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22 August 2019
Horseshoe Bend Woman Indicted for Wire FraudRead the Press Release
BOISE – Lois Soito, 60, of Horseshoe Bend, Idaho, was indicted August 14, 2019, by a federal grand jury on ten counts of wire fraud, U.S. Attorney Bart M. Davis announced. The indictment stems from an investigation by the Federal Bureau of Investigation and the Boise Police Department. The investigation was prompted by information uncovered by the Saint Alphonsus Health System.
As alleged in the indictment, Soito worked for the Saint Alphonsus Health System (SAHS) for approximately 22 years. From at least 2005 and continuing until January 2019, it is alleged that Soito defrauded SAHS and controlled at least $1,000,000 in unrecovered forfeitable property. The indictment further alleges that she collected and kept miscellaneous checks intended for SAHS rather than depositing them into the appropriate SAHS account. It is further alleged that Soito fraudulently deposited some of the miscellaneous checks she collected into the Employee Support Team bank account. Then, it is alleged, that Soito wrote Employee Support Team checks payable to herself and deposited them into accounts that she controlled. Soito allegedly wrote the checks to include the amount of miscellaneous checks she fraudulently deposited in the Employee Support Team account. For example, on or about June 22, 2018, it is alleged that Soito deposited an Employee Support Team check in the amount of $21,063.56, into her bank account.
It is further alleged in the indictment that Soito collected the cash from the Festival of Trees, under the guise of depositing it into the proper bank account. The indictment further alleges that instead of depositing the cash in the appropriate account, Soito kept the cash and substituted miscellaneous checks for the deposit.
The maximum punishment for wire fraud is 20 years imprisonment, up to 3 years supervised release, and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Boise Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proved guilty beyond a reasonable doubt in a court of law.
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Honduran National Is Sentenced to Prison for Sexual Contact with A MinorRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Arlen Flores, 49, a Honduran national and a permanent United States resident living in Cherokee, N.C., was sentenced to six years in prison for sexual contact with a minor. U.S. District Judge Martin Reidinger presided over the sentencing hearing.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Doug Pheasant of the Cherokee Indian Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and the sentencing hearing, on a date ranging from January to July 2017, Flores sexually abused a minor female victim. The sexual abuse occurred in Swain County and within the boundaries of Indian Country. The female victim, who is an enrolled member of the Eastern Band of Cherokee Indians, was under 12 years old at the time.
On February 22, 2019, Flores pleaded guilty to nonconsensual sexual contact. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Flores will also be subject to deportation proceedings upon the completion of his federal sentence. If Flores is not deported, or later returns to the United States, he was ordered by Judge Reidinger to serve a lifetime of supervised release and to register as a sex offender.
In making today’s announcement, U.S. Attorney Murray credited the FBI and CIPD for this investigation.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, is in charge of the prosecution.
Hoke County Man Sentenced to Forty Years for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, United States District Judge James C. Dever III sentenced TIM THACKER, 56, of Raeford, North Carolina, to 480 months imprisonment, followed by 5 years of supervised release.
THACKER was named in a two-count Indictment filed on June 26, 2018, charging him with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine (Count One) and one count of distribution of a of methamphetamine (Count Two). On February 5, 2019, THACKER pled guilty to charges.
In 2017, agents began investigating THACKER based on information that he was a large-scale methamphetamine supplier in the Fayetteville area and beyond. Agents interviewed witnesses and other individuals who have been convicted of Federal drug trafficking crimes from North Carolina, Georgia, South Carolina and Nevada – all of whom identified THACKER as a large scale, proactive methamphetamine dealer for the previous decade.
As the investigation progressed, THACKER became linked to individuals who were already being prosecuted by Federal Law Enforcement (DEA and ATF) that had not been previously linked to THACKER. Evidence ultimately linked THACKER to multiple drug trafficking operations throughout the United States. These operations ranged in location from Oklahoma, California to the East Coast. THACKER utilized a local, private airport to enhance his own drug trafficking organization and to open Eastern North Carolina to out of state, large scale methamphetamine suppliers.
After THACKER’S arrest for the Federal charges, law enforcement agents uncovered further drug trafficking crimes committed by THACKER even after he was in custody. On multiple occasions, THACKER arranged for methamphetamine to be disguised in various forms and shipped into jail. Once received, THACKER would distribute the methamphetamine to various inmates. Additionally, law enforcement confirmed that THACKER directed the drug trafficking activities of others from inside jail regularly, whether connecting sources of supply of methamphetamine to various individuals within Eastern North Carolina, or customers to drug dealers who worked for THACKER.
Mr. Higdon commented: “Tim Thacker might fairly be called a drug kingpin. And he has now received a kingpins sentence. His sentence reflects the large scale nature of his organization, its vast reach and the level of harm he brought to the people of the Eastern District. We are very pleased to see his criminal activity stopped.”
At sentencing, Judge Dever stated that the scale of THACKER’S operation, the persistence in THACKER’S distribution, and the urgent need to protect the public were just some of the reasons for the sentence imposed.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Investigation of this case was conducted by the Sampson County Sheriff’s Office, the Brunswick County Sherriff’s Office, the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Brad Knott represented the United States in this case.
Hazelwood Man Sentenced for Armed Carjacking SpreeRead the Press Release
St. Louis, MO – Jorion Garrett, 21, of Hazelwood, MO, was sentenced to 18 years imprisonment for three carjacking and two firearms charges. Garrett appeared today before U.S. District Judge Catherine D. Perry.
According to court documents, on October 28, 2017, near the 5600 block of Enright Avenue, St. Louis, Garrett approached the victim from behind. Garrett pointed a handgun at the victim, took the victim’s car keys, and drove away in the victim’s 2016 Dodge Charger. The Charger was later recovered near Garrett’s residence in Hazelwood, and Garrett’s DNA was located inside the vehicle.
On November 21, 2017, near the 10000 block of Edgefield, St. Louis County, Garrett and another individual pointed a firearm at a victim who had previously parked her vehicle in the driveway of her residence. Garrett told the victim to drop the keys on the seat and go in the house. He and the other individual drove away in the victim’s 2016 Dodge Journey. On December 3, 2017, police found the vehicle parked in the driveway of Garrett’s residence and later located Garrett’s DNA inside the vehicle.
On January 4, 2018, near the 8300 block of Sagewood Lane, Hazelwood, two victims were delivering food to a residence as part of the Meals on Wheels Program. One victim took the meals inside the home while the other remained standing outside near her silver 2014 Jeep. Garrett approached the victim along with another individual who pointed a handgun at the victim and told her to “get back.” Garrett entered the driver’s side of the Jeep and drove away with the other assailant. Garrett later fled from police while driving the Jeep, and after he abandoned it, police recovered a fingerprint and DNA belonging to Garrett from inside the vehicle.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives is investigating this case in cooperation with the Hazelwood Police Department, the St. Louis County Police Department, and the St. Louis Metropolitan Police Department. Assistant United States Attorney Lisa Yemm is handling this case.
Greensboro Man Sentenced to Ten Years in Prison in Child Pornography CaseRead the Press Release
GREENSBORO, N.C. – A Greensboro man who pleaded guilty to receipt of child pornography was sentenced on August 21, 2019, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
JORDAN CLARK WAGNER, 36, of Greensboro, North Carolina, pleaded guilty on April 1, 2019, to one count of receipt of child pornography. He was sentenced by United States District Judge William L. Osteen, Jr. to 120 months of imprisonment followed by 15 years of supervised release. He was ordered to pay a total of $29,000 in restitution to eight victims.
In 2017, investigators with both the Greensboro Police Department (GPD) and Homeland Security Investigations (HSI) were pursuing leads indicating that WAGNER was involved in the receipt and distribution of child pornography. In March 2018, investigators with GPD executed a search warrant at WAGNER’s residence. HSI provided assistance. GPD investigators seized multiple devices that contained child pornography, however they were unable to gain access to WAGNER’s locked phone. Ultimately, the phone was sent to North Carolina Crime Lab Digital Evidence Unit where forensic experts were able to access much of the phone’s information. WAGNER’s phone contained 294 images and 167 videos constituting child pornography. Further, investigators learned that WAGNER had used the phone to engage in sexual chats and image transfers with multiple individuals purporting to be minor boys 13, 14, and 15 years of age.
The Greensboro Police Department (GPD) and Homeland Security Investigations (HSI) are both members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant United States Attorney Eric L. Iverson.
It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. 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.
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Gang members among drug traffickers sentenced to federal prison in Operation Vanilla GorillaRead the Press Release
SAVANNAH, GA: Members of two criminal street gangs are among five additional defendants sentenced to substantial federal prison terms as prosecutions continue in Operation Vanilla Gorilla.
Andrew Campos, a/k/a “Chubs,” 29, of San Antonio, Texas, was sentenced to 235 months in prison by United States District Judge R. Stan Baker, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Campos was designated as a career criminal and has ties to the Tango Orejon gang, which operates largely in Texas prisons. He pled guilty to Conspiracy to Possess with Intent to Distribute Methamphetamine and for being a Felon in Possession of a Firearm.
Campos conspired with others, including affiliates of the Ghost Face Gangsters, to distribute large quantities of methamphetamine in the Savannah area. Operation Vanilla Gorilla, which dismantled the drug distribution network, was an Organized Crime Drug Enforcement Task Forces (OCDETF) operation that included the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Georgia Bureau of Investigation (GBI) and other state and local law enforcement agencies.
“Operation Vanilla Gorilla was an aggressive strike by law enforcement that continues to pay dividends. More prison sentences are removing more violent criminals from our midst,” said U.S. Attorney Bobby L. Christine. “By definition ‘career criminals’ plague law-abiding citizens, and we as prosecutors continue to work relentlessly to sweep them from our streets.”
The prosecution in Operation Vanilla Gorilla resulted in federal prison sentences for other members of this drug trafficking organization in recent days, including:
Brandon Chapman, 26, of Savannah, Ga., was sentenced to 130 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine, and 120 months in prison for being a Felon in Possession of a Firearm.
Rodney Rose, 39, of Hamilton, Ohio, was sentenced to 120 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine;
Cody Eubanks, 27, of Pembroke, Ga., was sentenced to 90 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine; and,
Christopher Hendrix, 40, Savannah, Ga., was sentenced to 72 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine. Hendrix was a leader of the Ghost Face Gangsters.
All of the defendants were on probation or parole when they committed the offenses, so the federal sentences begin after completion of their sentences for violating state probation or parole. There is no parole in the federal system.
As noted in court, these defendants had a combined total of more than 50 state criminal convictions, including at least 18 felony convictions, and more than 15 prior probation/parole violations. These five defendants were members of a major drug trafficking organization that distributed kilogram quantities of crystal methamphetamine (“ice”) in the Southern District of Georgia and elsewhere.
