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30 January 2020
Whitman Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Whitman man pleaded guilty yesterday in federal court in Boston to child pornography offenses.
Matthew Kulikowski, 38, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 29, 2020. Kulikowski was arrested and charged in September 2018, and has been in custody since that time.
Law enforcement learned that an internet user at Kulikowski’s Whitman home distributed child pornography using the Kik messenger application. A search of the home resulted in the seizure of a tablet located in Kulikowski’s bedroom that contained at least 300 images and videos depicting child pornography, including the sexual assault of girls who appeared to be between four-and-eight-years-old.
At the time of his arrest, Kulikowski was on pretrial release from Plymouth County Superior Court, where he had a case pending for multiple child exploitation offenses, including possession of child pornography, disseminating obscene material to a minor, indecent assault and battery on a child under 14 and enticement of a child under 16. He has since been convicted of those offenses.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Both charges provide for a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistance was provided by the Massachusetts State Police, Whitman Police Department and the Plymouth County District Attorney’s Office. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Walthill Man Convicted of StrangulationRead the Press Release
United States Attorney Joe Kelly announced that Bernard Jackson, 44, was found guilty on January 29, 2020, following a two-day jury trial in federal court for Strangulation and Domestic Assault by a Habitual Offender. Senior United States Judge Laurie Smith Camp scheduled Jackson’s sentencing for April 27, 2020, at 9:00 a.m. Jackson faces up to ten years in prison on the Strangulation count.
In October 2019, tribal officers with the Omaha Nation Law Enforcement Services responded to a residence in Walthill, Nebraska, on a report of a domestic assault. The victim reported that Jackson had dragged her across the floor by her arm, lifted her by her neck, and punched her multiple times in the head and face. Jackson has at least four prior convictions for domestic assaults against the same victim.
This case was investigated by the Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
Upshur County woman sentenced for her role in a methamphetamine distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Melissa Ann Masuga, of Buckhannon, West Virginia, was sentenced today to 12 days incarceration for her participation in a meth distribution operation, United States Attorney William J. Powell announced.
Masuga, age 34, pled guilty to one count of “Distribution of Methamphetamine” in October 2018. Masuga admitted to conspiring with others to distribute methamphetamine in Upshur County and elsewhere from March 2016 to September 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives; the Drug Enforcement Administration; The Mountain Region Drug & Violent Crimes Task Force, composed of the Randolph County Sheriff’s Office, Elkins Police Department, U.S. Forest Service, and Tucker County Sheriff’s Office; the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Upshur County Sheriff’s Office; the Lewis County Sheriff’s Office; the Buckhannon Police Department; and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
Union County Man Charged with Offering Bribes to A Postal Service Employee and Receiving Stolen MailRead the Press Release
NEWARK, N.J. – A Union County man was arrested today for bribing a U.S. Postal Service (USPS) employee to steal check books, credit cards, and electronics from the mail, U.S. Attorney Craig Carpenito announced.
Jabre Beauvoir, 21, of Elizabeth, New Jersey, is charged by complaint with one count of bribery and one count of receiving stolen mail. He is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to documents filed in this case and statements made in court:
Between May 2019 and September 2019, Beauvoir offered bribes to USPS employees to steal envelopes and packages containing check books, credit cards, and electronics, such as Apple iPhones. Text messages showed Beauvoir instructing a USPS employees to look for certain types of mailings containing material to be stolen.
The bribery charge is punishable by a maximum potential penalty of 15 years in prison. The receipt of stolen mail charge is punishable by a maximum potential penalty of five years in prison. Both charges are additionally punishable by a maximum $250,000 fine.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents with the USPS-Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s arrest. He also thanked the U.S. Secret Service, New Jersey State Police, the Elizabeth Police Department, and the Secaucus Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Honors 32 Individuals in Awards Ceremony for Outstanding Efforts in Fighting CrimeRead the Press Release
Harrisburg – The United States Attorney’s Office for the Middle District of Pennsylvania announced that U.S. Attorney David J. Freed presented awards on Thursday, January 30, 2020, to 32 individuals, including law enforcement officers, agency counsel and private citizens for their outstanding efforts in fighting crime.
“We are pleased and proud to have the opportunity to recognize the contributions of our local, state and federal partners from throughout the Middle District,” said U.S. Attorney Freed. “Too often, the hard work of unsung heroes goes unrecognized. Today’s ceremony emphasizes the industry and dedication that fuels our efforts to reduce crime and enhance public safety.”
The award recipients are being honored for their distinguished service, lifetime service and outstanding contributions to cooperative law enforcement. Those honored at Thursday’s ceremony included:
Two law enforcement members received the Lifetime Service Award which recognized their many years of exemplary service to their agency:
- York County Drug Task Force Detective Sergeant Craig Fenstermacher; and
- Retired Special Agent Chris Kegerreis with the IRS, Criminal Investigation Division.
Four law enforcement members received an Award For Outstanding Contributions to Cooperative Law Enforcement for significantly increasing cooperation among law enforcement agencies:
- York County District Attorney David W. Sunday;
- ATF Special Agent Jarrod Chittum;
- One PA State Police Task Force Officer working with FBI’s Safe Street Task Force in Harrisburg; and
- PA State Police Task Force Officer Shawn Wolfe working with FBI’s Safe Street Task Force in Harrisburg.
Associate Regional Counsel for Criminal Enforcement, Environmental Protection Agency, Martin Harrell received an Award For Outstanding Contributions As a Special Assistant United States Attorney for his contributions as the primary contact for all Middle District environmental criminal cases prosecuted by this office for over thirty years and for serving as a Special Assistant United States Attorney on many of those matters.
C.A.R.E. Court volunteer Albert R. Murray, Esquire received an award for Community Service for his six years of dedicated volunteer service to the Middle District Court Assisted Re-entry (C.A.R.E.) program.
The following individuals received an Award For Distinguished Service for their exceptional work of the “Southside” investigation that led to the successful prosecution of approximately 30 members of the Southside gang, a violent criminal enterprise that operated in York County.
- Retired Special Agent Scott Endy, ATF;
- Special Agent Ryan Anderson, ATF;
- Detective Scott Nadzom, York City P.D.;
- Detective Paul DeHart, York City P.D.;
- Detective Andrew Shaffer, York City P.D;
- Retired Detective Barton Seelig, York City P.D.;
- Detective Zachary Pelton, York City P.D.;
- Detective Timothy Shermeyer, York City P.D.;
- Detective Travis Sowers, York City P.D.;
- Detective Andy Baez, York City P.D.;
- Detective Kyle Hower, York City P.D.;
- Lt. William Wentz, York City P.D. and
- Police Officer Stephen Aderhold, York City P.D.
Five law enforcement members received an Award for their Distinguished Service for their tireless efforts of the Dr. Fui Li prosecution of a corrupt physician who operated a massive “pill mill” under the guise of a pain management clinic:
- DEA Diversion Investigator James Hischar;
- DEA Diversion Investigator Louis Callavini;
- DEA Diversion Investigator Denise Williamson;
- DEA Diversion Investigator William E. Davis; and
- IRS Special Agent Carmine Pellegrino.
The following law enforcement members received an Award for Distinguished Service for their outstanding efforts of the “cross-border fraud” investigation that led to criminal charges being filed against 54 Canadian individuals and 23 domestic defendants since 2007 for various international mass-marketing consumer fraud schemes victimizing senior citizens nationwide of millions of dollars:
- United States Postal Inspection Service Investigative Support Analyst Nicholas M. Alicea;
- United States Postal Inspection Service Investigative Support Analyst Michael C. Hartman;
- United States Postal Inspection Service Investigative Support Analyst David L. Bobersky;
- United States Postal Inspection Service Inspector James F. Wilson; and
- United States Postal Inspection Service General Analyst Sharon R. Miller.
United States Postal Inspector Michael J. Corricelli received an Award for Distinguished Service for his many years of exceptional service to the Middle District in serious child exploitation and drug trafficking investigations.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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U.S. Attorney and Oregon Attorney General Issue Joint Guidance on the Enforcement of Tribal Protection OrdersRead the Press Release
PORTLAND— U.S. Attorney Billy J. Williams and Oregon Attorney General Ellen F. Rosenblum issued joint official guidance today on the enforcement of tribal protection orders.
Tribal protection orders, referred to as foreign restraining orders under state law, are civil orders of protection issued by tribal courts to prevent future domestic violence. State and federal law under the Violence Against Women Act (VAWA) require full faith and credit for these orders, meaning all states must uphold protective orders from any other state and from any tribal nation.
“Protecting public safety and the fair administration of justice requires steadfast partnership among local, state, tribal, and federal law enforcement agencies. When we fail to uphold tribal restraining orders, we leave Native women vulnerable to human trafficking and violence, contributing to the Missing and Murdered Indigenous Women and Persons epidemic,” said U.S. Attorney Williams. “When we grant full faith and credit for tribal restraining orders, we are working collaboratively across jurisdictions to ensure all Oregonians enjoy the same court-ordered protections regardless of who they are, or where they live or travel in the state.”
“We have heard from all levels of law enforcement that there may be confusion nationally and statewide about how to enforce tribal protection orders,” said Attorney General Rosenblum. “We hope that this guidance will help us work together to better protect all victims of domestic violence—especially tribal women who deserve the same protections as other Oregon women. We want to ensure that all law enforcement understands and recognizes what a tribal protection order is and will enforce it.”
The Oregon Department of Justice and U.S. Attorney’s Office will be traveling around the state in March to train law enforcement, prosecutors, advocates, and community members about full faith and credit as part of ODOJ’s RISE program.
A PDF version of today’s memorandum is available on the U.S. Attorney’s Office website at https://www.justice.gov/usao-or/indian-country.
According to findings from the 2010 National Intimate Partner and Sexual Violence Survey published by the National Institute of Justice, 55.5% of Native women have experienced physical violence by an intimate partner in their lifetime, including 8.6% who have experienced domestic violence in the past year. Native women are 1.6 times as likely, compared to Caucasian women, to have experienced domestic violence in the past year.
If you have questions or concerns about the enforcement of tribal protection orders in Oregon or if you are interested in additional training on this topic, please contact Sarah Sabri with the Oregon Department of Justice at [email protected] or Tim Simmons with the U.S. Attorney’s Office for the District of Oregon at [email protected].
U.S. Attorney Announces Tax Charges Against Poughkeepsie Business OwnerRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced federal tax charges against WILLIAM R. GROGG for knowingly and willfully failing to pay over payroll taxes for his company and for corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws. GROGG was presented in White Plains federal court yesterday before U.S. Magistrate Judge Judith C. McCarthy.
U.S. Attorney Geoffrey S. Berman said: “As alleged, William R. Grogg failed to pay over payroll taxes for his company for years, and then lied to the IRS about it. This cost the government hundreds of thousands of dollars in tax revenue. Grogg now faces 18 counts of criminal tax charges, and the possibility of time behind bars.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “As the indictment against Mr. Grogg demonstrates, using employment taxes for personal and business expenses is illegal, and therefore subject to criminal enforcement. Employment tax enforcement is among the IRS’s highest priorities and our Special Agents will continue to vigorously investigate these criminal allegations.”
