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11 February 2020
Two Pittsburgh Felons Charged with Illegally Possessing FirearmsRead the Press Release
PITTSBURGH - Two residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Tyrone Terry, age 28, and Terrelle Smith, age 28, both residents of Pittsburgh, Pennsylvania, as defendants.
According to the Indictment, on October 8, 2019, Terry and Smith each knowingly possessed a firearm, knowing they had been previously convicted of crimes with terms exceeding one year punishment. Federal law prohibits anyone from owning a firearm who has been convicted of a crime for a term of one year or longer. Terry was in possession of a FN Herstal Five-Seven 5.7x28 semiautomatic pistol, knowing he had been previously convicted of carrying a firearm without a license. Smith was in possession of a Glock 19 9mm semiautomatic pistol, knowing he had been previously convicted of flight to avoid apprehension, trial or punishment, possession of a firearm with an altered manufacturer’s name, and carrying a firearm without a license.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Charged with Bronx MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging RALPH BERRY and FRANK LOPEZ with the murder of Caprice Jones in the vicinity of 751 East 161 Street, Bronx, New York. BERRY was arrested on Friday in Bethlehem, Pennsylvania, and was presented before U.S. Magistrate Judge Henry S. Perkin. LOPEZ was arrested on Friday in Plano, Texas, and was taken into federal custody on Monday. He will be presented tomorrow before U.S. Magistrate Judge Christine A. Nowak. The case is assigned to U.S. District Judge Alison J. Nathan.
U.S. Attorney Geoffrey S. Berman said: “Many years have passed since Caprice Jones was murdered, but the detectives of the NYPD continued investigating, working to see that justice would be done. Now, thanks to their extraordinary efforts, in partnership with the Special Agents of our Office, Ralph Berry and Frank Lopez face federal murder charges.”
As alleged in the Indictment[[1]] unsealed today in Manhattan federal court:
On June 21, 2000, BERRY handed LOPEZ a gun and LOPEZ fired shots in the vicinity of 751 East 161st Street in the Bronx, New York. The shooting was in furtherance of a conspiracy to distribute crack cocaine. Jones was hit during the shooting, and ultimately died from his wounds in 2010 at the age of 42.
* * *
BERRY, 52, and LOPEZ, 43, are each charged with murder through use of a firearm, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of five years in prison, and murder in connection with a drug trafficking crime, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD and the Special Agents of the United States Attorney’s Office for the Southern District of New York. He also thanked the United States Marshals Service and the Plano Police Department for their assistance with the arrests.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Dominic A. Gentile and Maurene Comey are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Two Former Owners of South Florida Tech Support Scam Sentenced to Lengthy Prison TermsRead the Press Release
EAST ST. LOUIS, ILL. – Two former owners of a fraudulent tech support business known as Client Care Experts, LLC (“Client Care”) are going to prison for a long time. Yesterday, in federal district court in East St. Louis, Illinois, Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James McCormick, 47, of Hollywood, Florida, were sentenced to prison terms of 113 months and 132 months respectively. Both men previously pleaded guilty to a charge of conspiracy to commit wire fraud.
Seward was the founder and chief executive officer of Client Care, while McCormick served as another high-level executive for the Boynton Beach, Florida company, which was formerly known as First Choice Tech Support. For about 15 months, Seward and McCormick also operated a similar tech support business called ABC Repair Tech (ABC), located in Costa Rica.
According to court documents, the defendants purchased pop-up advertisements that appeared suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and falsely informed the victims that serious problems, such as viruses or malware, had been detected on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop responding. The pop-ups also typically warned the victims not to shut down their computers or else they would lose all their data. Instead, the ads directed them to call a toll-free number, where they were connected to sales representatives who continued the fraud.
The sales representatives convinced the victims to grant them remote access to their computers, where normal computer functions and routine processes were highlighted as evidence of serious computer problems. Victims were never told that the pop-ups that had hijacked their computers were just advertisements purchased by the tech support company, or that in most instances they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked at the steep prices, the sales representatives would offer them discounts, such as senior citizen and veterans discounts.
From 2013 to 2016, the two companies – Client Care and ABC – combined to defraud more than 40,000 people. Victims were located in all 50 States, the District of Columbia, Puerto Rico, several U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois, representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two companies took in over $25 million.
As part of their sentence, the court ordered both Seward and McCormick to pay over $11.5 million in restitution to the victims of their fraud scheme.
“As the court observed, there is a growing gap between our ever-increasing reliance on technology and the average person’s understanding of how that technology works,” said U.S. Attorney Weinhoeft. “These men took advantage of that gap to line their own pockets. What’s even more disturbing is that many of the victims were senior citizens. Following Attorney General Barr’s Elder Justice Initiative, we want would-be scammers to know that if they reach out and defraud people in southern Illinois, we’re going to haul them into federal court in this district and hold them accountable for their crimes.”
Over the past three years, 17 other employees of Client Care and ABC have also pleaded guilty to federal fraud violations in the Southern District of Illinois:
Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at Client Care
Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at Client Care
Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at Client Care
Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at Client Care
Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at Client Care
Erica Marie Crowell, 30, of Maple Shade, NJ – Salesperson at Client Care
Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at Client Care
Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at Client Care
Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at Client Care
Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at Client Care
Michael Cary Lawing, 34, of Lincolnton, NC – CEO of ABC
Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at Client Care
Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at Client Care
Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at Client Care
Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at Client Care
Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/Client Care
Grant Clark Wasik, 36, of Oakland Park, FL – Vice President and Sales Manager of Client Care
All 17 of those defendants have already been sentenced, as follows:
Date
Defendant
Prison Sentence
Restitution
Mar. 8, 2018
Ryan Carr
12 months + 1 day
$20,384.36
May 7, 2018
Joshua Cortez
18 months
$3,034.00
June 8, 2018
Patrick Dougherty
12 months + 1 day
$240,966.94
June 14, 2018
Anthony Ludena
12 months + 1 day
$176,692.26
June 29, 2018
Nicholas Davidson
5 years probation
$181,808.40
July 26, 2018
Timothy Miller
5 years probation
200 hours community service
$127,042.06
Aug. 3, 2018
Tatum Espenshade
1 day + 18 months home detention
$132,683.68
Sept. 11, 2018
Andrew Broad
12 months + 1 day
$55,238.28
Sept. 20, 2018
Jonathan Richardson
12 months + 1 day
$78,638.99
Oct. 4, 2018
Corey Bachman
1 day + 400 hours community service
$156,806.25
Oct. 8, 2019
Grant Wasik
125 months
$10,619,430.95
Oct. 10, 2019
Joseph Aievoli
1 day + 200 hours community service
$106,355.82
Oct. 15, 2019
Michael Lawing
18 months
$266,501.94
Oct. 23, 2019
Eric Iannaccone
12 months + 1 day
(pending)
Dec. 10, 2019
Robert McCart
Time served
100 hours community service
none
Dec. 10, 2019
Kyle Swinson
1 day + 400 hours community service
$7,589.31
Jan. 8, 2020
Erica Crowell
Time served
12 months home detention
$123,815.60
These cases were part of an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The cases were prosecuted by Assistant United States Attorneys Scott A. Verseman, Ranley R. Killian, and Nathan D. Stump. The Florida Attorney General’s Office raided Client Care in June 2016 and has been cooperating with the federal investigation, in addition to bringing its own civil enforcement action against the fraudulent company under Florida state law.
The Federal Trade Commission has been working for some time to shut down illegal tech support scams. For more information about the FTC’s “2019 Tech Support Takedown,” please visit https://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.
Some consumers who were victimized by ABC or Client Care / First Choice Tech Support have received additional fraudulent calls. These calls typically come from companies claiming either (a) that the technical support the victims purchased has been transferred to them and additional funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be advised that no companies have been authorized to provide them with any tech support services on behalf of ABC or CLIENT CARE / First Choice Tech Support, or to provide them with a refund for any previous purchases.
Three from Erie Charged with Conspiring to Possess MethRead the Press Release
ERIE, Pa. - Three former residents of Erie, Pennsylvania, have been indicted by a federal grand jury in Erie on charges of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named David Anthony Madden, 33, David Lee Cramer, 51, and Jamie Eileen Cramer, 42, as defendants.
According to the Indictment presented to the court, the defendants conspired to possess with intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of life imprisonment, a fine of $20,000,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tennessee Woman Pleads Guilty to Health Care FraudRead the Press Release
Abingdon, VIRGINIA – A Strawberry Plains, Tennessee woman, who billed Virginia Medicaid for services that were not completed, pled guilty yesterday in U.S. District Court in Abingdon to one count of federal health care fraud, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Kathy Marie Patrick, 61, formerly of Richlands, Virginia, pleaded guilty yesterday in federal court to one count of health care fraud. At sentencing, Patrick faces up to 20 years in federal prison and/or a fine of up to $250,000. Patrick also agreed to pay $30,968.40 in restitution. A sentencing hearing has been scheduled for April 30, 2020.
According to court documents, Patrick worked as a services facilitator for Virginia Medicaid from August 2012 through September 2019. Services facilitators are responsible for assisting individuals, who have chosen to receive care at home as an alternative to a nursing facility, by providing home visits, training, assessments, and other services on a regular basis.
Patrick admitted today that on multiple occasions, she billed for training to recipients and/or employers of record that had not actually been completed. Some of these visits were alleged to have occurred while Patrick was working her other jobs at the Cumberland Mountain Community Services Board and, later, Dollywood.
The investigation of the case was conducted by the Office of the Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney and Assistant Attorney General Janine Myatt is prosecuting the case for the United States.
Tenet Healthcare and Affiliated California Hospital to Pay $1.41 Million to Settle False Claims Act Allegations for Implanting Unnecessary Cardiac MonitorsRead the Press Release
Tenet Healthcare Corporation and its affiliated hospital Desert Regional Medical Center (DRMC), a general medical and surgical hospital located in Palm Springs, California, have agreed to pay $1.41 million to resolve allegations that they violated the False Claims Act by knowingly charging Medicare for implanting unnecessary cardiac monitors, the Justice Department announced today.
“Providers that bill for unnecessary services and devices contribute to the soaring cost of health care,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice holds accountable those providers that impose unnecessary treatments upon patients and pass the inflated costs on to federal health care programs.”
Medicare only reimburses services and treatments that are reasonable and medically necessary. This settlement resolves allegations that DRMC knowingly charged Medicare for unnecessary cardiac monitors (often called loop recorders) that DRMC cardiologists implanted in beneficiaries from 2014 to 2017.
“Invasive medical procedures, such as implanting heart monitors, are not without risk,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Therefore, when these procedures are medically unnecessary, as contended in this case, people in government health programs are put at needless peril, and taxpayers end up with the bill.”
The settlement resolves allegations filed in a lawsuit by Michael Grace, a former DRMC employee, under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The civil lawsuit is docketed in the Central District of California and is captioned United States ex rel. Grace v. Tenet HealthCare Corp.; St. Francis Hospital-Memphis; Desert Regional Medical Center; and Apollo MD, Case No. 17-CV-1481. As part of this settlement, Grace will receive $240,789 as his share of the government’s recovery.
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the Office of Inspector General for the U.S. Department of Health and Human Services.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Tax Return Preparer Sentenced to PrisonRead the Press Release
St. Louis - Aaron Mitchell, 31, of the 8700 block of Oriole in St. Louis, was sentenced today to 34 months in federal prison after pleading guilty to charges involving a federal income tax refund scheme. Mitchell appeared before United States District Judge Audrey G. Fleissig who also ordered him to pay $99,576.00 in restitution to the Internal Revenue Service.
At the time of his guilty plea, Mitchell admitted to preparing over 160 tax returns for the years 2013 through 2015. He filed those returns electronically from his residence on the 8700 block of Oriole in the City of St. Louis. The returns contained false W-2 wage and withholding information as well as false claims of tax credits for education expenses including the American Opportunity Credit. According to court papers, the IRS lost $99,576.00 in tax refunds paid as a result of Mitchell’s actions.
In sentencing Mitchell, the judge noted his many fraud convictions and his pending fraud charges in St. Louis County, St. Charles County, Franklin County and Madison County, Illinois. The court also noted that Mitchell had been taken off bond in the tax case after being arrested for shoplifting at a Walmart store in Granite City on New Year’s Eve. The judge told Mitchell that he was a “one man financial wrecking crew.”
The case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation office in St. Louis as assisted by the United States Postal Inspection Service. This case was prosecuted by the United States Attorney’s Office in St. Louis.