“There are some who think joining a gang or gang life is cool; I can assure you it’s not,” said Chatham-Savannah Counter Narcotics Team Director Everett Ragan. “Hopefully these individuals will use their time in federal prison to reflect on their poor decisions.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations. Agencies involved in the investigation included the ATF, the GBI, the Drug Enforcement Administration (DEA), the Chatham-Savannah Counter Narcotics Team (CNT), the Georgia Department of Corrections Intelligence Division, the Savannah Police Department, the Chatham County Sheriff’s Office, the Bryan County Sheriff’s Office, the Richmond Hill Police Department, the Pooler Police Department, the Effingham County Sheriff’s Office and the Bloomingdale Police Department, with assistance from the U.S. Marshals Service.
The case is being prosecuted by Assistant United States Attorneys E. Greg Gilluly Jr. and Frank Pennington.
Four Texas Mexican Mafia Members Sentenced for Attempted Murder and Assault with a Dangerous WeaponRead the Press Release
LONDON, Ky. – Eric “Big E” Flores, 38, of San Angelo, Texas, and Salomon Martinez, 44, of Eagle Pass, Texas, were sentenced this week, to 110 and 100 months respectively, by United States District Judge Robert E. Wier, for assaulting an inmate with a dangerous weapon. Co-defendants Rodney “Joker” Galindo, 38, of Odessa, Texas, and Michael “Taz” Morin, 52, of Austin, Texas, were sentenced to 300 and 262 months respectively, for attempted murder and possession of a prohibited object in the facility. Judge Wier also ordered Flores and Martinez pay victim restitution in the amount of $3,955.57. Galindo and Morin were ordered to pay victim restitution in the amount of $611,992.
Flores and Martinez were convicted by a federal jury in April of 2019. Galindo and Morin pled guilty in March of 2019. The evidence presented established that the Defendants were members of the MEXIKANEMI, Texas Mexican Mafia, and participated in the attempted murder and assault of two Arizona Mexican Mafia members, within United States Penitentiary (USP) Big Sandy. Both victims were repeatedly stabbed with metal shanks, in a cell block on June 17, 2018. The first victim sustained permanent and life-threatening injuries, including a depressed skull fracture and traumatic brain injury. The second victim sustained serious injuries that included a fractured scapula and significant stab wounds.
Under federal law, the Defendants must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky and Hector Joyner, Warden of USP Big Sandy, jointly made the announcement. The investigation was conducted by the USP Big Sandy Special Investigative Services Office. The United States was represented by Assistant United States Attorney Jenna E. Reed.
Former Vanguard Employee Sentenced to Four Years for Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Scott Capps, 48, of Coatesville, Pennsylvania was sentenced to 48 months’ incarceration, three years’ supervised release, restitution of $2,137,580 and forfeiture of $648,600 by United States District Judge Michael M. Baylson for a fraud scheme perpetrated while he was an employee of Vanguard.
On March 14, 2019, the defendant pleaded guilty to all counts in an indictment charging him with conspiracy to commit mail fraud, money laundering, and filing false tax returns. According to the indictment, between 2011 and 2014, Capps was an employee of Vanguard, an investment management group that managed trillions of dollars in assets for account holders throughout the world. The defendant admitted that through his employment he had access to dormant accounts that were due for escheatment, which is the process of turning over abandoned funds to the state.
The defendant stole the passwords of subordinates and used those passwords to access the system used to issue checks; he then submitted requests to have checks issued on certain dormant accounts to a co-conspirator. After depositing the checks into his own account, the co-conspirator issued to Capps checks drawn on one of his accounts. The total amount of the funds that the defendant stole exceeded $2.1 million. To Vanguard’s credit, all individual accounts were made whole after the defendant’s crimes were detected. At the guilty plea hearing, Capps also admitted that for the tax years 2013 and 2014, he had filed false tax returns that failed to report the income from his scheme.
“My office takes white collar offenses like wire fraud, tax fraud and money laundering very seriously,” said U.S. Attorney McSwain. “The defendant stole more than two million dollars by abusing his position with his former employer. My Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by this type of fraud.”
“No matter what the source of income, all income is taxable,” said Guy Ficco, IRS Criminal Investigation Special Agent in Charge. “Scott Capps failed to report the money he stole and that is a violation of the federal tax laws. Today, justice is served and he is being held accountable for his conduct. The IRS is proud to have shared its hallmark expertise in following the money trail in this and other increasingly sophisticated criminal schemes.”
“Scott Capps saw it as easy money,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Amass millions from dormant accounts, launder those funds, and enjoy. But crime truly doesn’t pay and now he’s being held accountable. We and our law enforcement partners would like to thank Vanguard management for their assistance in this matter. Know that the FBI will never let up on those who risk engaging in financial fraud.”
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service-Criminal Investigation and is being prosecuted by Assistant United States Attorney David J. Ignall.
Former Roseville Man Sentenced to 27 Months in Prison for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Erik Hermann Green, 37, of Huntington Beach, formerly of Roseville, to 27 months in prison and ordered him to pay $118,421 in restitution for his participation in a mortgage fraud scheme, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at a seven–day trial in March, Green was part of a large‑scale scheme to defraud the New Century Mortgage Corporation by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. In October 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses. The jury found him guilty of three counts of wire fraud.
“The defendant lied to mortgage lenders to obtain a substantial amount of money and a new home for himself, while causing hundreds of thousands of dollars in losses to lenders,” said Kareem Carter, Special Agent in Charge, IRS Criminal Investigation. “This case highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
This case was the product of an investigation by the IRS Criminal Investigation and the Alameda County District Attorney’s Office. Assistant U.S. Attorneys Michael D. Anderson and Miriam R. Hinman prosecuted the case.
Former Hillsborough Resident Sentenced to 51 Months in Prison for Investment Fraud SchemeRead the Press Release
SAN FRANCISCO—Michael James Frew was sentenced to 51 months in prison on wire fraud, mail fraud, and money laundering charges in connection with a fraudulent real estate investment scheme, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Kareem Carter. The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge, and included 3 years of supervised release to follow imprisonment, $500 in special assessments, and restitution in an amount to be determined.
According to the plea agreement, Frew, 70, formerly of Hillsborough, Calif., admitted that between 2010 and March of 2014, he solicited investments from numerous individuals on the false premise that he would invest their money in real estate. Frew sometimes claimed the real estate was in foreign countries and usually explained that the areas in which he would invest recently had been struck by a natural disaster. In truth, Frew did not invest his victims’ money in real estate. Instead, he used the money to speculate in the stock market, to make expenditures for personal expenses, and to repay other victim “investors.” Frew admitted that on several occasions he paid some of the money back to investors to make it seem like their investments were legitimate, which lulled his victims into a false sense of security that their money was properly invested. He further admitted he caused losses to his victims of up to $3.5 million.
A federal grand jury indicted Frew on July 26, 2018, charging him with two counts each of wire fraud, in violation of 18 U.S.C. § 1343; mail fraud, in violation of 18 U.S.C. § 1341; and money laundering, in violation of 18 U.S.C. § 1957. Frew pleaded guilty to all the charges except one count of mail fraud. Judge Chhabria dismissed the remaining charge at sentencing. Judge Chhabria scheduled a hearing to determine issues regarding restitution for October 16, 2019, at 1:30 p.m.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with assistance from Kathy Tat. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the IRS-CI.
Former Cooperstown Teacher Pleads Guilty to Sexually Exploiting Three ChildrenRead the Press Release
BINGHAMTON, NEW YORK – Justin Hobbie, age 41, of Springfield Center, New York, pled guilty today to three counts of sexual exploitation of a child.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Hobbie was a gym and health teacher in Cooperstown, New York, until his arrest in December 2018. In pleading guilty, Hobbie admitted that from 2015 to 2018, he persuaded, induced, enticed and coerced three girls under the age of 16 to masturbate and show him their genitalia by transmitting live depictions of this sexually explicit activity to him. These sexually explicit acts and images were recorded by Hobbie so that he could look at them again.
Hobbie also admitted that he persuaded, induced, enticed and coerced the three girls to take and send him pictures of their genitalia. In response to Hobbie’s instructions to do so, the three children took lewd and lascivious pictures of their genitalia for him, and at his request sent those pictures to him using the Kik and Snapchat phone messaging applications.
Senior United States District Judge Thomas J. McAvoy will sentence Hobbie on December 19, 2019. Hobbie faces at least 15 years in prison on each count, with a maximum penalty of 30 years in prison per count. The term of imprisonment for each count can run concurrent or consecutive to the term of imprisonment for other counts, at the discretion of the Court. Hobbie will be required to serve a term of supervised release of at least 5 years and up to life, following his term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Hobbie will also be required to register as a sex offender.
This case was investigated by HSI Albany with assistance from the New York State Police Computer Crimes Unit, the Internet Crimes Against Children Task Force, and U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Federal Judge Sentences Methamphetamine Dealer to 51 Months in PrisonRead the Press Release
ASHEVILLE, N.C. – Timothy Jason McCoy, 47, of Cherokee, N.C. was sentenced to today to 51 months in prison and four years of supervised release for possession with intent to distribute methamphetamine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Doug Pheasant of the Cherokee Indian Police Department join U.S. Attorney Murray in making today’s announcement.
On June 5, 2018, officers with the Cherokee Indian Police Department (CIPD) were conducting a driver license checkpoint in Swain County. According to court records, CIPD officers stopped the vehicle McCoy was driving. McCoy’s co-defendant, Patricia Jenkins, was a passenger in the vehicle. Over the course of the traffic stop, CIPD officers found 33 grams of methamphetamine, drug paraphernalia and a large amount of cash. Law enforcement also recovered a loaded pistol and shotgun.
On March 1, 2019, McCoy pleaded guilty to possession with intent to distribute methamphetamine. Jenkins previously pleaded guilty to the same charge and is currently awaiting sentencing.
The DEA and CIPD conducted the investigation. Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, is in charge of the prosecution.
Fall River Woman Sentenced for Drug ChargesRead the Press Release
BOSTON – The ex-wife of an MCI-Cedar Junction inmate was sentenced today in federal court in Boston in connection with smuggling drugs into the facility.
Lisa Guillemette, 42, was sentenced by U.S. District Court Judge Indira Talwani to time served (5 days) in prison and 30 months supervised release with the condition that she complete 300 hours of community service. In May 2019, Guillemette pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam. In September 2018, she was charged along with her former husband, William Guillemette, 39, and Chad Connors, 42, both inmates at Massachusetts Correctional Institute – Cedar Junction (MCI-CJ) in South Walpole. Guillemette’s former mother-in-law, Margaret Guillemette, 58, of Fall River was also charged
Chad Connors and William Guillemette were inmates housed at MCI-CJ’s Departmental Disciplinary Unit (DDU). Connors was involved in a romantic relationship with Christine Ramos, a nurse assigned to the DDU. At Connors’ request, Ramos agreed to smuggle contraband, including controlled substances, into MCI-CJ. In order to do this, Ramos opened two P.O. Boxes through a third party. Connors sent letters and money to Ramos at these P.O. Boxes and, at William Guillemette’s direction, Lisa and Margaret Guillemette, obtained and sent Suboxone and Alprazolam to the P.O. Boxes. Ramos subsequently smuggled the drugs into the DDU and delivered them to Connors. Connors and William Guillemette distributed the drugs to other inmates, who sent checks to Lisa and Margaret Guillemette as payment. Suboxone and Alprazolam are Schedule III and Schedule IV controlled substances, respectively.
