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Wednesday 2 October 2019
Two Former Jacksonville City Council Members Convicted of Fraud and Money LaunderingRead the Press Release
Jacksonville, Florida – A federal jury today found Katrina Brown (39, Jacksonville) and Reginald Brown (57, Jacksonville) guilty of conspiracy to commit mail and wire fraud, aiding and abetting mail and wire fraud, and aiding and abetting money laundering. The jury also found Katrina Brown guilty of attempted bank fraud and making false statements to a federally insured financial institution, and Reginald Brown guilty of failure to file an income tax return with the Internal Revenue Service for tax year 2014. Each bank fraud or false statement offense carries a maximum penalty of 30 years in federal prison. Each conspiracy and aiding and abetting mail and wire fraud charge carries a maximum penalty of 20 years’ imprisonment. The money laundering offense carries a maximum sentence of 10 years in federal prison, and the income tax charge carries a penalty of up to a year in prison.
Sentencings are scheduled for January 27, 2020. At sentencing, the United States intends to seek forfeiture from the defendants of at least $754,613.10, which is alleged to be traceable to the offenses.
According to the evidence presented at trial, in late 2013, Katrina Brown was the principal for two businesses (Basic Products, LLC and CoWealth, LLC), which in 2011 obtained a loan in the amount of $2,652,000 from the Small Business Administration (SBA), and a loan of $380,000, and a grant of approximately $260,000 from the City of Jacksonville (COJ), to fund a small business that specialized in the manufacturing, bottling, and selling of barbecue sauce. As a member of the Jacksonville City Council, Reginald Brown was knowledgeable of City Ordinance 2011-290-E, which authorized the COJ loan and grant – proceeds of which he and Katrina Brown would later obtain by fraud.
Katrina Brown’s family had been in the barbecue business in Jacksonville for many years. The $3.2 million in financing was intended to fund an expansion of Basic Products and help create permanent manufacturing jobs in Northwest Jacksonville. Each time Katrina Brown sought money for Basic Products from BizCapital, the SBA-approved lender, she submitted a Loan Reimbursement Form that included the purported business expenses for which Basic Products sought reimbursement.
In late 2013, when the barbecue business was not meeting financial projections, Katrina Brown assisted Jacksonville City Councilman Reginald Brown in incorporating two businesses (A Plus Training and Consultants, LLC and RB Packaging, LLC) with the Florida Division of Corporations. A Plus Training and RB Packaging, however, never performed any legitimate business. Instead of properly notifying BizCapital that Basic Products was in financial distress, Katrina Brown worked with Reginald Brown to submit fake invoices from A Plus Training and RB Packaging to the SBA lender, BizCapital, claiming that the businesses performed work for Basic Products, when they businesses did not.
BizCapital sent checks, at times larger than $60,000, to RB Packaging and A Plus Training, which, on paper, were headquartered at Reginald Brown’s home and his mother’s home, respectively. Reginald Brown deposited those checks into the bank accounts for A Plus Training and RB Packaging, then withdrew a significant portion of the money and provided it to Katrina Brown, who either kept the cash or laundered the money by depositing it back into the Basic Products bank account so that she could control the funds. During this time, from late 2013 to early 2015, Reginald Brown, A Plus Training, and RB Packaging served as a conduit to receive $264,419.04 in proceeds from the SBA loan and the COJ grant, then funneled at least $166,500 back to Basic Products. Reginald Brown kept money not provided to Katrina Brown, despite performing no legitimate work or services for Basic Products, and used the majority of the money for personal expenses. Reginald Brown never filed a tax return for tax year 2014, the period of these primary occurrences, and failed to disclose to the IRS that he had received tens of thousands of dollars from the SBA.
In December 2014, BizCapital sent all loan draw information to the City of Jacksonville, which included the numerous fraudulent A Plus Training and RB Packaging invoices. The loan draw information, including the fraudulently induced payments to A Plus Training and RB Packaging, was relied upon by the COJ before it wired $210,549.99 in taxpayer-funded grant money to BizCapital for the intended use of Basic Products. Before the money was sent to BizCapital, neither Katrina Brown nor Reginald Brown informed BizCapital or the city that Basic Products had fraudulently obtained loan payments to Reginald Brown’s shell companies (A Plus Training and RB Packaging).
After BizCapital informed Katrina Brown that the SBA loan was in default status in January 2015, she then attempted to obtain two bank loans in 2015 and 2016 by submitting doctored and false bank statements to loan brokers, seeking loans from WebBank to infuse cash into her and her family’s businesses. Instead of providing the actual bank statements of the businesses, Katrina Brown falsified the businesses’ bank statements in an attempt to make it appear to the lender that the businesses were credit worthy, when in fact they were not.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Tysen Duva and Michael J. Coolican.
Three Years of Illegally Buying and Possessing 28 Guns Leads to over Three Years in Federal Prison for Drug UserRead the Press Release
A user of meth and marijuana who illegally purchased and possessed 28 guns between August 2015 and August 2018 was sentenced October 1, 2019, to more than three years in federal prison.
Nathan Fisher, age 26, from Cedar Rapids, Iowa, received the prison term after an April 12, 2019, guilty plea to being an unlawful user of drugs in possession of a firearm.
At the guilty plea, Fisher admitted he purchased a handgun on August 3, 2018. He further admitted that at the time he bought and possessed this gun, he was an unlawful user of both methamphetamine and marijuana.
Further information at sentencing showed that the gun Fisher purchased on August 3, 2018, was the 28th gun he had purchased since August 2015. During this three-year period, Fisher was regularly using both meth and marijuana. Each time Fisher purchased a gun, he filled out a form. On that form, he lied each time, telling the seller of the guns that he was not an unlawful user of drugs.
Additionally, Fisher purchased at least six guns for other people, a practice commonly referred to as “straw purchasing.” Each time he did so, Fisher also lied on the form he had to complete, indicating he was the ultimate purchaser of the gun. Of the 28 guns Fisher purchased, nine have been recovered. Eight of those nine were found by law enforcement in the possession of someone other than Fisher. The whereabouts of the remaining 19 guns Fisher purchased are unknown.
Fisher was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. In sentencing Fisher, the Judge noted that Fisher’s crime was very serious. The Judge especially noted that Fisher was likely buying guns to give to others who could not legally purchase or own guns, such as convicted felons. The Judge also noted that Fisher used drugs, possessed ammunition, and failed to comply with numerous Court orders while awaiting trial.
Fisher was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Fisher is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-119.
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Three Kentucky Residents Indicted for $4 Million Warranty Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – A federal grand jury has returned an indictment charging three Kentucky residents with ten counts of fraud and identity theft relating to a scheme to defraud a major car company of more than $4 million, announced United States Attorney Mike Stuart.
According to the indictment, James Pinson, 44, Gary Conn, 56, and, Tammy Newsome, 53, of Kentucky organized and participated in a scheme to misuse a car company’s warranty extension program that offered to repurchase certain trucks for 150% of their value, so long as those trucks were owned by individual customers rather than a dealership. Participants in the scheme bought the trucks at wholesale prices at auction through Pinson’s car dealership, Big Blue Motor Sales of Louisa, Kentucky. They then obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced the car company to repurchase the trucks at 150% of value.
According to the indictment, the indicted defendants ran 350 trucks through the scheme between 2013 and 2015, causing approximately $4.3 million in losses to the car company. Newsome is also charged with aggravated identity theft. Frank Russo, 68, of North Carolina and Kevin Fluharty, 58, of West Virginia have already been indicted for their role in the same scheme.
If convicted, the three defendants face up to 30 years in prison.
“This is the second indictment setting forth very serious allegations of a long-term warranty fraud scheme,” said United States Attorney Mike Stuart. “Five individuals have now been charged in connection with the alleged fraud scheme that resulted in $4 million in losses.”
The United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police, and the West Virginia Office of the Insurance Commissioner conducted the investigation. Assistant United States Attorney Stefan Hasselblad is handling the prosecution.
The indictment can be found here.
Please note: An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Follow us on Twitter: SDWVNews and USAttyStuart
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Third Former Tennessee Correctional Officer Pleads Guilty Following Assault of InmateRead the Press Release
Memphis, TN – Carl Spurlin Jr., 42, pleaded guilty to a federal offense and admitted concealing other correctional officers’ assault of an inmate while Spurlin was serving as a correctional officer with the Tennessee Department of Corrections.
"The Department of Justice will not tolerate this egregious behavior," said Assistant Attorney General Eric Dreiband of the Civil Rights Division. "The Civil Rights Division will vigorously prosecute all those who have violated the civil rights of others."
"Correctional officers must abide by and adhere to the same laws they take an oath to uphold and enforce. Instead of serving and protecting the public, this officer actively participated to conceal the use of physical force by other officers to violate the civil rights of an individual. As a result, he will now be held accountable, vividly illustrating that no one is above the law," said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
"When correctional officers abuse their authority and harm inmates, it not only violates our civil rights laws, it undermines the criminal justice system as a whole," said M.A. Myers, Special Agent in Charge of the Memphis Field Office of the FBI. "This plea should send a clear message that the FBI takes these allegations seriously, and will vigorously investigate these kinds of cases, and those who violate the public's trust will be held accountable."
With his guilty plea, Spurlin admitted that, on February 1, 2019, he and several other correctional officers at the Northwest County Correctional Complex in Tiptonville, Tennessee, entered the cell of R.T., an inmate in the mental health unit. R.T. had been identified as a suicide risk and he was bleeding when the officers entered his cell. After the correctional officers entered the cell, R.T. swung his bloody hand towards the officers nearest him, flinging blood in their direction.
A correctional officer looked in the direction of the surveillance camera in the cell and said, "violate the camera." When Spurlin did not make a move to do so, the officer repeated the command. Spurlin looked at a supervisory officer standing nearby, and when the supervisory officer did not contradict the officer who had spoken, Spurlin covered the camera with his hand. Spurlin then watched three correctional officers repeatedly punch R.T. in the head and body. According to Spurlin, the officers struck R.T. "like a piñata."
While the three officers repeatedly punched R.T., another correctional officer came to the cell with paper towels. The officer handed wet paper towels to Spurlin and he used them to cover the camera. The assault by the officers continued while Spurlin covered the surveillance camera.
With today’s guilty plea, Spurlin admitted that he violated 18 U.S.C. § 4 by knowing of a federal felony, failing to notify authorities of the felony, and taking an affirmative step to conceal the felony. The maximum penalty for this offense is three years of imprisonment. Sentencing is set for January 15, 2020.
In related cases, former Correctional Officer Nathaniel Griffin entered a guilty plea in federal court on August 15, 2019, and former Correctional Officer Tanner Penwell entered a guilty plea in federal court on September 5, 2019. With their guilty pleas, both defendants admitted that they assaulted R.T. on February 1, 2019.
This case is being investigated by the Memphis Division of the FBI with the support of the Tennessee Department of Corrections, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant United States Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
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Third Former Tennessee Correctional Officer Pleads Guilty Following Assault of InmateRead the Press Release
Carl Spurlin Jr., 42, pleaded guilty to a federal offense and admitted concealing other correctional officers’ assault of an inmate while Spurlin was serving as a correctional officer with the Tennessee Department of Corrections.
“The Department of Justice will not tolerate this egregious behavior,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will vigorously prosecute all those who have violated the civil rights of others.”
"Correctional officers must abide by and adhere to the same laws they take an oath to uphold and enforce. Instead of serving and protecting the public, this officer actively participated to conceal the use of physical force by other officers to violate the civil rights of an individual. As a result, he will now be held accountable, vividly illustrating that no one is above the law," said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
“When correctional officers abuse their authority and harm inmates, it not only violates our civil rights laws, it undermines the criminal justice system as a whole,” said M.A. Myers, Special Agent in Charge of the Memphis Field Office of the FBI. “This plea should send a clear message that the FBI takes these allegations seriously, and will vigorously investigate these kinds of cases, and those who violate the public's trust will be held accountable.”
