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15 August 2019
Nashua Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
CONCORD - Donald Johnson, 34, of Nashua, pleaded guilty in federal court to participating in a drug trafficking conspiracy on August 14, 2019, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, Johnson was involved with a drug trafficking organization that distributed crack cocaine and other drugs to various customers in the Nashua, New Hampshire area. Johnson purchased crack cocaine from the organization and re-sold it to his own customers. He also assisted other members of the organization with their distribution activities by, among other things, allowing them to use his residence to meet customers.
Johnson is scheduled to be sentenced on November 19, 2019.
“Drug trafficking is a serious ongoing detriment to public health and safety,” said U.S. Attorney Murray. “Stopping the distribution of crack cocaine and other illegal drugs is a top priority for law enforcement. We will continue to partner with the FBI and other federal, state, and local law enforcement agencies to identify, arrest, and prosecute those who are responsible for distributing drugs in the Granite State.”
“Today’s guilty plea is significant and highlights the FBI’s collaboration with our law enforcement partners in disrupting drug trafficking organizations operating here in the Granite State. Drug traffickers have no place in our community, and we will continue to aggressively investigate criminal organizations like this one that target our neighborhoods with their drug-related violent activity to ensure they are held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Anna Krasinski.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Navajo Man from Coyote Canyon Sentenced to 18 Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Harold Lee Redhouse, Jr., 29, an enrolled member of the Navajo Nation from Coyote Canyon, N.M., was sentenced today in federal court in Albuquerque, N.M., to 18 years of imprisonment for sexually abusing two children under the age of 12 years. Redhouse will be on supervised release for ten years after completing his prison sentence. He also will be required to register as a sex offender.
The FBI arrested Redhouse in Jan. 2018, on a criminal complaint following an investigation that was initiated in summer 2017, based on a referral from the Navajo Nation Division of Social Services, which reported allegations that Redhouse had sexually abused two children under the age of 12 years.
In Feb. 2019, Redhouse pled to a felony information charging him with two counts of abusive sexual contact. In his plea agreement, Redhouse admitted to sexually abusing two minors under the age of 12 years in locations within the Navajo Indian Reservation in McKinley County, N.M. Redhouse admitted to abusing one victim between June 2008 and June 2009, and the second victim in May 2017.
The case was investigated by the Gallup office of the FBI with assistance from the Navajo Nation Division of Social Services. Assistant U.S. Attorney Elisa C. Dimas prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
Middlesex County Man Charged with Securities Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was indicted today by a federal grand jury for running a multi-year investment fraud scheme that caused millions of dollars of losses, Attorney for the United States Rachael A. Honig announced.
Sandy John Masselli, 57, of Old Bridge, New Jersey, is charged in a superseding indictment with one count of bank fraud, two counts of wire fraud, two counts of securities fraud and one count of aggravated identity theft. Masselli was originally indicted on two counts of bank fraud and three counts of wire fraud on September 19, 2018.
According to the documents filed in this case:
From September 2011 through October 2017, Masselli solicited millions of dollars in investments from retail investors by fraudulently touting the prospect of his online gaming company, Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd. (Carlyle), to conduct a lucrative initial public offering (IPO) of its stock on either the NASDAQ or the New York Stock Exchange (NYSE). Masselli induced investors to purchase shares of Carlyle stock by promising them steeply discounted prices in advance of the purported IPO and assuring them that the stock price would increase significantly after the IPO. Masselli further represented that the IPO would occur within weeks of the investors’ stock purchases.
However, as Masselli knew, Carlyle was not prepared to conduct an IPO, given that neither Masselli nor anyone else on behalf of Carlyle ever filed an application with the NASDAQ or the NYSE to list Carlyle stock on either exchange, or filed with the Securities and Exchange Commission (SEC) a registration statement to list Carlyle shares on a national exchange. Masselli further misrepresented to the investors how he would use their investments, for example telling them that he would allocate investment funds toward improving Carlyle’s online platform and paying legal fees in connection with preparing Carlyle for a looming IPO. Contrary to these claims, however, Masselli misappropriated these funds to pay for his and his family’s own personal expenses.
Within days or weeks of receiving investor funds, Masselli deposited the monies into bank accounts he controlled, many of which were opened under names of fictitious corporate entities in an effort to conceal the source of the funds. Masselli typically used the funds to pay for personal expenses, including paying credit card balances and financing or leasing luxury automobiles.
Masselli also opened a credit card account under the assumed identity of another person, without that person’s authorization, made purchases with the account until he had almost reached or exceeded the credit limit, and then purported to send payments from a bank account that he knew did not have sufficient funds to cover the purchases. Before the fraudulent payments were rejected for insufficient funds, the credit card company temporarily credited the fraudulently opened account based on those payments, providing Masselli access to additional credit and allowing him to continue to make purchases. Masselli ultimately failed to pay the balance and the credit card company sustained a loss.
The bank fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a $5 million fine. The aggravated identity theft count carries a mandatory sentence of two years in prison that must run consecutively to the sentence imposed for any other count.
Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Gregory W. Ehrie in Newark, with the investigation leading to today’s superseding indictment.
The government is represented by Assistant U.S. Attorney Eric A. Boden of U.S. Attorney’s Office in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Twice in 2017Read the Press Release
A man who illegally returned to the United States after being deported was sentenced today to 24 months in federal prison.
Sergio Sanchez-Juarez, age 32, a citizen of Mexico illegally present in the United States and residing in Hiawatha, Iowa, received the prison term after a March 19, 2019, guilty plea to one count of illegal reentry into the United States after having been convicted of a felony.
At the guilty plea, Sanchez-Juarez admitted he had previously been deported from the United States in September 2017 and November 2017 and illegally reentered the United States without the permission of the United States government. Sanchez-Juarez has illegally entered the United States at least six times. Sanchez-Juarez was deported after being convicted in September 2017 of Operating While Intoxicated (OWI), third offense, a felony. Sanchez-Juarez also has prior convictions in Linn County, Iowa, in January 2011 and June 2014 for OWI. Sanchez-Juarez was found by immigration agents in November 2018 after he was charged in Linn County, Iowa, with OWI. He was convicted of this fourth OWI offense in February 2019. Sanchez-Juarez was also deported to Mexico in February 2007 and July 2014.
Sanchez-Juarez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sanchez-Juarez was sentenced to 24 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.
Sanchez-Juarez 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 Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-25.
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Maryland Woman Indicted for FraudRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment on August 15, 2019, charging a resident of Port Deposit, Maryland with one count of wire fraud.
According to the indictment, Kimberly Sponaugle, 41, engaged in a scheme to defraud her former employer, a Newark, Delaware business referenced as Company A in the indictment. Sponaugle, who was the business’s office manager from 2005 – 2010 and the business’s director from 2010 through her termination in 2018, used a corporate credit card to make approximately $322,652.00 in unauthorized, personal purchases from January of 2012, through March of 2018. Sponaugle used funds from the business’s bank account to pay corporate credit card bills associated with those personal purchases and hid her fraud by making false entries in the business’s financial accounting system. Through this scheme, Sponaugle used the business’s funds without authorization to purchase, among other items, vacations, jewelry, and limousine services, as well as to make personal charitable contributions using the corporate credit card.
If convicted of wire fraud, Sponaugle faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement and gave the following comment: “The defendant abused her employers’ trust and repeatedly diverted corporate funds for her own personal use through a years-long scheme. My office is committed to investigating and prosecuting fraudulent conduct, like the defendant’s, that hurts Delaware businesses.”
The case was investigated by the FBI Baltimore Division’s Wilmington Office and the Delaware State Police and is being prosecuted by Assistant U.S. Attorney Carly A. Hudson.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Maryland Man Pleads Guilty to Federal Charges Relating to the Armed Robbery of A Delivery ManRead the Press Release
Greenbelt, Maryland – Tataw Ayuk-Arrey Obenson, age 21, of Burtonsville, Maryland, pleaded guilty on August 14, 2019, to interference with interstate commerce by robbery; and brandishing a firearm during and in relation to a crime of violence
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to his plea agreement, on April 22, 2018, Tataw Ayuk-Arrey Obenson committed the armed robbery of a delivery driver with co-conspirator Wakeene William Graham. That evening, while at a residence in Burtonsville, Graham used an application on his cellular phone to place an order for food to be delivered to another residence within walking distance.
Shortly before the food arrived, Obenson and Graham arrived at the residence where the food was to be delivered. Graham hid on the side of a row of townhouses, while Obenson waited at the front of the residence. The driver arrived at 9:45 p.m. and met Obenson in front of the home. Obenson accepted the food from the delivery driver while Graham approached his side and pointed a pistol at him. Obenson and Graham robbed the driver of his telephone and approximately $170, then ran away in different directions, discarding the victim’s telephone in woods nearby.
On May 22, 2018, Obenson was arrested and confessed to committing the armed robbery of the driver. Graham was arrested a few days later. Law enforcement searched Graham and recovered a loaded, semi-automatic pistol concealed in his groin area; a bag of ammunition from Graham's right rear pants pocket; and a cellular telephone. A search warrant was obtained for Graham's phone, which revealed a screen shot from the date of the robbery, featuring the application software and the phone number that was used to place the delivery order that led to the armed robbery, along with multiple photographs of Graham possessing the handgun.
Obenson and the government have agreed that, if the Court accepts the plea agreement, Obenson will be sentenced to seven years and a day in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for November 27, 2019 at 10:00 a.m.
Graham previously pleaded guilty to the same charges and was sentenced to 104 months in federal prison.
United States Attorney Robert K. Hur commended ATF for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Timothy F. Hagan, Jr., who is prosecuting the case.
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Mansfield physician indicted; alleged to have illegally prescribed tens of thousands of doses of painkillers and other drugsRead the Press Release
A Mansfield physician was indicted in federal court for allegedly leading a conspiracy in which he is accused of illegally prescribing tens of thousands of doses of painkillers and other controlled substances, including oxycodone, hydrocodone, methadone and fentanyl, and providing them to another man who sold the drugs.
Gary Frantz, 67, and Christopher Fulk, 42, both of Mansfield, are charged with conspiracy to distribute controlled substances, distribution of controlled substances, distribution of oxycodone and hydrocodone, and other charges.