Chad Connors previously pleaded guilty and is awaiting sentencing. William Guillemette pleaded guilty and was sentenced to18 months in prison to be served consecutive to the state sentence he is currently serving and three years of supervised release. Margaret Guillemette pleaded guilty and was sentenced to time served (five days), two years of supervised release and 200 hours of community service. Ramos pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam and was sentenced two years of probation.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Eleven Local Men Arrested in Sex Trafficking OperationRead the Press Release
United States Attorney Ron Parsons announced that the Division of Criminal Investigation (DCI), the South Dakota Internet Crimes Against Children Task Force, and U.S. Homeland Security Investigations (HSI) conducted a joint sex trafficking operation during the 2019 Sturgis Motorcycle Rally. The operation began on August 2, 2019, and continued through August 8, 2019.
As a result, the following eleven men from western South Dakota were arrested:
Jonathon Andrew Whitney, 32, Rapid City - Attempted Enticement of a Minor Using the Internet
Jeric Michael Davis, 28, Rapid City - Attempted Enticement of a Minor Using the Internet
Stanley Lee Lumbardy, 68, Spearfish - Attempted Enticement of a Minor Using the Internet
Kenneth R Williamson, 51, Rapid City - Attempted Enticement of a Minor Using the Internet
Sean Russell Gertsch, 27, Sturgis - Attempted Enticement of a Minor Using the Internet
Hugo Ruperto Duque, 39, Rapid City - Attempted Enticement of a Minor Using the Internet
Japher Y. Rajab, 41, Rapid City - Attempted Enticement of a Minor Using the Internet
Greydon Scott Shangreaux, 23, White River - Attempted Enticement of a Minor Using the Internet
Justin Oliver Westby, 45, Wall - Attempted Enticement of a Minor Using the Internet
Brennan John Hauk, 40, Rapid City - Attempted Enticement of a Minor Using the Internet
Josef Martin Pettit, 23, Piedmont - Attempted Enticement of a Minor Using the Internet
The mandatory minimum penalty upon conviction for Attempted Enticement of a Minor Using the Internet is 10 years up to life in federal prison; any term of years, not less than 5, up to lifetime supervised release; $100 to the Federal Crime Victims Fund; and a $5,000 assessment if not indigent.
The charges are merely accusations and all eleven defendants are presumed innocent until and unless proven guilty.
The Agencies involved in the operation were SD DCI, HSI, the U.S. Attorney’s Office, Rapid City Police Department, Pennington County Sheriff’s Office, Sioux Falls Police Department, and the Yankton Police Department.
The cases are being federally prosecuted by Assistant U.S. Attorney Sarah Collins.
The U.S. Attorney’s Office would like to extend its appreciation to all law enforcement partners involved in the investigations for their efforts and continued cooperation.
Detroit Police Officer Indicted for Taking $15,000 in Cash Bribes from A Drug TraffickerRead the Press Release
City of Detroit Police Officer Michael Mosley, 47, of Detroit, was indicted today by a federal grand jury on two counts of bribery for taking $15,000 in cash bribes from a drug trafficker, United States Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Rainer S. Drolshagen, Acting Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to the indictment, Officer Mosley is a nineteen year veteran of the Detroit Police Department. In April 2019, Mosley was a member of the Police Department’s Major Violators Unit. During an April 3, 2019 search of a drug trafficker’s residence pursuant to a search warrant, Detroit police officers, including Mosley, discovered two kilograms of heroin, one kilogram of cocaine, and six firearms. The drug trafficker then confessed to owning the three kilograms of drugs to Mosley, and the trafficker signed a confession. Subsequent to the April 3 search, Mosley remained in contact with the drug trafficker in an effort to secure the trafficker’s cooperation concerning other criminal activity.
The indictment further alleges that, at a certain point, the drug trafficker offered Officer Mosley a cash bribe of $15,000 in exchange for not pursuing criminal charges based on the three kilogram drug seizure. Officer Mosley agreed to the deal. On May 2, 2019, Officer Mosley collected $10,000 in cash, which the drug dealer had left for Mosley in the backyard of an abandoned house in Detroit. On May 23, Officer Mosley accepted another $5,000 in cash left for him at the abandoned house. In exchange, Officer Mosley gave the trafficker the original copy of the drug trafficker’s signed confession.
Each of the two bribery charges carry a maximum sentence of 10 years imprisonment and a fine of $250,000.
“Although the vast majority of police officers in Michigan are fully dedicated to protecting the public, sometimes there is an infrequent example of an officer driven by corruption and greed,” stated United States Attorney Matthew Schneider. “I am thankful to Detroit Chief of Police James Craig for his commitment to combating corruption, so that the rare example of bribery does not overshadow the outstanding work of so many other great police officers.”
“Officer Mosley allegedly engaged in conduct that betrayed the oath he took to faithfully serve the people of Detroit,” said Acting Special Agent in Charge Rainer S. Drolshagen. “His behavior should not take away from the outstanding work done each day by the vast majority of law enforcement professionals at the Detroit Police Department.”
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney David A. Gardey.
An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Defendant Sentenced to 18 Months’ Imprisonment for Participating in Conspiracy to Distribute Powder Cocaine and CrackRead the Press Release
PITTSBURGH - A resident of Penn Hills, Pennsylvania, was sentenced in federal court yesterday for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone sentenced Douglas Williams, 38, to serve 18 months in prison following his guilty plea on April 24, 2018, to one count of conspiracy.
In connection with the guilty plea, Williams admitted that from in and around April 2016, and continuing thereafter to in and around October 2016, he conspired with others to distribute and possess with intent to distribute 28 grams or more of crack and 500 grams or more of powder cocaine. During his plea colloquy, the defendant admitted that he obtained powder cocaine from Jack Brown, a co-defendant, which the defendant converted to crack and sold to another member of the conspiracy, Mark Fisher, for further distribution.
The defendant is one of nine co-defendants who were indicted for their roles in the conspiracy on August 1, 2017. To date, all nine defendants have entered guilty pleas, and eight have been sentenced.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and comprises members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. 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.
Convicted murderer and Gangster Disciple found guilty of running drug trafficking ring from inside Georgia prisonRead the Press Release
SAVANNAH, GA: A convicted murderer serving a life sentence was convicted of leading a major drug trafficking conspiracy from inside a Georgia state prison.
Eugene Markeith Allen, a/k/a “Poncho,” 42, a former Savannah resident, was convicted of Conspiracy to Possess with Intent to Distribute and to Distribute 500 Grams of More of Cocaine, and Conspiracy to Possess with Intent to Distribute and to Distribute 50 Kilograms or More of Marijuana by a jury in U.S. District Court in Savannah, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry a possible sentence of up to 40 years in federal prison.
Also convicted in the trial was co-conspirator Karteau Omar Jenkins, a/k/a “Yay,” 42, of Atlanta, on two counts of Conspiracy to Possess with Intent to Distribute and to Distribute 500 Grams of More of Cocaine, and one count of Conspiracy to Possess with Intent to Distribute and to Distribute 50 Kilograms or More of Marijuana. Sentencing for both Allen and Jenkins will be held at a later date
Allen, while incarcerated at Autry State Prison for a 2006 murder conviction, used smuggled contraband phones to direct Jenkins and other members of the extensive drug trafficking conspiracy that imported marijuana and cocaine from California into Atlanta and throughout the Savannah area.
“This hard-fought conviction represents a major step in the continued prosecution of ruthless drug traffickers and gang members who reached from coast to coast in distributing their poison,” said U.S. Attorney Christine. “Thanks to the coordinated efforts of law enforcement agencies, however, these traffickers have hit a dead end in the Southern District of Georgia.”
Allen, a leader in the Gangster Disciples street gang, was one of 22 defendants indicted in August 2017 in Operation Five Hole, a multi-agency investigation targeting the drug trafficking organization that hid cash proceeds from drug sales in cotton candy machines for shipment by U.S. Mail and in vehicles with hidden compartments. The operation netted the seizure of pounds of marijuana and kilos of cocaine, along with nearly $400,000 in cash and multiple firearms.
“Not even prison bars could keep this defendant from continuing to commit crimes that threaten our citizens’ safety,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Even while in prison Allen directed his fellow conspirators to prey upon the good people of our communities. The FBI is dedicated to ending their reign of terror no matter where they are.”
“Eugene ‘Poncho’ Allen poisoned and terrorized our community when he lived here and managed to continue to do the same from behind bars,” said Chatham-Savannah Counter Narcotics Team Director Everett Ragan. “Thankfully, his time has finally come to an end. This case should serve as a reminder that no one is above the law or too big to be stopped.”
This investigation was conducted by the FBI, the Chatham County Narcotics Unit (CNT), the Savannah Police Department, the Chatham and Effingham County Sheriffs’ Offices, the U.S. Postal Inspection Service and the U.S. Marshals Service as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations.
The cases were prosecuted for the United States by Special Assistant U.S. Attorney/Assistant District Attorney Noah Abrams and Assistant U.S. Attorney Frank Pennington, with assistance from Litigation Technologist Dean Athanasopoulos.
Convicted Felon Sentenced for Drug Trafficking and Firearms PossessionRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 19 years in prison for possessing a firearm after being convicted of a felony and possessing cocaine with the intent to distribute.
According to court documents, James R. Smith, Jr., 39, sold fentanyl to a controlled source on four occasions from two separate residences in Richmond. When law enforcement executed search warrants at Smith’s two residences, they recovered two semi-automatic handguns, nearly $150,000 in U.S. currency, and over 70 grams of narcotics comprised of fentanyl, heroin, cocaine, and crack cocaine.
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, and 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 Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Kenneth Simon 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. 3:19-cr-44.
Commercial Fisherman Sentenced for Illegally Harvesting and Selling OystersRead the Press Release
NORFOLK, Va. – A Tangier Island man was sentenced today to one year in prison for violating the Lacey Act by harvesting oysters from the Chesapeake Bay in excess of Virginia limits and transporting them to Maryland for sale.
“The oyster is a species integral to both the ecosystem and the economy of Virginia and the greater Chesapeake Bay region,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “In choosing to disregard regulations established with a conscious eye towards preserving a population that has seen significant decline, Parks’ conduct threatened to impact not just the efforts to protect that resource, but also people whose livelihoods are connected to the oyster fishery.”
According to court documents, Gregory Wheatley Parks Jr., 44, was the captain of the fishing vessel Melissa Hope. He was aware of the limits set on oyster harvesting, as well as his obligation to accurately report the quantity of oysters harvested to Virginia Marine Resources Commission (VMRC). On seven separate dates between January 2015 and March 2015, Parks harvested oysters in excess of the Virginia daily catch limit. He transported those oysters to a fish dealer in Maryland, where he sold them. For each of these trips, Parks falsely reported to the VMRC that he had harvested a legal quantity of oysters. Parks pleaded guilty to one count of Trafficking under the Lacey Act, a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally.
“The overharvesting of oysters hurts efforts to restore the species’ population after significant decline, harming both the environment and the law-abiding watermen who choose to follow the rules rather than gain an unfair advantage,” said Jeffrey Bossert Clark, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s sentence demonstrates that people who choose to illegally exploit this valuable resource for personal gain will face the criminal law consequences Congress has ordained.”