With his guilty plea, Spurlin admitted that, on Feb. 1, 2019, he and several other correctional officers at the Northwest County Correctional Complex in Tiptonville, Tennessee, entered the cell of R.T., an inmate in the mental health unit. R.T. had been identified as a suicide risk and he was bleeding when the officers entered his cell. After the correctional officers entered the cell, R.T. swung his bloody hand towards the officers nearest him, flinging blood in their direction.
A correctional officer looked in the direction of the surveillance camera in the cell and said, “violate the camera.” When Spurlin did not make a move to do so, the officer repeated the command. Spurlin looked at a supervisory officer standing nearby, and when the supervisory officer did not contradict the officer who had spoken, Spurlin covered the camera with his hand. Spurlin then watched three correctional officers repeatedly punch R.T. in the head and body. According to Spurlin, the officers struck R.T. “like a piñata.”
While the three officers repeatedly punched R.T., another correctional officer came to the cell with paper towels. The officer handed wet paper towels to Spurlin and he used them to cover the camera. The assault by the officers continued while Spurlin covered the surveillance camera.
With today’s guilty plea, Spurlin admitted that he violated 18 U.S.C. § 4 by knowing of a federal felony, failing to notify authorities of the felony, and taking an affirmative step to conceal the felony. The maximum penalty for this offense is three years of imprisonment. Sentencing is set for Jan. 15, 2020.
In related cases, former Correctional Officer Nathaniel Griffin entered a guilty plea in federal court on Aug. 15, 2019, and former Correctional Officer Tanner Penwell entered a guilty plea in federal court on Sept. 5, 2019. With their guilty pleas, both defendants admitted that they assaulted R.T. on Feb. 1, 2019.
This case is being investigated by the Memphis Division of the FBI with the support of the Tennessee Department of Corrections, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant United States Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
Texas couple indicted in Georgia for $4 million false invoicing schemeRead the Press Release
ATLANTA – April and James Thompson have been indicted for defrauding an Atlanta timberland investment company out of more than four million dollars.
“The defendants allegedly stole millions of dollars through a false invoicing scheme,” said U.S. Attorney Byung J. “BJay” Pak. “Employees who take advantage of their positions of trust will be prosecuted when they use their positions to engage in fraud schemes such as this.”
“When a person takes advantage of a company by abusing the position they were entrusted to uphold, the FBI must hold them accountable,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “We are committed to protecting companies from employees who are driven by personal greed and not the company’s best interests.”
According to U.S. Attorney Pak, the charges, and other information presented in court: April Thompson worked on behalf of a company named Kingwood Forestry Services (“Kingwood”) that provided services to timber properties in various states. Kingwood was contracted with Forest Investment Associates (“FIA”), an Atlanta-based company that provides timberland investment advisory and management services for institutional timberland investors. At Kingwood, April Thompson managed invoices submitted to FIA and requested payments to contractors.
The indictment alleges that from 2011 through April 2019, April Thompson billed FIA for over $4 million for work that James Thompson had allegedly done on FIA timber properties. However, these invoices were all fraudulent as James Thompson had never been an FIA or Kingwood contractor and never did any work on the timber properties. As a result of these fraudulent invoices, April and James Thompson received over $4 million, which they then used for their own personal benefit.
April Thompson, 41, and James Thompson, 46, both of Maud, Texas were indicted by a federal grand jury in the Northern District of Georgia, on September 25, 2019, and had their initial appearances on October 1, 2019, in the Eastern District of Texas.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tahlequah Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jordan Bradley Brown, age 31, of Tahlequah, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The Indictment alleges that on or about February 27, 2019, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Cherokee County Sheriff’s Office and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Strangulation, assault sends Browning man to prisonRead the Press Release
GREAT FALLS—A judge today sentenced a Browning man who admitted to strangling and assaulting a dating partner in two separate attacks on the Blackfeet Reservation to 51 months in prison and three years of supervised release, U.S Attorney Kurt Alme said.
The defendant, Ralph Kelly Gallineaux, Sr., 42, pleaded guilty in June to strangulation of a dating partner and to assault resulting in substantial bodily injury.
U.S. District Judge Brian M. Morris presided. Judge Morris also ordered $6,817 restitution for the victim’s burned truck.
The prosecution said in court records that Gallineaux strangled the victim, a dating partner, on April 8 after the two had purchased alcohol and had driven to Durham to drink. On the drive back to Browning the two started arguing. During a three-hour period at Gallineaux’s residence, he assaulted, strangled and attempted to smother the victim. The victim told investigators she thought she was going to die and that Gallineaux told her he was not scared of killing someone. When the assault ended, Gallineaux told the victim to leave his house while holding a lit blow-torch. Gallineaux let the blow-torch go out and threw it outside. Law enforcement recovered the blow-torch in the victim’s truck, which he burned.
The victim ran to the hospital and reported the assault. The victim had bruises and scratches on her back, bruising on her neck and injuries to her ears.
The victim also reported to law enforcement that Gallineaux had assaulted her previously in July 2018, when he punched her multiple times in the face and broke her nose. The victim had called 911 and went to the IHS Hospital in Browning.
Assistant U.S. Attorney Kalah Paisley prosecuted the case, which was investigated by the Bureau of Indian Affairs.
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Stilwell Woman Sentenced to 84 Months for Child Neglect in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jessica Jean Clark, a/k/a Jessica Jean Kidd, age 38, of Stilwell, Oklahoma, was sentenced to 7 years’ imprisonment, and 5 years of supervised release for Child Neglect In Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153 and Title 21, Oklahoma Statutes, Section 843.5(C). The charge arose from an investigation by the Federal Bureau of Investigation and the Cherokee Nation Marshal Service.
The Indictment alleged that from in or about June 2017, to September 13, 2017, within the Eastern District of Oklahoma, within Indian Country, the Defendant, Jessica Jean Clark, willfully and maliciously failed and omitted to provide adequate nurturance, hygiene, sanitation, shelter and medical care to J.H. and P.H., and provide special care made necessary by the physical condition of P.H., all while the defendant was responsible for the health, safety and welfare of J.H. and P.H., children under the age of eighteen.
At the Sentencing Hearing, the Government presented evidence that P.H. sustained an injury. As a result of the injury she became sick while in the care of the Defendant and was in need of immediate medical attention. The Defendant failed to obtain medical attention and P.H. died on September 12, 2017. P.H. was only 9-years-old at the time of her death.
United States Attorney Brian J. Kuester said, “The tragic end to this child’s life was completely unnecessary and fully preventable with obviously needed and readily accessible medical care. The defendant chose to ignore the obvious signs of her daughter’s serious illness and as a result she died needlessly. This should never have happened.”
"The FBI's Oklahoma City Safe Trails Task Force fostered critical collaboration with our tribal law enforcement partners, and together we ensured justice in this tragic case for the young victim," said Melissa Godbold, Special Agent in Charge of the FBI Oklahoma City Field Office. "We remain steadfast in our commitment to protect all Americans, especially the most vulnerable in our communities."
Cherokee Nation Marshal Shannon Buhl said, "It’s a collaborative effort ensuring our Cherokee communities are safer and tribal citizens protected. This investigation was another example of the Cherokee Nation Marshal Service and our federal partners in the Eastern District of Oklahoma working together to ensure justice was served for a Cherokee child."
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney McAmis and Cherokee Nation’s Special Assistant United States Attorney Courtney Jordan represented the United States.Staten Island Brothers Plead Guilty to Opioid Distribution ConspiraciesRead the Press Release
Earlier today, in federal court in Brooklyn, Joseph Calabria pleaded guilty to conspiring to distribute and possess with intent to distribute oxycodone, and to being a felon in possession of a firearm. Last week, on September 23, 2019, his brother, Michael Calabria, pleaded guilty to conspiring to distribute and possess with intent to distribute heroin. When sentenced, the defendants each face up to 20 years’ imprisonment for the drug conspiracies, and Joseph Calabria faces up to 10 years’ imprisonment for the firearms offense. Both guilty pleas were entered before United States Magistrate Judge Steven L. Tiscione.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York, and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“Using their Staten Island homes as opioid supermarkets, the defendants distributed highly addictive and potentially lethal drugs on a daily basis,” stated United States Attorney Donoghue. “The Eastern District and our law enforcement partners will continue working tirelessly to hold drug dealers accountable for contributing to the opioid epidemic, which has caused profound human suffering on Staten Island and elsewhere.” Mr. Donoghue expressed his grateful appreciation to the United States Department of Health and Human Services, Office of Inspector General, for its assistance during the investigation.
Beginning in September 2016, with court authorization, law enforcement agents intercepted narcotics-related telephone communications between the defendants and others. In his conversations, Michael Calabria conspired with others to distribute heroin, and then distributed it from his residence. Some of the heroin seized during the investigation contained fentanyl. During Joseph Calabria’s intercepted conversations, he conspired with others to distribute oxycodone, negotiated the purchase of thousands of oxycodone pills and distributed oxycodone pills from his residence.
The government’s case is being prosecuted by Assistant United States Attorney Alicia N. Washington.
The Defendants:
JOSEPH CALABRIA
Age: 55
Staten Island, New YorkMICHAEL CALABRIA
Age: 51
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-91 (SJ)
Statement of United States Attorney McSwain on Today’s Opinion in the United States v. Safehouse LitigationRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain issued the following statement regarding the opinion issued by the district court this afternoon:
“As Deputy Attorney General Rosen explained today, the Department of Justice remains committed to preventing illegal drug injection sites from opening. Today’s opinion is merely the first step in a much longer legal process that will play out. This case is obviously far from over. We look forward to continuing to litigate it, and we are very confident in our legal position.”
Statement from Deputy Attorney General Jeffrey A. Rosen on the United States v. Safehouse RulingRead the Press Release
WASHINGTON – Statement from Deputy Attorney General Jeffrey A. Rosen on the United States v. Safehouse ruling:
“The Department is disappointed in the Court’s ruling and will take all available steps to pursue further judicial review. Any attempt to open illicit drug injection sites in other jurisdictions while this case is pending will continue to be met with immediate action by the Department.”
Smith County Man Guilty in Counterfeit Immigration Documents ConspiracyRead the Press Release
TYLER, Texas –A 53-year-old Flint, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jose Luis Marquez Rodriguez pleaded guilty on Oct. 1, 2019 to conspiracy to produce, transfer, and forge false identification documents before U.S. Magistrate Judge K. Nicole Mitchell. Marquez Rodriguez also agreed to the forfeiture of several firearms and ammunition; a computer and three printers; $9602 cash; funds in three bank accounts totaling $21,359.09; and two pieces of real property in Flint, Texas. Marquez Rodriguez has also agreed to a money judgment in the amount of $308,961.09, representing proceeds received from his conduct.
According to information presented in court, beginning in April 2009, Marquez Rodriguez was involved in a conspiracy to produce and sell fictitious U.S. identification documents to others. The false documents included U.S. Social Security cards and Permanent Residence cards. Marquez Rodriguez admitted to being personally responsible for the transfer of over 100 false identification documents as part of this conspiracy. Marquez Rodriguez was indicted by a federal grand jury on April 23, 2019.
Under the federal statute, Marquez Rodriguez faces up to 5 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office
This case is being investigated by the Federal Bureau of Investigation, Smith County Sheriff’s Office, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement, and Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Colleen Bloss.
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Sand Springs Police and IRS Snare Man for False Tax ReturnsRead the Press Release
A Sand Springs man pleaded guilty today in federal court for filing a fraudulent tax return which resulted in a $3,800 tax refund, announced U.S. Attorney Trent Shores.