According to the allegations in the Indictment[1]:
Since at least the late 1980s, GROGG has worked in the printing and publishing industry in and around Poughkeepsie, New York. Over his more than three decades in the industry, GROGG has owned, managed, and/or otherwise had significant control over the financial affairs of a number of printing and publishing companies, including: Hamilton Reproductions, Inc. (“Hamilton Reproductions”), Hamco, which was later called Netpub Corporation (together, “Hamco/Netpub”), Netpublications Inc. (“Netpublications”), and MCA-Netpub (“MCA”). In or around 1994, the IRS assessed a civil penalty of approximately $368,639.93 against GROGG, as a responsible person, for willfully failing to collect, account for, and pay over to the IRS payroll taxes owed by Hamilton Reproductions.
From at least the fourth quarter of 2013 through the fourth quarter of 2017, GROGG was the sole owner, president, and/or controlling officer of Netpublications and MCA, which, at any given time, had approximately 20 to 50 paid employees. As the owner and operator of Netpublications and MCA, GROGG was a responsible person under federal law for collecting, truthfully accounting for, and paying over payroll taxes to the IRS.
GROGG caused Netpublications and, later, MCA to employ a third-party payroll service (the “Payroll Service”), which, among other things, prepared Netpublications’ and MCA’s quarterly payroll tax returns. Those returns were provided to GROGG. Although Netpublications and MCA withheld payroll taxes from employees’ paychecks as directed by the Payroll Service, GROGG failed to pay over the withheld payroll taxes, as well as Netpublications’ and MCA’s matching Social Security and Medicare contributions, to the IRS. Instead, GROGG spent the withheld payroll taxes, which GROGG was required to hold in trust for the United States Government, on personal and business expenses.
In addition, when GROGG was contacted by the IRS in connection with his payroll tax compliance, he made a series of materially false statements to the IRS in writing and during interviews with IRS-CI. These statements included that Netpublications and MCA were originally owned by a deceased Canadian businessman, and that a deceased associate of the Canadian businessman kept certain of Netpublications’ records in a garage until they were destroyed in a flood. These and other false statements that GROGG made were intended to obstruct and impede the IRS.
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GROGG, 69, of Millbrook, New York, is charged with 17 counts of knowingly and willfully failing to pay over Netpublications’ and MCA’s payroll taxes, each of which carries a maximum sentence of five years in prison, and one count of corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws, which carries a maximum sentence of three years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the outstanding investigative work of special agents from IRS-CI. The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorney Benjamin A. Gianforti is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Sentenced in North Texas Multi-Million Dollar Investment Fraud SchemeRead the Press Release
SHERMAN, Texas –Two Texas men have been sentenced to federal prison for an investment fraud scheme in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno today.
Thurman Bryant, III, 46, of Frisco, Texas and Arthur Franz Wammel, 46, of Houston, were convicted by a jury on Apr. 3, 2019, of conspiracy to commit wire fraud and were sentenced to federal prison on Jan. 29, 2020 by U.S. District Judge Amos Mazzant. Bryant was sentenced to 240 months in federal prison and ordered to pay restitution in the amount of $9,103,088.12. Wammel was sentenced to 136 months in federal prison and was also ordered to pay restitution in the amount of $9,103,088.12.
According to information presented in court, the defendants devised and executed an investment fraud scheme that claimed to earn investors a guaranteed minimum 30% annual return on investment. In addition, Bryant promised an investment that would be placed in a secure escrow account, when in fact the money was funneled to Wammel for securities trading and other purposes. Evidence at trial showed that the defendants separately spent money on personal expenses such as home leases, home improvements, car leases, expensive jewelry, and private school tuition, and that defendant Wammel spent a large amount of money on expenses related to a Rolls-Royce, a Ferrari and a Range Rover. Additional evidence showed that the investors contributed over $22 million to the scheme.
Bryant and Wammel were indicted by a federal grand jury on Dec. 13, 2017.
“The defendants’ Ponzi scheme hurt people badly,” said U.S. Attorney Joseph D. Brown. “Many of the victims were friends and family of these men, and the amount of loss was just tremendous. The length of their sentences reflect that.”
"Today’s sentencing sends a strong message to all white collar criminals. The FBI will thoroughly investigate and expose your fraud,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Victims can rest assured that these individuals will be held accountable for their actions.”
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office – Frisco Resident Agency and prosecuted by the United States Attorney’s Office for the Eastern District of Texas.
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Two Previously Deported Aliens Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that two previously deported aliens were indicted separately on January 29, 2020, by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the District including Adams and York Counties.
According to United States Attorney David J. Freed, Jose Garcia-Ceja, age 30, of Mexico, was previously deported from the United States to Mexico in May 2011. He is alleged to have illegally reentered the United States sometime after May 2011, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
Alvaro Hidalgo-Sanchez, age 39, of Mexico, was previously deported from the United States to Mexico in February 2013. He is alleged to have illegally reentered the United States sometime after February 2013, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Garcia-Ceja and Hidalgo-Sanchez face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne Sanderson is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tulsa Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
A Tulsa woman was sentenced today in federal court for conspiring to distribute 500 grams or more of methamphetamine, two counts of possession with intent to distribute methamphetamine, and maintaining a drug involved premises, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Amy Lee Davis, 38, to 210 months in federal prison to be followed by 5 years of supervised release for her role as the primary source of supply in the Tulsa methamphetamine distribution operation.
“Amy Davis was a ‘top-tier’ trafficker who funneled 20 pounds of methamphetamine into Tulsa and the surrounding communities,” said U.S. Attorney Trent Shores. “Meth continues to be the top problem drug for Oklahomans. I’m proud of the agents and prosecutors who shut down a supplier like Davis. The relentless efforts of the DEA, Tulsa Police Department, and Assistant U.S. Attorneys culminated in a just result in the courtroom.”
A jury convicted Davis on Oct. 23, 2019. During the investigation, officers with the Tulsa Police Department’s Special Investigations Division discovered that Davis consistently supplied a group of drug dealers with pound quantities of methamphetamine for distribution and was suspected of routinely traveling to Oklahoma City in order to re-up her supply of the drug. Davis was further found to have maintained a commercial property in Tulsa where she regularly stored and sold the drug.
Davis remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Tulsa Police Department Special Investigations Division and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Joel-lyn A. McCormick, Thomas E. Duncombe, and Vani Singhal are prosecuting the case for the United States. AUSA McCormick serves as the lead attorney for the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force unit.
You can find the trial press release here.
Third Defendant Charged Related to Efforts to Interfere, Obstruct Court in Trial of Peoria Gang MembersRead the Press Release
PEORIA, Ill. – Three individuals have been indicted on felony charges related to efforts to impede the court in the recent trial of members of a Peoria street gang, U.S. v. Eugene Haywood et.al.
Arraignment for Demoney T. Coleman, 21, is scheduled on Feb. 13, 2020, after a grand jury charged him with criminal contempt. The indictment alleges Coleman disobeyed and resisted the court’s order to answer questions directed to him as a government witness during testimony at the trial on Nov. 19, 2019.
Coleman is currently in law enforcement custody, serving a six-year prison term for possession of a stolen semi-automatic handgun by a felon. Coleman’s federal sentence, imposed in July 2019, was ordered to be served consecutive to any sentence imposed in a separate case in Peoria county.
A trial defendant’s mother, Anytia T. Crowe, 35, of the 1400 block of Greenlawn, Peoria, entered a plea of guilty on Jan. 23, 2020, to witness tampering. Crowe admitted that she interfered with the prosecution and trial of Haywood et.al., in which her son, Kenwan Crowe, was a named defendant. Crowe admitted that on Oct. 21, 2019, when the final pre-trial hearing was held, she stood in the entryway of the federal courthouse in Peoria, prior to passing the security desk, and harassed and intimidated witnesses who were under federal subpoena as they checked in for the hearing. Crowe admitted that she told witnesses that they did not have to cooperate and should not cooperate with the government.
At sentencing, currently scheduled on May 21, the government and Crowe have agreed to a sentence of five months in jail, to be followed by three years of supervised release. Crowe has been in the custody of the U.S. Marshals Service since her arrest on Oct. 21, 2019.
Ryan Greenwood, 30, of Peoria, was indicted in December 2019, and charged with perjury. The indictment alleges that on Nov. 18, 2019, while under oath as a witness for the government, Greenwood made false statements.
Greenwood remains on bond pending trial scheduled on April 27, 2020. The offense of perjury is punishable by up to five years in prison and a $250,000 fine.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is conducting the investigations. The government is represented in the case prosecutions by Assistant U.S. Attorneys Douglas F. McMeyer, Darilynn J. Knauss, and Katherine G. Legge.
Tampa Woman Sentenced to More Than Three Years in Federal Prison for Tax Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung today sentenced Derraka Reed to three years and six months in federal prison for theft of government funds and access device fraud in connection with filing fraudulent tax returns. The court also ordered Reed to pay $128,740 in restitution to the IRS.
Reed had pleaded guilty on November 30, 2018.
According to court documents, between 2012 and 2014, Reed filed more than 100 fraudulent tax returns with the IRS, using dozens of stolen identities. Altogether, her fraudulent tax returns claimed more than $580,000 in tax refunds. Reed successfully obtained $128,740 in fraudulent tax refunds.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Tama Man Who Purchased 8 Handguns While A Drug User Sentenced to Federal PrisonRead the Press Release
A man who unlawfully possessed firearms while using drugs was sentenced on January 28, 2020, to 18 months in federal prison.
DeAngelio Noye, age 27, from Tama, Iowa, received the prison term after a September 9, 2019 guilty plea to unlawful possession of a firearm by a prohibited person. Noye admitted to being a marijuana user when in possession of at least 8 firearms.
Noye purchased the firearms between August 2017 and September 2018. Seven of the 8 firearms were 9mm pistols. Information at sentencing indicated that juveniles possessed at least two of the firearms prior to Noye filing a police report indicating that the guns had been stolen. Information at sentencing further showed that, at the time of a search of Noye’s residence, officers found a scale and baggies consistent with the unlawful distribution of drugs.
Noye was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Noye was sentenced to 18 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives 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 its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Noye was released on the bond previously set and is to surrender to the United States Marshal on February 12, 2020.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-078-CJW.
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Staten Island Man Sentenced to Nine Years’ Imprisonment for International Arms Trafficking and Money LaunderingRead the Press Release
Earlier today, in federal court in Brooklyn, Albert Veliu was sentenced by United States District Judge Kiyo A. Matsumoto to nine years’ imprisonment for his role in a money laundering scheme that resulted in the defendant’s purchase and sale of an anti-tank rocket launcher and AK-47s rifles in Kosovo. Veliu pleaded guilty in February 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); Dermot F. Shea, Commissioner, New York City Police Department (NYPD); and Keith M. Corlett, Superintendent, New York State Police (NYSP), announced the sentence.