According to the 242-count indictment filed in U.S. District Court:
Frantz was a physician who illegally distributed tens of thousands of doses of prescription painkillers – primarily oxycodone, hydrocodone, methadone and fentanyl – from his medical offices in Mansfield between 2005 and June 8, 2017, according to the allegations in the indictment.
According to the allegations in the indictment, Frantz prescribed drugs to customers that he described as “patients” outside the usual course of professional practice and not for a legitimate medical purpose. Frantz distributed multiple prescriptions for large quantities of high doses of oxycodone pills, including 80 mg and 30 mg OxyContin pills to “patients” each month, as well as prescriptions for fentanyl, according to the indictment.
Fulk was one of Frantz’s “patients.” Fulk is alleged to have received tens of thousands of oxycodone pills from Frantz. Fulk, between 2008 and 2018, distributed oxycodone pills and fentanyl patches he received from Frantz, according to the allegations in the indictment. Over the course of that time period, the indictment alleges that Fulk was regularly issued prescriptions from Frantz that allowed daily amounts of over sixty 30 mg oxycodone pills, over ten 5 mg methadone pills, and other drugs, including fentanyl patches and 80 mg oxycodone pills.
Fulk then sold thousands of oxycodone pills and hundreds of fentanyl patches he received from Frantz to various customers in the Mansfield area, according to the indictment.
The indictment details how Frantz allegedly distributed fraudulent prescriptions for tens of thousands of 30 mg oxycodone pills, 80 mg oxycodone pills and hundreds of fentanyl patches between 2012 and 2017.
“The healthcare profession is a critical ally in our nation’s fight against the opioid epidemic,” U.S. Attorney Justin Herdman said. “Where we see departures from responsible care that leads to addiction, abuse, and diversion, we will use every enforcement tool available to us, including like in this case, criminal prosecution.”
“Medical professionals, especially doctors, serve a vital function in preventing the illegal diversion of opioid medication,” said Drug Enforcement Administration Acting Special Agent in Charge Keith Martin, Detroit Division. “This indictment, and others like it around the country, demonstrate our commitment to prosecuting licensed professionals who flood communities with addictive legal drugs for their own personal benefit.”
METRICH Director Joseph Petrycki said: “The closure of this lengthy and time-consuming investigation highlights the collaborative efforts between METRICH, the DEA and the United States Attorney’s Office for the Northern District of Ohio. We as a group are committed to holding accountable those individuals who continue to contribute to this epidemic we face in the State of Ohio.”
“These types of investigations are very complex and time consuming for investigators,” said Mansfield Police Chief Keith Porch. “I appreciate their hard work and dedication in halting any offender’s actions of polluting our community with dangerous drugs.”
If convicted, the defendant’s sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ 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.
This case was investigated by the DEA, METRICH Drug Task Force and the Mansfield Police Department. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney and U.S. Attorney Justin Herdman.
A copy of the indictment is available here.
Mandeville Resident and Former Department of Energy Contractor Pleads Guilty to Accessing Government Computer System without Authorization and Recklessly Causing over $23,000 Worth of DamageRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GARY PETER SIMON, JR., age 56, a resident of Mandeville, Louisiana, pleaded guilty on August 13, 2019 before United States District Judge Greg G. Guidry to a one-count bill of information charging him with intentionally accessing a protected computer without authorization and recklessly causing damage resulting in loss of more than $5,000 during one year, in violation of 18 U.S.C. '' 1030(a)(5)(B) and 1030(c)(4)(A).
According to court documents, The Strategic Petroleum Reserve Office (SPRO) was a component of the Department of Energy (DOE) that was responsible for, among other things, overseeing and maintaining the readiness of the United States’ stockpile of emergency crude oil, which was stored along the coastline of the Gulf of Mexico. DOE SPRO operated a restricted cloud-based computer system to handle a variety of functions, including documenting daily activity. SIMON, who was employed as a contractor for DOE SPRO from September 2007 until August 2018, worked in the Emergency Management Directorate and was responsible for, among other things, IT management of SPRO network applications. He was one of two individuals who knew the username and password of the Administrative Account.
After SIMON resigned from his contracting agency in about August 2018, he was no longer authorized to access the DOE SPRO computer systems. Nevertheless, on about October 21, 2018, SIMON intentionally accessed the DOE SPRO cloud-based system remotely without authorization. After SIMON accessed the system, he altered and deleted various files. As a result of the intrusion and subsequent manipulation of protected data, operators were unable to access their log views on the computer system, and they could not annotate work they completed electronically. The computer system remained compromised for approximately 2-3 hours after the discovery of the unauthorized access. Thereafter, SIMON used the account of a current SPRO employee without that employee’s authorization, to make changes to log views and to attempt to delete audit log files. SIMON’S actions resulted in loss to the DOE in the form of costs associated with responding to the offense, conducting a damage assessment, and restoring data, program, system, and information to its pre-offense condition, in the amount of approximately $23,200.
SIMON faces a maximum term of five (5) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Guidry has been scheduled for November 11, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, is in charge of the prosecution.
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Manchester Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD – Enrique Perez, 58, of Manchester, pleaded guilty in federal court to possession of fentanyl with intent to distribute on August 13, 2019, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, on May 21, 2018, an undercover law enforcement officer placed a call to Perez and made arrangements to purchase fentanyl. The undercover officer met Perez in a parking lot on Manchester Street and purchased fentanyl from him.
On February 12, 2019, Perez was arrested after being stopped at a 7-Eleven in Manchester.
Perez is scheduled to be sentenced on November 19, 2019.
“The illegal distribution of fentanyl is a menace to the citizens of New Hampshire,” said U.S. Attorney Murray. “Through Operation S.O.S., the U.S. Attorney’s Office is working closely with our law enforcement partners in Hillsborough County to identify and prosecute those who distribute this deadly drug.”
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
This matter was investigated by the New Hampshire State Police with assistance from the Manchester Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by assistant U.S. Attorney Joachim H. Barth.
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Manchester Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD – Doniel Sackey, 37, of Manchester, pleaded guilty in United States District Court yesterday to possession of fentanyl and crack cocaine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 20, 2018, Manchester Special Investigation Unit, placed a call to Sackey and made arrangements to pick up “1 up and 1 down” (crack and fentanyl/heroin). An undercover officer met Sackey on Granite Street in Manchester and purchased both drugs from the defendant.
Sackey was arrested on January 10, 2019.
Sackey is scheduled to be sentenced on November 21, 2019.
“Through our S.O.S. partnership with the Manchester Police Department, we will continue to bring federal charges against those who are distributing deadly drugs in the Queen City,” said U.S. Attorney Murray. “Those who choose to engage in drug trafficking in Manchester should understand that they will be prosecuted in federal court and will be subject to federal penalties for the sale of illegal drugs.”
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
This matter was investigated by the Manchester Police Department, Special Investigation Unit. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Man Sentenced to Prison for Production of Child PornographyRead the Press Release
RICHMOND, Va. – A New Orleans man was sentenced today to more than 24 years in prison for production of child pornography.
According to court documents, Alexander Witt, 30, sexually abused two minors and produced video and pictures of that abuse. Witt engaged in sexual acts with Minor 1 when Minor 1 was approximately 11 or 12 years old. This abuse involved taking nude pictures of Minor 1 and filming himself engaging in sexual acts with Minor 1. Additionally, Witt sexually abused a second minor by engaging in sexual acts and produced images and video of that abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Heather M. Mansfield and Special Assistant U.S. Attorney Samuel Eugene Fishel 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-05.
Man Sentenced to 382 Months in Prison for Firing on Federal AgentsRead the Press Release
A man who fired shots at FBI agents attempting to arrest him in Delaware County on Oct. 1, 2018, was sentenced today in U.S. District Court, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Brian Kirk Marshall, 50, of Pattonsburg, Missouri, to 382 months in federal prison to be followed by five years of supervised release. Marshall pleaded guilty on June 5, 2019, to assaulting federal officers, obstruction of justice by attempting to kill witnesses, and carrying, using and discharging a firearm during and in relation to a crime of violence.
“As is evident from the headlines of the last few days, the men and women of law enforcement face life and death situations every day. There are ever-present threats to their safety and security. Defendant Brian Marshall was one of those threats. Not only did he have a history of threatening law enforcement via the internet, but Marshall picked up a gun and fired at FBI special agents attempting to arrest him in northeastern Oklahoma," said U.S. Attorney Shores. "You don’t do that in this district nor anywhere else without serious consequences. I am pleased with the substantial and lengthy prison sentence handed down today by United States District Court Judge Eagan. To the men and women of law enforcement who keep crime at bay in northeastern Oklahoma, thank you for all that you do to serve and protect our community. The United States Attorney’s Office has zero tolerance for threats and violent acts against law enforcement.”
During his plea hearing, Marshall admitted to firing shots at FBI agents after the FBI SWAT Team had appropriately identified themselves and attempted to call all occupants safely out of the residence. The FBI returned fire in accordance with protocol, resulting in Marshall surrendering to authorities. In total, Marshall admitted to firing eight rounds at FBI agents. At the time of the incident, the FBI was attempting to execute a federal search warrant for Marshall’s Delaware County residence; as well as an arrest warrant for interstate communication of threats Marshall allegedly made, in which he threatened to kill police officers.
Marshall remains in custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The FBI is the investigative agency. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma
MEDIA ADVISORY: United States Attorney Mike Stuart to Hold Press Conference Today in Huntington Regarding IndictmentRead the Press Release
CHARLESTON, W.Va. –Mike Stuart, United States Attorney for the Southern District of West Virginia, joined by federal, state and local law enforcement officials, will hold a press conference in Huntington today -- Thursday, August 15, 2019 at 4:00 p.m. -- regarding an indictment.
Where: Sidney L. Christie Federal Building
845 Fifth Avenue
Huntington, WV
When: Thursday, August 15, 2019 @ 4:00 p.m.
Follow us on Twitter: SDWVNews
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Long Island Man Convicted of Trafficking Narcotics in South BrooklynRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn returned a guilty verdict against Rafael Antonio Fabian for conspiring to distribute and possess with intent to distribute narcotics, specifically crack cocaine. When sentenced by United States Chief District Court Judge Dora L. Irizarry, the defendant faces a mandatory minimum sentence of 10 years in prison and a maximum of life imprisonment. Chief Judge Irizarry ordered the defendant remanded.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, announced the verdict.
