in April 2019 to one count of health care fraud and one count of distribution of hydrocodone. He practiced internal medicine, maintained medical offices in Palmdale, Rosamond, and Ridgecrest and surrendered his medical license last year.
From February 2011 until May 2016, Kumar defrauded the Medicare health care benefit program by prescribing unnecessary home health services in exchange for the payment of illegal kickbacks to him from a La Verne-based home health agency called Star Home Health Resources, Inc. According to the indictment in this case, Medicare paid $4,398,599 to Star based on the illegal kickback-tainted referrals from Kumar.
In furtherance of this scheme, Kumar caused false and fraudulent claims for reimbursement to be submitted to Medicare for Medicare beneficiaries that he did not personally examine or for patients he only briefly examined. Kumar also prescribed drugs that were not medically necessary and which were paid for by the Medicare Part D program.
Additionally, Kumar admitted in his plea agreement that between February 2013 and January 2016, Kumar – without a legitimate medical purpose – prescribed 23,826 pills of the opioid drug hydrocodone (commonly sold under the brand name Vicodin or Norco) and 38,459 pills of the muscle-relaxer carisoprodol (sold under the brand name Soma). Kumar directed his office staff – who were not medical professionals – to issue prescriptions for these drugs to patients even though Kumar had not examined the patients. Kumar directed his office staff to sign his name on prescriptions for opioid drugs and also provided his staff with pre-signed prescriptions. In one instance, although Kumar examined a patient only once on the patient’s very first visit, and thereafter he caused prescriptions to be issued to the patient for hydrocodone and carisoprodol on a monthly basis for approximately a year and a half even though Kumar did not actually see the patient for any subsequent physician examination.
Kumar is the fifth and final defendant sentenced in this case. Elaine C. Lat, 50, of Fontana, was Star’s chief operating officer and the case’s lead defendant. She is serving a 30-month prison sentence in this matter after pleading guilty in May 2017 to one count of conspiracy and four counts of paying illegal kickbacks. Three other defendants, including Lat’s parents, each pleaded guilty to criminal charges and were sentenced in this matter.
This case was investigated by the FBI, the U.S. Department of Health and Human Services, Office of Inspector General, and the Drug Enforcement Administration.
This matter was prosecuted by Assistant United States Attorneys Alexander F. Porter of the Major Frauds Section, Jonathan S. Galatzan of the Asset Forfeiture Section, and Trial Attorney Claire Yan of the Fraud Section in the Criminal Division of the U.S. Department of Justice.
Former Member of U.S. Navy Sentenced to 18 Months in Prison for Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A former member of the U.S. Navy was sentenced today to 18 months in prison for her role in an interstate gun trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Tesora Amanda Cortes Trejorojas, 24, of Norfolk, Virginia, previously pleaded guilty to an indictment charging her with one count of conspiring with others to transport and receive in New Jersey firearms purchased and obtained outside the state. U.S. District Judge Kevin McNulty imposed the sentence today in Newark federal court
According to documents filed in this case and statements made in court:
In November 2017, Trejorojas engaged in text messages with Azia Sinclair in which Trejorojas agreed to purchase firearms for Sinclair and Sinclair’s boyfriend, Shyheim Tyson, a/k/a “Shy,” who were both residents of New Jersey.
On Nov. 11, 2017, Sinclair and Tyson drove from New Jersey to Trejorojas’ residence in Norfolk. All three went to a gun store in Norfolk, where Trejorojas purchased five semiautomatic handguns, as well as 200 rounds of ammunition, with cash provided by Sinclair and Tyson. The next day, Sinclair and Tyson drove back to New Jersey with the five handguns and ammunition.
Approximately five hours after Sinclair and Tyson arrived back in New Jersey, an individual was arrested in Orange, New Jersey, after police officers responded to the sound of gunshots. During the arrest, police officers recovered one of the five handguns that Sinclair and Tyson had transported from Virginia to New Jersey.
In March 2018, law enforcement executed a search warrant on Sinclair’s residence in Newark, and found another of the guns that Sinclair and Tyson had transported from Virginia to New Jersey in November 2017.
Tyson and Sinclair both pleaded guilty to conspiracy to transport and receive in New Jersey firearms purchased and obtained outside the State of New Jersey. Tyson was sentenced on Jan. 7, 2019, to 37 months in prison. Sinclair was sentenced on Dec. 11, 2019, to 19 months in prison.
