Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 22 November 2019
Leader of San Antonio-Based Heroin Trafficking Operation Sentenced to 15 Years in Federal PrisonRead the Press Release
In San Antonio, a federal judge sentenced 35-year-old ringleader Andrew Sanchez (aka “Freight,” “Hakeem”) to 15 years in federal prison for his role in a narcotics distribution operation on San Antonio’s eastside, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
During the sentencing hearing yesterday, U.S. District Judge Fred Biery also ordered that Sanchez be placed on supervised release for a period of five years after completing his prison term and forfeit $2,961.00 in U.S. Currency that was proceeds from his criminal enterprise.
On July 24, 2019, Sanchez pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin. By pleading guilty, Sanchez admitted that from May 2018 to March 2019, he was the leader of an organization responsible for the distribution of heroin on the east side of San Antonio. The Sanchez organization operated as a full-scale delivery service for heroin to the street-level user. Street-level users contacted a set phone number (the “order phone”) to order the amount of heroin wanted and arrange for the location where the narcotics were to be delivered. The order phone holder then coordinated with organization members responsible for the delivery of the heroin. Those members then drove to the established location and delivered the heroin to the street-level user. The organization operated daily from approximately 8:00 a.m. until 2:00 a.m., with the organization members working shifts in the various roles.
To date, four defendants (including Sanchez) have been convicted and sentenced to prison terms ranging from five years to 15 years. Two defendants are awaiting sentencing and one is awaiting trial. Rodrigo Roque (aka “Scrappy”), who is charged in the conspiracy count, is scheduled for jury selection on December 16, 2019.
The DEA and the Texas Department of Public Safety investigated this case with assistance from the U.S. Marshals Service, Bexar County Sheriff’s Office, Seguin Police Department, Terrell Hills Police Department and the Bexar County District Attorney’s Office.
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Roque is presumed innocent until proven guilty in a court of law.
Lawrence Man Sentenced to 96 Months for Fentanyl TraffickingRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Walker Manuel Moreta, 32, of Lawrence, Massachusetts, was sentenced to 96 months in federal prison for participating in a conspiracy to distribute, and possess with intent to distribute, fentanyl.
According to court documents and statements made in court, between at least January of 2017 through July of 2017, Moreta, with the assistance of others, sold quantities of fentanyl to multiple individuals, including customers from New Hampshire. Moreta and his co-conspirators often operated out of a location on Water Street in Lawrence, Massachusetts. As part of an investigation of Moreta, a cooperating individual purchased over 100 grams of fentanyl from Moreta between May and June of 2017. On July 6, 2017, Moreta was arrested and had 19 grams of fentanyl on his person.
Evidence in the case also indicated that the drugs distributed by the defendant resulted in at least one fatal fentanyl overdose in Portsmouth, New Hampshire.
Moreta previously pleaded guilty on April 1, 2019. He faces likely removal to the Dominican Republic after serving his sentence.
Two co-conspirators, Miguel Arias-Velasquez and Miguel Vasquez, previously pleaded guilty. Arias-Velasquez was sentenced to serve 48 months in prison. Vasquez is awaiting sentencing.
“Fentanyl is an incredibly lethal substance that has caused hundreds of deaths in New Hampshire,” said U.S. Attorney Murray. “We are working every day to identify, prosecute, and incarcerate the interstate fentanyl traffickers who are selling this deadly drug to the citizens of the Granite State. Drug dealers who sell fentanyl in New Hampshire should understand that they will be caught and will spend substantial portions of their lives in federal prison.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Moreta accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
This matter was investigated by the DEA, with assistance from the Massachusetts State Police, the United States Marshals Service, the New Hampshire State Police, the Lawrence Police Department, with assistance from the Portsmouth Police Department, the Dover Police Department, and the Rockingham County Attorney’s Office. The case is being prosecuted by First Assistant U.S. Attorney John J. Farley.
###
Lauderdale County Man Sentenced to 10 Years in Federal Prison for Being a Convicted Felon in Possession of a Firearm Used in the Murder of a Pregnant WomanRead the Press Release
Memphis, TN - Sequna Copeland a/k/a "Cutthroat", 30, of Ripley, Tennessee has been sentenced to 120 months in federal prison on two counts of being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on June 18, 2018 in Lauderdale County, Tennessee a white minivan crashed on Highway 19. Two men emerged from the vehicle and ran in the direction of Maple Hill Circle. Multiple people identified these men as Sequna Copeland and Bryson Bonds. The Tennessee Highway Patrol investigated the wreck and found a Canik 9mm pistol and a Harrington & Richardson .22 revolver in the minivan. Tennessee Bureau of Investigation lab tests, codefendant statements, and circumstantial evidence revealed that these two handguns were used to kill Jessica Hunt and her unborn child on Berry Morrow Road earlier that same morning.
In 2016, Copeland, along with three other members of the Gangster Disciples, robbed the Ripley Express convenience store. He along with another defendant evaded law enforcement for eight months and was subsequently placed on the Tennessee Bureau of Investigation’s "Top 10 Most Wanted" list.
On July 30, 2015, Copeland, while under oath and testifying as a witness in a proceeding before a Federal Grand Jury, made a false statement to prevent the punishment of two co-defendants. In July 2016, Copeland pleaded guilty to one count of perjury, and was sentenced to 27 months imprisonment followed by 3 years supervised release. In 2009, Copeland was convicted in Lauderdale County of Facilitation of the Second Degree Murder of Brian Bond, son of then Haywood County Sheriff Melvin Bond.
On October 1, 2018, the Lauderdale County Grand Jury returned indictments charging Copeland with two counts of Premeditated First Degree Murder, two counts of Felony First Degree Murder, one count of Especially Aggravated Kidnapping, one count of Tampering with Evidence, one count of Felony Possession of a Firearm, one count of Employing a Firearm During the Commission of a Dangerous Felony, one count of Abuse of a Corpse, one count of Theft of Property, and one count of Leaving the Scene of an Accident.
On October 9, 2019, after a three-day federal jury trial, Copeland was found guilty on two counts of being a convicted felon in possession of a firearm.
Today, U.S. District Court Judge Thomas L. Parker sentenced Copeland to 120 months in federal prison, which is the statutory maximum sentence for these federal firearm offenses, followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said: "As his nickname indicates, ‘Cutthroat’ has a long criminal history of felony convictions involving violence, and possessed firearms that were used in the murder of Jessica Hunt and her unborn child, and while he was still on a period of supervised release from a prior felony conviction. Copeland has devoted his entire adult life to a career of criminal conduct in Lauderdale County, and that prior history has finally caught up with him. This maximum federal sentence will remove this violent recidivist from the community for 10 years, will hopefully help to deliver justice for his victims in the pending state prosecution for first degree murder."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tennessee Highway Patrol, The Tennessee Bureau of Investigation, Lauderdale County Sheriff’s Office, and the Ripley Police Department investigated this case.
Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.
Lafayette Man Sentenced to Federal Prison for Possessing Child Pornography on Social Media Site and Personal DevicesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Gregory Graffeo Jr., 25, of Lafayette, was sentenced today by U.S. District Judge Robert R. Summerhays, to 63 months in federal prison followed by five years of supervised release for possession of child pornography. Hall pleaded guilty on August 13, 2019.
According to court documents, this case originated on August 31, 2018, as a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) to the Louisiana Bureau of Investigation (LBI), reporting that a Tumblr user had uploaded images of child pornography. A search warrant on Graffeo’s Tumblr account revealed approximately 50 images of child pornography. On November 7, 2018, agents with Homeland Security Investigations and LBI executed a search warrant at Graffeo’s residence and found additional child pornography images on devices belonging to him. Graffeo admitted to possessing more than 100 images of child pornography on these devices and admitted that the Tumblr account belonged exclusively to him.
The U.S. Department of Homeland Security Investigations and Louisiana Bureau of Investigation investigated the case. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
# # #
Kodiak Man Arraigned on Drug Trafficking ChargeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Cenen Placencia, 71, of Kodiak, was arraigned today on a complaint charging him with possession with intent to distribute controlled substances.
On Nov. 20, 2019, Placencia was ticketed to depart from Anchorage International Airport, destined for Kodiak, Alaska. Investigators from the Alaska State Troopers (AST) Anchorage Airport Interdiction Team (AAIT) requested Placencia’s consent to search his checked luggage, which consisted of a 47-pound fish box that was duct taped shut with a rope tied around the box.
After obtaining Placencia’s consent, the box was opened and investigators observed loosely wrapped meat pieces frozen together in a single large mass. The meat did not appear to be for human consumption, and packaging and shipping was inconsistent with the standard methods of meat processing. Investigators obtained Placencia’s consent to fully thaw and search the meat while he waited for the next Kodiak flight. As the meat was thawing, investigators detected an odor consistent with spoiled meat, no longer safe for consumption.
10 duct tape wrapped balls, each slightly larger than a golf ball, were found lodged inside the intestines of what investigators believed to be a goat and contained, in total, six packages of approximately 389 grams of meth and six packages of approximately 740.5 grams of heroin.
Placencia stated he purchased the goat for $140 from a rancher in California, packed the box himself, and intended to eat the goat intestines. Further, he denied having any knowledge of the meth and heroin found inside the goat.
If convicted, Placencia faces a statutory maximum of 40 years in prison, a $5,000,000 fine, and a minimum of 4 years of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Alaska State Troopers (AST) Anchorage Airport Interdiction Team (AAIT) and Coast Guard Investigative Services (CGIS) conducted the investigation leading to the charge in this case. This case is being prosecuted by Assistant U.S. Attorney Christina Sherman.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
King County dentists sentenced to prison and fines for eight-year tax-cheating schemeRead the Press Release
Seattle – Two Kent, Washington, dentists who avoided more than $460,000 in income taxes were sentenced today in U.S. District Court in Seattle to seven days in prison and 400 hours of community service for filing false tax returns, announced U.S. Attorney Brian T. Moran. MIKE HSIEH, 48, of Kent, Washington, and CHRISTINE CHEN, 46, of Renton, Washington, own Comfort Family Dentistry, Inc. Between 2007 and 2014, the two took steps to hide illegally their income from the IRS to reduce their tax obligation. At the sentencing hearing, U.S. District Judge Richard A. Jones ordered each to pay a $5,000 fine and said, “It was pure greed… It wasn’t about need, it was about greed…. It wasn’t a simple mistake. For eight years you had your accountant file false tax returns. You had eight separate years to change your mind and not be involved in criminal activity.”
According to records filed in the case, HSIEH and CHEN maintained two sets of financial statements for the business—one showing the actual expenses and another showing inflated expenses. The fraudulent expense statements were given to their accountant for tax preparation. The pair also established a bank account that was not disclosed to the tax preparer. Patient fees deposited into the account were not reported as income. Finally, the pair took cash proceeds from the dental practice and never reported that income to the accountant or on their taxes.
For tax year 2013, HSIEH admits he reported a taxable income of $232,753 when it was really more than $100,000 higher. HSIEH should have paid taxes on income of $348,663. For tax year 2013, CHEN reported income of $319,131 when her true income was $425,679. For all the tax years between 2007 and 2014 they each admit failing to pay about $231,000 in taxes that they should have paid.
Both dentists own multiple properties and dental practices. CHEN lists assets exceeding $4 million, while HSIEH lists assets of more than $2 million. In his sentencing memorandum, Assistant United States Attorney Brian Werner noted, “This was a deliberate, calculated scheme to cheat the government…. (These) Defendants (were) not in need of money.... There was no need to cheat the government – this offense was motivated purely by greed.”
Both defendants will pay slightly more than $231,000 in restitution. Their attorneys estimate they will also need to pay an additional $300,000 in interest and penalties to the IRS. In arguing that HSEIH and CHEN should avoid prison time, their attorneys noted that they criminal conviction prompted one bank to end its relationship with them, and that the dental practice was dropped as a preferred provider by a large dental insurance plan.
“Dr. Hsieh and Dr. Chen, each filed false tax returns that underreported income and inflated expenses at their dental practice in order to avoid paying income taxes. Their criminal scheme lasted years and cheated the Treasury of hundreds of thousands of dollars,” said IRS-Criminal Investigation’s Special Agent in Charge Justin Campbell. “Taxpayers should have confidence that IRS-Criminal Investigation will aggressively pursue tax fraud and ensure that all business owners pay their fair share.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Brian Werner.
Justice Department Seeks to Shut Down South Florida Tax Return PreparersRead the Press Release
The United States filed a civil injunction suit seeking to bar Dimary Cordero, aka Dimary Cordero Torres, and her businesses — NMB Accounting and Tax Services LLC (NMB), and WFS Accounting and Tax Services LLC (WFS) — from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The complaint also seeks an order that Cordero, NMB and WFS disgorge ill-gotten fees that they obtained through their alleged misconduct.
According to the complaint, filed in the U.S. District Court for the Southern District of Florida, Cordero operates tax preparation stores in North Miami Beach and Miami, Florida through her businesses. The complaint alleges that the defendants falsely increase their customers’ refunds and profit through high, often undisclosed fees, at the expense of their customers and the Treasury.
The complaint alleges that the defendants engage in the following misconduct:
- Falsely claiming the Earned Income Tax Credit;
- Fabricating businesses and related business income and expenses;
- Fabricating deductions, such as personal expenses and phony job-related expenses;
- Claiming education credits based on fabricated education-related expenses and
- Charging deceptive and unconscionable fees.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury convicts Holland, Ohio man of theft of public money, concealment of bankruptcy assets, and bankruptcy fraudRead the Press Release
This week, a Toledo federal jury convicted Arvel Ray Henderson, II, age 50, on one count of theft of public money, one count of concealment of bankruptcy assets, and one count of bankruptcy fraud. Henderson is scheduled to be sentenced on December 20, 2019.
Henderson, who was enrolled as a Section 8 landlord with the Lucas County Metropolitan Housing Authority (LMHA), leased several Section 8-eligible properties in the Toledo area, one of which was on Mackow Drive. Henderson began receiving rent payments for this property from LMHA starting in 2005. In 2011, Henderson transferred ownership of the Mackow Drive property to his stepfather. Because Henderson no longer owned the property, he was no longer entitled to the Section 8 payments, yet he continued taking the payments for nearly three additional years after he ceased being the property’s owner. Henderson defrauded LMHA of approximately $22,589.