The oyster (Crassotrea virginica) is a keystone species in the Chesapeake Bay due to its ability to build reefs that serve as a habitat for numerous fish species. Oysters also improve the Bay’s water quality through filtration. Virginia limits the daily harvest of oysters to eight bushels per registered commercial fisherman for the purpose of conserving the state’s oyster resources. It also requires commercial fishermen to submit daily harvest records to the VMRC that report the amount of oysters harvested.
“The U.S. Fish and Wildlife Service Office of Law Enforcement proudly protects our nation's wildlife and wild places for the continuing benefit of the American people,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “Overharvest of aquatic ecosystems is a serious crime that hurts native species, local communities and the economy. By complying with laws that protect wildlife, the American public can help conserve our nation's natural resources for generations to come.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jeffrey Bossert Clark, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, and Edward Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Joseph L. Kosky and Trial Attorney Lauren D. Steele of the Justice Department’s Environmental Crimes Section 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. 2:19-cr-14.
Commercial Fisherman Sentenced for Illegally Harvesting and Selling OystersRead the Press Release
A Virginia man was sentenced to 12 months in prison by Senior U.S. District Judge Henry Coke Morgan Jr., after pleading guilty to federal charges relating to the illegal harvest and sale of oysters from Virginia waters.
According to the indictment and information in the public record, Gregory Wheatley Parks Jr., 44, of Tangier Island, Virginia, was the captain of the fishing vessel Melissa Hope. He was aware of the limits set on oyster harvesting, as well as his obligation to accurately report the quantity of oysters harvested to the Virginia Marine Resources Commission (VMRC). On seven separate dates between Jan. 15, 2015, and March 3, 2015, Parks harvested oysters in excess of the Virginia daily catch limit. He transported those oysters to a fish dealer in Maryland, where he sold them. For each of these trips, Parks falsely reported to the VMRC that he had harvested a legal quantity of oysters. Parks pleaded guilty to one count of Trafficking under the Lacey Act, a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally.
The oyster (Crassotrea virginica) is a keystone species in the Chesapeake Bay due to its ability to build reefs that serve as a habitat for numerous fish species. Oysters also improve the Bay’s water quality through filtration. Virginia limits the daily harvest of oysters to eight bushels per registered commercial fisherman for the purpose of conserving the state’s oyster resources. It also requires commercial fishermen to submit daily harvest records to the VMRC that report the amount of oysters harvested.
“The overharvesting of oysters hurts efforts to restore the species’ population after significant decline, harming both the environment and the law-abiding watermen who choose to follow the rules rather than gain an unfair advantage,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Today’s sentence demonstrates that people who choose to illegally exploit this valuable resource for personal gain will face the criminal law consequences Congress has ordained.”
“The oyster is a species integral to both the ecosystem and the economy of Virginia and the greater Chesapeake Bay region,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “In choosing to disregard regulations established with a conscious eye towards preserving a population that has seen significant decline, Parks’ conduct threatened to impact not just the efforts to protect that resource, but also people whose livelihoods are connected to the oyster fishery.”
“The U.S. Fish and Wildlife Service Office of Law Enforcement proudly protects our nation's wildlife and wild places for the continuing benefit of the American people,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “Overharvest of aquatic ecosystems is a serious crime that hurts native species, local communities and the economy. By complying with laws that protect wildlife, the American public can help conserve our nation's natural resources for generations to come.”
The investigation was conducted by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, with assistance from the Maryland Natural Resources Police and the Virginia Marine Police. This case was prosecuted by Trial Attorney Lauren D. Steele of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Joseph L. Kosky for the Eastern District of Virginia.
Colorado Springs Man Sentenced to Eight Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Rodney Paul Gonzales, age 53, of Colorado Springs, Colorado, was sentenced to 96 months in federal prison, followed by 3 years on supervised release for being a felon in possession of a firearm. Gonzales was initially charged by criminal complaint and was subsequently indicted by a federal grand jury on September 11, 2018. He pled guilty before U.S. District Court Senior Judge Robert E. Blackburn on March 20, 2019, and was sentenced yesterday. The defendant appeared at the sentencing hearing in custody and was remanded at its conclusion.
According to the stipulated facts contained in Gonzales’s plea agreement as well as facts presented at sentencing, Colorado Springs Police Department officers encountered the defendant in an apartment complex parking lot after receiving a 911 call from a concerned citizen. When officers arrived, they found the defendant, who was heavily intoxicated, passed out in a vehicle with the driver’s side door open. All of the other doors were locked. The defendant was spread out from the driver’s seat, over the top of the center console, onto the passenger’s seat. Officers could see a handgun lying immediately next to him on the passenger’s seat. The firearm, which had an obliterated serial number, was loaded with four rounds in the magazine and one round in the chamber. Within easy reach of the defendant, in the center console, officers located an additional 10 rounds of ammunition as well as a small amount of suspected crack cocaine and a crack pipe.
The officers removed the firearm from the vehicle without injury to any officer, bystander, or the defendant. The defendant’s prior felony convictions include serious crimes, such as attempted second-degree burglary, second-degree assault, violent crime with the use of a weapon, and felony menacing with a weapon.
“Mr. Gonzales had eleven chances to change his ways and should have never been anywhere near a loaded gun,” said United States Attorney Jason Dunn. “Our ability to get significant prison sentences under the federal Felon in Possession law is a tool that we gladly wield to help our local law enforcement partners get particularly violent or repeat offenders off the streets.”
“This is another example of our successful partnership with the Colorado Springs Police Department,” said Denver ATF Special Agent in Charge David Booth. “We are proud to have worked with the department to keep our communities safe.”
This case was investigated by the ATF with substantial assistance from the Colorado Springs Police Department. The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster.
This case is part of Project Safe Neighborhoods (PSN). 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.
CASE NUMBER: 18-cr-413
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Chinese National Indicted in Southern District of Mississippi Designated by U.S. Treasury Department as Significant Foreign Narcotics TraffickerRead the Press Release
Jackson, Miss. – U.S. Attorney Mike Hurst announced today that Xiaobing Yan, a Chinese National indicted in the Southern District of Mississippi, has been designated by the U.S. Department of the Treasury as a significant foreign narcotics trafficker pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).
The Department of the Treasury announced yesterday it is identifying two Chinese nationals and a China-based Drug Trafficking Organization as significant foreign narcotics traffickers pursuant to the Kingpin Act and designated one associate and a China-based entity for being owned or controlled by one of the Chinese nationals.
Xiaobing Yan was indicted in the Southern District of Mississippi on September 7, 2017. He is the first manufacturer and distributor of fentanyl and other opiate substances to be indicted in the history of the United States while being designated as a Consolidated Priority Organization Target (CPOT). CPOT designations are those who have "command and control" elements of the most prolific international drug trafficking and money laundering organizations and are considered by DEA to be some of the most significant drug trafficking threats in the world.
Yan is charged in the Southern District of Mississippi with two counts of conspiracy to manufacture and distribute multiple controlled substances, including fentanyl and fentanyl analogues, and seven counts of manufacturing and distributing the drugs in specific instances. According to the indictment, Yan, a distributor of a multitude of illegal drugs, used different names and company identities over a period of at least six years and operated websites selling acetyl fentanyl and other deadly fentanyl analogues directly to U.S. customers in multiple cities across the country. He also operated at least two chemical plants in China that were capable of producing ton quantities of fentanyl and fentanyl analogues. Yan monitored legislation and law enforcement activities in the United States and China, modifying the chemical structure of the fentanyl analogues he produced to evade prosecution in China. Over the course of the investigation, federal agents identified more than 100 distributors of synthetic opioids involved with Yan’s manufacturing and distribution networks. Federal investigations of the distributors are ongoing in 10 judicial districts, and investigators have traced illegal proceeds of the distribution network. In addition, law enforcement agents intercepted packages mailed from Yan’s Internet pharmaceutical companies, seizing multiple kilograms of suspected acetyl fentanyl, potentially enough for thousands of lethal doses. If convicted, Yan faces a maximum sentence of 20 years in prison, a $1 million fine and three years of supervised release. The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. A defendant is presumed innocent until proven guilty in a court of law.
The White House, through the Office of National Drug Control Policy (ONDCP), unveiled a series of private-sector advisories yesterday to help domestic and foreign businesses better protect themselves and their supply chains from inadvertent fentanyl trafficking, explain how fentanyl traffickers exploit their businesses and their supply chains to move and market deadly drugs, and foster deeper public-private collaboration to curb the production and sale of illicit fentanyl, fentanyl analogues, and other synthetic opioids. To see the announcement from the White House, click HERE.
The ONDCP advisories are focused on four facets of the trafficking of illicit fentanyl, fentanyl analogues, and synthetic opioids destined for the United States: manufacturing, marketing, movement, and money. Links to each of the advisories, along with a summary can be accessed below.
• Manufacturing: Describes the unique characteristics of manufacturing illicit synthetic opioids to assist stakeholders in combating the scourge of fentanyl and other synthetic opioids.
• Marketing: Raises awareness about the marketing and sale of illicit fentanyl via vulnerable and unsuspecting private-sector digital platforms, including social media, e-commerce sites, and online forums.
• Movement: Increases awareness about the entities at each stage of the illicit fentanyl and synthetic opioids supply chain, including information that can help identify and prevent the movement of these deadly drugs into the United States and during domestic distribution.
• Money: Alerts financial institutions to help them detect and report on illicit financial schemes and money laundering mechanisms related to the trafficking of fentanyl, fentanyl analogues, and other synthetic opioids.
To access a one-page summary of the 21st Century Drug Trafficking: Advisories on Fentanyl and Other Synthetic Opioids, click HERE.
To view past press releases from our office relating to Xiaobing Yan, see:
• Justice Department Announces First Ever Indictments Against Designated Chinese Manufacturers of Deadly Fentanyl and Other Opiate Substances, October 17, 2017
• First in the Nation Criminal Indictment of a Chinese National for Manufacturing and Distributing Fentanyl and Other Opiates, October 19, 2017
Chicago Man Who Traveled to Western North Carolina to Engage in A Sexual Activity with A Minor Is Sentenced to 14 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced that Anthony Ryan Moore-Powell, 26, of Chicago, Illinois, was sentenced to 14 years in prison, on charges of coercion and enticement of a minor. U.S. District Judge Martin Reidinger also ordered MoorePowell to serve a lifetime of supervised release and to register as a sex offender.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Chief Herbert Blake of the Hendersonville Police Department, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on September 27, 2018, HSI became aware that Moore-Powell was using the Dark Web to locate a minor for the purpose of engaging in sexual activity. An undercover HSI agent posing as the father of an 8year-old boy began communicating with Moore-Powell. Over the course of their online exchanges, Moore-Powell agreed to pay $1,500 in exchange for engaging in sexual activity with the minor over the course of a weekend. Moore-Powell also discussed with the undercover agent the gifts he would bring for the minor, and other details pertaining to the commission of the sexual assault. Moore-Powell also sent child pornography videos to the undercover agent, requesting that they be shown to the boy.
