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31 January 2020
Two Rivers Resident Sentenced to 15 Years of Imprisonment for Methamphetamine DistributionRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 30, 2020, Clint J. Blaha (age: 37), of Two Rivers, Wisconsin, was sentenced to 15 years’ incarceration to be followed by ten years of supervised release for possessing with the intent to distribute over 50 grams of actual methamphetamine, in violation of Title 21, United States Code, Section 841(a) and (b)(1)(A),.
According to court documents, in May 2019, the Manitowoc County MEG Unit began investigating Blaha for suspected distribution of methamphetamine. They monitored interstate wire transfers and surveilled Blaha’s travel to known drug distribution areas. In July 2019, they initiated a traffic stop for the purpose of arresting Blaha. During that traffic stop they recovered 77.5 grams of methamphetamine. They obtained a search warrant for Blaha’s residence where they recovered an additional 1.25 pounds of actual (“crystal”) methamphetamine packaged for distribution.
In pronouncing sentence, Senior District Judge William C. Griesbach noted the serious nature of Blaha’s offense and the need to send a strong message of deterrence to Blaha and anyone else who might attempt to distribute drugs in Northeast Wisconsin.
The case was investigated by the Manitowoc County Metropolitan Enforcement Group with the assistance of the Manitowoc County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Ticket Broker and Two Former Chicago White Sox Employees Indicted in Alleged Scheme to Fraudulently Sell Game TicketsRead the Press Release
CHICAGO — Two former employees of the Chicago White Sox schemed with a ticket broker to fraudulently sell thousands of tickets to White Sox baseball games, according to an indictment returned in federal court in Chicago.
While working as ticket sellers for the White Sox, JAMES COSTELLO and WILLIAM O’NEIL fraudulently generated complimentary and discount game tickets without the team’s authorization and gave them to the broker, BRUCE LEE, in exchange for cash payments, the 14-count indictment states. Lee, who owned the Chicago-based ticket brokerage Great Tickets, then sold the tickets on the online marketplace StubHub at prices below face value, the indictment states.
During the 2016 to 2019 baseball seasons, Lee earned approximately $868,369 by selling approximately 34,876 tickets that he fraudulently obtained from Costello and O’Neil, the charges allege. As a result of the scheme, the White Sox suffered a loss of approximately $1 million, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Lee, 34, of Chicago, with eleven counts of wire fraud and two counts of money laundering, while Costello, 66, of New Lenox, is charged with one count of wire fraud, and O’Neil, 51, of New Lenox, is charged with one count of making a false statement to the FBI. Arraignments have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Matthew Schneider.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison, while each money laundering count carries a maximum sentence of ten years. The false statement charge is punishable by up to five years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
South Bay Man Charged in Methamphetamine Distribution SchemeRead the Press Release
SAN FRANCISCO – Jesus Moises Rochin-Huerta is charged in a criminal complaint with possession with intent to distribute methamphetamine, announced United States Attorney David L. Anderson, Special Agent in Charge, Homeland Security Investigations Tatum King and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux.
An affidavit filed in the case by an agent of the Homeland Security Investigations (HSI) alleges that Rochin-Huerta was caught with the drugs yesterday while driving on Highway 880 in San Jose. According to the affidavit, Rochin-Huerta’s car had no front license plate and tinted front windows when a California Highway Patrol (CHP) officer pulled him over for the traffic violations. The CHP officer allegedly observed that Rochin-Huerta was acting nervously and was in possession of two cell phones and so decided to conduct an open-air sniff of the defendant’s car with a K-9. After the dog gave a positive alert, the CHP officer found two black duffle bags containing drugs in the trunk of the car. Specifically, in the black bags were 58 packages of a white crystalline substance that was further wrapped in plastic, vacuum-sealed bags. The white substance tested positive for methamphetamine. Rochin-Huerta was arrested as a result of the traffic stop.
According to the affidavit, the combined weight of the substance in the trunk of Rochin-Huerta’s car amounts to approximately 66.4 pounds having an approximate wholesale value of between $72, 000 and $81,000.
Rochin-Huerta is charged with possession with intent to distribute and distribution of 500 grams or more of a mixture and substance containing methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii).
Rochin-Huerta will make his initial federal court appearance at 1:30 p.m., on January 31, 2020, before U.S. Magistrate Judge Nathanael M. Cousins.
If convicted, Rochin-Huerta faces a minimum statutory penalty of ten years imprisonment and a maximum statutory penalty of up to life in prison. A term of supervised release, fines, forfeitures, and restitution also may be ordered, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The complaint contains allegations only and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Sarah Griswold is prosecuting the case with the assistance of Jessica Leung. The prosecution is the result of an investigation by HSI with assistance from the DEA, Southern Alameda County Major Crimes Task Force, and California Highway Patrol.
Sextortionist convicted of child exploitation crimesRead the Press Release
ATLANTA - Benjamin Jenkins has been convicted by a jury of multiple counts of producing and distributing child pornography. Jenkins lured numerous young girls into sending him sexually explicit photos and videos, and then retaliated against the girls who refused to send him more.
“Jenkins is a predator who used various social media sites to lure and coerce young girls into sending him child pornography,” said U.S. Attorney Byung J. “BJay” Pak. “He terrorized his young victims by threatening to post their photographs online if they did not comply, and he frequently made good on these threats. A jury has now held Jenkins accountable for his horrific crimes, and he faces a lengthy prison sentence.”
“Sextortion is a growing threat that traps our youth in a horrific situation they aren’t able to get out of. The removal of Jenkins from our community makes us all safer,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “With studies showing that over half of children over 11 years old have a cellphone, I urge parents to educate themselves and their kids about the dangers that exist on their phones. Parents need to know and monitor their children’s social media usage and ensure their children are only ‘friending’ people they personally know. Unfortunately, once the child decides to hit send on a photograph, there is no way to pull it back or remove it from the internet. HSI Atlanta will continue to prioritize our investigations to protect our youth from these online predators.”
According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in 2015, Jenkins targeted girls between the ages of 13 and 16 years. To lure the girls, he used different aliases and profiles to trick the girls into sending him sexually suggestive photos of themselves. After a girl sent him a photo, Jenkins coerced the child into sending him more photos and videos by threatening to post the photos online or to send the images to the girl’s family and friends. Jenkins instructed the girls on what body parts to show, what poses to make, and what objects to insert into their bodies. Jenkins further humiliated his victims by forcing them to send him videos showing them drinking their own urine or licking toilets. He also humiliated many of his victims by making them watch him masturbate.
Once a girl blocked Jenkins online, he sent her explicit photos to her parents and friends with demands that the girl resume communications with him. Jenkins also posted his victim’s nude photos and contact information online with messages instructing men on how to contact the girls directly for more photos or for sex.
Benjamin Jenkins, a/k/a “Rei,” a/k/a “Reithe8th,” a/k/a “Dani Domo, 25, of Mableton, Georgia, was charged with nine counts of producing child pornography and three counts of distributing child pornography. Nine of his victims testified at trial. Jenkins was convicted of all of these charges by a federal jury on January 16, 2020.
Sentencing is scheduled for April 2, 2020, at 10:00 a.m. before U.S. District Judge Michael L. Brown.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating this case.
Assistant U.S. Attorneys Paul R. Jones and L. Skye Davis, Coordinator of the U.S. Attorney’s Office’s Project Safe Childhood and Anti-Human Trafficking programs, are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Saint Louis City Man Sentenced to 114 Months in Prison for Robbing Maplewood Steak and Shake at GunpointRead the Press Release
St. Louis, MO –Frank Brothers, 30, of St. Louis, MO, was sentenced to 114 months in prison for his role in robbing the Steak and Shake in Maplewood and possessing a firearm in furtherance of a crime of violence. Brothers appeared in federal court today before United States District Judge Rodney W. Sippel.
According to court documents, on October 24, 2018, Brothers entered the Steak and Shake located in Maplewood. Brothers pointed a firearm at the manger, forced her to the floor and then demanded she open the safe. The manager handed Brothers the U.S. currency in the safe. Brothers then fled out the rear door to his vehicle.
“This conviction is another shining example of the fantastic working relationship between municipalities like Maplewood, the outstanding men and women of the FBI, and U.S. Attorney’s Office”, said Lieutenant John LeClerc, Maplewood Police Department.
The Maplewood Police Department and the Federal Bureau of Investigation are investigating this case. Assistant U.S. Attorney Tom Mehan is handling the case.
SWGA Meth Dealer Sentenced to Ten Years in PrisonRead the Press Release
ALBANY, Ga. – An admitted methamphetamine dealer, who was arrested with pure “ice” methamphetamine in Lee County, Georgia, was sentenced to ten years in prison, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Willie Ware, 22, of Albany, was sentenced by U.S. District Judge Louis Sands on Thursday, January 30, 2020 to serve 121 months in prison and five years supervised release, after pleading guilty to one count of possession with intent to distribute methamphetamine. There is no parole in the federal system.
Mr. Ware admitted that he was arrested by Lee County Sheriff’s deputies in possession of 241.54 grams of 100% pure d-methamphetamine hydrochloride. Mr. Ware was taken into custody on November 24, 2017, during a routine traffic stop in the area of Joiner Drive and North Doublegate Drive. Deputies spotted a jar of marijuana in plain view and a handgun. During a legal search of the car, the methamphetamine was discovered. Mr. Ware told investigators that he had already sold one ounce of methamphetamine prior to his arrest.
“Methamphetamine is a poison in our society, killing users and ruining many lives. Its ripple effect is far reaching, and we will continue to prosecute individuals who choose to deal this dangerous drug in our communities,” said Charlie Peeler, the U.S. Attorney. “I want to thank the Lee County Sheriff’s Department and the DEA for their work in this case.”
