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29 October 2019
Wisconsin Man Pleads Guilty to Wire Fraud and Trafficking Access DevicesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on October 24, 2019, Robert A. Gordon (age: 35) of Weston, Wisconsin, pleaded guilty under oath before United States Magistrate Judge William E. Duffin to one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of trafficking access devices, in violation of 18 U.S.C. § 1029(a)(2).
In a written plea agreement filed in the case, Gordon acknowledged that from June 2018 through May 2019, he engaged in a scheme to defraud Kohl’s Department Stores, Inc. (“Kohl’s”) and its customers by obtaining stolen “Kohl’s Cash” coupons and then selling them through his Twitter account, “@OfficialJigLord.” Gordon also used stolen Kohl’s Cash coupons to make purchases for himself. “Kohl’s Cash” is part of a rewards program Kohl’s offers to customers. Customers earn Kohl’s Cash coupons based on their purchases and they can redeem those coupons for additional purchases.
Gordon acknowledged that he knew that the Kohl’s Cash coupons that he advertised, sold, and used had been stolen through credential-stuffing campaigns on Kohl’s webstore in an effort to gain unauthorized access to individual customers’ online accounts. Credential stuffing occurs when an individual uses a computer program to rapidly run a large database of stolen username/password combinations (i.e., credentials) against the websites of various businesses in an attempt to access individuals’ online accounts and commit fraud. These types of credential stuffing campaigns are successful only when individuals reuse the same username/password combination for multiple online accounts.
Magistrate Judge Duffin has issued a written recommendation to United States District Judge J.P. Stadtmueller that Gordon’s guilty plea be accepted. Judge Stadtmueller set a sentencing hearing for January 22, 2020, at 8:30 a.m. in Courtroom 425. At sentencing, Gordon faces a maximum of up to 20 years in prison for wire fraud, and up to 10 years in prison for trafficking access devices. Each count also carries a maximum fine of $250,000.
The case was investigated by the United States Secret Service, the Wauwatosa Police Department, the Greenfield Police Department, and the U.S. Army Criminal Investigation Division. This criminal case is being prosecuted by Assistant United States Attorneys Benjamin Proctor and Scott Campbell.
U.S. Attorney and FBI to announce fraud charges arising from public corruption caseRead the Press Release
DAYTON – Today the government is unsealing charges against three individuals who are facing fraud charges in connection to a public corruption investigation in Dayton.
The briefing will be held:
TODAY: TUESDAY, OCT. 29, 2019
WHEN: 2:30 P.M.
WHERE: Walter H. Rice Federal Building
First floor conference room
200 West Second Street
Dayton, Ohio 45402
WHO: U.S. Attorney Benjamin C. Glassman
Joseph M. Deters, Acting Special Agent in Charge, FBI
Room available beginning at 2:15 P.M. No TV lighting provided. ID and valid media credential will be required for entrance at Security.
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U.S. Attorney Peter Deegan Announces Progress in Making our Communities Safer through Project Safe NeighborhoodsRead the Press Release
Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.
Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s 2018 Crime in the United States Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
“Reducing violent crime and protecting our communities has been and remains a top priority for my office,” said United States Attorney Peter E. Deegan, Jr. “Our Project Safe Neighborhood partnership with local, state, and federal law enforcement has made our streets safer. But the fight is not over. We will continue to work together to bring violent and dangerous offenders to justice.”
As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
In the Northern District of Iowa, we continue to work in partnership with local and federal law enforcement agencies. In June of this year, we announced charges and arrests in thirty-two federal gun cases. The charges were brought as a joint effort with the following agencies as a continued commitment to prosecute the most dangerous offenders in our communities: the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Cedar Rapids Police Department, the Dubuque Police Department, the United States Marshal’s Service, Homeland Security Investigations, the Linn County Sheriff’s Office, and the Waterloo Police Department.
Community Partnerships
The Iowa SAFE Task Force was created in January of 2018. The task force is comprised of members of the US Attorney’s Office, Black Hawk County Attorney’s Office, Department of Corrections, Bureau of Alcohol, Tobacco, and Firearms, the Waterloo Police Department, The Federal Bureau of Investigation, University of Northern Iowa, United States Probation Office, Unity Point, Family & Children’s Counsel of Black Hawk County, Center for Violence Prevention, Iowa WORKS, Friends of the Family, Cedar Valley Iowa Works, Violent Crimes Program, Catholic Charities, and multiple community members. The group meets bi-weekly to discuss and implement strategies to deter and reduce gun crimes in the Waterloo area.
Improvements to Community Safety
- For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released today. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.
- The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.Tulsa Software Developer Sentenced to Prison for Payroll Tax FraudRead the Press Release
A computer software development company owner was sentenced Tuesday for failing to account for and pay over employment taxes withheld from his employees’ wages, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Trent Shores for the Northern District of Oklahoma.
U.S. District Judge Claire V. Eagan sentenced Earenest J. Grayson Jr. to 24 months in federal prison to be followed by three years supervised release. Judge Eagan further ordered Grayson to pay restitution in the amount of $904,091, representing the amount Grayson failed to pay over for employment taxes withheld from his employees’ paychecks.
“The U.S. Attorney’s Office along with our partners at IRS-Criminal Investigation will ensure that our tax system is equitably enforced throughout northeastern Oklahoma. Grayson broke the law and purposely did not pay taxes owed, including Social Security and Medicare withholdings that will be critical when his employees eventually retire. Grayson will now pay over the nearly $1 million in taxes he neglected to pay and deal with the legal ramifications handed down by the Court for his crimes,” said U.S. Attorney Trent Shores. “I appreciate the team of Assistant U.S. Attorneys and investigators from the IRS who diligently work these white collar cases and hold offenders accountable for the financial losses that are incurred due to their corrupt actions.”
As the owner and operator of Tulsa-based Zealcon Corporation, Grayson was responsible for withholding, accounting for and paying over to the Internal Revenue Service (IRS) payroll taxes and withholdings due on the wages paid to Zealcon employees. For the period, January 2014 through June of 2016. Grayson caused a total tax loss of approximately $1 million by intentionally not paying to the IRS income, Social Security and Medicare taxes withheld from Zealcon employees’ wages and Social Security and Medicare taxes due from Zealcon on those wages.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shores thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Assistant Chief Andrew Kameros and Assistant U.S. Attorneys Charles McLoughlin and Victor Régal, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Three charged with fraud in connection to Dayton public corruption caseRead the Press Release
DAYTON – Three individuals are facing fraud charges in relation to a public corruption investigation in Dayton.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Joseph Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges, which were unsealed today.
In May, a federal grand jury indicted:
- Steve R. Rauch, 64, of Germantown, – owner, operator and president of a series of companies including Steve Rauch Inc., Rauch Trucking and SRI Inc. that perform demolition, trucking and landfill work;
- Joyce S. Cameron, 71, of Trotwood, – who owned, operated and served as president of Green Star Trucking, Inc., a business that hauls construction materials and demolition debris; and
- James Cameron, 80, of Trotwood, – Joyce Cameron’s husband and Green Star employee.
According to court documents, Rauch, with the assistance of Joyce and James Cameron, fraudulently convinced government entities to award and pay out hundreds of thousands of dollars in demolition contracts.
Rauch paid the Camerons a fee – usually either several thousand dollars or credits against debts owed to Rauch – in exchange for using Green Star’s name on contracts.
Green Star was qualified as a Disadvantaged Business and the Camerons allegedly allowed for Rauch to name Green Star on contracts even though it did not perform the work required of a Disadvantaged Business. In actuality, Rauch’s companies allegedly completed the work and Green Star received a cut of the proceeds.
Joyce or James Cameron allegedly signed paperwork fraudulently certifying that Green Star had performed all of the work consistent with the government contracts. Rauch also allegedly instructed James Cameron to be present at work locations to create the false appearance that Green Star was actually performing work, even though Cameron performed no work on site.
Rauch and Joyce and James Cameron are each charged with one count of conspiracy to commit mail fraud and six counts of mail fraud. Both crimes are punishable by up to 20 years in prison.
In April, a federal grand jury returned indictments against a former Dayton city commissioner, a then current city official and two Dayton businessmen, charging them with fraud and public corruption.
Those charged in that round of indictments include former Dayton city commissioner Joey Williams, former director of Dayton’s Minority Business Assistance Center Roshawn Winburn, Clayton Luckie and Brian Higgins.
Luckie pleaded guilty in July to mail fraud and Williams pleaded guilty in September to accepting a thing of value in connection with a local government.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and the Ohio Auditor of State’s Office, as well as assistant United States Attorneys Brent G. Tabacchi, SaMee Harden and Dominick S. Gerace, who are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
If you have any information related to the schemes alleged above, please contact the FBI’s Dayton Public Corruption Tip Line at 937-291-5222.