On November 15, 2018, Moore-Powell flew from Chicago to Asheville, where he rented a vehicle and checked in at an area hotel. Moore-Powell then met with an undercover agent who was posing as the child’s father, and paid the agent $200 in cash as down payment in exchange for engaging in sex with the minor. After the meeting, Moore-Powell returned to his hotel room to await the arrival of the child. Law enforcement agents arrested Moore-Powell in the parking lot of the hotel.
Law enforcement searched Moore-Powell’s rental vehicle, where they located toys and electronics intended as gifts for the minor, and $1300 in cash. Moore-Powell was also in possession of computer storage devices that contained child pornography.
On February 25, 2019, Moore-Powell pleaded guilty to coercion and enticement of a minor. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked HSI and the Hendersonville Police Department for their investigation of this case.
The U.S. Attorney’s Office in Asheville prosecuted the case.
Broward County Resident Pleads Guilty to Knowingly Making False Statements in Order to Unlawfully Acquire FirearmsRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division announced that Bill K. Kapri, a/k/a “Kodak Black,” a/k/a “Dieuson Octave,” 22, of Pompano Beach, FL, pled guilty today to two counts of knowingly making a false and fictitious written statement in connection with the acquisition and attempted acquisition of a firearm from a federally licensed firearms dealer before U.S. District Judge Federico A. Moreno (Case No. 19-cr-20273).
According to the court record, including the agreed upon factual proffer, Kapri, on January 25, 2019 and March 1, 2019, completed ATF Form 4473. On both occasions, Kapri answered “No” when asked, “Are you under indictment or information in any court for a felony, or any other crime for which the judge could imprison you for more than one year.” On both occasions, as Kapri then and there well knew, Kapri was, in truth and in fact, under indictment for a felony offense. On January 25, 2019, Kapri transposed several digits of his social security number and thus was able to pick up three firearms on February 1, 2019. On March 1, 2019, Kapri used his true social security number and, as a result, was not permitted to pick up a fourth firearm.
At sentencing, Kapri faces a maximum statutory sentence of 10 years in prison, to be followed by 3 years of supervised release.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF in this matter. This case is being prosecuted by Assistant U.S. Attorney Bruce Brown.
Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bronx Man Sentenced to 27 Years in Prison for Murder of Innocent BystanderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RICHARD FELIZ, a/k/a “Dirt,” was sentenced to 27 years in prison for murdering Victor Chafla, an innocent bystander, while shooting at a rival gang member. FELIZ was sentenced on August 16, 2019, by U.S. District Judge Victor Marrero, before whom FELIZ previously pled guilty to narcotics and firearms offenses.
U.S. Attorney Geoffrey S. Berman said: “On March 26, 2015, Victor Chafla was stocking produce outside a grocery store when he was shot in the head, an innocent bystander struck down by senseless gang violence. For committing this terrible murder, Richard Feliz will now serve 27 years in prison. We thank our partners at HSI and the NYPD for their outstanding work pursuing justice for Mr. Chafla. Our hearts go out to Mr. Chafla’s family for their terrible loss.”
According to the allegations contained in the Indictment and statements made in related court filings and proceedings:
Between 2013 and 2017, FELIZ was a member of a racketeering enterprise known as the “Rollin’ 30s Crips,” a street gang that operated in the Bronx, among other places. In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Rollin’ 30s Crips committed, conspired, attempted, and threated to commit acts of violence, including murder and robbery, and conspired to distribute and possess with intent to distribute narcotics.
On March 26, 2015, during a dispute with a member of a rival gang, FELIZ shot at that rival, but instead struck Victor Chafla in the head, while Chafla was working outside at a grocery store. Chafla died from his wounds a few days later.
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In addition to the prison term, FELIZ, 23, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Berman praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jessica Fender, Anden Chow, and Jacqueline Kelly are in charge of the prosecution.
Bringing Man’s Best Friend to the Scene of the Crime Leads to Federal Prison Sentence for Nashua ManRead the Press Release
A convicted felon who possessed a gun was sentenced August 15, 2019, to one year in federal prison.
Bradley Dean Mohring, age 56, from Nashua, Iowa, received the prison term after an April 5, 2019 guilty plea to being a felon in possession of a firearm.
Evidence at a previous hearing showed that in October 2018, officers were investigating a burglary at a co-op in Nashua, Iowa. During the investigation, officers reviewed video footage from the burglary. They were able to see a dog present at the time of the burglary. Police identified the dog as Mohring’s. Officers then searched Mohring’s home and recovered some of the property stolen in the burglary. Officers also found a rifle and ammunition. Mohring was previously convicted of a felony drug trafficking offense in Colorado.
Mohring was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mohring was sentenced to 12 months’ imprisonment He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mohring is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Nashua Police Department and the Chickasaw County Sheriff’s Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-02002.
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Boston Man Indicted for Armed Robbery of North End MarketRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for the armed robbery of a grocery store in Boston’s North End.
Dante Mirabella, 52, was charged with one count of interfering with commerce by robbery, one count of brandishing a firearm during a crime of violence and one count of being a felon in possession of a firearm and ammunition. Mirabella has been in custody since May 31, 2019, when he was arrested on state charges.
It is alleged that Mirabella robbed Bob’s Grocery Store on May 30, 2019, while brandishing a Hi-Point .380 caliber semi-automatic pistol. According to the indictment Mirabella is prohibited from possessing any firearm or ammunition due to a prior felony conviction.
The charging statute for interfering with commerce by robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of brandishing a firearm during a violent crime provides for a mandatory minimum sentence of 10 years and up to life in prison, to be served consecutive to any other sentence imposed, up to five years of supervised release and a maximum fine of $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Boston Police Commissioner William G. Gross made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boise Man Arrested for Possession of Child PornographyRead the Press Release
BOISE – Jonathan Schmidt, 40, of Boise, was arrested yesterday for possession of child pornography, U.S. Attorney Bart M. Davis announced. Schmidt is charged by federal complaint. He is scheduled to make his initial appearance in federal court today at 2:45 PM before U.S. Magistrate Judge Candy W. Dale.
The complaint alleges that between January 29 and August 21, 2019, Schmidt knowingly possessed files of child pornography.
The charge of possession of child pornography is punishable by up to 20 years in prison, a $250,000 fine, and a lifetime of supervised release.
The case was investigated by the Idaho Internet Crimes Against Children Task Force, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
A complaint is only an allegation of criminal conduct and is not evidence of a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Big Timber man sentenced for possession of meth for distributionRead the Press Release
BILLINGS—Big Timber resident Eric Daniel Gibson was sentenced today to six years in prison and five years of supervised release after he admitted to possessing methamphetamine for distribution, U.S. Attorney Kurt Alme said.
Gibson, 28, pleaded guilty in February to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In June 2017, Sweet Grass County Sheriff’s deputies responded to a single vehicle rollover near Interstate 90. Blood in the car suggested the driver was injured, the prosecution said in court documents. Witnesses said that the vehicle’s sole occupant had taken off running toward a nearby ranch. When the vehicle was turned upright, law enforcement found a cell phone and collected plastic baggies of meth and an ammunition tray. Gibson was found walking on the railroad tracks near the site of the accident. Investigators executed a search warrant on the cell phone and found text messages indicating meth distribution. The meth recovered totaled about 48.5 grams.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The 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.
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Beckley Man Sentenced to Federal Prison for Gun CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man was sentenced to federal prison for illegally possessing a firearm, announced United States Attorney Mike Stuart. Turner Williams, 28, was sentenced to 30 months in prison, to be followed by a three year term of supervised release, for being a felon in possession of a firearm.
Williams previously admitted that on January 9, 2018, agents with the Alcohol, Tobacco, Firearms, and Explosives (ATF), with the assistance of a confidential informant, conducted a controlled purchase of firearms. During the controlled purchase, Williams admitted that he retrieved two guns from another location and returned to the site of the controlled purchase and delivered a Taurus, PT111, 9mm semi-automatic pistol to the confidential informant working with the ATF. At the sentencing hearing it was established that Williams was subject to an increased sentence due to one of the firearms containing a high capacity magazine which held 35 rounds of ammunition. He admitted that knew he was not supposed to possess any firearms because he was a convicted felon. Williams was prohibited from possessing any firearm under federal law because he was previously convicted in 2013 in Raleigh County Circuit Court of the felony offense of Wanton Endangerment with a Firearm.
The ATF, the Beckley Police Department, and the Beckley/Raleigh County Drug Task Force conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: SDWVNews and USAttyStuart
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August Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 26 indictments charging 27 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Juan Aguilar Pacheco, a/k/a Gallo, a/k/a Jesus Cruz-Perez, age 38, is charged in a two-count Indictment. Counts I and II charge the defendant with distribution of 50 grams or more of methamphetamine on or about May 2, 2019 and continuing through July 1, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment on each count, $5,000,000 fine on each count, 4-year term of supervised release on each count, and a $100 special assessment on each count.
* Pedro Avendano-Molina, age 59, is charged with illegal reentry after deportation on or about August 4, 2019, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jaime Barrera Sotelo, age 36, is charged with illegal reentry after deportation on or about July 26, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Isaias Cortez Garcia, age 36, is charged with illegal reentry after deportation on or about July 24, 2019, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jaime Cuella Macua, age 32, is charged with illegal reentry after deportation on or about July 29, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Tyler Dodge, age 25, is charged in a two-count Indictment. Counts I and II charge the defendant with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about November 11, 2018 and continuing through December 21, 2018. The maximum possible penalty if convicted is 40 years’ imprisonment on each count, $5,000,000 fine on each count, 4-year term of supervised release on each count, and a $100 special assessment on each count.
* Isiah Gandy, age 28, of Omaha, is charged in a two-count Indictment. The Indictment charges the defendant with wire fraud on or about December 2, 2014 and continuing through December 23, 2014. The maximum possible penalty if convicted is 20 years’ imprisonment on each count, a $250,000 fine on each count, a 3-year term of supervised release on each count, and a $100 special assessment on each count.
* Miguel Garcia-Flores, age 30, is charged in a two-count Indictment. Count I charges the defendant with fraudulent use of a social security account number beginning on or about September 24, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraudulent use of identification documents to obtain employment on or about September 24, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Christian Eduardo Gaxiola, age 37, of Greeley, Colorado, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about May 3, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
* Jorge Herrera Vargas, age 44, is charged with illegal reentry after deportation following a felony conviction on or about August 5, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Adan Inzunza-Barreras, age 26, of Omaha, is charged in a four-count Indictment. Count I charges the defendant with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, (mixture) beginning on or about May 23, 2019 and continuing to on or about June 27, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 500 grams or more of methamphetamine, (mixture) beginning on or about June 27, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment. Count III charges the defendant with distribution of 50 grams or more of methamphetamine, (actual) beginning on or about May 23, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment. Count IV charges the defendant with distribution of 50 grams or more of methamphetamine, (mixture) beginning on or about Jun 14, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about June 27, 2019.