Talihina Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bobby Garman, age 38, of Talihina, Oklahoma, entered a guilty plea to Distribution Of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both; and to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 20 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that on or about February 8, 2019, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about August 26, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol, the District 16 Drug Task Force, and the Oklahoma Bureau of Narcotics and Dangerous Drugs Control.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Springfield Business Owner Pleads Guilty to Evading $300,000 in Employment TaxesRead the Press Release
SPRINGFIELD, Mo. – An Ozark, Missouri, man pleaded guilty in federal court today to failing to pay more than $300,000 in employment taxes for his businesses in Springfield.
John P. Hardwick, 51, waived his right to an indictment and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with attempting to evade taxation.
Hardwick owned and operated JTBT Investments, LLC, and Hardwick Quartz & Granite, LLC, both located in Springfield. Hardwick accumulated $306,298 in employment tax liabilities as an employer from 1994 through 2016, and failed to pay the money to the IRS.
In 2016, the IRS issued a Notice of Intent to Levy, which notified Hardwick that the IRS would contact individuals and entities that conducted business with him and notify those customers of the fact that he owed the IRS money. This notice would also direct customers to pay any monies due to Hardwick to the IRS instead, as a means of collecting on the amount due.
Hardwick then directed at least two of his customers to disregard the IRS levies; he also told them he would not complete their ongoing projects if they paid the IRS instead of him.
Under federal statutes, Hardwick is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation.
Sanctuary Cities Impede the Administration of JusticeRead the Press Release
Baltimore, Maryland – The Justice Department yesterday announced that it has filed suit against local jurisdictions in the states of California and New Jersey, and King County, Washington, for implementing policies that it alleges violates the “Supremacy Clause” of the Constitution, which provides that the laws of the United States shall be the supreme law of the land. The Constitution vests the federal government with the sole authority to make and enforce immigration law. The jurisdictions sued by the Justice Department have passed laws or implemented policies that impede the Department of Homeland Security from deporting or detaining aliens, or from accessing information in state databases. The U.S. Attorney’s Office for the District of Maryland supports efforts to prosecute those who commit federal crimes, regardless of their immigration status.
Maryland U.S. Attorney Robert K. Hur stated, “Detainers—official requests to hold an inmate pending federal action—are issued every day by federal law enforcement agencies for individuals charged with, or suspected of committing, federal crimes and violations. When detainers are not honored, the justice system cannot work, and inmates are released into the community where they are free to commit crime, victims are denied the right to justice, and law enforcement officers, who must find and rearrest the suspect, are endangered. Our immigration laws are part of our justice system. Failing to honor immigration detainers—at the very least wastes limited law enforcement resources—and worse, can lead to tragic outcomes for law enforcement and victims. All jurisdictions must uphold the rule of law in order for our system of justice to work.”
Individuals who are suspected of committing federal crimes and violations have certain rights under the Constitution, including individuals brought into federal custody after having a detainer lodged against them.
Jurisdictions that fail to honor detainers impede the administration of justice. While cooperation among law enforcement agencies in Maryland is generally excellent, there are some instances where local jurisdictions failed to honor federal detainers, sometimes with tragic consequences. Josue Rafael Fuentes-Ponce and Joel Ernesto Escobar, two Salvadoran national underage teenagers, were arrested in May 2018 and charged in Prince George’s County with attempted first-degree murder, attempted second-degree murder, participation in gang activity, conspiracy to commit murder, attempted robbery, and other charges. U.S. Immigration and Customs Enforcement (ICE) lodged immigration detainers with the Prince George’s County Detention Center for both individuals. Both Fuentes-Ponce and Escobar were released following the conclusion of that case, without the ICE detainer being honored and without any notification provided to ICE. According to court documents, in May 2019, Fuentes-Ponce and Escobar were again arrested and charged with the MS-13-related murder of a 14-year-old girl.
In another Prince George’s County case, on February 18, 2019, U.S. Immigration and Customs Enforcement (ICE) issued a detainer with the Prince George’s County Detention Center for Guatemalan national Juan Vincente Gomez-Quintana, who was in the United States illegally, after his arrest on local charges. Gomez-Quintana is a previously convicted felon who had been deported, with prior criminal convictions for identity theft, fraud, multiple DUIs, and trespassing. ICE also notified the county of an outstanding federal criminal arrest warrant for illegal reentry issued by the U.S District Court for the Eastern District of Virginia. On May 8, 2019, Prince George’s County released Gomez without honoring the detainer or the federal criminal arrest warrant. Gomez is still being sought by law enforcement.
On March 26, 2019, U.S. Immigration and Customs Enforcement (ICE) arrested Carlos Manuel Murcia-Brizuela, a Salvadoran national in Manassas, Virginia. as a previously deported criminal alien. On April 9, 2019, the U.S. District Court for the Eastern District of Virginia issued a criminal arrest warrant for Murcia on the federal charge of illegal reentry. On April 11, 2019, Murcia was turned over to the Fairfax County, Virginia, Police Department pending extradition to Montgomery County, Maryland, due to an outstanding criminal warrant issued by Montgomery County Circuit Court for felony rape and third-degree sex assault. In addition to notifying Montgomery County of the outstanding federal criminal arrest warrant, an immigration detainer was also placed on Murcia. Unfortunately, a sexual predator is now free, since neither the federal criminal arrest warrant nor the immigration detainer was honored by Montgomery County, and Murcia was released on July 12, 2019. Murcia is still being sought by law enforcement. Some of Murcia’s previous convictions include felony DUI causing injury, inflicting corporal injury on a spouse, and a misdemeanor conviction for cruelty towards animals.
The U.S. Attorney’s Office for the District of Maryland values its relationship with our federal, state, and local law enforcement partners and we will continue to work with them to arrest and prosecute violent criminals—regardless of immigration status—and remove them from our communities.
The Attorney General’s remarks are available here.
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Russian Citizen Pleads Guilty to Cyber Tax Fraud Scheme That Resulted in More Than $1.5 Million in Losses to Department of the TreasuryRead the Press Release
Earlier today, in federal court in Brooklyn, Anton P. Bogdanov, a citizen of Russia, pleaded guilty before United States Magistrate Judge Vera M. Scanlon to wire fraud conspiracy and computer intrusion in connection with a scheme in which he and others used stolen personal information to file federal tax returns and fraudulently obtain more than $1.5 million in tax refunds from the Department of the Treasury. When sentenced, Bogdanov faces up to 20 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“Cyber criminals operating from halfway around the world might think they are beyond the reach of U.S. law enforcement, but they are mistaken – just ask Anton P. Bogdanov. This Office and our law enforcement partners will use all necessary resources to combat sophisticated computer hacking and identity theft,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation the New York County District Attorney’s Office for its assistance with the case.
“Combating cyber-attacks is one of IRS-CI’s top priorities especially when our taxpayers are victimized,” stated IRS-CI Special Agent-in-Charge Larsen. “Mr. Bogdanov used sophisticated means to enrich himself, and we will always be at the ready to tackle these global fraud schemes.”
According to court filings, between June 2014 and November 2016, Bogdanov and his co-conspirators misappropriated personally identifiable information (“PII”), such as Social Security numbers and dates of birth of identity theft victims by gaining unauthorized access to the computer systems of private tax preparation firms in the United States. He and his co-conspirators then changed the tax return information so that the refunds were paid to prepaid debit cards that they controlled. Bogdanov and his co-conspirators were able to gain access to these systems by exploiting a vulnerability in a remote access program used by the tax preparation firms’ employees to log in from home and while traveling. Bogdanov also used misappropriated PII to obtain prior tax filings of victims from the IRS Transcript System website, and filed new tax returns, purportedly on behalf of the victims, so that refunds were paid to prepaid debit cards he and his co-conspirators controlled. The debit cards were cashed out in the United States, and a percentage of the proceeds was wired to Bogdanov in Russia.
Bogdanov was arrested in Thailand in November 2018 and extradited to the United States in March 2019.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Michael T. Keilty and Jonathan E. Algor are in charge of the prosecution.
The Defendant:
ANTON P. BOGDANOV (also known as “Kusok”)
Age: 34
RussiaE.D.N.Y. Docket No. 19-CR-197 (MKB)
Rochester Man Pleads Guilty to Having A Gun in A School ZoneRead 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 Jose L. Silva, Jr., 25, of Rochester, NY, pleaded guilty to possession of a firearm in a school zone before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a $100,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on May 12, 2019, the defendant possessed a loaded firearm while he was within 1,000 feet of the grounds of Benjamin Franklin High School in Rochester. Silva passed by the school on his way to the Wal-Mart on Hudson Avenue in Rochester.
While the defendant was at Wal-Mart, store security officers observed him stealing clothing. They stopped Silva and recovered a .22 caliber revolver with a defaced serial number in his sweatshirt pocket. Although the gun was not functional, it was loaded with nine rounds of ammunition.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for May 4, 2020, at 11:00 a.m. before Judge Geraci.
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Riverview Man Pleads Guilty to Distributing More Than A Kilogram of CocaineRead the Press Release
Tampa, Florida – Emmanuel de la Cruz (40, Riverview) today pleaded guilty to distributing cocaine. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, a confidential informant (CI) negotiated with de la Cruz to obtain cocaine. The CI traveled to meet de la Cruz at a house where de la Cruz gave the CI just over a kilogram of cocaine.
This case was investigated by the Drug Enforcement Administration and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Callan L. Albritton.
Rhode Island Property Developer Sentenced to Eight Years in Prison for $10 Million Ponzi Scheme and Obstructing IRS InvestigationRead the Press Release
An East Greenwich, Rhode Island, property developer was sentenced to eight years in prison today for operating a $10.3 million dollar Ponzi scheme and obstructing an Internal Revenue Service (IRS) investigation, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Aaron L. Weisman for the District of Rhode Island.
According to court documents and statements made in court, Monique N. Brady owned and operated MNB LLC, a property preservation and rehabilitation business. From 2014 through summer 2018, Brady used her business to solicit private investors to invest funds for large scale rehabilitation of properties with the promise that investors would receive half of the profits. Brady told investors the projects consisted of full‑scale rehabilitations of foreclosed properties in Rhode Island, Connecticut, Massachusetts, and New Hampshire, costing tens of thousands of dollars. In reality, the projects consisted of smaller preservation-type work costing far less. In many instances, Brady solicited investors and received funds for projects that did not exist. Of the 171 properties for which Brady ostensibly obtained investor fund for rehabilitation projects, 98 were for properties her company was never hired to preserve, and on which no work was ever performed.
To make her solicitations appear legitimate, Brady created fraudulent emails claiming she had won a bid to rehabilitate a property from an established national property preservation company. Although these emails included the name of an actual employee of the company, the company in fact had no such involvement with Brady and the employee’s name was used without permission. Brady collected more than $10 million in investor funds, some of which she used for personal expenditures.
After Brady was informed that she was the subject of an IRS investigation, she attempted to obstruct the investigation by asking her investors to delete all emails, texts, and documents relating to their investments in MNB rehabilitation projects.
On July 11, 2019, Brady pleaded guilty to charges of wire fraud, aggravated identity theft, and obstructing an Internal Revenue Service (IRS) investigation.
In addition to the term of imprisonment, U.S. District Court Judge John J. McConnell Jr. ordered Brady to serve three years of supervised release, to pay $4.78 million in restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Weisman thanked special agents of the IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Assistant U.S. Attorney Lee Vilker and Trial Attorney Christopher O’Donnell of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Raleigh County Woman Enters Guilty Plea to Health Care FraudRead the Press Release
Defendant fraudulently obtained over $300,000
CHARLESTON, W.Va. – Julie M. Wheeler entered a guilty plea for federal health care fraud, announced United States Attorney Mike Stuart. Wheeler, 43, of Beckley, faces up to 10 years of incarceration, a $250,000 fine, and three years of supervised release when sentenced on May 20, 2020. She will also be subject to an order of restitution in an amount ranging from $302,131 to $469,983, with the final determination to be made by the Court at sentencing.
“Can you imagine? Wheeler defrauded the Spina Bifida Health Care Benefits Program and in the process stole hundreds of thousands of dollars from taxpayers,” said United States Attorney Mike Stuart. “Taking advantage of the condition of spina bifida of a child for personal greed is truly a despicable crime. Wheeler even admitted that she defrauded the VA of hundreds of thousands of dollars and deprived the victim- a child diagnosed with spina bifida- of services. The VA provides critical benefits and services to heroic veterans and their dependents. Our veterans deserve better. The families of our veterans deserve better. And the victims of terrible conditions like spina bifida deserve all of God’s graces. Greed is a terribly destructive human condition.”