Judge McNulty also sentenced Trejorojas to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, and Special Agent in Charge Thomas L. Chittum III, Washington Field Division, with the investigation leading to today’s sentencing. He also thanked the N.J. State Police; the Newark Department of Public Safety; and Naval Criminal Investigative Service (NCIS) in Norfolk for their assistance.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.
Defense counsel:
Trejorojas: Jonathan F. Marshall Esq., Red Bank, New Jersey
Sinclair: Linda Foster Esq., Assistant Federal Public Defender, Newark
Tyson: Vincent J. LaPaglia Esq., Hoboken, New JerseyFormer Los Angeles-Area Physician Sentenced to Two Years in Federal Prison for Defrauding Medicare and Illegally Prescribing Opioid DrugsRead the Press Release
A former Los Angeles-area physician was sentenced today to 24 months in prison and three years of supervised release for engaging in a multi-faceted Medicare fraud scheme and for illegally prescribing thousands of opioid painkillers and muscle relaxers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office and Special Agent in Charge William D. Bodner of DEA’s Los Angeles Field Division made the announcement.
Kain Kumar, 56, of Palmdale, California, was sentenced by U.S. District Judge Philip Gutierrez of the Central District of California, who also ordered Kumar to pay $509,365 in restitution, $494,900 in asset forfeiture, and a $72,000 fine. Kumar pleaded guilty on April 4, 2019, to one count of health care fraud and one count of distribution of hydrocodone.
As part of his guilty plea, Kumar admitted that from February 2011 until May 2016, he defrauded the Medicare health care benefit program by prescribing unnecessary home health services in exchange for the payment of illegal kickbacks to him from a La Verne, California-based home health agency called Star Home Health Resources Inc. Kumar further admitted that in furtherance of this scheme, he submitted false and fraudulent claims for reimbursement to Medicare for Medicare beneficiaries that he did not personally examine or for patients he only briefly examined. Kumar also admittedly prescribed drugs that were not medically necessary and which were paid for by the Medicare Part D program.
Kumar admitted that between February 2013 and January 2016, he prescribed 23,826 pills of the opioid drug hydrocodone (commonly sold under the brand names Vicodin or Norco) and 38,459 pills of the muscle-relaxer carisoprodol (sold under the brand name Soma) without a legitimate medical purpose. Kumar directed his office staff – who were not medical professionals – to issue prescriptions for these drugs to patients even though Kumar had not examined the patients, he admitted. Kumar instructed his office staff to issue prescriptions for opioid drugs by instructing his staff to sign Kumar’s name on prescriptions and by providing his staff with pre-signed prescriptions. In one instance, Kumar examined a patient only on the very first visit and thereafter on a monthly basis, for approximately a year-and-a-half, he caused prescriptions to be issued to the patient for hydrocodone and carisoprodol, even though Kumar did not actually see the patient for a subsequent physician examination.
Kumar was charged along with Errol Lat, 75, Thelma Lat, 74, Elaine Lat, 49, all of Rancho Cucamonga, California, and Corinne Chavez, 36, of Rosamond, California, in a second superseding indictment returned on July 2017. All co-defendants have pleaded guilty and have been sentenced.
This case was investigated by the FBI, HHS-OIG and the DEA. Trial Attorney Claire Yan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alexander F. Porter of the Central District of California prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former HUD employee sentenced to 66 months in prison for fraud and identity theftRead the Press Release
HONOLULU, Hawaii –Chun Mei Tong, 43, of Honolulu, was sentenced today in federal court by Chief United States District Judge J. Michael Seabright to 66 months of imprisonment, approximately $207,000 in a forfeiture money judgment, $207,000 in restitution, and 3 years of supervised release for wire fraud and aggravated identity theft. She was convicted of five counts of wire fraud and three counts of aggravated identity theft after a jury trial on August 26 - September 5, 2019.
As a former employee of the U.S. Department of Housing and Urban Development (“HUD”), Tong was prohibited from participating in the Housing Choice Voucher Program (also known as the “Section 8 Program”), and from engaging in the business of real estate. The evidence presented at trial demonstrated that from 2014 to 2019, Tong used an alias to act as property manager and landlord for five properties she rented to Section 8 voucher holders. Tong covered up her ownership of two of the properties and forged the signatures of the owners of three of the properties to ensure that all of the HUD funds paid to the landlord went directly to her company’s bank account. She received more than $207,000 from HUD as part of her scheme.