“It is a great pleasure to work these types of drug cases and remove both the drugs and the dealers out of our society. Methamphetamine is a hideous drug that makes users paranoid, violent and aggressive, which I feel makes them a serious threat to society and law enforcement. Meth users and sellers are a threat to our children and families, therefore I intend to continue to investigate and arrest people involved in illegal drugs,” said Lee County Sheriff Reggie Rachals.
The case was investigated by the Lee County Sheriff’s Office and the DEA. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Rural King Robbers Plead Guilty in Federal CourtRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces that three men charged with the 2019 robberies of two central Florida Rural King locations—Carlos Eduardo Hampton, Jr. (22, Tampa), Quintin Eugene Augustus (18, Cocoa), and Jonathan Arthur Floyd (21, Cocoa) have each entered guilty pleas to two counts of interference with commerce by robbery. Hampton also pleaded guilty to possessing a firearm as a convicted felon. Each faces up to 20 years in prison on each of the robbery counts; Hampton also faces up to 10 years’ imprisonment for the firearm offense.
The individuals had been indicted on October 2, 2019.
According to the plea agreements, on July 26 and August 16, 2019, Hampton, Augustus, and Floyd used a sledgehammer to break into two Rural King locations in Ocala and Zephyrhills. The men then used the sledgehammer to smash open display cases and steal a total of 28 firearms. They were apprehended by the Zephyrhills Police Department after the second robbery. Hampton, a convicted felon, is prohibited from possessing firearms or ammunition under federal law.
A fourth individual, Christopher Hooker (24, Orlando), has also been charged in this case. He is currently awaiting trial.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ocala Police Department, and the Zephyrhills Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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 Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Rochester Man Arrested, Charged with Production of Child PornographyRead 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 Jeremy Hernandez, 30, of Rochester, NY, was arrested and charged by criminal complaint with producing child pornography. The charge carries a minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi who is handling the case, stated that according to the complaint, the National Center for Missing and Exploited Children (NCMEC) received information from an electronic service provider that a user had uploaded several images of child pornography to a blog on the provider’s platform. As a result of that information, the New York State Police identified and located the source of the child pornography at an address in Rochester.
The complaint further states that on October 24, 2019, a search warrant was executed at the residence. Hernandez was present at the time. Investigators seized several digital devices, including two cellular phones that belonged to the defendant. A forensic analysis recovered images and videos on the phones, which depicted Hernandez sexually abusing a minor under 13 years old on multiple occasions between 2017 and 2019. The child has since been identified and located.
The defendant made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and is being held pending a detention hearing on February 13, 2020, 2:30 p.m.
The criminal complaint is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton; Monroe County Child Protective Services, under the direction of Director Kathy Cardilli; the Bivona Child Advocacy Center, under the direction of Executive Director Deb Rosen; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Repeat drug distributor sentenced to 6+ years in prison last week, rearrested in midst of drug deal involving fentanyl pillsRead the Press Release
Seattle – A Snohomish, Washington, man who was sentenced just last week to 78 months in prison for dealing fentanyl-laced pills and cocaine is back behind bars tonight after being arrested on his way to a drug deal in Whatcom County, announced U.S. Attorney Brian T. Moran. MICHAEL JOHN SCOTT, who tells his drug contacts to call him the ‘Italian Stallion,’ was released on bond following his January 24, 2020, sentencing hearing. While waiting to get his prison assignment, SCOTT continued to set up drug deals for fentanyl-laced pills. SCOTT is now charged with possession of controlled substances with intent to distribute and being a felon in possession of a firearm.
“Not even a federal prison sentence could deter this defendant from the lure of cash generated by his drug dealing,” said U.S. Attorney Brian T. Moran. “He has repeatedly lived a lavish lifestyle funded by drug money despite a state drug trafficking conviction in 2013, and a federal conviction in 2019. With this third arrest for trafficking dangerous fentanyl-laced pills, his lifestyle will be limited to a federal prison cell for quite some time.”
According to records filed in the case, SCOTT pleaded guilty in June 2019 for his role in U.S. v Hernandez et al, a 32-defendant drug trafficking case that was unsealed in December 2018. SCOTT was a high-volume redistributor of fentanyl-laced imitation oxycodone pills and cocaine. SCOTT delivered hundreds of thousands of dollars in cash to his cartel suppliers for the drugs–sometimes as much as $150,000 at a time. When SCOTT’s home was searched in December 2018, law enforcement recovered illegal drugs, more than $40,000 in cash, and other tools of the drug trade.
Even as SCOTT was awaiting sentencing, he began communicating with a confidential source, offering fentanyl pills for sale. While under law enforcement supervision, the source agreed to meet and purchase the pills. Law enforcement executed a traffic stop on SCOTT’s car as he traveled up I-5 to complete the drug deal. Investigators found 9 baggies of what appear to be fake oxycodone pills, with approximately 100 pills in each bag, heroin, and cash. When they served a search warrant on SCOTT’s home, they found more drugs, more cash, and a loaded firearm in his bedside table. According to law enforcement, the firearm was reported as stolen in King County in early November 2019.
As presently charged in the criminal complaint, distribution of controlled substances is punishable by up to 20 years in prison, and being a felon in possession of a firearm is punishable by up to 10 years in prison.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Whatcom County Sheriff’s Office and the Drug Enforcement Administration (DEA).
The case is being prosecuted by Assistant United States Attorneys Karyn Johnson and Marci Ellsworth.
Purchaser of Department of Energy Loan to Pay $29 Million to Settle Alleged Bidding FraudRead the Press Release
WASHINGTON – Hybrid Tech Holdings, LLC, Hybrid Technology, LLC, and Ace Strength International, LTD, have agreed to resolve allegations that they violated the False Claims Act by colluding to rig the bidding of an auction to purchase the United States Department of Energy’s non-performing loan to Fisker Automotive, Inc. and Fisker Automotive Holdings, Inc., the Department of Justice announced today.
“The Department is committed to ensuring a level playing field for those who seek to do business with the government,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “As today’s settlement demonstrates, the Department will take appropriate action where it determines that this principle has been violated.”
The government alleged that the defendants exerted pressure on the two other competing bidders to suppress their bids during the live auction, thereby depriving the Department of Energy of a fair bidding process and reducing the amount ultimately recovered in the auction. As a result, the defendants were able to acquire the non-performing loan secured by the assets of Fisker Automotive for far less than the fair market value of the loan.
“This settlement reflects our Office’s commitment to hold accountable those who exploit the system for their own personal gain,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Companies working with the federal government must perform their obligations with transparency and fairness and we will continue to work with our law enforcement partners to pursue and penalize those who violate the False Claims Act.”
The settlements resolve allegations originally filed in a lawsuit by William R. Baldiga and the FAH Liquidating Trust, the successor to the Official Committee of Unsecured Creditors of Fisker Automotive Holdings, Inc. The suit was filed in federal court in the District of Columbia pursuant to the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Mr. Baldiga’s and the Trust’s share of the settlement will be $5,220,000.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the District of Columbia, and the United States Department of Energy Office of General Counsel and Office of Inspector General.
The case is captioned United States ex rel. Baldiga et al v. Hybrid Tech Holdings, LLC et al, No. 15-00019 (D.D.C). The claims resolved by the settlements are allegations only.
This case was investigated by Assistant U.S. Attorneys John Truong and Heather Graham-Oliver from the U.S. Attorney’s Office for the District of Columbia and Trial Attorney John W. Black with the Department of Justice’s Commercial Litigation Branch.
Purchaser of Department of Energy Loan to Pay $29 Million to Settle Alleged Bidding FraudRead the Press Release
Hybrid Tech Holdings LLC, Hybrid Technology LLC, and Ace Strength International LTD, have agreed to resolve allegations that they violated the False Claims Act by colluding to rig the bidding of an auction to purchase the United States Department of Energy’s non-performing loan to Fisker Automotive Inc. and Fisker Automotive Holdings Inc, the Department of Justice announced today.
“The department is committed to ensuring a level playing field for those who seek to do business with the government,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “As today’s settlement demonstrates, the department will take appropriate action where it determines that this principle has been violated.”
The government alleged that the defendants exerted pressure on the two other competing bidders to suppress their bids during the live auction, thereby depriving the Department of Energy of a fair bidding process and reducing the amount ultimately recovered in the auction. As a result, the defendants were able to acquire the non-performing loan secured by the assets of Fisker Automotive for far less than the fair market value of the loan.
“This settlement reflects our Office’s commitment to hold accountable those who exploit the system for their own personal gain,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Companies working with the federal government must perform their obligations with transparency and fairness and we will continue to work with our law enforcement partners to pursue and penalize those who violate the False Claims Act.”
The settlements resolve allegations originally filed in a lawsuit by William R. Baldiga and the FAH Liquidating Trust, the successor to the Official Committee of Unsecured Creditors of Fisker Automotive Holdings Inc. The suit was filed in federal court in the District of Columbia pursuant to the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Mr. Baldiga’s and the Trust’s share of the settlement will be $5,220,000.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the District of Columbia, and the United States Department of Energy Office of General Counsel and Office of Inspector General.
The case is captioned United States ex rel. Baldiga et al v. Hybrid Tech Holdings, LLC et al, No. 15-00019 (D.D.C). The claims resolved by the settlements are allegations only.
This case was investigated by Assistant U.S. Attorneys John Truong and Heather Graham-Oliver from the U.S. Attorney’s Office for the District of Columbia and Trial Attorney John W. Black with the Department of Justice’s Commercial Litigation Branch.
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.
Project Guardian: Three Felons Sentenced to Federal Prison for Gun PossessionRead the Press Release
CHARLESTON, W.Va. – Three felons were sentenced to federal prison for gun possession, announced United States Attorney Mike Stuart.