Kevin Glenn Petty, 54, pleaded guilty to theft of government property before Chief U.S. District Judge John E. Dowdell. In the plea agreement, Petty admitted to opening multiple financial accounts in order to receive the direct deposit refunds resulting from fraudulent federal income tax filings.
“Tax refund identity theft is a significant and growing problem. In fact, the IRS has previously identified it as the number one tax fraud scam they see,” said U.S. Attorney Trent Shores. “Tax refund identity theft can be a financially lethal combination for victims causing delays in their return or problems with future filings.”
In 2017, Petty filed a fraudulent 2016 income tax return using the name of a taxpayer who was unaware of the filing of the false document. The $3,800 tax refund amount was deposited into a Green Dot card account, which funded a Green Dot pre-paid debit account. Petty also filed five additional fraudulent returns, under different names, which were intercepted by the IRS. The six false returns filed by Petty sought a total of $12, 303 in fraudulent refunds.
At the time of his arrest by Sand Springs Police in 2017, Petty was found to be in possession of personal identifying information of multiple individuals. The information in Petty’s possession at the time of his arrest included credit and debit cards in the names of other individuals, as well as a list of names with social security numbers and dates of birth. Another document in Petty’s possession at the time of his arrest also included e-mail addresses and passwords, phone numbers, mailing addresses, and routing and bank account information for other individuals.
Chief Judge Dowdell set sentencing for Jan. 6, 2020.
The Sand Spring Police Department, IRS-Criminal Investigation and the U.S. Postal Inspector conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin prosecuted the case.
Rochester Man Going to Prison on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Adam Schutz, 36, of Rochester, NY, who was convicted of possession with intent to distribute fentanyl, and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 72 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that on January 30, 2019, and officer with the New York State Division of Parole Supervision and others conducted a compliance search of the defendant’s parole-approved residence on Myrtle Street in Rochester. During a search of Schutz’s bedroom, parole officers recovered a 9mm handgun loaded with nine rounds of 9mm ammunition in the magazine; a second firearm magazine loaded with 10 additional rounds of 9mm ammunition; a clear plastic bag containing a quantity of fentanyl; a bag containing approximately 80 individual doses of LSD; a digital scale; a white plastic grocery bag containing five boxes of 9mm cartridges, two handgun holsters; as well as a .40 caliber handgun loaded with nine .40 caliber cartridges in an attached magazine.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, and the New York State Division of Parole.
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Rochester Man Convicted by A Federal Jury of Wire Fraud and Identity Theft Going to Prison for 10 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a Emanuel Guobadia, 43, of Atlanta, Georgia, who was convicted following a jury trial of wire fraud and identity theft, was sentenced to serve 120 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Melissa Marangola and Richard Resnick, who prosecuted the case, stated that the defendant obtained the personal information of thousands of individuals across the country and used that information to file over 880 fraudulent tax returns. The refunds were transferred through victims’ accounts in Rochester, NY and laundered into the Guobadia’s bank account in Georgia.
In total, the defendant attempted to obtain $2,800,000 in fraudulent tax refunds. The Internal Revenue Service denied most of the requests.“People who try to defraud the IRS are cheating all other law-abiding taxpayers,” said U.S. Attorney Kennedy. “They are committing a crime, and as today’s sentence shows, they are risking serious jail time. Fittingly, once out of jail, they will still owe the taxes and—following interest and possible civil penalties—then some.”
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Jonathan D. Larsen, New York Field Office.
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Rochester Felon Sentenced on A Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tyrone Jiggetts, 48, of Rochester, NY, who was convicted of being a felon in possession of a firearm, was sentenced to serve 12 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Cassie M. Kocher, who handled the case, stated that on May 6, 2019, the defendant possessed a 12 gauge double-barrel shotgun at a gas station at 799 West Main Street in Rochester. In 1991, Jiggetts was convicted of Robbery in the Third Degree, and in 2004, he was convicted of Attempted Grand Larceny in the Third Degree. As a result, the defendant is legally prohibited from possessing a firearm.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
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Repeat Federal Offender Pleads Guilty under Project EJECT to Illegally Possessing FirearmRead the Press Release
Hattiesburg, Miss. – Jonas A. Windham, 37, of Laurel, pled guilty today before Senior U.S. District Judge Keith Starrett to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Windham was previously convicted of being an unlawful user of a controlled substance in possession of a firearm in the Southern District of Mississippi in 2013 and was sentenced to serve 78 months in the custody of the Federal Bureau of Prisons. He was still on federal supervised release at the time of his arrest for the current offense. On June 18, 2019, Windham was found in possession of two firearms during the execution of a search warrant at his residence.
Windham will be sentenced by Judge Starrett on January 9, 2020 at 10:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Federal Bureau of Investigation and Laurel Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Red Lake Man Pleads Guilty to Violent Assault of A MinorRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of TIMOTHY JAMES LAJEUNESSE, 28, for assaulting a minor on the Red Lake Indian Reservation. LAJEUNESSE, who was indicted on May 21, 2019, pleaded guilty today before Senior Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota. He is scheduled to be sentenced on February 5, 2020.
According to LAJEUNESSE’s guilty plea, in the early morning hours of January 13, 2019, after a night of drinking, LAJEUNESSE returned to his residence on the Red Lake Indian Reservation. LAJEUNESSE initially went to sleep, but upon waking up, he grabbed a minor, who was also sleeping in the residence, and attempted to strangle her. In the course of the assault he punched and kicked her. As a result of the assault, the minor sustained a large bruise on her forehead, smaller bruises throughout the rest of her body, and marks on her neck that are consistent with attempted strangulation.
This case is the result of an investigation conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
Assistant United States Attorney Angela M. Munoz-Kaphing is prosecuting the case.
Defendant Information:
TIMOTHY JAMES LAJEUNESSE, 28
Red Lake, Minn.
Convicted:
- Assault resulting in substantial bodily injury, 1 count
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Prolific Wholesale Fentanyl Distributor Convicted After Trial on Federal Charges for a Fentanyl Distribution Conspiracy and Related Firearms ChargesRead the Press Release
Baltimore, Maryland – A federal jury convicted Paul Alexander, a/k/a David Paul Hayes and Shorty, age 47, of Hanover, Maryland, on five federal charges including conspiracy to distribute fentanyl, two counts of possession with intent to distribute a controlled substances—specifically fentanyl, possession of a firearm in relation to a drug trafficking crime, and possession of a firearm by a prohibited person. The jury returned its verdict in the evening on Monday, October 1, 2019.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“More people die of opioid overdoses than murder in Maryland, while drug dealers spend their profits on luxury cars and jewelry,” said U.S. Attorney Robert K. Hur. “Fentanyl dealers, like Paul Alexander, sell death and despair, and dealing in fentanyl increases their odds of federal prosecution. We’re also targeting drug dealers who use guns and increase the risk of gun violence in Maryland. Working together with our local, state, and federal partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
According to the evidence presented at his five-day trial, from April 2018 through January 2019, Paul Alexander distributed large amounts of fentanyl in and around the Baltimore area. An 11-month investigation by DEA into Alexander’s drug trafficking activities resulted in the seizure of more than 10 kilograms of fentanyl—enough fentanyl to kill 5 million people—and over $4 million in cash from Alexander’s car and apartments on January 2, 2019.
The evidence showed that Alexander distributed fentanyl on several occasions to a Baltimore County drug trafficker in 2018. In addition, he was observed conducting narcotics-related transactions with another drug dealer, and surveillance video at his apartment complex revealed that Alexander used several vehicles to store and deliver drugs. The evidence proved that Alexander utilized vehicles and residences in the names of relatives and associates in furtherance of his drug trafficking operation.
Witnesses testified that the DEA and Anne Arundel County police executed search warrants on January 2, 2019, at two apartments associated with Alexander. Law enforcement testified that they recovered a loaded pistol with an extended magazine that contained 24 rounds of ammunition, multiple bags filled with over $4 million in cash, jewelry, and narcotics distribution paraphernalia.
The government also seeks the forfeiture of more than $4 million in cash seized during the investigation, three luxury vehicles, seven Rolex watches, two Cartier bracelets with diamonds, a diamond tennis bracelet, and two designer bags.
Alexander faces a maximum sentence of life in federal prison for the conspiracy; a maximum of life in prison for each of two counts of possession with intent to distribute fentanyl; life in prison for possession of a firearm in relation to drug trafficking; and ten years in prison for illegal possession of a firearm by a previously convicted felon. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 3, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended the DEA and Baltimore Police Department for their work in the investigation and thanked the Anne Arundel County Police Department, the Federal Bureau of Investigation, and Homeland Security Investigations for their assistance. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta and First Assistant U.S. Attorney Jonathan F. Lenzner, who tried this Organized Crime Druge Enforcement Task Force case, and Assistant U.S. Attorney Anatoly Smolkin, who handled pre-trial litigation.
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Philadelphia Tax Preparer Convicted of Preparing False Tax ReturnRead the Press Release
A Philadelphia tax return preparer pleaded guilty to aiding and assisting in the preparation of a false tax return before the United States District Court in Philadelphia, Pennsylvania yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwaim for the Eastern District of Pennsylvania.
“Tax return preparers, who take advantage of their clients and the tax system to file false tax returns and line their own pockets with refund money, will be prosecuted and held accountable for their criminal conduct,” said Principal Deputy Assistant Attorney General Zuckerman.
“When our tax laws are ignored, especially to this extent, we all lose,” said U.S. Attorney McSwain. “The defendant not only violated the tax laws, but also he victimized individuals who simply wanted to do the right thing and pay their taxes. This sentence should send a message to anyone who thinks he can flout the law: the federal government will investigate and prosecute you.”
“Mr. Coumbassa blatantly ignored the tax laws by preparing false tax returns,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “He used a variety of methods to cheat the government, including falsifying information on tax returns to generate larger refunds for his clients. We owe it to every American taxpayer to use all lawful means to identify and prosecute unscrupulous tax returns preparers like Mr. Coumbassa.”
Abdoulaye Coumbassa (Coumbassa) owned and operated Abbi Tax Services and Accounting (Abbi Tax). From at least 2012 to 2015, Coumbassa prepared and filed fraudulent U.S. Individual Income Tax Returns Forms 1040 (“Forms 1040”) and related forms and schedules on behalf of his clients with the Internal Revenue Service (IRS). The indictment alleged that Coumbassa falsified clients’ returns by, among other things, attaching false Schedules C to the clients’ Forms 1040. These Schedules C falsely claimed that the client had a business that lost money, which loss was used to offset taxable income and therefore inflate the refunds or create a refund rather than tax due and owing. The defendant agreed in his plea agreement that a reasonable estimate of the total tax loss exceeded $2 million.
Sentencing is scheduled for Jan. 30, 2020, before United States District Judge R. Barclay Surrick. Coumbassa faces a statutory maximum sentence of three years in prison and a $250,000 fine for aiding in the preparation of a false tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked a special agent of IRS-Criminal Investigation, who conducted the investigation, Assistant United States Attorney Bea Witzleben, and Trial Attorney Sarah Ranney of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
A Philadelphia tax return preparer pleaded guilty to aiding and assisting in the preparation of a false tax return before the United States District Court in Philadelphia, Pennsylvania yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwaim for the Eastern District of Pennsylvania.
“Tax return preparers, who take advantage of their clients and the tax system to file false tax returns and line their own pockets with refund money, will be prosecuted and held accountable for their criminal conduct,” said Principal Deputy Assistant Attorney General Zuckerman.
