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10 January 2020
Rochester Man Sentenced for Six Armed RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lavon Wims, 27, of Rochester, NY, who was convicted of six counts of Hobbs Act robbery, in connection with a string of robberies at Rochester area businesses, was sentenced to serve 108 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay restitution totaling $4,013.70.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that Wims admitted his role in a series of armed robberies in the Rochester area during December 2018 and January 2019, including:
• On December 28, 2018, at McDonalds on East Avenue in Rochester, Wims held a knife to the throat of a McDonald’s employee while co-conspirator Malik Lott displayed what appeared to be a handgun. Wims dragged the employee to a cash register and a safe, and removed approximately $2,534 from McDonald’s; • On December 31, 2018, at the 24-7 Store on West Henrietta Road in Brighton, Wims jumped over the counter and held what appeared to be a handgun to the side of a store employee while demanding cash. Wims left with approximately $100 from the store; • On January 19, 2019, at the Express Mart on Chestnut Ridge Road in Chili, Wims displayed what appeared to be a handgun to a store employee and walked the employee over to the register, where Wims removed approximately $600; • On January 23, 2019 at Jordy’s Spirits on Dewey Avenue in Rochester, Wims pointed what appeared to be a handgun at a store employee and demanded money. Lott assisted Wims in removing cash from the register, and they left with approximately $350 from the store; • On January 27, 2019, at the Speedway Gas Station on Elmwood Avenue in Brighton, Wims pointed what appeared to be a handgun at an employee and told the employee to open the registers. Wims then removed approximately $220 from the store, and left to commit another robbery; and
• About 8 minutes after the Speedway robbery, on January 27, 2019, at the Valero Gas Station on East Henrietta Road in Rochester, Wims pointed what appeared to be a handgun at an employee and told the employee to given him money. The employee opened the register, and Wims took approximately $60 and fled the store.Co-conspirator Malik Lott was previously convicted and sentenced to serve 60 months in prison for his role in robberies at McDonalds and Jordy’s Spirits.
The sentencing is the result of an investigation by the Federal Bureau of Investigation’s Rochester Area Major Crimes Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
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Rochester Man Sentenced for His Role in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ricardo Casado, 31, of Rochester, NY, who was convicted of conspiring to possess with intent to distribute, and distributing quantities of fentanyl and cocaine, was sentenced to serve 21 months in prison, by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that Casado was a member of a drug trafficking organization led by his brother, co-defendant Jose Casado. Between December of 2017 and May 15, 2019, the organization distributed large quantities of fentanyl, cocaine, and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester.
On January 25, 2019, Ricardo Casado sold 80 baggies of fentanyl and 80 baggies of cocaine in exchange for $600, on behalf of the drug trafficking organization.
Charges remain pending against Jose Casado. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Rochester Man Sentenced for Embezzlement SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that James Walton, 48, formerly of Webster, NY, who was convicted of bank fraud, was sentenced to serve 18 months in federal prison by U.S. District Judge Elizabeth A. Wolford. In addition, Walton was ordered to pay restitution totaling approximately $53,768.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Walton worked as an accountant for a local real estate rental business. From 2011 to 2014, while so employed, the defendant stole approximately 100 security deposits by forging tenants’ signatures to refund checks, and depositing the checks into his personal bank account. In total, Walton embezzled approximately $53,768 from his employer and tenants.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Rochester Man Pleads Guilty to Sex OffenseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Anthony M. Girolamo, 43, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to transferring obscene material to a minor. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Girolamo established a texting relationship with “Liz,” whom he believed to be a 14-year old minor female. In fact, “Liz” was an undercover law enforcement officer. During the course of their text exchanges, the defendant told “Liz” that he wanted to have sex with her, and sent “Liz” images of adult females engaged in sexual acts with adult males.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for April 22, 2020, at 4:00 p.m. before Judge Wolford.
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Repeat Federal Offender Sentenced for Illegally Possessing Firearm under Project EJECTRead the Press Release
Hattiesburg, Miss. – Jonas A. Windham, 37, of Laurel, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to 13 months in prison for being a 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 in Mississippi. Windham was also ordered to pay a $3,000 fine and serve three years of supervised release following his imprisonment.
Windham’s 13-month sentence will be served consecutive to a 14-month sentence he was given for violating his federal probation in a previous case. In 2013, Windham was convicted in the Southern District of Mississippi and sentenced to 78 months in prison for being an unlawful user of a controlled substance in possession of a firearm. He was still on supervised release when he was arrested on June 18, 2019, for possession of two firearms during the execution of a search warrant at his residence. Windham pled guilty before Judge Starrett on October 2, 2019.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Federal Bureau of Investigation and Laurel Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Rapid City Woman Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Court Judge.
Esmeralda Stands, age 38, was sentenced on January 6, 2020, to time served and 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $972.37 in restitution.
The charge related to Stands being in possession of a stolen .45 caliber revolver in January 2019 at Rapid City, which was found after Stands came into contact with a Rapid City police officer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Raleigh Man Sentenced to More Than 6 Years for Illegally Possessing a Firearm and AmmunitionRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DOMINIQUE DASHAWN WATSON, 27, of Raleigh, NC, to 82 months imprisonment, followed by 3 years of supervised release.
WATSON was named in an Indictment filed on September 19, 2018 charging him with Possession of a Firearm and Ammunition by a Convicted Felon on July 12, 2018. On March 28, 2019, WATSON pled guilty to that charge.
According to the investigation, on July 12, 2018, investigators with the Raleigh Police Department conducted a traffic stop of a vehicle occupied by WATSON. WATSON was removed from the vehicle and detained due to the odor of marijuana in the vehicle. During a search of WATSON, investigators seized 16 grams of marijuana from WATSON’S underwear. During a search of the vehicle, investigators located a loaded 9mm semi-automatic handgun in between the center console and carpeting that had been pulled away from the center console. The handgun was loaded with a round of ammunition in the chamber and 21 rounds of assorted 9mm ammunition in a large capacity magazine. Investigators seized a box of 100 rounds of 9mm ammunition from the rear passenger seat and a digital scale with marijuana residue from the center console. Investigation determined that the firearm was reported stolen in Garner, North Carolina. Investigators determined that WATSON was prohibited from possessing firearms and ammunition due to his prior felony convictions.
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 information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
Raleigh Man Sentenced for Illegally Possessing FirearmRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced KEENAN JOSHUA BYRD, 23, of Raleigh, NC, to 48 months imprisonment, followed by 3 years of supervised release.
BYRD was named in an Indictment filed on May 22, 2019 charging him with Possession of a Firearm by a Convicted Felon on January 10, 2019. On August 21, 2019, BYRD pled guilty to Possession of a Firearm by a Convicted Felon.
According to the investigation, on January 10, 2019, the Raleigh Police Department (RPD) responded to the parking lot of a restaurant in Raleigh to investigate a report of an individual sleeping in a vehicle. The officer located BYRD sleeping in the driver’s seat of the running vehicle with the front wheels of the vehicle stopped on the curb, almost in contact with the restaurant. The officer also observed a pistol on the front passenger seat. Other officers responded, secured the vehicle and firearm, and woke BYRD up after several attempts. As officers spoke to BYRD, the officers smelled a strong odor of alcohol coming from BYRD’s person. Officers seized a .40 caliber pistol loaded with 1 round of ammunition in the chamber and 7 rounds of ammunition in the magazine. A spent round of ammunition and an open beer were recovered from the floorboard of the driver’s seat. Officers determined that BYRD was a convicted felon.
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 information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
Punch It Performance and Tuning Agrees to Stop Selling Illegal Devices That Defeat Emissions Control Systems of Vehicles in the Wake of Clean Air Act Enforcement ActionRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Punch It Performance and Tuning and Michael Paul Schimmack — and other companies and individuals close to Schimmack (Defendants) — resolving alleged violations of the Clean Air Act (CAA) associated with the manufacture and sale of aftermarket products that defeat the emissions control systems of motor vehicles. The complaint also alleged that certain defendants fraudulently transferred assets after learning of the EPA claims in an effort to avoid payment of penalties in the case.
Under the settlement, lodged today with the U.S. District Court for the Middle District of Florida, defendants, who have stopped manufacturing and selling defeat device products, will pay a civil penalty of $850,000. The defendants also agree to stay out of the business of selling the illegal products, to surrender the computer code used in the products and to stop providing technical and warranty support for the defeat devices already sold.
“Companies and individuals who deal in aftermarket defeat devices are threatening the public’s health and violating federal law,” said Assistant Attorney General Jeffrey Bossert Clark. “The Department of Justice is committed to ending this illegal trade, seeking justice for those harmed from this fraudulent activity, and encouraging compliance in the automotive industry through strong enforcement.”
“EPA will vigorously pursue and prosecute companies who attempt to circumvent emission controls that are required to reduce air pollution,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “This case illustrates why stopping the manufacture, sale, and installation of aftermarket defeat devices is an EPA National Compliance Initiative.”
“The Middle District of Florida remains committed to enforcing the Clean Air Act,” said U.S. Attorney Maria Chapa Lopez. “The settlement announced today is a clear statement of our office’s commitment to protect our citizens and the environment.”
The defendants manufactured and/or sold more than 20,000 aftermarket defeat devices. These products were designed for a range of certified motor vehicles and motor vehicle engines including vehicles manufactured by Ford, General Motors, and Fiat Chrysler. The aftermarket products sold by defendants included hardware components and electronic tuning software, known as “tunes,” that hack into and reprogram a motor vehicle’s electronic control module to alter engine performance and enable the removal of filters, catalysts and other critical emissions controls that reduce air pollution.
Under the CAA, it is illegal to manufacture or sell parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine original equipment manufacturer to comply with CAA emission standards. The complaint filed in the case alleges that each act of manufacturing and each sale constitutes a violation of the CAA.