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Three Port Everglades Employees and Business Owner Sentenced to Prison for Fraud SchemeRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office announced that Port Everglades employees, William Woessner, 68, of Margate, Florida, David Moore, 43, of Pompano Beach, Florida, and Rajindra Lallharry, 60, of Coral Springs, Florida, and business owner Bryan Zascavage, 57, of Pompano, Florida, were sentenced to prison today for their involvement in a fraud scheme. The defendants had each previously pled guilty to participating in a conspiracy to commit fraud concerning programs receiving federal funds.
According to the court record, including the factual statements in support of the defendants’ guilty pleas, Woessner, Moore, and Lallharry were issued purchase cards or P-cards, which were to be used to buy business related goods and services for Port Everglades. Instead, they utilized the P-cards to engage in schemes to illegally profit from the use of the cards. Zascavage operated a business, Z & Z, Inc., that provided goods and services to the Port. Woessner and Zascavage engaged in a scheme wherein Woessner would direct Zascavage to purchase certain goods. Woessner would pay for the goods using his Port Everglades P-card, but the goods were not sent to Port Everglades. Instead, Woessner utilized the goods at his plumbing company. In addition, Moore and Zascavage engaged in a scheme wherein Zascavage would receive payments for goods ordered by Moore utilizing his Port Everglades P-card. None of the goods would be sent to the Port. Instead, Zascavage and Moore would split the illegally obtained funds. Further, John McGahee and Zascavage engaged in a scheme wherein Zascavage would receive payments for services ordered by McGahee utilizing his Port Everglades P-card. The services ordered by McGahee would not be performed by Zascavage or his company. Zascavage and McGahee would split the illegally obtained funds.
Lallharry’s family owned five separate companies. Lallharry would utilize his P-card to make direct payments to each of the family-owned companies for goods to allegedly be utilized by the Port. The goods were not delivered to the Port. The illegally obtained funds were utilized by Lallharry and his family to pay personal expenses, including approximately $101,790.85 to pay monthly expenses due the Chapter 13 trustee overseeing Lallharry’s bankruptcy.
Lallharry was sentenced by U.S. District Judge William P. Dimitrouleas to 21 months in prison, to be followed by 3 years of supervised release, and was ordered to pay $206,297.74 in restitution (Case No. 19cr60205). After his sentencing, Lallharry was remanded to the custody of the U.S. Marshals Service to begin serving his sentence of imprisonment. Woessner was sentenced by U.S. District Judge Roy K. Altman to 21 months in prison, to be followed by 3 years of supervised release, and was ordered to pay $153,685.88 in restitution (Case No. 19cr60202). Zascavage was sentenced by U.S. District Judge Ursula M. Ungaro to 12 months and 1 day in prison, to be followed by 3 years of supervised release, and was ordered to pay $205,706.90 in restitution (Case No. 19cr60203). Moore was sentenced by Judge Ungaro to 3 months in prison, to be followed by 3 years of supervised release, and was ordered to pay $34,768.86 in restitution (Case No. 19cr60206).
McGahee is scheduled to be sentenced on Nov. 18, 2019 (Case No. 19cr60204).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in connection with this matter. She also thanked the Broward County Sheriff's Office - Public Corruption Unit, Office of the Broward County Auditors, and Port Everglades Department - Port Director's Office for their assistance with the investigation. The case was prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
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
Texas Man Sentenced to Prison for Fraudulent Scheme to Solicit Hundreds of Thousands of Dollars in Contributions to Scam-PACSRead the Press Release
A Texas entrepreneur was sentenced to 36 months in prison today for fraudulently soliciting hundreds of thousands of dollars in political contributions through several scam-PACs that he founded and advertised as supporting candidates for the Office of the President of the United States during the 2016 election cycle.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Christopher H. Combs of the FBI’s San Antonio Division made the announcement.
Kyle Gerald Prall, 40, of Austin, Texas, previously pleaded guilty to one count of mail fraud before U.S. Magistrate Judge Andrew W. Austin of the Western District of Texas. He was sentenced today by U.S. District Court Judge Robert Pitman. In addition to the prison sentence, Prall was ordered to pay $548,428 in restitution and to forfeit $205,496.68 in proceeds obtained from his offense.
According to admissions made in connection with his plea, in 2015 and 2016, Prall created several political committees—including Feel Bern, HC4President and Trump Victory—which he advertised online to solicit contributions purportedly in support of presidential candidates in the 2016 election. Prall advertised that the contributions would be used to support the candidates in various ways, including paying for transportation for voters to the polls; paying for training for volunteers to make phone calls and canvass neighborhoods to support the respective candidates; paying to help voters obtain appropriate identification documents; and making contributions directly to one of the candidates and to other organizations supporting his campaign. In reality, Prall did not intend to, and did not, use the contributions for these purposes and instead transferred much of the money to himself through sham LLC accounts and used the other funds to generate additional contributions to his fraudulent political committees. Specifically, Prall admitted that of the $548,428 in contributions, he transferred $205,496 to himself through sham LLCs that he created for the purpose of moving the money, while contributing less than $5,100 to political causes. Additionally, Prall used the political committees’ debit cards to pay for his personal travel and entertainment expenses, such as travel to Jacksonville, Florida, and Belize; hotel stays in Miami Beach, Florida, and Austin, Texas; and to pay for food, Hookah, alcohol and bottle service, “club dances performed by entertainers,” room service, minibar charges, a deep-tissue massage, and a pet-cleaning fee.
The FBI’s San Antonio Division is investigating the case. Deputy Chief John D. Keller and Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section are prosecuting the case.
Tennessee Medical Doctor and Advanced Practice Registered Nurse Charged in Scheme to Unlawfully Distribute Controlled SubstancesRead the Press Release
A Tennessee medical doctor and an advanced practice registered nurse were charged in an indictment unsealed today for their roles in unlawfully distributing controlled substances.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge Derrick L. Jackson of the Atlanta Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge M.A. “Mo” Myers of the FBI’s Memphis Field Office and Director David B. Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
Hemal V. Mehta, M.D., 49, of Brentwood, Tennessee, and Heather L. Marks, APRN, 36, of Murfreesboro, Tennessee, were charged in an indictment filed Oct. 23, 2019, in the Middle District of Tennessee with one count of conspiracy to unlawfully distribute controlled substances and nine counts of unlawful distribution of controlled substances.
According to the indictment, between 2016 and 2018, Mehta and Marks, whom Mehta supervised, conspired to distribute Schedule II controlled substances, including oxycodone, morphine sulfate and oxymorphone, to patients outside the usual course of professional practice and without a legitimate medical purpose. Mehta and Marks also allegedly dispensed and distributed oxycodone and oxymorphone on various occasions between 2016 and 2018.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, HHS-OIG and TBI investigated the case. Trial Attorney William M. Grady of the Criminal Division’s Fraud Section is prosecuting the case
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit https://www.justice.gov/criminal-vns/case/ARPO for more information.
Tax Preparer Sentenced to Prison for Role in Multi-Million Dollar Tax Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Trixa Belloso Rivas, 55, of Las Vegas, was sentenced today to 14 months in federal prison and ordered to pay $2 million in restitution to the IRS, U.S. Attorney Nicholas A. Trutanich announced.
According to court documents, between August 2008 and May 2019, Rivas owned and operated BR Tax and Immigration Service, a tax preparation business in Las Vegas. As part of the conspiracy, Rivas’ co-conspirators obtained passports from citizens of foreign countries, such as Guatemala and El Salvador, that they could use to file fraudulent tax returns between $2,000 and $6,000. Over the course of about 34 months, Rivas assisted in filing at least 500 false tax returns in the names of more than 300 foreign citizens that caused the IRS to issue approximately $2,000,000 in fraudulent refunds.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Tony Lopez prosecuted the case.
Rivas pleaded guilty in May 2019 to conspiracy to present false claims.
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Tax Preparer Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
WASHINGTON - A resident of Orleans Parish, Louisiana, pleaded guilty today to conspiring to defraud the United States with regard to tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and the U.S. Attorney’s Office of the Eastern District of Louisiana.
According to court documents, Carlanda Allegra Isaac worked for Pelican Income Tax and Bookkeeping Services LLC, located in Bridge City and Kenner, Louisiana, and then later at another tax preparation business called Taxes by J.A.D.A., which was located in New Orleans. Isaac and others conspired to defraud the United States by falsifying client tax returns to include false income, withholding, education credits, in order to fraudulently inflate the clients’ tax refunds. Isaac charged a fee for preparing these returns, which was often deducted from the client’s refund.
When sentenced, Isaac faces a maximum sentence of five years, three years of supervised release, restitution, and other monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and the U.S. Attorney’s Office of the Eastern District of Louisiana praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case.
The case is being prosecuted by Trial Attorney Lauren Castaldi, Department of Justice Tax Division, and Assistant U.S. Attorney Carter Guice.
Tax Preparer Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A resident of Orleans Parish, Louisiana, pleaded guilty today to conspiring to defraud the United States with regard to tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and the U.S. Attorney’s Office of the Eastern District of Louisiana.