“When our tax laws are ignored, especially to this extent, we all lose,” said U.S. Attorney McSwain. “The defendant not only violated the tax laws, but also he victimized individuals who simply wanted to do the right thing and pay their taxes. This sentence should send a message to anyone who thinks he can flout the law: the federal government will investigate and prosecute you.”
“Mr. Coumbassa blatantly ignored the tax laws by preparing false tax returns,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “He used a variety of methods to cheat the government, including falsifying information on tax returns to generate larger refunds for his clients. We owe it to every American taxpayer to use all lawful means to identify and prosecute unscrupulous tax returns preparers like Mr. Coumbassa.”
Abdoulaye Coumbassa (Coumbassa) owned and operated Abbi Tax Services and Accounting (Abbi Tax). From at least 2012 to 2015, Coumbassa prepared and filed fraudulent U.S. Individual Income Tax Returns Forms 1040 (“Forms 1040”) and related forms and schedules on behalf of his clients with the Internal Revenue Service (IRS). The indictment alleged that Coumbassa falsified clients’ returns by, among other things, attaching false Schedules C to the clients’ Forms 1040. These Schedules C falsely claimed that the client had a business that lost money, which loss was used to offset taxable income and therefore inflate the refunds or create a refund rather than tax due and owing. The defendant agreed in his plea agreement that a reasonable estimate of the total tax loss exceeded $2 million.
Sentencing is scheduled for Jan. 30, 2020, before United States District Judge R. Barclay Surrick. Coumbassa faces a statutory maximum sentence of three years in prison and a $250,000 fine for aiding in the preparation of a false tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked a special agent of IRS-Criminal Investigation, who conducted the investigation, Assistant United States Attorney Bea Witzleben, and Trial Attorney Sarah Ranney of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Pawtucket Man Arraigned on Bank Robbery ChargesRead the Press Release
PROVIDENCE – A Pawtucket man was ordered detained in federal custody today, arraigned on a federal indictment charging him with robbing banks this past summer in Providence and Pawtucket.
It is alleged in an indictment that Christopher S. Oladapo 28, robbed a Providence branch of Citizens Bank on July 27, 2019, and that he robbed a Citizens Bank branch in Pawtucket on August 31, 2019.
According to information presented to the Court, it is alleged that in each of the robberies Oladapo presented threatening notes to bank tellers demanding cash. It is alleged that he made off with $3,268 from the bank in Providence and that he made off with $2,031 from the bank in Pawtucket.
Oladapo was arraigned today on two counts of bank robbery before U.S. District Court Magistrate Judge Lincoln D. Almond and ordered detained, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, Providence Police Chief Colonel Hugh T. Clements, Jr., and Pawtucket Police Chief Tina Goncalves.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
The bank robberies were investigated by the Providence and Pawtucket Police Departments, with the assistance of the FBI.
Panama National Pleads Guilty ToRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that FELIX ANTONIO SANCHEZ-GOMEZ, age 54, a citizen of the Republic of Panama pleaded guilty on September 26, 2019 to possession of fraudulent immigration documents, in violation of 18 U.S.C. ' 1546(a).
According to the bill of information, FELIX ANTONIO SANCHEZ-GOMEZ possessed a counterfeit Permanent Resident card.
FELIX ANTONIO SANCHEZ-GOMEZ faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, two years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Wendy B. Vitter set sentencing for November 12, 2019.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Osceola, Indiana Man Sentenced to 15 Years in PrisonRead the Press Release
SOUTH BEND - Lonnie Painter, age 57, of Osceola, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio on his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Mr. Painter was sentenced to 180 months in prison followed by 3 years of supervised release.
According to documents in this case, between June of 2018 and November of 2018, Mr. Painter admitted that he possessed two loaded 9mm pistols that were purchased by his late wife. The pistols were discovered when Mr. Painter’s vehicles were repossessed by a Michigan bail bondsman. Mr. Painter was convicted previously of Second Degree Murder in Tennessee and Attempted Murder in LaPorte, Indiana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the St. Joseph County Drug Investigation Unit with the assistance of the South Bend Police Department. The case was handled by Assistant U.S. Attorney Kimberly Schultz.
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North Carolina Doctor Sentenced to Prison for Tax EvasionRead the Press Release
A Star, North Carolina, medical doctor was sentenced today to 12 months and one day in prison for evading the payment of his income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney R. Andrew Murray for the Western District of North Carolina.
According to documents and information provided to the court, from May 2012 to December 2015, Dr. David Russell, 66, took several actions to evade payment of federal income taxes, interest, and penalties he accrued over six previous tax years. Russell ignored a duly-issued Internal Revenue Service (IRS) summons to appear before an IRS collections officer with his pertinent financial records. After the IRS sought and received a court order compelling Russell to comply with the summons, he provided minimal information and omitted records related to any financial accounts and assets he may have had. Russell also hid his assets from the IRS by depositing his paychecks on a reloadable debit card and having wages issued in the name of a company he controlled rather than directly to himself. He also used a business to pay personal expenses. In addition to evading the payment of these taxes, Dr. Russell failed to timely pay the taxes due for the years 2013 through 2015.
In addition to the term of imprisonment, U.S. District Judge Conrad ordered Dr. Russell to serve one year of supervised release and to pay a $10,000 fine. Restitution will be ordered at a later date.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Murray thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.
North Braddock Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A resident of North Braddock, Pa., pleaded guilty in federal court to a charge of conspiracy, United States Attorney Scott W. Brady announced today.
Robert Dillard, 46, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, between March 30, 2018, and April 4, 2018, Dillard conspired with others to possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
Judge Gibson scheduled sentencing for February 18, 2020. The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Dillard.
Nigerian National Appears on Charges Relating to Computer Hacking Scheme That Targeted Government EmployeesRead the Press Release
NEWARK, N.J. - A Nigerian national extradited from Canada will appear in court today for his alleged role in a scheme that defrauded vendors of office products valued at nearly $1 million by “phishing” e-mail login information from government employees, U.S. Attorney Craig Carpenito announced.
Olumide Ogunremi, a/k/a “Tony Williams,” was charged by indictment on Sept. 28, 2018, with one count of conspiracy to commit wire fraud. He was extradited to the District of New Jersey on Sept. 26, 2019, and appeared today before U.S. District Judge Susan D. Wigenton in Newark federal court, where he pleaded not guilty and was detained without bail.
According to documents filed in this case and statements made in court:
From July 2013 through December 2013, Ogunremi and other conspirators perpetrated a computer hacking and theft scheme targeting United States government agencies’ email systems and Government Services Administration (GSA) vendors. The ring employed “phishing” attacks, which used fraudulent e-mails and websites that mimicked the legitimate e-mails and web pages of U.S. government agencies, such as the U.S. Environmental Protection Agency. Unwitting employees of those agencies visited the fake web pages and provided their e-mail account usernames and passwords.
Ogunremi and his conspirators used these stolen credentials to access the employees’ e-mail accounts in order to place fraudulent orders for office products, typically printer toner cartridges, from vendors who were authorized to do business with U.S. government agencies. Ogunremi and his conspirators directed the vendors to ship the fraudulent orders to individuals in New Jersey and elsewhere to be repackaged and ultimately shipped to other locations overseas, which were controlled by Ogunremi and his conspirators. Once the orders were received in Nigeria, Ogunremi and his conspirators sold the toner cartridges to another individual on the black market for profit.
On June 10, 2014, Abiodun Adejohn, a/k/a “James Williams,” 30, of Nigeria, pleaded guilty to one count of wire fraud conspiracy, and was later sentenced to three years in prison.
The wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a maximum $250,000 fine.
U.S. Attorney Carpenito praised special agents of the EPA-OIG, under the direction of Thomas Muskett; General Services Administration OIG, under the direction of SAC Jamie Willemin; Department of Commerce OIG, under the direction of SAC Duane Townsend; Department of Defense Cyber Field Office, under the direction of SAC Jeffery Thorpe; and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to Ogunremi’s arrest.
The government is represented by Assistant U.S. Attorney Sophie E. Reiter, of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: John McGovern Esq., Newark
Nevada Tax Return Preparer Pleads Guilty to Tax CrimesRead the Press Release
A Las Vegas, Nevada, tax return preparer pleaded guilty yesterday to multiple tax crimes, which caused a total tax loss of more than $3.4 million, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Michael A. Sandoval pleaded guilty to one count of tax evasion, one count of aiding and assisting in the preparation and filing of a false tax return, and one count of making and subscribing a false tax return.
According to documents filed with the court, Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). Sandoval used NFS to commit multiple tax crimes. First, when two of his clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. Second, Sandoval filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses and charitable contribution and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. Lastly, Sandoval fraudulently understated his income from NFS on his individual income tax returns for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654.
Sentencing is scheduled for Jan. 9, 2020. Sandoval faces a statutory maximum of five years in prison on the tax evasion charge and three years in prison for each of the false tax return charges. Sandoval also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Nevada Tax Return Preparer Pleads Guilty to Tax CrimesRead the Press Release
LAS VEGAS, Nev. - A Las Vegas, Nevada, tax return preparer pleaded guilty yesterday to multiple tax crimes, which caused a total tax loss of more than $3.4 million, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Michael A. Sandoval pleaded guilty to one count of tax evasion, one count of aiding and assisting in the preparation and filing of a false tax return, and one count of making and subscribing a false tax return.
According to documents filed with the court, Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). Sandoval used NFS to commit multiple tax crimes. First, when two of his clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. Second, Sandoval filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses and charitable contribution and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. Lastly, Sandoval fraudulently understated his income from NFS on his individual income tax returns for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654.
Sentencing is scheduled for Jan. 9, 2020. Sandoval faces a statutory maximum of five years in prison on the tax evasion charge and three years in prison for each of the false tax return charges. Sandoval also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Nearly a dozen drug traffickers off the streets and headed to prisonRead the Press Release
LAREDO, Texas - A total of 12 area drug traffickers and money launderers have received their sentences following their convictions related to a drug trafficking and money laundering conspiracy, announced U.S. Attorney Ryan K. Patrick.
All had previously pleaded guilty for their varying roles in the scheme. U.S. District Judge Marina Garcia Marmolejo imposed the sentences over the course of the last three days.
Today, Judge Marmolejo ordered Elias Medina Ugarte, 27, Austin, to serve 120 months in federal prison for coordinating the receipt and distribution of marijuana.
Earlier this week, Laredoans Federico Hernandez, 36, Juan Ciprian Ruiz, 41, Peter Moreno, 26, Joe Alfredo Fuentes, 35, and Janie Guadalupe Lucio, 41, were ordered to serve 70, 60, 60, 50 and 16 months, respectively, while Marisa Guadalupe Deleon, 40, received a probated sentence with six months home confinement. Moreno had been on supervised release for an unrelated alien smuggling charge and received an additional 12 months for the revocation of that term, six of which are to be served consecutively to his other sentence.
Mexican nationals Leodan Martinez, 35, and Pedro Lomeli, 34, were ordered to serve a total of 36 and 120 months in federal prison and are expected to face deportation proceedings following their sentences.
David Gonzalez, 37, received an 18-month term of imprisonment after the court denied his purported acceptance of responsibility, finding he had tested positive for cocaine use while on bond.
Finally, Leticia Rocha Pruneda, 60, and her daughter Ruby Pruneda, 34, both also from Laredo, received three years of probation and 18 months in prison, respectively. The daughter had recruited her mother to launder drug proceeds.
As part of their respective sentences, most of the defendants received a money judgment or forfeiture in varying amounts up to $40,000.
The co-conspirators engaged in a conspiracy to distribute marijuana by means of tractor-trailers and other vehicles and used various U.S. bank accounts to transfer drug proceeds from distribution cities to Laredo. They were able to launder the drug proceeds by investing in businesses, real estate and vehicles in a manner to conceal and disguise the nature, ownership, control and source of their illicit funds.
