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23 September 2019
Gang Member Sentenced to 37 Months in Federal Prison for Distributing Fentanyl and Heroin in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CRUZ FERNANDEZ, also known as “Blood,” 28, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 37 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford. The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl. Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.
Fernandez, who is originally from New York, is a member of the Bloods, not the Latin Kings. He relocated to Springfield, Massachusetts, and then to Hartford, where he began distributing fentanyl/heroin that he had acquired from Velez and other Latin Kings members.
At the time of the offense, Fernandez was on probation following a heroin related arrest in Springfield.
On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Fernandez and eight other members and associates of the Latin Kings. Fernandez was arrested on May 7, 2018. On February 26, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin and fentanyl.
Velez was arrested on federal narcotics offenses on December 7, 2017, and was subsequently released on bond. He has been detained since April 5, 2018, when his bond was revoked. On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime. He awaits sentencing.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fort Pierre Woman Indicted on Conspiracy ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Fort Pierre, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Tiffany Kay Frazier, n/k/a Tiffany Kay Castiglione, age 26, was indicted on September 10, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in prison and/or a $5,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than on or about the 1st day of January 2017, and continuing to on or about September 10, 2019, in the District of South Dakota and elsewhere, Castiglione knowingly and intentionally, combined, conspired, confederated, and agreed with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine.
The charge is merely an accusation and Castiglione is presumed innocent until and unless proven guilty.
The investigation is being conducted by Pierre Police Department and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Castiglione was released on bond pending trial. A trial date has not been set.
Former Pawtucket Man Sentenced for Trafficking Crack Cocaine After Release from State PrisonRead the Press Release
PROVIDENCE – A former Pawtucket man who, while incarcerated in the Rhode Island Adult Correctional Institutions (ACI), made arrangements for the disposal of a firearm stored at his residence, and within six weeks of his release from state prison in April 2019 was arrested for twice selling crack cocaine to an undercover law enforcement officer who lived in Massachusetts, was sentenced today to 5 years in federal prison.
Shortly after his release from the ACI on April 11, 2018, Ricardo Dominquez, 24, contacted the same undercover out-of-state law enforcement officer that purchased his firearm and offered to sell him crack cocaine. Dominquez was arrested on May 22, 2018, for twice selling crack cocaine to the law enforcement officer.
Dominquez pleaded guilty on April 12, 2019, to two counts of distribution of 28 grams or more of cocaine base. He was sentenced today by U.S. District Court Chief Judge William E. Smith to 60 months in federal prison to be followed by 4 years of supervised release.
Gary Pagnozzi, 60, of Pawtucket, admitted to selling Dominquez’s .44 caliber revolver along with 3.5 grams of crack cocaine to the undercover law enforcement officer on April 5, 2018. Dominquez had called Pagnozzi from inside the ACI and asked him to retrieve and sell the firearm. He sold it that same day for $500 along with 3.5 grams of crack cocaine for $200.
Pagnozzi was sentenced by U.S. District Court Judge John J. McConnell, Jr., on September 12, 2019, to one year and a day in federal prison, to be followed by three years supervised release, the first six months to be served in a Pawtucket residential reentry center.
Dominquez and Pagnozzi’s sentences are announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady.
The cases were prosecuted by Assistant U.S. Attorney Milind M. Shah. The matters were investigated by ATF and the Rhode Island ATF Task Force.
United States Attorney Aaron L. Weisman thanks the Department of Corrections for their assistance in the investigation of Ricardo Dominquez and Gary Pagnozzi.
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Former Investment Banker Convicted at Trial for Insider Trading SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SEAN STEWART, a former senior investment banker at two different New York-based investment banks, was convicted after a seven-day trial for illegally tipping his father, Robert Stewart, with material non-public information concerning five separate corporate acquisitions before they were publicly announced. U.S. District Judge Jed S. Rakoff presided over the trial.
Manhattan U.S. Attorney Geoffrey Berman said: “From 2011 through 2014, Sean Stewart used his position of trust at two different investment banks to steal confidential information and pass it on to his father so he could make illicit profits in the stock market. As a unanimous jury found today, he abused his positions over and over again to tip his father. Today’s verdict, which comes after the Second Circuit reversed Stewart’s original conviction, shows that this Office and our law enforcement partners at the FBI will persevere to achieve justice.”
According to the allegations contained in the Superseding Indictment and evidence presented at trial:
In early 2011, SEAN STEWART, who at the time held the position of Vice President in the Healthcare Investment Banking Group of a global bank headquartered in Manhattan (“Investment Bank A”), began tipping his father, Robert Stewart, with nonpublic information about upcoming mergers and acquisitions. The first of these tips related to the acquisition of Kendle International Inc. by INC Research, LLC, which was announced publicly on May 4, 2011. SEAN STEWART represented Kendle in the confidential negotiations that led to the deal announcement. Based on inside information from SEAN STEWART, Robert Stewart purchased Kendle stock and passed the information to another individual to trade on his behalf, and earned several thousand dollars in profits after the acquisition of Kendle was publicly announced.
The second deal about which SEAN STEWART tipped Robert Stewart was the acquisition of Kinetic Concepts, Inc. (“KCI”) by Apax Partners, announced on July 13, 2011. Robert Stewart passed the inside information to another co-conspirator, Richard Cunniffe, to trade on Robert’s behalf. Robert Stewart and Cunniffe earned more than $100,000 in profits after the acquisition was publicly announced.
In the summer of 2011, SEAN STEWART learned that the Financial Industry Regulatory Authority (“FINRA”) was conducting an inquiry into suspicious trading in Kendle securities, including trading by Robert Stewart. SEAN STEWART at first falsely claimed to compliance officials at Investment Bank A that he did not recognize his father’s name on a list of individuals who traded prior to the public announcement of Kendle’s acquisition. After FINRA and compliance officials at Investment Bank A recognized the connection between SEAN STEWART and his father, SEAN STEWART told a series of lies to those compliance officials, to make it seem as if Robert Stewart had decided on his own initiative to invest in Kendle without the benefit of inside information.
In October 2011, Sean Stewart joined an investment banking advisory firm headquartered in Manhattan (“Investment Bank B”) and was later promoted to Managing Director. During his tenure with Investment Bank B, SEAN STEWART provided his father with tips concerning non-public acquisition negotiations involving three more public companies: (1) the acquisition of Gen-Probe Inc. by Hologic, Inc., announced on April 30, 2012; (2) the acquisition, by tender offer, of Lincare Holdings Inc. by Linde AG, announced on July 1, 2012; and (3) the acquisition of CareFusion Corp. by Becton, Dickinson & Co. (“Becton”), announced October 4, 2014. Investment Bank B represented Hologic in connection with its acquisition of Gen-Probe; Linde in connection with its acquisition of Lincare; and CareFusion in connection with its acquisition by Becton. As before, Robert Stewart passed the information to Cunniffe in order to place trades for the two of them.
During the course of the scheme, SEAN STEWART became aware that his father was having financial problems. Rather than loan his father money, SEAN STEWART gave his father stock tips so that his father could profit from the information that STEWART stole from Investment Bank A and Investment Bank B and their clients. In total, with respect to all five deals, Robert Stewart and Cunniffe earned profits of more than $1.1 million.
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SEAN STEWART, 38, of North Merrick, New York, was convicted of one count of conspiracy to commit securities fraud and tender offer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; six counts of substantive securities fraud, and one count of substantive tender offer fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
SEAN STEWART is scheduled to be sentenced before Judge Rakoff on January 29, 2020, at 4:00 p.m.
Robert Stewart pled guilty on August 12, 2015, to one count of conspiracy to commit securities fraud and tender offer fraud and was sentenced to four years’ probation, with the first year to be served in home detention, and $150,000 in forfeiture.
Richard Cunniffe pled guilty on May 12, 2015, to one count of conspiracy to commit securities fraud and tender offer fraud, one count of conspiracy to commit wire fraud, three counts of substantive securities fraud, and one count of substantive tender offer fraud, and was sentenced to one year of probation, and $900,000 in forfeiture.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and also thanked the U.S. Securities and Exchange Commission, which has brought a civil action against SEAN STEWART.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Richard Cooper and Samson Enzer are in charge of the prosecution.
Former City of Detroit Building Authority Official Sentenced for Bribery Conspiracy in Connection with the Detroit Demolition ProgramRead the Press Release
Aradondo Haskins, 48, the former Field Operations Manager for the City of Detroit Building Authority overseeing the demolition program in Detroit, was sentenced today to 12 months in prison after having pleaded guilty to charges of conspiracy to commit bribery and honest services fraud in connection with the Detroit Demolition Program.
The Honorable Victoria Roberts sentenced Haskins to serve 12 months in federal prison following his conviction for conspiracy to commit honest services fraud by taking bribes while he was employed at Adamo Group and at the City of Detroit. Following his release from prison, Haskins will serve a two-year term of supervised release. The Court also ordered that Haskins pay a $5,000 fine and that Haskins forfeit $26,500 for the bribes that he took while employed by Adamo and by the City.
The United States Treasury Department created the Blight Elimination Program, which focused on helping communities demolish vacant houses. The program was paid for through the Hardest Hit Fund (HHF), a housing support program intended to protect home values, preserve home ownership and promote economic growth. The City of Detroit was one of the recipients of this HHF money. Approximately $258,656,459 in Hardest Hits Funds have been allocated to the City of Detroit since Oct. 7, 2013.