“The arrest, conviction and today’s sentencing of Veliu mark an important victory for law enforcement in disrupting an international money laundering and arms trafficking network ready, willing and able to provide a pipeline of lethal weaponry to purported drug cartels in Mexico,” stated United States Attorney Donoghue. “Through our partnerships with law enforcement agencies around the world, we will continue to target and dismantle international criminal organizations.” Mr. Donoghue thanked the DEA New York Division, DEA Special Operations Division, DEA Austria Country Office, DEA Croatia Country Office, Internal Revenue Service Criminal Investigation, the New York City Department of Investigation and the Kosovo Police Force for their outstanding cooperation and assistance.
“This sentencing brings to light the multitude of offenses often linked with money laundering including extortion, arms and drug trafficking,” stated DEA Special Agent-in-Charge Donovan. “The casualties of these crimes cross all borders and I applaud the law enforcement agencies involved in the arrest and prosecution of Albert Veliu for their collaboration and partnership.”
“Veliu’s illicit business spanned the globe. By ‘cleaning’ drug money and buying and selling high powered weapons, he was able to create a dangerous and lucrative criminal enterprise,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI’s continued efforts with the DEA and other law enforcement partners allows for the arrest of those who threaten the safety and security of the public both domestically and abroad.”
“This case illustrates the great police work done by the Strike Force, putting another suspect behind bars,” stated NYSP Superintendent Corlett. “The investigation spanned continents, involved rockets, high-powered firearms and a suspect who was prepared to provide deadly, dangerous weapons to criminals. With this sentencing, law enforcement has once again put an end to a violent enterprise, and made our streets safer.”
In October 2017, Veliu and his co-conspirators met with a DEA confidential source (CS), who represented himself to be a narcotics trafficker in need of laundering his illicit drug proceeds through a shell corporation. Veliu agreed to assist the CS in exchange for a commission. Veliu then orchestrated the money laundering scheme by, among other things, exchanging the cash for purportedly “clean” checks made out to the shell corporation. The checks were supported by fraudulent paperwork, including bogus invoices and receipts. Throughout the course of the investigation, the CS gave Veliu approximately $800,000 in purported drug proceeds to be laundered.
Later in the investigation, Veliu informed another DEA confidential source (CS-2) that he had access to firearms in Kosovo and was willing to broker a sale. Veliu and CS-2 agreed that Veliu would purchase and then sell weapons he believed were bound for drug cartels operating in Mexico. After accepting payment for the weapons, Veliu traveled to Kosovo to deliver the firearms to an individual he believed to be a Kosovo-based associate of CS-2. Therafter, on two separate occasions, Veliu and his co-conspirators provided individuals with 14 AK-47s and an M80 Zolja Anti-tank Rocket Launcher equipped with a 64mm rocket. Subsequent search warrants executed by Kosovo police netted additional weapons, ammunition and over 60,000 euros.
The arrest in this case was the result of a long-term investigation by the DEA’s New York Organized Crime Drug Enforcement Strike Force, comprising agents and officers of the DEA, New York City Police Department, Homeland Security Investigations, New York State Police, U.S. Internal Revenue Service Criminal Investigation, U.S. Customs and Border Protection, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Michael T. Keilty is in charge of the prosecution.
The Defendant:
ALBERT VELIU
Age: 37
Staten Island, New YorkSenior Adviser to the Operator of the “Silk Road” Website Pleads Guilty in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ROGER THOMAS CLARK, a/k/a “Plural of Mongoose,” a/k/a “Variety Jones,” a/k/a “VJ,” a/k/a “cimon,” pled guilty today to conspiring to distribute massive quantities of narcotics, a charge arising out of his role as the senior adviser to the owner and operator of the “Silk Road” online illicit black market. During its operation from 2011 until 2013, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute illegal drugs and other illicit goods and services to more than 100,000 buyers, and to launder hundreds of millions of dollars derived from those unlawful transactions. CLARK pled guilty before United States District Judge William H. Pauley III.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Silk Road was a secret online marketplace for illegal drugs, hacking services, and a whole host of other criminal activity. As he admitted today, Roger Thomas Clark was a central figure in helping to lead Silk Road and in advocating violence to protect the site. Clark even went so far as to urge, and facilitate, the attempted killing of a co-conspirator suspected of stealing from Silk Road. Clark’s arrest, extradition from Thailand, and conviction should make it clear that the purported anonymity of the dark web is not a protective shield from prosecution.”
According to the allegations in the Superseding Indictment, court filings, statements made in court, and evidence presented during the 2015 trial of Ross Ulbricht, Silk Road’s founder:
Ulbricht created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement authorities in October 2013. Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet at the time, serving as a sprawling black market bazaar where unlawful goods and services, including illegal drugs of virtually all varieties, were bought and sold regularly by the site’s users. While in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to well over 100,000 buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
Silk Road enabled its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. Silk Road was operated on what is known as “The Onion Router,” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the networks’ users. Silk Road also included a Bitcoin-based payment system that served to facilitate the illegal commerce conducted on the site, including by concealing the identities and locations of the users transmitting and receiving funds through the site.
CLARK – who went by the online nicknames “Variety Jones,” “VJ,” “Cimon,” “Plural of Mongoose,” and “CaptainSargeant” – was described by Ulbricht as a “real mentor” who advised Ulbricht about, among other things, security vulnerabilities in the Silk Road site, technical infrastructure, the rules that governed Silk Road users and vendors, and the promotion of sales on Silk Road, including the sales of narcotics. CLARK also provided advice to Ulbricht on developing a “cover story” to make it appear as though Ulbricht had sold Silk Road. CLARK also assisted with hiring programmers to help improve the infrastructure of, and maintain, Silk Road. CLARK also was responsible for gathering information on law enforcement’s efforts to investigate Silk Road. And CLARK advised Ulbricht on how to protect the Silk Road empire. For instance, when a Silk Road staff member was suspected of stealing $350,000 in Bitcoin from the site, CLARK suggested to Ulbricht that Ulbricht commission a murder-for-hire. Ulbricht took that suggestion. (Ultimately, unbeknownst to both men, the attempted murder-for-hire did not result in any harm to the target.)
CLARK was paid at least hundreds of thousands of dollars for his assistance in operating Silk Road.
CLARK, 56, a citizen of Canada, pled guilty to one count of conspiracy to distribute narcotics, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. CLARK is scheduled to be sentenced by Judge Pauley on May 29, 2020, at 11:00 a.m.
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Mr. Berman praised the outstanding joint efforts of the Federal Bureau of Investigation, Homeland Security Investigations (“HSI”) Chicago-O’Hare, the Drug Enforcement Administration’s New York Field Division, the Internal Revenue Service Criminal Investigation’s New York Field Office, and the New York City Police Department. Mr. Berman also thanked the HSI Attaché Bangkok, Thailand, for its assistance and support. Mr. Berman also thanked the Royal Thai Police and the U.S. Department of Justice’s Office of International Affairs for their support and assistance.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff, Vladislav Vainberg, and Eun Young Choi are in charge of the prosecution.
Reno County to Receive up to $750,000 for Response to Opioid EpidemicRead the Press Release
WASHINGTON– Twenty-one rural American communities that have borne the brunt of the opioid epidemic will receive $14.8 million in funding to develop tailored and innovative responses to gaps in prevention, treatment and/or recovery services for individuals involved in the criminal justice system.
The Rural Responses to the Opioid Epidemic Initiative is co-funded by the Bureau of Justice Assistance (BJA), the Centers for Disease Control and Prevention (CDC) and the State Justice Institute (SJI).
The new initiative will integrate public safety and public health approaches and blend interagency expertise and funding to address the epidemic. It will enable rural areas to implement evidence-based solutions and promising practices in a way that utilizes the unique assets of their communities. Its goal is to reduce opioid overdose deaths in high-risk rural communities, and to support and promote a shared understanding of the patterns and characteristics of local opioid use.
“While no corner of the country has gone untouched by the opioid epidemic, rural America has been hit particularly hard. A challenge of this magnitude requires a response in kind, one that marshals resources, data and innovative approaches in the service of the most effective local responses. The Rural Responses Initiative enables these 21 rural communities to take control of their individual battles against opioid use disorder,” said Principal Deputy Assistant Attorney General Katharine T. Sullivan.
Each site will receive up to $750,000 to establish or enhance public safety, public health and behavioral health collaborations. Sites may also leverage funding to expand peer recovery and recovery support services.
The 21 sites, selected as a result of a competitive, nationwide grant process, represent several regions of the country:
- Arkansas Rural Health Partnership (AR)
- County of Rio Arriba (NM)
- Ellenville Regional Hospital (NY)
- Franklin County Sheriff's Department (MA)
- Grays Harbor Public Health & Social Services (WA)
- Marcum and Wallace Hospital (KY)
- Marshall University Research Corporation (WV)
- Memorial Regional Health (CO)
- Mohave Substance Treatment Education & Prevention Partnership (AZ)
- Northern Kentucky University (KY)
- Northumberland County (PA)
- Porter-Starke Services Inc. (IN)
- Portsmouth City Health Department (OH)
- Prisma Health–Upstate (SC)
- Project Lazarus (NC)
- Reno County Health Department (KS)
- SMA Healthcare, Inc. (FL)
- Mary's Regional Health Center (MN)
- Upper Cumberland Human Resources Agency (TN)
- WestCare Tennessee, Inc. (TN)
- Whitley County Health Department (KY)
The Rural Responses Initiative is the latest demonstration project supported by BJA’s Comprehensive Opioid Abuse Program (COAP), which supports effective local, state and tribal responses to the opioid epidemic.
BJA’s other demonstration projects, which may be found at https://www.coapresources.org/Program/DemoProjects, are:
- ODMAP Statewide Expansion and Response Initiative
- Partnerships to Support Data-driven Responses to Emerging Drug Threats Initiative
- Planning Initiative to Build Bridges Between Jail and Community-Based Treatment for Opioid Use Disorder
BJA, a component of the U.S. Department of Justice’s Office of Justice Programs, helps to make American communities safer by strengthening the nation's criminal justice system. Its grants, training and technical assistance, and policy development services provide state, local and tribal governments with the cutting edge tools and best practices they need to reduce violent and drug-related crime, support law enforcement and combat victimization.
The Centers for Disease Control and Prevention is the leading national public health institute in the United States, and part of the U.S. Department of Health and Human Services.
The State Justice Institute, a non-profit corporation, was established by federal law in 1984 to award grants to improve the quality of justice in state courts and foster innovative, efficient solutions to common issues faced by all courts.
Providence Gang Member Sentenced to 70 Months in PrisonRead the Press Release
PROVIDENCE – An admitted member of the “East B Bop Milla Blood” street gang, who previously served time in state prison on firearm and assault charges and later arrested on federal firearm and drug charges, was sentenced today to 70 months in federal prison.
On March 12, 2019, during a Project Safe Neighborhoods investigation into illegal guns and drug dealing in Providence, members of the Rhode Island ATF Task Force and Providence Police detectives executed a federal court-authorized search of the residence of Damon A. Winslow, 25. During the search, agents and officers seized a fully loaded .45 caliber pistol, more than 150 rounds of assorted ammunition, and approximately 3.5 ounces of marijuana.