Shannon Brown, 44, of Charleston, received an enhanced sentence of 46 months in prison for being a felon in possession of a firearm. Brown previously admitted that on June 6, 2019, he possessed a Smith and Wesson, .40 caliber handgun, in and affecting interstate commerce. Brown ran from the police and threw the gun and a small amount of cocaine during the chase, both of which were recovered by the police. The Court increased Brown’s sentence because he possessed both the firearm and cocaine. Brown has two previous felony drug convictions from 1998 and 2004 in the Circuit Court of Kanawha County, West Virginia, and was aware that he was prohibited from possessing a firearm. The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Steven I. Loew handled the prosecution.
Joshua Adam Dowler, 37, of Wood County, was sentenced to 36 months in prison for possession of a firearm by a convicted felon. Dowler previously admitted that on April 12, 2018, he possessed a Taurus 9mm pistol while target shooting at a residence on Cain Hill Road. He was prohibited from possessing the firearm due to having been convicted of burglary in 2007. He was on parole at the time he possessed the firearm. The United States Marshals Service, the Wood County Sheriff’s Department, the West Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua Hanks handled the prosecution.
Dennis Leroy Burns II, 43, of Boone County, was sentenced to 15 months in prison. He previously pled guilty to being a felon in possession of a firearm. Burns admitted that on November 12, 2018, he was walking along Mud River Road in Boone County when a trooper with the West Virginia State Police encountered him. The trooper investigated and ultimately located a loaded, High-Point, Model C9, 9mm pistol in a ditch just behind Burns, which Burns had possessed. Burns was prohibited from possessing the firearm due to a 2007 felony conviction in Forsyth County Superior Court in Winston Salem, North Carolina, for attempting to obtain money under false pretenses. The West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Ryan A. Keefe and Greg McVey handled the prosecution.
This cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the Project Guardian partners listed above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The case against Shannon Brown was prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Pennsylvania physician sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dr. Parth Bharill, a Pittsburgh and Morgantown physician, was sentenced today to five years probation, with the first six months on home confinement, for a drug charge, U.S. Attorney Bill Powell announced.
Bharill, age 61, of Pittsburgh, Pennsylvania, pled guilty to one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice” in September 2019. Bharill admitted to working with the Redirections Treatment Advocates, LLC, of Morgantown, West Virginia, to write illegitimate prescriptions for suboxone. The crime occurred from November 2014 to January 2018 in Monongalia County, West Virginia.
Bharill was ordered to pay a $50,000 fine, as well as $23,076.95 in restitution. The judge also imposed an order of forfeiture of $12,312.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, and the Inspector General at the U.S Department of Health and Human Services investigated.
U.S. District Judge Thomas S. Kleeh presided.
Palmyra Man Pleads Guilty to Production of Child PornographyRead 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 David Gfeller, 35, of Palmyra, NY, pleaded guilty to producing child pornography, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a minimum penalty of 15 years in prison, a maximum of 30 years, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that on February 12, 2019, Homeland Security Investigations in Buffalo received information, from an international law enforcement network, that child pornography had been recovered by authorities in various countries, including Germany, Belgium, Italy, Portugal, and France, which had possibly originated in Western New York. The child pornography depicted a prepubescent minor.
With assistance from the Royal Canadian Mounted Police, Homeland Security Special Agents used data associated with the images to locate the residence where the images were produced. The victim was located. On March 1, 2019, investigators executed a search warrant at the defendant’s residence and arrested Gfeller for producing the child pornography.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, with assistance from the Royal Canadian Mounted Police and the New York State Police.
Sentencing is scheduled for May 4, 2020, at 9:30 a.m. before Judge Geraci.
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Okmulgee Man Sentenced to 54 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Sterling Ross, IV, age 26, was sentenced to 54 months’ imprisonment, and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The Indictment alleged that on or about February 3, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Glock GMBH, Model 30, .45 ACP caliber semi-automatic pistol which had been shipped and transported in interstate and foreign commerce.
United States Attorney Brian J. Kuester said, “The Department of Justice is committed to working with law enforcement agencies to make the communities they serve safer. We are most effective at having a local impact on violent crime when federal law enforcement agencies have working relationships with the local officers because those officers have a front row seat to see the challenges their communities are facing. This case is a result of those kinds of working relationships.”
The charges arose from an investigation by the Okmulgee Police Department, the Federal Bureau of Investigation Safe Trails Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Oklahoma Safe Trails Task Force is comprised of the FBI and nine partner agencies including: Muscogee Creek Nation Lighthorse Police, Okmulgee Police Department, Okmulgee Sheriff’s Office, Oklahoma Bureau of Narcotics, District 25 District Attorney’s Investigators, Cherokee Nation Police, Tahlequah Police Department, and Wagoner Police Department. The task force is focused on combating and reducing crime related to tribal jurisdictions across Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.Ohio County man sentenced for child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Kirk Grubler, of Wheeling, West Virginia, was sentenced today to 24 months incarceration for possessing child pornography, U.S. Attorney Bill Powell announced.
Grubler, age 37, pled guilty to one count of “Possession of Child Pornography” in March 2019. Grubler admitted to having images of child pornography depicting a child under the age of 12 in April 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The U.S. Department of Homeland Security Investigations investigated.
U.S. District Judge John Preston Bailey presided.
New York Man Arrested in Enfield Pleads Guilty to Counterfeiting ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL A. STEVENS, 26, of Brooklyn, New York, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of conspiracy to falsely make, forge, counterfeit and pass Federal Reserve Notes.
According to court documents and statements made in court, on May 7, 2019, Enfield Police arrested Stevens and another individual after they attempted to pass counterfeit currency at a Dick’s Sporting Goods store in Enfield. A subsequent search of their vehicle revealed more than $600 in counterfeit currency, 33 pages of paper with uncut $50 and $20 counterfeit notes, an unopened box of paper, and a printer.
The investigation revealed that, in late April 2019, Stevens and others passed hundreds of dollars in counterfeit currency at retail locations in New Britain and Vernon.
Investigators also learned that there was an active federal warrant for Stevens’ arrest in the Eastern District of Virginia. On February 21, 2019, a federal grand jury in Richmond, Virginia, returned as indictment charging Stevens and four other individuals with counterfeiting offenses. The case against Stevens was transferred to the District of Connecticut for further prosecution.
In pleading guilty, Stevens admitted that, in January 2019, he and others passed approximately $21,800 in counterfeit currency at locations in Fredericksburg and Richmond, Virginia.
Judge Shea scheduled sentencing for April 24, 2020, at which time Steven faces a maximum term of imprisonment of five years. Stevens who had been detained since May 7, 2019, was released today on a $50,000 bond.
This investigation is being conducted by the U.S. Secret Service with the assistance of several local police departments. The case in the District of Connecticut is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
New Jersey Man Sentenced to 42 Months in $3M Federal Bribery CaseRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Stephen Williams was sentenced by U.S. District Court Judge Richard G. Andrews to 42 months’ incarceration for bribery in connection with programs receiving federal funds. Williams is the co-defendant of Crystal Martin, the Delaware State University (“DSU”) administrator who pled guilty to the same bribery scheme in April 2019, and whose sentencing occurs in February 2020.
According to court documents and statements made in open court, between 2013 and 2017, Williams was the leader of a bribery scheme at DSU. Williams recruited students to pay him a fee to change their student registration status from out-of-state residency to in-state residency. After students paid him their fee, Williams helped create forged residency documents, such as leases, and then delivered the forged documents to his co-defendant Martin to place in the students’ files, justifying the residency changes that Martin recorded in the university’s computer system. Williams paid Martin a percentage of the fee he collected from each student whose residency was changed, amounting to approximately $70,000 over the course of four years. Williams also paid DSU students to recruit others interested in having their registration status changed. While the total amount that Williams profited from his scheme remains unknown, the estimated cost of reduced tuition payments of more than 250 students to DSU during this four-year-period exceeded $3 million.
U.S. Attorney Weiss stated, “The defendant created and ran a four-year scheme that defrauded a Delaware public university. In so doing, he encouraged hundreds of people to break the law. Further, he deprived his own alma mater and Delaware taxpayers of the rightful tuition proceeds for Delaware State University so that he could personally profit. Defendants who repeatedly break the law for their own personal gain at the expense of Delaware citizens must be held accountable.”
“This defendant perpetuated a fraud, for his own personal gain, against the university, the state of Delaware, and those students who did not try to game the system,” said FBI Baltimore Special Agent in Charge Jennifer Boone. “The FBI will pursue cases of injustice, such as this, until the perpetrator pays for the crime.”
“Williams knowingly and willfully defrauded America’s taxpayers and students in a deliberate and methodical way. With his prison sentence and this judgment, he is being held accountable for his criminal actions,” said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office. “I’m proud of the work of the Office of Inspector General and our law enforcement partners in this matter and continuing our work to protect Federal education funds from those who would use them for their own selfish purposes.”
This case was investigated by the FBI Baltimore - Wilmington Office, the U.S. Department of Education Office of Inspector General, and Delaware State Police, with assistance from the Delaware Department of Justice’s Office of Civil Rights and Public Trust. The case was prosecuted by Assistant U.S. Attorneys Laura D. Hatcher and Whitney C. Cloud.
Nevada Return Preparer Sentenced to More Than Three Years in Prison for Tax CrimesRead the Press Release
A Las Vegas, Nevada, tax return preparer was sentenced to 40 months in prison yesterday for tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents and statements made in court, Michael A. Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). When two of Sandoval’s clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. At NFS, Sandoval also filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses, charitable contributions, and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. On his own individual tax returns, Sandoval fraudulently understated his income from NFS for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654 to the IRS.
Sandoval previously pleaded guilty to one count each of tax evasion, aiding and assisting in the preparation and filing of a false tax return, and making and subscribing a false tax return.