As stated during Haskins’s guilty plea, from January 2013 through April 2015, Haskins was employed as an "estimator" with Adamo. Adamo is a private, "for profit," company which provides demolition services throughout the United States and Canada, including the City of Detroit. Haskins’s responsibilities at Adamo included assembling bid packages in response to "Requests for Proposals" (RFPs) issued by the City of Detroit. Adamo responded to the RFPs by submitting bids to the City hoping to secure demolition contracts by being the lowest bidder. In assembling the bid packages, Haskins contacted various subcontractors requesting bids for work to be included in Adamo’s submissions. "Contractor A" was one of the subcontractors who received Haskins’s invitation to bid. On several occasions, Contractor A paid Haskins money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Haskins disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. Haskins accepted bribes on at least eight occasions while he worked at Adamo totaling approximately $14,000.
According to the plea, due in large part to his experience at Adamo, Haskins was hired by the City of Detroit Building Authority (DBA) as a "Field Operations Manager" for its demolition program. As an official of the City of Detroit, Haskins was the primary point of contact for demolition contractors and he opened and read bids contractors submitted in response to RFPs. Contractor A, knowing that Haskins was still in a position to influence the demolition contract bidding process, continued to pay Haskins to use his official authority to influence the awarding of demolition related contracts to Contractor A. Haskins accepted the cash bribe payments from Contractor A in exchange for providing Contractor A confidential information about bids submitted to the DBA. With the confidential information, Contractor A was able to submit bids low enough to ensure that Contractor A was awarded City of Detroit demolition related contracts. In total, Haskins accepted approximately $11,500 in bribes from Contractor A. After his employment with the City of Detroit, Haskins accepted an additional approximately $1,000 from Contractor A for information Contractor A received while Haskins was employed with the City.
First Assistant U.S. Attorney Saima Mohsin of the Eastern District of Michigan and Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division commended the outstanding work of the Special Inspector General of the Troubled Asset Relief Program (SIGTARP) and the Federal Bureau of Investigation (FBI) in conducting a comprehensive criminal investigation into the demolition program.
"The Antitrust Division will aggressively pursue collusion that corrupts the government contracting process, especially where the illicitly shared bid information enables the government contractor to submit anti-competitive bids to the detriment of taxpayer-funded programs," said Assistant Attorney General Delrahim.
"The City of Detroit and its demolition program were entrusted with millions of taxpayer dollars to tear down abandoned houses in Detroit’s neighborhoods. The corruption of the government contracting process by Aradondo Haskins damaged the integrity of the demolition program and broke the public trust. This prosecution serves as a warning to public officials that soliciting or accepting bribes will be punished and as a promise to the taxpaying public that such violations of the public trust will not be tolerated," said First Assistant U.S. Attorney Mohsin.
"Anti-competitive corruption by city officials that award contracts in the Hardest Hit Fund’s Blight Elimination Program will be met by justice and accountability," said Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP). "Defendant Haskins started taking bribes from subcontractors when he worked for lead contractor Adamo and continued his crimes as a city official. I commend U.S. Attorney Matthew Schneider and Assistant Attorney General for Antitrust Delrahim for standing united with SIGTARP in fighting corruption in this TARP program."
"Mr. Haskins was sentenced today for corrupting the bidding process both while he was seeking contracts through a federally-funded program and after he became a City of Detroit employee," said Special Agent in Charge Steven M. D'Antuono of the FBI's Detroit Field Office. "The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323."
The case was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, Adriana Dydell and DOJ Antitrust Trial Attorney Matthew Stegman.
Former City of Detroit Building Authority Official Sentenced for Bribery Conspiracy in Connection with the Detroit Demolition ProgramRead the Press Release
Aradondo Haskins, 48, the former Field Operations Manager for the City of Detroit Building Authority overseeing the demolition program in Detroit, was sentenced today to 12 months in prison after having pleaded guilty to charges of conspiracy to commit bribery and honest services fraud in connection with the Detroit Demolition Program, announced First Assistant U.S. Attorney Saima Mohsin and Makan Delrahim, Assistant Attorney General of the Antitrust Division of the Department of Justice.
Joining in the announcement were Christy Goldsmith Romero, the Special Inspector General of the Troubled Asset Relief Program (SIGTARP), and Steven M. D'Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation (FBI).
The Honorable Victoria Roberts sentenced Haskins to serve 12 months in federal prison following his conviction for conspiracy to commit honest services fraud by taking bribes while he was employed at Adamo Group and at the City of Detroit. Following his release from prison, Haskins will serve a 2-year term of supervised release. The Court also ordered that Haskins pay a $5,000 fine and that Haskins forfeit $26,500 for the bribes that he took while employed by Adamo and by the City.
The United States Treasury Department created the Blight Elimination Program, which focused on helping communities demolish vacant houses. The program was paid for through the Hardest Hit Fund (HHF), a housing support program intended to protect home values, preserve home ownership, and promote economic growth. The City of Detroit was one of the recipients of this HHF money. Approximately $258,656,459 in Hardest Hits Funds have been allocated to the City of Detroit since October 7, 2013.
As stated during Haskins’s guilty plea, from January 2013 through April 2015, Haskins was employed as an “estimator” with Adamo. Adamo is a private, “for profit,” company which provides demolition services throughout the United States and Canada, including the City of Detroit. Haskins’s responsibilities at Adamo included assembling bid packages in response to “Requests for Proposals” (RFPs) issued by the City of Detroit. Adamo responded to the RFPs by submitting bids to the City hoping to secure demolition contracts by being the lowest bidder. In assembling the bid packages, Haskins contacted various subcontractors requesting bids for work to be included in Adamo’s submissions. “Contractor A” was one of the subcontractors who received Haskins’s invitation to bid. On several occasions, Contractor A paid Haskins money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Haskins disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. Haskins accepted bribes on at least eight occasions while he worked at Adamo totaling approximately $14,000.00.
According to the plea, due in large part to his experience at Adamo, Haskins was hired by the City of Detroit Building Authority (DBA) as a “Field Operations Manager” for its demolition program. As an official of the City of Detroit, Haskins was the primary point of contact for demolition contractors and he opened and read bids contractors submitted in response to RFPs. Contractor A, knowing that Haskins was still in a position to influence the demolition contract bidding process, continued to pay Haskins to use his official authority to influence the awarding of demolition related contracts to Contractor A. Haskins accepted the cash bribe payments from Contractor A in exchange for providing Contractor A confidential information about bids submitted to the DBA. With the confidential information, Contractor A was able to submit bids low enough to ensure that Contractor A was awarded City of Detroit demolition related contracts. In total, Haskins accepted approximately $11,500 in bribes from Contractor
A. After his employment with the City of Detroit, Haskins accepted an additional approximately $1,000 from Contractor A for information Contractor A received while Haskins was employed with the City.
First Assistant U.S. Attorney Saima Mohsin and Assistant Attorney General Makan Delrahim commended the outstanding work of SIGTARP and the FBI in conducting a comprehensive criminal investigation into the demolition program.
“The City of Detroit and its demolition program were entrusted with millions of taxpayer dollars to tear down abandoned houses in Detroit’s neighborhoods. The corruption of the government contracting process by Aradondo Haskins damaged the integrity of the demolition program and broke the public trust. This prosecution serves as a warning to public officials that soliciting or accepting bribes will be punished and as a promise to the taxpaying public that such violations of the public trust will not be tolerated,” said First Assistant U.S. Attorney Saima Mohsin.
“The Antitrust Division will aggressively pursue collusion that corrupts the government contracting process, especially where the illicitly shared bid information enables the government contractor to submit anti-competitive bids to the detriment of taxpayer-funded programs,” said Assistant Attorney General Makan Delrahim.
“Anti-competitive corruption by city officials that award contracts in the Hardest Hit Fund’s Blight Elimination Program will be met by justice and accountability,” said Special Inspector General Christy Goldsmith Romero. “Defendant Haskins started taking bribes from subcontractors when he worked for lead contractor Adamo and continued his crimes as a city official. I commend U.S. Attorney Matthew Schneider and Assistant Attorney General for Antitrust Makan Delrahim for standing united with SIGTARP in fighting corruption in this TARP program.”
“Mr. Haskins was sentenced today for corrupting the bidding process both while he was seeking contracts through a federally-funded program and after he became a City of Detroit employee,” said SAC D'Antuono. “The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323.”
The case was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, Adriana Dydell, and DOJ Antitrust Trial Attorney Matthew Stegman.
Florida woman sentenced for role in drug distribution operation in Berkeley and Jefferson CountiesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brianna Katherine Murray, of Fort Lauderdale, Florida, was sentenced to three years probation for aiding in the distribution of heroin, fentanyl, and cocaine, United States Attorney Bill Powell announced.
Murray, age 38, pled guilty to one count of “Aiding and Abetting Travel Act – Promotion” in June 2019. Murray admitted to working with another to travel from West Virginia to Maryland to obtain heroin, fentanyl, and cocaine for distribution in West Virginia. The crime occurred in September 2018 in Berkeley County and elsewhere.This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara K. Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Fayette County Family Practitioner Charged in 29-Count Indictment with Dispensing Opioids in Exchange for Sex and Health Care FraudRead the Press Release
PITTSBURGH - A physician who operates a private family practice in Perryopolis, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
The 29-count indictment, returned on September 19 and unsealed today, named Emilio Ramon Navarro, 58, of Coal Center, Pennsylvania, as the sole defendant.
According to Counts 1 – 28 of the Indictment, from April 2018 until April 2019, Navarro, a licensed physician, unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to a person identified as "A.W." in return for sexual favors, either physically or by electronic communications, outside the usual course of professional practice and not for a legitimate medical purpose. Navarro is also charged in Count 29 with health care fraud for causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed controlled substances.
Navarro was arrested this morning and made an initial appearance in federal court today before U.S. Magistrate Judge Patricia Dodge. The government is seeking the defendant’s detention pending trial and a hearing on that matter is scheduled for September 24, 2019 at 2 p.m.
The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000, or both, for the controlled substances offenses. Navarro faces an additional maximum term of imprisonment of 10 years and fines of $250,000 for the health care fraud charge. 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 Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting this case on behalf of the government.