In sentencing Tong, Judge Seabright stated that he was “troubled” by the “ease with which Ms. Tong lies,” particularly when she took the witness stand at trial and her “brazen conduct and brazen lies” “throughout the entire process.” The court explained that Tong “went to great lengths to hide her involvement” in the HUD scheme by forging documents and using aliases, among other efforts.
Kenji M. Price, United States Attorney, said, “My office will continue to combat fraud in federally funded programs from defendants like Tong, who use their position as government employees to defraud the government and vulnerable victims in our communities, and, in doing so, illicitly line their pockets with taxpayer funds. Tong, and defendants like her, think they will find prosperity by taking advantage of their positions. Tong, and the like, are mistaken. What they will find is our office holding them accountable for their greed.”
“One of the primary goals of the Department of Housing and Urban Development, Office of Inspector General is to reduce fraud and abuse in HUD’s rental assistance programs. This responsibility is magnified when a HUD employee uses her position to perpetrate such fraud. The public should have confidence that its servants oversee federal programs with the utmost integrity; the significance of this sentencing reflects the importance of ensuring that pubic trust,” stated Acting Special Agent in Charge Michael Gibson.
The case was investigated by HUD’s Office of Inspector General. It was prosecuted by Assistant U.S. Attorneys Rebecca A. Perlmutter and Morgan Early.
Former Consultant/Chief Operating Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Wire and Securities Fraud in Relation to $287 Million SchemeRead the Press Release
Former Consultant/Chief Operating Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Wire and Securities Fraud In Relation to $287 Million Scheme
A former consultant who also served as the Chief Operating Officer of 1 Global Capital, LLC has been charged in connection with a $287 million securities fraud scheme that impacted more than 3,400 investors in 42 different states, in relation to a commercial payday loan business that operated from early 2014 through July 2018.
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami Field Office, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office made the announcement.
Steven Allen Schwartz, 76, of Delray Beach, Florida, was charged today by information with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 20-CR-60003. The defendant faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
According to the information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money iMCAs. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises to these advisors of significant commissions. In many cases, according to court documents, the commissions were not fully disclosed to investors.
Schwartz was a director and consultant at 1 Global, and also held out as a Chief Operating Officer in the company’s marketing materials. Schwartz also served as the designated trustee for a purported family trust and an art trust for which Individual #1, the de facto owner of 1 Global, served as the grantor. On or about June 5, 2014, 100% of the issued and outstanding shares of 1 Global were transferred under the umbrella of Individual #1’s purported family trust, and designated as the trust property.
In order to attract investments, Individual #1, Schwartz, Attorney #1, co-conspirator Alan G. Heide, and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. 1 Global promised investors that all or nearly all of that money would be applied to various MCA agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants. In reality, according to allegations the information, the 1 Global business lost money, and ultimately used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme. Furthermore, the conspirators misappropriated large amounts of cash for themselves, including, primarily, to support the lavish lifestyle of Individual #1. 1 Global also paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
According to allegations in the information, co-conspirators at 1 Global made false statements to investors that gave the impression that 1 Global had an independent auditor. These misrepresentations were allegedly made in monthly statements mailed to investors that falsely showed profitable investments. The statements gave the false impression that the finances had been independently verified by an outside audit firm. As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising new investor funds before its eventual collapse in July 2018.
According to allegations in the information, Schwartz was also aware that 1 Global had received written legal advice authored by an outside law firm retained by 1 Global, and that in memoranda received from this outside law firm, the firm opined that 1 Global was improperly offering unregistered securities, in violation of federal law. Despite having received this advice in or around June and July 2016, Schwartz, Individual #1, and their co-conspirators continued to operate the business and hid the advice contained in the legal memoranda from investors, failing to disclose the risks it described. Moreover, instead of following this advice, Individual #1 and co-conspirators not only concealed it from the investors, but also sought false legal cover from co-conspirator Jan Douglas Atlas, who authored opinion letters based on false and fraudulent information, stating that 1 Global’s offerings were not securities.
1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, according to documents from related cases, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
A criminal information is a charging instrument containing allegations. All defendants are presumed innocent unless proven guilty in a court of law.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Schwartz. In related cases, the SEC previously filed civil fraud actions, captioned, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.); SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.); and SEC v. Jan Douglas Atlas, 19-62303-CV-WPD (S.D. Fla.).
