Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
9 December 2019
Belton Man Sentenced to 15 Years for Illegal Firearm Following Police ChaseRead the Press Release
KANSAS CITY, Mo. – A Belton, Missouri, man was sentenced in federal court today for illegally possessing a firearm after leading police officers on a vehicle pursuit that ended when he drove through residential yards and disabled his vehicle after striking several trees.
“This defendant is the epitome of a career criminal,” said U.S. Attorney Tim Garrison. “Not even 40 years old, he has been incarcerated or under court supervision for nearly two decades, committing acts of violence both in and out of custody. This office and our law enforcement partners will never stop working to incapacitate criminals who refuse to respect the law and threaten or violate the safety and security of others.”
Gregory P. Middaugh, 39, was sentenced by U.S. District Judge Howard F. Sachs to 15 years and eight months in federal prison without parole. Middaugh was sentenced as an armed career criminal due to his prior violent felony convictions.
On March 25, 2019, Middaugh pleaded guilty to being a felon in possession of a firearm.
Belton police officers responded to a call of a burglary in progress on Feb. 10, 2017. Middaugh was kicking at the front door of his estranged girlfriend’s residence, attempting to make entry into the residence. Middaugh fled from the scene in a black Mercedes Benz C280.
Belton police officers attempted to stop Middaugh as he fled from the residence. Middaugh refused to stop and fled from the officers at a high rate of speed. While fleeing, Middaugh hit several parked vehicles. He then left the roadway and continued to drive through yards, where he struck several trees. Middaugh’s vehicle was eventually disabled, and he was taken into custody.
Officers searched the vehicle after Middaugh’s arrest and found a loaded Smith and Wesson .45-caliber pistol with a laser sight attachment lying on the passenger floorboard of the vehicle. The firearm was reportedly stolen. According to court documents, officers also found marijuana packaged for distribution, PCP, cocaine, prescription pills, and drug paraphernalia.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Middaugh has two prior felony convictions for burglary, two prior felony convictions for stealing, and prior felony convictions for domestic violence (in which he shot his girlfriend in the face), robbery, armed criminal action and assault on a state Department of Corrections employee.
Between 1998 and 2017, Middaugh was arrested 19 times, which resulted in eight felony convictions and three misdemeanor convictions. Additionally, Middaugh is currently charged with two felony and 14 misdemeanor offenses (including murder) in five pending cases throughout the Kansas City metropolitan area. As a result of these convictions, he has been on probation, parole, or incarcerated almost continuously since 1997.
This case was prosecuted by Assistant U.S. Attorney Matt Moeder. It was investigated by the Drug Enforcement Administration, the Belton, 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.Akron Man Sentenced to 92 Months in Prison for Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – An methamphetamine, heroin, and fentanyl trafficker was sentenced to 92 months in prison, announced United States Attorney Mike Stuart. Anton Marcel Jeffries, 25, of Akron, Ohio, previously pled guilty to possession with intent to distribute methamphetamine, heroin, and fentanyl.
“Another Akron drug dealer is sentenced to significant time in federal prison for peddling a trifecta of deadly drugs in Huntington,” said United States Attorney Mike Stuart. “Jeffries was caught with 108 grams of meth, 25 grams of heroin and 12 grams of fentanyl. Thanks to law enforcement, these dangerous drugs didn’t make it on the streets of Huntington.”
On September 19, 2018, officers with the Huntington Violent Crimes and Drugs Task Force and the Huntington Police Department Special Investigations Bureau executed a search warrant on an apartment residence at 917 9th Avenue in Huntington. Jeffries possessed multiple baggies of what forensic testing confirmed to be approximately 108 grams of methamphetamine, 25 grams of heroin, and 12 grams of fentanyl.
The Huntington Violent Crimes and Drugs Task Force and the Huntington Police Department Special Investigations Bureau conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: SDWVNews and USAttyStuart
###
8 December 2019
Akron man sentenced to nearly 30 years after firing on three officers, attempting two carjackingsRead the Press Release
An Akron man was sentenced to 355 months in federal prison for shooting at three law enforcement officers as well as attempting to carjack two people and possessing methamphetamine.
Michael P. Johnson, 34, was convicted of one count of assault on law enforcement officers with a deadly weapon, one count of discharging a firearm during a crime of violence, two counts of attempted carjacking and two counts of possession with intent to distribute methamphetamine.
On September 24, 2017, Johnson possessed with the intent to distribute approximately 362 grams of methamphetamine. On January 2, 2018, while working with federal law enforcement agents, Akron police officers attempted to arrest Johnson on the methamphetamine trafficking charges. During a traffic stop, Johnson got out of a vehicle and fired a Smith and Wesson .38-caliber revolver at the officers. After shooting at the officers, Johnson fled and used the revolver to attempt to carjack the drivers of two vehicles at an Akron gas station. Officers caught Johnson and found that he possessed approximately 136 grams of methamphetamine.
Johnson was also ordered to forfeit $4,767.
“This defendant put dozens of people at risk – the officers he fired upon, the innocent people he tried to carjack and the Akron residents simply passing by,” U.S. Attorney Justin E. Herdman said. “Nearly 30 years in prison is an appropriate and just result that should also deter others who so callously disregard the lives of law enforcement offices and innocent community members.”
Akron Police Chief Ken Ball said: “This incident is an example of the grave danger that the men and women of the Akron Police Department face every day in service to their community. We are pleased that the defendant [was] made to answer for his behavior ….”
This case was prosecuted by Assistant U.S. Attorneys Henry F. DeBaggis and Aaron Howell following an investigation by the Akron Police Department, the U.S. Marshals and the Drug Enforcement Administration.
7 December 2019
Rock Island Man Sentenced to 50 Years in Prison for Federal CrimesRead the Press Release
DAVENPORT, IA- On Thursday, December 5, 2019, Chad Eric Mink, age 45, from Rock Island, Illinois, was sentenced by United States District Court Chief Judge John A. Jarvey to a total sentence of 600 months in prison after being convicted of 15 counts alleging various crimes including stalking, interstate domestic violence, receipt and possession of unregistered destructive devices, malicious use of explosive materials, identity theft, using a destructive device during a crime of violence, interstate transportation of a stolen vehicle, and tampering with a witness and evidence, announced United States Attorney Marc Krickbaum.
A jury found Mink guilty of the 15 offenses on June 24, 2019. At trial, the Government presented more than 70 witnesses, including several forensic experts, who testified about Mink’s use of a stolen truck to ram a vehicle occupied by a former intimate partner and her boyfriend; possession of multiple pipe bombs; planting a pipe bomb near his former intimate partner’s room at the Quad City Inn in Davenport; and attempts to influence a witness to destroy evidence and to fabricate evidence.
“This case demonstrates once again the effectiveness of federal, state, and local law enforcement agencies combining their expertise and investigative talents to remove a very dangerous person from our community,” stated Mario Vidoli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kansas City Division.
“Chad Mink is a violent, dangerous stalker who, for years, subjected a good woman to his own personal reign of terror,” said United States Attorney Marc Krickbaum. “Mink deserves every day he will spend in federal prison. I commend the prosecution team, including Assistant United States Attorneys Cliff Cronk, Amy Jennings, Will Ripley, Victim-Witness Coordinator Christina Busse, and especially ATF Special Agent Jason Pessman, whose tireless work on this case upheld the highest standards of law enforcement.”
The lead investigative agency was the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The following agencies assisted in the investigation: the Federal Bureau of Investigation, Federal Bureau of Prisons, United States Marshals Service, Rock Island (County) Sheriff’s Office, Davenport Police Department, Milan (Illinois) Police Department, Rock Island Police Department, Muscatine County Jail, and the Illinois State Police Crime Laboratory. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
6 December 2019
USA Milhiser Op-Ed: Warrant-proof encryption threatens public safetyRead the Press Release
As our society has become dependent on a vast and expanding digital infrastructure, it is not surprising that all types of criminal cases – white collar and elder fraud, child sexual exploitation, gun and drug traffickers, and terrorism – are likely to include digital evidence. One of the most critical advances in this new cyber world is the development of advanced encryption techniques. Encryption provides enormous benefits to society, including safe-guarding personal information and facilitation of on-line commercial transactions. However, we must not allow dangerous criminals to cloak their communications and digital activities behind an impenetrable shield.
Digital evidence is of particular importance in investigating and prosecuting criminals who use cyberspace to exploit vulnerable children. Such cases include the production of child pornography in still images, videos, and live-streamed content, as well as sharing and collecting such material. Perpetrators also use technology to entice minors to engage in illegal sexual activity. On-line child exploitation cases have increased dramatically in the past few years, with offenders continually adopting more sophisticated means in committing these heinous crimes and evading justice. In 2018 alone, the National Center for Missing and Exploited Children’s CyberTipline received more than 18 million reports which contained more than 23 million images and more than 22 million videos of child pornography. Law enforcement access to this information is critical in exposing criminal activity, locating victims, identifying perpetrators, and protecting our children.
Central Illinois is not immune to these crimes. A Decatur man, Jason Cooper, is currently serving a 20-year sentence in federal prison after being prosecuted by the United States Attorney’s Office. Police received a report from a 13-year-old Riverton girl that a Facebook user “Jermaine Jackson” threatened to harm her and her family if she would not meet him to engage in sexual activity. Agents obtained a search warrant for the Facebook account, and based on the data that was obtained, they were able to quickly identify Cooper and his location. Significantly, agents were also able to identify a second victim, a New York girl, whom Cooper had been extorting to provide sexually explicit images for several years. This second victim had never reported the incidents to her parents and may never have been identified without access to digital evidence.
Popular messaging services and social media sites are moving to implement warrant-proof encryption that thwarts the ability of law enforcement to locate victims, identify those responsible for the criminal activity and successfully prosecute guilty parties. When warrant-proof encryption is utilized, digital messages can only be decrypted by end users. Thus, information produced by a service provider in response to a court-ordered warrant remains encrypted and inaccessible to law enforcement officials.
It is imperative to both the safety of the users and public safety that technology providers maintain an appropriate mechanism to allow law enforcement prompt access to encrypted information, whether stored on a device or in transmission, in compliance with a court-issued search warrant or wiretap order. Without such access, cyberspace becomes a lawless space where perpetrators operate undetected and can secretly prey on our children.
Ensuring lawful access to digital information is a priority of the Department of Justice. The Department is committed to the development of a coherent national policy for responsible encryption, which continues to protect personal privacy and provide cybersecurity without compromising the safety of the public, and children in particular, some of our most vulnerable victims.