The investigation leading to the indictment in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Essex County Man Admits Role in $3.49 Million Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in exchanging $3.49 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.
Juan Perdomo, 60, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of SNAP fraud, one count of engaging in monetary transactions in property derived from SNAP fraud, and one count of aiding in the preparation of a materially false tax return.
According to documents filed in this case and statements made in court:
From October 2015 to September 2018, Perdomo ran M&R Supermarket, a business that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp program. SNAP is administered by the U.S. Department of Agriculture. Retail food stores approved for participation may sell food in exchange for SNAP benefits, but may not exchange SNAP benefits for cash.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Juan Perdomo and his son, Jose Perdomo, exchanged money for SNAP benefits.
The bank account of M&R Supermarket showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo and his wife, Maria Rodriguez, as well as several cashed checks in excess of $10,000 by Jose Perdomo.
In September 2018, Juan Perdomo, Jose Perdomo and Maria Rodriguez were charged by complaint with SNAP benefit fraud and conspiracy to commit wire fraud. They were also charged with money laundering conspiracy. Jose previously pleaded guilty to SNAP benefit fraud and money laundering. The charges against Rodriguez remain pending, and they are merely accusations; the defendant is presumed innocent unless and until proven guilty.
The count of SNAP benefit fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain or loss. The count of engaging in monetary transactions in property derived from specified unlawful activity carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. The count aiding in the preparation of false tax return carries a maximum penalty of three years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. Sentencing is scheduled for Jan. 8, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Perry Farhat of the U.S. Attorney’s Office Criminal Division in Newark.
Eight Former SCDC Employees Plead Guilty to Federal Crimes Associated with Accepting Bribes to Smuggle Contraband into SCDC FacilitiesRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Jamal Early, Frank Pridgeon, Miguel Williams, Catherine Prosser, Holly Mitchem, Robert Hill, Ebonynisha Casby, and Sharon Johnson Breeland, all former employees of the South Carolina Department of Corrections (SCDC), have pleaded guilty in federal court to offenses associated with accepting bribes to smuggle contraband into SCDC facilities.
“Those who violate the public trust by taking bribes to smuggle dangerous contraband into our prisons endanger inmates, prison staff, and the general public,” said U.S. Attorney Lydon. “The U.S. Attorney’s Office and our partners at SCDC will not rest until we have rooted out the corruption in our prison system.”
“When a correctional officer brings contraband into an institution, it breaks a public trust and makes the institution and our state unsafe for everyone,” said Bryan Stirling, Director of the South Carolina Department of Corrections. “They deserve to spend time behind bars.”
The specific guilty pleas are as follows:
- On September 19, 2019, Jamal Early pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed Early, a former correctional officer at Ridgeland Correctional Institution, accepted bribes to smuggle tobacco and A-PVP (a synthetic narcotic) into prison. He faces a maximum penalty of five years in federal prison.
- On September 18, 2019, Frank Pridgeon pleaded guilty to Honest Services Wire Fraud. Facts presented in court showed Pridgeon, a former correctional officer at Kershaw Correctional Institution, accepted bribes to smuggle cocaine, marijuana, tobacco, and cell phones into prison. Pridgeon faces a maximum penalty of 20 years in federal prison.On September 13, 2019, Miguel Williams pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed Williams, a former correctional officer at Perry Correctional Institution, accepted bribes to smuggle tobacco and liquor into prison. Williams faces a maximum penalty of five years in federal prison.
- On September 13, 2019, Catherine Prosser pleaded guilty to Possession with Intent to Distribute Marijuana. Facts presented in court showed Prosser, a former correctional officer at McCormick Correctional Institution, accepted bribes to smuggle marijuana into prison. Prosser faces a maximum penalty of five years in federal prison.
- On September 13, 2019, Holly Mitchem pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed Mitchem, a food service worker at Tyger River Correctional Institution, accepted bribes to smuggle tobacco and K2 into prison. Mitchem and faces a maximum penalty of five years in federal prison.
- On September 13, 2019, Robert Hill pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed Hill, a horticulture specialist at Tyger River Correctional Institution, accepted bribes to smuggle marijuana, K2, tobacco, and cell phones into prison. Hill faces a maximum penalty of five years in federal prison.
- On September 10, 2019, Ebonynisha Casby pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed that Casby, a correctional officer at Lieber Correctional Institution, accepted bribes to smuggle a watch and jewelry into prison. Casby faces a maximum penalty of five years in federal prison.
- On August 6, 2019, Sharon Johnson Breeland pleaded guilty to Possession with Intent to Distribute Methamphetamine. Facts presented in court showed that Breeland, a correctional officer at Broad River Correctional Institution, accepted bribes to smuggle methamphetamine into prison. Breeland faces a maximum penalty of twenty years in federal prison.
These guilty pleas are the result of a partnership with the Federal Bureau of Investigation (FBI), the United States Attorney’s Office, and SCDC to investigate the smuggling of contraband into prisons by staff at SCDC. The investigation has uncovered a number of SCDC employees who accepted bribes to smuggle into prison various contraband such as cell phones, narcotics, or tobacco. Previous recent prosecutions by the United States Attorney’s Office of SCDC employees for these types of offenses have resulted in prison time for the offenders.
Assistant United States Attorney William Camden Lewis of the Columbia office is prosecuting the cases.
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Eagle Butte Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Cheyenne Brown, age 32, was indicted on October 16, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 10, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison, including a mandatory minimum of 10 years in federal prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than on January 1, 2016, and continuing to October 16, 2018, in South Dakota, Brown knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Brown was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Chae Lynn LeClaire, age 27, was indicted on September 10, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 23, 2019, LeClaire assaulted an individual with a chair with the intent to do bodily harm and the assault resulted in serious bodily injury.
The charges are merely accusations and LeClaire is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
LeClaire was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Indicted for Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Ryan Dupris, age 24, was indicted on September 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 16, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 2, 2019, in Eagle Butte, Dupris knowingly caused, and attempted to cause, a female victim to engage in a sexual act by the use of force against and by threatening her.
The charge is merely an accusation and Dupris is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron Cook is prosecuting the case.
Dupris was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Delaware man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Terrance B. Fletcher, of Dover, Delaware, was sentenced to 36 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Fletcher, also known as “Flex,” age 25, pled guilty to one count of “Possession with Intent to Distribute Heroin” in June 2019. Fletcher admitted to distributing heroin in Berkeley County in February 2015.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative; the West Virginia State Police Bureau of Criminal Investigations; the Berkeley County Sheriff’s Office; and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Criminal Complaint Filed Charging Peter Rene Sanchez Montalvo in Multiple Fatal and Non-fatal Overdoses on Pittsburgh’s South SideRead the Press Release
PITTSBURGH – Peter Rene Sanchez Montalvo aka Carlos has been charged by federal criminal complaint with illegal distribution of a controlled substance resulting in death and serious bodily injury, United States Attorney Scott W. Brady, FBI Special Agent in Charge Robert Jones and Pittsburgh Public Safety Director Wendell Hissrich announced today.
According to the federal criminal complaint filed in this case, Montalvo was arrested early this morning at a residence in McKees Rocks, Pennsylvania, a Pittsburgh suburb. According to the affidavit in support of the complaint, the overdoses occurred after Montalvo distributed narcotics at an apartment on the South Side. During the party, Montalvo, wearing distinctive clothing, produced a large quantity of powdered narcotics in a box. He then cut into the narcotics and scooped out a large quantity of what the users believed was cocaine. Montalvo then started going around the room with the knife, allowing individuals to sniff the white powder from it. The surviving users stated that after they did a "bump" of suspected cocaine people immediately began to drop and suffer adverse effects. Investigation by the Allegheny County Medical Examiner’s Office has initially determined the presence of fentanyl in the white powder. Pittsburgh Police Zone 3 Officers and first responders from Pittsburgh Medics and Fire Departments were dispatched to the apartments at 2626 Tunnel Blvd. Upon entering the building one adult male was found deceased outside of an elevator. Five additional persons were located inside the apartment: two deceased males and three males suffering from a medical emergency, who were transported to UPMC Mercy.
Montalvo was arrested today and is scheduled to make an initial appearance in federal court at 1:30 p.m. before U.S. Magistrate Judge Patricia Dodge. The United States Attorney’s Office intends to seek detention of the defendant without bail. Assistant United States Attorney Brendan Conway is prosecuting this case on behalf of the government.
The law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $1,000,000, or both. 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.
The investigation leading to the filing of charges in these cases was conducted by the FBI’s Western Pennsylvania Opioid Task Force, which is comprised of law enforcement officers from the FBI, Port Authority Police of Allegheny County, the Allegheny County Sheriff’s Office, the North Versailles Police Department and the Stowe Twp. Police Department, along with the Pittsburgh
Bureau of Police and the Drug Enforcement Administration.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Related Documents- Criminal Complaint - Montalvo
Colorado Man Pleads Guilty to Assaulting a CongressmanRead the Press Release
A Colorado man pled guilty on September 23, 2019, in United States District Court in Sioux City.
Blake Gibbins, 27, from Lafayette, Colorado, pled guilty to one count of assaulting a member of congress. At his guilty plea hearing, and in a plea agreement, Gibbins admitted that on March 22, 2019, at the Mineral City Mill & Grill in Fort Dodge, Iowa, he approached a table where U.S. Congressman Steve King and others were seated and assaulted Congressman King by intentionally throwing a cup of water on him.
Sentencing before Chief United States Magistrate Judge Kelly Mahoney will be set after a presentence report is prepared. Gibbons faces a possible maximum sentence of not more than one year imprisonment, a $100,000 fine, and up to 5 years’ probation.