In addition, the complaint asserts that after EPA notified the defendants in 2016 of its intent to take enforcement action, the corporate defendants transferred real estate and large sums of money to one or more of the individual defendants in their personal capacities. The U.S. alleges these were fraudulent transfers under the Federal Debt Collection Procedures Act.
In addition to their civil penalty of $850,000, defendants will also do the following:
- Surrender all intellectual property to EPA, including programming, files, software, source code, design, instructions, or other information that could be used to manufacture tunes;
- Certify that no products have been manufactured or sold since March 2017;
- Certify that no intellectual property has been transferred to any party other than EPA; and
- Refuse to provide technical support or honor warranty claims for products subject to the consent decree.
EPA has recently begun a National Compliance Initiative on Stopping Aftermarket Defeat Devices for Vehicles and Engines. To read about EPA’s National Compliance Initiative visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The proposed settlement is subject to a 30-day public comment period and final court approval. Information on submitting comments is available at the Department of Justice website.
To learn more about today’s settlement click here.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://echo.epa.gov/report-environmental-violations.
Punch It Performance and Tuning Agrees to Stop Selling Illegal Devices That Defeat Emissions Control Systems of Vehicles in the Wake of Clean Air Act Enforcement ActionRead the Press Release
Orlando, FL – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Punch It Performance and Tuning and Michael Paul Schimmack — and other companies and individuals close to Schimmack (Defendants) — resolving alleged violations of the Clean Air Act (CAA) associated with the manufacture and sale of aftermarket products that defeat the emissions control systems of motor vehicles. The complaint also alleged that certain defendants fraudulently transferred assets after learning of the EPA claims in an effort to avoid payment of penalties in the case.
Under the settlement, lodged today with the U.S. District Court for the Middle District of Florida, defendants, who have stopped manufacturing and selling defeat device products, will pay a civil penalty of $850,000. The defendants also agree to stay out of the business of selling the illegal products, to surrender the computer code used in the products and to stop providing technical and warranty support for the defeat devices already sold.
“Companies and individuals who deal in aftermarket defeat devices are threatening the public’s health and violating federal law,” said Assistant Attorney General Jeffrey Bossert Clark. “The Department of Justice is committed to ending this illegal trade, seeking justice for those harmed from this fraudulent activity, and encouraging compliance in the automotive industry through strong enforcement.”
“EPA will vigorously pursue and prosecute companies who attempt to circumvent emission controls that are required to reduce air pollution,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “This case illustrates why stopping the manufacture, sale, and installation of aftermarket defeat devices is an EPA National Compliance Initiative.”
“The Middle District of Florida remains committed to enforcing the Clean Air Act,” said U.S. Attorney Maria Chapa Lopez. “The settlement announced today is a clear statement of our office’s commitment to protect our citizens and the environment.”
The defendants manufactured and/or sold more than 20,000 aftermarket defeat devices. These products were designed for a range of certified motor vehicles and motor vehicle engines including vehicles manufactured by Ford, General Motors, and Fiat Chrysler. The aftermarket products sold by defendants included hardware components and electronic tuning software, known as “tunes,” that hack into and reprogram a motor vehicle’s electronic control module to alter engine performance and enable the removal of filters, catalysts and other critical emissions controls that reduce air pollution.
Under the CAA, it is illegal to manufacture or sell parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine original equipment manufacturer to comply with CAA emission standards. The complaint filed in the case alleges that each act of manufacturing and each sale constitutes a violation of the CAA.
In addition, the complaint asserts that after EPA notified the defendants in 2016 of its intent to take enforcement action, the corporate defendants transferred real estate and large sums of money to one or more of the individual defendants in their personal capacities. The U.S. alleges these were fraudulent transfers under the Federal Debt Collection Procedures Act.
In addition to their civil penalty of $850,000, defendants will also do the following:
- Surrender all intellectual property to EPA, including programming, files, software, source code, design, instructions, or other information that could be used to manufacture tunes;
- Certify that no products have been manufactured or sold since March 2017;
- Certify that no intellectual property has been transferred to any party other than EPA; and
- Refuse to provide technical support or honor warranty claims for products subject to the consent decree.
EPA has recently begun a National Compliance Initiative on Stopping Aftermarket Defeat Devices for Vehicles and Engines. To read about EPA’s National Compliance Initiative visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The proposed settlement is subject to a 30-day public comment period and final court approval. Information on submitting comments is available at the Department of Justice website.
To learn more about today’s settlement click here.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://echo.epa.gov/report-environmental-violations.
Port Barre Man is Sentenced to 21+ Years for Transporting a Minor Out of State for SexRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Cory Shane Disotell, 48, of Port Barre, Louisiana, was sentenced today by U.S. District Judge Robert R. Summerhays to serve 262 months in federal prison, followed by lifetime supervised release, for transporting a minor with the intent to engage in criminal sexual activity. Disotell is required to register as a sex offender after he is released from prison. As a result of Disotell’s guilty plea on October 11, 2019, Judge Summerhays also ordered forfeiture of the Braztech S41118 .410 caliber shogun which was seized from Disotell at the time of his arrest in Durango, Colorado.
Disotell devised a plan to coerce a 15-year old Port Barre minor to leave school and run away with him. On March 28, 2019, the defendant traveled to the school where the minor was a student and convinced the child to leave with him. He then transported her to Mississippi, and thereafter to Durango, Colorado, where he was apprehended after an extensive nationwide manhunt. At the time of his arrest, the defendant admitted he took the child from Port Barre, Louisiana, to Mississippi, and ultimately to Durango, Colorado, engaging in sexual acts along the way.
The FBI, U.S. Marshal’s Service, Port Barre Police Department, Archuleta County Sheriff’s Office, and Durango, Colorado Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker and Supervisory Assistant U.S. Attorney Myers P. Namie 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 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. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Ponchatoula Man Pleads Guilty to Receiving Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that EDD SCAFIDEL, JR., age 59, a resident of Ponchatoula, Louisiana, pleaded guilty on January 9, 2020 before United States District Judge Eldon E. Fallon after previously being charged in a one-count Indictment with receipt of images and videos depicting the sexual exploitation of children, including children as young as approximately one (1) year old, in violation of 18 U.S.C. ' 2252(a)(2).
According to court documents, in about November 2018, a complainant knowledgeable of SCAFIDEL’s actions reported to Special Agents with the Federal Bureau of Investigation that SCAFIDEL possessed electronic storage devices that contained files depicting the sexual exploitation of children. After further investigation, the FBI executed a search warrant at SCAFIDEL’s residence in Ponchatoula, Louisiana on December 4, 2018. During the execution of the search warrant, SCAFIDEL possessed a leather pouch that contained, among other items, two electronic storage devices that contained files depicting the sexual exploitation of children. Subsequent forensic analysis determined that SCAFIDEL used computers and external hard drives to search for, download, and store child pornography. In total, SCAFIDEL downloaded and saved at least 22,334 images depicting the sexual victimization of children, including children less than one year old. Among the files SCAFIDEL searched for, downloaded, and stored were some that portrayed “sadistic or masochistic conduct or other depictions of violence.” Specifically, at least one image portrayed the sexual penetration of a conscious, bound prepubescent female.
If convicted, SCAFIDEL faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of imprisonment of twenty (20) years, followed by up to a lifetime of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing before Judge Fallon has been scheduled for April 16, 2020, at 2:00 pm.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter, with support from the Louisiana State Police. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Pittsburgh-Area Lab Owner Pleads Guilty to Multiple Kickback Conspiracies in Connection with Almost $130 Million in Medicare Claims for Genetic TestingRead the Press Release
PITTSBURGH, Pa. – A resident of Monroeville, Pennsylvania, pleaded guilty in federal court to three conspiracy counts and one substantive count related to the payment and receipt of unlawful kickbacks, United States Attorney Scott W. Brady announced today.
Ravitej Reddy, 52, pleaded guilty before United States District Judge William S. Stickman IV.
During his plea hearing, the defendant admitted that he owned two testing laboratories—Personalized Genetics, LLC, d/b/a Personalized Genomics (PGL), located in Pittsburgh, and Med Health Services Management, LP (MHS), located in Monroeville. Beginning as early as May 2018, and continuing through approximately April 12, 2019, the defendant admitted that he participated in three separate conspiracies related to Medicare billing for two types of genetic testing: cancer genomic testing (CGx) and pharmacogenetic testing (PGx). CGx testing used DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future. CGx testing, however, was not a method of diagnosing whether an individual presently had cancer. PGx testing detected specific genetic variations in genes that impacted the metabolism of certain medications. In other words, PGx testing helped determine, among other things, whether certain medications would be effective if used by a particular patient.
As part of his guilty plea, the defendant admitted that he and a group of co-conspirators—comprising business consultants, marketers, and the operator of a telemedicine entity, among others—acquired thousands of testing samples from Medicare beneficiaries located throughout the United States, as well as the corresponding physician-ordered prescriptions that PGL and MHS needed to bill Medicare for CGx and PGx testing. For their part, the marketers used targeted campaigns to induce beneficiaries to submit CGx and PGx specimens by means of cheek swabs sent to their homes or provided to them at purported "health fairs" held throughout the United States. Marketers, in turn, were paid percentage-based kickbacks depending upon the Medicare reimbursements for beneficiaries whose samples they had obtained and submitted to PGL or MHS.
Likewise, the operator of a Florida-based telemedicine entity allegedly was paid kickbacks in connection with obtaining CGx and PGx prescriptions from physicians who were contracted by his company to review the beneficiaries’ personal and familial medical histories. As alleged, contract physicians authorized testing for greater than 95% of beneficiaries despite the fact that the doctors did not conduct a proper telemedicine visit, were not treating the Medicare beneficiaries for cancer or symptoms of cancer, did not use the test results in the treatment of the beneficiaries, and generally were not qualified to understand and interpret the test results.