“With today’s verdict and the previous guilty pleas of his co-conspirators, Fabian’s poison-pushing drug trafficking operation has been dismantled,” stated United States Attorney Donoghue. “Together with our law enforcement partners, this Office will be unrelenting in pursuing networks like Fabian’s that imperil our communities.” Mr. Donoghue expressed his grateful appreciation to the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department for their assistance during the investigation.
“This conviction sends a message that law enforcement is committed to putting traffickers in jail and taking drugs off the streets,” stated DEA Special Agent-in-Charge Donovan. "I commend the New York Drug Enforcement Task Force and the Eastern District of New York on their diligent work."
As proven at trial, between January 2014 and March 2016, Fabian conspired with others to supply drug dealers in the Sunset Park and Bay Ridge neighborhoods of Brooklyn, and elsewhere. Fabian, who referred to himself using the aliases “Calvo,” “Rafaelito” and “Alofoke Music,” supplied co-conspirators with Blackberry phones that he believed to be secure because the messages were encrypted. The evidence at trial included testimony from co-conspirators, narcotics seizures, ledgers containing the names of drug customers and transactions, and more than 50 pages of messages from Blackberry phones seized from co-conspirators detailing their drug trafficking activity.
Fabian and his co-conspirators maintained a stash apartment in Sunset Park and employed a crew of runners to deliver the narcotics. When making deliveries himself, Fabian drove several vehicles including an Audi sedan equipped with a secret trap compartment in the glove box to hide the drugs inside.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Drew G. Rolle and James P. McDonald are in charge of the prosecution.
The Defendant:
RAFAEL ANTONIO FABIAN (also known as “Rafaelito” and “Calvo”)
Age: 43
Baldwin, New YorkE.D.N.Y. Docket No. 16-CR-131 (S-1) (DLI)
Lawrence Resident Charged with Sexually Exploiting ChildrenRead the Press Release
BOSTON - A Lawrence resident was arrested last night and charged today in federal court in Boston with sexually exploiting a 4-year-old.
Jakob Nieves, who also goes by Dakota, 19, was charged with one count of sexual exploitation of children and one count of distribution of child pornography. Nieves appeared in federal court in Boston today and was ordered detained pending a detention hearing scheduled for Tuesday, Aug. 20, 2019.
According to the charging document, as part of an investigation into the use of Kik messenger for the trade of child pornography, a federal agent, acting in an undercover capacity, allegedly communicated with Nieves via Kik. In the course of those communications, Nieves sent the undercover agent images and videos that she produced that depict her sexually abusing a child.
It is alleged that when law enforcement executed a search warrant at Nieves’ home on Aug. 14, 2019, she admitted to distributing images and videos of child pornography to a user she “met” in a Kik group geared toward individuals interested in pedophilia.
The charge of sexual exploitation of children provides for a minimum mandatory sentence of 15 years and no greater than 30 years in prison. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. Each charge provides for a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Coordinator and member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lake Charles man pleads guilty for possessing a stolen firearm at a casinoRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced today that Jeremy Rankins, 28, of Lake Charles, pleaded guilty before U.S. District Judge James D. Cain Jr. for possessing a stolen firearm at a casino.
According to the guilty plea, the Calcasieu Parish Sheriff’s Office responded to a complaint on May 19, 2018, of an attempted armed robbery with a firearm and an attempted carjacking at a Lake Charles casino. Upon arrival, officers came in contact with Rankins, who had already been detained by the casino’s security officers. Deputies also spoke with the 61-year-old victim, who stated that she was in her car at around 4 a.m. when Rankins sat in the passenger seat brandishing a firearm and demanding money. She denied having any money, at which point he demanded the keys to her car. The hotel security later detained Rankins, and while he was being questioned, a witness discovered the loaded 9 mm Ruger handgun he used on the ground under a truck tire. The investigation revealed that the handgun was stolen on May 17, 2018, from a vehicle parked in the casino’s parking garage.
Rankins faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for November 14, 2019.
The ATF and Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Daniel J. Vermaelen is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Lake Charles man pleads guilty for lying on paperwork to buy a firearm at a pawn shopRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced today that Darrien Lamont Rogers, 23, of Lake Charles, pleaded guilty before U.S. District Judge James D. Cain Jr. for hiding his criminal background on gun purchase paperwork.
According to the guilty plea, Rogers attempted to purchase a Taurus, Model PT 111, 9 mm semi-automatic pistol on March 4, 2019, at a pawn shop in Lake Charles. He lied on an ATF Form 4473 by indicating that he had no felony convictions. Rogers pleaded guilty to one count of simple burglary on September 27, 2018, in the 14th Judicial District Court. Because of the conviction, Rogers is prohibited from purchasing or possessing a firearm.
Rogers faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for November 14 2019.
The ATF conducted the investigation. Assistant U.S. Attorney Daniel J. Vermaelen is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Jamestown Man Pleads Guilty to Gun Conspiracy Charge and Possession of CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tyler Craig Anderson, 29, of Jamestown, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to transfer firearms purchased outside of state of residency, and possession with intent to distribute cocaine. The charges carry a maximum penalty of 20 years, and a $1,000,000 fine.
Assistant U.S. Attorneys Timothy C. Lynch and Emmanuel O. Ulubiyo, who are handling the case, stated that between December 2017 and March 23, 2018, the defendant, who was engaged in narcotics trafficking, conspired with Robert Lincoln to transport firearms from Pennsylvania to New York. At the direction of Anderson, Lincoln made straw purchases of firearms in Pennsylvania in his own name. The firearms were then transported to New York. Lincoln purchased three rifles and a shotgun for Anderson.
On March 9, 2018, during the execution of a state search warrant at the defendant’s residence on Willard Street Extension in Ellicott, law enforcement officers recovered approximately 62 grams of cocaine, a digital scale, and small baggies. Officers also seized the four firearms purchased by Robert Lincoln, as well as 11 other firearms. Anderson admitted the firearms were used in connection with his drug trafficking activities.
Robert Lincoln was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert, the Jamestown Police Department, under the direction of Chief Harry Snellings, and the Ellicott Police Department, under the direction of Chief William L. Ohnmeiss, Jr.
Sentencing is scheduled for November 21, 2019, at 11:00 a.m. before Judge Geraci.
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Jamaican lottery scammer receives 34 months for defrauding elderly victims and making death threatsRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction and sentencing of Oraine Gray a/k/a “James Cooper”, a 23-year-old resident of Jamaica, to 34 months in federal prison after his admission of guilt to devising a lottery scam that swindled elderly and vulnerable victims throughout the United States of their retirement accounts and savings, and to making death threats in furtherance of the scam. The defendant was arrested in Jamaica on September 20, 2018 and waived extradition to the United States.
“This defendant preyed on these elderly victims in the most despicable way – by taking from them through lies and deceit over a significant time period,” said Minkler. “Protecting the most vulnerable members of society from these scammers, no matter where they reside, is a top priority of this office. This sentence sends a message that the Southern District of Indiana will go after international scammers, extradite, and prosecute them to the fullest extent of the law.”
From in or about April 2014 and continuing until on or about September 5, 2018, the defendant, and other unknown individuals residing in Jamaica, defrauded and attempted to defraud elderly victims located throughout the United States in a complex lottery scam. The defendant and others represented to the victims that they were lottery/contest winners who needed to pay certain taxes and fees to collect millions of dollars of their lottery winnings and/or prizes. In reality, the victims were not actual lottery or contest winners. None of the victims received the money promised to them during the course of the scam.
The defendant and others masked their identities through the use of various telephone applications and other technologies. Through these applications, they directed the victims to send money to the defendant and others in Jamaica to obtain their purported lottery or contest winnings. The defendant and others also directed the victims to send such money to other victims and individuals throughout the United States in an attempt to conceal tracing of the proceeds of the scam. The victims sent this money by mail and wire transfers, such as Western Union, MoneyGram, U.S. Mail, and other means, most of which ended up in Jamaica. When victims attempted to stop contact with the defendant by changing telephone numbers, he searched for and used local businesses, such as pizza delivery and taxi services, to attempt to find out the new telephone numbers so that he could continue such contact. On one occasion, when a victim located in the Southern District of Indiana did not send the money as requested, the defendant threatened to kill the victim and her family, and sent individuals to her residence to try and collect the money. The defendant caused the victims to transfer over $90,000 to Jamaica and elsewhere in furtherance of the scheme.
This case was investigated by the Federal Bureau of Investigation.
“Targeting seniors and their savings – money they’ve worked hard to save over their lifetime - is an intolerable crime. Today’s sentence sends a strong message to con artists such as Mr. Gray that the FBI won’t stand by and let some of our most vulnerable citizens be preyed upon in this manner,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI and our law enforcement partners will continue to do everything in our power to root out these fraudsters and ensure they are held accountable, no matter where they are, so they can no longer victimize the elderly.”
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Gray will not serve any supervised release following his sentence because he will be deported back to Jamaica after completing his sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in complex, large-scale fraud schemes that exploit vulnerable victims, those who engage in cyber-threats, and those who hide behind new technologies to commit such crimes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1, 4.4, and 5.1.
Internal Revenue Service Analyst Pleads Guilty to Making Unauthorized Disclosure of Suspicious Activity ReportsRead the Press Release
SAN FRANCISCO - John C. Fry pleaded guilty to illegally disclosing information from Suspicious Activity Reports (SARs), announced United States Attorney David L. Anderson, Financial Crimes Enforcement Network (FinCEN) Director Kenneth A. Blanco, and United States Department of the Treasury, Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Rod Ammari. The plea agreement was accepted by the Honorable Edward M. Chen, United States District Judge.
In May of 2018, Fry, 54, of San Francisco, was an Investigative Analyst for the Internal Revenue Services’ law enforcement arm, the Criminal Investigation Division. Fry’s responsibilities included supporting IRS Agents in the Northern District of California area and reviewing SARs for activity that could potentially lead to a criminal investigation. In his position with the IRS, he had access to various law enforcement databases, including the FinCEN database that manages the collection and maintenance of SARs and an analytic software used to integrate investigative data from multiple internal and external data sources. According to his plea agreement, he admitted he knowingly and willingly disclosed confidential SAR information to Michael Avenatti.