In addition to the term of imprisonment, U.S. District Court Judge Gloria M. Navarro ordered Sandoval to serve three years of supervised release and to pay restitution of $281,630 to a client and of $100,138 to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Mountain Home Man Sentenced to More Than Eleven Years in Prison for Distributing MethamphetamineRead the Press Release
BOISE - James O'Keith Mason, 37, of Mountain Home, Idaho, was sentenced in U.S. District Court to 137 months in prison for distributing five grams or more of pure methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Mason to pay a $2,000 fine and serve 5 years of supervised release following his prison sentence. A federal grand jury indicted Mason on November 15, 2018. Mason pleaded guilty to the charge on July 17, 2019.
According to court records, law enforcement used a confidential informant to purchase methamphetamine from Mason on two separate occasions and to purchase a firearm on a third occasion. Mason has a lengthy criminal history that includes robbery, drug-related offenses, domestic violence, witness intimidation, and burglary. In announcing the sentence. Judge Nye noted that Mason was under the supervision of the Idaho Department of Correction when he distributed methamphetamine and that he had threatened someone with a gun during the same time period.
This case was investigated by Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state, and local agencies, including Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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 was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Morgani Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL MORGANI, age 32, a resident of New Orleans, pleaded guilty on January 29, 2020 to being a felon in possession of a firearm before United States District Judge Martin L.C. Feldman, announced U.S. Attorney Peter G. Strasser.
According to court paperwork, MORGANI purchased two Extar semi-automatic pistols from an individual who he met on the Northshore. MORGANI brought them to a body shop in New Orleans, where they were later recovered by the New Orleans Police Department during the execution of a search warrant. MORGANI was prohibited from possessing firearms because of a prior felony conviction from Jefferson Parish for possession of heroin.
MORGANI faces up to 10 years imprisonment, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment on the gun charge.
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 was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
Monmouth County Man Admits to Gambling Conspiracy, Forfeits $80,000Read the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted his role in a conspiracy to operate a gambling enterprise, U.S. Attorney Craig Carpenito announced.
John Dougherty, 55, of Keyport, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to use facilities in interstate commerce to carry on a business enterprise involving gambling in violation of New Jersey law.
According to documents filed in this case and statements made in court:
From January 2011 to October 2017, Dougherty conspired with an unnamed New Jersey resident (“Individual 1”). Acting as Individual 1’s agent for their gambling business, Dougherty had his own group of bettors who, with Individual 1’s knowledge and assistance, were given access to a website to conduct sports betting with their own usernames and passwords.
Dougherty used money provided by Individual 1 to pay bets won by Dougherty’s bettors. Dougherty also collected money from his bettors for bets they lost and then met with Individual 1 in various locations in New Jersey to share that money.
Dougherty and Individual 1 agreed to use various facilities in interstate commerce to carry on their gambling business, including the internet, cellular telephones used for interstate calls and text messaging, and an overnight delivery service. At various times, Individual 1 changed the cell phone number that he used to communicate with Dougherty and referred to himself in text messages by a code name. After being informed by Dougherty about an expected delivery of “35K” from one of Dougherty’s bettors, Individual 1 sent Dougherty a text message, “Let me know when the eagle has landed.” Later that same day, Dougherty sent Individual 1 a text message with a photograph of the UPS Express Box containing a substantial amount of cash sent by his bettor and with the note, “Eagle has landed. Gonna count now.”The charge of conspiring to use facilities in interstate commerce to carry on a gambling business in violation of local state law carries a maximum potential penalty of five years in prison and a $250,000 fine. Dougherty forfeited $80,000 to the United States. Sentencing is scheduled for May 6, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney J Imbert of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey
Michigan man sentenced for role in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Maurice Swift, of Highland Park, Michigan, was sentenced today to 63 months incarceration for his involvement in a heroin, oxycodone, and cocaine distribution operation, U.S. Attorney Bill Powell announced.
Swift, age 40, pled guilty to one count of “Distribution of Heroin within 1000 feet of Protected Location” in March 2019. Swift admitted to selling heroin near West Virginia University in June 2017 in Monongalia County. Swift also pled guilty today to one count of “Money Laundering Conspiracy.” Swift admitted to working with others to move money made from the drug distribution from the spring of 2017 to May 2018 in Monongalia County and elsewhere.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Internal Revenue Service Criminal Investigations investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Michigan Woman Pleads Guilty to Defrauding U.S. Department of Veterans Affairs Out of $1.7 Million in Veterans BenefitsRead the Press Release
LAS VEGAS, Nev. – Claudia Ann Merrill, 61, of Farmington Hills, Michigan, pleaded guilty today to defrauding the U.S. Department of Veterans Affairs out of more than $1.75 million in veterans benefits, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents, from on or about January 1, 2014, through October 1, 2019, Merrill devised and executed a scheme to defraud and to obtain money and property from the U.S. Department of Veterans Affairs (VA). Merrill admitted that she submitted false applications in the names of veterans, as well as the surviving spouses of veterans, in connection with VA health care programs known as Veterans Pension and VA Aid and Attendance. In furtherance of the scheme, Merrill altered medical records to ensure that the veteran or surviving spouse’s physical or mental condition rendered them eligible for the benefits. She then fraudulently directed benefit payments into bank accounts she controlled, and concealed the benefits from the veterans and surviving spouses. As a result of the scheme, Merrill fraudulently caused the VA to pay out $1,755,412 in benefits that it otherwise would not have paid but for the scheme.
This case was the product of a joint investigation by the U.S. Department of Veterans Affairs, Office of Inspector General and the FBI’s Las Vegas Field Office. Assistant U.S. Attorney Patrick Burns is prosecuting the case.
Merrill is scheduled to be sentenced by U.S. District Judge James C. Mahan on May 15, 2020. Merrill faces a maximum penalty of 20 years in prison and a $250,000 fine. As part of her guilty plea, Merrill agreed to pay approximately $1,755,412 in restitution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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Mexican man admits exporting ammunition inside boxes of dog biscuitsRead the Press Release
McALLEN, Texas – A 25-year-old Mexican national has entered a guilty plea to exporting ammunition from the United States to Mexico, announced U.S. Attorney Ryan K. Patrick.
On Nov. 15, 2019, Esteban Ramirez-Torres approached the southbound checkpoint at the Hidalgo Port of Entry. There, authorities noticed boxes of dog biscuits with black tape at the bottom along with bags of dog food that had been stapled shut.
Upon further inspection, they discovered 4,000 rounds of 7.62x39mm caliber ammunition and 30 AK-47 style rifle magazines hidden amongst the dog food and boxes of biscuits.
Ramirez-Torres admitted he knowingly smuggled the ammunition illegally into Mexico. He also acknowledged purchasing the dog food, tape and staples at Walmart prior to returning to Mexico.
U.S. District Judge Randy Crane accepted the plea and set sentencing for April 14. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine.
He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Claire Nguyen is prosecuting the case.
Member of a Violent Drug Crew Pleads Guilty to Racketeering Conspiracy Including Two Murders in BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, Maurice Brown, a member of the “Bushwick Crew,” a drug-trafficking enterprise based in Brooklyn and Queens, pleaded guilty before United States District Judge Kiyo A. Matsumoto to participating in a racketeering conspiracy and murdering Gary Lopez and Rudy Superville on March 5, 2013 at an apartment in Brooklyn used by one of crew’s heroin distributors. Brown is the last of seven defendants to plead guilty to charges in the third superseding indictment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty pleas.
“As a result of the outstanding work by the Federal Bureau of Investigation, the New York City Police Department and our Office’s prosecutors, seven members of this gang have been brought to justice for the wanton violence they carried out in furtherance of their drug trafficking enterprise,” stated United States Attorney Donoghue. “We hope this prosecution brings a measure of closure for the victims’ families.”
As detailed in the indictment and other court filings, the Bushwick Crew was a large-scale heroin trafficking organization with connections to Mexican drug cartels. Various members of the crew armed themselves to escort drug traffickers, forcibly collected drug debts and committed murders and other acts of violence against anyone who interfered with the crew’s operations or offended its members.
Previously, Luis Lopez and Peter Vasquez pleaded guilty to racketeering conspiracy for their roles in the murders of Gary Lopez and Superville; Tyquan Griem pleaded guilty to racketeering conspiracy and the murder of Kelvin Johnson at a nightclub in Queens; Jaquan Cooper pleaded guilty to brandishing a firearm during a robbery of a barbershop in Queens; Lance Goodwin pleaded guilty to causing the death of Donte Williams by discharging a firearm; and Norman Marrero pleaded guilty to brandishing a firearm during an extortion. The previous guilty plea proceedings were held before United States District Judge Raymond J. Dearie.
When sentenced, each defendant faces a maximum sentence of life imprisonment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes and Andrey Spektor are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit.
Defendant Who Pleaded Guilty Today:
MAURICE BROWN (also known as “Spaz”)
Age: 28
Brooklyn, New YorkDefendants Who Have Previously Pleaded Guilty:
JAQUAN COOPER (also known as “J-Gunna”)
Age: 31
Brooklyn, New YorkNORMAN MARRERO (also known as “Tito”)
Age: 36
Harrisburg, PennsylvaniaLANCE GOODWIN (also known as “Ty Mucka”)
Age: 30
Brooklyn, New YorkTYQUAN GRIEM (also known as “Ty Goon”)
Age: 29
Brooklyn, New YorkLUIS LOPEZ (also known as “Lou”)
Age: 37
Brooklyn, New YorkPETER VASQUEZ (also known as “Pete”)
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-390 (S-3) (RJD)
Maryland man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph Tyree Ryles, of Baltimore, Maryland, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Ryles, age 30, pled guilty to one count of “Unlawful Possession of a Firearm.” Ryles, having previously been convicted of crimes in the Circuit Court of Baltimore City, Maryland, admitted to illegally possessing a 9mm pistol and a .40 caliber pistol in August 2015 in Jefferson County.