According to court documents, Carlanda Allegra Isaac worked for Pelican Income Tax and Bookkeeping Services LLC, located in Bridge City and Kenner, Louisiana, and then later at another tax preparation business called Taxes by J.A.D.A., which was located in New Orleans. Isaac and others conspired to defraud the United States by falsifying client tax returns to include false income, withholding, education credits, in order to fraudulently inflate the clients’ tax refunds. Isaac charged a fee for preparing these returns, which was often deducted from the client’s refund.
When sentenced, Isaac faces a maximum sentence of five years, three years of supervised release, restitution, and other monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and the U.S. Attorney’s Office of the Eastern District of Louisiana praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case.
The case is being prosecuted by Trial Attorney Lauren Castaldi, Department of Justice Tax Division, and Assistant U.S. Attorney Carter Guice.
Superseding Indictment Filed Against Vestavia Hills Doctor on Additional Charges of Producing and Possessing Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A six-count superseding indictment filed in U.S. District Court today charges DR. RONALD TAI YOUNG MOON, JR., of Vestavia Hills, with additional counts of producing and possessing child pornography, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr. Moon is a physical medicine doctor who practices at a clinic called The Industrial Athlete in Birmingham. In June, Moon was indicted on one count of producing child pornography between 2007 and 2010, and one count of possessing child pornography in January of this year. The superseding indictment adds three production counts, including two for producing child pornography in the 1990s, and one for producing child pornography in the early 2000s. The superseding indictment also adds another charge for possessing child pornography in January 2019.
Each count of production of child pornography carries a penalty of 15 to 30 years in prison, and a maximum $250,000 fine. The maximum penalty for each count of possession of child pornography is 20 years in prison and a $250,000 fine.
South Portland Man Sentenced to Prison for Trafficking in Counterfeit Pills and Illegally Possessing a FirearmRead the Press Release
Portland, Maine: A South Portland man was sentenced today in federal court in Portland for holding for sale a counterfeit drug and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge D. Brock Hornby sentenced Colin Harle, 23, to five years in prison and three years of supervised release. Harle pleaded guilty on July 15, 2019.
According to court records, on August 27, 2018, law enforcement officers arrested Harle in South Portland following his attempted sale of counterfeit alprazolam (commonly sold under the brand name Xanax) pills. After Harle’s arrest, officers learned that he had a safe under his control. Officers located the safe in Westbrook and found about 20,000 counterfeit pills, $5,480 in U.S. currency, and a 9 mm pistol with two full magazines.
The Food and Drug Administration’s Forensic Chemistry Center confirmed that alprazolam was present in the pills and that the pills were counterfeit.
FDA’s Office of Criminal Investigations and the Maine Drug Enforcement Agency investigated the case.
Social Media Posts Lead to Federal Prison SentenceRead the Press Release
A Waterloo man who was observed on two separate occasions with guns on social media by the police was sentenced today to more than a year in federal prison.
Jumonie Dontez Wilson, age 18, from Waterloo, Iowa, received the prison term after a June 17, 2019, guilty plea to possession of a firearm by a drug user.
In a plea agreement, Wilson admitted he possessed guns on two separate occasions in January 2019, at a time he was a marijuana user. On both occasions, Wilson was observed on social media possessing a gun just prior to police finding him with the gun. Other social media posts showed Wilson in possession of and using marijuana. During the first incident, Wilson threw a gun out the window of his residence as officers approached to conduct a search. At sentencing, the court found that Wilson possessed the firearms in connection with the crimes of possessing a controlled substance with the intent to deliver and carrying weapons.
Wilson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wilson was sentenced to 21 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.
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.
Wilson 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 Emily K. Nydle and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cedar Falls Police Department, and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-02018.
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Shelby County Man Sentenced for Failure to Register in the State of Alabama as a Sex OffenderRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Shelby County man on a charge of failure to register as a sex offender, announced Northern District of Alabama United States Attorney Jay E. Town and United States Marshal Martin Keely.
United States District Judge Abdul K. Kallon sentenced RICKY DION ODOM, 47, of Shelby County, to 24 months incarceration for failure to register as a sex offender to run consecutive to Odom’s probation revocation in Louisiana. Odom pled guilty in July 2019.
“Failure to register as a sex offender is not only a matter of public safety, but it is our primary mechanism by which every member of the community can learn of sex offenders living among us.,” Town said. “Sex offenders who flee to another state, and violate the law by not registering will be caught, will be prosecuted, and will face incarceration. My office will continue to put the safety of children at the forefront, now more than ever.”
According to court documents, Odom is required to register under the Sex Offender Registration and Notification Act (SORNA). On or about November 1, 2018 and continuing until on or about February 4, 2019, Odom traveled from the State of Louisiana to the State of Alabama and knowingly failed to register as required by SORNA.
In addition to the term of imprisonment imposed, Odom was ordered to serve five years of supervised release.
United States Marshal Service for the Northern District of Alabama, Middle District of Alabama, Eastern District of Louisiana, Northern District of Florida, and Gulf Coast Regional Fugitive Task Force investigated the case along with the assistance of St. Tammany Parish (LA) Sheriff’s Office, Okaloosa County (FL) Sheriff’s Office, Jackson County (AL) Sheriff’s Office, Shelby County (AL) Sheriff’s Office, and the Alabama Department of Conservation and Natural Resources, which Assistant United States Attorney R. Leann White prosecuted.
Second Muskogee Woman Pleads Guilty to Witness TamperingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jasmine Dazha McCoy, age 23, of Muskogee, Oklahoma, entered a guilty plea to Tampering with a Witness in violation of Title 18, United States Code, Sections 1512(b)(1), punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The Information alleges that on or about the 31st day of January, 2019, in the Eastern District of Oklahoma, the defendant did knowingly attempt to intimidate and corruptly persuade B.B. by providing confidential information identifying B.B. as the informant on a search warrant to the subject of the search warrant with the intent to influence, delay, and prevent the testimony of B.B. in an official proceeding, the criminal prosecution of the subject of the search warrant.
The charges arose from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Muskogee County Sheriff’s Office, and the Muskogee Police Department. Additionally, many different agencies that are members of the DEA High Intensity Drug Trafficking Areas Task Force (“HIDTA”) and the FBI Safe Trails Task Force played important roles in the investigation. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
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.
Assistant United States Attorney Rob Wallace represented the United States.
Rochester Woman Pleads Guilty for Role in Greece Liquor Store RobberyRead 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 Kayla Dade, 20, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to Hobbs Act robbery. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that on January 23, 2019, the defendant drove co-defendants Lavon Wims and Malik Lott to the vicinity of Jordy’s Spirits at 3725 Dewey Avenue in Greece, NY. Dade waited in the car while Wims and Lott entered Jordy’s Spirits. Once inside, Wims pointed what appeared to be a handgun at a store employee and demanded money. Lott assisted Wims in removing cash from the register, and they left with approximately $350. Wims and Lott then returned to Dade’s car, and she drove them away from the area of the robbery. The defendant knew that Wims had committed robberies prior to January 23, 2019, and previously possessed a firearm.
Co-defendants Lott and Wims were previously convicted for their roles in the robbery at Jordy’s Spirits, as well other robberies in the Rochester area, and are awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, Rochester Area Major Crimes Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for January 29, 2020, at 2:30 p.m. before Judge Wolford.
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Rochester Man Pleads Guilty for His Role in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gamaliett Rosario-Martinez, 24, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiring to possess with intent to distribute and distribute quantities of fentanyl, heroin, crack cocaine, and cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that Rosario-Martinez was a member of a drug trafficking organization led by co-defendant Jose Casado. Between December 2017 and May 15, 2019, the organization distributed large quantities of drugs out of houses located on Clifford Avenue and Treyer Street in Rochester, NY.Casado obtained bulk quantities of fentanyl, heroin, and crack cocaine, which he and other members of the conspiracy would then “bag-up” or package for sale to individual drug users. Drug runners, including the defendant, would deliver the drugs to customers in exchange for cash. Casado or another member of the organization would collect the proceeds of the drugs sales from the drug runners.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 17, 2020, at 2:00 p.m. before Judge Geraci.
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Pittsburgh Man Charged with Drug Law ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Montay Clancy, 23, as the sole defendant.
According to the Indictment, on October 3, 2019, Clancy was found to be in possession of at least 500 grams of cocaine, a Schedule II controlled substance, and a mixture containing a detectable amount of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not less than five years and not more than 40 years in prison, a fine of not more than $5,000,000.00, a period of supervised release of at least three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Michael Leo Ivory is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pinellas County Man Pleads Guilty to Trafficking in Counterfeit Sports JerseysRead the Press Release
Tampa, Florida – Thomas Walker (74, Clearwater) has pleaded guilty to trafficking in counterfeit sports jerseys. Walker faces a maximum penalty of 10 years in federal prison. His sentencing date is not yet scheduled.