"Financial institutions trust that FinCEN will safeguard the sensitive information like SARs they are obligated to file, which is absolutely critical to protecting our national security” said FinCEN Director Blanco. “We take seriously our responsibility to protect this information, and we will not hesitate to investigate and help prosecute anyone who breaks the law by disclosing or misusing protected data.”
“When an IRS employee accesses and misuses government data, and then discloses that data for personal reasons, their selfish actions erode confidence in the IRS and in the institutions that are tasked with protecting this data,” said Special Agent in Charge Ammari. “The Treasury Inspector for Tax Administration, along with our law enforcement partners, are committed to prosecuting these individuals to the fullest extent to deter illegal disclosures in the future.”
According to the plea agreement, Fry admitted that on May 4, 2018, he logged onto the a private government database from his work computer and downloaded five SARs related to Michael Cohen and his company Essential Consultants. Fry further admitted he twice called Michael Avenatti, an attorney based in Newport Beach, Calif., from his personal cell phone. Fry acknowledged that during his phone conversations with Avenatti, he verbally provided information to Michael Avenatti that was contained in the five SARs. Fry further admitted that he used one of his personal email accounts to email screenshots of the SARs to Michael Avenatti.
Further, Fry admitted that on May 7, 2018, he logged on to the FinCEN database from his work computer and conducted additional searches related to Michael Cohen and Essential Consultants. He then called Michael Avenatti from his personal cell phone and verbally provided information contained in the searches. Fry admitted he had no official reason to disclose SAR records related to Cohen or the various companies listed in the SARs.
On February 28, 2019, a federal grand jury indicted Fry with one count of unauthorized disclosure of suspicious activity reports, in violation of 31 U.S.C. § 5322(a); two counts of misuse of a computer, in violation of 18 U.S.C. § 1030(a)(2); and one count of illegal use of a social security number, in violation of 42 U.S.C. § 408(a)(8). Fry pleaded guilty to the unauthorized disclosure count. If Fry complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Judge Chen scheduled Fry’s sentencing for December 18, 2019. Fry faces a maximum sentence of 5 years in prison, and a fine of $250,000, for the violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California. This case was investigated by FinCEN and TIGTA.
Inland Empire Man Arrested on Federal Indictment for Allegedly Engaging in Sextortion with Victims He Messaged on FacebookRead the Press Release
LOS ANGELES – A San Bernardino County man was arrested today on a federal grand jury indictment alleging he blackmailed young women on Facebook by threatening to publish nude photographs and videos unless they complied with his demands of sending him additional sexually explicit images.
Jorge Esteban Sanchez Ramos, 23 – who used a series of online aliases, including “Nathan Ramirez,” “Juan Romero” and “George Sanchez” – was arrested without incident this morning at his Ontario residence by special agents with the Federal Bureau of Investigation.
Sanchez was charged with four felony counts of stalking in an indictment returned by a federal grand jury on May 24. Sanchez is scheduled to be arraigned on the indictment this afternoon in United States District Court in Los Angeles.
According to the indictment, Sanchez’s conduct between April 2016 and May 2018 typically involved him using multiple aliases and Facebook accounts in order to contact his victims. Sanchez allegedly sent his victims – the indictment specifically alleges four women ranging in age between 18 and 24 – a series of messages complimenting the women and requesting that the women send him nude photographs or nude videos of themselves. After the victims sent Sanchez nude photographs or videos, Sanchez – using a different screen name – sent menacing messages that threatened to post their nude images to social media unless they sent him additional sexually explicit images, the indictment alleges.
For example, in April 2016, Sanchez sent one 18-year-old woman a request to send nude images, and then sent her a series of messages from different Facebook accounts. On April 20, 2016, according to the indictment, Sanchez sent the victim a Facebook message that included a full-frontal nude image she had sent and a message stating, “Yes do it or I’ll post these nude [photos] some guy sent me how do you think I found you.” Sanchez allegedly sent the victim follow-up Facebook messages in which he instructed her how to film a sexually explicit video of herself, and he also demanded a nude video of herself that day. In between his demands for more sexually explicit images of the victim, Sanchez wrote, “Unblock me or I’ll ruin you” and “I know where you live,” the indictment states.
In April 2016, Sanchez, using aliases, contacted another 18-year-old woman via Facebook and offered to pay her $600 in exchange for a nude image of herself, the indictment states. Sanchez allegedly sent the victim threatening Facebook messages where he demanded sexually explicit videos of the victim and threatened to post sexually explicit videos of the victim to her classmates and her parents.
In May 2018, Sanchez allegedly sent the same victim a Facebook message containing a topless photograph of herself and then sent her messages, which stated, “Just reply…or i swear i will always be here” and “Good luck facing everyone after this. xD” Sanchez then posted a comment on Facebook offering to show third parties nude photos of the victim, the indictment alleges.
If convicted of the four counts in the indictment, Sanchez would face a statutory maximum sentence of 20 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Federal Bureau of Investigation and the Pomona Police Department.
This case is being prosecuted by Assistant United States Attorney Aron Ketchel of the Public Corruption and Civil Rights Section.
Indictment: Registered Sex Offender Produced, Distributed Child PornographyRead the Press Release
WICHITA, KAN. – A man from El Dorado was indicted Wednesday on charges that even though he already was a registered sex offender he produced and distributed child pornography, U.S. Attorney Stephen McAllister said.
Daniel Eric Merida, 35, El Dorado, Kan., was charged in a superseding indictment with one count of producing child pornography, two counts of committing crimes against minors while registered as a sex offender, two counts of distributing child pornography, one count of possessing child pornography, one count of sending obscene material to a minor and one count of transporting child pornography. The crimes are alleged to have occurred at various times from 2014 to 2018 in Butler County, Kan.
Upon conviction, the crimes carry the following penalties:
Producing child pornography: Not less than 25 years and not more than 50 years in federal prison and a fine up to $250,000.
Felonies involving minors while a registered sex offender: A term of 10 years, consecutive to sentences on other counts.
Distributing child pornography: Not less than five years and not more than 20 years and a fine up to $250,000.
Possessing child pornography: Not less than five years and not more than 20 years and a fine up to $250,000.
Sending obscene material to a minor: Up to 10 years and a fine up to $250,000.
Transporting child pornography: Not less than five years and not more than 20 years and a fine up to $250,000.
Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER INDICTMENTS
Jeremy Vos, 21, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on July 23, 2019, the defendant robbed the Intrust Bank at 5500 E. Harry in Wichita.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. AUSA Ryan McCarty is prosecuting. The FBI investigated.
Linh Simmons, 41, Grapevine, Texas, is charged with seven counts of making false representations in order to obtain federal contracts set aside for women-owned small businesses and 14 counts of wire fraud.
If convicted, she faces up to 10 years in federal prison and a fine up to $500,000, and up to 20 years and a fine up to $250,000. The Defense Criminal Investigative Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
John Carl McMillan, 35, Garden City, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 21, 2019, in Finney County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $2 million. The Finney County Sheriff’s Office investigated. Special Assistant U.S. Attorney Katherine Andrusak is prosecuting.
Teresa Grant, 38, Arkansas City, Kan., is charged with one count of unlawfully receiving Social Security survivor’s benefits and two counts of making false statements to the Social Security Administration. The crimes are alleged to have occurred at various times from 2016 to 2019 in Sedgwick County, Kan.
If convicted, she faces up to 10 years in federal prison and a fine up to $250,000 on the charge of unlawfully receiving benefits, and up to five years and fine up to $250,000 on each of the other two counts. The Social Security Administration investigated. Assistant U.S. Attorney Aaron Smith investigated.
Nelson Noel Vasquez-Ponca, 34, Garden City, Kan., is charged with one count of document fraud, one count of aggravated identity theft and two counts of identity theft. The crimes are alleged to have occurred in 2017 and 2018 in Finney County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the document fraud count, a mandatory two years (consecutive) and a fine up to $250,000 on the aggravated identity theft and up to 15 years and a fine up to $250,000 on each identity theft count. The Kansas Department of Revenue investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Independence Man Pleads Guilty to Arson Conspiracy to Damage a Local BusinessRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to his role in an arson conspiracy to damage a local business.
Randell Eugene Yeager, Jr., 46, pleaded guilty before U.S. District Judge Roseann Ketchmark to participating in a conspiracy to damage property by means of arson.
By pleading guilty today, Yeager admitted that he was hired on two occasions to damage Bobby Jackson’s Trading, a gold-buying business located at 302 E. 23rd Street in Independence.
Yeager admitted that he was paid $800 to damage the business on July 17, 2017. Yeager drove a stolen Jeep Grand Cherokee in front of the business at approximately 3:20 a.m. Yeager then began to reverse towards the building before colliding into the building through the front door and front business windows, causing approximately $10,000 in damage. Yeager then accelerated out of the business and drove away. The stolen Jeep Grand Cherokee was located later by the Independence Police Department, unoccupied and still running, with evidence from the damaged building still attached to the vehicle.
Yeager also admitted that he was paid $800 to set fire to Bobby Jackson’s Trading on Aug. 4, 2017. Yeager used containers of gasoline to set fire to the front of the business, which caused approximately $5,000 in damage to the exterior and interior of the building.
Yeager was arrested on Nov. 24, 2018. At that time, he was in possession of a Heckler & Koch 9mm semi-automatic handgun and .936 grams of methamphetamine.
Under federal statutes, Yeager is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Independence, Mo., Police Department.
Illegal Alien Sentenced to 6 Months in Prison for Illegally Re-entering U.S. after Being DeportedRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico pleaded guilty in federal court in Johnstown to a charge of re-entry of an illegal alien, and immediately following, was sentenced to six months imprisonment, United States Attorney Scott W. Brady announced today.
Francisco Covias-Lopez, 40, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on December 1, 2018, Covias-Lopez, an alien who had been deported from the United States on June 22, 2012, was found in Cambria County, Pa. He had unlawfully re-entered this country without receiving permission to do so from the Secretary of the Department of Homeland Security.
Assistant United States Attorney Arnold Bernard, Jr. prosecuted this case on behalf of the government.