U.S. Attorney Trent Shores' Statement on the Retirement Announcement of Tulsa Police Chief Chuck JordanRead the Press Release
“Chief Chuck Jordan’s legacy is one of service, courage, and accomplishment. He exemplifies the selfless police ethic of ‘protect and serve.’ There is no better friend to the cause of justice than Chief Jordan. Time and again, he displayed a remarkable balance of prudence and courage when faced with challenging circumstances and consequential decisions. Chief Jordan's reverence for the special responsibility placed in a police chief is as inspiring as it is unwavering. He knew that he had been entrusted to command the men and women who wore the uniform of the Tulsa Police Department; that his guidance and leadership could determine whether his officers made it home to their families. The City of Tulsa is a stronger and safer city because of Chief Chuck Jordan. As we have worked closely together over these last two years, I am also proud to be able call him my friend. Thank you for your service, Chief."
U.S. Attorney Recognizes Law Enforcement for Their Contributions to the Mission of the U.S. Attorney's Office and Department of JusticeRead the Press Release
LAS VEGAS, Nev. — The U.S. Attorney’s Office recognized 45 members of federal and local law enforcement from eight law enforcement agencies at its annual Law Enforcement Awards ceremony held at U.S. District Court in Las Vegas. The ceremony honored law enforcement professionals who have gone above and beyond their duties in support of the U.S. Attorney’s Office mission to safeguard Nevada’s communities.
“The recipients of this year’s awards have demonstrated a commitment to excellence, to enforcing the laws, and to protecting the communities they serve day in and day out,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Recognizing their contributions is a small way to honor them. I commend the brave men and women who wear a badge and make Nevada’s communities safer.”
The Las Vegas Metropolitan Police Department’s Color Guard opened the ceremony. U.S. Attorney Nicholas A. Trutanich provided welcoming remarks.
The award recipients were honored for their contributions and collaboration towards protecting national security, fighting public corruption, addressing the opioid abuse epidemic, combatting human trafficking, preventing financial fraud crimes, and reducing violent crime on tribal lands. The recipients recognized for their professionalism and dedicated public service came from the following law enforcement agencies:
- Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
- Drug Enforcement Administration (DEA)
- Federal Bureau of Investigation (FBI)
- U.S. Department of Health & Human Services – Office of Inspector General (HHS-OIG)
- Internal Revenue Service – Criminal Investigations (IRS-CI)
- Henderson Police Department
- Las Vegas Metropolitan Police Department
- Washoe County Sheriff’s Office
# # #
Twentynine Palms Man Arrested on Criminal Complaint Alleging He Made Death Threats to a Congressional Staffer and InternRead the Press Release
RIVERSIDE, California – A San Bernardino County man was arrested today on a federal criminal complaint alleging he made more than 10,000 harassing telephone calls this year to government offices and made death threats against a congressional staffer and an intern who answered the calls.
Robert Stahlnecker, 48, of Twentynine Palms, was arrested at his residence on charges of threatening federal officers and employees, interstate communications with threat to injure a person, and anonymous telecommunications harassment. He made his initial appearance this afternoon in United States District Court in Riverside and remains in federal custody. His arraignment is scheduled for December 26.
On August 28, Stahlnecker called a congresswoman’s office in San Mateo, California three times within a span of five minutes, according to an affidavit filed with a criminal complaint that was unsealed today. During the calls, Stahlnecker allegedly berated the intern who answered the call, using vulgar language to insult her, and finally, threatened to come to the congresswoman’s office to kill her.
On September 26, Stahlnecker allegedly made eight telephone calls within a seven-minute span to the Washington, D.C., office of a U.S. Senator from Ohio. During the calls, Stahlnecker allegedly berated the intern who answered the call, insulted the intern by using vulgar language and finally, threatened to come to the senator’s office to kill her.
Stahlnecker has made more than 10,000 calls to government agencies and elected officials between January and November of this year, the affidavit states.
U.S. Capitol Police has been investigating Stahlnecker since at least 2009, opening 41 investigations into threatening or harassing telephone calls he has made involving 53 different elected officials. Stahlnecker has criminal convictions for harassment in New Jersey and making terroristic threats with intent to terrorize in Pennsylvania, according to the criminal complaint. In 2015, he was convicted in in federal court in Riverside of impeding the operations of the U.S. Department of Veterans Affairs by making thousands of telephone calls to the VA – including its suicide prevention line – but that conviction was later overturned on appeal.
The United States Capitol Police and the Department of Veterans Affairs, Office of Inspector General investigated this case.
This matter is being prosecuted by Assistant United States Attorney Peter Dahlquist of the Riverside Branch Office.
Three charged with turning ocean into international drug trafficking superhighwayRead the Press Release
HOUSTON – Three Colombian citizens are set to appear in federal court for their alleged roles in a drug smuggling attempt involving more than 1,300 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
Jesus Alfredo De La Cruz Orobio, 59, Juan David Portocarrero Diaz, 34, and Milton Valencia Blandon, 29, are set to appear before U.S. Magistrate Judge Christina Bryan today at either 10 a.m. or 2 p.m.
A Houston grand jury returned the indictment Dec. 5.
The charges contained in the criminal complaint, filed Dec. 2, allege that on Nov. 21, 2019, the U.S. Coast Guard (USCG) Cutter Thetis was on routine patrol off the Pacific Coast of Colombia and Ecuador. At that time, they allegedly detected a long low profile go-fast vessel 81 nautical miles southeast of Malpelo Island, Colombia. The charges allege the USCG stopped the vessel which did not have a flag, registration documents, homeport name and nor any identification on the hull.
The charges allege authorities boarded the boat and found three crewman, at which time Orobio identified himself as the master of the boat. According to the allegations, USGC conducted a search and discovered 54 bales of cocaine weighing approximately 1,321 kilograms in the hold of the boat along with sophisticated satellite communication and global positioning devices.
The three crewmen are charged with conspiracy to possess with intent to distribute more than five kilograms of cocaine on a vessel in the high seas in violation of the Maritime Drug Law Enforcement Act and the Drug Trafficking Vessel Interdiction Act of 2008.
This is the second such prosecution in the Southern District of Texas under a statute that allows any jurisdiction in the United States to prosecute such smugglers. The law gives the United States jurisdiction over “stateless” vessels without nationality found on the high seas with contraband.
If convicted, each man faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine.
The Drug Enforcement Administration and USCG conducted the investigation. Assistant U.S. Attorney Edward Gallagher is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Three Illinois Prison Guards Indicted on Charges of Inmate Assault Resulting in Death and Obstruction of the InvestigationRead the Press Release
SPRINGFIELD, Ill. – Three Illinois correctional officers made their initial appearance in federal court this morning following their arrest on charges related to the May 2018 assault of an inmate who later died, at Western Illinois Correctional Center in Mt. Sterling, Ill. Those charged are Todd Sheffler, 51, of Mendon; Willie Hedden, 41, of Mt. Sterling, and Alex Banta, 28, of Quincy.
The indictment alleges that on May 17, 2018, Sheffler, Hedden and Banta assaulted an inmate, who was restrained and handcuffed behind his back at the time, during an escort to another prison unit, in violation of his Constitutional protection to be free from cruel and unusual punishment. The victim, identified as Larry Earvin, suffered multiple broken ribs, a punctured colon, and other serious internal injuries, and died in June 2018. The indictment alleges that each defendant falsified incident reports to omit any reference to the assault and that they misled agents of the Illinois State Police by denying any knowledge of the assault of Earvin that each participated in and witnessed.
“Our laws protect the civil rights of all,” stated U.S. Attorney John Milhiser. “Every day, correctional officers report for public service that is often demanding and under-appreciated. However, our criminal justice system requires that those who perform these difficult duties do so lawfully. Those responsible for the deadly assault of Mr. Earvin must be held accountable.” Milhiser commended the Illinois Department of Corrections for its cooperation and the FBI and Illinois State Police for their thorough investigation of this tragic incident.
Sean M. Cox, FBI Special Agent in Charge stated: "The FBI is committed to vigorously investigating allegations of Constitutional violations by law enforcement officers, including correctional officers, who in this investigation have been indicted with violating the civil rights of Mr. Earvin. This case should be a reminder that everyone, including individuals who are incarcerated, is afforded the same protections under the U.S. Constitution, and no one wearing a badge is above the law."
“The people of Illinois must have confidence in the constitutional integrity of the criminal justice system from the streets, to the courthouse, to corrections,” stated ISP Director Brendan F. Kelly. “It is the mission of the Illinois State Police Division of Internal Investigations to work with our state and federal partners to hold accountable those who betray that trust.”
The defendants were arrested late yesterday, Dec. 5, by the FBI and Illinois State Police, and appeared today for arraignment in federal court before U.S. District Judge Sue E. Myerscough. The indictment, returned by the grand jury this week, remained sealed pending the defendants’ arrest and court appearance. An initial trial date of Feb. 4, 2020, has been scheduled. Detention hearings for the defendants have been scheduled for this afternoon.
At the time of the alleged crimes, Sheffler was a lieutenant at Western Illinois Correctional Center (WICC); Hedden was a sergeant, and, Banta was a correctional officer, subordinate to Sheffler and Hedden. Inmate Larry Earvin, who was 65 years old, was an inmate at WICC and would have been eligible for parole in September 2018.
According to the indictment, on May 17, 2018, Sheffler, Hedden, and Banta participated in the forcible escort of Earvin from his residential unit to the segregation housing unit. During the transport, Earvin was physically assaulted, without legal justification, while he was restrained and handcuffed behind his back and posed no physical threat to the defendants or other correctional officers. The indictment alleges that Sheffler, the lieutenant, and most senior officer, and Hedden, the sergeant and senior officer to Banta, failed to intervene to protect Earvin from the assault.
Following the assault, Sheffler, Hedden and Banta each allegedly filed knowingly false incident reports that failed to disclose any assault of Earvin. The false reports allegedly included identical language used by Hedden and Banta that falsely stated that Earvin was delivered to staff in the segregation housing unit “without further incident” other than Earvin resisting the escort and refusing to walk. In addition, the indictment alleges that Sheffler, Hedden and Banta knowingly misled agents of the Illinois State Police during individual interviews by falsely denying any knowledge of the assault of Earvin that they participated in and witnessed.
Hedden is charged in an additional count of obstruction that alleges he persuaded a friend, a fellow employee at WICC, to delete a text message Hedden had sent to the friend following the May 17 incident, to conceal and destroy information relating to the offenses charged.
Assistant U.S. Attorneys Timothy A. Bass and Victor B. Yanz are representing the government in the prosecution. The charges were investigated by agents of the FBI-Springfield Division and the Illinois State Police Division of Internal Investigation with the cooperation of the Illinois Department of Corrections.