The defendant further admitted that he and his co-conspirators took advantage of PGL’s and MHS’s physical locations within the Medicare coverage area that offered the highest reimbursement rates in the United States. The court was further advised that the co-conspirators used PGL and MHS as the billing laboratory despite the fact that the labs did not possess properly validated equipment to conduct any CGx testing on-site and, as such, were forced to send samples for proper testing by a so-called reference laboratory that was located outside of the lucrative coverage area.
During the plea hearing, the defendant admitted to his participation in three separate kickback conspiracies related to the acquisition of CGx and PGx specimens—an initial conspiracy between May 2018 and April 12, 2019, involving Medicare billings through PGL and two side conspiracies between October 2018 and April 12, 2019, involving Medicare billings through MHS. The defendant further admitted that he engaged in the second and third conspiracies with some, but not all, of the same co-conspirators as the first conspiracy, and he pursued these alleged side deals, in part, as a means to increase his share of the profits relative to the first PGL-based conspiracy. Finally, the defendant pleaded guilty to a substantive charge of paying percentage-based kickbacks to another unrelated marketing entity in connection with the acquisition of PGx and other testing samples between October 2017 and April 2019.
The defendant admitted that he caused PGL and MHS to submit Medicare claims for CGx and PGx testing that regularly exceeded $12,000 per beneficiary. In total, between May 2018 and April 12, 2019, the defendant’s laboratories billed Medicare more than $127 million for CGx and PGx testing, with reimbursements of approximately $60 million.
Pursuant to a written plea agreement, the defendant further agreed to make restitution to the Centers for Medicare and Medicaid Services, a component of the U.S. Department of Health and Human Services, in the amount of $77,328,319.82.
For each of the three conspiracy counts, the defendant faces a maximum sentence of five years in prison, a fine of $250,000, or both. For the substantive kickback charge, he faces a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and U.S. Department of Health and Human Services – Office of Inspector General conducted the investigation of the defendant.
Pittsburgh Man Sentenced for Possessing Images Depicting the Sexual Exploitation of ChildrenRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 10 months’ imprisonment, followed by 7 years’ supervised release, and was ordered to pay $2,000 in restitution to two child victims on his conviction of possession of child pornography, United States Attorney Scott W. Brady announced today.
United States Senior District Judge Joy Flowers Conti imposed the sentence on Ryan Grasha, 25.
According to information presented to the court, on January 31, 2018, Grasha possessed approximately 250 images depicting the sexual exploitation of minors, some of whom were under the age of 12 years. Grasha obtained and distributed the sexually exploitive images over the Internet, using the "Omegle" and "Kik" peer-to-peer networks.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Grasha.
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, 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.
Pine Ridge Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Assault on a Federal Officer was sentenced by U.S. Magistrate Judge Daneta Wollmann.
Jourdan Brown, age 23, was sentenced on December 23, 2019, to 10 months in a federal prison, followed by 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
The charge related to Brown lowering his shoulder and striking the Oglala Sioux Tribe Department of Public Safety officer in the chest, after the officer responded to a theft call at a business in Pine Ridge.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Brown was immediately turned over to the custody of the U.S. Marshals Service.
Owners of Groveland Companies Charged for Defrauding Government Contracting ProgramsRead the Press Release
BOSTON – Three men were charged today in federal court in Boston with conspiracy to defraud the United States and mail fraud in connection with a scheme to obtain government contracts.
Frank Apicella, 63, of Groveland, Mass.; Michael Sforza, 59, of Alpharetta, Ga.; and James Apicella, 37, of Kingston, NH, were charged with one count of conspiracy to defraud the United States and one count of mail fraud.
According to the charging document, beginning in 2011 the defendants used Tactical Office Solutions (TOS), a company run by James Apicella, to bid for and obtain government contract work that was set aside for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Historically Underutilized Business Zone (HUBZone) companies. Although the work was bid by and awarded to TOS based under these set-aside programs, the work was actually mostly performed by FENS, a company owned and operated by Frank Apicella and Michael Sforza that was not eligible for these contracts.
The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, one year of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey K. Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, Northeast Field Office; Luis Hernandez, Special Agent in Charge of the General Services Administration Office of Inspector General, New England Regional Office; and Michael Conner, Resident Agent in Charge of the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, made the announcement today. The U.S. Treasury Inspector General for Tax Administration provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit and Annapurna Balakrishna of Lelling’s Civil Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Operators of U.S. Coin Bullion Sentenced to Prison for More Than $9.3 Million in FraudRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced brothers Salvatore Esposito (47, Orlando) and Joseph Esposito (43, Orlando) to federal prison terms for their roles in defrauding more than 150 victims out of more than $9.3 million in connection with the operation of their business, U.S. Coin Bullion LLC. Salvatore Esposito was sentenced to 7 years and 3 months in federal prison, and Joseph Esposito was sentenced to 5 years and 11 months in federal prison. Both were also ordered to serve 3 years of supervised release and to pay more than $9.3 in restitution.
The Espositos had pleaded guilty on October 2, 2019.
According to court documents, the Espositos operated U.S. Coin Bullion, a local Orlando company formed in 2012. From 2014 to July 2019, the Espositos engaged in a conspiracy to defraud U.S. Coin Bullion’s customers. Instead of using the customers’ funds to purchase precious metals as had been promised, the Espositos caused U.S. Coin Bullion to use customer funds to pay other customers, to pay commissions and other business expenses, and to purchase silver for the company itself.
U.S. Coin Bullion used its customers’ funds to purchase silver on “margin,” or “leverage,” by which it acquired an interest in the silver by paying only a portion of its full price. The company took out loans to purchase the silver on margin and then used more customer funds to pay the interest associated with those loans, as well as storage fees for the silver. And, because it was buying on margin, U.S. Coin Bullion was subject to “margin calls.” If the market price for silver declined, the company might immediately have to deposit more (customer) funds into its accounts to maintain its interest in the silver.
U.S. Coin Bullion never told its customers that their funds were being used in this way. By at least 2016, it was regularly using its customers’ funds to buy millions of dollars worth of silver. When the price for silver fell from more than $35 an ounce (in 2012) to less than $15 an ounce during the conspiracy, the company experienced massive losses and had to spend customer funds due to margin calls.
To cover up U.S. Coin Bullion’s losses, the Espositos provided customers with false account statements making it appear that the company had purchased the silver for the customers (not itself) and that their accounts maintained value despite any drop in the market price of silver. Ultimately, U.S. Coin Bullion’s margin purchases resulted in a loss of nearly all the market value of the silver that its customers believed they had purchased and held.
This case was investigated by the U.S. Secret Service, with assistance from the Florida Attorney General's Office of Citizen Services – Consumer Assistance Program, which has provided invaluable assistance with the victims. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Oneonta Man Sentenced for Social Security FraudRead the Press Release
BINGHAMTON, NEW YORK – Jason L. Wentworth, age 35, of Oneonta, New York, was sentenced on January 2 to five years of probation for stealing Social Security survivors benefits and for making false statements to the Social Security Administration that enabled Wentworth to obtain those benefits.
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA) Office of the Inspector General, New York Field Division.
On August 21, 2019, Wentworth pled guilty to a six-count indictment charging three counts of theft of government property, one count of representative payee fraud, and two counts of making false statements in connection with his theft of Social Security benefits. Following his wife’s death, Wentworth applied for and received survivors benefits on his son’s and his own behalf, and continued to receive and keep those benefits, even after the son’s maternal grandparents took over as his son’s primary caregivers. Wentworth was not entitled to collect benefits on his own behalf once he stopped serving as the primary caregiver for his son.
Senior United States District Judge Thomas J. McAvoy also ordered Wentworth to pay restitution to the government in the amount of $27,525 and restitution to his son in the amount of $25,035. Additionally, Judge McAvoy ordered Wentworth to forfeit $3,822.
This case was investigated by the SSA Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Emily C. Powers.
North Dakota Man Sentenced for Aggravated Sexual Abuse of a Child and IncestRead the Press Release
United States Attorney Ron Parsons announced that a Mandan, North Dakota, man convicted of Aggravated Sexual Abuse of a Child and Aggravated Incest was sentenced on January 9, 2020, by U.S. District Judge Charles B. Kornmann.
Ronnie White Mountain, age 51, was sentenced to 360 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Mountain was indicted by a federal grand jury on June 11, 2019. He was found guilty by a jury trial on September 5, 2019.
The conviction stemmed from an incident, which occurred sometime between January 2010 and December 2012, when White Mountain was visiting relatives in McLaughlin, South Dakota, on the Standing Rock Reservation. Following a night of drinking, White Mountain returned to a family members home and knowingly engaged in a sexual act with a minor victim who had not attained the age of 12 years old.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirsten Jasper prosecuted the case.
White Mountain was immediately turned over to the custody of the U.S. Marshals Service.
New York Man Sentenced to 18 Months in Federal Prison for Cyberstalking ConspiracyRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced that Kristian James O’Hara, age 25, of Bardonia, New York, was sentenced today to 18 months in prison by the Honorable Colm F. Connolly, U.S. District Judge for the District of Delaware. O’Hara pleaded guilty to conspiracy to commit cyberstalking on April 3, 2019.
According to court documents and statements made in open court, O’Hara led an 18-month cyberstalking conspiracy designed to intimidate and harass a former college classmate and her parents. From December 2016 through May 2018, O’Hara and his co-conspirator Vincent James Palesky harassed the victim and her parents in multiple ways. They frequently sent late-night food orders to her apartment, spoofed phone calls to her phone, and left disturbing voicemails at her childhood home in Delaware, falsely claiming the victim gave them a sexually transmitted disease. O’Hara drew upon his friendship with the victim in order to gain information about her location and her activities, which he then used to further his cyberstalking campaign.
In May 2018, O’Hara escalated the conduct by signing up the victim’s work email address for membership at websites including Pornhub.com, barraging the victim’s new cell phone number with spoofed calls, and posting the victim’s name, likeness, and cell phone number on a sex-chat website. Each time his victim took steps to deter him, O’Hara found new means to inject himself into her life. The persistent nature of O’Hara’s conduct caused his victim to fear leaving her home alone.