The VA provided health care benefits to certain Korean and Vietnam War veteran’s children who were diagnosed with spina bifida through the Spina Bifida Health Care Benefits Program. Spina bifida is a type of birth defect where there is an incomplete closing of the spine, potentially leading to complications including difficulty in walking, poor bladder or bowel control, and difficulty in mobility. A veteran’s child, K.L., received such a diagnosis and qualified for in home care through this VA program.
Wheeler was related to K.L and was also the owner of a homecare services company, JRW Homecare Support Services. Wheeler was hired to provide services to K.L. due to K.L.’s spina bifida condition at the VA approved rate of $736 a day to provide eight hours of daily services. Wheeler’s care was supposed to include bathing, grooming, changing K.L.’s clothes and other issues associated with K.L.’s hygiene, food intake, and lifestyle.
Wheeler submitted fraudulent applications where she filled out VA forms and was overpaid for providing care for K.L. Specifically, Wheeler did not provide K.L. the care for and during the time period described. Wheeler submitted claims to the VA stating that she provided care for K.L. eight hours a day, seven days a week, from October 2016 to April 2018 at the full daily rate of $736 a day. Wheeler gave a statement to the VA and the FBI admitting that she greatly inflated the rate and quality of the care that she provided to K.L. This was corroborated by other witnesses who provided statements that Wheeler did not provide eight hours of daily care. Wheeler further admitted that her conduct defrauded the VA of hundreds of thousands of dollars and deprived the victim of services. The victim of the spina bifida diagnosis, K.L., has since passed away.
Stuart praised the work of the Veterans Affairs - Office of Inspector General (VA-OIG), the Federal Bureau of Investigation, the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG). The investigation was conducted by members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid (ARPO) Strike Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.
Senior United States District John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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RI Businesswoman Sentenced in $10M Ponzi Scheme that Defrauded 23 IndividualsRead the Press Release
PROVIDENCE – An East Greenwich attorney and businesswoman who duped family members, friends, and business associates as she operated a $10.3 million Ponzi scheme to help finance an extravagant lifestyle, including a $1 million home, numerous expensive trips abroad and multiple trips to the Super Bowl, and luxury items such as her collection of Louis Vuitton shoes, was sentenced in U.S. District Court in Providence today to 8 years in federal prison and ordered to pay back her victims a total of $4.78 million.
Monique N. Brady, 45, whose company, MNB, specialized in preserving the condition of foreclosed homes for resale, previously admitted to the court that among those she defrauded were close friends in her community, a close friend from childhood and another from law school, a childcare provider for her children, an elderly Alzheimer’s patient, her step-brother, and three firefighters in the same city where her now ex-husband is employed as a firefighter.
As part of the scheme, Brady told investors that her company had secured contracts to perform large scale rehabilitation projects on foreclosed properties in Rhode Island, Connecticut, Massachusetts, and New Hampshire. She represented to a total of thirty-one investors that payments ranging from approximately $20,000 to $80,000 were needed to pay subcontractors to perform the work. In exchange for their investment, they were promised a return of fifty percent of the profit realized on the project they invested in. Many investors realized little or no return on their investment. Some investors invested in multiple projects.
In reality, MNB was hired by banks to perform menial tasks such as mowing grass, changing locks, winterizing properties, boiler or electrical inspections, and snow removal. The majority of projects secured by MNB were for less than $1,000. Many were for as little as $25 to a few hundred dollars.
To make potential investors believe she had secured contracts for large scale rehabilitation projects, Brady provided fraudulent emails purporting to be from a national property rehabilitation company claiming Brady had been approved to rehabilitate a property. Brady included in the emails fraudulent itemizations of work to be performed. Brady also included, without permission, the identity of an actual employee of the national property rehabilitation company in an attempt to make the emails appear authentic.
By the time the scheme ended after its discovery in the summer of 2018, twenty-three individuals had lost approximately $4.8 million to Brady. An investigation by Internal Revenue Service Criminal Investigation revealed that of the 171 properties for which Brady solicited and received funds from investors, 98 were for properties her company was never hired to preserve, on which no work was performed.
“Monique Brady took advantage of the trust many, many people put in her, with total disregard for the path of personal pain and financial ruin she left behind. Her conduct was reprehensible and heartbreaking,” said United States Attorney Aaron L. Weisman.
“I commend the hard work of investigators from IRS Criminal Investigation and FBI who put a stop to Monique Brady and her schemes, and the prosecution team of attorneys from our office and from the Department of Justice’s tax division that held her accountable. I hope the significant sentence imposed today by Chief Judge McConnell will bring some measure of justice to the many victims of Monique Brady.”
“Monique Brady operated a multi-year scheme in which her victims included some of her closest friends, a relative, and many others with whom she had community ties. Equally disturbing to the scheme is Brady’s attempt to cover her misdeeds by asking those same victims to delete and destroy the very evidence that would eventually lead to her prosecution.” said Special Agent in Charge Kristina O’Connell. “Though Brady’s victims have suffered both financial and emotional losses, I hope that today’s sentencing leaves them comforted by the fact that justice has been served.”
“The nearly two dozen people Monique Brady defrauded of millions included family, first responders, neighbors, childhood pals, and elders in the grips of dementia – people who trusted her to invest their life savings, only to be left with empty bank accounts and grief,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We at the FBI hope the victims find some measure of comfort in today’s sentence. “
Brady also admitted to attempting to obstruct an Internal Revenue Service criminal investigation when, after being told by IRS criminal investigators she was under investigation, she asked investors to delete or destroy all email correspondence, texts, and documents relating to their investments in MNB rehabilitation projects.
According to court documents, after Brady became aware of the investigation, she and her paramour, a Rhode Island attorney, secured a meeting with the Rhode Island Department of the Attorney General and the Rhode Island State Police, requesting they investigate the victims of this case for usury.
As the case proceeded toward federal indictment, Brady purchased a one way ticket to Vietnam. Once the FBI discovered Ms. Brady’s intention to leave the country, she moved her flight to an earlier departure date. Ms. Brady was arrested one day before her scheduled flight.
Ms. Brady pleaded guilty on July 11, 2019, to wire fraud, aggravated identity theft, and obstructing an IRS investigation.
At sentencing today, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Brady to 96 months imprisonment, 3 years’ supervised release, and ordered her to pay restitution to the victims totaling approximately $4.8 million.
The case was prosecuted by Assistant United States Attorney Lee Vilker of the District of Rhode Island and Trial Attorney Christopher O’Donnell of the Tax Division.
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Prince George’s County Felon Sentenced to More Than 5 Years in Federal Prison for Illegal Possession of a Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Warren Louis Taylor, Jr., age 48, of Suitland, Maryland, to 66 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition. The sentence was imposed on February 10, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Tim Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to Taylor’s guilty plea, on February 21, 2019, officers with the Prince George’s County Police Department were patrolling the area of an apartment complex in District Heights, Maryland, when they got out of their cars to investigate a strong odor of fresh and burnt marijuana. They saw two individuals in the back seat of a black Nissan Pathfinder and a cloud of smoke inside the vehicle. Taylor was seated behind the driver’s seat and a female was seated behind the front passenger’s seat. As the officers spoke with Taylor, they saw several marijuana cigarettes and loose marijuana and conducted a search of the vehicle. The officers located a .40-caliber semi-automatic pistol, loaded with seven rounds of .40-caliber ammunition, underneath the driver’s seat, directly in front of where Taylor was sitting. They also recovered approximately 198 grams of marijuana, $5,755 in cash, and drug distribution paraphernalia.
Taylor admitted that the firearm, drugs and cash belonged to him and that he planned to distribute the marijuana. Further, Taylor knew that he was prohibited from possessing a firearm or ammunition as a result of a previous felony drug conviction.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jessica Collins and Elizabeth Wright, who prosecuted the case.
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Postal Worker Charged with Stealing Packages Containing NarcoticsRead the Press Release
BOSTON – A U.S. Postal employee was arrested today and charged in federal court in Boston with stealing mail believed to contain controlled substances.
Shawn M. Herron, 44, of Whitman, Mass., was charged in a criminal complaint with one count of theft of mail. Herron was released on conditions following an initial appearance in federal court this afternoon.
Herron has been employed by the Postal Service since September 2005, and is currently a Manager of Customer Services at the Fall River Post Office. Prior to this position, he was the Supervisor of Customer Service at the Canton Post Office.
According to court documents, Herron tracked packages he suspected of containing narcotics and, rather than dealing with them appropriately, opened them and stole the contents for his own use. It is alleged that Herron profiled priority parcels from Puerto Rico and west coast U.S. states, and parcels flagged by law enforcement as potentially containing illegal narcotics, and then removed them from the U.S Mail stream. Herron tracked the suspected parcels through Postal Service databases and monitored their arrival at the Fall River Post Office (FPO). After their arrival at the FPO, Herron located the parcels and brought them to his personal office space, where it is alleged that he stole the narcotics and stowed them for personal use and possible distribution. These parcels often then disappeared from the mail stream altogether, and expected customers reported them as never being delivered.
The charging statute provides a sentence of up to five years in prison, at least three years of supervised release and up to a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Matthew M. Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburgh Man Served as a Drug Runner for DS44 Neighborhood GangRead the Press Release
PITTSBURGH, PA –A resident of Pittsburgh pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Keevan Jackson, 21, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute 40 grams or more of heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Jackson is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Jackson was involved in the distribution of heroin and fentanyl, including serving as a runner for co-conspirator Christopher Highsmith.
Judge Stickman scheduled sentencing for July 9, 2020, at 10:30 am. The law provides for a total sentence of not less than five years to not more than 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Jackson remains detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the
Wilkinsburg Police Department. Other assistingagencies include the Green Tree PoliceDepartment, New YorkCityPolice Department, Mount Oliver Police Department, PennsylvaniaState Police, Yonkers Police Department,United States Marshals Fugitive Task Force, and theUnited States PostalInspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement TaskForce Program (OCDETF). The OCDETF program supplies critical federal fundingandcoordination thatallows federaland state agencies to work together to successfully identify,investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pierre Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Andrew Bunch, age 30, was sentenced to 324 months in federal prison, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bunch was indicted by a federal grand jury on May 14, 2019. He pled guilty on November 19, 2019.
The conviction stemmed from a conspiracy beginning in the spring of 2018 and continuing through May 2019, in which Bunch, his friend Nathan Thoe (deceased), Nikki Hopkins and others, intentionally distributed and possessed with intent to distribute 2.2 kilograms of methamphetamine, a Schedule II controlled substance in and around the Pierre and Ft. Pierre areas.
During the course of the conspiracy, Bunch, Thoe, and Hopkins made numerous trips to Colorado to obtain methamphetamine. Bunch and Thoe routinely carried firearms on these trips and used firearms to protect their product. Hopkins was sentenced on January 27, 2020, to 10 years in federal prison.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Division of Criminal Investigation, the Pierre Police Department, the Stanley County Sheriff’s Office, the South Dakota Highway Patrol, and the Bureau of Indian Affairs. Assistant U.S. Meghan N. Dilges prosecuted the case.
Bunch was immediately turned over to the custody of the U.S. Marshals Service.
Pierre Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on February 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Loren Goodlow, age 30, was sentenced to 6 months in federal prison, followed by 6 months of home confinement, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Goodlow was indicted by a federal grand jury on October 16, 2018. He pled guilty on November 19, 2019.
The conviction stemmed from an incident in Lower Brule, South Dakota, on August 28, 2018, after Goodlow was arrested on tribal charges. During the booking process, Goodlow struck a correctional officer.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Goodlow was immediately turned over to the custody of the U.S. Marshals Service.
Part Owner of International Trading Business Sentenced to Three Years in Prison for Tax FraudRead the Press Release
A Saratoga, California, businessman was sentenced to 36 months in prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney David L. Anderson for the Northern District of California.
“The integrity of our tax system relies on all taxpayers filing accurate tax returns and dealing honestly with the Internal Revenue Service,” said Principal Deputy Assistant Attorney General Zuckerman. “Those who commit tax crimes by cheating on their returns and dealing falsely with the IRS expose themselves to criminal prosecution and prison.”
“The defendant’s luxury residence and vehicle reflect his true income, not the income he falsely underreported to the IRS,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “His crime was compounded by lying to the IRS when he was audited. Today’s sentence sends a clear message that those who intentionally conceal income and evade taxes will be held accountable for their crimes.”
According to the evidence presented at trial and information provided to the Court, Jyh-Chau “Henry” Horng was a minority owner of a home-based international trading business that sold scrap metal to China while that country was undergoing its economic and infrastructure boom. From 1999 through 2008, Horng failed to report on his tax returns millions of dollars in profits from the business. Horng and his wife used the business profits to buy residential properties in New York City and the San Francisco Bay area, invest over $5 million in a Milpitas shopping center, and purchase a Bentley. During an IRS audit of the returns, Horng made false statements to the Internal Revenue Service (IRS), including that neither he nor his wife had any foreign bank accounts. After the audit, Horng failed to file any tax returns from 2009 through 2018.