Specifically, the indictment charges Sheffler, Hedden and Banta with conspiracy to deprive civil rights (one count); deprivation of civil rights (one count); and conspiracy to obstruct justice (one count.). Each defendant is charged individually with obstruction of the investigation: falsification of document (one count) and misleading conduct (one count.) In addition, Hedden is charged with destruction of a record or other object (one count.)
As charged, the statutory sentence for both conspiracy to deprive civil rights and deprivation of civil rights under color of law resulting in bodily injury and death is any term of imprisonment up to life. For each count of obstruction, the maximum statutory penalty is up to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Texas businessman convicted of making illegal campaign contributions to political candidatesRead the Press Release
HOUSTON - A Houston businessman has pleaded guilty to making illegal political contributions in the names of others to campaign committees for U.S. Senate and House of Representatives in 2017, announced First Assistant U.S. AttorneyTim S. Braley along with Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division.
James D. Dannenbaum, 80, pleaded guilty today to violating the Federal Election Campaign Act.
On Nov. 22, Dannenbaum Engineering Corporation (DEC) and its parent company, Engineering Holding Corporation, entered into a deferred prosecution agreement (DPA). They also agreed to pay a $1.6 million criminal fine for its involvement in a multi-year conduit contribution scheme. Dannenbaum is DEC’s former CEO.
As part of the plea, Dannenbaum admitted that from 2015 through 2017, he and DEC made $323,300 in illegal conduit contributions through various employees and their family members to federal candidates and their committees. DEC corporate funds were used to advance or reimburse employee monies for these contributions. Dannenbaum did not reveal to any of the federal candidates that the corporation was the true source of the contributions. The object of the scheme was for DEC, Dannenbaum and a former employee to gain access to and potentially influence various candidates for federal office, including candidates for the presidency as well as the Senate and House of Representatives.
U.S. District Judge Sim Lake of the Southern District of Texas accepted the plea and set sentencing for March 5, 2020. At that time, Dannenbaum faces up to two years in federal prison.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and John Pearson are prosecuting the case along with Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section.
Texas Businessman Convicted of Making Illegal Campaign Contributions to Political CandidatesRead the Press Release
A Houston, Texas, businessman has pleaded guilty to making illegal political contributions in the names of others to campaign committees for U.S. Senate and House of Representatives in 2017, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
James D. Dannenbaum, 80, pleaded guilty today to violating the Federal Election Campaign Act.
On Nov. 22, Dannenbaum Engineering Corporation (DEC) and its parent company, Engineering Holding Corporation, entered into a deferred prosecution agreement (DPA) and agreed to pay a $1.6 million criminal fine for its involvement in a multi-year conduit contribution scheme. Dannenbaum is DEC’s former CEO.
As part of the plea, Dannenbaum admitted that from 2015 through 2017, he and DEC made $323,300 in illegal conduit contributions through various employees and their family members to federal candidates and their committees. DEC corporate funds were used to advance or reimburse employee monies for these contributions. Dannenbaum did not reveal to any of the federal candidates that the corporation was the true source of the contributions. The object of the scheme was for DEC, Dannenbaum and a former employee to gain access to, and potentially influence, various candidates for federal office, including candidates for the presidency as well as the Senate and House of Representatives.
U.S. District Judge Sim Lake of the Southern District of Texas accepted the plea and set sentencing for March 5, 2019.
The FBI conducted the investigation. Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Carolyn Ferko and John Pearson of the Southern District of Texas are prosecuting the case.
Two Members of the Romanian Cybercriminal Enterprise Bayrob Group Sentenced on 21 Counts Relating to Infecting over 400,000 Victim Computers with Malware and Stealing at Least $4 MillionRead the Press Release
Bogdan Nicolescu, 37, and Radu Miclaus, 37, both from Bucharest, Romania, were sentenced to 20 years and 18 years, respectively, for their roles in a scheme to, among other things, infect more than 400,000 computers with malware and gain access to credit card and other information for later sale on dark market websites.
According to testimony at trial and court documents, Nicolescu, Miclaus, and others operated a criminal enterprise referred to as the “Bayrob Group” from Bucharest, Romania. It began in 2007 with the development of proprietary malware, which they disseminated through malicious emails purporting to be legitimate emails from entities and agencies such as Western Union, Norton AntiVirus, and the IRS. When recipients clicked on an attached file, the malware secretly installed itself onto their computers.
This malware harvested email addresses from the infected computer, such as from contact lists or email accounts, and then sent malicious emails to these harvested email addresses. By using the infected computers to reach out and control additional computers, the defendants infected and controlled more than 400,000 individual computers, primarily in the United States.
In addition to using the infected network to expand its size, Nicolescu, Miclaus, and other members of the Bayrob Group used the collective processing power of the computer network to solve complex algorithms for the financial benefit of the group, a process known as cryptocurrency mining.
Finally, trial testimony and evidence revealed that these defendants engaged in persistent and sophisticated data mining of the infected computers, selling information gleaned from infected computers repeatedly over time on the Dark Web. Investigators discovered evidence on the Dark Web of trafficking in users’ personal financial information, passwords, and access to their computers.
In total, this criminal enterprise resulted in losses of at least $4 million.
Notably, this investigation started with a complaint from a victim in the Northern District of Ohio. But for that victim contacting law enforcement to report suspicious activity and potential theft of information, the defendants’ malware would have likely continued to infect thousands of additional computers and harmed thousands of additional individuals.
“Today’s sentences underscore the critical work being done to investigate and prosecute to the fullest extent those criminals who think that the presumed anonymity of the Internet can hide their pervasive and extensive criminal activities,” said U.S. Attorney Justin Herdman. “Regardless of whether the criminals are in Romania, or within our District, these sentences send the clear and resounding message that crimes committed using the Internet will not go unpunished.”
"These sentences handed down today reflect the dynamic landscape in which international criminals utilize sophisticated cyber methods to take advantage of and defraud, unsuspecting victims anywhere in the world,” said FBI Special Agent in Charge Eric Smith. “Despite the complexity and global character of these investigations, this investigation and prosecution demonstrate the commitment by the FBI and our partners to aggressively pursue these individuals and bring justice to the victims.”
The FBI investigated the case, with assistance from the Romanian National Police and the Romanian Directorate for the Investigation of International Organized Crime and Terrorism. The case was prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Brian McDonough, along with the Computer Crime and Intellectual Property Section of the Department of Justice. The prosecution was assisted by the Department of Justice’s Office of International Affairs.
If you or a family member believe you have been a victim of online fraud, theft, or criminal activity, please contact local law enforcement and make a report with the Internet and Cyber Crime Complaint Center at www.IC3.gov.
###
Straw Purchaser Pleads Guilty to Illegally Purchasing 31 FirearmsRead the Press Release
ALEXANDRIA, Va. – An Alexandria woman pleaded guilty today to a conspiracy to straw purchase 31 firearms.
According to court documents, Alexus Jordon, 23, and her then-boyfriend, Emmanuel Ndjongo, conspired to straw purchase 31 firearms from Federal Firearm Licensees (FFLs) in Virginia. Jordon purchased six of the firearms at FFLs in Virginia, while Ndjongo used Jordon’s name to order the remaining firearms 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 the firearms up from the FFL where they had been shipped, and gave the firearms to Ndjongo, who sought to sell the firearms to other individuals.
“It should abundantly clear now to all: If you straw purchase firearms in the Eastern District of Virginia, you will be subject to felony prosecution,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “It is not draconian. Rather, it is practical and just. Straw purchasers have committed felonious conduct and a felony conviction ensures that they can no longer purchase firearms for others.”
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 obliterated serial numbers at the time of recovery.
“This investigation demonstrates how individuals criminally abuse the process of purchasing firearms,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Anyone engaged in firearms trafficking should be on notice. ATF works with our law enforcement partners throughout the nation to keep firearms out of the hands of those who should not have them. If you lie when you buy a firearm, you will be held accountable.”
Jordon 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 6, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. 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 the plea was accepted by Senior U.S. District Judge T.S. Ellis, III. 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-335.
Statement from U.S. Attorney Jay E. Town on the Death of Huntsville Police Department InvestigatorRead the Press Release
“All of Alabama is heartbroken again as another Alabama peace officer is gunned down in the line of duty. The Huntsville Police Department investigator, whose name will be released tomorrow, will always be remembered as a good man and a fine officer. Those of us who knew him admired his dedication and professionalism. We must now direct our prayers to his grieving family and pull together in full support of the Huntsville Police Department and law enforcement everywhere who lost another brother of the badge tonight. I am beyond grief.”
Statement by U.S. Attorney Andrew Lelling Regarding Acquittal of Brandon ZiobrowskiRead the Press Release
“We respect the jury’s verdict. But in this case the defendant posted a tweet that, on its face, offered $500 to anyone who killed a federal agent. In 2019, over 100 law enforcement officers died in the line of duty. The public needs to know that, regardless of today’s verdict, we will never hesitate to prosecute apparent threats against law enforcement officers.”
St. Johnsbury Man Sentenced for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Tony Cuthbertson, 50, of St. Johnsbury, Vermont, was sentenced on December 4, 2019, in United States District Court in Rutland, Vermont, to serve 96 months in prison after his guilty plea to one count of knowingly producing with intent to distribute child pornography that is an adapted or morphed depiction of an identifiable minor. Chief U.S. District Judge Geoffrey W. Crawford also ordered Cuthbertson to serve a ten (10) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, in September and October of 2017, Cuthbertson uploaded images to multiple Chatstep chat rooms. Chatstep is a website on the Internet that makes online chat rooms available to users. Cuthbertson uploaded these images knowing that they would be available to other Chatstep users. Cuthbertson produced these images by cropping images that depicted identifiable minors such that various aspects of the images were highlighted and the child appeared to be engaged in sexually explicit conduct. These images depicted child pornography and Cuthbertson produced them with the intention of distributing them.
United States Attorney Christina E. Nolan commended the efforts of the Lebanon, New Hampshire Police Department, the Vermont Internet Crimes Against Children Task Force, and Homeland Security Investigations in the investigation and prosecution of Cuthbertson. Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Cuthbertson. Assistant Federal Public Defender Steven L. Barth represented Cuthbertson.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sisseton Man Sentenced to Nearly 16 Years for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man convicted of abusive sexual contact was sentenced on December 4, 2019, by U.S. District Judge Charles B. Kornmann.
David Wayne Carper, age 53, was sentenced to 188 months in federal prison, to be followed by 10 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, between on or about January 2017 and January 2018, Carper knowingly engaged in and attempted to engage in sexual contact with the victim, that is, sexual contact by using force. Carper had the intent to abuse, humiliate, harass, and degrade the victim and engaged in such sexual contact to arouse and gratify his sexual desires. At the time of the sexual contact, Carper had at least one prior sex offense conviction.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Carper was remanded to the custody of the U.S. Marshals Service.