Winslow told members of law enforcement that he possessed the firearm because he was a member of a gang, specifically “The Bloods.” He admitted to purchasing the firearm, which was missing its serial number, for approximately $300.
“The backbone of Project Safe Neighborhoods is to identify and eradicate the most pressing violent crime problems in our communities. No one can argue that armed drug dealers are not at the top of that list. We are all safer when they and their guns are off the street, and their firearm and the poison they sell are no longer a threat to anyone” said United States Attorney Aaron L. Weisman.
“I commend the Providence Police Department for their aggressive approach to combat violent crime by targeting gun crime and the individuals whose business it is arm themselves and sell drugs in our neighborhoods. The proof of a safer community lies in the numbers. The number of violent crimes committed with the use of a firearm in Providence is down while Providence Police continue to take more and more illegal guns off the street.”
“The Providence Police Department, in cooperation with our federal partners, have taken an aggressive stance regarding firearms used in commission of a crime. Over the past 10 years, the Providence Police have seized approximately 130 firearms per year, or removed one gun from the streets every three days,” said Providence Police Department Colonel Hugh T. Clements, Jr. “As a result, we are seeing fewer firearms used in both robbery and aggravated assault. In 2019, robbery with a firearm was down 8% and aggravated assault with a firearm dropped 18% compared with 2018. The number of persons shot in the city has declined from 110 in 2011 to only 35 last year. This is the lowest number of shooting victims since 2006. We will continue to work together with our federal and community partners going forward to keep illegal weapons and drugs off the streets and remove dangerous criminals from within our community.”
"ATF will continue working with our local, state and federal law enforcement counterparts to vigorously combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade," said Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division.
Winslow was previously convicted in Rhode Island state court in May 2017, on a felony charge of carrying a pistol without a license. He was arrested again in January 2018, for violating the terms of his probation when, among other things, he committed simple assault and resisted arrest following a fight involving rival gang members at the Garrahy Judicial Complex in Providence. He was convicted of simple assault and resisting arrest, and sentenced to 10 months incarceration at the ACI.
In this most recent firearm and drug trafficking case, Winslow pleaded guilty on October 24, 2019, to possession of a firearm in furtherance of drug trafficking and possession with intent to distribute marijuana.
Winslow was sentenced today to 70 months in federal to be followed by 3 years’ supervised release.
The sentence, imposed by U.S. District Court Judge William E. Smith, is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady, and Providence Police Chief Hugh T. Clements, Jr.
This Project Safe Neighborhoods case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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.
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Philadelphia Tax Preparer Sentenced to Two Years in Prison for Causing Tax Loss of over $2 MillionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Abdoulaye Coumbassa, 44, of Philadelphia, PA was sentenced to 24 months’ imprisonment, one year supervised release, and ordered to pay $224,478 in restitution to the IRS by United States District Court Judge R. Barclay Surrick for preparing and filing false tax returns for clients of his tax preparation business, Abbi Tax Services and Accounting, in Philadelphia.
The defendant pleaded guilty in October 2019 to the offense of aiding and assisting in the preparation of false returns, and agreed with an estimate of the tax losses he caused exceeding $2 million. From at least 2012 to 2015, Coumbassa prepared and filed fraudulent Income Tax Returns, and related forms and schedules, on behalf of his clients. Coumbassa primarily falsified these returns by attaching false ‘Schedule C’ forms to the clients’ returns. These ‘Schedule C’ forms falsely claimed that the client had a business that lost money, and the inclusion of these false Schedules offset the clients’ taxable income -- thereby either inflating the refunds his clients would otherwise be owed, or causing entitlement to refunds where taxes should have been owed.
“Tax preparers are supposed to be part of the gatekeeping system that ensures that our tax laws are followed. Here, the defendant did just the opposite and planned a massive fraud,” said U.S. Attorney McSwain. “When our tax laws are ignored, especially to this extent, we all lose. The defendant not only broke the law, but he also victimized individuals who simply wanted to do the right thing and pay their taxes – and they are now working to get their fiscal lives back in order. This sentence should send a message to tax cheats: don’t do it, or else my Office will investigate your crimes and you may soon be headed to jail.”
“Tax refunds should only be issued to taxpayers who are entitled to them,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Falsifying a tax return to obtain or bolster a tax refund is a crime; one that the courts take very seriously, as evidenced by the sentence Mr. Coumbassa received.”
The case was investigated by the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Bea L. Witzleben and Department of Justice Tax Division Trial Attorney Sarah Ranney.
Philadelphia Tax Preparer Sentenced to Prison for False ReturnsRead the Press Release
A former Philadelphia tax return preparer was sentenced to 24 months in prison today for aiding in the preparation of a false client tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
According to court documents and statements made in court, Abdoulaye Coumbassa owned and operated Abbi Tax Services and Accounting (Abbi Tax). From at least 2012 to 2015, Coumbassa prepared and filed fraudulent tax returns and related forms and schedules on behalf of his clients. By reporting fictitious businesses with false business losses, Coumbassa sought inflated refunds for his clients from the Internal Revenue Service (IRS). At times, Coumbassa included the fake business losses without the client’s knowledge. In total, Coumbassa caused a tax loss of $2.1 million to the IRS.
In addition to the term of imprisonment, U.S. District Judge R. Barclay Surrick ordered Coumbassa to serve one year of supervised release and to pay approximately $250,000 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McSwain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Bea Witzleben, and Trial Attorney Sarah Ranney 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.
Penn Hills Man Pleads to Drug and Firearms Offenses in Project Safe Neighborhoods CaseRead the Press Release
PITTSBURGH – A former Allegheny County resident pleaded guilty in federal court today to violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Antwon Shamar Bonner, age 21, formerly of Penn Hills, pleaded guilty to possessing with intent to distribute a quantity of heroin, a Schedule I controlled substance, and to possessing firearms in furtherance of that drug trafficking crime, before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that on July 12, 2019, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives served a search warrant at the Defendant’s residence in Penn Hills, Allegheny County. There, agents located approximately 36 "bricks" (constituting approximately 1,800 individual dosage units) containing mixtures of both heroin and fentanyl, which are scheduled controlled substances under federal law. In connection with his guilty plea, the Defendant admitted to possessing those narcotics with the intent to distribute them. In addition to those narcotics, agents seized approximately $2,000 in U.S. currency, four loaded and operational firearms, one of which had an obliterated serial number, assorted ammunition, and high-capacity firearms magazines. In connection with his plea, the Defendant admitted that he possessed those firearms in furtherance of the drug trafficking crime charged in the Indictment.
Judge Horan scheduled sentencing for April 23, 2020 at 1:00 p.m. The Court directed that Mr. Bonner remain in the custody of the United States Marshall, where he has been held following his arrest by ATF agents on July 12, 2019. The law provides for a total sentence of not less than five (5) years and up to life in prison, a fine not to exceed $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Mr. Bonner.
This case was brought as part of Project Safe Neighborhoods (PSN), 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.
Owner of Greensboro Mental Health Services Provider Sentenced to Prison, Ordered to Pay $179,547 for Not Filing Tax Returns for Three YearsRead the Press Release
GREENSBORO, N.C. - A Guilford County businessman was sentenced to six months in federal prison on January 28, 2020, for failing to file a federal tax return, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Willie Lee Cole, Jr., owned and operated “Chris’s Rehablative [sic] Services,” a mental health services provider in Greensboro, North Carolina. From 2013 through 2015, Cole did not file personal tax returns even though he earned hundreds of thousands of dollars in income during that time.
In addition to the term of imprisonment, U.S. Magistrate Judge L. Patrick Auld ordered Cole to serve a one-year term of supervised release and pay $179,547 in restitution to the United States.
U.S. Attorney Martin commended special agents of IRS - Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Operators of Veterinary Clinic Charged with Federal Tax ViolationsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Karin Breitlauch, age 56, of Saylorsburg, Pennsylvania and Linda Breitlauch, age 62, of Stroudsburg, Pennsylvania, were indicted on January 28, 2020, by a federal grand jury on criminal tax charges.
According to United States Attorney David J. Freed, the indictment alleges that Karin Breitlauch, a veterinarian and owner of Creature Comfort Veterinary Services and Linda Breitlauch, the Comptroller for the veterinary practice, withheld federal taxes from their employees’ paychecks but failed to turn the withholdings over to the Internal Revenue Service for tax quarters in 2014-2016.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Ohio man sentenced for his role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Diego L. Hansard, of Canal Winchester, Ohio, was sentenced today to 121 months incarceration for his role in a cocaine and heroin distribution operation that spanned two states, U.S. Attorney Bill Powell announced.
Hansard, also known as “Rico,” age 33, pled guilty to one count of “Maintaining a Drug-involved Premises” in November 2019. Hansard admitted to maintaining a place at 4335 Jacob Street, Wheeling, West Virginia, to distribute cocaine, cocaine base, and heroin from April 2018 to September 2018 in Ohio County.
Assistant U.S. Attorneys Stephen L. Vogrin and Danae DeMasi-Lemon prosecuted the case on behalf of the government. The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. District Judge John Preston Bailey presided.
Ocala Convicted Felon Pleads Guilty to Federal Firearm OffenseRead the Press Release
Ocala, Florida – Kwasi Francis (29, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Francis had been indicted on July 10, 2019.
According to court documents, on May 7, 2019, local law enforcement arrested Francis on unrelated criminal charges. While he was being processed at the Marion County Jail, booking staff discovered that Francis had concealed a loaded 9mm firearm between the multiple pairs of pants that he was wearing. Francis, who has prior felony convictions for burglary and heroin distribution, is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Ocala Police Department, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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. 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.
New Orleans Man Pleads Guilty to Firearms and Drug ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that TERRENCE ROLLINS, age 40, of New Orleans, pleaded guilty on January 28, 2020 to a Superseding Indictment charging him with possession with intent to distribute heroin, cocaine base, and cocaine hydrochloride, and possession of the aforementioned drugs in furtherance of drug trafficking crimes. United States District Court Judge Greg G. Guidry will sentence ROLLINS on May 5, 2020.
According to court documents, members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the New Orleans Police executed a search warrant at ROLLINS Washington Avenue residence after receiving information from concerned citizens that illegal narcotics were being sold at the residence by ROLLINS. In August 2018, law enforcement executed the search warrant and located numerous controlled substances that included crack cocaine, powder cocaine and approximately 24.4 grams of heroin inside of the residence. Additional items of drug paraphernalia were also located inside of the residence. In addition to narcotics, seven firearms including handguns and high-powered rifles, and various types of ammunition were also located.
For the drug violations, ROLLINS faces a maximum sentence of 20 years of imprisonment, a fine of up to $1,000,000.00, a period of supervised release of at least 3 years, and a mandatory special assessment of $100.00. For the firearms violation, ROLLINS faces a mandatory minimum sentence of 5 years of imprisonment and a maximum sentence of life imprisonment. Following this sentence, ROLLINS will be placed on supervised release for a period of up to 5 years, and will be fined up to $250,000.00. A mandatory special assessment fee of $100.00 will be imposed.