In June 2014, Henderson filed as an individual for Chapter 7 bankruptcy. Henderson failed to list the following items in his bankruptcy schedules: three bank accounts, a variable annuity account, $499,980 in wire transfers, $20,000 in loaned funds, a 2004 BMW, and a 2014 Jeep Grand Cherokee. The bankruptcy court, trustee, and Henderson’s creditors were thus misled about material information used to determine Henderson’s eligibility for bankruptcy protection and the appropriate terms of any bankruptcy discharge.
The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development (HUD). It is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Jody L. King.
Jury Returns Conviction for Murder in Indian CountryRead the Press Release
OKLAHOMA CITY – A federal jury has convicted TOMMY DEAN BULLCOMING, 55, of Hammon, Oklahoma, of first-degree felony murder in Indian Country and related offenses, announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
A five-count indictment unsealed on April 6, 2018, charged Bullcoming with crimes he committed on September 6, 2017: first-degree premeditated murder, first-degree felony murder, carjacking resulting in death, kidnapping resulting in death, and arson. The indictment stated he "used force, violence, and intimidation to intentionally take a Lexus RX300" from an Indian and that this resulted in her death. It further alleged he killed the victim "by stabbing and cutting her with a sharp object." The arson count alleged he maliciously set fire to the victim’s dwelling in Hammon. The case is in federal court because Bullcoming is a member of the Cheyenne and Arapaho Tribes, because the offenses occurred in Indian Country, and because the vehicle used in the carjacking had traveled in interstate commerce. The victim, Linda “Lindy” Zotigh, is a member of the Cheyenne and Arapaho Tribes, as well.
Beginning on November 12, 2019, a jury heard evidence that Bullcoming beat Zotigh, his ex-girlfriend, in her home and then bound her mouth and wrists with duct tape. Using her vehicle, he drove her to a field in Indian Country and made her walk approximately 50 yards away from the road, where he stabbed her 48 times and slit her throat. He then drove her vehicle back to her home, which he set on fire. Volunteer firefighters from Hammon noticed fresh blood in the residence, and a Special Agent with the Bureau of Indian Affairs found fresh blood on the headrest of the vehicle. Both blood samples matched the victim, while blood on the vehicle’s dashboard matched Bullcoming.
The Bureau of Indian Affairs arrested Bullcoming in El Reno on September 8, 2017, for failing to appear before the Tribal District Court for the Cheyenne and Arapaho Tribes in Concho on September 7 on a charge of trafficking in controlled dangerous substances. He had scrapes and cuts on his arms, hands, and legs, as well as blood on his belt and sandals. DNA analysis confirmed the blood on his sandals belonged to the victim. On December 5, 2017, Bullcoming pleaded guilty in federal court to possessing marijuana with intent to distribute. He was sentenced in that case on April 18, 2018, to ten months in prison.
During the early evening of November 21, a jury found Bullcoming guilty of first-degree felony murder, carjacking resulting in death, kidnapping resulting in death, and arson of a dwelling. It was unable to reach a verdict on first-degree premeditated murder. The verdict was returned on what would have been Linda Zotigh’s birthday.
At sentencing, Bullcoming faces mandatory life in prison for felony murder, carjacking, and kidnapping. The maximum punishment for arson would be 25 years in prison and five years of supervised release. He could also be fined up to $250,000 on each count and be required to pay restitution. There is no parole in the federal justice system. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Bureau of Indian Affairs, Office of Justice Services; the Federal Bureau of Investigation, Oklahoma City Field Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Secret Service; the Oklahoma State Bureau of Investigation; the Oklahoma Highway Patrol; the Roger Mills County Sheriff’s Office; the Custer County Sheriff’s Office; the United States Marshals Service; and the Hammon Fire Department. Assistant U.S. Attorneys Mark R. Stoneman and Arvo Q. Mikkanen are prosecuting the case, which furthers the Department of Justice’s Missing and Murdered Indigenous Persons Initiative. Attorney General Barr is announcing that initiative today; for more information, go to https://www.justice.gov/opa/pr/attorney-general-william-p-barr-launches-national-strategy-address-missing-and-murdered.
Reference is made to court filings for further information.
Jury Finds Topeka Man Guilty on Federal Drug, Firearm ChargesRead the Press Release
TOPEKA, KAN. - A Topeka man was convicted in a jury trial in federal court today on drug trafficking and firearms charges, U.S. Attorney Stephen McAllister said.
Dennis Dean Neff, 63, Topeka, Kan., was convicted on one count of possession with intent to distribute methamphetamine within 1,000 feet of Holton Middle School (count one), one count of possession of a firearm in furtherance of drug trafficking (count two), one count of unlawful possession of a firearm by a felon (count three) and one count of possession with intent to distribute methamphetamine within 1,000 feet of Meadows Elementary School in Topeka (count four).
During trial, the prosecutor presented evidence that on Nov. 27, 2018, Neff was found at a residence in Holton. He possessed 73.8 grams of methamphetamine and a 9 mm Bersa pistol. On Feb. 12, 2019, he was arrested with 18 grams of methamphetamine and $6,327 in cash.
Sentencing will be set for a later date. He could face not less than 10 years in federal prison and a fine up to $10 million on count one, not less than five years and a fine up to $250,000 on count two, ten years and a fine up to $250,000 on count three, and not less than five years and not more than 40 years and a fine up to $5 million on count four.
McAllister commended the Drug Enforcement Administration and Assistant U.S. Attorney Greg Hough for their work on the case.
Jury Finds Somerset Felon Guilty of Illegally Possessing Rifles, Shotguns and AmmoRead the Press Release
JOHNSTOWN, Pa. – A resident of Somerset, Pa., was found guilty after a four-day jury trial of violating federal firearms laws, U.S. Attorney Scott W. Brady announced today.
Kelly B. Shaulis, 51, of Somerset, Pa., was tried before U.S. District Judge Kim Gibson in Johnstowm, Pa.
According to information presented at trial, Kelly B. Shaulis, 51, of Somerset, Pa., was illegally possessed twelve rifles, shotguns and ammunition on July 5, 2017 and Dec. 21, 2018. On Dec. 19, 2011, Shaulis was convicted in United States District Court for the Western District of PA, of unlawful possession of a firearm by a convicted felon, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
"The prosecution of felons who illegally possess firearms has long been a key part of an of our office’s anti-violence strategy," said U.S. Attorney Brady. "Removing these violent offenders from our neighborhoods creates safer living places for law-abiding citizens."
Judge Gibson scheduled sentencing for April 9, 2020, at 10:00 A.M. The law provides for a maximum sentence of 20 years in prison and a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Pennsylvania Office of Attorney General. The case is being prosecuted by Assistant U.S. Attorney Arnold P. Bernard, Jr. of the Western District of Pennsylvania.
Jury Convicts Man in Federal "Lie and Buy" Trial of Making A False Statement During Purchase of A FirearmRead the Press Release
LAS VEGAS, Nev. – After a three-day trial, a federal jury found James Williams, Jr., 29, guilty of making a false statement during the purchase of a firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the San Francisco Field Division.
“I am proud to announce Nevada’s first conviction under Project Guardian—our new gun violence reduction initiative,” said U.S. Attorney Trutanich. “Lying to a licensed firearms dealer and buying a gun for someone else is a serious offense. My office will continue to work closely with ATF and local law enforcement to prosecute these crimes.”
“Public safety is at the forefront of ATF’s mission,” said Special Agent in Charge Roundtree. “Our focus is removing crime guns from our communities. To reiterate what ATF Acting Director Regina Lombardo said, the focus of Project Guardian is to enhance our crime gun intelligence. This enhancement will encompass identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms. We are very happy to announce Nevada’s first Project Guardian conviction with the U.S. Attorney’s Office and the Las Vegas Metropolitan Police Department.”
According to court documents and evidence presented at trial, between May 2017 and May 2018, Williams purchased 35 firearms, mostly pistols, and many of the same make and model, from various Las Vegas firearms dealers. In May 2018, when purchasing one of those firearms, Williams made a false statement to a licensed firearms dealer regarding his residential address in Las Vegas, Nevada. At trial, his former roommate testified that Williams had not lived at that address for over a year at the time he made the false statement. The jury at trial found Williams guilty of falsely stating his address in the Firearms Transaction Record form that he completed when he purchased the firearm and acquitted him of illegal acquisition of a firearm for one set of those purchases.
The case was the product of an investigation by the ATF, with the assistance of the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Jared Grimmer and Tony Lopez prosecuted the case.
Williams is scheduled to be sentenced by U.S. District Chief Judge Miranda M. Du on January 29, 2020. Williams faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, visit https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
###
Jackson Man Sentenced under Project EJECT to over 4 Years in Federal Prison for Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Rodney Davis Kimble, 26, of Jackson, was sentenced today by Chief U.S. District Court Judge Daniel P. Jordan III to 50 months in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Kimble was also ordered to pay a $1,500 fine.
On August 8, 2017, officers with the Jackson Police Department responded to a burglary alarm on Southland Drive in Jackson. At the scene, the resident reported a .380 caliber Taurus had been stolen. JPD’s Crime Scene Unit collected evidence, including blood samples, from the crime scene. On September 3, 2017, officers were dispatched to West McDowell Road, where Rodney Davis Kimble had threatened an individual with a gun. Kimble was arrested and charged with possession of a firearm by a convicted felon. The firearm in Kimble’s possession matched the description of the stolen firearm. Following his arrest, law enforcement matched Kimble’s DNA to that recovered at the scene of the burglary on August 8. Kimble confessed to the crime when confronted with the DNA evidence. Kimble was charged with house burglary and convicted in the Circuit Court of Hinds County in September 2018. Kimble had previously been convicted in Hinds County of house burglary in 2012, and business burglary in 2015.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
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). 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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Sentenced under Project EJECT to 2 ½ Years in Federal Prison for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Bernard Lavon Woofter, 43, of Jackson, was sentenced today by Chief U.S. District Court Judge Daniel P. Jordan III to 30 months in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation. He was also ordered to pay a $1,500 fine.
On February 13, 2018, Woofter was arrested by an officer with the Jackson Police Department following a pat down search wherein the officer discovered Woofter was carrying a Rossi .38 Special revolver in his waistband. He had two previous convictions for felony theft in Knox County, Tennessee, and was prohibited from possessing a firearm.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
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). 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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indiana livestock broker sentenced to prison for wire fraudRead the Press Release
CINCINNATI – Brian D. Jones, 40, of Vevay, Ind., was sentenced in U.S. District Court today to 51 months in prison and ordered to pay nearly $750,000 in restitution to victims he defrauded.
According to court documents, Jones operated a business buying bull calves from dairy farms in Wisconsin and selling them to cattle ranches in Texas and Missouri. By the end of 2015, Jones had squandered funds from the cattle purchasers and was in debt with both his suppliers and purchasers.
Jones began soliciting investors in 2015, promising sizable returns for the investments. Rather than invest the funds, Jones used the money for his personal benefit, such as gambling at casinos. He used the investment funds to pay “returns” back to earlier investors as if the funds had actually generated income through investment in his business.
Jones fabricated bank documents to show that he had sizable business deposits that would soon be “released” by the bank. He also sent some checks to investors for investment returns only to have the checks bounce due to insufficient funds in his account.
Jones was indicted by a federal grand jury in July 2017 and pleaded guilty to wire fraud in June 2018.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by U.S. District Court Judge Timothy S. Black. Assistant Deputy Criminal Chief Timothy S. Mangan is representing the United States in this case.
# # #
Illinois Man Who Pulled Gun on His Son’s Mother While Their Son Was in the Room Sentenced to Federal PrisonRead the Press Release
A convicted felon from Illinois who unlawfully possessed a gun was sentenced November 21, 2019, to nearly four years in prison.
Korey Russell, age 40, from Hoopeston, Illinois, received the prison sentence after a June 10, 2019 guilty plea to possession of a firearm by a felon.
Information disclosed at sentencing and at a plea hearing showed that on March 12, 2018, Russell went to the Cedar Rapids, Iowa, home of his young child’s mother. Russell went into the home uninvited and confronted the woman and another man. During the confrontation, Russell produced a loaded gun and “cocked it.” Russell’s young son was in the room at the time. Russell then chased the man from the residence. Outside of the residence, Russell kicked the woman’s vehicle causing thousands of dollars in damages. Russell then fled the area and was eventually arrested by police. Russell’s criminal history includes residential armed burglary, obstruction of justice, harassment, and domestic assault.
Russell was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gerber was sentenced to 46 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. This case was brought as part of Project Safe Neighborhoods (PSN) through a cooperative effort of the Cedar Rapids Police Department and the FBI Safe Streets Task Force. 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00010.
Follow us on Twitter @USAO_NDIA.
Idabel Man Sentenced to 38 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joel Seth Hood, age 37, of Idabel, Oklahoma. was sentenced to 38 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
The Indictment alleged that on November 30, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “This office received the investigation that led to the defendant’s prosecution as a result of collaboration and strong working relationships between the ATF, the McCurtain County Sheriff’s Office, and the District 17 District Attorney’s Office. Members of this office work hard to maintain open lines of communication with federal, state, local, and tribal law enforcement agencies. When we all work together, the communities we serve are the beneficiaries.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.Houston engineering corporation enters into corporate resolution and agrees to pay $1.6 million fineRead the Press Release
HOUSTON – A major local-based civil engineering company and its parent company have agreed to enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information charging the company with violating the Federal Election Campaign Act. As part of the agreement, Dannenbaum Engineering Corporation (DEC), based in Houston, and its parent company, Engineering Holding Corporation (EHC), agreed to pay a $1.6 million criminal fine for its involvement in a multi-year conduit contribution scheme.
“DEC engaged in a criminal scheme that undermined the fairness and transparency of our nation’s campaign finance laws in a misguided effort to increase its own power and prestige,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution demonstrates the Department’s resolve to aggressively pursue those who seek to corrupt our democratic process.”
“Protecting the integrity of the finest democratic system in the world is a cornerstone of our collaborative prosecutive efforts,” said First Assistant U.S. Attorney Tim S. Braley for the Southern District of Texas. “Any corporation that attempts to circumvent the protective cloak provided by the nation’s election laws will be held accountable for its actions.”