Sherman Oaks Man Pleads Guilty to Making False Statements to Grand JuryRead the Press Release
SACRAMENTO, Calif. — Raz Razla, 49, of Sherman Oaks, pleaded guilty last Friday to making false statements to the grand jury, U.S. Attorney McGregor W. Scott announced.
According to court documents, Razla testified falsely before a grand jury in the Eastern District of California on March 1, 2018, regarding his co-defendant, Yaniv Gohar, 36, formerly of Berkeley. Gohar had led an organization that installed and maintained video slot machines at businesses open to the public across Northern California, and he had also laundered the proceeds of his gambling business. Gohar was arrested on Dec. 8, 2017, released over the government’s objection, and escaped from the United States by charter jet.
According to court documents, Razla testified falsely that he had only learned of the charge against Gohar for conducting an illegal gambling enterprise after Razla received the subpoena to the grand jury. Razla’s false testimony was material to the grand jury’s investigation of whether Razla or his work colleagues had aided and abetted Gohar’s failure to appear or harbored or concealed him, as well as whether Razla or his work colleagues had known of the unlawful source of Gohar’s money when engaging in real estate transactions and attempted real estate transactions on his behalf.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case. Assistance was provided by the U.S. Department of Justice’s Office of International Affairs and Israeli authorities.
Co-defendant, Orel Gohar, 29, also fled the United States in Dec. 2017 and remains at large. Anyone with information about his whereabouts should call the Federal Bureau of Investigation at (916) 746-7000. The charges against Orel Gohar are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Co-defendant Yaniv Gohar was extradited from Israel, pleaded guilty in September to conducting an illegal gambling business, money laundering, and failure to appear, and awaits sentencing. Co-defendant Eran Buhbut, 34, of Oakland, pleaded guilty in August to conducting an illegal gambling business and awaits sentencing. Co-defendants May Levy, 28, of Walnut Creek, Atir Dadon, 35, of Sherman Oaks, Bar Shani, 27, of San Francisco, and Adam Atari, 36, of Sherman Oaks, have pleaded guilty and have been sentenced.
Razla is scheduled to be sentenced on Feb. 28, 2020. Razla faces a maximum statutory penalty of five years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Seven Defendants Charged in $11.5 Million Fraud Case: Lawyer and Tax Preparer Helped Five Defendants with False Discrimination ClaimsRead the Press Release
LITTLE ROCK—Five individuals and an attorney have been charged with defrauding the U.S. Department of Agriculture out of over $11.5 million that was intended to benefit farmers who had been discriminated against. The indictment alleges that four sisters, one of their daughters, and a lawyer worked together to submit false claims concerning discrimination against farmers who are black, Hispanic, or female. The women also hired a tax preparer to falsify tax returns, resulting in failure to report over $4.6 million to the Internal Revenue Service.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, Dax Roberson, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General, and Tamera Cantu, Special Agent in Charge of the Internal Revenue Service, announced the indictment, which was handed down by a federal grand jury on Thursday afternoon and made public today.
The indictment alleges that from 2008 until 2017, five defendants solicited people to file false claims asserting they were discriminated against when they tried to get assistance from USDA for their farming operations. Four of the defendants—Lynda Charles, Rosie Bryant, Delois Bryant, and Brenda Sherpell—are sisters. A fifth defendant, Niki Charles, is the daughter of Lynda Charles. A sixth defendant, Everett Martindale, worked as an attorney and acted as the legal representative for most of the claimants that the five women recruited. A seventh defendant, Jerry Green, worked as a tax preparer, and the indictment alleges that he filed false tax returns for some of the claimants.
According to the indictment, claims were submitted under two programs: the Black Farmers Discrimination Litigation (BFDL) Settlement and the Hispanic and Women Farmers and Ranchers (HWFR) Litigation. The BFDL Settlement resulted from a class action lawsuit filed in 1997 in which a group of black farmers claimed they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. Similarly, the HWFR Litigation originated when groups of Hispanic and women farmers filed separate lawsuits against USDA, also alleging discrimination in their farm benefit programs.
Both BFDL and HWFR resulted in a claims process where farmers who could show they had applied for participation in a USDA benefit program and believed they had been discriminated against could make a claim for financial relief. A successful claim resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the Internal Revenue Service as a tax withholding. The indictment alleges that 192 claims were made, almost all of which were successful, resulting in a loss of over $11.5 million. The indictment alleges that the 192 claims were false because the claimants had not suffered discrimination and, in most cases, had not even attempted to farm.
The indictment alleges that Martindale would deposit claim checks into his law firm trust account, issue a check from that trust account to the claimant, and withhold his attorney fee. For both BFDL and HWFR, attorney fees were restricted to $1,500 per claimant. The indictment alleges that the four sisters entered an agreement with Martindale in which they would split the attorney fee. The sisters also demanded and received additional money from the claimants themselves.
The money received from a claim was income that should have been reported on the claimant’s tax return. The indictment alleges that the four sisters arranged for defendant Jerry Green to provide tax preparation services for the claimants they had recruited. The indictment further alleges that Green falsified the tax returns in order to create a tax refund. The conspiracy resulted in false tax items totaling $4,615,009.
According to the indictment, three of the sisters—Lynda Charles, Rosie Bryant, and Delois Bryant—filed false tax returns of their own and laundered money through purchases of numerous homes and properties, a Chevrolet van, and a Mercedes G550. The indictment also alleges that they laundered money through cashier’s checks and payments on a student loan for Charles’ daughter.
In October, the United States government filed a civil case to forfeit several properties that were purchased using money traceable to the crimes charged in this indictment.
The investigation is being conducted by USDA-OIG and IRS with assistance from the United States Marshals Service and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Angela Jegley, Michael Johnson, Cameron McCree, and Bart Dickinson.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
CHARGES AND STATUTORY SENTENCES
Mail fraud is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Conspiracy to defraud the IRS is punishable by not more than 5 years in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
False tax returns are punishable by not more than 3 years incarceration in the Bureau of Prisons with a possible fine of up to $100,000, and not more than 1 year supervised release.
Tax evasion is punishable by not more than 5 years incarceration in the Bureau of Prisons with a possible fine of up to $100,000, and not more than 3 years supervised release.
Money laundering is punishable by not more than 10 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
San Francisco Man Sentenced to 97 Months for Receiving Child Pornography from MinorsRead the Press Release
OAKLAND – Michael Anthony LeBoeuf was sentenced to 97 months in prison for receipt and possession of child pornography, announced United States Attorney David L. Anderson and U.S. Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King. The sentence was handed down by the Hon. Phyllis J. Hamilton, U.S. District Judge.
LeBoeuf, 38, of San Francisco, pleaded guilty to the charges on September 4, 2019. According to the plea agreement, LeBoeuf admitted that he communicated with two minor victims via text messaging. He knew the minors were 16 and 17 years of age. LeBoeuf admitted that in 2012 he asked the 17-year-old minor to send photos of himself in the nude including photos showing the minor’s genitals. The minor sent at least two nude photos to LeBoeuf, at LeBoeuf’s request, via text communication. LeBoeuf also admitted that he invited the minor to his San Francisco residence. The minor traveled from Marin County to meet LeBoeuf at his San Francisco residence where the two had sexual intercourse.
Similarly, LeBoeuf admitted that in 2013 he asked the 16-year-old minor to send photos of himself in the nude including photos showing the minor’s genitals. The minor sent at least two nude photos to LeBoeuf via text communication. LeBoeuf admitted that he invited the minor to his San Francisco residence and that the minor traveled from Oakland to San Francisco where the two had sexual intercourse in LeBoeuf’s residence. After the minor departed, LeBoeuf sent a text message asking if the minor had friends his age or younger that LeBoeuf could meet.
Federal law enforcement agents executed a search warrant at LeBoeuf’s apartment on May 3, 2018. In the apartment, the agents located several of LeBoeuf’s computers and electronic devices on which were more than 75 sexually explicit images of children that constituted child pornography as defined in 18 U.S.C. § 2256(8), including photographs and videos of the two minors described above.
A federal grand jury indicted LeBoeuf on May 2, 2019, charging him with to two counts of receipt of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b)(1), and one count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2). LeBoeuf pleaded guilty to all three counts.
In addition to the prison term, Judge Hamilton also ordered the defendant to serve a 10-year period of supervised release. The defendant was remanded into custody immediately upon sentencing. In addition, Judge Hamilton scheduled a hearing for February 20, 2020, at 1:30 p.m., in Oakland, to determine issues regarding restitution.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez and Kathleen Turner. The prosecution is the result of an investigation by HSI.
San Francisco Acupuncturist Pleads Guilty to Health Care Fraud in False Billing SchemeRead the Press Release
SAN FRANCISCO – Haichao Huang pleaded guilty today to health care fraud and making false statements relating to health care matters, announced United States Attorney David L. Anderson, Office of Personnel Management Office of the Inspector General Deputy Assistant Inspector General for Investigations Thomas W. South, and U.S. Department of Labor Office of Inspector General Special Agent-in-Charge Quentin Heiden. The guilty plea was accepted by the Honorable Susan Illston, United States District Judge.
“Haichao Huang stole money set aside for union members’ health benefit plans by fraudulently billing union trust funds for acupuncture services not performed. The U.S. Department of Labor Office of Inspector General will continue to work with our law enforcement partners to safeguard the union benefit funds from those who seek to exploit it for personal gain,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
According to the plea agreement, Huang, 46, of San Francisco, was a health care provider who offered acupuncture, physical therapy, massage, and other services to patients in and around San Francisco, Calif. Beginning no later than February 2013 and continuing through at least June 2018, Huang knowingly and willfully executed a scheme to defraud healthcare benefit programs. Huang submitted and caused to be submitted false claims for reimbursement from health care benefit programs that he knew were not properly payable, including from programs provided through federal government and labor union healthcare plans. Huang included false and inaccurate billing codes that artificially inflated both the type of service the patient received and the time he spent with the patient. The plea agreement gives examples of the ways in which Huang submitted false and inaccurate billings for reimbursement. Huang submitted requests for reimbursement for acupuncture treatment when, in fact, the patient had received much shorter periods of treatment, no acupuncture treatment, or no care of any kind at all. Huang also submitted claims for services rendered on days when patients had not been seen by him at all—including days when Huang was not in California. Further, after a patient reached the limit of acupuncture sessions allowed by the relevant insurance program or plan, Huang falsely and inaccurately billed for other types of treatments and services that were not provided, or billed under a patient’s family member’s health plan who never received treatment through his practice, in order to continue receiving improper reimbursements.