ROLLINS’s case has been designated as a Project Safe Neighborhoods (PSN) case. 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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Multi-Kilogram Heroin and Cocaine Dealer Sentenced to PrisonRead the Press Release
NEWPORT NEWS, Va. – A Hampton woman was sentenced today to 10 years in prison for conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.
According to court documents, Kimberly Massenburg, 45, served as a go-between for a kilogram weight dealer of heroin and a kilogram weight dealer of cocaine. The two dealers would exchange tens of thousands of dollars’ worth of cocaine and heroin through Massenburg at a time. In October 2018, Massenburg was arrested in Hampton after she was found in possession of a kilogram of cocaine. After being released on bond, Massenburg kept in contact with both dealers and organized a meeting between them so that they could continue to exchange drugs directly with one another.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Cookout. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Steve R. Drew, Chief of Newport News Police; Colonel Gary T. Settle, Virginia State Police Superintendent; and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys Kevin P. Hudson, Amy E. Cross, and Peter G. Osyf 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. 4:19-cr-047.
Mount Holly Woman Is Sentenced to More Than Four Years in Prison for $1 Million Car Loan SchemeRead the Press Release
CHARLOTTE, N.C. – Kimberlie L. Flemings, 51, of Mount Holly, N.C., was sentenced today to 57 months in prison and two years of supervised release, for her role in a $1 million fraudulent car loan scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad Jr. also ordered Flemings to pay more than $600,000 in restitution.
In October 2018, a federal jury convicted Flemings of conspiracy to commit wire and bank fraud, wire fraud affecting financial institutions, and multiple counts of financial institution fraud.
Two of Flemings’s co-conspirators, Stanley Reginald Barron, and Brian Lyles, previously were sentenced to 18 months and 15 months in prison, respectively, for their involvement in the scheme.
According to today’s sentencing hearing, filed court documents, and evidence presented at Flemings’s trial, from at least 2012 to 2015, Flemings, Barron, Lyles, and others submitted dozens of fraudulent automobile and personal loan applications in their own names, as well as the names of more than 30 other individuals, to at least 19 banks and credit unions. As part of the scheme, loan applications were submitted in the name of a deceased individual and a disabled, elderly veteran. To facilitate the fraud, the co-conspirators created fake automobile dealerships that purported to be the sellers of vehicles purchased with the fraudulent loans. The co-conspirators also set up bank accounts, websites, and addresses associated with these fake automobile dealerships, and created fictitious purchase orders, which were submitted to the financial institutions as part of the loan application. As a result of the fraudulent applications, the co-conspirators obtained more than $1 million in fraudulent loan proceeds.
Flemings, Barron and Lyles generally deposited the fraudulently obtained checks from the financial institutions into accounts Barron controlled. After keeping a portion of the proceeds, Barron distributed the rest to Flemings, Lyles, and others. According to court records, the majority of the loans defaulted, causing losses to the defrauded financial institutions. To cover up the fraud, the co-conspirators made false statements to the banks and credit unions that attempted to collect on the debts, including that borrowers had been the victims of identity theft and that they had not authorized the loans.
In announcing Fleming’s sentence, Judge Conrad highlighted Flemings’ “many acts of fraudulent conduct” over the course of several years and emphasized the need to further the sentencing goals of general and specific deterrence and to protect the public from future crimes.
In making today’s announcement U.S. Attorney Murray thanked the United States Postal Inspection Service (USPIS) and the Office of Inspector General of the Federal Housing Finance Agency for their investigation of the case, and recognized the North Carolina Division of Motor Vehicles for their assistance.
Assistant U.S. Attorneys Daniel Ryan and Taylor J. Philips of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Moss Point Man Pleads Guilty to Possession with Intent to Distribute Heroin and MethamphetamineRead the Press Release
Gulfport, Miss. – Raphael Donzell Johnson, Jr., 40, of Moss Point, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute heroin and methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
Johnson will be sentenced by Judge Guirola on April 29, 2020 at 10:30 a.m. He faces a maximum penalty of 20 years in prison and up to $1,000,000 in fines.
In May 2019, an individual made two purchases of heroin and methamphetamine from Johnson. In June, agents executed a search warrant on his Moss Point residence where they found over 400 grams of heroin, methamphetamine and two firearms.
The Mississippi Bureau of Narcotics and the Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Montana Native Women’s Coalition Board executive director charged in theft of grant fundingRead the Press Release
BILLINGS --The executive director of the Montana Native Women’s Coalition, along with two board officials, were charged today in a scheme to steal federal grant money to make unapproved trips to Las Vegas and to receive other unauthorized benefits, U.S. Attorney Kurt Alme said.
Appearing before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty to a superseding indictment was Sheryl Lynn Lawrence, 43, of Colstrip, Meredith McConnell, 50, of Busby, and Barbara Mary Daychief, 43, of Browning. All defendants were released pending further proceedings.
Lawrence, who was the executive director of the Coalition, was charged as a new co-defendant in the superseding indictment. Lawrence is charged with four counts, including theft from a program receiving federal funding, wire fraud, false claims act and misprision of a felony.
McConnell, who was the Coalition’s chairwoman and executive director for Healing Hearts, and Daychief, who was the Coalition’s treasurer and a board member, were charged in the initial indictment.
McConnell is charged with four counts, including theft from a program receiving federal funding, wire fraud, false claims act and misprision of a felony.
Daychief is charged with six counts, including theft from a program receiving federal funding, wire fraud, three counts of false claim act and misprision of a felony.
If convicted of the most serious crime, the defendants face a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.
The indictment accuses the three defendants of stealing from the Lame Deer-based coalition from about August 2017 until March 2018. The Coalition’s purpose is to help Native American victims of domestic and sexual violence. In addition, the Coalition brings together Native American leaders and state representatives who administer state and federal funds for domestic violence and programming to improve resources for Native women and tribal programs.
The Coalition receives funding from the U.S. Department of Justice’s Office on Violence Against Women, which provides grants for victim services. From October 2017 to September 2018, the OVAW awarded the Coalition $318,008 in federal funds.
In March 2017, the Coalition’s previous executive director, Toni Louise Plummer-Alvernaz, pleaded guilty to fraud for stealing from the Coalition. Plummer-Alvernaz was sentenced to one year and one day in federal prison and ordered to pay $246,024 restitution.
Two months later, the First Nations Development Institute held a two-day training for the Coalition in Billings, where it taught board members, including McConnell and Daychief, about conflicts of interest, whistleblower policies, code of ethics and financial oversight. The Coalition also received a special condition about reporting fraud in its September 2017 award package.
The indictment alleges Lawrence, McConnell and Daychief committed travel fraud, received travel payments on non-approved trips, including to Las Vegas, received and authorized double-payment for “days in service,” authorized unapproved construction projects and took other benefits they were not entitled to receive.
Assistant U.S. Attorneys Ryan Weldon and Bryan Dake are prosecuting the case, which was investigated by the Department of Justice’s Office of the Inspector General.
Pacer case reference. 19-90. The progress of the case may be monitored through the U.S. District Court calendar and the PACER system. To establish a PACER account, 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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Mexican National Sentenced to 600 Months for Sex Crimes Against a ChildRead the Press Release
A Mexican national was sentenced Thursday to 600 months in federal prison for the sexual exploitation of a child and for possession of child pornography, announced U.S. Attorney Trent Shores.
Upon release from prison, Rogelio Hernandez Rodriguez, 30, will be placed on supervised release for life and required to register as a sex offender. When handing down the sentence, U.S. District Judge Gregory K. Frizzell noted that the law is insistent that such acts are severely punished.
“Rogelio Hernandez was a wolf in sheep’s clothing. He will now spend the next 50 years in prison for his crimes against a child victim,” said U.S. Attorney Trent Shores. “Investigators, attorneys, and victim advocates are committed to providing justice and healing resources for this young child. Our Project Safe Childhood initiative gets child predators off the streets, and it will continue full speed ahead.”
A federal jury convicted Hernandez on Oct. 24, 2019, of exploiting the minor victim and inducing the victim to engage in sexually explicit conduct for the purpose of producing child pornography. Rodriguez was further found guilty of knowingly possessing child pornography. The 524 sexually graphic images and videos depicted the sexual abuse of the prepubescent victim and were stored on hard drives and multiple SD cards.
"Rogelio Hernandez willfully preyed upon a child victim and exploited their innocence," said Melissa Godbold, Special Agent in Charge of the FBI's Oklahoma City Field Office. "The FBI and our law enforcement partners will continue to aggressively investigate child predators who sexually exploit and abuse young victims."
"The safety of children is priority for our officers here at the Wagoner Police Department. No child should have to endure sexual abuse. Our office initially investigated Hernandez's crimes, and we are thankful for today’s sentence," said Lt. Detective Benjamin Blair of the Wagoner Police Department.
Hernandez remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Wagoner Police Department and FBI investigated the case. Assistant U.S. Attorneys Reagan V. Reininger, Dennis A. Fries and Shannon Cozzoni prosecuted the case.
Melrose Felon Sentenced to 57 Months for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Victor Williams, 41, Melrose, Wisconsin, was sentenced on Tuesday, January 28, by U.S. District Judge William M. Conley to 57 months in federal prison for being a felon in possession of a firearm. Williams pleaded guilty to this offense on November 13, 2019.
On July 2, 2019, agents executed a search warrant at Williams’ residence outside of Melrose. In the defendant’s room, officers found a 9 mm Ruger handgun and some Remington ammunition. The defendant was later interviewed and said the firearm was his and that he had it for protection. Williams had previously been convicted of multiple drug felonies.
In sentencing the defendant, Judge Conley stated that having a loaded firearm as part of the drug trade created a dangerous situation, and expressed hope that the sentence would be a wake-up call for the defendant.
The charge against Williams was the result of an investigation conducted by the Tomah Police Department, West Central Metropolitan Enforcement Group, Jackson and Monroe County Sheriffs’ Offices, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative, the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Medical Clinic Worker Pleads Guilty to Aggravated Identity Theft and Wire FraudRead the Press Release
Ocala, FL – Stacey Lavette Hendricks (49, Leesburg) today pleaded guilty to aggravated identity theft and wire fraud. She faces a maximum penalty of 20 years in federal prison for the wire fraud offense, to be followed by a mandatory consecutive term of 2 years’ imprisonment for the identity theft offense. A sentencing date has not yet been set.
According to the plea agreement, Hendricks worked administrative jobs at several Florida medical clinics. She used these jobs to gain access to patient medical records to obtain patients’ birthdates and Social Security numbers. She then sold the stolen identities to others for cash, or used them herself to defraud businesses. In May 2019, Hendricks unwittingly sold stolen patient identities to an undercover law enforcement officer. When agents searched her home and car, they located 113 distinct sets of identities that had been stolen from clinic patients.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
Man Sentenced to 17 Years for Gun Crimes Under Project GuardianRead the Press Release
A firearms trafficker was sentenced to 17 years in federal prison after authorities tracked him down following an armed robbery, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The woman who acted as his getaway driver him was sentenced this week to five years in federal prison.