Ryles faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Marion County man sentenced for role in cocaine and heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Andrew Parker, of Mannington, West Virginia, was sentenced today to five years probation, with the first 180 days on home confinement, for his involvement in a cocaine and heroin distribution operation, U.S. Attorney Bill Powell announced.
Parker, age 31, pled guilty to one count of “Aiding and Abetting in the Distribution of Cocaine Base” in September 2019. Parker admitted to selling cocaine base, also known as “crack,” in April 2018 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Man from Tucson, Arizona sentenced to 18 months in prison for sending letters threatening to kill Albuquerque police officersRead the Press Release
ALBUQUERQUE, N.M. – Brian Clayton Charles, 52, of Tucson, Arizona, was sentenced in federal court today to 18 months (542 days) in prison on five counts of mailing threatening communications to officers from the Albuquerque Police Department.
Charles pleaded guilty to these offenses on September 10, 2019. In his plea agreement, Charles admitted sending threatening letters to five officers using the United States Postal Service. Charles sent three letters on Sept. 26, 2016, and additional letters on Oct. 6, 2016, and Oct. 11, 2016. All of these victims are Albuquerque police officers, according to a previous criminal complaint and other court documents. Charles threatened in the letters to “cause the city residents to exterminate you vile men with their guns, and I will pile your bodies in mass graves in the city cemetery.”
According to the previous criminal complaint, the Environmental Protection Agency Office of the Inspector General started an investigation of Charles on Oct. 13, 2015, after he allegedly made threatening communications to EPA Administrator Regina McCarthy at her residence in Massachusetts. The U.S. Department of State’s Diplomatic Security Service (DSS) initiated an investigation into Charles after he allegedly mailed a letter, postmarked March 24, 2016, to the home address of then Secretary of State John Kerry in Washington D.C., which threatened to harm the Secretary of State.
Charles received 542 days credit on his sentence for time already served. He will not serve any further time in prison.
DSS’s Office of Protective Intelligence Investigations and the Environmental Protection Agency’s Office of Inspector General investigated this case jointly with assistance from the U.S. Marshals Service and the Albuquerque Police Department. Assistant U.S. Attorneys Jack E. Burkhead, Paul H. Spiers, and Kimberly A. Brawley prosecuted the case.
Man Who Flew Drone in Restricted South Florida Air Space During Super Bowl Week Charged FederallyRead the Press Release
MIAMI – Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Yorgan Arnaldo Ramos Teran (Ramos Teran), 46, of Weston, Florida, is charged with violating the temporary flight restrictions set up to protect the public during Super Bowl LIV and the week leading up to the game. Super Bowl LIV takes place on February 2, 2020, at the Hard Rock Stadium in Miami Gardens, Florida.
According to the criminal complaint filed in the Southern District of Florida, on the night of January 29, 2020, Ramos Teran illegally flew a drone in the temporarily restricted air space of Ocean Drive and 8th Street in Miami Beach, without the required authorization from the Federal Aviation Administration (FAA). The complaint charges Ramos Teran with violating 49 U.S.C. § 46307, which prohibits knowingly and willfully violating national defense airspace; specifically, with knowingly and willfully flying a drone in an area with a temporary flight restriction imposed by the FAA. If convicted, Ramon Teran faces up to one year in federal prison. Ramos Teran is scheduled for an initial appearance before a federal magistrate judge at 2:00 p.m. today.
A temporary flight restriction is a regulation that temporarily restricts certain aircraft (including drones) from operating within a defined area in order to protect people or property in the air or on the ground. As part of a comprehensive federal, state, and local law enforcement plan to protect the public and secure the events leading up to and including Super Bowl LIV, the FAA established temporary flight restrictions on drone and other aircraft flights in areas of Miami Beach and Downtown Miami, and around the Hard Rock Stadium. Restrictions on drone and other aircraft flights in South Florida remain in effect through February 2, 2020.
For more information on Super Bowl LIV-related “No Drone Zones” and other temporary flight restrictions, visit superbowl.faa.gov.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, FAA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Miami Beach Police Department.
A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Man Sentenced to Prison for Trafficking 26 FirearmsRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 18 months in prison for engaging in the business of dealing firearms without a license.
According to court documents, Cornelius Maurice King, Jr., 25, working with co-conspirator Yeakain Yabu Koroma, 26, bought dozens of firearms and then resold them to third parties to turn a profit. Between January and June 2018, King and Koroma resold 26 firearms. Neither King nor Koroma were licensed to sell firearms.
“King illegally trafficked 26 firearms, and the vast majority of those firearms are still out on the street,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Cases like this are representative of precisely why we have partnered with the ATF, D.C. Metropolitan Police Department, and the U.S. Attorney’s Offices in the District of Columbia, Maryland, and the Western District of Virginia on Project Guardian-DMV. We are determined and committed to investigating and enforcing firearms violations not just against the end user, but also against the illicit source of supply. Under Attorney General Barr’s leadership, Project Guardian remains a top Department of Justice priority as we enter 2020.”
Koroma is scheduled to be sentenced by U.S. District Judge Leonie M. Brinkema on February 7.
“The crime King committed has far-reaching effects. Trafficked firearms represent a danger to our community because they can end up in the hands of convicted felons, violent criminals, and many other kinds of people who are prohibited from having firearms,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “We will continue to work diligently alongside our law enforcement partners and the U.S. Attorney’s Office to fulfill the mission of Project Guardian by targeting offenders like King and getting illegally trafficked guns off the street.”
Below is a table that includes the make, model, caliber, and type of firearm illegally trafficked by King.
Make
Model
Caliber
Type
Glock
G30
.45
Pistol (x2)
Remington
RP9
9mm
Pistol
Glock
G27
.40
Pistol (x2)
American Tactical
AR15
5.56mm
Pistol (x2)
Glock
G23
.40
Pistol
Smith & Wesson
SD40VE
.40
Pistol (x2)
Taurus
Millennium G2
9mm
Pistol
Mini Draco
AK
7.62mm
Pistol (x2)
Springfield
XD
9mm
Pistol
Glock
G19
9mm
Pistol
Glock
G26
9mm
Pistol
Hi-Point
3895TS Carbine
.380
Rifle
Glock
G36
.45
Pistol
Mossberg
LR
.22
Pistol
Smith & Wesson
M&P45 Shield
.45
Pistol
Taurus
Millennium PT111
9mm
Pistol
Glock
G17
9mm
Pistol
Smith & Wesson
M&P9c
9mm
Pistol (x2)
Glock
G22c
.40
Pistol
(Unknown)
(Unknown)
.40
Pistol
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Patricia T. Giles and Special Assistant U.S. Attorney Anthony W. Mariano prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-315.
Man Sentenced to 114 Months in PrisonRead the Press Release
FORT WAYNE – Odonis Parker, age 29, was sentenced by U.S. District Court Judge Damon Leichty, after being found guilty after a trial for being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Parker was sentenced to 114 months in prison followed by 2 years of supervised release
According to documents in this case, Mr. Parker was in possession of a firearm on May 26, 2019, after being a twice convicted felon in Allen County Superior Court. His prior felonies were for Robbery and Theft on separate occasions.
Parker went to his ex-girlfriend’s house while armed with a semi-automatic rifle containing two loaded 40 round magazines taped together. After a confrontation, Parker fired multiple times into a car next to where the girlfriend, three minor children and a companion were standing. Mr. Parker chased the companion, who fled, while firing and grazed the man in the head as he ran. Parker then hid the firearm in the trunk of a car before fleeing to a nearby apartment. Fort Wayne Police officers arrived on the scene and were able to locate the firearm and Parker, whom they arrested.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Man Sentenced for Embezzling $3 Million from EmployerRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to 30 months in prison for embezzling over $3.2 million from his employer.
According to court documents, Reginald Zayas, 49, of Upper Marlboro, was the Controller at a Virginia-based company. Over the course of almost four years, Zayas embezzled over $3.2 million from the company by unlawfully transferring funds from the company’s bank account to his own bank account, and he then often transferred the money from his account to others. Zayas transferred over $300,000 to accounts controlled by his wife, his girlfriend, and the mother of one of his children.
Zayas used the laundered money to pay for his own personal expenses, including exorbitant credit card bills, car payments, dining expenses and entertainment, and private school tuition.
In addition to the prison sentence, Zayas was also ordered to pay full restitution and forfeiture.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Cristina Stam and William Fitzpatrick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-297.
Ludlow Couple Sentenced to 18 Months in Prison for Six Year Bid-Rigging SchemeRead the Press Release
BOSTON – A Ludlow couple was sentenced yesterday in federal court in Springfield for a six-year bid-rigging and kickback scheme.
Joanne Murray, 54, and James Murray, 53, both of Ludlow, were each sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison and three years of supervised release. In February 2019, the defendants pleaded guilty to conspiracy to commit mail fraud, aggravated identity theft and tax evasion.
From approximately 2010 through 2015, the Murrays, along with others, engaged in a scheme to defraud the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. Joanne worked at a Springfield real estate brokerage, which managed hundreds of foreclosed properties owned by Freddie Mac. In the scheme, Joanne, James and others agreed to submit fraudulent “reimbursements” by the brokerage to Freddie Mac for James’s company, amounting to approximately $1,372,099 in repair, improvement and maintenance projects. After Freddie Mac paid the purported reimbursements, the brokerage paid James approximately 90% of those amounts and retained an approximately 10% skim. Joanne ensured that James’s company would win these projects by submitting fraudulent bids to Freddie Mac by purported competitors. To avoid detection by Freddie Mac, Joanne submitted bids in the name of a friend of the Murrays, without his knowledge, instead of James’s company, for work that was ultimately performed by James’s company. The Murrays and others also agreed to submit similar fraudulent requests for reimbursement of minor cleaning projects for James’s relative, amounting to approximately $68,960, in exchange for the brokerage’s retention of approximately 10% of the relative’s payments.