Horng was convicted by a jury in June 2018 of filing false tax returns and making false statements to an IRS agent while under audit. After the jury verdict, Horng also pleaded guilty to lying on a bank mortgage application.
In addition to the term of imprisonment, U.S. District Judge Beth Labson Freeman ordered Horng to serve three years of supervised release and to pay $1.1 million in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Anderson thanked special agents and a former special agent of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Michael Pitman and Trial Attorney Christopher Magnani of the Tax Division, who prosecuted the case, and Paralegal Specialist Jonathan Deville for his assistance during the trial.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Parmelee Couple Sentenced in Involuntary Manslaughter CaseRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, couple has been sentenced by Chief Judge Roberto A. Lange, U.S. District Court, based on their convictions in an Involuntary Manslaughter and Child Abuse case.
Dakota Horned Eagle, age 29, pled guilty on November 4, 2019, to Involuntary Manslaughter and Operating a Motor Vehicle While Under the Influence of Alcohol Causing Serious Bodily Injury to a Minor. On January 27, 2020, he was sentenced to 52 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Ashley Stoneman, age 25, pled guilty on November 18, 2019, to Child Abuse. On February 10, 2020, she was sentenced to 18 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
The couple was indicted by a federal grand jury on July 23, 2019.
The convictions stemmed from an incident that occurred on July 12, 2019, in Todd County, South Dakota. On that date, Horned Eagle and Stoneman were consuming alcoholic beverages and socializing at a residence in the He Dog Community. At approximately 1:00 p.m., they decided to drive back to their residence in nearby Parmelee. They loaded six children into their vehicle and departed the residence, with Horned Eagle driving and Stoneman riding in the front passenger seat. None of the children, who ranged in age from two months old to twelve years old, were secured with car seats or seat belts. Horned Eagle was intoxicated. A short time later, they were traveling on a gravel road between He Dog and Parmelee, when their vehicle left the roadway and wrecked. At the time of the wreck, Horned Eagle was driving at least 50 miles per hour (mph) in an area where the posted speed limit is 35 mph.
Two of the children in the vehicle suffered fatal injuries as a result of the wreck. The other four children in the vehicle sustained non-life-threatening injuries.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Horned Eagle and Stoneman were immediately turned over to the custody of the U.S. Marshals Service.
Owner of Car Dealership Charged with Engaging in Large-scale FraudRead the Press Release
NEWARK, N.J. – The former owner of a Ramsey, New Jersey, car dealership is scheduled to make his initial court appearance and be arraigned today on charges that he defrauded his customers and lenders, U.S. Attorney Craig Carpenito announced.
Afzal Khan, a/k/a “Bobby Khan,” 37, was charged by indictment in 2015 with five counts of wire fraud.
According to the documents filed in this case and statements made in court:
From at least December 2013 through September 2014, Khan, through his car dealership,
Emporio Motor Group (“Emporio”) of Ramsey, engaged in acts to defraud lenders to, and customers of, Emporio. As part of his criminal activities, Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible. Khan also obtained loans from the victim bank for cars that were delivered, but for which neither he nor Emporio had title. The purchasers of these cars were liable for the loans, but could not register the cars. Khan also offered to sell cars for individuals on consignment but thereafter did not return the cars or provide any money to the purchaser from the sale of the car.
As a result of Khan’s actions, the victim bank was exposed to a potential loss of more than $1.5 million.
Each count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Khan or twice the gross loss suffered to the victims of his offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment. He also thanked the Department of Justice’s Office of International Affairs, the Bergen County Prosecutor’s Office and the Ramsey Police Department for their assistance in the case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Oklahoma United States Attorneys Share National Concerns with Sanctuary City PoliciesRead the Press Release
The United States Attorneys from Oklahoma share Attorney General William Barr’s concerns with sanctuary policies in some cities across our nation expressed yesterday at the National Sheriffs' Association conference. (See remarks here.) U.S. Attorney Timothy J. Downing, Western District of Oklahoma, U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma, U.S. Attorney R. Trent Shores, Northern District of Oklahoma, and U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office Director Marc J. Moore collectively make the following statement:
Sanctuary city policies, however well intended, are misleading, uninformed, and detrimental to public safety. In reality, only criminals find sanctuary in sanctuary cities.
In partnership with the Field Office Director of Immigration and Customs Enforcement, we want to express our gratitude to the state, tribal, and local law enforcement authorities throughout Oklahoma that partner with federal agencies to improve public safety by enforcing federal immigration laws that were passed by Congress. These collaborative law enforcement relationships make Oklahomans safer by ensuring that dangerous criminals who are also unlawful aliens in our country are held accountable and removed from our communities.
Law enforcement agencies in Oklahoma understand that effective law enforcement includes immigration enforcement. However, there is a growing public-safety concern that sanctuary city policies seen in other states could find a foothold here in Oklahoma.
Despite claims to the contrary, so-called sanctuary policies do not protect illegal immigrants who came to our country but have otherwise been peaceful and productive members of society. Rather, the express purpose of sanctuary policies is to shelter illegal aliens whom local law enforcement have already arrested for other crimes. In short, sanctuary policies protect criminals and hurt immigrant communities.
Over the past year in Oklahoma, the vast majority of illegal aliens who have faced federal criminal charges and potential deportation have been previously convicted of felony offenses. Examples of those felony convictions include:
- Aggravated sexual assault of a child under 14 years of age
- Failure to register as a convicted sex offender
- Assault and battery with a dangerous weapon- automobile
- Assault and battery with dangerous and deadly weapons
- Battery with serious bodily injury
- Aggravated assault on a peace officer
- Domestic assault and battery
- Domestic assault and battery by strangulation
- Domestic assault and battery with a dangerous weapon
- Domestic assault and battery in the presence of a minor
- Possession of illegal drugs
- Possession of drugs with intent to distribute (heroin, crack, cocaine, methamphetamine and more)
- Money laundering
- Trafficking of illegal drugs
- Attempted armed robbery
- Driving under the influence of alcohol or drugs
- Conspiring to perform an act of violence
Individuals who engage in criminal activity, regardless of their immigration status, pose a danger in every community.
When state or local jurisdictions have custody of known or suspected illegal aliens, federal law enforcement may issue a detainer – a formal request to hold that criminal – so it can take appropriate action, including deportation, following the conclusion of the immigrant’s pending state proceeding. Honoring detainers is not anti-immigrant; rather, honoring detainers is anti-criminal and critical to protecting all Oklahomans, including immigrants.
The fact of the matter is that when sanctuary jurisdictions ignore lawful detainers, they release criminal aliens onto the street. These catch and release policies imperil the safety of every person in a community. Moreover, it puts into harm’s way law enforcement officers who are often tasked with locating released criminal aliens and executing arrest warrants. Importantly for Oklahomans, the consequences of sanctuary city policies do not exclusively impact sanctuary jurisdictions. Indeed, known criminal aliens released into so called “sanctuary cities” have traveled to neighboring jurisdictions, where they have committed heinous, violent crimes.
For these reasons, we stand with Attorney General Barr in his rejection of sanctuary city policies. We support Oklahoma’s immigrant communities and look forward to working with them to improve public safety. As such, we will continue working with our law enforcement partners and community leaders to hold accountable all criminals who violate our laws and harm our communities.
-U.S. Attorney Timothy J. Downing, Western District of Oklahoma
-U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma
-U.S. Attorney R. Trent Shores, Northern District of Oklahoma
- Field Office Director Marc J. Moore, U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office
SEE remarks from Attorney General William P. Barr regarding protecting public safety by enforcing immigration laws at the National Sheriffs’ Association Winter Legislative and Technology Conference
Oklahoma United States Attorneys Share National Concerns with Sanctuary City PoliciesRead the Press Release
The United States Attorneys from Oklahoma share Attorney General William Barr’s concerns with sanctuary policies in some cities across our nation expressed yesterday at the National Sheriff’s Association conference. (See remarks here.) U.S. Attorney Timothy J. Downing, Western District of Oklahoma, U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma, U.S. Attorney R. Trent Shores, Northern District of Oklahoma, and U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office Director Marc J. Moore collectively make the following statement:
Sanctuary city policies, however well intended, are misleading, uninformed, and detrimental to public safety. In reality, only criminals find sanctuary in sanctuary cities.
In partnership with the Field Office Director of Immigration and Customs Enforcement, we want to express our gratitude to the state, tribal, and local law enforcement authorities throughout Oklahoma that partner with federal agencies to improve public safety by enforcing federal immigration laws that were passed by Congress. These collaborative law enforcement relationships make Oklahomans safer by ensuring that dangerous criminals who are also unlawful aliens in our country are held accountable and removed from our communities.
Law enforcement agencies in Oklahoma understand that effective law enforcement includes immigration enforcement. However, there is a growing public-safety concern that sanctuary city policies seen in other states could find a foothold here in Oklahoma.
Despite claims to the contrary, so-called sanctuary policies do not protect illegal immigrants who came to our country but have otherwise been peaceful and productive members of society. Rather, the express purpose of sanctuary policies is to shelter illegal aliens whom local law enforcement have already arrested for other crimes. In short, sanctuary policies protect criminals and hurt immigrant communities.
Over the past year in Oklahoma, the vast majority of illegal aliens who have faced federal criminal charges and potential deportation have been previously convicted of felony offenses. Examples of those felony convictions include:
- Aggravated sexual assault of a child under 14 years of age
- Failure to register as a convicted sex offender
- Assault and battery with a dangerous weapon- automobile
- Assault and battery with dangerous and deadly weapons
- Battery with serious bodily injury
- Aggravated assault on a peace officer
- Domestic assault and battery
- Domestic assault and battery by strangulation
- Domestic assault and battery with a dangerous weapon
- Domestic assault and battery in the presence of a minor
- Possession of illegal drugs
- Possession of drugs with intent to distribute (heroin, crack, cocaine, methamphetamine and more)
- Money laundering
- Trafficking of illegal drugs
- Attempted armed robbery
- Driving under the influence of alcohol or drugs
- Conspiring to perform an act of violence
Individuals who engage in criminal activity, regardless of their immigration status, pose a danger in every community.
When state or local jurisdictions have custody of known or suspected illegal aliens, federal law enforcement may issue a detainer – a formal request to hold that criminal – so it can take appropriate action, including deportation, following the conclusion of the immigrant’s pending state proceeding. Honoring detainers is not anti-immigrant; rather, honoring detainers is anti-criminal and critical to protecting all Oklahomans, including immigrants.
The fact of the matter is that when sanctuary jurisdictions ignore lawful detainers, they release criminal aliens onto the street. These catch and release policies imperil the safety of every person in a community. Moreover, it puts into harm’s way law enforcement officers who are often tasked with locating released criminal aliens and executing arrest warrants. Importantly for Oklahomans, the consequences of sanctuary city policies do not exclusively impact sanctuary jurisdictions. Indeed, known criminal aliens released into so called “sanctuary cities” have traveled to neighboring jurisdictions, where they have committed heinous, violent crimes.
For these reasons, we stand with Attorney General Barr in his rejection of sanctuary city policies. We support Oklahoma’s immigrant communities and look forward to working with them to improve public safety. As such, we will continue working with our law enforcement partners and community leaders to hold accountable all criminals who violate our laws and harm our communities.-U.S. Attorney Timothy J. Downing, Western District of Oklahoma
-U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma
-U.S. Attorney R. Trent Shores, Northern District of Oklahoma
-Field Office Director Marc J. Moore, U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office
Oklahoma United States Attorneys Share National Concerns with Sanctuary City PoliciesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorneys from Oklahoma share Attorney General William Barr’s concerns with sanctuary policies in some cities across our nation expressed yesterday at the National Sheriff’s Association conference. (See remarks here) U.S. Attorney Timothy J. Downing, Western District of Oklahoma; U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma; U.S. Attorney R. Trent Shores, Northern District of Oklahoma; and U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office Director Marc J. Moore collectively make the following statement:
Sanctuary city policies, however well intended, are misleading, uninformed, and detrimental to public safety. In reality, only criminals find sanctuary in sanctuary cities.
In partnership with the Field Office Director of Immigration and Customs Enforcement, we want to express our gratitude to the state, tribal, and local law enforcement authorities throughout Oklahoma that partner with federal agencies to improve public safety by enforcing federal immigration laws that were passed by Congress. These collaborative law enforcement relationships make Oklahomans safer by ensuring that dangerous criminals who are also unlawful aliens in our country are held accountable and removed from our communities.