* Nathan Lee Kempter, age 32, of Highlands Ranch, Colorado, is charged in a two-count Indictment. Count I charges the defendant with enticement of a minor on or about July 15, 2019. The maximum possible penalty if convicted is Life imprisonment, a $250,000 fine, a Life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment. Count II charges the defendant with travel with intent to engage in illicit sexual conduct on or about August 2, 2019. The maximum possible penalty if convicted is 30 years’ imprisonment, a $250,000 fine, a Life term of supervised release, a $100 special assessment, and a $5,000 additional special assessment.
* Abuhussein A. Khattab, age 28, of Omaha, is charged in a two-count Indictment. The Indictment charges the defendant with possession by a prohibited person on or about November, 2017 and continuing through April, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment on each count, a $250,000 fine on each count, a 3-year term of supervised release on each count, and a $100 special assessment on each count.
* Patricia Lopez-Hernandez, age 35, is charged with illegal reentry after deportation following a felony conviction on or about August 7, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Chad A. Loseke, age 39, of Hastings, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine (mixture) on or about June 3, 2019. The maximum possible penalty if convicted is Life imprisonment, $8,000,000 fine, - year term of supervised release, and a $100 special assessment.
* Ismael Nunez Labra, age 36, is charged with illegal reentry after deportation following a felony conviction on or about July 9, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jorge Paz-Aguilar, age 34, is charged with illegal reentry after deportation on or about August 5, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Roman Anthony Perales, age 21, of Winnebago, Nebraska, is charged in a seven-count Indictment. Count I of the Indictment charges the defendant with assault with intent to commit any felony on or about July 25, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with assault of a dangerous weapon with intent to do bodily harm on or about July 25, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with assault resulting in serious bodily injury on or about July 25, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges the defendant with assault with intent to commit any felony on or about July 25, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count V of the Indictment charges the defendant with carrying or using a firearm and in relation to a crime of violence and discharging the firearm on or about July 25, 2019. The maximum possible penalty if convicted is 10 years-Life imprisonment consecutive, a $250,000 fine, a 5-year term of supervised release, and a $100 special assessment. Count VI of the Indictment charges the defendant with carrying or using a firearm and in relation to a crime of violence and discharging the firearm on or about July 25, 2019. The maximum possible penalty if convicted is 7 years-Life imprisonment consecutive, a $250,000 fine, a 5-year term of supervised release, and a $100 special assessment. Count VII of the Indictment charges the defendant with felon in possession of ammunition on or about July 25, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Morgan L. Perkhiser, age 35, of Eugene, Oregon, is charged in a five-count Indictment. The Indictment charges the defendant with wire fraud on or about May 25, 2016 and continuing through October 5, 2018. The maximum possible penalty if convicted is 20 years’ imprisonment on each count, a $250,000 fine on each count, a 5-year term of supervised release on each count, and a $100 special assessment on each count.
* Manuel Portillo Choto, age 35, is charged in a two- count Indictment. Count I charges the defendant with illegal reentry after deportation following a felony conviction on or about July 29, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with assaulting, resisting, or impeding certain officers or employees on or about July 29, 2019. The maximum possible penalty if convicted is 1 year imprisonment, a $100,000 fine, a 1-year term of supervised release, and a $25 special assessment.
* Elio Danubio Ramirez Lemus, age 39, of Grand Island, Nebraska, is charged in a three-count Indictment. Count I charges the defendant with false statement on a passport application beginning on or about December 29, 2017. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraudulent use of a social security account number beginning on or about February 5, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment. Count III charges the defendant with false claims of U.S. Citizenship on or about February 5, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Terrence Sayers, is charged in an eight-count Indictment. Count I of the Indictment charges the defendant with receipt of visual depictions of minors engaging in sexually explicit conduct on or about May 20, 2014. The penalty if convicted is a minimum of 5 years’ to 20 years’ imprisonment, a $250,000 fine, a 5-years to Life term of supervised release, $100 special assessment, and a $5,000 additional special assessment. Count II of the Indictment charges the defendant with receipt of visual depictions of minors engaging in sexually explicit conduct on or about December 24, 2014 and continuing to on or about January 13, 2015. The penalty if convicted is a minimum of 5 years’ to 20 years’ imprisonment, a $250,000 fine, a 5-years to Life term of supervised release, $100 special assessment, and a $5,000 additional special assessment. Count III of the Indictment charges the defendant with receipt of visual depictions of minors engaging in sexually explicit conduct on or about April 19, 2015 and continuing to on or about April 27. 2015. The penalty if convicted is a minimum of 5 years’ to 20 years’ imprisonment, a $250,000 fine, a 5-years to Life term of supervised release, $100 special assessment, and a $5,000 additional special assessment. Count IV of the Indictment charges the defendant with receipt of visual depictions of minors engaging in sexually explicit conduct on or about May 9, 2015 continuing to on or about May 18, 2015. The penalty if convicted is a minimum of 5 years’ to 20 years’ imprisonment, a $250,000 fine, a 5-years to Life term of supervised release, $100 special assessment, and a $5,000 additional special assessment. Count V of the Indictment charges the defendant with receipt of visual depictions of minors engaging in sexually explicit conduct on or about September 28, 2016. The penalty if convicted is a minimum of 5 years’ to 20 years’ imprisonment, a $250,000 fine, a 5-years to Life term of supervised release, $100 special assessment, and a $5,000 additional special assessment. Count VI of the Indictment charges the defendant with distribution of visual depictions of minors engaging in sexually explicit conduct on or about April 13, 2014. The penalty if convicted is a minimum of 5 years’ to 20 years’ imprisonment, a $250,000 fine, a 5-years to Life term of supervised release, $100 special assessment, and a $5,000 additional special assessment. Count VII of the Indictment charges the defendant with distribution of visual depictions of minors engaging in sexually explicit conduct on or about March 24, 2015. The penalty if convicted is a minimum of 5 years’ to 20 years’ imprisonment, a $250,000 fine, a 5-years to Life term of supervised release, $100 special assessment, and a $5,000 additional special assessment. Count VIII of the Indictment charges the defendant with possession of visual depictions of minors engaging in sexually explicit conduct on or about October 24, 2017. The penalty if convicted is a minimum of 10 years’ to 20 years’ imprisonment, a $250,000 fine, a 5-years to Life term of supervised release, $100 special assessment, and a $5,000 additional special assessment.
* Billy Francisco Silvestre Aguilar, age 31, is charged with illegal reentry after deportation on or about August 5, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Ignacio Tapia-Lopez, age 38, of Hastings, Nebraska, is charged with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about July 30, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
* Pedro Valdovinos, age 26, and Leagsaidh Hargreaves, age 24, are charged in a three-count Indictment. Count I charges the defendants with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, (actual) beginning on or about June 1, 2017 and continuing to on or about August 5, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine, (mixture) beginning on or about August 5, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count III charges the defendant with use/possess firearm with drug trafficking beginning on or about August 5, 2019. The maximum possible penalty if convicted is Life imprisonment, $250,000 fine, 5-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about August 5, 2019.
* Seth B. Vander Vorst, age 28, is charged with drug user in possession of firearm on or about July 28, 2019 and on or about July 31, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
Alleged Kidnapper Pleads Guilty to Making False Statements to Hide Identity, Receive Federal BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALLAN MANN, JR., also known as “Hailee Randolph DeSouza” and Hailey R. DeSouza,” 66, pleaded guilty today in New Haven federal court to a false statement offense related to his living in the U.S. under an assumed name for approximately 30 years.
As alleged in court documents, Allan Mann abducted his 21-month-old son, Jermaine Allan Mann, on June 24, 1987, during a court-ordered visit in Toronto, Canada. Allan Mann, who is a Canadian citizen, and his son subsequently entered the U.S. Allan Mann changed his name to Hailee Randolph DeSouza, changed the name of his son, and acquired counterfeit birth certificates for him and his son. Allan Mann has never applied for nor received citizenship status in the U.S.
In June 1990, Mann, using the name Hailee Randolph DeSouza, applied for and received a Social Security Number. In support of this application, Mann presented his counterfeit birth certificate. In May 2018, Mann, using his alias, applied for a replacement Social Security card.
Mann has participated in the U.S. Department of Housing and Urban Development (“HUD”) Section 8 subsidized housing program at various times since 2004. Mann most recently resided in Section 8 subsidized housing in Vernon, Connecticut. Mann has made multiple false statements on HUD forms he signed in connection with his participation in the Section 8 program, and HUD has paid approximately $126,744 in housing assistance payments on Mann’s behalf.
Mann also made multiple false statements on applications to participate in the State of Connecticut’s Medicaid program. Since January 2014, Medicaid has paid $52,970.19 in claims on behalf of Mann, and approximately $2,876.37 on behalf of his son.
Mann pleaded guilty to one count of making a false statement, an offense that carries a maximum term of imprisonment of five years. As part of his plea agreement, Mann has agreed to make restitution of $18,512.05 the Medicaid program, and $34,744 to HUD. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 14, 2019.
Mann has been detained since October 26, 2018, when he was arrested on a criminal complaint.
An immigration detainer has been issued, and Mann faces removal proceedings at the conclusion of his sentence. Canadian authorities have advised the U.S. government that Canada will seek to extradite Mann based on an outstanding warrant for abduction.
This matter is being investigated by the U.S. Marshals Service, U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Department of Health and Human Services –Office of the Inspector General, U.S. Department of State – Bureau of Diplomatic Security, Social Security Administration – Office of Inspector General, Toronto Police Service, Royal Canadian Mounted Police and the Vernon Police Department. The Missing Children Society of Canada and the National Center for Missing and Exploited Children have provided critical assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Hal Chen.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced RAYMOND LEE NORCUTT, Jr., 35, with no fixed residence, on August 19, 2019 for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Norcutt was arrested in Hot Springs County, Wyoming. He received a total of one hundred-twenty months of imprisonment, to be followed by sixty months of supervised release. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced AUSTIN STORM DREW GRAUBERGER, 26, of Cheyenne, Wyoming on August 20, 2019 for being a felon in possession of a firearm. Grauberger was arrested in Cheyenne, Wyoming. He received time served, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced MATTHEW HUNTER HEUER, 42, of Mills, Wyoming on August 21, 2019 for being a felon in possession of a firearm. Heuer was arrested in Cheyenne, Wyoming. He received forty-six months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced THOMAS QUINN SURRELL, 27, of Riverton, Wyoming on August 20, 2019 for assault resulting in serious bodily injury. Surrell was arrested in Lander, Wyoming. He received forty-six months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $24,154.29. The Bureau of Indian Affairs investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced STERLING CHARLES BLINDMAN , 26, of Fort Washakie, Wyoming on August 19, 2019 for assault resulting in serious bodily injury. Blindman was arrested in Fort Washakie, Wyoming. He received fifty-one months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $250.00 fine, a $100.00 special assessment with restitution to be determined at a later date,. The FBI investigated this case.
21 August 2019
Youngstown man indicted for using firearm to rob a bank last monthRead the Press Release
A Youngstown man was indicted for using a firearm to rob a bank last month.
Dabraylin Hawkins, 23, was indicted in one count of armed bank robbery and one count of using a firearm during a crime of violence.
Hawkins used a Hi Point 9 mm pistol on July 25, 2019, to rob Home Savings Bank, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Yasmine Makridis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown man indicted for cyberstalkingRead the Press Release
A Youngstown man was indicted in federal court on a charge of cyberstalking.