Jesse Bell, 26, pleaded guilty in July to being a felon in possession of a firearm, interference with commerce by robbery, and brandishing a firearm during a crime of violence.
Cierra Washington, 27, pleaded guilty in September to interference with commerce by robbery.
In plea papers, Mr. Bell – a formerly convicted felon – admitted that he and a coconspirator robbed a Valero gas station at gunpoint in June.
A store clerk, who was struck in the head with a pistol during the altercation, slipped a tracking device into the cash he handed over to Mr. Bell. Law enforcement used it to locate the car in which they fled, which led police on a high speed chase until hitting a curb.
Inside the truck, officers found a bag filled with the cash and tracker from the robbery as well as two firearms and an identification card belonging to Mr. Bell.
Police apprehended Ms. Washington, who was pregnant at the time of the robbery, immediately after she jumped out of the driver’s seat. They apprehended Mr. Bell weeks later.
At Mr. Bell’s sentencing hearing, the prosecutor revealed that despite the probation against convicted felons possessing firearms, he sold an undercover agent several firearms over the course of a few months.
“This case clearly demonstrates violent offenders shouldn’t be allowed to carry firearms – much less sell them,” said U.S. Attorney Nealy Cox. “The Northern District of Texas, working hand-in-hand with ATF, is committed to prosecuting gun crimes under Project Guardian, the Attorney General’s gun violence reduction initiative.”
“ATF has made firearms trafficking and keeping illegal firearms out of the hands of violent offenders its top priority in the Dallas metroplex. This demonstrates the level of violence that several individuals can cause within our communities. Dallas is safer with them behind bars,” stated ATF Special Agent in Charge Jeffrey C. Boshek II.
The case was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation with assistance from the Mesquite Police Department. Assistant U.S. Attorney Cara Foos Pierce is prosecuting the case.
Man Pleads Guilty to Selling Drugs on Dark WebRead the Press Release
RICHMOND, Va. – A former Richmond man pleaded guilty today to distribution of drugs similar to fentanyl.
According to court documents, Mark Faulkner, 36, was identified as part of a multi-agency federal investigation into illegal drug sales on “dark web” market places. Marketplaces on the dark web, like AlphaBay, Dream, and Hansa, function as a place where a wide variety of illegal goods and services, including narcotics, firearms, child pornography, stolen credit card numbers, and counterfeit identity documents, can be bought and sold with greater anonymity than on the traditional Internet.
In 2017, investigators with HSI and USPIS conducted online undercover operations targeting the importation and distribution of drugs on these dark web marketplaces. In addition to making covert online purchases of drugs, investigators also operated a cash-for-Bitcoin exchange business, through which they received Bitcoin from drug vendors in return for bulk cash that investigators shipped back to the drug vendors as part of the investigative process.
Faulkner used the vendor name CHANG1927 to advertise Adderall and fentanyl products on multiple dark markets. Investigators identified Faulkner through Bitcoin exchange transactions and three purchases of drugs that were advertised as fentanyl. Forensic testing later determined that the substance was actually cyclopropyl fentanyl, an analogue of fentanyl. Controlled substance analogues have chemical structures that are substantially similar, and have similar effects on the central nervous system as the controlled substances.
Faulkner pleaded guilty to distribution of a controlled substance analogue and faces a maximum penalty of 20 years in prison when sentenced on April 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Brian R. Hood is 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. 3:19-cr-177.
Madison High School Teacher Charged with Attempting to Produce Child PornographyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, and Wisconsin Attorney General Josh Kaul announced today the unsealing of an indictment charging David M. Kruchten, 37, Cottage Grove, Wisconsin, with attempting to produce child pornography. The indictment was returned yesterday by a federal grand jury, sitting in Madison, and was unsealed after Kruchten was arrested earlier today.
The indictment charges Kruchten with seven counts of attempting to use a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. The indictment alleges that he attempted to produce the child pornography in Wisconsin using hidden recording devices on October 27, 2019, and on January 20, 2019.
Kruchten, a teacher at Madison East High School, was arrested this morning at his home. He will make an initial appearance in U.S. District Court in Madison today.
“My office is committed to vigorously investigating those who target children and prosecuting them to the fullest extent of the law,” said U.S. Attorney Blader.
“This indictment alleges criminal conduct that is an unconscionable betrayal of trust,” said Attorney General Kaul. “Thank you to everyone whose hard work resulted in today’s arrest. We will continue working to ensure that there is full accountability for the crimes alleged in this case.”
If convicted, Kruchten faces a mandatory minimum penalty of 15 years and a maximum penalty of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, the Minneapolis Police Department, and the Cottage Grove Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Longtime Fugitive Sentenced for Methamphetamine ChargeRead the Press Release
United States Attorney Joe Kelly announced that on January 30, 2020, Mario Trejo Flores, 45, of Lincoln, was sentenced to 11 years and three months in prison by Senior United States District Judge Richard G. Kopf for possession with intent to distribute methamphetamine and 10 years in prison for failure to appear. Those sentences will be served concurrently (at the same time). There is no parole in the federal system. Following the prison terms, Trejo Flores will serve four years on supervised release. However, he is likely to be deported to Mexico upon completion of his prison sentence. Trejo Flores was also ordered to forfeit $611.00 to the United States of America and pay $200 in special assessments (court costs).
On November 7, 2010, Lincoln narcotics officers conducting surveillance on the residence of a known drug dealer saw Trejo Flores leave that location in a pickup truck. Trejo Flores was stopped for a traffic infraction. Upon contact with officers, he refused to obey officers’ commands and show his hands. After a scuffle with officers, Trejo Flores was searched, and officers found a small amount of methamphetamine in a cigarette pack and a box-cutter knife in his pockets. Officers found approximately 10 grams of pure methamphetamine, multiple baggies, a digital scale, suspected drug transaction records and $611 in cash in the pickup.
Trejo Flores pled guilty to possession with intent to distribute five grams or more of methamphetamine in September of 2011. He was scheduled for sentencing on December 16, 2011, but he failed to appear. In May of 2012, an additional charge of failure to appear was filed. Trejo Flores remained a fugitive for almost eight years until his arrest on October 9, 2019.
This case was investigated by the Lincoln/Lancaster County Drug Task Force and the United States Marshals Service.
Leader of prescription fraud ring sentenced to over 3 years in federal prisonRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Brandon Fuller, 27, of Chicago, was sentenced to 40 months in federal prison, by U.S. District Judge James R. Sweeney II, after having pleaded guilty to charges of conspiracy to acquire controlled substances by misrepresentation, conspiracy to commit identification document fraud, and aggravated identity theft.
“Addressing the opioid epidemic is a top priority for the Department of Justice and the U.S. Attorney’s Office,” said Minkler. “We intend to prosecute fully, those individuals who are fraudulently obtaining prescription drugs, and selling them. Too many lives and families are affected and destroyed daily due to opioid drug abuse.”
Brandon Fuller was the leader of a conspiracy to obtain controlled substances – including oxycodone and promethazine – through fraudulent prescriptions and counterfeit driver’s licenses. At his direction, fellow Chicago residents and co-defendants James Trotter, 30, Dazhona Hodge, 24, and Jessica Chevere, 31, obtained and used numerous doctors’ names, DEA registration numbers, and medical license numbers without authorization in order to create fraudulent prescriptions. In addition, the defendants obtained and used counterfeit identifications, including driver’s licenses, together with the fraudulent prescriptions, to obtain controlled substances from pharmacies located in various states. In 2018 and 2019, Fuller and his co-defendants traveled throughout Indiana, including in the Indianapolis area, as well as to other states, to fill fraudulent prescriptions for oxycodone and other controlled substances, together with counterfeit driver’s licenses.
Upon the execution of multiple search warrants, federal agents seized and searched laptops, phones, and electronic accounts from the Fuller, Trotter, and Hodge. The electronic devices contained templates for fraudulent prescriptions, pictures of fraudulent prescriptions, templates for counterfeit driver’s licenses, pictures of counterfeit driver’s licenses, and other evidence showing the production of both fraudulent prescriptions and counterfeit IDs. Fuller’s laptop alone contained information regarding over 150 fraudulent prescriptions for controlled substances between February 2018 and March 2019.
This case was investigated by the Drug Enforcement Administration, with assistance from the Indianapolis Metropolitan Police Department, Indiana State Police, Federal Bureau of Investigation, and the Marion County Prosecutor’s Office.
“The sentencing of Mr. Fuller was just and necessary for the citizens of Indiana,” said DEA Indianapolis District Office Assistant Special Agent in Charge, Michael Gannon. During this high level investigation, Mr. Fuller was identified as a ring leader who manufactured and produced fraudulent prescriptions to multiple states, to include, Indiana, Illinois, Michigan, and Wisconsin. Throughout the course of this investigation, agents identified numerous physicians that Mr. Fuller victimized so he and his associates could illegally obtain Oxycodone, Adderall, and Promethazine with Codeine from pharmacies throughout the United States. In addition, Mr. Fuller conducted these illegal activities while he was on house arrest for previously manufacturing fraudulent prescriptions.”
“Drug trafficking rings like Mr. Fuller’s have been a major concern to law enforcement because they utilize any means necessary to take advantage of physicians and pharmacies in order to obtain controlled substances. DEA will continue to utilize all available resources to investigate and arrest offenders like Mr. Fuller and his associates who prey on people with substance abuse issues. DEA commends the outstanding work that was done by the United States Attorney’s Office, Southern District of Indiana, and our federal, state and local counterparts,” said Gannon.
According to Assistant United States Attorney Cindy J. Cho, who prosecuted this case for the government, Fuller will serve three years of supervised release following his prison sentence. His co-defendants have all filed plea agreements in this case.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to working with our law enforcement partners to target and prosecute or pursue civil remedies against those doctors, pharmacies, and medical providers who are furthering the opioid epidemic by illegally diverting opioids for their own profit, as well as those individuals who divert such drugs through robbery. The office is also committed to investigating and prosecuting those individuals engaged in fraudulent activity involving the use of bogus devices and identity fraud. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 3.6 and 4.5.
Laurel meth trafficker sentenced to 10 years in prisonRead the Press Release
BILLINGS—A Laurel man was sentenced today to 10 years in prison and five years of supervised release for conviction on drug trafficking crimes after law enforcement officers found methamphetamine in a motel room he had occupied, U.S. Attorney Kurt Alme said.
William Anthony Rogers, 30, pleaded guilty in September to conspiracy to possess with intent to distribute meth and to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court records that Billings Police officers were dispatched to the Boothill Inn in Billings on July 16, 2018 because two men were passed out in a motel room after check out and could not be awakened. One of the men woke up as officers entered the room and grabbed a meth pipe on a night stand. The second man, identified as Rogers, then woke up. Although officers saw pills and paraphernalia in plain view, they released both men pending arrest warrants because the jail was too full to accept new inmates.