Law enforcement agencies in Oklahoma understand that effective law enforcement includes immigration enforcement. However, there is a growing public-safety concern that sanctuary city policies seen in other states could find a foothold here in Oklahoma.
Despite claims to the contrary, so-called sanctuary policies do not protect illegal immigrants who came to our country but have otherwise been peaceful and productive members of society. Rather, the express purpose of sanctuary policies is to shelter illegal aliens whom local law enforcement have already arrested for other crimes. In short, sanctuary policies protect criminals and hurt immigrant communities.
Over the past year in Oklahoma, the vast majority of illegal aliens who have faced federal criminal charges and potential deportation have been previously convicted of felony offenses. Examples of those felony convictions include:- Aggravated sexual assault of a child under 14 years of age
- Failure to register as a convicted sex offender
- Assault and battery with a dangerous weapon- automobile
- Assault and battery with dangerous and deadly weapons
- Battery with serious bodily injury
- Aggravated assault on a peace officer
- Domestic assault and battery
- Domestic assault and battery by strangulation
- Domestic assault and battery with a dangerous weapon
- Domestic assault and battery in the presence of a minor
- Possession of illegal drugs
- Possession of drugs with intent to distribute (heroin, crack, cocaine, methamphetamine and more)
- Money laundering
- Trafficking of illegal drugs
- Attempted armed robbery
- Driving under the influence of alcohol or drugs
- Conspiring to perform an act of violence
Individuals who engage in criminal activity, regardless of their immigration status, pose a danger in every community.When state or local jurisdictions have custody of known or suspected illegal aliens, federal law enforcement may issue a detainer – a formal request to hold that criminal – so it can take appropriate action, including deportation, following the conclusion of the immigrant’s pending state proceeding. Honoring detainers is not anti-immigrant; rather, honoring detainers is anti-criminal and critical to protecting all Oklahomans, including immigrants.
The fact of the matter is that when sanctuary jurisdictions ignore lawful detainers, they release criminal aliens onto the street. These catch and release policies imperil the safety of every person in a community. Moreover, it puts into harm’s way law enforcement officers who are often tasked with locating released criminal aliens and executing arrest warrants. Importantly for Oklahomans, the consequences of sanctuary city policies do not exclusively impact sanctuary jurisdictions. Indeed, known criminal aliens released into so called “sanctuary cities” have traveled to neighboring jurisdictions, where they have committed heinous, violent crimes.
For these reasons, we stand with Attorney General Barr in his rejection of sanctuary city policies. We support Oklahoma’s immigrant communities and look forward to working with them to improve public safety. As such, we will continue working with our law enforcement partners and community leaders to hold accountable all criminals who violate our laws and harm our communities.
- U.S. Attorney Timothy J. Downing, Western District of Oklahoma
- U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma
- U.S. Attorney R. Trent Shores, Northern District of Oklahoma
- Field Office Director Marc J. Moore, U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office
Ohio man sentenced to 14 years for plotting attack on Cleveland’s July 4th parade in an effort to support al QaedaRead the Press Release
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 50 of Maple Heights, Ohio, was sentenced to 14 years of imprisonment and lifetime supervised release for attempting to provide material support to a foreign terrorist organization, as well as 5 years of imprisonment each for threats against the President of the United States and threats against family members of the President of the United States. All three terms of imprisonment will be served concurrently.
“This defendant plotted an attack on families and children in downtown Cleveland on July 4th, a day of utmost importance to all Americans, and he further attempted to undermine our democracy by making threats against the President and his family,” U.S. Attorney Justin Herdman said. “For this conduct, the defendant is deserving of every day of this 14 year sentence. The Department of Justice is committed to protecting our nation from people who adhere to violent ideologies and move to act upon them, whether they are in furtherance of their own personal aims or, like here, on behalf of terrorist groups like Al Qaeda. We are grateful to the FBI, the Cleveland Joint Terrorism Task Force, and all of our law enforcement partners for their vigilance and hard work in this case and many others.”
“Pitts, a U.S. citizen living in Ohio, pledged his allegiance to al-Qaeda, a foreign terrorist organization, and will now serve a lengthy sentence behind bars,” said FBI Special Agent in Charge Eric B. Smith. “The FBI and the Joint Terrorism Task Force will continue to use every available resource to disrupt those who seek to bring harm to our fellow citizens.”
According to an affidavit filed in the case and other court records, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts and the UCE met in Walton Hills, Ohio, in 2018, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, to retrieve items used to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where Pitts discussed the impending July 4th bombing: “And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off.” Pitts also expressed a desire to pack a car filled with explosives near the parade, as opposed to his original idea of remote control cars filled with explosives. Pitts reasoned that less time and skill were required to pack a car with explosives versus packing individual remote control cars. Pitts further disclosed additional reconnaissance planning prior to the parade:
DP: That’s why I said I’m going down there the 2nd and the 3rd by myself.
UCE: Alright. Because we gotta have this lined up.
DP: That’s why I’m not going down by the naval base this time. I’m walking the parade route, where they going.
UCE: Alright.
DP: I might find another pick, but that point is guaranteed. That’s the one we want.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
During this conversation, Pitts once again discussed the use of remote control cars, namely as a distraction. Pitts told the UCE that he believed cut up metal should replace BBs in the remote control cars, saying: “If BBs hit you, you can still live, but if shrapnel hits you – it will tear you up.” Pitts further stated remote control cars should be rolled underneath a police car or federal agent car and detonated so that it distracted law enforcement and parade goers while the larger bomb was detonated.
Pitts’ additional plan for remote control cars packed with metal and explosives was that they be given to children of military personnel to play with during the parade so that the children would unwittingly detonate the bombs.
Pitts was arrested at the conclusion of the July 1 meeting.
The FBI-Cleveland Division’s Joint Terrorism Task investigated the case, which was prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Jerry Teresinski of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
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NDTX Round-Up February 11Read the Press Release
SENTENCING - JEAN LOUI VARGAS-MALAVE
On January 31, Jean Loui Vargas-Malave, 29, was sentenced 10 years in federal custody for conspiracy to possess methamphetamine with the intent to distribute. Vargas-Malave agreed to smuggle controlled substances onto commercial airlines at the Dallas/Ft. Worth International Airport (DFWIA). He, along with coconspirators, bypassed security at the DFWIA and loaded what they believed to be methamphetamine onto an American Airlines flight to Newark, New Jersey. This case was investigated by the Federal Bureau of Investigation, Criminal Investigations Division of the Internal Revenue Service, and the Dallas Police Department. This case was prosecuted by AUSA George Leal, AUSA John De La Garza, and AUSA John Kull.
GUILTY PLEA – HECTOR TORRES-GONZALEZ
On February 4, Hector Torres-Gonzalez, 44, pled guilty to aiding and abetting possession with the intent to distribute heroin. Torres-Gonzalez admitted to agreeing to distribute 24 kilograms of methamphetamine, 13 kilograms of heroin, and 91 grams of cocaine in April of 2019. Agents also found a pistol and $12,520 in Torres-Gonzalez’ possession. He faces up to 20 years in federal custody for his crimes. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA Rachael Jones.
SENTENCING – AUSTIN DAVID REED
On February 3, Austin David Reed, 27, was sentenced to 15 years in federal custody for the crimes of carjacking and using, carrying, and brandishing a firearm during a crime of violence. Reed stole a 2006 Acura from a victim by threatening the victim at gunpoint. After stealing the car, Reed led the officers pursuing him on a dangerous chase. Please click here to hear more about this case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department and was prosecuted by AUSA Ryan Raybould.
SENTENCING – JOHNNATTAN RAMIREZ
On February 3, Johnnattan Ramirez, 37, was sentenced to 25 years in federal custody and $182,942.96 in restitution for 3 counts related to robbery and 2 counts related to brandishing a firearm during a crime of violence. Ramirez was involved in three separate robberies of diamond and jewelry salesmen. Ramirez and his coconspirators would rent vehicles, conduct surveillance of the salesmen, and then apprehend their victims. The coconspirators would threaten the salesmen with guns and take their valuables, however on one occasion they also abducted a victim and took him to a nearby apartment complex. This case was investigated by the Federal Bureau of Investigations and prosecuted by AUSA Ryan Raybould.
SENTENCING – CRYSTAL DOUGLAS
On February 3, Chrystal Douglas, 35, was sentenced to 9 years in federal custody for maintaining a drug involved premises. Douglas allowed her coconspirator to conduct methamphetamine sales at her home in Arlington. In exchange, Douglas would receive personal use amounts of methamphetamine. Sometimes, Douglas was unaware of the amounts of methamphetamine being bought and sold in her house. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA Shawn Smith.
Multiple men convicted of trafficking cocaineRead the Press Release
LAREDO, Texas – A total of five men from Laredo have admitted to conspiracy and possessing with the intent to distribute various amount of cocaine, announced U.S. Attorney Ryan K. Patrick.
Christian Alejandro Enriquez, 27, pleaded guilty today. Luis Ernesto Lopez, 34, Martin Arturo Ramirez, 28, Jose Erasmo Saucedo Jr., 38, and Luis Antonio Villanueva, 41, previously entered their pleas.
In July 2016, authorities initiated an investigation into Saucedo’s street-level cocaine distribution activities. Between Feb. 2, 2017, and April 19, 2019, Saucedo conspired with Lopez, Ramirez, Villanueva and Enriquez in person and over the telephone to possess with intent to distribute cocaine.
Today, all five men admitted they were involved in the transportation of cocaine on various dates. On one occasion, Ramirez coordinated an event in which Lopez picked up a bag of 1.5 kilograms of cocaine from Villanueva’s house. On other dates, Saucedo and Enriquez also sold cocaine to undercover authorities.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing June 1, 2020.
Saucedo, Villanueva and Ramirez face a minimum of five and up to 40 years in prison and a possible $5 million fine. For their convictions, Lopez and Enriquez face a maximum 20-year-prison term and a possible $1 million fine.
Ramirez, Saucedo, Villanueva and Enriquez were permitted to remain on bond pending their sentencing hearings. Lopez has been and will remain in custody.
The Drug Enforcement Administration, Texas Department of Public Safety and Laredo Police Department conducted the long-term Organized Crime Drug Enforcement Task Force investigation dubbed Funion Fiesta. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Monroe County Man Found Guilty of Drug Distribution Resulting in Two DeathsRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vincent Ingino, age 28, of Stroudsburg, Pennsylvania, was found guilty of two counts of unlawfully distributing a controlled substance resulting in death after a five-day trial before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, jurors deliberated for approximately three hours before rendering the guilty verdicts against Ingino for the August 11, 2018 death of Victim 1, age 24, and the August 12, 2018 death of Victim 2, age 28, both from Monroe County, Pennsylvania.
Prosecutors from the U.S. Attorney’s Office presented the testimony of Dr. Rameen Starling-Roney, a Forensic Pathologist, and Dr. Michael Coyer, Forensic Toxicologist, who opined that fentanyl laced heroin caused the deaths of Victim 1 and Victim 2. Additional testimony was provided by Pennsylvania State Police Officers and other individuals related to the investigation who testified that Ingino first sold fentanyl laced heroin to Victim 1 on Friday night, August 10, 2018 and made another sale of fentanyl laced heroin to Victim 2 on Saturday night, August 11, 2018. FBI Special Agents and other individuals related to the distribution also testified.
“Drug dealers such as this defendant, who profit from their illegal enterprise, bear responsibility for the destruction, damage and death that they cause,” said U.S. Attorney Freed. “We are proud to work with our partners in the Monroe County District Attorney’s Office, the Pennsylvania State Police and the FBI to bring a measure of justice to two families who have lost loved ones. While we will continue to do all that we can to promote treatment for those with substance use disorders, my office will always hold the dealers who push poison in our streets to account.”
The investigation was conducted by the FBI – Scranton Office, the Pennsylvania State Police, and Detectives of the Monroe County District Attorney’s Office. Assistant United States Attorneys Michelle Olshefski and Jenny Roberts prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid 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.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. The drug distribution resulting in death charge also carries a mandatory minimum penalty of 20 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mission Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on February 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Hunter Ritter, age 20, was sentenced to 30 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ritter was indicted by a federal grand jury on October 16, 2019. He pled guilty on November 19, 2019.
The conviction stemmed from an incident that occurred on August 9, 2019, wherein Ritter assaulted his domestic partner at their home in Mission, by striking her face with his hand and knocking her down. At the time of this incident, Ritter had two prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Ritter was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Abusive Sexual Contact was sentenced on February 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Elliot Brave, a/k/a Elliot Ladeaux, age 39, was sentenced to 240 months in federal prison, followed by 7 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brave was indicted by a federal grand jury on September 11, 2018. He pled guilty on November 19, 2019.