The case is being prosecuted by Assistant United States Attorney Timothy T. Duax and was investigated by the Federal Bureau of Investigation, the Fort Dodge Police Department, and the United States Capitol Police.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR19-3033-LTS.
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Chief Executive Officer and Stock Promoter Indicted for Multi-Million Dollar Stock Manipulation SchemeRead the Press Release
Earlier today, in federal court in Central Islip, an indictment was unsealed charging Benjamin Conde, Chief Executive Officer of Essex Global Investments and President of Facultas Capital Management, and Lawrence Isen, the owner of Marketbyte, LLC, a purported stock promotion firm, with conducting a “pump and dump” scheme to defraud investors in Renewable Energy and Power, Inc. (RBNW). The charges include conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering and substantive securities fraud. The defendants were arrested this morning and Conde will be arraigned this afternoon before United States District Judge Joanna Seybert at the United States Courthouse in Central Islip. Isen’s appearance for removal to the Eastern District of New York is scheduled for this afternoon at the federal courthouse in San Diego, California.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Conde and Isen joined forces with a ‘boiler room’ crew to defraud investors, many of them elderly, and enrich themselves at the expense of their victims,” stated United States Attorney Donoghue. “The Department of Justice has made it a priority to hold accountable those who use our financial markets as a venue to lie, cheat and steal.” Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance in the investigation.
As alleged in the indictment, between March 2017 and July 2017, Conde and Isen hired a purported financial services business in Melville, New York, known by a number of names including My Street Research, that operated as a high pressure “boiler room.” The boiler room engaged in a pump and dump scheme to defraud investors in RBNW. As part of the scheme, the defendants and their co-conspirators artificially controlled the price and volume of traded shares and made misrepresentations to victim investors, many of whom were senior citizens, relating to the advisability of purchasing RBNW stock and its profitability. The scheme generated over $3.1 million in trading profits for the defendants and their co-conspirators and losses for the victim investors when the stock price plummeted.
The defendants attempted to conceal the scheme by laundering approximately $2.8 million in fraudulently obtained proceeds.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Conde and Isen each face up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Erin E. Argo is in charge of the prosecution.
The Defendants:
BENJAMIN CONDE
Age: 56
Fairfield, New JerseyLAWRENCE ISEN
Age: 66
San Diego, CaliforniaE.D.N.Y. Docket No. 19-CR-432 (JS)
Chamberlain Man Sentenced to Prison for Escape from CustodyRead the Press Release
United States Attorney Ron Parsons announced that a Chamberlain, South Dakota, man convicted of Escape from Custody was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Charles His Law, age 36, was sentenced on September 11, 2019, to 12 months and 1 day in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
His Law was furloughed to travel by bus from the United States Penitentiary-McCreary in Pine Knot, Kentucky, to arrive in Rapid City and report to the Bureau of Prisons at the Community Education Center (CEC) on March 27, 2019. His Law failed to report and was placed on escape status.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
His Law was immediately turned over to the custody of the U.S. Marshals Service.
Carroll County Felon Sentenced Today to 8 Years in Federal Prison for Witness Retaliation and Illegal Possession of FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Jason Kiser, age 40, of Taneytown, Maryland, to eight years in federal prison, followed by 36 months of supervised release, for witness retaliation and illegal possession of firearms. Kiser admitted that he burned the vehicle of an individual in retaliation for that person providing information to law enforcement concerning Kiser’s illegal possession of firearms.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; Carroll County Sheriff James T. DeWees; and Maryland State Fire Marshal Brian S. Geraci.
“We take witness tampering and witness retaliation very seriously,” said U.S. Attorney Robert K. Hur. “Those who tamper with or retaliate against a witness will face federal prosecution and federal prison, where there is no parole—ever.”
According to his plea agreement, on May 8, 2018, Kiser went to a gunsmithing store in Taneytown, Maryland, which was located in a building next to the owner’s home. The store was in the process of moving to a new location on West Baltimore Street in Taneytown. Kiser asked the owner if he could take the parts from a firearm that Kiser had brought into the store with him, and place them on a stripped receiver that Kiser planned to obtain from another store. The owner of the store knew Kiser and believed that Kiser had previously been convicted of theft of a motor vehicle and possibly other crimes and was therefore prohibited from possessing firearms or ammunition. On May 9, 2018, an ATF investigator conducted a compliance check at the gunsmithing store and the owner advised the investigator of Kiser’s request. The ATF investigator opened a criminal investigation of Kiser.
On May 10, 2018, Kiser arrived at the gunsmithing store’s new location on West Baltimore Street in Taneytown, and provided the owner with an AR-556 rifle; a PWA, Model Commando receiver; and a Model A-15 receiver. Kiser asked the owner to place a forward grip on the AR-556 rifle and take the parts off of the PWA Commando and place them on the A-15 receiver. In coordination with investigators, on May 11, 2018, the owner advised Kiser that the firearms were ready. Law enforcement arrested Kiser as he walked towards the store. Kiser was charged in the Circuit Court for Carroll County with illegal possession of firearms. In the charging documents, the officer identified the store owner as a witness.
In the early morning hours of July 17, 2018, the store owner awoke at his house to the sound of a car horn. The store owner looked out of his bedroom window and saw his vehicle, which was parked in the carport adjacent to his residence, on fire. Firefighters extinguished the fire and called Maryland State Fire Marshals to determine the cause of the fire. Investigators located a glove from behind the carport and recovered a plastic can cover and bolt cutters from next to the driveway. They also recovered pieces of burned debris from the vehicle. DNA evidence recovered from the glove and bolt cutters revealed a high stringency match to Kiser’s DNA, which was submitted to the Combined DNA Index System (CODIS) during Kiser’s previous arrests. Investigators categorized the fire as an arson, based on the DNA evidence.
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. Project Safe Neighborhoods (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.
United States Attorney Robert K. Hur commended ATF, the Carroll County Sheriff’s Office, and the Office of the Maryland State Fire Marshal for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane and Mark Gurzo, formerly a Special Assistant U.S. Attorney in Maryland and now an Assistant U.S. Attorney in the Western District of Pennsylvania, who prosecuted the case.
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California Landlord and Las Vegas Contractor Indicted for Clean Air Act Violations After Federal EPA InvestigationRead the Press Release
LAS VEGAS, Nev. – On September 18, 2019, a federal grand jury returned an indictment against a California-based landlord who buys, sells and rents buildings in Las Vegas, and the Las Vegas-based contractor who was working for the landlord. The criminal indictment charges the two men with violating the Clean Air Act by failing to remediate and remove asbestos from a downtown Las Vegas apartment complex before renovating it, endangering the health and welfare of the tenants living there at the time.
California real estate owner Bobby Babak Khalili, 52, and the Las Vegas contractor were charged with six-counts of Clean Air Act violations. Khalili, who is known by a number of aliases, was arrested in Los Angeles and arraigned on the indictment in U.S. District Court in the Central District of California on September 19, 2019. He was released on a $50,000 bond.
“Landlords must maintain their rental properties in a habitable condition and provide a safe place for tenants to reside–free from dangerous environmental toxins,” said United States Attorney Nicholas A. Trutanich for the District of Nevada. “The indictment demonstrates our office’s commitment to protecting the health and well-being of the environment in vulnerable communities in Las Vegas and throughout Nevada.”
“Exposure to asbestos is associated with lung cancer and other serious respiratory diseases,” said Special Agent in Charge Jay Green of EPA’s Criminal Investigation Division. “The indictment sends a clear signal that EPA and its law enforcement partners are committed to enforcing environmental laws that help protect our communities from illegal asbestos abatement.”
The Clean Air Act authorized the EPA to establish “work practice standards” that must be followed to ensure the safe and proper handling and removal of asbestos during renovations. Asbestos is a group of naturally occurring minerals made up of microscopic bundles of fibers. Asbestos can cause life-threatening illnesses, and has been defined by Congress as a hazardous air pollutant.
In 2016, Khalili and his family owned the 16-unit “11th & Bonneville Apartments” in downtown Las Vegas. On March 30, 2016, air quality specialists with the Clark County Department of Air Quality saw a 40-cubic yard dumpster containing regulated asbestos-containing material (RACM) at the apartment building. They documented RACM debris and residue in the dumpster, in several apartment units, and in common areas. From March 2016 through April 11, 2016, the defendants failed to inspect the apartments and failed to remove and remediate RACM prior to starting renovation. During the renovation, half of the building’s 16 units were occupied. The indictment alleges that the defendants failed to provide written notice to EPA and Clark County Department of Air Quality before starting removal and renovation work. After removal of the RACM, they failed to properly handle the RACM.
An indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law. The maximum penalty the defendants face on each count is five years of imprisonment and a fine of $250,000.
The case was investigated by the EPA.
To report a possible violation of environmental laws and regulations, make a report to the EPA at https://echo.epa.gov/report-environmental-violations.
Butler County Man Pleads Guilty to Federal Drug ChargesRead the Press Release
PITTSBURGH - A resident of Portersville, PA, pleaded guilty in federal court to a charges of conspiracy to distribute cocaine, crack cocaine, and heroin, United States Attorney Scott W. Brady announced today.
Raymond Chrzanowski, age 51, pleaded guilty to three counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that 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, Raymond Chrzanowski and his co-conspirators cooked powder cocaine into crack cocaine and conspired to distribute quantities of crack cocaine and heroin.
Judge Schwab scheduled sentencing for February 27, 2020 at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included 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, that led to the prosecution of Raymond Chrzanowski.
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.
Berkeley County man sentenced for fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Nicholas Wayne Deminds, of Martinsburg, West Virginia, was sentenced today to 57 months incarceration for distributing fentanyl, United States Attorney Bill Powell announced.