The Prunedas spent more than $10,000 in drug proceeds or conducted transactions in a manner to conceal or disguise the source of drug proceeds. Gonzalez, Hernandez and Moreno acted as couriers willing to transport narcotics from Laredo to Austin, Dallas and elsewhere, while Lomeli and Ruiz were stash house operators in Laredo. The others assisted in scouting or transporting narcotics and/or drug proceeds.
With exception of Fuentes, Pruneda and Lucio, the defendants will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The organizers or leaders of the organization are scheduled for sentencing later this year.
Immigration and Custom Enforcement’s Homeland Security Investigations and Drug Enforcement Administration conducted long-term Organized Crime Drug Enforcement Task Force investigation dubbed Platinum Plus.
Assistant U.S. Attorney Graciela Lindberg is prosecuting the case.
Nashville Man Facing Federal Firearms Charges After Child Suffers Gunshot Wound to the HeadRead the Press Release
NASHVILLE, Tenn. – October 2, 2019 – Kedrick Ross, 27, of Nashville, Tennessee, was charged today with two counts of being a convicted felon in possession of a firearm and two counts of possession of a firearm in furtherance of a drug crime, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint unsealed today alleges that Ross, a convicted felon, on separate occasions, was in possession of three stolen firearms and also possessed illegal drugs including marijuana, Xanax, methamphetamine, and MDMA as well as items associated with the packaging and sale of drugs.
Ross was arrested earlier today by ATF agents and Metro Nashville Police Youth Services Division detectives after appearing in Davidson County Criminal Court on other charges. He will appear before a U.S. Magistrate Judge later this afternoon.
The charges are the result of an investigation that began on September 9, 2019, after Ross’s three-year-son suffered a gunshot wound to the head while at a relative’s house in Nashville. The investigation determined that Ross, his girlfriend and child had stayed at a relative’s house on the previous evening and they found their son with a gunshot wound to the head the following day, after being startled by the sound of a “bang.” After the child was transported to the hospital, detectives from the Metropolitan Nashville Police Department (MNPD) interviewed the relative who told them that after the child was shot, Ross picked up the gun, placed it in a purse, and put in in her car parked in the driveway.
Further investigation revealed that at the time of this incident, Ross was under state indictment for other offenses, and out on bond, including a December 2018 incident in which he was arrested by MNPD officers on drug possession and distribution charges and possessing a stolen Glock .40 caliber handgun. Before being arrested, Ross was observed by MNPD officers conducting a drug transaction on Rosa Parks Boulevard. After two attempts to pull him over, officers stopped Ross’s vehicle but he refused to exit the car and made several reaching movements under the seat. Officers removed Ross from the car and recovered three quart jars containing marijuana, five plastic baggies of marijuana, electronic scales, and a bottle containing an assortment of pills, including Xanax and methamphetamine. A Glock .40 caliber handgun loaded with 14 rounds was recovered from between the driver seat and center console and 14 Xanax bars were found in Ross’ jacket pocket.
The firearm recovered from this incident had been reported stolen in September 2018 from a vehicle parked at a residence in Ashland City, Tennessee. This firearm has been linked to two subsequent shooting incidents, including a damaged property incident on Whites Creek Pike in Nashville on October 16, 2018, and an aggravated assault in Madison, Tennessee, in November 2018. These incidents remain under investigation.
While on bond for the charges listed above, on May 29, 2019, Ross was arrested by MNPD officers after fleeing from them in the area of 25th Avenue North, a part of the Cumberland View Apartments and commonly referred to as “Dodge City.” During this incident, officers with the Juvenile Crimes Task Force saw a vehicle, illegally parked in a handicap-designated space. As officers approached the vehicle, Ross exited the driver’s seat and fled on foot. After a foot pursuit, a TASER was deployed in order to subdue Ross. After being apprehended, two loaded Glock semi-automatic handguns were recovered from Ross’s vehicle, along with marijuana, MDMA, and several items associated with drug distribution. Each of these firearms had previously been reported stolen in separate incidents. One was forcibly taken from an individual as he walked along Charles E. Davis Boulevard in June 2018 and the other was stolen from a vehicle parked at a residence in Nashville in July 2018.
In addition to these charges, Ross had previously been convicted of felonies in 2013, 2014, 2015 and 2016, including being a convicted felon in possession of a firearm and possession of controlled substances with intent to sell.
If convicted, Ross faces a minimum of 10 years, up to life in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
A criminal complaint is merely an accusation. Ross is presumed innocent until proven guilty in a court of law.
# # # # #
Michigan man admits to drug distribution chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Andrew Thomas, of Detroit, Michigan, has admitted to a drug distribution charge, U.S. Attorney Bill Powell announced.
Thomas, also known as “Bud,” age 28, pled guilty to one count of “Distribution of Oxycodone.” Thomas admitted to selling oxycodone in Monongalia County in September 2015.
Thomas faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
U.S. Magistrate Judge Michael John Aloi presided.
Mexican man admits smuggling large amount of cocaine across US borderRead the Press Release
LAREDO, Texas – A 48-year-old Mexican national has admitted to importing 12 kilograms of cocaine via the Gateway to the Americas International Bridge in Laredo, announced U.S. Attorney Ryan K. Patrick.
On June 29, Pedro Moreno-Garcia applied for admission into the country driving a 2010 pickup truck. During the x-ray inspection, officers noticed anomalies within the vehicle’s side door pillars. Immediately thereafter, a service detection dog alerted to the vehicle. Law enforcement then searched the truck and discovered 12 bundles of cocaine wrapped in black tape.
The drugs weighed a total of 12 kilograms with a value of $384,000.
Today, Moreno-Garcia pleaded guilty to conspiracy to possess with the intent to distribute cocaine, admitting he knew there were narcotics in his vehicle and expected to be paid for transporting them.
U.S. District Court Judge Marina Garcia Marmolejo will impose sentencing at a later date, yet to be determined. At that time, Moreno-Garcia faces a minimum of 10 years and up to life imprisonment as well as a possible $10 million maximum fine. He has been in custody since his arrests he will remain pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Anthony J. Evans is prosecuting
Members of “Mike’s Candyshop” Drug Delivery Service Charged with Distributing Heroin and CocaineRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Ray Donovan, the Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of an indictment charging ARIEL TAVAREZ, a/k/a “A,” a/k/a “Mike,” CHRISTIAN BAEZ, LUIS MESON, a/k/a “Sito,” GREGORIS MARTINEZ, a/k/a “Greg,” KEVIN GRULLON, a/k/a “Kev,” a/k/a “JB,” and JOIFFREY URENA, a/k/a “Jeff,” a/k/a “Jay,” with conspiring to distribute heroin and cocaine through an on-demand drug delivery service called “Mike’s Candyshop.” All six defendants were arrested today and will be presented before United States Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court this afternoon. The case has been assigned to United States District Judge Katherine Polk Failla.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants operated a covert on-demand delivery service for the distribution of highly addictive and dangerous drugs. Allegedly, even after they realized the potency of the drugs they were distributing and selling, the defendants continued to sell their poison. Today’s arrests are part of our continued commitment, along with our law enforcement partners, to stop the flow of heroin and cocaine onto the streets of New York City. Thanks to the tireless efforts of law enforcement, Mike’s Candyshop is no longer open for business.”
NYPD Commissioner James P. O’Neill said: “The NYPD’s efforts to rid New York City streets of drug traffickers are greatly strengthened by our close partnerships with the U.S. Attorney for the Southern District, Homeland Security Investigations, and the Drug Enforcement Administration. Anyone who deals in illegal narcotics must understand that the nation’s best investigators will stop at nothing to fight crime and keep safe all the people we serve.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Those arrested today are alleged to have operated an on-demand drug distribution network known as ‘Mike’s Candyshop.’ This illicit enterprise allegedly allowed people to order heroin and cocaine to their doorstep simply by calling the business phone number with the same convenience as if they were ordering a pizza. At least one overdose death is allegedly linked to this drug trafficking organization. HSI’s coordination and information sharing with its partners at the NYPD, DEA and CBP have proven to be effective strategies in investigating drug trafficking organizations. We know that we must continue to combat the trafficking and distribution of these dangerous narcotics in the hope of preventing future overdose deaths.”
DEA Special Agent in Charge Ray Donovan said: “Traffickers take note, it is our job to investigate and arrest drug suppliers whose business leads to drug addiction, overdoses, and death. This case gives new meaning to the term ‘candy’ and gave investigators a look into alleged drug delivery services in New York. Our partnership with the U.S. Attorney’s Office, HSI, and NYPD will continue to identify alleged drug suppliers at all levels.”
According to the allegations in the Indictment,[1] and statements made in Court:
The defendants were members of a drug trafficking organization (the “DTO”) that engaged in a drug delivery service, which identified itself as “Mike’s Candyshop.” The DTO delivered heroin and cocaine on demand to customers in New York City, and distributed numerous kilograms of heroin and cocaine throughout the course of the conspiracy. Mike’s Candyshop generally operated seven days per week, from approximately 6:00 p.m. to 12:00 a.m., with the exception of major holidays such as Thanksgiving, New Year’s Eve, and Labor Day. Customers of the DTO placed delivery orders via text message to a centralized phone number (the “Candyshop Number”). The operator of the Candyshop Number was usually TAVAREZ, a/k/a “A,” a/k/a “Mike,” one of the charged defendants and the leader of the DTO. Using the Candyshop Number, TAVAREZ accepted customer orders and subsequently arranged for a courier working for the DTO to deliver the narcotics to the customer, usually within hours of the customer texting his or her order to the Candyshop Number. Certain of the DTO members, including BAEZ, MESON, GRULLON, and URENA, served as couriers for the DTO, and regularly delivered and sold narcotics to the DTO’s customers in hand-to-hand drug transactions coordinated through the Candyshop Number. MARTINEZ managed the DTO’s day-to-day supply of drugs and cash proceeds.
The DTO stored heroin, cocaine, and cash from drug sales in various stash locations maintained by the DTO, including in Brooklyn, New York. In an effort to avoid law enforcement detection, the DTO sold only to customers who had been referred by existing customers, periodically changed the Candyshop Number, used coded language to discuss narcotics, and delivered narcotics directly to customers at locations specified by the customer.
As a means of marketing its cocaine, and to ensure that the DTO’s customers knew the cocaine provided by the couriers belonged to the DTO, the DTO sold its cocaine in vials sealed with different colored tops. On or about December 16, 2018, a customer of the DTO (“Victim‑1”) died of a drug overdose in Manhattan, New York. At the scene of the overdose death, law enforcement officers recovered empty vials with colored tops, and a glassine next to a powder mixture containing, among other substances, heroin and cocaine, along with Victim-1’s cellphone. Victim-1’s cellphone contained text messages showing that Victim-1 had ordered narcotics from the Candyshop Number on numerous occasions, including the day before Victim-1’s death.
* * *
BAEZ, 33, MESON, 31, MARTINEZ, 34, GRULLON, 25, and URENA, 27, each of New York, New York, and TAVAREZ, 38, of East Stroudsburg, Pennsylvania, are each charged with one count of conspiring to distribute heroin and cocaine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI, the DEA, and the NYPD. He also thanked U.S. Customs and Border Protection for their assistance.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Aline R. Flodr, Mollie Bracewell, and Nicholas W. Chiuchiolo are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Member of Newark’s ‘Famous Boyz’ Street Gang Admits Drug Trafficking Conspiracy Charges; Five Members Charged in 21-Count Superseding IndictmentRead the Press Release
NEWARK, N.J. – One of 17 defendants arrested in connection with a Newark street gang known as the “Famous Boyz” today admitted distributing narcotics as part of a drug trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Ibn Saadiq, a/k/a “Zero,” 22, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin. He is the seventh defendant to plead guilty in the case so far.