According to the plea agreement and facts presented at the plea hearing, Walker owned and operated a business called “Tim’s Sports Cards Plus,” which he operated from a booth at the Oldsmar Flea Market. Among the items sold were numerous sports jerseys bearing the counterfeit trademarks of purported sports organizations, including the National Football League (NFL), the National Hockey League (NHL), and Major League Baseball (MLB).
On January 27, 2017, federal law enforcement agents went to Walker’s booth at the Oldsmar Flea Market, spoke with him, and seized 699 jerseys that were for sale and bearing counterfeit NFL marks. The agents also went to Walker’s home and seized over 1,500 additional counterfeit jerseys from all three purported sports leagues. During an interview with agents, Walker admitted that he had purchased the counterfeit jerseys from a supplier located in China.
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Pelham Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ALBANY, Ga. — A Pelham, Georgia man has pleaded guilty to federal child pornography charges, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Michael S. King, 41, of Pelham, entered a guilty plea today to count one of his indictment charging him with distribution of child pornography before U.S. District Judge Leslie Gardner. The defendant faces a maximum sentence of twenty years in prison, a maximum fine of $250,000 and a term of supervised release of up to life for his crime. A sentencing date has not been scheduled.
Mr. King’s illegal activity was discovered on August 13, 2018 during an investigation conducted by Homeland Security Investigations (HSI). Using the name “SilentDream1977”, the defendant uploaded and distributed images of child pornography on the Kik App, an online instant messaging application. The defendant also used the name “Silent Dream 78” on the Kik App. HSI agents, with assistance from the Pelham Police Department, executed a search warrant at the defendant’s residence on January 17, 2019. Mr. King had two desktop computers, a laptop, iPad, iPhone and two thumb drives, all containing child pornography. Mr. King admitted he had been possessing, downloading and viewing child pornography “for forever.”
“The distribution of child pornography online is in our own backyards, not just in a distant city in another country,” said Charlie Peeler, the U.S. Attorney. “These are not nameless victims, but real children who are being horribly abused and hurt. These children are victimized every time the images are shared and viewed. We will prosecute child pornography distributors to the fullest extent allowed by law. I want to thank HSI and the Pelham Police Department for their work protecting children and tracking down child perpetrators.”
“While shutting down this defendant’s heinous activity will never bring back the innocence that these children lost, it should serve as a message that these types of criminals cannot hide behind the anonymity of a computer screen,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Alabama and Georgia. “HSI and its law enforcement partners throughout the country have the tools to identify and shutdown these perpetrators who re-victimize these children every time they share these disgusting images.”
The case was investigated by HSI and the Pelham Police Department. Assistant U.S. Attorney Jim Crane is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Owners of Greensboro Temporary Staffing Firms Indicted for Employment Tax FraudRead the Press Release
WASHINGTON – A federal grand jury indicted two Greensboro, North Carolina, women yesterday with conspiring to defraud the United States and for failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney for the Middle District of North Carolina Matthew G.T. Martin.
According to the indictment, Rebecca Adams and her daughter Elizabeth Wood, who operated a temporary staffing business in Greensboro, conspired to defraud the government by withholding taxes from employees’ paychecks and failing to pay those taxes over to the Internal Revenue Service (IRS). Adams and Wood also allegedly created Forms W-2 for the staffing business employees but failed to file these forms with the government as they were required to do. Instead of paying the taxes they withheld from employees, the indictment alleges that Adams and Wood used the funds to pay for personal expenses, such as a personal maid, personal landscaping services, and pet spa services. The staffing business allegedly changed names twice, even though it did not otherwise change its actual business operations. Adams was also charged with tax evasion based on her allegedly evading payment of more than $400,000 in previously assessed employment taxes and penalties to the IRS.
If convicted, Adams faces a statutory maximum sentence of five years in prison for each charge of conspiracy, employment tax fraud, and tax evasion. Wood faces a statutory maximum sentence of five years in prison for each charge of conspiracy and employment tax fraud. They also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant United States Attorney Frank Chut, who are prosecuting the case.
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Owners of Greensboro Temporary Staffing Firms Indicted for Employment Tax FraudRead the Press Release
A federal grand jury indicted two Greensboro, North Carolina, women yesterday with conspiring to defraud the United States and for failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the Middle District of North Carolina Matthew G.T. Martin.
According to the indictment, Rebecca Adams and her daughter Elizabeth Wood, who operated a temporary staffing business in Greensboro, conspired to defraud the government by withholding taxes from employees’ paychecks and failing to pay those taxes over to the Internal Revenue Service (IRS). Adams and Wood also allegedly created Forms W-2 for the staffing business employees but failed to file these forms with the government as they were required to do. Instead of paying the taxes they withheld from employees, the indictment alleges that Adams and Wood used the funds to pay for personal expenses, such as a personal maid, personal landscaping services, and pet spa services. The staffing business allegedly changed names twice, even though it did not otherwise change its actual business operations. Adams was also charged with tax evasion based on her allegedly evading payment of more than $400,000 in previously assessed employment taxes and penalties to the IRS.
If convicted, Adams faces a statutory maximum sentence of five years in prison for each charge of conspiracy, employment tax fraud, and tax evasion. Wood faces a statutory maximum sentence of five years in prison for each charge of conspiracy and employment tax fraud. They also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant United States Attorney Frank Chut, who are prosecuting the case.
Owner of Tulsa Software Company Sentenced to Prison for Employment Tax FraudRead the Press Release
A computer software development company owner was sentenced to 24 months in prison today for failing to account for and pay over employment taxes withheld from his employees’ wages, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to documents and information provided to the Court, as the owner and operator of Tulsa-based Zealcon Corporation, Earenest J. Grayson Jr. was responsible for withholding, and paying over to the Internal Revenue Service (IRS) payroll taxes on the wages paid to Zealcon employees. For the period January 2014 through June of 2016, Grayson caused a tax loss of approximately $1 million by intentionally not paying to the IRS income and social security taxes withheld from Zealcon employees’ wages and the employer portion of social security taxes due from Zealcon on those wages.
In addition to prison, Grayson was ordered to pay restitution to the IRS in the amount of $904,091, and to serve three years of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shores thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Assistant Chief Andrew Kameros and Assistant U.S. Attorneys Charles McLoughlin and Victor Regal, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Ohio Glass Company Owner Sentenced to Prison for Not Paying Employment TaxesRead the Press Release
The owner of a Greenville, Ohio, glass company was sentenced to 14 months in prison today for failing to truthfully account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to information and documents provided to the court, Gail Cooper, 64, of Greenville, was the owner of Greenville Architectural Glass (GAG), which primarily installed glass in commercial and residential buildings for clients in Ohio. GAG paid wages to its employees during the years 2013 through 2015, and as the person responsible for GAG’s finances, Cooper was required to withhold federal income taxes and Social Security and Medicare taxes from the employees’ wages and pay those amounts over to the Internal Revenue Service (IRS). Cooper was also required to file quarterly employment tax returns with the IRS. Although Cooper caused GAG to withhold taxes from employees’ wages, she neither filed the required quarterly returns for the first quarter of 2013 through the second quarter of 2015, nor paid the withheld amounts over to the IRS. Cooper also failed to pay over to the IRS unemployment taxes. In all, Cooper caused more than $280,000 in payroll taxes not to be paid.
Cooper also filed false individual income tax returns for 2008, 2009, and 2010, on which she understated GAG’s gross receipts and overstated its expenses. Cooper caused GAG’s bookkeeper to manipulate and delete entries in the company’s accounting records. Specifically, she directed the bookkeeper to delete invoices from the software after GAG received payment from a client to make it appear as if GAG had not received the payment. Cooper also paid personal expenses with business funds, including utility bills for her residence and rental properties, and caused these to be classified as business expenses. After filing fraudulent returns for 2008-2010, Cooper did not file any individual income tax returns for the next several years. In total, Cooper’s conduct caused a tax loss of $587,516 to the United States.
In addition to the term of imprisonment, U.S. District Judge Thomas M. Rose ordered Cooper to serve two years of supervised release and pay restitution to the IRS in the amount of $659,262.39.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their assistance in this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Woman Sentenced for Role in Cocaine Distribution ConspiracyRead the Press Release
PITTSBURGH - A resident of North Carolina has been sentenced in federal court to one day of incarceration followed by three years of supervised release on her conviction of conspiracy to distribute cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Joelle Hollis, age 31, of North Carolina.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Joelle Hollis conspired, with her boyfriend, Jewell Hall, among others, to distribute cocaine, primarily in and around the Greenway Projects. Hollis also obtained sensitive law enforcement information from a friend who worked in the Allegheny County Sheriff’s Office and used the information to attempt to protect the conspiracy from detection by law enforcement.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Hollis.
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.