On March 7, 2019, a federal grand jury indicted Huang with six counts of health care fraud, in violation of 18 U.S.C. § 1347, and one count of false statement relating to health care matters, in violation of 18 U.S.C. § 1035(a)(2). Huang pleaded guilty to all seven counts.
Pursuant to the terms of his plea agreement, Huang has agreed to pay restitution in an amount to be set by the court at the time of sentencing, but in no event less than $807,785.38. Judge Illston scheduled the sentencing hearing for March 13, 2020. In addition to restitution, the defendant faces a maximum statutory sentence of 10 years in prison and $250,000 for each violation of 18 U.S.C. § 1347. Further, the defendant faces up to five years in prison and a fine of $250,000 for the violation of 18 U.S.C. § 1035(a)(2). The court also may order additional fines and additional periods of supervised release at sentencing. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Lina Peng and Ross Weingarten are prosecuting the case with the assistance of Marina Ponomarchuk and Lenora Hamilton. This prosecution is the result of investigations by the Office of Personnel Management Office of Inspector General and the Department of Labor Office of Inspector General, with assistance from the San Mateo County District Attorney’s Office Bureau of Investigation.
San Diego, California Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
In San Antonio, 32-year-old Trorice Crawford of San Diego, California, admitted his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, announced U.S. Attorney John F. Bash, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.
Appearing before U.S. Magistrate Judge Richard Farrer yesterday afternoon, Crawford pleaded guilty to one count of conspiracy to launder monetary instruments. By pleading guilty, Crawford admitted that from May 2017 to July 2019, he conspired with Robert Wayne Boling, Jr. (a U.S. citizen), and others to steal money belonging to U.S. Servicemembers and veterans. By pleading guilty, Crawford admitted to recruiting at least 30 individuals (aka “money mules”) who provided their bank account information to receive funds stolen from military affiliated individuals. On average, each unauthorized transfer from a victim’s accounts ranged from between $8,000 to $13,000. Crawford kept a percentage of the withdrawn funds for himself and oversaw the transmission of the remaining amounts by means of international money remittance services to Boling and others in the Philippines.
Crawford faces up to 20 years in federal prison. He remains in federal custody awaiting sentencing scheduled for 10:30am on March 5, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
In October, co-defendant Frederick Brown, age 38 of Las Vegas, NV, pleaded guilty to federal charges in connection with this scheme. Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted that while logged into the Armed Forces Health Longitudinal Technology Application, he illegally captured on his cell phone personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown further admitted that he subsequently provided that stolen data to Boling so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
As asserted in the federal grand jury indictment, Boling, together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
Boling, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas. Brown remains in federal custody awaiting sentencing scheduled for 10:30am on February 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.
Salisbury Man Sentenced to 28 Years in Prison for Production of Child PornographyRead the Press Release
GREENSBORO, N.C. – A man who pleaded guilty to production of child pornography was sentenced to 28 years in prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
JOSHUA DOUGLAS MARTORELLI, 36, of Salisbury, North Carolina, pleaded guilty on August 7, 2019, to one count of production of child pornography and one count of attempted production of child pornography. He was sentenced by Chief United States Chief District Judge Thomas D. Schroeder to 28 years of imprisonment followed by 25 years of supervised release.
MARTORELLI targeted children for sexual exploitation by forming romantic relationships with their mothers. He then cajoled the mothers to exploit their own children for his sexual gratification. In fall 2016, MARTORELLI directed the mother of a young boy to sexually assault the child and send him a picture of the abuse. The mother complied. Messages recovered by investigators revealed that MARTORELLI made many similar requests during the same time period.
This case was investigated by a team of agencies comprised of the Rowan County Sheriff’s Office, North Carolina State Bureau of Investigation, and Homeland Security Investigations (HSI). All are members of the North Carolina Internet Crimes Against Children (ICAC) Task Force.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse, and prosecuted by Assistant United States Attorney Eric L. Iverson. 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.
###
Rock Island Man Sentenced to 15 Years in Prison for Felon in Possession of a FirearmRead the Press Release
ROCK ISLAND, Ill. - U.S. District Judge James E. Shadid today sentenced a Rock Island, Ill., man, Justin Michael Kellett, 36, to 15 years in prison for illegal possession of a firearm by a felon. Kellett was ordered to remain on supervised release for five years following his release from prison. Kellett has remained in the custody of the U.S. Marshals Service since his arrest in April 2019.
On July 21, 2019, Kellett, of Rock Island, Ill., pleaded guilty to being a felon in possession of a firearm.
The case was investigated by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney John K. Mehochko prosecuted the case in cooperation with the Rock Island County State’s Attorney’s Office.
Richmond City Public Schools Teacher Arrested for Child PornographyRead the Press Release
RICHMOND, Va. – A Richmond City Public Schools music teacher made his initial appearance in federal court today on charges of receipt and distribution of images of child sexual abuse.
Kellen Thomas Donelson, 32, of Richmond, was arrested at his home yesterday. Donelson is a music teacher at Oak Grove/Bellemeade Elementary School and an Associate Minister/Music Director at Mount Hope Baptist Church.
According to allegations detailed in the affidavit in support of the criminal complaint, in February and July of 2019, Donelson uploaded multiple images of child pornography via Snapchat and Kik Messenger. Yesterday, during a court-authorized search of his home, law enforcement discovered at least 50 images and videos of child pornography on Donelson’s phone.
Donelson is charged with receipt and distribution of child pornography. If convicted, he faces a mandatory minimum of five years and a maximum penalty of 40 years in prison. 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.
Anyone with information regarding this matter should contact U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at: 1-804-648-0419, extension 223.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jim Stitzel, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement. Assistant U.S. Attorney Kevin Elliker is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-mj-212.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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 Chief Judge Jeffrey L. Viken, U.S. District Court.
Tiffany Island, age 37, was sentenced on November 25, 2019, to 21 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Island, a previously convicted felon prohibited from possessing firearms, knowingly possessing a Fabrique Nationale Herstal, model FN Five-seveN USG, 5.7x28mm FN caliber semi-automatic pistol, which was found at Island’s Rapid City residence after police were called there for a disturbance on August 7, 2018.
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.
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.
Island was immediately turned over to the custody of the U.S. Marshals Service.
Randall Swartz Imprisoned for Agri-Mark TheftRead the Press Release
The United States Attorney for the District of Vermont announced that Randall Swartz, 59, of Orleans, was sentenced yesterday in United States District Court in Rutland to 48 months of imprisonment following his guilty plea to a charge of mail fraud. Chief Judge Geoffrey Crawford also ordered that Swartz serve three years of supervised release following completion of his prison term and pay restitution in the amount of $452,558.
According to the charging information to which Swartz pleaded guilty, until January 2017 when he was fired, Swartz was employed as the maintenance manager at Agri-Mark’s cheese-making plant in Cabot. As maintenance manager, Swartz was responsible for maintaining, repairing and replacing all machinery and equipment at the Cabot site. The maintenance budget amounted to several hundred thousand dollars each month. Swartz also owned a side-business, Kingdom RO, which sold reverse osmosis systems that were used by producers of maple syrup to concentrate and purify maple sap. Agri-Mark also employed reverse osmosis technology at its Cabot facility.
The information charged that beginning no later than 2010 and continuing up to the time of his termination, Swartz defrauded Agri-Mark by causing the company to order reverse osmosis equipment that was too small for Agri-Mark to use in its cheese-making processes. Instead, Swartz stole the equipment and installed it in smaller RO systems he sold to clients of Kingdom RO. Swartz further defrauded Agri-Mark by using company employees, on company time, to assemble and install these RO systems.
At yesterday’s sentencing hearing, Judge Crawford found that Swartz caused a loss to Agri-Mark of not less than $452,558. The Government had contended the loss actually was about $1.2 million.
The sentence imposed by Judge Crawford represented a significant upward variance above the range called for by federal sentencing guidelines. Swartz is currently in the custody of the Vermont Department of Corrections, where he has been held without bail since May 2018 while awaiting trial for murdering his wife. In his sentence today, Judge Crawford ordered that Swartz’ federal sentence run concurrently with any sentence that may be imposed on the homicide charge.
This case was investigated by the Vermont State Police, the Federal Bureau of Investigation and the U.S. Department of Homeland Security Investigations.
Swartz is represented by Richard Goldsborough. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Piedmont Man Sentenced to 7 Years in Prison for Threatening Communications and Repeated Telephone CallsRead the Press Release
United States Attorney Ron Parsons announced that a Piedmont, South Dakota, man convicted of Threatening Communications and Repeated Telephone Calls was sentenced on November 26, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Larry Wenthold, age 40, was sentenced to 7 years in federal prison, followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Wenthold, who was living in Minnesota at the time, sending repeated texts and telephone calls to a female, and her mother and sister, in South Dakota. In the communications, the defendant repeatedly threatened their lives and put them in fear of death or serious bodily injury.
“You’d better think twice before you stalk, harass, or threaten someone with violence,” said U.S. Attorney Parsons.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Wenthold was immediately remanded to the custody of the U.S. Marshals Service.
Philadelphia Man Who Sold Fentanyl That Killed Newark Man Sentenced to Twenty Years in PrisonRead the Press Release
WILMINGTON, Del. – A Philadelphia man was sentenced yesterday to 20 years in prison for distributing fentanyl that caused the death of Joel Davis, a 29-year-old Newark man.
According to court documents, Emanuel Jimenez, who is a citizen of the Dominican Republic but was living in the United States under the false identity of “Robin Cintron-Pratts,” was a large-scale heroin dealer. For several months in 2016-2017, he delivered 13,000 baggies of heroin per week to James Briggs of Wilmington. In February 2017, the defendant delivered fentanyl-laced heroin to Briggs, who sold some of those drugs to Abdoulaye Diallo, who then sold several baggies to one of Joel Davis’s friends. The friend gave four of the baggies to Joel Davis, who used them and then died as a result of fentanyl intoxication. Diallo and Briggs were separately charged. Briggs was sentenced on September 9, 2019 to ten years incarceration; Diallo was convicted and is pending sentencing.
When the defendant heard that someone had overdosed from his drugs, he explained to a customer: “You know what happens? People, they do it… they didn’t feel it like that quick, so they think the shit not good so they do it over and over. And like 20 minutes later… oh shit” “This shit happened like a couple times with me.”