Deminds, age 31, pled guilty to one count of “Possession with Intent to Distribute Fentanyl” in May 2019. Deminds admitted to distributing more than 25 grams of fentanyl in December 2018 in Berkeley County.Deminds also agreed to forfeit a box of 20 rounds of ammunition and $4,523.00.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
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.
Chief U.S. District Judge Gina M. Groh presided.
Baton Rouge Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced Raul Burden, a 27-year-old resident of Baton Rouge, Louisiana, to 60 months in federal prison following his conviction of possessing a firearm by a convicted felon. The Court further sentenced Burden to 3 years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions made as part of his guilty plea, on December 24, 2018, EMS dispatchers received three 911 calls reporting shots being fired outside of an apartment complex located on Manson Drive in Baton Rouge. East Baton Rouge Parish Sheriff’s deputies responded to the scene. Upon arrival, deputies identified Burden from the emergency calls and ordered him to remove his hands from his pockets and place them on his head. Burden did not comply. When deputies again ordered Burden to remove his hands, he threw the firearm away from himself. The firearm, a Charter Arms “Off Duty” .38 special caliber revolver, was recovered at the scene.
Prior to possessing the firearm, Burden was convicted of intimidating, impeding, or injuring witnesses in May 2009, in East Baton Rouge Parish and attempted introduction of contraband at a municipal or parish prison or jail in October 2015, in Ouachita Parish.
U.S. Attorney Fremin stated, “This office remains committed to upholding the rule of law by investigating and prosecuting convicted felons, such as this defendant, who illegally possess firearms. I want to commend the East Baton Rouge Sheriff’s Officers whose rapid response to an unsafe situation resulted in a dangerous criminal being disarmed. I also want to thank my prosecutor, as well as the ATF, and the East Baton Rouge Sheriff’s office for their work in this case. Notably, I would like to recognize the members of the community who had the courage to dial 911 and report the incident which allowed first responders to quickly respond and make a lawful arrest.”
“This individual disregarded both the law and the safety of others,” stated ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “The sentence imposed today sends a strong message to criminals that they will be held accountable for their actions.”
“The East Baton Rouge Sheriff’s Office is committed to working with all of our local, state and federal counterparts to get dangerous criminals with weapons off the streets of our community,” Sheriff Sid Gautreaux said. “We are grateful for the U.S. Attorney’s Office’s commitment to prosecute these cases on the federal level to ensure the continued safety of our community.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Kristen Craig.
Bangor Man Sentenced to Four Years for Heroin and Crack ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Eric Tracy, 30, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to four years in prison and three years of supervised release for conspiracy to distribute heroin and cocaine base, commonly known as “crack.” He pled guilty on July 19, 2018.
According to court records, between January 2016 and February 2017, Tracy conspired with others to acquire heroin and crack in Waterbury, Connecticut and to distribute it in Penobscot County. The defendant distributed the drugs in the Bangor area and facilitated the drug dealing activities of other conspirators.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Baltimore man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Cordario Artez Crowder, of Baltimore, Maryland, was sentenced today to 60 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Crowder, also known as “Tony,” age 28, pled guilty to one count of “Conspiracy to Commit False Statement During the Purchase of a Firearm” in June 2019. Crowder admitted to conspiring with another, asking him to make a false statement to purchase a 9mm pistol for Crowder, who was previously convicted of a felony and prohibited from purchasing or having a firearm. The crime took place in October 2018 in Mineral County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Attorney General William Barr Appoints U.S. Attorney Erica H. MacDonald to Serve on Advisory CommitteeRead the Press Release
United States Attorney General William P. Barr announced the appointment of the following nine U.S. Attorneys to serve on the Attorney General’s Advisory Committee (AGAC): Erica H. MacDonald, District of Minnesota; David Anderson, Northern District of California; Scott Brady, Western District of Pennsylvania; Maria Chapa Lopez, Middle District of Florida; Halsey Frank, District of Maine; Christina Nolan, District of Vermont; Zach Terwilliger, Eastern District of Virginia; Tom Kirsch, Northern District of Indiana; and Nicholas Trutanich, District of Nevada.
“I am pleased to appoint these nine outstanding U.S. Attorneys to this key advisory committee. I am confident that they will serve with distinction,” Attorney General William P. Barr said. “The U.S. Attorneys who comprise the Attorney General’s Advisory Committee play a critical role in carrying out the Department of Justice’s important work, including its efforts to reduce violent crime, combat the opioid crisis, protect the most vulnerable, and enforce the rule of law.”
U.S. Attorney MacDonald said, “I am honored to have been chosen to serve on this important Committee, which helps guide programs and policies for the Department of Justice. The work of the AGAC is vital to furthering our priorities of reducing violent crime, confronting our drug epidemics, and protecting public safety for all Minnesotans and Americans. I want to thank the Attorney General for this opportunity and responsibility to serve the Department and the Attorney General in this capacity.”
The Attorney General also thanked the following U.S. Attorneys who have completed their terms and are rotating off the committee: Louis Franklin, Middle District of Alabama; Robert Higdon, Eastern District of North Carolina; John Huber, District of Utah; Rob Hur, District of Maryland; Jeff Jensen, Eastern District of Missouri; Andrew Lelling, District of Massachusetts; Joshua Minkler, Southern District of Indiana; Richard Moore, Southern District of Alabama; Bryan Schroder, District of Alaska; and David Weiss, District of Delaware.
Chaired by U.S Attorney for the District of Columbia, Jessie K. Liu, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management, and operational issues impacting U.S. Attorneys’ Offices.
Attorney General Barr also announced that U.S. Attorney for the Northern District of Texas Erin Nealy Cox, a current member, will replace U.S. Attorney John Huber as the Vice Chair of the AGAC.
The bios of all U.S. Attorneys are available here.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
20 September 2019
Wichita Man Sentenced for Four Commercial RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced today to 12 years in federal prison for robberies at four local stores, U.S. Attorney Stephen McAllister said.
Kenneth W. Cade, 29, Wichita, Kan., pleaded guilty to four counts of robbery and one count of carrying a firearm during a robbery. In his plea, he admitted committing the following robberies:
- Dollar General Store, 915 S. Glendale in Wichita, Nov. 22, 2017. Cade admitted pointing a gun at an employee and demanding money.
- C-Store, 837 S. Oliver in Wichita, Feb. 7, 2018. Cade admitted serving as a lookout while a co-defendant pointed a gun at an employee and demanded money.
- Arby’s, 4308 E. Harry in Wichita, Feb. 14, 2018. Cade admitted pointing a firearm at an employee and demanding money.
- Circle K Store, 515 N. Seneca in Wichita, Feb. 14, 2018. Cade admitted grabbing cash from a register after a co-defendant pointed a gun at an employee and demanded money.
Co-defendant Savannah Cole, 22, Wichita, Kan., is set for sentencing Oct. 4, 2019.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case, which was prosecuted as part of Project Safe Neighborhoods, a U.S. Department of Justice initiative targeting violent crime.
Warr Acres Doctor Indicted on Opioid and Identity Theft ChargesRead the Press Release
OKLAHOMA CITY – A federal grand jury has charged DAVID QUY, D.O., 62, an Oklahoma City resident who practiced medicine in Warr Acres, with dispensing opioids illegally and identity theft, announced U.S. Attorney Timothy J. Downing.
According to the indictment, Quy saw patients at Family Medicine Center, 5500 N.W. Expressway, in Warr Acres. It is alleged that from November 2014 until May 8, 2019, he conspired to dispense Schedule II prescription opioids, including Oxycodone and Hydrocodone, outside the usual course of professional medical practice and without legitimate medical purpose when he wrote prescriptions for certain of his employees and then directed those employees to fill the prescriptions and bring the pills back to him. He is also charged with 55 counts of illegally dispensing Schedule II opioids on specific dates from November 2014 to April 2019.
In two separate counts, he is charged with identity theft based on allegations that he wrote prescriptions for Hydrocodone-Homatropine Syrup, a Schedule II opioid, in the names of minor children of employees when he intended that those prescriptions be used by someone else.
On May 14, 2019, the Oklahoma Bureau of Narcotics and Dangerous Drugs issued an emergency suspension of Quy’s license to prescribe controlled substances.
If found guilty of conspiracy or any of the 55 substantive counts of dispensing opioids illegally, Quy faces up to twenty years in prison, not less than three years of supervised release, and a fine of up to $1 million. If found guilty of identity theft, he could be imprisoned up to five years, serve an additional three years on supervised release, and be subject to a $250,000 fine.
This case is a result of an investigation by the Oklahoma Bureau of Narcotics and Dangerous Drugs, with assistance from the Drug Enforcement Administration. Assistant U.S. Attorney Scott E. Williams is prosecuting the case.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Virgin Islands Police Officer Indicted for Bank Fraud and Identity TheftRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today the unsealing of an indictment charging V.I.P.D. Officer Yomont King with a variety of offenses, including bank fraud, aggravated identity theft, and forgery. King made his initial appearance in federal court today in St. Croix.
According to the indictment, King defrauded one bank by depositing a $10,990 loan check intended for a third party into his own personal bank account on multiple occasions. In another instance, according to the charging document, King forged checks totaling $2,800 and deposited them into his own personal bank account.
This case is being investigated by the FBI and the Virgin Islands Police Department Economic Crimes Unit. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
An indictment is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Valliant Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John David Sanders, age 41, of Valliant, Oklahoma, entered a guilty plea to Failure To Register As Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that from in or about March 2019, the exact date being unknown to the Grand Jury, until on or about July 16, 2019, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Texas, in Hopkins County, on or about August 9, 1999, for Indecency with a Child - Sexual Contact, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charges arose from an investigation by the United States Marshals Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
U.S. Attorney Erin Nealy Cox Named Vice Chair of Attorney General’s Advisory CommitteeRead the Press Release
U.S. Attorney General William P. Barr has named U.S. Attorney Erin Nealy Cox Vice Chair of the Attorney General’s Advisory Committee, the U.S. Attorney’s Office for the Northern District of Texas announced today.