Norman Bank Robbery Suspect ArrestedRead the Press Release
OKLAHOMA CITY – CLAYTON LEROY BOWER, 43, of Norman, has been arrested for robbing Chase Bank in Norman, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint filed on October 28, 2019, Bower entered the Chase Bank branch near Robinson Street and 36th Avenue late in the day on Friday, October 25. He allegedly handed a plastic grocery sack and a demand note to a teller, who filled the sack with approximately $2,730.00. After bank surveillance photos were published in the media, law enforcement received information that pointed to Bower. He was arrested at his Norman apartment on October 27 and made an initial appearance today before U.S. Magistrate Judge Shon T. Erwin.
If found guilty of bank robbery, Bower faces a maximum potential penalty of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution.
This case is a result of an investigation by the Federal Bureau of Investigation—Oklahoma City Division and the Norman Police Department. Assistant U.S. Attorney Edward J. Kumiega is prosecuting the case.
The public is reminded that this charge is merely an allegation and that Bower is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
NDTX Round-Up October 29, 2019Read the Press Release
GUILTY PLEA – Rasheeda Chester
On October 22, Rasheeda Chester, 20, pled guilty to possession with the intent to distribute marijuana. Chester and her coconspirators transported 128 pounds of marijuana sealed in vacuum bags from San Francisco International Airport to Dallas Love Field Airport. Chester was also found to be in the possession of $5,280 that constituted the proceeds of illegal drug trafficking. She faces up to 5 years in federal custody. This case was investigated by the Dallas Police Department and the Federal Bureau of Investigation and is prosecuted by AUSA Rebekah Ricketts.
GUILTY PLEA – Alma Jean Gilbert
On October 22, Alma Jean Gilbert, 52, pled guilty to aiding and assisting in the preparation of a fraudulent tax return. Gilbert owned a tax preparation business, where she hired employees to prepare taxes and obtained Electronic Filer Identification Numbers from the Internal Revenue Service. For five years, Gilbert and her employees falsified credits and deductions on customers’ tax returns, on some occasions up to an $11,000 value. Gilbert faces up to 6 years in federal custody. This case was investigated by the Internal Revenue Service – Criminal Investigations and is prosecuted by AUSA Christopher Stokes.
GUILTY PLEA – Ira Marsh
On October 22, Ira Marsh, 42, pled guilty to possession with the intent to distribute marijuana and possession of a firearm by a convicted felon. Dallas Police Department officers stopped Marsh’s car for temporary tags that belonged to another vehicle. Officers smelled marijuana and saw a green leafy substance in plain view. After searching the car, officers found more marijuana and a pistol, despite Marsh’s previous imprisonment for a sentence of over 1 year. Marsh faces up to 12 years in federal custody. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Dallas Police Department and is prosecuted by AUSA Damien Diggs.
SENTENCING – Armando Avitia
On October 21, Armando Avitia, was sentenced to 9 years and 2 months in federal custody for possession of heroin with the intent to distribute. Grand Prairie Police Department Narcotics detectives pulled over a vehicle after smelling marijuana, which the passengers confirmed purchasing from Avitia’s residence. While executing a search warrant at the residence, officers seized heroin, methamphetamine, cocaine, marijuana and several firearms. This case was investigated by the Grand Prairie Police Department and the Drug Enforcement Administration and was prosecuted by AUSA Myria Boehm.
SENTENCING – Craig Demond Campbell
On October 21, Craig Demond Campbell was sentenced to 3 years and 1 month in federal custody for stealing firearms from a federal firearm licensee. Campbell and his coconspirators drove to Alvarado to rob Crazy Gun Dealer store. They cut a hole in the side of the store, stole 17 firearms, and transported them back to an apartment in Dallas. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by AUSA Kenneth Coffin.
SENTENCING – Rodney Antwon Lewis
On October 23, Rodney Antwon Lewis, 34, was sentenced to 17 years in federal custody for the crimes of interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. Lewis committed a series of robberies over the years at Family Dollar Stores, a Jack in the Box, a Schlotzky’s, and a KFC. In most instances, Lewis would purchase a small item with cash. When the clerk opened the register, Lewis would threatened them with a revolver hidden in his pants. This case was investigated by the Federal Bureau of Investigation and was prosecuted by AUSA Shane Read.
Muskogee Woman Pleads Guilty to Witness TamperingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alison Rachel Morgan, age 28, of Muskogee, Oklahoma, entered a guilty plea to Tampering with a Witness in violation of Title 18, United States Code, Sections 1512(b)(1), punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The Information alleges that on or about the 31st day of January, 2019, in the Eastern District of Oklahoma, the defendant did knowingly attempt to intimidate and corruptly persuade B.B. by providing confidential information identifying B.B. as the informant on a search warrant to the subject of the search warrant with the intent to influence, delay, and prevent the testimony of B.B. in an official proceeding, the criminal prosecution of the subject of the search warrant.
The charges arose from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Muskogee County Sheriff’s Office, and the Muskogee Police Department. Additionally, many different agencies that are members of the DEA High Intensity Drug Trafficking Areas Task Force (“HIDTA”) and the FBI Safe Trails Task Force played important roles in the investigation. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
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.
Assistant United States Attorney Rob Wallace represented the United States.
Muskogee Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Drew Alexander Ragsdale, a/k/a “Drew Down”, age 21, of Muskogee, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Superseding Indictment alleges that on or about August 18, 2018, within the Eastern District of Oklahoma, the defendant, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate and foreign commerce.
The charges arose from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Muskogee County Sheriff’s Office, and the Muskogee Police Department. Additionally, many different agencies that are members of the DEA High Intensity Drug Trafficking Areas Task Force (“HIDTA”) and the FBI Safe Trails Task Force played important roles in the investigation. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
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.
Assistant United States Attorney Rob Wallace represented the United States.
Muskogee Man Pleads Guilty to Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cornelious Joshua Jones, a/k/a “Corn”, age 30, of Muskogee, 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; and to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Superseding Indictment alleges that on or about January 21, 2019, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 5 grams or more of a mixture or substance containing a detectable amount of methamphetamine (actual), a Schedule II controlled substance.
The Superseding Indictment further alleges that on or about January 21, 2019, within the Eastern District of Oklahoma, the defendant, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Muskogee County Sheriff’s Office, and the Muskogee Police Department. Additionally, many different agencies that are members of the DEA High Intensity Drug Trafficking Areas Task Force (“HIDTA”) and the FBI Safe Trails Task Force played important roles in the investigation. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
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.
Assistant United States Attorney Rob Wallace represented the United States.
Muskogee 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 Torrell Dshaun Bogar, a/k/a “T Real”, age 21, of Muskogee, 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 Information alleges that Between on or about August 4, 2018, and on or about August 15, 2018, within the Eastern District of Oklahoma, defendant, Torrell Dshaun Bogar, a/k/a “T-Real”, 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 a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Muskogee County Sheriff’s Office, and the Muskogee Police Department. Additionally, many different agencies that are members of the DEA High Intensity Drug Trafficking Areas Task Force (“HIDTA”) and the FBI Safe Trails Task Force played important roles in the investigation. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
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.
Assistant United States Attorney Rob Wallace represented the United States.
Muskogee 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 Christopher Michael Whitaker, Sr., a/k/a “Unc”, age 44, of Muskogee, 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 Information alleges that between on or about July 24, 2018, and on or about August 20, 2018, within the Eastern District of Oklahoma, defendant, Christopher Michael Whitaker, Sr., a/k/a “Unc”, 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 a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Muskogee County Sheriff’s Office, and the Muskogee Police Department. Additionally, many different agencies that are members of the DEA High Intensity Drug Trafficking Areas Task Force (“HIDTA”) and the FBI Safe Trails Task Force played important roles in the investigation. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
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.
Assistant United States Attorney Rob Wallace represented the United States.
Montgomery County Karate Teacher Sentenced to 6 ½ Years in Prison for Abusing Teenage StudentsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Evan Burgess, 28, of Blue Bell, Pennsylvania was sentenced to 78 months’ imprisonment followed by fifteen years of supervised release by the United States District Judge Timothy J. Savage. The defendant will be required to register as a sex offender as a result of this conviction.
The defendant, a former karate instructor at Destolfo’s Premier Martial Arts in Conshohocken, previously pleaded guilty in June 2019 to two counts of traveling in interstate commerce to engage in illicit sexual conduct with two minors, who were his teenage karate students at the time of the incidents. These incidents occurred while the defendant and his victims were attending karate tournaments in August 2016 in National Harbor, Maryland and in September 2014 in East Elmhurst, New York.
“Burgess took advantage of his position of trust as an instructor of young men to abuse them – sometimes brazenly while other adults were in the room or nearby,” said U.S. Attorney McSwain. “Child abuse and exploitation are heinous crimes which my Office takes very seriously. Burgess will now pay for his crimes behind bars where he belongs.”
The case was investigated by the FBI and Whitpain Township Police, and is being prosecuted by Assistant United States Attorney Kelly Harrell.