According to United States Attorney David C. Weiss, “Since the introduction of fentanyl, selling heroin is like playing Russian roulette with others’ lives. As the defendant well knew, people are dying every day using the product he was selling. Today’s sentence sends an important message to heroin dealers: making a quick profit is simply not worth the prospect of spending decades in prison. This case was part of the impetus for the First State Overdose Task Force, and we will continue to aggressively investigate and prosecute people whose drugs are killing Delawareans.”
"Jimenez was a drug-trafficker who distributed thousands of bags of heroin and fentanyl weekly across Wilmington," said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "He was also the source of fentanyl-laced heroin bags that resulted in a fatal overdose. The DEA will continue to work with our law-enforcement partners to aggressively investigate significant drug-traffickers like Jimenez who pose a great threat to the health and safety of the citizens of Delaware."
The U.S. Attorney made the announcement after sentencing by Chief U.S. District Judge Leonard P. Stark. Before imposing sentence, the Court said, “The defendant knew that people were overdosing. It’s not a stretch to say that he knew that overdosing could mean death. And none of that stopped him, nor is there any indication that it bothered him.”
Assistant U.S. Attorney Jennifer K. Welsh prosecuted the case, which was investigated by the Drug Enforcement Agency’s First State Overdose Task Force in partnership with, among others, the New Castle County Police Department.
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. 1:17-cr-0022-1(LPS) and 1:17-cr-0023-1(LPS).
Philadelphia Man Convicted for Third Time on Drug Trafficking ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Vontez Scales, 29, of Philadelphia, PA, was convicted at trial of conspiracy to distribute methamphetamine and heroin, and possession with intent to distribute heroin and fentanyl, arising from his sales and purchases of large quantities of drugs to and from co-conspirators.
Scales was a member of a large drug trafficking group, known as the ”Skipworth” drug trafficking organization, that operated for months in 2018 and distributed millions of dollars worth of crystal methamphetamine, heroin, fentanyl and cocaine in Philadelphia, Bucks County, Berks County and Delaware County. Scales’ co-conspirators, Damir Skipworth, a/k/a “Meech” (who was the ring leader), Jarrett Cobb, a/k/a “Chi,” Tyrone Smith, a/k/a “Ho,” Rahim Amin, a/k/a “Skinny Rah,” John Richard Thornton, Scott Martin, and Natasha Powell all previously pleaded guilty to federal drug trafficking charges in this case and face significant prison terms.
Scales bought crystal methamphetamine in pound quantities from a co-conspirator, with the intention to sell it, and in turn sold large quantities of heroin laced with fentanyl back to the co-conspirator to distribute to other members of the group. Scales used the cash proceeds from his drug dealings largely for car rentals, hotels and luxury clothing, including purchases at Saks Fifth Avenue alone of over $28,000. Scales was previously convicted twice of drug trafficking, each of which resulted in lengthy prison terms.
“Scales and other members of this drug trafficking organization pumped huge quantities of poison into Philadelphia and the surrounding suburbs,” said U.S. Attorney McSwain. “Drug trafficking is an inherently dangerous business and those engaged in it ultimately deliver destruction to our communities. Our Office is determined to protect the communities impacted by drug trafficking by investigating and convicting criminals like Scales and putting them behind bars.”
“Scales, who has two prior convictions for drug offenses, was found guilty of distributing substantial quantities of dangerous illegal street drugs such as methamphetamine, heroin, and fentanyl,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Even after serving lengthy prison terms for his prior convictions, Scales’ greed led to his continued drug trafficking activities and utter disregard for the law and the communities affected by him. Scales now faces a lengthy prison sentence for his drug trafficking.”
“Drugs don’t stop at county borders. This makes collaborative efforts like this one essential,” said Bucks County District Attorney Matthew Weintraub. “We in law enforcement are fortunate to have excellent federal, state, county and local partners in our fight to bring drug dealers to justice. This conviction was the culmination of teamwork at its finest.”
“The investigation, arrest, and successful prosecution of Vontez Scales provides another example of the value of consistent collaboration between law enforcement partner agencies,” said Acting Philadelphia Police Commissioner Christine Coulter. “We anticipate that the conviction and attendant sentencing of Vontez Scales will have an appreciable impact on the quality of life in the neighborhoods in which the recidivist offender operated.”
The case was investigated by the Drug Enforcement Administration, Bucks County Detectives Bureau and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Christopher Parisi and Andrea Foulkes.
Ohio Man Who Came to PA Seeking Sex with Teen Sentenced to 4 Years in Federal PrisonRead the Press Release
PITTSBURGH, PA- A former resident of Vienna, Ohio, has been sentenced in federal court to four years’ (48 months’) imprisonment and seven years’ supervised release on his conviction of traveling with intent to engage in illegal sexual activity with a minor, United States Attorney Scott W. Brady announced today. The defendant was additionally ordered to pay $1,543.89 in restitution and a $5,100.00 special assessment.
United States District Judge Cathy Bissoon imposed the sentence on Jeffery Judd, 60.
According to information presented to the court, in late May 2017, Judd began conversing with a 14-year-old male over the "Chathour" software application and by email. He arranged to meet the child victim in the parking lot of his school on June 1, 2017, and traveled from Vienna, Ohio, to Hermitage, Pennsylvania, to engage in intercourse and oral sex acts with the victim. The victim was frightened by Judd’s arrival at the school, and failed to show at the meet location. He later reported his communications with Judd to school officials. Judd continued to communicate by email with the victim until June 5, 2017.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Hermitage Police Department conducted the investigation leading to the prosecution of Judd. 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.
Nigerian Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Nigerian man pleaded guilty today to trafficking more than 30 kilograms of heroin intended for importation into the United States.
According to court documents, in December 2017, Edwin Anyaoku, 54, sold a kilogram of heroin for $15,000 to a confidential DEA source, with the understanding that the source would smuggle the heroin into the United States where it could be sold at a high profit. Anyaoku told the source that he had a nephew in the United States who could receive drug proceeds, and even offered to fly to the United States himself to bring back the money.
The one-kilogram deal, however, was only a test, and thereafter, Anyaoku started planning to sell the source a much larger load of heroin intended for the United States. In June 2018, Anyaoku arranged to sell the source a total of 29 kilograms of heroin, two of which were Anyaoku’s own personal investment, at a price of $14,000 per kilogram. Anyaoku expected to net a personal profit of thousands of dollars from the sale. In June 2018, Anyaoku and two accomplices showed up at a hotel in Johannesburg, South Africa, with all 29 kilograms of heroin in luggage. Anyaoku was arrested and later extradited to the United States from South Africa in June 2019.
Anyaoku pleaded guilty to one count of conspiracy to distribute, and distribution of one kilogram or more of heroin. He faces a mandatory minimum penalty of 10 years in prison when sentenced on March 20, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-270.
New Orleans Tax Preparer Pleads Guilty to Filing False IRS ReturnRead the Press Release
NEW ORLEANS – DANIELLE FRANKLIN, age 28, and a resident of New Orleans, Louisiana, pleaded guilty on December 5, 2019 to one count of assisting in the preparation of a fraudulent tax return before United States District Court Judge Eldon E. Fallon, announced U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As charged in the indictment, FRANKLIN prepared a false tax return in 2014 for a client of Cutting Edge Income Tax, located on Airline Drive in Metairie, Louisiana. As part of the scheme, FRANKLIN allegedly falsified the return by including fraudulent business losses when in fact the customer had zero losses and expenses.
Sentencing will be on March 5, 2020. At that time, FRANKLIN faces a maximum sentence of three years, one year of supervised release, and a $100,000 fine for aiding and assisting in the preparation of a fraudulent tax return.
U.S. Attorney Strasser commended the special agents of IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
New Orleans Resident Sentenced for Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS – JACOB BANKS, age 29, a resident of New Orleans, was sentenced on December 5, 2019 by United States District Judge Mary Ann Vial Lemmon on one count of being a felon in possession of a firearm, in violation of the Federal Gun Control Act, announced U.S. Attorney Peter G. Strasser.
BANKS had previously admitted to possessing a Ruger, LCP, 9 mm caliber semi-automatic pistol in the French Quarter. New Orleans Police Department Officers had observed BANKS and another man smoking marijuana and approached them. BANKS fled, discarding the pistol he was carrying in a dumpster as he ran down the block. The officers apprehended BANKS and then found the pistol in the dumpster.
Judge Lemmon sentenced BANKS to 33 months in the custody of the U.S. Bureau of Prisons, to be followed by three years of supervised release after his term of imprisonment. Judge Lemmon also ordered BANKS to pay a special assessment of $100 and ordered that the gun he had possessed be forfeited to the United States.
This case was investigated by the New Orleans Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney David Haller.
Nevada Man Arrested in Yuba County Charged with Illegal Firearms PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment Thursday against Darrel Kieth Higginbotham, 53, of Fernley, Nevada, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 28, Yuba County Sheriff deputies responded to a report of a prowler attempting to enter a home in Olivehurst. When deputies arrived, they found Higginbotham near the home. A pat-down of Higginbotham revealed a .45-caliber handgun in his jacket pocket that was cocked with the hammer back and loaded with one round in the chamber and seven in the magazine.
Higginbotham had been convicted previously of violent felonies and had a domestic violence restraining order against him. The convictions and the restraining order prohibit his possession of firearms under federal law.
In addition to the handgun, Higginbotham had 10 firearms, including two short-barreled AR-15 rifles, a shotgun, and multiple handguns in his truck. All of the firearms were loaded or had loaded ammunition magazines nearby.
The following day, March 1, after Higginbotham was released on bail, he visited a storage facility. After securing a search warrant, deputies searched Higginbotham’s unit and found 15 additional firearms, including another AR-15 rifle, three shotguns, and multiple handguns. Again, deputies found most of the firearms loaded.
This case is the product of an investigation by the Federal Bureau of Investigation and the Yuba County Sheriff’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Higginbotham faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Mountlake Terrace, Washington, man sentenced to ten years in prison for possessing and distributing images of child rapeRead the Press Release
Seattle – A Mountlake Terrace, Washington, man was sentenced today in U.S District Court in Seattle to 10 years in prison and 20 years of supervised release for possession and distribution of child pornography. CHRISTOPHER LEE WOOD, age 41, pleaded guilty July 15, 2019, about a year after law enforcement served a search warrant on his home. A Seattle Police detective working with the Internet Crimes Against Children Task Force had identified WOOD as the person using file sharing software to distribute images of child rape. At the sentencing hearing, U.S. District Judge Richard A. Jones noted that every time WOOD sent an image out, someone else is looking at it and multiplying the damage to the child in the image.
According to records filed in the case, WOOD was using peer-to-peer file sharing software to distribute and trade images of child sexual abuse. When law enforcement seized his electronic devices, they found 42 images and 69 video files showing minors engaged in sexually explicit conduct. Investigators also found seven images of a young child in lascivious poses. The images had not been distributed, and WOOD had deleted them from his computer. The images of a young child known to WOOD were a critical reason for the ten-year sentence.