The AGAC – chaired by U.S. Attorney for the District of Columbia Jessie Liu – represents the voice of federal prosecutors across the nation and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of U.S. Attorneys. The AGAC priorities include combating the opioid crisis, reducing violent crime, protecting the most vulnerable and enforcing the rule of law.
U.S. Attorney Nealy Cox is replacing outgoing AGAC Vice Chair John Huber, U.S. Attorney for the District of Utah, who is rotating off the AGAC after several years of service.
“John’s departure leaves me with big shoes to fill,” said U.S. Attorney Nealy Cox. “I’m passionate about serving the Department of Justice and enforcing the rule of law in this country. I am honored by General Barr’s request to continue to serve the AGAC, now as Vice Chair.”
The Hon. Nealy Cox also chairs the AGAC’s Domestic Violence Working Group and sits on its White Collar Fraud and Cyber Crime Subcommittees.
She looks forward to joining U.S. Attorney Liu in presiding over the AGAC’s United States Attorneys, including the nine U.S. Attorneys just appointed to the AGAC today.
Two Reagor Dykes Employees Plead Guilty to Bank Fraud ConspiracyRead the Press Release
Two Reagor Dykes Auto Group employees pleaded guilty today for their role a $23 million “check kiting” scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Sheila Evans Miller, 52, and Diana Herrera Urias, 53, pleaded guilty to conspiracy to commit bank fraud before Magistrate Judge Lee Ann Reno in Amarillo Friday morning.
Their CFO, Shane Andrew Smith, previously pleaded guilty to conspiracy to commit wire fraud for his role in the check kiting scheme and a related floor plan fraud scheme.
In plea papers, Ms. Miller, an RDAG group controller, and Ms. Urias, an RDAG office manager, admitted that the auto group – which was struggling with ballooning expenses due to aggressive growth, above market compensation and unnecessary overhead – engaged in widespread, systematic check kiting, a ploy that involves concealing fraud by cross-depositing checks across several banks.
In fact, the company had an entire team at its headquarters specifically designated to kite checks, both women admitted.
Due to the kiting, RDAG checks that should have bounced instead cleared during banks’ float time, the period between the deposit in the recipient account and the deduction from the payer’s account, according to their plea papers.
At the instruction of RDAG Chief Financial Officer Shane Smith, Ms. Miller, Ms. Urias, and others would make up random amounts for each check to total the amount that needed to be kited for the day, often discussing the calculus over email, they said.
Ms. Miller and Ms. Urias each face up to five years in federal prison and may be required to pay at least $23 million in restitution. Mr. Smith faces up to 20 years in federal prison, and will be required to pay a mandatory restitution of more than $50 million, equal to the total amount of loss suffered by FMCC and victim banks.
The Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Sean Taylor are prosecuting the case.
Two Men Sentenced to Prison for Firearms ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two Washington, D.C. area men were sentenced to nearly four years in prison combined for their roles in a firearm trafficking conspiracy.
“Giles and Pearce went to extraordinary lengths to illegally traffic dozens of firearms from Virginia to Maryland and Washington, D.C.,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “EDVA has made a commitment to do all we can to attack straw purchasing and firearms trafficking across the Commonwealth and in the National Capital Region. This case is proof positive of the resources we have dedicated and will continue to surge to fight this dangerous conduct.”
According to court documents, Darius Antonio Giles, 22, and his half-brother Daryl Antonio Pearce, 22, conspired together to travel from Maryland and Washington, D.C.—where they resided—to Virginia to acquire firearms with the intent to engage in the business of dealing firearms. During the course of this conspiracy, Pearce and Giles purchased well over 33 firearms within the Eastern District of Virginia and elsewhere. After they purchased these firearms, they transported them from Virginia to Maryland and Washington, D.C., where Pearce and Giles resold the firearms to various individuals for profit. Seventeen of the firearms have been recovered by law enforcement in Washington, D.C. and Maryland, including from a convicted felon. Giles was arrested in February following a controlled firearm buy with undercover ATF agents.
“Those who buy guns to sell them illegally in Washington, D.C. and elsewhere, as Giles and Pearce did here, are not simply committing paperwork violations. These criminals are providing an iron pipeline of potentially lethal weapons to individuals who are prohibited under the law from possessing firearms,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “We will therefore continue to vigorously pursue and arrest anyone involved in the illegal trafficking of firearms to protect our communities.”
Giles was sentenced to more than two and half years in prison, and Pearce was sentenced to more than a year in prison.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Joel H. Feil and Assistant U.S. Attorney Nicholas U. Murphy II prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-139.
Three Men Sentenced for Transporting Large Amount Marijuana over State LinesRead the Press Release
Lexington, KY- Two Mexican Nationals, illegally residing in the U.S., and one Nicholasville, Ky., man, who previously admitted to transporting more than 100 kilograms of marijuana from Phoenix, Az., to Nicholasville, Ky., were sentenced on Thursday.
U.S. District Court Judge Karen Caldwell sentenced, Fabian Zavala-Romero, 42, Jonathan Mendoza-Ricardo, 30, and Jesus Sabino Castro-Quinones, 38, to 68 months, 68 months, and 60 months respectively. Another defendant involved in the case, Fabian Noperi, 35, is scheduled for sentencing in October.
According to plea agreements, Zavala, Castro, Noperi, and Mendoza, admitted that they conspired to transport marijuana from Phoenix to Nicholasville for the purpose of distributing the marijuana in Kentucky. The amount of marijuana they intended to distribute was more than 100 kilograms.
Under federal law, Zavala, Castro, and Mendoza must serve 85 percent of their prison sentence and will be under the supervision of the U.S. Probation Office for 4 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Steven L. Igyarto, Resident Agent in Charge for Homeland Security Investigations, and Todd Justice, Chief of Police for Nicholasville Police Department, jointly announced the sentence.
The investigation was conducted by Homeland Security Investigations and the Nicholasville Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Lauren Tanner Bradley.
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 PSN program was reinvigorated 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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Three Members of Modesto Hells Angels, Including Vice President and Secretary, Indicted for Firearm and Drug OffensesRead the Press Release
FRESNO, Calif. — Three members of the Modesto Hells Angels Motorcycle Club, including the Club's Vice President and Secretary, were charged yesterday in four separate indictments, U.S. Attorney McGregor W. Scott announced. Hell's Angels Vice President Michael Shafer, 31, of Modesto, was charged with conspiring to distribute marijuana, conspiring to distribute heroin, distribution of marijuana, and two counts of use of a communication facility to facilitate a drug trafficking offense. Hells Angels Secretary Patrick Gonzales, 31, of Modesto, was charged with being a felon in possession of firearm and ammunition. Hells Angels member Ricky Blackwell was charged with possession of cocaine with intent to distribute, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm after suffering a misdemeanor domestic violence conviction.
In conjunction with the charges, officers executed search warrants at the residences of Shafer and Gonzales, along with other locations. According to court documents, at Gonzales’s residence officers found the Hells Angels Motorcycle Club World Rules, the rulebook that governs all Hells Angels Motorcycle Clubs. Officers also found the rules for the Modesto Charter of the Hells Angels, minutes of club meetings, membership information, and membership agreements.
This case was the result of a months-long investigation into the Modesto Hells Angels Chapter. Earlier this year, Modesto Hells Angels President Randy Picchi was charged with conspiring to distribute methamphetamine for leading a drug conspiracy that involved his wife, Tina Picchi, Michael Mize, and Hell's Angels member Michael Pack. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service, Modesto Police Department, Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant United States Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.
If convicted, Shafer faces a maximum statutory penalty of 40 years in prison, a mandatory minimum 5 years in prison, and a $5,000,000 fine. Gonzales faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Blackwell faces a maximum penalty of life in prison, a mandatory minimum 5 years in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Three Individuals Plead Guilty to Conspiracy, Embezzlement ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lucinda Lindsey, age 44, of Earlsboro, Oklahoma, entered a guilty plea to Conspiracy, in violation of Title 18, United States Code, Section 1163, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both, and that Charlene Devoanna Cloud, age 48, of Seminole, Oklahoma, and Aletha Ann Wise, age 36, of Earlsboro, Oklahoma, entered guilty pleas to Embezzlement And Theft From Indian Tribal Organization, in violation of Title 18, United States Code, Section 1163, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that beginning on or about January 2, 2013, and continuing thereafter until on or about February 16, 2016, in the Eastern District of Oklahoma, the defendant, Lucinda Lindsey, knowingly and willfully conspired with others, unknown and known to the grand jury, to commit an offense against the United States, that is, Embezzlement and Theft from an Indian Tribal Organization.
The Indictment further alleges that from on or about June 11, 2014, to on or about February 16, 2016, in the Eastern District of Oklahoma, the defendants, Charlene Devoanna Cloud and Aletha Ann Wise, being employees of an Indian tribal organization, that is, the Seminole Nation Business, Commerce, and Regulatory Commission, did steal, embezzle and willfully and knowingly convert to their own use moneys, funds and credits with a value of more than $1,000.00 belonging to the Seminole Nation of Oklahoma, in violation of Title 18, United States Code, Sections 1163 and 2.
The charges arose from an investigation by the Seminole Nation Lighthorse Police, the Bureau of Indian Affairs-Criminal Investigations, and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder and Honorable Kimberly E. West, U.S. Magistrate Judges in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas of Cloud and Lindsey respectively. The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea of Wise. Completion of presentence investigation reports were ordered for all defendants.
First Assistant United States Attorney Christopher Wilson represented the United States.