Miami, Florida Man Pleads Guilty to Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced Yanexy Ricardo Garcia, age 33, of Miami, Florida, entered a guilty plea to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 1343, punishable by not more than 30 years imprisonment, a fine up to $1,000,000.00, or both.
The Superseding Indictment alleges that in or about November 2017, to on or about March 27, 2018, in the Eastern District of Oklahoma and elsewhere, the defendant, knowingly and willfully combined, conspired, confederated and agreed with other persons, known and unknown to the Grand Jury, to commit an offense of Wire Fraud.
The charges arose from an investigation by the Lighthorse Police Department and the United States Secret Service.
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.
Assistant United States Attorney Shannon Henson represented the United States.
Miami Business Owner Pleads Guilty to Employment Tax FraudRead the Press Release
A Miami, Florida, business owner pleaded guilty today to failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents, between 2002 and 2017, Ricardo Betancourt owned and operated multiple parcel delivery businesses in the South Florida area. Betancourt’s businesses earned gross revenues of more than $100 million.
Through his businesses, Betancourt employed hundreds of employees and was responsible for collecting and paying over to the Internal Revenue Service (IRS) the taxes withheld from employees’ paychecks. Betancourt withheld payroll taxes from his employees, but he deliberately failed to pay over those withholdings and other associated taxes to the IRS, despite his obligation to do so. In 2013 and 2014, Betancourt did not pay over approximately 97 percent of the federal employment taxes he withheld from his employees. In 2015 and 2016, Betancourt did not pay over any of the federal employment taxes he withheld from his employees. For the quarter ending December 2016, Betancourt admitted that he failed to truthfully account for and pay over payroll taxes of approximately $727,478.
Sentencing is scheduled for Feb. 12, 2020. Betancourt faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Michael Boteler and Assistant Chief Charles Edgar of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
McAlester Man Pleads Guilty to Heroin DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darron Ray Aldridge, age 41, of McAlester, Oklahoma, entered a guilty plea to Distribution Of Heroin in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 2, punishable by imprisonment for not more than 20 years.
The Information alleges that on or about December 16, 2018, in the Eastern District of Oklahoma, the defendant, Darron Ray Aldridge, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance. As a part of its case, the Government presented evidence that the defendant distributed the heroin to A.B. and that A.B. died after ingesting the heroin.
The charges arose from an investigation by the McAlester Police Department and the Drug Enforcement Administration.
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.
Assistant United States Attorney Sarah McAmis represented the United States.
Marysville Woman Sentenced to One Year and A Day of Imprisonment for Forging 164 Opioid PrescriptionsRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Belinda Dietrich, age 63, of Marysville, Pennsylvania, was sentenced on October 28, 2019, by Senior U.S. District Court Judge Sylvia H. Rambo to one year and a day in prison followed by three years of supervised release, for forging the signature of a dentist on 164 prescriptions for opioid drugs.
According to United States Attorney David J. Freed, Dietrich pleaded guilty before Judge Rambo in April 2019, to one count of distributing a controlled substance and one count of making false statements in health care matters. Dietrich, a former receptionist for a solo dental practitioner in Harrisburg, forged the signature of her employer on a blank prescription form on February 13, 2017, for oxycodone pills for her mother, a Medicare beneficiary, who was not a patient of the dentist. Dietrich then had the prescription filled at a Harrisburg area pharmacy and received 24 oxycodone pills, who then converted the drugs to her own use. The pharmacy billed the cost of the oxycodone pills to Medicare, which paid the claim.
Dietrich’s forgeries were not limited to just one prescription. Between February 17, 2016 and August 2017, Dietrich forged 164 prescriptions for oxycodone and hydrocodone. Dietrich filled out 10 of the bogus prescriptions for herself; the rest were made out to the names of 11 friends and family, who then filled the prescriptions at local pharmacies and shared the controlled substances among themselves. All together, more than 5,022 oxycodone and hydrocodone pill were obtained in this manner. All 11 individuals were prosecuted by the US Attorney’s Office for their role in the forged prescription scheme.
Judge Rambo ordered Dietrich to begin service of her sentence on January 6, 2020
The case was investigated by the Harrisburg Offices of the Drug Enforcement Administration, Diversion Division, and the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services. Assistant U.S. Attorney Kim Douglas Daniel prosecuted the case.
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Man sentenced for stealing more than $300,000 as part of a healthcare fraud schemeRead the Press Release
ATLANTA - Michael Bang has been sentenced for defrauding the Colorado Public Employees Retirement Association’s (“COPERA”) health insurance plan, called PERACare.
“Bang exploited a public entity that was at the same time providing him with medical and other benefits,” said U.S. Attorney Byung J. “BJay” Pak. “His scheme depleted the healthcare resources available to other retirees and cost the public hundreds of thousands of dollars.”
“Bang falsified prescriptions in order to generate illicit profits at the expense of retirees and tax payers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing will not only hold him accountable for those actions but will serve as a reminder to others that the FBI will pursue any individual who abuses our health care system.”
According to U.S. Attorney Pak, the charges and other information presented in court: As part of the healthcare fraud scheme, Bang, who at the time was a resident of Atlanta, sought reimbursement for medications through the submission of fraudulent reimbursement forms for medication that he was either not receiving or that was more expensive than the medications he was receiving. Bang’s scheme involved three Atlanta-area pharmacies.
PERACare’s prescription benefits were administered by Express Scripts. Over more than two years, Bang submitted fraudulent reimbursement claims to Express Scripts, including forms with forged pharmacist signatures, forms for medications that Bang never received, and forms claiming out-of-pocket expenses that Bang never actually incurred. According to pharmacy records, Bang paid a total of approximately $3,500 for prescription medications, while bank records show Bang received more than $180,000 in prescription drug reimbursements from Express Scripts during the same period. Bang received more than $300,000 from COPERA in reimbursements to which he was not entitled.
Michael Bang, 58, of Antioch, California, has been sentenced to one year, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $306,179.28. Bang was convicted on these charges on August 5, 2019, after he pleaded guilty.
The Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorneys Ryan Huschka and Alison Prout prosecuted 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.
Luzerne County Man Sentenced to 40 Months’ Imprisonment for Unlawfully Possessing A Firearm and Ammunition as A Convicted FelonRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rodney Miles, age 29, of Edwardsville, Pennsylvania, was sentenced on October 28, 2019, by Senior U.S. District Court Judge James M. Munley to 40 months’ imprisonment followed by three years on supervised release for unlawfully possessing a firearm as a convicted felon.
According to United States Attorney David J. Freed, Miles admitted to possessing a .380 caliber handgun and ammunition on October 22, 2014, at a residence in Edwardsville. At the time he possessed the firearm and ammunition, Miles had a previous conviction for conspiracy to commit burglary.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania State Police, and the Kingston Police Department. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Luzerne County Man Guilty of Receiving Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Barratt, age 39, of Sugarloaf Township, Pennsylvania, pleaded guilty on October 28, 2019, to receiving child pornography before Senior U.S. District Court Judge James M. Munley.
According to United States Attorney David J. Freed, Barratt admitted that he used his cell phone and computer to receive images and videos of child pornography from websites on the internet. Barratt committed the offense between April 2018 and March 5, 2019, in Luzerne County.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for January 29, 2020.
Barratt was indicted by a federal grand jury in June 2019, as a result of an investigation conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Luzerne County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
The maximum penalty under federal law for the offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of five years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Laredo grand jury charges multiple people with drug, ammo and immigration crimesRead the Press Release
LAREDO, Texas – Four people face up to life in prison on recent drug charges involving meth following the return of several Laredo federal indictments, announced U.S. Attorney Ryan K. Patrick. Two men face charges for trafficking a large amount of marijuana and ammunition, while four others were allegedly involved in the transportation of illegal aliens.
All were originally charged via criminal complaints and are currently in custody. Three are set to appear before U.S. Magistrate Judge Sam Sheldon at 1 p.m. today, while others are scheduled for Oct. 31 at 1 p.m. The Laredo grand jury returned the indictments Oct. 22.
Mexican nationals Nicolas De La Garza Salinas, 50, and Miguel Angel Flores Diaz, 34; and Monica Christine Canales Rodriguez, 52, Dallas, are all charged in separate but similar cases. Each is charged with one count of conspiracy as well as importation of meth. Rodriguez also faces a third count of importing heroin. Two more cases against Mexican national Ramces Chavez-Gomez, 30, and Jose Gonzalo Ojeda, 24, Laredo, allege conspiracy and possession with intent to distribute multiple kilogram quantities of meth and marijuana, respectively. The grand jury returned a fifth indictment against Julio Cesar Vega-Amaral, 42, for smuggling ammunition into the country.
Clarence J. Lee, 60, Ellis L. Boston, 47, and Julie Perez, 33, all of San Antonio, are charged together, while the final indictment charges Sebastian Mosley, 48, Tyler. These four are all charged with conspiracy to transport illegal aliens.