The conviction stemmed from conduct that occurred in Mission between December 2017 and January 2018. During that period, Brave was staying at a residence in Mission with a relative and her six children, including the six-year-old victim. While staying at the residence, Brave would often watch the children while their mother was at work. On at least one occasion, Brave engaged in sexual contact with the victim.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Brave was immediately turned over to the custody of the U.S. Marshals Service.
Middle District of Florida Highlights Efforts to Support Illegal Immigration EnforcementRead the Press Release
Tampa – United States Attorney Maria Chapa Lopez and Acting Miami Field Office Director Jim Martin, of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) announced today their ongoing commitment to combat illegal immigration and reduce violent crime.
“Our Office is committed to using every tool available to keep our communities safe,” said U.S. Attorney Maria Chapa Lopez. “The ongoing cooperation demonstrated by our federal, state, and local law enforcement partners in the Middle District of Florida in supporting our nation’s immigration enforcement policies have assisted us in working toward our mission – public safety for all.”
“Citizens and guests of Florida are safer today because of strong law enforcement partnerships at the local, state, and federal level,” said acting Miami Field Office Director Jim Martin. “Partnerships like the 287g program, the Warrant Service Officer program, and the Basic Ordering Agreement partnerships work to keep criminals out of our local communities, while our United States Attorney Office works diligently to make sure those individuals are held accountable for their crimes.”
The United States Attorney’s Office for the Middle District of Florida (USAO-MDFL), along with our federal, state, and local partners, is engaged in ongoing cooperation and coordination to prioritize and enforce the Department’s policies. In addition, since 2009, ICE has designated Special Assistant U.S. Attorneys to assist the USAO-MDFL in reviewing and prosecuting cases related to threats against our homeland, including immigration offenses, illegal reentry, and violent crime. See below for MDFL significant case highlights.
SIGNIFICANT IMMIGRATION ENFORCEMENT CASE SUMMARIES
United States v. Missael Gonzalez Terrazas Case No. 5:19-cr-19 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/illegal-alien-sentenced-seven-years-federal-prison-trafficking-methamphetamine
United States v. Faisal Buarki Case No. 8:19-cr-148 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/former-university-student-sentenced-unlawful-possession-firearms
United States v. Jorge Humberto Delgado-Macias Case No. 8:18-cr-558 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/illegal-alien-sentenced-aggravated-identity-theft-and-firearms-possession
United States v. Juan Alberto Flores-Jimenez Case No. 6:18-cr-225 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/mexican-national-and-leader-georgia-based-drug-trafficking-organization-sentenced-17
United States v. Juan Carlos Ramirez-Arcos Case No. 8:17-cr-585 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/illegal-alien-living-bradenton-pleads-guilty-federal-firearms-offense-shooting-death
United States v. Perez-Ramos et al Case No. 5:18-cr-51 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/two-illegal-aliens-sentenced-conspiracy-distribute-methamphetamine
United States v. Rodriguez-Flores et al Case No. 5:17-cr-31 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/ocala-illegal-alien-sentenced-17-years-prison-federal-drug-gun-and-immigration-crimes
United States v. Lopez-Lopez Case No. 3:19-cr-114 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/illegal-alien-sentenced-two-years-federal-prison-illegally-re-entering-united-states-0
United States v. Moreno-Hernandez Case No. 6:19-cr-140 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/illegal-alien-sentenced-41-months-federal-prison-unlawfully-re-entering-united-states
United States v. Rodriguez Case No. 6:19-cr-232 (M.D. Fla.)
https://www.justice.gov/usao-mdfl/pr/mexican-national-involved-fatal-hit-and-run-pleads-guilty-illegal-reentry
Michael Louis McCarron Sentenced to Federal Prison for Attempted Enticement and Transfer of Obscene Material to a MinorRead the Press Release
Hagatña, Guam - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MICHAEL LOUIS MCCARRON, age 34, from Washington, was sentenced in the District Court of Guam to 120 months imprisonment. On October 31, 2019, a federal jury found McCarron guilty of Attempted Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b), and Attempted Transfer of Obscene Material to a Minor, in violation of Title 18, United States Code, Section 1470. The Court also ordered five years of supervised release following McCarron’s term of imprisonment and the payment of a mandatory $200.00 special assessment fee. Conditions of supervised release include that McCarron has no contact with minors and to register with the Sex Offender Registry in any jurisdiction in which he lives, works, or attends school.
Between October 31, 2017, and November 30, 2017, McCarron attempted to persuade, induce, and entice a person he believed was a 13-year-old female to engage in sexual intercourse. McCarron committed these acts through the use of the Internet and by attempting to make actual contact with the alleged minor. The investigation determined that he also transferred 12 images and one video, which depicted his genitals, to this same alleged female minor.
U.S. Attorney Anderson states, “Our communities deserve protection from those who seek to prey on children. McCarron engaged in a shocking pattern conduct. Fortunately, no child was actually harmed during the course of the investigation. I applaud the continuing efforts of our federal law enforcement partners and the Marianas Child Exploitation Task Force. The public can expect the aggressive prosecution of child predators under the Department of Justice’s Project Safe Childhood initiative. Unfortunately, victims of child pornography suffer for many years from the trauma of abuse and the repeated distribution of depictions of the crime. I applaud the hard work of our federal law enforcement partners in bringing this defendant to justice.”
Defendants who have been convicted of sexual offenses, under federal and local laws, have a duty to register with the Sex Offender Registry in their jurisdiction and keep their registration current. Sex offenders who travel to Guam and reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school. The Sex Offender Registry was created in order to protect the public, including victims, from further victimization and to keep the public informed of the whereabouts of sex offenders. Guam’s Sex Offender Registry is accessible online at www.guamcourts.org (link is external).
This case was part of the Project Safe Childhood (PSC) Initiative, a nationwide initiative by the U.S. Department of Justice to aggressively prosecute people who engage in the sexual victimization of children, possess or receive child pornography, and fail to register as sex offenders. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The investigation was conducted by Federal Bureau of Investigations, Air Force Office of Special Investigations Detachment 602, and Naval Criminal Investigative Services with support from the Marianas Child Exploitation Task Force (MCETF). The MCETF is a multi-agency federal and local law enforcement task force dedicated to conducting criminal investigations and prosecutions of sexual predators of children. This case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney for the District of Guam and Justin Collins, Special Assistant United States Attorney.
Mexican National Sentenced to 66 Months for Cocaine TraffickingRead the Press Release
LEXINGTON, Ky.- A Mexican National illegally in the U.S., Roberto Bernal Salas, also known as Enrique Navarrette Salas, 43, was sentenced on Tuesday to 66 months in federal prison, by U.S. District Judge Karen Caldwell, for distributing cocaine.
Salas admitted that on July 2, 2019, he agreed to sell two kilograms of cocaine to a cooperating witness. On the same day, after the exchange, Salas admitted that officers found an additional 1.5 kilograms of cocaine, as well as $33,000 in cash.
Salas pled guilty in October 2019.
Under federal law, Salas must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Special Agent in Charge of the Federal Bureau of Investigation-Louisville Field Office; John Condon, Special Agent in Charge of Homeland Security Investigations (HSI); and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was directed by the FBI, HSI, and LPD. The United States was represented by Assistant U.S. Attorney Roger West.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Mexican Drug Trafficker Charged with Drug Trafficking Crime Based on Seizure of over 500 Kilograms of MethamphetamineRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), Keith M. Corlett, Superintendent of the New York State Police (“NYSP”), and Dermot Shea, Police Commissioner of the City of New York (“NYPD”), announced that ANGEL GUADALUPE RAMOS‑RAMIREZ was charged in a criminal complaint in Manhattan federal court with conspiring to import more than 500 kilograms of methamphetamine into the United States. The charge arises from a February 8, 2020, seizure by Mexico’s Secretaría de Marina (the “Mexican Navy”) of more than 500 kilograms of methamphetamine off the coast of San Felipe, Mexico.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Angel Guadalupe Ramos-Ramirez is charged with conspiring to import more than half a ton of methamphetamine into the U.S. Thanks to our partners in this case, those dangerous drugs have been seized before they got here, and Ramos-Ramirez is in custody.”
DEA Special Agent in Charge Raymond P. Donovan said: “Five hundred kilograms of crystal methamphetamine is a significant seizure that will save lives and take over $12 million of drug proceeds out of traffickers’ hands. Methamphetamine is a fierce animal on the loose throughout the nation and a major threat to public health, which is why DEA and our law enforcement partners will not relent pursing drug trafficking organizations until they are brought to justice.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “This case prevented large amounts of methamphetamine, a highly addictive and dangerous narcotic, from harming the public, regardless of where they happen to live. Investigations like these are a great example of what can be accomplished with incredible cooperation among multiple agencies, and HSI is committed to collaboration in order to keep these deadly drugs out of our communities.”
State Police Superintendent Keith M. Corlett said: “This investigation has prevented a large amount of dangerous drugs from reaching our shores, where they would have damaged lives and communities. Our strong law enforcement partnerships are responsible for the success of this case, and I commend all the members and agencies involved for their outstanding work.”
Police Commissioner Dermot Shea said: “This was a significant operation to interdict the kind of illegal drugs that cause so much harm on our streets. I want to thank our detectives and law enforcement partners, here and abroad, for working together against this common threat.”
As alleged in the Complaint unsealed in federal court[1]:
On or about February 7, 2020, the Mexican Navy began tracking a boat traveling northwest through the Gulf of California from Sinaloa, Mexico toward Baja California, Mexico. On February 8, 2020, the Mexican Navy interdicted the vessel off the coast of San Felipe, Mexico, in Baja California, and arrested RAMOS-RAMIREZ. Mexican Navy officers seized approximately 26 plastic packages, each of which contained approximately 20 kilograms of methamphetamine, from the water around the boat. In total, the Mexican Navy recovered more than 500 kilograms of methamphetamine from the water.
* * *
RAMOS-RAMIREZ, 33, of Mexico, is charged with conspiring to import methamphetamine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
Mr. Berman praised the outstanding investigative work of the DEA.
The investigation was conducted by the New York Strike Force in partnership with the DEA Mazatlan Resident Office and law enforcement partners. The New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael K. Krouse, Stephanie Lake, Daniel G. Nessim, Benjamin Woodside Schrier, and Kyle A. Wirshba are in charge of the prosecution.
The charge contained in the Complaint is merely an allegation, 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 and statements and filings in court set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendant charged in the Complaint.
McKees Rocks Felon Sentenced to Prison for Distributing Cocaine and Possessing a Stolen FirearmRead the Press Release
PITTSBURGH –William Davis was sentenced to 46 months in prison for distributing cocaine and possessing a firearm after prior felony convictions, United States Attorney Scott W. Brady announced today.
Davis, age 39, of McKees Rocks, was sentenced by United States District Judge Marilyn J. Horan. Judge Horan also sentenced Davis to serve three years of supervised release following his release from prison.
Davis was sentenced for distributing over 100 grams of cocaine in June and July 2017. He had previously been convicted in 2011 in federal court in Pittsburgh for conspiring to distribute cocaine. Davis was also sentenced for possessing a stolen firearm on January 3, 2019, after having been convicted of several felony crimes, including cocaine trafficking in 2011 and unlawful firearm possession in 2004 and 2005.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Stowe Township Police Department, the McKees Rocks Police Department, the Allegheny County Police Department, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Internal Revenue Service, and the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions and sentence in this case. This case was prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mario Estrada, Former Guatemalan Presidential Candidate, Sentenced to 15 Years in Prison in Connection with Scheme to Import Tons of Cocaine into the United StatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MARIO AMILCAR ESTRADA ORELLANA (“ESTRADA”), was sentenced to 180 months in prison for participating in a conspiracy to import and distribute tons of cocaine to the United States. ESTRADA previously pled guilty to participating in a cocaine importation conspiracy before United States District Judge Jed S. Rakoff, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Mario Estrada conspired to solicit Sinaloa Cartel money to finance a corrupt scheme to get him elected president of Guatemala. Estrada promised to assist the cartel to export tons of cocaine into the U.S., and he attempted to arrange the assassinations of political rivals. Thanks to the DEA, rather than a shot at the presidency in Guatemala, Estrada is headed to prison in the United States.”