O’Hara and Palesky also cyberstalked five other individuals between 2016 and 2018, including former high school acquaintances, another college classmate, and coworkers. O’Hara bragged to others about the “standard procedure” they used to psychologically harm victims.
U.S. Attorney Weiss stated, “This defendant used the Internet to terrorize a young woman and her parents. He and his co-conspirator committed dozens of separate acts, culminating in the defendant posting the victim’s name and number on a sex-chat website. Thanks to the courage of this family, the diligence of the lead FBI investigators, and assistance from other jurisdictions, O’Hara was quickly stopped and today appropriately punished. Members of our community deserve to be free from criminal online harassment and to feel safe in their homes. We are committed to prosecuting Defendants who use the Internet to cyberstalk others.”
"Those who think they can use the anonymity of the Internet to terrorize people will quickly realize the investigative abilities of the FBI and cyber task force partners," said FBI Baltimore Special Agent in Charge Jennifer Boone. "The FBI’s mission is to protect the American people and we will always support our communities against cyberstalking."
This case was investigated by the FBI Baltimore - Wilmington Cyber Task Force, with support from the FBI New York Cyber Task Force, Newark Cyber Task Force, and the New York City Police Department, and the U.S. Attorneys’ Offices in District of New Jersey and Southern District of New York. The case was prosecuted by Assistant U.S. Attorney Whitney Cloud and Cybercrime Section Chief Jamie M. McCall.
New York Man Charged with Trafficking Exotic African CatsRead the Press Release
A federal grand jury has returned an indictment charging Christopher Casacci, 38, of Amherst, New York, with violating the Lacey Act and the U.S. Animal Welfare Act based on his trafficking of African wild cats in interstate commerce, announced Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
The indictment charges that Casacci, doing business as “Exotic Cubs.com,” imported and sold dozens of caracals (Caracal caracal) and servals (Leptailurus serval) in interstate commerce from February to June of 2018. Caracals, also known as the “desert lynx,” are wild cats native to Africa, and grow to approximately 45 pounds. Servals, also wild cats native to Africa, grow to approximately 40 pounds. Both species are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and their commercial possession and sale is restricted under New York state law.
Casacci is also charged with disguising his commercial activity by falsely declaring the animals as domesticated breeds, such as savannah cats and bengal cats, on shipping records.
People and businesses dealing in animals are required to comply with humane care standards under the Animal Welfare Act. Casacci failed to do so, and failed to secure the necessary license from the U.S. Department of Agriculture. Casacci was charged with violating the Animal Welfare Act for selling animals without a license showing minimum compliance with humane treatment standards.
The indictment is the result of an investigation by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, under the direction of Special Agent-in-Charge Ryan Noel, and the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigation. The case is being prosecuted by Trial Attorney Patrick Duggan and Assistant United States Attorney Aaron J. Mango.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
New Orleans Man and Arizona Woman Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – THADDEUS CARTER, age 46, of New Orleans, Louisiana, and GUADELUPE PEREIDA, age 44, of Douglas, Arizona, were sentenced on January 9, 2020 before the Honorable Carl J. Barbier for violations of the Federal Controlled Substances Act, announced U.S. Attorney Peter G. Strasser.
According to the court records, CARTER and PEREIDA had previously pleaded guilty to conspiring to distribute and to possession with the intent to distribute heroin and marijuana. The case resulted from a lengthy Title III wire intercept investigation conducted by the Drug Enforcement Administration in which CARTER and his co-conspirators were captured discussing heroin sales, making sales, and arranging to pay back heroin sources of supply in Chicago, who were sourcing the drugs from near the Arizona/Mexico border. CARTER admitted to dealing heroin daily on the streets of New Orleans for several years. PEREIDA, among other things, admitted to assisting with shipping drugs from the border area.
Judge Barbier sentenced CARTER to 75 months in federal prison to be followed by four years of supervised release, where federal probation officers will monitor his behavior. Judge Barbier sentenced PEREIDA to 11 months in federal prison to be followed by three years of supervised release, where federal probation officers will monitor her behavior.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
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New Haven Man Charged with Illegal Possession of 2 GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging CARLOS BARNES, also known as “Buddha,” 28, of New Haven, with possession of firearms by a previously convicted felon.
The indictment was returned on January 2, 2020. Barnes appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the offense. Barnes has been detained since his arrest by Hamden Police on related state charges on October 12, 2019.
The indictment alleges that, on October 12, 2019, Barnes possessed a Taurus Millennium G2 9mm handgun and a Springfield XD-40 .40 caliber handgun with an obliterated serial number. Prior to that date, Barnes was convicted in state court of carrying a pistol without a permit, sale of illegal drugs, and robbery in the first degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted, Barnes faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Hamden Police Department. The case is being prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
New Castle County Man Convicted After Overdose Death Trial Sentenced to 24 Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced that Donte Jacobs, 31, of New Castle County, was sentenced today to 24 years in federal prison by U.S. District Judge Richard G. Andrews. Jacobs had previously been convicted at trial of distributing and conspiring to distribute fentanyl-laced heroin that resulted in the death of a 26-year-old woman. Jacobs had also pled guilty to being a felon in possession of a firearm recovered during the investigation.
According to court documents and evidence presented at trial, Jacobs had a longstanding agreement to distribute heroin and/or fentanyl-laced heroin with others in the region. By the end of June 2016, Jacobs was distributing fentanyl-laced heroin packaged with a “BUTTER” stamp on it. On June 28, 2016, one of Jacobs’ sub-distributors sold those “BUTTER”-stamped drugs to the victim, whose identity is listed in court documents as T.A. Hours later, in New Garden Township, Pennsylvania, the victim used those drugs and died from a fentanyl overdose. Toxicology records showed that T.A. had 26 ng/ml of fentanyl in her blood stream when she died. Testimony at trial showed that this was clearly a lethal amount of fentanyl.
Members of what is now the Southern Chester County Police Department worked with the Drug Enforcement Administration to investigate T.A.’s death. Law enforcement first arrested the sub-distributor who directly sold the “BUTTER”-stamped bags of fentanyl-laced heroin to T.A. Officers then recorded a conversation between that sub-distributor and Jacobs, wherein Jacobs acknowledged his involvement in distributing the “BUTTER”-stamped drugs. During the call, Jacobs also explained to his sub-distributor how people, “OD on Fentanyl” and how fentanyl and heroin were causing people to “die every day.”
“Jacobs distributed thousands of bags of heroin into our community,” said U.S. Attorney Weiss. “As his statement indicates, Jacobs was willing to accept the possibility that customers would die after using his drugs. We are not. If you knowingly sell a substance that may contain fentanyl and that substance causes death, we will hold you accountable. In this case, for the Defendant, that means he will spend the next 24 years in jail.”
“Jacobs was convicted of distributing and conspiracy to distribute fentanyl-laced heroin that resulted in the overdose death of a woman in Pennsylvania,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Illicit fentanyl has claimed thousands of lives across our region in Delaware and Pennsylvania. That Jacobs knew that fentanyl and heroin was causing people to “die every day” but sold it anyway shows his utter disregard for the members of our communities and the law. The DEA greatly appreciates the work of U.S. Attorney’s Office throughout this investigation.”
Assistant U.S. Attorneys Christopher L. de Barrena-Sarobe and Jesse S. Wenger prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 01:19-cr-094.
Neshoba County Man Sentenced to Almost 6 Years in Federal Prison for Bank RobberyRead the Press Release
Jackson, Miss. – David Keith Frazier, 33, of Neshoba County and a member of the Mississippi Band of Choctaw Indians, was sentenced Wednesday by U.S. District Judge Carlton W. Reeves to 70 months in federal prison, followed by three years of supervised release, for bank robbery by use of a dangerous weapon, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On March 19, 2019, Frazier made threatening phone calls to two tribal elementary schools. During these phone calls, Frazier threatened to cause damage to both schools by means of explosives. The purpose of these phone calls was to cause law enforcement to respond to the schools and therefore to be away from the local bank that Frazier intended to rob.
Shortly after he made these phone calls, Frazier entered Trustmark National Bank, an FDIC-insured bank located on the Choctaw Indian Reservation at 110 Choctaw Town Center, for the purpose of robbing the bank by use of threatened force. Frazier was carrying an air pistol with the intent of making the employees of the bank believe that it was a real pistol. By brandishing and pointing a dangerous weapon, Frazier threatened to injure the employees of Trustmark if they did not give him money that was in the possession of Trustmark. Frazier’s intentional and intimidating behavior caused the employees to give him money in the bank’s possession out of fear of bodily injury.
Frazier took the money from Trustmark and fled. Law enforcement officers responded quickly and caught Frazier, who was in possession of some of the money taken from Trustmark. Officers found the rest of the money, along with the air gun, in the woods where Frazier had fled after the bank robbery. All of the money taken by Frazier from Trustmark National Bank was recovered by law enforcement. Frazier pled guilty before Judge Reeves on October 15, 2019.
The case was investigated by the Choctaw Police Department and the Federal Bureau of Investigation with assistance from numerous other state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
Michigan Man Living in the Philippines Charged with Child Exploitation OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Jason J. Molina, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), today announced that JASON KELLER, 34, originally of Dearborn Heights, Michigan, has been charged in a two-count indictment with child enticement and child pornography offenses.
As alleged in court documents and statements made in court, in September 2018, Keller, using the moniker “Eddie Buttered Toast,” contacted a 14-year-old female in Connecticut and claimed he was a 17-year-old boy from Chicago. At the time, Keller was living in the Philippines. Keller then sent the minor victim a series of grooming emails that eventually coaxed the minor victim into sending photos of herself engaged in sexually explicit conduct to Keller. Some of the emails Keller sent to the minor victim included sexually explicit images of himself.