After the men left, the officers looked around the room, found a silver briefcase, opened it and saw what appeared to be a large amount of meth. Officers called the Billings drug task force, which got a search warrant for the room. During the search, officers found about six ounces of meth in the briefcase and a 9mm handgun in a separate locked case. Surveillance video from the motel showed Rogers carrying the briefcase that contained the meth.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI task force.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Last defendant convicted in Stanford International Bank $7 billion investment fraud schemeRead the Press Release
HOUSTON – The former chief of Antigua’s Financial Services Regulatory Commission (FSRC) has pleaded guilty for his role in connection with the Stanford International Bank (SIB) Ponzi scheme.
Leroy King, 74, of Dickerson Bay, Antigua, was the last remaining defendant in the SIB scheme. Today, he pleaded guilty to one count of conspiracy to obstruct justice and one count of obstruction of justice for his role in obstructing the Securities and Exchange Commission (SEC) investigation into SIB. He was extradited to the United States in November 2019.
King is a dual citizen of the United States and Antigua. Beginning in approximately 2002, he served as the administrator and CEO of the FSRC, an agency of the Antiguan government. As part of his duties, he was responsible for Antigua’s regulatory oversight of Stanford International Bank Limited’s (SIBL) investment portfolio, including review of SIBL financial reports and responses to foreign regulators’ requests, such as the SEC, for information and documents about SIBL’s operations.
In or about 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG) and made official inquiries with the FSRC regarding the value and content of SIBL’s purported investments. From 2005 through February 2009, Stanford, James Davis, King and others conspired to obstruct the SEC’s investigation of SFG, SIBL and their related entities. From at least 2003 through February 2009, Stanford made regular secret corrupt payments of thousands of dollars in cash and gifts to King in order to obtain his assistance in hiding the truth about SFG and SIBL from the SEC and other regulatory agencies.
Over the course of the conspiracy, Stanford’s cash payments to King totaled approximately $520,963.87. Stanford also provided King tickets to Super Bowl XXXVIII in Houston, Texas (2004) and Super Bowl XL in Detroit, Michigan (2006). Stanford also provided King with repeated flights on private jets Stanford or SFG entities owned.
King later denied the SEC’s request for help and wrote that the FSRC “had no authority to act in the manner requested and would itself be in breach of law if it were to accede to your request.” In reality, the FSRC did have this authority and failed to exercise such because of the payments and other benefits Stanford gave to King.
A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from three to 20 years in federal prison.
U.S. District Judge David Hittner accepted the plea today and set sentencing for April 24. At that time, King faces up to five years in federal prison and a $250,000 maximum fine on each count.
The FBI, IRS - Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney John Pearson and Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section are prosecuting the case.
The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.
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.
Last Defendant Convicted in Stanford International Bank $7 Billion Investment Fraud SchemeRead the Press Release
The former chief of Antigua’s Financial Services Regulatory Commission (FSRC) has pleaded guilty for his role in connection with the Stanford International Bank (SIB) Ponzi scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement.
Leroy King, 74, of Dickerson Bay, Antigua, was the last remaining defendant in the SIB scheme. Today, he pleaded guilty to one count of conspiracy to obstruct justice and one count of obstruction of justice for his role in obstructing the Securities and Exchange Commission (SEC) investigation into SIB. He was extradited to the United States in November 2019.
King is a dual citizen of the United States and Antigua. Beginning in approximately 2002, he served as the administrator and CEO of the FSRC, an agency of the Antiguan government. As part of his duties, he was responsible for Antigua’s regulatory oversight of Stanford International Bank Limited’s (SIBL) investment portfolio, including the review of SIBL financial reports and the response to requests by foreign regulators, including the SEC, for information and documents about SIBL’s operations.
In or about 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG) and made official inquiries with the FSRC regarding the value and content of SIBL’s purported investments. From 2005 through February 2009, Stanford, James Davis, King and others conspired to obstruct the SEC’s investigation of SFG, SIBL and their related entities. From at least 2003 through February 2009, Stanford made regular secret corrupt payments of thousands of dollars in cash and gifts to King in order to obtain his assistance in hiding the truth about SFG and SIBL from the SEC and other regulatory agencies.
Over the course of the conspiracy, Stanford’s cash payments to King totaled approximately $520,963.87. Stanford also provided King tickets to both Super Bowl XXXVIII in Houston, Texas (2004) and Super Bowl XL in Detroit, Michigan (2006). Stanford also provided King with repeated flights on private jets Stanford or SFG entities owned.
King later denied the SEC’s request for help, and he wrote that the FSRC “had no authority to act in the manner requested and would itself be in breach of law if it were to accede to your request.” In reality, the FSRC did have this authority and failed to exercise such because of the payments and other benefits Stanford gave to King.
A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from three to 20 years in federal prison.
U.S. District Judge David Hittner of the Southern District of Texas accepted the plea today and set sentencing for April 24.
The FBI’s Houston Field Office, IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case. Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas are prosecuting the case.
The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.
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.
Jury Finds Florida Man Guilty of Obstructing the IRSRead the Press Release
A federal jury convicted a Florida man today of corruptly obstructing the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Maria Chapa Lopez for the Middle District of Florida.
According to evidence presented at trial, since 1999 Dennis J. Nagle has refused to voluntarily pay federal income taxes. As a result, by 2014, he had an outstanding tax balance of more than $400,000. When the Internal Revenue Service (IRS) attempted to collect Nagle’s unpaid taxes by filing liens and levying his paychecks and pension, Nagle obstructed the IRS collection efforts. Nagle submitted false forms to his employer claiming he was exempt from federal tax withholding, attempted to pay off his tax debts with checks written on a closed bank account, and threatened to file criminal complaints against IRS collection officers. In total, Nagle sent the IRS at least 15 worthless payments, purportedly totaling more than $1.9 million dollars.
U.S. District Judge Paul G. Byron ordered Nagle to be remanded to the custody of the Bureau of Prisons until his sentencing, which is scheduled for April 22, 2020. At sentencing, Nagle faces a statutory maximum penalty of three years in federal prison. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Karen Gable and Trial Attorney Lauren Archer of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Jury Convicts San Antonio Man on Federal Child Pornography ChargesRead the Press Release
In San Antonio this afternoon, a federal jury convicted 53–year-old Elton Vallare of San Antonio of distribution, receipt and possession of child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Jurors convicted Vallare of two counts of distribution of child pornography, one count of receipt of child pornography and two counts of possession of child pornography. On June 14, 2017, FBI agents arrested Vallare following the execution of a search warrant at his residence. During the search warrant, investigators recovered two laptop computers and various computer related equipment. A forensics review of the seized items revealed the presence of numerous video and image files depicting child pornography which the defendant downloaded and distributed via the internet.
Vallare faces between five years and 20 years in federal prison for each distribution and receipt charge. He also faces up to 20 years in federal prison for each possession charge. Vallare remains in federal custody. Sentencing has yet to be scheduled.
The FBI’s San Antonio Child Exploitation Task Force investigated this case. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.Jury Convicts Illegal Alien for Shooting Gun in Fairview Heights ParkRead the Press Release
A federal jury in East Saint Louis returned a guilty verdict this morning in a case involving an illegal alien. Gustavo Alvarez-Gomez, 23, a native of El Salvador, was convicted of unlawfully possessing a firearm after a three-day trial.
Evidence presented during the trial established that on Feb. 25, 2019, Alvarez-Gomez and a companion, Jordy Sanchez-Andrade, drove from St. Louis, Missouri, to Pleasant Ridge Park in
Fairview Heights, Illinois, so they could smoke marijuana and shoot a handgun. Both men entered the wooded hiking trails and fired off shots from a 9mm pistol. A concerned citizen called the police, and the Fairview Heights Police Department quickly responded.Both men were found and arrested in the wooded area of the park. The pistol was recovered nearby.
Subsequent investigation by the Department of Homeland Security, Immigrations and Customs
Enforcement (ICE) determined that both men had entered the United States illegally. Federal law prohibits unlawful aliens from knowingly possessing a gun.U.S. Attorney Steve Weinhoeft said, “Our illegal immigration enforcement efforts prioritize identifying and aggressively prosecuting those who enter the United States illegally and commit other crimes.” Weinhoeft continued, “It is beyond reckless to handle firearms while using drugs, but this crime is so much more offensive because these two individuals chose to do so at three o’clock in the afternoon, in a public park that was occupied by a mother and her two young children, ages 1 and 4.”
An indictment was returned against the pair in April 2019. Sanchez-Andrade, 22, pleaded guilty.
He is currently in ICE custody awaiting removal proceedings back to his native Honduras.Alvarez-Gomez remains in the custody of the United States Marshals Service pending his May 8 sentencing before Chief United States District Judge Nancy J. Rosenstengel. He could receive up to ten years imprisonment and a fine of up to $250,000. After his sentence has been served, Alvarez-Gomez will be referred to immigration authorities for removal proceedings.
The investigation of this case was conducted by the Fairview Heights Police Department, Department of Homeland Security Investigations, Immigrations and Customs Enforcement, and the Bureau of
Alcohol, Tobac o, Firearms and Explosives. The case was tried by Assistant United States Attorney
Alexandria Burns.
Johnson City Man Sentenced to 300 Months for Sexually Exploiting a Child and Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Michael Rushmer, age 48, of Johnson City, New York, was sentenced today to 300 months in prison for sexually exploiting a child, and for distributing and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Rushmer admitted that he created sexually explicit images and videos of a minor (including secretly recording the victim engaged in sexual acts), and that he distributed some of those images and videos to people over the internet. Rushmer further admitted that he possessed hundreds of images and videos depicting child pornography on his electronic devices, some of which included children under the age of 12.
Senior United States District Judge Thomas J. McAvoy also imposed a 10-year term of supervised release, which will start after Rushmer is released from prison, and ordered payment of $9,000 in restitution to victims. As a result of his conviction, Rushmer will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI, the Johnson City Police Department, the Broome County Sheriff’s Department, and the Broome County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Sahar Amandolare.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Jackson Man Sentenced under Project EJECT to 15 Years in Federal Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss – Demarkis Addison, 33, of Jackson, was sentenced today by Senior U.S. District Court Judge Tom S. Lee to 15 years in federal prison under the Armed Career Criminal Act for possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On February 6, 2019, while a United States Marshals Task Force was searching for a wanted man in Jackson, a man fitting the description was observed getting into a car at America’s Best Inn located on Interstate 55. As the Task Force officers approached, the man ran on foot and was seen tossing a handgun. Officers caught the individual, Demarkis Addison, and determined he was a convicted felon at the time he was observed by the Task Force with the handgun. Addison was previously convicted of five separate house burglaries between November 2004 and February 2013.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Jackson Man Pleads Guilty under Project EJECT to Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Albert Thompson, 24, of Jackson, pled guilty today before Senior U.S. District Court Judge Tom S. Lee to possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On January 21, 2019, Jackson Police officers responded to a possible house burglary in the city of Jackson. Upon arrival, officers observed three men matching descriptions provided via 911. Officers pursued the three men on foot. One of the men, Albert Thompson, brandished a handgun towards an officer which caused the officer to draw her service weapon. However, that officer was able to order Thompson to the ground and avoid deadly force. Thompson had been previously convicted of multiple house burglaries in 2012 and served time for those.