According to the allegations in the Indictment to which ESTRADA pled guilty, public court filings, and statements made in court:
While he was running for president of Guatemala in 2018 and 2019, ESTRADA attempted to solicit funding from international drug cartels to support ESTRADA’s presidential campaign (the “Estrada Campaign”). During certain of these negotiations, members of the Estrada Conspiracy, including ESTRADA and his co-defendant, Juan Pablo Gonzalez Mayorga (“Gonzalez”), interacted with purported members and associates of the Sinaloa Cartel – a powerful international drug-trafficking organization based in Mexico – who were, in fact, confidential sources (the “CSes”) acting at the Drug Enforcement Administration’s (“DEA”) direction. At times during the course of his negotiations with the CSes, ESTRADA was polling in the top five of candidates for the Guatemalan presidency.
During the course of their meetings and other communications with the CSes, some of which were video and audio recorded, ESTRADA and Gonzalez requested millions of dollars in drug proceeds from the Sinaloa Cartel to support the Estrada Campaign. In exchange for financial support from the Sinaloa Cartel, ESTRADA and Gonzalez promised that if ESTRADA was elected president of Guatemala, ESTRADA would provide Guatemalan state-sponsored support to the Sinaloa Cartel’s drug-trafficking activities. Among other things, ESTRADA and Gonzalez agreed to provide the Sinaloa Cartel with unfettered access to Guatemalan airports and maritime shipping locations so that the cartel could transport ton quantities of cocaine through Guatemala and ultimately into the United States. ESTRADA also offered to appoint members of the Sinaloa Cartel to high-ranking government positions in Guatemala so that the CSes would be positioned to advance the Sinaloa Cartel’s drug-trafficking activities. ESTRADA also agreed that he would receive a portion of the profits made by the Sinaloa Cartel on the cocaine it transited through Guatemala under his protection. Throughout, ESTRADA believed he was negotiating with representatives from the leadership of the Sinaloa Cartel.
In addition, during the course of his meetings with the CSes, ESTRADA bragged of his other drug cartel connections. More specifically, ESTRADA stated that the Jalisco Nuevo Generación cartel in Jalisco, Mexico, had offered him financial support in connection with his campaign, and also boasted that he was working with a drug trafficker in Guatemala who was supporting his bid for president. Further, at various times during their negotiations with the CSes, ESTRADA and Gonzalez also directed the CSes to hire hitmen to assassinate political rivals and their associates to ensure that ESTRADA was elected president of Guatemala. In particular, ESTRADA and Gonzalez identified specific targets by name and agreed to provide the hitmen with firearms, including AK-47s, to carry out the murders.
* * *
In addition to his prison term, ESTRADA, 59, of Guatemala City, Guatemala, was sentenced to four years of supervised release.
Mr. Berman praised the outstanding efforts of the DEA’s Miami Field Office and its Guatemala Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Mathew Laroche and Jason A. Richman are in charge of the prosecution.
Man from Albuquerque faces federal drug and firearms chargesRead the Press Release
ALBUQUERQUE, N.M – Manuel Bolivar, 21, of Albuquerque, New Mexico appeared in federal court in Albuquerque today for an initial appearance on a criminal complaint charging him possession of a machine gun, possession of methamphetamine and fentanyl with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime.
The FBI Violent Crime Task Force arrested Bolivar at his home in Albuquerque on Feb. 6 while executing a search at the residence with assistance from the Bernalillo County Sheriff’s Office. According to the criminal complaint, Bolivar allegedly possessed more than three pounds of methamphetamine, more than eight pounds of marijuana, 96 fentanyl pills, and 155 packaged strips of suboxone, an opioid medication intended to treat drug addiction. The criminal complaint also alleged Bolivar possessed five handguns, including two stolen pistols, more than $15,000 in cash, a bulletproof vest, and magazines and cartridges of ammunition.
According to the criminal complaint, the FBI also allegedly seized more ammunition and firearms from Bolivar’s home, including a Glock pistol full-auto selector switch, which would allow a user to fire several shots automatically with a single function of the trigger without manually reloading.
Bolivar is in custody pending preliminary and detention hearings scheduled for tomorrow. He faces a minimum of 10 years to life in prison for methamphetamine possession, up to 20 years in prison for fentanyl possession, up to 10 years in prison for possession of a machine gun, and a consecutive sentence of a minimum of five years in prison for possession of a firearm in furtherance of a drug trafficking crime. A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty.
The FBI investigated this case with assistance from the Albuquerque Police Department, Bernalillo County Sheriff’s Office, and New Mexico State Police. Assistant U.S. Attorney Jaymie L. Roybal and Special Assistant U.S. Attorney Thomas A. Outler are prosecuting the case.
Lexington Man Pleads Guilty to Cocaine Trafficking and Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
LEXINGTON, Ky.- A Lexington, Kentucky, man, Eddie Tapia, 26, pleaded guilty in federal court on Tuesday, before U.S. District Court Judge Karen Caldwell, to conspiracy to distribute five kilograms or more of cocaine and possession of a firearm in furtherance of drug trafficking.
Tapia admitted that on June 5, 2019, officers located approximately 9 ounces of cocaine and several firearms in his vehicle. According to his plea agreement, Tapia admitted that in a search of his residence, officers located 4 kilo wrappers with cocaine residue, a money counter, and a kilo press. Tapia further admitted that between December 1, 2018 and June 5, 2019, he agreed with one or more persons to distribute five kilograms or more of cocaine.
Tapia was indicted in December 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Daniel Dodds, Acting Special Agent in Charge, DEA Louisville, jointly announced the guilty plea.
The investigation was conducted by the DEA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Cynthia Rieker.
Tapia is scheduled to be sentenced on June 2, 2020. He faces up to life in prison and a maximum fine of $10 million. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Leader of Fake Cryptocurrency Investment Scheme Charged with Fraud and Money LaunderingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Michael F. McPherson, Special Agent-in-Charge of the Tampa Division of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an indictment charging MICHAEL ACKERMAN with wire fraud and money laundering. ACKERMAN allegedly defrauded over 100 individuals of more than $35 million through his fake cryptocurrency investment scheme. ACKERMAN will be presented Friday in federal court in the Northern District of Ohio.
U.S. Attorney Geoffrey S. Berman said: “Allegedly touting monthly returns of over 15%, Michael Ackerman was able to raise over $35 million in investments for his fake cryptocurrency scheme. He allegedly falsified documents representing to investors that his fund had a balance of over $315 million worth of cryptocurrencies, when in actuality, he had less than half a million dollars. Today’s arrest should remind would-be investors to take extreme caution and thoroughly vet investment opportunities, especially when promised abnormally high rates of return.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “Ackerman is alleged to have defrauded more than 100 investors through a cryptocurrency fraud scheme, doctoring data for appearances to make his investment fund look successful. As a result of this scheme, his victims are left feeling cheated after being swindled out of over $35M collectively. HSI will continue to investigate a plethora of financial fraud cases to ensure that individuals like Ackerman know they will face the consequences for any scheme that victimizes the innocent.”
FBI Special Agent-in-Charge Michael F. McPherson: “This was a classic fraud scheme with a digital twist, using cryptocurrency to take advantage of unsuspecting investors.
The FBI and its partners are committed to protecting investors from scams no matter how the fraudsters try and disguise the scheme.”
According to the allegations in the Complaint and Indictment, both unsealed today[1]:
In or about 2017, MICHAEL ACKERMAN and others started a purported cryptocurrency “investment” fund (the “Fund”) and recruited hundreds of individual investors into the Fund. Under the terms of the Fund, investors were told that they would receive 50% of their trading profits, and that the founders of the Fund, including ACKERMAN, would receive the other 50%. ACKERMAN falsely represented to potential investors that the fund had historical returns of approximately 15% each month. Moreover, during the period alleged in the Complaint and Indictment, ACKERMAN prepared materials falsely purporting to show that the Fund was returning approximately 15% each month, and shared that information with Fund investors. For example, in or about December 2019, ACKERMAN represented to investors and others that the Fund had a balance of over $315 million worth of cryptocurrencies available for trading in a Fund account. Those representations by ACKERMAN included screenshots of trading data doctored by ACKERMAN in order to make it appear that the Fund was operating at that successful level, when its actual trading balance was less than the equivalent of half a million dollars. ACKERMAN, moreover, regularly stole proceeds of this fraud from the Fund, and attempted to conceal those proceeds not only through his false representations to investors, but through the purchase of at least five pieces of real estate, all of which were titled to third parties.
* * *
ACKERMAN, 50, of Sheffield Lake, Ohio, is charged with one count of wire fraud and one count of money laundering, each of which carries a maximum sentence of 20 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 investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force and the Federal Bureau of Investigation in Tampa, and thanked the attorneys and investigators at the Commodity Futures Trading Commission and the Securities and Exchange Commission, whose expertise and diligence were integral to the development of this investigation.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten Fletcher, Jessica Greenwood, and Sheb Swett are in charge of the prosecution.
The charges contained in the Complaint and Indictment 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 Indictment, and the description of the Complaint and Indictment set forth below, constitute only allegations, and every fact described should be treated as an allegation.
Lawrence Ray Charged with Multiple Offenses, Including Extortion, Sex Trafficking, Forced Labor, and Money LaunderingRead 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 Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NPYD”), announced today the unsealing of an indictment charging LAWRENCE RAY, a/k/a “Lawrence Grecco,” with multiple offenses, including extortion, sex trafficking, and forced labor. As alleged in the indictment, RAY used physical and psychological threats and coercion to indoctrinate and exploit a group of college students in Westchester County as well as other victims. RAY extorted approximately $1 million from at least five victims; forced certain victims to perform unpaid labor; and caused, through force, fraud, and coercion, at least one victim to engage in commercial sex acts. He laundered the proceeds of his crimes through an internet domain business. RAY committed these offenses in locations including Westchester County, New York, and New York, New York, as well as Pinehurst, North Carolina.
RAY was arrested this morning in Piscataway, New Jersey. He will be presented this afternoon before United States Magistrate Judge Robert W. Lehrburger. The case is assigned to United States District Judge Lewis J. Liman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, for nearly a decade, Lawrence Ray exploited and abused young women and men emotionally, physically, and sexually for his own financial gain. College is supposed to be a time of self-discovery and new-found independence. But as alleged, Lawrence Ray exploited that vulnerable time in his victims’ lives through a course of conduct that shocks the conscience. Through his manipulative interrogation sessions, Ray made his victims confess to alleged wrongdoing and then compelled them to repay Ray alleged damages owed to him, through payments of hundreds of thousands of dollars, or worse, forced labor and sex trafficking. We hope that today’s charges bring some measure of comfort to the victims and their families. We thank the FBI and the NYPD for their extraordinary work on this case.”
FBI Assistant Director William F. Sweeney Jr. said: “Mr. Ray allegedly used his proximity to his victims to lay the groundwork for psychological conditioning, eventually leading several young adults to become unwitting victims of sexual exploitation, verbal and physical abuse, extortion, forced labor, and an egregious case of prostitution. For the better part of the last decade, we allege there was no limit to the abuse Ray’s victims received, and there is no way of knowing the amount of damage he may have caused them in the years to come. If you or someone you know came into contact with Mr. Ray, we are asking you to get in touch with us at 1-800-CALL-FBI. We want victims to know in the eyes of the FBI, they come first.”
NYPD Commissioner Dermot Shea said: “The NYPD and all of our law enforcement partners share an unwavering commitment to protecting survivors of human trafficking. This crime is among the most heinous, and our job is to ensure that anyone who would seek to profit through the abuse and exploitation of another human is brought to justice.”
According to the allegations in the Indictment[[1]]:
From in or about 2010 through the present, LAWRENCE RAY, a/k/a “Lawrence Grecco,” the defendant, subjected a group of college students and other victims to sexual and psychological manipulation and physical abuse. RAY’s tactics included sleep deprivation, psychological and sexual humiliation, verbal abuse, threats of physical violence, physical violence, threats of criminal legal action, alienating the victims from their families, and exploiting the victims’ mental health vulnerabilities.
Through this manipulation and abuse, RAY extracted false confessions from the victims to causing purported damages to RAY and his family and associates, and then extorted payment for those purported damages through several means. The victims made payments to RAY by draining their parents’ savings, opening credit lines, soliciting contributions from acquaintances, selling real estate ownership, and at RAY’s direction, performing unpaid labor for RAY and earning money through prostitution.
As alleged, through fear, violence, and coercion, RAY forced one female victim to engage in commercial sex acts to pay damages to RAY that she did not actually owe. Beginning when she was just a college student, RAY sexually groomed this victim, and collected sexually explicit photographs and other personal information which he then used to coerce her into continued commercial sex acts. RAY also used physical violence. On one occasion, as alleged, RAY tied his victim to a chair, placed a plastic bag over her head, and nearly suffocated her. In total, RAY collected over $500,000 in forced prostitution proceeds from this victim.