Mr. Brady commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Covias-Lopez.
Honduran National Pleads Guilty and is Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that FREDY ANTONIO MENDOZA-CHIRINOS (“CHIRINOS”), age 27, pleaded guilty on August 14, 2019 and was sentenced on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
After accepting CHIRINOS guilty plea, U.S. District Judge Martin C. Feldman sentenced CHIRINOS to time served and a $ 100 special assessment. CHIRINOS has been incarcerated since November 21, 2018. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to documents signed by the defendant and filed in open court, CHIRINOS admitted to being a citizen of Honduras, and being illegally present in the United States. He further admitted to illegally re-entering the United States after being deported in 2017.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Harrison County woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stormey Angel Lois-Hite, of Anmoore, West Virginia, was sentenced today to three years probation with the first six months on home detention for a firearms charge, United States Attorney Bill Powell announced.
Lois-Hite, age 25, pled guilty to one count of “Unlawful Transfer of Firearm to Prohibited Person” in April 2019. Lois-Hite admitted to purchasing a .22 caliber pistol for a convicted felon in January 2018 in Harrison County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kevin Alexander Miske, of Clarksburg, West Virginia, was sentenced today to 46 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Miske, age 27, pled guilty to one count of “Unlawful Possession of a Firearm” in April 2019. Miske, having been previously convicted of a felony, admitted to having a .357 magnum revolver in December 2018 in Harrison County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gulfport Man Sentenced to Almost Six Years in Federal Prison for Accessing Child PornographyRead the Press Release
Gulfport, Miss. – Michael Alex Miller, 19, of Gulfport, was sentenced Tuesday by U.S. District Judge Sul Ozerden to 70 months in federal prison, followed by a lifetime of supervised release, for accessing with intent to view visual depictions of minors engaged in sexually explicit conduct, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Mississippi.
Judge Ozerden also ordered Miller to pay $5,000 under the Justice for Victims of Trafficking Act of 2015 and $3,000 under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018, in addition to $18,000 in restitution.
In February 2019, the FBI received information that a specific Internet Protocol (IP) address associated with a Gulfport residence had previously accessed a website used to access child pornography. On February 8, 2019, agents went to that Gulfport address and Michael Alex Miller answered the door. Miller agreed to voluntarily speak with the agents who conducted a non-custodial interview with Miller. Miller admitted to looking at child pornography on his cellular telephone and viewing or accessing multiple images of the same. Forensic examination of Miller’s cellular devices confirmed Miller accessed multiple images of minors engaging in such conduct. A review of the images by the National Center for Missing and Exploited Children also confirmed that the images included known minors.
Miller was indicted on February 20, 2019, for accessing the images of the minors. He pled guilty before Judge Ozerden on April 25, 2019.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Andrea Jones. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Greensboro Man Sentenced to 7 Years in Prison in Child Pornography Case That Involved Thousands of ImagesRead the Press Release
Winston-Salem, N.C. – A man who pleaded guilty to receipt of child pornography was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
MARK DENVER TOWNSEND, 48, of Greensboro, North Carolina, pleaded guilty on February 4, 2019, to one count of receipt of child pornography. He was sentenced by United States District Judge Loretta Copeland Biggs to 84 months of imprisonment followed by 10 years of supervised release. He was ordered to pay a total of $114,500 in restitution to eighteen victims.
In 2018, an investigator with the North Carolina SBI Computer Crimes Unit learned that an individual located at TOWNSEND’s residence was likely downloading child pornography using a sophisticated peer-to-peer network. The network is known to law enforcement and designed to allow users to anonymously share and download files. In October, the SBI investigator and a special agent with Homeland Security Investigations interviewed TOWNSEND at his residence. The investigators seized TOWNSEND’s external hard drive which contained 15,029 images and 1,502 videos constituting child pornography. The contraband files were located in a folder titled “CP” and sorted into sub-folders labeled “pics,” “mov,” and “to watch.” Their created-on dates ranged from June 2015 to August 2018.
The North Carolina State Bureau of Investigation (SBI) 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.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. 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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Grand Junction Jury Convicts Gunnison Man for Destroying Acres of Federal Land with a BulldozerRead the Press Release
GRAND JUNCTION -- A Grand Junction Jury took less than an hour of deliberation to convict Robert Timothy Allen of depredation of federal property. The guilty verdict was announced on August 14, 2019, in the United States District Court for the District of Colorado.
Defendant Allen was indicted in 2016 and charged for damaging federal land in Saguache County between July 24, 2013, and May 22, 2014. After indictment, Allen evaded arrest for nearly two years before being arrested and ultimately detained in 2018. According to evidence presented at this week’s trial, Allen dug-up about three acres of federal land with a bulldozer. While he claimed to be lawfully prospecting federal land, he received four official notices from the Bureau of Land Management and the Colorado Division of Reclamation, Mining, and Safety that he was violating the law and directing him to stop. After refusing to stop violating the law, he was prosecuted by the United States Attorney’s Office.
“Colorado is known for its beautiful scenery, and our public lands are a treasure for all Coloradans,” said United States Attorney Jason Dunn. “Together with our federal partners, my office will ensure that these public lands are protected so that we all may enjoy them for years to come.”
“The BLM appreciates the coordinated effort with the Department of Justice in resolving this case,” said BLM Colorado State Director Jamie Connell. “Managing our public lands and its public resources are obligations we take seriously.”
Sentencing is currently scheduled for November 4, 2019.
Assistant United States Attorneys Jeremy Chaffin and Kelly Winslow prosecuted this matter.
Case No. 16-cr-0169
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Government Contractor Settles Civil False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – ManTech Advanced Systems International, Inc., a federal government contractor located in Herndon, has agreed to pay $750,000 to settle civil fraud allegations that ManTech falsely represented that its principal manager of a contract for security services at U.S. Environmental Protection Agency (EPA) had a Top Secret clearance.
ManTech was awarded a subcontract on an EPA contract that required that certain tasks be performed only by individuals with a Top Secret clearance. ManTech represented that the principal project manager for the contract, and one of the individuals who would be performing those tasks, had the required Top Secret clearance. The United States alleged that when the project manager’s clearance was revoked, ManTech failed to inform EPA of the loss of the manager’s clearance. In a proposal to extend ManTech’s contract with EPA, ManTech allegedly again represented that the same project manager had a Top Secret clearance. The settlement resolves allegations that from the time the project manager’s clearance had been revoked until the time the project manager was removed from the project, ManTech billed EPA $325,701 for his services.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and EPA’s Office of Inspector General (OIG). The matter was investigated by EPA OIG Special Agents, Assistant U.S. Attorney Krista Anderson and Special Assistant U.S Attorney Ron Fiorillo. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Gonzales Man Pleads Guilty in Federal Court to Possession of Child PornographyRead the Press Release
United States Attorney Brandon J. Fremin announced today that HENRY BABIN, age 29, of Gonzales, Louisiana, pled guilty before Brian A. Jackson to possessing child pornography. As a result of his conviction, Babin faces a term of imprisonment, a fine, and a period of supervised release.
According to admissions made during his plea, on January 26, 2018, Internet Crimes Against Children Task Force agents executed a search warrant for Babin’s property. During the execution of the warrant, Babin emerged from a detached shed that had been converted into a private residence, in which he solely resided.
Electronic devices were discovered and a preview of these devices on scene revealed numerous images and videos of child pornography. A subsequent forensic examination of Babin’s computer and cell phone revealed at least 600 images of child pornography including images and videos of prepubescent minors, including infants, engaged in various sex acts.
U.S. Attorney Brandon J. Fremin stated, “Our children are among the most vulnerable in our society and deserve our protection. This plea demonstrates our dedication to protecting children from those who seek to exploit them by possessing vile and disgusting images such as those found in this case. We are committed to this fight and will make every effort to prevent child predators from taking advantage of our youth. I want to thank our prosecutor, the FBI, and the Louisiana Attorney General’s Cyber Crime Unit for their partnership and collaboration on this case.”
“The protection of our children is one of the most sacred responsibilities entrusted to the FBI. The FBI takes a proactive approach to identify unknown individuals involved in the sexual exploitation of children and the production of child pornography. We remain vigilant and continue our active role to ensure children are protected. We reaffirm our commitment to removing sexual predators from children’s lives through the justice system,” stated Acting Special Agent in Charge Andrew Anderson.
“It is critical that people who are exploiting our children are found and brought to justice,” said Attorney General Landry. “The victimization of our state’s youth will not be tolerated, and we will continue working with our law enforcement partners to put an end to it.”
This matter is being investigated by the Federal Bureau of Investigation with critical assistance from the Louisiana Attorney General’s Office - Cyber Crime Unit and is being prosecuted by Assistant United States Attorney Demetrius Sumner.
Gate City Transportation Sentenced for Health Care FraudRead the Press Release
WINSTON-SALEM, N.C. - A Greensboro-based medical transport company was sentenced today in federal court for health care fraud, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina and North Carolina Attorney General Josh Stein.
GATE CITY TRANSPORTATION, INC. was ordered to pay a $100 fine, a $400 special assessment, and restitution in the amount of $5,245,640.02 to the N.C. Fund for Medical Assistance by United States District Court Judge Loretta Copeland Biggs of the Middle District of North Carolina. The defendant corporation pleaded guilty to one count of health care fraud in October 2018.
“Fraud does not pay in the long run. With today’s judgment, taxpayers will get back over $5M that was taken from Medicaid,” said U.S. Attorney Martin, “This case demonstrates how agencies work together to find and stop healthcare fraud. I commend the IRS, the U.S. Department of Health and Human Services, and the NC AG’s office for their excellent work.”
“Corporations that defraud the Medicaid program are cheating taxpayers and taking away resources from people who need health care,” said Attorney General Josh Stein. “My office will continue to fight health care fraud and waste.”
In April 2008, GATE CITY TRANSPORTATION enrolled with the North Carolina Medicaid Program as an ambulance provider. Initially, GATE CITY TRANSPORTATION owned and operated convalescent ambulances. Convalescent ambulance services are used to provide non-emergency medical transportation to stretcher-bound patients.