On Sept. 25, Salinas allegedly attempted to entered the United States through the Lincoln-Juarez International Bridge in Laredo. The charges allege that during inspection, authorities soon discovered approximately 31.64 kilograms of a white liquid substance that tested positive for meth concealed within the gas tank.
Flores Diaz allegedly entered the United States on that same day, but at the Colombia Solidarity Bridge in Laredo, driving a tractor trailer. Authorities soon discovered anomalies in the cabin during a vehicle scan, according to the charges. The indictment alleges officials recovered 20 bundles of meth, weighing approximately 20.12 kilograms with an estimated value of more than $100,000.
Similarly, a third case alleges Rodriguez entered the United States at the Lincoln-Juarez Port of Entry in Laredo Sept. 28, driving a Toyota Four Runner. There, law enforcement noticed its four tires had anomalies and, upon inspection, found a total of 24 bundles of heroin and meth, weighing approximately 48.82 kilograms and 14.94 kilograms respectively, according to the charges. The drugs are allegedly valued at more than $1.3 million.
According to the indictment against Chavez-Gomez, Nuevo Laredo, Tamaulipas, Mexico, he attempted to drive his SUV through a Laredo checkpoint Oct. 5. Upon arrival, a K-9 alerted to the presence of narcotics, at which time authorities conducted an x-ray scan which revealed a hidden compartment near the rear seats of the vehicle, according to the charges. The compartment allegedly contained 20 bundles of meth that weighed approximately 36.3 kilos with a street value of more than $250,000.
In another separate matter, law enforcement allegedly observed six individuals carrying bundles near the Rio Grande River in Laredo July 18. The charges allege someone was driving a pickup truck towards the river. The driver, believed to be Ojeda, allegedly absconded on foot. The complaint alleges that authorities apprehended him and recovered 480 pounds of marijuana from that truck worth more than $380,000.
The grand jury indicted Vega-Amaral for smuggling ammunition via the Lincoln Juarez Bridge, Sept. 23. Law enforcement conducted an inspection of his vehicle, at which time they allegedly discovered approximately 4,300 rounds of various caliber ammunition. The charges allege it was concealed inside a speaker box and under a spare tire in the trunk of the vehicle.
Lee, Boston and Perez are charged together with conspiracy to transport illegal aliens. The criminal complaint alleges Lee attempted to drive a commercial truck through a Texas checkpoint west of Bruni. During inspection, a K-9 allegedly alerted to the presence of persons in the cargo area of the truck. An x-ray scan revealed the silhouettes of humans in the rear of the truck, according to the charges. Upon further inspection, authorities allegedly discovered a compartment hidden by a “false wall” with a small door that some utility appliances were blocking. The charges allege they eventually found 24 Mexican citizens in that compartment which had a temperature of 94 degrees. Several of those inside were allegedly sweating profusely and gasping for air. Boston and Perez had allegedly recruited Lee and had driven ahead of him through the checkpoint, acting as a scout vehicle for him.
Finally, Mosley allegedly conspired to transport illegal aliens. On Sept. 27, he attempted to cross a checkpoint driving his tractor that was towing a refrigerated trailer, according the complaint against him. During inspection, authorities allegedly noticed that two different temperature settings were displayed. Further inspection revealed he had 42 undocumented aliens inside the trailer, according to the charges.
Salinas, Diaz, Rodriguez, Chavez-Gomez all face up to life in prison if convicted as well as a maximum $10 million fine. Ojeda’s maximum sentence, upon conviction, carries a potential 40 years of imprisonment and a $5 million fine, while the remaining four could serve up to 10 years and pay up to $250,000.
Immigration and Customs Enforcement’s Homeland Security Investigations (ICE) and Customs and Border Protection conducted the investigations of Salinas, Diaz and Rodriguez, while the Drug Enforcement Administration, along with Border Patrol (BP) worked on the Chavez-Gomez and Ojeda matters. ICE also investigated the cases against the remaining four individuals with the assistance of BP.
Assistant U.S. Attorneys Brandon Scott Bowling, Brian Bajew, Jennifer Day, Paul A. Harrison and Yoona Lim are prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lakeland Man Sentenced to 30 Months for Possessing Firearm and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Solease Asiman Babb (32, Lakeland) to 30 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court ordered Babb to forfeit the firearm and ammunition, and to serve a three-year term of supervised release following his release from prison. Babb had pleaded guilty on July 24, 2019.
According to court documents, officers from the Lakeland Police Department executed a search warrant at Babb’s home. Inside, detectives found a stolen, semi-automatic firearm, nine rounds of ammunition, and various controlled substances, including cocaine, marijuana, methamphetamine, and MDMA. In addition, the officers found several cellphones, digital scales, clear plastic bags, and a vacuum sealer. Babb admitted that the firearm and ammunition belonged to him. Babb, who had previously been convicted of a felony, is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney David C. Waterman.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Kingston Man Sentenced to 16 Years’ Imprisonment for Armed Bank RobberyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shawn Cavanaugh, age 38, of Kingston, Pennsylvania, was sentenced on October 25, 2019, by United States District Court Judge Robert D. Mariani to 192 months’ imprisonment followed by four years of supervised release, for an armed bank robbery.
According to United States Attorney David J. Freed, Cavanaugh and his co-defendant, Doug Sickler, robbed the PNC Bank in Avoca, Pennsylvania on June 21, 2017, while threatening employees with pellet guns. Sickler and Cavanaugh were arrested on June 22, 2017, and have remained in custody since. In addition to the sentence of imprisonment, Judge Mariani ordered that Cavanaugh pay $909 to the victim of his crime.
Cavanaugh’s co-defendant, Doug Sickler, was previously sentenced to 63 months’ imprisonment.
The matter was investigated by the Federal Bureau of Investigation and the Kingston Police Department. Assistant United States Attorneys Phillip J. Caraballo and Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Jury Finds Roland Man Guilty of Attempted Enticement of a Minor to Engage in SexRead the Press Release
LITTLE ROCK— A Roland man has been convicted of enticing a minor to engage in sexual activity after exchanging messages with an undercover investigator.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, announced today that a federal jury has convicted Patrick Karl Tate, 57, of Roland. United States District Judge James M. Moody, Jr., presided over the two-day trial, which concluded Tuesday with the jury verdict finding Tate guilty on the single count. Tate will be sentenced by Judge Moody at a later date.
Testimony during the trial established that in April of 2017, an undercover investigator with the Faulkner County Sheriff’s Office saw an ad posted on Craigslist. The ad was located in a section of the website titled Casual Encounters, which an investigator testified is known for sex solicitations. The ad specified it was looking for “mother/daughter,” and it asked for responses to be sent through KIK messenger, an online messaging service. The ad provided a KIK username: karlpatrick69. This was later identified to be the defendant, Patrick Karl Tate.
The undercover investigator sent a message to the KIK account, and the undercover exchanged messages with karlpatrick69 from April 9 to April 16, 2017. The messages, all of which were introduced at trial, indicated that the undercover officer was posing as an adult male with access to his girlfriend’s daughter, a 13-year-old child. In the messages, and in two recorded phone conversations that were played at trial, the undercover and Tate made plans to meet so that Tate could have sex with the 13-year-old child. In the messages, the undercover told Tate that he should bring at least three condoms. The two agreed to meet at a location in Greenbrier on April 16, 2017, which was Easter Sunday.
Evidence at trial further indicated that on April 16, 2017, Tate arrived at the agreed-upon location. He had three condoms. He was met by investigators from the Faulkner County Sheriff’s Office, who arrested him. Tate was transported back to the major crimes unit, where he was read his rights and gave a statement. In his statement, Tate admitted to posting the Craigslist ad, admitted to having the conversations on KIK, admitted that karlpatrick69 was his screenname, and admitted that he knew the child involved was 13 years old.
“This 57-year-old defendant planned to have sex with a 13-year-old child,” stated U.S. Attorney Hiland. “Fortunately, instead of an actual child, he was met by the full weight and force of law enforcement. This investigation shows that we will not tolerate those who would prey upon the most vulnerable among us—our children.”
The statutory penalty for enticement of a minor to engage in sexual activity is not less than 10 years and not more than life imprisonment, not more than a $250,000 fine, and not less than five years of supervised release.
The investigation was conducted by the Faulkner County Sheriff’s Office, and the case was prosecuted by Assistant United States Attorneys Jordan Crews and Allison W. Bragg.
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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
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Jury Convicts Springfield Man of Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was convicted by a federal trial jury today of receiving and distributing child pornography.
Marco Barraza, 27, was found guilty of one count of receiving and distributing child pornography.
Law enforcement investigators received two reports from the National Center for Missing and Exploited Children that Barraza had transmitted images of child pornography through chat sessions on his Tumblr account in September 2016. Officers executed a search warrant at Barraza’s residence on March 16, 2017, and seized numerous computer-related property, including three cell phones and two hard drives that had been removed from laptop computers. Those devices contained approximately 600 images of child pornography.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for less than an hour before returning the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Oct. 28.