“The Federal Election Campaign Act is designed to limit financial influence in the election of candidates for federal office. In other words, it's designed to make sure that our democratic process, and representation in our democratic process, is fair and transparent,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “In this case, through DEC Jim Dannenbaum thought that by exceeding its contribution limits it could unfairly and illegally outweigh the lawful ones, and now that company is being held accountable. Our system of representative government works only when honest contributions are not diluted by fraud. Through our Public Corruption Unit, the FBI will continue to do its part in making sure there are fair and free elections.”
According to the companies’ admissions made in connection with the DPA, from 2015 through 2017, DEC and EHC made $323,300 in illegal conduit contributions through various employees and their family members to federal candidates and their committees. DEC corporate funds were used to advance or reimburse employee monies for these contributions. DEC did not reveal to any of the federal candidates that the corporation was the true source of the contributions. The object of the scheme was for DEC, its CEO James Dannenbaum, and a former employee to gain access to and potentially influence various candidates for federal office, including candidates for the presidency as well as the Senate and House of Representatives.
The department reached this resolution based on a number of factors, including DEC’s cooperation with the investigation, the internal investigation conducted and the significant remedial measures taken. For example, DEC altered its board structure to ensure the former CEO does not control the board and stopped all politically-related payments to its employees (including, but not limited to, payments treated as “marketing advances”) resulting in a cessation of these expenditures. Further, DEC hired and/or designated a full-time chief governance and compliance officer. The department also took into account the companies’ inability to pay a fine.
Former CEO Dannenbaum has been charged in a separate criminal information. An information is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and John Pearson and Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section are prosecuting the case. IRS-Criminal Investigation also provided substantial assistance in this matter.
Houston Engineering Corporation Enters into Corporate Resolution and Agrees to Pay $1.6 Million FineRead the Press Release
A major Houston, Texas-based civil engineering company and its parent company have agreed to enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information charging the company with violating the Federal Election Campaign Act. As part of the agreement, Dannenbaum Engineering Corporation (DEC), headquartered in Houston, and its parent company, Engineering Holding Corporation (EHC), agreed to pay a $1.6 million criminal fine for its involvement in a multi-year conduit contribution scheme.
“DEC engaged in a criminal scheme that undermined the fairness and transparency of our nation’s campaign finance laws in a misguided effort to increase its own power and prestige,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution demonstrates the department’s resolve to aggressively pursue those who seek to corrupt our democratic process.”
“Protecting the integrity of the finest democratic system in the world is a cornerstone of our collaborative prosecutive efforts,” said First Assistant U.S. Attorney Tim S. Braley for the Southern District of Texas. “Any corporation that attempts to circumvent the protective cloak provided by the nation’s election laws will be held accountable for its actions.”
“The Federal Election Campaign Act is designed to limit financial influence in the election of candidates for federal office. In other words, it's designed to make sure that our democratic process, and representation in our democratic process, is fair and transparent,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “In this case, through DEC, Jim Dannenbaum thought that by exceeding its contribution limits it could unfairly and illegally outweigh the lawful ones, and now that company is being held accountable. Our system of representative government works only when honest contributions are not diluted by fraud. Through our Public Corruption Unit, the FBI will continue to do its part in making sure there are fair and free elections.”
According to the companies’ admissions made in connection with the DPA, from 2015 through 2017, DEC and EHC made $323,300 in illegal conduit contributions through various employees and their family members to federal candidates and their committees. DEC corporate funds were used to advance or reimburse employee monies for these contributions. DEC did not reveal to any of the federal candidates that the corporation was the true source of the contributions. The object of the scheme was for DEC, its CEO James Dannenbaum, and a former employee to gain access to and potentially influence various candidates for federal office, including candidates for the presidency as well as the Senate and House of Representatives.
The department reached this resolution based on a number of factors, including DEC’s cooperation with the investigation, the internal investigation conducted and the significant remedial measures taken. For example, DEC altered its board structure to ensure the former CEO does not control the board and stopped all politically-related payments to its employees (including, but not limited to, payments treated as “marketing advances”) resulting in a cessation of these expenditures. Further, DEC hired and/or designated a full-time chief governance and compliance officer. The department also took into account the companies’ inability to pay a fine.
Former CEO Dannenbaum has been charged in a separate criminal information. An information is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI conducted the investigation. Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Carolyn Ferko and John Pearson are prosecuting the case. IRS-Criminal Investigation also provided substantial assistance in this matter.
Holden Man Indicted for Cocaine and Firearms OffensesRead the Press Release
BOSTON – A federal grand jury has indicted a Holden man for cocaine and firearms offenses.
William Hoey, 39, was charged with three counts of possession with intent to distribute cocaine and distribution of cocaine; one count of possession with intent to distribute cocaine; one count of possession with intent to distribute more than 500 grams of cocaine; one count of using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a drug trafficking crime; and one count of possession of a firearm in furtherance of a drug trafficking crime.
The charge of possession with intent to distribute cocaine and distribution of cocaine provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of possession with intent to distribute more than 500 grams of cocaine provides for a sentence of between five and 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of using and carrying a firearm during and in relation to, or possessing a firearm in furtherance of a drug trafficking crime provides for a mandatory five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Heppner Physician Sentenced to Federal Prison for Tax EvasionRead the Press Release
PORTLAND, Ore.—Kenneth Wenberg, 73, a medical doctor from Heppner, Oregon, was sentenced today to 12 months and one day in federal prison and three years’ supervised release for failing to report income resulting in a tax loss of approximately $128,000.
“Tax evasion is a crime of greed and arrogance that hurts every citizen who lawfully pays their taxes,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The U.S. Attorney’s Office will continue working closely with our partners at IRS-CI to bring criminal tax evaders to justice.”
“For twenty years, Dr. Wenberg took steps to evade his tax obligation and today’s sentence demonstrates the consequences of those actions,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “Tax evasion is IRS-Criminal Investigation’s number one priority and we will continue to prosecute those who fail to pay their fair share of taxes.”
According to court documents, Dr. Wenberg created nominee entities to hide assets and income he personally earned while serving as a physician at the Morrow County Health District (MCHD) and Urgent Health Care Center (UHCC) in Heppner. Dr. Wenberg instructed MDHD and UHCC to make payments for services he performed directly to sham entities to avoid income tax liabilities.
Dr. Wenberg opened numerous bank accounts and purchased real property in the names of his nominee entities. He also paid for his and his family’s personal living expenses out of the nominee accounts. Dr. Wenberg failed to report his income to the IRS, despite knowing he owed taxes.
During sentencing, U.S. District Court Judge Marco A. Hernandez ordered Wenberg to pay $128,964 in restitution to the IRS.
On February 12, 2019, Wenberg pleaded guilty to one count of tax evasion.
This case was investigated by IRS-Criminal Investigation (IRS-CI) and is being prosecuted by Clemon D. Ashley and Seth D. Uram, Assistant U.S. Attorneys for the District of Oregon.
Harrison County woman sentenced for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA –Ashley Wagner, of Clarksburg, West Virginia, was sentenced today to for her involvement in methamphetamine distribution operation, U.S. Attorney Bill Powell announced.
Wagner, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in April 2019. Wagner admitted to working with others to distribute methamphetamine from October 2017 to September 2018 in Harrison County and elsewhere.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Greensboro Man Convicted of Firearm Offenses and Trafficking Controlled SubstancesRead the Press Release
GREENSBORO, N.C. - On Wednesday November 20, 2019, a jury in federal court found a Greensboro resident guilty on three felony charges, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Following a three day trial in Greensboro, the jury found CLYDE OTIS ALSTON, JR., age 25, guilty of possession with intent to distribute a mixture containing heroin, fentanyl, and 4-Anilino-N-phenethylpiperidine (4-ANPP), possession of a firearm in furtherance of a drug trafficking crime, and knowingly possessing a firearm after previously being convicted of a felony offense.
“The national epidemic of opioid abuse continues to take hundreds of lives each day. Fentanyl is especially deadly: as little as two milligrams of fentanyl, an amount equal to two grains of sand, can kill a person, yet drug trafficking organizations continue to mix fentanyl with other drugs to increase potency and profit,” said United States Attorney Martin. “We will not, we cannot, rest in our efforts to stop these poisons from continuing to ruin people’s lives.”
Evidence presented at trial showed that on January 11, 2019, at approximately 9:30 a.m., officers from the Greensboro Police Department attempted to stop a gray Ford truck being operated by ALSTON on Flag Street near Sussmans Street in Greensboro. When a GPD officer tried to block the road in an attempt to stop ALSTON, he swerved, striking the officer’s vehicle and also sideswiping another vehicle parked on the south side of Flag Street. ALSTON continued on Flag Street toward Sussmans Street, where he drove through a park and out onto O’Connor Street. ALSTON then turned into a parking lot on O’Connor Street and exited the vehicle on foot while the truck was still in motion. The truck then struck two trees while ALSTON began running away from officers on foot. A GPD officer was able to stop the truck and put it in park, and when doing so observed a Glock model 22, .40 caliber handgun and a 50 round drum magazine lying in plain view on the passenger side floorboard, and, in the center console area of the truck, a bag containing approximately 21.91 grams of a mixture containing heroin, Fentanyl, and 4-ANPP.
A review by officers of ALSTON’s publically-available Instagram account resulted in discovery of a video of a person who appears to be ALSTON, dated December 31, 2018, holding a semi-automatic handgun with a silver slide over a black frame. The gun in the video also had a high capacity drum style magazine attached with visible ammunition and what appeared to be a laser assisted sighting system on the trigger guard, much like the firearm and magazine he was arrested with eleven days later.
Sentencing is scheduled for February 27, 2020, at 9:30 a.m., in Greensboro, before United States District Judge William L. Osteen, Jr. With regard to the drug offense, ALSTON faces a maximum sentence of 20 years in prison, a fine of up to $250,000, or both, and a term of not less than three years of supervised release. For possessing a firearm in furtherance of a drug crime, ALSTON faces a minimum sentence of five years, and up to life, consecutive to any other sentence, a fine of up to $250,000, or both, and not more than five years of supervised release. And finally, for being a felon in knowing possession of a firearm, ALSTON faces a maximum sentence of ten years in prison, a fine of up to $250,000, or both, and not more than three years of supervised release.
The case was investigated by the Greensboro Police Department, NC Department of Probation and Parole, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Veronica L. Edmisten and Clifton T. Barrett.
###
Four Felons Appeared in Court This Week in Connection with Federal Gun Crime OffensesRead the Press Release
SHREVEPORT, LAKE CHARLES, MONROE, La. – United States Attorney David C. Joseph announced the resolution of several cases this week, all of which are separately noted, that were brought pursuant to the Project Safe Neighborhoods (PSN) Program, which is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Lake Charles Man Sentenced for Illegally Possessing a Stolen Firearm
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Jeremy Rankins, 28, of Lake Charles, was sentenced November 19, 2019, by U.S. District Judge James D. Cain Jr., to 80 months in federal prison followed by three years of supervised release for possession of a stolen firearm. Rankins pleaded guilty on August 15, 2019.
According to court documents, on May 19, 2018, the Calcasieu Parish Sheriff’s Office responded to a complaint of an attempted armed robbery with a firearm and an attempted carjacking at a Lake Charles casino. Upon arrival, officers came in contact with Rankins, who had already been detained by the casino’s security officers. Deputies also spoke with the 61-year-old victim, who stated that she was in her car at around 4 a.m. when Rankins sat in the passenger seat brandishing a firearm and demanding money. She denied having any money, at which point he demanded the keys to her car. The hotel security later detained Rankins, and while he was being questioned, a witness discovered the loaded 9 mm Ruger handgun he used on the ground under a truck tire. The investigation revealed that the handgun was stolen on May 17, 2018, from a vehicle parked in the casino’s parking garage.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Calcasieu Parish Sheriff’s Office conducted the investigation, with assistance from the casino security. Assistant U.S. Attorney Daniel J. Vermaelen prosecuted the case.
Lake Charles Man Sent to Prison for Lying on Federal Firearms Form
Defendant lied about his criminal background when he tried to purchase a firearm at a Pawn Shop
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Darrien Lamont Rogers, 24, of Lake Charles, was sentenced on November 19, 2019, by U.S. District Judge James D. Cain Jr., to six months in federal prison followed by three years of supervised release for lying on a firearm application at a Lake Charles pawn shop. Rogers pleaded guilty on August 15, 2019.
On March 4, 2019, Rogers attempted to purchase a Taurus, Model PT 111, 9 mm semi-automatic pistol at a pawn shop in Lake Charles. He lied on an ATF Form 4473 by indicating that he had no felony convictions. Rogers pleaded guilty to one count of simple burglary on September 27, 2018, in the 14th Judicial District Court in Calcasieu Parish. Because of this felony conviction, Rogers is prohibited from purchasing or possessing a firearm or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Daniel J. Vermaelen is prosecuted the case.
Shreveport Convicted Felon Pleads Guilty to Illegally Possessing a Firearm
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Christopher John Williams, 30, of Shreveport, pleaded guilty before U.S. District Judge Donald E. Walter on November 19, 2019, to being a convicted felon in possession of a firearm.
On January 31, 2019, Williams was arrested on a state offense and held in custody at Caddo Correctional Center. While he was in custody, he called two friends and asked them to get rid of a firearm that was located at his residence. Following the calls, agents made contact with an individual Williams shared his residence with and secured a Springfield XDS .45 caliber pistol. At the guilty plea, Williams admitted that the pistol belonged to him and to being a convicted felon. As a convicted felon, he knew it was illegal for him to possess a firearm or ammunition.
Williams has prior felony convictions in Caddo Parish for illegal use of a weapon (2007), second degree battery (2009), accessory after the fact – robbery (2014), domestic abuse battery (2015), and public intimidation (2017).
Christopher Williams will be sentenced by Judge Walter on March 24, 2020, and faces a maximum sentence of 10 years in prison, three years of supervised release and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI Northwest Louisiana Violent Crimes Task Force, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Multiple-Time Convicted Felon Pleads Guilty to Illegally Possessing Seven Firearms That He Stole From Simmons’ Sporting Goods in Bastrop
MONROE, La. – United States Attorney David C. Joseph announced that Brandon Keith Harris, 32, of Bastrop, Louisiana, pleaded guilty before U.S. District Judge Terry A. Doughty on November 20, 2019, to being a convicted felon in possession of a firearm.