In addition, from 2012 through 2014, the Murrays evaded payment on outstanding federal tax debts based upon their 2008, 2009, 2010 and 2011 tax years by cashing numerous checks from the brokerage totaling approximately $461,030 rather than depositing those checks into their bank accounts. Lastly, in 2014, the Murrays jointly filed an individual federal income tax return that under-reported their gross receipts by approximately $151,178.
United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office prosecuted the case.
Lewis County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Shawn Andrew Hunt, of Weston, West Virginia, was sentenced today to 24 months incarceration for methamphetamine distribution, U.S. Attorney Bill Powell announced.
Hunt, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in December 2019. Hunt admitted to distributing methamphetamine in Marshall County in February 2019.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moundsville Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Las Vegas Tax Return Preparer Sentenced to More Than Three Years in Prison for Tax CrimesRead the Press Release
LAS VEGAS, Nev. - A Las Vegas, Nevada, tax return preparer was sentenced to 40 months in prison yesterday for tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents and statements made in court, Michael A. Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). When two of Sandoval’s clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. At NFS, Sandoval also filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses, charitable contributions, and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. On his own individual tax returns, Sandoval fraudulently understated his income from NFS for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654 to the IRS.
Sandoval previously pleaded guilty to one count each of tax evasion, aiding and assisting in the preparation and filing of a false tax return, and making and subscribing a false tax return.
In addition to the term of imprisonment, U.S. District Court Judge Gloria M. Navarro ordered Sandoval to serve three years of supervised release and to pay restitution of $281,630 to a client and of $100,138 to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Laplace Man Indicted for Being Felon in Possession of AmmunitionRead the Press Release
NEW ORLEANS, LOUISIANA – DWAYNE BROWN, age 34, a resident of Laplace, Louisiana, was indicted for being a felon in possession of ammunition, announced U.S. Attorney Peter G. Strasser.
According to court documents, on or about October 1, 2019, the defendant knowingly possessed ammunition after being convicted in the 40th Judicial Court, State of Louisiana, for aggravated flight from an officer, simple criminal damage to property, and unauthorized entry of an inhabited dwelling.
If convicted, the defendant faces 10 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
United States Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, and Firearms in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.
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KC Woman Pleads Guilty to Social Security, Bankruptcy Fraud SchemesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri woman pleaded guilty in federal court today to a Social Security and bankruptcy fraud scheme.
Carol L. Dille, 67, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of wire fraud and one count of bankruptcy fraud.
Dille married Gerald A. Sanders in November 1988; they separated in 2009. Dille admitted today that she filed an online application for retirement insurance benefits in September 2013, using the identity – including the name, date of birth, and Social Security number – of Sanders.
Dille, representing herself as Sanders, provided her own address, phone number, and email address as contact information. Dille, while still representing herself as Sanders, indicated benefits should be direct deposited into the bank account of “Alliance of Divine Love Chapel 1202,” of which she was the sole authorized signor on the account.
On May 7, 2015, Dille filed for Chapter 13 bankruptcy. She claimed $500,001 to $1 million in estimated liabilities, but failed to list – effectively concealing – the Alliance of Divine Love bank account. Dille’s bankruptcy case was dismissed on Oct. 5, 2015, because she failed to make required payments.
On March 9, 2016, Dille again filed for bankruptcy. Dille again failed to list – effectively concealing – the Alliance of Divine Love bank account. This case was dismissed on May 5, 2016, because Dille again failed to make required payments.
During the summer of 2016, Dille communicated with Sanders (who had moved to Indonesia) via email about helping him set up his retirement insurance benefits. She told him she had set up his benefits to begin depositing into a credit union. In August 2016, following a move from Indonesia to Guam, Sanders went into a Social Security Administration field office in Guam. Sanders was told the Social Security Administration had been paying retirement benefits for him since 2013. Sanders stated that he was not aware he had been receiving benefits since 2013, and that he had moved to Indonesia in 2009.
From October 2013 through November 2017, the Social Security Administration paid a total of $76,601 in monthly retirement payments earmarked for Sanders. Due to Dille’s fraudulent application and her subsequent concealment of the bank account, she fraudulently obtained at least $54,752 in retirement insurance benefits under Sanders’s name.
Under federal statutes, Dille is subject to a sentence of up to 25 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 Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the Social Security Administration, Office of Inspector General.
Jury convicts Fort Belknap man of strangling womanRead the Press Release
GREAT FALLS – A jury on Friday convicted a Fort Belknap man accused of assaulting and strangling a woman in Lodge Pole on the Fort Belknap Indian Reservation last year, U.S. Attorney Kurt Alme said.
The jury found Jordan Alexander Werk, 32, guilty of assault by striking, beating or wounding and of strangulation. The jury acquitted Werk of assault of a dating partner resulting in substantial bodily injury. Werk faces a maximum 10 years, a $250,000 fine and three years of supervised release on the strangulation charge and a maximum one year in prison, a $100,000 fine and one year of supervised release on the assault count.
The trial began on Thursday, with U.S. District Judge Brian M. Morris presiding. Judge Morris set sentencing for June 3 and continued Werk’s detention.
“There is no excuse for assaulting a woman. We know that Native women face higher rates of violence and sexual violence and we are committed to prosecuting those who prey on them. I want to thank Assistant U.S. Attorney Paulette Stewart, the FBI and the Fort Belknap tribal law enforcement for investigating and prosecuting this case,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that Werk assaulted and strangled the victim on April 8, 2019 in Lodge Pole in Blaine County and on the Fort Belknap Reservation. The victim reported on April 8, 2019 that Werk had assaulted her by grabbing her hair and throwing her to the ground. Werk kicked her in the chest, punched her in the head and choked her, causing her to see stars and have trouble breathing.
The victim also told law enforcement that during the assault, Werk told her that he knew how to hit someone to not show bruises and that if she was going to act like a victim, then he would treat her like one. The victim was treated for injuries, including a broken rib, at the Indian Health Service in Harlem.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the FBI and Fort Belknap tribal law enforcement.
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Jason Galanis Pleads Guilty in Manhattan Federal Court to Multiple Fraudulent SchemesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JASON GALANIS pled guilty today for his participation in multiple fraudulent schemes. In particular, GALANIS pled guilty for his role in a scheme to manipulate the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defrauding the shareholders of that company (the “Gerova Scheme”), as well as to defraud the clients of an investment advisory firm. GALANIS also pled guilty today to defrauding a Native American tribal entity and the investing public of tens of millions of dollars in connection with the issuance of bonds by the tribal entity (the “Tribal Bond Scheme”). GALANIS pled guilty to three counts of conspiracy to commit securities fraud, two counts of securities fraud, one count of investment adviser fraud, and one count of conspiracy to commit investment adviser fraud before U.S. District Judge P. Kevin Castel. GALANIS had previously pled guilty, in July 2016, for his participation in the Gerova Scheme and, in January 2017, for his participation in the Tribal Bond Scheme, but those convictions were subsequently vacated.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Jason Galanis orchestrated two multimillion-dollar fraud schemes, and put together a team of co-conspirators to carry them out. He and his codefendants engaged in market manipulation and the defrauding of shareholders, and they stole a large portion of the proceeds of tribal bonds that were intended to fund economic development projects. The overriding theme was victimizing others to enrich themselves. Now Jason Galanis awaits sentencing for his criminal greed.”
According to the allegations contained in the Information filed against GALANIS, charging documents filed against GALANIS’s co-conspirators, and statements made in related court filings and proceedings:
The Gerova Scheme
From 2009 to 2011, GALANIS, along with his co-conspirators John Galanis, Gary Hirst, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova and the investing public, by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration to GALANIS and his co-conspirators, without adequate disclosure of GALANIS’s role in directing the transactions or the benefits received by GALANIS and his co-conspirators.
As a part of the scheme to defraud, GALANIS obtained sufficient control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. GALANIS obtained this control without causing himself to be identified as an officer or director of Gerova so as to purport to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, GALANIS, with the assistance of Hirst, caused over 5,000,000 shares of Gerova stock, which represented nearly half the company’s public float and which were intended for GALANIS’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for GALANIS. GALANIS, John Galanis, Jared Galanis, Derek Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise GALANIS’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, GALANIS’s co-conspirators, with his knowledge and approval, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public GALANIS’s ownership of and control over the Gerova stock.
GALANIS, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, GALANIS and others were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that GALANIS controlled while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, GALANIS and his co-conspirators reaped nearly $20 million in profits.
The Scheme to Defraud Clients of Investment Firm-1
From 2007 to 2010, GALANIS along with an investment adviser identified in the Information as “CC-2,” participated in a scheme to defraud the clients of CC-2’s investment advisory firm, identified in the Information as “Investment Firm-1.” Oftentimes in exchange for compensation from GALANIS, CC-2 caused Investment Firm-1 clients to invest in notes issued by entities associated with GALANIS.
When obligations owed by entities associated with GALANIS became due, CC-2 used client funds to purchase either notes issued by other entities associated with GALANIS or publicly traded shares held by such entities. The funds generated were then used to pay the original obligations owed to other Investment Firm-1 clients. Through these securities trades, funds in client accounts of one set of Investment Firm-1 investors were used to pay obligations owed to a different set of Investment Firm-1 investors by entities associated with GALANIS.
The Tribal Bond Scheme
From March 2014 through April 2016, GALANIS, along with his co-conspirators Gary Hirst, John Galanis, a/k/a “Yanni,” Hugh Dunkerley, Michelle Morton, Devon Archer, and Bevan Cooney, engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by GALANIS and his codefendants to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
Documents governing the Tribal Bonds specified that an investment manager would invest the proceeds of the Tribal Bonds in investments that would generate annuity payments sufficient to pay interest on the Tribal Bonds and provide funds to the WLCC to be used for tribal economic development purposes. In fact, none of the proceeds of the Tribal Bonds were turned over to the investment manager specified in the closing documents. Instead, significant portions of the proceeds were misappropriated by GALANIS and his codefendants for their own personal use.