Under federal statutes, Barraza is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 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 James J. Kelleher and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, and the Barry County, Mo., Sheriff’s 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."Jordanian National Sentenced for Conspiracy to Bring Aliens into the United StatesRead the Press Release
WASHINGTON – A Jordanian National was sentenced to 36 months in prison for his role in a conspiracy to bring aliens to the United States and actually bringing Yemeni aliens through Mexico to the United States.
According to the plea agreement, during the second half of 2017, Moayad Heider Mohammad Aldairi, 31, conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras, where he directed them to cross the Rio Grande River into the United States. Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing.
“Aldairi endangered our national security by smuggling unvetted aliens across our border into the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice and our law enforcement partners will steadfastly pursue investigations and prosecutions to disrupt smugglers like Aldairi and end the risk they pose to our safety.”
“The district court imposed a just sentence today. This case vividly illustrates how border security is a key component of national security,” said U.S. Attorney John Bash of the Western District of Texas. “We simply must know the identities of every individual crossing our southern border, particularly those who are nationals of countries where terrorist organizations operate freely.”
“This sentence serves as a sobering reminder about the serious consequences awaiting those involved in human smuggling,” said Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “This investigation is a great example of how HSI uses its global resources, foreign and interagency partnerships to bring international criminals to justice in the United States. Targeting the leaders of criminal organizations who smuggle aliens from certain countries of interest will always be a priority of HSI in protecting the homeland.”
This case was investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
Jordanian National Sentenced for Conspiracy to Bring Aliens into the United StatesRead the Press Release
A Jordanian National was sentenced to 36 months in prison for his role in a conspiracy to bring aliens to the United States and actually bringing Yemeni aliens through Mexico to the United States.
According to the plea agreement, during the second half of 2017, Moayad Heider Mohammad Aldairi, 31, conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras, where he directed them to cross the Rio Grande River into the United States. Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing.
“Aldairi endangered our national security by smuggling unvetted aliens across our border into the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice and our law enforcement partners will steadfastly pursue investigations and prosecutions to disrupt smugglers like Aldairi and end the risk they pose to our safety.”
“The district court imposed a just sentence today. This case vividly illustrates how border security is a key component of national security,” said U.S. Attorney John Bash of the Western District of Texas. “We simply must know the identities of every individual crossing our southern border, particularly those who are nationals of countries where terrorist organizations operate freely.”
“This sentence serves as a sobering reminder about the serious consequences awaiting those involved in human smuggling,” said Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “This investigation is a great example of how HSI uses its global resources, foreign and interagency partnerships to bring international criminals to justice in the United States. Targeting the leaders of criminal organizations who smuggle aliens from certain countries of interest will always be a priority of HSI in protecting the homeland.”
This case was investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
Jefferson County Man Sentenced to 41 Months for Wire Fraud SchemeRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Jefferson County man for engaging in a wire fraud scheme, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Karon O. Bowdre sentenced JEFFREY RUSERT, 52, to 41 months in prison for embezzlement of over $1.3 million from his customers. Rusert pled guilty in June.
“Rusert abused the responsibility entrusted to him by those wanting the American dream of owning their own home, but now he will pay the price for stealing $1.3 million,” Town said. “He chose to feed his own greed and lifestyle. He will now feed on federal prison food for the next 41 months.”
“Rusert’s desire to have more than he honestly worked for drove him to steal the hard earned money of others.” Sharp said. “Today, this sentence ensures that he pays the price for his greed.”
According to the Information, Rusert was the owner and President of Southern Craftsman Custom Homes, Inc. Southern Craftsman was engaged in the business of residential homebuilding. Between 2016 and 2018, Rusert engaged in a fraudulent scheme to obtain money from at least sixteen known individuals and/or families. Rusert solicited individuals and families to sign a contract and pay money to Southern Craftsman for the construction of a custom home. Rusert accepted the checks and down payments from numerous individuals and families and fraudulently used the proceeds on unrelated construction projects, outstanding debt and personal expenses. In addition to obtaining personal checks from the victims, Rusert assisted individuals and families with obtaining a loan to finance the construction of their custom home. After obtaining financing, Rusert, submitted false and fraudulent invoices and documentation to financial institutions for the purpose of obtaining checks or draws from the construction loans purportedly to pay for materials, labor and expenses associated with a particular home under construction. Rusert failed to use and apply the money obtained from the financial institutions towards the construction of the customer’s home project.
In addition to the term of imprisonment imposed, Rusert was ordered to serve three years of supervised release.
The FBI investigated the case with assistance from the Alabama Home Builders Licensure Board, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuted.
Hawthorne Man Found Guilty of Scheming to Defraud Insurance Companies by Intentionally Drowning His Two Autistic SonsRead the Press Release
LOS ANGELES – A Hawthorne man was found guilty by a jury today of 14 federal felonies for intentionally driving his family off a wharf and into the water at the Port of Los Angeles in a scheme to collect money on insurance policies he had taken out on their lives.
Ali F. Elmezayen, 45, was found guilty of four counts of mail fraud, four counts of wire fraud, one count of aggravated identity theft, and five counts of money laundering.
“Dissatisfied with his financial and family situation, Mr. Elmezayen fraudulently purchased millions of dollars in insurance on his common-law wife and disabled young sons, and then drove them off a pier in order to cash in,” said United States Attorney Nick Hanna. “These two boys deserved a loving father; instead they got a man who put his greed and self-interest above their lives.”
“A jury found that Mr. Elmezayen intentionally put his children in a deadly situation from which they could not escape,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today's verdict delivers justice and gives a voice to the young victims who deserved to be protected by their father, but instead were murdered so he could profit from their deaths.”
According to the evidence presented at his nine-day trial, between July 2012 and March 2013, Elmezayen bought from eight different insurance companies more than $7 million worth of life and accidental death insurance policies on himself and his family. Elmezayen paid premiums in excess of $6,000 per year for these policies – even though he reported income of less than $30,000 per year on his tax returns. Elmezayen began purchasing the insurance policies the same year he exited a Chapter 11 bankruptcy proceeding.
After purchasing the policies, Elmezayen repeatedly called the insurance companies – sometimes pretending to be his wife in whose name he had obtained some of the policies – to verify that the policies were active and that they would pay benefits if his wife died in an accident. Elmezayen also called at least two of the insurance companies to confirm they would not investigate claims made two years after the policies were purchased. These telephone calls were recorded and were played for the jury.
On April 9, 2015, 12 days after the 2-year contestability period on the last of his insurance policies expired, Elmezayen drove a car with his wife and two youngest children off a wharf at the Port of Los Angeles. The site of the crash was a loading dock and worksite for commercial fishermen.
Elmezayen swam out the open driver’s side window of the car. Elmezayen’s wife, who did not know how to swim, escaped the vehicle and survived when a nearby fisherman threw her a flotation device. Two of the couple’s three sons, who were 8 and 13 and who were both severely autistic, were strapped into the car and drowned. The third son was away at camp at the time and was not in the car at the time his father drove it into the water.
Elmezayen then collected more than $260,000 in insurance proceeds from Mutual of Omaha Life Insurance and American General Life Insurance on the accidental death insurance policies he had taken out on the children’s lives. He used part of the insurance proceeds to purchase real estate in Egypt as well as a boat.
Prosecutors argued that Elmezayen was an abusive husband and parent who “hatched a plan” to make all of his financial problems disappear.
“What he did on April 9 wasn’t an accident,” prosecutors said. “It was a long time coming.”
“It’s a terrible tragedy that any father would jeopardize the lives of his family for his own financial gain,” stated Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation. “IRS-CI is proud to flex our financial fraud expertise in bringing some closure in this horrific scheme.”
In addition to posing as his wife in communications with the insurance companies without her knowledge, following the crash, Elmezayen repeatedly lied – to law enforcement officers, insurance companies, and in subsequent civil litigation he filed concerning the crash – about the extent of the insurance he had purchased on his family, and specifically about whether he had insured his disabled children’s lives. The evidence at trial also showed that he attempted to persuade witnesses to falsely tell law enforcement that he had given the insurance proceeds to charity.
FBI agents arrested Elmezayen in November 2018 on a criminal complaint and he has been in custody ever since.
Tomorrow, United States District Judge John F. Walter will schedule a sentencing hearing, at which time Elmezayen will face a statutory maximum sentence of 212 years in federal prison.
This case was investigated by the FBI and IRS Criminal Investigation. The Los Angeles Police Department, the Los Angeles Port Police, and the Los Angeles City Attorney’s Office provided substantial assistance in this case.
Assistant United States Attorneys Alexander C.K. Wyman of the Major Frauds Section and David T. Ryan of the Terrorism and Export Crimes Section are prosecuting this matter.