Two co-conspirators have pled guilty to charges arising from their roles in the 1 Global fraud, in related criminal cases pending in the Southern District of Florida: United States v. Alan G. Heide, 19-60231-CR-RKA, and United States v. Jan Douglas Atlas, 19-60258-CR-RKA.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office and the IRS-CI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Connecticut Resident Sentenced to Prison for Tax Evasion SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THERESA FOREMAN, 58, of St. Cloud, Florida, formerly of Madison, Connecticut, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for a wide-ranging tax evasion scheme.
According to court documents and statements made in court, Foreman operated Equinox Home Care, LLC, a home healthcare staffing agency based in Stratford, Connecticut. Beginning as early as 2012, Foreman took money out of the company by depositing or cashing, and causing to be deposited or cashed, checks written to individuals who did not actually work for Equinox Home Care. Between May 2012 and December 2013, approximately $413,000 in payroll checks to these “ghost employees” were deposited into accounts controlled by Foreman’s brother. During the same period, approximately $465,000 was withdrawn from the accounts in cash, cash back from deposits, or checks payable to Foreman. Foreman also had employees cash company checks and return the funds to her, and she cashed or caused to be cashed mileage reimbursement checks made out to other individuals and used the funds for her own benefit.
The investigation also revealed that between August 2014 and November 2015, Foreman made or caused to be made 101 cash deposits totaling $580,580 to a bank account in a family member’s name.
Foreman failed to report the amounts that she received through this scheme on her federal tax returns for 2012, 2013, and 2014. Foreman also owed tax for the 2010 and 2011 tax years and, on a statement submitted to the IRS in March 2013, provided false information about her income and assets. On the statement, Foreman falsely indicated that she had no monthly income. She also failed to declare ownership of a property in Saint Cloud, Florida, which she had purchased jointly with her brother in March 2012; failed to declare a bank account held in the name of her adult son, but which she controlled and used; and failed to declare recent purchases of a 2012 Chevrolet Corvette and a 2013 Cadillac Escalade.
Foreman’s conduct for the 2010 through 2014 tax years resulted in a loss of $641,941.46 to the Internal Revenue Service. Judge Bolden ordered Foreman to pay all back taxes, plus penalties and interest.
On March 4, 2019, Foreman pleaded guilty to one count of tax evasion.
Foreman, who is released on a $10,000 bond, is required to report to prison on February 28, 2020.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys Peter S. Jongbloed and Jennifer R. Laraia.
Former Attica High School Assistant Track Coach Sentenced to 24 Years' in Federal PrisonRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Jeremy Kelley, 41, of Attica, Indiana, was sentenced in federal court, by U.S. District Judge Sarah Evans Barker, to 24 years’ in federal prison, after having previously pleaded guilty to charges of production and possession of child pornography.
"Kelley is a child predator who deliberately sought out a high school coaching position intentionally placing himself near children," said Minkler. "The U.S. Attorney’s Office is committed to prosecuting individuals, like Kelley, who choose to sexually exploit children and who knowingly abuse positions of public trust."
The investigation began on January 16, 2018, when the Montgomery Sheriff’s Department opened a National Center for Missing & Exploited Children (NCMEC) CyberTip. Included in the tip were 18 images depicting pre-pubescent females exposing their genitals, engaged in sex acts, and erotic poses. These images were contained in a Dropbox account created by Jeremy Kelley. In compliance with a search warrant executed by law enforcement, Dropbox provided detectives with a mass storage device, which contained over 16,563 image and video files of mostly child pornography.
On June 29, 2018, following the execution of a search warrant at Kelley’s residence, Kelley consented to a search of his iPhone SE. Kelley admitted to receiving and possessing child pornography on his iPhone SE. The iPhone contained 451 videos and 27,000 images of mostly child pornography, including prepubescent minors engaged in sexually explicit conduct. Additionally, agents discovered the e-mail address associated with Kelley’s Dropbox account and his Dropbox application.
Also during the search, law enforcement discovered files depicting a minor victim (Minor Victim 1) engaged in sexually explicit conduct. Kelley surreptitiously produced child pornography of Minor Victim 1 between in or about June 8, 2018, and June 18, 2018. Minor Victim 1 was in Kelley’s care, custody, and control at the time of the recordings. Kelley admitted that he produced child pornography of Minor Victim 1 because he had a sexual interest in Minor Victim 1, and that he collected, and distributed child pornography collection because he had a sexual interest in children.