From November 2010 until February 2015, GATE CITY TRANSPORTATION stopped operating convalescent ambulances and provided non-emergency transport to ambulatory and wheelchair bound clients using vans. The majority of GATE CITY TRANSPORTATION’s clients were Medicaid recipients. Medicaid did not directly reimburse companies for providing van transportation. GATE CITY TRANSPORTATION could have applied to the county Division of Social Services (DSS) for approval to provide non-emergency medical van transportation to ambulatory and wheelchair bound clients, but did not do so.
Despite providing van transportation, GATE CITY TRANSPORTATION continued to submit claims to Medicaid using ambulance codes which were reimbursed at a higher rate. GATE CITY TRANSPORTATION was deliberately ignorant to the false claims because it wanted to continue receiving the higher reimbursement rate. The false claims caused the Medicaid program to suffer a loss of over five million dollars.
During the investigation of GATE CITY TRANSPORTATION, law enforcement seized and forfeited more than $5 million in cash and property representing proceeds of the scheme. Federal authorities will request authorization to apply the forfeited funds toward restitution.
The case was investigated by the Internal Revenue Service-Criminal Investigations, the U.S. Department of Health and Human Services, and the North Carolina Attorney General’s Medicaid Investigations Unit. The case was prosecuted by former Assistant United States Attorney Robert M. Hamilton and Assistant United States Attorney Lisa B. Boggs.
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Four Individuals Indicted in August 2019 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the August 2019 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
ETHAN COLE ENDRES, age 27, of Okmulgee, OklahomaFelon In Possession Of Firearm
The Indictment alleges that on or about April 11, 2019, in the Eastern District of Oklahoma, the defendant, ETHAN COLE ENDRES, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm, to wit: one (1) Ruger, Model 10/22, .22 caliber semi-automatic rifle, serial number 118-17229, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
Assistant United States Attorney Dean Burris
AARON DEWAYNE TERRY, age 66, of Wichita Falls, Texas
CHRISTINA ROCHELLE ANGLIN, age 44, of Burnsville, North Carolina
Theft By An Agent Of An Indian Tribal Government Receiving Federal Funds
Conspiracy To Commit Theft Or Bribery Of Programs Receiving Federal Funds
Wire Fraud
Conspiracy To Commit Wire Fraud
Bribery Concerning Programs Receiving Federal Funds
Conspiracy To Commit BriberyThe attached Superseding Indictment contains the entirety of the allegations against the defendants.
Agencies responsible for the multi-year investigation which led to the indictment include the Federal Bureau of Investigation, Defense Criminal Investigative Service, Internal Revenue Service – Criminal Investigation, Office of Inspector General – General Services Administration, Office of Inspector General – Small Business Administration, Naval Criminal Investigative Service, and Army Criminal Investigation Command.
Assistant United States Attorney Douglas Horn
RONALD JUSTIN JOHNSON, age 37, of Howe, Oklahoma
Conversion Of Mortgaged Property
The Indictment alleges that from on or about April 1, 2016, and continuing through on or about July 14, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant, RONALD JUSTIN JOHNSON, did knowingly and with intent to defraud, willfully dispose of and convert to his own use certain property, to-wit: thirty-two (32) head of cattle, said property having a value in excess of $1,000.00, and which was at the time of said disposition and conversion, mortgaged, pledged to and held by the United States Department of Agriculture – Farm Service Agency, in violation of Title 18, United States Code, Section 658. punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the U.S. Department of Agriculture - Office of Inspector General.
Assistant United States Attorney Ben Gifford
Fort Myers Man Charged with Federal Firearm OffenseRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Keith Dewayne Drayton, Jr. (23, Ft. Myers) with possessing a firearm as a convicted felon. If convicted, Drayton faces a maximum penalty of 10 years in federal prison.
According to the indictment, on May 15, 2019, Drayton illegally possessed a firearm. Due to his prior state conviction for unlicensed carrying of a concealed firearm, Drayton is prohibited from carrying a firearm or ammunition under federal law.
This case is part of Operation Triple Beam (OTB), a U.S. Marshals-led 90-day operation to reduce violent gang crime. OTB was designed to target and arrest violent fugitives and criminal offenders who committed high-profile crimes such as homicide, felony assault and sexual assault, illegal possession of firearms, illegal drug distribution, robbery and arson. The operation concluded on August 1, 2019, and resulted in 120 arrests.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The operation was conducted by the U.S. Marshals Service Florida/Caribbean Regional Fugitive Task Force, along with the Fort Myers Police Department, the Lee County Sheriff's Office, the Cape Coral Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This will be prosecuted by Assistant United States Attorney Simon Eth.
Former Washington Resident Pleads Guilty to Wire Fraud and Money Laundering in Fraudulent IPO Stock SchemeRead the Press Release
A former Seattle area resident who defrauded dozens of investors of at least $5.8 million pleaded guilty today in U.S. District Court in Seattle to wire fraud and money laundering, announced U.S. Attorney Brian T. Moran. KEENAN A. GRACEY, 28, formerly of Newcastle, Washington, defrauded Seattle-area investors and others out of millions of dollars by pretending to sell them stock that GRACEY did not own and had no right to sell. Under the terms of the plea agreement, both the prosecution and the defense will recommend a prison term of 153 months in custody when GRACEY is sentenced by Chief U.S. District Judge Ricardo S. Martinez on November 15, 2019.
According to records in the case, between 2016 and 2018, GRACEY posed as a British billionaire with degrees from the London School of Economics and Oxford University. He drove expensive cars such as Bentleys and Ferraris and claimed to own expensive homes in Clyde Hill, Mercer Island, and Newcastle, Washington, as well as in Beverly Hills and San Diego, California. GRACEY also used falsified bank statements to make it appear he had hundreds of millions of dollars of cash on hand. The investigation revealed that GRACEY is Canadian, not British, and rented expensive homes and cars to make it appear he was wealthy.
GRACEY told potential investors he had special access to millions of shares of “pre IPO” stock that would produce returns of as much as 60 times the initial investment. Some investors gave GRACEY as much as $745,000, believing that they were purchasing stock. In fact, GRACEY did not own any of the stock he was pretending to sell and simply stole the victims’ money. In all, GRACEY collected $5,894,676 from dozens of investors.
The Securities and Exchange Commission filed a civil suit against GRACEY in May 2018 and obtained a temporary restraining order barring him from selling securities. In September 2018, the order was made permanent, and GRACEY was ordered to disgorge $4.4 million in cash and wire transfers that he had fraudulently obtained from investors. However, even after the SEC order, GRACEY continued to try to defraud investors by claiming he owned shares in a gene editing company. Between June 2018 and December 2018, GRACEY collected $2.2 million for shares of stock he did not own.
GRACEY’s fraud ended when he was arrested by the FBI on December 20, 2018. A federal grand jury charged him with wire fraud on January 3, 2019. On July 25, 2019, the grand jury returned a superseding indictment asserting additional charges, including money laundering charges.
On March 29, 2019, the United States seized $603,840 of fraud proceeds that GRACEY had paid to rent a luxury mansion in Beverly Hills, California. According to court pleadings, the government intends to forfeit this money and request it be used to compensate GRACEY’s victims.
Money Laundering and Wire Fraud are each punishable by up to 20 years in prison.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson, Lyndsie Schmalz, and Michelle Jensen.
Former University Professor Sentenced for Traveling to Missouri for Sex with a MinorRead the Press Release
KANSAS CITY, Mo. – A former Ohio university professor was sentenced in federal court today for traveling to Kansas City, Missouri, to engage in sexual activity with a person whom he believed to be a 14-year-old runaway.
Kevin Connor Armitage, 54, was sentenced by U.S. District Judge Brian C. Wimes to two years and nine months in federal prison without parole.
On May 1, 2019, Armitage pleaded guilty to traveling across state lines to engage in illicit sexual conduct with a minor. Armitage was a professor of American studies at Miami University in Oxford, Ohio.
Armitage maintained a profile on a website that allows registered members to exchange information regarding commercial sex activity. The website’s public posts contain detailed accounts of sexual encounters between members and commercial sex workers, including prices and specific locations for sexual encounters. Links to well-known sex trafficking websites were posted with reviews of sexual encounters. Members of the website are able to contact the posters by private message to obtain contact information for the commercial sex workers described in the posts.
Armitage was a senior member of the website, with 576 postings that detail his prior experiences with prostitutes in Ohio, Arizona, Kansas, Colorado, and Tijuana.
On May 22, 2018, an undercover federal agent responded to a discussion thread posted by another user. Armitage contacted the undercover agent through a private message and indicated that he would be visiting the Kansas City area and was interested in recommendations. Armitage was provided a phone number for a female FBI agent, who was posing as a 14-year-old female runaway.
After several conversations, Armitage agreed to meet the 14-year-old’s cousin at a restaurant on the Country Club Plaza in Kansas City on May 30, 2018, in order to discuss payment. Once he arrived at the restaurant, Armitage was told, he would be given the address where he could meet the 14-year-old. An FBI undercover employee, posing as the cousin, met Armitage at the restaurant and he was arrested.
This case was prosecuted by First Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Tax Return Preparer Sentenced to 21 MonthsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Kimberly Harrison, 47, Beloit, Wisconsin, was sentenced yesterday by U.S. District Chief Judge James D. Peterson to 21 months in federal prison, to be followed by one year of supervised release, for aiding and abetting the preparation and filing of a false income tax return. The court will determine the amount of restitution Harrison will be ordered to pay in 30 days.
On May 24, 2019, Harrison pleaded guilty to aiding and abetting in the preparation and filing of a false income tax return with the Internal Revenue Service. Harrison had been charged on August 1, 2018, by a grand jury in Madison, Wisconsin with a 29-count indictment alleging that she prepared false and fraudulent income tax returns for various taxpayers for tax years 2013 through 2016.
At her plea hearing, Harrison admitted that the government could prove that she filed tax returns from her home in Beloit using various IP addresses that came back to her, even though she failed to sign the tax returns as the paid return preparer, and instead made it look as if the taxpayers themselves were signing and filing their own tax returns.
At yesterday’s sentencing, Judge Peterson found that Harrison had prepared and filed 374 false tax returns for tax years 2013 through 2016, which caused a tax loss of $583,298. Judge Peterson also found that Harrison earned about $9,350 a year in fees that she charged her clients and that she did not report on her own tax returns, or to other governmental authorities who were providing her with public benefits.