Specifically, the proceeds of the Tribal Bonds were deposited into a bank account in the name of Wealth Assurance Private Client Corporation (“WAPCC”), an entity controlled by Dunkerley and Hirst. Dunkerley transferred more than $38 million from the WAPCC account to an account controlled by GALANIS, who then misappropriated more than $8.5 million of the proceeds for his personal use, including for expenses associated with his home, jewelry and clothing purchases, travel and entertainment, and restaurant meals.
There was no ready secondary market for the Tribal Bonds. Nonetheless, without prior notice to their clients, Morton and Hirst, acting at the direction of GALANIS, used funds belonging to clients of two related investment advisers, Hughes Capital Management, Inc. (“Hughes”), and Atlantic Asset Management, LLC (“Atlantic”), to purchase the Tribal Bonds, even though GALANIS, Hirst, and Morton were well aware that material facts about the Tribal Bonds had been withheld from clients in whose accounts they were placed, including the fact that the Tribal Bond purchases fell outside the investment parameters set forth in the investment advisory contracts of certain Hughes clients and of the Atlantic pooled investment vehicle in which the Tribal Bonds were purchased. When Hughes and Atlantic clients learned about the purchase of the Tribal Bonds in their accounts, several of them demanded that the Tribal Bonds be sold. However, because there was no ready secondary market for the Tribal Bonds, no Tribal Bonds have been sold from any Hughes or Atlantic client accounts. In addition, GALANIS and his codefendants failed to apprise clients of Hughes and Atlantic regarding substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
In addition, a portion of the misappropriated proceeds was recycled and provided by GALANIS to entities affiliated with Archer and Cooney in order to enable Archer and Cooney to purchase subsequent Tribal Bonds issued by the WLCC. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase.
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GALANIS, 49, pled guilty to three counts of conspiracy to commit securities fraud, each carrying a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense; and one count of conspiracy to commit investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense. GALANIS will be sentenced by Judge Castel on May 12, 2020.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Mr. Berman praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Rebecca Mermelstein, and Negar Tekeei are in charge of the prosecution.
Jacksonville Man Sentenced to Six Years in Prison for Possessing Child Sex Abuse Videos and ImagesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Jason Ryan Fain (38, Jacksonville) to six years in federal prison for possessing a USB thumb drive that contained videos and images depicting the sexual abuse of young children. Fain was also sentenced to serve a 10-year term of supervised release and ordered to register as a sex offender.
A federal jury had found Fain guilty on October 30, 2019.
According to testimony and evidence presented at trial, on January 9, 2017, an officer with the Jacksonville Sheriff’s Office (JSO) responded to a citizen complaint at Fain’s residence and recovered a USB thumb drive belonging to Fain. A detective from JSO obtained a search warrant for the thumb drive, which contained 3,614 images and 7 videos depicting the sexual abuse of young children, together with “selfie” photos depicting Fain.
On October 27, 2017, Fain was arrested in Youngstown, Florida by investigators from the Bay County Sheriff’s Office. During an interview, Fain admitted that the thumb drive belonged to him and that it contained “hundreds” of pornographic images of children that he had obtained from the internet. A forensic analysis of the thumb drive by the FBI confirmed that it had accessed a particular file-sharing network on the internet. The device also contained a document that advocated the legalization of child pornography possession.
This case was investigated by the Jacksonville Sheriff’s Office, the Bay County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Irvington Fire Academy Trainee Arrested for Manufacturing Illegal PillsRead the Press Release
NEWARK, N.J. – Two Irvington, New Jersey, men, one of whom is currently attending the Irvington Fire Academy in order to become a firefighter, have been charged for operating a “mill” for the manufacture of illegal narcotic pills in an Irvington residence, U.S. Attorney Craig Carpenito announced.
Elijah Lee, 27, who was in training to become a firefighter with the Irvington Fire Department, and Immanuel Majerska, 37, were arrested Jan. 30, 2020, and charged with conspiring to distribute methylenedioxymethamphetamine, commonly referred to as “ecstasy,” or “MDMA.” The two defendants made their initial appearance today before U.S. Magistrate Judge Joseph A. Dickson. Lee was released on bail and Majerska was detained.
According to documents filed in this case and statements made in court:
The defendants allegedly manufactured MDMA pills in the basement of Lee’s residence. Law enforcement officers recovered two “presses” capable of producing pills from raw ingredients, multiple kilograms of bulk suspected MDMA powder, and numerous pills of suspected MDMA. Law enforcement officers also recovered a loaded firearm at Lee’s residence in a dresser in Majerska’s room. Majerska was in possession of approximately 1,000 suspected MDMA pills.
The conspiracy charge carries a maximum penalty of twenty years in prison and a $1 million fine.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York, under the direction of Peter C. Fitzhugh, with the investigation leading to today’s charges. He also thanked the Essex County Sheriff’s Department the Irvington and Union police departments for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Macurdy and Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office ODETF Unit in Newark.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty today was:
Shawna Renee Bercier, 37, of Laurel, on charges of conspiracy to possess with intent to distribute methamphetamine and distribution of meth. If convicted of the most serious charge, Bercier faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least five years of supervised release. Bercier was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 19-144.
Appearing on Jan. 30 was:
Braden Charles Losing, 25, of Miles City, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Losing faces a minimum 10 years in prison, a $250,000 fine and three years of supervised release. Losing was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person. Pacer case reference. 20-08.
Hugo Javier Quiroga, 46, of Billings and Mexico, on charges of false representation of Social Security number, false claim of U.S. citizenship and aggravated identity theft. If convicted of the most serious crime, Quiroga faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Quiroga was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-04.
Appearing on Jan. 29 was:
Susan Wilkinson, 33, of Billings, on charges of conspiracy to possess with intent to distribute and possession with intent to distribute controlled substances. If convicted of the most serious crime, Wilkinson faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Wilkinson was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-137.
Appearing on Jan. 28 was:
Daniel Kenneth Sherman, 34, of Worden, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Sherman faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Sherman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person. Pacer case reference. 19-150.
Tyrezes Demarquis Taylor, 25, of Billings, on charges of prohibited person in possession of a firearm and false statement during a firearms transaction. If convicted of the most serious crime, Taylor faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Taylor was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person. Pacer case reference. 20-09.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 29 was:
James Robert Starcevich, 24, of Butte, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Starcevich faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years to life of supervised release. Starcevich was released pending further proceedings. The Drug Enforcement Administration, Butte-Silverbow law enforcement and U.S. Postal Service investigated the case. Pacer case reference. 20-01.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Independence Financial Advisor Pleads Guilty to $1 Million Fraud Against Elderly ClientsRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, financial advisor pleaded guilty in federal court today to a fraud scheme in which he stole more than $1 million from two elderly clients.
“A trusted financial advisor greedily preyed on two unsuspecting elderly clients to illegally enrich himself,” said U.S. Attorney Tim Garrison. “It’s criminal, but even more contemptible when those granted positions of trust take advantage of vulnerable victims, such as their elderly clients.”
Kraig Gier, 59, pleaded guilty before U.S. District Judge Greg Kays to two counts of wire fraud.
Gier, who operated a business called Security Planning Corporation, admitted that he stole a total of $1,087,964 from a 96-year-old client and an 84-year-old client. Through his scheme to defraud, Gier caused losses to one victim client of $879,602 and to another victim client of $208,362.
Gier began making fraudulent withdrawals from the various investment accounts of these clients in February 2015, and had the money deposited into either his personal checking account or his business account. This fraud scheme continued until July 2018.
Gier sometimes forged the signature of the client victims on the paperwork associated with a particular withdraw request. At other times, Gier would contain with the withdrawal paperwork a fraudulent voided check with the victim’s name on it but with his personal or business account number as the intended recipient of the requested funds.
In order to cover up his fraudulent scheme, Gier admitted, he prepared false and fictitious documentation purportedly from the financial company holding the victim clients’ investment. This documentation would fraudulently represent they were making a significant profit even though he had often significantly depleted their account.
Under federal statutes, Gier is subject to a sentence of up to 20 years in federal prison without parole on each of the two counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Executive Assistant U.S. Attorney David Ketchmark. It was investigated by the FBI and the Independence, Mo., Police Department.
In Large-Scale Takedown, 12 Arrested, Charged with Gun and Drug CrimesRead the Press Release
Eight alleged gang members were arrested in a large-scale takedown Thursday, charged with gun and drug crimes following an investigation led by the DEA Dallas Division, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“357 Crips” gang members Dwight Alexander Frank, Paul Adron Freeman, Vernon Ray Stiff, Calvin James Thomas, Tyrel Demond Washington, Bernice Lee Woodson, Jr., Bryson Busby, and Michael McCoy were arrested Thursday and charged with conspiracy to possess with intent to distribute cocaine.
Four non-gang members – Alonzo Perez, Jr., Alonzo Perez, Sr., Beatriz Perez, and Max Davis – were also arrested and charged with related drug crimes.
The takedown, led by the DEA, began in the early morning hours Thursday, and stretched into the afternoon. The majority of the defendants were arrested at trap houses across the DFW metroplex, where agents seized roughly 2.5 kilograms of cocaine, 24 guns, and more than $300,000 in cash. (To date, the investigation has netted a total of approximately 7 kilos of cocaine, various other drugs, 37 firearms, and more than $500,000 in cash.
“There should never be any doubt that drug trafficking is not a victimless crime. These gang members sought to profit and expand their influence by peddling drugs throughout South Dallas. With the dismantlement of this organization, guns are no longer in the hands of these drug dealers and the drugs they sold are now off the streets. It was only through a tremendous partnership with the Dallas PD, the ATF, and many other area law enforcement agencies that Dallas is safer today than it was yesterday,” said DEA Special Agent in Charge Eduardo A. Chavez.