Kelley was arrested on July 1, 2018 by way of complaint and was indicted by a federal grand jury on August 21, 2018. Jeremy Kelley worked as an Assistant Track Coach at Attica High School at the time of his arrest.
This case was investigated by the Federal Bureau of Investigation and the Montgomery Sheriff’s Department.
"This sentence should send a strong message to those who would perpetrate such heinous crimes against children – the FBI and our law enforcement partners will continue to work diligently to identify, investigate and prosecute those who engage in these illegal activities," said Special Agent in Charge Grant Mendenhall, FBI Indianapolis.
"The Montgomery County Sheriff’s Office appreciates the relationships we have with the FBI, NCMEC, the U.S. Attorney’s Office, and all of our other law enforcement partners," said Sheriff Ryan Needham. "We continually strive to make Montgomery County, and the state of Indiana, a better and safer place for our citizens, and making an arrest like this makes all of us safer."
According to Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case for the government, Kelley will serve 20 years’ supervised release following his prison sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Federal Court in Savannah, Georgia, Enters Permanent Injunction Against Tax Return PreparerRead the Press Release
The U.S. District Court for the Southern District of Georgia has enjoined Andrea Nadel and her business, EZ Accounting & Tax Service LLC (EZ Accounting), along with Estelle Nadel, from preparing federal tax returns for others.
According to the United States’ complaint, Andrea Nadel, EZ Accounting, and Estelle Nadel prepared federal income tax returns that reported false Schedule A and Schedule C deductions in order to manipulate their customers’ claims for the Earned Income Tax Credit and reduce their taxable income. The complaint alleges that the defendants prepared returns that falsely claimed deductions for gifts to charity, unreimbursed employee expenses, tax preparation fees, and taxes paid, and that their practice of claiming these false deductions has resulted in significant lost tax revenues. As set out in the complaint, earlier this year, Andrea Nadel was indicted and pleaded guilty to aiding and assisting the preparation of a false tax return in violation of 26 U.S.C. § 7206(2).
Andrea Nadel, EZ Accounting, and Estelle Nadel agreed to entry of the permanent injunctions without admitting any factual allegations in the complaint.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
FBI solves string of bank robberies from 2016Read the Press Release
ROME, Ga. - Garrett Storm Hickey has been sentenced for a string of unarmed bank robberies in north Georgia and Alabama, which had gone unsolved for three years.
“Diligence by the FBI and our law enforcement partners helped solve these cold case bank robberies,” said U.S. Attorney Byung J. “BJay” Pak. “This is also an example of the exemplary cooperation by law enforcement across multiple districts to give closure to the victims and employees of the banks involved while bringing this robber to justice.”
“If not for the determination of the FBI and our state and local partners, Hickey would be close to being released from federal prison on a single bank robbery conviction,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But because of that collaborative effort, three bank robbery cases in Georgia and Alabama that were virtually closed, were re-opened and connected to Hickey. Our partnerships are integral to our mission of protecting the citizens of this country.”
According to U.S. Attorney Pak, the charges and other information presented in court: On July 6, 2015, Garrett Storm Hickey robbed a bank in Murfreesboro, Tennessee, using a threatening note that demanded money. Using a very similar note and always asking for $1,400, he then robbed three more banks.
On April 19, 2016, he robbed a bank in Ringgold, Georgia, and shortly after, on May 4, 2016, he robbed a bank in Priceville, Alabama. Hickey’s last known robbery was on July 20, 2016, at a bank in Athens, Alabama.
In 2017, Hickey was sentenced to just over three years in federal prison after a fingerprint linked him to the Murfreesboro robbery. Later, while still serving his initial sentence, a fingerprint identification by the Georgia Bureau of Investigation lab connected him with the Ringgold robbery. In addition, other evidence, including photos from the bank cameras, linked him to the two Alabama robberies.
In 2019, Hickey was indicted in the Northern District of Georgia, and with the cooperation of the U.S. Attorney’s Office for the Northern District of Alabama, and local district attorneys in the three local venues, he was prosecuted for the one Georgia robbery and two Alabama robberies here and pleaded guilty October 2019.
Garrett Storm Hickey, 29, of Centre, Alabama, was sentenced by U.S. District Judge Mark H. Cohen to five years, four months in prison, with credit for time served, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $4,200. Hickey was convicted on these charges on October 15, 2019, after he pleaded guilty.