On the evening of July 14, 2018, Harris broke into Simmons’ Sporting Goods in Bastrop, Louisiana and stole seven guns. Federal law prohibits Harris from ever possessing a firearm because of his status as a convicted felon. He had previously been convicted of multiple felonies in Morehouse Parish including: the manufacture and possession of a bomb (2005), possession of methamphetamine (2009), simple burglary, and possession of a firearm by a convicted felon (2014). This case is a joint federal and local investigation into the July 14, 2018 break-in and firearm theft.
Harris returns to court on March 4, 2020, where he will be sentenced by Judge Doughty, and faces a maximum sentence of 10 years in prison, five years of supervised release, and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Bastrop Police Department, and Morehouse Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike Shannon is prosecuting the case.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
# # #
Former corrections officer sentenced to prison for smuggling drugs into state prisonRead the Press Release
COLUMBUS, Ohio – A longtime corrections officer at the Belmont Correctional Institution was sentenced in U.S. District Court today to 30 months in prison for smuggling contraband into the prison.
Alfred M. Horvath, 59, of Shadyside, conspired with others to sneak illegal drugs and tobacco into the prison.
According to court documents, from 2015 through 2018, Horvath received cash from multiple inmates and their representatives in exchange for smuggling tobacco, oxycodone pills and Suboxone strips into the prison.
On several occasions, and for several years, Horvath was paid approximately $500 to $1,000 for each smuggling trip.
He would meet inmates’ representatives outside the prison in locations in the Southern District of Ohio and elsewhere. The individuals would provide him with the drugs and his cash profit. Horvath admitted to smuggling or agreeing to smuggle at least 300 30-milligram oxycodone pills and several thousand Suboxone strips.
Horvath pleaded guilty in January 2019 to conspiring to distribute and to possess with the intent to distribute controlled substances.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Annette Chambers-Smith, Director, Ohio Department of Rehabilitation & Correction; and officials with the Jefferson County Drug Task Force announced the sentence imposed by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
# # #
Former Sheriff’s Captain Indicted for Gun Trafficking, Aiding Marijuana Distribution & Lying to Federal AgentsRead the Press Release
Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 or Andrew Haden (619) 546-6961
NEWS RELEASE SUMMARY – November 22, 2019
SAN DIEGO – Former San Diego County Sheriff’s Captain Marco Garmo was arrested this morning based on a federal grand jury indictment that charges him with operating an illegal firearms trafficking business – sometimes from his office at the Rancho San Diego Station with the help of others, including a fellow Sheriff’s deputy.
The indictment also charges Sheriff’s Department Lieutenant Fred Magana, prominent San Diego jeweler Leo Hamel, firearms dealer Giovanni Tilotta and El Cajon resident Waiel Anton with aiding and abetting Garmo’s illegal firearms business.
In federal court this morning, Magana and Hamel entered guilty pleas before U.S. Magistrate Judge Bernard G. Skomal, admitting that they aided Garmo’s business by engineering and engaging in straw purchases of firearms, creating false records to conceal those purchases, and offering to promote Garmo’s weapons. Magana was granted a $25,000 bond; Hamel a $250,000 bond secured by a lien on a piece of property. They are scheduled to be sentenced February 21, 2020 at 8:30 a.m.
Anton was arrested early this morning and like Garmo is scheduled to be arraigned this afternoon at 2; Tilotta is currently at large.
According to the indictment, Garmo was a Sheriff’s deputy for almost 27 years until September 20, 2019, serving as the captain in charge of the Rancho San Diego Station until the February 13, 2019 search warrants executed as part of this investigation. The indictment alleges that Garmo was engaged in the unlawful acquisition, transfer, and sale of firearms during his entire tenure as the Captain of the Rancho San Diego Station.
Garmo is also accused of tipping off his cousin, who was a partner in an illegal marijuana dispensary, based on information Garmo had received of an impending warrant search of the cousin’s dispensary by Sheriff’s Deputies.
The indictment describes Garmo’s business of firearms dealing as undertaken for both financial profit and to cultivate future donors for his anticipated campaign for Sheriff of San Diego County. Most of Garmo’s firearms transactions involved the purchase and resale of “off roster” handguns, which designates guns that may be purchased by members of law enforcement but not members of the general public. While law enforcement officers are not prohibited from reselling “off roster” handguns in certain circumstances, Garmo received an explicit warning from the ATF that excessive resales for profit could violate federal law. Garmo acquired roughly 146 firearms between March 2013 and February 2019, per California’s firearms record database, and he sold or otherwise transferred 104 of them to others.
“This office will not tolerate public servants who abuse their positions of trust for personal gain,” said First Assistant U.S. Attorney Peter J. Mazza. “Law enforcement members who step outside of the law are subject to the same standards as everyone else in our community. No one deserves the fair application of the law more than all of the law-abiding men and women who wear the badge honorably to protect our communities.”
As part of his guilty plea, Leo Hamel, the owner of Leo Hamel Fine Jewelers, admitted to purchasing a variety of off roster handguns from Garmo, and engineered a series of “straw purchases” in which Garmo would falsely certify that he was acquiring an “off roster” gun for himself when in truth he was purchasing it for Hamel. Hamel further admitted that he acquired several firearms from Garmo without proper documentation through bogus, long-term firearm “loans” in exchange for money—which were sales in all but name. Hamel agreed in his plea to conducting straw purchases with Garmo and Lt. Fred Magana, and to planning with Garmo and Tilotta to construct a false paper trail to make it appear that the straw purchases were legitimate. As part of his guilty plea, Hamel has also agreed to forfeit over 200 firearms and 100,000 rounds of ammunition seized from him on February 13, 2019.
Tilotta, a Federal Firearms Licensee and the owner of Honey Badger Firearms, repeatedly facilitated Garmo’s straw purchase of firearms by accepting and submitting falsified firearms records, according to the indictment. The indictment further alleges that Tilotta sold and transferred firearms inside Garmo’s captain’s office at the Rancho San Diego Station, in violation of state and federal law.
Lt. Magana admitted in his plea agreement that he straw purchased a pair of off roster firearms for Leo Hamel at Garmo’s direction. Magana also admitted that he offered to advertise Garmo’s firearms to potential customers, but to keep Garmo’s name out of it until he found a buyer willing to close the deal.
Finally, according to the indictment, Anton aided and abetted Garmo’s unlicensed firearms dealing by helping Garmo’s firearms buyers apply for permits to carry a concealed weapon (“CCW”) as part of Anton’s “consulting” business. In exchange, the indictment alleges that Anton received cash payments from his clients and then paid a kickback to Garmo for referrals. The benefit of Anton’s “consulting” arrangement was to secure early appointments for his clients to avoid the substantial backlog of CCW applicants—a benefit that Anton provided by leveraging his relationship with a member of the CCW processing staff to whom he had made an unlawful cash payment.
Anton is also charged with obstruction of justice for repeatedly urging one of his “consulting” clients—in reality, an undercover agent—to lie to federal investigators following the search of Anton’s residence in February. Per the indictment, Anton exhorted the undercover agent not to tell investigators about the $1,000 Anton had charged the undercover agent to fast-track his CCW appointment, and instead to lie and say that Anton was helping him with his application because they were friends.
Garmo is also charged with aiding and abetting the distribution of marijuana, and with using a telephone to further a drug crime. As the Captain of Rancho San Diego station, Garmo was responsible for policing unlicensed marijuana dispensaries operating in and around Spring Valley. One such dispensary was known as “Campo Greens.” The indictment alleges that Garmo provided an advance tip to the owners of Campo Greens—including Garmo’s cousin—when he was notified that it was scheduled to be searched within 24 hours. After receiving this tip, staff at Campo Greens emptied its shelves and removed its inventory and cash to avoid a law enforcement seizure.
According to the indictment, when Garmo was notified the following morning that the planned search had been cancelled, he again notified his family member. Campo Greens reopened later that day. Weeks later, when Campo Greens was posted with a cease-and-desist letter by San Diego County Code Compliance, Garmo again reached out to an acquaintance at the County. Asking about the scheduled enforcement action against Campo Greens, Garmo inquired “Can we push it back?” His acquaintance replied, “Yes, you can.”
Garmo lied to federal agents when interviewed about the tip-off, per the indictment, falsely claiming that he had never told a dispensary about an impending search warrant because he would never have put his deputies in harm’s way.
Mazza praised the lead prosecutors on the case, Assistant U.S. Attorneys Nicholas Pilchak and Andrew Haden, as well as the investigators from the ATF and FBI. Mazza added that the U.S. Attorney’s Office wishes to extend its sincerest gratitude to the San Diego County Sheriff’s Department for initiating this investigation and for their assistance and support during its course.
“It is ATF’s duty and obligation to conduct criminal investigations whenever presented with credible evidence of violations of federal firearms laws,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Los Angeles Field Division Special Agent in Charge Carlos A. Canino. “ATF’s mission is to focus our efforts on firearms traffickers and trigger pullers. We will continue to pursue individuals engaged in this type of firearms trafficking activity while working with our law enforcement partners and the U.S. Attorney’s Office to increase public safety.”
“Law enforcement officers, at any level, who abuse their positions and the sacred trust placed in them by the communities they serve by aiding the criminal element will ultimately be brought to justice,” said FBI Assistant Special Agent-In-Charge Todd Hemmen. “The FBI will continue to relentlessly work to detect, investigate, and prosecute those officers who place personal enrichment above their allegiance to the rule of law.”
If you – or anyone you know – has information about the whereabouts of firearms listed in the attached bulletin that are registered to Garmo but have not been recovered by law enforcement, please call ATF at 858-966-1010.
DEFENDANT Criminal Case No. 19-CR-4768-GPC
Morad Marco Garmo Age: 52 La Mesa. CA
Leo Joseph Hamel Age: 62 Jamul, CA
Giovanni Vincenzo Tilotta, Age: 38 El Cajon, CA
Fred Magana Age: 42 Chula Vista, CA
Waiel Yousif Anton Age: 35 El Cajon, CA
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 922(a)(1)(A) – Engaging in the Business of Dealing in Firearms Without a License
Maximum Penalty: Five years in prison
Title 18, U.S.C., Sec. 922(a)(6) – False Statement in the Acquisition of a Firearm
Maximum Penalty: Ten years in prison
Title 18, U.S.C., Sec. 924(a)(1)(A) – False Statement in the Acquisition of a Firearm
Maximum Penalty: Five years in prison
Title 18, U.S.C., Sec. 922(b)(2) – Conducting Firearms Transaction in Violation of State Law
Maximum Penalty: Five years in prison
Title 26, U.S.C., Sec. 5861(d) – Possession of Unregistered Firearm
Maximum Penalty: Ten years in prison
Title 18, U.S.C., Sec. 1001(a)(2) – False Statement
Maximum Penalty: Five years in prison
Title 18, U.S.C., Sec. 1512(b)(3) – Attempted Obstruction of Justice
Maximum Penalty: Twenty years in prison
Title 21, U.S.C., Sec. 841 – Possession of Marijuana with Intent to Distribute
Maximum Penalty: Twenty years in prison
Title 21, U.S.C., Sec. 843(b) – Use of a Communications Facility to Further a Drug Crime
Maximum Penalty: Four years in prison
INVESTIGATING AGENCIES
Bureau of Alcohol Tobacco Firearms & Explosives (ATF)
Federal Bureau of Investigation (FBI)
*The charges and allegations contained in an indictment are merely accusations. The defendants are considered innocent unless and until proven guilty.
Former President of Transportation Company Found Guilty of Violating the Foreign Corrupt Practices Act and Other CrimesRead the Press Release
The former president of Transportation Logistics Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, was found guilty today for his role in a scheme to bribe an official at a subsidiary of Russia’s State Atomic Energy Corporation and on related fraud and conspiracy charges.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office and Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) made the announcement.
After a three-week trial, Mark Lambert, 56, of Mount Airy, Maryland, was found guilty of four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud. Sentencing has been scheduled for March 9, 2020, before U.S. District Judge Theodore D. Chuang of the District of Maryland, who presided over the trial.
According to the evidence presented at trial, Lambert participated in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, in order to secure contracts with TENEX. The trial evidence demonstrated that, over the course of years, Lambert conspired with others at TLI to make the corrupt and fraudulent bribery and kickback payments to Mikerin through offshore bank accounts associated with shell companies, at Mikerin’s direction. In order to conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided, and then Lambert and others caused TLI to wire the corrupt payments for those purported services to shell companies in Latvia, Cyprus and Switzerland.
The trial evidence further showed that Lambert and other members of the conspiracy used code words like “lucky figures,” “LF,” “lucky numbers” and “cake” to describe the payments in emails to the Russian official at an alias, personal email account under the name “Marvin Jodel.” The evidence at trial also demonstrated that Lambert and his co-conspirators caused TLI to overbill TENEX by building the cost of the bribe payments into their invoices, and TENEX thus overpaid for TLI’s services in order to fund the bribes paid to Mikerin.
This case is being investigated by the FBI’s Washington Field Office and DOE-OIG. Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland are prosecuting the case.
The Department appreciates the significant cooperation provided by its law enforcement colleagues in Switzerland’s Office of the Attorney General as well as authorities in Latvia and Cyprus.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Former President of Maryland-Based Transportation Company Found Guilty of Federal Charges, Including Violating the Foreign Corrupt Practices ActRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Mark Lambert, 56, of Mount Airy, Maryland, of four counts of violating the Foreign Corrupt Practices Act (FCPA), two counts of wire fraud, and one count of conspiracy to violate the FCPA and commit wire fraud, for his role in a scheme to bribe an official at a subsidiary of Russia’s State Atomic Energy. Lambert is the former president of Transport Logistics International, Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, including to the Russian Federation.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Inspector General Teri L. Donaldson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG); and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington, D.C. Field Office.
According to the evidence presented at his three-week trial, Lambert engaged in a scheme to bribe Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, in order to secure contracts with TENEX.
The trial evidence demonstrated that, over the course of years, Lambert conspired with others at TLI to make the corrupt and fraudulent bribery and kickback payments to Mikerin through offshore bank accounts associated with shell companies, at Mikerin’s direction. In order to conceal the bribe payments, Lambert and his co-conspirators caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided, and then Lambert and others caused TLI to wire the corrupt payments for those purported services to shell companies in Latvia, Cyprus and Switzerland.