On December 19, 2018, a grand jury in New Haven returned an indictment charging Keller with one count of enticement of a minor to engage in illegal sexual activity, and one count of receipt of child pornography. Keller was located and arrested in the Philippines in June 2019. He was subsequently removed from the Philippines and returned to the U.S. on December 12, 2019.
On January 9, 2020, Keller appeared in New Haven federal court for a bond hearing before U.S. Magistrate Judge Robert M. Spector, who ordered Keller detained pending trial.
If convicted of the charges in the indictment, Keller faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Marshals Service, International Investigations Branch, with the assistance of the Philippine Bureau of Immigration, Fugitive Search Unit. The case is being prosecuted by Assistant U.S. Attorney Lauren Clark.
U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Mexican National Charged for Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that HECTOR SILVA-TOLENTINO, age 29, was charged in a one-count Bill of Information for illegal use of a social security number in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to the Bill of Information, SILVA-TOLENTINO (“SILVA”), presented a false identification document in order to obtain a Louisiana Driver’s License in Napoleonville, Louisiana. SILVA-TOLENTINO used the driver’s license to obtain employment on offshore oilrigs. If convicted, SILVA-TOLENTINO faces a maximum term of imprisonment of (5) five years, a maximum fine of $250,000, a maximum term of supervised release of (3) three years, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of the Inspector General and the United States Border Patrol in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Massachusetts Woman Sentenced to Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LATOYA McKREITH, 37, of Chicopee, Massachusetts, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 15 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on May 30, 2018, McKreith and Laprese Gollman were arrested after they drove to New Haven in an attempt to purchase four kilograms of cocaine. Investigators seized approximately $100,000 from Gollman at the time of his arrest.
On February 12, 2019, McKreith pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 500 grams or more of cocaine. McKreith, who was released on bond, was remanded to custody of the U.S. Marshals Service at the conclusion of the sentencing proceeding.
Gollman, of Springfield, Massachusetts, also pleaded guilty and, on October 15, 2018, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by eight years of supervised release.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the New Haven and Hamden Police Departments. This case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Man Sentenced for Providing False Statements to the Transportation Security AdministrationRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that GERMIEL AUSTIN, age 35, a resident of Amite, Louisiana, was sentenced January 9, 2020 after previously pleading guilty to providing a document containing false statements to the Transportation Security Administration (“TSA”).
United States District Court Judge Barry W. Ashe sentenced AUSTIN to 2 years of probation, with 6 months to be served on home incarceration, and a $100 special assessment fee. According to court documents, the Transportation Security Administration (“TSA”) is an agency of the United States government responsible for the issuance of Transportation Worker Identification Credential (“TWIC”) cards. TWIC cards are biometric credentials issued to individuals who require unescorted access to security-sensitive transportation sectors such as airports, railroads, chemical plants, and maritime ports. TSA ensures that each applicant undergoes a security threat assessment to determine a person’s eligibility. Convictions for certain criminal offenses can either permanently or temporarily disqualify applicants from consideration. Applicants can sometimes be granted a waiver.
On July 25, 2014, AUSTIN composed and faxed a letter in his own name, to the “TSA TWIC Processing Center” explaining the facts surrounding a previous criminal conviction and indicated that he was not a “threat or risk” in an attempt to have a waiver granted. On the same day, AUSTIN faxed a second letter to the “TSA TWIC Processing Center” that falsely claimed to be from his probation officer. The letter falsely indicated that the defendant successfully completed probation and has demonstrated “his intention to maintain a law-abiding lifestyle.” An agent with the United States Coast Guard Investigative Service, later determined that no person having the name used by AUSTIN had ever been employed by the referenced probation office.
U.S. Attorney Strasser praised the work of United States Department of Homeland Security, Coast Guard Investigative Service agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Man Pleads Guilty to Illegally Purchasing 31 FirearmsRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today for conspiracy to straw purchase 31 firearms.
“The Eastern District of Virginia continues to put straw purchasers on notice: If you abuse federal firearms purchasing laws, you will be prosecuted for your felonious conduct,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Subjecting individuals who choose to straw purchase firearms to federal felony prosecution is just and necessary to ensure that convicted straw purchasers can never again purchase firearms for others.”
According to court documents, Emmanuel Ndjongo, 21, and his then-girlfriend, Alexus Jordon, conspired to straw purchase 31 firearms from Federal Firearm Licensees in Virginia. Jordon purchased six of the firearms at FFLs in Virginia. Ndjongo used Jordon’s name to order the remaining firearms online from an FFL located in North Carolina, and had these firearms shipped to various FFLs in Virginia. Once the firearms arrived in Virginia, Jordon picked up the firearm deliveries from the FFLs, and gave them to Ndjongo, who sought to sell the firearms to other individuals. Local law enforcement in Washington, D.C. and Prince George’s County, Maryland, have recovered two of the firearms unlawfully purchased during this conspiracy; both of which had altered or destroyed serial numbers.
“People who criminally abuse the process of purchasing firearms put all of our citizens at risk,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Guns obtained through straw purchasing end up in the hands of violent criminals who pose a significant threat to our communities and law enforcement officers. ATF will continue to target these offenders and the people they traffic firearms to, as well as leveraging the partnerships we have through Project Guardian to maximize our efforts.”
Ndjongo pleaded guilty to conspiracy to make false statements in connection with the purchase of firearms and faces a maximum sentence of five years in prison when sentenced on March 27. 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.
Jordon pleaded guilty on Dec. 6, 2019, to conspiracy to straw purchase firearms. She is scheduled to be sentenced on March 6.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorneys Nicholas U. Murphy II and Philip Alito are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-343.
Man Pleads Guilty to Misuse of Social Security NumberRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that RAYMUNDO DE LA PAZ (DE LA PAZ), age 27, pled guilty on January 9, 2020 before United States District Court Judge Mary Ann Vial Lemmon, to a one-count bill of information charging him with misuse of a Social Security Number, in violation of Title 18, United States Code, Section 408(a)(7)(B).
According to court documents, DE LA PAZ, a citizen of Mexico, presented a false Social Security card when attending a pre-employment safety class at the Gulf Coast Safety Council in St. Rose, Louisiana. DE LA PAZ falsely represented that a social security number was assigned to him when in fact, the social security number had been assigned by the Commissioner of Social Security to another individual.
DE LA PAZ faces a possible sentence up to five (5) years imprisonment, a fine of $250,000 and one (1) year of supervised release following any term of imprisonment. United States District Court Judge Mary Ann Vial Lemmon set sentencing for March 19, 2020.
U.S. Attorney Peter G. Strasser praised the work of the United States Border Patrol and the Office of Inspector General, Social Security Administration. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Licensed Firearms Dealer Charged with Selling 4 Handguns to an Out-of-State Purchaser in Violation of Federal LawRead the Press Release
PITTSBURGH, PA - A resident of West Mifflin, PA, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of illegal sale of firearms by a licensed dealer to an out-of-state resident, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on January 7, named Jamie Chonko, age 34, as the sole defendant.
According to the Indictment, on or about June 19, 2019, Chonko, being a licensed dealer of firearms, willfully sold four handguns to an out-of-state resident knowing and having reasonable cause to believe that, at the time of the sale, the purchaser did not reside in Pennsylvania, where Chonko’s place of business was located. Federal law prohibits sales of handguns by a licensed dealer to an out-of-state resident.
The law provides for a maximum sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Yvonne M. Saadi is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lawrenceburg Man Pleads Guilty to Wire and Tax FraudRead the Press Release
LEXINGTON, Ky. — A Lawrenceburg, Kentucky, man, Joseph G. Peavler, 53, admitted, in federal court on Friday, committing wire fraud and assisting in the preparation of a false income tax return.
Peavler pleaded guilty before U.S. District Court Judge Danny C. Reeves. In his plea agreement, Peavler admitted that between 2004 and 2018, he managed a warehouse owned by someone else and, during that time, he devised a plan to rent space in the warehouse to two separate entities, keeping the money for himself without knowledge or authority by the owners. That fraud scheme was furthered by interstate wire communications. Peavler also admitted to failing to declare this rent money on his tax returns, for each of the years he received the rent.
Peavler was indicted in October 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge for the Louisville Division of FBI; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the guilty plea.
The investigation was conducted by the FBI and IRS. The United States was represented by Assistant U.S. Attorneys Erin Roth and Ken Taylor.
Peavler is scheduled to be sentenced on May 1, 2020 at 10 a.m. He faces up to 23 years in prison and a maximum fine of $500,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case is being prosecuted as part of the Department of Justice’s efforts to identify and prosecute those persons who facilitate elder financial exploitation.
The Department of Justice’s Elder Justice Mission, being carried out through the Kentucky Elder Justice Task Force, is to seek justice for victims of elder financial exploitation. Anyone who knows someone who may be a victim of an elder financial exploitation, is encouraged to contact law enforcement
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Law Enforcement and City Officials Announce Significant Reductions in Violent Crime under Project EJECT in Natchez and Adams CountyRead the Press Release
Natchez, Miss. – U.S. Attorney Mike Hurst joined Natchez Police Chief Walter Armstrong, Adams County Sheriff Travis Patten, Sixth Judicial District Attorney Shameka Collins, Assistant Special Agent in Charge Will McCrary with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant Special Agent in Charge Kevin Gaddy with the Drug Enforcement Administration, and other officials yesterday to announce a significant reduction in crime in the City of Natchez as a result of Project EJECT.
“Project EJECT works, as reflected by these significant reductions in crime, and we have been successful because of the buy-in, cooperation and hard work of our local partners. Leadership matters, and the Mayor, Police Chief, Sheriff, District Attorney and Board of Aldermen should all be commended for welcoming Project EJECT into their communities and working so diligently with us to make Natchez and Adams County safer. We intend to redouble our efforts in the coming year and expand our work under the Department of Justice’s Project Guardian to hopefully prevent more crime before it happens,” said U.S. Attorney Hurst.