On April 16, 2019, Thompson was charged in a federal indictment with possessing a firearm after having been previously convicted of a felony crime.
Thompson will be sentenced by Judge Lee on April 30, 2020, at 9:00 a.m. He faces a statutory penalty of up to 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Iranian Export Company Executive Sentenced for Violating U.S. Sanctions Against IranRead the Press Release
ALBANY, NEW YORK - Mahin Mojtahedzadeh, age 74, and a citizen of Iran, was sentenced today to time served (443 days in jail) for conspiring to unlawfully export gas turbine parts from the United States to Iran.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Jonathan Carson, Special Agent in Charge, the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office.
United States District Judge Mae A. D’Agostino also ordered Mojtahedzadeh to pay a $5,000 fine. Mojtahedzadeh had been in law enforcement custody since November 14, 2018 and will now be placed into immigration custody for the purposes of removal from the United States.
On July 19, 2019, she pled guilty to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations. She admitted that she was the President and Managing Director of ETCO-FZC (“ETCO”), an export company with an office in Dubai in the United Arab Emirates. ETCO is a supplier of spare and replacement turbine parts for power generation companies in the Middle East, including Iran.
Mojtahedzadeh admitted that from 2013 through 2017, she worked with companies in Canada and Germany to violate and evade U.S. sanctions against Iran, by having these companies first acquire more than $3 million dollars’ worth of turbine parts from two distributors in Saratoga County, New York.
When the U.S. parts arrived in Canada and Germany, respectively, these companies and Mojtahedzadeh then arranged for the parts to be re-shipped to ETCO’s customers in Iran. At all times, U.S. law prohibited the export and re-export of U.S.-origin turbine parts to Iran without a license from the U.S. Office of Foreign Assets Control (OFAC), which neither Mojtahedzadeh nor her co-conspirators possessed.
United States Attorney Grant C. Jaquith stated: “This investigation struck a blow to Iranian efforts to obtain U.S. goods needed for Iran’s domestic energy production, and brought to justice three foreign nationals who conspired to circumvent economic sanctions that protect the national security of the United States.”
FBI Special Agent in Charge James N. Hendricks stated: “Anyone looking to evade sanctions and put our nation at risk should be on notice. The FBI, along with our interagency partners, will continue to vigorously investigate these crimes and ensure perpetrators, like Mahin Mojtahedzadeh, are brought to justice.”
Kevin Kelly, HSI Buffalo Special Agent in Charge, stated: “The illegal exportation of sensitive and restricted technology is a detriment to our national security. HSI is committed to enforcing these laws and ensuring that safeguards are maintained. The defendant’s admission of guilt and the sentence they received today is a clear example of the consequences awaiting those who engage in such actions.”
Special Agent in Charge Jonathan Carson, of the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office stated: “We will fully and aggressively enforce our nation’s restrictions on exports to Iran. Controls on exports to Iran help apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide. The Office of Export Enforcement will continue to leverage our unique authorities to pursue violators wherever they are, worldwide. We will continue to work with our law enforcement partners to achieve this goal.”
Two of Mojtahedzadeh’s co-conspirators have previously pled guilty and been sentenced.
Olaf Tepper, a citizen of Germany, pled guilty to conspiring to violate IEEPA. On August 3, 2018, Judge D’Agostino sentenced him to 24 months in prison, and to pay a $5,000 fine. Tepper was the founder and Managing Director of Energy Republic GmbH (“Energy Republic”), based in Cologne, Germany, which re-exported U.S.-origin turbine parts to Iran, as part of a conspiracy with Mojtahedzadeh.
Mojtaba Biria, a citizen of Germany, also pled guilty to conspiring to violate IEEPA. On August 14, 2019, Judge D’Agostino sentenced him to time served (approximately 21 months in jail). Biria was Energy Republic’s Technical Managing Director.
These cases are the result of a joint investigation by FBI, HSI and the Department of Commerce Office of Export Enforcement, and were prosecuted by Assistant U.S. Attorneys Rick Belliss and Michael Barnett, with assistance from Trial Attorney Scott A. Claffee of the Department of Justice’s National Security Division, Counterintelligence & Export Control Section.
Iowa Man Convicted of Child Sex Trafficking, Methamphetamine and Firearms OffensesRead the Press Release
DES MOINES, Iowa – On January 28, 2020, following a six-day trial, a jury found Kendall Andrew Streb, of Hills, Iowa, guilty of three counts of child sex trafficking, two counts of distributing methamphetamine to children, one count of possession with intent to distribute methamphetamine, one count of unlawful user in possession of a firearm and one count of possessing a firearm in furtherance of a drug trafficking crime announced United States Attorney Marc Krickbaum. The case was presided over by United States District Court Judge Stephanie M. Rose. A sentencing hearing will be set at a later date.
During trial, the government presented evidence Streb trafficked three teenagers in Iowa City, Coralville, and Cedar Rapids, from November 2018 through February 2019. Streb solicited the three minors, aged 15 through 17 years old, and paid them in cash and methamphetamine in exchange for sex acts. Streb, at times, transported the teenagers to hotel rooms where he engaged in commercial sex acts with them. The evidence proved Streb knew one or more girls was under 18 years old, and otherwise was in reckless disregard of the fact they were under the age of 18.On March 26, 2019, during a search warrant executed at Streb’s residence and truck, law enforcement located methamphetamine and two handguns. Evidence of drug trafficking was also found during the search, that included methamphetamine packaged for sale, a digital scale, and packaging materials.
“Let’s be clear: if you pay money or provide drugs in exchange for sex with underage girls, you are a sex trafficker. We will prosecute you and send you to federal prison,” said Krickbaum. “The U.S. Attorney’s Office is grateful to the law enforcement officers, particularly those from the Iowa City Police Department, who brought Kendall Streb to justice.”
Sex trafficking of a child is punishable by a minimum of ten years’ imprisonment and up to life imprisonment.
Human trafficking is defined as a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
The case was investigated by the Iowa City Police Department, with assistance from the Johnson County Sheriff’s Office, the Iowa Division of Criminal Investigation and the Coralville Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Investigation into child sex tourism leads to conviction and life sentence for Noblesville manRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of Noblesville, Ind. man, Charles Skaggs, Jr., age 53, to life in federal prison after his conviction at trial during July 2019 for sexual exploitation of a minor, possession of child pornography, and concealment of evidence. Skaggs had a prior conviction out of Clark County, Ind. for sexual misconduct with a minor.
“Today’s sentence sends a strong message to those who seek to exploit our minor children that you will be prosecuted to the fullest extent of the law, particularly those with prior records of child exploitation,” said Minkler. “Protecting our youth from sexual predators will always remain a top priority of this office and this life sentence will ensure that the public is safe from any future victimization from this defendant.”
This case began in 2015 as an investigation by the Federal Bureau of Investigation (“FBI”) of child sex tourism in Ukraine, including Skaggs’ work with orphanages there. In December 2016, Skaggs was searched at the U.S. Customs area of the Minneapolis-St. Paul International Airport during his return trip from Ukraine to Indiana. Law enforcement officers recovered thumb drives that contained child pornography, including child pornography that Skaggs’ produced in Indiana.
Skaggs was arrested by the FBI. Prior to his arrest, Skaggs hid a hard drive in the ceiling of a shared laundry room in his residence. During Skaggs’ pretrial detention at the Henderson County Detention Center, law enforcement officers intercepted a note written by Skaggs, which disclosed the location of the hard drive. The hard drive contained, among other things, images of videos of child pornography, including copies of the same pornography found on the thumb drives seized at the airport.
Skaggs had a bench trial before the Honorable Sarah Evans Barker, United States District Judge, Southern District of Indiana, on July 22, 2019 through July 24, 2019. Skaggs was convicted of all nine counts of sexual exploitation of a minor, two counts of possession of child pornography, and one count of concealment of evidence.
This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI-St. Paul), U.S. Customs and Border Protection (CBP), and the Indiana State Police.
“Children are among the most vulnerable in our society and it is our collective responsibility to protect them from predators such as Mr. Skaggs. His life sentence should send a clear message to those who engage in this conduct - you will be investigated, identified, and prosecuted - and you will go to prison,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “The teamwork between our agents and state law enforcement partners ensured there is one less predator victimizing the most innocent of our communities.”
“Sexual predators, like Charles Skaggs, who think they can avoid U.S. laws by traveling abroad for the purpose of sexually exploiting children will find no safe refuge upon their return to the U.S., said Tracy J. Cormier, Special Agent in Charge of HSI St. Paul. “HSI proudly stands with our law enforcement partners and remains steadfastly committed to doing all we can to stop this heinous practice.”
According to Assistant United States Attorneys MaryAnn T. Mindrum and Kyle M. Sawa, who prosecuted this case for the government, Skaggs must also serve 5 years of supervised release following his sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit or harm children and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1 and 4.2.
Hartford Gang Member Sentenced to 12 Years in Federal Prison for Role in Violent Kidnapping and AssaultRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS PITT, also known as “Macho,” 24, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 144 months of imprisonment, followed by five years of supervised release, for a kidnapping and violent assault he committed with four other members of the Almighty Latin Kings Nation (“Latin Kings”).
According to court documents and statements made in court, on January 26, 2018, Anthony Carillo and Josue Franco lured an individual (“the victim”) to a residence on Benton Street in Hartford. When the victim entered the residence, Pitt and Jonathan Otero were waiting. Carillo, Franco, Pitt and Otero then threatened, assaulted and tortured the victim, prevented him from leaving the residence, and demanded a ransom. After the victim was restrained, Pedro Carillo arrived at the residence and participated in the ongoing assault and torture of the victim, which included burning him with cigarettes, pistol-whipping him and throwing a dart into his foot.
The defendants forced the victim to call someone to deliver money in exchange for his release. The victim then called his father. Franco grabbed the phone and told the victim’s father if he did not deliver $500 they were going to kill his son. After the call, Otero put a bullet in the victim’s hand and told him he would use that bullet to shoot him in the head if the victim could not get the ransom money. The victim was then transported to different locations in Hartford in an effort to collect ransom before he was eventually released.
The victim was treated at a hospital for a fractured cheekbone, a facial laceration, a concussion and other injuries.
Pitt has been detained since his arrest on October 4, 2018. On September 25, 2019, he pleaded guilty to one count of assault with a dangerous weapon in aid of racketeering, and one count of using, carrying and brandishing a firearm in furtherance of a crime of violence.
The other four defendants pleaded guilty to related charges and were sentenced last month. On December 10, Otero was sentenced to 154 months of imprisonment; on December 16, Franco was sentenced to 132 months of imprisonment; on December 18, Anthony Carillo was sentenced to 125 months of imprisonment, and on December 19, Pedro Carillo was sentenced to 161 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Major Crimes Division has provided critical assistance to the investigation.
The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.