Lambert faces a maximum of five years in federal prison for the conspiracy to violate the FCPA and commit wire fraud. He also faces a maximum of 20 years in federal prison for each of two counts of wire fraud; a maximum of five years in federal prison for each of four counts of violating the FCPA. The jury acquitted Lambert of three counts of violating the FCPA and of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Lambert on March 9, 2020 at 2 p.m.
Vadim Mikerin, 60, a Russian official formerly residing in Chevy Chase, Maryland, previously pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA and was sentenced to four years in federal prison.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski commended the DOE-OIG and the FBI for their work in the investigation, and thanked the Criminal Division’s Office of International Affairs and law enforcement in Switzerland, Latvia and Cyprus for providing valuable assistance with the investigation and prosecution of the case. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney David I. Salem and Assistant Chief Vanessa A. Sisti and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, who are prosecuting the case.
# # #
Former Pollock Inmate Sentenced for Attack on Prison Staff MemberRead the Press Release
ALEXANDRIA, La. - A former Pollock inmate was sentenced today to seven years in federal prison for attacking a Pollock staff member, said U.S. Attorney David C. Joseph.
Brandon L. Jones, 38, who is in federal custody, pleaded guilty on August 20, 2019, to one count of assaulting a federal officer. In his plea, he admitted he attacked a staff member in the kitchen area at U.S. Penitentiary Pollock, slammed her to the table and threw her to the floor. Correctional officers responded to the scene and took Jones into custody. The staff member suffered multiple injuries, and underwent surgery to repair a ruptured ligament in her thumb. Jones is currently serving a 188-month federal prison sentence for possession with intent to distribute cocaine.
The FBI and U.S. Bureau of Prisons investigated the case. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
# # #
Former Personal Care Aide Pleads Guilty to Health Care FraudRead the Press Release
WASHINGTON – Hope Falowo, 53, of Bowie, Maryland, pled guilty today to a federal charge of health care fraud stemming from a scheme in which she caused the District of Columbia’s Medicaid program to be defrauded out of approximately $400,000.
The announcement was made by U.S. Attorney Jessie K. Liu; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; and Daniel W. Lucas, District of Columbia Inspector General.
Falowo pled guilty in the U.S. District Court for the District of Columbia, to one count of health care fraud. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Falowo faces a likely range of 18 to 24 months in prison and a fine of up to $250,000. The plea agreement calls for Falowo to pay $316,887 in restitution and $316,887 in a forfeiture money judgment. The Honorable Colleen Kollar-Kotelly scheduled sentencing for March 20, 2020.
Falowo worked as a personal care aide for twelve home health agencies at various times between January 2013 and March 2017. The home health agencies employed Falowo to assist D.C. Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Falowo was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Between January 2013 and March 2017, Falowo caused the D.C. Medicaid Program to issue payments totaling $399,000 for services that she did not render. As part of her fraud scheme, she paid kickbacks to beneficiaries and submitted false timesheets to different home health agencies claiming that she provided 24 hours or more of personal care aide services. She also submitted false timesheets claiming to have provided personal care aide services while she was out of the country. Falowo fraudulently earned more than $300,000 in wages as a result of the healthcare fraud scheme.
In announcing the plea, U.S. Attorney Liu, Assistant Attorney General Benczkowski, Special Agent in Charge Dunham, Special Agent in Charge Dixon of U.S. HHS-OIG, and District of Columbia Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and the District of Columbia Office of Inspector General. They also expressed appreciation for the work of Paralegal Specialist Lauren Fernandez. Finally, they commended the work of Trial Attorney Amy Markopoulos, who investigated and prosecuted the case.
Former Paraguayan Congresswoman and Two Others Charged in International Money Laundering ConspiracyRead the Press Release
TRENTON, N.J. – A former member of Paraguay’s Congress, her husband and another senior member of a Paraguayan money exchange business are charged by complaint for their participation in an international money laundering conspiracy, U.S. Attorney Craig Carpenito announced today.
Cynthia Elizabeth Tarrago Diaz, 40; Raimundo Va, 44; and Rodrigo Alvarenga Paredes, 33, are charged in a criminal complaint with conspiracy to commit money laundering. Tarrago and Va were arrested by the FBI on Thursday after they arrived in Newark as part of their unlawful money laundering activities. They appeared today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and were detained. Alvarenga remains at large in Paraguay.
“As alleged in the complaint, Tarrago, while a former member of Paraguay’s legislature, brazenly offered to launder the proceeds of international drug trafficking, and even went so far as to offer to traffic in cocaine herself,” U.S. Attorney Carpenito said. “When we stop this kind of money laundering activity, we help to stop the underlying drug trafficking activity that motivates and depends upon it. By eliminating the means by which international drug trafficking organizations launder their ill-gotten gains, we help to keep New Jersey safer by limiting the flow of drugs into our communities from outside the United States.”
“Money laundering is illegal no matter your position in society,” said Special Agent in Charge Gregory W. Ehrie. “The FBI follows the evidence and makes arrests based on the actions of those individuals. We will find and bring to justice anyone who uses unlawful means to enrich themselves with no regard for the law.”
According to documents filed in this case and statements made in court:
Tarrago is a former member of Paraguay’s Congress, and recently announced her intention to run for mayor of the capital district of Asunción. Tarrago and Va, her husband, agreed to accept at least $2 million in United States currency from two individuals who represented themselves to be narcotics traffickers. Believing the money to be proceeds of unlawful narcotics trafficking, they laundered the funds through an international network of accounts to disguise the unlawful source of the proceeds.
Tarrago and Va traveled to New Jersey and Florida on multiple occasions and accepted approximately $800,000 in United States currency from the purported drug traffickers, caused those funds to be laundered through the conspiracy’s network of accounts, and ultimately transferred the money back to an account maintained by the purported drug traffickers. Members of the conspiracy generated fraudulent invoices that stated legitimate business reasons for the transfers of laundered funds to the purported drug traffickers’ account. On multiple occasions during the purported drug dealers’ meetings with Tarrago and Va, Tarrago offered to assist them with procuring large quantities of cocaine from Paraguay at an inexpensive price.
Unbeknownst to Tarrago and Va, the currency they accepted from the purported drug traffickers and caused to be laundered was not actually illicit drug proceeds. The funds were provided by two undercover FBI agents as part of an extensive undercover investigation of the money laundering network. During the investigation, the undercover agents met with Tarrago and Va in the United States on numerous occasions, and obtained video and audio recordings of their interactions with Tarrago and Va, which include details of the money laundering network. The evidence uncovered during the investigation revealed that Alvarenga, a high-ranking member of a large money-exchange company in Paraguay, coordinated the laundering of the funds that the undercover agents provided to Tarrago and Va.
The money laundering conspiracy count carries a statutory maximum potential penalty of 20 years in prison and a maximum fine of the greater of $500,000 or twice the value of the funds involved in the conspiracy.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charges. He also thanked the Department of Justice’s Office of International Affairs for their assistance in the case.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Former Marijuana Warehouse Employee Convicted of Planning $2 Million Armed Heist with Corrupt L.A. County Sheriff’s DeputyRead the Press Release
LOS ANGELES – A former employee of a marijuana distribution warehouse was found guilty by a jury today of federal criminal charges that he conspired with a corrupt Los Angeles County Sheriff’s Department deputy to rob his former employer of $2 million dollars’ worth of marijuana and cash through an armed robbery staged to look like a legitimate law enforcement operation.
Christopher Myung Kim, 29, of Walnut, was found guilty of conspiracy to distribute marijuana, possession with intent to distribute marijuana, conspiracy against rights, deprivation of rights under color of law, and brandishing a firearm in furtherance of a drug trafficking crime.
According to evidence presented at his four-day trial, at approximately 3 a.m. on October 29, 2018, LASD Deputy Marc Antrim, 42, of South El Monte, and six co-conspirators, robbed a marijuana distribution warehouse in downtown Los Angeles. Antrim, who was assigned to the LASD station in Temple City, was arrested by federal authorities for his role in the robbery and agreed to cooperate with the government. Antrim, who was dressed as an armed deputy, flashed his badge and a fake search warrant to gain access to the warehouse and detain the warehouse’s security guards in a cage in the back of an LASD Ford Explorer.
Days before the robbery, Kim had supplied Antrim with inside information about the robbery, including key details about the warehouse’s layout, operation and security. Kim also gave Antrim the warehouse’s blueprints, noting where security guards likely would be stationed and which rooms Antrim and their co-conspirators should “hit” to ensure that the most valuable items were stolen.
During the two-hour robbery, Antrim and the fake law enforcement team absconded with more than 1,200 pounds of marijuana, two large commercial safes containing more than $600,000 in cash and money orders, and other items of value from the warehouse.
Hours after the robbery, Antrim drove a rental truck to a storage facility in Walnut, where Kim had rented a storage unit the day of the robbery. Antrim and co-conspirator Kevin McBride, 44, of Glendora, delivered $1.5 million dollars’ worth of stolen marijuana and marijuana products to Kim to resell for profit. The next day, Kim and others unloaded the stolen marijuana from the storage unit into Kim’s white Lexus RX, a Subaru SUV, and a U-Haul moving truck.
Kim had worked at the warehouse for years, but a dispute with its owners left him “bitterly disgruntled,” according to court documents. Evidence admitted at trial, including Kim’s social media communications, showed that Kim left his job just weeks before the robbery and conspired with Antrim to orchestrate the raid both for profit and to get revenge against his own bosses.
Antrim, who was arrested on November 8, 2018 on a federal criminal complaint, pleaded guilty on March 4 to multiple felonies in connection with the armed robbery. His sentencing is scheduled for March 16. Five other defendants, including McBride, also have pleaded guilty for their involvement in the robbery and will be sentenced early next year.
United States District Judge Virginia A. Phillips scheduled a February 10 sentencing hearing, at which time Kim will face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 12 years in prison.
The jury acquitted Kim of possession with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime.
This case was investigated by the Drug Enforcement Administration, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. LASD’s Internal Criminal Investigations Bureau provided substantial assistance to the federal investigation.
This matter is being prosecuted by Assistant United States Attorneys Lindsey Greer Dotson of the Public Corruption and Civil Rights Section and Joseph D. Axelrad of the Violent and Organized Crime Section.
Former Hollywood Digital Marketing Executive and Professional Poker Player Admits Embezzling $22 Million from EmployerRead the Press Release
LOS ANGELES – A former executive at StyleHaul Inc., a digital marketing company that represents “influencers” on Instagram and YouTube, pleaded guilty today to federal criminal charges for embezzling more than $22 million from his employer and then using the stolen money for personal expenses and crypto-currency gambling.
Dennis Blieden, 30, formerly of Santa Monica and now a resident of Cincinnati, pleaded guilty to one count of wire fraud and one count of aggravated identity theft.
According to his plea agreement, between October 2015 and March 2019, Blieden was the controller and vice president of accounting and finance for StyleHaul, a digital company once based in Hollywood, but which relocated to London earlier this year.
As part of his job, Blieden had control over the company’s bank accounts, and he abused this authority to wire company money to his personal bank account, according to a plea agreement. Blieden then used the stolen money to pay for personal expenses and to fund his crypto-currency accounts.
To conceal his scheme, Blieden made fraudulent entries in StyleHaul’s accounting records, falsely representing that the illegal wire transfers he made were authorized payments of money due to StyleHaul clients. Blieden also falsely indicated on one of StyleHaul’s bank accounts that wire transfers to Blieden’s personal bank account were “equity” draws that the company owed him, according to court documents. Furthermore, Blieden created fictitious wire transfer letters that purported to be from Western Union and were designed to make it appear that he had caused wire transfers from StyleHaul to pay money it purportedly owed to a client, the plea agreement states.
Blieden also disguised his fraud by creating a fictitious lease in May 2018 for the rental of a condominium in Rosarito Beach, Mexico, which bore a forged signature of a StyleHaul executive, according to the plea agreement. Blieden admitted that he illicitly transferred $230,000 of StyleHaul’s funds by falsely representing that the condominium was being rented for business purposes for StyleHaul’s clients and employees. This conduct forms the basis of the aggravated identity theft charge.
Blieden, who has entered and won professional poker tournaments, also frequently engaged in online gambling with crypto-currency he purchased with embezzled money, according to court documents. During the course of the alleged scheme, Blieden used money he stole from his employer to write $1,204,000 in personal checks to poker players, $1,134,956 was used to pay off his credit cards, and $8,473,734 was transferred to Blieden’s crypto-currency accounts, according to court documents.
On February 21 and 22, shortly before his dismissal from StyleHaul, Blieden entered into two poker tournaments, wherein the buy-in amounts were $52,000 and $103,000, respectively, court papers state.
United States District Judge André Birotte Jr. scheduled a March 20 sentencing hearing, at which time Blieden will face a statutory maximum sentence of 22 years in federal prison.
The FBI investigated this case.
This matter is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.
Former Hillsborough Community College Professor Sentenced to More Than 11 Years for Possessing and Distributing Child Sex Abuse VideosRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung today sentenced Howard Joseph Vorder Bruegge, III (36, Tampa) to 11 years and 8 months in federal prison for possessing and distributing child pornography.
Vorder Bruegge had pleaded guilty on March 29, 2019.
According to court documents, Vorder Bruegge, using the internet monikers “JoeBlow73” and “JoeBlowFL,” distributed child sex abuse videos on multiple occasions. He also collected child pornography on his cellphone, including sex abuse videos of babies and toddlers. His collection included more than 200 images and 47 videos depicting child sex abuse, including videos known by law enforcement to have been produced in the Tampa Bay area. Vorder Bruegge’s devices also contained conversations where he discussed a desire to sexually abuse his friend’s children.
Vorder Bruegge also used his phone to film and publically share voyeur videos on the internet and utilized peepholes in college campus bathrooms to film students while they were in restroom stalls. He then distributed those videos on websites that hosted voyeur content. Vorder Bruegge’s phone contained at least four videos capturing adult males through peepholes in public HCC restrooms.
“All child exploitation is sickening, but it is deeply disturbing when a person who held a position of trust is the criminal who magnified the harm to the child victims,” said HSI Tampa Assistant Special Agent in Charge Michael Cochran.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Frank Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Former Fort Polk Soldier Sentenced to 15 Years in Federal Prison for Producing Child PornographyRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Brandon Hall, 23, a former Fort Polk Soldier from Yakima, Washington, was sentenced on November 19, 2019, by U.S. District Judge James D. Cain Jr., to 15 years in federal prison followed by 10 years of supervised release, for production of child pornography. Hall pleaded guilty on April 18, 2019.