Didier Saint Julien, 45, is accused of stalking, harassing and intimidating someone beginning in April 2018.
Saint Julien made numerous comments on the victim’s Facebook and Instagram page beginning last year. He attempted to make physical contact with the victim numerous times and took picture’s of the victim’s car, according to court documents.
Saint Julien also attempted to contact the victim’s relatives numerous times. The victim successfully sought a civil stalking protection order, commanding Saint Julien not to initiate or have any contact with the victim or the victim’s relatives. The next day, Saint Julien texted the victim, according to court documents.
Saint Julien began creating social media accounts under a false name in May 2019 and attempted to contact the victim, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Waterloo Marijuana User Sentenced to a Year in Federal Prison for Unlawfully Possessing a Loaded HandgunRead the Press Release
An unlawful user of controlled substances who possessed a loaded handgun was sentenced today a year in federal prison.
Rodonus Echols, age 19, from Waterloo, Iowa, received the prison term after a March 27, 2019 guilty plea to one count of being a drug user in possession of a firearm.
Information at sentencing showed that Echols was in a car in Waterloo in the early morning hours of October 21, 2018. The Waterloo Police stopped the car for speeding. During the traffic stop, Echols initially refused to get out of the car when officers asked him to do so. After Echols got out, officers found a loaded revolver in the waistband of his pants. At the time Echols possessed the gun, he was an unlawful user of marijuana.
Echols was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Echols was sentenced to 12 months and one day in prison. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Echols is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2008.
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Ville Platte business owner sentenced for filing false tax returns and failing to pay taxesRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Myra Griffin Fontenot, 43, of Ville Platte, Louisiana, was sentenced Tuesday to 14 months in prison and one year of supervised release by U.S. District Judge Dee D. Drell for filing a false tax returning and failing to pay more than $200,000 in taxes. Fontenot was also ordered to pay $213,958.96 restitution in addition to $28,624.36 in interest. She previously pleaded guilty on May 14, 2019.
Fontenot was the owner of the Nukura’s Step-by-Step Learning Center (NLC), which is a daycare center, and X-press Tax Service LLC. Fontenot failed to file unemployment tax returns at NLC, failed to report the majority of her income, and claimed a great amount of expenses on personal tax returns for tax years 2012 to 2014. In sum, she failed to pay $213,958.96 during the course of the scheme.
“The defendant in this case cheated on her taxes and, in doing so, failed to meet her obligations as an American,” Joseph stated. “She is now facing the consequences.”
“Fontenot’s attempt to evade her taxes by hiding income, concealing assets, and filing false returns was a theft from all American taxpayers,” said Thomas J. Holloman III, IRS Criminal Investigation Special Agent in Charge, Atlanta Field Office. “It is a felony offense that carries severe consequences. The overarching principle of IRS’ enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays the correct amount of tax.”
The IRS-Criminal Investigation Division conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
University of Kansas Researcher Indicted for Fraud for Failing to Disclose Conflict of Interest with Chinese UniversityRead the Press Release
WASHINGTON – A researcher at the University of Kansas (KU) was indicted today on federal charges of hiding the fact he was working full time for a Chinese university while doing research at KU funded by the U.S. government.
Feng “Franklin” Tao, 47, Lawrence, Kansas, an associate professor at KU’s Center for Environmentally Beneficial Catalysis (CEBC), is charged with one count of wire fraud and three counts of program fraud. He was employed since August 2014 by the CEBC, whose mission is to conduct research on sustainable technology to conserve natural resources and energy.
“Tao is alleged to have defrauded the US government by unlawfully receiving federal grant money at the same time that he was employed and paid by a Chinese research university—a fact that he hid from his university and federal agencies,” said Assistant Attorney General Demers for National Security. “Any potential conflicts of commitment by a researcher must be disclosed as required by law and university policies. The Department will continue to pursue any unlawful failure to do so.”
The indictment alleges that in May 2018 Tao signed a five-year contract with Fuzhou University in China that designated him as a Changjiang Scholar Distinguished Professor. The contract required him to be a full time employee of the Chinese university. While Tao was under contract with Fuzhou University, he was conducting research at KU that was funded through two U.S. Department of Energy contracts and four National Science Foundation contracts.
Kansas Board of Regents’ policy requires staff to file an annual conflict of interest report. In Tao’s reports to KU, he falsely claimed to have no conflicts of interest. The indictment alleges that he fraudulently received more than $37,000 in salary paid for by the Department of Energy and the National Science Foundation.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the wire fraud count, and up to 10 years and a fine up to $250,000 on each of the program fraud counts.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the assigned judge.
The University of Kansas cooperated and assisted in the FBI’s investigation. Assistant U.S. Attorney Tony Mattivi is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
University of Kansas Researcher Indicted for Fraud for Failing to Disclose Conflict of Interest with Chinese UniversityRead the Press Release
A researcher at the University of Kansas (KU) was indicted today on federal charges of hiding the fact he was working full time for a Chinese university while doing research at KU funded by the U.S. government.
Feng “Franklin” Tao, 47, of Lawrence, Kansas, an associate professor at KU’s Center for Environmentally Beneficial Catalysis (CEBC), is charged with one count of wire fraud and three counts of program fraud. He was employed since August 2014 by the CEBC, whose mission is to conduct research on sustainable technology to conserve natural resources and energy.
“Tao is alleged to have defrauded the U.S. government by unlawfully receiving federal grant money at the same time that he was employed and paid by a Chinese research university — a fact that he hid from his university and federal agencies,” said Assistant Attorney General Demers for National Security. “Any potential conflicts of commitment by a researcher must be disclosed as required by law and university policies. The Department will continue to pursue any unlawful failure to do so.”
The indictment alleges that in May 2018 Tao signed a five-year contract with Fuzhou University in China that designated him as a Changjiang Scholar Distinguished Professor. The contract required him to be a full time employee of the Chinese university. While Tao was under contract with Fuzhou University, he was conducting research at KU that was funded through two U.S. Department of Energy contracts and four National Science Foundation contracts.
Kansas Board of Regents’ policy requires staff to file an annual conflict of interest report. In Tao’s reports to KU, he falsely claimed to have no conflicts of interest. The indictment alleges that he fraudulently received more than $37,000 in salary paid for by the Department of Energy and the National Science Foundation.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the wire fraud count, and up to 10 years and a fine up to $250,000 on each of the program fraud counts.
The defendant will make his initial appearance Friday, August 23, 2019, in federal court in Kansas City, Kansas.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the assigned judge.
The University of Kansas cooperated and assisted in the FBI’s investigation. Assistant U.S. Attorney Tony Mattivi is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Two Los Angeles Pharmacy Owners Found Guilty in Multimillion-Dollar Health Care Fraud and Money Laundering SchemeRead the Press Release
A federal jury found two Los Angeles pharmacy owners guilty yesterday for their participation in a $35 million health care fraud and money laundering scheme to bill Medicare for medications that were never provided and to launder the proceeds of the fraud.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office, Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office, Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office, and Special Agent in Charge Kurt Mueller of the California Department of Justice made the announcement.
After an 11-day trial, Aleksandr Suris, 51, and Maxim Sverdlov, 44, both of Sherman Oaks, California, were found guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. Suris was also found guilty of one additional count of conspiracy to commit health care fraud and six additional counts of health care fraud. Both defendants were found not guilty of three counts of healthcare fraud. Sentencing has been scheduled for Nov. 18, 2019, before U.S. District Court Judge S. James Otero of the Central District of California, who presided over the trial.
According to the evidence presented at trial, from 2012 to 2015, Suris and Sverdlov fraudulently billed Medicare and CIGNA for prescription medications that were not actually dispensed to beneficiaries by the pharmacy they owned, Royal Care Pharmacy (Royal Care). In order to hide the fraud, Suris and Sverdlov obtained fake invoices from a co-conspirator to make it appear as if Royal Care had purchased the medicines it had billed Medicare for when it had not. The evidence further established that Suris and Sverdlov also used these fake invoices to launder the proceeds of the fraud through the co-conspirator.
This case was investigated by the HHS-OIG, FBI, IRS-CI, and the California Department of Justice, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. Assistant Chief Daniel J. Griffin and Trial Attorney Robyn N. Pullio of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two Cleveland men with a history of using firearms to commit crimes indicted for conspiracy to traffic fentanyl, heroin, cocaine and other drugs, as well as additional firearms crimesRead the Press Release
Two Cleveland men with a history of using firearms to commit crimes were indicted in federal court for their roles in a conspiracy to traffic fentanyl, heroin, cocaine and other drugs, as well as additional firearms crimes.
Clayton Hall, 39, and Gregory D. Franklin, II, 42, were each indicted on one count of conspiracy to possess with intent to distribute controlled substances, and additional drug charges. Franklin is additionally charges with possession of a firearm in furtherance of drug trafficking and being a felon in possession of a firearm and ammunition.
According to the 11-count superseding indictment filed in U.S. District Court:
Hall and Franklin conspired together between February 2019 and April 30, 2019 to distribute 100 grams or more of a mixture of heroin and fentanyl analogues, as well as 500 grams or more of cocaine.
Hall possessed with intent to distribute fentanyl, heroin, cocaine and crack cocaine at various times in 2018 and 2019.
Franklin possessed with intent to distribute fentanyl analogues and cocaine on April 30, 2019. He also possessed a Taurus 9 mm semi-automatic pistol and 21 rounds of 9 mm that he used as part of his drug trafficking and despite a previous conviction for drug trafficking with a firearms specification, according to the indictment.
Hall was previously convicted of kidnapping with a firearm and aggravated burglary with a firearm, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case was investigated by the Cleveland Division of Police and Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Federal Inmates Charged in Murder of Fellow InmateRead the Press Release
Three inmates at the Milan Correctional Facility in Milan, Michigan, were charged in an indictment unsealed today with first degree premediated murder in the death of a fellow inmate, conspiracy to commit first degree premeditated murder and assault with intent to commit murder, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by FBI Acting Special Agent in Charge Rainer S. Drolshagen and Jason Terris, Warden, Milan Correction Facility.
Charged were:
Alex Albert Castro, 39;
Jason Dale Kechego, 38; and
Adam Taylor Wright, 39. Wright was also charged with assaulting and resisting a law enforcement officer engaged in the performance of his duties.
According to the indictment, beginning in December, 2018, Castro, Kechego and Wright, while incarcerated at the federal detention center in Milan, Michigan, conspired to assault and murder fellow inmates who were thought to be smaller and weaker therefore more vulnerable. It was on January 2, 2019, that the three defendants are alleged to have killed fellow inmate Christian Maire, using a homemade knife commonly referred to as a “shank”. Allegedly, after stabbing Maire several times, the defendants then picked up Maire off the floor and threw his body down a flight of stairs. The defendants are also alleged to have assaulted three other inmates by punching, beating, kicking and stabbing them. Defendant Wright faces additional charges of assaulting a corrections officer and impeding a corrections officer during the assaults on the inmates in order to prevent them from stopping the attacks.
If convicted of the charges, each defendant faces a maximum penalty of life in prison.