In imposing the 21-month prison term, Judge Peterson explained, “People need to know that our tax laws will be enforced and if you cheat on your taxes, it is going to be taken seriously.” According to the judge, Harrison’s crime was a serious offense because it involved a large tax loss to the United States government. Judge Peterson also noted there is a certain outrage to the community by Harrison’s cheating of the very government that supplies her with public benefits, and this cheating hurts other recipients who need those benefits like veterans and the disabled. In addressing Harrison, the judge told her that “claiming poverty is no excuse” because her crime was “done for pocket money, which is greed” and arrogance, not ignorance.
Judge Peterson ordered Harrison to report to the Federal Bureau of Prisons to begin her prison sentence on September 16, 2019.
The charges against Harrison are the result of an investigation conducted by the Madison office of IRS Criminal Investigation. The prosecution of this case was handled by Assistant U.S. Attorney Daniel Graber.
Former Lake Charles police officer pleads guilty to using excessive forceRead the Press Release
LAKE CHARLES, La. – Robert Hammac, 45, a former officer of the Lake Charles Police Department, pleaded guilty today before U.S. District Judge James D. Cain Jr. for using excessive force against an arrestee, announced U.S. Attorney David C. Joseph for the Western District of Louisiana, Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division and FBI’s New Orleans Field Office Acting Special Agent in Charge Andrew Anderson.
Hammac pleaded guilty to a single count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. According to documents filed today, Hammac was involved in a vehicle pursuit of G.T. on May 8, 2017, for several miles. The car was brought to a stop, and G.T. raised his hands in the air in a manner indicating surrender. Other officers then ordered G.T. out of the car and began pulling him out of the car. Hammac ran to the front passenger side door, opened it, grabbed G.T. before he could exit, pulled him back into the car, and repeatedly punched G.T.’s head with a closed fist. The victim was not resisting in any way or posing a threat.
“Law enforcement officers put their lives on the line every day to keep our communities safe,” said U.S. Attorney David C. Joseph. “The vast majority of law enforcement officers perform their difficult and dangerous duties with integrity and courage. However, law enforcement officers who betray the badge and the public’s trust, as the defendant did here, also dishonor their profession and their fellow officers. This behavior is unacceptable and will not be tolerated in the Western District of Louisiana.”
“Law enforcement officers must uphold and defend the constitution,” said Assistant Attorney General Eric Dreiband. “When an officer abuses their power, the public’s trust in law enforcement is compromised. The Department of Justice will continue to hold such officers accountable under the law.”
“Police officers respond to challenging and dynamic situations every day,” stated FBI Acting Special Agent in Charge Andrew Anderson. “They are trained to maintain professionalism and adhere to standards of conduct in any situation. In this instance, the officer did not apply his training and violated the constitutional rights of the victim. Instances such as this are unacceptable and will continue to be high priority investigations of the FBI.
Hammac faces a maximum term of imprisonment of 10 years and a $250,000 fine. The court set sentencing for Nov. 14.
The FBI conducted the investigation. Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.
Former Lake Charles Police Officer Pleads Guilty to Using Excessive ForceRead the Press Release
Robert Hammac, 45, a former officer of the Lake Charles Police Department, pleaded guilty today before U.S. District Judge James D. Cain, Jr., for using excessive force against an arrestee, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney David C. Joseph for the Western District of Louisiana, and FBI’s New Orleans Field Office Acting Special Agent in Charge Andrew Anderson.
Hammac pleaded guilty to a single count of deprivation of rights under color of law, in violation of 18 U.S.C. § 242. According to documents filed today, Hammac was involved in a vehicle pursuit of G.T. on May 8, 2017, for several miles. The car was brought to a stop, and G.T. raised his hands in the air in a manner indicating surrender. Other officers then ordered G.T. out of the car and began pulling him out of the car. Hammac ran to the front passenger side door, opened it, grabbed G.T. before he could exit, pulled him back into the car, and repeatedly punched G.T.’s head with a closed fist. The victim was not resisting in any way or posing a threat.
“Law enforcement officers must uphold and defend the constitution,” said Assistant Attorney General Eric Dreiband. “When an officer abuses their power, the public’s trust in law enforcement is compromised. The Department of Justice will continue to hold such officers accountable under the law.”
“Law enforcement officers put their lives on the line every day to keep our communities safe,” said U.S. Attorney David C. Joseph. “The vast majority of law enforcement officers perform their difficult and dangerous duties with integrity and courage. However, law enforcement officers who betray the badge and the public’s trust, as the defendant did here, also dishonor their profession and their fellow officers. This behavior is unacceptable and will not be tolerated in the Western District of Louisiana.”
“Police officers respond to challenging and dynamic situations every day,” stated FBI Acting Special Agent in Charge Andrew Anderson. “They are trained to maintain professionalism and adhere to standards of conduct in any situation. In this instance, the officer did not apply his training and violated the constitutional rights of the victim. Instances such as this are unacceptable and will continue to be high priority investigations of the FBI."
Hammac faces a maximum term of imprisonment of 10 years and a $250,000 fine. The court set sentencing for Nov. 14.
The FBI conducted the investigation. Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.
Former Correctional Officers Sentenced for Assault of Handcuffed Inmate at Elayn Hunt Correctional CenterRead the Press Release
Two former correctional officers at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, were sentenced today for their roles in assaults on a handcuffed inmate in January 2017. Adrian Almodovar III and Charles Philson III previously pleaded guilty to depriving the inmate of his constitutional rights while acting under color of law.
“The Justice Department is committed to holding correctional officers who deprive inmates of their right to be free from cruel and unusual punishment accountable to the public,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to obtain justice for victims of these atrocious crimes.”
“The vast majority of law enforcement officers maintain a high standard of conduct and perform their duties with honesty, integrity, and bravery. Law enforcement officers at every level should be held to a high standard and those who deprive citizens of their civil rights and undermine the public trust should be held accountable. I want to thank the United States Department of Justice Civil Rights Division, the FBI, and Louisiana Office of the State Inspector General, and our staff for their efforts in this case.”
"Along with our partners, the FBI will aggressively pursue allegations wherein correctional officers abuse their position of power and authority to deny persons their constitutional right to be free from cruel and unusual punishment,” stated Acting Special Agent in Charge Andrew Anderson. “The FBI is appreciative of its partnership with the LA Department of Corrections to root out correctional officers who choose to break the law and physically abuse defenseless inmates.”
“Corrections Officers are given great authority and trust, and when they abuse that trust, it undermines the entire system,” said Louisiana Inspector General Stephen Street. “Physically abusing a handcuffed inmate can never be tolerated. It was entirely appropriate that these individuals be prosecuted and punished. The Louisiana OIG will continue working these criminal cases with our law enforcement partners for as long as necessary to protect the integrity of our system. I want to thank U.S. Attorney Brandon Fremin and the Civil Rights Division of the Department of Justice for all their efforts on this case.”
During his previous plea hearing, Almodovar admitted to unlawfully striking inmate J.H. on multiple occasions while J.H. was handcuffed. He also admitted to failing to intervene to stop his fellow correctional officers from using unlawful force on J.H. Almodovar further admitted to unlawfully striking a second inmate, L.B., in the head while L.B. was handcuffed. Almodovar was sentenced to 18 months in prison.
Philson previously pleaded guilty to witnessing other correctional officers using unlawful force on J.H. and failing to intervene to stop them. He was sentenced to 12 months probation.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. Trial Attorney Christopher J. Perras and Assistant United States Attorney Cal Leipold also assisted in the investigation. The case was prosecuted by Trial Attorney Zachary Dembo of the Criminal Section of the Civil Rights Division.
Former Correctional Officers Sentenced for Assault of Handcuffed Inmate at Elayn Hunt Correctional CenterRead the Press Release
Two former correctional officers at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, were sentenced today for their roles in assaults on a handcuffed inmate in January 2017. Adrian Almodovar III and Charles Philson III previously pleaded guilty to depriving the inmate of his constitutional rights while acting under color of law.
“The Justice Department is committed to holding correctional officers who deprive inmates of their right to be free from cruel and unusual punishment accountable to the public,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to obtain justice for victims of these atrocious crimes.”
“The vast majority of law enforcement officers maintain a high standard of conduct and perform their duties with honesty, integrity, and bravery. Law enforcement officers at every level should be held to a high standard and those who deprive citizens of their civil rights and undermine the public trust should be held accountable. I want to thank the United States Department of Justice Civil Rights Division, the FBI, and Louisiana Office of the State Inspector General, and our staff for their efforts in this case.”
"Along with our partners, the FBI will aggressively pursue allegations wherein correctional officers abuse their position of power and authority to deny persons their constitutional right to be free from cruel and unusual punishment,” stated Acting Special Agent in Charge Andrew Anderson. “The FBI is appreciative of its partnership with the LA Department of Corrections to root out correctional officers who choose to break the law and physically abuse defenseless inmates.”
“Corrections Officers are given great authority and trust, and when they abuse that trust, it undermines the entire system,” said Louisiana Inspector General Stephen Street. “Physically abusing a handcuffed inmate can never be tolerated. It was entirely appropriate that these individuals be prosecuted and punished. The Louisiana OIG will continue working these criminal cases with our law enforcement partners for as long as necessary to protect the integrity of our system. I want to thank U.S. Attorney Brandon Fremin and the Civil Rights Division of the Department of Justice for all their efforts on this case.”
During his previous plea hearing, Almodovar admitted to unlawfully striking inmate J.H. on multiple occasions while J.H. was handcuffed. He also admitted to failing to intervene to stop his fellow correctional officers from using unlawful force on J.H. Almodovar further admitted to unlawfully striking a second inmate, L.B., in the head while L.B. was handcuffed. Almodovar was sentenced to 18 months in prison.
Philson previously pleaded guilty to witnessing other correctional officers using unlawful force on J.H. and failing to intervene to stop them. He was sentenced to 12 months probation.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. Trial Attorney Christopher J. Perras and Assistant United States Attorney Cal Leipold also assisted in the investigation. The case was prosecuted by Trial Attorney Zachary Dembo of the Criminal Section of the Civil Rights Division.