According to court documents, from November 30, 2017, to December 26, 2017, Hall had an online sexual relationship with a 14-year-old minor female living in Missouri. During their time communicating online via web camera, the defendant solicited and captured sexually explicit video of the minor.
The FBI and U.S. Army Criminal Investigation Command investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
# # #
Former Erie-area Resident Found Guilty of 8 Counts of Production of Child PornographyRead the Press Release
ERIE, Pa. - After deliberating an hour on Thursday afternoon, a federal jury of six men and six women found Scott A. Anthony guilty of eight counts of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Scott A. Anthony, 49, of Pleasantville, PA was tried before United States District Judge David S. Cercone in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Christian A. Trabold, who prosecuted the case, the evidence presented at trial established that Anthony produced sexually explicit videos depicting two minors. Anthony surreptitiously recorded the two minor victims while they were in the bathroom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for March 25, 2020, at 1:00 p.m. The law provides for a total sentence of 240 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Anthony was immediately taken into custody upon conviction.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Millcreek Police Department conducted the investigation that led to the prosecution of Anthony.
Former Caregivers Plead Guilty to Violating Rights of Resident with Developmental DisabilityRead the Press Release
Sherry K. Paulo, 54, and Anthony R. Flores, 59, husband and wife, and former employees of a Missouri residential treatment facility, pleaded guilty today in federal court in the Western District of Missouri to criminal civil rights charges arising from the death of C.D., a Missouri ward of the state with developmental disabilities. Paulo and Flores each pleaded guilty to one count of willfully failing to provide necessary medical care to C.D., resulting in injury to and the death of C.D. Paulo also pleaded guilty to one count of health care fraud arising from her efforts to hide the fact of C.D.’s death.
“The defendants were entrusted with caring for some of our society’s most vulnerable individuals, who cannot advocate or care for themselves,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “They abused that trust by depriving the victim of obvious and necessary medical care and then taking extraordinary measures to cover up their wrongdoing. The Department of Justice will continue to hold accountable those who commit such violations.”
“They were responsible to provide care to a vulnerable victim, but today admitted they ignored obvious signs of medical distress and failed to even call 911. Instead, they hid him away in their unfinished basement until he died,” said U.S. Attorney Tim Garrison of the Western District of Missouri. “They may have thought they could hide the body in a concrete-filled crate and get away with it. But when the civil rights of a vulnerable victim are violated, we will hold them accountable for their inhumane and criminal conduct.”
“The FBI is the primary federal agency responsible for investigating allegations regarding violations of federal civil rights, and we continue to hold that responsibility as a top priority,” said Timothy R. Langan, Special Agent in Charge of the FBI in Kansas City, Missouri. “When individuals, such as the defendants, abuse their power and neglect their responsibility to care for some of our most susceptible and defenseless members of society, it is not only wrong, it is criminal. Today's guilty plea emphasizes the continued commitment to hold all perpetrators accountable.”
“Flores and Paulo not only let C.D. die, they then compounded their crime by hiding the body in a storage unit,” said Curt L. Muller, Special Agent in Charge of the Office of Inspector General. “We will continue working with our law enforcement partners to fight for such vulnerable people and the government health programs upon which they depend.”
According to the plea agreements, Paulo and Flores worked as caregivers at Second Chance Homes, an organization that provided housing and care for developmentally disabled persons through a Missouri Department of Mental Health initiative. Victim C.D. had been a resident at Second Chance Homes since 2008.
Paulo and Flores admitted in their pleas that they observed C.D.’s health decline beginning in 2014. C.D. became unhealthily underweight and pale, and he grew more obviously ill over a period of several months. During this time, Paulo occasionally took C.D. out of his designated residence and put him in the basement of the personal home she shared with Flores.
C.D. suffered an acute medical emergency while in the basement of Flores’s and Paulo’s personal home. Despite observing C.D.’s physical distress and obvious medical need at that time, Paulo and Flores admitted that they purposefully did not seek medical care for C.D. C.D. died while in Flores’s and Paulo’s personal home.
In the plea agreement, Paulo admitted that she subsequently placed C.D.’s body in a trashcan and transported it to C.D.’s assigned residence, where she and Flores put it in a wooden crate and filled the wooden crate with cement. Paulo and Flores then transported the crate to Paulo’s storage unit.
Medicaid provided funding for C.D.’s care at Second Chance Homes. Paulo admitted that after C.D. died, she submitted, or caused to be submitted, claims to Medicaid for services that she purportedly rendered to C.D. Paulo admitted that at the time she submitted, or caused to be submitted, those claims, she knew that C.D. was dead and that the claims were thus false. The amount wrongfully paid by Medicaid, between approximately September 2016 and April 2017, was $106,795.00.
Paulo also admitted that on April 17, 2017, she reported C.D. missing to the Fulton, Missouri Police Department. Paulo and Flores both admitted that they falsely told the police that they had seen C.D. alive and well, even after they knew C.D. was deceased.
Under Paulo’s plea agreement, she faces a maximum of 210 months incarceration. Under Flores’s plea agreement, he faces a maximum of 188 months incarceration. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case was investigated by the Jefferson City Resident Agency of the FBI Kansas City Division and the St. Louis Field Office of the Department of Health and Human Services Office of the Inspector General Kansas City Region. The case is being prosecuted by Assistant United States Attorneys Cindi Woolery and Gregg Coonrod of the U.S. Attorney’s Office, Special Litigation Counsel Julia Gegenheimer and Trial Attorney Janea Lamar of the Department of Justice Civil Rights Division Criminal Section. The Fulton, Missouri Police Department and Callaway County Prosecutor Christopher Wilson contributed significantly to the successful investigation and prosecution of this matter.
Former CIA Officer Sentenced for Conspiracy to Commit EspionageRead the Press Release
A former Central Intelligence Agency (CIA) case officer was sentenced today to 19 years in prison for conspiring to communicate, deliver and transmit national defense information to the People’s Republic of China (PRC).
“In just over a year, we have convicted three Americans for committing espionage offenses on behalf of the Chinese government. Each has now received a sentence of at least a decade,” said Assistant Attorney General for National Security John C. Demers. “Sadly, all three of them are former members of the U.S. Intelligence Community. These convictions and sentences should send a strong message to current and former security clearance holders: be aware that the Chinese government targets you -- and if you betray us, be aware that the Department of Justice will hold you accountable.”
“As I stated at the time of the defendant’s admission of guilt, those Americans entrusted with our government’s most closely held secrets have a tremendous responsibility to safeguard that information,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Instead of embracing that responsibility and honoring his commitment to not disclose national defense information, Lee sold out his country, conspired to become a spy for a foreign government, and then repeatedly lied to investigators about his conduct. This prosecution and sentence should serve as a clear warning to others who are contemplating selling out to the highest bidder and capitalizing on their position of trust. My thanks to the prosecutors, agents and our intelligence community partners for their terrific work on this important case.”
According to court documents, Jerry Chun Shing Lee, 55, left the CIA in 2007 and began residing in Hong Kong. In April 2010, two Chinese intelligence officers (IOs) approached Lee and offered to pay him for national defense information he had acquired as a CIA case officer. The IOs also told Lee they had prepared for him a gift of $100,000 cash, and they offered to take care of him “for life” in exchange for his cooperation.
Beginning sometime in May 2010 and continuing into at least 2011, Lee received requests for information, or taskings, from the Chinese IOs. The majority of the taskings asked Lee to reveal sensitive information about the CIA, including national defense information. On May 14, 2010, Lee made or caused to be made a cash deposit of $138,000 HKD (approximately $17,468 in USD) into his personal bank account in Hong Kong. This would be the first of hundreds of thousands of dollars (USD equivalent) in cash deposits Lee made or caused to be made into his personal HSBC account from May 2010 through December 2013.
On May 26, 2010, Lee created on his laptop computer a document that described, among other things, certain locations to which the CIA would assign officers with certain identified experience, as well as the particular location and timeframe of a sensitive CIA operation. After Lee created this document, he transferred it from his laptop to a thumb drive. The document included national defense information of the United States that was classified at the Secret level.
In August 2012, the FBI conducted a court-authorized search of a hotel room in Honolulu, Hawaii, registered in Lee’s name. The search revealed that Lee possessed the thumb drive within his personal luggage. The FBI forensically imaged the thumb drive and later located the document in the unallocated space of the thumb drive, meaning that it had been deleted. The search also revealed that Lee possessed a day planner and an address book that contained handwritten notes made by Lee that mostly related to his work as a CIA case officer prior to 2004. These notes included, among other things, intelligence provided by CIA assets, true names of assets, operational meeting locations and phone numbers, and information about covert facilities.
“Mr. Lee served as a CIA officer and was entrusted with extremely sensitive national security information, and he broke that trust with no regard for the consequences,” said John Brown, Assistant Director of Counterintelligence for the FBI. “His actions aided a foreign government, hurt our national security, and jeopardized the safety of his former intelligence colleagues. The FBI takes such acts of betrayal very seriously and will be relentless in pursuing these cases. I want to thank the agents, analysts, and prosecutors who worked tirelessly to bring Mr. Lee to justice.”
“Lee betrayed his own country for greed and put his former colleagues at risk. The seriousness of his betrayal and crime is demonstrated by today's sentencing,” said Timothy R. Slater, Assistant Director in Charge of the FBI's Washington Field Office. “The FBI and our partners will continue to aggressively pursue those who put our nation's security in danger to benefit our adversaries. The U.S. government will not stand by while the Chinese intelligence service targets our government employees for their gain and to the detriment of U.S. national security.”
During 2012, Lee had a series of interviews with the CIA. Throughout these interviews, in response to questions about what the IOs had wanted from him, Lee intentionally failed to disclose that he had received taskings from them. In May 2013, the FBI conducted multiple interviews with Lee. During one of those interviews, Lee admitted that he had received taskings but stated that he had not kept the written requests because they would tend to incriminate him.
The FBI interviewers also confronted Lee with the sensitive document discovered on the thumb drive. Lee falsely denied that he possessed it, claimed not to know who created it, and denied knowing why it would have been on his computer. He also denied deleting the document. Approximately one week later, in another FBI interview, Lee admitted that he created the document in response to two taskings from the IOs and transferred it to a thumb drive. He also said he thought about giving it to the IOs but never did.
In a January 2018 interview with the FBI, Lee falsely denied that he ever kept any work-related notes at home. When shown a photocopy of the front covers of the day planner and address book described above, as well as a copy of his handwriting therein, Lee falsely denied that he possessed the notebooks while transiting through Hawaii in August 2012. Lee also falsely denied that either of the books contained notes from asset meetings but conceded that any such notes would be classified. Further, Lee falsely denied that he ever put the sensitive document on a thumb drive, notwithstanding the fact that he had admitted having done so when interviewed by FBI agents in May 2013. Finally, Lee also falsely told the interviewing agents that in drafting this document he was writing down things “more [like] a diary thing,” notwithstanding the fact that in May 2013 he had told FBI agents that he had created the document in response to two taskings from the Chinese IOs.
Lee pleaded guilty to conspiracy to deliver national defense information to aid a foreign government on May 1.
John C. Demers, Assistant Attorney General for National Security, G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Timothy R. Slater, Assistant Director of the FBI’s Washington Field Office, made the announcement of the sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Neil Hammerstrom and Trial Attorneys Patrick T. Murphy and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case with assistance from Assistant U.S. Attorney Inayat Delawala.
Former CIA Officer Sentenced for Conspiracy to Commit EspionageRead the Press Release
ALEXANDRIA, Va. – A former Central Intelligence Agency (CIA) case officer was sentenced today to 19 years in prison for conspiring to communicate, deliver and transmit national defense information to the People’s Republic of China.
“As I stated at the time of the defendant’s admission of guilt, those Americans entrusted with our government’s most closely held secrets have a tremendous responsibility to safeguard that information,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Instead of embracing that responsibility and honoring his commitment to not disclose national defense information, Lee sold out his country, conspired to become a spy for a foreign government, and then repeatedly lied to investigators about his conduct. This prosecution and sentence should serve as a clear warning to others who are contemplating selling out to the highest bidder and capitalizing on their position of trust. My thanks to the prosecutors, agents and our intelligence community partners for their terrific work on this important case.”
According to court documents, Jerry Chun Shing Lee, 55, left the CIA in 2007 and began residing in Hong Kong. In April 2010, two Chinese intelligence officers (IOs) approached Lee and offered to pay him for national defense information he had acquired as a CIA case officer. The IOs also told Lee they had prepared for him a gift of $100,000 cash, and they offered to take care of him “for life” in exchange for his cooperation.
“In just over a year, we have convicted three Americans for committing espionage offenses on behalf of the Chinese government. Each has now received a sentence of at least a decade,” said Assistant Attorney General for National Security John C. Demers. “Sadly, all three of them are former members of the U.S. Intelligence Community. These convictions and sentences should send a strong message to current and former security clearance holders: be aware that the Chinese government targets you - - and if you betray us, be aware that the Department of Justice will hold you accountable.”
Beginning sometime in May 2010 and continuing into at least 2011, Lee received requests for information, or taskings, from the Chinese IOs. The majority of the taskings asked Lee to reveal sensitive information about the CIA, including national defense information. On May 14, 2010, Lee made or caused to be made a cash deposit of $138,000 HKD (approximately $17,468 in USD) into his personal bank account in Hong Kong. This would be the first of hundreds of thousands of dollars (USD equivalent) in cash deposits Lee made or caused to be made into his personal HSBC account from May 2010 through December 2013.
“Lee betrayed his own country for greed and put his former colleagues at risk. The seriousness of his betrayal and crime is demonstrated by today's sentencing,” said Timothy R. Slater, Assistant Director in Charge of the FBI's Washington Field Office. “The FBI and our partners will continue to aggressively pursue those who put our nation's security in danger to benefit our adversaries. The US government will not stand by while the Chinese intelligence service targets our government employees for their gain and to the detriment of US national security.”