Three Canyon County Residents Sentenced for Check Forgery SchemeRead the Press Release
BOISE – This week, Senior U.S. District Judge Edward J. Lodge sentenced three of five defendants in a long-term check forgery scheme, U.S. Attorney Bart M. Davis announced. On September 18, 2019, Chul Gibbs, 33, of Canyon County, was sentenced to 48 months in prison for his role in organizing the scheme. Also on September 18, 2019, Tiffany Junge, 29, of Canyon County, was sentenced to 21 months in prison. On September 19, 2019, Alexandra Boyd, 31, of Nampa, was sentenced to 21 months in prison. All defendants sentenced this week will serve three years of supervised release upon their release from custody.
On August 22, 2019, their co-defendant, Jimmy Marley, 49, of Lubbock, Texas, was sentenced to 30 months in prison, to be followed by three years of supervised release.
The final defendant, Angelina Robles, 46, of Meridian, is scheduled to be sentenced on October 22, 2019 in front of U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
All defendants except for Robles pleaded guilty to bank fraud and aggravated identity theft charges. Robles pleaded guilty to bank fraud only. According to the defendants’ plea agreements, over a substantial portion of 2018, the group stole checks that residents and business had placed in the mail. The defendants then forged the checks so that they were made payable to themselves, often in higher amounts. The defendants then attempted to cash the checks at banks. Over the course of their scheme, the defendants’ collectively caused a loss of approximately $32,000.
This case was investigated by the United States Postal Inspection Service, the Nampa, Caldwell, Boise, and Meridian Police Departments, and the Ada County Sheriff’s Office.
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Tampa Woman Charged with Distributing Heroin and Fentanyl, Causing DeathRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Heidi Kalous (39, Dunedin) with conspiring to distribute a substance that contained a mixture of heroin and fentanyl, and distributing a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl, causing death. If convicted, Kalous faces a minimum mandatory penalty of 20 years, and up to life, in federal prison.
According to court documents, beginning no later than June 5, 2019, and continuing through June 28, 2019, Kalous conspired with others to possess and distribute heroin, fentanyl, and acetyl fentanyl.
On June 5, 2019, Kalous distributed two bags containing a mixture of heroin and fentanyl to an individual. The individual injected himself with the substance from the bags and died. A medical autopsy revealed that the cause of death was an accidental overdose caused by fentanyl toxicity.
Between June 5 and June 27, 2019, Kalous continued to distribute narcotics, including crack cocaine, fentanyl, acetyl fentanyl and heroin, out of a motel in Dunedin.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. This case was investigated by the Pinellas County Sheriff’s Office and the Drug Enforcement Administration, with assistance from the Pinellas County Medical Examiner’s Office. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
Teamwork Between State and Federal Agents Nets Substantial Sentneces for Exploitation of Children CrimesRead the Press Release
On September 20, 2019, in the District of Wyoming, JUSTIN DAVID BROWN, age 27 of Riverton, Wyoming was sentenced to seven hundred twenty months in prison followed by lifetime-supervised release after pleading guilty to two counts of Production of Child Pornography. On January 4, 2019, the US Department Homeland Security Investigations (HSI) Casper, Wyoming office, the Federal Bureau of Investigation (FBI) Lander, Wyoming office and the Wyoming Division of Criminal Investigation (DCI), Riverton and Casper, Wyoming offices arrested Justin David Brown, a registered sex offender, for federal violations of Production and Distribution of Child Pornography in Riverton, Wyoming.
On January 4, 2019, FBI Lander requested the assistance of HSI and DCI on an investigative lead they received from another FBI Field Office. Initial information indicated that Brown had produced and distributed child pornography to at least one suspect on the east coast. Within hours of receiving the initial lead information, Agents from HSI, FBI and DCI worked collaboratively to rescue a victim and apprehend Brown. During a post arrest interview, Brown admitted to sexually abusing a young toddler, producing images and videos of the abuse, and distributing those to others with an interest in the sexual exploitation of children. In addition, Brown admitted to seeking out and communicating with numerous other individuals about the sexual abuse of children.
Brown consented to law enforcement assuming his online identity and as a result, Agents identified offenders within Wyoming and other jurisdictions who committed crimes against children and were charged and sentenced in U.S. District Court, including:
ROBERT WILLIAM COTTER, 35, of Casper, Wyoming, who was sentenced on July 17, 2019, for Production of Child Pornography. Cotter was sentenced to two hundred ten months of imprisonment, to be followed by lifetime-supervised release, and ordered to pay restitution in the amount of $2,500, a $100 special assessment and $500 special assessment pursuant to the Victims of Sex Trafficking Act.
DAVID THOMAS WILLIAMS, 36, of Laurel, Montana, who was sentenced on August 13, 2019, for Attempted Online Enticement of a Minor. Williams was sentenced to one hundred fifty months of imprisonment, to be followed by 120 months of supervised release, and ordered to pay restitution in the amount of $138 and a $100 special assessment.
WILLIS STEVEN SMITH, 24, formerly of Lyman, Wyoming, who was sentenced on September 18, 2019 for Aiding and Abetting the Production of Child Pornography. Smith was sentenced to one hundred eighty months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay restitution in the amount of $138.00, a $100.00 special assessment, and a $400 special assessment pursuant to the Victims of Sex Trafficking Act.
Assistant United States Attorneys Stephanie A. Hambrick and Timothy J. Forwood and the United States Attorney for the District of Wyoming, Mark A. Klaassen, prosecuted these cases. In regards to the investigation and sentences Klaassen stated, “My office remains committed to protecting our communities from individuals like these, who are involved in the production and sharing of child pornography. Their conduct victimizes innocent children, the most vulnerable among us, and we must do all we can to prevent and deter this crime.”
DCI and HSI, along with law enforcement agencies throughout the state of Wyoming, work together as part of the Wyoming Internet Crimes Against Children (ICAC) Task Force.
This case is part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation an abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
St. Paul, Arkansas Woman Sentenced to 10 Years in Federal Prison for Drug PossessionRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Rachael Shackelford, age 30, of St. Paul, Arkansas was sentenced today to 120 months in federal prison, followed by five years of supervised release and ordered to pay $2,500.00 in fines for Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, beginning around November of 2018, law enforcement officers received information that Shackelford was distributing methamphetamine from her residence in St. Paul, Arkansas. During the investigation, deputies with the Madison County Sheriff’s Office applied for and executed a search warrant on Shackelford's residence on January 9, 2019. Inside the residence, deputies located Shackelford along with syringes, digital scales, drug packaging materials, approximately 238 grams of methamphetamine and several firearms.
The DEA crime lab tested the seized methamphetamine and determined that it contained 190.89 grams of actual methamphetamine.
A federal grand jury indicted Shackelford in March 2018, and she entered a guilty plea in April 2019.
This case was investigated by the Madison County Sheriff’s Office, the Arkansas State Police and the Drug Enforcement Administration. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
St. Louis Man Indicted for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A St. Louis, Missouri, man has been indicted by a federal grand jury for drug trafficking and illegally possessing and discharging a firearm in Newton County, Missouri.
E.F. Fitchpatrick, Jr., 46, was charged in a four-count indictment returned under seal by a federal grand jury in Springfield, Missouri, on Aug. 20, 2019. That indictment has been unsealed and made public.
The federal indictment alleges that Fitchpatrick participated in a conspiracy to distribute 50 grams or more of methamphetamine from Feb. 18 to March 1, 2017. Fitchpatrick is also charged with possessing methamphetamine with the intent to distribute.
Fitchpatrick is charged with discharging a firearm during and in relation to a drug-trafficking crime. According to the indictment, Fitchpatrick discharged a Hi-Point .380-caliber semi-automatic handgun on March 1, 2017. Fitchpatrick is also charged with being a felon and an unlawful user of, or addicted to, a controlled substance while in possession of that firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Fitchpatrick has two prior felony convictions for being a felon in possession of a firearm; two prior felony convictions for the distribution, delivery, or manufacture of a controlled substance; three prior felony convictions for forgery; two prior felony convictions for possession of an illegal weapon; one prior felony conviction for using a telephone to facilitate the distribution of heroin; one prior felony conviction for burglary; and one prior felony conviction for tampering with a motor vehicle.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozarks Drug Enforcement Team, and the Joplin, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.St. Croix Man Sentenced to 36 Months for Possession of a Firearm While Under Indictment for Assault Third Degree and Possession of a Firearm During a Crime of ViolenceRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Sergio Rijo-Feliz, 27, of St. Croix, was sentenced to 36 months of incarceration for possession of a firearm while under indictment by District Court Judge Wilma A. Lewis on September 19, 2019. Judge Lewis also ordered Rijo-Feliz to pay a fine in the amount of $1,000.00, to supervised release for three years and to pay a special assessment of $100.00.
According to a plea agreement, and documents filed with the court, on October 2, 2018 Rijo-Feliz’ mother entered the Marshal Command Police Station, Christiansted, St. Croix, and reported that she found a firearm in his backpack which was in her car. She had just dropped Rijo-Feliz off at the Superior Court in Kingshill to sign in with the Probation Office. After discovering the firearm, she drove away while Rijo-Feliz was still at the courthouse. A subsequent search of the backpack revealed a 9mm Sturm Ruger handgun with one live round in the chamber and twenty live rounds in the attached magazine. An extended magazine with thirty 9mm live cartridges was also found inside the backpack along with a black ski mask, black wallet with a driver’s license and other ID’s belonging to Rijo-Feliz. Subsequent to his arrest, Rijo-Feliz admitted ownership and possession of the firearm.
At the time of the search, Rijo-Feliz was facing charges of Assault Third Degree and Possession of a Firearm During a Violent Crime in the Superior Court of the Virgin Islands. He had no license to possess a firearm in the Virgin Islands.