“ATF has been proud to partner with the Natchez Police Department and the Adams County Sheriff’s Office in our diligent efforts to reduce violent gun crime,” said ATF New Orleans Field Division Assistant Special Agent in Charge William J. McCrary. “It is satisfying to see that these combined actions have had such dramatic results, and it is very encouraging to see such positive community support. ATF is looking forward to continuing to grow our partnerships in the coming year.”
“DEA is proud to be a part of Project EJECT with our federal, state, and local law enforcement and community partners, which has inflicted an astounding blow to the violent drug trafficking networks in this region of Mississippi and beyond. This project continues to show the collective strength that all of our partners have, combining resources to eradicate the supply of drugs and guns in this area, keeping our neighborhoods safe,” said DEA Special Agent in Charge Brad L. Byerley.
"I feel the joint operation with federal partners and local law enforcement has been extremely effective as it relates to crime fighting in the City of Natchez,” said Natchez Police Chief Walter Armstrong. “We have had tremendous positive results less than one year into the start of Project EJECT and we are very proud that US Attorney Hurst was willing to bring this operation into Natchez/Adams County. This is a great example of how effective crime fighting efforts can be when you bring all agencies together."
The significant reductions in crimes reported by the Natchez Police Department are included below.
Originally launched by the U.S. Attorney’s Office for the Southern District of Mississippi in December 2017 in the City of Jackson under the U.S. Department of Justice’s Project Safe Neighborhoods (“PSN”) initiative, Project EJECT is designed as an enhanced violent crime reduction program under the Department’s Project Safe Neighborhoods that incorporates decades of experience in bringing various levels of law enforcement together with stakeholders in the community, with the overall goal of producing a long-term, meaningful reduction in and prevention of violent crime. EJECT stands for: “Empower Justice Expel Crime Together.”
In 2020, the U.S. Attorney’s Office will further expand its efforts throughout the Southern District of Mississippi by implementing the Department of Justice’s new initiative, Project Guardian. Project Guardian will involve enhancing coordination among federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improving 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 ensuring that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please click here.
Natchez, Mississippi Crime Statistics: 2018-2019*2018
2019*
Difference
Reduction
Increase
Murder
12
3
-9
75%
Attempted Murder
3
1
-2
66%
Burglary
172
142
-30
17%
Burglary Motor Vehicle
170
84
-86
51%
Rape
8
7
-1
12%
Aggravated
69
53
-16
23%
Simple Assault Domestic
179
133
-46
26%
Motor Vehicle Theft
31
23
-8
26%
Kidnapping
3
1
-2
66%
Weapon Offenses
12
10
-2
16%
Robbery
24
11
-13
54%
Other Sex Offense
12
12
-0-
-0-
Aggravated Domestic
18
25
+7
38%
Simple Assault
203
252
+49
24%
Grand Larceny
47
54
+7
15%
Petit Larceny
112
135
+23
21%
Shoplifting
155
211
+56
36%
Arson+
8
11
+3
36%
* As of December 30, 2019
+ Fire Marshal has lead on the arson cases
Lanett Woman Receives 46-Month Sentence for Preparing Fraudulent Federal Income Tax ReturnsRead the Press Release
Montgomery, Alabama – On Thursday, January 9, 2020, a Lanett, Alabama resident, Gladys Rosalynn McCauley, 43, received a 46-month sentence for aiding and assisting in the filing of false federal income tax returns, announced United States Attorney Louis V. Franklin, Sr. and Thomas J. Holloman III, Special Agent in Charge of the Atlanta Field Office of IRS, Criminal Investigation.
According to court documents, McCauley owned an income tax preparation business in Lanett called “Roz House of Tax” that she opened in 2014. McCauley’s business collected fees as a percentage of the tax refunds she claimed for her customers. In order to inflate those refunds, McCauley knowingly placed false items in her customers’ income tax returns. For example, McCauley falsely claimed that customers were entitled to education tax credits and child tax credits—even though she knew they were entitled to no such credits. In yet another example, she falsely claimed a client had more than $34,000 in business losses. Over the course of a few years, McCauley’s numerous false claims resulted in a tax loss to the Internal Revenue Service (IRS) of more than $1.5 million.
At the sentencing hearing, United States District Judge R. Austin Huffaker, Jr. described McCauley’s offense as a “serious” one, noting that she hurt all citizens who pay their taxes.
“For far too long, opportunistic tax return preparers like Ms. McCauley have preyed upon the unwitting taxpayers residing in this district,” stated United States Attorney Franklin. “As was the case here, preparers attempt to make money by putting false information on the tax returns of others. In doing so, the preparers subject their customers to possible future scrutiny by the IRS and they pocket money that should have gone to the public’s benefit. This conduct must stop. Hopefully, Ms. McCauley’s sentence will cause other tax return preparers who have considered running schemes like this to honestly and accurately prepare tax returns.”
"As tax filing season is underway, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced yesterday," said Special Agent in Charge Holloman. "The sentencing of Gladys McCauley again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system. In addition, taxpayers are encouraged to visit the IRS.gov website for tips on looking for a reputable return preparer and their filing responsibility.”
The IRS’s Criminal Investigation Division investigated this case. Assistant United States Attorney Jonathan S. Ross prosecuted the case.
Keene Man Sentenced to 40 Months for Drug TraffickingRead the Press Release
CONCORD - Michael Christian Steever, 39, of Keene, was sentenced to 40 months in federal prison for possession of fentanyl and cocaine base with intent to distribute and distribution of fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between April 18, 2019 and May 1, 2019, investigators made several controlled purchases of fentanyl from Steever. A federal search warrant executed at his Keene apartment yielded additional fentanyl and cocaine base, as well as scales and other materials related to distribution of drugs. In excess of 69 grams of fentanyl and 18 grams of cocaine base were seized in the investigation.
Steever previously pleaded guilty on August 29, 2019.
“The distribution of fentanyl and other illegal drugs has diminished public safety and destroyed lives in communities throughout New Hampshire,” said U.S. Attorney Murray. “In order curtail trafficking in these lethal substances, we will continue to work closely with the Keene Police Department and all of our law enforcement partners to identify, prosecute, and incarcerate drug traffickers. Those who choose to sell dangerous drugs in New Hampshire should be aware that they will serve time in federal prison.”
"Given its potency, 70 grams of fentanyl is enough to kill hundreds of people," said Jason Molina, Special Agent in Charge for HSI Boston. "Drug trafficking organizations that deal in this deadly poison will continue to face the full resources of HSI and our partners. Homeland Security Investigations is committed to helping combat this epidemic in New Hampshire and anywhere it exists."
This matter was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Keene Police Department. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Jury Finds Gibson County Man Guilty of Possession of MethamphetamineRead the Press Release
Jackson, TN – Following a three-day jury trial in U.S. District Court, Jeffery Lee Davis, 59, of Trenton, TN, was found guilty of possession of over 5 grams of actual methamphetamine with the intent to distribute. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
According to information presented in court, on July 6, 2017, officers with 28th Judicial District Drug Task Force executed an arrest warrant on the defendant, Jeffery Lee Davis, at his home in Trenton, Tennessee. Prior to his arrest, officers observed Davis sitting at a desk in his home weighing methamphetamine on a set of drug scales and packaging the methamphetamine for resale. Davis was arrested and officers seized the methamphetamine on the desk as well as an additional bag of methamphetamine found on Davis' person.
In total, Davis possessed and intended to distribute approximately 27 grams of actual methamphetamine with a 98% purity level. Davis has an extensive criminal history, including multiple prior methamphetamine manufacturing and trafficking convictions, as well as convictions for assault and burglary.
Sentencing is scheduled before U.S. District Court Chief Judge S. Thomas Anderson on April 7, 2020, where Davis faces a mandatory-minimum sentence of five years imprisonment and a maximum sentence of 40 years imprisonment, followed by four years of supervised release.
U.S. Attorney D. Michael Dunavant said, "Davis is a recidivist drug offender who was destroying this rural community by his sale of highly potent and poisonous drugs, and his prior felony convictions have finally caught up with him. Thanks to the great investigative work by our state and local law enforcement partners at the 28th Judicial District Drug Task Force, he has been held accountable and will be removed from the community."
This case was investigated by the 28th Judicial District Drug Task Force, Drug Enforcement Administration, and Federal Bureau of Investigation.
Assistant U.S. Attorneys Josh Morrow and Matt Wilson prosecuted this case on behalf of the government.
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Jonesville Man Sentenced to 97 Months in Federal Prison for Methamphetamine Distribution and Firearms ChargesRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that David White Jr., 49, of Jonesville, Louisiana, was sentenced January 7, 2020, by U.S. District Judge Dee D. Drell, to serve 97 months in federal prison, followed by three years of supervised release, for distribution of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to information presented to the court, on February 5, 2019, David White Jr. sold approximately one ounce of methamphetamine to an undercover agent for $450.00. During the drug transaction, White pulled a North American Arms .22 Magnum revolver from his pocket and told the undercover agent that this was the weapon he carried.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), FBI, and the Catahoula Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
# # #
Johnston County Man Sentenced to 14 Years' Imprisonment on Gun and Crystal Meth ChargesRead the Press Release
NEW BERN — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, United States District Judge Louise W. Flanagan, sentenced GLENN SHAW, 43, of Princeton to 172 months’ imprisonment, followed by 5 years of supervised release. SHAW was named in a four-count Superseding Indictment on December 4, 2018, charging him with possession with intent to distribute five grams or more of methamphetamine, two counts of being a felon in possession of a firearm, and one found of possessing a sawed-off shotgun that was unregistered in the National Firearms Registration and Transfer Record. On February 25, 2019, he pled guilty to the methamphetamine offense and to being a felon in possession of a firearm.