On May 26, 2010, Lee created on his laptop computer a document that described, among other things, certain locations to which the CIA would assign officers with certain identified experience, as well as the particular location and timeframe of a sensitive CIA operation. After Lee created this document, he transferred it from his laptop to a thumb drive. The document included national defense information of the United States that was classified at the Secret level.
In August 2012, the FBI conducted a court-authorized search of a hotel room in Honolulu, Hawaii registered in Lee’s name. The search revealed that Lee possessed the thumb drive within his personal luggage. The FBI forensically imaged the thumb drive and later located the document in the unallocated space of the thumb drive, meaning that it had been deleted. The search also revealed that Lee possessed a day planner and an address book that contained handwritten notes made by Lee that mostly related to his work as a CIA case officer prior to 2004. These notes included, among other things, intelligence provided by CIA assets, true names of assets, operational meeting locations and phone numbers, and information about covert facilities.
During 2012, Lee had a series of interviews with the CIA. Throughout these interviews, in response to questions about what the IOs had wanted from him, Lee intentionally failed to disclose that he had received taskings from them. In May 2013, the FBI conducted multiple interviews with Lee. During one of those interviews, Lee admitted that he had received taskings but stated that he had not kept the written requests because they would tend to incriminate him.
The FBI interviewers also confronted Lee with the sensitive document discovered on the thumb drive. Lee falsely denied that he possessed it, claimed not to know who created it, and denied knowing why it would have been on his computer. He also denied deleting the document. Approximately one week later, in another FBI interview, Lee admitted that he created the document in response to two taskings from the IOs and transferred it to a thumb drive. He also said he thought about giving it to the IOs but never did.
In a January 2018 interview with the FBI, Lee falsely denied that he ever kept any work-related notes at home. When shown a photocopy of the front covers of the day planner and address book described above, as well as a copy of his handwriting therein, Lee falsely denied that he possessed the notebooks while transiting through Hawaii in August 2012. Lee also falsely denied that either of the books contained notes from asset meetings but conceded that any such notes would be classified. Further, Lee falsely denied that he ever put the sensitive document on a thumb drive, notwithstanding the fact that he had admitted having done so when interviewed by FBI agents in May 2013. Finally, Lee also falsely told the interviewing agents that in drafting this document he was writing down things “more [like] a diary thing,” notwithstanding the fact that in May 2013 he had told FBI agents that he had created the document in response to two taskings from the Chinese IOs.
Lee pleaded guilty to conspiracy to deliver national defense information to aid a foreign government on May 1.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Timothy R. Slater, Assistant Director of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Neil Hammerstrom and Trial Attorney Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case with assistance from Assistant U.S. Attorney Inayat Delawala.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-89.
Five-Time Felon Sentenced to 10 Years for Gun CrimeRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 10 years in prison for being a felon in possession of a firearm.
According to court documents, on February 3, Richmond Police officers were conducting a routine patrol in Creighton Court when they observed Anthony Peters, 29, and another person, Gary Garrison, walking in the 2000 block of Creighton Road. The officers exited their vehicle to approach the individuals because they suspected them both to have been banned from Creighton Court by Richmond Revitalization and Housing Authority. While speaking with Peters and Garrison, the officers noticed a bulge in Peters’s waistband, and conducted a pat down of Peters. During the pat down, the officer immediately discovered the firearm and removed it from Peters.
Peters was a five-time felon at the time that he possessed the firearm in Creighton Court. Law enforcement also found 3.5 grams of “crack” cocaine in Peter’s possession.
On November 1, Gary Garrison was sentenced to 8 years in prison for possessing a firearm while being a convicted felon while in Creighton Court on another date.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Stephen E. Anthony 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. 3:19-cr-82.
Five More Individuals Plead Guilty in Federal Court for Felony Lane Gang-Type Criminal Activity in Baton Rouge and Across LouisianaRead the Press Release
United States Attorney Brandon J. Fremin announced today the recent convictions of five additional defendants charged with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud. The charges stem from a lengthy federal, state, and local investigation that has spanned numerous jurisdictions across several states and has resulted in convictions against ten (10) individuals for participating in a fraudulent scheme targeting victims in the Middle District of Louisiana.
From August 2016 through February 2017, the defendants traveled through numerous states, including Louisiana, breaking into unattended vehicles, stealing the victims’ licenses, checkbooks, and credit and debit cards, and then using the stolen items to conduct fraudulent financial transactions at the victims’ banks.
- Michael D. Gibbs, age 27, of Ft. Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud;
- Brandon J. Gassett, age 29, of Ft. Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud;
- Raymond B. Mathews, age 33, of Ft. Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud;
- Geoffrey D. Green, age 36, Lauderhill, Florida, pled guilty to conspiracy to commit bank fraud; and
- Frank Jackson, age 25, of Lauderdale Lakes, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud.
U.S. Attorney Brandon J. Fremin stated, “The convictions of ten interstate criminals in this case demonstrate that law enforcement, working together, will leave no stone unturned to bring all those involved in criminal activity to justice. This type of organized crime creates undue hardships for the unsuspecting victims who should feel confident that we remain committed to bringing these types of offenders to justice. I want to congratulate all of our federal, state, and local partners around the country for their tireless efforts.”
Bryan A. Vorndran, FBI New Orleans Field Office Special Agent in Charge stated, “The convictions imposed on these five defendants bring closure to their two-year crime spree which spanned across several U.S. states; stealing the identities of a number of consumers and leaving them with significant financial hardships. The collaboration demonstrated in this case by the Jefferson Parish Sheriff's Office, East Baton Rouge Sheriff's Office, Florida Highway Patrol, U.S. Attorney's Office, and East Baton Rouge District Attorney's Office, as well as all of our other federal, state, and local law enforcement partners, in Louisiana, Mississippi, Florida, North Carolina, and Wyoming was second to none.”
This matter is being investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, Ascension Parish Sheriff’s Office, Walker Police Department, Lafayette Police Department, Covington Police Department, Oxford (Mississippi) Police Department, Florida Highway Patrol and Asheville (North Carolina) Police Department. The investigation has received substantial assistance from the 19th JDC District Attorney’s Office in East Baton Rouge, Louisiana, the Johnson County, Wyoming Prosecuting Attorney’s Office, and the Third Judicial Circuit of Florida State Attorney’s Office. This matter is being prosecuted by Assistant United States Attorneys Alan Stevens and Chris Dippel, who both serve as Deputy Criminal Chiefs, and former AUSA Cal Leipold.
Final defendant sentenced to prison in Operation Vanilla Gorilla, one year after indictmentsRead the Press Release
SAVANNAH, GA: The investigation and prosecution dubbed Operation Vanilla Gorilla reached its ultimate milestone this week with the federal prison sentence of the final defendant, representing the wrap-up one year after indictments.
Shawn Hadden, a/k/a “Shorty,” 43, of Bloomingdale, Ga., was sentenced Tuesday, Nov. 19, 2019 in U.S. District Court by Judge R. Stan Baker to 148 months in prison for Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, and Possession of a Firearm by a Convicted Felon, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Hadden pled guilty to the charges in March.
Hadden’s sentence follows a 280-month sentence for a key defendant, Trevor Aines, a/k/a “Sticks,” 30, of Garden City, Ga. His sentence, the longest of any of the defendants, followed a guilty plea to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, and to Possession of a Firearm in Furtherance of a Drug-Trafficking Crime.
After completion of their prison terms, Hadden and Aines will serve a period of supervised release. There is no parole in the federal system.
“It’s significant that the final sentence in Vanilla Gorilla was delivered one year after our office announced the indictments in this operation,” said U.S. Attorney Christine. “While the law enforcement agencies and prosecutors mark the speedy and satisfying resolution of these cases, the citizens of the Southern District can celebrate that their neighborhoods are safer because 43 dangerous felons have been relocated to federal prison.”
Operation Vanilla Gorilla was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations. It targeted a major drug trafficking conspiracy linked to the Ghost Face Gangsters, a violent, white supremacist street gang that started and spread from Georgia’s prison system. The 43 men and women were named in November 2018 in a 93-paged, 83-count federal indictment for a multitude of federal offenses, including trafficking methamphetamine, cocaine and heroin, illegal firearms possession and counterfeiting.
The drug-trafficking conspiracy began as early as 2015 until the date of the indictments, having distributed illegal drugs through a large part of the Southern District including Bryan, Chatham, Effingham, Emanuel, Evans and Tattnall counties. In addition to illegal drug seizures as part of the investigation, investigators also seized 36 firearms, including stolen weapons, a rifle with a silencer and a sawed-off shotgun.
All of the defendants pled guilty to the charges. Most of these defendants were on probation or parole when they committed the offenses, so their federal sentences will run consecutive to the sentences for violating state probation or parole.
“This criminal organization poisoned Georgia communities with their activities” said ATF Special Agent in Charge Arthur Peralta. “This sentence brings a fitting close to this investigation and should serve as an example to anyone contemplating this kind of criminal activity. ATF is proud to be a part of the Organized Crime Drug Enforcement Task Forces and we will continue to work together every day to rid our streets of illicit narcotics and take guns out of the hands of criminals.”
Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division commented, “It’s uplifting to see the final chapter of this investigation come to a victorious end, not only for the entire law enforcement community, but also for the citizens of the Southern District who were directly impacted by this white supremacist gang. This gang wreaked havoc by distributing methamphetamine, cocaine and heroin, while leaving a destructive path of violence along the way. Today, we are proud to have shut down this once-thriving criminal network. I want to thank our federal, state and local law enforcement counterparts and the U.S. Attorney’s Office who aided in making this investigation a success.”
“At the end of the day, citizens want to feel safe in their communities,” said Georgia Bureau of Investigation (GBI) Director Vic Reynolds. “With the conclusion of this case, law enforcement demonstrates that this is important to us too. Getting violent offenders, drugs, and guns off the streets is a continuous effort between police and prosecutors. Gang-related activity will not be tolerated in south Georgia or any other part of the state.”
“The Ghost Face Gangsters regularly attacked our community by distributing drugs and performing various violent acts,” said Everett Ragan, Director of the Chatham-Savannah Counter Narcotics Team (CNT). “These attacks on our communities is an attack on all of us. I am proud that the Chatham-Savannah Counter Narcotics Team helped played an instrumental role in the collaborated law enforcement response to stop these dangerous individuals.”
“The conclusion of this phase of the investigation verifies that cooperation between the multiple agencies involved has been a huge success in making all of our communities safer,” said Mitch Shores, chief of the Richmond Hill Police Department.
Operation Vanilla Gorilla was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the DEA, the U.S. Secret Service, GBI, CNT, the Georgia Department of Corrections Intelligence Division, the Chatham County Sheriff’s Office, the Effingham County Sheriff’s Office, the Bryan County Sheriff’s Office, the Liberty County Sheriff’s Office, the Evans County Sheriff’s Office, the Emanuel County Sheriff’s Office, the Savannah Police Department, the Chatham County Police Department, the Richmond Hill Police Department, the Pooler Police Department, the Port Wentworth Police Department, the Rincon Police Department, the Pembroke Police Department, the Claxton Police Department, and the Bloomingdale Police Department, with assistance from the U.S. Marshals Service.
The case was prosecuted by Assistant United States Attorneys E. Greg Gilluly Jr. and Frank Pennington.
OPERATION VANILLA GORILLA BY THE NUMBERS:
43 defendants
21 federal, state and local law enforcement agencies
561 previous arrests of defendants: 184 felony convictions, 184 misdemeanors
4 defendants had more than 10 felony convictions each
4,500 months: total sentences for all defendants
104 months in prison: Average sentence per defendant
36 firearms seized
Drugs seized:
- Kilograms of methamphetamine
- Pounds of marijuana
- Quantities of heroin
- MDMA
- Crack cocaine
- Powder cocaine
Female Inmate Who Committed Sexual Assault While in Custody on Drug Trafficking and Firearm Charges Sentenced to 20 Years in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Maria Andrea Gonzalez, age 31, of Yakima, Washington, was sentenced following conviction after a jury trial in February 2019, of possession with intent to distribute methamphetamine and heroin, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm and ammunition, and after having pleaded guilty in July 2019, to attempted aggravated sexual assault of a female federal inmate. United States District Judge Stanley A. Bastian sentenced Gonzalez to a 20-year term of imprisonment, to be followed by 5 years of court supervision after she is released from federal prison.
According to information disclosed during court proceedings, Yakima Police Department (YPD) detectives arrested Gonzalez on an outstanding warrant. A search incident to arrest revealed that Gonzalez possessed 337 grams of methamphetamine, 135 grams of heroin, a loaded firearm and a large amount of U.S. currency. Gonzalez is a previously convicted felon and is prohibited from possessing firearms and ammunition. During a search incident to a second arrest a few months later by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Gonzalez possessed heroin, methamphetamine and U.S. currency.
While in custody, Gonzalez confronted another inmate at the Yakima County Jail, asking if she possessed drugs. When the inmate denied having any, Gonzalez and three other female inmates sexually assaulted the female inmate while searching for drugs. No drugs were found.
United States Attorney Hyslop said, “Sexual assaults will not be tolerated within any correctional facility in the Eastern District of Washington. This case also should leave no doubt about the United States Attorney’s Office for the Eastern District of Washington’s resolve to prosecute aggressively individuals who illegally possess firearms and distribute narcotics in our community. Federal, state and local law enforcement worked in close partnership investigating this case. Their strong working partnership is reflected by the successful prosecution.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Federal Bureau of Investigation, and the Yakima Police Department, with support from the U.S. Marshals Service, Yakima County Department of Corrections, Washington State Patrol, and U.S. Drug Enforcement Administration. This case was prosecuted by Ian L. Garriques, Thomas, J. Hanlon, and Richard C. Burson, Assistant United States Attorneys for the Eastern District of Washington.
Federal Jury Convicts Post Falls Man in Drug Distribution CaseRead the Press Release
COEUR D’ALENE – U.S. Attorney Bart M. Davis announced today that a federal jury sitting in Coeur d’Alene convicted Adam Christopher Horty, 56, of Post Falls, Idaho, of three counts of distribution of methamphetamine, one count of possession of methamphetamine with the intent to distribute, and one count of felon in possession of firearms. Horty was indicted by a federal grand jury on September 18, 2018. The trial began on Monday, November 18, 2019, and concluded on Wednesday afternoon when the jury returned their verdicts.