On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment charging Patricio Hernandez; Jonathan Hernandez; Jonathan Garcia, a/k/a “Bebo;” Javon Holmes, a/k/a “J-Dot;” and John Mosley, a/k/a “Breezy,” a/k/a “Brazy,” as follows:
Count(s)
Charge
Defendant(s)
1
Conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine
Mosley; Holmes; P. Hernandez; J. Hernandez; Garcia
2
Conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin
Mosley; Holmes
3
Distribute and possess with intent to distribute 28 grams or more of cocaine base
Mosley; Holmes
4
Distribute and possess with intent to distribute 28 grams or more of cocaine base
Mosley
5-9
Distribute and possess with intent to distribute heroin
Mosley
10
Distribute and possess with intent to distribute heroin
Holmes
11
Distribute and possess with intent to distribute heroin and cocaine base
Holmes
12
Distribute and possess with intent to distribute heroin
Holmes
13
Distribute and possess with intent to distribute cocaine base
Holmes
14
Distribute and possess with intent to distribute fentanyl and cocaine base
Holmes
15
Distribute and possess with intent to distribute heroin and cocaine base
Holmes
16
Distribute and possess with intent to distribute heroin
Mosley; Holmes
17
Distribute and possess with intent to distribute heroin and cocaine base
Mosley; Holmes
18
Distribute and possess with intent to distribute heroin
Mosley; Holmes
19
Distribute and possess with intent to distribute heroin and cocaine base
Mosley; Holmes
20
Distribute and possess with intent to distribute cocaine and cocaine base
J. Hernandez; Garcia
21
Maintaining premises for the purpose of unlawfully manufacturing, storing, distributing, and using a controlled substance
J. Hernandez; Garcia
The charges in the superseding indictment and previous criminal complaint remain pending, and the defendants are presumed innocent unless and until proven guilty.According to the documents filed in this case and statements made in court:
In October 2018, Saadiq and 16 other members of a violent drug trafficking conspiracy operating in Newark were charged by criminal complaint after a lengthy wiretap investigation with conspiracy to distribute crack cocaine and/or heroin. The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brim set of the Bloods street gang – which dealt significant quantities of heroin and crack-cocaine, primarily in the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8”.
The six defendants who previously pleaded guilty before Judge Arleo are:
Quaheem Bethea, a/k/a “Troub,” 20; Angelo West, a/k/a “Come Up,” 21; David Lamar, a/k/a “Brazy Ru,”27; Malik Minor, a/k/a “YK,” 22; Omar Jones, a/k/a “Torch” 20; and Robert Dorrah, a/k/a “Cash Out,” 21, all of Newark.
The heroin and crack cocaine conspiracy counts carry a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Jan. 21, 2020.
U.S. Attorney Carpenito credited special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges and today’s guilty plea.
He also thanked the DEA, under the direction of SAC Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community.
The government is represented by Deputy Chief of the Criminal Division Mary E. Toscano and Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Defense counsel:
Saadiq: James Patton Esq., Livingston, New Jersey
Bethea: Kathleen M. Theurer Esq., Jersey City, New Jersey
West: Michael V. Calabro Esq., Newark
Lamar: Michael P. Koribanics Esq., Newark
Minor: Andrew Olesnycky Esq., Westfield, New Jersey
Jones: David B. Glazer Esq., Livingston, New Jersey
Dorrah: John Whipple Esq., Morristown, New JerseyMaryland men admit to fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sven Artez Alston and James Lamont Brinkley, both of Baltimore, Maryland, have admitted to distributing fentanyl, U.S. Attorney Bill Powell announced.
Alston, age 30, and Brinkley, age 32, each pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Both men were found in a motel in Spring Mills, West Virginia, in November 2018 with 30 grams of fentanyl, 39 grams of a synthetic opiate known as U47700, and a cutting agent, as well as digital scales and plastic baggies. The amount of fentanyl seized was enough to kill more than 10,000 people. Other drugs were also found in the room, along with $9,600 in cash.
Alston and Brinkley each face up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorneys Timothy D. Helman and Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the cases on behalf of the government. The FBI; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office; the Berkeley County Sheriff’s Office; the Jefferson County Sheriff’s Office; the Martinsburg Police Department; the Charles Town Police Department; and the Ranson Police Department investigated. The United States Marshals assisted.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.Manhattan U.S. Attorney Announces Charges Against Senior Public Relations Firm Executive for Defrauding His Employers of Millions of DollarsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector in Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), announced that ANDREW GARSON was arrested today on wire fraud charges in connection with a multimillion-dollar scheme to defraud two public relations firms where GARSON worked, and a subsequent scheme to obtain New York State unemployment insurance benefits to which GARSON was not entitled.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As a public relations executive, Andrew Garson’s expertise in garnering positive attention for his clients is well known, even earning him a spot on the ‘40 Under 40’ in a popular industry magazine. But behind the scenes, Garson allegedly schemed to steal from his employers, eventually costing them over $2 million in losses. Andrew Garson has likely generated his own (negative) publicity, and now faces the possibility of serious time in federal prison.”
USPIS Inspector in Charge Philip R. Bartlett said: “As alleged, Mr. Garson’s arrogance and disrespect for his employers and the rule of law was on full display in this case. He allegedly lied and stole from his employers to feed his greed and fund his personal endeavors. Mr. Garson may have plenty of time to utilize his keen public relations skills if convicted of the charges.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
Between approximately 2013 and 2018, GARSON was employed as an executive at two different marketing/public relations agencies located in New York, New York, the first between approximately 2013 and January 2018 (“PR Firm-1”), and the second between approximately January 2018 and November 2018 (“PR Firm-2”). In his respective roles at those two firms, GARSON was responsible for working directly with clients, coordinating various marketing and public relations campaigns, and managing vendor relationships in connection with such campaigns. In or about July 2018, GARSON was named a “40 Under 40” public relations executive by PR Week Magazine. For years, however, GARSON engaged in a scheme to lie to his two employers, which fraudulently induced interstate wire transfers of funds and caused his employers millions of dollars in losses.
One such series of misrepresentations by GARSON resulted in the unauthorized payment by PR Firm-2 of expenses owed to vendors in connection with marketing campaigns led by GARSON while employed at PR Firm‑1. Over the course of GARSON’s first several months of employment at PR Firm-2, GARSON lied to certain vendors, stating that PR Firm-2 had agreed to cover expenses still owed to those vendors related to GARSON’s prior projects at PR Firm-1. In fact, PR Firm-2 did not authorize the payment of those expenses. In order to cause PR Firm-2 to effect payment of these expenses, GARSON created fraudulent invoices falsely claiming that the vendors were due payment for work performed on PR Firm-2 projects. In this fashion, GARSON caused PR Firm-2 to pay substantial expenses to vendors with which GARSON had worked on projects while employed at PR Firm-1, thereby causing losses to PR Firm-2 in excess of $2.5 million.
In addition, while employed at PR Firm-1, GARSON used his corporate credit card for unauthorized personal expenses. For example, in or about August 2017, GARSON purchased a luxury watch using his PR Firm-1 corporate credit card for approximately $14,000, claiming that that the expense related to event production for a client marketing event. GARSON later sold the watch to a New Jersey jewelry store in or about December 2018 for approximately $4,000. GARSON deposited the money that he earned from the sale of the watch into his personal bank account.
GARSON similarly defrauded PR Firm-2 with respect to the unauthorized use of his corporate credit card. For example, GARSON submitted expense reports to PR Firm-2 in which he claimed the same expense for reimbursement on more than one occasion, causing PR Firm-2 to reimburse GARSON twice for the same expenditure.
After uncovering certain aspects of the fraud scheme perpetrated by GARSON, PR Firm-2 terminated GARSON in or about November 2018. In the course of applying for unemployment insurance program benefits from the New York State Department of Labor following his termination, GARSON lied regarding the circumstances surrounding his separation from PR Firm-2. According to the New York State Department of Labor, had GARSON truthfully conveyed the circumstances surrounding his termination from PR Firm-2, GARSON would have been ineligible for the receipt of unemployment insurance benefits. As a result of his misrepresentations, between in or about December 2018 and in or about March 2019, GARSON received a total of over $5,000 in unemployment insurance benefits to which he was not entitled. As part of the scheme, GARSON engaged in and caused others to engage in interstate wire communications. For example, on at least one occasion GARSON logged onto the New York State Department of Labor’s unemployment website, hosted on a server located in New York, from a location in New Jersey.
* * *
GARSON, 37, of Rockville Centre, New York, is charged by Indictment with two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of USPIS.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Christopher J. DiMase is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Man Convicted at Trial in Miami of Orchestrating Snapchat Sextortion Ring that Targeted ChildrenRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Chief W. Howard Harrison of the Planation Police Department, and Chief Dale Engle of the Davie Police Department, announced that on Sept. 27, 2019, a federal jury in Miami, Florida convicted Joseph Isaiah Woodson, Jr., 30, of Ashburn, Virginia, of using the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses.
Woodson, Jr. was convicted at trial on three counts of Production of Child Pornography, in violation of Title 18, United States Code, Section 2251(a) and 2251(e), one count of Distribution of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(2), one count of Sending Extortionate Threats, in violation of Title 18, United States Code, Section 875(d), and one count of Conspiracy, in violation of Title 18, United States Code, Section 371 (Case No. 18cr60256). Sentencing is scheduled for Dec. 2, 2019, before U.S. District Judge Jose E. Martinez. The defendant faces a statutory minimum sentence of 15 years in prison and a maximum sentence of 117 years in prison.
According to the evidence presented at trial, beginning in October 2017 through September 2018, Woodson. Jr. persuaded, induced, enticed and coerced numerous minor female children across the country to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct using the camera on their cellular telephones. Woodson, Jr. infiltrated the Snapchat accounts of these children by pretending to be one of their friends on social media. Once given the passwords, Woodson, Jr. took over the victims’ Snapchat accounts and demanded the children send him sexually explicit videos and images of themselves using the web based texting application “KIK” in order to get back and regain control of their accounts. Woodson, Jr. conspired with others to systematically extort and exploit children using the internet.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI Miami’s Child Exploitation Task Force, in partnership with the Davie Police Department and Plantation Police Department. Coral Springs Police Department, Fairfax City Police Department, FBI Dallas, FBI Indianapolis, FBI Operation Rescue Me, FBI Technical Analysis Unit, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, and the U.S. Army Criminal Investigation Command all assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Lexington Man sentenced to 10 Years in Prison for the Distribution of Fentanyl Causing an Overdose DeathRead the Press Release
LEXINGTON, Ky. – Harvey O. Isaac, 30, of Lexington was sentenced to 10 years in federal prison for the distribution of fentanyl that caused the overdose death of another by US District Court Judge Danny C. Reeves.
On April 12, 2017, Isaac and Shannon Hixon, 43, of Detroit, distributed a quantity of fentanyl to an individual identified as K.F., a U.S. Army veteran, who used the fentanyl and died as a result. The Lexington Police Department opened an investigation into the death that ultimately led to charges being placed against Isaac and Hixon.
Isaac was also sentenced to five years supervised release after his 10 years in prison.
On July 25, 2019, Hixon was found guilty, after a four day jury trial, of the distribution of fentanyl resulting in the overdose death of K.F., as well as conspiring to distribute oxycodone and fentanyl. Hixon is awaiting sentencing on December 6 before Chief Judge Reeves. Hixon faces a minimum of 20 years imprisonment, up to a maximum of life in prison.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Dan Dodds, Acting Special Agent in Charge, DEA Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department jointly announced Isaac’s sentencing.