The case was investigated by the Seattle Police led Internet Crimes Against Children Task Force and Homeland Security Investigations (HSI).
The case was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Monroeville Felon Sentenced to 12½ Years in Prison for Distributing Deadly Drug and Illegally Possessing a PistolRead the Press Release
PITTSBURGH – An Allegheny County man has been sentenced in federal court to 12 years and seven months (151 months) in prison on his conviction of distribution of fentanyl and possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence yesterday on Ryan Williams, 31, of Monroeville, Pennsylvania.
According to information presented to the court, on or about November 23, 2016, Williams distributed a quantity of fentanyl to an individual who later used the fentanyl and died from an overdose. Additionally, on December 1, 2016, law enforcement executed a search warrant at Williams’ residence and found him to be in possession of a Glock .40 caliber pistol. Given his prior felony convictions, Williams is not permitted to possess a firearm.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Monroeville Police Department and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Williams.
Methamphetamine Trafficker Sentenced to over 11 Years in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Daniel F. Humphrey, age 43, of Spokane, Washington was sentenced after having pleaded guilty on September 3, 2019, to distribution of 50 grams or more of methamphetamine. Chief United States District Judge Thomas O. Rice sentenced Humphrey to a 140-month (11.6 years) term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Humphrey sold over 200 grams of methamphetamine during a “controlled buy” conducted by members of the Federal Bureau of Investigation (FBI) Spokane Regional Safe Streets Task Force. Investigators also executed a warrant to search Humphrey’s residence and travel trailer, which resulted in the seizure and forfeiture of over $380,000 in U.S. currency.
United States Attorney Hyslop said, “The sentence imposed reflects the serious consequences drug traffickers face for trying to bring illicit drugs into our communities. The United States Attorney’s Office for the Eastern District of Washington and our federal, state, local and tribal law enforcement partners remain vigilant in protecting the community from drug traffickers.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation, Spokane Regional Safe Streets Task Force and Spokane Police Department. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Meridian Man Sentenced to over 13 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Meridian, Miss. – Diamonte Deron Scott, 27, of Meridian, was sentenced today by U.S. District Carlton W. Reeves to 160 months in federal prison, followed by 5 years of supervised release, for distributing and illegally possessing methamphetamine, announced U.S. Attorney Mike Hurst and Brad Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA).
On September 1, 2016, Scott sold methamphetamine to an individual in Meridian for $3,600. A DEA laboratory confirmed the methamphetamine to be approximately 107 grams with 97% purity.
Scott pled guilty before Judge Reeves on September 6, 2019, to distributing 50 grams or more of actual methamphetamine, a Schedule II controlled substance.
This case is the result of an investigation by the Drug Enforcement Administration and East Mississippi Drug Task Force. It was prosecuted by Assistant U.S. Attorney Keesha Middleton.
Meeting Scheduled for Victims of Man Who Stole from Charity Founded to Help Veterans and Military FamiliesRead the Press Release
On August 28, 2019, KEVIN E. CREED, of Litchfield, waived his right to be indicted and pleaded guilty in New Haven federal court to wire fraud related to a scheme in which he stole approximately $1.4 million from the Friends of Fisher House Connecticut, a charity he established with the purported purpose to raise funds to support the building and maintenance of a veterans comfort home in West Haven.
On November 15, 2019, U.S. District Judge Janet C. Hall issued a ruling establishing that:
- Friends of Fisher House Connecticut is a victim of Creed’s fraudulent scheme, as defined under the Crime Victims’ Rights Act.
- Any individual or entity targeted through direct solicitations that relied on false representations by Creed, to include person-to-person contact, online media, or fundraisers planned by Creed or his staff for the benefit of Friends of Fisher House Connecticut, is a victim under the Crime Victims’ Rights Act.
- Individuals who participated in an event coordinated by another organization or individual, such as runners in charity races, are not considered to be victims under the statute, because that individual was not directly or proximately harmed by Creed’s fraudulent scheme.
- Fisher House National and the veterans who may have benefited in the future from the pilfered funds are not statutory considered victims of Creed’s wire fraud.
All victims who donated to the Friends of Fisher House Connecticut have a right to be heard at any proceeding regarding the plea and also have the reasonable right to confer with the government regarding the plea. Representatives of the U.S. Attorney’s Office and the Assistant U.S. Attorney assigned to this matter are available for such conference in person, by telephone or by e-mail.The U.S. Attorney’s Office has scheduled a meeting with any interested victims to be held on December 11, 2019, at 10 a.m., in the Jury Assembly Room located in the U.S. District Court, 141 Church Street, in New Haven. Identified victims of this fraud scheme, as well as individuals who believe they are victims of this fraud scheme and have not been previously contacted by the U.S. Attorney’s Office, are encouraged to attend. Please RSVP to Ines Cenatiempo at [email protected] or by phone at 203-821-3757.
For victims who are unable to attend the meeting in person, a conference call line will be available:
Conference Call Dial-in Number: 888-995-9851
Passcode: 3406517In order to accommodate the many victims in this case, the conference call with be “listen-only,” and all phone participants will be muted. Victims with follow-up questions or concerns will be encouraged to contact the U.S. Attorney’s Office by e-mail or phone after the call.
McLaughlin Man Sentenced to 20 Months for BurglaryRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man was sentenced for Third Degree Burglary and Aiding and Abetting.
Lyle Daniel Mousseau, age 42, was sentenced on December 4, 2019, by U.S. District Judge Charles B. Kornmann to 20 months in federal prison, followed by 3 years of supervised release, and ordered to pay $6,324.93 in restitution to the victim, and $100 to the Federal Crime Victims Fund.
According to court documents, on or about July 11, 2018, Lyle Daniel Mousseau and Alexander Guy Jones unlawfully entered and remained in an unoccupied structure in McLaughlin, with intent to commit the crime of larceny. Jones was convicted earlier this year and received a sentence of 11 months of custody.
The investigation was conducted by the Bureau of Indian Affairs – Office of Justice Programs. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted both cases.
Mousseau was remanded to the custody of the U.S. Marshals Service.
Man Sentenced to 13 Months for Failing to Update his Sex Offender RegistrationRead the Press Release
ALBANY, NEW YORK – Jovan Robinson, age 38, was sentenced on December 4 to 13 months in prison for failing to update his sex offender registration.
The announcement was made by United States Attorney Grant C. Jaquith and David L. McNulty, United States Marshal for the Northern District of New York.
Robinson was convicted of violating the federal Sex Offender Registration and Notification Act (“SORNA”), which requires a sex offender to register, and keep that registration current, wherever he or she resides. As part of his guilty plea, Robinson admitted that he was convicted of sexual abuse in the third degree in Oregon, which required him to register as a sex offender. Robinson further admitted that he moved from Massachusetts to Albany, and lived in Albany from March 4, 2018 until his arrest on March 9, 2018 without ever registering in New York or updating his registration in Oregon.
This case was investigated by the United States Marshals Service Sex Offender Investigation Branch, the Albany Police Department, and the Albany County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Alicia G. Suarez.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Man Arrested in Vallejo Charged with Unlawful Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Reginald Smith, 39, charging him with possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense, U.S. Attorney McGregor W. Scott announced.
This case is the product of an investigation by the Vallejo Police Department and the Solano County District Attorney’s Office. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted of the possession with intent to distribute methamphetamine offense, Smith faces a mandatory minimum of five years in prison and a maximum statutory penalty of 40 years in prison and a fine of up to $5 million. If convicted of possession of a firearm in furtherance of drug trafficking charge, he faces a mandatory minimum of five years in prison and a maximum sentence of life in prison and up to a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Lummi woman sentenced to three years in prison for gun and drug crimesRead the Press Release
Seattle – A 30-year-old member of the Lummi Nation was sentenced today in U.S. District Court in Seattle to three years in prison and three years of supervised release for being a felon in possession of a firearm and distribution of methamphetamine. AMBER DAWN MENDOZA, aka AMBER DAWN REDSTONE, aka AMBER DAWN MENDOZA-REDSTONE, aka CRYSTAL CARTER, aka JASMINE GARCIA, pleaded guilty June 27, 2019. At the sentencing hearing, U.S. District Judge Richard A. Jones told her that the Court has a low tolerance for people selling drugs in tribal communities and noted that people are dying taking these drugs.
According to records filed in the case, law enforcement made two different undercover buys of heroin and methamphetamine from MENDOZA. The heroin she sold also contained traces of fentanyl. When the Tulalip Tribal Police served a search warrant at MENDOZA’s home they found a Remington 870 shotgun and a .22 Smith and Wesson pistol under pillows on her bed. The shotgun had been reported stolen. Also in the home police found cocaine, ammunition, drug paraphernalia and cash. They found some of the marked bills used in the undercover drug buys.
MENDOZA is prohibited from possessing firearms due to five previous state court felony convictions for drug possession.
The case was investigated by the Tulalip Police Department and the FBI. The case is being prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office.
Los Angeles Man Sentenced to 27 Years in Prison for Scheme to Defraud American Express and Account Holders NationwideRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Ruslan Kirilyuk, 41, of Beverly Hills, to 27 years in prison for his involvement in an international credit card fraud scheme targeting card holders nationwide, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, between October 5, 2011, and March 5, 2014, Kirilyuk conspired with Mihran Melkonyan, 39, of Sacramento; Rouslan Akhmerov, 45, of Studio City; Alexandr Maslov, 38, of Sacramento, and others in a credit card billing scheme that involved creating approximately 71 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.
As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District in Sacramento. Those report cards had students’ personal identifying information on them such as names and social security numbers. Using that information, Kirilyuk and his associates created fraudulent companies with names designed to sound like real companies, such as “CVS Store,” “Walt Mart,” and “Chevran.”
Working with a hacker based in Moscow, they used those fraudulent companies to charge stolen American Express credit card account numbers. In order to transfer the stolen money, they used shell bank accounts held in the names of individuals whose identities had been stolen and former Russian J-1 visa holders. According to court documents, Kirilyuk has a history of corporate cyberintrusion dating back to at least 2003.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael D. Anderson prosecuted the case.
In an earlier trial, on February 15, 2017, Melkonyan was found guilty of all 24 counts of wire fraud and two counts of mail fraud charged against him related to the scheme. He was sentenced on January 4, 2019, to 19 years and two months in prison.
On December 15, 2014, Akhmerov pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on December 13, 2019.