Former City of New Orleans Building Inspector Charged with Use of an Interstate Facility with Intent to Carry on Unlawful ActivityRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that KEVIN RICHARDSON age 56, of New Orleans, LA was charged on Thursday, August 15, 2019, by a Grand Jury sitting in the Eastern District of Louisiana in a one-count indictment with violating Title 18, United States Code, Sections 1952(a)(3) and 2, use of an interstate facility with intent to carry on unlawful activity.
According to the Indictment, between January 2011 and February 2019, RICHARDSON was employed as a building inspector for the City of New Orleans and utilized the internet to facilitate the crime of bribery. He solicited and accepted bribe money from individuals seeking favorable inspection reports and certificates of completion for properties that did not comply with the city and state building codes and for properties that had not been inspected. He also paid bribe money to a City of New Orleans permit analyst for the issuance of permits without proper documentation and plan review.
If convicted, RICHARDSON faces a maximum term of imprisonment of five (5) years, a fine of not more than $250,000, three years supervised release following any term of imprisonment, and a $100 special assessment fee.
United States Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This matter was handled by the City of New Orleans Office of Inspector General, Housing and Urban Development, Office of Inspector General, and the Department of Homeland Security, Office of Inspector General. Assistant United States Attorney Tracey N. Knight is prosecuting the matter.
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Former Chief Financial Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Securities Fraud in Relation to $330 Million SchemeRead the Press Release
A former Chief Financial Officer of 1 Global Capital, LLC has been charged in connection with a $330 million securities fraud scheme, related to a commercial payday loan business that operated from early 2014 through July 2018, that impacted more than 3,600 investors in 42 different states.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
Alan G. Heide, 61, of Lake Worth, Florida, was charged today by information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 19-60231. The case is assigned to U.S. District Judge Roy Altman in Fort Lauderdale. If convicted, Heide faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
According to the information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates. To fund these merchant cash advance loans (“MCAs”), 1 Global obtained funds from investors nationwide, offering short-term investment contracts. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises of significant commissions. In many cases, the commissions were not fully disclosed to investors.
Heide was the Chief Financial Officer of 1 Global from 2014 through 2016, when he became the Executive Vice President and Director of Syndicate Partner Relations. In order to attract investments, Heide and his co-conspirators allegedly made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. 1 Global promised investors that all or nearly all of that money would be applied to various MCA loan agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants. The information alleges that the 1 Global business lost money, and used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme. Furthermore, the conspirators are alleged to have misappropriated large amounts of cash for their personal benefit. In addition, the information alleges that 1 Global paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
According to the allegations in the information, Heide and others at 1 Global also made false statements to investors that gave the impression that 1 Global had an independent auditor. These misrepresentations were allegedly made in monthly-mailed statements that falsely showed profitable investments. As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising ever-increasing amounts of new investor funds, before its eventual collapse in July 2018.
According to court records, 1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Heide. In a related case, the SEC previously filed a civil fraud action, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.).
An information is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office, IRS Criminal Investigation’s Miami Field Office, the Federal Housing Finance Authority, Office of Inspector General, and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy and Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to this matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Bank Manager Sentenced to Five-Year Term of Probation for Bank TheftRead the Press Release
NEW ORLEANS, LOUISIANA – SCOTT BREAUX (“BREAUX”), age 39, of Marrero, Louisiana, was sentenced on August 14, 2019 by U.S. District Court Judge Ivan L.R. Lemelle to 60 months probation and was ordered to pay restitution in the amount of $ 35,000.00 to ASI Federal Credit Union and its insurer, Cuna Mutual Group, announced United States Attorney Peter G. Strasser.
According to court documents, from about November 2016 to July 2017, while employed as a Branch Manager at ASI Federal Credit Union, BREAUX stole approximately $35,000.00. BREAUX was employed with ASI since in or about 2011, and during his tenure with ASI, BREAUX worked at the Harahan, Westwego, and uptown branches. In 2014, BREAUX was named Branch Manager of ASI’s Westwego branch. In February 2017, BREAUX was transferred to ASI’s uptown branch where he continued to work as Branch Manager until his termination in July 2017. ASI is a federally insured financial institution and its deposits are insured by the National Credit Union Association.
United States Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Florida Man Arrested for Child-Exploitation CrimesRead the Press Release
A Florida man was arrested today following the return of an indictment by a federal grand jury charging him with two counts of travel with intent to engage in illicit sexual activity and two counts of attempted enticement of a minor to engage in unlawful sexual activity.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida and Special Agent in Charge James C. Spero of U.S. Immigration and Customs Enforcements’ Homeland Security Investigations (HSI) Tampa made the announcement.
According to the indictment, on March 9, 2015, and again on Feb. 23, 2016, Christopher Edwin Day, 49, of St. Petersburg, Florida, allegedly traveled in interstate and foreign commerce for the purpose of engaging in illicit sexual conduct. In addition, starting in at least in or around December 2014, he allegedly attempted to use electronic devices to persuade two minors to engage in criminal sexual conduct.
The case is being investigated by HSI. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Candace G. Rich of the Middle District of Florida are prosecuting the case.
The charges in the indictment are only allegations. The defendant is presumed innocent until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
Florida Man Arrested for Child-Exploitation CrimesRead the Press Release
Tampa, FL - A Florida man was arrested today following the return of an indictment by a federal grand jury charging him with two counts of travel with intent to engage in illicit sexual activity and two counts of attempted enticement of a minor to engage in unlawful sexual activity.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida and Special Agent in Charge James C. Spero of U.S. Immigration and Customs Enforcements’ Homeland Security Investigations (HSI) Tampa made the announcement.
According to the
indictment , on March 9, 2015, and again on Feb. 23, 2016, Christopher Edwin Day, 49, of St. Petersburg, Florida, allegedly traveled in interstate and foreign commerce for the purpose of engaging in illicit sexual conduct. In addition, starting in at least in or around December 2014, he allegedly attempted to use electronic devices to persuade two minors to engage in criminal sexual conduct.The case is being investigated by HSI. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Candace G. Rich of the Middle District of Florida are prosecuting the case.
The charges in the indictment are only allegations. The defendant is presumed innocent until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
Five Charged Federally for Dealing Fentanyl, Heroin, and Cocaine in Prince George’s and Charles CountiesRead the Press Release
Greenbelt, Maryland – Five individuals have been charged by a federal criminal complaint with conspiracy to distribute controlled substances and possession with intent to distribute and distribution of controlled substances, in connection with an alleged drug distribution organization operating in Prince George’s and Charles Counties in Maryland, that sold heroin, fentanyl, and cocaine. The criminal complaint was filed on August 14, 2019, and was unsealed today upon the arrests of the defendants. The following defendants are charged in the complaint:
Anthony Kenneth Dotson, Jr., a/k/a Streetz, Ghost, and Rico, age 33, of Clinton, Maryland; Marvin Windell Gray, a/k/a Marv, age 44, of Waldorf, Maryland; James Anthony Harvey, Jr., a/k/a Fat Bread, and Patches, age 47, of King George, Virginia; Marcellus Jerome Woodland, a/k/a Cellus, age 29, of Waldorf; and
Tiara Mackall, a/k/a Tee, age 26, of Waldorf.In addition to today’s arrests, law enforcement executed search warrants at eight locations believed to be used by the conspirators to prepare, store, and/or sell drugs and recovered six firearms, heroin, and fentanyl.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; Charles County Sheriff Troy Berry; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
U.S. Attorney Robert K. Hur stated, “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We’re also targeting drug dealers who use guns and increase the risk of gun violence in Maryland. Working together with our local, state, and federal partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
According to the affidavit filed in support of the criminal complaint, law enforcement began investigating Dotson, who was allegedly supervising a drug distribution conspiracy operating primarily in Prince George’s and Charles Counties that sold heroin, fentanyl, and cocaine. According to the affidavit, the drug trafficking organization utilizes multiple cell phones (or “burner phones”) to conduct its drug trafficking activities and employs runners who sell fentanyl and heroin on Dotson’s behalf. The indictment alleges that Gray is a lieutenant in the organization and that Harvey, Woodland, and Mackall are runners.
The affidavit details numerous alleged drug transactions between Dotson and his suppliers, runners, and customers, using coded language, including controlled purchases of drugs made at the direction of law enforcement. According to the affidavit, on January 7, 2018, a victim died after ingesting drugs allegedly supplied by Dotson. The Office of the Chief Medical Examiner for Maryland determined that the victim died from fentanyl intoxication. Further, the affidavit includes conversations between Dotson and others discussing the possession and/or purchase of firearms and ammunition. Dotson is prohibited from possessing firearms or ammunition.
If convicted, the defendants face a maximum sentence of 40 years for the conspiracy and a maximum of 20 years in prison for possession with intent to distribute controlled substances. At today’s initial appearance in U.S. District Court in Greenbelt, U.S. Magistrate Judge Charles B. Day ordered that all the defendants, except for Mackall, be detained pending detention hearings scheduled for Monday, August 19, 2019. Mackall was ordered to be released under the supervision of U.S. Pretrial Services.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the DEA, the St. Mary’s County Sheriff’s Office, the Prince George’s County Police Department, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Erin Pulice, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Federal Inmate Sentenced to 16 More Months in Prison for Illegally Possessing Suboxone in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa. pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to 16 months followed by 3 years of supervised release, United States Attorney Scott W. Brady announced today.
Ramon Santiago-Sandoval, 28, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, Santiago-Sandoval possessed a quantity of Buprenorphine on October 23, 2017.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Santiago-Sandoval.
Federal Indictment Charges Man for Making Threatening Calls Against a Maryland SynagogueRead the Press Release
Baltimore, Maryland – A federal grand jury today indicted Stephen Lyle Orback, age 64, on the federal charge of making threatening communications, specifically multiple telephone calls threatening a synagogue.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment, between May 12 and May 13, 2019, Orback made multiple telephone calls to an employee of a synagogue in Owings Mills, Maryland, threatening to kill many members of that Jewish congregation.
If convicted, Orback faces a maximum sentence of five years in federal prison. No initial appearance has been scheduled. Orback is currently detained in Colorado on unrelated state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys P. Michael Cunningham and Mary W. Setzer, who are prosecuting the case.
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