This case was investigated by the FBI’s Atlanta-Dalton office, Birmingham-Huntsville office, and Memphis-Murfreesboro office, the Georgia Bureau of Investigation - Region 1, the Catoosa County Sheriff’s Office and the Ringgold Police Department, both in Georgia, as well as the Limestone County Sheriff’s Office, the Athens Police Department, and the Priceville Police Department, all in Alabama.
Assistant U.S. Attorney Katherine M. Hoffer prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Deli Operators Plead Guilty to Food Stamp FraudRead 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 Hicham Khallad, and Karim Euchi, both 47 and of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to food stamp fraud. The charge carries a maximum penalty of five years in prison, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that the Supplemental Nutrition Assistance Program (SNAP) uses federal tax dollars to help low-income individuals purchase food. Eligible individuals are provided with a debit card containing their SNAP benefits, from which they can make food purchases at authorized food stores. A business that accepts SNAP benefits must be authorized to do so and can only accept SNAP benefits in connection with the sale of eligible food products. It is unlawful for any store to accept SNAP benefits for non-food items, such as cigarettes, beer, or for cash.
Between May 2018 and February 2019, Khallad and Euchi operated the Joseph Market at 900 Joseph Avenue in Rochester, which was owned by Khallad’s wife. During that time, the defendants knowingly and unlawfully accepted SNAP benefits from customers in exchange for non-food items, such as cigarettes. Khallad and Euchi also purchased food stamp benefits for less than their full value for cash, resulting in a profit for the defendants.
The actions of the defendants caused the United States Government to deposit approximately $154,000 into the Joseph Market’s bank accounts for food that was never purchased.
The plea is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in Charge Bethanne M. Dinkins; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Monroe County Department of Social Services, under the direction of Commissioner Corinda Crossdale.
Sentencing is scheduled for April 10, 2020, before Judge Geraci.
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Cuban Man Sentenced to Four Years in Federal Prison for Possession of Counterfeit Access DevicesRead the Press Release
Gulfport, Miss. – Duniesky Vizcay De La Cruz a/k/a Vizcay Delacruz Duniesky, 35, a citizen of Cuba, was sentenced Friday by U.S. District Judge Sul Ozerden to serve 48 months in federal prison, followed by three years of supervised release, for knowingly possessing 15 or more counterfeit or unauthorized access devices, announced U.S. Attorney Mike Hurst and Shawn Wolfe, Resident Agent in Charge of the United States Secret Service in Mississippi. The Court also ordered De La Cruz to pay $97,174.49 in restitution to a victim.
On December 6, 2017, the South Mississippi Metro Enforcement Task Force conducted a traffic stop on Interstate I-10 in Jackson County. De La Cruz, a passenger in the car, was found to be in possession of approximately 528 “Vanilla MasterCard” pre-paid gift cards in his luggage. The investigation revealed that the 528 gift cards had been purchased with victims’ money at wholesale club stores in Georgia and Florida a few days prior to this traffic stop in Mississippi.
De La Cruz was charged on March 5, 2019 in a federal criminal indictment. He pled guilty before Judge Ozerden on August 21, 2019.
The case was investigated by the United States Secret Service with assistance from the South Mississippi Metro Enforcement Task Force. The case was prosecuted by Assistant U.S. Attorney Andrea Jones.
Criminal Chief Assistant U.S. Attorney Beth C. Boswell Receives 2019 DOJ Criminal Division Assistant Attorney General’s Award for Distinguished ServiceRead the Press Release
Memphis, TN – On December 9, 2019, Criminal Chief Assistant U.S. Attorney Beth C. Boswell was selected as a recipient of a 2019 Criminal Division Assistant Attorney General’s Award for Distinguished Service, and received the award at the Criminal Division’s Annual Awards Ceremony in the Great Hall of the Robert F. Kennedy Main Justice Building in Washington, D.C. Ms. Boswell was selected for the AAG Award for Distinguished Service to recognize her superior performance in the case of United States v. Byron Montrail Purdy, et al. (Gangster Disciples Prosecution), a large RICO conspiracy case known as "Operation .38 Special", which was originally indicted in May, 2016, charging a total of 16 members of the Gangster Disciples criminal enterprise with racketeering and other crimes. Ms. Boswell was the lead AUSA in this significant gang prosecution, and led a team of trial attorneys who were also recognized with an AAG Award, including Sam Stringfellow, Assistant U.S. Attorney in the Northern District of Mississippi, and Trial Attorneys Francesca Liquori and Shauna Hale of the Criminal Division’s Organized Crime and Gang Section.