According to the investigation, on the afternoon of June 8, 2018, a Johnston County Sheriff’s Office deputy conducted a traffic stop on a black Ford F250 in Princeton, North Carolina for having unlawful purple license plate lights. The driver, identified as SHAW, seemed unusually nervous, and the deputy could smell marijuana in the truck. The deputy also noticed a large machete sitting in the passenger seat. When asked whether he had anything illegal in the truck, SHAW became hysterical. Deputies removed SHAW from the truck, and as they opened the door, they spotted what was later confirmed to be an ounce (26 grams) of 98% pure crystal meth.
The investigation continued and on the morning of July 14, 2018, the Goldsboro Police Department responded to a call at Taco Bell on 11th Street in Goldsboro concerning an unresponsive man sitting in the driver’s seat of a Ford truck. The officer found the truck running, in park, but not in a parking space. He made contact with the man in the driver’s seat, again identified as SHAW, who slowly awoke after the officer repeatedly slapped the driver’s side window. Fearing that SHAW may be in the midst of an overdose, law enforcement contacted Fire and EMS and checked his vitals. SHAW declined to be transported to the hospital but consented to a search of the car. When officers opened the driver’s side door, they spotted a syringe filled with a clear liquid suspected of being heroin. In the glove compartment, officers found a Colt Model Combat Commander .45 caliber pistol. SHAW was prohibited from possessing the gun, having previously sustained a pair of state felony convictions for assault with a deadly weapon inflicting serious injury.
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 information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Johnston County Sheriff’s Office, Goldsboro Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
Jackson Woman Pleads Guilty to Soliciting Kickbacks, Making False Statements to Law Enforcement Agents, and Tampering with RecordsRead the Press Release
LEXINGTON, Ky.- A Jackson, Kentucky, woman admitted in federal court today she solicited kickbacks from a toxicology laboratory in exchange for urine drug testing referrals, lied to law enforcement agents about the kickback she received, and then attempted to cover up the kickback by requesting the alteration of certain financial records.
Theresa C. Merced, 80, pleaded guilty today to one count of violating the Eliminating Kickbacks in Recovery Act (EKRA), 18 U.S.C. § 220; one count of making false statements, 18 U.S.C. § 1001; and one count of attempted tampering with records, 18 U.S.C. § 1512, before U.S. District Court Chief Judge Danny C. Reeves.
Merced, the office manager of a substance abuse treatment clinic in Jackson, Ky., admitted that between December 2018 and August 2019, she solicited kickbacks from the CEO of a toxicology lab in exchange for urine drug test referrals. According to the plea agreement, in August 2019 the CEO delivered to Merced a $4,000 check as part of a larger package of promised inducements. Merced caused the check to be cashed. When Merced was questioned about the check by law enforcement agents in September 2019, she denied knowledge of it, and stated that the $4,000 was probably a loan from the lab CEO to her husband. Shortly after her interview with the agents concluded, Merced called the lab CEO and asked that he alter the lab’s financial records so that the entry for the $4,000 check would say “rent/loan,” consistent with the lie she told the agents.
EKRA, enacted by Congress in October 2018 as part of a broader package of legislation aimed at combatting the opioid crisis, prohibits, among other things, the solicitation or receipt of kickbacks in exchange for the referral of urine drug testing services. Merced’s EKRA conviction is believed to be the first in the nation.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Field Office, and Kentucky Attorney General Daniel Cameron jointly announced the guilty plea.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, and the Kentucky Office of Attorney General, Medicaid Fraud Control Unit. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Paul McCaffrey.
Merced is scheduled to be sentenced on May 1, 2020. She faces up to 20 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 7 was:
Breanne Lee Wieder, 30, of Billings, on charges of prohibited person in possession of a firearm and possession of a firearm with an obliterated serial number. If convicted of the most serious crime, Wieder faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wieder was detained pending further proceedings. The Billings Police Department, Yellowstone County Sheriff’s Office, Montana Department of Corrections, Probation and Parole and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-138.
Appearing on Jan. 8 was:
Amy Kathleen Sullivan, 50, of Lavina, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Sullivan faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Sullivan was detained pending further proceedings. The FBI West task force investigated the case. Pacer case reference. 19-132.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 7 was:
Brian Dean Ward, 35, and Terence Kenneth Holloway, 23, both of Chicago, IL, on charges of conspiracy to possess with intent to distribute controlled substance and possession with intent to distribute controlled substances. If convicted of the most serious crime, Ward and Holloway face a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Ward was detained pending further proceedings. The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Russell Country Task Force, U.S. Marshals Service and Teton County Sheriff’s Office investigated the case. Pacer case reference. 19-89.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Independence Man Pleads Guilty to Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to illegally possessing methamphetamine and firearms.
Devin D. Cofer, 24, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of possessing methamphetamine with the intent to distribute and one count of possessing firearms in furtherance of a drug-trafficking crime.
By pleading guilty today, Cofer admitted he was in possession of a Glock .40-caliber semi-automatic handgun and a Taurus 9mm semi-automatic handgun on April 19, 2019. Cofer, a daily methamphetamine user, traded three grams of methamphetamine and $50 to purchase the Taurus.
Cofer also admitted that he possessed 86.3 grams of methamphetamine, which he intended to distribute, on May 17, 2019. Cofer also possessed a Walther semi-automatic handgun and a Glock .40-caliber semi-automatic handgun in furtherance of his intended distribution of methamphetamine. Cofer admitted to having purchased the Glock two days prior by trading seven grams of methamphetamine for the weapon, and purchasing the Walther two days prior from a “dope guy.”
Under federal statutes, Cofer is subject to a sentence of up to 20 years in federal prison without parole for the drug-trafficking count, plus a consecutive mandatory minimum sentence of five years in federal prison without parole for the firearms count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Caleb J. Aponte, who is a cross-designated prosecutor from the Missouri Attorney General’s office as part of the Safer Streets Initiative to combat violent crime. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Hattiesburg Man Sentenced for Illegally Possessing Firearm under Project EJECTRead the Press Release
Hattiesburg, Miss. – James Douglas Maxwell, 26, of Hattiesburg, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to four months in prison, consecutive to the 11 months he has already served, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Maxwell was also ordered to pay a $3000 fine and to serve three years of supervised release following his confinement.
Maxwell was previously convicted in Forrest County in 2013 of being an accessory after the fact to armed robbery and was sentenced to serve 20 years in the custody of the Mississippi Department of Corrections with all 20 of those years suspended. On February 14, 2019, Maxwell was found in possession of a firearm during a traffic stop in Hattiesburg. He pled guilty before Judge Starrett on October 2, 2019.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Forrest County Sheriff’s Office investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Man Pleads Guilty to Hobbs Act Robbery under Project EJECTRead the Press Release
Hattiesburg, Miss. – D’Andre Garry, 23, of Hattiesburg, pled guilty yesterday, before Senior U.S. District Judge Keith Starrett, to committing Hobbs Act Robbery, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On March 31, 2019, Garry and a criminal associate robbed a Family Dollar store in Hattiesburg. As Garry’s associate held the cashier at gunpoint, Garry emptied the cash register. The robbery was captured by store surveillance and Garry was quickly apprehended by Hattiesburg Police officers.
Garry will be sentenced by Judge Starrett on May 5, 2020 at 9:45 a.m. He faces a maximum penalty of 20 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Four indicted on federal charges in Bulloch County drug trafficking conspiracyRead the Press Release
STATESBORO, GA: Four people have been indicted on federal charges for running a methamphetamine distribution ring throughout Bulloch County.
The indictment, returned by a grand jury in U.S. District Court, charges the four – Clifton Pittman, 50, of Reidsville, Ga.; Hope Mitchell, 44, of Reidsville; Clarence Johnson, 55, of Statesboro; and Joy Leigh Horton, 36, of Savannah – with Conspiracy to Possess with Intent to Distribute and to Distribute 50 Grams or More of Methamphetamine, and Possession with Intent to Distribute 50 Grams or More of Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. If convicted, the defendants face possible sentences of up to life in prison.
“Of all our partners in law enforcement, a community’s citizens often are the most helpful,” said U.S. Attorney Christine. “Their assistance, as in this case, contributes to safer neighborhoods, and supports the work of law enforcement agencies in removing bad elements.”
After receiving multiple complaints from area residents, the Bulloch County Sheriff’s Office Crime Suppression Team visited a home where they observed suspected evidence of drug activity. After subsequently serving a search warrant at the residence, investigators seized kilos of methamphetamine and paraphernalia for drug distribution and consumption.
“These traffickers can no longer deliver dangerous drugs on the streets,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The collective law enforcement cooperation and the subsequent prosecution by the U.S. Attorney’s Office made this investigation a success.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the Drug Enforcement Administration and the Bulloch County Sheriff’s Office, and prosecuted for the United States by U.S. Attorneys Marcela C. Mateo and Frank M. Pennington II.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Virgin Islands National Guard Member Sentenced to in Prison for Fraud, a False Statement and Theft of Government MoneyRead the Press Release
St. Croix, USVI – Aesha Rivers, age 44, of St. Croix, was sentenced on January 10, 2020, after being convicted by a federal jury of 48 counts of Wire Fraud; 1 count of Theft of Government Money; and 1 count of False Statement to Government, United States Attorney Gretchen C.F. Shappert announced. The jury trial commenced on April 30, 2019 and concluded on May 2, 2019.
Visiting Judge Anne E. Thompson sentenced Rivers to 12 months and a day in prison, to be followed by 3-year term of supervised release, and a special assessment of $5,000. Additionally, Rivers was ordered to make restitution to the Virgin Islands National Guard in the amount of $71,345.93.
According to trial testimony, Rivers was a Virgin Islands National Guard member who applied for and received Overseas Housing Allowance ("OHA") proceeds between June 1, 2011, and June 30, 2015, for a residence she purchased on St. Croix, for which she held a mortgage through Flagstar Bank.