The investigation was conducted by the DEA and the Lexington Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Roger W. West and Assistant United States Attorney Todd Bradbury.
— END —
Las Vegas Drug Dealer Sentenced to Eight Years in Prison for Selling Large Quantities of OxycodoneRead the Press Release
LAS VEGAS, Nev. – A Las Vegas drug dealer was sentenced Monday to eight years and two months in federal prison for selling large quantities of Oxycodone, a Schedule II controlled substance, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Earnest Rogers, 48, pleaded guilty on March 4, 2019, to one count of conspiracy to distribute a controlled substance. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Rogers to three years of supervised release.
According to court documents, Rogers admitted that, between August 2016 and April 2017, he and others agreed to obtain prescription pills, namely Oxycodone, from co-conspirators and resell those pills to others. He had multiple individuals who routinely contacted him to sell prescription pills they either obtained through a medical prescription or from someone else. Rogers received and sold more than 1,000 Oxycodone (30 mg) pills during the conspiracy.
Co-defendants Kary Watson, Jason West, Marcus Jones, Leslie Brass, Artavious Wright, Murray Newton, Jamal William, Richard Roberts, and John Phillips all pleaded guilty and have been sentenced or are awaiting sentencing. Damien Norris was convicted by a jury and is scheduled to be sentenced on October 15, 2019.
The case was investigated by the DEA.
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Large Takedown Targets Mexican Drug Trafficking Organization Operating in Oregon (Photo)Read the Press Release
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Downloadable file: PhotoPORTLAND, Ore.—A coordinated, multi-agency law enforcement operation was conducted today to dismantle a vast international drug trafficking organization that conspired to distribute methamphetamine, heroin and cocaine manufactured in Mexico throughout the Portland Metropolitan Area, announced Billy J. Williams, U.S. Attorney for the District of Oregon.
Federal search warrants were executed at 13 locations throughout the Portland area. Investigators seized 22 pounds of methamphetamine, four ounces of heroin, 11 ounces of cocaine and seven firearms and arrested 20 defendants. These defendants join 10 others who are already in custody on related state charges.
A 60-count indictment unsealed today, charges 41 people for their roles in the drug trafficking and money laundering conspiracy.
“While communities across our state and country are reeling from the opioid and addiction crisis, there are criminal organizations whose sole purpose is to profit off addiction. At its peak, this network was bringing more than 130 pounds of methamphetamine and heroin into the Portland area every week—nearly 600,000 individual user doses,” said U.S. Attorney Williams. “This country and communities in Oregon are drowning in deadly substance abuse. Vulnerable people addicted to drugs of all kinds are the targets of greedy criminals pushing their deadly poison. We will continue to work with our federal, state, local and tribal partners to disrupt these criminal organizations.”
“We are very proud of the hard work and commitment by our detectives, as well as the cooperation from our law enforcement partners. The ability to collaborate with other departments was instrumental in the resolution of this case,” said Robin Sells, Chief of Police of the Gresham Police Department. “As a result of the hard work between these agencies, arrests were made and literally hundreds of thousands of dollars in narcotics are off the streets.”
“I am extremely proud of all of the law enforcement officers involved in this operation,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations (HSI) Seattle. “Their dedication to law enforcement, and the strength of our partnerships, has resulted in the disruption of a complex drug organization, the removal of large quantities of narcotics from our community and may have saved countless lives.”
The indictment alleges that beginning in November 2018, two men, Samuel Diaz and Faustino Monroy, organized, led, and ran an organization responsible for trafficking hundreds of pounds of methamphetamine and heroin, with an estimated wholesale value of $15 million, into the Portland area for resale.
Diaz and Monroy, who both remain at large in Mexico, worked closely with two Portland-based associates: Edgar Omar Quiroz Rodriguez and Gerson Fernando Martinez-Cruz. Quiroz and Martinez-Cruz ran a Portland distribution cell which, at its peak, was responsible for distributing as much as 77 pounds of methamphetamine and 55 pounds of heroin every week in and around Portland.
The organization’s numerous sources of supply would import large quantities of illegal drugs that were taken to stash houses throughout the metro area where they were processed and prepared for sale. A large network of local drug dealers would the distribute user quantities of each drug. The organization would routinely change stash locations, rotate vehicles and phones, and pay individual couriers to take time off to avoid detection by law enforcement.
Members of the organization obtained rifles and handguns in the U.S. and attempted to transport them to associates in Mexico to strengthen and protect the organization and its activities. Prior to today’s takedown, investigators had seized 44 firearms including assault rifles, shotguns and handguns.
Additionally, the organization used a Southeast Portland mini market called Tienda Mexicana Gonzalez Inc., also known as the Gonzalez Bros. Market, to launder their proceeds via international electronic money wires. These wires were deliberately structured using low-denomination transfers to avoid triggering a suspicious activity report as required by U.S. Department of Treasury’s Financial Crimes Enforcement Network.
In total, the organization’s drug trafficking and money laundering efforts netted more than $1 million in less than one year.
This case was investigated by the Gresham Police Department, Homeland Security Investigations, and the FBI. The Drug Enforcement Administration, Oregon State Police, Portland Police Bureau, and Multnomah, Clackamas, and Clark County Sheriff’s Offices participated in the takedown.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Kingston Man Pleads Guilty to Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rusty Shawn Summit, age 38, of Kingston, Oklahoma, entered a guilty plea to Wire Fraud, in violation of Title 18, United States Code, Sections 1343 and 2, punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that from on or about May 27, 2016, to on or about March 7, 2017, in the Eastern District of Oklahoma and elsewhere, the defendant devised a scheme to obtain money and property from others by means of materially false and fraudulent pretenses, representations and promises.
The charges arose from an investigation by the United States Secret Service and the Bryan County District Attorney’s Office.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
First Assistant United States Attorney Christopher Wilson represented the United States.
Justice Department announces more than $18 million in grants to Northern Ohio; money will be used to hire detectives, expand DNA testing, support drug courts, provide housing for crime victims and other prioritiesRead the Press Release
The Justice Department recently announced more than $18 million worth of grants to agencies in Northern Ohio that will pay for the citywide expansion of the Cleveland Division of Police’s domestic violence high risk team, improve DNA testing capabilities in several areas, expand drug courts in several cities, allow the Cuyahoga County Prosecutor’s Office to build a database to track violent crime trends, provide transitional housing in Ottawa County and Canton for survivors of sexual assault and domestic violence, and numerous other programs.
“These funds will save lives, whether that is expanding a program that identifies the most dangerous abusers, provides emergency shelter to our most vulnerable victims, allows law enforcement to do a better job tracking and sharing crime data, just to name a few,” U.S. Attorney Justin Herdman said. “These grant awards demonstrate the Justice Department’s commitment to working across the state and country, with jurisdictions large and small, to make our communities safer.”
Below is an incomplete list of grant recipients announced in the past few weeks. Additional grants may be announced in coming days. They are grouped geographically:
NORTHEAST OHIO
The Cuyahoga County Prosecutor’s Office’s Sexual Assault Kit Task Force will receive $3 million from the Justice Department. The money will be used to expand the Task Force’s DNA project, implement genealogy searches of “John Doe” indictments, continue partnership with Case Western Reserve University and the Cleveland Rape Crisis Center and maintain personnel and training.
The Cuyahoga County Common Pleas Court will receive $1 million from the Office of Justice Programs. The money will fund a high-risk domestic violence court.
Cleveland will receive $500,000 from the Office on Violence Against Women. The money will be used to support the expansion of the Domestic Violence High Risk Team program to all police districts, employ two full-time detectives, a full-time victim advocate to be embedded with the police, develop training for law enforcement on trauma, victim engagement and trauma-informed interviewing.
The Cuyahoga County Prosecutor’s Office will receive $360,000 from the Bureau of Justice Assistance. The money will be used to help law enforcement agencies throughout the county to collaborate and build a database that will detect and track violent crime trends to improve information sharing.
The Cuyahoga County Prosecutor’s Office will receive $609,019 from the Office of Juvenile Justice and Delinquency Prevention. The money will be used to support the Internet Crimes Against Children Task Force.
Lake County will receive $270,013 from the National Institute of Justice. The money will pay for a DNA analyst to complete up to 400 cases a year, as well as purchase laboratory automation instrumentation to perform DNA extraction.
The Cuyahoga County Medical Examiner’s Office will receive $339,459 from the National Institute of Justice. The money will be used to fund a DNA forensic scientist, procure supplies, and train staff.
The Cleveland Rape Crisis Center will receive $424,977 from the Office on Violence Against Women. The money will be used to work with the Cleveland Hearing and Speech Center to establish a multidisciplinary team, provide services to individuals with disabilities who are victims of violence and abuse, among other areas.
The Domestic Violence and Child Advocacy Center will receive $550,000 from the Office on Violence Against Women. The Center will work with the Cuyahoga County Domestic Relations Court to provide supervised visitation and safe exchange services. The money will pay for a supervised visitation intake specialist housed at the court, two supervised visitation monitors, a supervised visitation coordinator and contract security services over three years.
Cleveland will receive $750,000 from the Bureau of Justice Assistance. The money will be used to improve responses and outcomes for individuals with mental illness or co-occurring mental illness and substance abuse disorder who come into contact with the justice system.
The following entities will receive money from the Bureau of Justice Assistance to fund drug courts and/or veteran’s treatment courts: Cuyahoga County Common Pleas Court, $439,924; Geauga County, $500,000.
The following cities received money from Bureau of Justice Assistance as part of the Edward Byrne Memorial Justice Assistant Grant, which can be used for a broad range of crime control and prevention strategies based on local needs. The cities are: Cleveland, $602,791; Lorain County, $32,410, and Lake County, $24,459.
AKRON/CANTON AREA
Summit County will receive $500,000 from the Office on Violence Against Women. The money will be used to support the Summit County Prosecutor’s Office Domestic Violence Unit Program; centralize prosecution, probation and victim services; and employ additional domestic violence prosecutors, a domestic violence probation officer and a full-time victim advocate.
The Domestic Violence Project, Inc. will receive $310,147 from the Office on Violence Against Women. The money will allow the Canton-based organization to work with several community partners to provide housing and support services to survivors of sexual assault, domestic violence, dating violence or stalking.
Coleman Professional Services in Kent will receive $363,795 from the Office of Victims of Crime. The money is awarded as part of OVC’s Transforming America’s Response to Elder Abuse. The money will be used to increase coordination of services for those meeting the needs of victims and moving cases more successfully through the judicial system.
The following entities will receive money from the Bureau of Justice Assistance to fund drug courts and/or veteran’s treatment courts: Medina County, $500,000, and Summit County, $455,471.
The following cities received money from Bureau of Justice Assistance as part of the Edward Byrne Memorial Justice Assistant Grant, which can be used for a broad range of crime control and prevention strategies based on local needs. The cities are:Akron, $125,149, and Canton, $75,633.
NORTHWEST OHIO
Lucas County will receive $775,775 from the Office of Juvenile Justice and Delinquency Prevention. Lucas County will use the money to realign referral requirements to the Community Treatment Center to improve services and balance traditional probation responses with extended incarceration.
Advocates for Basic Legal Equality, Inc. in Toledo will receive $448,222 from the Office of Violent Crime through the Enhancing Community Responses to the Opioid Crisis program. ABLE will provide free, trauma-informed civil legal services for children affected by the opioid crisis, including resolving custody disputes, obtaining civil protection orders and accessing public benefits and health care.
The Mental Health & Recovery Services Board of Lucas County will receive $400,000 from the Bureau of Justice Assistance. The money will be used to improve responses and outcomes for individuals with mental illness or co-occurring mental illness and substance abuse disorder who come into contact with the justice system.