Maslov is pending trial with a status conference scheduled for January 31, 2020. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lewisboro Town Justice Pleads Guilty to Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that MARC A. SEEDORF pled guilty today to tax evasion before U.S. District Judge Cathy Seibel in White Plains federal court.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, for years Marc Seedorf flouted his obligations under the law to file tax returns and to pay taxes. This was conduct that would be shameful for anyone, and all the more so from an attorney and a member of the judiciary. Now Seedorf awaits sentencing for his crime.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “As a Lewisboro Town Justice, Mr. Seedorf knows the consequences when laws are broken. To maintain faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share. IRS-CI, together with the Department of Justice, will investigate and prosecute those who break this country’s tax laws.”
According to the allegations contained in the Information:
During the relevant time period of 2009 through October 2019, SEEDORF was a Town Justice for the Town of Lewisboro, New York. SEEDORF also received income from the private practice of law.
SEEDORF did not file U.S. Individual Income Tax Returns for the tax years 2005 through 2015, despite being required to do so. As a result of the income SEEDORF earned from 2005 through 2008, he incurred a federal income tax liability of approximately $323,000, including interest and penalties (“SEEDORF’s 2005 Through 2008 Tax Liability”). As a result of the income SEEDORF earned from 2009 through 2013, he incurred a federal income tax liability of approximately $164,000, including interest and penalties (“SEEDORF’s 2009 Through 2013 Tax Liability”).
In early August 2012, SEEDORF received $1,524,116 in connection with the settlement of a civil lawsuit. At SEEDORF’s request, the law firm that represented SEEDORF in the lawsuit (“Law Firm-1”) deposited the settlement proceeds into its attorney trust account, to be disbursed to SEEDORF at an unspecified later date. In the following years, SEEDORF instructed Law Firm-1 to disburse portions of the settlement proceeds to accounts other than his personal bank account, including his law firm’s operating account, his law firm’s attorney trust account, and his brother-in-law’s personal account, in order to disguise the source of funds he used to make payments to the IRS and other creditors, and the existence of the remainder of the settlement proceeds.
From January 2010 through June 2013, the IRS attempted to collect SEEDORF’s 2005 Through 2008 Tax Liability, including by mailing letters to SEEDORF and requesting documents and records from SEEDORF. SEEDORF failed to provide any records to the IRS or make any payment toward SEEDORF’s 2005 Through 2008 Tax Liability.
In June 2013, after the IRS initiated a process to place a levy upon an investment account held by SEEDORF, he instructed Law Firm-1 to wire $400,000 of the settlement proceeds to his own law firm’s attorney trust account, from which he then paid his outstanding 2005 Through 2008 Tax Liability. During a conversation with an IRS Revenue Officer concerning the source of these funds, SEEDORF falsely stated that he had borrowed the funds from his own law firm’s trust account.
During a December 2014 IRS interview, an IRS Revenue Agent asked SEEDORF whether he had received any non-taxable income during the period from 2009 through 2013. During the interview, SEEDORF never disclosed the 2012 law suit settlement or the existence of the more than $540,000 of settlement proceeds that remained in Law Firm-1’s attorney trust account at that time.
SEEDORF pled guilty to one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
SEEDORF is scheduled to be sentenced by Judge Seibel on March 24, 2020, at 2:30 p.m.
Mr. Berman praised the investigative work of the IRS-CI.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Jeffrey C. Coffman is in charge of the prosecution.
Lebanon Woman Sentenced to 21 Months in Federal Prison for Perpetrating Elder Fraud Scheme Against Former EmployerRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Annie Fields, 54, Lebanon, Indiana, was sentenced in federal court, by U.S. District Judge Tanya Walton Pratt, to 21 months in federal prison, after being charged by information and pleading guilty to charges of wire fraud.
"Fields abused her position with M&M, took advantage of her elderly employers, and violated their trust," said Minkler. "The U.S. Attorney’s Office is committed to prosecuting those individuals who perpetrate elder fraud schemes against vulnerable and elderly victims."
Annie Fields was employed by M&M, Inc., (M&M), an automotive services business located in Zionsville, Boone County, Indiana. Fields’ duties included bookkeeping and clerical responsibilities. The owners of M&M are elderly and were vulnerable to being victimized and exploited, by people like fields. They hired Fields for her experience in accounting and they entrusted Fields to manage M&M’s books. Fields had access to M&M’s business account and business MasterCard. Fields was not authorized to use the checking account or credit card account for personal reasons.
On several occasions, between September 2012 and December 2014, Fields wrote unauthorized checks payable to herself, or to her creditors on the M&M bank account. In creating the fraudulent checks, Fields also prepared a false copy of these checks, which contained a different payee, and appeared to be an authorized business payee for M&M. Fields made the false copies available to M&M officials.
Between October 9, 2012 and July 3, 2014, Fields, on many occasions, used the M&M credit card account for unauthorized personal expenses. In order to hide these transactions from M&M officials, Fields prepared altered credit card statements, which omitted her unauthorized transactions, and made only these false versions of the statements available to M&M officials. Fields’ fraudulent schemes resulted in a loss of $36,895 to M&M.
This case was investigated by the Federal Bureau of Investigation.
"When the elderly are defrauded, this can cause a significant financial hardship and these losses can be devastating to them," said Acting Special Agent in Charge Alex Middleton, FBI Indianapolis. "Today’s sentence sends a clear message – the FBI will hold perpetrators of elder fraud schemes accountable and ensure our elderly citizens receive the protection they deserve."
According to Assistant U.S. Attorney James M. Warden, who prosecuted this case for the government, Fields will serve two years’ supervised release following her prison sentence. Fields will pay full restitution to the victims in the amount of $36,895.00, as ordered by the court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those individuals who engage in complex and sophisticated fraud schemes, particularly those that exploit vulnerable victims, and abuse positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1.
Leader of a Violent Mexican Drug Trafficking Organization Charged with International Drug Importation Conspiracy and Weapons UseRead the Press Release
Fausto Isidro Meza-Flores, also known as “Chapo Isidro,” has been charged in a superseding indictment with a conspiracy to distribute cocaine, methamphetamine, heroin and marijuana for importation into the United States. Meza-Flores, a Mexican national who is believed to currently reside in Mexico, is the leader of the Meza-Flores Transnational Criminal Organization (TCO), a major drug trafficking organization based in Sinaloa, Mexico.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Fausto Isidro Meza-Flores, 37, is charged in a two-count indictment returned Nov. 26, 2019, alleging that from in or around January 2005, through November 2019, he conspired to distribute cocaine, methamphetamine, heroin, and marijuana from Mexico and elsewhere for importation into the United States. Further, Meza-Flores is alleged to have used and carried a machinegun and destructive device during, and in relation to, his drug trafficking crimes.
As part of continuing efforts to disrupt and dismantle the operations of the drug trafficking organizations, the FBI Washington Field Office, in partnership with the U.S. Department of State’s Narcotics Rewards Program, has issued a reward of up to $5 million for information leading directly to the arrest and/or conviction of Meza-Flores. Individuals with information about Meza-Flores or the Meza-Flores TCO should contact the FBI at 1-800-CALL-FBI (1-800-225-5324), contact the nearest U.S. Embassy or Consulate, or submit a tip online at tips.fbi.gov. Tips can remain confidential.
The case is being investigated by the FBI Washington Field Office. This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle, and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Jason Ruiz and Anthony Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) are prosecuting the case.
Lead Defendant in DFW Airport Drug-Smuggling Ring Sentenced to 16+ YearsRead the Press Release
The lead defendant in a drug-smuggling ring that attempted to traffic methamphetamine through the Dallas Fort Worth International Airport was sentenced this afternoon to 16 years and 8 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Nelson Pabon, 48, pleaded guilty in March to conspiracy to possess with intent to distribute a controlled substance.
In plea papers, Mr. Pabon – a former airline supervisory crew chief from Friendswood, Texas– admitted that he worked with several individuals to circumvent security at DFW Airport in order to load purported drugs onto commercial flights.
Mr. Pabon told undercover agents that because he received advance notice of narcotic canine baggage sweeps, he was well-positioned to sneak drugs onto cross-country jets in return for cash.
On at least six occasions between August 2016 and May 2018, Mr. Pabon and his coconspirators smuggled purported crystal meth – in actuality a dummy substance provided by undercover agents – onto commercial flights to Newark, New Jersey, he admitted.
Other members of the conspiracy smuggle purported crystal methamphetamine onto commercial flights to Charlotte, North Carolina, and Phoenix, Arizona.
Mr. Pabon further acknowledged he even contemplated smuggling inert explosives, which he was told would not combust en route, and told others, including Michael Alexis Rivera Vasquez and Jean Loui Vargas Malave, that they would get paid more for smuggling the explosives.
“These defendants attempted to subvert the security systems that keep Americans safe in the skies,” said U.S. Attorney Nealy Cox. “Airport and airline workers cannot be allowed to leverage their positions of trust and profit off transporting deadly substances. We must all be insist that every precaution is taken to prevent security breaches of this type. ”
“The defendants exploited their employee access for personal gain and jeopardized the safety of airline travelers. The FBI would like to thank our local and federal partners for working with us to dismantle this criminal enterprise,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office. “Our citizens expect all airports to be safe and secure. We will remain vigilant and investigate anyone who attempts to compromise aviation security.”
Mr. Pabon is one of 12 coconspirators indicted in two cases involving bypassing airport security to smuggle contraband onto commercial airline flights at DFW. Two co-defendants, Benitez Matienzo, a 46 -year-old baggage handler, and Michael Alexis Riviera Vasquez, a 22-year-old baggage handler, were sentenced today to 45 months and 48 months, respectively.
Camacho Melendez, 23, was sentenced Thursday to 97 months in federal prison; Cristian David Cruz-Rodriguez, 24, was sentenced in October to 65 months; Joshua Israel Pagan Zapata, 22, was sentenced in October to 63 months; Domingo Villafane Martinez, 32, was sentenced in August to 27 months; Jose Luis Gaston-Rolon, 25, was sentenced in August to 87 months; Luis Javier Collazo Rosado, 23, was sentenced in July to 30 months; and Kiir Akan Carson, 26, was sentenced in June to 12 months, 1 day, all for conspiracy to possess with intent to distribute a controlled substance.
Jean Loui Vargas Malave* is the only remaining captured defendant pending sentencing. He is set to be sentenced on January 23, 2020.
The law enforcement operation was led by the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorneys George Leal, John de la Garza, and John Kull are prosecuting the cases.
---
*UPDATE, 2/3/2020: Co-defendant Jean Loui Vargas Malave, 23, was sentenced on January 31, 2020 to 10 years in federal prison for conspiracy to possess with intent to distribute methemphetamine.