The case was investigated by the Virgin Islands Police Department and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Springdale Man Sentenced to More Than 10 Years in Federal Prison for Weapons and Drug PossessionRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Enrique Ramirez, age 27, was sentenced today to 120 months in federal prison, followed by three years of supervised release and ordered to pay $2,300.00 in fines for Possession with Intent to Distribute Methamphetamine and Felon in Possession of a firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, In February 2019, Ramirez was encountered and arrested on an unrelated warrant by law enforcement in Springdale, Arkansas. During the arrest, officers located several individual baggies of suspected methamphetamine and a firearm that was located in Ramirez’s waistband. The firearm was examined by ATF and determined that it had been manufactured outside of the State of Arkansas, therefore had been shipped and transported in interstate commerce. The DEA crime lab tested the seized methamphetamine and determined that it contained 30.6 grams of actual methamphetamine.
A federal grand jury indicted Ramirez in March 2019, and he entered a guilty plea in May 2019.
This case was investigated by the Springdale Police Department and ATF. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
Spirit Lake Man Pleads Guilty to Assault Resulting in Serious Bodily Injury of a ChildRead the Press Release
FARGO – First Assistant United States Attorney Nicholas Chase, District of North Dakota, announced that on September 17, 2019, Jonathan James Hill, age 22, an enrolled member of the Spirit Lake Sioux Tribe and the Sisseton Wahpeton Sioux Tribe, pleaded guilty before U.S. District Court Judge Peter D. Welte, Fargo, ND, to an Indictment charging him with Assault Resulting in Serious Bodily Injury.
At the plea hearing, Hill admitted that between December 26, 2018, and January 1, 2019, he assaulted a baby by hitting the baby with his fists and shoving the child into walls.
On January 1, 2019, emergency medical technicians responded to a residence in Fort Totten, ND, within the boundaries of the Spirit Lake Reservation, for a report of an unresponsive baby. Medical providers described the 20-month-old baby as “noticeably bruised to face & entire body.” The baby was diagnosed with multiple acute and chronic injuries to the brain and body. The injuries were characterized by medical providers as “non-accidental” and were determined to be consistent with abusive head trauma and child physical abuse. The baby’s injuries required air transport for medical treatment, surgical intervention, and months-long hospitalization.
Sentencing is scheduled for December 16, 2019, at 9:00 AM before Judge Peter D. Welte. A 10-year minimum prison sentence applies given the nature of the injuries and the age of the victim.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
This case was prosecuted by Assistant United States Attorney Lori H. Conroy.
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Seiling Man Sentenced to Five Years for Domestic Violence in Indian CountryRead the Press Release
OKLAHOMA CITY – JAMES DEAN LAMAR LaFOUNTAIN, 25, of Seiling, Oklahoma, has been sentenced to five years in federal prison for wounding his wife and later calling her from jail to instruct her not to testify against him, announced U.S. Attorney Timothy J. Downing.
According to a two-count superseding indictment, LaFountain assaulted his wife with a knife with the intent to do bodily harm and also attempted to strangle and suffocate her, all on November 25, 2018. The case was charged in federal court because LaFountain is an Indian and the alleged crimes took place in Indian Country. Originally arrested on tribal charges, LaFountain has been in the custody of the U.S. Marshals Service since January 3, 2019.
On April 25, 2019, LaFountain pleaded guilty to a two-count superseding information. At his plea hearing, he admitted he held his wife down and wounded her in Indian Country on November 25, 2018. He also admitted he committed the crime of tampering with a witness by calling his wife from jail in an attempt to get her not to testify against him.
At sentencing today, U.S. District Judge Charles Goodwin sentenced LaFountain to five years in the Bureau of Prisons, to be followed by three years of supervised release. The court took into account reports that LaFountain, while intoxicated, put a knife to his wife’s throat, attempted to strangle her, and threatened their children. The court also considered episodes of LaFountain’s escalating physical violence toward his wife, as well as his having placed numerous phone calls to her in early 2019 with instructions not to testify against him.
This sentence is the result of an investigation by the Bureau of Indian Affairs, with assistance from the Dewey County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jessica Cárdenas.
Reference is made to court filings for further information.
Scottsbluff Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Cody Metter, 31, formerly of Scottsbluff, Nebraska, was sentenced today in Lincoln, Nebraska, to 87 months in prison by Chief United States District Judge John M. Gerrard for receipt of child pornography. There is no parole in the federal prison system. In addition to his prison term, Metter will be required to serve 12 years on supervised release and register as a sex offender. Metter was also ordered to pay $4,000 in restitution.
In March of 2018 the National Center for Missing and Exploited Children (NCMEC) reviewed a CyberTip submitted by Snapchat, regarding a child pornography video uploaded on their platform. Agents with the Federal Bureau of Investigation were able to identify Metter as the account holder of the originating IP address that uploaded the video.
A federal search warrant was executed on Metter’s home in Scottsbluff in August of 2018, and computer equipment was seized. Forensic examination of the computer equipment located approximately 1,700 videos and more than 25,000 images of child pornography. Metter admitted that he had been receiving and downloading child pornography since he was 11 years old.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI’s Child Exploitation and Human Trafficking Task Force.
Sacramento Man Charged with Being A Felon in Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment yesterday against Dave Perkins Jr., 58, of Sacramento, charging him with being a felon in possession of firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, Perkins was found in possession of a semi-automatic pistol and a revolver. Perkins is a previously convicted felon and is prohibited by law from possessing a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sacramento Sheriff’s Office, and the Sacramento District Attorney’s Office. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, Perkins faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), 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.
Rush County Special Sheriff’s Deputy and Rushville fireman charged with sexual exploitation of a childRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Philip Michael Harr, 29, Rushville, Indiana, was charged by criminal complaint with Sexual Exploitation of a Child, and Distributing and Possessing Child Pornography. Harr had his initial appearance in the United States District Court on Thursday, September 19, 2019.
“Public officials are entrusted to perform their work duties and to serve the community without committing criminal conduct on the job,” said Minkler. “The U.S. Attorney’s Office is committed to identifying and prosecuting individuals who utilize social media and other vehicles to exploit innocent children.”
According to the allegations in the court documents, Harr used a social media application to pose as a teenage girl, and solicit images and videos depicting at least two minor victims engaged in sexually explicit conduct. The alleged victims were from Mississippi and Indiana. Harr used the same media application to allegedly distribute, receive, and possess images and videos of children engaged in sexually explicit conduct.
Harr allegedly engaged in much of this alleged criminal conduct while on duty as a Rush County Special Sherriff’s Deputy and a Rushville, Indiana fireman. Harr was also employed by the Rush County Government as a courtroom security officer and dispatcher. Harr is alleged to have misused his position of public trust by using a law enforcement database to conduct searches for one of his minor victims.
This investigation was jointly conducted by the Federal Bureau of Investigation and the Rush County Sheriff’s Department.
A spokesperson for the Rush County Sheriff’s Department said, “Our department would like to thank everyone involved in this investigation. Officers worked tirelessly to bring charges against Mr. Harr and seek justice for his victims.”
According to Assistant United States Attorney Tiffany J. Preston who is prosecuting this case for the government, Harr faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum of 30 years’ imprisonment if convicted on all counts.
A criminal complaint is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
If you believe you have been a victim of Philip Michael Harr, please contact the Indianapolis FBI Office at https://tips.fbi.gov/ or call 317-595-4000 to make a report.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Rochester Man Pleads Guilty to Firearms ChargeRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of LORENZO EUGENE HEARD JR., 38, to one count of felon in possession of a firearm. HEARD entered his guilty plea on September 19, 2019, before Judge David S. Doty, in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on May 1, 2018, while driving in Rochester, HEARD crashed his vehicle and fled the scene, leaving a loaded Cobra semiautomatic .380 caliber pistol in the vehicle. HEARD has been previously convicted of multiple violent offenses, including armed robbery, assault and drug charges, which prohibit him, under federal law, from owning or possessing a firearm.
This case is the result of an investigation conducted by the Rochester Police Department and the ATF.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant United States Attorney Bradley M. Endicott is prosecuting the case.
Defendant Information:
LORENZO EUGENE HEARD JR., 38
Rochester, Minn.
Convicted:
- Felon in Possession of a Firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rochester Man Charged with Sex Trafficking of A Minor and Possession of Child PornographyRead 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 Peter R. Kiwitt, 61, of Rochester, NY, was arrested and charged by criminal complaint with sex trafficking of a minor, sex trafficking of a minor using force, fraud, and coercion, and possession of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, in June 2017, the defendant was convicted in Monroe County, NY, of Possession of a Sexual Performance by a Child, and sentenced to serve 10 years’ probation, and designated as a Level 1 Sex Offender.
As alleged in the criminal complaint, on December 10, 2018, a vehicle the defendant was driving was pulled over by the Monroe County Sheriff’s Office. Also in the vehicle were two females, Adult Victim 1 (AV1) and Minor Victim 1 (MV1). The three individuals were questioned about drug related activity but released and later followed to a room at a motel in Penfield, NY. Officers went to the room and knocked on the door. Kiwitt indicated that he was dating AV1 but knew her to be a prostitute who belonged to another pimp known to law enforcement. He denied any involvement in prostitution at that time. Officers did not make any arrests at the time.
On January 23, 2019, Rochester Police Department officers responded to a residence in the City of Rochester for the report of a fatal overdose involving MV1. The owner of the apartment found MV1 deceased on his living room floor and called 911. He told officers he met MV1 through AV1, and that the night before, he brought MV1 back to his residence to engage in commercial sex acts with her.
Subsequent cell phone and Facebook searches uncovered conversations between the defendant, AV1, and MV1 regarding prostitution activities. Investigators also uncovered naked photos, some of which depicted child pornography.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and was detained. Kiwitt is due back in court on September 25, 2019, at 9:30 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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