An indictment is only a charge and is not evidence of guilt. It will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney J. Michael Buckley and Andrew R. Picek.
Tennessee Man Arrested for Making Threats to D.C. Planned Parenthood FacilityRead the Press Release
WASHINGTON – A Tennessee man was arrested today for allegedly posting threats online to “shoot up” a Planned Parenthood facility in Washington D.C. The announcement was made by U.S. Attorney Jessie K. Liu, U.S. Attorney Don Cochran for the Middle District of Tennessee, and Timothy Slater, Assistant Director in Charge of the FBI’s Washington Field Office.
Jacob Cooper, 20, of Clarksville, Tennessee, was charged with unlawfully, knowingly, and intentionally transmitted in interstate or foreign commerce a communication containing a threat to injure another located in D.C. and elsewhere. Cooper made his initial appearance today before U.S. Magistrate Judge Alistair E. Newbern in the United States District Court, Middle District of Tennessee. A preliminary and detention hearing is set for August 26, 2019.
According to the criminal complaint, Cooper went by the username “Jacco” on iFunny, a website where people can share photos, videos, and discussion topics. On August 13, 2019, in response to a post made by another user, Cooper allegedly left a comment stating, “Make sure you tell them about how I plan to shoot up a planned parenthood facility in Washington D.C., on August 19th at 3pm.” Cooper allegedly left a separate post on August 13, 2019 stating, “If you are a member of the FBI, CIA, whatever, and are on my profile I will trace your IP address and kill you if the opportunity arises. And I am dead serious about this. I’ll do it with ricin, a bomb, or .308. Whatever it takes, then end result will be the same. I am serious about this. If I am personally contacted by any federal agents, I will do this. I will kill you. Again, I am serious. Sic semper tyrannis.”
Cooper faces a maximum penalty of five years in prison if convicted.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Kevin Rosenberg is prosecuting the case with assistance from Assistant U.S. Attorney Byron Jones from the Middle District of Tennessee.
Tax Protestor Sentenced to Five Years in Prison for Tax EvasionRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announces that, on August 20, 2019, an Asheville orthodontist and tax protestor, James E. MacAlpine, 72, was sentenced to prison for tax evasion. U.S. District Judge Martin Reidinger ordered MacAlpine to serve a statutory maximum term of 60 months in prison, followed by 3 years of supervised release, and to pay $2,194,849.03 in restitution to the IRS.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), joins U.S. Attorney Murray in making today’s announcement.
According to documents filed with the court, MacAlpine was the owner/operator of “James E. MacAlpine, DDS,” an orthodontic practice located in Buncombe County, which MacAlpine has operated since at least as early as 1992. At all relevant times, MacAlpine’s orthodontic practice generated taxable income. However, in 1996, MacAlpine stopped filing and paying his federal taxes. With the exception of a period of partial compliance following a state-court conviction in late 2001, MacAlpine has been out of compliance with the federal tax laws ever since.
By 2014, MacAlpine’s tax debt to the federal government had grown to approximately $1,962,354.11, comprising amounts still due and owing for tax years 1999, 2000, 2002, 2003, 2004, 2005, and 2006, plus penalties and interest. That year, the United States District Court entered an order finding MacAlpine indebted to the IRS in the same amount. By the time of his sentencing in this criminal case, MacAlpine’s total tax debt for those years had grown to approximately $2,194,849.03, which is the amount reflected by the Court’s restitution order.
Throughout MacAlpine’s long period of non-compliance with the federal tax laws, the IRS diligently attempted to assess and collect taxes from him. For example, in 2000, the IRS performed an examination using the available documents for tax years 1996 and 1997, and assessed taxes against MacAlpine for those years. In 2005, the IRS initiated an examination of MacAlpine’s tax liability for tax year 2002, and, soon thereafter, the IRS initiated examinations of MacAlpine’s tax liability for tax years 2003 and 2004. However, MacAlpine routinely obstructed these IRS attempts to determine his actual tax liability. For example, when the Revenue Agent (RA) assigned to conduct the examination of MacAlpine’s tax liability for 2002 attempted to make contact with MacAlpine and to request books and records necessary to make an accurate assessment, MacAlpine failed to meet with the RA or to produce any documentation. When the RA attempted to get the same information from a different source by issuing summonses to financial institutions, MacAlpine filed a series of frivolous legal challenges to those summonses. When the United States District Court dismissed those frivolous legal challenges, MacAlpine began to inundate IRS personnel—both the RA working the examination for 2002 and the Revenue Officers working collections for MacAlpine’s existing tax debts—with legally unfounded and factually inaccurate correspondence. For example, in early May of 2006, MacAlpine sent several IRS personnel a “Declaration of Political Intentions” in which he claimed to revoke his own U.S. citizenship, suggesting that it meant he no longer owed any taxes, even for those years with respect to which he had previously admitted that he did owe taxes.
Despite multiple warnings from the IRS that such filings were frivolous and could lead to civil and criminal sanctions, MacAlpine continued in this manner for years.
MacAlpine’s conduct was similarly obstructive with respect to the collections process. For example, between June of 2011 and January 2015, MacAlpine engaged in a game of hide-and-seek with the IRS, moving his money to new, or different, bank accounts every time IRS collections personnel located and garnished the account he had been using for his personal and business affairs. On at least one occasion, he moved money into an account opened in the name of a shell corporation. MacAlpine admits that he undertook these actions for the purpose of evading the collection efforts of the IRS.
On February 4, 2019, MacAlpine pleaded guilty to tax evasion. Following the sentencing hearing on August 20, 2019, MacAlpine was released on bond, and he will be ordered to report to the United States Bureau of Prisons, upon designation of a federal facility, to begin serving his sentence. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the IRS-CI for their outstanding investigative work.
Assistant United States Attorney Daniel Bradley, of the U.S. Attorney’s Office in Asheville, is in charge of the prosecution.
Stoneham Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Stoneham man pleaded guilty today in federal court in Boston to trafficking fentanyl.
Alexis Baez, 52, pleaded guilty to three counts of distribution of, and possession with intent to distribute fentanyl; two counts of distribution of, and possession with intent to distribute, more than 40 grams of fentanyl; and one count of possession with intent to distribute more than 400 grams of fentanyl. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for Nov. 13, 2019. Baez was previously charged by criminal complaint and arrested on April 26, 2019. He has been in custody since his arrest.
Between February and April 2019, Baez engaged in six separate drug sales of fentanyl powder to an undercover law enforcement agent.
The charge of possession with intent to distribute of over 400 grams of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release and a fine of up to $10 million. The charges of possession with intent to distribute over 40 grams of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Woburn, Stoneham, Milton and Boston Police Departments. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
St. Croix Man Pleads Guilty to Carrying a Firearm During a Drug Trafficking OffenseRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Ladislau Concepcion, Jr., 45, of St. Croix, pleaded guilty on August 21, 2019 in federal court to carrying a firearm during a drug trafficking offense.
According to court documents, on March 7, 2017, Defendant was traffic-stopped near the Golden Rock McDonald’s on St. Croix. Concepcion failed to produce a valid driver’s license, insurance, or registration for the vehicle he was operating. Subsequently, a K-9 drug detection dog alerted for the presence of narcotics in the rear of the vehicle and a search of the vehicle resulted in the seizure of 172 grams of marijuana, 11 grams of crack cocaine, 10 grams of cocaine, empty vials, plastic baggies, a digital scale, scissors, and three cellular phones. A loaded Taurus .38 caliber handgun was located in the vehicle’s glove box. Concepcion, a convicted felon, did not have a license to possess the firearm, and was not permitted to possess it according to law.
Concepcion faces a mandatory minimum of five years of incarceration for the offense, a fine of up to $250,000.00, and forfeiture of the firearm and $1046.00 in cash. A sentencing date has been scheduled for December 20, 2019.
The case was investigated by the U.S. Virgin Islands Police Department and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
Sioux City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty August 20, 2019, in federal court in Sioux City.
Billy Soule, 37, from Sioux City, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
At the plea hearing, Soule admitted that from about October 2018 through January 2019 he was involved in a conspiracy that distributed more than 300 grams of pure methamphetamine in the Sioux City, area. In November/December 2018, in four separate transactions, Soule distributed a total of approximately 9 ounces of pure methamphetamine to an individual cooperating with law enforcement in both Nebraska and Iowa. During a traffic stop in January 2019, Soule was found in possession of over more than 4 ounces of pure methamphetamine, which he intended to distribute to other persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Soule remains in custody of the United States Marshal pending sentencing. Soule faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4004. Follow us on Twitter @USAO_NDIA.
Sioux City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty August 19, 2019, in federal court in Sioux City.
Bradley McPeek, Sr., 60, from Sioux City, Iowa, was convicted of conspiring to distribute methamphetamine within a protected location.
At the plea hearing, McPeek admitted that from about July 2017 through December 2018 he participated in the distribution of more than 1.5 kilograms of methamphetamine in Sioux City. McPeek distributed methamphetamine at his residence that was within 1000 feet of Cook Park. McPeek admitted that he and others involved in the conspiracy would regularly travel to Omaha, NE to obtain multiple ounces up to pounds of methamphetamine to bring back to Sioux City to split up and distribute to others.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. McPeek remains in custody of the United States Marshal and will remain in custody pending sentencing. McPeek faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4018. Follow us on Twitter @USAO_NDIA.
Serial Robber Sentenced to 6 YearsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Trevor Christian, 24, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to six years in federal prison, for robbing a Walgreens, two banks, and a credit union, all located in Madison. Christian pleaded guilty to these charges on April 17, 2019. His prison term will be followed by a 3-year period of supervised release.
On November 1, 2018, Christian robbed a Walgreens on East Washington Avenue. On November 5, 2018, he robbed a branch of the Associated Bank on Shopko Drive. On November 7, 2018, Christian robbed another branch of Associated Bank, on Odana Road. Finally, on November 14, 2018, he robbed a branch of the Dane County Credit Union on Struck Street.
In each robbery, Christian passed notes demanding money and threatening violence if the victims did not cooperate. Judge Peterson noted the emotional trauma caused to the victims, said Christian was “out of control,” and sentenced him to six years in prison to protect the public.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Christian were the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Schleswig, IA Man Sentenced to 10 Years for Distributing MethamphetamineRead the Press Release
A man who was a member of a conspiracy to distribute methamphetamine was sentenced Tuesday, August 20, 2019, to more than 10 years in federal prison.
Charles Lee Segebart, age 27, from Schleswig, IA, received the prison term after a February 15, 2019 guilty plea to one count of conspiracy to distribute methamphetamine.
In a plea agreement, Segebart admitted that he voluntarily and intentionally distributed methamphetamine from December of 2016 to July 23, 2018. On July 23, 2018, Segebart was stopped by law enforcement. Law enforcement seized a quarter-pound of methamphetamine in the search of the vehicle. Segebart admitted to law enforcement that he had been receiving an estimated two to three pounds a week of methamphetamine to distribute from another source.
Segebart was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Segebart was sentenced to 124 months’ imprisonment and fined $100. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Carroll County Sheriff’s Office and the Iowa Department of Narcotics enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4074.
Follow us on Twitter @USAO_NDIA.