“We are grateful to the many law enforcement partners who collaborated to disrupt a drug trafficking ring,” said U.S. Attorney Erin Nealy Cox. “Cocaine continues to wreak havoc on our community and we will vigorously prosecute those that distribute this deadly drug.”
In addition to the conspiracy count, Mr. Woodson was charged with one count of possession with intent to distribute.
Ms. Perez, Jr., Mr. Stiff, Mr. Washington, and Mr. Woodson were also charged with maintaining drug-involved premises, as was Mr. Perez Jr.’s father.
Mr. Perez, Jr., Mr. Washington, and Mr. Woodson were also charged with being a convicted felon in possession of a firearm. Mr. Woodson was charged with possession of a firearm in furtherance of a drug trafficking crime.
Charges are merely allegations of criminal conduct, not evidence. The defendants are presumed innocent unless proven guilty in a court of law.
If convicted, the defendants face 10 years to life in prison on the conspiracy charge. Those charged with maintaining a drug involved premises face an additional 20 years; those charged with being a felon in possession of a firearm face an additional 10 years; and those charged with possession of a firearm in furtherance of a drug trafficking crime face an additional five years.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with assistance of the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Dallas Police Department, Rockwall Police Department, Rockwall County Sheriff’s Office, Flower Mound Police Department, Farmer’s Branch Police Department, Garland Police Department, Hunt County Sheriff’s Office, Denton Police Department, Dallas County Sheriff’s Office, Grand Prairie Police Department, and Plano Police Department. The U.S. Marshals Service led the charge in tracking defendants and effecting arrests. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
Illinois Man Indicted on Sex Trafficking ChargesRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging DARNELL DESHAWN STENNIS, 28, with one count of sex trafficking by force, fraud, and coercion, and two counts of transporting individuals to engage in prostitution. STENNIS is scheduled to be arraigned on these charges on February 6, 2020, before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.
According to the allegations in the indictment and documents filed in court, from January 2019 through March 2019, STENNIS recruited, harbored, advertised, solicited, and transported from Minnesota to North Dakota, a victim to engage in commercial sex acts by means of force, fraud, and coercion. From March 21, 2019, through March 25, 2019, STENNIS also transported a second victim from Minnesota to North Dakota with the intent that the victim would engage in commercial sex acts.
According to the allegations in the indictment and documents filed in court, on March 25, 2019, officers with the Bloomington Police Department were dispatched to the La Quinta Inn in Bloomington, Minnesota, following a report that a hotel guest heard yelling and what sounded like someone being thrown against a wall. Upon arrival, officers encountered STENNIS and two other individuals, identified as Victim A and Victim B. Officers checked the hotel room and observed obvious signs of a disturbance, including a toilet seat that was broken into multiple pieces and a towel rack that was bent. Victim A reported to officers that STENNIS had violently assaulted her. Victim A reported that STENNIS choked her, bashed her head into the towel rack, and pushed her down onto the toilet seat. STENNIS, who also had outstanding warrants, was arrested and placed into custody.
This case is the result of an investigation conducted by Homeland Security Investigations and the Bloomington Police Department.
Assistant U.S. Attorney Evan B. Gilead and Manda M. Sertich are prosecuting the case.
Defendant Information:
DARNELL DESHAWN STENNIS, 28
Charges:
- Sex trafficking by force, fraud, and coercion, 1 count
- Transporting individuals to engage in prostitution, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Illegal Alien Sentenced to 25 Years in Prison for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
BOISE – Ubaldo Soto-Diaz, an illegal alien from Mexico, but residing in Portersville, California, was sentenced to 25 years in prison for conspiracy to distribute methamphetamine and heroin, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge David C. Nye also ordered Soto-Diaz to pay a $2,000 fine and serve five years of supervised release following his prison sentence. Soto-Diaz pleaded guilty to the charge on July 18, 2019.
According to court records, Soto-Diaz admitted that between August 28, 2018, and January 28, 2019, he conspired with six other defendants to distribute methamphetamine and heroin. Soto-Diaz was found to be the leader and organizer of an extensive criminal organization that was responsible for distributing high potency methamphetamine, manufactured in Mexico and then transported from California to Idaho. During their investigation of Soto-Diaz and his organization, DEA agents seized over thirty pounds of 100% pure methamphetamine and almost two pounds of black tar heroin.
According to court records, Soto-Diaz had previously been convicted of transporting a controlled substance in 2000 and possession of controlled substances for sale in 2009. He was deported to Mexico on May 17, 2010. He was found to be illegally present in the United States on May 26, 2010, and was convicted of illegal entry. He again illegally returned to the United States and was convicted of possession of controlled substances for sale and unlawful possession of a firearm in 2012. At the time Soto-Diaz conspired to distribute methamphetamine and heroin to Idaho, he was illegally living in Portersville, California.
This case was a result of a joint investigation with Drug Enforcement Administration, Nampa Police Department, Canyon County Narcotics Unit, and Ada County Sheriff’s Office.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
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Humboldt Man Sentenced to 15 Years as an Armed Career CriminalRead the Press Release
Jackson, TN – Jerome Lavell McBride, 39, has been sentenced to 188 months in federal prison for being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to information presented in court, on December 12, 2017, as a law enforcement officer was traveling northbound on Highway 45W in his undercover vehicle when a crown Victoria passed him at a high rate of speed of approximately 70 mph in a 55 mph zone, so he initiated a traffic stop.
During the traffic stop, the agent observed a plastic baggy containing marijuana hanging out of the defendant’s pocket. A subsequent search of the vehicle produced a Lorcin .380 caliber pistol along with 15 individually wrapped bags of marijuana and $494.
The defendant has previously been convicted of 2nd degree robbery (KY), 2nd degree burglary (KY), second degree assault (KY), reckless endangerment with a deadly weapon, and aggravated assault. Because of these previous violent felony convictions, McBride was determined to be an armed career criminal under the federal sentencing guidelines, and subject to a mandatory minimum sentence of 180 months.
On January 30, 2020, Senior U.S. District Court Judge J. Daniel Breen sentenced McBride to 188 months in federal prison followed by 4 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, the defendant was an armed career criminal who continued to possess a firearm despite his prior violent felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more gun-toter removed from our streets for a very long time."
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Tennessee Violent Crime and Drug Task Force investigated this case.
Assistant U.S. Attorney Hillary Lawler Parham prosecuted this case on behalf of the government.
Harcros Chemicals Pleads Guilty to Violating Clean Air ActRead the Press Release
TOPEKA, KAN. – Harcros Chemicals, Inc., of Kansas City, Kan., pleaded guilty today to violating a federal clean air law in connection with a toxic chlorine gas cloud that formed over Atchison, Kan., in 2016, U.S. Attorney Stephen McAllister said.
According to the company’s plea agreement, Harcros is expected to pay a $1 million fine. The co-defendant in the case, MGP Ingredients, Inc., of Atchison pleaded guilty in November in the same case. That company also is expected to pay a $1 million fine.
Harcros pleaded guilty to negligently violating the federal Clean Air Act. In its plea, the company admitted that on Oct. 21, 2016, a greenish-yellow chlorine gas cloud formed when 4,000 gallons of sulfuric acid were mistakenly combined with 5,800 gallons of sodium hypochlorite. The Atchison County Department of Emergency Management ordered community members to shelter in place and to evacuate in some areas. Approximately 140 individuals including members of the public, first responders, employees of MGP Ingredients and Harcros Chemicals sought medical attention.
“The chemicals involved in this case posed serious public health and environmental dangers,” said Assistant Director Justin Oesterreich of EPA’s Criminal Investigation Division in Kansas. “EPA and its law enforcement partners are committed to holding responsible parties accountable for actions that put an entire community at risk.”
Harcros is set for sentencing May 27.
McAllister commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Victims can get more information on US v. Midwest Grain Products, Inc., by visiting https://www.justice.gov/usao-ks/victim-witness and filling out a victim questionnaire, leaving a message on a designated phone line at 913-551-6543 or emailing questions to [email protected]
Greeneville Man Sentenced for Conspiracy to Distribute Methamphetamine and Money LaunderingRead the Press Release
Greeneville, Tenn. – On January 24, 2020, Juan Moreno-Pantiga, 30, of Bulls Gap, was sentenced before the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Moreno-Pantiga plead guilty to an indictment charging him with conspiracy to distribute methamphetamine and conspiracy to commit money laundering. Moreno-Pantiga was sentenced to 262 months in prison and will be deported to Mexico after completion of his term of incarceration.
Moreno-Pantiga operated a used car lot from which he and his associates sold methamphetamine and laundered drug proceeds. Additionally, Moreno-Pantiga owned a stash-house where law enforcement recovered over 3 kilograms of methamphetamine, 450 grams of cocaine, 41 kilograms of marijuana, and five firearms during the execution of a search warrant. Moreno-Pantiga admitted he was part of a methamphetamine distribution network responsible for trafficking multiple kilograms of methamphetamine supplied by large trans-national criminal organizations. Moreno-Pantiga and 23 others were charged in an indictment returned by a federal grand jury on January 8, 2019. All defendants have plead guilty.
The multi-agency investigation included Greene County Sheriff’s Department, Greeneville Police Department, Hawkins County Sheriff’s Department, Hamblen County Sheriff’s Department, Jefferson County Sheriff’s Department, Washington County Sheriff’s Department, Tusculum Police Department, Baileyton Police Department, Elizabethton Police Department, Third Judicial Drug Task Force, Fourth Judicial Drug Task Force, Tennessee Bureau of Investigation (TBI), Tennessee National Guard Counter-drug Task Force, Tennessee Highway Patrol, United States Marshal Service, Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI)..
Assistant U.S. Attorneys J. Christian Lampe and Andrew C. Parker represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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