The OHA program is a reimbursement-based program intended to help defray the higher cost of housing for National Guard members located in the Virgin Islands, Puerto Rico, and Guam. In order to receive OHA proceeds, the National Guard member must submit and certify an application as well as provide documentation to support either an existing rental agreement or HUD-1 to validate an existing mortgage. Annual recertification is also required.
Rivers stopped making her mortgage payments to Flagstar by March 1, 2012, and a foreclosure motion for default judgment was granted to Flagstar on March 18, 2014. Rivers failed to notify the Virgin Islands National Guard of her changed circumstances as to her housing expenses, as required. In addition, she falsely recertified her OHA eligibility annually. As a result, Rivers fraudulently received OHA proceeds through the electronic transfer of funds into her USAA checking account until June 30, 2015. Evidence presented at trial showed that Rivers fraudulently received $71,345.93 from the OHA program.
The U.S. Army CID – Major Procurement Fraud Unit and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Former Supervisory Committee Member of Municipal Credit Union Pleads Guilty to EmbezzlementRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that Joseph Guagliardo, a/k/a “Joseph Gagliardo,” a former New York City Police Department (“NYPD”) officer and former member of the supervisory committee (the “Supervisory Committee”) of Municipal Credit Union (“MCU”), a non-profit financial institution, pled guilty today to abusing his leadership position at MCU to embezzle more than $400,000 dollars from the MCU. GUAGLIARDO pled guilty before United States District Judge Denise L. Cote.
U.S. Attorney Geoffrey S. Berman said: “As he has now admitted, Joseph Guagliardo betrayed the trust of MCU’s members, who elected him to supervise and protect MCU, by abusing his position to steal hundreds of thousands of dollars. Today’s plea is yet another step forward in this Office’s efforts to fully investigate and prosecute those who abused positions of authority at MCU, a multibillion-dollar, non-profit, federally insured credit union, to enrich themselves and their families at the expense of its hard-working members.”
According to the allegations contained in the Complaint, Information, publicly-available information, court filings, and statements made during the plea proceeding:
MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”). MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $2.9 billion in member accounts, each of which is federally insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA. Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York state governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.
GUAGLIARDO is a former officer with the NYPD and a former Supervisory Committee member of MCU, a volunteer position. In or about 1993, GUAGLIARDO joined the Supervisory Committee, and remained in that position until he was removed from that position by the New York State Department of Financial Services on or about May 24, 2018, except for a brief period of time when he served as a member of MCU’s board of directors in or about 2008.
Under New York banking law, the Supervisory Committee’s duties included supervision of the actions of MCU’s board of directors and officers. MCU’s written conflict of interest policy, which was regularly distributed to board members, Supervisory Committee members, and others, provided, among other things, that members of MCU’s “Board of Directors and Supervisory Committee may not do business with the Credit Union, either individually or as representative of any business entity.”
From 2009 through May 2018, in violation of MCU policy and his fiduciary duty as a member of the Supervisory Committee, GUAGLIARDO engaged in a scheme to obtain money from MCU to which he knew he was not entitled, and took steps to conceal his efforts. Among other things, GUAGLIARDO caused MCU to direct more than $250,000 to a security company created and controlled by GUAGLIARDO, but operated in another’s name, and then directed that money from that company be paid to him and to his family members. GUAGLIARDO also over-billed MCU more than $200,000 for purported web advertising services provided by a non-profit organization that GUAGLIARDO also controlled.
In addition, during substantially the same period in which GUAGLIARDO was committing these offenses, GUAGLIARDO unlawfully distributed controlled substances to the former chief executive officer of MCU, in the form of prescription drugs, some of which were obtained from GUAGLIARDO’s spouse, who worked as a doctor affiliated with a public hospital, and some of which were obtained from a different doctor affiliated with the NYPD.
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GUAGLIARDO, 62, of Brooklyn, New York, pled guilty to one count of embezzlement from a federally insured credit union, which carries a maximum penalty of 30 years in prison. In his written plea agreement, GUAGLIARDO agreed to forfeit at least $425,514, and to pay at least $468,189 in restitution to MCU.
GUAGLIARDO is scheduled to be sentenced by Judge Cote on April 10, 2020, at 2:30 p.m.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the sentence of GUAGLIARDO will be determined by the Court.
U.S. Attorney Berman praised the outstanding work of the Special Agents of the United States Attorney’s Office. Mr. Berman also thanked the New York County District Attorney’s Office, the New York State Department of Financial Services, and the NYPD Internal Affairs Bureau for their assistance.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark and Daniel C. Richenthal are in charge of the prosecution, with assistance of Special Assistant U.S. Attorney Alona Katz from the New York County District Attorney’s Office.
Flathead Valley methamphetamine trafficker sentenced to prisonRead the Press Release
MISSOULA—A Flathead Valley man who admitted possessing methamphetamine for distribution and having firearms in relation to meth trafficking was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Patrick Ryan O’Leary, 56, of Martin City, pleaded guilty in September to possession with intent to distribute meth and to possessing a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Dana L. Christensen presided.
In court documents filed in the case, the prosecution said in March 2019, drug task force agents received information that O’Leary and his wife, Toni Jean Krause, a co-defendant, were involved in distributing meth in the Flathead Valley. Agents executed a search warrant at the couple’s Martin City residence and seized about 400 grams of meth, surveillance equipment, three firearms, electronic evidence and a large quantity of U.S. currency. The firearms included a pump-action shotgun, a semi-automatic shotgun and a semiautomatic rifle. Krause pleaded guilty in the case and is awaiting sentencing.
In June 2019, agents stopped O’Leary while he was making a drug run and found about 11 ounces of meth on his motorcycle and a loaded .357 magnum revolver on his person. O’Leary admitted to law enforcement that the meth was his and that he possessed the revolver.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by Immigration and Customs Enforcement, the Northwest Montana Drug Task Force, Flathead County Sheriff’s Office, Kalispell Police Department and the Whitefish Police Department.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Fayetteville Man Sentenced to More Than 17 Years for Heroin DistributionRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge Louise W. Flanagan sentenced ANTHONY GABRIEL JOHNSON, 42, of Fayetteville, NC, today. JOHNSON was sentenced to 212 months imprisonment followed by 5 years of supervised release.
On July 18, 2018, JOHNSON was named in a two-count Indictment charging him with conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin and possession with intent to distribute 100 grams or more of heroin. On September 4, 2019, JOHNSON pled guilty to those charges.
On April 4, 2018, the Fayetteville Police Department (FPD) and the Federal Bureau of Investigation (FBI) learned that JOHNSON was selling large quantities of heroin and cocaine from his residence in Fayetteville. Investigators met with a Confidential Informant (CI) for the purpose of conducting a controlled purchase of an ounce of heroin from JOHNSON. The CI entered the residence, purchased the heroin from JOHNSON, and returned to the investigator’s vehicle several minutes later. A subsequent laboratory analysis confirmed the substance as heroin, which weighed approximately 27.86 grams.
Officers set up surveillance of JOHNSON’S residence on May 25, 2018. From the morning of May 25, 2018, to midnight of May 26, 2018, the investigator observed approximately 25 vehicles arrive and stay at the residence for a short period of time. On May 29, 2018, via continued surveillance of JOHNSON’S residence, officers observed a vehicle arrive and park in the driveway of the residence. Several minutes later, the vehicle left the residence and was followed by an unmarked law enforcement vehicle. The driver of the vehicle was pulled over after running a red light. During the stop, the driver was observed throwing a bag of suspected cocaine from the vehicle. The individual was found to be in possession of approximately 7.8 grams of powder cocaine packaged in 23 baggies, 8 grams of crack cocaine packaged in 28 baggies, 4.2 grams of heroin, and 125.9 grams of marijuana.
On May 31, 2018, law enforcement executed a search warrant at JOHNSON’S residence and JOHNSON was detained in the living room. During a search of the exterior of the residence, officers located a crawl space where six sandwich bags containing 169 grams of heroin was found. Officers also seized $768 currency. Letters in JOHNSON’S name were located inside the home, along with his cell phone. The defendant was transported to a police station to be interviewed.
JOHNSON agreed to an interview with investigators. JOHNSON admitted to selling heroin from his current residence and a previous residence in Fayetteville. JOHNSON also acknowledged that he was on state post-release supervision and house arrest while he was selling heroin. He indicated that he recently received 200 grams of heroin.
Based upon the investigation, JOHNSON is responsible for the possession and/or distribution of 1,055.5 grams of heroin and he maintained a premise where he stored and distributed heroin.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Federal Bureau of Investigation and the Fayetteville Police Department investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for the government.
Fayetteville Man Sentenced to More Than 11 Years for Carjacking and Gun CrimesRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced ANTONIO TAPIA DOMENA, Jr., 22, of Fayetteville to 141 months imprisonment, followed by 5 years of supervised release.
DOMENA was named in an Indictment filed on November 27, 2018 charging him with Possession of a Firearm by a Convicted Felon, Carjacking, and Brandishing a Firearm in Furtherance of a Crime of Violence. On August 13, 2019, DOMENA pleaded guilty to Carjacking and Brandishing a Firearm in Furtherance of a Crime of Violence
According to the investigation, on July 23, 2018, three men approached a female soldier in the early morning hours and surrounded her as she was returning to her apartment. One of the men brandished a firearm, pushed her to the ground, and demanded her belongings. Another male stole her purse and removed the contents, stealing car keys, U.S. currency, Korean currency, and her cell phone. The suspects stole the victim’s vehicle, which contained military gear and other personal belongings. Officers with the Fayetteville Police Department responded, observed the vehicle, and conducted a traffic stop. All three individuals fled on foot, but officers successfully apprehended DOMENA. Officers then searched DOMENA and recovered a stolen .38 caliber revolver, an unknown amount of Korean currency, and $116 in U.S. currency.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted the investigation in this case. Assistant United States Attorney Chad Rhoades handled the prosecution of this case for the government.