The Hancock County Board of Alcohol, Drug Addiction & Mental Health Services and the Erie County Health Department will each receive $600,000 from the Bureau of Justice Assistance’s Comprehensive Opioid Abuse site-based Program. COAP aims to reduce opioid abuse and the number of overdose fatalities, as well as supporting comprehensive, collaborative initiatives.
Ottawa County Transitional Housing, Inc. will receive $449,823 from the Office on Violence Against Women. The money will be used to allow the Port Clinton-based group to work with community partners to provide to provide housing and support services to survivors of sexual assault, domestic violence, dating violence or stalking, as well as their families.
Legal Aid of Western Ohio, Inc. will receive $425,000 from the Office on Violence Against Women. The money allow Legal Aid to work with community partners to provide accessible, safe and effective services to individuals with disabilities who are victims of domestic violence and abuse.
Bowling Green State University will receive $797,079 from the National Institute of Justice. The money will be used to fund research into criminality trends of 12- to 18-year-olds who resided in Lucas County, to establish the importance of individual and social factors on changes in offending/criminal behavior.
Goodwill Industries of Northwest Ohio will receive $999,974 from the Bureau of Justice Assistance. The grant is part of the Second Chance Act’s Comprehensive Community-Based Adult Reentry Program and will be used to provide individualized transitional reentry services to participants.
Lima will receive $31,351 from Bureau of Justice Assistance as part of the Edward Byrne Memorial Justice Assistant Grant, which can be used for a broad range of crime control and prevention strategies based on local needs.
MANSFIELD
Mansfield will receive $250,000 from the National Institute of Justice. The money will be used to reduce any forensic DNA backlog, provide for continuing education training for DNA analysts, and purchase necessary equipment, software and training.
MAHONING VALLEY
Youngstown will receive $181,695 from the Bureau of Justice Assistance to fund drug courts and/or veteran’s treatment courts.
The following cities received money from Bureau of Justice Assistance as part of the Edward Byrne Memorial Justice Assistant Grant, which can be used for a broad range of crime control and prevention strategies based on local needs. The cities are: Youngstown, $43,212, and Warren, $21,927.
MARION
Marion will receive $10,995 from Bureau of Justice Assistance as part of the Edward Byrne Memorial Justice Assistant Grant, which can be used for a broad range of crime control and prevention strategies based on local needs.
MULTIPLE JURISDICTIONS
The Ohio Office of Criminal Justice Services will receive $259,188 from the Bureau of Justice Assistance. The money is part of the Project Safe Neighborhoods program and will be distributed to police departments in Akron, Canton, Cleveland, Elyria, Lorain, Mansfield, Toledo and Youngstown to help fund initiatives designed to help reduce gun violence.
Justice Department Welcomes Florida Joining T-Mobile/Sprint SettlementRead the Press Release
Florida Attorney General Ashley Moody announced today that the state of Florida is joining the United States, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in settling claims relating to the proposed merger of T-Mobile and Sprint. The settlement requires a substantial divestiture package in order to enable a viable facilities-based competitor to enter the market. Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs.
“Florida has been one of the states leading this investigation since the beginning, and I am pleased that they have chosen to join our settlement after completing their thorough review,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The merger, with the divestitures, will strengthen competition for high-quality 5G networks that will benefit Floridians and American consumers nationwide.”
The Department’s Antitrust Division and now seven co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement. That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.
Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile and Sprint prepaid, to Dish Network Corp., a Colorado-based satellite television provider. The proposed settlement also provides for the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish builds out its own 5G network.
T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington. In 2018, T-Mobile posted revenues of more than $43 billion. Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.
Sprint Corporation is a Delaware corporation headquartered in Overland Park, Kansas. In 2018, its posted revenue was over $32 billion. Sprint is controlled by SoftBank Group Corp., a Japanese Corporation headquartered in Tokyo, Japan.
Jury Finds Little Rock Man Guilty of Possessing MachinegunRead the Press Release
LITTLE ROCK— A federal jury has convicted a Little Rock man of five offenses related to firearms, heroin, and methamphetamine, including possession of a machinegun. Brian Barron, 38, was convicted after his trial ended late Tuesday afternoon.
United States District Judge James M. Moody, Jr., presided over the two-day trial, which concluded with the jury verdict finding Barron guilty on all counts. Judge Moody will sentence Barron at a later date.
Testimony during the trial established that in October 2017, police responded to a shooting incident in Little Rock where a woman reported the father of her children, Brian Barron, had shot at her and hit her in the head with a machinegun. The resulting investigation revealed that Barron, who was a felon, was dealing in heroin and methamphetamine. Barron had two drug-related convictions in Pulaski County and a federal conviction for possession with intent to distribute phencyclidine (often called PCP) involving a firearm.
Investigators obtained a search warrant for a storage locker Barron had rented on Geyer Springs Road, and while officers were conducting surveillance on the storage locker, Barron arrived in a gold GMC Yukon with a small child. Officers encountered Barron near the storage locker and ultimately had to handcuff him due to his aggressive behavior. Officers conducted a canine sniff of the Yukon, which alerted to the presence of narcotics.
In the Yukon, investigators found two firearms: a stolen Bushmaster rifle, wrapped in a garbage bag with a loaded 100 round drum of ammunition, and a Mac 10 machine pistol with multiple loaded extended magazines. They also found cocaine, over 40 grams of methamphetamine actual, 26 capsules of heroin, and various pills.
"Incredibly, this repeat offender discharged his machinegun at the mother of his children," stated United States Attorney Cody Hiland. "The hard work by law enforcement and our AUSAs in obtaining this conviction is an important step in keeping our communities safer by removing dangerous, repeat offenders from our communities."
A grand jury charged Barron on July 10, 2019, in a Superseding Indictment that contained five counts: being a felon in possession of a firearm, possession of heroin with intent to distribute, possession of 5 grams or more of methamphetamine actual with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a machinegun.
Due to Barron’s criminal history, the statutory penalty for being a felon in possession of a firearm is not less than 15 years imprisonment and not more than life. When the crime involves a machinegun, the statutory penalty for possession of a firearm in furtherance of a drug trafficking crime is not less than 30 years imprisonment and not more than life. Because those sentences are mandatory minimums and must run consecutively, Barron faces a minimum sentence of 45 years imprisonment.
The statutory penalty for possession with intent to distribute 5 or more grams of actual methamphetamine is not less than 10 years imprisonment and not more than life due to Barron’s criminal history. The statutory penalty for possession with intent to distribute heroin is not more than 30 years. The statutory penalty for possession of a machinegun is not more than 10 years. Barron also faces supervised release of not less than 8 years after his term of imprisonment and a potential fine of up to $8 million.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the guilty verdict. The investigation was conducted by the Little Rock Police Department and the GETROCK Task Force of the FBI.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Jury Convicts Honduran National for Illegal Reentry to the United States After DeportationRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces that a federal jury today found Fredy David Ramos (44, Orlando) guilty of illegal reentry to the United States after deportation. Ramos faces a maximum penalty of two years in federal prison. His sentencing hearing is scheduled for December 18, 2019.
According to testimony and evidence presented at trial, as well as other court documents, Ramos was deported to Honduras by U.S. Immigration and Customs Enforcement (ICE) in 2011. Ramos subsequently illegally reentered the United States on an unknown date. On October 27, 2018, Ramos was arrested and convicted for possession of cocaine and a firearm in Orlando. After his state criminal proceeding concluded, ICE arrested Ramos for his illegal reentry into the United States.
“This case highlights ICE’s commitment to targeting criminals and threats to public safety as we enforce our nation’s immigration laws,” said Miami Field Office Director Michael W. Meade.
This case was investigated by Immigration and Customs Enforcement – Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Brandon Bayliss.
Jamestown Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Steven Fetterman, 36, of Jamestown, NY, who was convicted of possession of child pornography, was sentenced to serve 100 months in prison and 30 years supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that on November 19, 2015, the defendant possessed 1,720 videos and 13,838 images of child pornography. Approximately 44 videos and 95 images involved prepubescent minors or minors under the age of 12, as well as depictions of violence.
Fetterman previously engaged in a pattern of activity involving the sexual abuse or exploitation of a minor. In 2000, the defendant forced Victim 1, a minor, to engage in oral sex. Also, between 2001 and 2003, the defendant attempted to fondle Victim 2.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Independence Man Pleads Guilty to Child PornographyRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to possessing and sharing hundreds of videos and images of child pornography over the internet.
James Andrew Clingenpeel, 31, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of attempting to distribute child pornography and one count of possessing child pornography.
By pleading guilty today, Clingenpeel admitted that he utilized a peer-to-peer file-sharing network to distribute a video of child pornography over the internet. Clingenpeel’s criminal conduct was discovered during an FBI national investigation into the network, which allows users to share child pornography on their computers with other members over the internet. Clingenpeel was an “Ultimate” member with an account since October 2013. An undercover FBI undercover operative invited Clingenpeel to join his network; Clingenpeel then shared 436 files that contained 9.1GB of content to the network.
Clingenpeel also admitted that he was in possession of child pornography. On April 19, 2016, law enforcement officers executed a search warrant at Clingenpeel’s residence. Officers seized three electronic devices; a notebook computer contained 550 videos and 180 images of child pornography and a computer hard drive contained one video of child pornography, more than 100 images of possible child erotica, and one video of possible child erotica.
Under federal statutes, Clingenpeel is subject to a mandatory minimum sentence of five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the FBI and the Independence, Mo., Police Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Hudson Man Admits to Role in Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Julan Morrison, a/k/a “Weez,” age 38, of Hudson, New York, pled guilty on Monday to conspiring to distribute and possess with intent to distribute more than 280 grams of crack cocaine between August and December 2017.
The announcement was made by United States Attorney Grant C. Jaquith; Keith M. Corlett, Superintendent of the New York State Police; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief L. Edward Moore of the Hudson Police Department.
Morrison is the last of five defendants indicted in February 2018 to plead guilty in connection with the Hudson-based crack cocaine distribution ring. Morrison faces at least 10 years and up to life in prison, a term of supervised release of between 5 years and life, and a fine of up to $10 million when he is sentenced on February 11, 2020 by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
As part of his guilty plea, Morrison admitted that between August and December 2017, he was involved in a conspiracy to distribute crack cocaine in Columbia County. Morrison admitted that members of the conspiracy made weekly trips to New York City where they purchased hundreds of grams of powder cocaine, returned it to Hudson, converted it to crack cocaine, and then sold it to customers. The defendant admitted that the organization sold at least 464 grams of crack cocaine between August and December 2017.
This case was investigated by the New York State Police’s Special Investigations Unit, the FBI, and the Hudson Police Department, and was prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
Hattiesburg Man Sentenced for Misapplication of Funds by a Bank OfficerRead the Press Release
Hattiesburg, Miss. – Paul Ruff, 42, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 6 months in the community corrections center, followed by 6 months’ home confinement, for misapplication of funds by a bank officer, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Ruff was also ordered to pay a $10,000 fine. The court determined the loss amount to be $193,920.81. A hearing on the total restitution owed by the defendant will be held at a later date.
Ruff was employed as the Commercial Relationships Manager of Trustmark National Bank in Hattiesburg, Mississippi, from 1999 to 2014. From 2008 through March 6, 2014, Ruff willfully misapplied moneys, funds, assets or securities that were entrusted to the care of Trustmark National Bank. During this period, Ruff issued unapproved monetary advances, made unauthorized loans, moved money in and out of different customer accounts without authorization, and created fraudulent entries in the electronic records of Trustmark National Bank to conceal the unauthorized transactions.
Ruff pled guilty before Judge Starrett on April 9, 2019, to misapplication of funds by a bank officer or employee.
The Federal Bureau of Investigation investigated the case. It was prosecuted by Assistant United States Attorney Erin Chalk.