Horty’s case stemmed from an investigation that began in July 2018. Law enforcement agencies learned that Horty was dealing methamphetamine out of a home in Post Falls. Based on this information, officers were able to conduct multiple controlled buys of methamphetamine from Horty at this residence. This led to a search warrant for the home. During the warrant service, Horty was found in possession of 230 grams of actual methamphetamine and drug distribution paraphernalia. Officer also located three firearms in Horty’s bedroom. Horty has multiple prior felony convictions in the State of Washington, which prohibit him from possessing firearms.
Sentencing is scheduled for February 19, 2020, before U.S. Circuit Judge Richard C. Tallman at the federal courthouse in Coeur d’Alene, Idaho. Distribution of methamphetamine (more than 5 grams) is punishable by a mandatory minimum of five years up to forty years in prison and at least four years of supervised release. Possession of methamphetamine with the intent distribute (more than 50 grams) is punishable by a mandatory minimum of ten years up to life in prison, and at least five years of supervised release. Unlawful possession of firearms is punishable by up to ten years in prison and three years of supervised release.
This case was investigated by North Idaho Violent Crimes Task Force which is composed of law enforcement officers from Federal Bureau of Investigation, Homeland Security Investigations, Kootenai County Sheriff’s Office, Post Falls Police Department, Idaho State Police, Idaho Department of Correction, and Rathdrum Police Department.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime
# # #
Federal Jury Convicts Great Dismal Swamp ShooterRead the Press Release
NORFOLK, Va. – A federal jury convicted a Suffolk man late yesterday on charges of assault with intent to commit murder and discharge of a firearm, stemming from an incident that took place on May 12 in the Great Dismal Swamp, a National Wildlife Refuge.
“But for the grace of god, the victim survived and was able to provide details about having been lured deep into the Dismal Swamp only to have his partner shoot him point-blank in the chest,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Attorney General Barr has made aggressive prosecution of this kind of gun violence a top priority, and we will continue to seek out and aggressively prosecute cases that involve this kind of senseless and wanton violence.”
According to court records and evidence presented at trial, Maurice Lee, 26, had a tumultuous multi-year relationship with the victim, which escalated to the attempted murder in the Dismal Swamp. The defendant stopped by his parent’s home, retrieved a 9 millimeter semi-automatic handgun loaded with hollow-point bullets, and hid it in his jacket pocket. He lured the victim deep into the Dismal Swamp on the premise of having a picnic, and after walking several miles onto Lynn Ditch Road, he pulled out the firearm and shot the victim in the chest, telling the victim, “you were disloyal.” Lee threatened to shoot the victim again in the head if he told anyone what happened. Lee eventually called 911. When the dispatcher asked how the victim got shot, Lee said it was a “long story” and that he had been trying to shoot a bear. When first responders arrived on scene, Lee continued to claim that he accidently shot the victim because a bear was going to attack him.
Lee faces a mandatory minimum sentence of 10 years and a maximum penalty of life in prison when sentenced on March 16, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms, and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more about Project Guardian, please click here.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
In this case, the USAO utilized an expert witness from the FBI, who testified about the results of gunshot residue tests and concluded that the muzzle of the firearm had been shot 3 to 18 inches from the victim when the near-fatal shot was fired. Based on his examination, he was also able to determine that the shell casing recovered from the crime scene had been fired from the firearm used in the crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreath, Special Agent in Charge of the FBI’s Norfolk Field Office, Edward Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, Thomas E. Bennett, Chief of Suffolk Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict. Assistant U.S. Attorneys John F. Butler and Elizabeth M. Yusi are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-106.
Enfield Man Sentenced to 34 Months in Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAMON SANCHEZ, also known as “Rome,” 28, of Enfield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 34 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department’s Vice and Narcotics Division into the trafficking of narcotics and associated violence in Hartford’s South End by members and associates of the Almighty Latin Kings Nation (“Latin Kings”). The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that two alleged members of the Latin Kings operated separate drug trafficking organizations that distributed fentanyl, heroin, cocaine and crack cocaine. The organizations used multiple locations to process, package, store and distribute narcotics, and possessed firearms in furtherance of their drug trafficking activities.
Sanchez regularly supplied cocaine to one of the drug trafficking organizations.
Sanchez has been detained since his arrest on July 3, 2018. On August 1, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, cocaine.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes 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 Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
East Haven Man Sentenced to 2 Years in Prison for Role in Scheme That Defrauded Illinois Company of MillionsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN T. FINKLE III, 58, of, East Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for his role in a scheme to defraud an Illinois-based company of more than $3 million.
According to court documents and statements made in court, Finkle was employed by JST, a supplier of electronic components based in Waukegan, Illinois. Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli to defraud JST through a scheme involving purchases of electronic components that Pedroli made from JST for a business he operated in Islandia, New York. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of JST’s published prices. After Pedroli’s orders were submitted to JST at the discounted prices, the products were shipped from JST to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle, which Pedroli did. Finkle deposited the payments into his personal checking account, and provided a portion of the funds to another JST employee who manipulated the accounting records of JST to make it appear that Pedroli had paid JST for the products he received.
JST was defrauded of $3,359,058.69 through this scheme. Judge Hall ordered Finkle to make full restitution.
Finkle, who is released on a $500,000 bond, is required to report to prison on January 8, 2020.
On July 16, 2019, Finkle pleaded guilty to one count of conspiracy to commit mail and wire fraud.
Pedroli, of Stony Brook, New York, pleaded guilty to the same offense on April 29, 2019, and awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
East Bay Resident Charged with Making False Statements to Gain Admittance for Military ServiceRead the Press Release
SAN FRANCISCO – Ross Anthony Farca was charged in a criminal complaint with making a false statement to a government agency, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F Bennett.
In a complaint filed November 19, 2019, a redacted version of which was unsealed today, Farca, 23, of Concord, was charged with making a false statement on an online background check application in his bid to join the U.S. Army. According to the complaint, on June 22, 2017, Farca traveled to a U.S. Army Recruitment Center in Mountain View, Calif., where he completed and submitted the background check application, also known as an SF-86. The SF-86 contains language specifically warning that falsifying or concealing a material fact on the application is a felony which may result in fines or imprisonment. In this case, the criminal complaint alleges that Farca nevertheless knowingly made false statements about his mental health when completing the form. Specifically, he affirmatively stated that he had not received mental health treatment, which the complaint alleges was not true.
According to the complaint, Farca had been in regular contact with a psychiatrist since 2011. In addition, Farca allegedly had received prescriptions for various medications and had received treatments to manage his mental disorders. Further, according to the complaint, Farca understood that because of his diagnosis, he needed a letter of clearance from a mental health professional before he would be qualified to enlist in the army. The complaint alleges that Farca requested a letter of clearance from both his psychiatrist and a caseworker familiar with his condition; both mental health professionals, however, denied Farca’s request for a clearance letter. The complaint further alleges that when Farca completed the SF-86, rather than admit he had been seeing a psychiatrist and that he was unable to obtain a letter clearing him for duty, Farca instead denied he had ever had counseling for his psychological or emotional health. According to the complaint, Farca reported to basic training on August 28, 2017, and was discharged October 3, 2017. The discharge paperwork cited "failed medical / physical / procurement standards" and noted, "erroneous enlistment; medical condition disqualifying for military service, with no medical waiver approved."
The complaint suggests that evidence of Farca’s false statements on the SF-86 was obtained during the June 10, 2019, search of his home. Officers from the Concord Police Department executed warrants to arrest Farca and to search his home while investigating messages Farca posted on an online video game website. The complaint describes several messages Farca allegedly posted using his online name “Adolf Hitler (((6 MILLION)))” about carrying out a mass shooting of synagogues and praising terrorists who have perpetrated recent mass shootings at houses of worship. During the search of Farca’s home, paperwork relating to his psychiatric condition and his military service discharge were found.
The complaint charges Farca with knowingly making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2). The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Farca currently is in federal custody pending a continued detention hearing currently scheduled before U.S. Magistrate Judge Sallie Kim on Tuesday, November 26, 2019 at 10:30. If convicted, Farca faces a maximum statutory penalty maximum sentence of five years imprisonment and a fine of $250,000, plus restitution, for each violation of 18 U.S.C. § 1001(a)(2). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office in San Francisco and investigated by the FBI and the Concord Police Department.
District Court Enters Injunction against New York Company and Corporate Officials to Prevent Adulteration of Food ProductsRead the Press Release
The Department of Justice announced today that the U.S. District Court for the Eastern District of New York entered an injunction against Foo Yuan Food Products Company Inc. (Foo Yuan) of Long Island City, New York, its owner and president Hsing Chuang, and its secretary Susan Chuang. The injunction permanently enjoins the defendants from preparing, processing, and distributing food products without first taking required remedial action designed to protect consumers from adulterated fish and fishery products.
The injunction stems from a complaint the Department filed in the U.S. District Court for the Eastern District of New York on Aug. 20, 2018, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that the defendants prepare, pack, hold and distribute refrigerated and frozen ready-to-eat fish balls, fried fish cakes and fried fish balls. According to the complaint, the defendants failed to adequately control the risk of Clostridium botulinum and Listeria monocytogenes (L. mono.) growth and toxin formation in susceptible fish and fishery products.
“The Department of Justice is committed to enforcing federal laws designed to ensure food safety,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice works together with the FDA to ensure that Americans are protected from potentially unsafe food.”
“The defendants’ failure to respond to the serious allegations in the government’s civil complaint was in keeping with their failure to follow FDA regulations in place to protect the public from adulterated fish products,” said U.S. Attorney Richard P. Donoghue for the Eastern District of New York. “The injunction ensures they are out of business until they can comply with all applicable laws and regulations.”
The District Court’s order permanently enjoins defendants from preparing, processing, and distributing food products without first taking required remedial action set forth in the District Court’s order. The measures include, among other things, retaining an independent expert to assist with remedial efforts, including development and implementation of a Listeria Monitoring Program. In addition, defendants’ expert must conduct hazard analyses and develop a written Hazard Analysis and Critical Control Point plan for each type of fish or fishery product prepared, processed, or distributed by defendants to effectively control food safety hazards.
FDA inspected Foo Yuan’s facility in 2014, 2016 and from December 2017 to January 2018. According to the complaint, at each inspection, FDA documented significant deficiencies. For example, as alleged in the complaint, during the most recent inspection, FDA observed a failure to maintain the cleanliness of food contact sources, and a failure to ensure that all persons working in direct contact with food, food contact surfaces and food-packing materials conform to hygienic practices to protect against food contamination.
The complaint noted that, following the October 2014 inspection, the FDA issued a warning letter notifying Foo Yuan and Hsing Chuang that they were in violation of seafood Hazard Analysis and Critical Control Point and current Good Manufacturing Practice regulations, causing their products to be adulterated under the law.
The complaint alleged that defendants violated the Federal Food, Drug, and Cosmetic Act by causing adulterated food to be introduced into interstate commerce or delivered for introduction into interstate commerce. It also alleged that the defendants further violated the law by causing food to become adulterated while it was being held for sale after the shipment of one or more of its components in interstate commerce. The defendants did not file a response to the complaint.
“Taking steps to keep potentially unsafe food out of the U.S. food supply is at the heart of the FDA’s mission to protect public health,” said Associate Commissioner for Regulatory Affairs Melinda K. Plaisier. “When a company does not follow good manufacturing practices and fails to come into compliance, the FDA will take action to protect the health and safety of Americans.”
The government is represented by the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Michael Castiglione of the U.S. Attorney’s Office for the Eastern District of New York, with assistance from Associate General Counsel for Enforcement Tara Boland of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
District Court Enters Injunction Against New York Company and Corporate Executives to Prevent Adulteration of Fish ProductsRead the Press Release
BROOKLYN, NY – The United States District Court for the Eastern District of New York entered a permanent injunction against Foo Yuan Food Products Company Inc. (Foo Yuan) of Long Island City, New York, its Owner and President Hsing Chuang, and its Secretary Susan Chuang. The injunction permanently enjoins the defendants from preparing, processing and distributing food products without first taking required remedial action designed to protect consumers from adulterated fish and fishery products.
The injunction stems from a civil complaint the Department of Justice filed on August 20, 2018, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that the defendants, who prepare, pack, hold and distribute refrigerated and frozen ready-to-eat fish balls, fried fish cakes and fried fish balls, failed to adequately control the risk of Clostridium botulinum and Listeria monocytogenes (L. mono.) growth and toxin formation in susceptible fish and fishery products. During inspections over a number of years, the FDA documented significant deficiencies, including failure to maintain clean work surfaces and to ensure that workers were conforming to hygienic practices.
The complaint further alleged that defendants violated the Federal Food, Drug, and Cosmetic Act by causing adulterated food to be introduced into interstate commerce or delivered for introduction into interstate commerce. It also alleged that the defendants violated the law by causing food to become adulterated while it was being held for sale after the shipment of one or more of its components in interstate commerce. The defendants did not file a response to the complaint.
The District Court’s order permanently enjoins defendants from preparing, processing and distributing food products without first taking required remedial action set forth in the District Court’s order. The measures include, among other things, retaining an independent expert to assist with remedial efforts, including development and implementation of a Listeria Monitoring Program. In addition, defendants’ expert must conduct hazard analyses and develop a written Hazard Analysis and Critical Control Point plan for each type of fish or fishery product prepared, processed or distributed by defendants to effectively control food safety hazards.
“The defendants’ failure to respond to the serious allegations in the government’s civil complaint was in keeping with their failure to follow FDA regulations in place to protect the public from adulterated fish products,” stated United States Attorney Richard P. Donoghue. “The injunction ensures they are out of business until they can comply with all applicable laws and regulations.”
“The Department of Justice is committed to ensuring that fish processors comply with federal laws designed to ensure food safety,” stated Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to ensure that Americans are protected from potentially unsafe food.”
“Taking steps to keep potentially unsafe food out of the U.S. food supply is at the heart of the FDA’s mission to protect public health,” stated Associate Commissioner for Regulatory Affairs Melinda K. Plaisier. “When a company does not follow good manufacturing practices and fails to come into compliance, the FDA will take action to protect the health and safety of Americans.”
The matter is being handled by Assistant United States Attorney Michael J. Castiglione of the United States Attorney’s Office for the Eastern District of New York together with the Department’s Civil Division’s Consumer Protection Branch, assisted by Associate General Counsel for Enforcement Tara Boland of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.