In addition, as alleged, RAY forced three female victims to perform unpaid labor on a family member’s property in North Carolina. Through a course of psychological and physical abuse, RAY forced these three victims to do extensive physical labor, sometimes in the middle of the night, for no pay.
Associates of RAY helped RAY collect and transfer the criminal proceeds, which RAY shared with at least two associates. RAY then laundered his criminal proceeds through an internet domain business.
* * *
RAY, 60, of Piscataway, New Jersey, is charged with the following offenses: conspiracy to commit extortion, which carries a maximum sentence of 20 years in prison; extortion, which carries a maximum sentence of 20 years in prison; sex trafficking, which carries a maximum sentence of life in prison, and a mandatory minimum sentence of 15 years in prison; obtaining forced labor, which carries a maximum sentence of 20 years in prison; forced labor trafficking, which carries a maximum sentence of 20 years in prison; conspiracy to obtain forced labor, which carries a maximum sentence of 20 years in prison; two counts of violating the Travel Act, each of which carries a maximum sentence of five years in prison; and money laundering, which carries a maximum sentence of 20 years in prison. The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
If you believe you are a victim of Lawrence Ray, please contact the FBI at 1-800-CALL FBI, and reference this case.
Mr. Berman praised the outstanding investigative work of the FBI and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Danielle Sassoon, Mollie Bracewell, and Lindsey Keenan are in charge of the prosecution.
The charges in the Indictment 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 Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Lauderdale County Man Sentenced to 9 Years for Illegally Possessing Firearms During a Drug Trafficking CrimeRead the Press Release
Memphis, TN – James Deshawn Whitelow, 24, has been sentenced to 108 months in federal prison for being a felon in possession of a firearm, possession of a firearm during a drug trafficking crime, and possession of a controlled substance with intent to distribute. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 31, 2019, Whitelow, who had a warrant for his arrest for attempted murder, was located at a residence in Ripley, Tennessee. The resident allowed law enforcement to enter the home and search the premises. Whitelow was found near a common-area bathroom.
Officers recovered two handguns, a stolen Walther PPS and a Glock 23 with a large capacity magazine. 252 grams of marijuana packaged for resale were found in the toilet tank of the common bathroom. A safe was found in a bedroom with a 50 round drum magazine inside.
The witnesses said Whitelow ran into the bathroom prior to law enforcement entering the home. They further stated Whitelow is known to have guns and to be involved in shootings.
On February 6, 2020, U.S. District Court Judge Jon P. McCalla sentenced Whitelow to 108 months in federal prison followed by 3 years supervised release.
U.S. Attorney D, Michael Dunavant said, "This felon was clearly a dangerous offender, and was wanted for attempted murder when he was found in possession of firearms in furtherance of drug trafficking. Mr. Whitelow has sowed lawlessness by committing violent and drug crimes, and he will now reap the much deserved consequences of his actions. This sentence removing him from the community for 9 years will make Lauderdale County and West Tennessee a safer place."
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Ripley Police Department and the U.S. Marshals Service investigated this case.
Special Assistant Sean G. Hord prosecuted this case on behalf of the government. SAUSA Hord is currently assigned from the 25th Judicial District Attorney’s Office.
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KC Man Pleads Guilty to Illegal Firearm After Being Wounded in ShootoutRead the Press Release
KANSAS CITY, Mo. – A Grandview, Missouri, man who was wounded in a shoot-out on Troost Avenue pleaded guilty in federal court today to illegally possessing a firearm.
Malliek D. Haynes, 26, pleaded guilty before U.S. Chief District Judge Beth Phillips to being a felon in possession of a firearm.
By pleading guilty today, Haynes admitted that he possessed a Smith and Wesson .40-caliber pistol when he engaged in a shootout on Troost Avenue on April 2, 2017.
The incident began with a verbal altercation between Haynes and a group of people at the Troost Market, 8001 Troost Avenue in Kansas City. Haynes loudly proclaimed that he was “a gangster” and lifted up his shirt in a threatening manner, exposing the firearm in his waistband. After the group left the store, Haynes continued to make loud comments to other patrons and again lifted his shirt to show that he was carrying the firearm.
When Haynes left the store and walked to his car, he again engaged in a verbal altercation with the same group of individuals from before, who were now in their vehicles across the gas station parking lot. They began to shoot at Haynes with a rifle from their vehicle. He immediately pulled out his firearm and began to wildly return fire, falling to the ground. During the shootout, Haynes was shot in the upper thigh.
The group drove away; Haynes got into the passenger side of his vehicle and a female companion drove him to the hospital. Haynes was arrested at the hospital and officers seized the firearm from his vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Haynes has prior felony convictions for robbery and unlawful use of a weapon.
Under federal statutes, Haynes is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
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.Justice Department Welcomes Decision in New York v. Deutsche Telecom, the T-Mobile/Sprint MergerRead the Press Release
Following the trial in New York v. Deutsche Telekom, Judge Victor Marrero of the U.S. District Court for the Southern District of New York has refused a request from a minority of state Attorneys General to block T-Mobile’s proposed acquisition of Sprint. In his opinion, Judge Marrero cited the Justice Department’s settlement as a key factor, noting that the Justice Department’s settlement made Dish “well poised to become a fourth MNO in the market, and its extensive preparations and regulatory remedies indicate that it can sufficiently replace Sprint’s competitive impact.”
“I am pleased and agree with Judge Marrero’s decision to deny the injunction, and particularly his conclusion that the department’s divestiture and remedy package resolves the competitive concerns in this case,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This opinion is an important next step toward strengthening competition for high-quality 5G networks that will benefit American consumers nationwide.”
“I am also grateful that the judge recognized the expertise of the Department of Justice and the Federal Communications Commission (FCC) in his evaluation of the transaction. As I have noted before, should a minority group of states, or even one, be able to undo the nationwide relief secured by the federal government, it would wreak havoc on parties’ ability to merge, on the government’s ability to settle cases, and cause real uncertainty in the market for procompetitive mergers and acquisitions.”
The department’s Antitrust Division filed a civil antitrust lawsuit on July 26, 2019, in the U.S. District Court for the District of Columbia along with a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns. The Attorneys General for the states of Arkansas, Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma, South Dakota, and Texas have each joined in this proposed settlement. That proposed settlement, along with the United States’ motion to enter final judgment, is pending before Judge Kelly in the U.S. District Court for the District of Columbia.
The FCC also approved the transaction after a thorough examination, with certain commitments as a condition of approval.
Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile, and Sprint prepaid, to Dish Network Corp., a Colorado-based satellite television provider. The proposed settlement also provides for a divestiture of substantial spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available for divestiture to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish transitions the business and builds out its 5G network.
T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington. In 2018, T-Mobile posted revenues of more than $43 billion. Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.
Sprint Corporation is a Delaware corporation headquartered in Overland Park, Kansas. In 2018, its posted revenue was over $32 billion. Sprint is controlled by SoftBank Group Corp., a Japanese corporation headquartered in Tokyo, Japan.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Judge in Del Rio Sentences Mexican National to 30 Years in Federal Prison for Smuggling SchemesRead the Press Release
A judge in Del Rio sentenced a Mexican national to 30 years in federal prison for his role in various smuggling schemes involving drugs, firearms and humans out of Piedras Negras, Mexico, announced U.S. Attorney John Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
During yesterday’s sentencing hearing, U.S. District Judge Alia Moses ordered that Pedro Gama-Alvarez (aka “Guero,” “El Lobo”), a 40–year-old resident of Mexico City, Mexico, be immediately placed in deportation proceedings and under non-reporting supervised release for a period of five years after completing his term.
On February 27, 2019, Gama-Alvarez pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana. By pleading guilty, Gama-Alvarez admitted that from February 2011 to September 2012, he was responsible for the smuggling of more than 16 kilograms of cocaine and over 2,600 kilograms of marijuana into the U.S.
“This sentence represents the seriousness of these crimes and serves as an appropriate punishment for Pedro Gama Alvarez for his role in a major drug trafficking organization that had a damaging impact in our communities,” said HSI San Antonio Special Agent in Charge Folden. “HSI will continue to utilize its broad authorities to dismantle criminal organizations who blatantly ignore the laws of this nation.”
Gama-Alvarez has remained in federal custody since authorities arrested him on September 1, 2018, near Eagle Pass, Texas, nearly six years after a federal grand jury in Del Rio indicted him.
HSI agents conducted this investigation. Assistant U.S. Attorneys Sarah Spears and Amy Hail prosecuted this case on behalf of the government.
Judge Sentences Johnstown Crack Dealer to 10 Years in Prison for Drug Charge and 18 Months More for Supervised Release ViolationRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. has been sentenced in federal court in Johnstown to 120 months in prison and eight years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Leon E. Szewczyk, 36.
According to information presented to the court, on April 6, 2018, Szewczyk possessed with intent to distribute more than 28 grams of cocaine base, commonly known as "crack."
Judge Gibson also sentenced Szewczyk to 18 months imprisonment on a supervised release violation with regard to a 2011 case in which Szewczyk was sentenced to 72 months imprisonment and five years’ supervised release for violating federal narcotics laws.
Assistant United States AttorneyMaureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Szewczyk.
Jennifer Dwyer Sentenced to 51 Months for Embezzling over $2 Million from Northeast Kingdom EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jennifer Dwyer, 49, of St. Johnsbury, Vermont, was sentenced today in federal court on one count of wire fraud arising out of the embezzlement of approximately $2.2 million over a ten-year period from her Lyndonville employer, Northeast Agricultural Sales, Inc. (“NEAG”). U.S. District Judge Christina Reiss sentenced Dwyer to 51 months in prison, to be followed by three years of supervised release. Judge Reiss also ordered that Dwyer pay restitution in the amount of $2,221,079.47.
According to court records, NEAG is a family-owned and operated business established in 1987 with locations in Lyndonville, Vermont and Detroit, Maine. Dwyer was hired at NEAG in 1998, eventually serving as NEAG’s bookkeeper for more than ten years. As bookkeeper, her responsibilities included customer billing, handling company accounts, and managing NEAG’s payroll system. Between 2007 and 2017, Dwyer embezzled approximately $2,221,079.47 from NEAG through unauthorized electronic transfers of funds from NEAG’s payroll account to her personal checking account. Dwyer used the misappropriated funds on on-line gambling and to pay personal debts and expenses.
As part of her plea agreement with the government, Dwyer agreed to apply several assets (or her share of those assets) toward restitution. These assets included a 2013 Cedarcreek Silverback Camper, a 2004 Chevrolet Silverado, a 2003 Chevrolet Commercial Silverado, and a 2013 Yanmar tractor. The government also forfeited a 2015 GMC Sierra truck. Under Dwyer’s agreement with the government, she further paid the value of her interest in her St. Johnsbury residence—$57,387.75—toward restitution. Dwyer also voluntarily turned over the proceeds of the sale of a Sea Doo watercraft. In total, these assets resulted in $84,621.70 for victim restitution. Before she reports to the Bureau of Prisons on March 24, 2020, Dwyer is expected to pay an additional several thousand dollars towards restitution derived from the liquidation of a life insurance policy and investment account.
United States Attorney Christina E. Nolan noted: “Jennifer Dwyer repeatedly stole thousands of dollars at a time over ten years as a trusted employee of Northeast Agricultural Sales. The sentence today reflects the devastating impact her decade-long $2 million embezzlement had on this family-owned Northeast Kingdom business. The U.S. Attorney’s Office remains committed to the prosecution of significant frauds that impact Vermont businesses and families.”
“Today’s sentence represents the FBI’s commitment to investigating fraud cases,” said Anna Holden, Supervisory Senior Resident Agent in Charge of the FBI Albany Field Office’s Burlington Resident Agency. “Jennifer Dwyer broke the law and betrayed the trust of her employer, and now she will face the consequences of her actions. The FBI will continue to investigate those who commit fraud for personal gain to ensure that they are brought to justice.”
The Federal Bureau of Investigation conducted the investigation in this matter, with assistance from the Lyndonville Police Department.
This prosecution was handled by First Assistant U.S. Attorney Kevin J. Doyle. Jennifer Dwyer is represented by Natasha Sen, Esq. of Middlebury.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Inmate Sentenced to More Prison Time for Possessing a ShankRead the Press Release
JOHNSTOWN, Pa. – An inmate at Moshannon Valley Correctional Center in Philipsburg, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to two months in prison, United States Attorney Scott W. Brady announced today.
Zhivrago McBride, 38, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on August 17, 2018, McBride possessed a seven-inch sharpened piece of metal attached to an ink pen.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Moshannon Valley Correctional Center, Special Investigative Staff, for the investigation leading to the successful prosecution of McBride.