The prosecution team was recognized for their outstanding work in the investigation and prosecution of members and associates of the Chicago-based violent street gang, the Gangster Disciples. The Gangster Disciples is a criminal organization with a national presence. Since its inception in the 1980s, the organization has expanded its reach into at least 35 states. In the last several decades, it has made a name for itself as being one of the four most violent gangs in Chicago. Similarly, the Gangster Disciples are active in Tennessee, where it is considered one of the state’s most prominent and violent gangs. The gang is well known for the distribution of narcotics, trafficking in firearms, and violent crimes including murder, attempted murder, assault, and witness intimidation.
The prosecution team in this case, working with an FBI-led multi-agency gang unit that included agents and officers from the ATF, the Memphis Police Department, the Shelby County Sheriff’s Office, and the Tennessee Bureau of Investigation, investigated a plethora of violent crimes committed by leaders and members of the Gangster Disciples. In doing so, they were able to bring together a comprehensive racketeering indictment that documented over 20 years of criminal conduct in Memphis, Jackson, and multiple smaller communities throughout Tennessee, Arkansas, and Georgia that was committed to further the unlawful ends of this enterprise, including shootings, robberies, and the widespread trafficking of cocaine and marijuana. In all, the prosecution team secured the indictment of 16 of the most violent leaders and members of the Gangster Disciples operating in West Tennessee. Through long hours of hard work in trial preparation, multiple evidentiary hearings, and continued investigation, the trial team ultimately secured the conviction by plea to racketeering charges for all 16 defendants, which resulted in sentences as high as 30 and 35 years for the most serious offenders. This prosecution significantly damaged the national Gangster Disciples organization, eliminating some of its most powerful leaders, removing the gang from its key territory, and dismantling an important part of its organization. The prosecution team’s success in dismantling this important network of the gang in West Tennessee was exemplary.
Assistant U.S. Attorneys Jerry Kitchen and Annie Christoff, as well as Legal Assistants Laura Miller and LaTonya Weeks also assisted Ms. Boswell and contributed to the overall success of this case in a significant way.
U.S. Attorney D. Michael Dunavant said, "The importance of this RICO case cannot be overstated, and Ms. Boswell’s leadership in this massive disruption and dismantlement of the Gangster Disciples organization, including several governors, enforcers, and ranking members of the gang, was outstanding and deserves recognition at the highest levels of the Department of Justice. I am proud of the work and dedication of all of our employees in the Western District of Tennessee, and this award is further evidence of our collective commitment to the important mission and priorities of DOJ."
Pictured from left to right are: Deputy Assistant Attorney General David Rybicki; Shauna S. Hale, Trial Attorney, Organized Crime and Gang Section; Francesca Liquori, Assistant U.S. Attorney, District of New Jersey; Beth C. Boswell, Criminal Chief Assistant U.S. Attorney, Western District of Tennessee; Sam Stringfellow, Assistant U.S. Attorney, Northern District of Mississippi; and Brian Benczkowski, Assistant Attorney General for the Criminal Division.
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Computer Programmer Sentenced in Cyberattack Threat CaseRead the Press Release
WICHITA, KAN. – A Wichita computer programmer was sentenced today to three years federal probation and a $2,000 fine for threatening cyberattacks against two web sites that posted criticism of Wichita lawyer Brad Pistotnik, U.S. Attorney Stephen McAllister said.
David Dorsett, 37, Wichita, Kan., pleaded guilty to two counts of making extortionate threats via the internet. In his plea, Dorsett admitted he contacted Pistotnik in September 2014 offering reputation management services. Pistotnik met with Dorsett and showed him postings on the internet that Pistotnik wanted removed, including a Kansas Supreme Court disciplinary opinion for Pistotnik and a negative consumer review. Email communications between Dorsett and Pistotnik showed Postnik saying, “Any luck removing that bad website I showed you?” and “tell me how we get rid of it.”
Dorsett sent a barrage of emails to two web sites, leagle.com and RipoffReport.com demanding they remove information critical of Pistotnik. The emails read in part, “If you don’t remove it we will begin targeting your advertisers and explain that this will stop happening to them once they pull their ads…” Dorsett billed Pistotnik for sending the threats and Pistotnik paid him by check the same day.
Co-defendant Pistotnik was sentenced in October 2019 to pay a $375,000 fine and $55,200 in restitution.
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.